[Rev. 12/20/2019 4:55:44 PM]
κ2019 Statutes of Nevada, Page 1273κ
Senate Bill No. 73Committee on Judiciary
CHAPTER 226
[Approved: May 29, 2019]
AN ACT relating to gaming; revising the definition of gaming device to include mobile gaming; removing or repealing certain provisions relating to mobile gaming; revising certain provisions relating to publicly traded corporations registered with the Nevada Gaming Commission; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law requires the Nevada Gaming Commission and the Nevada Gaming Control Board to administer state gaming licenses and manufacturers, sellers and distributors licenses, and to reform various acts relating to the regulation and control of gaming. (NRS 463.140) Existing law authorizes the Commission, with the advice and assistance of the Board, to adopt regulations governing the operation and licensing of mobile gaming. (NRS 463.730) Existing law defines mobile gaming as the conduct of gambling games through communication devices operated solely within certain establishments holding a nonrestricted gaming license that permits a person to transfer information to a computer in order to place a bet or wager, and respective information related to the display of the game, game outcomes or other comparable information. (NRS 463.0176) Existing law defines gaming device as any object used remotely or directly in connection with gaming, or any other game that affects the results of a wager by determining win or loss but which does not qualify as associated equipment. (NRS 463.0155) Section 2 of this bill revises the definition of gaming device to include mobile gaming, thereby making mobile gaming subject to the same regulation and control as a gaming device. Sections 1.7, 3-10, 11-19 and 20 of this bill remove or repeal all provisions with individual references to mobile gaming. Section 19.5 of this bill exempts from the amendatory provisions of sections 5, 7, 8, 10, 18 and 19: (1) certain persons with a nonrestricted license for a mobile gaming system or such a license for the operation of a mobile gaming system; (2) certain persons who acquire a financial interest in such an operator of a mobile gaming system or the operation of such a system; or (3) a successor in interest of such a person who acquired such a financial interest. Section 19.5 also exempts from the amendatory provisions of section 3 of this bill employees of such an operator of a mobile gaming system described in section 19.5. Section 19.5 also provides that the provisions of law repealed by section 20 of this bill still apply to those persons or transactions described in section 19.5. Finally, section 19.5 provides that persons or transactions described in section 19.5 are not exempt from certain provisions of law.
Existing law requires certain persons to apply for and obtain a finding of suitability from the Nevada Gaming Commission if the person acquires, under certain circumstances: (1) beneficial ownership of any voting security of a publicly traded corporation registered with the Commission; (2) beneficial or record ownership of any nonvoting security of a publicly traded corporation registered with the Commission; or (3) beneficial or record ownership of any debt security of a publicly traded corporation registered with the Commission. (NRS 463.643) Section 10.8 of this bill requires certain persons to notify the Chair of the Board and apply for a finding of suitability with the Commission if such a person acquires or holds a certain percentage of any class of voting securities of a publicly traded corporation registered with the Commission. Section 10.8 also requires certain persons or plan sponsors of a pension or employee benefit plan to notify the Chair, apply for a finding of suitability with the Commission and pay a sum of money to the Board if such a person or plan sponsor obtains beneficial ownership or ownership, as applicable, in such a publicly traded corporation and the person or plan sponsor has the intent to engage in certain proscribed activities, except that certain persons who acquire less than a 10 percent beneficial ownership in such a corporation through a pension or employee benefit plan, or plan sponsors who acquire less than 10 percent ownership in such a corporation, are not subject to such notification, application and payment requirements.
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traded corporation and the person or plan sponsor has the intent to engage in certain proscribed activities, except that certain persons who acquire less than a 10 percent beneficial ownership in such a corporation through a pension or employee benefit plan, or plan sponsors who acquire less than 10 percent ownership in such a corporation, are not subject to such notification, application and payment requirements. Sections 1.3 and 1.5 of this bill define pension or employee benefit plan and proscribed activity for the purposes of this bill. Sections 10.2-10.6 make conforming changes.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 463 of NRS is hereby amended by adding thereto the provisions set forth as sections 1.3 and 1.5 of this act.
Sec. 1.3. 1. Pension or employee benefit plan means an employee pension or welfare benefit plan subject to the Employee Retirement Income Security Act of 1974 or a state or federal government pension plan.
2. The term does not include an employee pension or welfare benefit plan established by a publicly traded corporation that is registered with the Commission, unless such a pension or benefit plan is a multiemployer plan as defined in the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(37) or § 1301(a)(3).
Sec. 1.5. Proscribed activity means:
1. An activity that necessitates a change or amendment to the corporate charter, bylaws, management, policies or operation of a publicly traded corporation that is registered with the Commission;
2. An activity that materially influences or affects the affairs of a publicly traded corporation that is registered with the Commission; or
3. Any other activity determined by the Commission to be inconsistent with holding voting securities for investment purposes only.
Sec. 1.7. NRS 463.0136 is hereby amended to read as follows:
463.0136 Associated equipment means:
1. Any equipment or mechanical, electromechanical or electronic contrivance, component or machine used remotely or directly in connection with gaming , [or mobile gaming,] any game, race book or sports pool that would not otherwise be classified as a gaming device, including dice, playing cards, links which connect to progressive slot machines, equipment which affects the proper reporting of gross revenue, computerized systems of betting at a race book or sports pool, computerized systems for monitoring slot machines and devices for weighing or counting money; or
2. A computerized system for recordation of sales for use in an area subject to the tax imposed pursuant to NRS 368A.200.
Sec. 2. NRS 463.0155 is hereby amended to read as follows:
463.0155 Gaming device means any object used remotely or directly in connection with gaming or any game which affects the result of a wager by determining win or loss and which does not otherwise constitute associated equipment. The term includes, without limitation:
1. A slot machine.
2. Mobile gaming.
3. A collection of two or more of the following components:
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(a) An assembled electronic circuit which cannot be reasonably demonstrated to have any use other than in a slot machine;
(b) A cabinet with electrical wiring and provisions for mounting a coin, token or currency acceptor and provisions for mounting a dispenser of coins, tokens or anything of value;
(c) An assembled mechanical or electromechanical display unit intended for use in gambling; or
(d) An assembled mechanical or electromechanical unit which cannot be demonstrated to have any use other than in a slot machine.
[3.] 4. Any object which may be connected to or used with a slot machine to alter the normal criteria of random selection or affect the outcome of a game.
[4.] 5. A system for the accounting or management of any game in which the result of the wager is determined electronically by using any combination of hardware or software for computers.
[5.] 6. A control program.
[6.] 7. Any combination of one of the components set forth in paragraphs (a) to (d), inclusive, of subsection [2] 3 and any other component which the Commission determines by regulation to be a machine used directly or remotely in connection with gaming or any game which affects the results of a wager by determining a win or loss.
[7.] 8. Any object that has been determined to be a gaming device pursuant to regulations adopted by the Commission.
[Κ]
9. As used in this section [, control] :
(a) Control program means any software, source language or executable code which affects the result of a wager by determining win or loss as determined pursuant to regulations adopted by the Commission.
(b) Mobile gaming means the conduct of gambling games through communications devices operated solely in an establishment which holds a nonrestricted gaming license and which operates at least 100 slot machines and at least one other game by the use of communications technology that allows a person to transmit information to a computer to assist in the placing of a bet or wager and corresponding information related to the display of the game, game outcomes or other similar information. For the purposes of this paragraph, communications technology means any method used and the components employed by an establishment to facilitate the transmission of information, including, without limitation, transmission and reception by systems based on wireless network, wireless fidelity, wire, cable, radio, microwave, light, optics or computer data networks. The term does not include the Internet.
Sec. 3. NRS 463.0157 is hereby amended to read as follows:
463.0157 1. Gaming employee means any person connected directly with an operator of a slot route, the operator of a pari-mutuel system, the operator of an inter-casino linked system or a manufacturer, distributor or disseminator, or with the operation of a gaming establishment licensed to conduct any game, 16 or more slot machines, a race book, sports pool or pari-mutuel wagering, including:
(a) Accounting or internal auditing personnel who are directly involved in any recordkeeping or the examination of records associated with revenue from gaming;
(b) Boxpersons;
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(c) Cashiers;
(d) Change personnel;
(e) Counting room personnel;
(f) Dealers;
(g) Employees of a person required by NRS 464.010 to be licensed to operate an off-track pari-mutuel system;
(h) Employees of a person required by NRS 463.430 to be licensed to disseminate information concerning racing and employees of an affiliate of such a person involved in assisting the person in carrying out the duties of the person in this State;
(i) Employees whose duties are directly involved with the manufacture, repair, sale or distribution of gaming devices, associated equipment when the employer is required by NRS 463.650 to be licensed, cashless wagering systems [, mobile gaming systems, equipment associated with mobile gaming systems] or interactive gaming systems;
(j) Employees of operators of slot routes who have keys for slot machines or who accept and transport revenue from the slot drop;
(k) Employees of operators of inter-casino linked systems [, mobile gaming systems] or interactive gaming systems whose duties include the operational or supervisory control of the systems or the games that are part of the systems;
(l) Employees of operators of call centers who perform, or who supervise the performance of, the function of receiving and transmitting wagering instructions;
(m) Employees who have access to the Boards system of records for the purpose of processing the registrations of gaming employees that a licensee is required to perform pursuant to the provisions of this chapter and any regulations adopted pursuant thereto;
(n) Floorpersons;
(o) Hosts or other persons empowered to extend credit or complimentary services;
(p) Keno runners;
(q) Keno writers;
(r) Machine mechanics;
(s) Odds makers and line setters;
(t) Security personnel;
(u) Shift or pit bosses;
(v) Shills;
(w) Supervisors or managers;
(x) Ticket writers;
(y) Employees of a person required by NRS 463.160 to be licensed to operate an information service;
(z) Employees of a licensee who have local access and provide management, support, security or disaster recovery services for any hardware or software that is regulated pursuant to the provisions of this chapter and any regulations adopted pursuant thereto; and
(aa) Temporary or contract employees hired by a licensee to perform a function related to gaming.
2. Gaming employee does not include barbacks or bartenders whose duties do not involve gaming activities, cocktail servers or other persons engaged exclusively in preparing or serving food or beverages.
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3. As used in this section, local access means access to hardware or software from within a licensed gaming establishment, hosting center or elsewhere within this State.
Sec. 4. NRS 463.01715 is hereby amended to read as follows:
463.01715 1. Manufacture means:
(a) To manufacture, produce, program, design, control the design of or make modifications to a gaming device, associated equipment, cashless wagering system [, mobile gaming system] or interactive gaming system for use or play in Nevada;
(b) To direct or control the methods and processes used to design, develop, program, assemble, produce, fabricate, compose and combine the components and other tangible objects of any gaming device, associated equipment, cashless wagering system [, mobile gaming system] or interactive gaming system for use or play in Nevada;
(c) To assemble, or control the assembly of, a gaming device, associated equipment, cashless wagering system [, mobile gaming system] or interactive gaming system for use or play in Nevada; or
(d) To assume responsibility for any action described in paragraph (a), (b) or (c).
2. As used in this section:
(a) Assume responsibility means to:
(1) Acquire complete control over, or ownership of, the applicable gaming device, associated equipment, cashless wagering system [, mobile gaming system] or interactive gaming system; and
(2) Accept continuing legal responsibility for the gaming device, associated equipment, cashless wagering system [, mobile gaming system] or interactive gaming system, including, without limitation, any form of manufacture performed by an affiliate or independent contractor.
(b) Independent contractor means, with respect to a manufacturer, any person who:
(1) Is not an employee of the manufacturer; and
(2) Pursuant to an agreement with the manufacturer, designs, develops, programs, produces or composes a control program used in the manufacture of a gaming device. As used in this subparagraph, control program has the meaning ascribed to it in NRS 463.0155.
Sec. 5. NRS 463.0177 is hereby amended to read as follows:
463.0177 Nonrestricted license or nonrestricted operation means:
1. A state gaming license for, or an operation consisting of, 16 or more slot machines;
2. A license for, or operation of, any number of slot machines together with any other game, gaming device, race book or sports pool at one establishment;
3. A license for, or the operation of, a slot machine route; or
4. A license for, or the operation of, an inter-casino linked system . [; or
5. A license for, or the operation of, a mobile gaming system.]
Sec. 6. NRS 463.160 is hereby amended to read as follows:
463.160 1. Except as otherwise provided in subsection 4 and NRS 463.172, it is unlawful for any person, either as owner, lessee or employee, whether for hire or not, either solely or in conjunction with others:
(a) To deal, operate, carry on, conduct, maintain or expose for play in the State of Nevada any gambling game, gaming device, inter-casino linked system, [mobile gaming system,] slot machine, race book or sports pool;
κ2019 Statutes of Nevada, Page 1278 (CHAPTER 226, SB 73)κ
(b) To provide or maintain any information service;
(c) To operate a gaming salon;
(d) To receive, directly or indirectly, any compensation or reward or any percentage or share of the money or property played, for keeping, running or carrying on any gambling game, slot machine, gaming device, [mobile gaming system,] race book or sports pool;
(e) To operate as a cash access and wagering instrument service provider; or
(f) To operate, carry on, conduct, maintain or expose for play in or from the State of Nevada any interactive gaming system,
Κ without having first procured, and thereafter maintaining in effect, all federal, state, county and municipal gaming licenses as required by statute, regulation or ordinance or by the governing board of any unincorporated town.
2. The licensure of an operator of an inter-casino linked system is not required if:
(a) A gaming licensee is operating an inter-casino linked system on the premises of an affiliated licensee; or
(b) An operator of a slot machine route is operating an inter-casino linked system consisting of slot machines only.
3. Except as otherwise provided in subsection 4, it is unlawful for any person knowingly to permit any gambling game, slot machine, gaming device, inter-casino linked system, [mobile gaming system,] race book or sports pool to be conducted, operated, dealt or carried on in any house or building or other premises owned by the person, in whole or in part, by a person who is not licensed pursuant to this chapter, or that persons employee.
4. The Commission may, by regulation, authorize a person to own or lease gaming devices for the limited purpose of display or use in the persons private residence without procuring a state gaming license.
5. For the purposes of this section, the operation of a race book or sports pool includes making the premises available for any of the following purposes:
(a) Allowing patrons to establish an account for wagering with the race book or sports pool;
(b) Accepting wagers from patrons;
(c) Allowing patrons to place wagers;
(d) Paying winning wagers to patrons; or
(e) Allowing patrons to withdraw cash from an account for wagering or to be issued a ticket, receipt, representation of value or other credit representing a withdrawal from an account for wagering that can be redeemed for cash,
Κ whether by a transaction in person at an establishment or through mechanical means, such as a kiosk or similar device, regardless of whether that device would otherwise be considered associated equipment. A separate license must be obtained for each location at which such an operation is conducted.
6. As used in this section, affiliated licensee has the meaning ascribed to it in NRS 463.430.
Sec. 7. NRS 463.1605 is hereby amended to read as follows:
463.1605 1. Except as otherwise provided in subsection 3, the Commission shall not approve a nonrestricted license, other than for the operation of a [mobile gaming system,] race book or sports pool at an establishment which holds a nonrestricted license to operate both gaming devices and a gambling game, for an establishment in a county whose population is 100,000 or more unless the establishment is a resort hotel.
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operation of a [mobile gaming system,] race book or sports pool at an establishment which holds a nonrestricted license to operate both gaming devices and a gambling game, for an establishment in a county whose population is 100,000 or more unless the establishment is a resort hotel.
2. A county, city or town may require resort hotels to meet standards in addition to those required by this chapter as a condition of issuance of a gaming license by the county, city or town.
3. The Commission may approve a nonrestricted license for an establishment which is not a resort hotel at a new location if:
(a) The establishment was acquired or displaced pursuant to a redevelopment project undertaken by an agency created pursuant to chapter 279 of NRS in accordance with a final order of condemnation entered before June 17, 2005; or
(b) The establishment was acquired or displaced pursuant to a redevelopment project undertaken by an agency created pursuant to chapter 279 of NRS in accordance with a final order of condemnation entered on or after June 17, 2005, and the new location of the establishment is within the same redevelopment area as the former location of the establishment.
Sec. 8. NRS 463.245 is hereby amended to read as follows:
463.245 1. Except as otherwise provided in this section:
(a) All licenses issued to the same person, including a wholly owned subsidiary of that person, for the operation of any game, including a sports pool or race book, which authorize gaming at the same establishment must be merged into a single gaming license.
(b) A gaming license may not be issued to any person if the issuance would result in more than one licensed operation at a single establishment, whether or not the profits or revenue from gaming are shared between the licensed operations.
2. A person who has been issued a nonrestricted gaming license for an operation described in subsection 1 [,] or 2 [or 5] of NRS 463.0177 may establish a sports pool or race book on the premises of the establishment only after obtaining permission from the Commission.
3. A person who has been issued a license to operate a sports pool or race book at an establishment may be issued a license to operate a sports pool or race book at a second establishment described in subsection 1 or 2 of NRS 463.0177 only if the second establishment is operated by a person who has been issued a nonrestricted license for that establishment. A person who has been issued a license to operate a race book or sports pool at an establishment is prohibited from operating a race book or sports pool at:
(a) An establishment for which a restricted license has been granted; or
(b) An establishment at which only a nonrestricted license has been granted for an operation described in subsection 3 or 4 of NRS 463.0177.
4. A person who has been issued a license to operate a race book or sports pool shall not enter into an agreement for the sharing of revenue from the operation of the race book or sports pool with another person in consideration for the offering, placing or maintaining of a kiosk or other similar device not physically located on the licensed premises of the race book or sports pool, except:
(a) An affiliated licensed race book or sports pool; or
(b) The licensee of an establishment at which the race book or sports pool holds or obtains a license to operate pursuant to this section.
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Κ This subsection does not prohibit an operator of a race book or sports pool from entering into an agreement with another person for the provision of shared services relating to advertising or marketing.
5. Nothing in this section limits or prohibits an operator of an inter-casino linked system from placing and operating such a system on the premises of two or more gaming licensees and receiving, either directly or indirectly, any compensation or any percentage or share of the money or property played from the linked games in accordance with the provisions of this chapter and the regulations adopted by the Commission. An inter-casino linked system must not be used to link games other than slot machines, unless such games are located at an establishment that is licensed for games other than slot machines.
6. For the purposes of this section, the operation of a race book or sports pool includes making the premises available for any of the following purposes:
(a) Allowing patrons to establish an account for wagering with the race book or sports pool;
(b) Accepting wagers from patrons;
(c) Allowing patrons to place wagers;
(d) Paying winning wagers to patrons; or
(e) Allowing patrons to withdraw cash from an account for wagering or to be issued a ticket, receipt, representation of value or other credit representing a withdrawal from an account for wagering that can be redeemed for cash,
Κ whether by a transaction in person at an establishment or through mechanical means such as a kiosk or other similar device, regardless of whether that device would otherwise be considered associated equipment.
7. The provisions of this section do not apply to a license to operate [a mobile gaming system or to operate] interactive gaming.
Sec. 9. NRS 463.305 is hereby amended to read as follows:
463.305 1. Any person who operates or maintains in this State any gaming device of a specific model, any gaming device which includes a significant modification [, any mobile gaming system] or any inter-casino linked system which the Board or Commission has not approved for testing or for operation is subject to disciplinary action by the Board or Commission.
2. The Board shall maintain a list of approved gaming devices [, mobile gaming systems] and inter-casino linked systems.
3. If the Board suspends or revokes approval of a gaming device pursuant to the regulations adopted pursuant to subsection 4 , [or suspends or revokes approval of a mobile gaming system pursuant to the regulations adopted pursuant to NRS 463.730,] the Board may order the removal of the gaming device [or mobile gaming system] from an establishment.
4. The Commission shall adopt regulations relating to gaming devices and their significant modification and inter-casino linked systems.
Sec. 10. NRS 463.3855 is hereby amended to read as follows:
463.3855 1. In addition to any other state license fees imposed by this chapter, the Commission shall, before issuing a state gaming license to an operator of a slot machine route [, an operator of a mobile gaming system] or an operator of an inter-casino linked system, charge and collect an annual license fee of $500.
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2. Each such license must be issued for a calendar year beginning January 1 and ending December 31. If the operation of the licensee is continuing, the Commission shall charge and collect the fee on or before December 31 for the ensuing calendar year.
3. Except as otherwise provided in NRS 463.386, the fee to be charged and collected under this section is the full annual fee, without regard to the date of application for or issuance of the license.
Sec. 10.2. NRS 463.482 is hereby amended to read as follows:
463.482 As used in NRS 463.160 to 463.170, inclusive, 463.368, 463.386, 463.482 to 463.645, inclusive, and 463.750, unless the context otherwise requires, the words and terms defined in NRS 463.4825 to 463.488, inclusive, and sections 1.3 and 1.5 of this act have the meanings ascribed to them in those sections.
Sec. 10.4. NRS 463.622 is hereby amended to read as follows:
463.622 The policy of the State of Nevada with respect to corporate affairs, including, without limitation, corporate acquisitions, repurchases of securities and corporate recapitalizations affecting corporate licensees and publicly traded corporations that are affiliated companies is to:
1. Assure the financial stability of corporate licensees and affiliated companies;
2. Protect the continued integrity of corporate gaming in matters of corporate governance;
3. Preserve the beneficial aspects of conducting business in the corporate form; and
[3.] 4. Promote a neutral environment for the orderly governance of corporate affairs that is consistent with the public policy of this state concerning gaming.
Sec. 10.6. NRS 463.623 is hereby amended to read as follows:
463.623 1. The Commission [may] shall adopt regulations providing for the review and approval of corporate acquisitions opposed by management, repurchases of securities and corporate defense tactics affecting corporate gaming licensees and publicly traded corporations that are affiliated companies. The regulations must be consistent with:
[1.] (a) The policy of this state as expressed in this chapter;
[2.] (b) The provisions of this chapter;
[3.] (c) The requirements of the Constitution of the United States; and
[4.] (d) Federal regulation of securities.
2. The regulations must include, without limitation:
(a) Procedures by which a person, before engaging in certain proscribed activities, directly or indirectly, to materially influence or affect the affairs of a publicly traded corporation that is registered with the Commission, must file an application for a finding of suitability pursuant to NRS 463.643;
(b) Provisions that determine which corporate activities, in addition to those described in subsection 5 of NRS 463.643, influence or affect the affairs of a corporation in such a way that the Commission would require a person to file an application for a finding of suitability pursuant to NRS 463.643; and
(c) Provisions that ensure that a person is not unduly prohibited from lawfully exercising any of his or her voting rights derived from being a shareholder of a publicly traded corporation.
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Sec. 10.8. NRS 463.643 is hereby amended to read as follows:
463.643 1. Each person who acquires, directly or indirectly:
(a) Beneficial ownership of any voting security; or
(b) Beneficial or record ownership of any nonvoting security,
Κ in a publicly traded corporation which is registered with the Commission may be required to be found suitable if the Commission has reason to believe that the persons acquisition of that ownership would otherwise be inconsistent with the declared policy of this state.
2. Each person who acquires, directly or indirectly, beneficial or record ownership of any debt security in a publicly traded corporation which is registered with the Commission may be required to be found suitable if the Commission has reason to believe that the persons acquisition of the debt security would otherwise be inconsistent with the declared policy of this state.
3. Each person who, individually or in association with others, acquires [,] or holds, directly or indirectly, beneficial ownership of more than 5 percent of any class of voting securities of a publicly traded corporation registered with the Nevada Gaming Commission, and who is required to report, or voluntarily reports, the acquisition or holding to the Securities and Exchange Commission pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended, 15 U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively, shall, [within 10 days] after filing the report and any amendment thereto with the Securities and Exchange Commission, notify the Nevada Gaming Commission on the date specified in regulation by the Nevada Gaming Commission and in the manner prescribed by the Chair of the Board that the report has been filed with the Securities and Exchange Commission.
4. Each person who, individually or in association with others, acquires [,] or holds, directly or indirectly, the beneficial ownership of more than 10 percent of any class of voting securities of a publicly traded corporation registered with the Commission, or who is required to report, or voluntarily reports, such acquisition or holding pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended, 15 U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively, shall apply to the Commission for a finding of suitability within 30 days after the [Chair of the Board mails the written notice.] date specified by the Commission by regulation.
5. A person who acquires, directly or indirectly:
(a) Beneficial ownership of any voting security; or
(b) Beneficial or record ownership of any nonvoting security or debt security,
Κ in a publicly traded corporation created under the laws of a foreign country which is registered with the Commission shall file such reports and is subject to such a finding of suitability as the Commission may prescribe.
6. Except as otherwise provided in subsection 7, each person who, individually or in association with others, acquires or holds, directly or indirectly, the beneficial ownership of any amount of any class of voting securities of a publicly traded corporation registered with the Commission or each plan sponsor of a pension or employee benefit plan that acquires or holds any amount of any class of voting securities in such a publicly traded corporation, and who has the intent to engage in any proscribed activity shall:
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(a) Within 2 days after possession of such intent, notify the Chair of the Board in the manner prescribed by the Chair;
(b) Apply to the Commission for a finding of suitability within 30 days after notifying the Chair pursuant to paragraph (a); and
(c) Deposit with the Board the sum of money required by the Board pursuant to subsection 8.
7. Except as otherwise provided by the Commission, a person who has beneficial ownership of less than 10 percent of each class of voting securities of a publicly traded corporation registered with the Commission, acquired or held by the person through a pension or employee benefit plan, or the plan sponsor of a pension or employee benefit plan that has ownership of less than 10 percent of each class of voting securities of such a publicly traded corporation, need not notify the Commission, apply for a finding of suitability with the Commission or deposit the required sum of money with the Board pursuant to subsection 6 before engaging in any proscribed activity.
8. Any person required by the Commission or by this section to be found suitable shall:
(a) Except as otherwise required in subsection 4, apply for a finding of suitability within 30 days after the Commission requests that the person do so; and
(b) Together with the application, deposit with the Board a sum of money which, in the opinion of the Board, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application, and deposit such additional sums as are required by the Board to pay final costs and charges.
[7.] 9. Any person required by the Commission or this section to be found suitable who is found unsuitable by the Commission shall not hold directly or indirectly the:
(a) Beneficial ownership of any voting security; or
(b) Beneficial or record ownership of any nonvoting security or debt security,
Κ of a publicly traded corporation which is registered with the Commission beyond the time prescribed by the Commission.
[8.] 10. The violation of subsection [6] 8 or [7] 9 is a gross misdemeanor.
[9.] 11. As used in this section, debt security means any instrument generally recognized as a corporate security representing money owed and reflected as debt on the financial statement of a publicly traded corporation, including, but not limited to, bonds, notes and debentures.
Sec. 11. NRS 463.650 is hereby amended to read as follows:
463.650 1. Except as otherwise provided in subsections 2 to 7, inclusive, it is unlawful for any person, either as owner, lessee or employee, whether for hire or not, to operate, carry on, conduct or maintain any form of manufacture, selling or distribution of any gaming device, cashless wagering system [, mobile gaming system] or interactive gaming system for use or play in Nevada without first procuring and maintaining all required federal, state, county and municipal licenses.
2. A lessor who specifically acquires equipment for a capital lease is not required to be licensed under this section.
3. The holder of a state gaming license or the holding company of a corporation, partnership, limited partnership, limited-liability company or other business organization holding a license may, within 2 years after cessation of business or upon specific approval by the Board, dispose of by sale in a manner approved by the Board, any or all of its gaming devices, including slot machines [, mobile gaming systems] and cashless wagering systems, without a distributors license.
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other business organization holding a license may, within 2 years after cessation of business or upon specific approval by the Board, dispose of by sale in a manner approved by the Board, any or all of its gaming devices, including slot machines [, mobile gaming systems] and cashless wagering systems, without a distributors license. In cases of bankruptcy of a state gaming licensee or foreclosure of a lien by a bank or other person holding a security interest for which gaming devices are security in whole or in part for the lien, the Board may authorize the disposition of the gaming devices without requiring a distributors license.
4. The Commission may, by regulation, authorize a person who owns:
(a) Gaming devices for home use in accordance with NRS 463.160; or
(b) Antique gaming devices,
Κ to sell such devices without procuring a license therefor to residents of jurisdictions wherein ownership of such devices is legal.
5. Upon approval by the Board, a gaming device owned by:
(a) A law enforcement agency;
(b) A court of law; or
(c) A gaming device repair school licensed by the Commission on Postsecondary Education,
Κ may be disposed of by sale, in a manner approved by the Board, without a distributors license. An application for approval must be submitted to the Board in the manner prescribed by the Chair.
6. A manufacturer who performs any action described in paragraph (a), (b) or (c) of subsection 1 of NRS 463.01715 is not required to be licensed under the provisions of this section with respect to the performance of that action if another manufacturer who is licensed under the provisions of this section assumes responsibility for the performance of that action.
7. An independent contractor who designs, develops, programs, produces or composes a control program for use in the manufacture of a gaming device that is for use or play in this State is not required to be licensed under the provisions of this section with respect to the design, development, programming, production or composition of a control program if a manufacturer who is licensed under the provisions of this section assumes responsibility for the design, development, programming, production or composition of the control program.
8. Any person who the Commission determines is a suitable person to receive a license under the provisions of this section may be issued a manufacturers or distributors license. The burden of proving his or her qualification to receive or hold a license under this section is at all times on the applicant or licensee.
9. Every person who must be licensed pursuant to this section is subject to the provisions of NRS 463.482 to 463.645, inclusive, unless exempted from those provisions by the Commission.
10. The Commission may exempt, for any purpose, a manufacturer, seller or distributor from the provisions of NRS 463.482 to 463.645, inclusive, if the Commission determines that the exemption is consistent with the purposes of this chapter.
11. Any person conducting business in Nevada who is not required to be licensed as a manufacturer, seller or distributor pursuant to subsection 1, but who otherwise must register with the Attorney General of the United States pursuant to Title 15 of U.S.C., must submit to the Board a copy of such registration within 10 days after submission to the Attorney General of the United States.
κ2019 Statutes of Nevada, Page 1285 (CHAPTER 226, SB 73)κ
States pursuant to Title 15 of U.S.C., must submit to the Board a copy of such registration within 10 days after submission to the Attorney General of the United States.
12. It is unlawful for any person, either as owner, lessee or employee, whether for hire or not, to knowingly distribute any gaming device, cashless wagering system, [mobile gaming system,] interactive gaming system or associated equipment from Nevada to any jurisdiction where the possession, ownership or use of any such device, system or equipment is illegal.
13. As used in this section:
(a) Antique gaming device means a gaming device that was manufactured before 1961.
(b) Assume responsibility has the meaning ascribed to it in NRS 463.01715.
(c) Control program has the meaning ascribed to it in NRS 463.0155.
(d) Holding company has the meaning ascribed to it in NRS 463.485.
(e) Independent contractor has the meaning ascribed to it in NRS 463.01715.
Sec. 12. NRS 463.6505 is hereby amended to read as follows:
463.6505 1. In addition to any other requirements set forth in this chapter, an applicant for the renewal of a license as a manufacturer, distributor or seller of gaming devices [or mobile gaming systems] must indicate in the application submitted to the Commission whether the applicant has a state business license. If the applicant has a state business license, the applicant must include in the application the business identification number assigned by the Secretary of State upon compliance with the provisions of chapter 76 of NRS.
2. A license as a manufacturer, distributor or seller of gaming devices [or mobile gaming systems] may not be renewed by the Commission if:
(a) The applicant fails to submit the information required by subsection 1; or
(b) The State Controller has informed the Commission pursuant to subsection 5 of NRS 353C.1965 that the applicant owes a debt to an agency that has been assigned to the State Controller for collection and the applicant has not:
(1) Satisfied the debt;
(2) Entered into an agreement for the payment of the debt pursuant to NRS 353C.130; or
(3) Demonstrated that the debt is not valid.
3. As used in this section:
(a) Agency has the meaning ascribed to it in NRS 353C.020.
(b) Debt has the meaning ascribed to it in NRS 353C.040.
Sec. 13. NRS 463.651 is hereby amended to read as follows:
463.651 1. A natural person who applies for the issuance or renewal of a license as a manufacturer, distributor or seller of gaming devices [or mobile gaming systems] shall submit to the Commission 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 Commission shall include the statement required pursuant to subsection 1 in:
κ2019 Statutes of Nevada, Page 1286 (CHAPTER 226, SB 73)κ
(a) The application or any other forms that must be submitted for the issuance or renewal of the license; or
(b) A separate form prescribed by the Commission.
3. A license as a manufacturer, distributor or seller of gaming devices [or mobile gaming systems] may not be issued or renewed by the Commission 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 the applicant 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 the applicant 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 Commission 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. 14. NRS 463.652 is hereby amended to read as follows:
463.652 1. If the Commission receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license as a manufacturer, distributor or seller of gaming devices , [or mobile gaming systems,] the Commission shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commission receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
2. The Commission shall reinstate a license as a manufacturer, distributor or seller of gaming devices [or mobile gaming systems] that has been suspended by a district court pursuant to NRS 425.540 if the Commission receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
Sec. 15. NRS 463.653 is hereby amended to read as follows:
463.653 The application of a natural person who applies for the issuance of a license as a manufacturer, distributor or seller of gaming devices [or mobile gaming systems] must include the social security number of the applicant.
Sec. 16. NRS 463.670 is hereby amended to read as follows:
463.670 1. The Legislature finds and declares as facts:
(a) That the inspection of games, gaming devices, associated equipment, cashless wagering systems, inter-casino linked systems [, mobile gaming systems] and interactive gaming systems is essential to carry out the provisions of this chapter.
(b) That the inspection of games, gaming devices, associated equipment, cashless wagering systems, inter-casino linked systems [, mobile gaming systems] and interactive gaming systems is greatly facilitated by the opportunity to inspect components before assembly and to examine the methods of manufacture.
κ2019 Statutes of Nevada, Page 1287 (CHAPTER 226, SB 73)κ
systems] and interactive gaming systems is greatly facilitated by the opportunity to inspect components before assembly and to examine the methods of manufacture.
(c) That the interest of this State in the inspection of games, gaming devices, associated equipment, cashless wagering systems, inter-casino linked systems [, mobile gaming systems] and interactive gaming systems must be balanced with the interest of this State in maintaining a competitive gaming industry in which games can be efficiently and expeditiously brought to the market.
2. The Commission may, with the advice and assistance of the Board, adopt and implement procedures that preserve and enhance the necessary balance between the regulatory and economic interests of this State which are critical to the vitality of the gaming industry of this State.
3. The Board may inspect every game or gaming device which is manufactured, sold or distributed:
(a) For use in this State, before the game or gaming device is put into play.
(b) In this State for use outside this State, before the game or gaming device is shipped out of this State.
4. The Board may inspect every game or gaming device which is offered for play within this State by a state gaming licensee.
5. The Board may inspect all associated equipment, every cashless wagering system, every inter-casino linked system [, every mobile gaming system] and every interactive gaming system which is manufactured, sold or distributed for use in this State before the equipment or system is installed or used by a state gaming licensee and at any time while the state gaming licensee is using the equipment or system.
6. In addition to all other fees and charges imposed by this chapter, the Board may determine, charge and collect an inspection fee from each manufacturer, seller, distributor or independent testing laboratory which must not exceed the actual cost of inspection and investigation.
7. The Commission shall adopt regulations which:
(a) Provide for the registration of independent testing laboratories and of each person that owns, operates or has significant involvement with an independent testing laboratory, specify the form of the application required for such registration, set forth the qualifications required for such registration and establish the fees required for the application, the investigation of the applicant and the registration of the applicant.
(b) Authorize the Board to utilize independent testing laboratories for the inspection and certification of any game, gaming device, associated equipment, cashless wagering system, inter-casino linked system [, mobile gaming system] or interactive gaming system, or any components thereof.
(c) Establish uniform protocols and procedures which the Board and independent testing laboratories must follow during an inspection performed pursuant to subsection 3 or 5, and which independent testing laboratories must follow during the certification of any game, gaming device, associated equipment, cashless wagering system, inter-casino linked system [, mobile gaming system] or interactive gaming system, or any components thereof, for use in this State or for shipment from this State.
(d) Allow an application for the registration of an independent testing laboratory to be granted upon the independent testing laboratorys completion of an inspection performed in compliance with the uniform protocols and procedures established pursuant to paragraph (c) and satisfaction of such other requirements that the Board may establish.
κ2019 Statutes of Nevada, Page 1288 (CHAPTER 226, SB 73)κ
protocols and procedures established pursuant to paragraph (c) and satisfaction of such other requirements that the Board may establish.
(e) Provide the standards and procedures for the revocation of the registration of an independent testing laboratory.
(f) Provide the standards and procedures relating to the filing of an application for a finding of suitability pursuant to this section and the remedies should a person be found unsuitable.
(g) Provide any additional provisions which the Commission deems necessary and appropriate to carry out the provisions of this section and which are consistent with the public policy of this State pursuant to NRS 463.0129.
8. The Commission shall retain jurisdiction over any person registered pursuant to this section and any regulation adopted thereto, in all matters relating to a game, gaming device, associated equipment, cashless wagering system, inter-casino linked system [, mobile gaming system] or interactive gaming system, or any component thereof or modification thereto, even if the person ceases to be registered.
9. A person registered pursuant to this section is subject to the investigatory and disciplinary proceedings that are set forth in NRS 463.310 to 463.318, inclusive, and shall be punished as provided in those sections.
10. The Commission may, upon recommendation of the Board, require the following persons to file an application for a finding of suitability:
(a) A registered independent testing laboratory.
(b) An employee of a registered independent testing laboratory.
(c) An officer, director, partner, principal, manager, member, trustee or direct or beneficial owner of a registered independent testing laboratory or any person that owns or has significant involvement with the activities of a registered independent testing laboratory.
11. If a person fails to submit an application for a finding of suitability within 30 days after a demand by the Commission pursuant to this section, the Commission may make a finding of unsuitability. Upon written request, such period may be extended by the Chair of the Commission, at the Chairs sole and absolute discretion.
12. As used in this section, unless the context otherwise requires, independent testing laboratory means a private laboratory that is registered by the Board to inspect and certify games, gaming devices, associated equipment, cashless wagering systems, inter-casino linked systems [, mobile gaming systems] or interactive gaming systems, and any components thereof and modifications thereto, and to perform such other services as the Board and Commission may request.
Sec. 17. NRS 463.677 is hereby amended to read as follows:
463.677 1. The Legislature finds that:
(a) Technological advances have evolved which allow licensed gaming establishments to expose games, including, without limitation, system-based and system-supported games, gaming devices, [mobile gaming systems,] interactive gaming, cashless wagering systems or race books and sports pools, and to be assisted by a service provider who provides important services to the public with regard to the conduct and exposure of such games.
(b) To protect and promote the health, safety, morals, good order and general welfare of the inhabitants of this State, and to carry out the public policy declared in NRS 463.0129, it is necessary that the Board and Commission have the ability to license service providers by maintaining strict regulation and control of the operation of such service providers and all persons and locations associated therewith.
κ2019 Statutes of Nevada, Page 1289 (CHAPTER 226, SB 73)κ
strict regulation and control of the operation of such service providers and all persons and locations associated therewith.
2. Except as otherwise provided in subsection 3, the Commission may, with the advice and assistance of the Board, provide by regulation for the licensing and operation of a service provider and all persons, locations and matters associated therewith. Such regulations may include, without limitation:
(a) Provisions requiring the service provider to meet the qualifications for licensing pursuant to NRS 463.170, in addition to any other qualifications established by the Commission, and to be licensed regardless of whether the service provider holds any other license.
(b) Criteria regarding the location from which the service provider conducts its operations, including, without limitation, minimum internal and operational control standards established by the Commission.
(c) Provisions relating to the licensing of persons owning or operating a service provider, and any persons having a significant involvement therewith, as determined by the Commission.
(d) A provision that a person owning, operating or having significant involvement with a service provider, as determined by the Commission, may be required by the Commission to be found suitable to be associated with licensed gaming, including race book or sports pool operations.
(e) Additional matters which the Commission deems necessary and appropriate to carry out the provisions of this section and which are consistent with the public policy of this State pursuant to NRS 463.0129, including that a service provider must be liable to the licensee on whose behalf the services are provided for the service providers proportionate share of the fees and taxes paid by the licensee.
3. The Commission may not adopt regulations pursuant to this section until the Commission first determines that service providers are secure and reliable, do not pose a threat to the integrity of gaming and are consistent with the public policy of this State pursuant to NRS 463.0129.
4. Regulations adopted by the Commission pursuant to this section must provide that the premises on which a service provider conducts its operations are subject to the power and authority of the Board and Commission pursuant to NRS 463.140, as though the premises are where gaming is conducted and the service provider is a gaming licensee.
5. As used in this section:
(a) Interactive gaming service provider means a person who acts on behalf of an establishment licensed to operate interactive gaming and:
(1) Manages, administers or controls wagers that are initiated, received or made on an interactive gaming system;
(2) Manages, administers or controls the games with which wagers that are initiated, received or made on an interactive gaming system are associated;
(3) Maintains or operates the software or hardware of an interactive gaming system; or
(4) Provides products, services, information or assets to an establishment licensed to operate interactive gaming and receives therefor a percentage of gaming revenue from the establishments interactive gaming system.
(b) Service provider means a person who:
κ2019 Statutes of Nevada, Page 1290 (CHAPTER 226, SB 73)κ
(1) Acts on behalf of another licensed person who conducts nonrestricted gaming operations, and who assists, manages, administers or controls wagers or games, or maintains or operates the software or hardware of games on behalf of such a licensed person, and is authorized to share in the revenue from games without being licensed to conduct gaming at an establishment;
(2) Is an interactive gaming service provider;
(3) Is a cash access and wagering instrument service provider; or
(4) Meets such other or additional criteria as the Commission may establish by regulation.
Sec. 18. NRS 465.070 is hereby amended to read as follows:
465.070 It is unlawful for any person:
1. To alter or misrepresent the outcome of a game or other event on which wagers have been made after the outcome is made sure but before it is revealed to the players.
2. To place, increase or decrease a bet or to determine the course of play after acquiring knowledge, not available to all players, of the outcome of the game or any event that affects the outcome of the game or which is the subject of the bet or to aid anyone in acquiring such knowledge for the purpose of placing, increasing or decreasing a bet or determining the course of play contingent upon that event or outcome.
3. To claim, collect or take, or attempt to claim, collect or take, money or anything of value in or from a gambling game, with intent to defraud, without having made a wager contingent thereon, or to claim, collect or take an amount greater than the amount won.
4. Knowingly to entice or induce another to go to any place where a gambling game is being conducted or operated in violation of the provisions of this chapter, with the intent that the other person play or participate in that gambling game.
5. To place or increase a bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet, including past-posting and pressing bets.
6. To reduce the amount wagered or cancel the bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet, including pinching bets.
7. To manipulate, with the intent to cheat, any component of a gaming device in a manner contrary to the designed and normal operational purpose for the component, including, but not limited to, varying the pull of the handle of a slot machine, with knowledge that the manipulation affects the outcome of the game or with knowledge of any event that affects the outcome of the game.
8. To offer, promise or give anything of value to anyone for the purpose of influencing the outcome of a race, sporting event, contest or game upon which a wager may be made, or to place, increase or decrease a wager after acquiring knowledge, not available to the general public, that anyone has been offered, promised or given anything of value for the purpose of influencing the outcome of the race, sporting event, contest or game upon which the wager is placed, increased or decreased.
9. To change or alter the normal outcome of any game played on an interactive gaming system [or a mobile gaming system] or the way in which the outcome is reported to any participant in the game.
κ2019 Statutes of Nevada, Page 1291 (CHAPTER 226, SB 73)κ
Sec. 19. NRS 465.094 is hereby amended to read as follows:
465.094 The provisions of NRS 465.092 and 465.093 do not apply to global risk management pursuant to NRS 463.810 and 463.820 or to a wager placed by a person for the persons own benefit or, without compensation, for the benefit of another that is accepted or received by, placed with, or sent, transmitted or relayed to:
1. A race book or sports pool that is licensed pursuant to chapter 463 of NRS, if the wager is accepted or received within this State and otherwise complies with all other applicable laws and regulations concerning wagering;
2. A person who is licensed to engage in off-track pari-mutuel wagering pursuant to chapter 464 of NRS, if the wager is accepted or received within this State and otherwise complies with subsection 3 of NRS 464.020 and all other applicable laws and regulations concerning wagering;
3. [A person who is licensed to operate a mobile gaming system pursuant to chapter 463 of NRS, if the wager is accepted or received within this State and otherwise complies with all other applicable laws and regulations concerning wagering;
4.] Any other person or establishment that is licensed to engage in wagering pursuant to title 41 of NRS, if the wager is accepted or received within this State and otherwise complies with all other applicable laws and regulations concerning wagering; or
[5.] 4. Any other person or establishment that is licensed to engage in wagering in another jurisdiction and is permitted to accept or receive a wager from patrons within this State under an agreement entered into by the Governor pursuant to NRS 463.747.
Sec. 19.5. 1. The amendatory provisions of section 3 of this act do not apply to an employee of an operator of a mobile gaming system described in subsection 2 whose duties include the operational or supervisory control of the system or the games that are part of the system.
2. The amendatory provisions of sections 5, 7, 8, 10, 18 and 19 of this act do not apply to:
(a) A person who holds a nonrestricted license for a mobile gaming system or who holds such a license for the operation of a mobile gaming system that was issued on or before June 30, 2019;
(b) A person who before, on or after July 1, 2019, acquires a financial interest in:
(1) An operator of a mobile gaming system described in paragraph (a); or
(2) The operation of such a mobile gaming system described in paragraph (a); or
(c) A successor in interest to a person who acquires a financial interest described in paragraph (b).
3. The provisions of statute repealed by section 20 of this act continue to apply on and after July 1, 2019, to any person or transaction described in subsections 1 and 2.
4. The provisions of this section do not exempt a person or transaction from any provision of law relating to the licensure, registration, finding of suitability, review or approval of such a person or transaction.
Sec. 20. NRS 463.0176, 463.730 and 463.735 are hereby repealed.
Sec. 21. 1. This section and sections 1, 1.3, 1.5 and 10.2 to 10.8, inclusive, of this act become effective upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks to carry out the amendatory provisions of this act, and on January 1, 2020, for all other purposes.
κ2019 Statutes of Nevada, Page 1292 (CHAPTER 226, SB 73)κ
administrative tasks to carry out the amendatory provisions of this act, and on January 1, 2020, for all other purposes.
2. Sections 1.7 to 10, inclusive, and 11 to 20, inclusive, of this act become effective on July 1, 2019.
________
Senate Bill No. 113Senator Hammond
CHAPTER 227
[Approved: May 29, 2019]
AN ACT relating to homeland security; revising the membership of the Nevada Commission on Homeland Security; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law establishes the Nevada Commission on Homeland Security and requires the Governor to appoint to the Commission a representative of the broadcaster community. (NRS 239C.120) Section 1 of this bill removes the requirement to appoint a representative of the broadcaster community and instead requires the Governor to appoint the President and CEO, or his or her designee, of the Nevada Broadcasters Association as an ex officio member of the Commission.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 239C.120 is hereby amended to read as follows:
239C.120 1. The Nevada Commission on Homeland Security is hereby created.
2. The Governor shall appoint to the Commission [16] 15 voting members that the Governor determines to be appropriate and who serve at the Governors pleasure, which must include at least:
(a) The sheriff of each county whose population is 100,000 or more.
(b) The chief of the county fire department in each county whose population is 100,000 or more.
(c) A member of the medical community in a county whose population is 700,000 or more.
(d) An employee of the largest incorporated city in each county whose population is 700,000 or more.
(e) [A representative of the broadcaster community. As used in this paragraph, broadcaster has the meaning ascribed to it in NRS 432.310.
(f)] A representative recommended by the Inter-Tribal Council of Nevada, Inc., or its successor organization, to represent tribal governments in Nevada.
3. The Governor shall appoint the President and CEO, or his or her designee, of the Nevada Broadcasters Association, or its successor organization, to serve as an ex officio voting member of the Commission.
κ2019 Statutes of Nevada, Page 1293 (CHAPTER 227, SB 113)κ
4. The Governor shall appoint:
(a) An officer of the United States Department of Homeland Security whom the Department of Homeland Security has designated for this State;
(b) The agent in charge of the office of the Federal Bureau of Investigation in this State;
(c) The Chief of the Division; and
(d) The Administrator of the Nevada Office of Cyber Defense Coordination appointed pursuant to NRS 480.920,
Κ as nonvoting members of the Commission.
[4.] 5. The Senate Majority Leader shall appoint one member of the Senate as a nonvoting member of the Commission.
[5.] 6. The Speaker of the Assembly shall appoint one member of the Assembly as a nonvoting member of the Commission.
[6.] 7. The term of office of each member of the Commission who is a Legislator is 2 years.
[7.] 8. The Governor or his or her designee shall:
(a) Serve as Chair of the Commission; and
(b) Appoint a member of the Commission to serve as Vice Chair of the Commission.
Sec. 2. This act becomes effective on July 1, 2019.
________
Senate Bill No. 150Senators Goicoechea, Settelmeyer, Hardy; and Hansen
Joint Sponsor: Assemblyman Ellison
CHAPTER 228
[Approved: May 29, 2019]
AN ACT relating to land use planning; requiring, with limited exception, the governing body of a county or city to develop and maintain a water resource plan; authorizing grants of money to certain governing bodies for the development and maintenance of water resource plans; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Under existing law, planning commissions and certain governing bodies prepare and adopt a comprehensive, long-term general plan for the physical development of the city, county or region called a master plan. (NRS 278.150) Section 1 of this bill requires, with limited exception, the governing body of a county or city to develop and maintain a water resource plan. Section 1 further sets forth the requirements for such a plan.
Existing law establishes a program to provide grants of money to purveyors of water and eligible recipients to pay certain costs relating to water. (NRS 349.981) Section 4 of this bill provides that the program may also provide grants of money to the governing body of a county or city to develop and maintain a water resource plan.
κ2019 Statutes of Nevada, Page 1294 (CHAPTER 228, SB 150)κ
EXPLANATION
Matter in bolded italics is
new; matter between brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 278 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 3, a governing body shall develop and maintain a water resource plan that must include, without limitation:
(a) The identification of all known sources of surface water, groundwater and effluent that are physically and legally available for use in the community;
(b) An analysis of the:
(1) Existing demand for water in the community; and
(2) Expected demand for water in the community caused by projected growth; and
(c) An analysis of whether the sources of water identified in paragraph (a) are of sufficient quality and quantity to satisfy the existing and expected demands described in paragraph (b).
(d) If the analysis required pursuant to paragraph (c) determines that the sources of water identified in paragraph (a) are not of sufficient quality or quantity to satisfy demands, a plan for obtaining additional water of sufficient quality and quantity.
2. The governing body shall update the water resource plan at least once every 10 years.
3. The governing body of:
(a) A city is not required to develop and maintain the water resource plan described in subsection 1 if the governing body of the county in which the city is located has adopted a water resource plan that includes the information described in subsection 1 pertaining to the city.
(b) A city or a county is not required to develop and maintain the water resource plan described in subsection 1 if:
(1) The city or county, as applicable, is included within a regional planning district; and
(2) The regional plan adopted by the regional planning commission of the district has included the information described in subsection 1 pertaining to the city or county, as applicable.
(c) A city or county is not required to develop and maintain the water resource plan described in subsection 1 if:
(1) The city or county, as applicable, is located in an area served by a water district created by a special act or a water authority organized as a public agency or entity created by cooperative agreement pursuant to chapter 277 of NRS; and
(2) The water district or water authority, as applicable, has developed and maintained a water resource plan that includes the information described in subsection 1 pertaining to the city or county, as applicable.
κ2019 Statutes of Nevada, Page 1295 (CHAPTER 228, SB 150)κ
Sec. 2. NRS 278.010 is hereby amended to read as follows:
278.010 As used in NRS 278.010 to 278.630, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 278.0103 to 278.0195, inclusive, have the meanings ascribed to them in those sections.
Sec. 3. NRS 278.0235 is hereby amended to read as follows:
278.0235 No action or proceeding may be commenced for the purpose of seeking judicial relief or review from or with respect to any final action, decision or order of any governing body, commission or board authorized by NRS 278.010 to 278.630, inclusive, and section 1 of this act, unless the action or proceeding is commenced within 25 days after the date of filing of notice of the final action, decision or order with the clerk or secretary of the governing body, commission or board.
Sec. 4. NRS 349.981 is hereby amended to read as follows:
349.981 1. There is hereby established a program to provide grants of money to:
(a) A purveyor of water to pay for costs of capital improvements to publicly owned community water systems and publicly owned nontransient water systems required or made necessary by the State Environmental Commission pursuant to NRS 445A.800 to 445A.955, inclusive, or made necessary by the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq., and the regulations adopted pursuant thereto.
(b) An eligible recipient to pay for the cost of improvements to conserve water, including, without limitation:
(1) Piping or lining of an irrigation canal;
(2) Recovery or recycling of wastewater or tailwater;
(3) Scheduling of irrigation;
(4) Measurement or metering of the use of water;
(5) Improving the efficiency of irrigation operations; and
(6) Improving the efficiency of the operation of a facility for the storage of water, including, without limitation, efficiency in diverting water to such a facility.
(c) An eligible recipient to pay the following costs associated with connecting a domestic well or well with a temporary permit to a municipal water system, if the well was in existence on or before October 1, 1999, and the well is located in an area designated by the State Engineer pursuant to NRS 534.120 as an area where the groundwater basin is being depleted:
(1) Any local or regional fee for connection to the municipal water system.
