NRS: CHAPTER 599B - SOLICITATION BY TELEPHONE

[Rev. 6/29/2024 4:35:10 PM--2023]

CHAPTER 599B - SOLICITATION BY TELEPHONE

GENERAL PROVISIONS

NRS 599B.005 Legislative findings and declarations.

NRS 599B.010 Definitions.

NRS 599B.015 Duties of Attorney General and Commissioner.

NRS 599B.025 Regulations; rules of practice.

NRS 599B.030 Remedies, duties and prohibitions not exclusive.

REGISTRATION

NRS 599B.080 Registration required.

NRS 599B.090 Registration of seller: Application; confidentiality of certain information; security; fee.

NRS 599B.100 Registration of seller: Form and amount of security; release of security.

NRS 599B.105 Rights and remedies of injured consumer; resolution by Unit of claims against security; regulations.

NRS 599B.110 Registration of seller: Disclosure of certain convictions, judgments and orders concerning responsible persons.

NRS 599B.115 Registration of seller: Work card required for applicant and certain other persons; exceptions; issuance and renewal of work card; fingerprints.

NRS 599B.120 Registration of salesperson: Application; statement of seller; fee. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 599B.120 Registration of salesperson: Application; statement of seller; fee. [Effective on the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 599B.125 Statement regarding payment of child support by applicant for registration certificate; grounds for denial of registration certificate; duty of Unit. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 599B.127 Use of criminal history in determining whether to issue registration.

NRS 599B.130 Issuance and display of registration certificate.

NRS 599B.140 Renewal of registration.

NRS 599B.141 Application for renewal of registration required to include information relating to state business license; renewal of registration prohibited in certain circumstances.

NRS 599B.143 Suspension of registration certificate for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of registration certificate. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 599B.145 Payment and refund of fees for registration.

PRACTICE

NRS 599B.150 Association of salesperson with more than one seller prohibited; seller to cooperate in investigations.

NRS 599B.160 Submission to Unit of change in material or presentation used in solicitation.

NRS 599B.170 Required disclosures by salesperson; restrictions on representations regarding premiums.

NRS 599B.180 Representation that consumer is or may be eligible to receive gift, premium, bonus or prize.

NRS 599B.185 Required disclosures when registrant solicits sale of investments.

NRS 599B.187 Requirements when registrant uses chance promotion.

NRS 599B.190 Issuance of refund or replacement of goods or services; notice to consumer.

NRS 599B.195 Delivery of goods or services must be accompanied by form.

NRS 599B.197 Recovery service: Performance required before charging or receiving money from consumer.

NRS 599B.200 Disclosure of purchaser prohibited; exceptions.

ENFORCEMENT

NRS 599B.210 Appointment of Secretary of State as agent for service of process; procedure for and effect of service; fee.

NRS 599B.213 Jurisdiction and authority of Attorney General.

NRS 599B.215 Action by Attorney General.

NRS 599B.225 Attorney General may apply for equitable relief.

NRS 599B.235 Attorney General may accept assurance of discontinuance of violation; proof of violation of assurance is prima facie evidence of violation of applicable law in civil action.

NRS 599B.245 Attorney General may institute legal proceeding against person believed to have violated provisions of this chapter; remedies; civil penalty for violation of court order or injunction.

NRS 599B.255 Willful violations: Prosecution; criminal penalties; forfeitures.

NRS 599B.260 Deposit and use of money collected pursuant to this chapter.

SOLICITATION OF ELDERLY PERSON OR PERSON WITH A DISABILITY

NRS 599B.270 Definitions.

NRS 599B.280 Additional penalty.

NRS 599B.290 Deposit and use of money collected from civil penalties imposed in action brought by district attorney.

NRS 599B.300 Civil action.

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GENERAL PROVISIONS

NRS 599B.005 Legislative findings and declarations.

1. The Legislature finds and declares that:

(a) The sale of goods or services or the solicitation of donations by telephone has a significant impact upon the economy and well-being of this state and its local communities.

(b) Many legitimate solicitors by telephone merit certain protections pursuant to the laws of this state.

(c) Certain unscrupulous practices by persons soliciting donations or the sale of goods or services by telephone are contrary to good business practices and have caused consumers to suffer substantial losses because of misrepresentation, the lack of complete information relating to goods, services and the persons initiating or causing the solicitation by telephone, and the lack of delivery of the goods and services purchased.

2. It is the intent of the Legislature to:

(a) Provide each consumer with information necessary to make an intelligent decision relating to donations or offers of sale;

(b) Educate and assist the public to distinguish between honest and dishonest practices of solicitation by telephone;

(d) Prohibit representations that tend to be misleading;

(e) Ensure, foster and encourage competition and fair dealings among sellers by requiring sellers to disclose certain information adequately; and

(f) Protect the integrity of the industry relating to solicitation by telephone.

3. As the provisions of this chapter are necessary to protect the public welfare, it is also the intent of the Legislature that the provisions of this chapter be liberally construed to effectuate its purposes.

(Added to NRS by 1993, 2095; A 1995, 931)

NRS 599B.010 Definitions. As used in this chapter, unless the context otherwise requires:

1. “Chance promotion” means any plan in which premiums are distributed by random or chance selection.

2. “Commissioner” means the Commissioner of Consumer Affairs.

3. “Consumer” means a person who is solicited by a seller or salesperson.

4. “Donation” means a promise, grant or pledge of money, credit, property, financial assistance or other thing of value given in response to a solicitation by telephone, including, but not limited to, a payment or promise to pay in consideration for a performance, event or sale of goods or services. The term does not include volunteer services, government grants or contracts or a payment by members of any organization of membership fees, dues, fines or assessments or for services rendered by the organization to those persons, if:

(a) The fees, dues, fines, assessments or services confer a bona fide right, privilege, professional standing, honor or other direct benefit upon the member; and

(b) Membership in the organization is not conferred solely in consideration for making a donation in response to a solicitation.

5. “Goods or services” means any property, tangible or intangible, real, personal or mixed, and any other article, commodity or thing of value.

6. “Premium” includes any prize, bonus, award, gift or any other similar inducement or incentive to purchase.

7. “Recovery service” means a business or other practice whereby a person represents or implies that he or she will, for a fee, recover any amount of money that a consumer has provided to a seller or salesperson pursuant to a solicitation governed by the provisions of this chapter.

8. “Salesperson” means any person:

(a) Employed or authorized by a seller to sell, or to attempt to sell, goods or services by telephone;

(b) Retained by a seller to provide consulting services relating to the management or operation of the seller’s business; or

(1) In the course of a solicitation by telephone; or

(2) For the purpose of verifying, changing or confirming an order,

Ê except that a person is not a salesperson if his or her only function is to identify a consumer by name only and he or she immediately refers the consumer to a salesperson.

