[Rev. 3/18/2013 2:05:12 PM]

Link to Page 940

 

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ê1997 Statutes of Nevada, Page 941 (Chapter 276, SB 346)ê

 

..........(name of credible witness).........., a credible witness personally known to me, to be the person whose name is subscribed to the above instrument and he or she proved he or she signed the instrument.]

      This instrument was acknowledged before me on .......... (date) .......... by .......... (name of person) .......... who personally appeared before me and whose identity I verified upon the oath of .......... (name of credible witness) .......... , a credible witness personally known to me.

 

                                                                                                .......................................................

                                                                                                (Signature of notarial officer)

 

      Sec. 29.  NRS 240.170 is hereby amended to read as follows:

      240.170  The [governor] secretary of state may, when in his judgment it may be necessary, appoint in each of the United States, and in each of the territories and districts thereof, and in each foreign state, kingdom, province, territory and colony, one or more commissioners of deeds, to continue in office 4 years, unless sooner removed by him.

      Sec. 30.  NRS 240.210 is hereby amended to read as follows:

      240.210  Every commissioner of deeds appointed by the [governor] secretary of state shall have power:

      1.  To administer oaths.

      2.  To take and certify depositions and affidavits to be used in this state.

      3.  To take the acknowledgment or proof of any deed or other instrument to be recorded in this state, and duly certify the same under his hand and official seal.

      Sec. 31.  NRS 240.250 is hereby amended to read as follows:

      240.250  The [governor] secretary of state is empowered to appoint and commission commissioned abstracters in and for the several counties of this state, in any number in which applications may be made to him, as in his judgment may be deemed advisable.

      Sec. 32.  NRS 240.320 is hereby amended to read as follows:

      240.320  The [governor] secretary of state may at any time, for cause, revoke the commission of [any] a commissioned abstracter.

      Sec. 33.  NRS 240.140 and 240.1675 are hereby repealed.

      Sec. 34.  The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1997.

      Sec. 35.  The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

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ê1997 Statutes of Nevada, Page 942ê

 

CHAPTER 277, AB 434

Assembly Bill No. 434–Committee on Ways and Means

CHAPTER 277

AN ACT making a supplemental appropriation from the state highway fund to the Administrative Services Division of the Department of Motor Vehicles and Public Safety for unanticipated operating expenses; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  There is hereby appropriated from the state highway fund to the Administrative Services Division of the Department of Motor Vehicles and Public Safety the sum of $453,788 for unanticipated operating expenses. This appropriation is supplemental to that made by section 28 of chapter 446, Statutes of Nevada 1995, at page 1392.

      Sec. 2.  This act becomes effective upon passage and approval or on June 30, 1997, whichever occurs earlier.

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CHAPTER 278, SB 401

Senate Bill No. 401–Senators Titus, Wiener, Adler, Coffin, Mathews, Neal, Regan, Schneider and Shaffer

CHAPTER 278

AN ACT relating to trade practices; requiring a manufacturer to provide an express warranty for a device that enhances the ability of a person to perform a major life activity; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 597 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 13, inclusive, of this act.

      Sec. 2.  As used in sections 2 to 13, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 6, inclusive, of this act, have the meanings ascribed to them in those sections.

      Sec. 3.  “Assistive device” means a device purchased or accepted for delivery in this state that enhances the ability of a person to perform a major life activity, including, but not limited to:

      1.  Manual or motorized wheelchairs, scooters and other devices that enhance the ability of a person to move;

      2.  Hearing aids, devices for telecommunication and any other devices that enhance the ability of a person to hear;

      3.  Voice synthesizers, optical scanners, Braille printers and any other devices that enhance the ability of a person to communicate;


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ê1997 Statutes of Nevada, Page 943 (Chapter 278, SB 401)ê

 

      4.  Light amplifiers, magnification equipment, Braille equipment and any other devices that enhance the ability of a person to see; and

      5.  Any other device that enhances the ability of a person to move, hear, communicate or see.

      Sec. 4.  “Consumer” means:

      1.  A person who leases or purchases, other than for the purposes of resale, an assistive device;

      2.  A person to whom an assistive device is transferred during the period the express warranty of a manufacturer is in effect; or

      3.  Any other person who is entitled by the terms of the warranty to enforce its obligations.

      Sec. 5.  “Dealer” means a person who sells or leases assistive devices to consumers.

      Sec. 6.  “Manufacturer” means a person who manufactures or assembles assistive devices or an agent of that person, including an importer or a distributor. The term does not include a dealer.

      Sec. 7.  1.  A manufacturer who, directly or through a dealer, sells or leases to a consumer in this state an assistive device that has not been previously sold or leased shall provide an express warranty for that device. The express warranty does not:

      (a) Take effect until the consumer takes possession of the device; and

      (b) Expire less than 1 year after the delivery of the device to the consumer.

      2.  If a manufacturer fails to provide an express warranty required by this section, the assistive device shall be deemed to be covered by the express warranty of the manufacturer.

      Sec. 8.  If an assistive device does not conform to the express warranty of the manufacturer and the consumer reports the nonconformity to the manufacturer or dealer and makes the assistive device available for repair before the expiration of the express warranty, the manufacturer or dealer shall make the repairs necessary to conform the assistive device to the express warranty without regard to whether the repairs will be made after the expiration of the express warranty.

      Sec. 9.  1.  If, after a reasonable number of repairs, the manufacturer or dealer is unable to conform the assistive device to the express warranty and the defect or condition causing the nonconformity substantially impairs the use and value of the assistive device to the consumer and is not the result of abuse, neglect or unauthorized modifications or alterations of the assistive device by the consumer, the manufacturer shall:

      (a)Replace the assistive device with an assistive device of the same model and having the same features as the replaced device, or if such a device cannot be delivered to the consumer within a reasonable period, a comparable assistive device substantially similar to the replaced device; or

      (b)Accept the return of the assistive device from the consumer and refund to the consumer, within 30 days after the return of the device, the purchase price of the device, including all sales taxes and finance charges paid by the consumer, and any other expenses related to the purchase and use of the assistive device, less a reasonable allowance for use of the assistive device. As used in this paragraph “reasonable allowance for use” means that amount that is directly attributable to the use of the device by the consumer before his first report of the nonconformity to the manufacturer or dealer and during any subsequent period that the assistive device is not out of service for repairs.


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ê1997 Statutes of Nevada, Page 944 (Chapter 278, SB 401)ê

 

amount that is directly attributable to the use of the device by the consumer before his first report of the nonconformity to the manufacturer or dealer and during any subsequent period that the assistive device is not out of service for repairs.

      2.  It is presumed that a reasonable number of repairs have been undertaken to conform an assistive device to an applicable express warranty if:

      (a)The same nonconformity has been subject to repair three or more times by the manufacturer or dealer within the time the express warranty is in effect, but the nonconformity continues to exist; or

      (b)The assistive device is unavailable for use by the consumer because of a nonconformity for a cumulative total of 30 days or more within the period the express warranty is in effect, except that if the necessary repairs cannot be made for reasons which are beyond the control of the manufacturer or dealer, the number of days required to give rise to the presumption must be appropriately extended.

      Sec. 10.  1.  If an assistive device covered by an express warranty of a manufacturer is made available for repair pursuant to section 8 of this act and:

      (a) The device is not repaired within 10 working days, including the day on which the assistive device is made available for repair; or

      (b) The defect or malfunction that is the cause of nonconformity is the same defect or malfunction for which the assistive device has been made available for repair two or more times,

the manufacturer shall provide to the consumer, for the duration of the period of repair, a reimbursement of not more than $30 each day for the rental of an assistive device.

      2.  If a dealer does not deliver the assistive device to the manufacturer in a timely manner that allows the manufacturer to repair the device within 10 working days, the manufacturer may bring an action against the dealer for reimbursement of any money that the manufacturer is required to pay to a consumer pursuant to subsection 1.

      Sec. 11.  An assistive device that is returned to a manufacturer by a consumer in this state pursuant to section 9 of this act may not be sold or leased in this state unless the reason for the return of the assistive device is disclosed to the prospective consumer.

      Sec. 12.  1.  In addition to any other remedy available to a consumer, a consumer may bring an action to recover any damages caused by a manufacturer or dealer who violates any of the provisions of sections 2 to 13, inclusive, of this act.

      2.  The court shall award to the prevailing party not more than twice the amount of the damages, and costs, including attorney’s fees and any equitable relief that the court determines is appropriate.

      Sec. 13.  1.  The provisions of sections 2 to 13, inclusive, of this act, do not limit any rights or remedies a consumer may have pursuant to any other law or agreement.

      2.  A waiver by a consumer of any of the rights provided pursuant to sections 2 to 13, inclusive, of this act, is void.

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ê1997 Statutes of Nevada, Page 945ê

 

CHAPTER 279, AB 315

Assembly Bill No. 315–Assemblymen Ohrenschall, Anderson, Sandoval, Perkins, Buckley, Carpenter, Krenzer, Herrera, Amodei, Neighbors, de Braga, Segerblom, Bache, Giunchigliani, Lee, Humke, Koivisto, Mortenson, Collins, Price, Chowning, Manendo, Evans, Arberry, Goldwater and Parks

CHAPTER 279

AN ACT relating to probation; requiring that a probationer who is not eligible for an honorable discharge from probation receive a dishonorable discharge under certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 176.245 is hereby amended to read as follows:

      176.245  [Every defendant:

      1.  Whose probation has been revoked; or

      2.  Whose] A defendant whose term of probation has expired [, and:

      (a)] and:

      1.  Whose whereabouts are unknown;

      [(b)] 2.  Who has failed to make restitution in full as ordered by the court, without a verified showing of economic hardship; or

      [(c)] 3.  Who has otherwise failed to qualify for an honorable discharge as provided in NRS 176.225,

is not eligible for an honorable discharge and [may] must be given a dishonorable discharge. A dishonorable discharge releases the probationer from any further obligation, except a civil liability arising on the date of discharge for any unpaid restitution, but does not entitle the probationer to any privilege conferred by NRS 176.225.

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ê1997 Statutes of Nevada, Page 946ê

 

CHAPTER 280, AB 12

Assembly Bill No. 12–Committee on Health and Human Services

CHAPTER 280

AN ACT relating to the Western Regional Higher Education Compact; authorizing the commissioners of the Western Interstate Commission for Higher Education from the State of Nevada to require certain students to perform community service as a condition to receiving a support fee; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 397 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The provisions of this section apply only to support fees received by a student on or after July 1, 1997.

      2.  The three commissioners from the State of Nevada, acting jointly, may require a student who is certified to study to practice in a profession which could benefit a medically underserved area of this state, as that term is defined by the officer of rural health of the University of Nevada School of Medicine, to practice in such an area or to practice in an area designated by the Secretary of Health and Human Services:

      (a) Pursuant to 42 U.S.C. § 254c, as containing a medically underserved population; or

      (b) Pursuant to 42 U.S.C. § 254e, as a health professional shortage area,

as a condition to receiving a support fee.

      3.  If a person agrees to practice in a medically underserved area of this state pursuant to subsection 2 for at least 2 years, the three commissioners from the State of Nevada, acting jointly, may forgive the portion of the support fee designated as the loan of the person.

      4.  If a person returns to this state but does not practice in a medically underserved area of this state pursuant to subsection 2 for at least 2 years, the three commissioners from the State of Nevada, acting jointly, shall assess a default charge in an amount not less than three times the portion of the support fee designated as the loan of the person, plus interest.

      5.  As used in this section, a “profession which could benefit a medically underserved area of this state” includes, without limitation, dentistry, physical therapy, pharmacy and practicing as a physicians’ assistant.

      Sec. 2.  NRS 397.0615 is hereby amended to read as follows:

      397.0615  Financial support provided to a student who is chosen by the three commissioners from the State of Nevada to receive such support from the Western Interstate Commission for Higher Education must be provided in the form of a support fee. [Twenty-five] Except as otherwise provided in section 1 of this act, 25 percent of the support fee is a loan that the student must repay with interest pursuant to NRS 397.063 or 397.064, as appropriate. Seventy-five percent of the support fee is a stipend that the student is not required to repay, except as otherwise provided in NRS 397.0653.


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ê1997 Statutes of Nevada, Page 947 (Chapter 280, AB 12)ê

 

student is not required to repay, except as otherwise provided in NRS 397.0653.

      Sec. 3.  NRS 397.064 is hereby amended to read as follows:

      397.064  Loans, from the Western Interstate Commission for Higher Education’s fund for student loans, to students who enter the program on or after July 1, 1985, must be made upon the following terms:

      1.  All loans must bear interest at 8 percent per annum from the first day of the academic term for which the student received the loan.

      2.  [Each] Except as otherwise provided in section 1 of this act, each student receiving a loan must repay the loan with interest following the termination of his education or completion of his internship for which the loan is made.

      3.  The loan must be repaid in monthly installments over the period allowed, as set forth in subsection 4, with the first installment due 1 year after the date of the termination of his education or the completion of his internship for which the loan is made. The amounts of the installments may not be less than $50 and may be calculated to allow a smaller payment at the beginning of the repayment period, with each succeeding payment gradually increasing so that the total amount due will have been paid within the period allowed for repayment.

      4.  The three commissioners from the State of Nevada, acting jointly, shall, or shall delegate to the director of the Western Interstate Commission for Higher Education the power to, schedule the repayment within the following periods:

      (a) Five years for loans which total less than $10,000.

      (b) Eight years for loans which total $10,000 or more but less than $20,000.

      (c) Ten years for loans which total $20,000 or more.

      [3.] 5.  A student loan may not exceed 50 percent of the student fees for any academic year.

      [4.] 6.  A delinquency charge may be assessed on any installment delinquent 10 days or more in the amount of 8 percent of the installment or $4, whichever is greater, but not more than $15.

      [5.] 7.  The reasonable costs of collection and an attorney’s fee may be recovered in the event of delinquency.

      Sec. 4.  This act becomes effective on July 1, 1997.

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ê1997 Statutes of Nevada, Page 948ê

 

CHAPTER 281, SB 294

Senate Bill No. 294–Committee on Human Resources and Facilities

CHAPTER 281

AN ACT relating to financial administration; providing standards for the investment and management of money for eleemosynary purposes; authorizing the disclosure of the financial records of postsecondary educational institutions under certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 164 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 15, inclusive, of this act.