(2) The cost of any capital improvement that is required to comply with a decision or regulation of the State Engineer.
(d) An eligible recipient to pay the following costs associated with abandoning an individual sewage disposal system and connecting the property formerly served by the abandoned individual sewage disposal system to a community sewage disposal system, if the Division of Environmental Protection requires the individual sewage disposal system to be abandoned and the property upon which the individual sewage disposal system was located to be connected to a community sewage disposal system pursuant to the provisions of NRS 445A.300 to 445A.730, inclusive, or any regulations adopted pursuant thereto:
κ2019 Statutes of Nevada, Page 1296 (CHAPTER 228, SB 150)κ
(1) Any local or regional fee for connection to the community sewage disposal system.
(2) The cost of any capital improvement that is required to comply with a statute of this State or a decision, directive, order or regulation of the Division of Environmental Protection.
(e) An eligible recipient to pay the following costs associated with connecting a well to a municipal water system, if the quality of the water of the well fails to comply with the standards of the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq., and the regulations adopted pursuant thereto:
(1) Any local or regional fee for connection to the municipal water system.
(2) The cost of any capital improvement that is required for the water quality in the area where the well is located to comply with the standards of the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq., and the regulations adopted pursuant thereto.
(f) A governing body to pay the costs associated with developing and maintaining a water resource plan.
2. Except as otherwise provided in NRS 349.983, the determination of who is to receive a grant is solely within the discretion of the Board.
3. For any construction work paid for in whole or in part by a grant provided pursuant to this section to a nonprofit association or nonprofit cooperative corporation that is an eligible recipient, the provisions of NRS 338.013 to 338.090, inclusive, apply to:
(a) Require the nonprofit association or nonprofit cooperative corporation to include in the contract for the construction work the contractual provisions and stipulations that are required to be included in a contract for a public work pursuant to those statutory provisions.
(b) Require the nonprofit association or nonprofit cooperative corporation to comply with those statutory provisions in the same manner as if it was a public body that had undertaken the project or had awarded the contract.
(c) Require the contractor who is awarded the contract for the construction work, or a subcontractor on the project, to comply with those statutory provisions in the same manner as if he or she was a contractor or subcontractor, as applicable, engaged on a public work.
4. As used in this section [, eligible] :
(a) Eligible recipient means:
[(a)] (1) A political subdivision of this State, including, without limitation, a city, county, unincorporated town, water authority, conservation district, irrigation district, water district or water conservancy district.
[(b)] (2) A nonprofit association or nonprofit cooperative corporation that provides water service only to its members.
(b) Governing body has the meaning ascribed to it in NRS 278.015.
(c) Water resource plan means a water resource plan created pursuant to section 1 of this act.
Sec. 5. The provisions of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 6. A governing body of a city or county that is required to develop and maintain a water resource plan pursuant to section 1 of this act must adopt the initial plan on or before July 1, 2029.
Sec. 7. This act becomes effective on July 1, 2019.
________
κ2019 Statutes of Nevada, Page 1297κ
Senate Bill No. 172Senator Hardy
CHAPTER 229
[Approved: May 29, 2019]
AN ACT relating to local improvements; requiring a municipality to submit annually certain financial information to the Director of the Legislative Counsel Bureau for each of its improvement districts; requiring a municipality to prepare a final accounting for each special account created for an improvement district; revising provisions for the refund of surplus assessment funds; providing for the distribution of certain penalties, collection costs and interest on delinquent assessments; providing for the expiration of a certificate of sale for a property sold due to delinquent assessment charges; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law authorizes the governing body of any county, city or unincorporated town to create an improvement district for the acquisition, operation and maintenance of certain projects and to finance the cost of any project through the issuance of bonds and the levy of assessments upon property in the improvement district. (NRS 271.265, 271.270, 271.325) Existing law requires all assessments to be placed in a special fund created for each improvement district and requires that at the completion of the project any remaining surplus be distributed to the property owners within the district. (NRS 271.429, 271.490) Under existing law, penalties, collection costs and interest on delinquent assessments remaining after the bonds and interest on the bonds have been paid may be deposited into any fund or account of the municipality.
Section 2 of this bill requires a municipality to submit certain annual financial information to the Director of the Legislative Counsel Bureau.
Section 3 of this bill requires a municipality to prepare a final accounting for each special fund created for an improvement district upon a determination by the treasurer of the municipality that certain events have occurred. Section 4 of this bill revises the provisions regarding the refund of surplus assessment funds. Section 5 of this bill requires that penalties, collection costs and interest imposed on assessments in excess of $100,000 remaining after the bonds and interest on the bonds have been paid be deposited into certain accounts for public capital improvements.
Existing law provides the holder of a certificate of sale for any property sold as the result of delinquent assessments charges may demand the deed to the property after the redemption period has ended and the original owner has been notified. (NRS 271.595) Section 7 of this bill: (1) revises the notification requirements; and (2) provides that if the holder of a certificate of sale for a property sold because of delinquent assessment charges does not demand the deed within 3 years after the redemption period ends, with limited exception, the certificate is null and void and no deed may be executed to the holder of the certificate. Section 6 of this bill makes a conforming change.
κ2019 Statutes of Nevada, Page 1298 (CHAPTER 229, SB 172)κ
EXPLANATION
Matter in bolded italics is
new; matter between brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 271 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. Except as otherwise provided in subsection 2, the municipality shall submit to the Director of the Legislative Counsel Bureau a copy of the annual financial information that is submitted to the Municipal Securities Rulemaking Board pursuant to 17 C.F.R. 240.15c2-12(b)(5)(i)(A) in connection with the issuance of bonds for each improvement district. Such information must be submitted to the Director on or before the deadline for submission of the information to the Municipal Securities Rulemaking Board.
2. A municipality is not required to submit to the Director any audited financial statements of the municipality pursuant to this section.
Sec. 3. 1. The municipality shall prepare a final accounting for each special fund created for an improvement district pursuant to NRS 271.490 upon a determination by the treasurer that all of the following have occurred:
(a) All outstanding bonds, including, without limitation, principal, interest and prior redemption premiums, if any, of the district have been paid;
(b) All installments of assessments and interest thereon have been paid;
(c) There are no remaining liens on tracts in the district for unpaid installments of assessments, including, without limitation, liens for penalties and interest;
(d) The project has been completed; and
(e) All costs of the project have been paid, as determined by the chief financial officer of the municipality.
2. Each final accounting prepared pursuant to subsection 1 must:
(a) Be prepared in such detail as the chief financial officer of the municipality may require;
(b) Indicate the amount of surplus, if any, remaining in the special fund for the improvement district created pursuant to NRS 271.490; and
(c) Except as otherwise provided in subsection 3, be completed not more than 18 months after the date the treasurer makes his or her determination that all of the events set forth in paragraphs (a) to (e), inclusive, of subsection 1 have occurred.
3. If initiation of the improvement district was by a provisional order as described in NRS 271.280 and the alternative procedure set forth in NRS 271.700 to 271.730, inclusive, does not apply to the district, the final accounting for a project must be completed:
(a) If the improvement district is comprised of 50 tracts or less, not later than 6 months after the date the treasurer makes a determination that the events described in paragraphs (a) to (e), inclusive, of subsection 1 have occurred.
(b) If the improvement district is comprised of more than 50 tracts but less than 250 tracts, not later than 12 months after the date the treasurer makes a determination that the events described in paragraphs (a) to (e), inclusive, of subsection 1 have occurred.
κ2019 Statutes of Nevada, Page 1299 (CHAPTER 229, SB 172)κ
treasurer makes a determination that the events described in paragraphs (a) to (e), inclusive, of subsection 1 have occurred.
Sec. 4. NRS 271.429 is hereby amended to read as follows:
271.429 1. Except as otherwise provided in subsection 2, [when all outstanding bonds, principal, interest and prior redemption premiums, if any, of a district have been paid,] surplus amounts remaining in the special fund created for that district pursuant to NRS 271.490 after the final accounting described in section 3 of this act is completed must be refunded as follows:
(a) If amounts have been advanced from the general fund of the municipality as required by NRS 271.495 for the payment of any bonds or interest thereon of such district, those amounts must first be returned to the general fund of the municipality.
(b) If a surplus and deficiency fund has been established pursuant to NRS 271.428, and amounts have been advanced from the surplus and deficiency fund for the payment of bonds or interest thereon of such district, those amounts must be returned to the surplus and deficiency fund.
(c) The treasurer shall thereupon determine the amount remaining in the fund created for the district pursuant to NRS 271.490 and deduct therefrom the amount of administrative costs of returning that surplus and any other administrative costs incurred by the municipality related to the improvement district or the project which have not been otherwise reimbursed. An amount equal to the actual administrative costs must be returned to the fund from which the administrative costs were paid.
(d) If the remaining surplus is $50,000 or less, that amount must be deposited to the surplus and deficiency fund.
(e) If the remaining surplus is more than $50,000, the treasurer shall:
(1) Deposit $50,000 in the surplus and deficiency fund;
(2) Apportion the amount of the surplus in excess of $50,000 derived from:
(I) The proceeds of the bonds, payments of assessments during the 30-day period for payment described in NRS 271.405 and any other money initially designated to be used to pay the costs of the project among all the tracts of land assessed in the district; and
(II) All other sources other than penalties, collection costs and interest on a delinquency imposed pursuant to subsection 4 of NRS 271.415 or 271.585 in connection with the collection of an assessment or an installment payment that is not paid when it comes due, among the tracts of land assessed in the district whose assessments were not paid in full during the 30-day period for payment described in NRS 271.405; and
(3) Report [this apportionment] all apportionments to the governing body [.] for approval by the governing body.
(f) Upon the approval of [this] each apportionment by the governing body [,] and not later than 30 days after the final accounting described in section 3 of this act is completed, the treasurer shall thereupon give notice by mail and by publication of the availability of the surplus for refund.
(g) The notice must also state that the owner or owners of record on the date specified by the notice of each tract of land which was assessed may request the refund of the surplus apportioned to that tract by filing a claim therefor with the treasurer [within 60] not later than 120 days after the date of the mailing of the notice. Thereafter claims for such refunds are perpetually barred.
κ2019 Statutes of Nevada, Page 1300 (CHAPTER 229, SB 172)κ
(h) Not less than 60 days and not more than 90 days after the date of the mailing of the first notice required pursuant to paragraph (g), the treasurer shall mail a second notice to each owner of record that has not filed a claim for refund. The second notice may be printed on a postcard and may refer to the first notice for any information that the treasurer omits from the second notice.
(i) All valid claims for a refund must be paid:
(1) If the treasurer determines that there are 250 or more tracts for which an owner of record has requested a refund, not later than 90 days after the deadline for an owner of record to file a claim for a refund as described in paragraph (g).
(2) If the treasurer determines that there are less than 250 tracts for which an owner of record has requested a refund, not later than 30 days after the deadline for an owner of record to file a claim for a refund as described in paragraph (g).
(j) Surplus amounts, if any, remaining after the payment of all valid claims filed with the treasurer [within the 60-day period] must be transferred to the surplus and deficiency fund.
[(i)] (k) Valid claims for refund filed in excess of the surplus available for each separate tract may be apportioned ratably among the claimants by the treasurer.
2. Subsection 1 does not apply to change or alter the distribution of any surplus pursuant to a written agreement that was entered into by a district on or before June 18, 1993.
3. All determinations of the chief financial officer or treasurer under this section and the apportionment of the surplus approved by the governing body as provided in this section shall be conclusive, absent fraud.
Sec. 5. NRS 271.490 is hereby amended to read as follows:
271.490 1. Except as otherwise provided in subsection [3,] 4, the assessments, when levied, shall be and remain a lien on the respective tracts of land assessed until paid, as provided herein, and, when collected, shall be placed in a special fund and as such shall at all times constitute a sinking fund for and be deemed specially appropriated to the payment of the assessment bonds and interest thereon, and shall not be used for any other purpose until the bonds and interest thereon are fully paid, except for the assessments paid during the 30-day payment period provided in NRS 271.405 and applied directly to the costs of the project.
2. [Penalties,] If the penalties, collection costs and interest on a delinquency imposed pursuant to subsection 4 of NRS 271.415 or 271.585 in connection with the collection of an assessment or an installment payment that is not paid when it comes due :
(a) Total $100,000 or less, the treasurer may [be deposited] deposit the money in any fund or account of the municipality designated by the governing body or designated by the chief financial officer of the municipality if the governing body has authorized the chief financial officer to make such a designation.
(b) Total more than $100,000, the treasurer:
(1) Shall deposit $100,000 in any fund or account of the municipality designated by the governing body or designated by the chief financial officer of the municipality if the governing body has authorized the chief financial officer to make such a designation; and
κ2019 Statutes of Nevada, Page 1301 (CHAPTER 229, SB 172)κ
(2) Shall deposit money in excess of $100,000 into a fund or account to be used for public capital improvements which are located in:
(I) The municipality that created the district in the case of a district created by a municipality other than a county; or
(II) A township, as described in NRS 257.010, in which all or any part of the district is located in the case of a district created by a county.
3. Except as otherwise provided in this subsection, all money deposited into a fund or account to be used for public capital improvements pursuant to subparagraph (2) of paragraph (b) of subsection 2 must be expended or budgeted to be expended for a public capital improvement not later than 5 years after the date of deposit. If the governing body or chief financial officer makes a determination that there is not an appropriate public capital improvement on which the money may be expended, such money must be transferred to any fund or account of the municipality or township designated by the governing body or the chief financial officer. The governing body or chief financial officer shall not make a determination that there is not an appropriate public capital improvement on which the money may be expended earlier than 120 days before the 5-year period ends.
4. If permitted by the ordinance authorizing the issuance of a bond, the assessments and any penalties, collection costs or interest not needed in any year to pay the principal and interest on the bonds may be used to pay the administrative costs of the municipality incurred in connection with the district and the collection of the assessments.
Sec. 6. NRS 271.570 is hereby amended to read as follows:
271.570 After receiving the amount of the assessment, or installment thereof, interest, penalty and costs, the treasurer shall make out a certificate, dated on the date of the sale, stating (when known) the name of the owner as given on the assessment roll, a description of the tract sold, the amount paid therefor, the name of the purchaser, that it was sold for an installment or the whole amount of the assessment, as the case may be, giving the name of the district or other brief designation of the improvement for which the assessment was levied, and specifying that the purchaser is entitled to a deed upon the expiration of the applicable period of redemption as determined pursuant to subsection 1 of NRS 271.595, unless redemption is made [.] or until the certificate of sale expires pursuant to NRS 271.595. The certificate of sale must be signed by the municipal treasurer and delivered to the purchaser.
Sec. 7. NRS 271.595 is hereby amended to read as follows:
271.595 1. Any property sold for an assessment, or any installment thereof, is subject to redemption by the [former] property owner, or grantee, mortgagee, heir or other representative of the [former] property owner:
(a) If there was a permanent residential dwelling unit or any other significant permanent improvement on the property at the time the sale was held pursuant to NRS 271.555, as determined by the governing body, at any time within 2 years; or
(b) In all other cases, at any time within 120 days,
Κ after the date of the certificate of sale, upon payment to the municipal treasurer of the amount for which the property was sold, with interest thereon at a rate of not exceeding 1 percent per month, together with all taxes and special assessments, or installments thereof, interest, penalties, costs and other charges, thereon paid by the purchaser since the sale, with like interest thereon.
κ2019 Statutes of Nevada, Page 1302 (CHAPTER 229, SB 172)κ
other charges, thereon paid by the purchaser since the sale, with like interest thereon. Unless written notice of taxes and assessments subsequently paid, and the amount thereof, is deposited with the treasurer, redemption may be made without their inclusion.
2. On any redemption being made, the treasurer shall give to the redemptioner a certificate of redemption, and pay over the amount received to the purchaser of the certificate of sale or the purchasers assigns.
3. If no redemption is made within the period of redemption as determined pursuant to subsection 1, the treasurer shall, on demand of the purchaser or the purchasers assigns, and the surrender to the treasurer of the certificate of sale, execute to the purchaser or the purchasers assigns a deed to the property. No deed may be executed or demanded until the holder of the certificate of sale has notified the owners of the property that he or she holds the certificate, and will demand a deed therefor. No such notice may be given until after the end of the redemption period specified in subsection 1. The notice must be given by personal service upon the property owner [.] or a representative designated by the property owner for such purpose and must be posted on the property if reasonably accessible to the public. However, if an owner is not a resident of the State or cannot be found within the State after diligent search, [the] including, without limitation, an electronic search of the real property records of the assessor and the recorder of the county in which the property is located and the records of the Secretary of State relating to business and other entities, notice [may] must be given by publication. Mailed notice must be provided to the property owner at any address attributed to him or her in any record discovered by the search if notice cannot be given by personal service. The notice and return thereof, with the affidavit of the person, or in the case of the municipality, of the clerk, claiming a deed, showing that service was made, and notice given pursuant to this section, must be filed with the treasurer.
4. If redemption is not made within 60 days after the date of service, the date of mailing or the date of the first publication of the notice, as the case may be, except as otherwise provided in subsections 6 and 7, the holder of the certificate of sale is entitled to a deed. The deed must be executed only for the property described in the certificate, and after payment of all delinquent taxes and special assessments, or installments thereof, whether levied or assessed before or after the issuance of the certificate of sale. A deed may be issued to any municipality for the face amount of the certificate of sale, plus accrued interest from the date of sale to the date of the execution of the deed at a rate of not exceeding 1 percent per month.
5. Any payment related to a redemption pursuant to this section sent to a municipality by mail shall be deemed to have been made on the date on which the municipality received the payment.
6. Except as otherwise provided in this subsection, a certificate of sale expires and is null and void 3 years after the date on which the redemption period ends pursuant to subsection 1. The time limitation for the expiration of a certificate of sale is tolled for any period during which the demand for or execution of a deed is prevented pursuant to any applicable law or by a stay of proceedings, an injunction or any other court order.
7. If the holder of a certificate of sale does not submit to the treasurer a demand for deed before the certificate of sale expires pursuant to subsection 6, no deed may be executed to the holder of the certificate.
κ2019 Statutes of Nevada, Page 1303 (CHAPTER 229, SB 172)κ
Sec. 8. 1. The provisions of sections 3 to 7, inclusive, of this act do not apply to any improvement district created before July 1, 2019.
2. As used in this section: improvement district has the meaning ascribed to it in NRS 271.130.
Sec. 8.5. The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.
Sec. 9. The provisions of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 10. This act becomes effective on July 1, 2019.
________
Senate Bill No. 219Senator Settelmeyer
CHAPTER 230
[Approved: May 29, 2019]
AN ACT relating to regulatory bodies; authorizing certain regulatory bodies to enter into or participate in contracts to accept payments for fees by credit card, debit card or electronic transfer of money; requiring certain regulatory bodies to establish written internal controls relating to withdrawals from bank accounts; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Under existing law, regulatory bodies are state agencies, boards or commissions which have the authority to regulate an occupation or profession pursuant to title 54 of NRS. (NRS 622.060) Section 2 of this bill authorizes each such regulatory body to enter into or participate in a contract to accept payments of fees by credit card, debit card or the electronic transfer of money and authorizes such a regulatory body to charge and collect a convenience fee for the acceptance of such forms of payment under certain circumstances. Section 3 of this bill provides that if such a regulatory body has established and deposited money in an account in a financial institution, then the regulatory body must establish written internal controls relating to any withdrawals from such an account, including a regular review of the expenditures of the regulatory body by two of its members and quarterly reviews by the regulatory body of its financial statements.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 622 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. A regulatory body may:
(a) Enter into a contract with an issuer of credit cards or debit cards or an operator of a system that provides for the electronic transfer of money to provide for the acceptance of credit cards, debit cards or electronic transfers of money by the regulatory body for the payment of money owed to the regulatory body for a fee, fine or other assessment authorized by law; or
κ2019 Statutes of Nevada, Page 1304 (CHAPTER 230, SB 219)κ
transfers of money by the regulatory body for the payment of money owed to the regulatory body for a fee, fine or other assessment authorized by law; or
(b) Upon approval of the Director of the Office of Finance, participate in a contract entered into by the Director pursuant to NRS 353.1466.
2. If the issuer or operator charges the regulatory body a fee for each use of a credit card or debit card or for each electronic transfer of money, the regulatory body may require the cardholder or the person requesting the electronic transfer of money to pay a convenience fee. The total convenience fees charged by the regulatory body in a fiscal year must not exceed the total amount of fees charged to the regulatory body by the issuer or operator in that fiscal year.
3. As used in this section:
(a) Cardholder means the person or organization named on the face of a credit card or debit card to whom or for whose benefit the credit card or debit card is issued by an issuer.
(b) Convenience fee means a fee paid by a cardholder or person requesting the electronic transfer of money to a regulatory body for the convenience of using the credit card or debit card or the electronic transfer of money to make such payment.
(c) Credit card means any instrument or device, whether known as a credit card or credit plate or by any other name, issued with or without a fee by an issuer for the use of the cardholder in obtaining money, property, goods, services or anything else of value on credit.
(d) Debit card means any instrument or device, whether known as a debit card or by any other name, issued with or without a fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds.
(e) Electronic transfer of money has the meaning ascribed to it in NRS 463.01473.
(f) Issuer means a business organization, financial institution or authorized agent of a business organization or financial institution that issues a credit card or debit card.
Sec. 3. If a regulatory body has established and deposited money in an account in a bank, credit union, savings and loan association or savings bank, the regulatory body must establish written internal controls with respect to any withdrawals from the account, which must include, without limitation:
1. A system by which two or more members of the regulatory body conduct regular reviews of the expenditures made by the regulatory body and the supporting documentation for such expenditures. Each member who participates in such a review shall prepare a signed and dated attestation regarding his or her participation, which the regulatory body shall retain for its records.
2. A requirement that the regulatory body conduct a quarterly review of its financial statements, including, without limitation, a schedule of its disbursements.
Sec. 4. (Deleted by amendment.)
Sec. 5. This act becomes effective upon passage and approval for the purpose of adopting regulations and performing any preliminary administrative tasks that are necessary to carry out the provisions of this act, and on January 1, 2020, for all other purposes.
________
κ2019 Statutes of Nevada, Page 1305κ
Senate Bill No. 233Senator Goicoechea
CHAPTER 231
[Approved: May 29, 2019]
AN ACT relating to education; removing certain requirements to obtain a grant of money from the Fund to Assist School Districts in Financing Capital Improvements; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law allows the board of trustees of a school district to apply for a grant of money from the Fund to Assist School Districts in Financing Capital Improvements if certain emergency conditions exist within the school district. A school district must submit proof that: (a) the assessed valuation of the taxable property within the school district is declining and other capital resources are diminishing; (b) the combined ad valorem tax rate of the county is at a certain limit; and (c) at least: (1) one building at a school within the school district has been condemned, (2) one of the facilities at a school is unsuitable for use or (3) the cost of renovating a facility at a school exceeds a certain percent of the cost of constructing a new facility. (NRS 387.3335)
This bill removes the requirement that the assessed valuation of the taxable property within the school district is declining and other capital resources are diminishing in order to receive money from the Fund.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 387.3335 is hereby amended to read as follows:
387.3335 1. The board of trustees of a school district may apply to the Director of the Office of Finance for a grant of money from the Fund created pursuant to NRS 387.333 on a form provided by the Director of the Office of Finance. The application must be accompanied by proof that the following emergency conditions exist within the school district:
(a) [The assessed valuation of the taxable property in the county in which the school district is located is declining and all other resources available to the school district for financing capital improvements are diminishing;
(b)] The combined ad valorem tax rate of the county is at the limit imposed by NRS 361.453; and
[(c)] (b) At least:
(1) One building that is located on the grounds of a school within the school district has been condemned;
(2) One of the facilities that is located on the grounds of a school within the school district is unsuitable for use as a result of:
(I) Structural defects;
(II) Barriers to accessibility; or
(III) Hazards to life, health or safety, including, without limitation, environmental hazards and the operation of the facility in an unsafe manner; or
κ2019 Statutes of Nevada, Page 1306 (CHAPTER 231, SB 233)κ
(3) One of the facilities that is located on the grounds of a school within the school district is in such a condition that the cost of renovating the facility would exceed 40 percent of the cost of constructing a new facility.
2. Upon receipt of an application submitted pursuant to subsection 1, the Director of the Office of Finance shall forward the application to the:
(a) Department of Taxation to determine whether or not:
(1) The application satisfies the showing of proof required pursuant to [paragraphs] paragraph (a) [and (b)] of subsection 1; and
(2) The board of county commissioners in the county in which the school district is located has imposed a tax of more than one-eighth of 1 percent pursuant to NRS 377B.100;
(b) State Public Works Division of the Department of Administration to determine whether the application satisfies the showing of proof required pursuant to paragraph [(c)] (b) of subsection 1; and
(c) Department of Education for informational purposes.
3. The Department of Taxation and the State Public Works Division shall submit written statements of their determinations pursuant to subsection 2 regarding an application to the Director of the Office of Finance. Upon receipt of such statements, the Director shall submit the application accompanied by the written statements from the Department of Taxation and State Public Works Division to the State Board of Examiners for approval.
4. The Director of the Office of Finance shall make grants from the Fund created pursuant to NRS 387.333 based upon the need of each school district whose application is approved by the State Board of Examiners.
5. The Director of the Office of Finance shall adopt regulations that prescribe the annual deadline for submission of an application to the Director of the Office of Finance by a school district that desires to receive a grant of money from the Fund.
Sec. 2. This act becomes effective upon passage and approval.
________
Senate Bill No. 239Senator Seevers Gansert
CHAPTER 232
[Approved: May 29, 2019]
AN ACT relating to education; requiring the interests of a victim of reported bullying or cyber-bullying to be given priority in certain circumstances; authorizing the extension of the time required to conduct an investigation into reported cyber-bullying in certain circumstances; making various other changes to provisions relating to bullying in schools; and providing other matters properly relating thereto.
κ2019 Statutes of Nevada, Page 1307 (CHAPTER 232, SB 239)κ
Legislative Counsels Digest:
Upon receiving a report of bullying or cyber-bullying, existing law requires the administrator of a school or his or her designee to immediately: (1) take any necessary action to stop the bullying or cyber-bullying and ensure the safety and well-being of the reported victim or victims of the bullying or cyber-bullying; and (2) begin an investigation into the reported bullying or cyber-bullying. Existing law requires such an investigation to be completed not less than 2 school days after the receipt of the report in most circumstances. If extenuating circumstances exist, 1 additional school day may be used to complete the investigation. (NRS 388.1351) Existing law also authorizes the administrator or his or her designee to defer such an investigation until after the completion of a criminal investigation of the reported bullying or cyber-bullying by a law enforcement agency. If the investigation is deferred, the administrator or designee is required to immediately develop a plan to protect the safety of each pupil directly involved in the reported bullying or cyber-bullying. (NRS 388.13535)
Section 1 of this bill authorizes an administrator or his or her designee, with the consent of each reported victim or perpetrator or their parents or guardians, as applicable, to extend the 2 or 3 school day period for conducting an investigation into cyber-bullying. Sections 1 and 2 of this bill require the administrator or his or her designee to give priority to protecting a victim of reported bullying or cyber-bullying over any interest of an alleged perpetrator when: (1) taking actions to stop bullying or cyber-bullying and ensure the safety of the victim; and (2) making any determination concerning a plan to protect the safety of a pupil directly involved in an incident of bullying or cyber-bullying during a criminal investigation. Section 2 also requires an administrator or his or her designee to carry out such a plan immediately upon development of the plan.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 388.1351 is hereby amended to read as follows:
388.1351 1. Except as otherwise provided in NRS 388.13535, a teacher, administrator, coach or other staff member who witnesses a violation of NRS 388.135 or receives information that a violation of NRS 388.135 has occurred shall report the violation to the administrator or his or her designee as soon as practicable, but not later than a time during the same day on which the teacher, administrator, coach or other staff member witnessed the violation or received information regarding the occurrence of a violation.
2. Except as otherwise provided in this subsection, upon receiving a report required by subsection 1, the administrator or designee shall immediately take any necessary action to stop the bullying or cyber-bullying and ensure the safety and well-being of the reported victim or victims of the bullying or cyber-bullying and shall begin an investigation into the report. If the administrator or designee does not have access to the reported victim of the alleged violation of NRS 388.135, the administrator or designee may wait until the next school day when he or she has such access to take the action required by this subsection.
3. The investigation conducted pursuant to subsection 2 must include, without limitation:
κ2019 Statutes of Nevada, Page 1308 (CHAPTER 232, SB 239)κ
(a) Except as otherwise provided in subsection 4, notification provided by telephone, electronic mail or other electronic means or provided in person, of the parents or guardians of all pupils directly involved in the reported bullying or cyber-bullying, as applicable, either as a reported aggressor or a reported victim of the bullying or cyber-bullying. The notification must be provided:
(1) If the bullying or cyber-bullying is reported before the end of school hours on a school day, before the schools administrative office closes on the day on which the bullying or cyber-bullying is reported; or
(2) If the bullying or cyber-bullying was reported on a day that is not a school day, or after school hours on a school day, before the schools administrative office closes on the school day following the day on which the bullying or cyber-bullying is reported.
(b) Interviews with all pupils whose parents or guardians must be notified pursuant to paragraph (a) and with all such parents and guardians.
4. If the contact information for the parent or guardian of a pupil in the records of the school is not correct, a good faith effort to notify the parent or guardian shall be deemed sufficient to meet the requirement for notification pursuant to paragraph (a) of subsection 3.
5. Except as otherwise provided in this subsection, an investigation required by this section must be completed not later than 2 school days after the administrator or designee receives a report required by subsection 1. If extenuating circumstances prevent the administrator or designee from completing the investigation required by this section within 2 school days after making a good faith effort, 1 additional school day may be used to complete the investigation. The time for completing an investigation into a report of cyber-bullying may also be extended to not more than 5 school days after the report is received with the consent of each reported victim of the cyber-bullying or, if a reported victim is under 18 years of age and is not emancipated, the parent or guardian of the reported victim.
6. An administrator or designee who conducts an investigation required by this section shall complete a written report of the findings and conclusions of the investigation. If a violation is found to have occurred [, the] :
(a) The report must include recommendations concerning the imposition of disciplinary action or other measures to be imposed as a result of the violation, in accordance with the policy governing disciplinary action adopted by the governing body. Subject to the provisions of the Family Educational Rights and Privacy Act of 1974, 20 U.S.C. § 1232g, and any regulations adopted pursuant thereto, the report must be made available, not later than 24 hours after the completion of the written report, to all parents or guardians who must be notified pursuant to paragraph (a) of subsection 3 as part of the investigation [.] ; and
(b) Any action taken after the completion of the investigation to address the bullying or cyber-bullying must be carried out in a manner that causes the least possible disruption for the victim or victims. When necessary, the administrator or his or her designee shall give priority to ensuring the safety and well-being of the victim or victims over any interest of the perpetrator or perpetrators when determining the actions to take.
7. If a violation is found not to have occurred, information concerning the incident must not be included in the record of the reported aggressor.
κ2019 Statutes of Nevada, Page 1309 (CHAPTER 232, SB 239)κ
8. Not later than 10 school days after receiving a report required by subsection 1, the administrator or designee shall meet with each reported victim of the bullying or cyber-bullying to inquire about the well-being of the reported victim and to ensure that the reported bullying or cyber-bullying, as applicable, is not continuing.
9. To the extent that information is available, the administrator or his or her designee shall provide a list of any resources that may be available in the community to assist a pupil to each parent or guardian of a pupil to whom notice was provided pursuant to this section as soon as practicable. Such a list may include, without limitation, resources available at no charge or at a reduced cost and may be provided in person or by electronic or regular mail. If such a list is provided, the administrator, his or her designee, or any employee of the school or the school district is not responsible for providing such resources to the pupil or ensuring the pupil receives such resources.
10. The parent or guardian of a pupil involved in the reported violation of NRS 388.135 may appeal a disciplinary decision of the administrator or his or her designee, made against the pupil as a result of the violation, in accordance with the policy governing disciplinary action adopted by the governing body. Not later than 30 days after receiving a response provided in accordance with such a policy, the parent or guardian may submit a complaint to the Department. The Department shall consider and respond to the complaint pursuant to procedures and standards prescribed in regulations adopted by the Department.
11. If a violation of NRS 388.135 is found to have occurred, the parent or guardian of a pupil who is a victim of bullying or cyber-bullying may request that the board of trustees of the school district in which the pupil is enrolled to assign the pupil to a different school in the school district. Upon receiving such a request, the board of trustees shall, in consultation with the parent or guardian of the pupil, assign the pupil to a different school.
12. A principal or his or her designee shall submit a monthly report to the direct supervisor of the principal that includes for the school the number of:
(a) Reports received pursuant to subsection 1;
(b) Times in which a violation of NRS 388.135 is found to have occurred; and
(c) Times in which no violation of NRS 388.135 is found to have occurred.
13. A direct supervisor who receives a monthly report pursuant to subsection 12 shall, each calendar quarter, submit a report to the Office for a Safe and Respectful Learning Environment that includes, for the schools for which the direct supervisor has received a monthly report in the calendar quarter, the:
(a) Total number of reports received pursuant to subsection 1;
(b) Number of times in which a violation of NRS 388.135 is found to have occurred; and
(c) Number of times in which no violation of NRS 388.135 is found to have occurred.
14. School hours and school days are determined for the purposes of this section by the schedule established by the governing body for the school.
κ2019 Statutes of Nevada, Page 1310 (CHAPTER 232, SB 239)κ
Sec. 2. NRS 388.13535 is hereby amended to read as follows:
388.13535 1. If a law enforcement agency is investigating a potential crime involving an alleged violation of NRS 388.135, the administrator or his or her designee may, after providing the notification required by paragraph (a) of subsection 3 of NRS 388.1351, defer the investigation required by that section until the completion of the criminal investigation by the law enforcement agency. If the administrator or his or her designee defers an investigation pursuant to this subsection, the administrator or designee shall:
(a) Immediately develop and carry out a plan to protect the safety of each pupil directly involved in the alleged violation of NRS 388.135; and
(b) To the extent that the law enforcement agency has provided the administrator or designee with information about the projected date for completion of its investigation, provide the parents or guardians of each pupil directly involved in the alleged violation of NRS 388.135 with that information.
2. Except as otherwise provided in this section, the deferral authorized by subsection 1 does not affect the obligations of the administrator or designee pursuant to NRS 388.121 to 388.1395, inclusive.
3. Any plan developed pursuant to subsection 1 must be carried out in a manner that causes the least possible disruption for the reported victim or victims of bullying or cyber-bullying. When necessary, the administrator or his or her designee shall give priority to protecting the reported victim or victims over any interest of the reported perpetrator or perpetrators when determining how to carry out the plan.
4. If the administrator or designee determines that a violation of NRS 388.135 was caused by the disability of the pupil who committed the violation:
(a) The provisions of NRS 388.1351 do not apply to the same or similar behavior if the behavior is addressed in the pupils individualized education program; and
(b) The administrator or designee shall take any measures necessary to protect the safety of the victim of the violation.
[4.] 5. The provisions of NRS 388.1351 do not apply to a violation of NRS 388.135 committed by:
(a) A pupil who is enrolled in prekindergarten if the behavior is addressed through measures intended to modify the behavior of the pupil.
(b) An employee of a school or school district against another employee of a school or school district.
(c) An adult who is not a pupil or employee of a school or school district against another such adult.
Sec. 3. This act becomes effective on July 1, 2019.
________
κ2019 Statutes of Nevada, Page 1311κ
Senate Bill No. 253Senator Goicoechea
Joint Sponsor: Assemblyman Ellison
CHAPTER 233
[Approved: May 29, 2019]
AN ACT relating to education; revising provisions governing the suspension and admonition of a licensed employee of a school district; removing the requirement that a superintendent who suspends a licensed employee who has been charged with certain crimes initiate dismissal proceedings; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law requires an administrator charged with the supervision of a licensed employee of a school district to admonish the employee for a reason that the administrator believes may lead to demotion or dismissal or may cause the employee not to be reemployed. (NRS 391.755) Section 11 of this bill authorizes the suspension and admonition of a licensed employee for the same conduct.
Existing law authorizes the superintendent of a school district to suspend a licensed employee without prior written notice or a hearing if: (1) the superintendent believes that grounds for dismissal of the employee exist; or (2) the employee has been officially charged but not yet convicted of certain crimes. (NRS 391.760) Existing law also authorizes dismissal of a licensed employee for conviction of those crimes. (NRS 391.750) Existing law requires the superintendent to begin dismissal proceedings not later than 5 days after a suspension becomes effective. (NRS 391.760) Section 11: (1) increases this period to 10 days if the superintendent believes that grounds for dismissal exist; and (2) removes the requirement that the superintendent initiate proceedings for the dismissal of an employee who has been charged, but not convicted, of a crime. Section 11 instead requires the superintendent to offer such an employee the opportunity for an informal hearing concerning the continuation of the suspension within 10 days after the employee receives notice of the suspension.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Sections 1-10. (Deleted by amendment.)
Sec. 11. NRS 391.760 is hereby amended to read as follows:
391.760 1. If a superintendent has reason to believe that cause exists for the dismissal of a licensed employee and the superintendent is of the opinion that the immediate suspension of the employee is necessary in the best interests of the pupils in the district, the superintendent may suspend the employee without notice and without a hearing. Within 10 days after the suspension becomes effective, the superintendent shall begin proceedings pursuant to NRS 391.680 to 391.810, inclusive, to carry out the employees dismissal. The employee is entitled to continue to receive his or her salary and other benefits after the suspension becomes effective until the date on which the dismissal proceedings are commenced.
2. Notwithstanding the provisions of NRS 391.750, a superintendent may suspend a licensed employee who has been officially charged but not yet convicted of a felony or a crime involving moral turpitude or immorality.
κ2019 Statutes of Nevada, Page 1312 (CHAPTER 233, SB 253)κ
yet convicted of a felony or a crime involving moral turpitude or immorality. If the charge is dismissed or if the employee is found not guilty, the employee must be reinstated with back pay, plus interest, and normal seniority. The superintendent shall notify the employee in writing of the suspension.
[2. Within 5 days after a suspension becomes effective, the superintendent shall begin proceedings pursuant to the provisions of NRS 391.680 to 391.810, inclusive, to effect the employees dismissal.] Within 10 days after the date on which the employee receives such notice, the superintendent shall provide the employee with the opportunity for an informal hearing to address the circumstances relating to the charges and any other circumstances relating to the suspension. The superintendent shall issue a written decision concerning the continuation of the suspension based on the information presented at the hearing. The employee is entitled to continue to receive his or her salary and other benefits after the suspension becomes effective until the date on which the [dismissal proceedings are commenced.] superintendent issues the written decision. The superintendent may recommend that an employee who has been charged with a felony or a crime involving immorality be dismissed for another ground set forth in NRS 391.750. [Except as otherwise provided in subsection 4, after the dismissal proceedings are commenced, the employee is no longer entitled to continue to receive his or her salary and other benefits.]
3. If sufficient grounds for dismissal [do] are not found to exist [, ] at the conclusion of the proceedings conducted pursuant to subsection 1 or 2, the employee must be reinstated with full compensation, plus interest.
4. A licensed employee who furnishes to the school district a bond or other form of security which is acceptable to the board as a guarantee that the employee will repay any amounts paid to him or her pursuant to this subsection as salary during a period of suspension the employee is entitled to continue to receive his or her salary from the date on which the dismissal proceedings are commenced until the decision of the board or the report of the hearing officer, if the report is final and binding. The board shall not unreasonably refuse to accept a form of security other than a bond. An employee who receives a salary pursuant to this subsection shall repay it if the employee is dismissed or not reemployed as a result of a decision of the board or a report of a hearing officer.
5. A licensed employee who is convicted of a crime which requires registration pursuant to NRS 179D.010 to 179D.550, inclusive, or is convicted of an act forbidden by NRS 200.508, 201.190, 201.265, 201.540, 201.560 or 207.260 forfeits all rights of employment from the date of his or her arrest.
6. A licensed employee who is convicted of any crime and who is sentenced to and serves any sentence of imprisonment forfeits all rights of employment from the date of his or her arrest or the date on which his or her employment terminated, whichever is later.
7. A licensed employee who is charged with a felony or a crime involving immorality or moral turpitude and who waives his or her right to a speedy trial while suspended may receive no more than 12 months of back pay and seniority upon reinstatement if the employee is found not guilty or the charges are dismissed, unless proceedings have been begun to dismiss the employee upon one of the other grounds set forth in NRS 391.750.
κ2019 Statutes of Nevada, Page 1313 (CHAPTER 233, SB 253)κ
8. A superintendent may discipline a licensed employee by suspending the employee with loss of pay at any time after a hearing has been held which affords the due process provided for in this chapter. The grounds for suspension are the same as the grounds contained in NRS 391.750. An employee may be suspended more than once during the employees contract year, but the total number of days of suspension may not exceed 20 in 1 contract year. Unless circumstances require otherwise, the suspensions must be progressively longer.
9. A licensed employee may be suspended pursuant to this section and admonished pursuant to NRS 391.755 for the same conduct.
Sec. 12. 1. The provisions of this act apply to any suspension or dismissal imposed on or after the effective date of this act. Any suspension of a licensed employee of a school district pursuant to NRS 391.760 imposed before the effective date of this act remains valid and the licensed employee remains subject to the terms of that suspension.
2. Any provision of a collective bargaining agreement that is in effect on the effective date of this act which conflicts with the amendatory provisions of this act is void and unenforceable with respect to any action taken on or after the effective date of this act.
Sec. 13. This act becomes effective upon passage and approval.
________
Senate Bill No. 296Senator Hammond
CHAPTER 234
[Approved: May 29, 2019]
AN ACT relating to education; providing for the issuance of a license by endorsement to teach to certain applicants who have an equivalent license or authorization issued in another country; authorizing the Superintendent of Public Instruction to enter into reciprocal agreements with appropriate officials of other countries concerning the licensing of teachers; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law requires the Commission on Professional Standards in Education to adopt regulations prescribing the qualifications for licensing teachers and other educational personnel. (NRS 391.019) Section 1 of this bill requires the Commission to adopt regulations that authorize the Superintendent of Public Instruction to issue a license by endorsement to an applicant who holds an equivalent license or authorization issued by a governmental entity in another country if the Superintendent determines that the qualifications for the equivalent license or authorization are substantially similar to those prescribed for an applicant for a state license. Section 2 of this bill authorizes the Superintendent to enter into reciprocal agreements with appropriate officials of other countries concerning the licensing of teachers.
κ2019 Statutes of Nevada, Page 1314 (CHAPTER 234, SB 296)κ
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 391.019 is hereby amended to read as follows:
391.019 1. Except as otherwise provided in NRS 391.027, the Commission shall adopt regulations:
(a) Prescribing the qualifications for licensing teachers and other educational personnel, including, without limitation, the qualifications for a license to teach middle school or junior high school education, and the procedures for the issuance and renewal of those licenses. The regulations:
(1) Must include, without limitation, the qualifications for licensing teachers and administrators pursuant to an alternative route to licensure which provides that the required education and training may be provided by any qualified provider which has been approved by the Commission, including, without limitation, institutions of higher education and other providers that operate independently of an institution of higher education. The regulations adopted pursuant to this subparagraph must:
(I) Establish the requirements for approval as a qualified provider;
(II) Require a qualified provider to be selective in its acceptance of students;
(III) Require a qualified provider to provide supervised, school-based experiences and ongoing support for its students, such as mentoring and coaching;
(IV) Significantly limit the amount of course work required or provide for the waiver of required course work for students who achieve certain scores on tests;
(V) Allow for the completion in 2 years or less of the education and training required under the alternative route to licensure;
(VI) Provide that a person who has completed the education and training required under the alternative route to licensure and who has satisfied all other requirements for licensure may apply for a regular license pursuant to sub-subparagraph (VII) regardless of whether the person has received an offer of employment from a school district, charter school or private school; and
(VII) Upon the completion by a person of the education and training required under the alternative route to licensure and the satisfaction of all other requirements for licensure, provide for the issuance of a regular license to the person pursuant to the provisions of this chapter and the regulations adopted pursuant to this chapter.
(2) Must require an applicant for a license to teach middle school or junior high school education or secondary education to demonstrate proficiency in a field of specialization or area of concentration by successfully completing course work prescribed by the Department or completing a subject matter competency examination prescribed by the Department with a score deemed satisfactory.
(3) Must not prescribe qualifications which are more stringent than the qualifications set forth in NRS 391.0315 for a licensed teacher who applies for an additional license in accordance with that section.
κ2019 Statutes of Nevada, Page 1315 (CHAPTER 234, SB 296)κ
(b) Identifying fields of specialization in teaching which require the specialized training of teachers.
(c) Except as otherwise provided in NRS 391.125, requiring teachers to obtain from the Department an endorsement in a field of specialization to be eligible to teach in that field of specialization, including, without limitation, an endorsement to teach English as a second language.
(d) Setting forth the educational requirements a teacher must satisfy to qualify for an endorsement in each field of specialization.
(e) Setting forth the qualifications and requirements for obtaining a license or endorsement to teach American Sign Language, including, without limitation, being registered with the Aging and Disability Services Division of the Department of Health and Human Services pursuant to NRS 656A.100 to engage in the practice of interpreting in an educational setting.
(f) Requiring teachers and other educational personnel to be registered with the Aging and Disability Services Division pursuant to NRS 656A.100 to engage in the practice of interpreting in an educational setting if they:
(1) Provide instruction or other educational services; and
(2) Concurrently engage in the practice of interpreting, as defined in NRS 656A.060.
(g) Providing for the issuance and renewal of a special qualifications license to an applicant who holds a bachelors degree, a masters degree or a doctoral degree from an accredited degree-granting postsecondary educational institution in a field for which the applicant will provide instruction in a classroom and who has:
(1) At least 2 years of experience teaching at an accredited degree-granting postsecondary educational institution in a field for which the applicant will provide instruction in a classroom and at least 3 years of experience working in that field; or
(2) At least 5 years of experience working in a field for which the applicant will provide instruction in a classroom.
Κ An applicant for licensure pursuant to this paragraph who holds a bachelors degree must submit proof of participation in a program of student teaching or mentoring or agree to participate in a program of mentoring or courses of pedagogy for the first 2 years of the applicants employment as a teacher with a school district or charter school.
(h) Requiring an applicant for a special qualifications license to:
(1) Pass each examination required by NRS 391.021 for the specific subject or subjects in which the applicant will provide instruction; or
(2) Hold a valid license issued by a professional licensing board of any state that is directly related to the subject area of the bachelors degree, masters degree or doctoral degree held by the applicant.
(i) Setting forth the subject areas that may be taught by a person who holds a special qualifications license, based upon the subject area of the bachelors degree, masters degree or doctoral degree held by that person.
(j) Providing for the issuance and renewal of a special qualifications license to an applicant who:
(1) Holds a bachelors degree or a graduate degree from an accredited college or university in the field for which the applicant will be providing instruction;
(2) Is not licensed to teach public school in another state;
κ2019 Statutes of Nevada, Page 1316 (CHAPTER 234, SB 296)κ
(3) Has at least 5 years of experience teaching with satisfactory evaluations at a school that is accredited by a national or regional accrediting agency recognized by the United States Department of Education; and
(4) Submits proof of participation in a program of student teaching or mentoring or agrees to participate in a program of mentoring for the first year of the applicants employment as a teacher with a school district or charter school if the applicant holds a graduate degree or, if the applicant holds a bachelors degree, submits proof of participation in a program of student teaching or mentoring or agrees to participate in a program of mentoring or courses of pedagogy for the first 2 years of his or her employment as a teacher with a school district or charter school.
Κ An applicant for licensure pursuant to this paragraph is exempt from each examination required by NRS 391.021 if the applicant successfully passed the examination in another state.
(k) Prescribing course work on parental involvement and family engagement. The Commission shall work in cooperation with the Office of Parental Involvement and Family Engagement created by NRS 385.630 in developing the regulations required by this paragraph.
(l) Establishing the requirements for obtaining an endorsement on the license of a teacher, administrator or other educational personnel in cultural competency.
(m) Authorizing the Superintendent of Public Instruction to issue a license by endorsement to an applicant who holds an equivalent license or authorization issued by a governmental entity in another country if the Superintendent determines that the qualifications for the equivalent license or authorization are substantially similar to those prescribed pursuant to paragraph (a).
2. Except as otherwise provided in NRS 391.027, the Commission may adopt such other regulations as it deems necessary for its own government or to carry out its duties.
3. Any regulation which increases the amount of education, training or experience required for licensing:
(a) Must, in addition to the requirements for publication in chapter 233B of NRS, be publicized before its adoption in a manner reasonably calculated to inform those persons affected by the change.
(b) Must not become effective until at least 1 year after the date it is adopted by the Commission.
(c) Is not applicable to a license in effect on the date the regulation becomes effective.
4. A person who is licensed pursuant to paragraph (g) , [or] (j) or (m) of subsection 1:
(a) Shall comply with all applicable statutes and regulations.
(b) Except as otherwise provided by specific statute, is entitled to all benefits, rights and privileges conferred by statutes and regulations on licensed teachers.
(c) Except as otherwise provided by specific statute, if the person is employed as a teacher by the board of trustees of a school district or the governing body of a charter school, is entitled to all benefits, rights and privileges conferred by statutes and regulations on the licensed employees of a school district or charter school, as applicable.
κ2019 Statutes of Nevada, Page 1317 (CHAPTER 234, SB 296)κ
Sec. 2. NRS 391.033 is hereby amended to read as follows:
391.033 1. All licenses for teachers and other educational personnel are granted by the Superintendent of Public Instruction pursuant to regulations adopted by the Commission and as otherwise provided by law.
2. An application for the issuance of a license must include the social security number of the applicant.
3. Every applicant for a license must submit with his or her application:
(a) A complete set of his or her fingerprints and written permission authorizing the Superintendent to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its initial report on the criminal history of the applicant and for reports thereafter upon renewal of the license pursuant to subsection 8 of NRS 179A.075, and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant; and
(b) Written authorization for the Superintendent to obtain any information concerning the applicant that may be available from the Statewide Central Registry and any equivalent registry maintained by a governmental entity in a jurisdiction in which the applicant has resided within the immediately preceding 5 years.
4. In conducting an investigation into the background of an applicant for a license, the Superintendent may cooperate with any appropriate law enforcement agency to obtain information relating to the criminal history of the applicant, including, without limitation, any record of warrants for the arrest of or applications for protective orders against the applicant.
5. The Superintendent may issue a provisional license pending receipt of the reports of the Federal Bureau of Investigation and the Central Repository for Nevada Records of Criminal History if the Superintendent determines that the applicant is otherwise qualified.
6. Except as otherwise provided in subsection 7, a license must be issued to, or renewed for, as applicable, an applicant if:
(a) The Superintendent determines that the applicant is qualified;
(b) The information obtained by the Superintendent pursuant to subsections 3 and 4:
(1) Does not indicate that the applicant has been convicted of a felony or any offense involving moral turpitude; or
(2) Indicates that the applicant has been convicted of a felony or an offense involving moral turpitude but the Superintendent determines that the conviction is unrelated to the position within the county school district or charter school for which the applicant applied or for which he or she is currently employed, as applicable; and
(c) For initial licensure, the applicant submits the statement required pursuant to NRS 391.034.
7. The Superintendent may deny an application for a license pursuant to this section if a report on the criminal history of the applicant from the Federal Bureau of Investigation or the Central Repository for Nevada Records of Criminal History indicates that the applicant has been arrested for or charged with a sexual offense involving a minor or pupil, including, without limitation, any attempt, solicitation or conspiracy to commit such an offense.
κ2019 Statutes of Nevada, Page 1318 (CHAPTER 234, SB 296)κ
8. The Superintendent or his or her designee may deny the application for a license after providing written notice of his or her intent to deny the application to the applicant and providing an opportunity for the applicant to have a hearing.
9. To request a hearing pursuant to subsection 8, an applicant must submit a written request to the Superintendent within 15 days after receipt of the notice by the applicant. Such a hearing must be conducted in accordance with regulations adopted by the State Board. If no request for a hearing is filed within that time, the Superintendent may deny the license.
10. If the Superintendent denies an application for a license pursuant to this section, the Superintendent must, within 15 days after the date on which the application is denied, provide notice of the denial to the school district or charter school that employs the applicant if the applicant is employed by a school district or charter school. Such a notice must not state the reasons for denial.
11. The Department shall:
(a) Maintain a list of the names of persons whose applications for a license are denied due to conviction of a sexual offense involving a minor;
(b) Update the list maintained pursuant to paragraph (a) monthly; and
(c) Provide this list to the board of trustees of a school district or the governing body of a charter school upon request.
12. The Superintendent shall forward all information obtained from an investigation of an applicant pursuant to subsections 3 and 4 to the board of trustees of a school district, the governing body of a charter school or university school for profoundly gifted pupils or the administrator of a private school where the applicant is employed or seeking employment. The board of trustees, governing body or administrator, as applicable, may use a substantiated report of the abuse or neglect of a child, as defined in NRS 392.281, or a violation of NRS 201.540, 201.560, 392.4633 or 394.366 obtained from the Statewide Central Registry or an equivalent registry maintained by a governmental agency in another jurisdiction:
(a) In making determinations concerning assignments, requiring retraining, imposing discipline, hiring or termination; and
(b) In any proceedings to which the report is relevant, including, without limitation, an action for trespass or a restraining order.
13. The Superintendent, the board of trustees of a school district, the governing body of a charter school or university school for profoundly gifted pupils or the administrator of a private school may not be held liable for damages resulting from any action of the Superintendent, board of trustees, governing body or administrator, as applicable, authorized by subsection 4 or 12.