9. Except as otherwise provided in subsection 10, “seller” means any person who, on his or her own behalf, causes or attempts to cause a solicitation by telephone to be made through the use of one or more salespersons or any automated dialing announcing device under any of the following circumstances:

(a) The person initiates contact by telephone with a consumer and represents or implies:

(1) That a consumer who buys one or more goods or services will receive additional goods or services, whether or not of the same type as purchased, without further cost, except for actual postage or common carrier charges;

(2) That a consumer will or has a chance or opportunity to receive a premium;

(3) That the items for sale are gold, silver or other precious metals, diamonds, rubies, sapphires or other precious stones, or any interest in oil, gas or mineral fields, wells or exploration sites or any other investment opportunity;

(4) That the product offered for sale is information or opinions relating to sporting events;

(5) That the product offered for sale is the services of a recovery service; or

(6) That the consumer will receive a premium or goods or services if he or she makes a donation;

(b) The solicitation by telephone is made by the person in response to inquiries from a consumer generated by a notification or communication sent or delivered to the consumer that represents or implies:

(1) That the consumer has been in any manner specially selected to receive the notification or communication or the offer contained in the notification or communication;

(2) That the consumer will receive a premium if the recipient calls the person;

(3) That if the consumer buys one or more goods or services from the person, the consumer will also receive additional or other goods or services, whether or not the same type as purchased, without further cost or at a cost that the person represents or implies is less than the regular price of the goods or services;

(4) That the product offered for sale is the services of a recovery service; or

(5) That the consumer will receive a premium or goods or services if he or she makes a donation; or

(c) The solicitation by telephone is made by the person in response to inquiries generated by advertisements that represent or imply that the person is offering to sell any:

(1) Gold, silver or other metals, including coins, diamonds, rubies, sapphires or other stones, coal or other minerals or any interest in oil, gas or other mineral fields, wells or exploration sites, or any other investment opportunity;

(2) Information or opinions relating to sporting events; or

(3) Services of a recovery service.

10. “Seller” does not include:

(a) A person licensed pursuant to chapter 90 of NRS when soliciting offers, sales or purchases within the scope of his or her license.

(b) A person licensed pursuant to chapter 119A, 119B, 624, 645 or 696A of NRS when soliciting sales within the scope of his or her license.

(c) A person licensed as an insurance broker, agent or solicitor when soliciting sales within the scope of his or her license.

(d) Any solicitation of sales made by the publisher of a newspaper or magazine or by an agent of the publisher pursuant to a written agreement between the agent and publisher.

(e) A broadcaster soliciting sales who is licensed by any state or federal authority, if the solicitation is within the scope of the broadcaster’s license.

(f) A person who solicits a donation from a consumer when:

(1) The person represents or implies that the consumer will receive a premium or goods or services with an aggregated fair market value of 2 percent of the donation or $50, whichever is less; or

(2) The consumer provides a donation of $50 or less in response to the solicitation.

(g) A charitable organization which is registered or approved to conduct a lottery pursuant to chapter 462 of NRS.

(h) A public utility or motor carrier which is regulated pursuant to chapter 704 or 706 of NRS, or by an affiliate of such a utility or motor carrier, if the solicitation is within the scope of its certificate or license.

(i) A utility which is regulated pursuant to chapter 710 of NRS, or by an affiliate of such a utility.

(j) A person soliciting the sale of books, recordings, videocassettes, software for computer systems or similar items through:

(1) An organization whose method of sales is governed by the provisions of Part 425 of Title 16 of the Code of Federal Regulations relating to the use of negative option plans by sellers in commerce;

(2) The use of continuity plans, subscription arrangements, arrangements for standing orders, supplements, and series arrangements pursuant to which the person periodically ships merchandise to a consumer who has consented in advance to receive the merchandise on a periodic basis and has the opportunity to review the merchandise for at least 10 days and return it for a full refund within 30 days after it is received; or

(3) An arrangement pursuant to which the person ships merchandise to a consumer who has consented in advance to receive the merchandise and has the opportunity to review the merchandise for at least 10 days and return it for a full refund within 30 days after it is received.

(k) A person who solicits sales by periodically publishing and delivering a catalog to consumers if the catalog:

(1) Contains a written description or illustration of each item offered for sale and the price of each item;

(2) Includes the business address of the person;

(3) Includes at least 24 pages of written material and illustrations;

(4) Is distributed in more than one state; and

(5) Has an annual circulation by mailing of not less than 250,000.

(l) A person soliciting without the intent to complete and who does not complete, the sales transaction by telephone but completes the sales transaction at a later face-to-face meeting between the solicitor and the consumer, if the person, after soliciting a sale by telephone, does not cause another person to collect the payment from or deliver any goods or services purchased to the consumer.

(m) Any commercial bank, bank holding company, subsidiary or affiliate of a bank holding company, trust company, savings and loan association, savings bank, credit union, industrial loan company, personal property broker, consumer finance lender, commercial finance lender, or insurer subject to regulation by an official or agency of this State or of the United States, if the solicitation is within the scope of the certificate or license held by the entity.

(n) A person holding a certificate of authority issued pursuant to chapter 452 of NRS when soliciting sales within the scope of the certificate.

(o) A person licensed pursuant to chapter 689 of NRS when soliciting sales within the scope of his or her license.

(p) A person soliciting the sale of services provided by a video service provider subject to regulation pursuant to chapter 711 of NRS.

(q) A person soliciting the sale of agricultural products, if the solicitation is not intended to and does not result in a sale of more than $100 that is to be delivered to one address. As used in this paragraph, “agricultural products” has the meaning ascribed to it in NRS 587.290.

(r) A person who has been operating, for at least 2 years, a retail business establishment under the same name as that used in connection with the solicitation of sales by telephone if, on a continuing basis:

(1) Goods are displayed and offered for sale or services are offered for sale and provided at the person’s business establishment; and

(2) At least 50 percent of the person’s business involves the buyer obtaining such goods or services at the person’s business establishment.

(s) A person soliciting only the sale of telephone answering services to be provided by the person or his or her employer.

(t) A person soliciting a transaction regulated by the Commodity Futures Trading Commission, if:

(1) The person is registered with or temporarily licensed by the Commission to conduct that activity pursuant to the Commodity Exchange Act, 7 U.S.C. §§ 1 et seq.; and

(2) The registration or license has not expired or been suspended or revoked.

(u) A person who contracts for the maintenance or repair of goods previously purchased from the person:

(1) Making the solicitation; or

(2) On whose behalf the solicitation is made.

(v) A person to whom a license to operate an information service or a nonrestricted gaming license, which is current and valid, has been issued pursuant to chapter 463 of NRS when soliciting sales within the scope of his or her license.

(w) A person who solicits a previous customer of the business on whose behalf the call is made if the person making the call:

(1) Does not offer the customer any premium in connection with the sale;

(2) Is not selling an investment or an opportunity for an investment that is not registered with any state or federal authority; and

(3) Is not regularly engaged in telephone sales.

(x) A person who solicits the sale of livestock.

(y) An issuer which has a class of securities that is listed on the New York Stock Exchange, the American Stock Exchange or the National Market System of the National Association of Securities Dealers Automated Quotation System.

(z) A subsidiary of an issuer that qualifies for exemption pursuant to paragraph (y) if at least 60 percent of the voting power of the shares of the subsidiary is owned by the issuer.

