NRS: CHAPTER 645H - ASSET MANAGEMENT COMPANIES AND ASSET MANAGERS

[Rev. 6/29/2024 4:52:09 PM--2023]

CHAPTER 645H - ASSET MANAGEMENT COMPANIES AND ASSET MANAGERS

GENERAL PROVISIONS

NRS 645H.010 Definitions.

NRS 645H.020 “Administrator” defined.

NRS 645H.030 “Asset management” defined.

NRS 645H.040 “Asset management company” defined.

NRS 645H.050 “Asset manager” defined.

NRS 645H.060 “Client” defined.

NRS 645H.070 “Division” defined.

NRS 645H.080 “Foreclosure sale” defined.

NRS 645H.090 “Homeowner” defined.

NRS 645H.110 “Mortgage company” defined.

NRS 645H.120 “Real property in foreclosure” defined.

NRS 645H.130 “Real property owner” defined.

NRS 645H.140 “Residence in foreclosure” defined.

NRS 645H.150 “Service report” defined.

NRS 645H.160 Applicability of chapter.

ADMINISTRATION

NRS 645H.280 Duties of Division; restrictions on employees of Division.

NRS 645H.290 Adoption of regulations.

NRS 645H.300 Authority for Division to conduct business electronically; regulations; fees; use of unsworn declaration; exclusions.

NRS 645H.310 Inspection of certain documents by Division; regulations.

NRS 645H.320 Records: Maintenance by Division; general provisions governing public inspection and confidentiality.

NRS 645H.330 Records: Certain records relating to complaint or investigation deemed confidential; certain records relating to disciplinary action deemed public records.

NRS 645H.350 Deposit of certain fees and administrative fines; financial support of Division.

NRS 645H.360 Disposition of money collected.

NRS 645H.365 Technology Account for Chapter 645H of NRS.

NRS 645H.370 Duties of Attorney General.

CERTIFICATES OF REGISTRATION AND PERMITS

NRS 645H.480 Certificate of registration: Application; fee; issuance.

NRS 645H.490 Certificate of registration: Maintenance of insurance or acting as self-insurer; minimum limits of liability; proof.

NRS 645H.500 Certificate of registration: Expiration; renewal.

NRS 645H.510 Asset management company that is not natural person required to designate natural person as qualified employee.

NRS 645H.520 Authorized services of asset management company; manner in which asset management company may dispose of certain personal property; resolution of disputes.

NRS 645H.530 Permit to engage in asset management: Application; fees.

NRS 645H.540 Permit to engage in asset management: Expiration and renewal.

NRS 645H.550 Payment of child support: Submission of certain information by applicant; grounds for denial of certificate of registration or permit; duty of Division. [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 645H.550 Payment of child support: Submission of certain information by applicant; grounds for denial of certificate of registration or permit; duty of Division. [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 and expires by limitation 2 years after that date.]

NRS 645H.560 Fees.

DISCIPLINARY AND OTHER ACTIONS

NRS 645H.670 Authority of Administrator to conduct certain investigations; authority of Division to take certain disciplinary actions.

NRS 645H.680 Hearing officers.

NRS 645H.690 Service of process: Irrevocable consent; effect of failure to file consent; method; use; effect on continuances.

NRS 645H.700 Authorized disciplinary action; grounds; maintenance of log of certain complaints; orders imposing discipline deemed public records.

NRS 645H.705 Administrative fine for engaging in certain conduct without certificate of registration, permit or other authorization; procedure for imposition of fine; judicial review; exceptions.

NRS 645H.710 Disciplinary or other action for failure to pay money owed to Division.

NRS 645H.720 Suspension of certificate of registration or permit for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of certificate of registration or permit. [Effective until 2 years after 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 645H.730 Knowledge of associate or employer of violation by asset management company or asset manager; penalties.

NRS 645H.740 Expiration, revocation or surrender of certificate of registration or permit does not prohibit disciplinary action against holder of certificate of registration or permit.

NRS 645H.750 Duty to report certain convictions and pleas to Division.

PROHIBITED ACTS; PENALTIES

NRS 645H.760 Unlawful to engage in certain conduct without certificate of registration or permit; penalty.

NRS 645H.770 Unlawful acts; penalty.

_________

GENERAL PROVISIONS

NRS 645H.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 645H.020 to 645H.150, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2011, 2818)

NRS 645H.020 “Administrator” defined. “Administrator” means the Real Estate Administrator.

(Added to NRS by 2011, 2818)

NRS 645H.030 “Asset management” defined. “Asset management” means to manage, oversee or direct actions taken to maintain any real property, including, without limitation, any actions taken to preserve, restore or improve the value and to lessen the risk of damage to the property on behalf of a client before a foreclosure sale or in preparation for liquidation of real property owned by the client pursuant to a foreclosure sale.