14. The Superintendent may enter into reciprocal agreements with appropriate officials of other countries concerning the licensing of teachers.
15. As used in this section, sexual offense has the meaning ascribed to it in NRS 179D.097.
Sec. 3. (Deleted by amendment.)
Sec. 4. This act becomes effective on July 1, 2019.
________
κ2019 Statutes of Nevada, Page 1319κ
Senate Bill No. 341Senator Settelmeyer
Joint Sponsor: Assemblywoman Titus
CHAPTER 235
[Approved: May 29, 2019]
AN ACT relating to local government financial administration; exempting certain enterprise funds from certain limitations on the authority of a governing body to loan or transfer money from the enterprise fund to the general fund of the local government and increase fees imposed for the purpose of the enterprise fund; and providing other matters properly relating thereto.
Legislative Counsels Digest:
The Local Government Budget and Finance Act authorizes the governing body of a local government to establish an enterprise fund to account for operations which are financed and conducted in a manner similar to the operations of a private business, where the intent of the governing body is to have the expenses of providing goods or services to the general public financed through charges imposed on users. (NRS 354.470-354.626) Under existing law, the governing body of a local government is authorized to: (1) loan or transfer money from an enterprise fund only if the loan or transfer is made under certain circumstances; and (2) increase any fees imposed for the purpose an enterprise fund was created, only if the governing body makes certain determinations, including that the increase is necessary and the fees in the enterprise fund are used solely for the purpose the fees are collected. (NRS 354.613) This bill exempts an enterprise fund created by a local government for the purpose of providing telecommunication services from such limitations.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 354.613 is hereby amended to read as follows:
354.613 1. Except as otherwise provided in this section, the governing body of a local government may, on or after July 1, 2011, loan or transfer money from an enterprise fund, money collected from fees imposed for the purpose for which an enterprise fund was created or any income or interest earned on money in an enterprise fund only if the loan or transfer is made:
(a) In accordance with a medium-term obligation issued by the recipient in compliance with the provisions of chapter 350 of NRS, the loan or transfer is proposed to be made and the governing body approves the loan or transfer under a nonconsent item that is separately listed on the agenda for a regular meeting of the governing body, and:
(1) The money is repaid in full to the enterprise fund within 5 years; or
(2) If the recipient will be unable to repay the money in full to the enterprise fund within 5 years, the recipient notifies the Committee on Local Government Finance of:
(I) The total amount of the loan or transfer;
(II) The purpose of the loan or transfer;
κ2019 Statutes of Nevada, Page 1320 (CHAPTER 235, SB 341)κ
(III) The date of the loan or transfer; and
(IV) The estimated date that the money will be repaid in full to the enterprise fund;
(b) To pay the expenses related to the purpose for which the enterprise fund was created;
(c) For a cost allocation for employees, equipment or other resources related to the purpose of the enterprise fund which is approved by the governing body under a nonconsent item that is separately listed on the agenda for a regular meeting of the governing body; or
(d) Upon the dissolution of the enterprise fund.
2. Except as otherwise provided in this section, the governing body of a local government may increase the amount of any fee imposed for the purpose for which an enterprise fund was created only if the governing body approves the increase under a nonconsent item that is separately listed on the agenda for a regular meeting of the governing body, and the governing body determines that:
(a) The increase is not prohibited by law;
(b) The increase is necessary for the continuation or expansion of the purpose for which the enterprise fund was created; and
(c) All fees that are deposited in the enterprise fund are used solely for the purposes for which the fees are collected.
3. Upon the adoption of an increase in any fee pursuant to subsection 2, the governing body shall, except as otherwise provided in this subsection, provide to the Department of Taxation an executed copy of the action increasing the fee. This requirement does not apply to the governing body of a federally regulated airport.
4. The provisions of subsection 2 do not limit the authority of the governing body of a local government to increase the amount of any fee imposed upon a public utility in compliance with the provisions of NRS 354.59881 to 354.59889, inclusive, for a right-of-way over any public area if the public utility is billed separately for that fee. As used in this subsection, public utility has the meaning ascribed to it in NRS 354.598817.
5. This section must not be construed to:
(a) Prohibit a local government from increasing a fee or using money in an enterprise fund to repay a loan lawfully made to the enterprise fund from another fund of the local government; or
(b) Prohibit or impose any substantive or procedural limitations on any increase of a fee that is necessary to meet the requirements of an instrument that authorizes any bonds or other debt obligations which are secured by or payable from, in whole or in part, money in the enterprise fund or the revenues of the enterprise for which the enterprise fund was created.
6. The Department of Taxation shall provide to the Committee on Local Government Finance a copy of each report submitted to the Department on or after July 1, 2011, by a county or city pursuant to NRS 354.6015. The Committee shall:
(a) Review each report to determine whether the governing body of the local government is in compliance with the provisions of this section; and
(b) On or before January 15 of each odd-numbered year, submit a report of its findings to the Director of the Legislative Counsel Bureau for transmittal to the Legislature.
κ2019 Statutes of Nevada, Page 1321 (CHAPTER 235, SB 341)κ
7. A fee increase imposed in violation of this section must not be invalidated on the basis of that violation. The sole remedy for a violation of this section is the penalty provided in NRS 354.626. Any person who pays a fee for the enterprise for which the enterprise fund is created may file a complaint with the district attorney or Attorney General alleging a violation of this section for prosecution pursuant to NRS 354.626.
8. For the purposes of paragraph (c) of subsection 1, the Committee on Local Government Finance shall adopt regulations setting forth the extent to which general, overhead, administrative and similar expenses of a local government of a type described in paragraph (c) of subsection 1 may be allocated to an enterprise fund. The regulations must require that:
(a) Each cost allocation makes an equitable distribution of all general, overhead, administrative and similar expenses of the local government among all activities of the local government, including the activities funded by the enterprise fund; and
(b) Only the enterprise funds equitable share of those expenses may be treated as expenses of the enterprise fund and allocated to it pursuant to paragraph (c) of subsection 1.
9. Except as otherwise provided in subsections 10 and 11, if a local government has subsidized its general fund with money from an enterprise fund for the 5 fiscal years immediately preceding the fiscal year beginning on July 1, 2011, the provisions of subsection 1 do not apply to transfers from the enterprise fund to the general fund of the local government for the purpose of subsidizing the general fund if the local government:
(a) Does not increase the amount of the transfers to subsidize the general fund in any fiscal year beginning on or after July 1, 2011, above the amount transferred in the fiscal year ending on June 30, 2011, except for loans and transfers that comply with the provisions of subsection 1; and
(b) Does not, on or after July 1, 2011, increase any fees for any enterprise fund used to subsidize the general fund except for increases described in paragraph (b) of subsection 5.
10. On and after July 1, 2021, the provisions of subsection 1 apply to transfers from an enterprise fund described in subsection 9 to the general fund of a local government for the purpose of subsidizing the general fund unless:
(a) On or before July 1, 2018, the Committee on Local Government Finance has approved a plan adopted by the governing body of the local government to eliminate transfers from an enterprise fund to subsidize the general fund of the local government that are not made in compliance with subsection 1, which must include, without limitation, a plan to reduce, by at least 3.3 percent each fiscal year during the term of the plan, the amount of the transfers from the enterprise fund to the general fund of the local government for the purpose of subsidizing the general fund; and
(b) In accordance with the plan approved by the Committee on Local Government Finance pursuant to paragraph (a), for each fiscal year during the term of the plan, the local government reduces by at least 3.3 percent the amount of the transfers from the enterprise fund to the general fund of the local government for the purpose of subsidizing the general fund.
11. Each plan approved by the Committee on Local Government Finance pursuant to subsection 10 is subject to annual review by the Committee.
κ2019 Statutes of Nevada, Page 1322 (CHAPTER 235, SB 341)κ
12. After the expiration of the term of a plan approved by the Committee on Local Government Finance pursuant to subsection 10, the provisions of subsection 1 apply to the local government that adopted the plan.
13. The provisions of this section do not apply to an enterprise fund created by the governing body of a local government for the purpose of providing telecommunication services pursuant to the provisions of NRS 710.010 to 710.159, inclusive.
Sec. 2. This act becomes effective upon passage and approval.
________
Senate Bill No. 356Senator Hammond
Joint Sponsor: Assemblyman Leavitt
CHAPTER 236
[Approved: May 29, 2019]
AN ACT relating to retired military vehicles; requiring the Department of Motor Vehicles to design, prepare and issue special license plates for certain retired military vehicles; imposing certain requirements on such vehicles operating on the highways of this State; imposing a fee for such special license plates; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Section 1 of this bill requires the Department of Motor Vehicles, upon receiving 25 applications for such special license plates, to design, prepare and issue special license plates for retired military vehicles which are at least 20 years old on the date of application. Section 1 provides that no annual registration fees or governmental services taxes are imposed on the owner of the retired military vehicle, which may be used only for exhibitions, parades, charitable events, fundraisers or similar activities. Additionally, section 1 requires that a retired military vehicle with such a special license plate may not be operated on the highways of this State unless: (1) the vehicle complies with certain requirements regarding size, weight and load; (2) any tires on the vehicle meet certain tire pressure requirements; and (3) if the vehicle has tracks, the tracks are covered with a band that protects the surface of the highway from damage. The owner of such a retired military vehicle must submit an affidavit indicating that the retired military vehicle is safe to be operated on the highways of this State.
Under existing law, an application for the registration of a foreign vehicle must be accompanied by a motor vehicle inspection certificate. (NRS 482.220) Section 2 of this bill removes a retired military vehicle which obtains the special license plates in section 1 from the definition of foreign vehicle, thus removing such a retired military vehicle from the inspection requirement.
Section 9 of this bill authorizes a holder of a class A noncommercial drivers license to operate a retired military vehicle which obtains the special license plates in section 1 regardless of the weight of the vehicle. Sections 3-5 of this bill exempt the special license plates authorized in section 1 from certain requirements pertaining to special license plates regarding: (1) recommendations from the Commission on Special License Plates; (2) the total number of separate designs of special license plates issued by the Department; and (3) the minimum number of special license plate applications required to produce such a plate.
κ2019 Statutes of Nevada, Page 1323 (CHAPTER 236, SB 356)κ
applications required to produce such a plate. (NRS 482.367004, 482.367008, 482.36705) Section 7 of this bill exempts a retired military vehicle which obtains the special license plates in section 1 from the additional fees for registration imposed on certain motortrucks, truck-tractors and buses based on the weight of such a vehicle. (NRS 482.482) Finally, section 10 of this bill exempts such retired military vehicles from certain emissions testing requirements. (NRS 445B.759) Sections 6 and 8 of this bill make conforming changes.
Section 11 of this bill provides that these changes become effective upon passage and approval for purposes of adopting regulations and performing any other administrative tasks and on January 1, 2020, for all other purposes.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 482 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The Department may issue special license plates and registration certificates to residents of Nevada for a retired military vehicle pursuant to this section. The Department shall not design, prepare or issue the license plates unless it receives at least 25 applications for the issuance of those plates. The retired military vehicle must not be used for general transportation but may be used for exhibitions, parades, charitable events, fundraisers or similar activities.
2. In lieu of the annual registration fees required by this chapter, and of the governmental services tax imposed by chapter 371 of NRS, the owner of a retired military vehicle seeking registration pursuant to this section may submit:
(a) An affidavit to the Department indicating that the retired military vehicle:
(1) Will only be used for the purposes enumerated in subsection 1;
(2) Is safe to be operated on the highways of this State; and
(3) Will be at least 20 years old on the date on which the owner of the retired military vehicle applies for license plates pursuant to this section.
(b) The following fees for the issuance of license plates pursuant to this section:
(1) For the first issuance....................................................................... $25
(2) For a renewal sticker....................................................................... $10
3. A retired military vehicle registered pursuant to this section must not be operated on the highways of this State unless the vehicle complies with the provisions of NRS 484D.600 to 484D.740, inclusive, and, if the vehicle is a retired military vehicle with:
(a) Tires, is equipped with rubber tires that will not damage the roadway surface and have a maximum vehicle tire pressure of not more than 125 pounds per square inch.
(b) Tracks, has a circular metal band of a width of not less than 3 inches placed entirely around the periphery of such tracks, such band to serve as a protection against the tearing up or marring of the surface of the highway.
4. The Department shall use to register a retired military vehicle pursuant to this section any vehicle identification number that is clearly visible and is securely affixed to or stamped on an integral part of the vehicle.
κ2019 Statutes of Nevada, Page 1324 (CHAPTER 236, SB 356)κ
visible and is securely affixed to or stamped on an integral part of the vehicle. If no such number is available, the Department may assign a distinguishing number pursuant to NRS 482.290.
5. License plates issued pursuant to this section must bear the inscription Retired Military Vehicle and the plates must be numbered consecutively.
6. The cost of the die and the modifications necessary for the issuance of a license plate pursuant to this section must be paid from private sources without any expense to the State of Nevada.
7. If, during a registration year, the holder of license plates issued pursuant to the provisions of this section disposes of the retired military vehicle to which the plates are affixed, the holder shall:
(a) Retain the plates and affix them to another vehicle that meets the requirements of this section if the transfer and registration fees are paid as set out in this chapter; or
(b) Within 30 days after removing the plates from the vehicle, return them to the Department.
8. As used in this section, retired military vehicle means any vehicle or trailer, regardless of size, weight or year of manufacture, that was manufactured for use in the military forces of any country and is maintained to depict or represent military design or markings. The term includes, without limitation, armored vehicles, passenger cars, half-track vehicles, motorcycles, pick-up trucks, sport utility vehicles, tracked vehicles, trailers, trucks and truck-tractors.
Sec. 2. NRS 482.040 is hereby amended to read as follows:
482.040 Foreign vehicle means every motor vehicle, trailer or semitrailer which has been brought into this State otherwise than in the ordinary course of business by or through a manufacturer or dealer and which has not been registered in this State. The term does not include a retired military vehicle which is registered pursuant to section 1 of this act.
Sec. 3. NRS 482.367004 is hereby amended to read as follows:
482.367004 1. There is hereby created the Commission on Special License Plates. The Commission is advisory to the Department and consists of five Legislators and three nonvoting members as follows:
(a) Five Legislators appointed by the Legislative Commission:
(1) One of whom is the Legislator who served as the Chair of the Assembly Standing Committee on Transportation during the most recent legislative session. That Legislator may designate an alternate to serve in place of the Legislator when absent. The alternate must be another Legislator who also served on the Assembly Standing Committee on Transportation during the most recent legislative session.
(2) One of whom is the Legislator who served as the Chair of the Senate Standing Committee on Transportation during the most recent legislative session. That Legislator may designate an alternate to serve in place of the Legislator when absent. The alternate must be another Legislator who also served on the Senate Standing Committee on Transportation during the most recent legislative session.
(b) Three nonvoting members consisting of:
(1) The Director of the Department of Motor Vehicles, or a designee of the Director.
(2) The Director of the Department of Public Safety, or a designee of the Director.
κ2019 Statutes of Nevada, Page 1325 (CHAPTER 236, SB 356)κ
(3) The Director of the Department of Tourism and Cultural Affairs, or a designee of the Director.
2. Each member of the Commission appointed pursuant to paragraph (a) of subsection 1 serves a term of 2 years, commencing on July 1 of each odd-numbered year. A vacancy on the Commission must be filled in the same manner as the original appointment.
3. Members of the Commission serve without salary or compensation for their travel or per diem expenses.
4. The Director of the Legislative Counsel Bureau shall provide administrative support to the Commission.
5. The Commission shall recommend to the Department that the Department approve or disapprove:
(a) Applications for the design, preparation and issuance of special license plates that are submitted to the Department pursuant to subsection 1 of NRS 482.367002;
(b) The issuance by the Department of special license plates that have been designed and prepared pursuant to NRS 482.367002; and
(c) Except as otherwise provided in subsection 7, applications for the design, preparation and issuance of special license plates that have been authorized by an act of the Legislature after January 1, 2007.
Κ In determining whether to recommend to the Department the approval of such an application or issuance, the Commission shall consider, without limitation, whether it would be appropriate and feasible for the Department to, as applicable, design, prepare or issue the particular special license plate. For the purpose of making recommendations to the Department, the Commission shall consider each application in the chronological order in which the application was received by the Department.
6. On or before September 1 of each fiscal year, the Commission shall compile a list of each special license plate for which the Commission, during the immediately preceding fiscal year, recommended to the Department that the Department approve the application for the special license plate or approve the issuance of the special license plate. The list so compiled must set forth, for each such plate, the cause or charitable organization for which the special license plate generates or would generate financial support, and the intended use to which the financial support is being put or would be put. The Commission shall transmit the information described in this subsection to the Department and the Department shall make that information available on its Internet website.
7. The provisions of paragraph (c) of subsection 5 do not apply with regard to special license plates that are issued pursuant to NRS 482.3746, 482.3751, 482.3752, 482.3757, 482.3783, 482.3785, 482.3787 , [or] 482.37901 [.] or section 1 of this act.
8. The Commission shall:
(a) Recommend to the Department that the Department approve or disapprove any proposed change in the distribution of money received in the form of additional fees. As used in this paragraph, additional fees means the fees that are charged in connection with the issuance or renewal of a special license plate for the benefit of a particular cause, fund or charitable organization. The term does not include registration and license fees or governmental services taxes.
(b) If it recommends a proposed change pursuant to paragraph (a) and determines that legislation is required to carry out the change, recommend to the Department that the Department request the assistance of the Legislative Counsel in the preparation of a bill draft to carry out the change.
κ2019 Statutes of Nevada, Page 1326 (CHAPTER 236, SB 356)κ
the Department that the Department request the assistance of the Legislative Counsel in the preparation of a bill draft to carry out the change.
Sec. 4. NRS 482.367008 is hereby amended to read as follows:
482.367008 1. As used in this section, special license plate means:
(a) A license plate that the Department has designed and prepared pursuant to NRS 482.367002 in accordance with the system of application and petition described in that section;
(b) A license plate approved by the Legislature that the Department has designed and prepared pursuant to NRS 482.3747, 482.37903, 482.37905, 482.37917, 482.379175, 482.37918, 482.37919, 482.3792, 482.3793, 482.37933, 482.37934, 482.37935, 482.379355, 482.379365, 482.37937, 482.379375, 482.37938, 482.37939, 482.37945 or 482.37947; and
(c) Except for a license plate that is issued pursuant to NRS 482.3746, 482.3751, 482.3752, 482.3757, 482.3783, 482.3785, 482.3787 , [or] 482.37901 [,] or section 1 of this act, a license plate that is approved by the Legislature after July 1, 2005.
2. Notwithstanding any other provision of law to the contrary, and except as otherwise provided in subsection 3, the Department shall not, at any one time, issue more than 30 separate designs of special license plates. Whenever the total number of separate designs of special license plates issued by the Department at any one time is less than 30, the Department shall issue a number of additional designs of special license plates that have been authorized by an act of the Legislature or the application for which has been recommended by the Commission on Special License Plates to be approved by the Department pursuant to subsection 5 of NRS 482.367004, not to exceed a total of 30 designs issued by the Department at any one time. Such additional designs must be issued by the Department in accordance with the chronological order of their authorization or approval by the Department.
3. In addition to the special license plates described in subsection 2, the Department may issue not more than five separate designs of special license plates in excess of the limit set forth in that subsection. To qualify for issuance pursuant to this subsection:
(a) The Commission on Special License Plates must have recommended to the Department that the Department approve the design, preparation and issuance of the special plates as described in paragraphs (a) and (b) of subsection 5 of NRS 482.367004; and
(b) The special license plates must have been applied for, designed, prepared and issued pursuant to NRS 482.367002, except that:
(1) The application for the special license plates must be accompanied by a surety bond posted with the Department in the amount of $20,000; and
(2) Pursuant to the assessment of the viability of the design of the special license plates that is conducted pursuant to this section, it is determined that at least 3,000 special license plates have been issued.
4. Except as otherwise provided in this subsection, on October 1 of each year the Department shall assess the viability of each separate design of special license plate that the Department is currently issuing by determining the total number of validly registered motor vehicles to which that design of special license plate is affixed. The Department shall not determine the total number of validly registered motor vehicles to which a particular design of special license plate is affixed if:
κ2019 Statutes of Nevada, Page 1327 (CHAPTER 236, SB 356)κ
(a) The particular design of special license plate was designed and prepared by the Department pursuant to NRS 482.367002; and
(b) On October 1, that particular design of special license plate has been available to be issued for less than 12 months.
5. If, on October 1, the total number of validly registered motor vehicles to which a particular design of special license plate is affixed is:
(a) In the case of special license plates not described in subsection 3, less than 1,000; or
(b) In the case of special license plates described in subsection 3, less than 3,000,
Κ the Director shall provide notice of that fact in the manner described in subsection 6.
6. The notice required pursuant to subsection 5 must be provided:
(a) If the special license plate generates financial support for a cause or charitable organization, to that cause or charitable organization.
(b) If the special license plate does not generate financial support for a cause or charitable organization, to an entity which is involved in promoting the activity, place or other matter that is depicted on the plate.
7. If, on December 31 of the same year in which notice was provided pursuant to subsections 5 and 6, the total number of validly registered motor vehicles to which a particular design of special license plate is affixed is:
(a) In the case of special license plates not described in subsection 3, less than 1,000; or
(b) In the case of special license plates described in subsection 3, less than 3,000,
Κ the Director shall, notwithstanding any other provision of law to the contrary, issue an order providing that the Department will no longer issue that particular design of special license plate. Except as otherwise provided in subsection 2 of NRS 482.265, such an order does not require existing holders of that particular design of special license plate to surrender their plates to the Department and does not prohibit those holders from renewing those plates.
Sec. 5. NRS 482.36705 is hereby amended to read as follows:
482.36705 1. Except as otherwise provided in subsection 2:
(a) If a new special license plate is authorized by an act of the Legislature after January 1, 2003, other than a special license plate that is authorized pursuant to NRS 482.379375, the Legislature will direct that the license plate not be designed, prepared or issued by the Department unless the Department receives at least 1,000 applications for the issuance of that plate within 2 years after the effective date of the act of the Legislature that authorized the plate.
(b) In addition to the requirements set forth in paragraph (a), if a new special license plate is authorized by an act of the Legislature after July 1, 2005, the Legislature will direct that the license plate not be issued by the Department unless its issuance complies with subsection 2 of NRS 482.367008.
(c) In addition to the requirements set forth in paragraphs (a) and (b), if a new special license plate is authorized by an act of the Legislature after January 1, 2007, the Legislature will direct that the license plate not be designed, prepared or issued by the Department unless the Commission on Special License Plates recommends to the Department that the Department approve the application for the authorized plate pursuant to NRS 482.367004.
κ2019 Statutes of Nevada, Page 1328 (CHAPTER 236, SB 356)κ
Commission on Special License Plates recommends to the Department that the Department approve the application for the authorized plate pursuant to NRS 482.367004.
2. The provisions of subsection 1 do not apply with regard to special license plates that are issued pursuant to NRS 482.3746, 482.3751, 482.3752, 482.3757, 482.3783, 482.3785, 482.3787 , [or] 482.37901 [.] or section 1 of this act.
Sec. 6. NRS 482.399 is hereby amended to read as follows:
482.399 1. Upon the transfer of the ownership of or interest in any vehicle by any holder of a valid registration, or upon destruction of the vehicle, the registration expires.
2. Except as otherwise provided in NRS 482.2155 and subsection 3 of NRS 482.483, the holder of the original registration may transfer the registration to another vehicle to be registered by the holder and use the same regular license plate or plates or special license plate or plates issued pursuant to NRS 482.3667 to 482.3823, inclusive, and section 1 of this act, or 482.384, on the vehicle from which the registration is being transferred, if the license plate or plates are appropriate for the second vehicle, upon filing an application for transfer of registration and upon paying the transfer registration fee and the excess, if any, of the registration fee and governmental services tax on the vehicle to which the registration is transferred over the total registration fee and governmental services tax paid on all vehicles from which he or she is transferring ownership or interest. Except as otherwise provided in NRS 482.294, an application for transfer of registration must be made in person, if practicable, to any office or agent of the Department or to a registered dealer, and the license plate or plates may not be used upon a second vehicle until registration of that vehicle is complete.
3. In computing the governmental services tax, the Department, its agent or the registered dealer shall credit the portion of the tax paid on the first vehicle attributable to the remainder of the current registration period or calendar year on a pro rata monthly basis against the tax due on the second vehicle or on any other vehicle of which the person is the registered owner. If any person transfers ownership or interest in two or more vehicles, the Department or the registered dealer shall credit the portion of the tax paid on all of the vehicles attributable to the remainder of the current registration period or calendar year on a pro rata monthly basis against the tax due on the vehicle to which the registration is transferred or on any other vehicle of which the person is the registered owner. The certificates of registration and unused license plates of the vehicles from which a person transfers ownership or interest must be submitted before credit is given against the tax due on the vehicle to which the registration is transferred or on any other vehicle of which the person is the registered owner.
4. In computing the registration fee, the Department or its agent or the registered dealer shall credit the portion of the registration fee paid on each vehicle attributable to the remainder of the current calendar year or registration period on a pro rata basis against the registration fee due on the vehicle to which registration is transferred.
5. If the amount owed on the registration fee or governmental services tax on the vehicle to which registration is transferred is less than the credit on the total registration fee or governmental services tax paid on all vehicles from which a person transfers ownership or interest, the person may apply the unused portion of the credit to the registration of any other vehicle owned by the person.
κ2019 Statutes of Nevada, Page 1329 (CHAPTER 236, SB 356)κ
the unused portion of the credit to the registration of any other vehicle owned by the person. Any unused portion of such a credit expires on the date the registration of the vehicle from which the person transferred the registration was due to expire.
6. If the license plate or plates are not appropriate for the second vehicle, the plate or plates must be surrendered to the Department or registered dealer and an appropriate plate or plates must be issued by the Department. The Department shall not reissue the surrendered plate or plates until the next succeeding licensing period.
7. If application for transfer of registration is not made within 60 days after the destruction or transfer of ownership of or interest in any vehicle, the license plate or plates must be surrendered to the Department on or before the 60th day for cancellation of the registration.
8. Except as otherwise provided in subsection 2 of NRS 371.040, NRS 482.2155, subsections 7 and 8 of NRS 482.260 and subsection 3 of NRS 482.483, if a person cancels his or her registration and surrenders to the Department the license plates for a vehicle, the Department shall:
(a) In accordance with the provisions of subsection 9, issue to the person a refund of the portion of the registration fee and governmental services tax paid on the vehicle attributable to the remainder of the current calendar year or registration period on a pro rata basis; or
(b) If the person does not qualify for a refund in accordance with the provisions of subsection 9, issue to the person a credit in the amount of the portion of the registration fee and governmental services tax paid on the vehicle attributable to the remainder of the current calendar year or registration period on a pro rata basis. Such a credit may be applied by the person to the registration of any other vehicle owned by the person. Any unused portion of the credit expires on the date the registration of the vehicle from which the person obtained a refund was due to expire.
9. The Department shall issue a refund pursuant to subsection 8 only if the request for a refund is made at the time the registration is cancelled and the license plates are surrendered, the person requesting the refund is a resident of Nevada, the amount eligible for refund exceeds $100, and evidence satisfactory to the Department is submitted that reasonably proves the existence of extenuating circumstances. For the purposes of this subsection, the term extenuating circumstances means circumstances wherein:
(a) The person has recently relinquished his or her drivers license and has sold or otherwise disposed of his or her vehicle.
(b) The vehicle has been determined to be inoperable and the person does not transfer the registration to a different vehicle.
(c) The owner of the vehicle is seriously ill or has died and the guardians or survivors have sold or otherwise disposed of the vehicle.
(d) Any other event occurs which the Department, by regulation, has defined to constitute an extenuating circumstance for the purposes of this subsection.
Sec. 7. NRS 482.482 is hereby amended to read as follows:
482.482 1. [In] Except as otherwise provided in section 1 of this act, in addition to any other applicable fee listed in NRS 482.480, there must be paid to the Department for the registration of every motortruck, truck-tractor or bus which has a declared gross weight of:
κ2019 Statutes of Nevada, Page 1330 (CHAPTER 236, SB 356)κ
(a) Less than 6,000 pounds, a fee of $33.
(b) Not less than 6,000 pounds and not more than 8,499 pounds, a fee of $38.
(c) Not less than 8,500 pounds and not more than 10,000 pounds, a fee of $48.
(d) Not less than 10,001 pounds and not more than 26,000 pounds, a fee of $12 for each 1,000 pounds or fraction thereof.
(e) Not less than 26,001 pounds and not more than 80,000 pounds, a fee of $17 for each 1,000 pounds or fraction thereof. The maximum fee is $1,360.
2. Except as otherwise provided in subsection 6, the original or renewal registration fees for fleets of vehicles with a declared gross weight in excess of 26,000 pounds and the governmental services tax imposed by the provisions of chapter 371 of NRS for the privilege of operating those vehicles may be paid in installments, the amount of which must be determined by regulation. The Department shall not allow installment payments for a vehicle added to a fleet after the original or renewal registration is issued.
3. If the due date of any installment falls on a Saturday, Sunday or legal holiday, that installment is not due until the next following business day.
4. Any payment required by subsection 2 shall be deemed received by the Department on the date shown by the post office cancellation mark stamped on an envelope containing payment properly addressed to the Department, if that date is earlier than the actual receipt of that payment.
5. A person who fails to pay any fee pursuant to subsection 2 or governmental services tax when due shall pay to the Department a penalty of 10 percent of the amount of the unpaid fee, plus interest on the unpaid fee at the rate of 1 percent per month or fraction of a month from the date the fee and tax were due until the date of payment.
6. If a person fails to pay any fee pursuant to subsection 2 or governmental services tax when due, the Department may, in addition to the penalty provided for in subsection 5, require that person to pay:
(a) The entire amount of the unpaid registration fee and governmental services tax owed by that person for the remainder of the period of registration; and
(b) On an annual basis, any registration fee and governmental services tax set forth in subsection 2 which may be incurred by that person in any subsequent period of registration.
7. A person who is convicted of, or who pleads guilty, guilty but mentally ill or nolo contendere to, a violation of NRS 484D.630 must reregister the vehicle with a declared gross weight equal to:
(a) The gross vehicle weight rating; or
(b) The combined gross vehicle weight rating, if the vehicle was operated in combination at the time of the violation.
Κ The registration fee owed pursuant to this subsection is incurred from the date the person was convicted of, or pled guilty, guilty but mentally ill or nolo contendere to, a violation of NRS 484D.630.
Sec. 8. NRS 482.500 is hereby amended to read as follows:
482.500 1. Except as otherwise provided in subsection 2 or 3 or specifically provided by statute, whenever upon application any duplicate or substitute certificate of registration, indicator, decal or number plate is issued, the following fees must be paid:
κ2019 Statutes of Nevada, Page 1331 (CHAPTER 236, SB 356)κ
For a certificate of registration.............................................................. $5.00
For every substitute number plate or set of plates.............................. 5.00
For every duplicate number plate or set of plates.............................. 10.00
For every decal displaying a county name........................................... .50
For every other indicator, decal, license plate sticker or tab.............. 5.00
2. The following fees must be paid for any replacement number plate or set of plates issued for the following special license plates:
(a) For any special plate issued pursuant to NRS 482.3667, 482.367002, 482.3672, 482.3675, 482.370 to 482.3755, inclusive, 482.376 or 482.379 to 482.3818, inclusive, or section 1 of this act, a fee of $10.
(b) For any special plate issued pursuant to NRS 482.368, 482.3765, 482.377 or 482.378, a fee of $5.
(c) Except as otherwise provided in paragraph (a) of subsection 1 of NRS 482.3824, for any souvenir license plate issued pursuant to NRS 482.3825 or sample license plate issued pursuant to NRS 482.2703, a fee equal to that established by the Director for the issuance of those plates.
3. A fee must not be charged for a duplicate or substitute of a decal issued pursuant to NRS 482.37635.
4. The fees which are paid for replacement number plates, duplicate number plates and decals displaying county names must be deposited with the State Treasurer for credit to the Motor Vehicle Fund and allocated to the Department to defray the costs of replacing or duplicating the plates and manufacturing the decals.
Sec. 9. NRS 483.235 is hereby amended to read as follows:
483.235 The Department shall adopt regulations authorizing the holder of a class A noncommercial drivers license to drive [any] :
1. Except as otherwise provided in subsection 2, any combination of vehicles not exceeding 70 feet in length with a gross combination weight rating of 26,000 pounds or less so long as the gross combination weight rating of the towed vehicles does not exceed the gross vehicle weight rating of the towing vehicle.
2. A retired military vehicle registered pursuant to section 1 of this act, regardless of the gross vehicle weight of the retired military vehicle, except that a motorcycle drivers license or a drivers license authorizing the holder to operate a motorcycle is required to operate a retired military vehicle that is a motorcycle.
Sec. 10. NRS 445B.759 is hereby amended to read as follows:
445B.759 1. The provisions of NRS 445B.700 to 445B.845, inclusive, do not apply to:
(a) Military tactical vehicles; [or]
(b) Replica vehicles [.] ; or
(c) Retired military vehicles registered pursuant to section 1 of this act.
2. As used in this section:
(a) Military tactical vehicle means a motor vehicle that is:
(1) Owned or controlled by the United States Department of Defense or by a branch of the Armed Forces of the United States; and
(2) Used in combat, combat support, combat service support, tactical or relief operations, or training for such operations.
(b) Replica vehicle means any passenger car or light-duty motor vehicle which:
κ2019 Statutes of Nevada, Page 1332 (CHAPTER 236, SB 356)κ
(1) Has a body manufactured after 1967 which is made to resemble a vehicle of a model manufactured before 1968;
(2) Has been altered from the original design of the manufacturer or has a body constructed from materials which are not original to the vehicle;
(3) Is maintained solely for occasional transportation, including exhibitions, club activities, parades, tours or other similar uses; and
(4) Is not used for daily transportation.
Κ The term does not include a vehicle which has been restored to its original design by replacing parts [.] or a retired military vehicle registered pursuant to section 1 of this act.
(c) Retired military vehicle has the meaning ascribed to it in section 1 of this act.
Sec. 11. This act becomes effective upon passage and approval for purposes of adopting regulations and to carry out any other administrative tasks and on January 1, 2020, for all other purposes.
________
Senate Bill No. 364Senators Parks, Spearman; and Woodhouse
Joint Sponsor: Assemblyman Carrillo
CHAPTER 237
[Approved: May 29, 2019]
AN ACT relating to the protection of vulnerable persons; prohibiting a medical facility, facility for the dependent and certain other facilities from engaging in certain discriminatory actions; requiring employees and agents of such facilities to receive certain training relating to cultural competency; requiring such facilities to take certain measures to protect the privacy of persons receiving care from the facilities and adapt electronic records to reflect certain information concerning patients or residents; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law provides for the licensing and regulation of medical facilities, facilities for the dependent and certain other facilities by the Division of Public and Behavioral Health of the Department of Health and Human Services. (NRS 449.029-449.240) Section 2 of this bill prohibits such a facility from discriminating against a person based on the actual or perceived race, color, religion, national origin, ancestry, age, gender, physical or mental disability, sexual orientation, gender identity or expression or human immunodeficiency virus status of the person or a person with whom the person associates. Section 6 of this bill requires the State Board of Health to adopt regulations that prescribe the specific types of prohibited discrimination. Section 2 requires such a facility to post prominently in the facility and include on any marketing website: (1) a statement that a person who is discriminated against on prohibited grounds may file a complaint with the Division; and (2) the contact information for the Division.
κ2019 Statutes of Nevada, Page 1333 (CHAPTER 237, SB 364)κ
Section 2.5 of this bill requires the Board, by regulation, to require a medical facility, facility for the dependent and certain other facilities required by the Board to be licensed to conduct training relating specifically to cultural competency for any agent or employee of the facility who provides care to a patient or resident of the facility. Section 2.5 provides that such cultural competency training is required so that such an agent or employee may better understand patients or residents who have different cultural backgrounds, including patients who are: (1) from various gender, racial and ethnic backgrounds; (2) from various religious backgrounds; (3) lesbian, gay, bisexual, transgender and questioning persons; (4) children and senior citizens; (5) persons with a mental or physical disability; and (6) part of any other population, as determined by the Board. Section 2.5 requires such training to be provided through a course or program that is approved by the Department of Health and Human Services.
Section 3 of this bill requires a medical facility, facility for the dependent and certain other facilities required by the Board to be licensed to take certain measures to protect the privacy of persons receiving care from the facility. Section 3.5 of this bill requires the Board to adopt regulations that require such a facility to develop policies to ensure that a patient or resident is addressed by his or her preferred name and pronoun and in accordance with his or her gender identity or expression. Section 3.5 also requires the facility to adapt electronic records to reflect the gender identities or expressions of gender diverse patients or residents and section 11 of this bill requires that to occur by July 1, 2021, unless an extension is approved by the Division of Public and Behavioral Health. Sections 4-10 of this bill make conforming changes.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
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 3.5, inclusive, of this act.
Sec. 2. 1. A medical facility, facility for the dependent or facility which is otherwise required by regulations adopted by the Board pursuant to NRS 449.0303 to be licensed and any employee or independent contractor of such a facility shall not discriminate in the admission of, or the provision of services to, a patient or resident based wholly or partially on the actual or perceived race, color, religion, national origin, ancestry, age, gender, physical or mental disability, sexual orientation, gender identity or expression or human immunodeficiency virus status of the patient or resident or any person with whom the patient or resident associates.
2. A medical facility, facility for the dependent or facility which is otherwise required by regulations adopted by the Board pursuant to NRS 449.0303 to be licensed shall:
(a) Develop and carry out policies to prevent the specific types of prohibited discrimination described in the regulations adopted by the Board pursuant to NRS 449.0302 and meet any other requirements prescribed by regulations of the Board; and
(b) Post prominently in the facility and include on any Internet website used to market the facility the following statement:
κ2019 Statutes of Nevada, Page 1334 (CHAPTER 237, SB 364)κ
[Name of facility] does not discriminate and does not permit discrimination, including, without limitation, bullying, abuse or harassment, on the basis of actual or perceived race, color, religion, national origin, ancestry, age, gender, physical or mental disability, sexual orientation, gender identity or expression or HIV status, or based on association with another person on account of that persons actual or perceived race, color, religion, national origin, ancestry, age, gender, physical or mental disability, sexual orientation, gender identity or expression or HIV status.
3. In addition to the statement prescribed by subsection 2, a facility for skilled nursing, facility for intermediate care or residential facility for groups shall post prominently in the facility and include on any Internet website used to market the facility:
(a) Notice that a patient or resident who has experienced prohibited discrimination may file a complaint with the Division; and
(b) The contact information for the Division.
4. The provisions of this section shall not be construed to:
(a) Require a medical facility, facility for the dependent or facility which is otherwise required by regulations adopted by the Board pursuant to NRS 449.0303 to be licensed or an employee or independent contractor thereof to take or refrain from taking any action in violation of reasonable medical standards; or
(b) Prohibit a medical facility, facility for the dependent or facility which is otherwise required by regulations adopted by the Board pursuant to NRS 449.0303 to be licensed from adopting a policy that is applied uniformly and in a nondiscriminatory manner, including, without limitation, such a policy that bans or restricts sexual relations.
Sec. 2.5. 1. To enable an agent or employee of a medical facility, facility for the dependent or facility which is otherwise required by regulations adopted by the Board pursuant to NRS 449.0303 to be licensed who provides care to a patient or resident of the facility to more effectively treat patients or care for residents, as applicable, the Board shall, by regulation, require such a facility to conduct training relating specifically to cultural competency for any agent or employee of the facility who provides care to a patient or resident of the facility so that such an agent or employee may better understand patients or residents who have different cultural backgrounds, including, without limitation, patients or residents who are:
(a) From various gender, racial and ethnic backgrounds;
(b) From various religious backgrounds;
(c) Lesbian, gay, bisexual, transgender and questioning persons;
(d) Children and senior citizens;
(e) Persons with a mental or physical disability; and
(f) Part of any other population that such an agent or employee may need to better understand, as determined by the Board.
2. The training relating specifically to cultural competency conducted by a medical facility, facility for the dependent or facility which is otherwise required by regulations adopted by the Board pursuant to NRS 449.0303 to be licensed pursuant to subsection 1 must be provided through a course or program that is approved by the Department of Health and Human Services.
κ2019 Statutes of Nevada, Page 1335 (CHAPTER 237, SB 364)κ
Sec. 3. A medical facility, facility for the dependent or facility which is otherwise required by regulations adopted by the Board pursuant to NRS 449.0303 to be licensed shall:
1. Maintain the confidentiality of personally identifiable information concerning the sexual orientation of a patient or resident, whether the patient or resident is transgender or has undergone a gender transition and the human immunodeficiency virus status of the patient or resident and take reasonable actions to prevent the unauthorized disclosure of such information;
2. Prohibit employees or independent contractors of the facility who are not performing a physical examination or directly providing care to a patient or resident from being present during any portion of the physical examination or care, as applicable, during which the patient or resident is fully or partially unclothed without the express permission of the patient or resident or the authorized representative of the patient or resident;
3. Use visual barriers, including, without limitation, doors, curtains and screens, to provide privacy for patients or residents who are fully or partially unclothed; and
4. Allow a patient or resident to refuse to be examined, observed or treated by an employee or independent contractor of the facility for a purpose that is primarily educational rather than therapeutic.
Sec. 3.5. The Board shall adopt regulations that require a medical facility, facility for the dependent or facility which is otherwise required by regulations adopted by the Board pursuant to NRS 449.0303 to be licensed to:
1. Develop policies to ensure that a patient or resident is addressed by his or her preferred name and pronoun and in accordance with his or her gender identity or expression;
2. Adapt electronic records to reflect the gender identities or expressions of patients or residents with diverse gender identities or expressions, including, without limitation:
(a) If the facility is a medical facility, adapting health records to meet the medical needs of patients or residents with diverse sexual orientations and gender identities or expressions, including, without limitation, integrating information concerning sexual orientation and gender identity or expression into electronic systems for maintaining health records; and
(b) If the facility is a facility for the dependent or other residential facility, adapting electronic records to include:
(1) The preferred name and pronoun and gender identity or expression of a resident; and
(2) Any other information prescribed by regulation of the Board.
Sec. 4. NRS 449.029 is hereby amended to read as follows:
449.029 As used in NRS 449.029 to 449.240, inclusive, and sections 2 to 3.5, inclusive, of this act, unless the context otherwise requires, medical facility has the meaning ascribed to it in NRS 449.0151 and includes a program of hospice care described in NRS 449.196.
Sec. 5. NRS 449.0301 is hereby amended to read as follows:
449.0301 The provisions of NRS 449.029 to 449.2428, inclusive, and sections 2 to 3.5, inclusive, of this act do not apply to:
1. Any facility conducted by and for the adherents of any church or religious denomination for the purpose of providing facilities for the care and treatment of the sick who depend solely upon spiritual means through prayer for healing in the practice of the religion of the church or denomination, except that such a facility shall comply with all regulations relative to sanitation and safety applicable to other facilities of a similar category.
κ2019 Statutes of Nevada, Page 1336 (CHAPTER 237, SB 364)κ
for healing in the practice of the religion of the church or denomination, except that such a facility shall comply with all regulations relative to sanitation and safety applicable to other facilities of a similar category.
2. Foster homes as defined in NRS 424.014.
3. Any medical facility, facility for the dependent or facility which is otherwise required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed that is operated and maintained by the United States Government or an agency thereof.
Sec. 6. NRS 449.0302 is hereby amended to read as follows:
449.0302 1. The Board shall adopt:
(a) Licensing standards for each class of medical facility or facility for the dependent covered by NRS 449.029 to 449.2428, inclusive, and sections 2 to 3.5, inclusive, of this act and for programs of hospice care.
(b) Regulations governing the licensing of such facilities and programs.
(c) Regulations governing the procedure and standards for granting an extension of the time for which a natural person may provide certain care in his or her home without being considered a residential facility for groups pursuant to NRS 449.017. The regulations must require that such grants are effective only if made in writing.
(d) Regulations establishing a procedure for the indemnification by the Division, from the amount of any surety bond or other obligation filed or deposited by a facility for refractive surgery pursuant to NRS 449.068 or 449.069, of a patient of the facility who has sustained any damages as a result of the bankruptcy of or any breach of contract by the facility.
(e) Regulations that prescribe the specific types of discrimination prohibited by section 2 of this act.
(f) Any other regulations as it deems necessary or convenient to carry out the provisions of NRS 449.029 to 449.2428, inclusive [.] , and sections 2 to 3.5, inclusive, of this act.
2. The Board shall adopt separate regulations governing the licensing and operation of:
(a) Facilities for the care of adults during the day; and
(b) Residential facilities for groups,
Κ which provide care to persons with Alzheimers disease.
3. The Board shall adopt separate regulations for:
(a) The licensure of rural hospitals which take into consideration the unique problems of operating such a facility in a rural area.
(b) The licensure of facilities for refractive surgery which take into consideration the unique factors of operating such a facility.
(c) The licensure of mobile units which take into consideration the unique factors of operating a facility that is not in a fixed location.
4. The Board shall require that the practices and policies of each medical facility or facility for the dependent provide adequately for the protection of the health, safety and physical, moral and mental well-being of each person accommodated in the facility.
5. In addition to the training requirements prescribed pursuant to NRS 449.093, the Board shall establish minimum qualifications for administrators and employees of residential facilities for groups. In establishing the qualifications, the Board shall consider the related standards set by nationally recognized organizations which accredit such facilities.
6. The Board shall adopt separate regulations regarding the assistance which may be given pursuant to NRS 453.375 and 454.213 to an ultimate user of controlled substances or dangerous drugs by employees of residential facilities for groups.
κ2019 Statutes of Nevada, Page 1337 (CHAPTER 237, SB 364)κ
user of controlled substances or dangerous drugs by employees of residential facilities for groups. The regulations must require at least the following conditions before such assistance may be given:
(a) The ultimate users physical and mental condition is stable and is following a predictable course.
(b) The amount of the medication prescribed is at a maintenance level and does not require a daily assessment.
(c) A written plan of care by a physician or registered nurse has been established that:
(1) Addresses possession and assistance in the administration of the medication; and
(2) Includes a plan, which has been prepared under the supervision of a registered nurse or licensed pharmacist, for emergency intervention if an adverse condition results.
(d) Except as otherwise authorized by the regulations adopted pursuant to NRS 449.0304, the prescribed medication is not administered by injection or intravenously.
(e) The employee has successfully completed training and examination approved by the Division regarding the authorized manner of assistance.
7. The Board shall adopt separate regulations governing the licensing and operation of residential facilities for groups which provide assisted living services. The Board shall not allow the licensing of a facility as a residential facility for groups which provides assisted living services and a residential facility for groups shall not claim that it provides assisted living services unless:
(a) Before authorizing a person to move into the facility, the facility makes a full written disclosure to the person regarding what services of personalized care will be available to the person and the amount that will be charged for those services throughout the residents stay at the facility.
(b) The residents of the facility reside in their own living units which:
(1) Except as otherwise provided in subsection 8, contain toilet facilities;
(2) Contain a sleeping area or bedroom; and
(3) Are shared with another occupant only upon consent of both occupants.
(c) The facility provides personalized care to the residents of the facility and the general approach to operating the facility incorporates these core principles:
(1) The facility is designed to create a residential environment that actively supports and promotes each residents quality of life and right to privacy;
(2) The facility is committed to offering high-quality supportive services that are developed by the facility in collaboration with the resident to meet the residents individual needs;
(3) The facility provides a variety of creative and innovative services that emphasize the particular needs of each individual resident and the residents personal choice of lifestyle;
(4) The operation of the facility and its interaction with its residents supports, to the maximum extent possible, each residents need for autonomy and the right to make decisions regarding his or her own life;
κ2019 Statutes of Nevada, Page 1338 (CHAPTER 237, SB 364)κ
(5) The operation of the facility is designed to foster a social climate that allows the resident to develop and maintain personal relationships with fellow residents and with persons in the general community;
(6) The facility is designed to minimize and is operated in a manner which minimizes the need for its residents to move out of the facility as their respective physical and mental conditions change over time; and
(7) The facility is operated in such a manner as to foster a culture that provides a high-quality environment for the residents, their families, the staff, any volunteers and the community at large.
8. The Division may grant an exception from the requirement of subparagraph (1) of paragraph (b) of subsection 7 to a facility which is licensed as a residential facility for groups on or before July 1, 2005, and which is authorized to have 10 or fewer beds and was originally constructed as a single-family dwelling if the Division finds that:
(a) Strict application of that requirement would result in economic hardship to the facility requesting the exception; and
(b) The exception, if granted, would not:
(1) Cause substantial detriment to the health or welfare of any resident of the facility;
(2) Result in more than two residents sharing a toilet facility; or
(3) Otherwise impair substantially the purpose of that requirement.
9. The Board shall, if it determines necessary, adopt regulations and requirements to ensure that each residential facility for groups and its staff are prepared to respond to an emergency, including, without limitation:
(a) The adoption of plans to respond to a natural disaster and other types of emergency situations, including, without limitation, an emergency involving fire;
(b) The adoption of plans to provide for the evacuation of a residential facility for groups in an emergency, including, without limitation, plans to ensure that nonambulatory patients may be evacuated;
(c) Educating the residents of residential facilities for groups concerning the plans adopted pursuant to paragraphs (a) and (b); and
(d) Posting the plans or a summary of the plans adopted pursuant to paragraphs (a) and (b) in a conspicuous place in each residential facility for groups.
10. The regulations governing the licensing and operation of facilities for transitional living for released offenders must provide for the licensure of at least three different types of facilities, including, without limitation:
(a) Facilities that only provide a housing and living environment;
(b) Facilities that provide or arrange for the provision of supportive services for residents of the facility to assist the residents with reintegration into the community, in addition to providing a housing and living environment; and
(c) Facilities that provide or arrange for the provision of alcohol and drug abuse programs, in addition to providing a housing and living environment and providing or arranging for the provision of other supportive services.
Κ The regulations must provide that if a facility was originally constructed as a single-family dwelling, the facility must not be authorized for more than eight beds.
11. As used in this section, living unit means an individual private accommodation designated for a resident within the facility.
κ2019 Statutes of Nevada, Page 1339 (CHAPTER 237, SB 364)κ
Sec. 7. NRS 449.160 is hereby amended to read as follows:
449.160 1. The Division may deny an application for a license or may suspend or revoke any license issued under the provisions of NRS 449.029 to 449.2428, inclusive, and sections 2 to 3.5, inclusive, of this act upon any of the following grounds:
(a) Violation by the applicant or the licensee of any of the provisions of NRS 439B.410 or 449.029 to 449.245, inclusive, and sections 2 to 3.5, inclusive, of this act, or of any other law of this State or of the standards, rules and regulations adopted thereunder.
(b) Aiding, abetting or permitting the commission of any illegal act.
(c) Conduct inimical to the public health, morals, welfare and safety of the people of the State of Nevada in the maintenance and operation of the premises for which a license is issued.
(d) Conduct or practice detrimental to the health or safety of the occupants or employees of the facility.
(e) Failure of the applicant to obtain written approval from the Director of the Department of Health and Human Services as required by NRS 439A.100 or as provided in any regulation adopted pursuant to NRS 449.001 to 449.430, inclusive, and sections 2 to 3.5, inclusive, of this act, and 449.435 to 449.531, inclusive, and chapter 449A of NRS if such approval is required.
(f) Failure to comply with the provisions of NRS 449.2486.
2. In addition to the provisions of subsection 1, the Division may revoke a license to operate a facility for the dependent if, with respect to that facility, the licensee that operates the facility, or an agent or employee of the licensee:
(a) Is convicted of violating any of the provisions of NRS 202.470;
(b) Is ordered to but fails to abate a nuisance pursuant to NRS 244.360, 244.3603 or 268.4124; or
(c) Is ordered by the appropriate governmental agency to correct a violation of a building, safety or health code or regulation but fails to correct the violation.
3. The Division shall maintain a log of any complaints that it receives relating to activities for which the Division may revoke the license to operate a facility for the dependent pursuant to subsection 2. The Division shall provide to a facility for the care of adults during the day:
(a) A summary of a complaint against the facility if the investigation of the complaint by the Division either substantiates the complaint or is inconclusive;
(b) A report of any investigation conducted with respect to the complaint; and
(c) A report of any disciplinary action taken against the facility.
Κ The facility shall make the information available to the public pursuant to NRS 449.2486.
4. On or before February 1 of each odd-numbered year, the Division shall submit to the Director of the Legislative Counsel Bureau a written report setting forth, for the previous biennium:
(a) Any complaints included in the log maintained by the Division pursuant to subsection 3; and
(b) Any disciplinary actions taken by the Division pursuant to subsection 2.
κ2019 Statutes of Nevada, Page 1340 (CHAPTER 237, SB 364)κ
Sec. 8. NRS 449.163 is hereby amended to read as follows:
449.163 1. In addition to the payment of the amount required by NRS 449.0308, if a medical facility, facility for the dependent or facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed violates any provision related to its licensure, including any provision of NRS 439B.410 or 449.029 to 449.2428, inclusive, and sections 2 to 3.5, inclusive, of this act or any condition, standard or regulation adopted by the Board, the Division, in accordance with the regulations adopted pursuant to NRS 449.165, may:
(a) Prohibit the facility from admitting any patient until it determines that the facility has corrected the violation;
(b) Limit the occupancy of the facility to the number of beds occupied when the violation occurred, until it determines that the facility has corrected the violation;
(c) If the license of the facility limits the occupancy of the facility and the facility has exceeded the approved occupancy, require the facility, at its own expense, to move patients to another facility that is licensed;
(d) Impose an administrative penalty of not more than $5,000 per day for each violation, together with interest thereon at a rate not to exceed 10 percent per annum; and
(e) Appoint temporary management to oversee the operation of the facility and to ensure the health and safety of the patients of the facility, until:
(1) It determines that the facility has corrected the violation and has management which is capable of ensuring continued compliance with the applicable statutes, conditions, standards and regulations; or
(2) Improvements are made to correct the violation.