      Sec. 2.  Sections 2 to 15, inclusive, of this act may be cited as the Uniform Management-of-Institutional-Funds Act.

      Sec. 3.  As used in sections 2 to 15, inclusive, of this act, the words and terms defined in sections 4 to 9, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 4.  “Donative instrument” means a will, deed, grant, conveyance, agreement, memorandum, writing or other governing document, including the terms of any institutional solicitations from which an institutional fund resulted, under which property is transferred to or held by an institution as an institutional fund.

      Sec. 5.  “Endowment fund” means an institutional fund, or any part of the fund, not wholly expendable by the institution currently under the terms of the applicable donative instrument.

      Sec. 6.  “Governing board” means the body responsible for the management of an institution or institutional fund.

      Sec. 7.  “Historical monetary value” means the aggregate fair value in money of an endowment fund at the time it became an endowment fund, each subsequent donation to the fund at the time it is made, or each accumulation made pursuant to a direction in the applicable donative instrument at the time the accumulation is added to the fund.

      Sec. 8.  “Institution” means an organization, whether or not incorporated, organized and operated exclusively for educational, religious, charitable or other eleemosynary purposes, or a governmental organization to the extent that it holds funds exclusively for any of these purposes.

      Sec. 9.  “Institutional fund” means a fund held by an institution for its exclusive use, benefit or purposes, but does not include a fund held for an institution by a trustee that is not an institution or a fund in which a beneficiary that is not an institution has an interest other than possible rights that could arise upon violation or failure of the purposes of the fund.

      Sec. 10.  1.  A governing board may appropriate for expenditure for the uses and purposes for which an endowment fund is established so much of the net appreciation, realized and unrealized, in the fair value of the assets of the fund over the historical monetary value of the fund as is prudent under the standard established by section 14 of this act. This section does not limit the authority of the governing board to expend funds as permitted under other law, the terms of the applicable donative instrument or the charter of the institution.


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ê1997 Statutes of Nevada, Page 949 (Chapter 281, SB 294)ê

 

as permitted under other law, the terms of the applicable donative instrument or the charter of the institution.

      2.  A determination of historical monetary value made in good faith by the institution is conclusive.

      Sec. 11.  1.  Section 10 of this act does not apply if the applicable donative instrument indicates the donor’s intention that net appreciation may not be expended. A restriction upon the expenditure of net appreciation may not be implied from a designation of a gift as an endowment, or from a direction or authorization in the applicable donative instrument to use only “income,” “interest,” “dividends,” or “rents, issues or profits,” or “to preserve the principal intact,” or a direction that contains other words of similar import.

      2.  This rule of construction applies to donative instruments executed or in effect before, on or after October 1, 1997.

      Sec. 12.  In addition to an investment otherwise authorized by law or by the applicable donative instrument, and without restriction to investments a fiduciary may make, a governing board, subject to any specific limitations set forth in the applicable donative instrument or in the applicable law other than law relating to investments by a fiduciary, may:

      1.  Invest and reinvest an institutional fund in any real or personal property deemed advisable by the governing board, whether or not it produces a current return, including mortgages, stocks, bonds, debentures and other securities of profit or nonprofit corporations, shares in or obligations of associations, partnerships or natural persons, and obligations of any government or governmental subdivision or instrumentality;

      2.  Retain property contributed by a donor to an institutional fund for as long as the governing board deems advisable;

      3.  Include all or any part of an institutional fund in any pooled or common fund maintained by the institution; and

      4.  Invest all or part of an institutional fund in any other pooled or common fund available for investment, including shares or interests in regulated investment companies, mutual funds, common trust funds, investment partnerships, real estate investment trusts or similar organizations in which funds are commingled and investments are determined by persons other than the governing board.

      Sec. 13.  Except as otherwise provided by the applicable donative instrument or by applicable law relating to governmental institutions or funds, a governing board may:

      1.  Delegate to its committees, officers or employees of the institution or the fund, or agents, including investment counsel, the authority to act in place of the board in investment and reinvestment of institutional funds;

      2.  Contract with independent investment advisers, investment counsel or managers, banks, or trust companies, so to act; and

      3.  Authorize the payment of compensation for advisory or managerial services.

      Sec. 14.  1.  In the administration of the powers to appropriate appreciation, to make and retain investments, and to delegate management of the investment of institutional funds or of property held as an investment, members of a governing board shall exercise ordinary care and prudence, appropriate to the character of the institution, under the facts and circumstances prevailing at the time of the action or decision.


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ê1997 Statutes of Nevada, Page 950 (Chapter 281, SB 294)ê

 

appropriate to the character of the institution, under the facts and circumstances prevailing at the time of the action or decision. In so doing, they shall consider present and future needs of the institution in carrying out its educational, religious, charitable or other eleemosynary purposes, present and anticipated financial requirements, expected total return on its investments, price level trends and general economic conditions.

      2.  Each investment must be considered in its relation to other investments made or contemplated.

      Sec. 15.  1.  With the written consent of the donor, a governing board may release, in whole or in part, a restriction imposed by the applicable donative instrument on the use or investment of an institutional fund.

      2.  If the written consent of a donor cannot be obtained by reason of his death, disability, unavailability or impossibility of identification, the governing board may apply in the name of the institution to the district court for release of a restriction imposed by the applicable donative instrument on the use or investment of an institutional fund. The attorney general must be notified of the application and given an opportunity to be heard. If the court finds that the restriction is obsolete, inappropriate or impracticable, it may by order release the restriction in whole or in part. A release under this subsection may not change an endowment fund to a fund that is not an endowment fund.

      3.  A release under this section may not allow a fund to be used for purposes other than the educational, religious, charitable or other eleemosynary purposes of the institution affected.

      4.  This section does not limit the application of the doctrine of applying a charitable gift as nearly as possible in conformity with the intention of the donor.

      Sec. 16.  NRS 394.026 is hereby amended to read as follows:

      394.026  “Confidential” means information that is subject to disclosure only to:

      1.  The attorney general;

      2.  A member of the commission or its staff; or

      3.  As deemed appropriate by the administrator, a person responsible for reviewing the curriculum or financial records of a postsecondary educational institution.

      Sec. 17.  This act becomes effective upon passage and approval.

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ê1997 Statutes of Nevada, Page 951ê

 

CHAPTER 282, SB 296

Senate Bill No. 296–Senator Schneider

CHAPTER 282

AN ACT relating to shooting ranges; providing that a shooting range does not constitute a nuisance in certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 40.140 is hereby amended to read as follows:

      40.140  1.  Except as otherwise provided in [subsection 2,] this section, anything which is injurious to health, or indecent and offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life or property, is a nuisance, and the subject of an action. The action may be brought by any person whose property is injuriously affected, or whose personal enjoyment is lessened by the nuisance, and by the judgment the nuisance may be enjoined or abated, as well as damages recovered.

      2.  It is presumed:

      (a) That an agricultural activity conducted on farmland, consistent with good agricultural practice and established before surrounding nonagricultural activities is reasonable. Such activity does not constitute a nuisance unless the activity has a substantial adverse effect on the public health or safety.

      (b) That an agricultural activity which does not violate a federal, state or local law, ordinance or regulation constitutes good agricultural practice.

      3.  A shooting range does not constitute a nuisance with respect to any noise attributable to the shooting range if the shooting range is in compliance with the provisions of all applicable statutes, ordinances and regulations concerning noise:

      (a) As those provisions existed on October 1, 1997, for a shooting range in operation on or before October 1, 1997; or

      (b) As those provisions exist on the date that the shooting range begins operation, for a shooting range that begins operation after October 1,1997.

A shooting range is not subject to any state or local law related to the control of noise that is adopted or amended after the date set forth in paragraph (a) or (b), as applicable, and does not constitute a nuisance for failure to comply with any such law.

      4.  As used in this section, “shooting range” means an area designed and used for archery or sport shooting, including, but not limited to, sport shooting that involves the use of rifles, shotguns, pistols, silhouettes, skeet, trap, black powder or other similar items.

      Sec. 2.  NRS 202.450 is hereby amended to read as follows:

      202.450  1.  A public nuisance is a crime against the order and economy of the state.

      2.  Every place:


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ê1997 Statutes of Nevada, Page 952 (Chapter 282, SB 296)ê

 

      (a) Wherein any gambling, bookmaking or pool selling is conducted without a license as provided by law, or wherein any swindling game or device, or bucket shop, or any agency therefor is conducted, or any article, apparatus or device useful therefor is kept;

      (b) Wherein any fighting between animals or birds is conducted;

      (c) Wherein any dog races are conducted without a license as provided by law;

      (d) Wherein any intoxicating liquors are kept for unlawful use, sale or distribution; or

      (e) Where vagrants resort,

is a public nuisance.

      3.  Every act unlawfully done and every omission to perform a duty, which act or omission:

      (a) Annoys, injures or endangers the safety, health, comfort or repose of any considerable number of persons;

      (b) Offends public decency;

      (c) Unlawfully interferes with, befouls, obstructs or tends to obstruct, or renders dangerous for passage, a lake, navigable river, bay, stream, canal, ditch, millrace or basin, or a public park, square, street, alley, bridge, causeway or highway; or

      (d) In any way renders a considerable number of persons insecure in life or the use of property,

is a public nuisance.

      4.  Agricultural activity conducted on farmland consistent with good agricultural practice and established before surrounding nonagricultural activities is not a public nuisance unless it has a substantial adverse effect on the public health or safety. It is presumed that an agricultural activity which does not violate a federal, state or local law, ordinance or regulation constitutes good agricultural practice.

      5.  A shooting range is not a public nuisance with respect to any noise attributable to the shooting range if the shooting range is in compliance with the provisions of all applicable statutes, ordinances and regulations concerning noise:

      (a) As those provisions existed on October 1, 1997, for a shooting range that begins operation on or before October 1, 1997; or

      (b) As those provisions exist on the date that the shooting range begins operation, for a shooting range in operation after October 1, 1997.

A shooting range is not subject to any state or local law related to the control of noise that is adopted or amended after the date set forth in paragraph (a) or (b), as applicable, and does not constitute a nuisance for failure to comply with any such law.

      6.  As used in this section, “shooting range” has the meaning ascribed to it in NRS 40.140.

      Sec. 3.  NRS 244.363 is hereby amended to read as follows:

      244.363  [The] Except as otherwise provided in subsection 3 of NRS 40.140 and subsection 5 of NRS 202.450, the boards of county commissioners in their respective counties may, by ordinance regularly enacted, regulate, control and prohibit, as a public nuisance, excessive noise which is injurious to health or which interferes unreasonably with the comfortable enjoyment of life or property within the boundaries of the county.


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ê1997 Statutes of Nevada, Page 953 (Chapter 282, SB 296)ê

 

comfortable enjoyment of life or property within the boundaries of the county.

      Sec. 4.  NRS 266.335 is hereby amended to read as follows:

      266.335  The city council may:

      1.  [Determine] Except as otherwise provided in subsection 3 of NRS 40.140 and subsection 5 of NRS 202.450, determine by ordinance what shall be deemed nuisances.

      2.  Provide for the abatement, prevention and removal of such nuisances at the expense of the person creating, causing or committing such nuisances.

      3.  Provide that such expense of removal [shall be] is a lien upon the property upon which the nuisance is located. Such lien [shall:] must:

      (a) Be perfected by filing with the county recorder a statement by the city clerk of the amount of expenses due and unpaid and describing the property subject to the lien.

      (b) Be coequal with the latest lien thereon to secure the payment of general taxes.

      (c) Not be subject to extinguishment by the sale of any property on account of the nonpayment of general taxes.

      (d) Be prior and superior to all liens, claims, encumbrances and titles other than the liens of assessments and general taxes.

      4.  Provide any other penalty or punishment of persons responsible for such nuisances.

      Sec. 5.  NRS 268.412 is hereby amended to read as follows:

      268.412  [The] Except as otherwise provided in subsection 3 of NRS 40.140 and subsection 5 of NRS 202.450, the city council or other governing body of a city may, by ordinance regularly enacted, regulate, control and prohibit, as a public nuisance, excessive noise which is injurious to health or which interferes unreasonably with the comfortable enjoyment of life or property within the boundaries of the city.

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ê1997 Statutes of Nevada, Page 954ê

 

CHAPTER 283, SB 248

Senate Bill No. 248–Committee on Commerce and Labor

CHAPTER 283

AN ACT relating to real estate; providing for the regulation of the business of property management; prohibiting a person from acting as a property manager without the proper license and a permit issued by the real estate division of the department of business and industry; revising provisions governing the trust account of a real estate broker; amending the grounds for disciplinary action by the real estate commission; providing a penalty; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 645 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6.5, inclusive, of this act.

      Sec. 2.  “Property management” means the physical, administrative or financial maintenance and management of real property, or the supervision of such activities for a fee, commission or other compensation or valuable consideration, pursuant to a brokerage agreement.

      Sec. 3.  “Property manager” means a person engaged in property management who, as an employee or independent contractor, is associated with a licensed real estate broker, whether or not for compensation.

      Sec. 4.  1.  A person who is licensed pursuant to this chapter as a real estate broker, real estate broker-salesman or real estate salesman may apply to the real estate division for a permit to engage in property management.

      2.  An applicant for a permit must:

      (a) Furnish proof satisfactory to the division that he has successfully completed at least 24 classroom hours of instruction in property management; and

      (b) Comply with all other requirements established by the commission for the issuance of a permit.

      3.  A permit expires, and may be renewed, at the same time as the license of the holder of the permit.

      4.  An applicant for the renewal of a permit must:

      (a) Furnish proof satisfactory to the division that he has successfully completed at least 3 of the hours of the continuing education required for the renewal of his license pursuant to NRS 645.575 in an approved educational course, seminar or conference concerning property management; and

      (b) Comply with all other requirements established by the commission for the renewal of a permit.

      5.  The commission may adopt such regulations as it determines are necessary to carry out the provisions of this section. The regulations may, without limitation:

      (a) Establish additional requirements for the issuance or renewal of a permit.

      (b) Establish a fee for the issuance and renewal of a permit.

      (c) Set forth standards of education for the approval of a course of instruction to qualify a person for a permit pursuant to this section.