(Added to NRS by 2011, 2818)

NRS 645H.040 “Asset management company” defined. “Asset management company” means a person, limited-liability company, partnership, association or corporation which, for compensation and pursuant to a contractual agreement, power of attorney or other legal authorization, engages in asset management on behalf of:

1. A bank, mortgage company, mortgage servicer as that term is defined in NRS 645F.063, credit union, thrift company, savings and loan association or savings bank, or any subsidiary thereof which is authorized to transact business in this State;

2. A mortgage holding entity chartered by Congress; or

3. A federal, state or local governmental entity.

(Added to NRS by 2011, 2818; A 2015, 2809; 2017, 3083)

NRS 645H.050 “Asset manager” defined. “Asset manager” means a person engaged in the business of asset management who is an employee or independent contractor of a registered asset management company.

(Added to NRS by 2011, 2819)

NRS 645H.060 “Client” defined. “Client” means:

1. A bank, mortgage company, mortgage servicer as that term is defined in NRS 645F.063, credit union, thrift company, savings and loan association or savings bank, or any subsidiary thereof that is authorized to transact business in this State;

2. A mortgage holding entity chartered by Congress; or

3. A federal, state or local governmental entity,

Ê for whom an asset management company provides asset management.

(Added to NRS by 2011, 2819; A 2015, 2810; 2017, 3083)

NRS 645H.070 “Division” defined. “Division” means the Real Estate Division of the Department of Business and Industry.

(Added to NRS by 2011, 2819)

NRS 645H.080 “Foreclosure sale” defined. “Foreclosure sale” means a sale of real property to enforce an obligation secured by a mortgage or lien on the property, including, without limitation, the exercise of a trustee’s power of sale pursuant to NRS 107.080.

(Added to NRS by 2011, 2819)

NRS 645H.090 “Homeowner” defined. “Homeowner” means the owner of record of a residence, including, without limitation, the owner of record of a residence in foreclosure at the time the notice of the pendency of an action for foreclosure is recorded pursuant to NRS 14.010 or the notice of default and election to sell is recorded pursuant to NRS 107.080.

(Added to NRS by 2011, 2819)

NRS 645H.110 “Mortgage company” defined. “Mortgage company” has the meaning ascribed to it in NRS 645B.0127.

(Added to NRS by 2011, 2819; A 2017, 3083)

NRS 645H.120 “Real property in foreclosure” defined. “Real property in foreclosure” includes, without limitation, a residence in foreclosure or commercial real property against which there is an outstanding notice of the pendency of an action for foreclosure recorded pursuant to NRS 14.010 or notice of default and election to sell recorded pursuant to NRS 107.080.

(Added to NRS by 2011, 2819)

NRS 645H.130 “Real property owner” defined. “Real property owner” means the owner of record of real property, including, without limitation, a homeowner or an owner of real property in foreclosure.

(Added to NRS by 2011, 2819)

NRS 645H.140 “Residence in foreclosure” defined. “Residence in foreclosure” means any residential real property consisting of:

1. Not more than four family dwelling units, one of which the homeowner or a tenant of the homeowner occupies as his or her principal place of residence; or

2. 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,

Ê against which there is an outstanding notice of the pendency of an action for foreclosure recorded pursuant to NRS 14.010 or notice of default and election to sell recorded pursuant to NRS 107.080.

(Added to NRS by 2011, 2819)

NRS 645H.150 “Service report” defined. “Service report” means a written report on a form prescribed by the Division which is provided by an asset management company or asset manager and which lists the specific services performed on real property for a client.

(Added to NRS by 2011, 2820)

NRS 645H.160 Applicability of chapter.

1. The provisions of this chapter which require a certificate of registration or permit do not apply to a person or broker who has a current permit to engage in property management pursuant to chapter 645 of NRS.

2. A person or broker who has a permit to engage in property management pursuant to chapter 645 of NRS may engage in the business of asset management if the provision of asset management services is included in the property management agreement entered into pursuant to NRS 645.6056.

3. Except as otherwise provided in subsection 1, a person or broker who engages in the business of asset management must comply with the provisions of this chapter and the recordkeeping requirements of chapter 645 of NRS.

4. The provisions of this chapter do not apply to:

(a) A person who is a regular, full-time employee of a bank, mortgage company, mortgage servicer as that term is defined in NRS 645F.063, credit union, thrift company, savings and loan association or savings bank, or any subsidiary thereof.

(b) A person who takes possession of property from a defendant in connection with a judicial proceeding for eminent domain brought pursuant to chapter 37 of NRS.

(Added to NRS by 2011, 2820; A 2015, 2810; 2017, 3083)

ADMINISTRATION

NRS 645H.280 Duties of Division; restrictions on employees of Division.

1. The Division shall administer the provisions of this chapter and may employ legal counsel, investigators and other professional consultants necessary to discharge its duties pursuant to this chapter.

2. An employee of the Division must not be employed by or have an interest in any business that manages residences in foreclosure or other assets.