2. If the facility fails to pay any administrative penalty imposed pursuant to paragraph (d) of subsection 1, the Division may:
(a) Suspend the license of the facility until the administrative penalty is paid; and
(b) Collect court costs, reasonable attorneys fees and other costs incurred to collect the administrative penalty.
3. The Division may require any facility that violates any provision of NRS 439B.410 or 449.029 to 449.2428, inclusive, and sections 2 to 3.5, inclusive, of this act or any condition, standard or regulation adopted by the Board to make any improvements necessary to correct the violation.
4. Any money collected as administrative penalties pursuant to paragraph (d) of subsection 1 must be accounted for separately and used to administer and carry out the provisions of NRS 449.001 to 449.430, inclusive, and sections 2 to 3.5, inclusive, of this act, 449.435 to 449.531, inclusive, and chapter 449A of NRS to protect the health, safety, well-being and property of the patients and residents of facilities in accordance with applicable state and federal standards or for any other purpose authorized by the Legislature.
Sec. 9. NRS 449.240 is hereby amended to read as follows:
449.240 The district attorney of the county in which the facility is located shall, upon application by the Division, institute and conduct the prosecution of any action for violation of any provisions of NRS 449.029 to 449.245, inclusive [.] , and sections 2 to 3.5, inclusive, of this act.
κ2019 Statutes of Nevada, Page 1341 (CHAPTER 237, SB 364)κ
Sec. 10. NRS 654.190 is hereby amended to read as follows:
654.190 1. The Board may, after notice and an opportunity for a hearing as required by law, impose an administrative fine of not more than $10,000 for each violation on, recover reasonable investigative fees and costs incurred from, suspend, revoke, deny the issuance or renewal of or place conditions on the license of, and place on probation or impose any combination of the foregoing on any licensee who:
(a) Is convicted of a felony relating to the practice of administering a nursing facility or residential facility or of any offense involving moral turpitude.
(b) Has obtained his or her license by the use of fraud or deceit.
(c) Violates any of the provisions of this chapter.
(d) Aids or abets any person in the violation of any of the provisions of NRS 449.029 to 449.2428, inclusive, and sections 2 to 3.5, inclusive, of this act as those provisions pertain to a facility for skilled nursing, facility for intermediate care or residential facility for groups.
(e) Violates any regulation of the Board prescribing additional standards of conduct for licensees, including, without limitation, a code of ethics.
(f) Engages in conduct that violates the trust of a patient or resident or exploits the relationship between the licensee and the patient or resident for the financial or other gain of the licensee.
2. If a licensee requests a hearing pursuant to subsection 1, the Board shall give the licensee written notice of a hearing pursuant to NRS 233B.121 and 241.034. A licensee may waive, in writing, his or her right to attend the hearing.
3. The Board may compel the attendance of witnesses or the production of documents or objects by subpoena. The Board may adopt regulations that set forth a procedure pursuant to which the Chair of the Board may issue subpoenas on behalf of the Board. Any person who is subpoenaed pursuant to this subsection may request the Board to modify the terms of the subpoena or grant additional time for compliance.
4. An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.
5. The expiration of a license by operation of law or by order or decision of the Board or a court, or the voluntary surrender of a license, does not deprive the Board of jurisdiction to proceed with any investigation of, or action or disciplinary proceeding against, the licensee or to render a decision suspending or revoking the license.
Sec. 11. 1. The Division of Public and Behavioral Health of the Department of Health and Human Services shall review and revise the regulations adopted pursuant to chapter 449 of NRS to ensure that those regulations:
(a) Do not conflict with the requirements of sections 2 to 3.5, inclusive, of this act concerning prohibited bases for discrimination; and
(b) Use currently accepted terminology that accounts for and protects the rights of transgender persons and persons who do not identify as either male or female.
2. The State Board of Health shall adopt the regulations described in subsection 2 of section 3.5 of this act on or before July 1, 2020.
3. Except as otherwise provided in this subsection, a medical facility, facility for the dependent or facility which is otherwise required by regulations adopted by the Board pursuant to NRS 449.0303 to be licensed must comply with the regulations adopted pursuant to subsection 2 of section 3.5 of this act on or before July 1, 2021.
κ2019 Statutes of Nevada, Page 1342 (CHAPTER 237, SB 364)κ
must comply with the regulations adopted pursuant to subsection 2 of section 3.5 of this act on or before July 1, 2021. Such a facility may request from the Division of Public and Behavioral Health of the Department of Health and Human Services an extension of the deadline prescribed by this subsection. The Division may grant such a request upon a showing of good cause.
Sec. 12. This act becomes effective:
1. Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
2. On January 1, 2020, for all other purposes.
________
Senate Bill No. 382Senator Cannizzaro
CHAPTER 238
[Approved: May 29, 2019]
AN ACT relating to real property; revising provisions governing deeds of trust; revising provisions relating to foreclosure mediation; revising provisions governing notice requirements for certain mechanics liens; revising provisions relating to how a mortgage of real property is not deemed a conveyance; revising provisions relating to recording estates in property; revising provisions relating to common-interest ownership; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law sets forth various definitions that apply to deeds of trust. (NRS 107.015) Section 1 of this bill adds additional definitions to existing law that are currently found in various provisions governing deeds of trust. Sections 7-21, 24-26 and 32 of this bill make conforming changes.
Existing law provides certain requirements for deeds of trust that encumber a lease of a dwelling unit of a cooperative housing corporation. (NRS 107.025, 107.027, 107.080) Sections 2, 3 and 9 of this bill revise the terminology used for these types of deeds of trust.
Sections 4-6, 9-13 and 16 of this bill make additional revisions to the terminology used for deeds of trust.
Existing law provides the manner in which parties to a deed of trust may set out certain amounts for statutory covenants. Existing law does not provide the amounts that apply if such parties failed to set out these amounts. (NRS 107.040) Section 5 of this bill provides the amounts that apply if such parties fail to set out these amounts.
Existing law requires a lessee to record a notice and either establish a construction disbursement account or record a surety bond before the lessee may cause a work of improvement to be constructed, altered or repaired upon the property that lessee is leasing. (NRS 108.2403) Existing law provides that if a construction disbursement account is established, each person who provided a work of improvement has a lien upon the funds in the account for an amount equal to the amount owed. (NRS 108.2407) Existing law provides that these provisions do not apply if all owners of the property record a written notice of waiver of the owners rights before the commencement of construction of the work of improvement. Each owner who records such a written notice of waiver must serve written notice upon certain parties.
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owner who records such a written notice of waiver must serve written notice upon certain parties. (NRS 108.2405) Section 22 of this bill authorizes such a written notice of waiver to apply with respect to one or more works of improvement as described in the written notice of waiver. Section 22 sets forth certain requirements on how each owner who records such a written notice of waiver must service written notice upon certain parties.
Existing law prohibits a mortgage of real property from being deemed a conveyance so as to enable the owner of the mortgage to take possession of the real property without a foreclosure and sale. (NRS 40.050) Section 23 of this bill prohibits a mortgage of real property from being deemed a conveyance so as to enable the owner of the mortgage to take possession of the real property in the absence of a foreclosure sale or in accordance with a court order.
Existing law sets forth the requirements for recording certain documents that relate to real property. Existing law prohibits the county recorder from recording with respect to real property any deed that does not contain the name and address of the person for whom a statement of the taxes assessed on the real property is mailed. This prohibition applies to a grant, bargain or deed of sale. (NRS 111.312) Section 27 of this bill provides that this prohibition applies to a grant, bargain and sale deed.
Existing law sets forth that the provisions governing common-interest communities only apply to a nonresidential planned community if the declaration that creates a common-interest community so provides. (NRS 116.1201) Section 28 of this bill places this applicability language in a new section and further sets forth how a declaration may provide that such provisions apply to nonresidential planned communities. Section 29 of this bill makes a conforming change.
Existing law sets forth how a declaration that creates a common-interest community may be amended. Existing law prohibits an amendment, without the unanimous consent of the units owners, from changing: (1) the boundaries of any unit; (2) the allocated interests of a unit; or (3) the uses to which any unit is restricted. (NRS 116.2117) Section 30 of this bill prohibits an amendment, without the unanimous consent of the units owners, from changing: (1) the boundaries of any unit; or (2) the allocated interests of a unit.
Existing law authorizes a unit-owners association to commence a civil action only upon a vote or written agreement of certain owners of units. At least 10 days before an association commences or seeks to ratify the commencement of a civil action, the association shall provide a written statement to the units owners that includes certain information. Existing law additionally provides that the association may commence certain civil actions without such a vote or written agreement. (NRS 116.31088) Section 30.5 of this bill specifies that the written statement that is required to be provided at least 10 days before the commencement or ratification of the commencement of a civil action applies to civil actions on which the owners of units are entitled to vote.
Existing law creates the Account for Foreclosure Mediation Assistance in the State General Fund and requires that the money in the Account be expended only for the purpose of supporting a program of foreclosure mediation and developing and maintaining an Internet portal for the program. (NRS 107.080) Existing law requires Home Means Nevada, Inc., to: (1) develop and maintain the Internet portal for the program of foreclosure mediation; and (2) submit to the Interim Finance Committee, at least quarterly, a report that concerns the Account and any other information the Interim Finance Committee requires. (NRS 107.086) Section 12 of this bill revises the reporting requirement and instead requires Home Means Nevada, Inc., to submit to the Interim Finance Committee, at least annually: (1) a report concerning the program of foreclosure mediation and the operational and financial status of Home Means Nevada, Inc.; and (2) its annual audit and tax returns. Existing law also requires the Administrator of the Division of Internal Audits of the Office of Finance to conduct an audit of Home Means Nevada, Inc., at least annually. (NRS 107.086) Section 12 removes this requirement.
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EXPLANATION
Matter in bolded italics is
new; matter between brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 107.015 is hereby amended to read as follows:
107.015 As used in this chapter:
1. Association and unit-owners association have the meanings ascribed to them in NRS 116.011.
2. Beneficiary means the beneficiary of the deed of trust or the successor in interest of the beneficiary or any person designated or authorized to act on behalf of the beneficiary or its successor in interest.
3. Cooperative has the meaning ascribed to it in NRS 116.031.
4. Facsimile machine means a device which receives and copies a reproduction or facsimile of a document or photograph which is transmitted electronically or telephonically by telecommunications lines.
[2.] 5. Noncommercial lender means a lender which makes a loan secured by a deed of trust on owner-occupied housing and which is not a bank, financial institution or other entity regulated pursuant to title 55 or 56 of NRS.
6. Owner-occupied housing means housing that is occupied by an owner as the owners primary residence. The term does not include vacant land or any time share or other property regulated under chapter 119A of NRS.
7. Person with an interest means any person who has or claims any right, title or interest in, or lien or charge upon, the real property described in a deed of trust, as evidenced by any document or instrument recorded in the office of the county recorder of the county in which any part of the real property is situated.
8. Proprietary lease has the meaning ascribed to it in NRS 116.077.
9. Residential foreclosure means the sale of a single-family residence under a power of sale granted by NRS 107.0805.
10. Sale in lieu of a foreclosure sale has the meaning ascribed to it in NRS 40.429.
11. Single-family residence means a structure that is comprised of not more than four units. The term does not include vacant land or any time share or other property regulated under chapter 119A of NRS.
12. Surety means a corporation authorized to transact surety business in this State pursuant to NRS 679A.030 that:
(a) Is included in the United States Department of the Treasurys Listing of Approved Sureties; and
(b) Issues a surety bond pursuant to this section that does not exceed the underwriting limitations established for that surety by the United States Department of the Treasury.
13. Surety bond means a bond issued by a surety for the reconveyance of a deed of trust pursuant to this section.
14. Title insurer has the meaning ascribed to it in NRS 692A.070.
15. Trustee means the trustee of record.
16. Unit has the meaning ascribed to it in NRS 116.093.
Sec. 2. NRS 107.025 is hereby amended to read as follows:
107.025 A deed of trust may encumber an estate for years however created, including a proprietary lease [of a dwelling unit of] in a cooperative , [housing corporation,] unless prohibited by the instrument creating the estate, and foreclosure may be had by the exercise of a power of sale in accordance with the provisions of this chapter.
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, [housing corporation,] unless prohibited by the instrument creating the estate, and foreclosure may be had by the exercise of a power of sale in accordance with the provisions of this chapter.
Sec. 3. NRS 107.027 is hereby amended to read as follows:
107.027 1. The [shares which accompany a] ownership interest and votes in the cooperative association entitling the units owner to lease [of] a [dwelling] unit in a cooperative [housing corporation] are appurtenant to the proprietary lease. Any security interest in or lien on the proprietary lease encumbers the [shares] ownership interest and votes in the cooperative association whether or not the instrument creating the interest or lien expressly includes [the shares.] such interests and votes.
2. No security interest in or lien on [shares of] the ownership interest or votes in a cooperative [housing corporation] association is effective unless the instrument which purports to create the interest or lien encumbers the proprietary lease to which the [shares] ownership interest and votes pertain.
Sec. 4. NRS 107.030 is hereby amended to read as follows:
107.030 Every deed of trust made after March 29, 1927, may adopt by reference all or any of the following covenants, agreements, obligations, rights and remedies:
1. Covenant No. 1. That grantor agrees to pay and discharge at maturity all taxes and assessments and all other charges and encumbrances which now are or shall hereafter be, or appear to be, a lien upon the [trust] premises, or any part thereof; and that grantor will pay all interest or installments due on any prior encumbrance, and that in default thereof, beneficiary may, without demand or notice, pay the same, and beneficiary shall be sole judge of the legality or validity of such taxes, assessments, charges or encumbrances, and the amount necessary to be paid in satisfaction or discharge thereof.
2. Covenant No. 2. That the grantor will at all times keep the buildings and improvements which are now or shall hereafter be erected upon the premises insured against loss or damage by fire, to the amount of at least $........, by some insurance company or companies approved by beneficiary, the policies for which insurance shall be made payable, in case of loss, to beneficiary, and shall be delivered to and held by the beneficiary as further security; and that in default thereof, beneficiary may procure such insurance, not exceeding the amount aforesaid, to be effected either upon the interest of trustee or upon the interest of grantor, or his or her assigns, and in their names, loss, if any, being made payable to beneficiary, and may pay and expend for premiums for such insurance such sums of money as the beneficiary may deem necessary.
3. Covenant No. 3. That if, during the existence of the trust, there be commenced or pending any suit or action affecting the [conveyed] premises, or any part thereof, or the title thereto, or if any adverse claim for or against the premises, or any part thereof, be made or asserted, the trustee or beneficiary may appear or intervene in the suit or action and retain counsel therein and defend same, or otherwise take such action therein as they may be advised, and may settle or compromise same or the adverse claim; and in that behalf and for any of the purposes may pay and expend such sums of money as the trustee or beneficiary may deem to be necessary.
4. Covenant No. 4. That the grantor will pay to trustee and to beneficiary respectively, on demand, the amounts of all sums of money which they shall respectively pay or expend pursuant to the provisions of the implied covenants of this section, or any of them, together with interest upon each of the amounts, until paid, from the time of payment thereof, at the rate of ................
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which they shall respectively pay or expend pursuant to the provisions of the implied covenants of this section, or any of them, together with interest upon each of the amounts, until paid, from the time of payment thereof, at the rate of ................ percent per annum.
5. Covenant No. 5. That in case grantor shall well and truly perform the obligation or pay or cause to be paid at maturity the debt or promissory note, and all moneys agreed to be paid, and interest thereon for the security of which the transfer is made, and also the reasonable expenses of the trust in this section specified, then the trustee, its successors or assigns, shall reconvey to the grantor all the estate in the premises conveyed to the trustee by the grantor. Any part of the trust property may be reconveyed at the request of the beneficiary.
6. Covenant No. 6. That if default be made in the performance of the obligation, or in the payment of the debt, or interest thereon, or any part thereof, or in the payment of any of the other moneys agreed to be paid, or of any interest thereon, or if any of the conditions or covenants in this section adopted by reference be violated, and if the notice of breach and election to sell, required by this chapter, be first recorded, then trustee, its successors or assigns, on demand by beneficiary, or assigns, shall sell the above-granted premises, or such part thereof as in its discretion it shall find necessary to sell, in order to accomplish the objects of these trusts, in the manner following, namely:
The trustees shall first give notice of the time and place of such sale, in the manner provided in NRS 107.080 and may postpone such sale not more than three times by proclamation made to the persons assembled at the time and place previously appointed and advertised for such sale, and on the day of sale so advertised, or to which such sale may have been postponed, the trustee may sell the property so advertised, or any portion thereof, at public auction, at the time and place specified in the notice, at a public location in the county in which the property, or any part thereof, to be sold, is situated, to the highest cash bidder. The beneficiary, obligee, creditor, or the holder or holders of the promissory note or notes secured thereby may bid and purchase at such sale. The beneficiary may, after recording the notice of breach and election, waive or withdraw the same or any proceedings thereunder, and shall thereupon be restored to the beneficiarys former position and have and enjoy the same rights as though such notice had not been recorded.
7. Covenant No. 7. That the trustee, upon such sale, shall make (without warranty), execute and, after due payment made, deliver to purchaser or purchasers, his, her or their heirs or assigns, a deed or deeds of the premises so sold which shall convey to the purchaser all the title of the grantor in the [trust] premises, and shall apply the proceeds of the sale thereof in payment, firstly, of the expenses of such sale, together with the reasonable expenses of the trust, including counsel fees, in an amount equal to ................ percent of the amount secured thereby and remaining unpaid or reasonable counsel fees and costs actually incurred, which shall become due upon any default made by grantor in any of the payments aforesaid; and also such sums, if any, as trustee or beneficiary shall have paid, for procuring a search of the title to the premises, or any part thereof, subsequent to the execution of the deed of trust; and in payment, secondly, of the obligation or debts secured, and interest thereon then remaining unpaid, and the amount of all other moneys with interest thereon herein agreed or provided to be paid by grantor; and the balance or surplus of such proceeds of sale it shall pay to grantor, his or her heirs, executors, administrators or assigns.
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by grantor; and the balance or surplus of such proceeds of sale it shall pay to grantor, his or her heirs, executors, administrators or assigns.
8. Covenant No. 8. That in the event of a sale of the premises , [conveyed or transferred in trust,] or any part thereof, and the execution of a deed or deeds therefor under such trust, the recital therein of default, and of recording notice of breach and election of sale, and of the elapsing of the 3-month period, and of the giving of notice of sale, and of a demand by beneficiary, his or her heirs or assigns, that such sale should be made, shall be conclusive proof of such default, recording, election, elapsing of time, and of the due giving of such notice, and that the sale was regularly and validly made on due and proper demand by beneficiary, his or her heirs and assigns; and any such deed or deeds with such recitals therein shall be effectual and conclusive against grantor, his or her heirs and assigns, and all other persons; and the receipt for the purchase money recited or contained in any deed executed to the purchaser as aforesaid shall be sufficient discharge to such purchaser from all obligation to see to the proper application of the purchase money, according to the trusts aforesaid.
9. Covenant No. 9. That the beneficiary or his or her assigns may, from time to time, appoint another trustee, or trustees, to execute the trust created by the deed of trust . [or other conveyance in trust.] An instrument executed and acknowledged by the beneficiary is conclusive proof of the proper appointment of such substituted trustee. Upon the recording of such executed and acknowledged instrument, the new trustee or trustees shall be vested with all the title, interest, powers, duties and trusts in the premises vested in or conferred upon the original trustee. If there be more than one trustee, either may act alone and execute the trusts upon the request of the beneficiary, and all of the trustees acts thereunder shall be deemed to be the acts of all trustees, and the recital in any conveyance executed by such sole trustee of such request shall be conclusive evidence thereof, and of the authority of such sole trustee to act.
Sec. 5. NRS 107.040 is hereby amended to read as follows:
107.040 1. In order to adopt by reference any of the covenants, agreements, obligations, rights and remedies in NRS 107.030, it shall only be necessary to state in the deed of trust the following: The following covenants, Nos. ................, ................ and ................ (inserting the respective numbers) of NRS 107.030 are hereby adopted and made a part of this deed of trust.
2. A deed of trust , [or other conveyance in trust,] in order to fix the amount of insurance to be carried, need not reincorporate the provisions of Covenant No. 2 of NRS 107.030, but may merely state the following: Covenant No. 2, and set out thereafter the amount of insurance to be carried [.] or, if no amount is set out, the amount must be the full replacement value of the buildings and improvements which are now or shall hereafter be erected upon the premises.
3. In order to fix the rate of interest under Covenant No. 4 of NRS 107.030, it shall only be necessary to state in such [trust] deed [or other conveyance in] of trust [,] the following: Covenant No. 4, and set out thereafter the rate of interest to be charged thereunder [.] or, if no rate of interest is set out, the rate of interest must be at the highest applicable rate set forth in the note secured by such deed of trust.
4. In order to fix the amount or percent of counsel fees under Covenant No. 7 of NRS 107.030, it shall only be necessary to state in such deed of trust, [or other conveyance in trust,] the following: Covenant No.
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trust, [or other conveyance in trust,] the following: Covenant No. 7, and set out thereafter [either] the percentage to be allowed or, [in lieu of the] if no percentage [to be allowed,] is set out, the amount to be allowed must be reasonable counsel fees and costs actually incurred.
Sec. 6. NRS 107.050 is hereby amended to read as follows:
107.050 Nothing in NRS 107.030 and 107.040 shall prevent the parties to any [transfer in] deed of trust from entering into other, different or additional covenants or agreements than those set out in NRS 107.030.
Sec. 7. NRS 107.079 is hereby amended to read as follows:
107.079 1. Whenever the debt or obligation secured by a deed of trust has been paid in full or otherwise satisfied and the current beneficiary of record cannot be located after diligent search as described in subsection 9 or refuses to execute and deliver a proper request to reconvey the estate in real property conveyed to the trustee by the grantor, as required by NRS 107.077, or whenever a balance, including, without limitation, principal and interest, remains due on the debt secured by the deed of trust and the trustor or the trustors successor in interest cannot locate after diligent search the current beneficiary of record, the trustor or the trustors successor in interest may record or cause to be recorded a surety bond that meets the requirements of subsection 2 and a declaration that meets the requirements of subsection 3.
2. The surety bond recorded pursuant to subsection 1 must:
(a) Be acceptable to the trustee;
(b) Be issued by a surety authorized to issue surety bonds in this State in an amount equal to the greater of:
(1) Two times the amount of the original obligation or debt secured by the deed of trust plus any principal amounts, including, without limitation, advances, indicated in a recorded amendment thereto; or
(2) One-and-a-half times the total amount computed pursuant to subparagraph (1) plus any accrued interest on that amount;
(c) Be conditioned on payment of any amount which the beneficiary recovers in an action to enforce the obligation or recover the debt secured by the deed of trust, plus costs and reasonable attorneys fees;
(d) Be made payable to the trustee who executes a reconveyance pursuant to subsection 4 and the beneficiary or the beneficiarys successor in interest; and
(e) Contain a statement of:
(1) The recording date and instrument number or book and page number of the recorded deed of trust;
(2) The names of the original trustor and beneficiary;
(3) The amount shown as the original principal amount secured by the deed of trust; and
(4) The recording information and new principal amount shown in any recorded amendment to the deed of trust.
3. The declaration recorded pursuant to subsection 1 must:
(a) Be signed under penalty of perjury by the trustor or the trustors successor in interest;
(b) State that it is recorded pursuant to this section;
(c) State the name of the original trustor;
(d) State the name of the beneficiary;
(e) State the name and address of the person making the declaration;
(f) Except as otherwise provided in subsection 8, contain a statement of the following, whichever is applicable:
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(1) That the obligation or debt secured by the deed of trust has been paid in full or otherwise satisfied and the current beneficiary of record cannot be located after diligent search or refuses to execute and deliver a proper request to reconvey the estate in real property conveyed to the trustee by the grantor, as required by NRS 107.077; or
(2) That a balance, including, without limitation, principal and interest, remains due on the debt secured by the deed of trust and the trustor or the trustors successor in interest cannot locate after diligent search the current beneficiary of record;
(g) Contain a statement that the declarant has mailed by certified mail, return receipt requested, to the last known address of the person to whom payments under the deed of trust were made and to the last beneficiary of record at the address indicated for such beneficiary on the instrument creating, assigning or conveying the deed of trust, a notice of the recording of the surety bond and declaration pursuant to this section, of the name and address of the trustee, of the beneficiarys right to record a written objection to the reconveyance of the deed of trust pursuant to this section and of the requirement to notify the trustee in writing of any such objection; and
(h) Contain the date of the mailing of any notice pursuant to this section and the name and address of each person to whom such a notice was mailed.
4. Not earlier than 30 days after the recording of the surety bond and declaration pursuant to subsections 1, 2 and 3, delivery to the trustee of the fees charged by the trustee for the preparation, execution or recordation of a reconveyance pursuant to subsection 7 of NRS 107.077, plus costs incurred by the trustee, and a demand for reconveyance under NRS 107.077, the trustee shall execute and record or cause to be recorded a reconveyance of the deed of trust pursuant to NRS 107.077, unless the trustee has received a written objection to the reconveyance of the deed of trust from the beneficiary of record within 30 days after the recording of the surety bond and declaration pursuant to subsections 1, 2 and 3. The recording of a reconveyance pursuant to this subsection has the same effect as a reconveyance of the deed of trust pursuant to NRS 107.077 and releases the lien of the deed of trust. A trustee is not liable to any person for the execution and recording of a reconveyance pursuant to this section if the trustee acted in reliance upon the substantial compliance with this section by the trustor or the trustors successor in interest. The sole remedy for a person damaged by the reconveyance of a deed of trust pursuant to this section is an action for damages against the trustor or the person making the declaration described in subsection 3 or an action against the surety bond.
5. Upon the recording of a reconveyance of the deed of trust pursuant to subsection 4, interest no longer accrues on any balance remaining due under the obligation or debt secured by the deed of trust to the extent that the balance due has been stated in the declaration described in subsection 3. Notwithstanding any provision of chapter 120A of NRS, any amount of the balance remaining due under the obligation or debt secured by the deed of trust, including, without limitation, principal and interest, which is remitted to the issuer of the surety bond described in subsection 2 in connection with the issuance of that surety bond must, if unclaimed within 3 years after remittance, be property that is presumed abandoned for the purposes of chapter 120A of NRS. From the date on which the amount is paid or delivered to the Administrator of Unclaimed Property pursuant to NRS 120A.570, the issuer of the surety bond is relieved of any liability to pay to the beneficiary or his or her heirs or successors in interest the amount paid or delivered to the Administrator.
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NRS 120A.570, the issuer of the surety bond is relieved of any liability to pay to the beneficiary or his or her heirs or successors in interest the amount paid or delivered to the Administrator.
6. Any failure to comply with the provisions of this section does not affect the rights of a bona fide purchaser or encumbrancer for value.
7. This section shall not be deemed to create an exclusive procedure for the reconveyance of a deed of trust and the issuance of surety bonds and declarations to release the lien of a deed of trust, and shall not affect any other procedures, whether or not such procedures are set forth in statute, for the reconveyance of a deed of trust and the issuance of surety bonds and declaration to release the lien of a deed of trust.
8. For the purposes of this section, the trustor or the trustors successor in interest may substitute the current trustee of record without conferring any duties upon that trustee other than duties which are incidental to the execution of a reconveyance pursuant to this section, if:
(a) The debt or obligation secured by a deed of trust has been paid in full or otherwise satisfied;
(b) The current trustee of record and the current beneficiary of record cannot be located after diligent search as described in subsection 9;
(c) The declaration filed pursuant to subsection 3:
(1) In addition to the information required to be stated in the declaration pursuant to subsection 3, states that the current trustee of record and the current beneficiary of record cannot be located after diligent search; and
(2) In lieu of the statement required by paragraph (f) of subsection 3, contains a statement that the obligation or debt secured by the deed of trust has been paid in full or otherwise satisfied and the current beneficiary of record cannot be located after diligent search or refuses to execute and deliver a proper request to reconvey the estate in real property conveyed to the trustee by the grantor, as required by NRS 107.077;
(d) The substitute trustee is a title insurer that agrees to accept the substitution, except that this paragraph does not impose a duty on a title insurer to accept the substitution; and
(e) The surety bond required by this section is for a period of not less than 5 years.
9. For the purposes of subsection 1, a diligent search has been conducted if:
(a) A notice stating the intent to record a surety bond and declaration pursuant to this section, the name and address of the trustee, the beneficiarys right to record a written objection to the reconveyance of the deed of trust pursuant to this section and the requirement to notify the trustee in writing of any such objection, has been mailed by certified mail, return receipt requested, to the last known address of the person to whom payments under the deed of trust were made and to the last beneficiary of record at the address indicated for such beneficiary on the instrument creating, assigning or conveying the deed of trust.
(b) A search has been conducted of the telephone directory in the city where the beneficiary of record or trustee of record, whichever is applicable, maintained its last known address or place of business.
(c) If the beneficiary of record or the beneficiarys successor in interest, or the trustee of record or the trustees successor in interest, whichever is applicable, is a business entity, a search has been conducted of the records of the Secretary of State and the records of the agency or officer of the state of organization of the beneficiary, trustee or successor, if known.
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the Secretary of State and the records of the agency or officer of the state of organization of the beneficiary, trustee or successor, if known.
(d) If the beneficiary of record or trustee of record is a state or national bank or state or federal savings and loan association or savings bank, an inquiry concerning the location of the beneficiary or trustee has been made to the regulator of the bank, savings and loan association or savings bank.
[10. As used in this section:
(a) Surety means a corporation authorized to transact surety business in this State pursuant to NRS 679A.030 that:
(1) Is included in the United States Department of the Treasurys Listing of Approved Sureties; and
(2) Issues a surety bond pursuant to this section that does not exceed the underwriting limitations established for that surety by the United States Department of the Treasury.
(b) Surety bond means a bond issued by a surety for the reconveyance of a deed of trust pursuant to this section.]
Sec. 8. NRS 107.0795 is hereby amended to read as follows:
107.0795 As used in NRS 107.0795 to 107.140, inclusive, unless the context otherwise requires:
1. Abandoned residential property means residential real property:
(a) Consisting of not more than four family dwelling units or a single-family residential unit, including, without limitation, a condominium, townhouse or home within a subdivision, if the unit is sold, leased or otherwise conveyed unit by unit, regardless of whether the unit is part of a larger building or parcel that consists of more than four units; and
(b) That the grantor or the successor in interest of the grantor has surrendered as evidenced by a document signed by the grantor or successor confirming the surrender or by the delivery of the keys to the property to the beneficiary or that satisfies the following conditions:
(1) The residential real property is not currently occupied as a principal residence by the grantor of the deed of trust, the person who holds title of record or any lawful occupant;
(2) The obligation secured by the deed of trust is in default and the deficiency in performance or payment has not been cured;
(3) The gas, electric and water utility services to the residential real property have been terminated;
(4) It appears, after reasonable inquiry, that there are no children enrolled in school residing at the address of the residential real property;
(5) Payments pursuant to the federal Social Security Act, including, without limitation, retirement and survivors benefits, supplemental security income benefits and disability insurance benefits, payments for unemployment compensation or payments for public assistance, as defined in NRS 422A.065, are not currently being delivered, electronically or otherwise, to a person who has registered the address of the residential real property as his or her residence with the agency making the payment;
(6) An owner of the residential real property is not presently serving in the Armed Forces of the United States, a reserve component thereof or the National Guard; and
(7) Two or more of the following conditions exist:
(I) Construction was initiated on the residential real property and was discontinued before completion, leaving a building unsuitable for occupancy, and no construction has taken place for at least 6 months;
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(II) Multiple windows on the residential real property are boarded up or closed off or are smashed through, broken off or unhinged, or multiple window panes are broken and unrepaired;
(III) Doors on the residential real property are smashed through, broken off, unhinged or continuously unlocked;
(IV) The residential real property has been stripped of copper or other materials, or interior fixtures to the property have been removed;
(V) Law enforcement officials have received at least one report of trespassing or vandalism or other illegal acts being committed at the residential real property within the immediately preceding 6 months;
(VI) The residential real property has been declared unfit for occupancy and ordered to remain vacant and unoccupied under an order issued by a municipal or county authority or a court of competent jurisdiction;
(VII) The local police, fire or code enforcement authority has requested that the owner or any other interested or authorized party secure the residential real property because the local authority has declared the property to be an imminent danger to the health, safety and welfare of the public; or
(VIII) The residential real property is open and unprotected and in reasonable danger of significant damage resulting from exposure to the elements or vandalism.
2. The term does not include residential real property if:
(a) There is construction, renovation or rehabilitation on the residential real property that is proceeding diligently to completion, and any building being constructed, renovated or rehabilitated on the property is in substantial compliance with all applicable ordinances, codes, regulations and laws;
(b) The residential real property is occupied on a seasonal basis, but is otherwise secure;
(c) There are bona fide rental or sale signs on the residential real property, or the property is listed on a Multiple Listing Service, and the property is secure; or
(d) The residential real property is secure but is the subject of a probate action, action to quiet title or any other ownership dispute.
3. As used in this section, condominium has the meaning ascribed to it in NRS 116.027.
Sec. 9. NRS 107.080 is hereby amended to read as follows:
107.080 1. Except as otherwise provided in NRS 106.210, 107.0805, 107.085 and 107.086, if any transfer in trust of any estate in real property is made after March 29, 1927, to secure the performance of an obligation or the payment of any debt, a power of sale is hereby conferred upon the trustee to be exercised after a breach of the obligation for which the transfer is security.
2. The power of sale must not be exercised, however, until:
(a) In the case of any deed of trust [agreement] coming into force:
(1) On or after July 1, 1949, and before July 1, 1957, the grantor, the person who holds the title of record, a beneficiary under a subordinate deed of trust or any other person who has a subordinate lien or encumbrance of record on the property has, for a period of 15 days, computed as prescribed in subsection 3, failed to make good the deficiency in performance or payment; or
(2) On or after July 1, 1957, the grantor, the person who holds the title of record, a beneficiary under a subordinate deed of trust or any other person who has a subordinate lien or encumbrance of record on the property has, for a period of 35 days, computed as prescribed in subsection 3, failed to make good the deficiency in performance or payment.
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person who has a subordinate lien or encumbrance of record on the property has, for a period of 35 days, computed as prescribed in subsection 3, failed to make good the deficiency in performance or payment.
(b) The beneficiary, the successor in interest of the beneficiary or the trustee first executes and causes to be recorded in the office of the recorder of the county wherein the trust property, or some part thereof, is situated a notice of the breach and of the election to sell or cause to be sold the property to satisfy the obligation.
(c) The beneficiary or its successor in interest or the servicer of the obligation or debt secured by the deed of trust has instructed the trustee to exercise the power of sale with respect to the property.
(d) Not less than 3 months have elapsed after the recording of the notice or, if the notice includes an affidavit and a certification indicating that, pursuant to NRS 107.130, an election has been made to use the expedited procedure for the exercise of the power of sale with respect to abandoned residential property, not less than 60 days have elapsed after the recording of the notice.
3. The 15- or 35-day period provided in paragraph (a) of subsection 2 commences on the first day following the day upon which the notice of default and election to sell is recorded in the office of the county recorder of the county in which the property is located and a copy of the notice of default and election to sell is mailed by registered or certified mail, return receipt requested and with postage prepaid to the grantor or, to the person who holds the title of record on the date the notice of default and election to sell is recorded, and, if the property is operated as a facility licensed under chapter 449 of NRS, to the State Board of Health, at their respective addresses, if known, otherwise to the address of the trust property or, if authorized by the parties, delivered by electronic transmission. The notice of default and election to sell must describe the deficiency in performance or payment and may contain a notice of intent to declare the entire unpaid balance due if acceleration is permitted by the obligation secured by the deed of trust, but acceleration must not occur if the deficiency in performance or payment is made good and any costs, fees and expenses incident to the preparation or recordation of the notice and incident to the making good of the deficiency in performance or payment are paid within the time specified in subsection 2.
4. The trustee, or other person authorized to make the sale under the terms of the [trust] deed [or transfer in] of trust, shall, after expiration of the applicable period specified in paragraph (d) of subsection 2 following the recording of the notice of breach and election to sell, and before the making of the sale, give notice of the time and place thereof by recording the notice of sale and by:
(a) Providing the notice to each trustor, any other person entitled to notice pursuant to this section and, if the property is operated as a facility licensed under chapter 449 of NRS, the State Board of Health, by personal service, by electronic transmission if authorized by the parties or by mailing the notice by registered or certified mail to the last known address of the trustor and any other person entitled to such notice pursuant to this section;
(b) Posting a similar notice particularly describing the property, for 20 days successively, in a public place in the county where the property is situated; and
(c) Publishing a copy of the notice three times, once each week for 3 consecutive weeks, in a newspaper of general circulation in the county where the property is situated or, if the property is a time share, by posting a copy of the notice on an Internet website and publishing a statement in a newspaper in the manner required by subsection 3 of NRS 119A.560.
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the property is situated or, if the property is a time share, by posting a copy of the notice on an Internet website and publishing a statement in a newspaper in the manner required by subsection 3 of NRS 119A.560.
5. Every sale made under the provisions of this section and other sections of this chapter vests in the purchaser the title of the grantor and any successors in interest without equity or right of redemption. Except as otherwise provided in subsection 7, a sale made pursuant to this section must be declared void by any court of competent jurisdiction in the county where the sale took place if:
(a) The trustee or other person authorized to make the sale does not substantially comply with the provisions of this section;
(b) Except as otherwise provided in subsection 6, an action is commenced in the county where the sale took place within 30 days after the date on which the trustees deed upon sale is recorded pursuant to subsection 10 in the office of the county recorder of the county in which the property is located; and
(c) A notice of lis pendens providing notice of the pendency of the action is recorded in the office of the county recorder of the county where the sale took place within 5 days after commencement of the action.
6. If proper notice is not provided pursuant to subsection 3 or paragraph (a) of subsection 4 to the grantor, to the person who holds the title of record on the date the notice of default and election to sell is recorded, to each trustor or to any other person entitled to such notice, the person who did not receive such proper notice may commence an action pursuant to subsection 5 within 90 days after the date of the sale.
7. Upon expiration of the time for commencing an action which is set forth in subsections 5 and 6, any failure to comply with the provisions of this section or any other provision of this chapter does not affect the rights of a bona fide purchaser as described in NRS 111.180.
8. If, in an action brought by the grantor or the person who holds title of record in the district court in and for the county in which the real property is located, the court finds that the beneficiary, the successor in interest of the beneficiary or the trustee did not comply with any requirement of subsection 2, 3 or 4, the court must award to the grantor or the person who holds title of record:
(a) Damages of $5,000 or treble the amount of actual damages, whichever is greater;
(b) An injunction enjoining the exercise of the power of sale until the beneficiary, the successor in interest of the beneficiary or the trustee complies with the requirements of subsections 2, 3 and 4; and
(c) Reasonable attorneys fees and costs,
Κ unless the court finds good cause for a different award. The remedy provided in this subsection is in addition to the remedy provided in subsection 5.
9. The sale or assignment of a proprietary lease [of a dwelling unit of] in a cooperative [housing corporation] vests in the purchaser or assignee title to the [shares] ownership interest and votes in the [corporation] cooperative association which accompany the proprietary lease.
10. After a sale of property is conducted pursuant to this section, the trustee shall:
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(a) Within 30 days after the date of the sale, record the trustees deed upon sale in the office of the county recorder of the county in which the property is located; or
(b) Within 20 days after the date of the sale, deliver the trustees deed upon sale to the successful bidder. Within 10 days after the date of delivery of the deed by the trustee, the successful bidder shall record the trustees deed upon sale in the office of the county recorder of the county in which the property is located.
11. Within 5 days after recording the trustees deed upon sale, the trustee or successful bidder, whoever recorded the trustees deed upon sale pursuant to subsection 10, shall cause a copy of the trustees deed upon sale to be posted conspicuously on the property. The failure of a trustee or successful bidder to effect the posting required by this subsection does not affect the validity of a sale of the property to a bona fide purchaser for value without knowledge of the failure.
12. If the successful bidder fails to record the trustees deed upon sale pursuant to paragraph (b) of subsection 10, the successful bidder:
(a) Is liable in a civil action to any party that is a senior lienholder against the property that is the subject of the sale in a sum of up to $500 and for reasonable attorneys fees and the costs of bringing the action; and
(b) Is liable in a civil action for any actual damages caused by the failure to comply with the provisions of subsection 10 and for reasonable attorneys fees and the costs of bringing the action.
13. The county recorder shall, in addition to any other fee, at the time of recording a notice of default and election to sell collect:
(a) A fee of $150 for deposit in the State General Fund.
(b) A fee of $95 for deposit in the Account for Foreclosure Mediation Assistance, which is hereby created in the State General Fund. The Account must be administered by the Interim Finance Committee and the money in the Account may be expended only for the purpose of:
(1) Supporting a program of foreclosure mediation; and
(2) The development and maintenance of an Internet portal for a program of foreclosure mediation pursuant to subsection [18] 16 of NRS 107.086.
(c) A fee of $5 to be paid over to the county treasurer on or before the fifth day of each month for the preceding calendar month. The county recorder may direct that 1.5 percent of the fees collected by the county recorder pursuant to this paragraph be transferred into a special account for use by the office of the county recorder. The county treasurer shall remit quarterly to the organization operating the program for legal services that receives the fees charged pursuant to NRS 19.031 for the operation of programs for the indigent all the money received from the county recorder pursuant to this paragraph.
14. The fees collected pursuant to paragraphs (a) and (b) of subsection 13 must be paid over to the county treasurer by the county recorder on or before the fifth day of each month for the preceding calendar month, and, except as otherwise provided in this subsection, must be placed to the credit of the State General Fund or the Account for Foreclosure Mediation Assistance as prescribed pursuant to subsection 13. The county recorder may direct that 1.5 percent of the fees collected by the county recorder be transferred into a special account for use by the office of the county recorder. The county treasurer shall, on or before the 15th day of each month, remit the fees deposited by the county recorder pursuant to this subsection to the State Controller for credit to the State General Fund or the Account as prescribed in subsection 13.
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the fees deposited by the county recorder pursuant to this subsection to the State Controller for credit to the State General Fund or the Account as prescribed in subsection 13.
15. The beneficiary, the successor in interest of the beneficiary or the trustee who causes to be recorded the notice of default and election to sell shall not charge the grantor or the successor in interest of the grantor any portion of any fee required to be paid pursuant to subsection 13.
[16. As used in this section, trustee means the trustee of record.]
Sec. 10. NRS 107.0805 is hereby amended to read as follows:
107.0805 1. In addition to the requirements set forth in NRS 107.080, 107.085 and 107.086, the power of sale for a residential foreclosure is subject to the following requirements and conditions and must not be executed until:
(a) In the case of any deed of trust [agreement] which concerns owner-occupied housing , [as defined in NRS 107.086,] the grantor, the person who holds the title of record, a beneficiary under a subordinate deed of trust or any other person who has a subordinate lien or encumbrance of record on the property has, for a period that commences in the manner and subject to the requirements described in subsection 2 and expires 5 days before the date of sale, failed to make good the deficiency in performance or payment.
(b) The beneficiary, the successor in interest of the beneficiary or the trustee first executes and causes to be recorded in the office of the recorder of the county wherein the trust property, or some part thereof, is situated a notice of the breach and of the election to sell or cause to be sold the property pursuant to subsection 2 of NRS 107.080, together with a notarized affidavit of authority to exercise the power of sale. The affidavit required by this paragraph must state under penalty of perjury the following information, which must be based on the direct, personal knowledge of the affiant or the personal knowledge which the affiant acquired by a review of the business records of the beneficiary, the successor in interest of the beneficiary or the servicer of the obligation or debt secured by the deed of trust, which business records must meet the standards set forth in NRS 51.135:
(1) The full name and business address of the current trustee or the current trustees personal representative or assignee, the current holder of the note secured by the deed of trust, the current beneficiary of record and the current servicer of the obligation or debt secured by the deed of trust.
(2) That the beneficiary under the deed of trust, the successor in interest of the beneficiary or the trustee is in actual or constructive possession of the note secured by the deed of trust or that the beneficiary or its successor in interest or the trustee is entitled to enforce the obligation or debt secured by the deed of trust. For the purposes of this subparagraph, if the obligation or debt is an instrument, as defined in subsection 2 of NRS 104.3103, a beneficiary or its successor in interest or the trustee is entitled to enforce the instrument if the beneficiary or its successor in interest or the trustee is:
(I) The holder of the instrument;
(II) A nonholder in possession of the instrument who has the rights of a holder; or
(III) A person not in possession of the instrument who is entitled to enforce the instrument pursuant to a court order issued under NRS 104.3309.
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(3) That the beneficiary or its successor in interest, the servicer of the obligation or debt secured by the deed of trust or the trustee, or an attorney representing any of those persons, has sent to the obligor or borrower of the obligation or debt secured by the deed of trust a written statement of:
(I) That amount of payment required to make good the deficiency in performance or payment, avoid the exercise of the power of sale and reinstate the terms and conditions of the underlying obligation or debt existing before the deficiency in performance or payment, as of the date of the statement;
(II) The amount in default;
(III) The principal amount of the obligation or debt secured by the deed of trust;
(IV) The amount of accrued interest and late charges;
(V) A good faith estimate of all fees imposed in connection with the exercise of the power of sale; and
(VI) Contact information for obtaining the most current amounts due and the local or toll-free telephone number described in subparagraph (4).
(4) A local or toll-free telephone number that the obligor or borrower of the obligation or debt may call to receive the most current amounts due and a recitation of the information contained in the affidavit.
(5) The date and the recordation number or other unique designation of, and the name of each assignee under, each recorded assignment of the deed of trust. The information required to be stated in the affidavit pursuant to this subparagraph may be based on:
(I) The direct, personal knowledge of the affiant;
(II) The personal knowledge which the affiant acquired by a review of the business records of the beneficiary, the successor in interest of the beneficiary or the servicer of the obligation or debt secured by the deed of trust, which business records must meet the standards set forth in NRS 51.135;
(III) Information contained in the records of the recorder of the county in which the property is located; or
(IV) The title guaranty or title insurance issued by a title insurer or title agent authorized to do business in this State pursuant to chapter 692A of NRS.
2. The period provided in paragraph (a) of subsection 1 commences on the first day following the day upon which the notice of default and election to sell is recorded in the office of the county recorder of the county in which the property is located and a copy of the notice of default and election to sell is mailed by registered or certified mail, return receipt requested and with postage prepaid, to the grantor or to the person who holds the title of record on the date the notice of default and election to sell is recorded, at their respective addresses, if known, otherwise to the address of the trust property or, if authorized by the parties, delivered by electronic transmission. In addition to meeting the requirements set forth in subsection 1 and NRS 107.080, the notice of default and election must:
(a) If the property is subject to the requirements of NRS 107.400 to 107.560, inclusive, contain the declaration required by subsection 6 of NRS 107.510;
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(b) If, pursuant to NRS 107.130, an election has been made to use the expedited procedure for the exercise of the power of sale with respect to abandoned residential property, include the affidavit and certification required by subsection 6 of NRS 107.130; and
(c) Comply with the provisions of NRS 107.087.
3. In addition to providing notice pursuant to the requirements set forth in subsection 4 of NRS 107.080, the trustee, or other person authorized to make the sale under the terms of the deed of trust [or transfer in trust] with respect to a residential foreclosure, shall, after expiration of the applicable period specified in paragraph (d) of subsection 2 of NRS 107.080, following the recording of the notice of breach and election to sell, and before the making of the sale, comply with the provisions of NRS 107.087.
4. In addition to the grounds provided in paragraph (a) of subsection 5 of NRS 107.080, a sale made pursuant to this section must be declared void by any court of competent jurisdiction in the county where the sale took place if the trustee or other person authorized to make the sale does not substantially comply with any applicable provisions set forth in NRS 107.086 and 107.087, and the applicant otherwise complies with subsection 5 of NRS 107.080.
[5. As used in this section:
(a) Residential foreclosure means the sale of a single-family residence under a power of sale granted by this section. As used in this paragraph, single-family residence:
(1) Means a structure that is comprised of not more than four units.
(2) Does not include vacant land or any time share or other property regulated under chapter 119A of NRS.
(b) Trustee has the meaning ascribed in NRS 107.080.]
Sec. 11. NRS 107.085 is hereby amended to read as follows:
107.085 1. With regard to a [transfer in] deed of trust [of] for an estate in real property to secure the performance of an obligation or the payment of a debt, the provisions of this section apply to the exercise of a power of sale pursuant to NRS 107.080 only if:
(a) The deed of trust [agreement] becomes effective on or after October 1, 2003, and, on the date the deed of trust [agreement] is made, the deed of trust [agreement] is subject to the provisions of § 152 of the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1602(bb), and the regulations adopted by the Board of Governors of the Federal Reserve System pursuant thereto, including, without limitation, 12 C.F.R. § 226.32; or
(b) The deed of trust [agreement] concerns owner-occupied housing . [as defined in NRS 107.086.]
2. The trustee shall not exercise a power of sale pursuant to NRS 107.080 unless:
(a) In the manner required by subsection 3, not later than 60 days before the date of the sale, the trustee causes to be served upon the grantor or the person who holds the title of record a notice in the form described in subsection 3; and
(b) If an action is filed in a court of competent jurisdiction claiming an unfair lending practice in connection with the deed of trust , [agreement,] the date of the sale is not less than 30 days after the date the most recent such action is filed.
3. The notice described in subsection 2 must be:
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(a) Served upon the grantor or the person who holds the title of record:
(1) Except as otherwise provided in subparagraph (2), by personal service or, if personal service cannot be timely effected, in such other manner as a court determines is reasonably calculated to afford notice to the grantor or the person who holds the title of record; or
(2) If the deed of trust [agreement] concerns owner-occupied housing : [as defined in NRS 107.086:]
(I) By personal service;
(II) If the grantor or the person who holds the title of record is absent from his or her place of residence or from his or her usual place of business, by leaving a copy with a person of suitable age and discretion at either place and mailing a copy to the grantor or the person who holds the title of record at his or her place of residence or place of business; or
(III) If the place of residence or business cannot be ascertained, or a person of suitable age or discretion cannot be found there, by posting a copy in a conspicuous place on the trust property, delivering a copy to a person there residing if the person can be found and mailing a copy to the grantor or the person who holds the title of record at the place where the trust property is situated; and
(b) In substantially the following form, with the applicable telephone numbers and mailing addresses provided on the notice and, except as otherwise provided in subsection 4, a copy of the promissory note attached to the notice:
NOTICE
YOU ARE IN DANGER OF LOSING YOUR HOME!
Your home loan is being foreclosed. In not less than 60 days your home may be sold and you may be forced to move. For help, call:
Consumer Credit Counseling _______________
The Attorney General __________________
The Division of Mortgage Lending _____
The Division of Financial Institutions ________________
Legal Services ______________________
Your Lender ___________________
Nevada Fair Housing Center ________________
4. The trustee shall cause all social security numbers to be redacted from the copy of the promissory note before it is attached to the notice pursuant to paragraph (b) of subsection 3.
5. This section does not prohibit a judicial foreclosure.
6. As used in this section, unfair lending practice means an unfair lending practice described in NRS 598D.010 to 598D.150, inclusive.
Sec. 12. NRS 107.086 is hereby amended to read as follows:
107.086 1. Except as otherwise provided in this subsection and subsection 4 of NRS 107.0865, in addition to the requirements of NRS 107.085, the exercise of the power of sale pursuant to NRS 107.080 with respect to any deed of trust [agreement] which concerns owner-occupied housing is subject to the provisions of this section. The provisions of this section do not apply to the exercise of the power of sale if the notice of default and election to sell recorded pursuant to subsection 2 of NRS 107.080 includes an affidavit and a certification indicating that, pursuant to NRS 107.130, an election has been made to use the expedited procedure for the exercise of the power of sale with respect to abandoned residential property.
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includes an affidavit and a certification indicating that, pursuant to NRS 107.130, an election has been made to use the expedited procedure for the exercise of the power of sale with respect to abandoned residential property.