11. “Unit” means the Consumer Affairs Unit of the Department of Business and Industry.

(Added to NRS by 1989, 1379; A 1991, 2039; 1993, 1802, 2100; 1995, 579, 932; 1997, 1119, 3202, 3208; 2007, 1394; 2009, 2723; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501; 2021, 2745)

NRS 599B.015 Duties of Attorney General and Commissioner.

1. The Attorney General shall provide opinions for the Unit on all questions of law relating to the construction, interpretation or administration of this chapter.

2. The Commissioner shall determine whether a person is required to register pursuant to the provisions of this chapter. In making that determination, the Commissioner shall consider the definitions, intent, findings and declarations set forth in this chapter.

(Added to NRS by 1993, 2096; A 1997, 2018; 2001, 361; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.025 Regulations; rules of practice.

1. The Attorney General may adopt regulations establishing standards of conduct for registrants and any other regulations necessary to exercise the powers and carry out the duties of the Attorney General as set forth in this chapter.

2. The Commissioner and the Attorney General shall jointly adopt rules of practice establishing a procedure for processing complaints received concerning sellers and salespersons, whether or not the sellers and salespersons are registered pursuant to this chapter. The rules of practice:

(a) Must provide for the sharing of information and for the initial review of complaints by the Attorney General before mediation by the Commissioner; and

(b) May provide procedures for mediation by the Commissioner after initial review by the Attorney General.

3. The Commissioner may adopt rules of practice necessary to administer and carry out the provisions of this chapter pertaining to the registration of sellers and salespersons. The rules of practice must not restrict the powers and duties of the Attorney General as set forth in this chapter.

(Added to NRS by 1993, 2100; A 2009, 2727; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.030 Remedies, duties and prohibitions not exclusive. The remedies, duties and prohibitions of this chapter are not exclusive and are in addition to any other remedies provided by law.

(Added to NRS by 1989, 1389)

REGISTRATION

NRS 599B.080 Registration required. It is unlawful for any person to do business as a seller or salesperson in this State without being registered with the Unit pursuant to the provisions of this chapter. For the purposes of this section, a person does business as a seller or salesperson in this State if he or she solicits or causes to be solicited a sale of goods or services or a donation from a location in this State or solicits persons in this State from a location outside this State.

(Added to NRS by 1989, 1382; A 1993, 2104; 1995, 936; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.090 Registration of seller: Application; confidentiality of certain information; security; fee.

1. An applicant for registration as a seller must submit to the Unit, in such form as it prescribes, a written application for registration. The application must:

(a) Set forth the name of the applicant, including each name under which he or she intends to do business;

(b) Set forth the name of any parent or affiliated entity that:

(1) Will engage in a business or other transaction with the consumer relating to any sale or donation solicited by the applicant; or

(2) Accepts responsibility for any statement or act of the applicant relating to any sale or donation solicited by the applicant;

(c) Set forth the complete street address of each location, designating the principal location, from which the applicant will be doing business;

(d) Contain a list of all telephone numbers to be used by the applicant, with the address where each telephone using these numbers will be located;

(e) Set forth the name and address of each:

(1) Principal officer, director, trustee, shareholder, owner or partner of the applicant, and of each other person responsible for the management of the business of the applicant;

(2) Person responsible for a location from which the applicant will do business; and

(3) Salesperson to be employed by or otherwise associated with the applicant;

(f) Be accompanied by a copy of any:

(1) Script, outline or presentation the applicant will require a salesperson to use when soliciting or, if no such document is used, a statement to that effect;

(2) Sales or donation information or literature to be provided by the applicant to a salesperson, or of which the applicant will inform the salesperson; and

(3) Sales or donation information or literature to be provided by the applicant to a consumer in connection with any solicitation;

(g) If the applicant is a corporation, be signed by an officer of the corporation; and

(h) If the applicant is a natural person, be completed personally by the applicant.

2. Any material submitted pursuant to paragraph (f) of subsection 1 is submitted for the records of the Unit and not for the approval of the Unit.

3. The information provided pursuant to paragraph (f) of subsection 1 by an applicant for registration as a seller is confidential and may only be released to a law enforcement agency, to a court of competent jurisdiction, by order of a court of competent jurisdiction or pursuant to NRS 239.0115.

4. If the applicant is other than a natural person, or if any parent or affiliated entity is identified pursuant to paragraph (b) of subsection 1, the applicant must, for itself and any such entity, identify its place of organization and:

(a) In the case of a partnership, provide a copy of any written partnership agreement; or

(b) In the case of a corporation, provide a copy of its articles of incorporation and bylaws.

5. An application filed pursuant to this section must be verified and accompanied by:

(a) A bond, letter of credit or certificate of deposit satisfying the requirements of NRS 599B.100;

(b) A fee for registration in the amount of $6,000;

(c) If subsection 6 applies, the additional bond, letter of credit or certificate of deposit and the additional fee required by that subsection; and

(d) A copy of:

(1) The work card issued to the seller pursuant to subsection 1 of NRS 599B.115, if the seller is required to obtain a work card; and

(2) The work cards of any other persons associated with the seller who are required to obtain work cards pursuant to subsection 2 of NRS 599B.115.

6. If an applicant intends to do business under any assumed or fictitious name, he or she must, for each such name:

(a) File an additional bond, letter of credit or certificate of deposit satisfying the requirements of NRS 599B.100; and

(b) Pay an additional fee for registration in the amount of $6,000.

(Added to NRS by 1989, 1382; A 1991, 984; 1993, 2104; 1995, 936; 1997, 3206; 1999, 1904; 2007, 2121; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.100 Registration of seller: Form and amount of security; release of security.

1. An application filed pursuant to NRS 599B.090 must be accompanied by:

(a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;

(b) An irrevocable letter of credit issued for the benefit of the applicant by a bank whose deposits are insured by an agency of the Federal Government; or

(c) A certificate of deposit in a financial institution insured by an agency of the Federal Government or by a private insurer approved pursuant to NRS 672.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the applicant.

2. The amount of the bond, letter of credit or certificate of deposit must be $50,000, and the bond, letter of credit or certificate of deposit must be conditioned upon compliance by the applicant with the provisions of this chapter.

3. The amount of the security required to be filed by the seller may be increased to not more than $250,000 as part of an assurance of discontinuance accepted by the Attorney General pursuant to NRS 599B.235.

4. If, after a registration certificate is issued, the amount of the bond, letter of credit or certificate of deposit which secures the registration falls below the amount that is required by subsection 2 or the amount determined by the Commissioner pursuant to subsection 3, the seller shall be deemed not to be registered pursuant to this chapter for the purposes of NRS 599B.080.

5. The term of any bond, letter of credit or certificate of deposit, or any renewal thereof, must not be less than 1 year.

6. The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of this section.

7. A seller may change the form of the security. If a seller changes the form of the security, the Commissioner may retain for not more than 1 year all or a portion of the security previously filed by the seller as security for claims arising at the time the security was in effect.