3. An employee of the Division shall not act as an asset manager or as an agent for an asset management company.

(Added to NRS by 2011, 2820)

NRS 645H.290 Adoption of regulations. The Division shall adopt:

1. Regulations prescribing a standard of practice and code of ethics for registered asset management companies. The regulations must include, without limitation, provisions establishing the degree of care that must be exercised by a reasonably prudent registered asset management company.

2. Such other regulations as are necessary for the administration of this chapter.

(Added to NRS by 2011, 2820)

NRS 645H.300 Authority for Division to conduct business electronically; regulations; fees; use of unsworn declaration; exclusions.

1. The Administrator may adopt regulations which establish procedures for the Division to conduct business electronically pursuant to title 59 of NRS with persons who are regulated pursuant to this chapter and with any other persons with whom the Division conducts business. The regulations may include, without limitation, provisions establishing fees to pay the costs of conducting business electronically with the Division.

2. In addition to the provisions of NRS 719.280, if the Division conducts business electronically with a person and a law requires a signature or record to be notarized, acknowledged, verified or made under oath, the Division may allow the person to substitute a declaration that complies with the provisions of NRS 53.045 to satisfy the legal requirement.

3. The Division may refuse to conduct business electronically with a person who has failed to pay any money which the person owes to the Division.

(Added to NRS by 2011, 2820)

NRS 645H.310 Inspection of certain documents by Division; regulations.

1. The Division may inspect any service report, contractual agreement, power of attorney or other legal authorization entered into by an asset management company and a client to ensure compliance with the provisions of this chapter.

2. The Division shall adopt regulations pertaining to those inspections.

(Added to NRS by 2011, 2821)

NRS 645H.320 Records: Maintenance by Division; general provisions governing public inspection and confidentiality.

1. The Division shall maintain a record of:

(a) Persons whose applications for registration have been denied;

(b) Formal disciplinary proceedings and any investigations conducted by the Division which result in the initiation of those proceedings; and

2. Except as otherwise provided in this section and NRS 645H.330, records kept in the office of the Division pursuant to this chapter are open to the public for inspection pursuant to regulations adopted by the Division. Except as otherwise provided in NRS 239.0115, the Division may keep confidential, unless otherwise ordered by a court any criminal and financial records of an asset management company or applicant for a certificate of registration.

(Added to NRS by 2011, 2821)

NRS 645H.330 Records: Certain records relating to complaint or investigation deemed confidential; certain records relating to disciplinary action deemed public records.

1. Except as otherwise provided in this section and NRS 645H.320, a complaint filed with the Division, all documents and other information filed with the Division relating to the complaint and all documents and other information compiled as a result of an investigation conducted to determine whether to initiate disciplinary action are confidential and may be disclosed in whole or in part only as necessary in the course of administering this chapter or to a licensing board or agency or any other governmental agency, including, without limitation, a law enforcement entity, that is investigating a person who holds a certificate of registration or permit issued pursuant to this chapter.

2. The complaint or other document filed by the Division to initiate disciplinary action and all documents and information considered by the Division when determining whether to impose discipline are public records.

(Added to NRS by 2011, 2822)

NRS 645H.350 Deposit of certain fees and administrative fines; financial support of Division.

1. Except as otherwise provided in NRS 645H.365, all fees and administrative fines received by the Division pursuant to this chapter must be deposited with the State Treasurer for credit to the State General Fund.

2. Money for the support of the Division in carrying out the provisions of this chapter must be provided by direct legislative appropriation and be paid out on claims as other claims against the State are paid.

(Added to NRS by 2011, 2822; A 2021, 3539)

NRS 645H.360 Disposition of money collected. If the Division imposes an administrative fine or collects a fee for registering an asset management company or issuing or renewing a permit to an asset manager, the Division shall deposit the amount collected with the State Treasurer for credit to the State General Fund. The Division may present a claim to the State Board of Examiners for recommendation to the Interim Finance Committee if money is needed to pay an attorney’s fee or the cost of an investigation, or both.

(Added to NRS by 2011, 2822)

NRS 645H.365 Technology Account for Chapter 645H of NRS.

1. The Technology Account for Chapter 645H of NRS is hereby created in the State General Fund. The Administrator shall administer the Account.

2. The interest and income earned on the money in the Account, after deducting any applicable charges, must be credited to the Account. Any money remaining in the Account at the end of the fiscal year does not revert to the State General Fund, and the balance in the Account must be carried forward to the next fiscal year.

3. All money collected from the technology fees imposed pursuant to NRS 645H.530, 645H.540 and 645H.560 must be deposited in the Account and used only to acquire technology for or improve the technology used by the Division to administer the provisions of this chapter, including, without limitation, costs related to acquiring or improving technology, purchasing hardware and software, maintaining the technology and contracting for professional services related to the technology.

4. All claims against the Account must be paid as other claims against the State are paid.

(Added to NRS by 2021, 3538)

NRS 645H.370 Duties of Attorney General.