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ê1997 Statutes of Nevada, Page 955 (Chapter 283, SB 248)ê

 

      Sec. 5.  1.  To engage in the business of property management in this state:

      (a) A partnership shall designate one of its members;

      (b) A corporation shall designate one of its officers or employees;

      (c) A limited-liability company shall designate its manager; and

      (d) A broker who conducts business as a sole proprietor shall designate a person who is licensed under the broker,

to submit an application for a permit to engage in property management. The partnership, corporation, limited-liability company or sole proprietor shall not engage in the business of property management unless the person so designated has been issued a permit to engage in property management by the real estate division.

      2.  If the person designated to apply for a permit pursuant to subsection 1 meets the qualifications for a permit set forth in section 4 of this act, the division shall issue to that person a permit to engage in property management on behalf of the partnership, corporation, limited-liability company or sole proprietor, and thereupon he may perform all the acts of a property manager contemplated by this chapter.

      3.  A person to whom a permit has been issued pursuant to this section may act as a property manager pursuant to the permit only on behalf of the partnership, corporation, limited-liability company or sole proprietor, and not on his own behalf. If that person ceases to be connected or associated with the partnership, corporation, limited-liability company or sole proprietor, the partnership, corporation, limited-liability company or sole proprietor shall designate another person who meets the qualifications for a permit set forth in section 4 of this act to hold the permit on behalf of the partnership, corporation, limited-liability company or sole proprietor.

      4.  Any member, officer or employee of a partnership, corporation or limited-liability company, other than the person designated as the property manager pursuant to subsection 1, who wishes to engage in the business of property management must apply in his own name individually for a separate permit to engage in property management. Pursuant to such a permit, the member, officer or employee of a partnership, corporation or limited-liability company may act as a property manager only as an officer or agent of the partnership, corporation or limited-liability company, and not on his own behalf.

      Sec. 6.  1.  A real estate broker who holds a permit to engage in property management shall not act as a property manager unless the broker has first obtained a written brokerage agreement signed by the broker and the client for whom the broker will manage the property.

      2.  A brokerage agreement for property management must include, without limitation:

      (a) The term of the agreement;

      (b) A provision for the retention and disposition of deposits of the tenants of the property during the term of the agreement;

      (c) The fee or compensation to be paid to the broker; and

      (d) The extent to which the broker may act as the agent of the client.


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ê1997 Statutes of Nevada, Page 956 (Chapter 283, SB 248)ê

 

      Sec. 6.5.  1.  Except as otherwise provided in subsection 3, all fees, penalties and fines received by the division pursuant to the provisions of sections 2 to 6.5, inclusive, of this act must be deposited with the state treasurer for credit to the division. The money must be used by the division for the administration of the provisions of sections 2 to 6.5, inclusive, of this act.

      2.  The division may delegate to a hearing officer or panel its authority to take any disciplinary action against property managers, impose and collect fines pursuant to the disciplinary action and deposit the money with the state treasurer for credit to the division.

      3.  If a hearing officer or panel is not authorized to take disciplinary action pursuant to subsection 2, the division shall deposit the money collected from the imposition of penalties and fines collected from property managers 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 costs of an investigation, or both.

      Sec. 7.  NRS 645.0005 is hereby amended to read as follows:

      645.0005  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 645.001 to 645.040, inclusive, and sections 2 and 3 of this act, have the meanings ascribed to them in those sections.

      Sec. 8.  NRS 645.030 is hereby amended to read as follows:

      645.030  1.  “Real estate broker” means a person who, for another and for compensation or with the intention or expectation of receiving compensation:

      (a) Sells, exchanges, options, purchases, rents, or leases, or negotiates or offers, attempts or agrees to negotiate the sale, exchange, option, purchase, rental, or lease of, or lists or solicits prospective purchasers, lessees or renters of, [or collects or offers, attempts or agrees to collect rental for the use of,] any business or real estate or the improvements thereon or any modular homes or other housing offered or conveyed with any interest in real estate; [or]

      (b) Engages in or offers to engage in the business of claiming, demanding, charging, receiving, collecting or contracting for the collection of an advance fee in connection with any employment undertaken to promote the sale or lease of business opportunities or real estate by advance fee listing advertising or other offerings to sell, lease, exchange or rent property [.] ; or

      (c) Engages in or offers to engage in the business of property management.

      2.  Any person who, for another and for compensation, aids, assists, solicits or negotiates the procurement, sale, purchase, rental or lease of public lands is a real estate broker within the meaning of this chapter.

      3.  The term does not include a person who is employed by a licensed real estate broker to accept reservations on behalf of a person engaged in the business of the rental of lodging for 31 days or less, if the employee does not perform any tasks related to the sale or other transfer of an interest in real estate.


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ê1997 Statutes of Nevada, Page 957 (Chapter 283, SB 248)ê

 

does not perform any tasks related to the sale or other transfer of an interest in real estate.

      Sec. 9.  NRS 645.230 is hereby amended to read as follows:

      645.230  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, a [real] :

      (a) Real estate broker, real estate broker-salesman or real estate salesman within the State of Nevada without first obtaining the appropriate license from the real estate division as provided for in this chapter [.] ; or

      (b) Property manager within the State of Nevada without first obtaining from the real estate division as provided for in this chapter a license as a real estate broker, real estate broker-salesman or real estate salesman and a permit to engage in property management.

      2.  The real estate division may prefer a complaint for a violation of this section before any court of competent jurisdiction [and the real estate division] and may assist in presenting the law or facts upon any trial for a violation of this section.

      3.  The district attorney of each county shall prosecute all violations of this section in their respective counties in which violations occur, unless prosecuted by the attorney general. Upon the request of the administrator, the attorney general shall prosecute any violation of this section in lieu of the district attorney.

      Sec. 10.  NRS 645.240 is hereby amended to read as follows:

      645.240  1.  The provisions of this chapter do not apply to, and the terms “real estate broker” and “real estate salesman” do not include, any [person] :

      (a) Person who, as owner or lessor, performs any of the acts mentioned in NRS 645.030, 645.040, 645.230 and 645.260, with reference to property owned or leased by them, or to the regular employees thereof with respect to the property so owned or leased, where those acts are performed in the regular course of or as an incident to the management of such property and the investment therein. For the purposes of this [subsection,] paragraph, “management” means activities which tend to preserve or increase the income from the property by preserving the physical desirability of the property or maintaining high standards of service to tenants. The term does not include sales activities.

      (b) Employee of a real estate broker while engaged in the collection of rent for or on behalf of the broker.

      (c) Person while performing the duties of a property manager for a property, if the person maintains an office on the property and does not engage in property management with regard to any other property.

      (d) Person while performing the duties of a property manager for a common-interest community governed by the provisions of chapter 116 of NRS, a condominium project governed by the provisions of chapter 117 of NRS, a time share governed by the provisions of chapter 119A of NRS, or a planned unit development governed by the provisions of chapter 278A of NRS, if the person is a member in good standing of, and, if applicable, holds a current certificate, registration or other similar form of recognition from, a nationally recognized organization or association for persons managing such properties that has been approved by the real estate division by regulation.


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ê1997 Statutes of Nevada, Page 958 (Chapter 283, SB 248)ê

 

managing such properties that has been approved by the real estate division by regulation.

      2.  Except as otherwise provided in NRS 645.606 to 645.6085, inclusive, the provisions of this chapter do not apply to:

      (a) Any bank, thrift company, credit union, trust company, savings and loan association or any mortgage or farm loan association licensed under the laws of this state or of the United States, with reference to property it has acquired for development, for the convenient transaction of its business, or as a result of foreclosure of property encumbered in good faith as security for a loan or other obligation it has originated or holds.

      (b) A corporation which, through its regular officers who receive no special compensation for it, performs any of those acts with reference to the property of the corporation.

      (c) The services rendered by an attorney at law in the performance of his duties as an attorney at law.

      (d) A receiver, trustee in bankruptcy, administrator or executor, or any other person doing any of the acts specified in NRS 645.030 under the jurisdiction of any court.

      (e) A trustee acting under a trust agreement, deed of trust or will, or the regular salaried employees thereof.

      (f) The purchase, sale or locating of mining claims or options thereon or interests therein.

      (g) The State of Nevada or a political subdivision thereof.

      Sec. 11.  (Deleted by amendment.)

      Sec. 12.  NRS 645.310 is hereby amended to read as follows:

      645.310  1.  All deposits accepted by every real estate broker or person registered as an owner-developer pursuant to this chapter, which are retained by him pending consummation or termination of the transaction involved, must be accounted for in the full amount at the time of the consummation or termination.

      2.  Every real estate salesman or broker-salesman who receives any money on behalf of a broker or owner-developer shall pay over the money promptly to the real estate broker or owner-developer.

      3.  A real estate broker shall not commingle the money or other property of his client with his own.

      4.  If a real estate broker receives money, as a broker, which belongs to others, he shall promptly deposit the money in a separate checking account located in a bank in this state which must be designated a trust account. All down payments, earnest money deposits, rents, or other money which he receives, on behalf of his client or any other person, must be deposited in the account unless all persons who have any interest in the money have agreed otherwise in writing. A real estate broker may pay to any seller or the seller’s authorized agent the whole or any portion of such special deposit. The real estate broker is personally responsible and liable for such deposit at all times. A real estate broker shall not permit any advance payment of money belonging to others to be deposited in the real estate broker’s business or personal account or to be commingled with any money he may have on deposit.


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ê1997 Statutes of Nevada, Page 959 (Chapter 283, SB 248)ê

 

      5.  Every real estate broker required to maintain a separate trust account shall keep records of all money deposited therein. The records must clearly indicate the date and from whom he received money, the date deposited, the dates of withdrawals, and other pertinent information concerning the transaction, and must show clearly for whose account the money is deposited and to whom the money belongs. The real estate broker shall balance each separate trust account at least monthly. The real estate broker shall provide to the division, on a form provided by the division, an annual accounting which shows an annual reconciliation of each separate trust account. All such records and money are subject to inspection and audit by the division and its authorized representatives. All such separate trust accounts must designate the real estate broker as trustee and provide for withdrawal of money without previous notice.

      6.  Each real estate broker shall notify the division of the names of the banks in which he maintains trust accounts and specify the names of the accounts on forms provided by the division.

      7.  If a real estate broker who has money in a trust account dies or becomes mentally disabled, the division, upon application to the district court, may have a trustee appointed to administer and distribute the money in the account with the approval of the court. The trustee may serve without posting a bond.

      Sec. 13.  NRS 645.324 is hereby amended to read as follows:

      645.324  1.  The commission may require such forms of brokerage agreements which include provisions for the payment of advance fees to be used, and such reports and forms of accounting to be kept, made and submitted, and may adopt such rules and regulations as the commission may determine to be necessary to carry out the purposes and intent of NRS 645.322.

      2.  A licensee shall maintain, for review and audit by the division, each brokerage agreement that is entered into by the licensee.

      3.  Any violation of the rules, regulations, orders or requirements of the commission constitutes grounds for disciplinary action against a licensee.

      Sec. 14.  NRS 645.630 is hereby amended to read as follows:

      645.630  The commission may require a licensee or owner-developer to pay an administrative fine of not more than $5,000 for each violation he commits or suspend, revoke or place conditions upon his license or registration, or do both, at any time if the licensee or owner-developer has, by false or fraudulent representation, obtained a license or registration, or the licensee or owner-developer, whether or not acting as such, is found guilty of:

      1.  Making any material misrepresentation.

      2.  Making any false promises of a character likely to influence, persuade or induce.

      3.  Accepting a commission or valuable consideration as a real estate broker-salesman or salesman for the performance of any of the acts specified in this chapter or chapter 119 or 119A of NRS from any person except the licensed real estate broker with whom he is associated or the owner-developer by whom he is employed.


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ê1997 Statutes of Nevada, Page 960 (Chapter 283, SB 248)ê

 

      4.  Representing or attempting to represent a real estate broker other than the broker with whom he is associated, without the express knowledge and consent of the broker with whom he is associated.

      5.  Failing to maintain, for review and audit by the division, each brokerage agreement governed by the provisions of this chapter and entered into by the licensee.

      6.  Failing, within a reasonable time, to account for or to remit any money which comes into his possession and which belongs to others.

      [6.] 7.  If he is required to maintain a trust account:

      (a) Failing to balance the trust account at least monthly; and

      (b) Failing to submit to the division an annual accounting of the trust account as required in NRS 645.310.

      8.  Commingling the money or other property of his clients with his own or converting the money of others to his own use.

      [7.] 9.  In the case of a broker-salesman or salesman, failing to place in the custody of his licensed broker or owner-developer, as soon as possible, any deposit or other money or consideration entrusted to him by any person dealing with him as the representative of his licensed broker.

      [8.] 10.  Accepting other than cash as earnest money unless that fact is communicated to the owner before his acceptance of the offer to purchase and that fact is shown in the receipt for the earnest money.

      [9.] 11.  Upon acceptance of an agreement, in the case of a broker, failing to deposit any check or cash received as earnest money before the end of the next banking day unless otherwise provided in the purchase agreement.

      [10.] 12.  Inducing any party to a brokerage agreement, sale or lease to break it in order to substitute a new brokerage agreement, agreement of sale or lease with the same or another party if the inducement to make the substitution is offered to secure personal gain to the licensee or owner-developer.

If discipline is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorney’s fees, may be recovered by the board.

      Sec. 15.  NRS 645.633 is hereby amended to read as follows:

      645.633  The commission may take action pursuant to NRS 645.630 against any person subject to that section who is guilty of:

      1.  Willfully using any trade name, service mark or insigne of membership in any real estate organization of which the licensee is not a member, without the legal right to do so.

      2.  Violating any order of the commission, any agreement with the division, any of the provisions of this chapter, chapter 116, 119, 119A, 119B, 645A or 645C of NRS or [of] any regulation adopted thereunder.

      3.  Paying a commission, compensation or a finder’s fee to any person for performing the services of a broker, broker-salesman or salesman who has not first secured his license pursuant to this chapter. This subsection does not apply to payments to a broker who is licensed in his state of residence.


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ê1997 Statutes of Nevada, Page 961 (Chapter 283, SB 248)ê

 

      4.  A felony, or has entered a plea of guilty, guilty but mentally ill or nolo contendere to a charge of felony or any crime involving fraud, deceit, misrepresentation or moral turpitude.