8. If no claims have been filed against the bond, letter of credit or certificate of deposit within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the Commissioner shall release the bond, letter of credit or certificate of deposit to the registrant and shall not audit any claims filed thereafter by consumers. If one or more claims have been filed against the bond, letter of credit or certificate of deposit within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the proceeds must not be released to the registrant or distributed to any consumer earlier than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later. The Unit shall not audit any claims which are filed pursuant to NRS 599B.105 more than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later. For the purposes of this subsection, the Commissioner shall determine the date on which a registrant ceases to operate.

(Added to NRS by 1989, 1383; A 1993, 2105; 1995, 937; 1999, 1519; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.105 Rights and remedies of injured consumer; resolution by Unit of claims against security; regulations.

1. The bond, letter of credit or certificate of deposit filed pursuant to NRS 599B.100 must be held in trust for consumers injured by the seller.

2. Any consumer who is injured by the bankruptcy of the seller or his or her breach of any agreement entered into in his or her capacity as a registrant may bring and maintain an action to recover against the bond, letter of credit or certificate of deposit.

3. In addition to the remedy provided by subsection 2, a consumer may file with the Unit a claim against a bond, letter of credit or certificate of deposit filed pursuant to NRS 599B.100 if he or she:

(a) Has purchased or received goods or services from a registrant;

(b) Was harmed by that registrant’s breach of any agreement entered into in his or her capacity as a registrant; and

Ê No other person is entitled to bring an action against the bond, letter of credit or certificate of deposit pursuant to this subsection.

4. The Unit shall audit each claim to determine whether the consumer is entitled to receive a refund pursuant to subsection 1 of NRS 599B.190. The Unit may request the consumer and the registrant, or either of them, to provide information to assist in the audit.

5. After the Unit has completed its audit, it shall schedule a hearing and notify the registrant and the consumer of its intent to take action or to decline to take action. If the Unit decides that it will take action against the bond, letter of credit or certificate of deposit, it shall notify the registrant not less than 10 days before the date set for the hearing to appear and show cause why the Unit should not take the intended action. If the Unit decides that it will not take action against the bond, letter of credit or certificate of deposit of a registrant on behalf of the consumer, the Unit shall notify the consumer not less than 10 days before the date set for the hearing to appear and show cause why the Unit should not decline to take action.

6. If, upon hearing, the Commissioner determines that there are sufficient grounds to take the intended action against the bond, letter of credit or certificate of deposit, or if the registrant or the consumer fails to appear and show cause why the Unit should not take the intended action, the Commissioner shall take the action provided for in the Unit’s notice of intended action.

7. The Unit shall not distribute or cause to be distributed to the consumer more than the actual amount of money that the consumer paid for the product, service or premium. The Unit shall not distribute or cause to be distributed to the consumer the value of a premium if the value exceeds the amount paid by the consumer.

8. Except as otherwise provided in subsection 10, if the total amount of money awarded to consumers against a bond does not exceed the amount of that bond, the surety on the bond shall distribute the money from the bond to the consumers according to the terms of the order of the Commissioner and is thereby relieved of all liability pursuant to the bond.

9. If the total amount of money awarded to consumers against a bond exceeds the amount of that bond, or if the security is held in the form of a letter of credit or a certificate of deposit, the surety on the bond or the issuer of the letter of credit or certificate of deposit shall deposit the amount of the security with the Unit and is thereby relieved of all liability pursuant thereto. Except as otherwise provided in subsection 10, the Unit shall distribute to each consumer his or her pro rata share of the proceeds of the bond, letter of credit or certificate of deposit.

10. Before distributing the proceeds of the bond, letter of credit or certificate of deposit to the consumer, the Unit:

(a) Shall allow the registrant a reasonable amount of time within which to resolve the claims.

(b) Is entitled to deduct from the proceeds of the bond, letter of credit or certificate of deposit the Unit’s or Commissioner’s costs of hearing, auditing and determining the claim, including attorney’s fees.

11. A consumer who receives less than a full refund may bring an action in a court of competent jurisdiction against the registrant to recover the unpaid balance.

12. The Commissioner may adopt regulations regarding the distribution of the money to claimants pursuant to this section, including the conduct of hearings relating to such distributions.

(Added to NRS by 1993, 2096; A 1995, 938; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.110 Registration of seller: Disclosure of certain convictions, judgments and orders concerning responsible persons.

1. With respect to any person identified pursuant to subparagraph (1) or (2) of paragraph (e) of subsection 1 of NRS 599B.090, an applicant for registration as a seller must state in his or her application the identity of any person who:

(a) Has been convicted of racketeering or any offense involving fraud, theft, embezzlement, fraudulent conversion or misappropriation of property;

(b) Has had entered against him or her a final judgment or order, including a stipulated judgment or order, in any civil or administrative action involving racketeering, fraud, theft, embezzlement, fraudulent conversion or misappropriation of property, the use of any untrue or misleading representation in an attempt to sell or dispose of real or personal property, or the use of any unfair, unlawful or deceptive trade practice;

(c) Is subject to any currently effective injunction or restrictive court order relating to a business activity as the result of any action brought by a federal, state or local agency, including any action affecting any license or registration authorizing him or her to do business or practice an occupation or trade;

(d) Has at any time during the previous 7 years filed in bankruptcy, been adjudged bankrupt or been reorganized because of insolvency; or

(e) Has been a principal, director, officer or trustee of, or a general or limited partner in, or had responsibilities as a manager in, any corporation, partnership, joint venture or other entity that filed in bankruptcy, was adjudged bankrupt or was reorganized because of insolvency within 1 year after the person held that position.

2. For any person described in subsection 1, the applicant must:

(a) Identify the court or administrative agency rendering the conviction, judgment or order against the person;

(b) Provide the docket number of the matter, the date of the conviction, judgment or order and the name of the governmental agency, if any, that brought the action resulting in the conviction, judgment or order; and

(c) For any person described in paragraph (e) of that subsection, provide the name and address of the person filing in bankruptcy, adjudged bankrupt or reorganized because of insolvency, the date of the action, the court which exercised jurisdiction and the docket number of the matter.

(Added to NRS by 1989, 1384; A 1993, 2106; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.115 Registration of seller: Work card required for applicant and certain other persons; exceptions; issuance and renewal of work card; fingerprints.

1. Except as otherwise provided in subsection 5, each applicant for registration as a seller must obtain a work card issued pursuant to subsection 3 by the sheriff of the county in which the business of the applicant is located.

2. Except as otherwise provided in subsection 5, each principal officer, director, trustee, shareholder, owner, partner and employee of a seller, and each salesperson associated with a seller who is not an employee of the seller, must obtain a work card issued pursuant to subsection 3 by the sheriff of the county in which the business of the seller is located that authorizes his or her association with the seller.

3. The sheriff of a county shall issue a work card to each person who is required by this section to obtain a work card and who complies with the requirements established by the sheriff for the issuance of such a card. A work card issued pursuant to this section must be renewed each year.

4. If the sheriff of a county requires an applicant for a work card to be investigated, the applicant must submit with his or her application a complete set of his or her fingerprints which the sheriff may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation to determine the criminal history of the applicant.