1. The Attorney General shall render to the Division opinions upon questions of law relating to the construction or interpretation of this chapter, or arising in the administration thereof, submitted to the Attorney General by the Division.

2. The Attorney General shall act as the attorney for the Division in all actions and proceedings brought against or by the Division pursuant to any of the provisions of this chapter subject to the provisions of NRS 622A.200 and 622A.210.

(Added to NRS by 2011, 2822; A 2017, 2851)

CERTIFICATES OF REGISTRATION AND PERMITS

NRS 645H.480 Certificate of registration: Application; fee; issuance.

1. A person who wishes to be registered as an asset management company in this State must file a written application with the Division upon a form prepared and furnished by the Division and pay the fee required pursuant to NRS 645H.560. An application must:

(a) State the name, residence address and business address of the applicant and the location of each principal office and branch office at which the asset management company will conduct business within this State;

(b) State the name under which the applicant will conduct business as an asset management company;

(c) List the name, residence address and business address of each person who will, if the applicant is not a natural person, have an interest in the asset management company as a principal, partner, officer, director or trustee, specifying the capacity and title of each such person;

(d) Include a complete set of the fingerprints of the applicant or, if the applicant is not a natural person, a complete set of the fingerprints of each person who will have an interest in the asset management company as a principal, partner, officer, director or trustee, and written permission authorizing the Division to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

(e) Include a statement signed by the applicant attesting that the applicant has read and understands the provisions of NRS 645H.520 and 645H.680 to 645H.770, inclusive.

2. Except as otherwise provided in this chapter, the Division shall issue a certificate of registration to an applicant as an asset management company if:

(a) The application is verified by the Division and complies with the requirements of this chapter.

(b) The applicant and each general partner, officer or director of the applicant, if the applicant is a partnership, corporation or unincorporated association:

(1) Submits satisfactory proof to the Division that he or she has a good reputation for honesty, trustworthiness and integrity and displays competence to transact the business of an asset management company in a manner which safeguards the interests of the general public.

(2) Has not been convicted of, or entered a plea of nolo contendere to, a felony relating to the practice of asset management or any crime involving fraud, misrepresentation or moral turpitude.

(3) Has not made a false statement of material fact on his or her application.

(4) Has not had a professional license that was issued in this State or any other state, district or territory of the United States or any foreign country suspended or revoked within the 10 years immediately preceding the date of application.

(5) Has not violated any provision of this chapter, a regulation adopted pursuant thereto or an order of the Administrator.

(1) Has a process in place to verify that each employee or independent contractor that performs services as directed by the asset management company or an asset manager employed by or under contract with the asset management company is the holder of a license in good standing in this State to perform the services for which the asset management company will use the employee or independent contractor.

(2) Has a process in place to review the work of each independent contractor that performs services as directed by the asset management company or an asset manager employed by or under contract with the asset management company to ensure that those services are conducted in accordance with all applicable laws and regulations of this State.

(3) Will maintain a detailed record of each request for service it receives and the independent contractor who fulfilled that request.

(d) The applicant submits proof that he or she possesses all business licenses and permits required to do business in this State.

(Added to NRS by 2011, 2822)

NRS 645H.490 Certificate of registration: Maintenance of insurance or acting as self-insurer; minimum limits of liability; proof.

1. Before issuing any certificate of registration or annual renewal thereof, the Division shall require satisfactory proof that the asset management company:

(a) Is covered by a policy of insurance written by an insurance company authorized to do business in this State which is sufficient to reimburse real property owners for, without limitation, any damage to real property in foreclosure, the wrongful disposal of property or wrongful eviction; or

(b) Possesses and will continue to possess sufficient means to act as a self-insurer against that liability.

2. Every asset management company shall maintain the policy of insurance or self-insurance required by this section. The registration of every such asset management company is automatically suspended 10 days after receipt by the asset management company of a notice from the Division that the required insurance is not in effect, unless satisfactory proof of insurance is provided to the Division within that period.

3. Proof of insurance or self-insurance must be in such a form as the Division may require.

(Added to NRS by 2011, 2823)

NRS 645H.500 Certificate of registration: Expiration; renewal. A certificate of registration issued pursuant to this chapter expires each year on the date of its issuance, unless it is renewed. To renew the certificate of registration, the registrant must submit to the Division on or before the expiration date:

1. An application for renewal;

2. The fee required to renew the certificate of registration pursuant to NRS 645H.560; and

3. All information required to complete the renewal.

(Added to NRS by 2011, 2825)

NRS 645H.510 Asset management company that is not natural person required to designate natural person as qualified employee.

1. If an asset management company is not a natural person, the company must designate a natural person as a qualified employee to act on behalf of the asset management company.