2. The trustee shall not exercise a power of sale pursuant to NRS 107.080 unless the trustee:
(a) Includes with the notice of default and election to sell which is mailed, or delivered by electronic transmission if authorized by the parties, to the grantor or the person who holds the title of record as required by subsection 3 of NRS 107.080:
(1) Contact information which the grantor or the person who holds the title of record may use to reach a person with authority to negotiate a loan modification on behalf of the beneficiary of the deed of trust;
(2) Contact information which the grantor or the person who holds the title of record may use to serve notice as required pursuant to subsection 3 if the grantor or person who holds the title does not elect to waive mediation;
(3) Contact information for at least one local housing counseling agency approved by the United States Department of Housing and Urban Development;
(4) A notice provided by Home Means Nevada, Inc., or its successor organization, indicating that the grantor or the person who holds the title of record may petition the district court to participate in mediation pursuant to this section if he or she files such a petition, pays a $25 filing fee, serves a copy of the petition upon the beneficiary of the deed, Home Means Nevada, Inc., or its successor organization, and the trustee by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, and pays to the district court his or her share of the fee established pursuant to subsection 12; and
(5) A form upon which the grantor or the person who holds the title of record may indicate an election to waive mediation pursuant to this section and one envelope addressed to the trustee and one envelope addressed to Home Means Nevada, Inc., or its successor organization, which the grantor or the person who holds the title of record may use to comply with the provisions of subsection 3;
(b) In addition to including the information described in paragraph (a) with the notice of default and election to sell which is mailed or delivered by electronic transmission, as applicable, to the grantor or the person who holds the title of record as required by subsection 3 of NRS 107.080, provides to the grantor or the person who holds the title of record the information described in paragraph (a) concurrently with, but separately from, the notice of default and election to sell which is mailed or delivered by electronic transmission, as applicable, to the grantor or the person who holds the title of record as required by subsection 3 of NRS 107.080;
(c) Serves a copy of the notice upon Home Means Nevada, Inc., or its successor organization;
(d) If the owner-occupied housing is located within a common-interest community, notifies the unit-owners association of the common-interest community, not later than 10 days after mailing or delivering by electronic transmission, as applicable, the copy of the notice of default and election to sell as required by subsection 3 of NRS 107.080, that the exercise of the power of sale is subject to the provisions of this section; and
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(e) Causes to be recorded in the office of the recorder of the county in which the trust property, or some part thereof, is situated:
(1) The certificate provided to the trustee by Home Means Nevada, Inc., or its successor organization, pursuant to subsection 4 or 7 which provides that no mediation is required in the matter; or
(2) The certificate provided to the trustee by Home Means Nevada, Inc., or its successor organization, pursuant to subsection 8 which provides that mediation has been completed in the matter.
3. If the grantor or the person who holds the title of record elects to waive mediation, he or she shall, not later than 30 days after service of the notice in the manner required by NRS 107.080, complete the form required by subparagraph (5) of paragraph (a) of subsection 2 and return the form to the trustee and Home Means Nevada, Inc., or its successor organization, by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission. If the grantor or the person who holds the title of record does not elect to waive mediation, he or she shall, not later than 30 days after the service of the notice in the manner required by NRS 107.080, petition the district court to participate in mediation pursuant to this section, at the time of filing such a petition, pay to the clerk of the court a fee of $25 and his or her share of the fee established pursuant to subsection 12. The grantor or the person who holds the title of record shall serve a copy of the petition, by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, upon the beneficiary of the deed of trust and Home Means Nevada, Inc., or its successor organization. Upon receipt of the copy of the petition, Home Means Nevada, Inc., or its successor organization, shall notify the trustee and every other person with an interest [as defined in NRS 107.090,] by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, of the petition of the grantor or person who holds the title of record to participate in mediation pursuant to this section. Upon receipt of a petition pursuant to this section, the district court shall assign the matter to a senior justice, judge, hearing master or other designee and schedule the matter for mediation. If the grantor or person who holds the title of record satisfies the requirements of this subsection to participate in mediation pursuant to this section, no further action may be taken to exercise the power of sale until the completion of the mediation.
4. If the grantor or the person who holds the title of record indicates on the form described in subparagraph (5) of paragraph (a) of subsection 2 an election to waive mediation, fails to petition the district court pursuant to subsection 3 or fails to pay to the district court his or her share of the fee established pursuant to subsection 12 as required by subsection 3, Home Means Nevada, Inc., or its successor organization, shall, not later than 60 days after Home Means Nevada, Inc., or its successor organization, receives the form indicating an election to waive mediation or 90 days after the service of the notice in the manner required by NRS 107.080, whichever is earlier, provide to the trustee a certificate which provides that no mediation is required in the matter.
5. Each mediation required by this section must be conducted by a senior justice, judge, hearing master or other designee pursuant to the rules adopted pursuant to subsection 12. The beneficiary of the deed of trust or a representative shall attend the mediation. The grantor or his or her representative, or the person who holds the title of record or his or her representative, shall attend the mediation.
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representative, shall attend the mediation. The beneficiary of the deed of trust shall bring to the mediation the original or a certified copy of the deed of trust, the mortgage note, each assignment of the deed of trust or mortgage note and any documents created in connection with a loan modification. If the beneficiary of the deed of trust is represented at the mediation by another person, that person must have authority to negotiate a loan modification on behalf of the beneficiary of the deed of trust or have access at all times during the mediation to a person with such authority.
6. If the beneficiary of the deed of trust or the representative fails to attend the mediation, fails to participate in the mediation in good faith or does not bring to the mediation each document required by subsection 5 or does not have the authority or access to a person with the authority required by subsection 5, the mediator shall prepare and submit to the district court a recommendation concerning the imposition of sanctions against the beneficiary of the deed of trust or the representative. The court may issue an order imposing such sanctions against the beneficiary of the deed of trust or the representative as the court determines appropriate, including, without limitation, requiring a loan modification in the manner determined proper by the court.
7. If the grantor or the person who holds the title of record is enrolled to participate in mediation pursuant to this section but fails to attend the mediation, the district court shall dismiss the petition. Home Means Nevada, Inc., or its successor organization, shall, not later than 30 days after the scheduled mediation, provide to the trustee a certificate which states that no mediation is required in the matter.
8. If the mediator determines that the parties, while acting in good faith, are not able to agree to a loan modification, the mediator shall prepare and submit to the district court a recommendation that the petition be dismissed. The court may dismiss the petition and if the petition is dismissed, transmit a copy of the order of dismissal to Home Means Nevada, Inc., or its successor organization. Home Means Nevada, Inc., or its successor organization, shall, not later than 30 days after receipt of such an order, provide to the trustee a certificate which provides that the mediation required by this section has been completed in the matter.
9. If the parties agree to a loan modification or settlement, the mediator shall notify the district court. Upon receipt of such notification, the court shall enter an order describing the terms of any loan modification or settlement agreement.
10. Upon receipt of the certificate provided to the trustee by Home Means Nevada, Inc., or its successor organization, pursuant to subsection 4, 7 or 8, if the property is located within a common-interest community, the trustee shall, not later than 10 days after receipt of the certificate, notify the unit-owners association of the existence of the certificate.
11. During the pendency of any mediation pursuant to this section, a units owner must continue to pay any obligation, other than any past due obligation.
12. The Supreme Court shall adopt rules necessary to carry out the provisions of this section. The rules must, without limitation, include provisions:
(a) Ensuring that mediations occur in an orderly and timely manner.
(b) Requiring each party to a mediation to provide such information as the mediator determines necessary.
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(c) Establishing procedures to protect the mediation process from abuse and to ensure that each party to the mediation acts in good faith.
(d) Establishing a total fee of not more than $500 that may be charged and collected by the district court for mediation services pursuant to this section and providing that the responsibility for payment of the fee must be shared equally by the parties to the mediation. On or before the first Monday of each month, the clerk of the district court shall pay over to the county treasurer an amount equal to $100 of each fee charged and collected pursuant to this paragraph. The county treasurer shall remit quarterly all such amounts turned over to the county treasurer to the State Controller for deposit to the Account for Foreclosure Mediation Assistance created by paragraph (b) of subsection 13 of NRS 107.080.
(e) Prescribing a form supplied by the district court to file a petition to participate in mediation pursuant to this section.
13. Except as otherwise provided in subsection 15, the provisions of this section do not apply if:
(a) The grantor or the person who holds the title of record has surrendered the property, as evidenced by a letter confirming the surrender or delivery of the keys to the property to the trustee, the beneficiary of the deed of trust or the mortgagee, or an authorized agent thereof; or
(b) A petition in bankruptcy has been filed with respect to the grantor or the person who holds the title of record under chapter 7, 11, 12 or 13 of Title 11 of the United States Code and the bankruptcy court has not entered an order closing or dismissing the case or granting relief from a stay of foreclosure.
14. A noncommercial lender is not excluded from the application of this section.
15. Each mediator who acts pursuant to this section in good faith and without gross negligence are immune from civil liability for those acts.
16. [Home Means Nevada, Inc., or its successor organization, shall, at least once each calendar quarter, submit to the Interim Finance Committee a report:
(a) Concerning the status of the Account for Foreclosure Mediation Assistance; and
(b) Any other information required by the Interim Finance Committee.
17. The Administrator of the Division of Internal Audits of the Office of Finance shall cause to be conducted, not less than annually, an audit of Home Means Nevada, Inc., or its successor organization.
18.] Home Means Nevada, Inc., or its successor organization, shall develop and maintain an Internet portal for a program of foreclosure mediation to streamline the process of foreclosure mediation. Home Means Nevada, Inc., or its successor organization shall:
(a) Make available on the Internet portal the option to receive by electronic transmission any notification required as part of the process of foreclosure mediation;
(b) Require authorization in writing from any party who wants to receive notification by electronic transmission; and
(c) Authorize notification by electronic transmission at each stage of the process of foreclosure mediation.
[19.] 17. Home Means Nevada, Inc., or its successor organization, shall, at least once each calendar year, submit to the Interim Finance Committee:
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(a) A report concerning the program of foreclosure mediation and the operational and financial status of Home Means Nevada, Inc., or its successor organization; and
(b) The annual audit and tax returns of Home Means Nevada, Inc., or its successor organization.
18. As used in this section:
(a) Common-interest community has the meaning ascribed to it in NRS 116.021.
(b) [Noncommercial lender means a lender which makes a loan secured by a deed of trust on owner-occupied housing and which is not a bank, financial institution or other entity regulated pursuant to title 55 or 56 of NRS.
(c)] Obligation has the meaning ascribed to it in NRS 116.310313.
[(d) Owner-occupied housing means housing that is occupied by an owner as the owners primary residence. The term does not include vacant land or any time share or other property regulated under chapter 119A of NRS.
(e)] (c) Unit-owners association has the meaning ascribed to it in NRS 116.011.
[(f)] (d) Units owner has the meaning ascribed to it in NRS 116.095.
Sec. 13. NRS 107.0865 is hereby amended to read as follows:
107.0865 1. A mortgagor under a mortgage secured by owner-occupied housing or a grantor or the person who holds the title of record with respect to any deed of trust [agreement] which concerns owner-occupied housing may initiate mediation to negotiate a loan modification under the mediation process set forth in NRS 107.086 if:
(a) A local housing counseling agency approved by the United States Department of Housing and Urban Development certifies that the mortgagor, grantor or person who holds the title of record:
(1) Has a documented financial hardship; and
(2) Is in imminent risk of default; and
(b) The mortgagor, grantor or person who holds the title of record:
(1) Files a petition with the district court indicating an election to enter into mediation pursuant to this section;
(2) At the time of filing such a petition, pays to the clerk of the court a fee of $25;
(3) Pays to the district court his or her share of the fee established pursuant to subsection 12 of NRS 107.086; and
(4) Serves a copy of the petition upon Home Means Nevada, Inc., or its successor organization, and the beneficiary of the deed of trust, by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission.
2. Upon receipt of a copy of a petition pursuant to subsection 1, Home Means Nevada, Inc., or its successor organization, shall notify the mortgage servicer, by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, of the petition of the mortgagor, grantor or person who holds the title of record to participate in mediation pursuant to this section. Upon receipt of a copy of a petition pursuant to subsection 1, the district court shall assign the matter to a senior justice, judge, hearing master or other designee and schedule the matter for mediation. Home Means Nevada, Inc., or its successor organization, shall notify every other person with an interest [as defined in NRS 107.090,] by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, of the petition of the mortgagor, grantor or person who holds the title of record to participate in mediation.
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requested or, if authorized by the parties, by electronic transmission, of the petition of the mortgagor, grantor or person who holds the title of record to participate in mediation.
3. Each mediation required by this section must be conducted in conformity with the requirements of subsections 5 and 6 of NRS 107.086.
4. If the mediator determines that the parties, while acting in good faith, are not able to agree to a loan modification, the mediator shall prepare and submit to the district court a recommendation that the petition be dismissed. The court may dismiss the petition and transmit a copy of the order of dismissal to Home Means Nevada, Inc., or its successor organization. Home Means Nevada, Inc., or its successor organization shall, not later than 30 days after receipt of the order of dismissal, provide to the mortgage servicer a certificate which provides that the mediation required by this section has been completed in the matter. If Home Means Nevada, Inc., or its successor organization, provides such a certificate, the requirement for mediation pursuant to NRS 107.086 is satisfied.
5. The certificate provided pursuant to subsection 4 must be in the same form as the certificate provided pursuant to subsection 8 of NRS 107.086, and may be recorded in the office of the county recorder in which the trust property, or some part thereof, is situated. The recording of the certificate in the office of the county recorder in which the trust property, or some part thereof, is situated shall be deemed to be the recording of the certificate required pursuant to subparagraph (2) of paragraph (e) of subsection 2 of NRS 107.086.
6. A noncommercial lender is not excluded from the application of this section.
7. Home Means Nevada, Inc., or its successor organization, and each mediator who acts pursuant to this section in good faith and without gross negligence are immune from civil liability for those acts.
8. As used in this section:
(a) Financial hardship means a documented event that would prevent the long-term payment of any debt relating to a mortgage or deed of trust secured by owner-occupied housing, including, without limitation:
(1) The death of the borrower or co-borrower;
(2) Serious illness;
(3) Divorce or separation; or
(4) Job loss or a reduction in pay.
(b) Imminent risk of default means the inability of a grantor or the person who holds the title of record to make his or her mortgage payment within the next 90 days.
[(c) Noncommercial lender has the meaning ascribed to it in NRS 107.086.
(d) Owner-occupied housing has the meaning ascribed to it in NRS 107.086.]
Sec. 14. NRS 107.087 is hereby amended to read as follows:
107.087 1. In addition to the requirements of NRS 107.080, if the sale of property is a residential foreclosure, a copy of the notice of default and election to sell and the notice of sale must:
(a) Be posted in a conspicuous place on the property not later than:
(1) For a notice of default and election to sell, 100 days before the date of sale; or
(2) For a notice of sale, 15 days before the date of sale; and
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(b) Include, without limitation:
(1) The physical address of the property; and
(2) The contact information of the trustee or the person conducting the foreclosure who is authorized to provide information relating to the foreclosure status of the property.
2. In addition to the requirements of NRS 107.084, the notices must not be defaced or removed until the transfer of title is recorded or the property becomes occupied after completion of the sale, whichever is earlier.
3. A separate notice must be posted in a conspicuous place on the property and mailed, with a certificate of mailing issued by the United States Postal Service or another mail delivery service, to any tenant or subtenant, if any, other than the grantor or the grantors successor in interest, in actual occupation of the premises not later than 15 days before the date of sale. The separate notice must be in substantially the following form:
NOTICE TO TENANTS OF THE PROPERTY
Foreclosure proceedings against this property have started, and a notice of sale of the property to the highest bidder has been issued.
You may either: (1) terminate your lease or rental agreement and move out; or (2) remain and possibly be subject to eviction proceedings under chapter 40 of the Nevada Revised Statutes. Any subtenants may also be subject to eviction proceedings.
Between now and the date of the sale, you may be evicted if you fail to pay rent or live up to your other obligations to the landlord.
After the date of the sale, you may be evicted if you fail to pay rent or live up to your other obligations to the successful bidder, in accordance with chapter 118A of the Nevada Revised Statutes.
Under the Nevada Revised Statutes eviction proceedings may begin against you after you have been given a notice to surrender.
If the property is sold and you pay rent by the week or another period of time that is shorter than 1 month, you should generally receive notice after not less than the number of days in that period of time.
If the property is sold and you pay rent by the month or any other period of time that is 1 month or longer, you should generally receive notice at least 60 days in advance.
Under Nevada Revised Statutes 40.280, notice must generally be served on you pursuant to chapter 40 of the Nevada Revised Statutes and may be served by:
(1) Delivering a copy to you personally in the presence of a witness, unless service is accomplished by a sheriff, constable or licensed process server, in which case the presence of a witness is not required;
(2) If you are absent from your place of residence or usual place of business, leaving a copy with a person of suitable age and discretion at either place and mailing a copy to you at your place of residence or business and to the place where the leased property is situated, if different; or
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discretion at either place and mailing a copy to you at your place of residence or business and to the place where the leased property is situated, if different; or
(3) If your place of residence or business cannot be ascertained, or a person of suitable age or discretion cannot be found there, posting a copy in a conspicuous place on the leased property and mailing a copy to you at the place where the leased property is situated.
If the property is sold and a landlord, successful bidder or subsequent purchaser files an eviction action against you in court, you will be served with a summons and complaint and have the opportunity to respond. Eviction actions may result in temporary evictions, permanent evictions, the awarding of damages pursuant to Nevada Revised Statutes 40.360 or some combination of those results.
Under the Justice Court Rules of Civil Procedure:
(1) You will be given at least 10 days to answer a summons and complaint;
(2) If you do not file an answer, an order evicting you by default may be obtained against you;
(3) A hearing regarding a temporary eviction may be called as soon as 11 days after you are served with the summons and complaint; and
(4) A hearing regarding a permanent eviction may be called as soon as 20 days after you are served with the summons and complaint.
4. The posting of a notice required by this section must be completed by a process server licensed pursuant to chapter 648 of NRS or any constable or sheriff of the county in which the property is located.
[5. As used in this section, residential foreclosure has the meaning ascribed to it in NRS 107.0805.]
Sec. 15. NRS 107.090 is hereby amended to read as follows:
107.090 1. [As used in this section, person with an interest means any person who has or claims any right, title or interest in, or lien or charge upon, the real property described in the deed of trust, as evidenced by any document or instrument recorded in the office of the county recorder of the county in which any part of the real property is situated.
2.] A person with an interest or any other person who is or may be held liable for any debt secured by a lien on the property desiring a copy of a notice of default or notice of sale under a deed of trust with power of sale upon real property may at any time after recordation of the deed of trust record in the office of the county recorder of the county in which any part of the real property is situated an acknowledged request for a copy of the notice of default or of sale. The request must state the name and address of the person requesting copies of the notices and identify the deed of trust by stating the names of the parties thereto, the date of recordation, and the book and page where it is recorded.
[3.] 2. The trustee or person authorized to record the notice of default shall, within 10 days after the notice of default is recorded and mailed pursuant to NRS 107.080, cause to be deposited in the United States mail an envelope, registered or certified, return receipt requested and with postage prepaid, containing a copy of the notice, addressed to:
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envelope, registered or certified, return receipt requested and with postage prepaid, containing a copy of the notice, addressed to:
(a) Each person who has recorded a request for a copy of the notice; and
(b) Each other person with an interest whose interest or claimed interest is subordinate to the deed of trust.
[4.] 3. The trustee or person authorized to make the sale shall, at least 20 days before the date of sale, cause to be deposited in the United States mail an envelope, registered or certified, return receipt requested and with postage prepaid, containing a copy of the notice of time and place of sale, addressed to each person described in subsection [3.] 2.
[5.] 4. An association may record in the office of the county recorder of the county in which a unit governed by the association is situated an acknowledged request for a copy of the deed upon sale of the unit pursuant to a deed of trust. A request recorded by an association must include, without limitation:
(a) A legal description of the unit or the assessors parcel number of the unit;
(b) The name and address of the association; and
(c) A statement that the request is made by an association.
[6.] 5. A request recorded by an association pursuant to subsection [5] 4 regarding a unit supersedes all previous requests recorded by the association pursuant to subsection [5] 4 regarding the unit.
[7.] 6. If a trustee or person authorized to record a notice of default records the notice of default for a unit regarding which an association has recorded a request pursuant to subsection [5,] 4, the trustee or authorized person shall mail to the association a copy of the deed upon the sale of the unit pursuant to a deed of trust within 15 days after the trustee records the deed upon the sale of the unit.
[8.] 7. No request recorded pursuant to the provisions of subsection [2] 1 or [5] 4 affects the title to real property, and failure to mail a copy of the deed upon the sale of the unit after a request is made by an association pursuant to subsection [5] 4 does not affect the title to real property.
[9. As used in this section:
(a) Association has the meaning ascribed to it in NRS 116.011.
(b) Unit has the meaning ascribed to it in NRS 116.093.]
Sec. 16. NRS 107.095 is hereby amended to read as follows:
107.095 1. The notice of default required by NRS 107.080 must also be sent by registered or certified mail, return receipt requested and with postage prepaid or, if authorized by the parties, by electronic transmission to each guarantor or surety of the debt. If the address of the guarantor or surety is unknown, the notice must be sent to the address of the trust property. Failure to give the notice, except as otherwise provided in subsection 3, releases the guarantor or surety from his or her obligation to the beneficiary, but does not affect the validity of a sale conducted pursuant to NRS 107.080 or the obligation of any guarantor or surety to whom the notice was properly given.
2. Failure to give the notice of default required by NRS 107.090, except as otherwise provided in subsection 3, releases the obligation to the beneficiary of any person who has complied with NRS 107.090 and who is or may otherwise be held liable for the debt or other obligation secured by the deed of trust, but such a failure does not affect the validity of a sale conducted pursuant to NRS 107.080 or the obligation of any person to whom the notice was properly given pursuant to this section or to NRS 107.080 or 107.090.
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conducted pursuant to NRS 107.080 or the obligation of any person to whom the notice was properly given pursuant to this section or to NRS 107.080 or 107.090.
3. A guarantor, surety or other obligor is not released pursuant to this section if:
(a) The required notice is given at least 15 days before the later of:
(1) The expiration of the 15- or 35-day period described in paragraph (a) of subsection 2 of NRS 107.080;
(2) In the case of any deed of trust [agreement] which concerns owner-occupied housing , [as defined in NRS 107.086,] the expiration of the period described in paragraph (a) of subsection 1 of NRS 107.0805; or
(3) Any extension of the applicable period by the beneficiary; or
(b) The notice is rescinded before the sale is advertised.
Sec. 17. NRS 107.130 is hereby amended to read as follows:
107.130 1. A beneficiary may elect to use an expedited procedure for the exercise of the trustees power of sale pursuant to NRS 107.080 if, after an investigation, the beneficiary:
(a) Determines that real property is abandoned residential property; and
(b) Receives from the applicable governmental entity a certification pursuant to subsection 4.
2. Each board of county commissioners of a county and each governing body of an incorporated city shall designate an agency or a contractor to inspect real property upon receipt of a request pursuant to paragraph (b) of subsection 3 and to provide certifications that real property is abandoned residential property pursuant to subsection 4.
3. If a beneficiary has a reasonable belief that real property may be abandoned residential property, the beneficiary or its agent:
(a) May enter the real property, but may not enter any dwelling or structure, to investigate whether the real property is abandoned residential property. Notwithstanding any other provision of law, a beneficiary and its agents who enter real property pursuant to this paragraph are not liable for trespass.
(b) May request a certification pursuant to subsection 4 from the agency or contractor designated by the applicable governmental entity pursuant to subsection 2.
4. Upon receipt of a request pursuant to paragraph (b) of subsection 3, the agency or contractor designated by the applicable governmental entity shall inspect the real property to determine the existence of two or more conditions pursuant to subparagraph (7) of paragraph (b) of subsection 1 of NRS 107.0795. The designee and any employees of the designee may enter the real property, but may not enter any dwelling or structure, to perform an inspection pursuant to this subsection, and the designee and any employees who enter real property pursuant to this subsection are not liable for any civil damages as a result of any act or omission, not amounting to gross negligence, or for trespass. If the designee or an employee of the designee determines that the real property is abandoned residential property, the designee shall serve a notice by first-class mail to the grantor or the successor in interest of the grantor and by posting the notice on the front door of the residence. The notice must provide that unless a lawful occupant of the real property contacts the designee within 30 days after service of the notice, the designee will issue a certification that the real property is abandoned residential property and that the beneficiary may use the certification to seek an expedited procedure for the exercise of the trustees power of sale.
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certification to seek an expedited procedure for the exercise of the trustees power of sale. If a grantor or the successor in interest of the grantor or a lawful occupant of the real property fails to contact the designee within 30 days after service of the notice, the designee shall provide to the beneficiary a certification that the real property is abandoned residential property. The certification required by this subsection must:
(a) Be signed and verified by the designee or the employee or employees of the designee who inspected the real property;
(b) State that, upon information and belief of the designee, after investigation by the designee or the employee or employees of the designee, the real property is abandoned residential property; and
(c) State the conditions or circumstances supporting the determination that the property is abandoned residential property. Documentary evidence in support of such conditions or circumstances must be attached to the certification.
5. For an inspection, service of notice and issuance of a certification pursuant to subsection 4, the agency or contractor designated pursuant to subsection 2 by the applicable governmental entity may charge and receive from the beneficiary a fee of not more than $300.
6. A beneficiary who elects to use an expedited procedure for the exercise of the trustees power of sale pursuant to NRS 107.080 must include, or cause to be included, with the notice of default and election to sell recorded pursuant to subsection 2 of NRS 107.080 an affidavit setting forth the facts supporting the determination that the real property is abandoned residential property and the certification provided to the beneficiary pursuant to subsection 4. The affidavit required by this subsection must:
(a) Be signed and verified by the beneficiary;
(b) State that, upon information and belief of the beneficiary after investigation by the beneficiary or its agent, the property is abandoned residential property; and
(c) State the conditions or circumstances supporting the determination that the property is abandoned residential property. Documentary evidence in support of such conditions or circumstances must be attached to the affidavit.
7. If the notice of default and election to sell recorded pursuant to subsection 2 of NRS 107.080 includes the affidavit and certification described in subsection 6, before the sale, the grantor or a successor in interest of the grantor may record in the office of the county recorder in the county where the real property is located an affidavit stating that the real property is not abandoned residential property, unless the grantor or the successor in interest of the grantor has surrendered the property as evidenced by a document signed by the grantor or successor confirming the surrender or by the delivery of the keys to the real property to the beneficiary. Upon the recording of such an affidavit:
(a) The grantor or the successor in interest must mail by registered or certified mail, return receipt requested, to the beneficiary and the trustee a copy of the affidavit; and
(b) The notice of default and election to sell and the affidavit and certification described in subsection 6 are deemed to be withdrawn.
8. If the notice of default and election to sell recorded pursuant to subsection 2 of NRS 107.080 includes the affidavit and certification described in subsection 6, the trustees sale of the abandoned residential property must be conducted within 6 months after the beneficiary received the certification.
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received the certification. If the trustees sale is not conducted within 6 months after the beneficiary received the certification:
(a) The notice of default and election to sell and the affidavit and certification described in subsection 6 are deemed to be withdrawn; and
(b) The beneficiary is liable to the grantor or the successor in interest of the grantor for a civil penalty of not more than $500.
9. The period specified in subsection 8 is tolled:
(a) If a borrower has filed a case under 11 U.S.C. Chapter 7, 11, 12 or 13, until the bankruptcy court enters an order closing or dismissing the bankruptcy case or granting relief from a stay of the trustees sale.
(b) If a court issues a stay or enjoins the trustees sale, until the court issues an order granting relief from the stay or dissolving the injunction.
10. As used in this section [:
(a) Applicable] , applicable governmental entity means:
[(1)] (a) If the real property is within the boundaries of a city, the governing body of the city; and
[(2)] (b) If the real property is not within the boundaries of a city, the board of county commissioners of the county in which the property is located.
[(b) Beneficiary means the beneficiary of the deed of trust or the successor in interest of the beneficiary or any person designated or authorized to act on behalf of the beneficiary or its successor in interest.]
Sec. 18. NRS 107.140 is hereby amended to read as follows:
107.140 [1.] No provision of the laws of this State may be construed to require a sale in lieu of a foreclosure sale to be an arms length transaction or to prohibit a sale in lieu of a foreclosure sale that is not an arms length transaction.
[2. As used in this section, sale in lieu of a foreclosure sale has the meaning ascribed to it in NRS 40.429.]
Sec. 19. NRS 107.420 is hereby amended to read as follows:
107.420 Foreclosure prevention alternative means a modification of a loan secured by the most senior residential mortgage loan on the property or any other loss mitigation option. The term includes, without limitation, a sale in lieu of a foreclosure sale . [, as defined in NRS 40.429.]
Sec. 20. NRS 107.450 is hereby amended to read as follows:
107.450 Residential mortgage loan means a loan which is primarily for personal, family or household use and which is secured by a mortgage or deed of trust on owner-occupied housing . [as defined in NRS 107.086.]
Sec. 21. NRS 107.460 is hereby amended to read as follows:
107.460 The provisions of NRS 107.400 to 107.560, inclusive, do not apply to a financial institution, as defined in NRS 660.045, that, during its immediately preceding annual reporting period, as established with its primary regulator, has foreclosed on 100 or fewer real properties located in this State which constitute owner-occupied housing . [, as defined in NRS 107.086.]
Sec. 22. NRS 108.2405 is hereby amended to read as follows:
108.2405 1. The provisions of NRS 108.2403 and 108.2407 do not apply:
(a) In a county with a population of 700,000 or more with respect to a ground lessee who enters into a ground lease for real property which is designated for use or development by the county for commercial purposes which are compatible with the operation of the international airport for the county.
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designated for use or development by the county for commercial purposes which are compatible with the operation of the international airport for the county.
(b) If all owners of the property, individually or collectively, record a written notice of waiver of the owners rights set forth in NRS 108.234 with the county recorder of the county where the property is located before the commencement of construction of the work of improvement. Such a written notice of waiver may be with respect to one or more works of improvement as described in the written notice of waiver.
2. Each owner who records a notice of waiver pursuant to paragraph (b) of subsection 1 must serve such notice by certified mail, return receipt requested, upon [the] any prime contractor of the work of improvement and all other lien claimants who [may] give the owner a notice of right to lien pursuant to NRS 108.245, within 10 days after the owners receipt of a notice of right to lien or 10 days after the date on which the notice of waiver is recorded pursuant to this subsection.
3. As used in this section:
(a) Ground lease means a written agreement:
(1) To lease real property which, on the date on which the agreement is signed, does not include any existing buildings or improvements that may be occupied on the land; and
(2) That is entered into for a period of not less than 10 years, excluding any options to renew that may be included in any such lease.
(b) Ground lessee means a person who enters into a ground lease as a lessee with the county as record owner of the real property as the lessor.
Sec. 23. NRS 40.050 is hereby amended to read as follows:
40.050 A mortgage of real property shall not be deemed a conveyance, whatever its terms, so as to enable the owner of the mortgage to take possession of the real property [without a foreclosure and sale.] in the absence of a foreclosure sale or in accordance with NRS 32.100 to 32.370, inclusive, NRS 107.100 or chapter 107A of NRS.
Sec. 24. NRS 40.437 is hereby amended to read as follows:
40.437 1. An action pursuant to NRS 40.430 affecting owner-occupied housing that is commenced in a court of competent jurisdiction is subject to the provisions of this section.
2. In an action described in subsection 1:
(a) The copy of the complaint served on the mortgagor must include a separate document containing:
(1) Contact information which the mortgagor may use to reach a person with authority to negotiate a loan modification on behalf of the plaintiff;
(2) Contact information for at least one local housing counseling agency approved by the United States Department of Housing and Urban Development;
(3) A notice provided by Home Means Nevada, Inc., or its successor organization, indicating that the mortgagor may petition the court to participate in mediation pursuant to this section if he or she pays to the court his or her share of the fee established pursuant to subsection 12 of NRS 107.086; and
(4) A form upon which the mortgagor may indicate an election to enter into mediation or to waive mediation pursuant to this section and one envelope addressed to the plaintiff and one envelope addressed to Home
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Means Nevada, Inc., or its successor organization, which the mortgagor may use to comply with the provisions of subsection 3; and
(b) The plaintiff must submit a copy of the complaint to Home Means Nevada, Inc., or its successor organization.
3. If the mortgagor elects to waive mediation, he or she shall, not later than the date on which an answer to the complaint is due, complete the form required by subparagraph (4) of paragraph (a) of subsection 2 and file the form with the court and return a copy of the form to the plaintiff by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission. If the mortgagor does not elect to waive mediation, he or she shall, not later than the date on which an answer to the complaint is due, pay to the court his or her share of the fee established pursuant to subsection 12 of NRS 107.086. Upon receipt of the share of the fee established pursuant to subsection 12 of NRS 107.086 owed by the mortgagor, the court shall notify the plaintiff, by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, of the grant of the petition of the mortgagor to participate in mediation pursuant to this section and shall assign the matter to a senior justice, judge, hearing master or other designee and schedule the matter for mediation. Upon the plaintiffs receipt of such notice, the plaintiff shall notify any person with an interest as defined in NRS [107.090,] 107.015, by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, of the election of the mortgagor to participate in mediation. The judicial foreclosure action must be stayed until the completion of the mediation. If the mortgagor indicates on the form required by subparagraph (4) of paragraph (a) of subsection 2 of his or her election to waive mediation or fails to pay the court his or her share of the fee established pursuant to subsection 12 of NRS 107.086, as required by this subsection, no mediation is required in the action and the action pursuant to NRS 40.430 must proceed.
4. Each mediation required by this section must be conducted by a senior justice, judge, hearing master or other designee pursuant to the rules adopted pursuant to subsection 12 of NRS 107.086. The plaintiff or a representative, and the mortgagor or his or her representative, shall attend the mediation. If the plaintiff is represented at the mediation by another person, that person must have authority to negotiate a loan modification on behalf of the plaintiff or have access at all times during the mediation to a person with such authority.
5. If the plaintiff or the representative fails to attend the mediation, fails to participate in the mediation in good faith or does not have the authority or access to a person with the authority required by subsection 4, the mediator shall prepare and submit to the court a petition and recommendation concerning the imposition of sanctions against the plaintiff or the representative. The court may issue an order imposing such sanctions against the plaintiff or the representative as the court determines appropriate, including, without limitation, requiring a loan modification in the manner determined proper by the court.
6. If the mortgagor is enrolled to participate in mediation pursuant to this section but fails to attend the mediation, no mediation is required and the judicial foreclosure action must proceed as if the mortgagor had elected to waive mediation.
7. If the mediator determines that the parties, while acting in good faith, are not able to agree to a loan modification, the mediator shall prepare and submit to the court a recommendation that the mediation be terminated.
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submit to the court a recommendation that the mediation be terminated. The court may terminate the mediation and proceed with the judicial foreclosure action.
8. The rules adopted by the Supreme Court pursuant to subsection 12 of NRS 107.086 apply to a mediation conducted pursuant to this section, and the Supreme Court may adopt any additional rules necessary to carry out the provisions of this section.
9. Except as otherwise provided in subsection 11, the provisions of this section do not apply if:
(a) The mortgagor has surrendered the property, as evidenced by a letter confirming the surrender or delivery of the keys to the property to the trustee, the beneficiary of the deed of trust or the mortgagee, or an authorized agent thereof; or
(b) A petition in bankruptcy has been filed with respect to the defendant under 11 U.S.C. Chapter 7, 11, 12 or 13 and the bankruptcy court has not entered an order closing or dismissing the case or granting relief from a stay of foreclosure.
10. A noncommercial lender is not excluded from the application of this section.
11. Each mediator who acts pursuant to this section in good faith and without gross negligence is immune from civil liability for those acts.
12. As used in this section:
(a) Mortgagor includes the grantor of a deed of trust or the person who holds the title of record to the real property.
(b) Noncommercial lender has the meaning ascribed to it in NRS [107.086.] 107.015.
(c) Owner-occupied housing has the meaning ascribed to it in NRS [107.086.] 107.015.
Sec. 25. NRS 40.512 is hereby amended to read as follows:
40.512 1. If real collateral is environmentally impaired and the debtors obligation is in default, a secured lender may:
(a) Waive the secured lenders lien as to all of the real collateral and proceed as an unsecured creditor, including reduction of the secured lenders claim against the debtor to judgment and any other rights and remedies permitted by law; or
(b) Waive the secured lenders lien in accordance with paragraph (a) as to that part of the real collateral which is environmentally impaired and proceed against the unimpaired real collateral.
2. To waive the secured lenders lien against all or part of the environmentally impaired real collateral, the secured lender must, before commencement of any action, record with the county recorder of the county where the real collateral is located a notice of intent to waive the lien and mail a copy thereof, by registered or certified mail, return receipt requested, with postage prepaid, to the debtor, to the person who holds the title of record on the date of the notice, and to those persons with an interest, as defined in NRS [107.090,] 107.015, whose interest or claimed interest is subordinate to the secured lenders lien, at their respective addresses, if known, otherwise to the address of the real collateral. In the case of a partial waiver the notice of intent to waive may be contained in a notice of default and election to sell. The notice of intent to waive must contain:
κ2019 Statutes of Nevada, Page 1375 (CHAPTER 238, SB 382)κ
(a) A legal description of the environmentally impaired real collateral;
(b) A statement that the secured lender intends to proceed against the debtor under the applicable paragraph of subsection 1; and
(c) If the secured lender is proceeding under paragraph (b) of subsection 1, a statement that the secured lender will proceed against the unimpaired property, which may result in a judgment for deficiency against the debtor as a result of diminution in value of the collateral because of the exclusion of the environmentally impaired portion.
3. A secured lender may not waive the secured lenders lien as a result of any environmental impairment if the secured lender had actual knowledge of the environmental impairment at the time the lien was created. In determining whether a secured lender had such knowledge, the report of any person legally entitled to prepare the report with respect to the existence or absence of any environmental impairment is prima facie evidence of the existence or absence, as the case may be, of any environmental impairment.
4. A waiver made by a secured lender pursuant to this section is not final or conclusive until a final judgment, as defined in subsection 4 of NRS 40.435, has been obtained. If the waiver covers the full extent of the collateral, the secured lender shall immediately thereafter cause the secured lenders lien to be released by recording the waiver in the same manner as the lien was recorded.
Sec. 26. NRS 100.091 is hereby amended to read as follows:
100.091 1. For each loan requiring the deposit of money to an escrow account, loan trust account or other impound account for the payment of taxes, assessments, rental or leasehold payments, insurance premiums or other obligations related to the encumbered property, the lender shall:
(a) Require contributions in an amount reasonably necessary to pay the obligations as they become due.
(b) Unless money in the account is insufficient, pay in a timely manner the obligations as they become due.
(c) At least annually, analyze the account. The analysis of each account must be performed to determine whether sufficient money is contributed to the account on a monthly basis to pay for the projected disbursements from the account. At least 30 days before the effective date of any increased contribution to the account based on the analysis, a statement must be sent to the borrower showing the method of determining the amount of money held in the account, the amount of projected disbursements from the account and the amount of the reserves which may be held in accordance with federal guidelines.
2. If, upon completion of the analysis, it is determined that an account is not sufficiently funded to pay from the normal payment the items when due on the account, the lender shall offer the borrower the opportunity to correct the deficiency by making one lump-sum payment or by making increased monthly contributions, in an amount required by the lender. The lender shall not declare a default on the account solely because the borrower is unable to pay the amount of the deficiency in one lump sum.
3. Except for payments made by a borrower for a lender to recover previous deficiencies in contributions to the account pursuant to subsection 2, the borrower is entitled pursuant to subsection 4 to the amount by which the borrowers contributions to the account exceed the amount reasonably necessary to pay the annual obligations due from the account, together with interest thereon at the rate established pursuant to NRS 99.040.
κ2019 Statutes of Nevada, Page 1376 (CHAPTER 238, SB 382)κ
4. If, upon completion of the analysis, it is determined that the amount of money held by the lender in the account, together with anticipated future monthly contributions to the account to be credited to the account before the dates items are due on the account, exceed the amount of money required to pay the items when due, the lender shall, not later than 30 days after completion of its annual review of the account, notify the borrower:
(a) Of the amount by which the contributions and interest earned pursuant to subsection 3 exceed the amount reasonably necessary to pay the annual obligations due from the account; and
(b) That the borrower may, not later than 20 days after receipt of the notice, specify that the lender:
(1) Repay the excess money and interest promptly to the borrower;
(2) Apply the excess money and interest to the outstanding principal balance; or
(3) Retain the excess money and interest in the account.
5. If the borrower fails to specify the disposition of the excess money and interest as provided in paragraph (b) of subsection 4, the lender shall maintain the excess money and interest in the account.
6. If any payment on the loan is delinquent at the time of the analysis, the lender shall retain any excess money and interest in the account and apply the excess money and interest in the account toward payment of the delinquency.
7. A lender who violates any provision of subsections 4, 5 and 6 is liable to the borrower for a civil penalty of not more than $1,000.
8. The provisions of this section apply exclusively to:
(a) A loan secured by a single family residence, as that term is defined in NRS [107.0805;] 107.015; and
(b) A unit in a common-interest community that is used exclusively for residential use, as those terms are defined in chapter 116 of NRS.
9. As used in this section:
(a) Borrower means any person who receives a loan secured by real property and who is required to make advance contributions for the payment of taxes, insurance premiums or other expenses related to the property.
(b) Lender means any person who makes loans secured by real property and who requires advance contributions for the payment of taxes, insurance premiums or other expenses related to the property.
Sec. 27. NRS 111.312 is hereby amended to read as follows:
111.312 1. The county recorder shall not record with respect to real property, a notice of completion, a declaration of homestead, a lien or notice of lien, an affidavit of death, a mortgage or deed of trust, any conveyance of real property or instrument in writing setting forth an agreement to convey real property or a notice pursuant to NRS 111.3655 unless the document being recorded contains:
(a) The mailing address of the grantee or, if there is no grantee, the mailing address of the person who is requesting the recording of the document; and
(b) Except as otherwise provided in subsection 2, the assessors parcel number of the property at the top left corner of the first page of the document, if the county assessor has assigned a parcel number to the property. The parcel number must comply with the current system for numbering parcels used by the county assessors office.
κ2019 Statutes of Nevada, Page 1377 (CHAPTER 238, SB 382)κ
numbering parcels used by the county assessors office. The county recorder is not required to verify that the assessors parcel number is correct.
2. Any document relating exclusively to the transfer of water rights may be recorded without containing the assessors parcel number of the property.
3. The county recorder shall not record with respect to real property any deed, including, without limitation:
(a) A grant, bargain [or] and sale deed ; [of sale;]
(b) Quitclaim deed;
(c) Warranty deed; or
(d) Trustees deed upon sale,
Κ unless the document being recorded contains the name and address of the person to whom a statement of the taxes assessed on the real property is to be mailed.
4. The assessors parcel number shall not be deemed to be a complete legal description of the real property conveyed.
5. Except as otherwise provided in subsection 6, if a document that is being recorded includes a legal description of real property that is provided in metes and bounds, the document must include the name and mailing address of the person who prepared the legal description. The county recorder is not required to verify the accuracy of the name and mailing address of such a person.
6. If a document including the same legal description described in subsection 5 previously has been recorded, the document must include all information necessary to identify and locate the previous recording, but the name and mailing address of the person who prepared the legal description is not required for the document to be recorded. The county recorder is not required to verify the accuracy of the information concerning the previous recording.
Sec. 28. Chapter 116 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The provisions of this chapter do not apply to a planned community in which all units are restricted exclusively to nonresidential use unless the declaration provides that this chapter or a part of this chapter does apply to that planned community pursuant to this section.
2. This chapter applies to a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted only if the declaration so provides or if the real estate comprising the units that may be used for residential purposes would be a planned community in the absence of the units that may not be used for residential purposes.
3. The declaration for the nonresidential planned community may provide that:
(a) This entire chapter applies to the planned community;
(b) Only the provisions of NRS 116.001 to 116.2122, inclusive, and 116.3116 to 116.31168, inclusive, apply to the planned community; or
(c) Only the provisions of NRS 116.3116 to 116.31168, inclusive, apply to the planned community.
4. If this entire chapter applies to a nonresidential planned community pursuant to subsection 3, the declaration may also require, subject to NRS 116.1112, that:
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(a) Notwithstanding NRS 116.3105, any management, maintenance operations or employment contract, lease of recreational or parking areas or facilities and any other contract or lease between the association and a declarant or an affiliate of a declarant continues in force after the declarant turns over control of the association; and
(b) Notwithstanding NRS 116.1104 and subsection 3 of NRS 116.311, purchasers of units must execute proxies, powers of attorney or similar devices in favor of the declarant regarding particular matters enumerated in those instruments.
Sec. 29. NRS 116.1201 is hereby amended to read as follows:
116.1201 1. Except as otherwise provided in this section and NRS 116.1203, this chapter applies to all common-interest communities created within this State.
2. This chapter does not apply to:
(a) A limited-purpose association, except that a limited-purpose association:
(1) Shall pay the fees required pursuant to NRS 116.31155, except that if the limited-purpose association is created for a rural agricultural residential common-interest community, the limited-purpose association is not required to pay the fee unless the association intends to use the services of the Ombudsman;
(2) Shall register with the Ombudsman pursuant to NRS 116.31158;
(3) Shall comply with the provisions of:
(I) NRS 116.31038;
(II) NRS 116.31083 and 116.31152, unless the limited-purpose association is created for a rural agricultural residential common-interest community;
(III) NRS 116.31073, if the limited-purpose association is created for maintaining the landscape of the common elements of the common-interest community; and
(IV) NRS 116.31075, if the limited-purpose association is created for a rural agricultural residential common-interest community;
(4) Shall comply with the provisions of NRS 116.4101 to 116.412, inclusive, as required by the regulations adopted by the Commission pursuant to paragraph (b) of subsection 5; and
(5) Shall not enforce any restrictions concerning the use of units by the units owners, unless the limited-purpose association is created for a rural agricultural residential common-interest community.
(b) [A planned community in which all units are restricted exclusively to nonresidential use unless the declaration provides that this chapter or a part of this chapter does apply to that planned community pursuant to NRS 116.12075. This chapter applies to a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted only if the declaration so provides or if the real estate comprising the units that may be used for residential purposes would be a planned community in the absence of the units that may not be used for residential purposes.
(c)] Common-interest communities or units located outside of this State, but NRS 116.4102 and 116.4103, and, to the extent applicable, NRS 116.41035 to 116.4107, inclusive, apply to a contract for the disposition of a unit in that common-interest community signed in this State by any party unless exempt under subsection 2 of NRS 116.4101.
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[(d)] (c) A common-interest community that was created before January 1, 1992, is located in a county whose population is less than 55,000, and has less than 50 percent of the units within the community put to residential use, unless a majority of the units owners otherwise elect in writing.
[(e)] (d) Except as otherwise provided in this chapter, time shares governed by the provisions of chapter 119A of NRS.
3. The provisions of this chapter do not:
(a) Prohibit a common-interest community created before January 1, 1992, from providing for separate classes of voting for the units owners;
(b) Require a common-interest community created before January 1, 1992, to comply with the provisions of NRS 116.2101 to 116.2122, inclusive;
(c) Invalidate any assessments that were imposed on or before October 1, 1999, by a common-interest community created before January 1, 1992;
(d) Except as otherwise provided in subsection 8 of NRS 116.31105, prohibit a common-interest community created before January 1, 1992, or a common-interest community described in NRS 116.31105 from providing for a representative form of government, except that, in the election or removal of a member of the executive board, the voting rights of the units owners may not be exercised by delegates or representatives;
(e) Prohibit a master association which governs a time-share plan created pursuant to chapter 119A of NRS from providing for a representative form of government for the time-share plan; or
(f) Prohibit a master association which governs a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted and which is exempt from the provisions of this chapter pursuant to [paragraph (b) of] subsection 2 of section 28 of this act from providing for a representative form of government.
4. The provisions of chapters 117 and 278A of NRS do not apply to common-interest communities.
5. The Commission shall establish, by regulation:
(a) The criteria for determining whether an association, a limited-purpose association or a common-interest community satisfies the requirements for an exemption or limited exemption from any provision of this chapter; and
(b) The extent to which a limited-purpose association must comply with the provisions of NRS 116.4101 to 116.412, inclusive.
6. As used in this section, limited-purpose association means an association that:
(a) Is created for the limited purpose of maintaining:
(1) The landscape of the common elements of a common-interest community;
(2) Facilities for flood control; or
(3) A rural agricultural residential common-interest community; and
(b) Is not authorized by its governing documents to enforce any restrictions concerning the use of units by units owners, unless the limited-purpose association is created for a rural agricultural residential common-interest community.
Sec. 30. NRS 116.2117 is hereby amended to read as follows:
116.2117 1. Except as otherwise provided in NRS 116.21175, and except in cases of amendments that may be executed by a declarant under subsection 5 of NRS 116.2109 or NRS 116.211, or by the association under NRS 116.1107, 116.2106, subsection 3 of NRS 116.2108, subsection 1 of NRS 116.2112 or NRS 116.2113, or by certain units owners under subsection 2 of NRS 116.2108, subsection 1 of NRS 116.2112, subsection 2 of NRS
κ2019 Statutes of Nevada, Page 1380 (CHAPTER 238, SB 382)κ
subsection 5 of NRS 116.2109 or NRS 116.211, or by the association under NRS 116.1107, 116.2106, subsection 3 of NRS 116.2108, subsection 1 of NRS 116.2112 or NRS 116.2113, or by certain units owners under subsection 2 of NRS 116.2108, subsection 1 of NRS 116.2112, subsection 2 of NRS 116.2113 or subsection 2 of NRS 116.2118, and except as otherwise limited by subsections 4, 6, 7 and 8, the declaration, including any plats, may be amended only by vote or agreement of units owners of units to which at least a majority of the votes in the association are allocated, unless the declaration specifies a different percentage for all amendments or for specified subjects of amendment. If the declaration requires the approval of another person as a condition of its effectiveness, the amendment is not valid without that approval.
2. No action to challenge the validity of an amendment adopted by the association pursuant to this section may be brought more than 1 year after the amendment is recorded.
3. Every amendment to the declaration must be recorded in every county in which any portion of the common-interest community is located and is effective only upon recordation. An amendment, except an amendment pursuant to NRS 116.2112, must be indexed in the grantees index in the name of the common-interest community and the association and in the grantors index in the name of the parties executing the amendment.
4. Except to the extent expressly permitted or required by other provisions of this chapter, no amendment may change the boundaries of any unit [,] or change the allocated interests of a unit [or change the uses to which any unit is restricted,] in the absence of unanimous consent of only those units owners whose units are affected and the consent of a majority of the owners of the remaining units.
5. Amendments to the declaration required by this chapter to be recorded by the association must be prepared, executed, recorded and certified on behalf of the association by any officer of the association designated for that purpose or, in the absence of designation, by the president of the association.
6. An amendment to the declaration which prohibits or materially restricts the permitted uses of a unit or the number or other qualifications of persons who may occupy units may not be enforced against a units owner who was the owner of the unit on the date of the recordation of the amendment as long as the units owner remains the owner of that unit.
7. A provision in the declaration creating special declarants rights that have not expired may not be amended without the consent of the declarant.
8. If any provision of this chapter or of the declaration requires the consent of a holder of a security interest in a unit, or an insurer or guarantor of such interest, as a condition to the effectiveness of an amendment to the declaration, that consent is deemed granted if:
(a) The holder, insurer or guarantor has not requested, in writing, notice of any proposed amendment; or
(b) Notice of any proposed amendment is required or has been requested and a written refusal to consent is not received by the association within 60 days after the association delivers notice of the proposed amendment to the holder, insurer or guarantor, by certified mail, return receipt requested, to the address for notice provided by the holder, insurer or guarantor in a prior written request for notice.
κ2019 Statutes of Nevada, Page 1381 (CHAPTER 238, SB 382)κ
Sec. 30.5. NRS 116.31088 is hereby amended to read as follows:
116.31088 1. The association shall provide written notice to each units owner of a meeting at which the commencement of a civil action is to be considered at least 21 calendar days before the date of the meeting. Except as otherwise provided in this subsection, the association may commence a civil action only upon a vote or written agreement of the owners of units to which at least a majority of the votes of the members of the association are allocated. The provisions of this subsection do not apply to a civil action that is commenced:
(a) To enforce the payment of an assessment;
(b) To enforce the declaration, bylaws or rules of the association;
(c) To enforce a contract with a vendor;
(d) To proceed with a counterclaim; or
(e) To protect the health, safety and welfare of the members of the association. If a civil action is commenced pursuant to this paragraph without the required vote or agreement, the action must be ratified within 90 days after the commencement of the action by a vote or written agreement of the owners of the units to which at least a majority of votes of the members of the association are allocated. If the association, after making a good faith effort, cannot obtain the required vote or agreement to commence or ratify such a civil action, the association may thereafter seek to dismiss the action without prejudice for that reason only if a vote or written agreement of the owners of the units to which at least a majority of votes of the members of the association are allocated was obtained at the time the approval to commence or ratify the action was sought.
2. At least 10 days before an association commences or seeks to ratify the commencement of a civil action [,] on which the owners of units are entitled to vote pursuant to subsection 1, the association shall provide a written statement to all the units owners that includes:
(a) A reasonable estimate of the costs of the civil action, including reasonable attorneys fees;
(b) An explanation of the potential benefits of the civil action and the potential adverse consequences if the association does not commence the action or if the outcome of the action is not favorable to the association; and
(c) All disclosures that are required to be made upon the sale of the property.
3. No person other than a units owner may request the dismissal of a civil action commenced by the association on the ground that the association failed to comply with any provision of this section.
4. If any civil action in which the association is a party is settled, the executive board shall disclose the terms and conditions of the settlement at the next regularly scheduled meeting of the executive board after the settlement has been reached. The executive board may not approve a settlement which contains any terms and conditions that would prevent the executive board from complying with the provisions of this subsection.
Sec. 31. NRS 116.31168 is hereby amended to read as follows:
116.31168 1. A person with an interest or any other person who is or may be held liable for any amounts which are the subject of the associations lien pursuant to NRS 116.3116 or the servicer of a loan secured by a deed of trust or mortgage on real property which is subject to such lien desiring a copy of a notice of default and election to sell or notice of sale under the associations lien may record in the office of the county recorder of the county in which any part of the real property is situated an acknowledged request for a copy of the notice of default and election to sell or the notice of sale.