5. A person who is licensed or registered pursuant to chapter 119A or 645 of NRS is not required to obtain a work card pursuant to this section.

(Added to NRS by 1997, 3202; A 1999, 1905; 2003, 2859; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

1. An applicant for registration as a salesperson must submit to the Unit, in such form as it prescribes, a written application for registration. The application must set forth the following information:

(a) The name, age and address of the applicant.

(b) If the applicant is a natural person, the social security number of the applicant.

(c) Each business or occupation engaged in by the applicant during the 2 years immediately preceding the date of the application, and the location thereof.

(d) The previous experience of the applicant as a salesperson.

(e) Whether the applicant has previously been arrested for, convicted of or is under indictment for a felony and, if so, the nature of the felony.

(f) Whether the applicant has previously been convicted of or is under indictment for forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any other crime involving moral turpitude.

(g) Whether the applicant has previously been convicted of acting as a salesperson without registration or a license, or whether such a registration or license has previously been refused, revoked or suspended in any jurisdiction.

2. Except as otherwise provided in this subsection, an application filed pursuant to this section must be verified and be accompanied by:

(a) A verified statement of the seller with whom the salesperson will be associated, expressing the intention of the seller to associate the salesperson with him or her and to be responsible for the activities of the salesperson as a registrant;

(b) If the applicant is a natural person, the statement required pursuant to NRS 599B.125; and

Ê The fee may be paid after the application is filed, but must be paid within 14 days after the applicant begins work as a salesperson.

3. Any application for registration made by a natural person must be completed personally by the applicant. An application made by a corporation must be signed by an officer of the corporation.

(Added to NRS by 1989, 1384; A 1993, 2107; 1997, 2104; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

(a) The name, age and address of the applicant.

(b) Each business or occupation engaged in by the applicant during the 2 years immediately preceding the date of the application, and the location thereof.

(d) Whether the applicant has previously been arrested for, convicted of or is under indictment for a felony and, if so, the nature of the felony.

(e) Whether the applicant has previously been convicted of or is under indictment for forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any other crime involving moral turpitude.

(f) Whether the applicant has previously been convicted of acting as a salesperson without registration or a license, or whether such a registration or license has previously been refused, revoked or suspended in any jurisdiction.

2. Except as otherwise provided in this subsection, an application filed pursuant to this section must be verified and be accompanied by:

(b) A fee for registration in the amount of $100.

Ê The fee may be paid after the application is filed, but must be paid within 14 days after the applicant begins work as a salesperson.

3. Any application for registration made by a natural person must be completed personally by the applicant. An application made by a corporation must be signed by an officer of the corporation.

(Added to NRS by 1989, 1384; A 1993, 2107; 1997, 2104; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501, effective on the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings)

1. A natural person who applies for the issuance or renewal of a registration certificate as a salesperson for a seller shall submit to the Unit 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 Unit shall include the statement required pursuant to subsection 1 in:

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

(b) A separate form prescribed by the Unit.

3. A registration certificate as a salesperson for a seller may not be issued or renewed by the Unit if the applicant is a natural person who:

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

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

4. If an applicant indicates on the statement submitted pursuant to subsection 1 that he or she 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 Unit 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.

(Added to NRS by 1997, 2103; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.127 Use of criminal history in determining whether to issue registration.

1. The Unit shall develop and implement a process by which a person with a criminal history may petition the Unit to review the criminal history of the person to determine if the person’s criminal history will disqualify the person from obtaining a registration pursuant to NRS 599B.080.

2. Not later than 90 days after a petition is submitted to the Unit pursuant to subsection 1, the Unit shall inform the person of the determination of the Unit of whether the person’s criminal history will disqualify the person from obtaining a registration. The Unit is not bound by its determination of disqualification or qualification and may rescind such a determination at any time.

3. The Unit may provide instructions to a person who receives a determination of disqualification to remedy the determination of disqualification. A person may resubmit a petition pursuant to subsection 1 not earlier than 6 months after receiving instructions pursuant to this subsection if the person remedies the determination of disqualification.

4. A person with a criminal history may petition the Unit at any time, including, without limitation, before obtaining any education or paying any fee required to obtain a registration from the Unit.

5. A person may submit a new petition to the Unit not earlier than 2 years after the final determination of the initial petition submitted to the Unit.

6. The Unit may impose a fee of up to $50 upon the person to fund the administrative costs in complying with the provisions of this section. The Unit may waive such fees or allow such fees to be covered by funds from a scholarship or grant.

7. The Unit may post on its Internet website:

(a) The requirements to obtain a registration from the Unit; and

(b) A list of crimes, if any, that would disqualify a person from obtaining a registration from the Unit.

8. The Unit may request the criminal history record of a person who petitions the Unit for a determination pursuant to subsection 1. To the extent consistent with federal law, if the Unit makes such a request of a person, the Unit shall require the person to submit his or her criminal history record which includes a report from:

(a) The Central Repository for Nevada Records of Criminal History; and

(b) The Federal Bureau of Investigation.

9. A person who petitions the Unit for a determination pursuant to subsection 1 shall not submit false or misleading information to the Unit.

10. The Unit shall, on or before the 20th day of January, April, July and October, submit to the Director of the Legislative Counsel Bureau in an electronic format prescribed by the Director, a report that includes:

(a) The number of petitions submitted to the Unit pursuant to subsection 1;

(b) The number of determinations of disqualification made by the Unit pursuant to subsection 1;

(d) Any other information that is requested by the Director or which the Unit determines would be helpful.

11. The Director shall transmit a compilation of the information received pursuant to subsection 10 to the Legislative Commission quarterly, unless otherwise directed by the Commission.

(Added to NRS by 2019, 2957)

NRS 599B.130 Issuance and display of registration certificate.

1. The Unit shall issue to each registrant a registration certificate in such form and size as is prescribed by the Unit and, in the case of a seller, shall issue a registration certificate for each location at which the seller proposes to do business. Each registration certificate must show the name and address of the registrant and, in the case of a salesperson’s registration certificate, must set forth the name of the seller with whom the salesperson will be associated.

2. Each registrant shall prominently display his or her registration certificate at the location where he or she does business.

(Added to NRS by 1989, 1385; A 1993, 2108; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.140 Renewal of registration.

1. Each person registered pursuant to the provisions of this chapter must renew his or her registration annually by:

(a) Paying the fee for registration;

(b) Submitting to the Unit the application required by NRS 599B.090 or 599B.120, whichever applies; and

(1) A copy of the work card obtained by:

(I) The seller pursuant to subsection 1 of NRS 599B.115; and

(II) Each principal officer, director, trustee, shareholder, owner, partner and employee of the seller, and each salesperson associated with the seller who is not an employee of the seller, pursuant to subsection 2 of NRS 599B.115; and

(2) If applicable, a statement listing each person who, pursuant to subsection 5 of NRS 599B.115, is not required to obtain a work card.

2. Registration expires on the anniversary of the issuance of the registration. A registrant who wishes to renew his or her registration must do so on or before the date his or her registration expires.