2. As used in this section, “qualified employee” means:

(a) A director, officer, member, employee, manager or trustee of a partnership, corporation or limited-liability company designated by the partnership, corporation or limited-liability company to act on the behalf of the partnership, corporation or limited-liability company; or

(b) A person designated by a sole proprietorship who satisfies the requirements set forth in subsection 2 of NRS 645H.480.

(Added to NRS by 2011, 2824)

NRS 645H.520 Authorized services of asset management company; manner in which asset management company may dispose of certain personal property; resolution of disputes.

1. Subject to the provisions of NRS 645H.770, the services an asset management company may provide include, without limitation:

(a) Securing real property in foreclosure once it has been determined to be abandoned and all notice provisions required by law have been complied with;

(b) Providing maintenance for real property in foreclosure, including landscape and pool maintenance;

(d) Providing repair or improvements for real property in foreclosure; and

(e) Removing trash and debris from real property in foreclosure and the surrounding property.

2. An asset management company may dispose of personal property abandoned on the premises of a residence in foreclosure or left on the premises after the eviction of a homeowner or a tenant of a homeowner without incurring civil or criminal liability in the following manner:

(a) The asset management company shall reasonably provide for the safe storage of the property for 30 days after the abandonment or eviction and may charge and collect the reasonable and actual costs of inventory, moving and storage before releasing the property to the homeowner or the tenant of the homeowner or his or her authorized representative rightfully claiming the property within that period. The asset management company is liable to the homeowner or the tenant of the homeowner only for the asset management company’s negligent or wrongful acts in storing the property.

(b) After the expiration of the 30-day period, the asset management company may dispose of the property and recover his or her reasonable costs from the property or the value thereof if the asset management company has made reasonable efforts to locate the homeowner or the tenant of the homeowner, has notified the homeowner or the tenant of the homeowner in writing of his or her intention to dispose of the property and 14 days have elapsed since the notice was given to the homeowner or the tenant of the homeowner. The notice must be mailed to the homeowner or the tenant of the homeowner at the present address of the homeowner or the tenant of the homeowner and, if that address is unknown, then at the last known address of the homeowner or the tenant of the homeowner.

3. Any dispute relating to the amount of the costs claimed by the asset management company pursuant to paragraph (a) of subsection 2 may be resolved using the procedure provided in subsection 7 of NRS 40.253.

(Added to NRS by 2011, 2829)

NRS 645H.530 Permit to engage in asset management: Application; fees.

1. A person in this State who is employed or independently contracted as an asset manager by an asset management company shall apply to the Division for a permit to engage in asset management and pay a fee of $75 for the issuance of the permit.

2. In addition to the fee imposed by subsection 1, a person who applies to the Division for a permit to engage in asset management pursuant to subsection 1 must pay to the Division a technology fee of $15.

3. An applicant for a permit must:

(a) At his or her own expense:

(1) Arrange to have a complete set of fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Division; and

(2) Submit to the Division:

(I) A completed fingerprint card and written permission authorizing the Division to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Division deems necessary; or

(II) Written verification, on a form prescribed by the Division, stating that the fingerprints of the applicant were taken by a law enforcement agency or other authorized entity and directly forwarded by electronic or other means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Division deems necessary;

(b) Submit to the Division a signed statement attesting that the applicant has read and understands the provisions of NRS 645H.520 and 645H.680 to 645H.770, inclusive; and

4. The Division may:

(a) Unless the applicant’s fingerprints are forwarded pursuant to sub-subparagraph (II) of subparagraph (2) of paragraph (a) of subsection 3, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Division deems necessary; and

(b) Request from each such agency any information regarding the applicant’s background as the Division deems necessary.

(Added to NRS by 2011, 2825; A 2021, 3539)

NRS 645H.540 Permit to engage in asset management: Expiration and renewal.

1. A permit issued pursuant to NRS 645H.530 expires 1 year after the date of issuance, unless it is renewed. To renew the permit, the registrant must submit to the Division on or before the date of expiration:

(a) An application for renewal;

(b) A fee of $75; and

2. In addition to the fee imposed by subsection 1, a registrant who submits to the Division an application for renewal of a permit pursuant to subsection 1 must pay to the Division a technology fee of $15.

(Added to NRS by 2011, 2826; A 2021, 3540)

(a) Include the social security number of the applicant in the application submitted to the Division.

(b) Submit to the Division 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 Division 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 certificate of registration or permit; or

(b) A separate form prescribed by the Division.

3. A certificate of registration or permit may not be issued or renewed by the Division pursuant to this chapter if the applicant:

(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 Division 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 2011, 2824; A 2013, 3823)

NRS 645H.550 Payment of child support: Submission of certain information by applicant; grounds for denial of certificate of registration or permit; duty of Division. [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 and expires by limitation 2 years after that date.]

1. In addition to any other requirements set forth in this chapter, an applicant for the issuance of a certificate of registration as an asset management company or a permit to engage in asset management shall submit to the Division 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 Division 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 certificate of registration or permit; or

(b) A separate form prescribed by the Division.