      5.  Guaranteeing, or having authorized or permitted any person to guarantee, future profits which may result from the resale of real property.

      6.  Failure to include a fixed date of expiration in any written brokerage agreement or to leave a copy of the brokerage agreement with the client.

      7.  Accepting, giving or charging any undisclosed commission, rebate or direct profit on expenditures made for a client.

      8.  Gross negligence or incompetence in performing any act for which he is required to hold a license pursuant to this chapter, chapter 119, 119A or 119B of NRS.

      9.  Any other conduct which constitutes deceitful, fraudulent or dishonest dealing.

      10.  Any conduct which took place before his being licensed, which was in fact unknown to the division and which would have been grounds for denial of a license had the division been aware of the conduct.

      11.  Knowingly permitting any person whose license has been revoked or suspended to act as a real estate broker, broker-salesman or salesman, with or on behalf of the licensee.

Action may also be taken pursuant to NRS 645.630 against a person subject to that section for the suspension or revocation of a real estate broker’s, broker-salesman’s or salesman’s license issued to him by any other jurisdiction.

      Sec. 16.  1.  Notwithstanding the provisions of sections 1 to 11, inclusive, of this act to the contrary, a person licensed in this state on July 1, 1998, as a real estate broker, real estate broker-salesman or real estate salesman may engage in property management in this state until July 1, 1999, without a permit issued pursuant to section 4 of this act by the real estate division of the department of business and industry.

      2.  Such a person shall be deemed to have satisfied the educational requirements of section 4 of this act for the initial issuance of a permit to engage in property management if, on or before July 1, 1999, he passes a test on the principles of property management established or adopted by the real estate commission and administered by the real estate division of the department of business and industry.

      3.  For the purposes of subsection 2, the real estate commission shall, not later than July 1, 1998, establish or adopt a test on the principles of property management.

      Sec. 17.  The amendatory provisions of this act do not apply to offenses that are committed before July 1, 1998.

      Sec. 18.  The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

      Sec. 19.  1.  This section and sections 12 to 18, inclusive, of this act become effective on October 1, 1997.


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ê1997 Statutes of Nevada, Page 962 (Chapter 283, SB 248)ê

 

      2.  Sections 4 and 10 of this act become effective on October 1, 1997, for the purpose of adopting regulations and on July 1, 1998, for all other purposes.

      3.  Sections 1, 2, 3 and 5 to 9, inclusive, of this act become effective on July 1, 1998.

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CHAPTER 284, AB 452

Assembly Bill No. 452–Committee on Natural Resources, Agriculture, and Mining

CHAPTER 284

AN ACT relating to state lands; providing a definition of “trust lands” for the purpose of selling certain state lands; authorizing payments from the state permanent school fund for certain unlocated land warrants; repealing certain obsolete provisions; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 321 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.

      Sec. 2.  As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 and 4 of this act have the meanings ascribed to them in those sections.

      Sec. 3.  “Division” means the division of state lands of the state department of conservation and natural resources.

      Sec. 4.  “Trust lands” means those lands that were granted by the Federal Government to the State of Nevada directly or by an exchange for other lands, and are held in trust for the state permanent school fund or another beneficiary.

      Sec. 5.  NRS 321.001 is hereby amended to read as follows:

      321.001  1.  The division [of state lands] shall acquire and hold in the name of the State of Nevada all lands and interests in land owned or required by the state except:

      (a) Lands or interests used or acquired for highway purposes;

      (b) Lands or interests the title to which is vested in the board of regents of the University of Nevada;

      (c) Offices outside state buildings leased by the chief of the buildings and grounds division of the department of administration for the use of state officers and employees; or

      (d) Lands or interests used or acquired for the legislature or its staff,

and shall administer all lands it holds which are not assigned for administration to another state agency.

      2.  If additional land or an interest in land is required for the use of any state agency except the department of transportation or the University and Community College System of Nevada, the agency [shall select a site approved by the state public works board, obtain an appraisal of the land to be acquired and obtain the approval of the legislature if required by law.]


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ê1997 Statutes of Nevada, Page 963 (Chapter 284, AB 452)ê

 

and the division shall select land for use by the agency. The division shall obtain the approval of the state public works board if the land will be used for a building pursuant to NRS 341.141. The division [of state lands shall then] shall determine the value of that land and obtain the land or interest by negotiation or , if necessary , by exercising the state’s power of eminent domain. Title must be taken in the name of the State of Nevada.

      3.  The division [of state lands] may acquire and hold land and interests in land required for any public purpose, including the production of public revenue. Title must be taken in the name of the State of Nevada.

      Sec. 6.  NRS 321.003 is hereby amended to read as follows:

      321.003  1.  The state land registrar shall assign any land or interest in land owned by the [state] State of Nevada which is needed for governmental purposes to the appropriate state agency for use and administration. Before a state agency erects a building or makes any other permanent improvement on land assigned to it, the agency shall notify the state land registrar, in a form prescribed by him, and shall not proceed with the construction or improvement until the state land registrar certifies the nature of and any encumbrances against the state’s title to the land, and certifies that the boundaries of the land assigned include the site of the proposed construction or improvement.

      2.  Except as otherwise provided by specific statute, any lease or sale of land, or of any interest in land, by the division [of state lands] must be made upon the best terms available.

      3.  The state land registrar shall execute on behalf of the state any lease, deed or other document by which any land or interest therein owned by the state is conveyed.

      4.  Notwithstanding any other provision of law, a person shall not use or acquire state land for any purpose unless he first obtains written authorization from the state land registrar.

      5.  As used in this section, “person” includes a government, governmental agency and political subdivision of a government.

      Sec. 7.  NRS 321.010 is hereby amended to read as follows:

      321.010  1.  For the purpose of selecting and disposing of the lands granted by the United States to the State of Nevada, including the 16th and 36th sections, and those selected in lieu thereof, in accordance with the terms and conditions of the several grants of land by the United States to the State of Nevada, a state land office is hereby created.

      2.  The administrator as executive head of the division [of state lands] is the ex officio state land registrar.

      3.  The state land registrar may appoint one deputy state land registrar and such technical, clerical and operational staff as the execution of his duties and the operation of the state land office may require.

      Sec. 8.  NRS 321.040 is hereby amended to read as follows:

      321.040  1.  The state land registrar shall keep a record of all [applications and contracts and of lands which have been or may hereafter be approved to the state,] lands and interests in land held by the division pursuant to NRS 321.001 and of all lands and interests in land which have been sold by the [state.] division. These records, together with all plats, papers and documents relating to the business of the state land office, [shall] must be open to public inspection during office hours [without fee therefor.]


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ê1997 Statutes of Nevada, Page 964 (Chapter 284, AB 452)ê

 

must be open to public inspection during office hours [without fee therefor.] at no charge.

      2.  The state land registrar shall procure from the Bureau of Land Management one copy of each township plat of the public surveys now approved or which may [hereafter] subsequently be approved by the proper United States authorities, unless [the same shall] those copies have been previously obtained. [Copies of such township plats shall be made upon material of such quality as the state land registrar may prescribe, but the cost shall not exceed $6 for each such plat.]

      Sec. 9.  NRS 321.050 is hereby amended to read as follows:

      321.050  [1.]  Annually, on or before August 1, the state land registrar shall furnish each county assessor a statement showing [:

      (a) All] all lands which have been [applied for] acquired, leased or otherwise disposed of in the [respective counties and which have not theretofore been shown by a statement, together with the name and address of the applicant or assignee so far as the same may be known.

      (b) All forfeitures which have occurred since the last annual statement.

      2.  Upon receipt of the information provided for in subsection 1, each county assessor shall immediately mark the same upon the township plats in his office.] county since the last annual statement.

      Sec. 10.  NRS 321.055 is hereby amended to read as follows:

      321.055  [1.  Upon the sale of any land for cash or upon execution of any contract for the purchase of land from the state, the state land registrar shall forthwith transmit to the county assessor of the county in which such land is located a report setting forth a description of the land, the name of purchaser, the amount of the purchase price and a description of any improvements on such land.

      2.] Upon the occurrence of any tax delinquency on state [land sale contract] lands, the county assessor of the county wherein the land is situated shall immediately notify the state land registrar of [such] that delinquency. The notice [shall] must contain a description of the land [, the name of the purchaser] and the date and amount of delinquency.

      Sec. 11.  NRS 321.090 is hereby amended to read as follows:

      321.090  [1.]  The state land registrar [shall select as portions of the several grants of land to this state all lands for which money has been deposited under the provisions of this chapter.

      2.  The state land registrar may also select any lands for the State of Nevada when such lands are requested by the state or any state department, agency or institution, or when it is determined by the state land registrar that the selection of such lands will be beneficial to the state.] may select lands on behalf of the State of Nevada in accordance with the terms of any grant authorized by the Congress of the United States.

      Sec. 12.  NRS 321.110 is hereby amended to read as follows:

      321.110  1.  Subject to the provisions of [subsections 2 and 3,] subsection 2, whenever, pursuant to the laws of the United States, any lands are offered to the State of Nevada by the United States Government or any department thereof, the governor [is authorized, in his discretion, to] or the state land registrar may accept the [same] lands and the possession and title thereof in the name of the State of Nevada and [to] take all necessary steps to comply with any requirement and condition mentioned in the offer.


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ê1997 Statutes of Nevada, Page 965 (Chapter 284, AB 452)ê

 

to comply with any requirement and condition mentioned in the offer. [The governor shall have power, among other things, to execute agreements, to convey and reconvey lands by deeds of relinquishment and other deeds according to and in extension of the provisions of NRS 321.100.

      2.  The authority granted the governor in this section shall not involve the acceptance of title to more than 30,000 acres of lands that may be offered by the United States Government, nor shall it involve or extend to the relinquishment of claims or title to lands of value equal to the value of more than such 30,000 acres owned by the state, including the computed value or exchange value of such claims as the state may have or might advance against the United States Government or in compromise or settlement of any erroneous selections, charges or credits in the land accounts of the state and the United States.

      3.] 2.  It is hereby declared to be the policy of the legislature that the [governor should first] State of Nevada shall negotiate for the acquisition of [such] those lands as an unconditional grant by the United States Government to the State of Nevada without any other [or further] considerations, and that if the [governor shall be] State of Nevada is unable to acquire [such] those lands in the manner indicated, [then he is authorized, in his discretion, to obtain such] the governor or the state land registrar may obtain those lands on the best terms available.

      Sec. 13.  NRS 321.125 is hereby amended to read as follows:

      321.125  1.  The state land registrar may make direct sales of lands owned by the state to [public agencies] a public agency or local government of the state if the land is:

      (a) Not needed for use by the state; and

      (b) Needed for a valid public use.

      2.  Land sold pursuant to this section must be sold at a price equal to at least the current fair market value of the land plus the costs of the sale, including expenses related to the appraisal of the land.

      3.  As used in this section, “local government” has the meaning ascribed to it in NRS 354.474.

      Sec. 14.  NRS 321.140 is hereby amended to read as follows:

      321.140  [1.]  The holder of any unlocated land warrant of this state, issued [prior to] before March 12, 1885, [shall have the right to use the same in payment for lands which he may desire to purchase from the state. Any person holding any of such warrants for 160 acres or less, at the rate of $2.50 per acre, shall be allowed to surrender the same to the state treasurer in full payment for double the number of acres expressed therein of land valued at $1.25 per acre.

      2.  Upon the surrender of such land warrant to the state controller by the state treasurer, properly endorsed, the state controller shall draw his warrant upon the state permanent school fund in favor of the state treasurer for the amount of] may present that land warrant to the state land registrar for reimbursement from the state permanent school fund of the amount paid for the land warrant.


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ê1997 Statutes of Nevada, Page 966 (Chapter 284, AB 452)ê

 

      Sec. 15.  NRS 321.300 is hereby amended to read as follows:

      321.300  1.  Every person [, corporation or association, his or its heirs, assigns or lawful successors, who has a subsisting] who entered into a contract with the State of Nevada for the purchase of any trust lands of the State of Nevada [or who may hereafter contract with the State of Nevada for the purchase of any of its public lands,] before the effective date of this act, or his heirs, assigns or lawful successors, and every patentee of trust lands purchased from the State of Nevada, shall, subject to the royalty [provision hereinafter reserved,] provided for in subsection 3, be deemed and held to have the right to the exclusive possession of the lands described in [such contract,] the contract or patent, including all gas, coal, oil and oil shales that may exist in [such lands; and every person corporation or association, his or its heirs, assigns or lawful successors,] those lands.

      2.  Every person who has [heretofore] received or [shall hereafter receive or be] is entitled to receive [any patent or deed] a patent from this state granting to him [or it any such] any of those lands, or his heirs, assigns or lawful successors shall, subject to the royalty [provision hereinafter reserved,] provided for in subsection 3, be deemed to have the fee simple title to the lands described in [such patent or deed,] the patent, including all gas, coal, oil and oil shales which may exist therein . [; but any such contract holder or patentee]

      3.  Any person described in subsection 1 or 2 shall pay to the State of Nevada for the fund which was the original beneficiary of [such] those lands a royalty of 5 percent of the net proceeds of all gas, coal or oil mined or extracted therefrom.

      [2.  Nothing contained in]

      4.  The provisions of this section [shall be construed as impairing] do not impair any rights acquired [prior to] before July 1, 1921, [under] pursuant to existing laws to any [such] of those lands or rights therein.

      Sec. 16.  NRS 321.310 is hereby amended to read as follows:

      321.310  [1.]  Except as otherwise ordered by a [competent court having jurisdiction or as otherwise provided in this section,] court of competent jurisdiction, the title of the state to any lands acquired by patent from the Federal Government must be conveyed by patent.

      [2.  A patent may be issued to an assignee or successor in interest of the original applicant upon the assignee or successor in interest furnishing to the state land registrar an executed and verified assignment in writing of the original contract of purchase of the land signed by the original applicant or his heirs, administrator or executor thereunto lawfully authorized, or upon the furnishing to the state land registrar by the successor in interest of a good and sufficient deed of conveyance of the original applicant’s right, title and interest to him in and to the contract and the land mentioned therein, which deed has theretofore been recorded in the county wherein the land is situated.