3. For the purposes of NRS 599B.080, a person who fails to renew his or her registration within the time required by this section is not registered pursuant to this chapter.

4. Except as otherwise provided in NRS 599B.160, if any material change in the information submitted for registration occurs before the date for renewal, a registrant shall submit that information to the Unit within 10 days after the registrant obtains knowledge of the change.

(Added to NRS by 1989, 1385; A 1993, 2108; 1997, 3208; 1999, 1906; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.141 Application for renewal of registration required to include information relating to state business license; renewal of registration prohibited in certain circumstances.

1. In addition to any other requirements set forth in this chapter, an applicant for the renewal of registration as a seller must indicate in the application submitted to the Unit 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 registration as a seller may not be renewed by the Unit if:

(a) The applicant fails to submit the information required by subsection 1; or

(b) The State Controller has informed the Unit 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.

(Added to NRS by 2013, 2741)

1. If the Unit 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 has been registered by the Unit as a salesperson of a seller, the Unit shall deem the person’s registration to be suspended at the end of the 30th day after the date on which the court order was issued unless the Unit receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person who has been registered stating that the person has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

2. The Unit shall reinstate a registration certificate as a salesperson for a seller that has been suspended by a district court pursuant to NRS 425.540 if the Unit receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose registration was suspended stating that the person whose registration was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

(Added to NRS by 1997, 2103; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.145 Payment and refund of fees for registration.

1. The fees for registration required by NRS 599B.090, 599B.120 and 599B.140 must be paid in cash or by certified check or money order.

2. A fee for registration must not be refunded, except that all or part of the fee may be refunded if the Commissioner rejects an application for registration because the application is incomplete.

(Added to NRS by 1993, 2096; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

PRACTICE

NRS 599B.150 Association of salesperson with more than one seller prohibited; seller to cooperate in investigations.

1. No salesperson may be associated with or employed by more than one seller at the same time.

2. A seller shall cooperate fully with the Commissioner in any investigation made by the Commissioner concerning an alleged violation of the provisions of this chapter by a salesperson.

(Added to NRS by 1989, 1385; A 2009, 2727; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.160 Submission to Unit of change in material or presentation used in solicitation. If any change is made to any script, outline, presentation or sales or donation information or literature used by a registrant in connection with any solicitation, the new or revised material must be submitted by the registrant to the Unit before such material is used.

(Added to NRS by 1989, 1385; A 1993, 2108; 1995, 939; 2009, 2727; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.170 Required disclosures by salesperson; restrictions on representations regarding premiums.

1. During any solicitation or sales presentation made by him or her, or in any correspondence written in connection with a sale, a salesperson shall:

(a) Identify himself or herself by stating his or her true name;

(b) Identify the seller by whom he or she is employed; and

2. During any solicitation or sales presentation made by him or her, or in any correspondence written in connection with a registrant, a registrant shall disclose to a consumer:

(a) Any charge, including the amount associated with the use of any premium being offered;

(b) Any material restriction, requirement, condition, limitation or exception which is associated with the use of the premium; and

3. A registrant shall not characterize a premium as a prize unless the consumer may receive the premium free of charge and without making any purchase.

4. A registrant shall inform each consumer of the time within which any premium will be delivered.

5. A registrant shall not make any representation of the number of premiums to be awarded in a sales promotion unless the representation accurately reflects the actual number of premiums that will be awarded.

(Added to NRS by 1989, 1385; A 1993, 2108; 1995, 939; 2009, 2727; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.180 Representation that consumer is or may be eligible to receive gift, premium, bonus or prize. If a seller expressly or impliedly represents to any consumer, directly or through a salesperson, that the consumer is or may be eligible to receive any gift, premium, bonus or prize, however denominated, the seller shall:

1. Submit to the Unit a statement setting forth, for each item mentioned:

(a) A description of the item.

(b) The value or worth of the item and the basis for the valuation.

(c) All terms and conditions a consumer must satisfy in order to receive the item. The statement must be accompanied by a copy of the written statement of terms and conditions provided to consumers pursuant to subsection 3.

(d) If they are ascertainable, the odds, for a given consumer, of receiving the item.

(e) If a consumer is to receive fewer than all the items described by the seller:

(1) The manner in which the seller decides which item a given consumer is to receive.

(2) If they are ascertainable, the odds, for a given consumer, of receiving each item described.

(3) The name and address of each person who has, during the preceding 12 months or any portion thereof in which the seller has done business, received the item having the greatest value and the item with the smallest odds of being received.

2. Provide the following information to the consumer at the time of the solicitation:

(a) The complete address of the location and the telephone number from which the consumer is being called and, if different, the complete address of the principal location at which the seller does business.

(b) The information required by paragraphs (a) and (c) of subsection 1.

(c) If the seller elects to inform the consumer of the value or worth of the item, the information must be identical to that submitted pursuant to paragraph (b) of subsection 1, in exactly the form submitted.

(d) If the consumer is to receive fewer than all the items described by the seller, the information required by subparagraph (1) of paragraph (e) of subsection 1.

3. Advise the consumer, at the time of the solicitation, that he or she may obtain, without cost, a written statement of the terms and conditions he or she must satisfy in order to receive the item. If the consumer so requests, the seller shall send him or her such a statement, by mail, without cost to the consumer.

(Added to NRS by 1989, 1385; A 1995, 940; 2009, 2728; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.185 Required disclosures when registrant solicits sale of investments. If a registrant solicits the sale of investments or opportunities for investment, he or she shall, during the oral sales presentation and in writing, inform the prospective consumer:

1. Of the manner in which the price of the offered item is determined;

2. Whether the registrant or his or her employer receives any financial advantage other than an agent’s or brokerage fee; and

3. Of the amount of any agent’s or brokerage fee.

(Added to NRS by 1993, 2098; A 1995, 941; 2009, 2729; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.187 Requirements when registrant uses chance promotion.

1. A registrant shall not use a chance promotion unless each consumer is entitled to participate in the promotion without charge or payment of any kind.

2. A registrant shall, before describing any item offered in a chance promotion, inform each consumer that he or she may participate in the promotion without any obligation to purchase any goods or services.

3. If a consumer specifically requests the information and the odds are ascertainable, the registrant shall orally disclose the odds of receiving each item offered in the chance promotion. If such a request is made but the odds are not ascertainable, the registrant shall disclose the manner in which the items offered in the promotion are awarded.

4. A registrant shall not require or request the payment of any money as a condition of obtaining any premium offered in a chance promotion.

5. A registrant shall not require a person to perform any action or to supply any information to participate in a chance promotion, except that the registrant may require the person to submit a written request sent by first-class mail. A registrant may not require the person to supply any information other than his or her name, address and a list of the premiums available in the chance promotion.

6. If a premium is offered in a chance promotion, the registrant shall provide any such premium to each person who does not purchase goods or services from the registrant upon the same terms, including time of delivery, as are provided to the persons who do purchase goods or services from the registrant.

7. If requested, a registrant shall inform each person who does not purchase goods or services from the registrant of the manner in which the person can participate in the chance promotion.