3. A certificate of registration or permit may not be issued or renewed by the Division pursuant to this chapter if the applicant:

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

(Added to NRS by 2011, 2824; A 2011, 2833; 2013, 3823, 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 645H.560 Fees.

1. A person must pay the following fees for the issuance or renewal of a certificate of registration as an asset management company:

(a) For the issuance of a certificate of registration, an application fee of $2,000 for the principal office and a fee of $500 for the issuance of the initial certificate of registration.

(b) For the renewal of a certificate of registration, a fee of $500.

2. The following fees must be charged by and paid to the Division:

For each issuance of a duplicate registration or permit................................... $50

For each change in the name or location of a business...................................... 20

For each change in the name or business address of a holder of a permit...... 20

3. In addition to the fees imposed by subsection 1, each applicant for the issuance or renewal of a certificate of registration as an asset management company must pay to the Division a technology fee of $15.

(Added to NRS by 2011, 2825; A 2021, 3540)

DISCIPLINARY AND OTHER ACTIONS

NRS 645H.670 Authority of Administrator to conduct certain investigations; authority of Division to take certain disciplinary actions.

1. The Administrator may investigate the actions of any asset management company or asset manager or any person who acts in any such capacity within this State.

2. The provisions of this chapter do not limit the authority of the Division to take disciplinary action against a registered asset management company or permit holder for a violation of any of the provisions of this chapter or any regulation adopted pursuant to this chapter, nor does the payment in full of all obligations through any insurance proceeds nullify or modify the effect of any other disciplinary proceeding brought pursuant to the provisions of this chapter or any regulation adopted pursuant to this chapter.

(Added to NRS by 2011, 2826)

NRS 645H.680 Hearing officers. In any proceeding pursuant to this chapter, the Administrator may appoint hearing officers from the Department of Business and Industry who shall act as his or her agents and conduct any hearing or investigation which may be conducted by the Administrator pursuant to the provisions of this chapter.

(Added to NRS by 2011, 2831)

NRS 645H.690 Service of process: Irrevocable consent; effect of failure to file consent; method; use; effect on continuances.

1. An applicant for a certificate of registration pursuant to NRS 645H.480 or a permit pursuant to NRS 645H.530 shall file with the Division, on a form prescribed by a regulation adopted by the Division, an irrevocable consent appointing the Administrator as his or her agent for service of process in a noncriminal proceeding against the applicant, a successor or personal representative which arises under this chapter or a regulation adopted pursuant to this chapter after the consent is filed, with the same force and validity as if served personally on the person filing the consent.

2. A person who has filed an irrevocable consent in accordance with subsection 1 in connection with a previous application for a certificate of registration or permit is not required to file an additional consent.

3. If a person, including a nonresident of this State, engages in conduct prohibited or made actionable by this chapter or a regulation adopted pursuant to this chapter and the person has not filed an irrevocable consent to service of process in accordance with subsection 1, engaging in the conduct constitutes the appointment of the Administrator as the person’s agent for service of process in a noncriminal proceeding against the person, a successor or personal representative which arises out of the conduct.

4. Service under subsection 1 or 3 may be made by leaving a copy of the process in the Office of the Administrator, but it is not effective unless:

(a) The plaintiff, who may be the Administrator, sends notice of the service and a copy of the process by registered or certified mail, return receipt requested, to the defendant or respondent at the address set forth in the consent to service of process or, if no consent to service of process has been filed, at the last known address, or takes other steps which are reasonably calculated to give actual notice; and

(b) The plaintiff files an affidavit of compliance with this subsection in the proceeding on or before the return day of the process, if any, or within such further time as the court, or the Administrator in a proceeding before the Administrator, allows.

5. Service as provided in subsection 4 may be used in a proceeding before the Administrator or by the Administrator in a proceeding in which the Administrator is the moving party.

6. If the process is served under subsection 4, the court, or the Administrator in a proceeding before the Administrator, may order continuances as may be necessary to afford the defendant or respondent a reasonable opportunity to defend.

(Added to NRS by 2011, 2830)

NRS 645H.700 Authorized disciplinary action; grounds; maintenance of log of certain complaints; orders imposing discipline deemed public records.

1. The Division may require an asset management company or asset manager to pay an administrative fine of not more than $10,000 for each violation he or she commits or suspend, revoke, deny the renewal of or place conditions upon his or her certificate of registration or permit, or impose any combination of those actions, at any time if the asset management company or asset manager has, by false or fraudulent representation, obtained a certificate of registration or permit, or the asset management company or asset manager, whether or not acting as such, is found guilty of:

(a) Making any material misrepresentation.

(b) Making any false promises of a character likely to influence, persuade or induce.

(c) Failing to maintain, for review and audit by the Division, each service report, contractual agreement, power of attorney or other legal authorization entered into with a client and governed by the provisions of this chapter.