      3.  In case of the death of the applicant for any state lands, upon payment and compliance with the law by his heirs, devisees or assignees, patents for the lands must issue in pursuance of any statute of this state in his name the same as if he were living, without requiring any order of court. When so issued the title to the lands designated in these patents, and the title to lands embraced in any patent heretofore issued after the death of the applicant, inure to and become vested in the heirs, devisees or assignees of the deceased patentee as if the patent had issued to the deceased person during life.]

 


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ê1997 Statutes of Nevada, Page 967 (Chapter 284, AB 452)ê

 

the title to lands embraced in any patent heretofore issued after the death of the applicant, inure to and become vested in the heirs, devisees or assignees of the deceased patentee as if the patent had issued to the deceased person during life.]

      Sec. 17.  NRS 321.331 is hereby amended to read as follows:

      321.331  Every person [, corporation or association, his, her or its] or his heirs, assigns or lawful successors, who has [heretofore received since March 3, 1887, or shall hereafter receive or be entitled to receive any] received a patent or deed between March 3, 1887, and the effective date of this act, from the State of Nevada granting to him [, her or it] any trust lands of the State of Nevada [shall,] must, subject to the royalty [provision] contained in NRS 321.300, be confirmed in the fee simple title to the lands described in [such] that patent or deed, and all of the minerals therein, including all gas, coal, oil and oil shales which may exist therein, but any such patentee [, or his, her or its] or his successors in interest, holding such a fee simple title shall pay to the State of Nevada for the fund which was the original beneficiary of [such] those lands the royalty provided by NRS 321.300.

      Sec. 18.  NRS 321.332 is hereby amended to read as follows:

      321.332  1.  Every person [, corporation or association, his, her or its] or his heirs, assigns or lawful successors referred to in NRS 321.331, who is entitled to any trust lands that may have been purchased by him [, her or it, or his, her or its] or his predecessors in interest, from the State of Nevada [subsequent to] between March 3, 1887, and the effective date of this act, or who has a separate estate in the minerals, including any gas, coal, oil and oil shales existing in [such] that land, arising from a conveyance or reservation of mineral rights by such an immediate or remote grantee of the state, may bring an action in the district court of this state in and for any county where [such] those lands or any part thereof are [situate] located to determine by declaratory judgment of [such] that court whether [or not] the State of Nevada has any rights to any minerals therein, including any oil, gas, coal and oil shales and, if possible, the extent thereof, and the State of Nevada hereby consents to the bringing of any such action . [or actions.]

      2.  Service of process on the State of Nevada in any such action may be secured by serving a copy of the complaint, together with a copy of the summons, on the attorney general of the State of Nevada.

      3.  If an action is brought pursuant to this section by the holder of a separate mineral estate, he shall give notice of the bringing of the action, by registered or certified mail , to every record owner of the fee in any lands which are the subject of the action, but is not required to join any such owner as a party to the action. The notice [shall be given on or] must:

      (a) Be given within 5 days after the date of the filing of the complaint [, shall identify] ;

      (b) Identify the land of the owner which is affected [, and shall state] ; and

      (c) State the case number and court in which the action is brought.


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ê1997 Statutes of Nevada, Page 968 (Chapter 284, AB 452)ê

 

      Sec. 19.  NRS 321.333 is hereby amended to read as follows:

      321.333  1.  If in any such action authorized by NRS 321.332 , it is determined that the State of Nevada has any interest in any minerals in any such lands, [save and] except the royalty [interest] provided for in NRS 321.300, [then] any such person [, corporation or association, his, her or its] or his heirs, assigns or lawful successors, bringing any such action as plaintiff [in such action, shall have] has the option for 1 year [from] after the entry of final judgment in [such] that action to purchase from the State of Nevada all of the interest of the State of Nevada in the minerals in [such lands, save and] those lands, except the royalty [interest] authorized by NRS 321.300, at [a price of 15 cents for each acre of land involved in such action.] the fair market value of the royalty as determined by the division.

      2.  If [such] the option is exercised, payment for [such] that mineral interest [shall] must be made to the state land registrar in cash within the period of [such option,] the option and deposited in the fund which was the original beneficiary of those lands, and the state land registrar [is authorized and directed] shall, upon the payment of [any such] the option price , [to] deliver to the purchaser a deed from the State of Nevada [to such purchaser,] conveying all of the state’s interest in the minerals in the lands involved in [such action, save and] that action, except the royalty [interest of the state] provided for in NRS 321.300.

      Sec. 20.  NRS 321.335 is hereby amended to read as follows:

      321.335  1.  Except as provided in NRS 321.125, 321.450 and 321.510, after April 1, 1957, all sales of any lands [to which the State of Nevada or any department, agency or institution thereof has title, except the department of transportation and agricultural associations organized pursuant to chapter 547 of NRS,] that the division is required to hold pursuant to NRS 321.001, including lands subject to contracts of sale that have been forfeited, are governed by the provisions of this section.

      2.  Whenever the state land registrar deems it to be in the best interests of the State of Nevada that any lands owned by the state and not used or set apart for public purposes be sold, he may, with the approval of the state board of examiners and the interim finance committee, cause those lands to be sold at public auction or upon sealed bids, for cash or pursuant to contract of sale, at a price not less than their appraised value plus the costs of appraisal and publication of notice of sale.

      3.  Before offering any land for sale, the state land registrar shall cause it to be appraised by a competent appraiser.

      4.  After receipt of the report of the appraiser, the state land registrar shall cause a notice of sale to be published once a week for 4 consecutive weeks in a newspaper of general circulation published in the county where the land to be sold is situated, and in such other newspapers as he deems appropriate. If there is no newspaper published in the county where the land to be sold is situated , the notice must be so published in [some] a newspaper published in this state having a general circulation in the county where the land is situated.

      5.  The notice must contain:

      (a) A description of the land to be sold;

      (b) A statement of the terms of sale;


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ê1997 Statutes of Nevada, Page 969 (Chapter 284, AB 452)ê

 

      (c) A statement of whether the land will be sold at public auction or upon sealed bids to the highest bidder; [and]

      (d) If the sale is to be at public auction, the time and place of sale; [or] and

      (e) If the sale is to be upon sealed bids, the place where the bids will be accepted, the first and last days on which the bids will be accepted, and the time when and place where the bids will be opened.

      6.  The state land registrar may reject any bid or offer to purchase if he deems the bid or offer to be:

      (a) Contrary to the public interest.

      (b) For a lesser amount than is reasonable for the land involved.

      (c) On lands which it may be more beneficial for the state to reserve.

      (d) On lands which are requested by the State of Nevada or any department, agency or institution thereof.

      7.  Upon acceptance of any bid or offer and payment to the state land registrar in accordance with the terms of sale specified in the notice of sale, the state land registrar shall convey title by quitclaim [,] or cause a patent to be issued as provided in NRS [321.310,] 321.320 and 321.330 . [or enter into a contract of sale as provided in NRS 321.240 to 321.300, inclusive, as appropriate. Any such contract must require that the remainder of the purchase price be paid within 25 years from the date of the contract and that the contract will immediately be declared forfeited if any installment of principal or interest remains unpaid for a period of 6 months after the installment becomes due and payable pursuant to the contract.

      8.  Nothing in this section applies to or affects any pending contract or application for the purchase of land from the State of Nevada, whether title to it is in the state or the state is in the process of acquiring title to it under any method of exchange or selection between the state and the United States or any department or agency thereof.

      9.] 8.  The state land registrar may require any person requesting that state land be sold [under] pursuant to the provisions of this section to deposit a sufficient amount of money to pay the costs to be incurred by the state land registrar in acting upon the application, including the costs of publication and the expenses of appraisal. This deposit must be refunded whenever the person making the deposit is not the successful bidder. The costs of acting upon the application, including the costs of publication and the expenses of appraisal, must be borne by the successful bidder.

      Sec. 21.  NRS 321.339 is hereby amended to read as follows:

      321.339  Notwithstanding any other provision of law, the state land registrar may withhold from sale any land to which the state has acquired title by any means [whatsoever or decline to select any lands upon application therefor when such] if those lands are required for the use of any state department, agency or institution or are specifically reserved by the state for future use or sale or whenever he deems that the public interest so requires.

      Sec. 22.  NRS 321.355 is hereby amended to read as follows:

      321.355  1.  Before any state land may be leased, exchanged, sold or contracted for sale, the state land registrar, in consultation with the department of transportation, the advisory board on natural resources and with counties and local governments, shall designate any existing routes over the land which he determines to be necessary for public access to any other land that is open to public use.


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ê1997 Statutes of Nevada, Page 970 (Chapter 284, AB 452)ê

 

with counties and local governments, shall designate any existing routes over the land which he determines to be necessary for public access to any other land that is open to public use. If such a route is designated, the land must be conveyed with a right of way and all rights of access and abutter’s rights for the route reserved in the name of the State of Nevada. Any right of way reserved pursuant to this subsection may, when necessary as determined by the state land registrar and otherwise approved as required by law, be used by a public utility [.] pursuant to the requirements set forth in NRS 322.050 and 322.060.

      2.  After the land or interest in the land is conveyed, if the route is determined by the state land registrar, in consultation with the department of transportation and the advisory board on natural resources and with counties and local governments, to be no longer necessary for public access to other land which is open to public use, the state land registrar shall, subject to the provisions of subsections 3 and 4, release the right, title and interest of the state in and to the right of way to the purchaser or lessee of the land, his assigns or successors in interest.

      3.  Before releasing the state’s interest in the right of way, the state land registrar shall cause to be published in [some] a newspaper of general circulation in the county where the right of way is located a notice of intent to release that interest. The notice must be published at least 30 days before the proposed date for the release and must contain:

      (a) A description of the location of the right of way;

      (b) The date upon which the release is to be effective; and

      (c) The mailing address of the state land registrar to which persons may send protests against the proposed release.

      4.  The state land registrar may, or upon the receipt of a written protest against the proposed release shall, hold a public hearing. The hearing must be:

      (a) Held in the county in which the right of way is located; and

      (b) Advertised at least 30 days before the date of the hearing in a newspaper of general circulation in the county where the right of way is located.

      Sec. 23.  NRS 321.605 is hereby amended to read as follows:

      321.605  The intent of the legislature in the enactment of NRS 321.605 [to 321.630, inclusive,] and 321.610 is to provide an orderly procedure for the processing of applications by the state, its agencies and political subdivisions for lease or purchase of public lands pursuant to the provisions of the [Public and Recreational] Recreation and Public Purposes Act of 1926, 44 Stat. 741, as amended, and to aid [both] the applicant and the Bureau of Land Management by requiring the state land registrar to examine [into] the propriety and correctness of [such applications prior to their being] the applications submitted to the state land registrar pursuant to subsections 1 and 5 of NRS 321.610 before the applications are filed with the Bureau of Land Management.

      Sec. 24.  NRS 321.610 is hereby amended to read as follows:

      321.610  1.  All applications to the Bureau of Land Management by the state [, its agencies and political subdivisions] filed on behalf of a state agency except:


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ê1997 Statutes of Nevada, Page 971 (Chapter 284, AB 452)ê

 

      (a) The department of transportation;

      (b) The University and Community College System of Nevada; or

      (c) The legislature,

to lease or purchase lands pursuant to the provisions of the [Public and Recreational] Recreation and Public Purposes Act of 1926, 44 Stat. 741, as amended, [shall be filed with] must be submitted to the state land registrar [, who shall:

      1.  Examine such] for approval.

      2.  The state land registrar shall:

      (a) Examine those applications and determine whether they are in proper form, contain the required information and are accompanied by the required fees; [and

      2.] (b) Determine from the records of the Bureau of Land Management whether the lands to be leased or purchased are subject to disposition [under such act.] pursuant to the act; and

      (c) File each application he approves with the Bureau of Land Management.

      3.  If the state land registrar denies an application submitted pursuant to subsection 1, he shall mail a written notice of the denial to the state agency within 7 days after the application is denied. The notice must include a statement that sets forth:

      (a) The reason the application was denied; and

      (b) Any conditions that the state agency must satisfy before the state land registrar will approve the application.

      4.  If the state agency satisfies the conditions set forth in the notice, the state land registrar shall approve the application and file it with the Bureau of Land Management.

      5.  The department of transportation, the University and Community College System of Nevada, the legislature or a political subdivision of the state may request the assistance of the state land registrar in filing an application with the Bureau of Land Management to lease or purchase lands pursuant to the provisions of the Recreation and Public Purposes Act of 1926, 44 Stat. 741, as amended. The state land registrar shall provide the assistance requested, including, but not limited to, an examination of any application submitted to him for his review. The state land registrar shall, upon the completion of his examination, return the application to the department of transportation, the University and Community College System of Nevada, the legislature or the political subdivision for filing with the Bureau of Land Management.

      Sec. 25.  NRS 321.655 is hereby amended to read as follows:

      321.655  As used in NRS 321.640 to 321.770, inclusive:

      1.  “Administrator” means the executive head of the division . [of state lands of the state department of conservation and natural resources.]

      2.  “Area of critical environmental concern” means any area in this state where there is or could develop irreversible degradation of more than local significance but does not include an area of depleting water supply which is caused by the beneficial use or storage of water in other areas pursuant to legally owned and fully appropriated water rights.

      3.  “Planning agency” means:


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ê1997 Statutes of Nevada, Page 972 (Chapter 284, AB 452)ê

 

      (a) The planning commission for the city in which the land is entirely located; or

      (b) A county or regional planning commission, if there is one, or the board of county commissioners or Nevada Tahoe regional planning agency, within whose jurisdiction the land is located.

      4.  “Public lands” means all lands within the exterior boundaries of the State of Nevada except lands:

      (a) To which title is held by any private person or entity;

      (b) To which title is held by the State of Nevada, any of its local governments or the University and Community College System of Nevada;

      (c) Which are located within congressionally authorized national parks, monuments, national forests or wildlife refuges, or which are lands acquired by purchase consented to by the legislature;

      (d) Which are controlled by the United States Department of Defense, Department of Energy or Bureau of Reclamation; or

      (e) Which are held in trust for Indian purposes or are Indian reservations.

      Sec. 26.  NRS 321.700 is hereby amended to read as follows:

      321.700  In addition to any other functions assigned to it by law, the division [of state lands of the state department of conservation and natural resources] is hereby designated as the state land use planning agency for the purpose of carrying out the provisions of NRS 321.640 to 321.770, inclusive, and fulfilling any land use planning requirements arising under federal law.