κ2019 Statutes of Nevada, Page 1382 (CHAPTER 238, SB 382)κ
county in which any part of the real property is situated an acknowledged request for a copy of the notice of default and election to sell or the notice of sale. The request must [:] state:
(a) [State the] The name and address of the person requesting copies of the notices;
(b) [State a] A legal description of the unit in which the person has an interest or the assessors parcel number of that unit; and
(c) The names of the units owner and the common-interest community.
2. The association or other person authorized to record the notice of default and election to sell shall, within 10 days after the notice is recorded and mailed pursuant to NRS 116.31162, cause to be deposited in the United States mail an envelope, registered or certified, return receipt requested and with postage prepaid, containing a copy of the notice, addressed to each person who has recorded a request for a copy of the notice.
3. The association or other person authorized to make the sale shall, at least 20 days before the date of sale, cause to be deposited in the United States mail an envelope, registered or certified, return receipt requested and with postage prepaid, containing a copy of the notice of time and place of sale, addressed to each person described in subsection 2.
4. As used in this section, person with an interest means any person who has or claims any right, title or interest in, or lien or charge upon, a unit being foreclosed pursuant to NRS 116.31162 to 116.31168, inclusive.
Sec. 32. NRS 657.110 is hereby amended to read as follows:
657.110 1. Each mortgagee or beneficiary of a deed of trust under a residential mortgage loan, including, without limitation, a bank, credit union, savings bank, savings and loan association, thrift company or other financial institution which is licensed, registered or otherwise authorized to do business in this State, shall provide to the Division of Financial Institutions the name, street address and any other contact information of a person to whom:
(a) A borrower or a representative of a borrower must send any document, record or notification necessary to facilitate a mediation conducted pursuant to NRS 40.437 or 107.086.
(b) A unit-owners association must send any notice required to be given pursuant to NRS 116.3116 to 116.31168, inclusive.
2. The Division of Financial Institutions shall maintain on its Internet website the information provided to the Division pursuant to subsection 1 and provide a prominent display of, or a link to, the information described in subsection 1, on the home page of its Internet website.
3. As used in this section:
(a) Borrower means a person who is a mortgagor or grantor of a deed of trust under a residential mortgage loan.
(b) Residential mortgage loan means a loan which is primarily for personal, family or household use and which is secured by a mortgage or deed of trust on owner-occupied housing as defined in NRS [107.086.] 107.015.
________
κ2019 Statutes of Nevada, Page 1383κ
Senate Bill No. 400Senators Goicoechea and Settelmeyer
CHAPTER 239
[Approved: May 29, 2019]
AN ACT relating to public livestock auctions; revising the amount of certain surety bonds required to be submitted to the Director of the State Department of Agriculture by an applicant for a license to operate a public livestock auction; revising certain requirements for an application to renew a license to operate a public livestock auction; requiring each holder of a license to operate a public livestock auction to submit to the Director an annual audit of the licensees custodial consignment account; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Under existing law, before the State Department of Agriculture may issue a license to an operator of a public livestock auction, the applicant for the license must deliver to the Director of the Department a: (1) surety bond; (2) bond approved by the Secretary of Agriculture of the United States; or (3) deposit receipt in lieu of a bond. (NRS 573.030) If the applicant delivers a surety bond to the Director, the amount of the surety bond must be $200,000 or more but less than $1,000,000. (NRS 573.033) Section 1.3 of this bill revises the required amount of the surety bond to be in the amount of $200,000 or the amount of bond coverage calculated for a market agency pursuant to certain federal regulations, whichever is greater. Sections 1, 1.5 and 2.5 of this bill make conforming changes.
Existing law requires each holder of a license to include a full audit with his or her application for renewal of a license to operate a public livestock auction. (NRS 573.080) Each holder of a license to operate a public livestock auction is also required to deposit the gross proceeds received by him or her from the sale of livestock handled on a commission or agency basis into a custodial account for consignors proceeds. (NRS 573.104) Section 1.7 of this bill removes the requirement for a licensee to submit a full audit with his or her application for renewal. Section 2 of this bill instead requires a licensee to submit to the Director an annual audit of the licensees custodial account for consignors proceeds, which must be performed by a certified public accountant.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 573.030 is hereby amended to read as follows:
573.030 Before a license is issued by the Department to an operator of a public livestock auction, the applicant must deliver to the Director:
1. A surety bond pursuant to the provisions of NRS 573.033; or
2. [A bond approved by the Secretary of Agriculture of the United States pursuant to the provisions of NRS 573.035; or
3.] A deposit receipt pursuant to the provisions of NRS 573.037.
Sec. 1.3. NRS 573.033 is hereby amended to read as follows:
573.033 1. If an applicant delivers a surety bond to the Director pursuant to the provisions of subsection 1 of NRS 573.030, the surety bond must be:
κ2019 Statutes of Nevada, Page 1384 (CHAPTER 239, SB 400)κ
(a) In the amount of $200,000 or [more but less than $1,000,000.] the amount of bond coverage calculated for a market agency pursuant to 9 C.F.R. § 201.30(a), whichever is greater.
(b) Executed by the applicant as principal and by a surety company qualified and authorized to do business in this state as surety.
(c) A standard form and approved by the Director as to terms and conditions.
(d) Conditioned that the principal will not commit any fraudulent act and will comply with the provisions of this chapter and the rules and regulations adopted by the Department.
(e) To the State of Nevada in favor of every consignor creditor whose livestock was handled or sold through or at the licensees public livestock auction.
2. The total and aggregate liability of the surety for all claims upon the bond must be limited to the face amount of the bond.
Sec. 1.5. NRS 573.037 is hereby amended to read as follows:
573.037 1. As authorized by subsection [3] 2 of NRS 573.030, in lieu of filing the bond described in NRS 573.033 , [or 573.035,] the applicant may deliver to the Director the receipt of a bank, credit union or trust company doing business in this state showing the deposit with that bank, credit union or trust company of cash or of securities endorsed in blank by the owner thereof and of a market value equal at least to the required principal amount of the bond, the cash or securities to be deposited in escrow under an agreement conditioned as in the case of a bond. A receipt must be accompanied by evidence that there are no unsatisfied judgments against the applicant of record in the county where the applicant resides.
2. An action for recovery against any such deposit may be brought in the same manner as in the case of an action for recovery on a bond filed under the provisions of this chapter.
3. If any licensed operator of a public livestock auction for any reason ceases to operate the auction, the amount of money or securities deposited in lieu of a bond must be retained by the Department for 1 year. If 1 year after the cessation of the operation, no legal action has been commenced to recover against the money or securities, the amount thereof must be delivered to the owner thereof. If a legal action has been commenced within that period, all such money and securities must be held by the Director subject to the order of a court of competent jurisdiction.
Sec. 1.7. NRS 573.080 is hereby amended to read as follows:
573.080 Licenses must be renewed annually upon like application and procedure as in the case of original licenses. An application for renewal must be accompanied by [:
1. A full audit completed not more than 2 months before the date of the application which must be signed and certified as correct by a holder of a live permit issued pursuant to chapter 628 of NRS.
2. The] the name and address of the bank or credit union where the custodial account for consignors proceeds will be established and maintained by the operator of the public livestock auction in compliance with the provisions of NRS 573.104.
κ2019 Statutes of Nevada, Page 1385 (CHAPTER 239, SB 400)κ
Sec. 2. NRS 573.104 is hereby amended to read as follows:
573.104 1. Each licensee shall deposit the gross proceeds received by him or her from the sale of livestock handled on a commission or agency basis in a separate account established and maintained by the licensee in the bank or credit union at which the licensees line of credit, as required by paragraph (g) of subsection 2 of NRS 573.020, is established. The separate account must be designated a custodial account for consignors proceeds.
2. The custodial account for consignors proceeds may be drawn on only:
(a) For the payment of net proceeds to the consignor, or any other person or persons of whom the licensee has knowledge who is entitled to those proceeds;
(b) To obtain the sums due the licensee as compensation for his or her services; and
(c) For such sums as are necessary to pay all legal charges against the consignment of livestock which the licensee in his or her capacity as agent is required to pay for and on behalf of the consignor.
3. The licensee shall:
(a) In each case keep such accounts and records that will at all times disclose the names of the consignors and the amount due to each from the money in the custodial account for consignors proceeds.
(b) Maintain the custodial account for consignors proceeds in a manner that will expedite examination by the Director and indicate compliance with the requirements of this section.
(c) On or before January 15 of each year, submit to the Director an annual audit of the licensees custodial account for consignors proceeds for the immediately preceding year, which must be performed by a certified public accountant. The certified public accountant:
(1) Must hold a permit issued pursuant to NRS 628.380; and
(2) May be provided by the Packers and Stockyards Division of the United States Department of Agriculture if he or she meets the requirements of subparagraph (1).
Sec. 2.5. NRS 573.035 is hereby repealed.
Sec. 3. This act becomes effective on July 1, 2019.
________
κ2019 Statutes of Nevada, Page 1386κ
Senate Bill No. 414Senator Kieckhefer
CHAPTER 240
[Approved: May 29, 2019]
AN ACT relating to education; increasing the number of recipients to whom Kenny C. Guinn Memorial Millennium Scholarships are awarded each year; revising the eligibility requirements for the scholarships; increasing the maximum annual amount of money that may be awarded to a recipient; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law requires the Board of Trustees of the College Savings Plans of Nevada to annually award the Kenny C. Guinn Memorial Millennium Scholarship to: (1) one recipient who is a student enrolled at the University of Nevada, Reno, Great Basin College, Sierra Nevada College or any other college or university designated by the Board as representative of northern Nevada; and (2) one recipient who is a student enrolled at the University of Nevada, Las Vegas, Nevada State College or any other college or university designated by the Board as representative of southern Nevada. (NRS 396.945) This bill increases from two to four the number of recipients to whom the Board is required to award the Memorial Scholarship each year. This bill also provides that two of the recipients must be enrolled in colleges or universities in northern Nevada or in nonprofit universities that award a bachelors degree in education to residents of northern Nevada and two of the recipients must be enrolled in colleges or universities in southern Nevada or in nonprofit universities that award a bachelors degree in education to residents of southern Nevada. This bill further revises student eligibility requirements by allowing a student who is enrolled at an academic institution that does not use a grade point system to measure academic performance to submit evidence to the Board that demonstrates a level of academic achievement commensurate to the 3.5 grade point average on a 4.0 grading scale that is required under existing law. This bill also increases from $4,500 to $5,000 the maximum amount that may be awarded annually to a recipient of the Memorial Scholarship.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 396.945 is hereby amended to read as follows:
396.945 1. The Board shall annually award the Memorial Scholarship to:
(a) [One recipient who is a student] Two recipients who are students enrolled at:
(1) The University of Nevada, Reno, Great Basin College or Sierra Nevada College; [or]
(2) A nonprofit university which awards a bachelors degree in education to residents of northern Nevada; or
(3) Any other college or university which awards a bachelors degree in education and which is designated by the Board as an institution representative of northern Nevada; and
(b) [One recipient who is a student] Two recipients who are students enrolled at:
κ2019 Statutes of Nevada, Page 1387 (CHAPTER 240, SB 414)κ
(1) The University of Nevada, Las Vegas, or Nevada State College; [or]
(2) A nonprofit university which awards a bachelors degree in education to residents of southern Nevada; or
(3) Any other college or university which awards a bachelors degree in education and which is designated by the Board as an institution representative of southern Nevada.
2. The Board shall establish additional criteria governing the annual selection of each recipient of the Memorial Scholarship, which must include, without limitation, a requirement that a recipient:
(a) Be in or entering his or her senior year at an academic institution described in subsection 1;
(b) [Be on the list of eligible students] Satisfy the eligibility requirements for a Millennium Scholarship [which is certified to the State Treasurer pursuant to NRS 396.934;] set forth in NRS 396.930;
(c) Have a college grade point average of not less than 3.5 on a 4.0 grading scale [;] or, if enrolled at an academic institution that does not use a grade point system to measure academic performance, present evidence acceptable to the Board that demonstrates a commensurate level of academic achievement;
(d) Have a declared major in elementary education or secondary education;
(e) Have a stated commitment to teaching in this State following graduation; and
(f) Have a [commendable] record of community service.
3. A student who satisfies the criteria established pursuant to this section may apply for a Memorial Scholarship by submitting an application to the Office of the State Treasurer on a form provided on the Internet website of the State Treasurer.
4. The State Treasurer shall forward all applications received pursuant to subsection 3 to the Board. The Board shall review and evaluate each application received from the State Treasurer and select each recipient of the Memorial Scholarship in accordance with the criteria established pursuant to this section.
5. To the extent of available money in the account established pursuant to NRS 396.940, the annual Memorial Scholarship may be awarded to each selected recipient in an amount not to exceed [$4,500] $5,000 to pay the educational expenses of the recipient for the school year which are authorized by subsection 6 and which are not otherwise paid for by the Millennium Scholarship awarded to the recipient.
6. A Memorial Scholarship must be used only:
(a) For the payment of registration fees and laboratory fees and expenses;
(b) To purchase required textbooks and course materials; and
(c) For other costs related to the attendance of the student at the academic institution in which he or she is enrolled.
7. As used in this section, Board means the Board of Trustees of the College Savings Plans of Nevada created by NRS 353B.005.
Sec. 2. This act becomes effective on July 1, 2019.
________
κ2019 Statutes of Nevada, Page 1388κ
Senate Bill No. 428Committee on Growth and Infrastructure
CHAPTER 241
[Approved: May 29, 2019]
AN ACT relating to parking; making it unlawful to park a vehicle in a parking space designated for electric vehicle charging unless the vehicle is being charged; providing a penalty; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Section 1 of this bill prohibits a person from parking a vehicle in a parking space designated for charging electric or hybrid electric vehicles unless the vehicle is being charged at the charging station. Such a parking space must be identified by appropriate markings or a sign to make this provision enforceable. A violation of this provision is punishable by a fine but is not a moving violation for purposes of the system of demerit points established pursuant to NRS 483.473. Additionally, existing law makes the vehicle of a person who violates certain parking restrictions subject to being towed under certain circumstances at the request of the owner of the real property where the parking space is located. (NRS 706.4477) This bill effectively includes the provisions of section 1 in such parking restrictions.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 484B of NRS is hereby amended by adding thereto a new section to read as follows:
1. A person shall not park a vehicle in a space designated for charging electric or hybrid electric vehicles by a sign or markings that meet the requirements of subsection 2, whether on public or privately owned property, if the vehicle is not connected to the charging station for the purpose of charging.
2. For the purpose of enforcing the provisions of subsection 1, a parking space designated for charging electric or hybrid electric vehicles must be indicated by a sign or markings that:
(a) Are consistent with the manual and specifications for a uniform system of traffic-control devices adopted pursuant to NRS 484A.430; and
(b) State Minimum fine of $100 for use by others or equivalent words.
3. A person who violates the provisions of subsection 1 shall be punished:
(a) Upon the first offense, by a fine of $100.
(b) Upon the second offense, by a fine of $200.
(c) Upon the third or subsequent offense, by a fine of not less than $400, but not more than $750.
4. A violation of this section is not a moving violation for the purposes of NRS 483.473.
________
κ2019 Statutes of Nevada, Page 1389κ
Senate Bill No. 429Committee on Growth and Infrastructure
CHAPTER 242
[Approved: May 29, 2019]
AN ACT relating to special license plates; revising provisions relating to renewal of special license plates available to holders of a license for an amateur radio station; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law provides for the issuance of special license plates to a person who holds an unrevoked and unexpired official amateur radio station license issued by the Federal Communications Commission. An applicant for renewal of such a special license plate may obtain a waiver of the $10 fee for a renewal sticker if the holder submits to the Department of Motor Vehicles a statement, signed under penalty of perjury, that the holder will assist in communications during local, state and federal emergencies. (NRS 482.375) This bill provides that the statement required for the renewal fee waiver must also state that the applicant is the holder of an unrevoked and unexpired official amateur radio station license, and that such a statement need only be submitted to the Department once. This bill also requires a holder of such special license plates to surrender the special license plates to the Department if the holder is no longer eligible for the special license plates.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 482.375 is hereby amended to read as follows:
482.375 1. An owner of a motor vehicle who is a resident of the State of Nevada and who holds an unrevoked and unexpired official amateur radio station license issued by the Federal Communications Commission, upon application accompanied by proof of ownership of that license, complying with the state motor vehicle laws relating to registration and licensing of motor vehicles, and upon the payment of the regular license fee for plates as prescribed by law, and the payment of an additional fee of $35, must be issued a license plate or plates, upon which in lieu of the numbers as prescribed by law must be inscribed the words RADIO AMATEUR and the official amateur radio call letters of the applicant as assigned by the Federal Communications Commission. The annual fee for a renewal sticker is $10 unless waived by the Department pursuant to subsection 2. The plate or plates may be used only on a private passenger car, trailer or travel trailer or on a noncommercial truck, except that such plates may not be used on a full trailer or semitrailer that is registered pursuant to subsection 3 of NRS 482.483.
2. The Department may waive the annual fee for a renewal sticker if the applicant for renewal:
(a) [Submits with the application for renewal] Has submitted to the Department a statement under penalty of perjury that the applicant is the holder of an unrevoked and unexpired official amateur radio station license as required pursuant to subsection 1 and will assist in communications during local, state and federal emergencies; and
κ2019 Statutes of Nevada, Page 1390 (CHAPTER 242, SB 429)κ
(b) Satisfies any other requirements established by the Department by regulation for such a waiver.
3. The cost of the die and modifications necessary for the issuance of a license plate pursuant to this section must be paid from private sources without any expense to the State of Nevada.
4. The Department may adopt regulations:
(a) To ensure compliance with all state license laws relating to the use and operation of a motor vehicle before issuance of the plates in lieu of the regular Nevada license plate or plates.
(b) Setting forth the requirements and procedure for obtaining a waiver of the annual fee for a renewal sticker [.] except that an applicant for the waiver must not be required to submit to the Department the statement required pursuant to paragraph (a) of subsection 2 more than once.
5. All applications for the plates authorized by this section must be made to the Department.
6. If, during a registration period, the holder of license plates issued pursuant to this section is no longer eligible to hold the license plates pursuant to subsection 1, he or she shall surrender any of those license plates in his or her possession to the Department and is entitled to receive regular Nevada license plates.
Sec. 2. This act becomes effective on July 1, 2019.
________
Senate Bill No. 436Committee on Judiciary
CHAPTER 243
[Approved: May 29, 2019]
AN ACT relating to professional entities; authorizing professional entities to provide professional services relating to the practice of chiropractic under certain circumstances; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law provides that a professional entity may be organized for the purpose of rendering only one specific type of professional service, except under certain circumstances. Existing law provides that one such exception is the formation of a professional entity composed of persons engaged in rendering more than one type of professional service for the provision of services relating to medicine, homeopathy, osteopathy and psychology. (NRS 89.050) Section 1 of this bill expands this exception to include services relating to the practice of chiropractic.
Existing law prohibits an owner of such a professional entity rendering professional services relating to medicine, homeopathy, osteopathy or psychology from engaging in certain conduct concerning the professional entity. (NRS 89.055) Section 2 of this bill prohibits a licensed person who renders any such professional service relating to medicine, homeopathy, osteopathy, chiropractic or psychology through the professional entity from: (1) rendering the professional service, if the service exceeds the scope of the persons licensed authority; and (2) influencing or interfering with the professional judgment of another licensed person who renders any such professional service through the same professional entity.
κ2019 Statutes of Nevada, Page 1391 (CHAPTER 243, SB 436)κ
EXPLANATION
Matter in bolded italics is
new; matter between brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 89.050 is hereby amended to read as follows:
89.050 1. Except as otherwise provided in subsection 2, a professional entity may be organized only for the purpose of rendering one specific type of professional service and may not engage in any business other than rendering the professional service for which it was organized and services reasonably related thereto, except that a professional entity may own real and personal property appropriate to its business and may invest its money in any form of real property, securities or any other type of investment.
2. A professional entity may be organized to render a professional service relating to:
(a) Architecture, interior design, residential design, engineering and landscape architecture, or any combination thereof, and may be composed of persons:
(1) Engaged in the practice of architecture as provided in chapter 623 of NRS;
(2) Practicing as a registered interior designer as provided in chapter 623 of NRS;
(3) Engaged in the practice of residential design as provided in chapter 623 of NRS;
(4) Engaged in the practice of landscape architecture as provided in chapter 623A of NRS; and
(5) Engaged in the practice of professional engineering as provided in chapter 625 of NRS.
(b) Medicine, homeopathy, osteopathy , chiropractic and psychology, or any combination thereof, and may be composed of persons engaged in the practice of:
(1) Medicine as provided in chapter 630 of NRS;
(2) Homeopathic medicine as provided in chapter 630A of NRS;
(3) Osteopathic medicine as provided in chapter 633 of NRS;
(4) Chiropractic as provided in chapter 634 of NRS; and
[(4)] (5) Psychology and licensed to provide services pursuant to chapter 641 of NRS.
Κ Such a professional entity may market and manage additional professional entities which are organized to render a professional service relating to medicine, homeopathy, osteopathy , chiropractic and psychology.
(c) Mental health services, and may be composed of the following persons, in any number and in any combination:
(1) Any psychologist who is licensed to practice in this State;
(2) Any social worker who holds a masters degree in social work and who is licensed by this State as a clinical social worker;
(3) Any registered nurse who is licensed to practice professional nursing in this State and who holds a masters degree in the field of psychiatric nursing;
(4) Any marriage and family therapist who is licensed by this State pursuant to chapter 641A of NRS; and
κ2019 Statutes of Nevada, Page 1392 (CHAPTER 243, SB 436)κ
(5) Any clinical professional counselor who is licensed by this State pursuant to chapter 641A of NRS.
Κ Such a professional entity may market and manage additional professional entities which are organized to render a professional service relating to mental health services pursuant to this paragraph.
3. A professional entity may render a professional service only through its officers, managers and employees who are licensed or otherwise authorized by law to render the professional service.
Sec. 2. NRS 89.055 is hereby amended to read as follows:
89.055 1. An owner of a professional entity organized pursuant to paragraph (b) of subsection 2 of NRS 89.050 shall not:
[1.] (a) Create a policy or contract, written or otherwise, to restrict or prohibit the good faith communication between a patient and a person licensed pursuant to chapter 630, 630A, 633 , 634 or 641 of NRS, concerning the patients medical records, health care, risks or benefits of such health care or treatment options.
[2.] (b) Influence or interfere with the professional judgment of a person licensed pursuant to chapter 630, 630A, 633 , 634 or 641 of NRS, including, without limitation, the professional judgment of such a person concerning:
[(a)] (1) The care of a patient;
[(b)] (2) The custodian of the medical records of a patient;
[(c)] (3) Employment decisions, including hiring or terminating an employee; or
[(d)] (4) Coding or billing procedures.
[3.] (c) Terminate a contract or refuse to renew a contract with a person licensed pursuant to chapter 630, 630A, 633 , 634 or 641 of NRS because the person:
[(a)] (1) Advocates on behalf of a patient in private or public;
[(b)] (2) Assists a patient in seeking reconsideration of a denial of coverage of health care services; or
[(c)] (3) Reports a violation of law to an appropriate authority.
[4.] (d) Require a person licensed pursuant to chapter 630, 630A, 633 , 634 or 641 of NRS to:
[(a)] (1) Provide professional services to a specified number of patients within a particular amount of time; or
[(b)] (2) Work a certain number of hours in a specified period of time.
[5.] (e) Require a person licensed pursuant to chapter 630, 630A, 633 , 634 or 641 of NRS to obtain the approval or review of a contract by a third party, including, without limitation, a provider of insurance.
2. A person licensed pursuant to chapter 630, 630A, 633, 634 or 641 of NRS who renders a professional service through a professional entity organized pursuant to paragraph (b) of subsection 2 of NRS 89.050 shall not:
(a) Render such a professional service if the service exceeds the scope of his or her licensed authority pursuant to chapter 630, 630A, 633, 634 or 641 of NRS; and
(b) Through the use of an agreement, directive, financial incentive or any other arrangement, influence or interfere with the professional judgment of another person licensed pursuant to chapter 630, 630A, 633, 634 or 641 of NRS who renders a professional service through the same professional entity.
________
κ2019 Statutes of Nevada, Page 1393κ
Senate Bill No. 447Committee on Revenue and Economic Development
CHAPTER 244
[Approved: May 29, 2019]
AN ACT relating to taxation; providing for an exemption from sales and use taxes for certain durable medical equipment, oxygen delivery equipment and mobility enhancing equipment; and providing other matters properly relating thereto.
Legislative Counsels Digest:
At the 2016 General Elections, the voters of this State approved Initiative Petition No. 4, which proposed to amend the Nevada Constitution to require the Legislature to provide by law for an exemption from sales and use taxes for certain durable medical equipment, oxygen delivery equipment and mobility enhancing equipment. The initiative petition was again approved by the voters at the 2018 General Election. Accordingly, Article 10, Section 3B of the Nevada Constitution was enacted to require the Legislature to provide for the exemption. This bill enacts the exemption from sales and use taxes for certain durable medical equipment, oxygen delivery equipment and mobility enhancing equipment.
Sections 2-4 of this bill define the terms durable medical equipment, mobility enhancing equipment and oxygen delivery equipment for the purpose of the exemption. Section 6 of this bill enacts the exemption for the sales and use taxes that are deposited into the State General Fund. Section 9 of this bill amends the Local School Support Tax Law to provide an identical exemption. Any amendment to the Local School Support Tax Law also applies to other sales and use taxes imposed under existing law. (NRS 354.705, 374A.020, 376A.060, 377.040, 377A.030, 377B.110 and 543.600 and various special and local acts) Section 12 of this bill provides that all these exemptions become effective on July 1, 2019.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 360B of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. 1. Durable medical equipment means equipment, including any repair and replacement parts therefor, which:
(a) Can withstand repeated use;
(b) Is primarily and customarily used to serve a medical purpose;
(c) Generally is not useful to a person in the absence of illness or injury; and
(d) Is not worn in or on the body.
2. The term includes, without limitation, abduction and orthotic pillows, anesthesia ventilators, bone growth stimulators, dialyzers, enteral feeding systems, drug infusion devices and kidney dialysis machines.
Sec. 3. 1. Mobility enhancing equipment means equipment, including any repair and replacement parts therefor, which:
(a) Is primarily and customarily used to provide or increase the ability to move from one place to another and which is appropriate for use either in a home or a motor vehicle;
(b) Is not generally used by persons with normal mobility; and
κ2019 Statutes of Nevada, Page 1394 (CHAPTER 244, SB 447)κ
(c) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a manufacturer of motor vehicles.
2. The term includes, without limitation, wheelchairs, walkers, canes, crutches, mobility enhancing car seats for children with disabilities and swivel seats for persons with disabilities.
Sec. 4. Oxygen delivery equipment means equipment, including any repair and replacement parts therefor, which is used to deliver oxygen or aerosolized medicine to a person. The term includes, without limitation, tanks and concentrators, ventilators, nebulizers, oral-nasal cannulas and continuous positive airway pressure (CPAP) machines.
Sec. 5. NRS 360B.400 is hereby amended to read as follows:
360B.400 In administering the provisions of this chapter and chapters 372 and 374 of NRS, and in carrying out the provisions of the Agreement, the Department shall construe the terms defined in NRS 360B.405 to 360B.495, inclusive, and sections 2, 3 and 4 of this act, unless the context otherwise requires, in the manner prescribed by those sections.
Sec. 6. Chapter 372 of NRS is hereby amended by adding thereto a new section to read as follows:
There are hereby exempted from the taxes imposed by this chapter the gross receipts from sales of, and the storage, use or other consumption of:
1. Durable medical equipment;
2. Mobility enhancing equipment; and
3. Oxygen delivery equipment,
Κ prescribed for human use by a licensed provider of health care acting within his or her scope of practice.
Sec. 7. NRS 372.195 is hereby amended to read as follows:
372.195 Every retailer maintaining a place of business in this State and making sales of tangible personal property for storage, use or other consumption in this State, not exempted under NRS 372.260 to 372.350, inclusive, and section 6 of this act, shall, at the time of making the sales or, if the storage, use or other consumption of the tangible personal property is not then taxable hereunder, at the time the storage, use or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the Tax Commission.
Sec. 8. NRS 372.260 is hereby amended to read as follows:
372.260 Exempted from the taxes imposed by this chapter, as used in NRS 372.260 to 372.350, inclusive, and section 6 of this act, means exempted from the computation of the amount of taxes imposed.
Sec. 9. Chapter 374 of NRS is hereby amended by adding thereto a new section to read as follows:
There are hereby exempted from the taxes imposed by this chapter the gross receipts from sales of, and the storage, use or other consumption of:
1. Durable medical equipment;
2. Mobility enhancing equipment; and
3. Oxygen delivery equipment,
Κ prescribed for human use by a licensed provider of health care acting within his or her scope of practice.
Sec. 10. NRS 374.200 is hereby amended to read as follows:
374.200 Every retailer maintaining a place of business in a county and making sales of tangible personal property for storage, use or other consumption in the county, not exempted under NRS 374.265 to 374.355, inclusive, and section 9 of this act, shall, at the time of making the sales or, if the storage, use or other consumption of the tangible personal property is not then taxable hereunder, at the time the storage, use or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the Department.
κ2019 Statutes of Nevada, Page 1395 (CHAPTER 244, SB 447)κ
if the storage, use or other consumption of the tangible personal property is not then taxable hereunder, at the time the storage, use or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the Department.
Sec. 11. NRS 374.265 is hereby amended to read as follows:
374.265 Exempted from the taxes imposed by this chapter, as used in NRS 374.265 to 374.355, inclusive, and section 9 of this act, means exempted from the computation of the amount of taxes imposed.
Sec. 12. This act becomes effective on July 1, 2019.
________
Senate Bill No. 451Committee on Education
CHAPTER 245
[Approved: May 29, 2019]
AN ACT relating to education; authorizing a charter contract for a charter school to be renewed for a variable length of time within a certain timeframe; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law requires a charter contract for a charter school be for a term of 6 years. (NRS 388A.270) Existing law also requires that when a charter contract is renewed, the renewal term is also for 6 years. (NRS 388A.285) Section 2 of this bill allows a charter contract to be renewed for a term of not less than 3 years but not more than 10 years. Section 1 of this bill makes a conforming change.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 388A.270 is hereby amended to read as follows:
388A.270 1. If the proposed sponsor of a charter school approves an application to form a charter school, it shall, before June 11, 2013, grant a written charter to the governing body of the charter school or, on or after June 11, 2013, negotiate, develop and execute a charter contract with the governing body of the charter school. A charter contract must be executed not later than 60 days before the charter school commences operation. The charter contract must be in writing and incorporate, without limitation:
(a) The performance framework for the charter school;
(b) A description of the administrative relationship between the sponsor of the charter school and the governing body of the charter school, including, without limitation, the rights and duties of the sponsor and the governing body; and
(c) Any pre-opening conditions which the sponsor has determined are necessary for the charter school to satisfy before the commencement of operation to ensure that the charter school meets all building, health, safety, insurance and other legal requirements.
2. The charter contract must be signed by a member of the governing body of the charter school and:
κ2019 Statutes of Nevada, Page 1396 (CHAPTER 245, SB 451)κ
(a) If the board of trustees of a school district is the sponsor of the charter school, the superintendent of schools of the school district;
(b) If the State Public Charter School Authority is the sponsor of the charter school, the Chair of the State Public Charter School Authority; or
(c) If a college or university within the Nevada System of Higher Education is the sponsor of the charter school, the president of the college or university.
3. Before the charter contract is executed, the sponsor of the charter school must approve the charter contract at a meeting of the sponsor held in accordance with chapter 241 of NRS.
4. The sponsor of the charter school shall, not later than 10 days after the execution of the charter contract, provide to the Department:
(a) Written notice of the charter contract and the date of execution; and
(b) A copy of the charter contract and any other documentation relevant to the charter contract.
5. If the board of trustees approves the application, the board of trustees shall be deemed the sponsor of the charter school.
6. If the State Public Charter School Authority approves the application:
(a) The State Public Charter School Authority shall be deemed the sponsor of the charter school.
(b) Neither the State of Nevada, the State Board, the State Public Charter School Authority nor the Department is an employer of the members of the governing body of the charter school or any of the employees of the charter school.
7. If a college or university within the Nevada System of Higher Education approves the application:
(a) That institution shall be deemed the sponsor of the charter school.
(b) Neither the State of Nevada, the State Board nor the Department is an employer of the members of the governing body of the charter school or any of the employees of the charter school.
8. [A] Except as otherwise provided in NRS 388A.285, a written charter or a charter contract, as applicable, must be for a term of 6 years. The term of the charter contract begins on the first day of operation of the charter school after the charter contract has been executed. The sponsor of the charter school may require, or the governing body of the charter school may request that the sponsor authorize, the charter school to delay commencement of operation for 1 school year.
Sec. 2. NRS 388A.285 is hereby amended to read as follows:
388A.285 1. On or before June 30 immediately preceding the final school year in which a charter school is authorized to operate pursuant to its charter contract, the sponsor of the charter school shall submit to the governing body of the charter school a written report summarizing the performance of the charter school and each facility that constitutes the charter school during the term of the charter contract, including, without limitation:
(a) A summary of the performance of the charter school based upon the terms of the charter contract and the requirements of this chapter;
(b) An identification of any deficiencies relating to the performance of the charter school which the sponsor has determined may result in nonrenewal of the charter contract if the deficiencies remain uncorrected;
κ2019 Statutes of Nevada, Page 1397 (CHAPTER 245, SB 451)κ
(c) Requirements for the application for renewal of the charter contract submitted to the sponsor pursuant to subsection 3; and
(d) The criteria that the sponsor will apply in making a determination on the application for renewal based upon the performance framework for the charter school and the requirements of this chapter. Such criteria must include, without limitation, the performance indicators, measures and metrics included in the performance framework.
2. The governing body of a charter school may submit a written response to the sponsor of the charter school concerning the performance report prepared by the sponsor pursuant to subsection 1, which may include any revisions or clarifications that the governing body seeks to make to the report.
3. If a charter school seeks to renew its charter contract, the governing body of the charter school shall submit an application for renewal to the sponsor of the charter school on or before October 15 of the final school year in which the charter school is authorized to operate pursuant to its charter contract. The application for renewal must include, without limitation:
(a) The requirements for the application identified by the sponsor in the performance report prepared by the sponsor pursuant to subsection 1;
(b) A description of the academic, financial and organizational vision and plans for the charter school for the next charter term;
(c) Any information or data that the governing body of the charter school determines supports the renewal of the charter contract in addition to the information contained in the performance report prepared by the sponsor pursuant to subsection 1 and any response submitted by the governing body pursuant to subsection 2; and
(d) A description of any improvements to the charter school already undertaken or planned.
4. The sponsor of a charter school shall consider the application for renewal of the charter contract at a meeting held in accordance with chapter 241 of NRS. The sponsor shall provide written notice to the governing body of the charter school concerning its determination on the application for renewal of the charter contract not more than 60 days after receipt of the application for renewal from the governing body. The determination of the sponsor must be based upon:
(a) The criteria of the sponsor for the renewal of charter contracts; and
(b) Evidence of the performance of the charter school during the term of the charter contract in accordance with the performance framework for the charter school.
5. The sponsor of the charter school shall:
(a) Make available to the governing body of the charter school the data used in making the renewal decision; and
(b) Post a report on the Internet website of the sponsor summarizing the decision of the sponsor on the application for renewal and the basis for its decision.
6. A charter contract may be renewed for a term of [6] not less than 3 years or more than 10 years.
Sec. 3. This act becomes effective on July 1, 2019.
________
κ2019 Statutes of Nevada, Page 1398κ
Senate Bill No. 456Committee on Health and Human Services
CHAPTER 246
[Approved: May 29, 2019]
AN ACT relating to hospitals; authorizing the admission of an advanced practice registered nurse to membership on the medical staff of a hospital; prohibiting a hospital from automatically granting or denying such admission for certain reasons; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law prohibits: (1) the automatic admission of a dentist to membership on the medical staff of a hospital; and (2) the denial of admission of a dentist to membership on the medical staff of a hospital solely because he or she is licensed as a dentist and not a physician. (NRS 449.192) Section 1 of this bill enacts a similar provision concerning advanced practice registered nurses. Specifically, section 1 affirmatively authorizes a hospital to grant admission on the membership of the medical staff of the hospital to an advanced practice registered nurse. Section 1 also prohibits the automatic admission of an advanced practice registered nurse to membership on the medical staff of a hospital or the automatic denial of such admission for the same reasons as currently apply to a dentist. Sections 2-8 of this bill make conforming changes.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
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 a new section to read as follows:
A hospital may admit an advanced practice registered nurse to membership on the medical staff of the hospital to perform any act authorized pursuant to NRS 632.237 that is within the scope of practice of the advanced practice registered nurse. A hospital shall not:
1. Automatically admit an advanced practice registered nurse to membership on the medical staff of the hospital solely because he or she is licensed as an advanced practice registered nurse in this State, is authorized pursuant to NRS 632.237 to perform certain functions or certain functions are within his or her scope of practice; or
2. Deny admission to membership on the medical staff of the hospital to an advanced practice registered nurse solely because he or she is licensed as an advanced practice registered nurse and not as a physician.
Sec. 2. NRS 449.029 is hereby amended to read as follows:
449.029 As used in NRS 449.029 to 449.240, inclusive, and section 1 of this act, unless the context otherwise requires, medical facility has the meaning ascribed to it in NRS 449.0151 and includes a program of hospice care described in NRS 449.196.
Sec. 3. NRS 449.0301 is hereby amended to read as follows:
449.0301 The provisions of NRS 449.029 to 449.2428, inclusive, and section 1 of this act do not apply to:
κ2019 Statutes of Nevada, Page 1399 (CHAPTER 246, SB 456)κ
1. Any facility conducted by and for the adherents of any church or religious denomination for the purpose of providing facilities for the care and treatment of the sick who depend solely upon spiritual means through prayer for healing in the practice of the religion of the church or denomination, except that such a facility shall comply with all regulations relative to sanitation and safety applicable to other facilities of a similar category.
2. Foster homes as defined in NRS 424.014.
3. Any medical facility, facility for the dependent or facility which is otherwise required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed that is operated and maintained by the United States Government or an agency thereof.
Sec. 4. NRS 449.0302 is hereby amended to read as follows:
449.0302 1. The Board shall adopt:
(a) Licensing standards for each class of medical facility or facility for the dependent covered by NRS 449.029 to 449.2428, inclusive, and section 1 of this act and for programs of hospice care.
(b) Regulations governing the licensing of such facilities and programs.
(c) Regulations governing the procedure and standards for granting an extension of the time for which a natural person may provide certain care in his or her home without being considered a residential facility for groups pursuant to NRS 449.017. The regulations must require that such grants are effective only if made in writing.
(d) Regulations establishing a procedure for the indemnification by the Division, from the amount of any surety bond or other obligation filed or deposited by a facility for refractive surgery pursuant to NRS 449.068 or 449.069, of a patient of the facility who has sustained any damages as a result of the bankruptcy of or any breach of contract by the facility.
(e) Any other regulations as it deems necessary or convenient to carry out the provisions of NRS 449.029 to 449.2428, inclusive [.] , and section 1 of this act.
2. The Board shall adopt separate regulations governing the licensing and operation of:
(a) Facilities for the care of adults during the day; and
(b) Residential facilities for groups,
Κ which provide care to persons with Alzheimers disease.
3. The Board shall adopt separate regulations for:
(a) The licensure of rural hospitals which take into consideration the unique problems of operating such a facility in a rural area.
(b) The licensure of facilities for refractive surgery which take into consideration the unique factors of operating such a facility.
(c) The licensure of mobile units which take into consideration the unique factors of operating a facility that is not in a fixed location.
4. The Board shall require that the practices and policies of each medical facility or facility for the dependent provide adequately for the protection of the health, safety and physical, moral and mental well-being of each person accommodated in the facility.
5. In addition to the training requirements prescribed pursuant to NRS 449.093, the Board shall establish minimum qualifications for administrators and employees of residential facilities for groups. In establishing the qualifications, the Board shall consider the related standards set by nationally recognized organizations which accredit such facilities.
κ2019 Statutes of Nevada, Page 1400 (CHAPTER 246, SB 456)κ
6. The Board shall adopt separate regulations regarding the assistance which may be given pursuant to NRS 453.375 and 454.213 to an ultimate user of controlled substances or dangerous drugs by employees of residential facilities for groups. The regulations must require at least the following conditions before such assistance may be given:
(a) The ultimate users physical and mental condition is stable and is following a predictable course.
(b) The amount of the medication prescribed is at a maintenance level and does not require a daily assessment.
(c) A written plan of care by a physician or registered nurse has been established that:
(1) Addresses possession and assistance in the administration of the medication; and
(2) Includes a plan, which has been prepared under the supervision of a registered nurse or licensed pharmacist, for emergency intervention if an adverse condition results.
(d) Except as otherwise authorized by the regulations adopted pursuant to NRS 449.0304, the prescribed medication is not administered by injection or intravenously.
(e) The employee has successfully completed training and examination approved by the Division regarding the authorized manner of assistance.
7. The Board shall adopt separate regulations governing the licensing and operation of residential facilities for groups which provide assisted living services. The Board shall not allow the licensing of a facility as a residential facility for groups which provides assisted living services and a residential facility for groups shall not claim that it provides assisted living services unless:
(a) Before authorizing a person to move into the facility, the facility makes a full written disclosure to the person regarding what services of personalized care will be available to the person and the amount that will be charged for those services throughout the residents stay at the facility.
(b) The residents of the facility reside in their own living units which:
(1) Except as otherwise provided in subsection 8, contain toilet facilities;
(2) Contain a sleeping area or bedroom; and
(3) Are shared with another occupant only upon consent of both occupants.
(c) The facility provides personalized care to the residents of the facility and the general approach to operating the facility incorporates these core principles:
(1) The facility is designed to create a residential environment that actively supports and promotes each residents quality of life and right to privacy;
(2) The facility is committed to offering high-quality supportive services that are developed by the facility in collaboration with the resident to meet the residents individual needs;
(3) The facility provides a variety of creative and innovative services that emphasize the particular needs of each individual resident and the residents personal choice of lifestyle;
(4) The operation of the facility and its interaction with its residents supports, to the maximum extent possible, each residents need for autonomy and the right to make decisions regarding his or her own life;
κ2019 Statutes of Nevada, Page 1401 (CHAPTER 246, SB 456)κ
(5) The operation of the facility is designed to foster a social climate that allows the resident to develop and maintain personal relationships with fellow residents and with persons in the general community;
(6) The facility is designed to minimize and is operated in a manner which minimizes the need for its residents to move out of the facility as their respective physical and mental conditions change over time; and
(7) The facility is operated in such a manner as to foster a culture that provides a high-quality environment for the residents, their families, the staff, any volunteers and the community at large.
8. The Division may grant an exception from the requirement of subparagraph (1) of paragraph (b) of subsection 7 to a facility which is licensed as a residential facility for groups on or before July 1, 2005, and which is authorized to have 10 or fewer beds and was originally constructed as a single-family dwelling if the Division finds that:
(a) Strict application of that requirement would result in economic hardship to the facility requesting the exception; and
(b) The exception, if granted, would not:
(1) Cause substantial detriment to the health or welfare of any resident of the facility;
(2) Result in more than two residents sharing a toilet facility; or
(3) Otherwise impair substantially the purpose of that requirement.
9. The Board shall, if it determines necessary, adopt regulations and requirements to ensure that each residential facility for groups and its staff are prepared to respond to an emergency, including, without limitation:
(a) The adoption of plans to respond to a natural disaster and other types of emergency situations, including, without limitation, an emergency involving fire;
(b) The adoption of plans to provide for the evacuation of a residential facility for groups in an emergency, including, without limitation, plans to ensure that nonambulatory patients may be evacuated;
(c) Educating the residents of residential facilities for groups concerning the plans adopted pursuant to paragraphs (a) and (b); and
(d) Posting the plans or a summary of the plans adopted pursuant to paragraphs (a) and (b) in a conspicuous place in each residential facility for groups.
10. The regulations governing the licensing and operation of facilities for transitional living for released offenders must provide for the licensure of at least three different types of facilities, including, without limitation:
(a) Facilities that only provide a housing and living environment;
(b) Facilities that provide or arrange for the provision of supportive services for residents of the facility to assist the residents with reintegration into the community, in addition to providing a housing and living environment; and
(c) Facilities that provide or arrange for the provision of alcohol and drug abuse programs, in addition to providing a housing and living environment and providing or arranging for the provision of other supportive services.
Κ The regulations must provide that if a facility was originally constructed as a single-family dwelling, the facility must not be authorized for more than eight beds.
11. As used in this section, living unit means an individual private accommodation designated for a resident within the facility.
κ2019 Statutes of Nevada, Page 1402 (CHAPTER 246, SB 456)κ
Sec. 5. NRS 449.160 is hereby amended to read as follows:
449.160 1. The Division may deny an application for a license or may suspend or revoke any license issued under the provisions of NRS 449.029 to 449.2428, inclusive, and section 1 of this act upon any of the following grounds:
(a) Violation by the applicant or the licensee of any of the provisions of NRS 439B.410 or 449.029 to 449.245, inclusive, and section 1 of this act, or of any other law of this State or of the standards, rules and regulations adopted thereunder.
(b) Aiding, abetting or permitting the commission of any illegal act.
(c) Conduct inimical to the public health, morals, welfare and safety of the people of the State of Nevada in the maintenance and operation of the premises for which a license is issued.
(d) Conduct or practice detrimental to the health or safety of the occupants or employees of the facility.
(e) Failure of the applicant to obtain written approval from the Director of the Department of Health and Human Services as required by NRS 439A.100 or as provided in any regulation adopted pursuant to NRS 449.001 to 449.430, inclusive, and section 1 of this act and 449.435 to 449.531, inclusive, and chapter 449A of NRS if such approval is required.
(f) Failure to comply with the provisions of NRS 449.2486.
2. In addition to the provisions of subsection 1, the Division may revoke a license to operate a facility for the dependent if, with respect to that facility, the licensee that operates the facility, or an agent or employee of the licensee:
(a) Is convicted of violating any of the provisions of NRS 202.470;
(b) Is ordered to but fails to abate a nuisance pursuant to NRS 244.360, 244.3603 or 268.4124; or
(c) Is ordered by the appropriate governmental agency to correct a violation of a building, safety or health code or regulation but fails to correct the violation.
3. The Division shall maintain a log of any complaints that it receives relating to activities for which the Division may revoke the license to operate a facility for the dependent pursuant to subsection 2. The Division shall provide to a facility for the care of adults during the day:
(a) A summary of a complaint against the facility if the investigation of the complaint by the Division either substantiates the complaint or is inconclusive;
(b) A report of any investigation conducted with respect to the complaint; and
(c) A report of any disciplinary action taken against the facility.
Κ The facility shall make the information available to the public pursuant to NRS 449.2486.
4. On or before February 1 of each odd-numbered year, the Division shall submit to the Director of the Legislative Counsel Bureau a written report setting forth, for the previous biennium:
(a) Any complaints included in the log maintained by the Division pursuant to subsection 3; and
(b) Any disciplinary actions taken by the Division pursuant to subsection 2.
κ2019 Statutes of Nevada, Page 1403 (CHAPTER 246, SB 456)κ
Sec. 6. NRS 449.163 is hereby amended to read as follows:
449.163 1. In addition to the payment of the amount required by NRS 449.0308, if a medical facility, facility for the dependent or facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed violates any provision related to its licensure, including any provision of NRS 439B.410 or 449.029 to 449.2428, inclusive, and section 1 of this act, or any condition, standard or regulation adopted by the Board, the Division, in accordance with the regulations adopted pursuant to NRS 449.165, may:
(a) Prohibit the facility from admitting any patient until it determines that the facility has corrected the violation;
(b) Limit the occupancy of the facility to the number of beds occupied when the violation occurred, until it determines that the facility has corrected the violation;
(c) If the license of the facility limits the occupancy of the facility and the facility has exceeded the approved occupancy, require the facility, at its own expense, to move patients to another facility that is licensed;
(d) Impose an administrative penalty of not more than $5,000 per day for each violation, together with interest thereon at a rate not to exceed 10 percent per annum; and
(e) Appoint temporary management to oversee the operation of the facility and to ensure the health and safety of the patients of the facility, until:
(1) It determines that the facility has corrected the violation and has management which is capable of ensuring continued compliance with the applicable statutes, conditions, standards and regulations; or
(2) Improvements are made to correct the violation.
2. If the facility fails to pay any administrative penalty imposed pursuant to paragraph (d) of subsection 1, the Division may:
(a) Suspend the license of the facility until the administrative penalty is paid; and
(b) Collect court costs, reasonable attorneys fees and other costs incurred to collect the administrative penalty.
3. The Division may require any facility that violates any provision of NRS 439B.410 or 449.029 to 449.2428, inclusive, and section 1 of this act or any condition, standard or regulation adopted by the Board to make any improvements necessary to correct the violation.
4. Any money collected as administrative penalties pursuant to paragraph (d) of subsection 1 must be accounted for separately and used to administer and carry out the provisions of NRS 449.001 to 449.430, inclusive, and section 1 of this act, 449.435 to 449.530, inclusive, and 449.760 and chapter 449A of NRS to protect the health, safety, well-being and property of the patients and residents of facilities in accordance with applicable state and federal standards or for any other purpose authorized by the Legislature.
Sec. 7. NRS 449.240 is hereby amended to read as follows:
449.240 The district attorney of the county in which the facility is located shall, upon application by the Division, institute and conduct the prosecution of any action for violation of any provisions of NRS 449.029 to 449.245, inclusive [.] , and section 1 of this act.
κ2019 Statutes of Nevada, Page 1404 (CHAPTER 246, SB 456)κ
Sec. 8. NRS 654.190 is hereby amended to read as follows:
654.190 1. The Board may, after notice and an opportunity for a hearing as required by law, impose an administrative fine of not more than $10,000 for each violation on, recover reasonable investigative fees and costs incurred from, suspend, revoke, deny the issuance or renewal of or place conditions on the license of, and place on probation or impose any combination of the foregoing on any licensee who:
(a) Is convicted of a felony relating to the practice of administering a nursing facility or residential facility or of any offense involving moral turpitude.
(b) Has obtained his or her license by the use of fraud or deceit.
(c) Violates any of the provisions of this chapter.
(d) Aids or abets any person in the violation of any of the provisions of NRS 449.029 to 449.2428, inclusive, and section 1 of this act, as those provisions pertain to a facility for skilled nursing, facility for intermediate care or residential facility for groups.
(e) Violates any regulation of the Board prescribing additional standards of conduct for licensees, including, without limitation, a code of ethics.
(f) Engages in conduct that violates the trust of a patient or resident or exploits the relationship between the licensee and the patient or resident for the financial or other gain of the licensee.
2. If a licensee requests a hearing pursuant to subsection 1, the Board shall give the licensee written notice of a hearing pursuant to NRS 233B.121 and 241.034. A licensee may waive, in writing, his or her right to attend the hearing.
3. The Board may compel the attendance of witnesses or the production of documents or objects by subpoena. The Board may adopt regulations that set forth a procedure pursuant to which the Chair of the Board may issue subpoenas on behalf of the Board. Any person who is subpoenaed pursuant to this subsection may request the Board to modify the terms of the subpoena or grant additional time for compliance.
4. An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.
5. The expiration of a license by operation of law or by order or decision of the Board or a court, or the voluntary surrender of a license, does not deprive the Board of jurisdiction to proceed with any investigation of, or action or disciplinary proceeding against, the licensee or to render a decision suspending or revoking the license.
________
κ2019 Statutes of Nevada, Page 1405κ
Senate Bill No. 465Committee on Government Affairs
CHAPTER 247
[Approved: May 29, 2019]
AN ACT relating to redevelopment; revising provisions governing the amount of the proceeds of certain taxes levied in a redevelopment area that must be allocated to the redevelopment agency and used for certain purposes related to redevelopment; and providing other matters properly relating thereto.
Legislative Counsels Digest:
The Community Redevelopment Law authorizes the city council, board of county commissioners or other legislative body of a city or county to declare the need for a redevelopment agency to function in the community. The Community Redevelopment Law grants a redevelopment agency certain powers and duties with regard to the elimination of blight in a redevelopment area in the community. (Chapter 279 of NRS)
Under existing law, the property taxes levied on taxable property located in a redevelopment area that exceed a certain amount are required to be allocated to the redevelopment agency to pay certain costs related to redevelopment in the redevelopment area. (NRS 279.676) This bill authorizes a redevelopment agency to adopt a resolution requiring that property taxes attributable to certain tax rates levied for the public schools in the county be allocated to the county school district such that the redevelopment agency would not receive any portion of the property taxes attributable to such tax rates.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 279.676 is hereby amended to read as follows:
279.676 1. Any redevelopment plan may contain a provision that taxes, if any, levied upon taxable property in the redevelopment area each year by or for the benefit of the State, any city, county, district or other public corporation, after the effective date of the ordinance approving the redevelopment plan, must be divided as follows:
(a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the redevelopment area as shown upon the assessment roll used in connection with the taxation of the property by the taxing agency, last equalized before the effective date of the ordinance, must be allocated to and when collected must be paid into the funds of the respective taxing agencies as taxes by or for such taxing agencies on all other property are paid. To allocate taxes levied by or for any taxing agency or agencies which did not include the territory in a redevelopment area on the effective date of the ordinance but to which the territory has been annexed or otherwise included after the effective date, the assessment roll of the county last equalized on the effective date of the ordinance must be used in determining the assessed valuation of the taxable property in the redevelopment area on the effective date. If property which was shown on the assessment roll used to determine the amount of taxes allocated to the taxing agencies is transferred to the State and becomes exempt from taxation, the assessed valuation of the exempt property as shown on the assessment roll last equalized before the date on which the property was transferred to the State must be subtracted from the assessed valuation used to determine the amount of revenue allocated to the taxing agencies.