(d) Accepting or collecting any money which belongs to another person.

(e) Violating any order of the Division, any agreement with the Division, any of the provisions of this chapter or chapters 116, 119, 119A, 119B, 645, 645A or 645C of NRS or any regulation adopted pursuant thereto.

(f) Paying a commission, compensation or a finder’s fee to any person for performing the services of an asset management company or asset manager who does not have a certificate of registration or permit in this State.

(g) A conviction of, or the entry of a plea of guilty, guilty but mentally ill or nolo contendere to:

(1) A felony relating to the practice of the asset management company or asset manager; or

(2) Any crime involving fraud, deceit, misrepresentation or moral turpitude.

(h) Gross negligence or incompetence in performing any act for which the person is required to hold a certificate of registration, permit or license pursuant to this chapter or chapter 119, 119A, 119B or 645 of NRS.

(i) Any other conduct which constitutes deceitful, fraudulent or dishonest dealing.

(j) Any conduct which took place before the person obtained his or her certificate of registration or permit which was unknown to the Division and which would have been grounds for denial of the certificate of registration or permit had the Division been aware of the conduct.

(k) Knowingly allowing any person whose certificate of registration or permit has been revoked to act as an asset management company or asset manager with or on behalf of the asset management company or asset manager.

(l) Failing to maintain insurance at the level required pursuant to this chapter.

(m) Failing to produce any document, book or record in his or her possession, or under his or her control, concerning any real estate transaction or asset management service under investigation by the Division.

2. The Division may take action pursuant to this section against a person who is subject to this chapter for the suspension or revocation of a certificate of registration issued to an asset management company or a permit issued to an asset manager by any other jurisdiction.

3. The Division may take action pursuant to this section against any person who:

(a) Is a registered asset management company or holds a permit as an asset manager pursuant to this chapter; and

(b) In connection with any property for which the person is engaging in the business of asset management pursuant to this chapter:

(1) Is convicted of violating any of the provisions of NRS 202.470;

(2) Has been notified in writing by the appropriate governmental agency of a potential violation of NRS 244.360, 244.3603 or 268.4124 and has failed to inform the owner of the property of such notification; or

(3) Has been directed in writing by the owner of the property to correct a potential violation of NRS 244.360, 244.3603 or 268.4124 and has failed to correct the potential violation, if such corrective action is within the scope of the person’s duties pursuant to a contract power of attorney or other legal authorization entered into with a client.

4. The Division shall maintain a log of any complaints that it receives relating to activities for which the Division may take action against a person holding a certificate of registration or permit to engage in the business of asset management pursuant to this chapter.

5. An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.

(Added to NRS by 2011, 2826)

NRS 645H.705 Administrative fine for engaging in certain conduct without certificate of registration, permit or other authorization; procedure for imposition of fine; judicial review; exceptions.

1. In addition to any other remedy or penalty, the Division may impose an administrative fine against any person who knowingly:

(a) Engages or offers to engage in any activity for which a certificate of registration or permit or any other authorization is required pursuant to this chapter, or any regulation adopted pursuant thereto, if the person does not hold the required certificate of registration or permit or has not received the required authorization; or

(b) Assists or offers to assist another person in the commission of a violation described in paragraph (a).

2. If the Division imposes an administrative fine against a person pursuant to this section, the amount of the administrative fine must not exceed the amount of any gain or economic benefit that the person derived from the violation or $5,000, whichever is greater.

3. In determining the appropriate amount of the administrative fine, the Division shall consider:

(a) The severity of the violation and the degree of any harm that the violation caused to other persons;

(b) The nature and amount of any gain or economic benefit that the person derived from the violation;

(d) Any other facts or circumstances that the Division deems to be relevant.

4. Before the Division may impose the administrative fine, the Division must provide the person with notice and an opportunity to be heard.

5. The person is entitled to judicial review of the decision of the Division in the manner provided by chapter 233B of NRS.

6. The provisions of this section do not apply to a person who engages or offers to engage in activities within the provisions of this chapter if:

(a) A specific statute exempts the person from complying with the provisions of this chapter with regard to those activities; and

(b) The person is acting in accordance with the exemption while engaging or offering to engage in those activities.

(Added to NRS by 2011, 2821)

NRS 645H.710 Disciplinary or other action for failure to pay money owed to Division. In addition to any other remedy or penalty, the Division may:

1. Refuse to issue a certificate of registration or permit to a person who has failed to pay any money which the person owes to the Division.

2. Refuse to renew, or suspend or revoke, the certificate of registration or permit of a person who has failed to pay that money.

(Added to NRS by 2011, 2828)

1. If the Division 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 holder of a certificate of registration or permit, the Division shall deem the certificate of registration or permit to be suspended at the end of the 30th day after the date the court order was issued unless the Division receives a letter issued to the holder of the certificate of registration or permit by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the certificate of registration or permit has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

2. The Division shall reinstate a certificate of registration or permit that has been suspended by a district court pursuant to NRS 425.540 if the Division receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the holder of the certificate of registration or permit stating that the holder of the certificate of registration or permit has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

(Added to NRS by 2011, 2828)

NRS 645H.730 Knowledge of associate or employer of violation by asset management company or asset manager; penalties.