8. Any registrant who uses a chance promotion shall:

(a) Furnish to the Unit information establishing the financial ability of the registrant to award all premiums to be given in the promotion.

(b) Award all premiums included in the promotion to bona fide recipients within 12 months after the promotion begins.

(Added to NRS by 1993, 2098; A 1995, 941; 2009, 2729; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.190 Issuance of refund or replacement of goods or services; notice to consumer.

1. Except as otherwise provided in subsection 3, a person who purchases goods or services or makes a donation pursuant to a solicitation governed by this chapter must be given a refund or replacement, at his or her option, if:

(a) The goods or services are defective, are not as represented or if any item described pursuant to NRS 599B.180 is not received as promised; and

(b) He or she returns the unused goods, if any, or makes a written request for the refund or replacement within 30 days after he or she receives:

(1) The goods or services; or

(2) Any item described pursuant to NRS 599B.180,

Ê whichever is received later. A return or request is timely if shipment is made or the request is postmarked, properly addressed and postage prepaid, within the time provided by this paragraph.

2. A registrant who receives a written request for a refund or replacement shall not require prior authorization for a return of goods and shall give a refund or replacement within 14 days after receipt of the request.

3. If a consumer of goods returns only a portion of the goods, the refund or replacement required by subsection 1 may be prorated accordingly.

4. The refund or replacement required by subsection 1 must be given by the seller, regardless of whether payment for the goods or services is made to the seller or some other person.

5. Except for any proration permitted by subsection 3, a registrant shall not impose any charge in connection with a return of goods or a request for a refund or replacement.

6. If a registrant receives payment by credit card, he or she may issue a refund in the form of a credit to the credit card account of the consumer in lieu of a cash refund.

7. Within 3 days after any purchase of goods or services or upon delivery of the goods or services, whichever is later, or within 3 days after receiving a donation, the seller shall provide the consumer with a written summary of the provisions of this section. The summary must:

(a) Be made in a form prescribed by the Unit.

(b) Include the address to which returned goods or a request for refund may be sent.

(c) Be accompanied by a statement containing the information required by paragraph (e) of subsection 1 of NRS 599B.180, if the provisions of that section apply.

(d) If the provisions of paragraph (c) of subsection 2 of NRS 599B.180 apply, be accompanied by a statement concerning the number of persons who have, during the 12 months preceding the solicitation or any portion thereof in which the seller has done business, received the item having the greatest value and the item with the smallest odds of being received.

Ê A summary is timely if it is postmarked, properly addressed and postage prepaid, within the time provided by this subsection.

(Added to NRS by 1989, 1386; A 1993, 2109; 1995, 942; 2009, 2729; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.195 Delivery of goods or services must be accompanied by form. Each delivery of goods or services by a registrant must be accompanied by the form prescribed by the Unit pursuant to subsection 7 of NRS 599B.190.

(Added to NRS by 1993, 2098; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)

NRS 599B.197 Recovery service: Performance required before charging or receiving money from consumer. A seller or salesperson engaged in a recovery service shall not charge or receive any money or other valuable consideration from a consumer before full and complete performance of the service which the seller or salesperson has agreed to perform for or on behalf of the consumer.

(Added to NRS by 1995, 931)

NRS 599B.200 Disclosure of purchaser prohibited; exceptions. A salesperson or seller shall not disclose the name or address of any person who purchases goods or services pursuant to a solicitation governed by this chapter. Nothing in this section prohibits the disclosure of this information to:

1. Any person employed by or associated with the seller;

2. The Commissioner or any employee of the Unit; or

3. Any law enforcement officer or agency that requires the information for investigative purposes.

(Added to NRS by 1989, 1387; A 1993, 2110; 2009, 2730; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

ENFORCEMENT

NRS 599B.210 Appointment of Secretary of State as agent for service of process; procedure for and effect of service; fee.

1. Every registrant, other than a registrant incorporated in this state, shall file with the Secretary of State an irrevocable consent appointing the Secretary of State as his or her agent to receive service of any lawful process in any action or proceeding against him or her arising pursuant to this chapter. Any lawful process against the registrant served upon the Secretary of State as provided in subsection 2 has the same force and validity as if served upon the registrant personally.

2. Service of process authorized by subsection 1 must be made by filing with the Secretary of State:

(a) Two copies of the process. The copies must include a specific citation to the provisions of this section. The Secretary of State may refuse to accept such service if the proper citation is not included in each copy.

(b) A fee of $10.

Ê The Secretary of State shall forthwith forward one copy of the process by registered or certified mail prepaid to the registrant, or in the case of a registrant organized under the laws of a foreign government, to the United States manager or last appointed United States general agent of the registrant, giving the day and the hour of the service.

3. Service of process is not complete until the copy thereof has been mailed and received by the registrant, and the receipt of the addressee is prima facie evidence of the completion of the service.

4. If service of summons is made upon the Secretary of State in accordance with the provisions of this section, the time within which the registrant is required to appear is extended 10 days.

(Added to NRS by 1989, 1389; A 1991, 1317; 1993, 2110; 1997, 475; 2009, 2731; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.213 Jurisdiction and authority of Attorney General.

1. The Attorney General has primary jurisdiction to investigate and prosecute violations of this chapter and any fraud involving solicitation by telephone.

2. When acting pursuant to this section, the Attorney General may commence his or her investigation and file a criminal action without leave of court, and he or she has exclusive charge of the conduct of the prosecution.

(Added to NRS by 1995, 931)

NRS 599B.215 Action by Attorney General.

1. The Attorney General may conduct an investigation to determine whether a person, either directly or indirectly, has violated, is violating or is about to violate any of the provisions of this chapter or any regulation adopted pursuant thereto.

2. If the Attorney General has reason to believe that any person, either directly or indirectly, has violated, is violating or is about to violate any of the provisions of this chapter or any regulation adopted pursuant thereto, the Attorney General may:

(a) Issue a subpoena to require the testimony of any person;

(b) Issue a subpoena to require the production of any documents; or

3. A subpoena issued pursuant to subsection 2 must be served in the manner provided in the Nevada Rules of Civil Procedure.

(Added to NRS by 1993, 2099)

NRS 599B.225 Attorney General may apply for equitable relief. If any person fails to cooperate with an investigation conducted by the Attorney General or to obey a subpoena issued by the Attorney General pursuant to NRS 599B.215, the Attorney General may apply to any district court for equitable relief. The court may:

1. Order the person to testify or to produce the requested documents pursuant to the subpoena; and

2. Grant other relief necessary to compel compliance by the person.

(Added to NRS by 1993, 2099)

NRS 599B.235 Attorney General may accept assurance of discontinuance of violation; proof of violation of assurance is prima facie evidence of violation of applicable law in civil action.

1. The Attorney General may accept an assurance of discontinuance of any violation of the provisions of this chapter or any regulation adopted pursuant thereto. The assurance may include a stipulation for the payment of money to this state by the alleged violator, including but not limited to, payment for the costs of investigation, for the costs of instituting the action or proceeding and for the restitution of any money or property acquired as a result of the violation.