      Sec. 27.  NRS 322.0042 is hereby amended to read as follows:

      322.0042  “Commercial use” means any use conducted primarily for profit, except a use conducted by [a public utility or] a governmental or quasi-governmental entity.

      Sec. 28.  NRS 323.100 is hereby amended to read as follows:

      323.100  1.  The state land registrar may, with the approval of the state board of examiners and the interim finance committee, exchange state lands or interests in land for any other lands [of equal value.] or interests of land. The division of state lands of the state department of conservation and natural resources shall determine the values of the lands or interests in land which are to be exchanged . The values must be [established by an appraisal conducted by a competent appraiser.] equal or, if the values are not equal, the values may be equalized by the payment of money, if the payment is not more than 25 percent of the total value of the lands or interests in land.

      2.  Upon effecting an exchange, the state land registrar shall deliver to the transferee proper conveyances of title to the state lands exchanged and shall require [similar] proper conveyances of title to the state of the lands received pursuant to the exchange.

      Sec. 29.  NRS 321.045, 321.080, 321.100, 321.120, 321.130, 321.150, 321.160, 321.170, 321.180, 321.190, 321.200, 321.210, 321.220, 321.230, 321.240, 321.250, 321.260, 321.270, 321.280, 321.290, 321.340, 321.350, 321.360, 321.370, 321.380, 321.620 and 321.630 are hereby repealed.

      Sec. 30.  The amendatory provisions of this act do not affect any rights acquired before the effective date of this act.

      Sec. 31.  This act becomes effective upon passage and approval.

________

 


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ê1997 Statutes of Nevada, Page 973ê

 

CHAPTER 285, AB 548

Assembly Bill No. 548–Committee on Labor and Management

CHAPTER 285

AN ACT relating to industrial insurance; requiring the rates for the plan for equitable apportionment among insurers of persons who are entitled to insurance but who have not been accepted by an insurer to be actuarially determined to ensure that the plan is self-sustaining; eliminating the requirement that a private carrier provide industrial insurance for the same classes of risk for which he provides industrial insurance outside this state; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 686B.1771 is hereby amended to read as follows:

      686B.1771  1.  No insurer is required to issue to any particular employer a policy for industrial insurance.

      2.  The commissioner shall approve a plan submitted by the advisory organization for equitable apportionment among insurers of those persons who in good faith are entitled to insurance but who have not been accepted by an insurer. Every insurer shall participate in the plan. The commissioner shall adopt regulations to carry out the plan.

      3.  The advisory organization shall submit to [him] the commissioner the rates, supplementary rate information and forms for policies for the plan at least 60 days before they become effective. The rates submitted to the commissioner must [reflect] :

      (a) Reflect the experience of the persons insured pursuant to the plan to the extent that those rates are actuarially appropriate.

      (b) Be actuarially determined to ensure that the plan is self-sustaining.

      4.  The commissioner shall disapprove any rates for the plan which do not meet the standards of NRS 686B.050. The rates shall be deemed to be approved unless they are disapproved by the commissioner within 60 days after they are filed pursuant to the procedures in NRS 686B.1775.

      Sec. 2.  Section 20 of chapter 580, Statutes of Nevada 1995, at page 2002, is hereby repealed.

      Sec. 3.  1.  This section and section 2 of this act become effective upon passage and approval.

      2.  Section 1 of this act becomes effective at 12:01 a.m. on July 1, 1999.

________

 


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ê1997 Statutes of Nevada, Page 974ê

 

CHAPTER 286, AB 360

Assembly Bill No. 360–Assemblyman Sandoval

CHAPTER 286

AN ACT relating to financial institutions; revising certain provisions relating to the organization of banking corporations and companies and thrift companies; authorizing an existing corporation or company to organize as a banking corporation or company by amending its articles of incorporation or organization; authorizing a banking corporation to increase or reduce its authorized stock without the approval of its stockholders under certain circumstances; authorizing banks to liquidate their affairs voluntarily without the approval of the commissioner of financial institutions under certain circumstances; providing for the appointment of a successor trustee for a liquidated bank without the entry of an order by the district court under certain circumstances; prohibiting certain thrift companies from becoming authorized to engage in business in this state by obtaining a contract for the issuance of deposits issued by a private insurer; and providing other matters properly relating thereto.

 

[Approved July 3, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 657 of NRS is hereby amended by adding thereto a new section to read as follows:

      “Stockholders’ equity” or “members’ equity” means the capital, surplus and retained earnings of a bank.

      Sec. 2.  NRS 657.005 is hereby amended to read as follows:

      657.005  As used in this Title, [except as otherwise specifically provided or] unless the context otherwise requires, the words and terms defined in NRS 657.016 to 657.085, inclusive, and section 1 of this act have the meanings ascribed to them in those sections.

      Sec. 3.  NRS 657.016 is hereby amended to read as follows:

      657.016  “Bank,” “commercial bank,” “banking company” or “banking corporation” [refers to corporations] means a corporation or limited-liability [companies, whether] company that is chartered by this state, another state or the United States [, conducting] and conducts the business of receiving money as demand deposits or otherwise [carrying] carries on a banking or banking and trust business. The terms do not include a thrift company engaged in business pursuant to chapter 677 of NRS.

      Sec. 4.  NRS 657.045 is hereby amended to read as follows:

      657.045  “Insolvency” means [any] one or more of the following:

      1.  When a bank cannot meet its deposit liabilities as they become due in the regular course of business.

      2.  When the actual cash market value of a bank’s assets is insufficient to pay its liabilities to depositors and other creditors.

      3.  When a bank’s reserve falls under the amount required by this Title, and it fails to make good such reserve within 30 days after being required to do so by the commissioner.

      4.  [Whenever] When the undivided profits and surplus are inadequate to cover losses of the bank and [an impairment of the capital stock is created.] the stockholders’ or members’ equity of the bank has been reduced below the requirements of law.


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ê1997 Statutes of Nevada, Page 975 (Chapter 286, AB 360)ê

 

      Sec. 5.  NRS 657.095 is hereby amended to read as follows:

      657.095  [All] The provisions of chapters 78 , [and] 86 and 92A of NRS that are not in conflict with this Title are hereby adopted as a part of this Title.

      Sec. 6.  NRS 658.115 is hereby amended to read as follows:

      658.115  1.  The commissioner shall make summary orders in writing as provided in subsections 2 to 5, inclusive.

      2.  If a bank, a member of its board of directors or any manager, officer, employee, member or stockholder violates the [bank’s] articles of incorporation or organization of the bank or any law related to banking, or, in the opinion of the commissioner, is conducting its business in an unauthorized or unsafe manner, the commissioner shall forthwith issue an order, in writing, directing the discontinuance of the unauthorized or unsafe practices.

      3.  If it appears to the commissioner that the [capital stock or total contributions] stockholders’ or members’ equity of any bank [have] has been reduced [in value] below the requirements of law, or [of its] that the articles of incorporation [or organization,] of the bank have been unlawfully amended to reduce the authorized stock of the bank in violation of NRS 661.035, he shall forthwith issue an order directing [that] the bank to make good the deficiency forthwith or within a time specified in the order.

      4.  If it appears to the commissioner that [either] the total reserves or reserves on hand of any bank are below the amount required by law to be maintained, or that a bank is not keeping its reserves on hand as required by this Title, he shall forthwith issue an order directing [that] the bank to make good its reserves forthwith, or within the time specified within the order, or that it keep its reserves on hand as required by this Title.

      5.  If it appears to the commissioner that any bank to which this Title is applicable does not keep its books or accounts in such a manner as to enable the commissioner readily to ascertain its true condition, he shall issue an order requiring the bank, or the officers or managers thereof, or any of them, to open and keep its books or accounts as he may, in his discretion, determine and prescribe for the purpose of keeping accurate and convenient records of the transactions and accounts of the bank.

      Sec. 7.  NRS 658.151 is hereby amended to read as follows:

      658.151  1.  The commissioner may forthwith take possession of the business and property of any depository institution to which this Title or Title 56 of NRS applies when it appears that the depository institution:

      (a) Has violated its charter or any laws applicable thereto.

      (b) Is conducting its business in an unauthorized or unsafe manner.

      (c) Is in an unsafe or unsound condition to transact its business.

      (d) Has an impairment of its [capital stock.] stockholders’ or members’ equity.

      (e) Has refused to pay its depositors in accordance with the terms on which such deposits were received, or has refused to pay its holders of certificates of indebtedness or investment in accordance with the terms upon which [such] those certificates of indebtedness or investment were sold.

      (f) Has become otherwise insolvent.


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ê1997 Statutes of Nevada, Page 976 (Chapter 286, AB 360)ê

 

      (g) Has neglected or refused to comply with the terms of a [duly issued] lawful order of the commissioner.

      (h) Has refused, upon proper demand, to submit its records, affairs and concerns for inspection and examination of [a duly] an appointed or authorized examiner of the commissioner.

      (i) Has made a voluntary assignment of its assets to trustees.

      2.  The commissioner also may forthwith take possession of the business and property of any depository institution to which this Title or Title 56 of NRS applies when it appears that the officers of the depository institution have refused to be examined upon oath regarding its affairs.

      Sec. 8.  NRS 659.015 is hereby amended to read as follows:

      659.015  [Any number of persons, not fewer than three,]

      1.  One or more persons who desire to form a bank and engage in the business of establishing, maintaining and operating banks of discount and deposit, savings, time and demand deposits, or in the business of establishing, maintaining and operating offices of loan and deposits, or to operate a bank doing a trust and fiduciary business, [shall] must organize as a banking corporation or company in the manner provided in this Title.

      2.  An existing corporation, including, but not limited to, a corporation licensed to engage in business pursuant to chapter 677 of NRS, or a limited-liability company that desires to form a bank and engage in the activities described in subsection 1 must:

      (a) Dissolve and reorganize as a banking corporation or company in the manner provided in this Title; or

      (b) Amend its articles of incorporation or organization in such a manner that it is organized as a banking corporation or company in the manner provided in this Title.

      Sec. 9.  NRS 659.025 is hereby amended to read as follows:

      659.025  The articles of incorporation or organization must , in addition to the requirements prescribed in chapters 78 and 86 of NRS, set forth [:

      1.  The name of the corporation or limited-liability company. No name may be used which is already in use by another corporation or company organized under the laws of this state or of the United States, or so nearly similar thereto as to lead to uncertainty or confusion.

      2.  The location of its principal office in this state.

      3.  The nature of its business.

      4.  The names and post office addresses of subscribers for stock or initial members of the company, and the number of shares subscribed or the amount contributed by each. The aggregate of the subscriptions or contributions is the amount of the capital with which the bank will commence business.

      5.  The period, if any, limited for the duration of the banking corporation or company.] the nature of the business of the corporation or limited-liability company.

      Sec. 10.  NRS 659.035 is hereby amended to read as follows:

      659.035  1.  [The] If the proposed bank is not an existing corporation or limited-liability company, the articles of incorporation or organization [must be signed by a majority of the persons originally organizing the bank, must be proved or acknowledged before a person authorized under the laws of this state to take proof or acknowledgment of deeds, and] for the proposed bank must be delivered to the secretary of state for filing.


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ê1997 Statutes of Nevada, Page 977 (Chapter 286, AB 360)ê

 

of this state to take proof or acknowledgment of deeds, and] for the proposed bank must be delivered to the secretary of state for filing.

      2.  If the proposed bank is an existing corporation or limited-liability company, a certificate of amendment of the articles of incorporation or organization must be delivered to the secretary of state for filing.

      3.  The secretary of state shall forthwith transmit to the commissioner a copy of the articles or certificate of amendment and shall not file the articles or certificate of amendment until authorized to do so by the commissioner.

      Sec. 11.  NRS 659.045 is hereby amended to read as follows:

      659.045  1.  Upon receipt of a copy of the articles of incorporation or organization or the certificate of amendment of the articles of incorporation or organization of the proposed bank, the commissioner shall at once examine [into] all of the facts connected with the formation of the proposed banking corporation or company, including its location and proposed stockholders or members. If it appears that the bank, if formed, will be lawfully entitled to commence the business of banking, the commissioner shall so certify to the secretary of state, unless upon examination and investigation he finds that:

      (a) The proposed bank is formed for any other than legitimate banking business;

      (b) The character, general fitness and responsibility of the persons proposed as stockholders, directors, officers, members or managers of the bank are not such as to command the confidence of the community in which the bank is proposed to be located;

      (c) The probable volume of business and reasonable public demand in such community is not sufficient to assure and maintain the solvency of the new bank and of the [then existing] bank or banks existing in the community [;] at that time;

      (d) The name of the proposed banking corporation or company is likely to mislead the public as to its character or purpose; or

      (e) The proposed name is the same as the one already adopted or appropriated by an existing bank in this state, or so similar thereto as to be likely to mislead the public.

      2.  The commissioner shall not make the certification to the secretary of state until he has ascertained that the establishment of the bank will meet the needs and promote the convenience of the community to be served by the bank.

      3.  A nonrefundable fee of $3,000 for the application and survey must be submitted to the commissioner [at the time] upon filing the articles [are filed] or certificate of amendment with the secretary of state. The proposed banking corporation or company shall also pay such additional expenses incurred in the process of investigation as the commissioner deems necessary. All money received by the commissioner pursuant to this section must be placed in the investigative account created by NRS 232.545.

      Sec. 12.  NRS 659.065 is hereby amended to read as follows:

      659.065  1.  Upon receipt of the certification from the commissioner, the secretary of state shall, if the articles of incorporation or organization are , or the certificate of amendment of the articles of incorporation or organization is, in accordance with law, file the articles or the certificate of amendment and cause [them] the articles or certificate of amendment to be recorded in his office.


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ê1997 Statutes of Nevada, Page 978 (Chapter 286, AB 360)ê

 

amendment and cause [them] the articles or certificate of amendment to be recorded in his office. The secretary of state shall, upon the payment of the organization fees, certify under his official seal [two copies of the articles. One copy must forthwith be filed in the office of the county clerk of the county where the principal office of the bank in this state is to be located. The other] a copy of the original or amended articles. The certified copy of the original or amended articles must be filed in the office of the commissioner.