1. Any unlawful act or violation of any of the provisions of this chapter by any asset management company or asset manager is not cause to suspend, revoke or deny the renewal of the certificate of registration or permit of an asset management company or asset manager associated with an asset management company or asset manager, unless it appears to the satisfaction of the Division that the associate knew or should have known thereof. A course of dealing shown to have been persistently and consistently followed by any asset management company or asset manager constitutes prima facie evidence of such knowledge upon the part of the associate.

2. If it appears that a registered asset management company knew or should have known of any unlawful act or violation on the part of an asset manager employed by the asset management company, in the course of his or her employment, the Division may suspend, revoke or deny the renewal of the certificate of registration of the asset management company and may assess a civil penalty of not more than $5,000.

3. The Division may suspend, revoke or deny the renewal of the certificate of registration of an asset management company and may assess a civil penalty of not more than $5,000 against the asset management company if it appears that the asset management company has failed to maintain adequate supervision of an asset manager associated with the asset management company and that asset manager commits any unlawful act or violates any provision of this chapter.

(Added to NRS by 2011, 2828)

NRS 645H.740 Expiration, revocation or surrender of certificate of registration or permit does not prohibit disciplinary action against holder of certificate of registration or permit. The expiration or revocation of a certificate of registration or permit by operation of law or by order or decision of the Division or a court of competent jurisdiction or the voluntary surrender of a certificate of registration or a permit by an asset management company or asset manager does not:

1. Prohibit the Administrator or Division from initiating or continuing an investigation of, or action or disciplinary proceeding against, the asset management company or asset manager as authorized pursuant to the provisions of this chapter or the regulations adopted pursuant thereto; or

2. Prevent the imposition or collection of any fine or penalty authorized pursuant to the provisions of this chapter or the regulations adopted pursuant thereto against the asset management company or asset manager.

(Added to NRS by 2011, 2829)

NRS 645H.750 Duty to report certain convictions and pleas to Division.

1. An asset management company that is a natural person or an asset manager shall notify the Division in writing if he or she is convicted of, or enters a plea of guilty, guilty but mentally ill or nolo contendere to, a felony or any offense involving moral turpitude.

2. An asset management company that is a natural person or an asset manager shall submit the notification required by subsection 1:

(a) Not more than 10 days after the conviction or entry of the plea of guilty, guilty but mentally ill or nolo contendere; and

(b) When submitting an application to renew a certificate of registration or permit issued pursuant to this chapter.

(Added to NRS by 2011, 2830)

PROHIBITED ACTS; PENALTIES

NRS 645H.760 Unlawful to engage in certain conduct without certificate of registration or permit; penalty.

1. It is unlawful for any person, limited-liability company, partnership, association or corporation to engage in the business of, act in the capacity of, advertise or assume to act as an asset management company without first obtaining a certificate of registration from the Division pursuant to NRS 645H.480.

2. It is unlawful for any asset manager to engage in the business of asset management without first obtaining a permit from the Division pursuant to NRS 645H.530.

3. A person who violates a provision of this section is guilty of a misdemeanor.

(Added to NRS by 2011, 2831)

NRS 645H.770 Unlawful acts; penalty.

1. It is unlawful for an asset management company or an asset manager or other employee, director, officer or agent of an asset management company to:

(a) Unless the asset management company is acting pursuant to a court order, evict a real property owner or a tenant of a real property owner until after the time during which the real property owner may redeem the real property in foreclosure.

(b) Dispose of the personal property of a homeowner or a tenant of a homeowner except as provided in NRS 645H.520.

(d) Perform any repair, maintenance or renovation on the real property in foreclosure:

(1) Which is required to be performed by a person holding a license unless such repair, maintenance or renovation is done by a person licensed in this State to perform such repair, maintenance or renovation; or

(2) Which requires a permit or inspection by any governmental entity in this State, unless the permit is first obtained and the inspection is performed after completion.

(e) Conduct any activity for which a license or permit is required pursuant to chapter 645 of NRS without first obtaining such a license or permit.

(f) Fail to provide the disclosure form required pursuant to NRS 113.130 for a purchaser of a residence in foreclosure for which the asset management company or its asset manager, employee, director, officer or agent has provided asset management.

(g) Receive, collect, hold or manage any money which belongs to another person, including, without limitation, collecting or managing rent from a tenant unless the person holds a permit as a property manager pursuant to chapter 645 of NRS and is receiving, collecting, holding or managing the money pursuant to a property management agreement.

2. A person who violates a provision of this section is guilty of a misdemeanor.

(Added to NRS by 2011, 2831)