2. Proof by a preponderance of evidence of a violation of an assurance given pursuant to subsection 1 constitutes prima facie evidence of a violation of the applicable statutes or regulations for the purpose of any civil action or proceeding brought thereafter by the Attorney General, whether the action or proceeding is a new action or a subsequent motion or petition in a pending action or proceeding.

(Added to NRS by 1993, 2099)

NRS 599B.245 Attorney General may institute legal proceeding against person believed to have violated provisions of this chapter; remedies; civil penalty for violation of court order or injunction.

1. If the Attorney General has reason to believe that a person, either directly or indirectly, has violated, is violating or is about to violate any of the provisions of this chapter or any regulation adopted pursuant thereto, he or she may institute an appropriate legal proceeding against the person. The district court, upon a showing that the person, either directly or indirectly, has violated, is violating or is about to violate any of the provisions of this chapter or any regulation adopted pursuant thereto, may grant the following remedies, as appropriate:

(a) Issue a temporary or permanent injunction;

(b) Impose a civil penalty not to exceed $5,000 for each violation;

(d) Order restitution for consumers;

(e) Provide for the appointment of a receiver;

(f) Order the payment of attorney’s fees and costs; and

(g) Order such other relief as the court deems just.

2. Any person who violates a court order or injunction issued pursuant to subsection 1 shall, upon a complaint brought by the Attorney General, pay a civil penalty of not more than $50,000 for each violation.

(Added to NRS by 1993, 2099; A 1995, 943)

NRS 599B.255 Willful violations: Prosecution; criminal penalties; forfeitures.

1. Except as otherwise provided in NRS 599B.213, the Attorney General or the district attorney of any county in this state may prosecute a person who willfully violates, either directly or indirectly, the provisions of this chapter. Except as otherwise provided in subsection 3, such a person:

(a) For the first offense within 10 years, is guilty of a misdemeanor.

(b) For the second offense within 10 years, is guilty of a gross misdemeanor.

(c) For the third and all subsequent offenses within 10 years, is guilty of a category D felony and shall be punished as provided in NRS 193.130, or by a fine of not more than $50,000, or by both fine and the punishment provided in NRS 193.130.

2. Any offense which occurs within 10 years immediately preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of subsection 1 when evidenced by a conviction, without regard to the sequence of the offenses and convictions.

3. A person who violates any provision of NRS 599B.080 is guilty of a category D felony and shall be punished as provided in NRS 193.130, or by a fine of not more than $50,000, or by both fine and the punishment provided in NRS 193.130.

4. Property or proceeds attributable to any violation pursuant to the provisions of this section are subject to forfeiture in the manner provided by NRS 179.1156 to 179.121, inclusive.

(Added to NRS by 1993, 2100; A 1995, 943, 1307; 2009, 2731; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

NRS 599B.260 Deposit and use of money collected pursuant to this chapter.

1. Except as otherwise provided in subsection 2, all fees, civil penalties and any other money collected pursuant to this chapter in an action brought by the Attorney General must be deposited in the State General Fund and may only be used to defray the costs of:

(a) Administering and enforcing the provisions of this chapter.

(b) Enforcing the provisions of chapter 598 of NRS as they relate to the conduct of sellers and salespersons, whether or not the sellers and salespersons are registered pursuant to this chapter.

2. The provisions of this section do not apply to:

(a) Criminal fines imposed pursuant to the provisions of this chapter; or

(b) Restitution ordered in an action brought by the Attorney General pursuant to the provisions of this chapter. Money collected for restitution ordered in such an action must be deposited by the Attorney General and credited to the appropriate account of the Unit or the Attorney General for distribution to the person for whom the restitution was ordered.

(Added to NRS by 1993, 2096; A 1995, 944; 2001, 2928; 2009, 2732; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)

SOLICITATION OF ELDERLY PERSON OR PERSON WITH A DISABILITY

NRS 599B.270 Definitions. As used in NRS 599B.270 to 599B.300, inclusive, unless the context otherwise requires:

1. “Elderly person” means a person who is 60 years of age or older.

2. “Person with a disability” means a person who:

(a) Has a physical or mental impairment that substantially limits one or more of the major life activities of the person;

(b) Has a record of such an impairment; or

(Added to NRS by 1993, 1979; A 2003, 2569)

NRS 599B.280 Additional penalty.

1. In any action brought pursuant to NRS 599B.213, 599B.245 or 599B.255, if the court finds that a person has engaged in an unlawful solicitation by telephone directed toward an elderly person or a person with a disability, the court may, in addition to any other civil or criminal penalty, impose a civil penalty of not more than $10,000 for each violation.

2. In determining whether to impose a civil penalty pursuant to subsection 1, the court shall consider whether:

(a) The conduct of the person was in disregard of the rights of the elderly person or person with a disability;

(b) The person knew or should have known that his or her conduct was directed toward an elderly person or a person with a disability;

(c) The elderly person or person with a disability was more vulnerable to the conduct of the person because of the age, health, infirmity, impaired understanding, restricted mobility or disability of the elderly person or person with a disability;

(d) The conduct of the person caused the elderly person or person with a disability to suffer actual and substantial physical, emotional or economic damage;

(e) The conduct of the person caused the elderly person or person with a disability to suffer:

(1) Mental or emotional anguish;

(2) The loss of the primary residence of the elderly person or person with a disability;

(3) The loss of the principal employment or source of income of the elderly person or person with a disability;

(4) The loss of money received from a pension, retirement plan or governmental program;

(5) The loss of property that had been set aside for retirement or for personal or family care and maintenance;

(6) The loss of assets which are essential to the health and welfare of the elderly person or person with a disability; or

(7) Any other interference with the economic well-being of the elderly person or person with a disability, including the encumbrance of his or her primary residence or principal source of income; or

(f) Any other factors that the court deems to be appropriate.

(Added to NRS by 1993, 1979; A 1995, 944)

NRS 599B.290 Deposit and use of money collected from civil penalties imposed in action brought by district attorney.

1. Money collected from civil penalties imposed pursuant to NRS 599B.280 in an action brought by the district attorney of a county must be deposited with the county treasurer of that county and accounted for separately in the county general fund.

2. Money in the account created pursuant to subsection 1 must be used by the district attorney of the county for:

(a) The investigation and prosecution of acts of unlawful solicitation by telephone against elderly persons or persons with disabilities; and

(b) Programs for the education of consumers which are directed toward elderly persons or persons with disabilities, law enforcement officers, members of the judicial system, persons who provide social services and the general public.

(Added to NRS by 1993, 1980; A 1995, 945)

NRS 599B.300 Civil action. If an elderly person or person with a disability suffers damage or injury as a result of an unlawful solicitation by telephone, the elderly person or person with a disability or the legal representative of such a person, if any, may commence a civil action against any person who engaged in the solicitation to recover the actual damages suffered by the elderly person or person with a disability, punitive damages, if appropriate, and reasonable attorney’s fees. The collection of any restitution awarded pursuant to this section has a priority over the collection of any civil penalty imposed pursuant to NRS 599B.280.

(Added to NRS by 1993, 1980)