κ2019 Statutes of Nevada, Page 1406 (CHAPTER 247, SB 465)κ
taxes allocated to the taxing agencies is transferred to the State and becomes exempt from taxation, the assessed valuation of the exempt property as shown on the assessment roll last equalized before the date on which the property was transferred to the State must be subtracted from the assessed valuation used to determine the amount of revenue allocated to the taxing agencies.
(b) Except as otherwise provided in paragraphs (c) , [and] (d) and (e) and NRS 540A.265, that portion of the levied taxes each year in excess of the amount set forth in paragraph (a) must be allocated to and when collected must be paid into a special fund of the redevelopment agency to pay the costs of redevelopment and to pay the principal of and interest on loans, money advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by the redevelopment agency to finance or refinance, in whole or in part, redevelopment. Unless the total assessed valuation of the taxable property in a redevelopment area exceeds the total assessed value of the taxable property in the redevelopment area as shown by:
(1) The assessment roll last equalized before the effective date of the ordinance approving the redevelopment plan; or
(2) The assessment roll last equalized before the effective date of an ordinance adopted pursuant to subsection 5,
Κ whichever occurs later, less the assessed valuation of any exempt property subtracted pursuant to paragraph (a), all of the taxes levied and collected upon the taxable property in the redevelopment area must be paid into the funds of the respective taxing agencies. When the redevelopment plan is terminated pursuant to the provisions of NRS 279.438 and 279.439 and all loans, advances and indebtedness, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the taxable property in the redevelopment area must be paid into the funds of the respective taxing agencies as taxes on all other property are paid.
(c) That portion of the taxes in excess of the amount set forth in paragraph (a) that is attributable to a tax rate levied by a taxing agency to produce revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness that was approved by the voters of the taxing agency on or after November 5, 1996, must be allocated to and when collected must be paid into the debt service fund of that taxing agency.
(d) That portion of the taxes in excess of the amount set forth in paragraph (a) that is attributable to a new or increased tax rate levied by a taxing agency and was approved by the voters of the taxing agency on or after November 5, 1996, must be allocated to and when collected must be paid into the appropriate fund of the taxing agency.
(e) If an agency has adopted a resolution pursuant to subsection 8, that portion of the taxes in excess of the amount set forth in paragraph (a) that is attributable to a tax rate levied by a taxing agency:
(1) Pursuant to NRS 387.3285 or 387.3287, if that rate was approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected paid into, the appropriate fund of that taxing agency.
(2) For the support of public schools within a county school district pursuant to NRS 387.195, must be allocated to, and when collected paid into, the appropriate fund of that taxing agency.
κ2019 Statutes of Nevada, Page 1407 (CHAPTER 247, SB 465)κ
2. Except as otherwise provided in subsection 3, in any fiscal year, the total revenue paid to a redevelopment agency must not exceed:
(a) In a county whose population is 100,000 or more or a city whose population is 150,000 or more, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 10 percent of the total assessed valuation of the municipality.
(b) In a county whose population is 30,000 or more but less than 100,000 or a city whose population is 25,000 or more but less than 150,000, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 15 percent of the total assessed valuation of the municipality.
(c) In a county whose population is less than 30,000 or a city whose population is less than 25,000, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 20 percent of the total assessed valuation of the municipality.
Κ If the revenue paid to a redevelopment agency must be limited pursuant to paragraph (a), (b) or (c) and the redevelopment agency has more than one redevelopment area, the redevelopment agency shall determine the allocation to each area. Any revenue which would be allocated to a redevelopment agency but for the provisions of this section must be paid into the funds of the respective taxing agencies.
3. The taxing agencies shall continue to pay to a redevelopment agency any amount which was being paid before July 1, 1987, and in anticipation of which the agency became obligated before July 1, 1987, to repay any bond, loan, money advanced or any other indebtedness, whether funded, refunded, assumed or otherwise incurred.
4. For the purposes of this section, the assessment roll last equalized before the effective date of the ordinance approving the redevelopment plan is the assessment roll in existence on March 15 immediately preceding the effective date of the ordinance.
5. If in any year the assessed value of the taxable property in a redevelopment area located in a city in a county whose population is 700,000 or more as shown by the assessment roll most recently equalized has decreased by 10 percent or more from the assessed value of the taxable property in the redevelopment area as shown by the assessment roll last equalized before the effective date of the ordinance approving the redevelopment plan, the redevelopment agency may adopt an ordinance which provides that the total assessed value of the taxable property in the redevelopment area for the purposes of paragraphs (a) and (b) of subsection 1 is the total assessed value of the taxable property in the redevelopment area as shown by the assessment roll last equalized before the effective date of the ordinance adopted pursuant to this subsection. A redevelopment agency may adopt an ordinance pursuant to this subsection only once, and the election to adopt such an ordinance is irrevocable.
6. An agency which adopts an ordinance pursuant to subsection 5 and which receives revenue pursuant to paragraph (b) of subsection 1 from taxes on the taxable property located in the redevelopment area affected by the ordinance shall set aside 18 percent of that revenue received on and after the effective date of the ordinance to:
(a) Increase, improve, preserve or enhance public educational facilities;
(b) Support public educational activities and programs; or
κ2019 Statutes of Nevada, Page 1408 (CHAPTER 247, SB 465)κ
(c) Increase, improve, preserve or enhance public educational facilities and support public educational activities and programs,
Κ which are located in or within 1 mile of the redevelopment area or which serve pupils who reside in or within 1 mile of the redevelopment area. For each fiscal year, the agency shall prepare a written report concerning the amount of money expended for the purposes set forth in this subsection and shall, on or before November 30 of each year, submit a copy of the report to the Director of the Legislative Counsel Bureau for transmittal to the Legislative Commission, if the report is received during an odd-numbered year, or to the next session of the Legislature, if the report is received during an even-numbered year.
7. The obligation of an agency pursuant to subsection 6 to set aside 18 percent of the revenue allocated to and received by the agency pursuant to paragraph (b) of subsection 1 from taxes on the taxable property located in the redevelopment area affected by the ordinance adopted by the agency pursuant to subsection 5 is subordinate to any existing obligations of the agency. As used in this subsection, existing obligations means the principal and interest, when due, on any bonds, notes or other indebtedness whether funded, refunded, assumed or otherwise incurred by an agency before the effective date of an ordinance adopted by the agency pursuant to subsection 5, to finance or refinance in whole or in part, the redevelopment of a redevelopment area. For the purposes of this subsection, obligations incurred by an agency on or after the effective date of an ordinance adopted by the agency pursuant to subsection 5 shall be deemed existing obligations if the net proceeds are used to refinance existing obligations of the agency.
8. An agency may adopt a resolution providing that the portion of the taxes in excess of the amount set forth in paragraph (a) of subsection 1 that is attributable to any tax rate levied by a taxing agency:
(a) Pursuant to NRS 387.3285 or 387.3287, if that rate was approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected paid into, the appropriate fund of that taxing agency.
(b) For the support of public schools within a county school district pursuant to NRS 387.195, must be allocated to, and when collected paid into, the appropriate fund of that taxing agency.
Sec. 2. The amendatory provisions of this act do not apply to the extent that the provisions would constitute an impairment of the rights of holders of bonds or similar obligations.
Sec. 3. This act becomes effective on July 1, 2019.
________
κ2019 Statutes of Nevada, Page 1409κ
Senate Bill No. 473Committee on Government Affairs
CHAPTER 248
[Approved: May 29, 2019]
AN ACT relating to affordable housing; revising certain definitions relating to affordable housing to establish a consistent definition of the term affordable housing across various provisions of existing law; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law contains numerous definitions of affordable housing. (NRS 244A.672, 268.515, 278.0105, 315.725) This bill applies a single definition of affordable housing to various provisions of existing law in order to establish a consistent definition of affordable housing throughout those provisions. For the purposes of certain provisions governing land use planning, existing law defines affordable housing to mean housing affordable for a family with a total gross income that does not exceed 80 percent of the median gross income for the county concerned based upon estimates of the United States Department of Housing and Urban Development of the most current median gross family income for the county. (NRS 278.0105)
Sections 2-4 and 6 of this bill revise that definition by establishing three tiers of affordable housing and defining affordable housing as housing that falls within any of the three tiers. Section 2 of this bill defines tier one affordable housing as housing for a household that has a total monthly gross household income that is equal to not more than 60 percent of the median monthly gross household income for the county in which the housing is located. Section 4 of this bill defines tier two affordable housing as housing for a household that has a total monthly gross household income that is equal to more than 60 percent but not more than 80 percent of the median monthly gross household income for the county in which the housing is located. Section 3 of this bill defines tier three affordable housing as housing for a household that has a total monthly gross household income that is equal to more than 80 percent but not more than 120 percent of the median monthly gross household income for the county in which the housing is located. Housing at all three tiers is required to cost a household with an income at the maximum amount for the tier not more than 30 percent of the total monthly gross household income of the household.
Sections 7-27 of this bill apply the revised definition of affordable housing to various provisions relating to housing. Sections 9 and 10 of this bill remove certain references to housing for low-income households and replace those references with references to the revised definition of affordable housing. Section 29 of this bill repeals a provision defining low-income household to conform to these changes. Section 28 of this bill authorizes cities and counties to use certain revenue to develop tier one affordable housing and tier two affordable housing.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 278 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. 1. Tier one affordable housing means housing for a household:
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(a) Which has a total monthly gross income that is equal to not more than 60 percent of the median monthly gross household income for the county in which the housing is located; and
(b) Which costs not more than 30 percent of the total monthly gross household income of a household whose income equals 60 percent of the median monthly gross household income for the county in which the housing is located, including the cost of utilities.
2. For purposes of this section, median gross household income must be determined based upon the estimates of the United States Department of Housing and Urban Development of the most current median gross family income for the county in which the housing is located.
Sec. 3. 1. Tier three affordable housing means housing for a household:
(a) Which has a total monthly gross income that is equal to more than 80 percent but not more than 120 percent of the median monthly gross household income for the county in which the housing is located; and
(b) Which costs not more than 30 percent of the total monthly gross household income of a household whose income equals 120 percent of the median monthly gross household income for the county in which the housing is located, including the cost of utilities.
2. For purposes of this section, median gross household income must be determined based upon the estimates of the United States Department of Housing and Urban Development of the most current median gross family income for the county in which the housing is located.
Sec. 4. 1. Tier two affordable housing means housing for a household:
(a) Which has a total monthly gross income that is equal to more than 60 percent but not more than 80 percent of the median monthly gross household income for the county in which the housing is located; and
(b) Which costs not more than 30 percent of the total monthly gross household income of a household whose income equals 80 percent of the median monthly gross household income for the county in which the housing is located, including the cost of utilities.
2. For purposes of this section, median gross household income must be determined based upon the estimates of the United States Department of Housing and Urban Development of the most current median gross family income for the county in which the housing is located.
Sec. 5. NRS 278.010 is hereby amended to read as follows:
278.010 As used in NRS 278.010 to 278.630, inclusive, and sections 2, 3 and 4 of this act, unless the context otherwise requires, the words and terms defined in NRS 278.0103 to 278.0195, inclusive, and sections 2, 3 and 4 of this act have the meanings ascribed to them in those sections.
Sec. 6. NRS 278.0105 is hereby amended to read as follows:
278.0105 Affordable housing means [housing affordable for a family with a total gross income that does not exceed 80 percent of the median gross income for the county concerned based upon the estimates of the United States Department of Housing and Urban Development of the most current median gross family income for the county.] tier one affordable housing, tier two affordable housing or tier three affordable housing.
Sec. 7. Chapter 279 of NRS is hereby amended by adding thereto a new section to read as follows:
Affordable housing has the meaning ascribed to it in NRS 278.0105.
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Sec. 8. NRS 279.384 is hereby amended to read as follows:
279.384 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 279.386 to 279.414, inclusive, and section 7 of this act have the meanings ascribed to them in those sections.
Sec. 9. NRS 279.425 is hereby amended to read as follows:
279.425 It is further found and declared that:
1. The provision of housing is a fundamental purpose of the Community Redevelopment Law and that a generally inadequate supply of decent, safe and sanitary affordable housing [available to low-income households] threatens the accomplishment of the primary purposes of the Community Redevelopment Law, including, without limitation, creating new employment opportunities, attracting new private investments of money in the area and creating physical, economic, social and environmental conditions to remove and prevent the recurrence of blight.
2. The provision and improvement of affordable housing [which can be rented or sold to families with low incomes and] which is inside or outside the boundaries of the redevelopment area can be of direct benefit to the redevelopment area in assisting the accomplishment of project objectives whether or not the redevelopment plan provides for affordable housing within the project area.
3. The provision of affordable housing by redevelopment agencies and the use of taxes allocated to the agency pursuant thereto is of statewide benefit and assistance to all local governmental agencies in the areas where affordable housing is provided.
Sec. 10. NRS 279.685 is hereby amended to read as follows:
279.685 1. Except as otherwise provided in this section or subsections 6 and 7 of NRS 279.676, an agency of a city whose population is 500,000 or more that receives revenue from taxes pursuant to paragraph (b) of subsection 1 of NRS 279.676 shall set aside:
(a) Not less than 15 percent of that revenue received on or before October 1, 1999, and 18 percent of that revenue received after October 1, 1999, but before October 1, 2011, to increase, improve and preserve the [number of dwelling units] amount of affordable housing in the community ; [for low-income households;]
(b) Not less than 18 percent of that revenue received on or after October 1, 2011, but before July 1, 2017, to:
(1) Increase, improve, preserve or enhance the operating viability of [dwelling units] affordable housing in the community ; [for low-income households;] and
(2) Improve existing public educational facilities located within a redevelopment area or within 1 mile of a redevelopment area; and
(c) Eighteen percent of that revenue received on or after July 1, 2017, but before March 6, 2031, to increase, improve, preserve or enhance the operating viability of [dwelling units] affordable housing in the community [for low-income households] and:
(1) Increase, improve, preserve or enhance public educational facilities;
(2) Support public educational activities and programs; or
(3) Increase, improve, preserve or enhance public educational facilities and support public educational activities and programs,
Κ which are located in or within 1 mile of a redevelopment area or which serve pupils who reside in or within 1 mile of a redevelopment area; and
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(d) Eighteen percent of that revenue received on or after March 6, 2031, to:
(1) Increase, improve, preserve or enhance public educational facilities;
(2) Support public educational activities and programs; or
(3) Increase, improve, preserve or enhance public educational facilities and support public educational activities and programs,
Κ described in paragraph (c).
2. For each fiscal year, the agency shall prepare a written report concerning the amount of money expended for the purposes set forth in paragraph (b), (c) or (d) of subsection 1, as applicable, and shall, on or before November 30 of each year, submit a copy of the report to the Director of the Legislative Counsel Bureau for transmittal to the Legislative Commission, if the report is received during an odd-numbered year, or to the next session of the Legislature, if the report is received during an even-numbered year.
3. The obligation of an agency to set aside not less than 15 percent of the revenue from taxes allocated to and received by the agency pursuant to paragraph (b) of subsection 1 of NRS 279.676 is subordinate to any existing obligations of the agency. As used in this subsection, existing obligations means the principal and interest, when due, on any bonds, notes or other indebtedness whether funded, refunded, assumed or otherwise incurred by the agency before July 1, 1993, to finance or refinance in whole or in part, the redevelopment of a redevelopment area. For the purposes of this subsection, obligations incurred by an agency after July 1, 1993, shall be deemed existing obligations if the net proceeds are used to refinance existing obligations of the agency.
4. The obligation of an agency to set aside an additional 3 percent of the revenue from taxes allocated to and received by the agency pursuant to paragraph (b) of subsection 1 of NRS 279.676 is subordinate to any existing obligations of the agency. As used in this subsection, existing obligations means the principal and interest, when due, on any bonds, notes or other indebtedness whether funded, refunded, assumed or otherwise incurred by the agency before October 1, 1999, to finance or refinance in whole or in part, the redevelopment of a redevelopment area. For the purposes of this subsection, obligations incurred by an agency after October 1, 1999, shall be deemed existing obligations if the net proceeds are used to refinance existing obligations of the agency.
5. From the revenue set aside by an agency pursuant to paragraph (b) or (c) of subsection 1, not more than 50 percent of that amount may be used to:
(a) Increase, improve, preserve or enhance the operating viability of [dwelling units] affordable housing in the community ; [for low-income households;] or
(b) Increase, improve, preserve or enhance public educational facilities, support public educational activities and programs or increase, improve, preserve or enhance public educational facilities and support public educational activities and programs which are located in or within 1 mile of a redevelopment area or which serve pupils who reside in or within 1 mile of a redevelopment area,
Κ unless the agency establishes that such an amount is insufficient to pay the cost of a project identified in the redevelopment plan for the redevelopment area.
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6. Except as otherwise provided in paragraphs (b), (c) and (d) of subsection 1 and subsection 5, the agency may expend or otherwise commit money for the purposes of subsection 1 outside the boundaries of the redevelopment area.
Sec. 11. NRS 279A.020 is hereby amended to read as follows:
279A.020 As used in this chapter, unless the context otherwise requires:
1. Affordable housing has the meaning ascribed to it in NRS 278.0105.
2. Agency means an agency of a county or city established or designated to administer a program.
[2.] 3. Fund means a revolving fund for loans for the rehabilitation of residential property.
[3.] 4. Governing body means the governing body of a county or city.
[4.] 5. Program means a program for the rehabilitation of residential neighborhoods established by a governing body pursuant to this chapter.
[5.] 6. Rehabilitation includes structural improvements, landscaping and any other measure to improve the appearance of property or maintain property in a decent, safe and sanitary condition.
Sec. 12. NRS 279A.040 is hereby amended to read as follows:
279A.040 1. An applicant for a loan for the rehabilitation of residential property must, at the time application is made:
(a) Be a natural person who:
(1) Is a resident of or an owner of residential property in the city or an unincorporated area of the county, as the case may be;
(2) Is a member of a household having a gross income of less than [80] 120 percent of the median gross income for households of the same size residing in the same county or city, as applicable, as that percentage is defined by the United States Department of Housing and Urban Development, or rents residential property to such households;
(3) Owns and resides on or rents for residential purposes only the property for which the loan is sought;
(4) Has the financial resources to repay the loan in accordance with the terms of the agreement;
(5) Has the ability to complete the rehabilitation within a reasonable time and maintain the property in a decent, safe and sanitary condition; and
(6) Meets such other requirements as are imposed by the governing body; or
(b) Be an organization that:
(1) Is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3) or 501(c)(4);
(2) Provides affordable housing to natural persons who meet the criteria set forth in subparagraphs (1) and (2) of paragraph (a); and
(3) Has the financial resources to repay the loan in accordance with the terms of the agreement.
2. Any residential property for which a loan for rehabilitation is sought must be:
(a) Entirely situated within the boundaries of the city or within an unincorporated area of the county, as the case may be;
(b) Capable of rehabilitation within reasonable limits; and
(c) Subject to not more than two encumbrances.
κ2019 Statutes of Nevada, Page 1414 (CHAPTER 248, SB 473)κ
Sec. 13. NRS 279B.020 is hereby amended to read as follows:
279B.020 As used in this chapter, unless the context otherwise requires:
1. Abandoned residential property means residential property which has been:
(a) Acquired by the governing body pursuant to the provisions of NRS 361.603 or subsection 3 of NRS 279B.100, or by a grant from the Federal Government, the state government or any political subdivision of the State;
(b) Declared to have been abandoned by the Federal Government, the state government or the governing body; and
(c) Determined by the governing body to be in need of rehabilitation because of its deteriorated, substandard or unsanitary condition.
2. Affordable housing has the meaning ascribed to it in NRS 278.0105.
3. Agency means an agency of a county or city established or designated to administer a program.
[3.] 4. Governing body means the governing body of a county or city.
[4.] 5. Program means a program for the rehabilitation of abandoned residential properties established by a governing body pursuant to this chapter.
[5.] 6. Rehabilitation includes structural improvements, landscaping and any other measure to improve the appearance of property or maintain property in a decent, safe and sanitary condition.
Sec. 14. NRS 279B.040 is hereby amended to read as follows:
279B.040 1. An applicant for rehabilitation of abandoned residential property must, at the time application is made:
(a) Be a natural person who:
(1) Is a resident of the city or an unincorporated area of the county, as the case may be;
(2) Is a member of a household having a gross income of less than [80] 120 percent of the median gross income for households of the same size residing in the same county or city, as applicable, as that percentage is defined by the United States Department of Housing and Urban Development;
(3) Intends to reside on the abandoned residential property for which the rehabilitation is sought;
(4) Has the financial resources to rehabilitate the abandoned residential property in accordance with the terms of the agreement;
(5) Has the ability to complete the rehabilitation within a reasonable time and maintain the property in a decent, safe and sanitary condition; and
(6) Meets such other requirements as are imposed by the governing body; or
(b) Be an organization that:
(1) Is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3) or 501(c)(4);
(2) Provides affordable housing to natural persons who meet the criteria set forth in subparagraphs (1) and (2) of paragraph (a); and
(3) Has the financial resources to rehabilitate the abandoned residential property in accordance with the terms of the agreement.
2. Any abandoned residential property for which an application for the rehabilitation is sought must be:
κ2019 Statutes of Nevada, Page 1415 (CHAPTER 248, SB 473)κ
(a) Entirely situated within the boundaries of the city or within an unincorporated area of the county, as the case may be;
(b) Capable of rehabilitation within reasonable limits; and
(c) Subject to not more than two encumbrances.
Sec. 15. NRS 118B.0105 is hereby amended to read as follows:
118B.0105 Account means the Account for [Low-Income] Affordable Housing created by NRS 319.500.
Sec. 16. NRS 232.860 is hereby amended to read as follows:
232.860 The Commission shall, within the limits of available money:
1. Study matters affecting the social and economic welfare and well-being of minorities residing in the State of Nevada;
2. Collect and disseminate information on activities, programs and essential services available to minorities in the State of Nevada;
3. Study the:
(a) Availability of employment for minorities in this State, and the manner in which minorities are employed;
(b) Manner in which minorities can be encouraged to start and manage their own businesses successfully; and
(c) Availability of affordable housing , as defined in NRS 278.0105, for minorities;
4. In cooperation with the Nevada Equal Rights Commission, act as a liaison to inform persons regarding:
(a) The laws of this State that prohibit discriminatory practices; and
(b) The procedures pursuant to which aggrieved persons may file complaints or otherwise take action to remedy such discriminatory practices;
5. To the extent practicable, strive to create networks within the business community between businesses that are owned by minorities and businesses that are not owned by minorities;
6. Advise the Governor on matters relating to minorities and of concern to minorities; and
7. Recommend proposed legislation to the Governor.
Sec. 17. NRS 244.189 is hereby amended to read as follows:
244.189 1. Except as otherwise provided in subsection 2 and in addition to any other powers authorized by specific statute, a board of county commissioners may exercise such powers and enact such ordinances, not in conflict with the provisions of NRS or other laws or regulations of this State, as the board determines are necessary and proper for:
(a) The development of affordable housing;
(b) The control and protection of animals;
(c) The rehabilitation of rental property in residential neighborhoods; and
(d) The rehabilitation of abandoned residential property.
2. The board of county commissioners shall not impose or increase a tax unless the tax or increase is otherwise authorized by specific statute.
3. The board of county commissioners may, in lieu of a criminal penalty, provide a civil penalty for a violation of an ordinance enacted pursuant to this section unless state law provides a criminal penalty for the same act or omission.
4. As used in this section, affordable housing has the meaning ascribed to it in NRS 278.0105.
κ2019 Statutes of Nevada, Page 1416 (CHAPTER 248, SB 473)κ
Sec. 18. NRS 244.287 is hereby amended to read as follows:
244.287 1. A nonprofit organization may submit to a board of county commissioners an application for conveyance of property that is owned by the county if the property was:
(a) Received by donation for the use and benefit of the county pursuant to NRS 244.270.
(b) Purchased by the county pursuant to NRS 244.275.
2. Before the board of county commissioners makes a determination on such an application for conveyance, it shall hold at least one public hearing on the application. Notice of the time, place and specific purpose of the hearing must be:
(a) Published at least once in a newspaper of general circulation in the county.
(b) Mailed to all owners of record of real property which is located not more than 300 feet from the property that is proposed for conveyance.
(c) Posted in a conspicuous place on the property that is proposed for conveyance.
Κ The hearing must be held not fewer than 10 days but not more than 40 days after the notice is published, mailed and posted in accordance with this subsection.
3. The board of county commissioners may approve such an application for conveyance if the nonprofit organization demonstrates to the satisfaction of the board that the organization or its assignee will use the property to develop affordable housing . [for families whose income at the time of application for such housing does not exceed 80 percent of the median gross income for families residing in the same county, as that percentage is defined by the United States Department of Housing and Urban Development.] If the board of county commissioners receives more than one application for conveyance of the property, the board must give priority to an application of a nonprofit organization that demonstrates to the satisfaction of the board that the organization or its assignee will use the property to develop affordable housing for persons who are disabled or elderly.
4. If the board of county commissioners approves an application for conveyance, it may convey the property to the nonprofit organization without consideration. Such a conveyance must not be in contravention of any condition in a gift or devise of the property to the county.
5. As a condition to the conveyance of the property pursuant to subsection 4, the board of county commissioners shall enter into an agreement with the nonprofit organization that requires the nonprofit organization or its assignee to use the property to provide affordable housing for at least 50 years. If the nonprofit organization or its assignee fails to use the property to provide affordable housing pursuant to the agreement, the board of county commissioners may take reasonable action to return the property to use as affordable housing, including, without limitation:
(a) Repossessing the property from the nonprofit organization or its assignee.
(b) Transferring ownership of the property from the nonprofit organization or its assignee to another person or governmental entity that will use the property to provide affordable housing.
6. The agreement required by subsection 5 must be recorded in the office of the county recorder of the county in which the property is located and must specify:
κ2019 Statutes of Nevada, Page 1417 (CHAPTER 248, SB 473)κ
(a) The number of years for which the nonprofit organization or its assignee must use the property to provide affordable housing; and
(b) The action that the board of county commissioners will take if the nonprofit organization or its assignee fails to use the property to provide affordable housing pursuant to the agreement.
7. A board of county commissioners that has conveyed property pursuant to subsection 4 shall:
(a) Prepare annually a list which includes a description of all property that was conveyed to a nonprofit organization pursuant to this section; and
(b) Include the list in the annual audit of the county which is conducted pursuant to NRS 354.624.
8. If, 5 years after the date of a conveyance pursuant to subsection 4, a nonprofit organization or its assignee has not commenced construction of affordable housing, or entered into such contracts as are necessary to commence the construction of affordable housing, the property that was conveyed automatically reverts to the county.
9. A board of county commissioners may subordinate the interest of the county in property conveyed pursuant to subsection 4 to a first or subsequent holder of a mortgage on that property to the extent the board deems necessary to promote investment in the construction of affordable housing.
10. As used in this section, unless the context otherwise requires [, nonprofit] :
(a) Affordable housing has the meaning ascribed to it in NRS 278.0105.
(b) Nonprofit organization means an organization that is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3).
Sec. 19. NRS 268.058 is hereby amended to read as follows:
268.058 1. A nonprofit organization may submit to the governing body of a city an application for conveyance of property that is owned by the city if the property was purchased or received by the city pursuant to NRS 268.008.
2. Before the governing body makes a determination on such an application for conveyance, it shall hold at least one public hearing on the application. Notice of the time, place and specific purpose of the hearing must be:
(a) Published at least once in a newspaper of general circulation in the city.
(b) Mailed to all owners of record of real property which is located not more than 300 feet from the property that is proposed for conveyance.
(c) Posted in a conspicuous place on the property that is proposed for conveyance.
Κ The hearing must be held not fewer than 10 days but not more than 40 days after the notice is published, mailed and posted in accordance with this subsection.
3. The governing body may approve such an application for conveyance if the nonprofit organization demonstrates to the satisfaction of the governing body that the organization or its assignee will use the property to develop affordable housing . [for families whose income at the time of application for such housing does not exceed 80 percent of the median gross income for families residing in the same city, as that percentage is defined by the United States Department of Housing and Urban Development.] If the governing body receives more than one application for conveyance of the property, the governing body must give priority to an application of a nonprofit organization that demonstrates to the satisfaction of the governing body that the organization or its assignee will use the property to develop affordable housing for persons who are disabled or elderly.
κ2019 Statutes of Nevada, Page 1418 (CHAPTER 248, SB 473)κ
property, the governing body must give priority to an application of a nonprofit organization that demonstrates to the satisfaction of the governing body that the organization or its assignee will use the property to develop affordable housing for persons who are disabled or elderly.
4. If the governing body approves an application for conveyance, it may convey the property to the nonprofit organization without consideration. Such a conveyance must not be in contravention of any condition in a gift or devise of the property to the city.
5. As a condition to the conveyance of the property pursuant to subsection 4, the governing body shall enter into an agreement with the nonprofit organization that requires the nonprofit organization or its assignee to use the property to provide affordable housing for at least 50 years. If the nonprofit organization or its assignee fails to use the property to provide affordable housing pursuant to the agreement, the governing body may take reasonable action to return the property to use as affordable housing, including, without limitation:
(a) Repossessing the property from the nonprofit organization or its assignee.
(b) Transferring ownership of the property from the nonprofit organization or its assignee to another person or governmental entity that will use the property to provide affordable housing.
6. The agreement required by subsection 5 must be recorded in the office of the county recorder of the county in which the property is located and must specify:
(a) The number of years for which the nonprofit organization or its assignee must use the property to provide affordable housing; and
(b) The action that the governing body will take if the nonprofit organization or its assignee fails to use the property to provide affordable housing pursuant to the agreement.
7. A governing body that has conveyed property pursuant to subsection 4 shall:
(a) Prepare annually a list which includes a description of all property conveyed to a nonprofit organization pursuant to this section; and
(b) Include the list in the annual audit of the city which is conducted pursuant to NRS 354.624.
8. If, 5 years after the date of a conveyance pursuant to subsection 4, a nonprofit organization or its assignee has not commenced construction of affordable housing, or entered into such contracts as are necessary to commence the construction of affordable housing, the property that was conveyed automatically reverts to the city.
9. A governing body may subordinate the interest of the city in property conveyed pursuant to subsection 4 to a first or subsequent holder of a mortgage on that property to the extent the governing body deems necessary to promote investment in the construction of affordable housing.
10. As used in this section, unless the context otherwise requires [, nonprofit] :
(a) Affordable housing has the meaning ascribed to it in NRS 278.0105.
(b) Nonprofit organization means an organization that is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3).
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Sec. 20. NRS 268.190 is hereby amended to read as follows:
268.190 Except as otherwise provided by law, the city planning commission may:
1. Recommend and advise the city council and all other public authorities concerning:
(a) The laying out, widening, extending, paving, parking and locating of streets, sidewalks and boulevards.
(b) The betterment of housing and sanitary conditions, and the establishment of zones or districts within which lots or buildings may be restricted to residential use, or from which the establishment, conduct or operation of certain business, manufacturing or other enterprises may be excluded, and limiting the height, area and bulk of buildings and structures therein.
2. Recommend to the city council and all other public authorities plans and regulations for the future growth, development and beautification of the municipality in respect to its public and private buildings and works, streets, parks, grounds and vacant lots, which must include for each city a population plan if required by NRS 278.170, a plan for the development of affordable housing and, for each city located in a county whose population is 700,000 or more, a plan to inventory and preserve historic neighborhoods. As used in this subsection, affordable housing has the meaning ascribed to it in NRS 278.0105.
3. Perform any other acts and things necessary or proper to carry out the provisions of NRS 268.110 to 268.220, inclusive, and in general to study and propose such measures as may be for the municipal welfare and in the interest of protecting the municipal areas natural resources from impairment.
Sec. 21. Chapter 319 of NRS is hereby amended by adding thereto a new section to read as follows:
Affordable housing has the meaning ascribed to it in NRS 278.0105.
Sec. 22. NRS 319.030 is hereby amended to read as follows:
319.030 As used in this chapter, the words and terms defined in NRS 319.040 to 319.135, inclusive, and section 21 of this act have the meanings ascribed to them in those sections.
Sec. 23. NRS 319.143 is hereby amended to read as follows:
319.143 1. The Division shall create and maintain a statewide low-income housing database.
2. The database must include, without limitation, the compilation and analysis of demographic, economic and housing data from a variety of sources that:
(a) Provides for an annual assessment of the affordable housing market at the city and county level, including data relating to housing units, age of housing, rental rates and rental vacancy rates, new home sales and resale of homes, new construction permits, mobile homes, lots available for mobile homes and conversions of multifamily condominiums;
(b) Addresses the housing needs of various population groups in Nevada, such as households that rent, homeowners, elderly households, veterans, persons with disabilities or special needs, homeless persons, recovering drug abusers, persons suffering from mental health ailments and victims of domestic violence, with each group distinguished to show the percentage of the population group at different income levels, and a determination of the number of households within each special-needs group experiencing housing costs greater than 50 percent of their income, overcrowding or substandard housing;
κ2019 Statutes of Nevada, Page 1420 (CHAPTER 248, SB 473)κ
the population group at different income levels, and a determination of the number of households within each special-needs group experiencing housing costs greater than 50 percent of their income, overcrowding or substandard housing;
(c) Contains an estimate of the number and condition of subsidized and other low-income housing units at the county level and the identification of any subsidized units that are forecast to convert to market-rate units within a 2-year planning period;
(d) Provides a demographic and economic overview by local and county jurisdiction, if feasible, for the population of Nevada, including age, race and ethnicity, household size, migration, current and forecast employment, household income and a summary relating to the effects of demographics and economic factors on housing demand;
(e) Provides the number of housing units available to a victim of domestic violence from any housing authority, as defined in NRS 315.021, and from participation in the program of housing assistance pursuant to section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f; and
(f) Provides the number of terminations of victims of domestic violence in this State from the program of housing assistance pursuant to section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f.
3. The costs of creating and maintaining the database:
(a) Must be paid from the Account for [Low-Income] Affordable Housing created by NRS 319.500; and
(b) May not exceed $175,000 per year.
Sec. 24. NRS 319.340 is hereby amended to read as follows:
319.340 1. The Division may establish one or more bond reserve funds, and shall pay into each such bond reserve fund:
(a) Any money appropriated by the Legislature for the purpose of the fund;
(b) Any proceeds of sale of notes or bonds to the extent provided in connection with the issuance thereof; and
(c) Any other money which may be available to the Division for the purpose of the fund from any other source or sources.
Κ All money held in any bond reserve fund, except as otherwise expressly provided in this chapter, must be used, as required, solely for the payment of the principal of bonds secured in whole or in part by the fund or of the sinking fund payments with respect to such bonds, the purchase or redemption of such bonds, the payment of interest on such bonds or the payment of any redemption premium required to be paid when the bonds are redeemed before maturity.
2. Money in such a fund must not be withdrawn from the fund at any time in an amount that would reduce the amount of the fund below the requirement established for that fund, except to pay when due, with respect to bonds secured in whole or in part by that fund, principal, interest, redemption premiums and sinking fund payments for the payment of which other money of the Division is not available. Any income or interest earned by or incremental to any bond reserve fund resulting from the investment thereof may be transferred by the Division to other funds or accounts of the Division and to the Account for [Low-Income] Affordable Housing created pursuant to NRS 319.500, to the extent that the amount of that bond reserve fund is not reduced below the requirement for the fund.
κ2019 Statutes of Nevada, Page 1421 (CHAPTER 248, SB 473)κ
Sec. 25. NRS 319.500 is hereby amended to read as follows:
319.500 1. There is hereby created in the State General Fund the Account for [Low-Income] Affordable Housing, to be administered by the Division. All money that is collected for the use of the Account from any source, including pursuant to a specific statute, tax, legislative appropriation, gift or grant, or from interest earned on specified public or private accounts, must be deposited in the Account.
2. The money in the Account must be invested as provided in chapters 355 and 356 of NRS. The interest and income earned on the money in the Account, after deducting any applicable charges, must be credited to the Account. All claims against the Account must be paid as other claims against the State are paid.
Sec. 26. NRS 319.510 is hereby amended to read as follows:
319.510 1. Except as otherwise provided in subsection 2, money deposited in the Account for [Low-Income] Affordable Housing must be used:
(a) For the acquisition, construction or rehabilitation of affordable housing for eligible families by public or private nonprofit charitable organizations, housing authorities or local governments through loans, grants or subsidies;
(b) To provide technical and financial assistance to public or private nonprofit charitable organizations, housing authorities and local governments for the acquisition, construction or rehabilitation of affordable housing for eligible families;
(c) To provide funding for projects of public or private nonprofit charitable organizations, housing authorities or local governments that provide assistance to or guarantee the payment of rent or deposits as security for rent for eligible families, including homeless persons;
(d) To reimburse the Division for the costs of administering the Account;
(e) To assist eligible persons by supplementing their monthly rent for the manufactured home lots, as defined by NRS 118B.016, on which their manufactured homes, as defined by NRS 118B.015, are located; and
(f) In any other manner consistent with this section to assist eligible families in obtaining or keeping affordable housing, including use as the States contribution to facilitate the receipt of related federal money.
2. Except as otherwise provided in this subsection, the Division may expend money from the Account as reimbursement for the necessary costs of efficiently administering the Account and any money received pursuant to 42 U.S.C. §§ 12701 et seq. In no case may the Division expend more than $40,000 per year or an amount equal to 6 percent of any money made available to the State pursuant to 42 U.S.C. §§ 12701 et seq., whichever is greater. In addition, the Division may expend not more than $175,000 per year from the Account to create and maintain the statewide low-income housing database required by NRS 319.143. The Division may expend not more than $75,000 per year of the money deposited in the Account pursuant to NRS 375.070 for the purpose set forth in paragraph (e) of subsection 1. Of the remaining money allocated from the Account:
(a) Except as otherwise provided in subsection 3, 15 percent must be distributed to the Division of Welfare and Supportive Services of the Department of Health and Human Services for use in its program developed pursuant to 45 C.F.R. § 233.120 , as that section existed on December 4, 1997, to provide emergency assistance to needy families with children, subject to the following:
κ2019 Statutes of Nevada, Page 1422 (CHAPTER 248, SB 473)κ
pursuant to 45 C.F.R. § 233.120 , as that section existed on December 4, 1997, to provide emergency assistance to needy families with children, subject to the following:
(1) The Division of Welfare and Supportive Services shall adopt regulations governing the use of the money that are consistent with the provisions of this section.
(2) The money must be used solely for activities relating to [low-income] affordable housing that are consistent with the provisions of this section.
(3) The money must be made available to families that have children and whose income is at or below the federally designated level signifying poverty.
(4) All money provided by the Federal Government to match the money distributed to the Division of Welfare and Supportive Services pursuant to this section must be expended for activities consistent with the provisions of this section.
(b) Eighty-five percent must be distributed to public or private nonprofit charitable organizations, housing authorities and local governments for the acquisition, construction and rehabilitation of affordable housing for eligible families, subject to the following:
(1) Priority must be given to those projects that qualify for the federal tax credit relating to low-income housing.
(2) Priority must be given to those projects that anticipate receiving federal money to match the state money distributed to them.
(3) Priority must be given to those projects that have the commitment of a local government to provide assistance to them.
(4) All money must be used to benefit families whose income does not exceed [60] 120 percent of the median income for families residing in the same county, as defined by the United States Department of Housing and Urban Development.
(5) Not less than 15 percent of the units acquired, constructed or rehabilitated must be affordable to persons whose income is at or below the federally designated level signifying poverty. For the purposes of this subparagraph, a unit is affordable if a family does not have to pay more than 30 percent of its gross income for housing costs, including both utility and mortgage or rental costs.
(6) To be eligible to receive money pursuant to this paragraph, a project must be sponsored by a local government.
3. The Division may, pursuant to contract and in lieu of distributing money to the Division of Welfare and Supportive Services pursuant to paragraph (a) of subsection 2, distribute any amount of that money to private or public nonprofit entities for use consistent with the provisions of this section.
Sec. 27. NRS 319.520 is hereby amended to read as follows:
319.520 1. The Administrator shall consult with representatives of housing authorities, organizations of persons with low income, providers of housing, financial institutions and other persons interested in the provision of [low-income] affordable housing, and adopt regulations establishing:
(a) Criteria for the distribution and use of money from the Account for [Low-Income] Affordable Housing; and
κ2019 Statutes of Nevada, Page 1423 (CHAPTER 248, SB 473)κ
(b) Procedures for the Division and the local governments that receive money pursuant to NRS 319.510 to monitor the use of money from the Account and to enforce the provisions of this section and NRS 319.500 and 319.510.
Κ The regulations must be designed to maximize the efficient use of money in the Account and to promote the participation and assistance of local governments.
2. A recipient of money from the Account shall comply with the regulations of the Administrator and provide such reports to the Division and the local governments that receive money pursuant to NRS 319.510 upon the use of the money as the Administrator requires.
Sec. 28. NRS 375.070 is hereby amended to read as follows:
375.070 1. The county recorder shall transmit the proceeds of the tax imposed by NRS 375.020 at the end of each quarter in the following manner:
(a) An amount equal to that portion of the proceeds which is equivalent to 10 cents for each $500 of value or fraction thereof must be transmitted to the State Controller who shall deposit that amount in the Account for [Low-Income] Affordable Housing created pursuant to NRS 319.500.
(b) In a county whose population is 700,000 or more, an amount equal to that portion of the proceeds which is equivalent to 60 cents for each $500 of value or fraction thereof must be transmitted to the county treasurer for deposit in the county school districts fund for capital projects established pursuant to NRS 387.328, to be held and expended in the same manner as other money deposited in that fund.
(c) The remaining proceeds must be transmitted to the State Controller for deposit in the Local Government Tax Distribution Account created by NRS 360.660 for credit to the respective accounts of Carson City and each county.
2. In addition to any other authorized use of the proceeds it receives pursuant to subsection 1, a county or city may use the proceeds to pay expenses related to or incurred for the development of tier one affordable housing and tier two affordable housing . [for families whose income does not exceed 80 percent of the median income for families residing in the same county, as that percentage is defined by the United States Department of Housing and Urban Development.] A county or city that uses the proceeds in that manner must give priority to the development of tier one affordable housing and tier two affordable housing for persons who are elderly or persons with disabilities.
3. The expenses authorized by subsection 2 include, but are not limited to:
(a) The costs to acquire land and developmental rights;
(b) Related predevelopment expenses;
(c) The costs to develop the land, including the payment of related rebates;
(d) Contributions toward down payments made for the purchase of affordable housing; and
(e) The creation of related trust funds.
4. As used in this section:
(a) Tier one affordable housing has the meaning ascribed to it in section 2 of this act.
(b) Tier two affordable housing has the meaning ascribed to it in section 4 of this act.
κ2019 Statutes of Nevada, Page 1424 (CHAPTER 248, SB 473)κ
Sec. 29. NRS 279.397 is hereby repealed.
Sec. 30. This act becomes effective on July 1, 2019.
________
Senate Bill No. 479Committee on Commerce and Labor
CHAPTER 249
[Approved: May 29, 2019]
AN ACT relating to mortgage lending; repealing provisions relating to certain mortgage loan originators; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law requires residential mortgage loan originators at privately insured institutions to be licensed as a mortgage agent by the Division of Financial Institutions of the Department of Business and Industry. (NRS 658.210) Section 1 of this bill eliminates this requirement upon the date the Division enters a Memorandum of Understanding with the National Credit Union Administration for the registration of mortgage loan originators under the federal SAFE Act, Secure and Fair Enforcement for Mortgage Licensing Act of 2008, 12 U.S.C. §§ 5101, et seq.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 658.210 is hereby repealed.
Sec. 2. This act becomes effective on July 1, 2019, for the purpose of adopting regulations and performing any other preparatory administrative tasks to register mortgage loan originators under the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008, 12 U.S.C. §§ 5101 et seq., commonly known as the SAFE Act, and upon the date of adoption of a Memorandum of Understanding between the Division of Financial Institutions of the Department of Business and Industry and the National Credit Union Administration for the registration of mortgage loan originators under the federal SAFE Act for all other purposes.
________
κ2019 Statutes of Nevada, Page 1425κ
Senate Bill No. 481Committee on Health and Human Services
CHAPTER 250
[Approved: May 29, 2019]
AN ACT relating to health insurance; establishing requirements for obtaining a certificate of authority for self-funded multiple employer welfare arrangements; establishing requirements for short-term limited duration medical plan cancellation and rescission; allowing certain consumers to purchase individual health insurance policies outside the rating area where they reside; revising provisions relating to health benefit plans that are not purchased on the Silver State Health Insurance Exchange; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law sets forth requirements for policies of health insurance which include a policy, contract, certificate, plan or agreement issued for the provision of, delivery of, arrangement for, payment for or reimbursement for any costs of a health care service for large and small employers. (Chapters 689B and 689C of NRS) Large employers and certain small employers have been able to participate in association health plans to provide policies of health insurance for their employees. Recent changes in the United States Department of Labor rules allow additional small employers to participate in certain association health plans. Sections 1-5 of this bill define multiple employer welfare arrangements and establish requirements for a certificate of authority to be issued to a self-funded multiple employer welfare arrangement. Sections 6 and 10 of this bill provide that only one policy of short-term health insurance may be issued to an insured during a 365-day period, except it may be extended to cover a period of hospitalization. Section 7 of this bill: (1) requires a carrier issuing a health benefit plan that is not being purchased on the Silver State Health Insurance Exchange to provide on its enrollment Internet website and printed enrollment information a notice to inform consumers that consumers may be eligible for financial assistance with their health insurance premiums or other out-of-pocket expenses by enrolling on the Silver State Health Insurance Exchange; and (2) specifies the information to be provided in that notice. Sections 8 and 9 of this bill establish the requirements for cancellation and rescission of a short-term limited duration medical plan. Section 12 of this bill authorizes the Silver State Health Insurance Exchange to facilitate certain individuals purchasing individual health insurance policies in a manner which, in effect, will allow the individuals to purchase a plan from outside the rating area where they reside.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 680A of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. Multiple employer welfare arrangement has the meaning ascribed to it in 29 U.S.C. § 1002(40).
κ2019 Statutes of Nevada, Page 1426 (CHAPTER 250, SB 481)κ
Sec. 3. To the extent applicable and not inconsistent with federal law:
1. The provisions of this chapter that govern domestic insurers, their business, capital and surplus requirements and the requirements for eligibility for a certificate of authority govern self-funded multiple employer welfare arrangements; and
2. A self-funded multiple employer welfare arrangement must comply with the criteria set forth in this chapter to qualify for a certificate of authority.
Sec. 4. The Commissioner may not issue a certificate of authority to a self-funded multiple employer welfare arrangement unless the arrangement establishes to the satisfaction of the Commissioner that the following requirements have been satisfied by the arrangement:
1. The employers participating in the arrangement are members of a bona fide association;
2. The employers participating in the arrangement exercise control over the arrangement, as follows:
(a) Subject to paragraph (b) of this subsection, control exists if the board of directors of the bona fide association or the employers participating in the arrangement have the right to elect at least 75 percent of the individuals designated in the arrangements organizational documents as having control over operations of the arrangement and individuals designated in the arrangements organizational documents in fact exercise control over the operation of the arrangement; and
(b) The use of a third-party administrator to process claims and to assist in the administration of the arrangement is not evidence of the lack of control over the operation of the arrangement;
3. In this State, the arrangement provides only health care services;
4. In this State, the arrangement provides or arranges benefits for health care services in compliance with the provisions of this title that mandate particular benefits or offerings and with provisions that require access to particular types or categories of health care providers and facilities;
5. The arrangement provides health care services to not less than 20 employers and not less than 75 employees;
6. The arrangement may not solicit participation in the arrangement from the general public. However, the arrangement may employ licensed insurance producers who receive a commission, unlicensed individuals who do not receive a commission, and may contract with a licensed insurance producer who may be paid a commission or other remuneration, for the purpose of enrolling and renewing the enrollments of employers in the arrangement;
7. The arrangement has been in existence and operated actively for a continuous period of not less than 10 years as of December 31, 2018, except for an arrangement that has been in existence and operated actively since December 31, 2015, and is sponsored by an association that has been in existence more than 25 years;
8. The arrangement is not organized or maintained solely as a conduit for the collection of premiums and the forwarding of premiums to an insurance company; and
9. The arrangement has aggregate stop loss coverage, with an attachment point of 120 percent of expected claims.
κ2019 Statutes of Nevada, Page 1427 (CHAPTER 250, SB 481)κ
Sec. 5. NRS 680A.010 is hereby amended to read as follows:
680A.010 As used in this Code, unless the context otherwise requires, the words and terms defined in NRS 680A.020 to 680A.050, inclusive, and section 2 of this act shall have the meanings ascribed to them in NRS 680A.020 to 680A.050, inclusive [.] , and section 2 of this act.
Sec. 6. NRS 687B.470 is hereby amended to read as follows:
687B.470 1. As used in NRS 687B.470 to 687B.500, inclusive, health benefit plan means a policy, contract, certificate or agreement offered by a carrier to provide for, deliver payment for, arrange for the payment of, pay for or reimburse any of the costs of health care services. Except as otherwise provided in this section, the term includes catastrophic health insurance policies and a policy that pays on a cost-incurred basis.
2. The term does not include:
(a) Coverage that is only for accident or disability income insurance, or any combination thereof;
(b) Coverage issued as a supplement to liability insurance;
(c) Liability insurance, including general liability insurance and automobile liability insurance;
(d) Workers compensation or similar insurance;
(e) Coverage for medical payments under a policy of automobile insurance;
(f) Credit insurance;
(g) Coverage for on-site medical clinics;
(h) Other similar insurance coverage specified pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, under which benefits for medical care are secondary or incidental to other insurance benefits;
(i) Coverage under a short-term health insurance policy [; and] which is:
(1) Issued to provide coverage that does not result in an individual being covered by one or more short-term health insurance policies for more than 185 days in a 365-day period, but such coverage may be extended to provide coverage until the end of a period of hospitalization for a condition which the person covered by the policy is hospitalized on the day coverage would have otherwise ended; and
(2) Nonrenewable or is extended to provide coverage for the period of hospitalization; and
(j) Coverage under a blanket student accident and health insurance policy.
3. The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan:
(a) Limited-scope dental or vision benefits;
(b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and
(c) Such other similar benefits as are specified in any federal regulations adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191.
4. The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract, there is no coordination between the provisions of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor:
κ2019 Statutes of Nevada, Page 1428 (CHAPTER 250, SB 481)κ
and the benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor:
(a) Coverage that is only for a specified disease or illness; and
(b) Hospital indemnity or other fixed indemnity insurance.
5. The term does not include any of the following, if offered as a separate policy, certificate or contract of insurance:
(a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, 42 U.S.C. § 1395ss, as that section existed on July 16, 1997;
(b) Coverage supplemental to the coverage provided pursuant to the Civilian Health and Medical Program of Uniformed Services, [CHAMPUS,] TRICARE, 10 U.S.C. §§ 1071 et seq.; and
(c) Similar supplemental coverage provided under a group health plan.
Sec. 7. NRS 687B.480 is hereby amended to read as follows:
687B.480 1. All health benefit plans must be made available in the manner required by 45 C.F.R. § 147.104.
2. In addition to the requirements of subsection 1, any health benefit plan for individuals that is not purchased on the Silver State Health Insurance Exchange established by NRS 695I.210:
(a) Must be made available for purchase at any time during the calendar year;
(b) Is subject to a waiting period of not more than 90 days after the date on which the application for coverage was received;
(c) Is effective upon the first day of the month immediately succeeding the month in which the waiting period expires; and
(d) Is not retroactive to the date on which the application for coverage was received.
3. Except as otherwise provided in this subsection, a carrier offering a health benefit plan for individuals that is not being purchased on the Silver State Health Insurance Exchange established by NRS 695I.210 must include on its enrollment Internet website and printed enrollment information a notice to inform consumers that consumers may be eligible for financial assistance with their health insurance premiums or other out-of-pocket expenses by enrolling on the Silver State Health Insurance Exchange established by NRS 695I.210. A carrier is not required to provide the notice required by this subsection if such financial assistance is not available. The notice required by this subsection must contain the following statement:
You can also enroll in a health insurance plan for you and your family through the Silver State Health Insurance Exchange (Nevadas state-based health insurance exchange). The Silver State Health Insurance Exchange allows you to get quotes from different insurance companies that are available on the Exchange. You can compare different plans, get quotes and find out if you qualify for financial assistance. The Silver State Health Insurance Exchange is the only way to receive financial assistance for your health insurance. You can enroll online by visiting www.nevadahealthlink.com or by calling 1-800-547-2927 TTY 711.
κ2019 Statutes of Nevada, Page 1429 (CHAPTER 250, SB 481)κ
4. The Commissioner may adopt regulations to carry out the provisions of subsection 3, including, without limitation, regulations to require additional information to be provided in the notice required by subsection 3.