      2.  Upon completion of the requirements of subsection 1, the banking corporation or company is legally constituted under the name stated in the articles.

      3.  The articles, or a copy thereof, certified by the secretary of state or the [county clerk of the county in which the articles are recorded, or by the] commissioner, under their respective seals, are admissible as evidence in all courts and places, and are, in all judicial proceedings, prima facie evidence of the complete organization and incorporation of the banking corporation purporting [thereby] to have been established [.] by the articles.

      4.  The articles of a bank become void if the bank fails to complete its organization and open for business to the public within 6 months after the date of the filing of its articles or a certificate of amendment of its articles by the secretary of state. The commissioner may extend this limitation for good cause.

      Sec. 13.  NRS 659.075 is hereby amended to read as follows:

      659.075  1.  Subject to subsection 2, the [capital stock, or contributions, of every] initial stockholders’ or members’ equity of a bank must be fully paid in, in cash, before it is authorized by the commissioner to commence business. The full payment in cash must be certified to the commissioner under oath by the president or manager [and the cashier] of the bank.

      2.  Except for any commission or fee not otherwise prohibited by this subsection, the stock sold by or contributions to any bank in the process of organization [, or for an increase of capital,] must be accounted for to the bank in the full amount paid. No commission or fee may be paid to any person, association or corporation for selling the stock of or soliciting contributions to any bank in the process of organization. The commissioner shall refuse such a bank the authority to commence business if commissions or fees have been paid, or have been contracted to be paid by the bank, or by anyone in its behalf, to any person, association or corporation for securing subscriptions for , or selling stock in, or procuring contributions to, the bank.

      Sec. 14.  NRS 659.085 is hereby amended to read as follows:

      659.085  Before the banking corporation or company begins business, it shall file with the commissioner:

      1.  A statement , under oath by the president [,] or a manager , [or the cashier,] containing the names of all the directors, managers and officers, with the date of their election or appointment, terms of office, residences and post office address of each, the amount of [capital] stock of which each is the owner in good faith and the amount of money paid in on account of the [capital] stock, or the contribution made.


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ê1997 Statutes of Nevada, Page 979 (Chapter 286, AB 360)ê

 

the [capital] stock, or the contribution made. Nothing may be received in payment of [capital] stock or contribution [but] except money.

      2.  Proof that the bank is a member of the Federal Deposit Insurance Corporation.

      Sec. 15.  NRS 659.095 is hereby amended to read as follows:

      659.095  1.  Upon filing of the statement and proof by the banking corporation or company as required by NRS 659.085, the commissioner shall examine [into] its affairs, ascertain especially the amount of [money paid in on account of its capital,] the initial stockholders’ or members’ equity, the name and place of residence of each director, the amount of [capital] stock of which each is the owner in good faith or the amount of his contribution, and whether the banking corporation or company has complied with all the provisions of law required to entitle it to engage in business.

      2.  If upon the examination the commissioner finds that the banking corporation or company is lawfully entitled to commence business, he shall give to it a certificate signed by the commissioner that it has complied with all the provisions of law required before commencing business [,] and that it is authorized to commence business.

      Sec. 16.  NRS 660.025 is hereby amended to read as follows:

      660.025  1.  As used in this section , “service center” is a place where functions of a bank are performed that do not involve the receiving of deposits, making of loans or withdrawals or [the] handling of cash.

      2.  Banks organized under this Title may establish and maintain one or more service centers within or outside this state according to their needs.

      3.  A service center may be established by a bank by the vote of its board of directors. The bank shall inform the commissioner in writing of its intention to establish a service center and the location thereof.

      4.  A service center does not constitute branch banking. No license, certificate or prior approval of the commissioner, of the division of financial institutions or of the department of business and industry is necessary before a service center may be established.

      Sec. 17.  NRS 660.035 is hereby amended to read as follows:

      660.035  1.  Any bank organized under the laws of this state [possessing a capital and surplus] that has a stockholders’ or members’ equity of $1,000,000 or more may file an application with the commissioner for permission to establish, upon conditions and under such regulations as may be prescribed by the commissioner, branches in foreign countries or dependencies or singular possessions of the United States for the furtherance of the foreign commerce of the United States [,] and to act, if required to do so, as fiscal agents of the United States.

      2.  The application must specify:

      (a) The name [, capital and surplus] and stockholders’ or members’ equity of the bank filing it.

      (b) The powers applied for.

      (c) The place or places where the banking operations are to be carried on.

      3.  The commissioner may:

      (a) Approve or reject [such] the application in whole or in part if for any reason the granting of [such] the application is deemed inexpedient.


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ê1997 Statutes of Nevada, Page 980 (Chapter 286, AB 360)ê

 

      (b) From time to time [to] increase or decrease the number of places where [such] the banking operations may be carried on.

      4.  Every bank operating foreign branches must be required to furnish information concerning the condition of [such] those branches to the commissioner upon demand, and the commissioner may order special examinations of such branches at such time or times as he may deem best.

      5.  Each bank shall conduct the accounts of each foreign branch independently of the accounts of other foreign branches established by it and of its home office [,] and shall , at the end of each year , transfer to its general ledger the profit or loss accrued at each branch as a separate item.

      Sec. 18.  Chapter 661 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  No distribution may be made by a bank if the distribution would reduce its stockholders’ or members’ equity below its initial stockholders’ or members’ equity.

      2.  As used in this section, “distribution” means a direct or indirect transfer of money or property other than its own shares or interests or the incurrence of indebtedness by a corporation or limited-liability company to or for the benefit of its stockholders or members with respect to any of its shares or interests. A distribution may be in the form of a declaration or payment of a dividend, a purchase, redemption or other acquisition of shares or interests or a distribution of indebtedness, or in any other form.

      Sec. 19.  NRS 661.015 is hereby amended to read as follows:

      661.015  No bank may be:

      1.  Organized [with a less capital than $250,000, or in such greater amount as may be required by the commissioner, and paid-up surplus of $50,000, or in] unless its initial stockholders’ or members’ equity is $300,000 or more, or such greater amount as may be required by the commissioner . [, and the] The full amount of the [capital and surplus] initial stockholders’ or members’ equity of any bank must be paid in cash, exclusive of all organization expenses, except as otherwise provided in this Title, before it may be authorized to commence the business of banking.

      2.  Organized or authorized to do banking or banking and trust business unless [it is a member in good standing of] its deposit accounts are insured by the Federal Deposit Insurance Corporation.

      Sec. 20.  NRS 661.025 is hereby amended to read as follows:

      661.025  1.  The [paid-up capital, together with the surplus, undivided profits, capital notes, debentures and reserves for losses] stockholders’ or members’ equity of any state bank [,] must, subject to the limitations [of] set forth in NRS 661.015, be at least 6 percent of the total deposit liability of the bank as [may be] determined by the commissioner. In determining the amount of [paid-up capital, surplus, undivided profits, capital notes, debentures and reserves for losses] stockholders’ or members’ equity that will be required, the commissioner shall give due consideration to the character and liquidity of the assets of the bank and to the standards regarding [capital] equity requirements established by other state and federal banking supervising agencies.

      2.  The commissioner shall, [for the purpose of determining capital] to determine the requirements for stockholders’ or members’ equity for any state bank, include [capital, surplus,] undivided profits, capital notes, debentures and any reserve for losses .


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ê1997 Statutes of Nevada, Page 981 (Chapter 286, AB 360)ê

 

state bank, include [capital, surplus,] undivided profits, capital notes, debentures and any reserve for losses . [, and may include as capital 6 percent of the par value of all unpledged United States Government bonds owned by the bank.]

      3.  The deposit liability for the purposes of this section must be the average of daily deposit liabilities for the preceding 60 calendar days.

      4.  [Nothing in this section prohibits] This section does not prohibit the acceptance of deposits by any bank while it is proceeding expeditiously, as determined by the commissioner, to comply with the provisions of this section.

      Sec. 21.  NRS 661.035 is hereby amended to read as follows:

      661.035  1.  [A banking corporation or company doing business under the provisions of this Title may increase its capital as permitted by law for other corporations or companies.

      2.]  A banking corporation may, with the approval of the commissioner , [and by the vote of the holders of at least two-thirds of the stock of the particular class or classes of stock entitled to vote on the proposal,] amend its articles of incorporation to authorize an increase or reduction in its authorized [but unissued common stock. Any such authorized increase of stock must be free from preemptive rights.

      3.  The authorized but unissued stock may be issued from time to time to its officers or employees pursuant to a stock option or stock purchase plan adopted in accordance with this Title.] stock.

      2.  The commissioner shall not approve an amendment of the articles of incorporation that reduces the authorized stock of the corporation unless he finds that the security of the existing creditors of the corporation will not be impaired.

      Sec. 22.  NRS 661.085 is hereby amended to read as follows:

      661.085  1.  If the [capital] stockholders’ or members’ equity of any bank has become impaired , [and the surplus and undivided profits of that bank are insufficient to make the impairment good,] the commissioner shall notify the officers and directors of the bank to require the bank to make the impairment good within [60 days after the notice by an assessment upon the stockholders or members of the bank.] 3 months after receiving notice from the commissioner.

      2.  The officers and directors of the bank [receiving] who receive the notice shall immediately [call a special meeting of the stockholders for the purpose of making an assessment upon its stockholders, or the managers shall make an assessment upon the members, payable in cash sufficient to cover the impairment of the capital. The assessment must be made unless the capital of the bank is reduced to the extent of the impairment as provided in NRS 661.046.

      3.  If any stockholder or member neglects or refuses to pay the required assessment, the board of directors or the managers shall, to make good the deficiency, cause a sufficient amount of the capital stock of the stockholder or interest of the member to be sold at public auction, upon 30 days’ notice. The notice must be given by posting a notice of the sale in the office of the bank and by publishing the notice in a newspaper in the place where the bank is located, or if there is no newspaper there, then in a newspaper circulating in the county in which the bank is located.


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ê1997 Statutes of Nevada, Page 982 (Chapter 286, AB 360)ê

 

circulating in the county in which the bank is located. The balance, if any, over and above the deficiency, must be returned to the delinquent shareholder or member.

      4.] require the bank to make the impairment good.

      3.  If, within 3 months after [receiving] the officers and directors of the bank receive the notice from the commissioner, the bank fails to make [good the deficiency in its capital,] the impairment good, the commissioner may forthwith take possession of the property and business of the bank until its affairs are finally liquidated as provided by law.

      [5.  A sale of stock as provided in this section effects an absolute cancellation of any outstanding certificate or certificates evidencing the stock so sold, and the certificate is void. A new certificate must be issued by the bank to the purchaser of any stock for which an outstanding certificate was canceled.

      6.  The other members of a banking company have the same right of first refusal, and the consequences of not exercising it are the same, as provided in NRS 661.075.]

      Sec. 23.  NRS 661.105 is hereby amended to read as follows:

      661.105  1.  [Notwithstanding any other provision of law, any] A banking corporation organized under the laws of this state may, with the approval of the commissioner , [and by vote of shareholders owning a majority of the stock of such corporation, upon not less than 10 days’ notice given by registered or certified mail pursuant to action taken by its board of directors,] issue preferred stock of one or more classes, in such amount and with such par value as is approved by the commissioner, [and make such amendments to its articles of incorporation as may be necessary for this purpose; but, in the case of a newly organized banking corporation which has not yet issued common stock, the requirements of notice to and vote of shareholders does not apply.

      2.  No issue of preferred stock is valid until the par value of all stock so issued is paid in.

      3.] unless such an issuance is prohibited by the provisions of chapter 78 of NRS.

      2.  Any preferred stock lawfully issued by a banking corporation organized under the laws of this state must be included in determining whether [such] the banking corporation has complied with the minimum [capital] requirements for stockholders’ equity provided by this Title.

      [4.  Such preferred stock must in no case be subject to any assessment.

      5.  The holders of such preferred stock shall not be held individually responsible as such holders for any debts, contract or engagements of such banking corporation, and must not be held liable for assessments to restore impairments in the capital of such corporation.

      6.  Preferred stock has such voting rights and is subject to retirement in such manner and upon such terms and conditions as may be provided in the articles of incorporation of new banks or amendments to the articles of incorporation of existing banks.

      7.  No dividends may be declared or paid on common stock until all cumulative dividends on the preferred stock have been paid in full; and if the bank is liquidated, either through voluntary or involuntary proceedings, and if all depositors and creditors are paid in full, then the preferred stockholders must be paid the full par value of their stock, plus all cumulated dividends before any distribution to holders of common stock.]

 


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ê1997 Statutes of Nevada, Page 983 (Chapter 286, AB 360)ê

 

and if all depositors and creditors are paid in full, then the preferred stockholders must be paid the full par value of their stock, plus all cumulated dividends before any distribution to holders of common stock.]

      Sec. 24.  NRS 661.115 is hereby amended to read as follows:

      661.115  1.  [The president and cashier, or the managers, of every bank shall cause to be kept at all times in the banking room where the bank’s business is transacted, a full and correct list of the names and places of residence of its stockholders or members, and the number of shares or percentage of interest held by each.

      2.]  On the [first] fourth Monday in January of each year, a copy of the list [,] of stockholders required to be maintained pursuant to paragraph (c) of subsection 1 of NRS 78.105 or the list of members required to be maintained pursuant to paragraph (a) of subsection 1 of NRS 86.241 must be verified by the oath of the president [or cashier,] or a manager [,] and must be transmitted to the commissioner and [must be] filed in his office for the confidential use of the commissioner.

      2.  The list of members required to be maintained pursuant to paragraph (a) of subsection 1 of NRS 86.241 must, in addition to the requirements set forth in that section, include the percentage of each member’s interest in the company.

      Sec. 25.  NRS 661.125 is hereby amended to read as follows:

      661.125  1.  As used in this section, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policy of the bank, or a change in the ownership of as much as 25 percent of the outstanding voting stock of , or participating members’ interests in , any bank.

      2.  If there is a change in ownership of [5] 10 percent or more of the outstanding voting stock of or members’ interests in any bank, the president or other chief executive officer of the bank shall report the facts to the commissioner within [24 hours] 3 business days after obtaining knowledge of the change.