Sec. 8. Chapter 689A of NRS is hereby amended by adding thereto a new section to read as follows:
1. A short-term limited duration medical plan shall not be cancelled by the carrier during the coverage period except for the following:
(a) Nonpayment of premium;
(b) Violation of published policies of the carrier approved by the Commissioner;
(c) Failure of a member to pay any deductible or copayment amount owed to the carrier and not the provider of health care services;
(d) Members committing fraudulent acts as to the carrier;
(e) A members material breach of the medical plan; or
(f) Change or implementation of federal or state laws that no longer permit the continued offering of such coverage.
2. Except as otherwise provided in subsections 3 and 4, a short-term limited duration medical plan must not be rescinded by the carrier during the coverage period except for nonpayment of premium.
3. Except as provided in subsection 4 of this section, no oral or written misrepresentation or warranty made by the person applying for coverage or on his or her behalf in the process of applying for a short-term limited duration medical plan shall be deemed material or allow the carrier to rescind the medical plan, unless the misrepresentation or warranty is made to deceive.
4. In any application for a short-term limited duration medical plan made in writing by a person, all statements in the application by the person shall, in the absence of fraud, be deemed representations and not warranties. The falsity of any such statement shall not bar the right to recovery under the contract unless such false statement was made with actual intent to deceive or unless it materially affected either the acceptance of the risk or the hazard assumed by the carrier.
5. When cancellation or rescission is for nonpayment of premium, the carrier must notify the member in writing 10 days prior to the cancellation or rescission that his or her short-term limited duration medical plan will be cancelled, unless payment is made prior to the cancellation date. When cancellation is for any other reason allowed under subsection 1, the carrier must notify the member in writing 20 days prior to the cancellation date. The notice must specifically state the reason or reasons for the cancellation. The written communications required by this subsection must be phrased in simple language that is readily understood.
Sec. 9. NRS 689A.040 is hereby amended to read as follows:
689A.040 1. Except as otherwise provided in subsection 2, each such policy delivered or issued for delivery to any person in this State must contain the provisions specified in NRS 689A.050 to 689A.170, inclusive, and section 8 of this act, in the words in which the provisions appear, except that the insurer may, at its option, substitute for one or more of the provisions corresponding provisions of different wording approved by the Commissioner which are in each instance not less favorable in any respect to the insured or the beneficiary.
κ2019 Statutes of Nevada, Page 1430 (CHAPTER 250, SB 481)κ
the insured or the beneficiary. Each such provision must be preceded individually by the applicable caption shown or, at the option of the insurer, by such appropriate individual or group captions or subcaptions as the Commissioner may approve.
2. If any such provision is in whole or in part inapplicable to or inconsistent with the coverage provided by a particular form of policy, the insurer, with the approval of the Commissioner, may omit from the policy any inapplicable provision or part of a provision, and shall modify any inconsistent provision or part of a provision in such a manner as to make the provision as contained in the policy consistent with the coverage provided by the policy.
Sec. 10. NRS 689A.540 is hereby amended to read as follows:
689A.540 1. Health benefit plan means a policy, contract, certificate or agreement offered by a carrier to provide for, deliver payment for, arrange for the payment of, pay for or reimburse any of the costs of health care services. Except as otherwise provided in this section, the term includes catastrophic health insurance policies and a policy that pays on a cost-incurred basis.
2. The term does not include:
(a) Coverage that is only for accident or disability income insurance, or any combination thereof;
(b) Coverage issued as a supplement to liability insurance;
(c) Liability insurance, including general liability insurance and automobile liability insurance;
(d) Workers compensation or similar insurance;
(e) Coverage for medical payments under a policy of automobile insurance;
(f) Credit insurance;
(g) Coverage for on-site medical clinics;
(h) Other similar insurance coverage specified in federal regulations issued pursuant to Public Law 104-191 under which benefits for medical care are secondary or incidental to other insurance benefits;
(i) Coverage under a short-term health insurance policy [; and] which is:
(1) Issued to provide coverage that does not result in an individual being covered by one or more short-term health insurance policies for more than 185 days in a 365-day period, but such coverage may be extended to provide coverage until the end of a period of hospitalization for a condition which the person covered by the policy is hospitalized on the day coverage would have otherwise ended; and
(2) Nonrenewable or is extended to provide coverage for the period of hospitalization; and
(j) Coverage under a blanket student accident and health insurance policy.
3. The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan:
(a) Limited-scope dental or vision benefits;
(b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and
(c) Such other similar benefits as are specified in any federal regulations adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191.
κ2019 Statutes of Nevada, Page 1431 (CHAPTER 250, SB 481)κ
4. The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor:
(a) Coverage that is only for a specified disease or illness; and
(b) Hospital indemnity or other fixed indemnity insurance.
5. The term does not include any of the following, if offered as a separate policy, certificate or contract of insurance:
(a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, 42 U.S.C. § 1395ss, as that section existed on July 16, 1997;
(b) Coverage supplemental to the coverage provided pursuant to the Civilian Health and Medical Program of Uniformed Services, [CHAMPUS,] TRICARE, 10 U.S.C. §§ 1071 et seq.; and
(c) Similar supplemental coverage provided under a group health plan.
Sec. 11. (Deleted by amendment.)
Sec. 12. NRS 695I.210 is hereby amended to read as follows:
695I.210 1. The Exchange shall:
(a) Create and administer a health insurance exchange;
(b) Facilitate the purchase and sale of qualified health plans [;] consistent with established patterns of care within the State;
(c) Provide for the establishment of a program to assist qualified small employers in Nevada in facilitating the enrollment of their employees in qualified health plans offered in the small group market;
(d) Make only qualified health plans available to qualified individuals and qualified small employers on or after January 1, 2014; and
(e) Unless the Federal Act is repealed or is held to be unconstitutional or otherwise invalid or unlawful, perform all duties that are required of the Exchange to implement the requirements of the Federal Act.
2. The Exchange may:
(a) Enter into contracts with any person, including, without limitation, a local government, a political subdivision of a local government and a governmental agency, to assist in carrying out the duties and powers of the Exchange or the Board; and
(b) Apply for and accept any gift, donation, bequest, grant or other source of money to carry out the duties and powers of the Exchange or the Board.
3. The Exchange is subject to the provisions of chapter 333 of NRS.
Sec. 13. 1. This section and sections 1 to 5, inclusive, of this act become effective on July 1, 2019.
2. Sections 6 to 10, inclusive, of this act become effective on July 1, 2019, for the purposes of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act, and on January 1, 2020, for all other purposes.
3. Section 12 of this act becomes effective on July 1, 2019, for the purposes of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act, and on January 1, 2021, for all other purposes.
________
κ2019 Statutes of Nevada, Page 1432κ
Senate Bill No. 482Committee on Health and Human Services
CHAPTER 251
[Approved: May 29, 2019]
AN ACT relating to health insurance; authorizing the Commissioner of Insurance to enter into certain types of interstate compacts; authorizing the Commissioner to allow reciprocal licensure with certain states; authorizing the Commissioner to apply to the Secretary of Health and Human Services for a certain waiver; removing certain waiting period requirements for health benefit plans for individuals not purchased on the Silver State Health Insurance Exchange; and providing other matters properly relating thereto.
Legislative Counsels Digest:
The McCarran-Ferguson Act reserves to the states the right to regulate the business of insurance, except in certain situations where the United States Congress explicitly regulates the business of insurance. (15 U.S.C. §§ 1011-1015) In 2010, the United States Congress enacted the Patient Protection and Affordable Care Act, through which the United States Congress authorized two or more states to enter into healthcare choice compacts under which the issuer of any qualified health plan to which the compact applies would be required to: (1) be licensed in each state; or (2) submit to the jurisdiction of each such state. (42 U.S.C. § 18053(a)(1)(B)(ii)) Existing law authorizes the Commissioner of Insurance to enter into such compacts with the regulatory officers in other states to further the uniform treatment of insurers throughout the United States. (NRS 679B.220) Section 2 of this bill authorizes the Commissioner to enter into such compacts to also ensure: (1) market stability; or (2) essential insurance is available to Nevada residents. Section 1 of this bill authorizes the Commissioner to allow reciprocal licenses to be issued to health carriers that are licensed to do business in Arizona, California, Idaho, Oregon or Utah without the health carrier first being required to obtain a certificate of authority to do business in Nevada. Section 1 additionally authorizes the Commissioner to adopt regulations to carry out this reciprocal licensure program, including regulations authorizing the Commissioner to establish any fees the Commissioner deems appropriate to carry out this program. Section 55 of this bill makes conforming changes by requiring certain certificates to be filed only at the request of the Commissioner.
Federal law authorizes a state to apply to the Secretary of Health and Human Services for a waiver of various requirements of the Patient Protection and Affordable Care Act with respect to health insurance coverage in the state for a plan year. (42 U.S.C. § 18502) Section 45 of this bill incorporates this federal language into state law by authorizing the Commissioner to apply for such a waiver for a plan year beginning on January 1, 2020. Sections 46-54, 58 and 59 of this bill make conforming changes.
Existing law requires any health benefit plan for individuals that is not purchased on the Silver State Health Insurance Exchange to be: (1) made available for purchase at any time during the calendar year; (2) subject to a waiting period of not more than 90 days after the date on which the application was received; (3) effective upon the first day of the month immediately after the month in which the waiting period ends; and (4) not retroactive to the date on which the application for coverage was received. (NRS 687B.480) Section 56 of this bill removes these requirements.
κ2019 Statutes of Nevada, Page 1433 (CHAPTER 251, SB 482)κ
EXPLANATION
Matter in bolded italics is
new; matter between brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 679B of NRS is hereby amended by adding thereto a new section to read as follows:
1. The Commissioner may allow reciprocal licenses to be issued to health carriers licensed to do business in Arizona, California, Idaho, Oregon and Utah to enable said health carriers to do business in Nevada without completing a separate application for a certificate of authority in Nevada, other than a petition for recognition of their respective states license with the grant of a reciprocal Nevada license.
2. The Commissioner may adopt regulations to carry out the provisions of subsection 1, including, without limitation, regulations to establish any fees the Commissioner deems appropriate to carry out the provisions of subsection 1.
Sec. 2. NRS 679B.220 is hereby amended to read as follows:
679B.220 1. The Commissioner shall communicate on request of the regulatory officer for insurance in any state, province or country any information which it is the duty of the Commissioner by law to ascertain respecting authorized insurers.
2. The Commissioner may:
(a) Be a member of the National Association of Insurance Commissioners or any successor organization;
(b) Exchange with the association or any successor organization any information, not otherwise confidential, relating to applicants and licensees under this title;
(c) Communicate with the association or any successor organization concerning the business of insurance generally;
(d) Enter into compacts with the regulatory officers in other states to [further] :
(1) Further the uniform treatment of insurers throughout the United States;
(2) Ensure market stability; or
(3) Ensure essential insurance is made available to Nevada residents; and
(e) Participate in and support other cooperative activities of public officers having supervision of the business of insurance.
Secs. 3-44. (Deleted by amendment.)
Sec. 45. Chapter 686B of NRS is hereby amended by adding thereto a new section to read as follows:
1. The Commissioner may apply to the Secretary of Health and Human Services pursuant to 42 U.S.C. § 18052 for a waiver for state innovation of applicable provisions of the Patient Protection and Affordable Care Act, Public Law 111-148, with respect to health insurance coverage in this State for a plan year beginning on or after January 1, 2020.
2. The Commissioner may implement a state plan that meets the waiver requirements in a manner consistent with state and federal law and as approved by the Secretary of Health and Human Services.
κ2019 Statutes of Nevada, Page 1434 (CHAPTER 251, SB 482)κ
Sec. 46. NRS 686B.010 is hereby amended to read as follows:
686B.010 1. The Legislature intends that NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act be liberally construed to achieve the purposes stated in subsection 2, which constitute an aid and guide to interpretation but not an independent source of power.
2. The purposes of NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act are to:
(a) Protect policyholders and the public against the adverse effects of excessive, inadequate or unfairly discriminatory rates;
(b) Encourage, as the most effective way to produce rates that conform to the standards of paragraph (a), independent action by and reasonable price competition among insurers;
(c) Provide formal regulatory controls for use if independent action and price competition fail;
(d) Authorize cooperative action among insurers in the rate-making process, and to regulate such cooperation in order to prevent practices that tend to bring about monopoly or to lessen or destroy competition;
(e) Encourage the most efficient and economic marketing practices; and
(f) Regulate the business of insurance in a manner that will preclude application of federal antitrust laws.
Sec. 47. NRS 686B.020 is hereby amended to read as follows:
686B.020 As used in NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act, unless the context otherwise requires:
1. Advisory organization, except as limited by NRS 686B.1752, means any person or organization which is controlled by or composed of two or more insurers and which engages in activities related to rate making. For the purposes of this subsection, two or more insurers with common ownership or operating in this State under common ownership constitute a single insurer. An advisory organization does not include:
(a) A joint underwriting association;
(b) An actuarial or legal consultant; or
(c) An employee or manager of an insurer.
2. Market segment means any line or kind of insurance or, if it is described in general terms, any subdivision thereof or any class of risks or combination of classes.
3. Rate service organization means any person, other than an employee of an insurer, who assists insurers in rate making or filing by:
(a) Collecting, compiling and furnishing loss or expense statistics;
(b) Recommending, making or filing rates or supplementary rate information; or
(c) Advising about rate questions, except as an attorney giving legal advice.
4. Supplementary rate information includes any manual or plan of rates, statistical plan, classification, rating schedule, minimum premium, policy fee, rating rule, rule of underwriting relating to rates and any other information prescribed by regulation of the Commissioner.
Sec. 48. NRS 686B.030 is hereby amended to read as follows:
686B.030 1. Except as otherwise provided in subsection 2 and NRS 686B.125, the provisions of NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act apply to all kinds and lines of direct insurance written on risks or operations in this State by any insurer authorized to do business in this State, except:
κ2019 Statutes of Nevada, Page 1435 (CHAPTER 251, SB 482)κ
(a) Ocean marine insurance;
(b) Contracts issued by fraternal benefit societies;
(c) Life insurance and credit life insurance;
(d) Variable and fixed annuities;
(e) Credit accident and health insurance;
(f) Property insurance for business and commercial risks;
(g) Casualty insurance for business and commercial risks other than insurance covering the liability of a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS;
(h) Surety insurance;
(i) Health insurance offered through a group health plan maintained by a large employer; and
(j) Credit involuntary unemployment insurance.
2. The exclusions set forth in paragraphs (f) and (g) of subsection 1 extend only to issues related to the determination or approval of premium rates.
Sec. 49. NRS 686B.040 is hereby amended to read as follows:
686B.040 1. Except as otherwise provided in subsection 2, the Commissioner may by rule exempt any person or class of persons or any market segment from any or all of the provisions of NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act if and to the extent that the Commissioner finds their application unnecessary to achieve the purposes of those sections.
2. The Commissioner may not, by rule or otherwise, exempt an insurer from the provisions of NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act with regard to insurance covering the liability of a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of the practitioners professional duty toward a patient.
Sec. 50. NRS 686B.080 is hereby amended to read as follows:
686B.080 1. Except as otherwise provided in subsections 2 to 5, inclusive, each filing and any supporting information filed under NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act must, as soon as filed, be open to public inspection at any reasonable time. Copies may be obtained by any person on request and upon payment of a reasonable charge therefor.
2. All rates for health benefit plans available for purchase by individuals and small employers are considered proprietary and constitute trade secrets, and are not subject to disclosure by the Commissioner to persons outside the Division except as agreed to by the carrier or as ordered by a court of competent jurisdiction.
3. The provisions of subsection 2 expire annually on the date 30 days before open enrollment.
4. Except in cases of violations of NRS 689A.010 to 689A.740, inclusive, or 689C.015 to 689C.355, inclusive, the unified rate review template and rate filing documentation used by carriers servicing the individual and small employer markets are considered proprietary and constitute a trade secret, and are not subject to disclosure by the Commissioner to persons outside the Division except as agreed to by the carrier or as ordered by a court of competent jurisdiction.
5. An insurer providing blanket health insurance in accordance with the provisions of chapter 689B of NRS shall make all information concerning rates available to the Commissioner upon request. Such information is considered proprietary and constitutes a trade secret and is not subject to disclosure by the Commissioner to persons outside the Division except as agreed by the insurer or as ordered by a court of competent jurisdiction.
κ2019 Statutes of Nevada, Page 1436 (CHAPTER 251, SB 482)κ
considered proprietary and constitutes a trade secret and is not subject to disclosure by the Commissioner to persons outside the Division except as agreed by the insurer or as ordered by a court of competent jurisdiction.
6. For the purposes of this section:
(a) Open enrollment has the meaning ascribed to it in 45 C.F.R. § 147.104(b)(1)(ii).
(b) Rate filing documentation and unified rate review template have the meanings ascribed to them in 45 C.F.R. § 154.215.
Sec. 51. NRS 686B.110 is hereby amended to read as follows:
686B.110 1. Except as otherwise provided in NRS 686B.112, the Commissioner shall consider each proposed increase or decrease in the rate of any kind or line of insurance or subdivision thereof filed with the Commissioner pursuant to subsection 1 of NRS 686B.070. If the Commissioner finds that a proposed increase will result in a rate which is not in compliance with NRS 686B.050 or subsection 3 of NRS 686B.070, the Commissioner shall disapprove the proposal. The Commissioner shall approve or disapprove each proposal no later than 30 days after it is determined by the Commissioner to be complete pursuant to subsection 6. If the Commissioner fails to approve or disapprove the proposal within that period, the proposal shall be deemed approved.
2. If the Commissioner disapproves a proposed increase or decrease in any rate pursuant to subsection 1, the Commissioner shall send a written notice of disapproval to the insurer or the rate service organization that filed the proposal. The notice must set forth the reasons the proposal is not in compliance with NRS 686B.050 or subsection 3 of NRS 686B.070 and must be sent to the insurer or the rate service organization not more than 30 days after the Commissioner determines that the proposal is complete pursuant to subsection 6.
3. Upon receipt of a written notice of disapproval from the Commissioner pursuant to subsection 2 or 6, the insurer or rate service organization may request that the Commissioner reconsider the proposed increase or decrease. The request for reconsideration must be received by the Commissioner not more than 30 days after the insurer or rate service organization receives the written notice of disapproval from the Commissioner, except that if the insurer or rate service organization requests, in writing, an extension of 30 additional days in which to request a reconsideration, the Commissioner shall grant the extension. A request for reconsideration submitted pursuant to this subsection may include, without limitation, any documents or other information for review by the Commissioner in reconsidering the proposal. The Commissioner shall approve or disapprove the proposal upon reconsideration not later than 30 days after receipt of the request for reconsideration and shall notify the insurer or rate service organization of his or her approval or disapproval.
4. Whenever an insurer has no legally effective rates as a result of the Commissioners disapproval of rates or other act, the Commissioner shall on request specify interim rates for the insurer that are high enough to protect the interests of all parties and may order that a specified portion of the premiums be placed in an escrow account approved by the Commissioner. When new rates become legally effective, the Commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are de minimis must not be required.
κ2019 Statutes of Nevada, Page 1437 (CHAPTER 251, SB 482)κ
5. If the Commissioner disapproves a proposed rate pursuant to subsection 1 or subsection 6 or upon reconsideration pursuant to subsection 3 and an insurer requests a hearing to determine the validity of the action of the Commissioner, the insurer has the burden of showing compliance with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive [.] , and section 45 of this act. Any such hearing must be held:
(a) Within 30 days after the request for a hearing has been submitted to the Commissioner; or
(b) Within a period agreed upon by the insurer and the Commissioner.
Κ If the hearing is not held within the period specified in paragraph (a) or (b), or if the Commissioner fails to issue an order concerning the proposed rate for which the hearing is held within 45 days after the hearing, the proposed rate shall be deemed approved.
6. The Commissioner shall by regulation specify the documents or any other information which must be included in a proposal to increase or decrease a rate submitted to the Commissioner pursuant to subsection 1. Each such proposal shall be deemed complete upon its filing with the Commissioner, unless the Commissioner, within 15 business days after the proposal is filed with the Commissioner, determines that the proposal is incomplete because the proposal does not comply with the regulations adopted by the Commissioner pursuant to this subsection. The Commissioner shall notify the insurer or rate service organization if the Commissioner determines that the proposal is incomplete. The notice must be sent within 15 business days after the proposal is filed with the Commissioner and must set forth the documents or other information that is required to complete the proposal. The Commissioner may disapprove the proposal if the insurer or rate service organization fails to provide the documents or other information to the Commissioner within 30 days after the insurer or rate service organization receives the notice that the proposal is incomplete. If the Commissioner disapproves the proposal pursuant to this subsection, the Commissioner shall notify the insurer or rate service organization of that fact in writing.
Sec. 52. NRS 686B.112 is hereby amended to read as follows:
686B.112 1. The Commissioner shall consider each proposed increase or decrease in the rate of a health plan issued pursuant to the provisions of chapter 689A, 689B, 689C, 695B, 695C, 695D or 695F of NRS, including, without limitation, long-term care and Medicare supplement plans, filed with the Commissioner pursuant to subsection 1 of NRS 686B.070. If the Commissioner finds that a proposed increase will result in a rate which is not in compliance with NRS 686B.050 or subsection 3 of NRS 686B.070, the Commissioner shall disapprove the proposal. The Commissioner shall approve or disapprove each proposal not later than 60 days after the proposal is determined by the Commissioner to be complete pursuant to subsection 4. If the Commissioner fails to approve or disapprove the proposal within that period, the proposal shall be deemed approved.
2. Whenever an insurer has no legally effective rates as a result of the Commissioners disapproval of rates or other act, the Commissioner shall on request specify interim rates for the insurer that are high enough to protect the interests of all parties and may order that a specified portion of the premiums be placed in an escrow account approved by the Commissioner. When new rates become legally effective, the Commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are de minimis must not be required.
κ2019 Statutes of Nevada, Page 1438 (CHAPTER 251, SB 482)κ
3. If the Commissioner disapproves a proposed rate pursuant to subsection 1, and an insurer requests a hearing to determine the validity of the action of the Commissioner, the insurer has the burden of showing compliance with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive [.] , and section 45 of this act. Any such hearing must be held:
(a) Within 30 days after the request for a hearing has been submitted to the Commissioner; or
(b) Within a period agreed upon by the insurer and the Commissioner.
Κ If the hearing is not held within the period specified in paragraph (a) or (b), or if the Commissioner fails to issue an order concerning the proposed rate for which the hearing is held within 45 days after the hearing, the proposed rate shall be deemed approved.
4. The Commissioner shall by regulation specify the documents or any other information which must be included in a proposal to increase or decrease a rate submitted to the Commissioner pursuant to subsection 1. Each such proposal shall be deemed complete upon its filing with the Commissioner, unless the Commissioner, within 15 business days after the proposal is filed with the Commissioner, determines that the proposal is incomplete because the proposal does not comply with the regulations adopted by the Commissioner pursuant to this subsection.
Sec. 53. NRS 686B.115 is hereby amended to read as follows:
686B.115 1. Any hearing held by the Commissioner to determine whether rates comply with the provisions of NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act must be open to members of the public.
2. All costs for transcripts prepared pursuant to such a hearing must be paid by the insurer requesting the hearing.
3. At any hearing which is held by the Commissioner to determine whether rates comply with the provisions of NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act and which involves rates for insurance covering the liability of a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of the practitioners professional duty toward a patient, if a person is not otherwise authorized pursuant to this title to become a party to the hearing by intervention, the person is entitled to provide testimony at the hearing if, not later than 2 days before the date set for the hearing, the person files with the Commissioner a written statement which states:
(a) The name and title of the person;
(b) The interest of the person in the hearing; and
(c) A brief summary describing the purpose of the testimony the person will offer at the hearing.
4. If a person provides testimony at a hearing in accordance with subsection 3:
(a) The Commissioner may, if the Commissioner finds it necessary to preserve order, prevent inordinate delay or protect the rights of the parties at the hearing, place reasonable limitations on the duration of the testimony and prohibit the person from providing testimony that is not relevant to the issues raised at the hearing.
(b) The Commissioner shall consider all relevant testimony provided by the person at the hearing in determining whether the rates comply with the provisions of NRS 686B.010 to 686B.1799, inclusive [.] , and section 45 of this act.
κ2019 Statutes of Nevada, Page 1439 (CHAPTER 251, SB 482)κ
Sec. 54. NRS 686B.130 is hereby amended to read as follows:
686B.130 1. A rate service organization and an advisory organization shall not provide any service relating to the rates of any insurance subject to NRS 686B.010 to 686B.1799, inclusive, and section 45 of this act and an insurer shall not utilize the services of an organization for such purposes unless the organization has obtained a license pursuant to NRS 686B.140.
2. A rate service organization and an advisory organization shall not refuse to supply any services for which it is licensed in this state to any insurer authorized to do business in this state and offering to pay the fair and usual compensation for the services.
Sec. 55. NRS 687B.120 is hereby amended to read as follows:
687B.120 1. Except as otherwise provided in subsection 2:
(a) No life or health insurance policy or contract, annuity contract form, policy form, health care plan or plan for dental care, whether individual, group or blanket, including those to be issued by a health maintenance organization, organization for dental care or prepaid limited health service organization, or application form where a written application is required and is to be made a part of the policy or contract, or printed rider or endorsement form or form of renewal certificate, or form of individual certificate or statement of coverage to be issued under group or blanket contracts, or by a health maintenance organization, organization for dental care or prepaid limited health service organization, may be delivered or issued for delivery in this state, unless the form has been filed with and approved by the Commissioner.
(b) As to individual policies pursuant to paragraph (d) of subsection 2 of NRS 679B.220 or group insurance policies effectuated and delivered outside this state but covering persons resident in this state, the [group] certificates to be delivered or issued for delivery in this state must be filed, for informational purposes only, with the Commissioner at the request of the Commissioner.
2. As to group insurance policies to be issued to a group approved pursuant to NRS 688B.030 or 689B.026, no policies of group insurance may be marketed to a resident or employer of this State unless the policy and any form or certificate to be issued pursuant to the policy has been filed with and approved by the Commissioner.
3. Every filing made pursuant to the provisions of subsection 1 or 2 must be made not less than 45 days in advance of any delivery pursuant to subsection 1 or marketing pursuant to subsection 2. At the expiration of 45 days the form so filed shall be deemed approved unless prior thereto it has been affirmatively approved or disapproved by order of the Commissioner. Approval of any such form by the Commissioner constitutes a waiver of any unexpired portion of such waiting period. The Commissioner may extend by not more than an additional 30 days the period within which the Commissioner may so affirmatively approve or disapprove any such form, by giving notice to the insurer of the extension before expiration of the initial 45-day period. At the expiration of any such period as so extended, and in the absence of prior affirmative approval or disapproval, any such form shall be deemed approved. The Commissioner may at any time, after notice and for cause shown, withdraw any such approval.
4. Any order of the Commissioner disapproving any such form or withdrawing a previous approval must state the grounds therefor and the particulars thereof in such detail as reasonably to inform the insurer thereof.
κ2019 Statutes of Nevada, Page 1440 (CHAPTER 251, SB 482)κ
Any such withdrawal of a previously approved form is effective at the expiration of such a period, not less than 30 days after the giving of notice of withdrawal, as the Commissioner in such notice prescribes.
5. The Commissioner may, by order, exempt from the requirements of this section for so long as the Commissioner deems proper any insurance document or form or type thereof specified in the order, to which, in the opinion of the Commissioner, this section may not practicably be applied, or the filing and approval of which are, in the opinion of the Commissioner, not desirable or necessary for the protection of the public.
6. Appeals from orders of the Commissioner disapproving any such form or withdrawing a previous approval may be taken as provided in NRS 679B.310 to 679B.370, inclusive.
Sec. 56. NRS 687B.480 is hereby amended to read as follows:
687B.480 [1.] All health benefit plans must be made available in the manner required by 45 C.F.R. § 147.104.
[2. In addition to the requirements of subsection 1, any health benefit plan for individuals that is not purchased on the Silver State Health Insurance Exchange established by NRS 695I.210:
(a) Must be made available for purchase at any time during the calendar year;
(b) Is subject to a waiting period of not more than 90 days after the date on which the application for coverage was received;
(c) Is effective upon the first day of the month immediately succeeding the month in which the waiting period expires; and
(d) Is not retroactive to the date on which the application for coverage was received.]
Sec. 57. (Deleted by amendment.)
Sec. 58. NRS 690B.330 is hereby amended to read as follows:
690B.330 1. In each rating plan of an insurer that issues a policy of professional liability insurance to a practitioner licensed pursuant to chapter 630 or 633 of NRS, the insurer shall provide for a reduction in the premium for the policy if the practitioner implements a qualified risk management system. The amount of the reduction in the premium must be determined by the Commissioner in accordance with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive [.] , and section 45 of this act.
2. A qualified risk management system must comply with all requirements established by the Commissioner.
3. The Commissioner shall adopt regulations to:
(a) Establish the requirements for a qualified risk management system; and
(b) Carry out the provisions of this section.
4. The provisions of this section apply to all rating plans which an insurer that issues a policy of professional liability insurance to a practitioner licensed pursuant to chapter 630 or 633 of NRS files with the Commissioner on and after the effective date of the regulations adopted by the Commissioner pursuant to this section.
Sec. 59. NRS 690B.360 is hereby amended to read as follows:
690B.360 1. The Commissioner may collect all information which is pertinent to monitoring whether an insurer that issues professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS is complying with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive [.]
κ2019 Statutes of Nevada, Page 1441 (CHAPTER 251, SB 482)κ
insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS is complying with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive [.] , and section 45 of this act. Such information may include, without limitation:
(a) The amount of gross premiums collected with regard to each medical specialty;
(b) Information relating to loss ratios;
(c) Information reported pursuant to NRS 690B.260; and
(d) Information reported pursuant to NRS 679B.430 and 679B.440.
2. In addition to the information collected pursuant to subsection 1, the Commissioner may request any additional information from an insurer:
(a) Whose rates and credit utilization are materially different from other insurers in the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State;
(b) Whose credit utilization shows a substantial change from the previous year; or
(c) Whose information collected pursuant to subsection 1 indicates a potentially adverse trend.
3. If the Commissioner requests additional information from an insurer pursuant to subsection 2, the Commissioner may:
(a) Determine whether the additional information offers a reasonable explanation for the results described in paragraph (a), (b) or (c) of subsection 2; and
(b) Take any steps permitted by law that are necessary and appropriate to assure the ongoing stability of the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State.
4. On an ongoing basis, the Commissioner may analyze and evaluate the information collected pursuant to this section to determine trends in and measure the health of the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State.
5. If the Commissioner convenes a hearing pursuant to subsection 1 of NRS 690B.350 and determines that the market for professional liability insurance issued to any class, type or specialty of practitioner licensed pursuant to chapter 630, 631 or 633 of NRS is not competitive and that such insurance is unavailable or unaffordable for a substantial number of such practitioners, the Commissioner shall prepare and submit a report of the Commissioners findings and recommendations to the Director of the Legislative Counsel Bureau for transmittal to members of the Legislature.
Sec. 60. (Deleted by amendment.)
Sec. 61. 1. This section and sections 1 to 55, inclusive, 58, 59 and 60 of this act become effective upon passage and approval.
2. Sections 56 and 57 of this act become effective on October 1, 2019.
________
κ2019 Statutes of Nevada, Page 1442κ
Senate Bill No. 486Committee on Judiciary
CHAPTER 252
[Approved: May 29, 2019]
AN ACT relating to citations; revising provisions relating to the form of certain citations and the notice to appear that results from the acceptance by a person of a citation from a peace officer in certain circumstances; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Under existing law, a traffic citation is deemed a lawful complaint for the purposes of prosecution if the form of the citation: (1) includes an attestation charging commission of the offense alleged; or (2) is prepared electronically. (NRS 484A.620) Section 1 of this bill requires the attestation regardless of whether the citation was prepared electronically or otherwise. Under existing law, if a person refuses to sign a copy of certain citations issued by a peace officer who has halted the persons motor vehicle, the peace officer may deliver the citation to the person, and acceptance of such a copy is deemed personal service of a notice to appear in court to adjudicate the citation. (NRS 62C.070, 484A.630, 484A.720, 484A.760) Sections 2-5 of this bill revise the language to provide that when a person physically receives a copy of a citation, receipt of the citation shall be deemed personal service of a notice to appear in court to adjudicate the citation.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 484A.620 is hereby amended to read as follows:
484A.620 [If] Regardless of whether a citation is prepared electronically or by other means, if the form of citation [:
1. Includes] includes information whose truthfulness is attested as required for a complaint charging commission of the offense alleged in the citation to have been committed , [; or
2. Is prepared electronically,
Κ] then the citation when filed with a court of competent jurisdiction shall be deemed to be a lawful complaint for the purpose of prosecution pursuant to chapters 484A to 484E, inclusive, of NRS.
Sec. 2. NRS 484A.630 is hereby amended to read as follows:
484A.630 1. Whenever a person is halted by a peace officer for any violation of chapters 484A to 484E, inclusive, of NRS punishable as a misdemeanor and is not taken before a magistrate as required or permitted by NRS 484A.720 and 484A.730, the peace officer may prepare a traffic citation manually or electronically in the form of a complaint issuing in the name of The State of Nevada, containing a notice to appear in court, the name and address of the person, the state registration number of the persons vehicle, if any, the number of the persons drivers license, if any, the offense charged, including a brief description of the offense and the NRS citation, the time and place when and where the person is required to appear in court, and such other pertinent information as may be necessary. The peace officer shall sign the citation and deliver a copy of the citation to the person charged with the violation.
κ2019 Statutes of Nevada, Page 1443 (CHAPTER 252, SB 486)κ
with the violation. If the citation is prepared electronically, the peace officer shall sign the copy of the citation that is delivered to the person charged with the violation.
2. The time specified in the notice to appear must be at least 5 days after the alleged violation unless the person charged with the violation demands an earlier hearing.
3. The place specified in the notice to appear must be before a magistrate, as designated in NRS 484A.750.
4. The person charged with the violation may give his or her written promise to appear in court by signing or physically receiving at least one copy of the traffic citation prepared by the peace officer and thereupon the peace officer shall not take the person into physical custody for the violation. If the citation is prepared electronically, the peace officer shall indicate on the electronic record of the citation whether the person charged gave his or her written promise to appear. A copy of the citation that is signed by the person charged or the electronic record of the citation which indicates that the person charged gave his or her written promise to appear suffices as proof of service.
5. If the person charged with the violation refuses to sign a copy of the traffic citation but [accepts] physically receives a copy of the citation delivered by the peace officer:
(a) The [acceptance] receipt shall be deemed personal service of the notice to appear in court;
(b) A copy of the citation signed by the peace officer suffices as proof of service; and
(c) The peace officer shall not take the person into physical custody for the violation.
Sec. 3. NRS 484A.720 is hereby amended to read as follows:
484A.720 Whenever any person is halted by a peace officer for any violation of chapters 484A to 484E, inclusive, of NRS not amounting to a gross misdemeanor or felony, the person shall be taken without unnecessary delay before the proper magistrate, as specified in NRS 484A.750, in either of the following cases:
1. When the person demands an immediate appearance before a magistrate; or
2. In any other event when the person is issued a traffic citation by an authorized person and refuses to sign or [accept] take physical delivery of a copy of the traffic citation.
Sec. 4. NRS 484A.760 is hereby amended to read as follows:
484A.760 Whenever any person is taken into custody by a peace officer for the purpose of taking him or her before a magistrate or court as authorized or required in chapters 484A to 484E, inclusive, of NRS upon any charge other than a felony or the offenses enumerated in paragraphs (a) to (e), inclusive, of subsection 1 of NRS 484A.710, and no magistrate is available at the time of arrest, and there is no bail schedule established by the magistrate or court and no lawfully designated court clerk or other public officer who is available and authorized to accept bail upon behalf of the magistrate or court, the person must be released from custody upon the issuance to the person of a misdemeanor citation or traffic citation and the person signing a promise to appear, as provided in NRS 171.1773 or 484A.630, respectively, or [accepting] physically receiving a copy of the traffic citation, as provided in NRS 484A.630.
κ2019 Statutes of Nevada, Page 1444 (CHAPTER 252, SB 486)κ
Sec. 5. NRS 62C.070 is hereby amended to read as follows:
62C.070 1. If a child is stopped by a peace officer for a violation of any traffic law or ordinance which is punishable as a misdemeanor, the peace officer may prepare and issue a traffic citation pursuant to the same criteria as would apply to an adult violator. The peace officer shall deliver a copy of the citation to the child.
2. If a child who is issued a traffic citation executes a written promise to appear in court by signing the citation, the peace officer shall not take the child into physical custody for the violation.
3. If a child who is issued a traffic citation refuses to execute a written promise to appear in court but [accepts] physically receives a copy of the citation delivered by the peace officer:
(a) The [acceptance] receipt shall be deemed personal service of the notice to appear in court;
(b) A copy of the citation signed by the peace officer suffices as proof of service; and
(c) The peace officer shall not take the child into physical custody for the violation.
________
Senate Bill No. 491Senators Washington, Denis; Brooks, Cannizzaro, Dondero Loop, Ratti, Spearman and Woodhouse
CHAPTER 253
[Approved: May 29, 2019]
AN ACT relating to vehicles; revising provisions relating to obtaining a salvage title or a nonrepairable vehicle certificate for a vehicle that is the object of certain insurance settlements or donations; revising provisions relating to the issuance of a salvage title or a nonrepairable vehicle certificate by the Department of Motor Vehicles; revising provisions relating to a lien on certain vehicles; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law requires the owner of a motor vehicle who enters into a settlement with an insurance company in which the motor vehicle is determined to be a salvage vehicle to endorse the certificate of title of the motor vehicle and forward the certificate of title to the insurance company within 30 days after accepting the settlement. The insurance company is required to forward an application for a salvage title for the motor vehicle to the Department of Motor Vehicles within 180 days. If the owner of the motor vehicle does not provide the endorsed certificate of title to the insurance company within 30 days, the insurance company must forward an application for a salvage title within 180 days after the expiration of the 30-day period. (NRS 487.800) Section 5 of this bill instead requires the insurance company, in a case where the owner has not provided the endorsed certificate of title within the 30-day period, to forward an application for a salvage title to the Department as soon as practicable.
κ2019 Statutes of Nevada, Page 1445 (CHAPTER 253, SB 491)κ
Section 5 also provides that the Department shall issue a salvage title or a nonrepairable vehicle certificate in certain circumstances to a: (1) salvage pool who obtains the vehicle from an insurance company and the vehicle is abandoned at the facility of the salvage pool for more than 30 days; and (2) charitable organization that obtains a vehicle through a donation and is unable to obtain an endorsed certificate of title. Section 6 of this bill makes a conforming change and requires the Department to charge a fee for the issuance of such a salvage title. (NRS 487.810)
Existing law authorizes the Department, when an applicant is unable to satisfy the Department by the submission of various documents that the applicant is entitled to a salvage title, to issue the salvage title if the applicant files a bond with the Department and allows the Department to inspect the vehicle and conduct a search through certain national crime information databases. The bond must be in an amount equal to one and one-half times the value of the vehicle. (NRS 487.820) Section 7 of this bill revises the amount of the required bond to 25 percent of the value of the vehicle.
Existing law provides that certain operators of storage facilities who store a motor vehicle, boat or personal watercraft have a lien upon the motor vehicle, boat or personal watercraft for the sum due for certain costs, and certain remedies are provided. (NRS 108.4763) Section 8.5 of this bill adds a trailer used to transport such a motor vehicle, boat or personal watercraft to the list of personal property that such a lien may include. Section 8.3 of this bill makes a conforming change.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Sections 1-4. (Deleted by amendment.)
Sec. 5. NRS 487.800 is hereby amended to read as follows:
487.800 1. When an insurance company acquires a motor vehicle as a result of a settlement in which the motor vehicle is determined to be a salvage vehicle, the owner of the motor vehicle who is relinquishing ownership of the motor vehicle shall endorse the certificate of title of the motor vehicle and forward the endorsed certificate of title to the insurance company within 30 days after accepting the settlement from the insurance company. [The] Except as otherwise provided in subsection 2, the insurance company or its authorized agent shall forward the endorsed certificate of title, together with an application for a salvage title or nonrepairable vehicle certificate, to the state agency within 180 days after receipt of the endorsed certificate of title.
2. If the owner of the motor vehicle who is relinquishing ownership does not provide the endorsed certificate of title to the insurance company within 30 days after accepting the settlement pursuant to subsection 1, the insurance company shall, [within 180 days after the expiration of that 30-day period,] as soon as practicable, forward an application for a salvage title or nonrepairable vehicle certificate to the state agency. [The] Except as otherwise provided in subsections 10 and 11, the state agency shall issue a salvage title or nonrepairable vehicle certificate to the insurance company for the vehicle upon receipt of:
(a) The application;
(b) A motor vehicle inspection certificate signed by a representative of the Department or, as one of the authorized agents of the Department, by a peace officer, dealer, rebuilder, automobile wrecker, operator of a salvage pool or garage operator;
κ2019 Statutes of Nevada, Page 1446 (CHAPTER 253, SB 491)κ
(c) Documentation that the insurance company has made at least two written attempts by certified mail, return receipt requested, or by use of a delivery service with a tracking system, to obtain the endorsed certificate of title; and
(d) Proof satisfactory to the state agency that the certificate of title was required to be surrendered to the insurance company as part of the settlement.
3. Except as otherwise provided in subsections 1 and 2, before any ownership interest in a salvage vehicle, except a nonrepairable vehicle, may be transferred, the owner or other person to whom the motor vehicle is titled:
(a) If the person has possession of the certificate of title to the vehicle, shall forward the endorsed certificate of title, together with an application for salvage title to the state agency within 30 days after the vehicle becomes a salvage vehicle.
(b) If the person does not have possession of the certificate of title to the vehicle and the certificate of title is held by a lienholder, shall notify the lienholder within 10 days after the vehicle becomes a salvage vehicle that the vehicle has become a salvage vehicle. The lienholder shall, within 30 days after receiving such notice, forward the certificate of title, together with an application for salvage title, to the state agency.
4. An insurance company or its authorized agent may sell a vehicle for which a total loss settlement has been made with the properly endorsed certificate of title if the total loss settlement resulted from the theft of the vehicle and the vehicle, when recovered, was not a salvage vehicle.
5. An owner who has determined that a vehicle is a total loss salvage vehicle may sell the vehicle with the properly endorsed certificate of title obtained pursuant to this section, without making any repairs to the vehicle, to a salvage pool, automobile auction, rebuilder, automobile wrecker or a new or used motor vehicle dealer.
6. Except with respect to a nonrepairable vehicle, if a salvage vehicle is rebuilt and restored to operation, the vehicle may not be licensed for operation, displayed or offered for sale, or the ownership thereof transferred, until there is submitted to the state agency with the prescribed salvage title, an appropriate application, other documents, including, without limitation, an affidavit from the state agency attesting to the inspection and verification of the vehicle identification number and the identification numbers, if any, for parts used to repair the motor vehicle and fees required, together with a certificate of inspection completed pursuant to NRS 487.860.
7. Except with respect to a nonrepairable vehicle, if a total loss insurance settlement between an insurance company and any person results in the retention of the salvage vehicle by that person, before the execution of the total loss settlement, the insurance company or its authorized agent shall:
(a) Obtain, upon an application for salvage title, the signature of the person who is retaining the salvage vehicle;
(b) Append to the application for salvage title the certificate of title to the motor vehicle or an affidavit stating that the original certificate of title has been lost; and
(c) Apply to the state agency for a salvage title on behalf of the person who is retaining the salvage vehicle.
8. If the state agency determines that a salvage vehicle retained pursuant to subsection 6 is titled in another state or territory of the United States, the state agency shall notify the appropriate authority of that state or territory that the owner has retained the salvage vehicle.
κ2019 Statutes of Nevada, Page 1447 (CHAPTER 253, SB 491)κ
States, the state agency shall notify the appropriate authority of that state or territory that the owner has retained the salvage vehicle.
9. A person who retains a salvage vehicle pursuant to subsection 7 may not transfer any ownership interest in the vehicle unless he or she has received a salvage title.
10. When a salvage pool, at the request of an insurance company, obtains possession of a vehicle that is the subject of an insurance claim and a total loss claim is not paid by the insurance company for the vehicle, the salvage pool, after the vehicle has been abandoned at the facility of the salvage pool for not less than 30 days, may apply for a salvage title or a nonrepairable vehicle certificate. The state agency shall issue a salvage title or nonrepairable vehicle certificate to the salvage pool upon receipt of:
(a) The application;
(b) A motor vehicle inspection certificate signed by a representative of the Department or, as one of the authorized agents of the Department, by a peace officer, dealer, rebuilder, automobile wrecker, operator of a salvage pool or garage operator; and
(c) Documentation that the salvage pool has made at least two written attempts by certified mail, return receipt requested, or by use of a delivery service with a tracking system addressed to the owner of the vehicle and any known lienholder to have the vehicle removed from the facility of the salvage pool.
11. When an organization that the Secretary of the Treasury has determined to be tax exempt pursuant to the provisions of section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), obtains a vehicle by donation and the organization is unable to obtain the endorsed certificate of title, the organization may apply for a salvage title or a nonrepairable vehicle certificate. The state agency shall issue a salvage title or nonrepairable vehicle certificate to the organization upon receipt of:
(a) The application;
(b) A motor vehicle inspection certificate signed by a representative of the Department or, as one of the authorized agents of the Department, by a peace officer, dealer, rebuilder, automobile wrecker, operator of a salvage pool or garage operator; and
(c) Evidence satisfactory to the Department that the organization made at least two written attempts, mailed to the address of the previous owner of the vehicle, to obtain the endorsed certificate of title.
Sec. 6. NRS 487.810 is hereby amended to read as follows:
487.810 1. The state agency may issue a salvage title for a vehicle, which contains a brief description of the vehicle, including, insofar as data may exist with respect to the vehicle, the make, type, serial number and motor number, or any other number of the vehicle, upon application, to:
(a) The owner of the vehicle;
(b) The person to whom the vehicle is titled;
(c) An insurance company that acquires the vehicle as a salvage vehicle pursuant to subsection 1 of NRS 487.800; [or]
(d) A lienholder who acquires title to the vehicle [.] ;
(e) A salvage pool who acquires the vehicle pursuant to subsection 10 of NRS 487.800; or
(f) An organization that acquires the vehicle pursuant to subsection 11 of NRS 487.800.
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2. A properly endorsed title, together with a disclosure of mileage, as required pursuant to the provisions of 49 U.S.C. §§ 32701 et seq. and 49 C.F.R. § 580.5, must be submitted with the application for salvage title.
3. Within 2 days after receiving all necessary documents, the state agency shall issue a salvage title for the vehicle.
4. Except as otherwise provided in this subsection, the state agency shall charge and collect a fee of $10 for the issuance of a salvage title pursuant to this section. The state agency shall not charge a fee for the issuance of a salvage title to an automobile wrecker licensed in this State. Fees collected by the state agency pursuant to this subsection must be deposited with the State Treasurer for credit to the Revolving Account for the Issuance of Salvage Titles created by NRS 487.825.
5. Ownership interest in a salvage vehicle may not be transferred unless a salvage title has been issued by the state agency for the vehicle.
6. Possession of a salvage title does not entitle a person to dismantle, scrap, process or wreck any vehicle in this State unless the person holds a license issued pursuant to NRS 487.050.
7. The Department shall not issue a salvage title for a nonrepairable vehicle.
Sec. 7. NRS 487.820 is hereby amended to read as follows:
487.820 1. Except as otherwise provided in subsection 2 , 10 or 11 of NRS 487.800, if the applicant for a salvage title is unable to furnish the certificates of title and registration last issued for the vehicle, the state agency may accept the application, examine the circumstances of the case and require the filing of suitable affidavits or other information or documents. If satisfied that the applicant is entitled to a salvage title, the state agency may issue the salvage title.
2. No duplicate certificate of title or registration may be issued when a salvage title is applied for, and no fees are required for the affidavits of any stolen, lost or damaged certificate, or duplicates thereof, unless the vehicle is subsequently registered.
3. If an applicant is unable to satisfy the state agency that the applicant is entitled to a salvage title pursuant to subsection 1, the applicant may obtain a salvage title from the state agency by:
(a) Filing a bond with the state agency that meets the requirements of subsection 5;
(b) Allowing the state agency to inspect the vehicle to verify the vehicle identification number and the identification numbers, if any, for parts used to repair the vehicle; and
(c) Authorizing the state agency to conduct a search through any national crime information system, including, without limitation, the:
(1) National Crime Information Center, as defined in NRS 179A.061; and
(2) National Motor Vehicle Title Information System of the United States Department of Justice.
4. Any person damaged by the issuance of the salvage title pursuant to subsection 3 has a right of action to recover on the bond for any breach of its conditions, except the aggregate liability of the surety to all persons must not exceed the amount of the bond. The state agency shall return the bond, and any deposit accompanying it, 3 years after the bond was filed with the state agency, except that the state agency must not return the bond if the state agency has been notified of the pendency of an action to recover on the bond.
κ2019 Statutes of Nevada, Page 1449 (CHAPTER 253, SB 491)κ
5. The bond required pursuant to subsection 3 must be:
(a) In a form prescribed by the state agency;
(b) Executed by the applicant as principal and by a corporation qualified under the laws of this State as surety;
(c) In an amount equal to [one and one-half times] 25 percent of the value of the vehicle, as determined by the state agency; and
(d) Conditioned to indemnify any:
(1) Prior owner or lienholder of the vehicle, and his or her successors in interest;
(2) Subsequent purchaser of the vehicle, and his or her successors in interest; or
(3) Person acquiring a security interest in the vehicle, and his or her successors in interest,
Κ against any expense, loss or damage because of the issuance of the salvage title or because of any defect in or undisclosed security interest in the applicants right or title to the vehicle or the applicants interest in the vehicle.
6. A right of action does not exist in favor of any person by reason of any action or failure to act on the part of the state agency or any officer or employee thereof in carrying out the provisions of subsections 3, 4 and 5, or in giving or failing to give any information concerning the legal ownership of a vehicle or the existence of a salvage title obtained pursuant to subsection 3.
Sec. 8. (Deleted by amendment.)
Sec. 8.3. NRS 108.4743 is hereby amended to read as follows:
108.4743 Personal property means any property not affixed to land and includes, without limitation, merchandise, furniture, household items, motor vehicles, boats , [and] personal watercraft [.] and trailers used to transport motor vehicles, boats or personal watercraft.
Sec. 8.5. NRS 108.4763 is hereby amended to read as follows:
108.4763 1. After the notice of the lien is mailed by the owner, if the occupant fails to pay the total amount due by the date specified in the notice, the owner may:
(a) Enter the storage space and remove the personal property within it to a safe place.
(b) Dispose of, but may not sell, any protected property contained in the storage space in accordance with the provisions of subsection 5 if the owner has actual knowledge of such protected property. If the owner disposes of the protected property in accordance with the provisions of subsection 5, the owner is not liable to the occupant or any other person who claims an interest in the protected property.
(c) If the personal property upon which the lien is claimed is a motor vehicle, boat , [or] personal watercraft [,] or trailer used to transport a motor vehicle, boat or personal watercraft, and rent and other charges related to such property remain unpaid or unsatisfied for 60 days, have the property towed by any tow car operator subject to the jurisdiction of the Nevada Transportation Authority. If a motor vehicle, boat , [or] personal watercraft or trailer is towed pursuant to this paragraph, the owner is not liable for any damages to such property once the tow car operator takes possession of the motor vehicle, boat , [or] personal watercraft [.] or trailer.
2. The owner shall send to the occupant a notice of a sale to satisfy the lien by verified mail or, if available, by electronic mail at the last known address of the occupant and at the alternative address provided by the occupant in the rental agreement at least 14 days before the sale.
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address of the occupant and at the alternative address provided by the occupant in the rental agreement at least 14 days before the sale. If the notice is sent by electronic mail and no confirmation of receipt is received, the owner shall also send such notice to the occupant by verified mail at the last known address of the occupant. The notice must contain:
(a) A statement that the occupant may no longer use the storage space and no longer has access to the occupants personal property stored therein;
(b) A statement that the personal property of the occupant is subject to a lien and the amount of the lien;
(c) A statement that the personal property will be sold or disposed of to satisfy the lien on a date specified in the notice, unless the total amount of the lien is paid or the occupant executes and returns by verified mail, the declaration in opposition to the sale; and
(d) A statement of the provisions of subsection 3.
3. Proceeds of the sale over the amount of the lien and the costs of the sale must be retained by the owner and may be reclaimed by the occupant or the occupants authorized representative at any time up to 1 year from the date of the sale.
4. The notice of the sale must also contain a blank copy of a declaration in opposition to the sale to be executed by the occupant if the occupant wishes to do so.
5. The owner may dispose of protected property contained in the storage space by taking the following actions, in the following order of priority, until the protected property is disposed of:
(a) Contacting the occupant and returning the protected property to the occupant.
(b) Contacting the secondary contact listed by the occupant in the rental agreement and returning the protected property to the secondary contact.
(c) Contacting any appropriate state or federal authorities, including, without limitation, any appropriate governmental agency, board or commission listed by the occupant in the rental agreement pursuant to NRS 108.4755, ascertaining whether such authorities will accept the protected property and, if such authorities will accept the protected property, ensuring that the protected property is delivered to such authorities.
(d) Destroying the protected property in an appropriate manner which is authorized by law and which ensures that any confidential information contained in the protected property is completely obliterated and may not be examined or accessed by the public.
Sec. 9. This act becomes effective on July 1, 2019.
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