      3.  If a loan or loans are made by a bank, and the loan or loans are, or are to be, secured by 10 percent or more of the voting stock of or members’ interests in a Nevada bank, the president or other chief executive officer of the bank which makes the loan or loans shall report that fact to the commissioner within 24 hours after obtaining knowledge of the loan or loans, except when the borrower has been the owner of record of the stock for 1 year or more [,] or the stock is of a newly organized bank before its opening.

      4.  The reports required in subsections 2 and 3 are in addition to any reports required by any other law and must contain whatever information is available to inform the commissioner of the effect of the transaction upon control of the bank whose stock or members’ interests are involved, and must contain, when known by the person making the report:

      (a) The number of shares or members’ interests involved;

      (b) The identity of the sellers or transferors and purchasers or transferees of record;

      (c) The identity of the beneficial owners of the shares or members’ interests involved;


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ê1997 Statutes of Nevada, Page 984 (Chapter 286, AB 360)ê

 

      (d) The purchase price;

      (e) The total number of shares or members’ interests owned by the sellers or transferors and purchasers or transferees of record, both immediately before and after the transaction being reported;

      (f) The total number of shares or members’ interests owned by the beneficial owners of the shares or members’ interests involved, both immediately before and after the transaction being reported;

      (g) The identity of borrowers;

      (h) The name of the bank issuing the stock securing, or whose members’ interests secure, the loan; and

      (i) The number of shares or members’ interests securing the loan and the amount of the loan or loans.

      5.  Each bank shall , within 24 hours after there is a change in the chief executive officer or directors of the bank, report the change to the commissioner . [within 24 hours any changes in chief executive officers or directors, including] The bank shall include in its report a statement of the past and current business and professional affiliations of new chief executive officers or directors. [Any] A new chief executive officer shall furnish to the commissioner a complete financial statement [as may be] if required to do so by the commissioner.

      6.  An application [pursuant to NRS 659.045] must be submitted to the commissioner by the person who acquires stock or members’ interests resulting in a change of control of the bank. The application must be submitted on a form prescribed by the division of financial institutions. Except as otherwise provided in subsection 8, the commissioner shall conduct an investigation to determine whether the character, general fitness and responsibility of the applicant is such as to command the confidence of the community in which the bank is located.

      7.  The bank with which the applicant is affiliated shall pay such a portion of the cost of the investigation as the commissioner requires. All money received by the commissioner pursuant to this subsection must be placed in the investigative account created by NRS 232.545. If the commissioner denies the application, he may forbid the applicant from participating in the business of the bank.

      8.  A bank may submit a written request to the commissioner to waive an investigation pursuant to subsection 6. The commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of , or his employment with , a financial institution.

      9.  As used in this section, “chief executive officer” includes a manager of a limited-liability company.

      Sec. 25.5.  NRS 661.145 is hereby amended to read as follows:

      661.145  1.  No person is eligible to serve as a director or manager of any bank, organized or existing under the laws of this state, unless he is a bona fide owner of stock of the bank or its holding company, or has a member’s interest in the bank. The stock or interest owned must have a total fair market value of at least $1,000. A determination of the value of the stock or interest must be based on its value on the date it was purchased or on its value on the date the owner became a director, whichever is greater.


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greater. The stock or the member’s contribution must be fully paid and not pledged.

      2.  [Except in the case of a merger between an out-of-state bank and a Nevada bank or an out-of-state bank that acquires a branch in Nevada pursuant to the provisions of chapter 666 of NRS, a majority of the board of directors or managers of every bank must be residents of the State of Nevada, and at least one of the directors or managers must reside in the county where its principal place of business is to be conducted.

      3.]  For the purposes of this section, “holding company” has the meaning ascribed to it in NRS 666.005.

      Sec. 26.  NRS 661.165 is hereby amended to read as follows:

      661.165  [1.]  The board of directors shall meet at least quarterly in regular meeting. At least quarterly, a thorough examination of the books, records, funds and securities held by the bank must be made. The examination may be dispensed with if an annual audit is made of the books, records, funds and securities.

      [2.  At each meeting of the directors, regular or special, the minutes of the previous meeting must be read and corrected, as may be desired, and thereupon signed by each director present.]

      Sec. 27.  NRS 661.195 is hereby amended to read as follows:

      661.195  Any director, manager, officer or other person who knowingly and intentionally participates in any violation of the laws of this state [relative] relating to banks is liable for all damage which the bank, its stockholders, members, depositors or creditors sustain [in consequence of such] as a result of that violation.

      Sec. 28.  NRS 661.235 is hereby amended to read as follows:

      661.235  1.  As used in this section, “net profits” means the remainder of all earnings from operations plus actual recoveries on loans and investments and other assets, after deducting from the total thereof all operating expenses, actual losses, transfers to reserve for loan losses and all federal and state taxes.

      2.  [Unless a greater dividend or distribution is authorized pursuant to NRS 661.225,] Except as otherwise provided in subsection 3, the directors of any state bank [may, from time to time,] shall not declare a dividend or make a distribution of [so much of] the net profits of the bank [as they judge expedient, except that until the] until:

      (a) The surplus fund of [such] the bank equals its [common capital, no dividends or distributions may be declared unless there] initial stockholders’ or members’ equity, not including its initial surplus fund;

      (b) There has first been carried to the surplus fund 10 percent of the previous year’s net profit [. No dividends may be paid or distribution made unless the capital and surplus of the bank equal not less than the minimum capital requirements of] ; and

      (c) The bank complies with the requirements set forth in NRS 661.025.

      3.  Except as otherwise provided in section 18 of this act, the directors of a state bank that maintains the insurance of deposits required pursuant to the provisions of the Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et seq.) may declare a dividend or make a distribution of so much of the net profits of the bank as they determine is expedient.


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      Sec. 29.  NRS 662.015 is hereby amended to read as follows:

      662.015  1.  In addition to the powers conferred by law upon private corporations and limited-liability companies, a bank may:

      (a) Exercise by its board of directors, managers or authorized officers and agents, subject to law, all powers necessary to carry on the business of banking [, by discounting] by:

             (1) Discounting and negotiating promissory notes, drafts, bills of exchange and other evidences of indebtedness [, by receiving deposits, by buying] ;

             (2) Receiving deposits;

             (3) Buying and selling exchange, coin and bullion ; and [by loaning]

             (4) Loaning money on personal security or real and personal property. At the time of making loans, banks may take and receive interest or discounts in advance.

      (b) Adopt regulations for its own government not inconsistent with the constitution and laws of this state.

      (c) Issue, advise and confirm letters of credit authorizing the beneficiaries to draw upon the bank or its correspondents.

      (d) Receive money for transmission.

      (e) Establish and become a member of a clearinghouse association and pledge assets required for its qualification.

      (f) Exercise any authority and perform all acts that a national bank may exercise or perform, with the consent and written approval of the commissioner. The commissioner may, by regulation, waive or modify a requirement of this Title if the corresponding requirement for national banks is eliminated or modified.

      (g) Provide for the performance of the services of a bank service corporation, such as data processing and bookkeeping, subject to any regulations [which may be] adopted by the commissioner.

      (h) Unless otherwise specifically prohibited by federal law, sell annuities if licensed by the commissioner of insurance.

      2.  A bank may purchase, hold and convey real property:

      (a) As is necessary for the convenient transaction of its business, including furniture and fixtures, with its banking offices and for future site expansion. This investment must not exceed, except as otherwise provided in this section, 60 percent of its [capital accounts] stockholders’ or members’ equity, plus subordinated capital notes and debentures. The commissioner may [, in his discretion,] authorize any bank located in a city whose population is more than 10,000 to invest more than 60 percent of its [capital accounts] stockholders’ or members’ equity, plus subordinated capital notes and debentures , in its banking [houses,] offices, furniture and fixtures.

      (b) As is mortgaged to it in good faith by way of security for loans made or money due to the bank.

      (c) As is permitted by NRS 662.103.

      3.  This section does not prohibit any bank from holding, developing or disposing of any real property it may acquire through the collection of debts due it. Any real property acquired through the collection of debts due it may not be held for [a longer time] longer than 10 years. It must be sold at private or public sale within 30 days thereafter.


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private or public sale within 30 days thereafter. During the time that the bank holds the real property, the bank shall charge off the real property on a schedule of not less than 10 percent per year, or at a greater percentage per year as the commissioner may require.

      Sec. 30.  NRS 662.065 is hereby amended to read as follows:

      662.065  1.  As used in this section, “private security” means a marketable obligation in the form of a bond, note or debenture which is commonly regarded as an investment security. It does not include investments which are predominantly speculative in nature.

      2.  A bank may purchase a private security for its own account when in its prudent banking judgment, which may be based in part upon estimates which it believes to be reliable, it determines that:

      (a) There is adequate evidence that the obligor will be able to perform all that it undertakes to perform in connection with the security, including all debt service requirements; and

      (b) The security may be sold with reasonable promptness at a price which corresponds reasonably to its fair value.

      3.  A bank may purchase a private security for its own account, although its judgment with respect to the obligor’s ability to perform is based predominantly upon estimates which it believes to be reliable. Although the appraisal of the prospects of any obligor will generally be based in part upon estimates, it is the purpose of this subsection to permit a bank to exercise a broader range of judgment with respect to a more restricted portion of its investment portfolio. This authority may be exercised not only in the absence of a record of performance, but also when there are prospects for improved performance.

      4.  A bank may , [consider] as a factor in reaching its prudent banking judgment with respect to a private security, consider a ruling published by the commissioner on the eligibility of [such] the private security for purchase. Consideration must be given to the possibility that circumstances on which the ruling was based [,] may have changed since the time of the ruling.

      5.  Subject to the limitations [of] set forth in NRS 662.155, the investment in any private securities of any one obligor may at no time be more than 25 percent of the [unimpaired capital and permanent surplus of any bank.] stockholders’ or members’ equity of the bank.

      Sec. 31.  NRS 662.095 is hereby amended to read as follows:

      662.095  1.  To the same extent that a bank may invest its money in obligations of the United States, a bank may invest its money and may invest the money in its custody or possession which is eligible for investment:

      (a) In bonds or notes secured by a mortgage or deed of trust insured or guaranteed by the Federal Housing Administrator or the Department of Veterans Affairs;

      (b) In mortgages on real property which have been accepted for insurance by the Federal Housing Administrator or Department of Veterans Affairs; and


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      (c) In obligations of national mortgage associations or bonds, debentures, consolidated bonds or other obligations of any Federal Home Loan Bank or Banks.

      2.  A bank may make such loans:

      (a) Secured by real property, as the Federal Housing Administrator or Department of Veterans Affairs has insured or has made a commitment to insure, and may obtain such insurance.

      (b) As are insured or guaranteed by the Federal Housing Administrator, and on being approved as eligible for credit insurance by the Department of Veterans Affairs, may make such loans as are insured or guaranteed by the Department of Veterans Affairs.

      3.  Wherever by statute of this state:

      (a) Collateral is required as security for the deposit of public money;

      (b) Deposits are required to be made with any public officer or department; or

      (c) An investment of [capital or surplus,] stockholders’ or members’ equity, or a reserve or other fund is required to be maintained, consisting of designated securities,

bonds and notes secured by a mortgage or deed of trust insured by the Federal Housing Administrator or Department of Veterans Affairs, debentures issued by the Federal Housing Administrator and obligations of national mortgage associations are eligible for [such] those purposes.

      4.  No law of this state prescribing the nature, amount or form of security or requiring security upon which loans or investments may be made, prescribing or limiting the rates of time of payment of the interest any obligation may bear, or prescribing or limiting the period for which loans or investments may be made, applies to loans or investments made pursuant to this section.

      Sec. 32.  NRS 662.099 is hereby amended to read as follows:

      662.099  A state bank may purchase for its own account the [capital] stock and other securities of:

      1.  A development corporation organized under the provisions of chapter 670 of NRS; [and]

      2.  A corporation for economic revitalization and diversification organized under the provisions of chapter 670A of NRS, if the bank is a member of the corporation, and to the extent of its loan limit established under NRS 670A.200, on the same terms and under the same conditions as a national bank may purchase them [.] ; and

      3.  Subject to any conditions imposed by the commissioner, a development corporation, a corporation for economic revitalization and diversification, a corporation for community development, or a similar corporation organized in another state if the commissioner determines that the laws pursuant to which the corporation is organized are substantially similar to the provisions of chapter 670 or 670A of NRS.

      Sec. 33.  NRS 662.103 is hereby amended to read as follows:

      662.103  1.  A bank may invest in real property for development, directly or through partnerships, joint ventures or other indirect methods. Any such investment must not exceed the market value or appraisal of the property as evidenced by a report prepared within 120 days before the investment by a member of a society approved collectively by the commissioner or by another appraiser [so] approved individually [.]


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investment by a member of a society approved collectively by the commissioner or by another appraiser [so] approved individually [.] by the commissioner. Approval must be based on the independence, experience and training required of or possessed by the appraiser.

      2.  Within 30 days after such an investment is made, the bank must file with the commissioner:

      (a) A certified copy of at least one report of the appraisal of the real property in which the investment is made; and

      (b) The report of a title insurance company which contains the transfers of title which occurred during a period of at least 3 years immediately preceding the investment and the amount of consideration, if available, given for each transfer.

      3.  A bank may not invest in real property for development, exclusive of investments allowed under paragraphs (a) and (b) of subsection 2 of NRS 662.015 and of real property acquired through the collection of debts due to the bank, an amount which exceeds its [capital accounts] stockholders’ or members’ equity or 10 percent of its assets, whichever is less. The commissioner may require a statement from the bank disclosing whether any director, officer or employee of the bank has a direct or indirect interest in the real property involved or has had any such interest at any time during the preceding 3 years. Ownership of stock in a corporation which has an interest is an interest in the property of the stockholder. Failure to make a required disclosure is unlawful.

      Sec. 34.  NRS 662.105 is hereby amended to read as follows:

      662.105  Subject to any applicable regulations of the commissioner, a banking corporation may grant options to purchase, sell or enter into agreements to sell shares of its capital stock to its directors, officers or employees, or [both,] any of them, for a consideration of not less than 100 percent of the fair market value of the shares on the date the option is granted, or, if pursuant to a stock purchase plan, 85 percent of the fair market value of the shares on the date the purchase price is fixed, pursuant to the terms of a plan for the purchase of stock by officers and employees which has been adopted by the board of directors of the bank and approved by a majority of the holders of [at least two-thirds of] the particular class or classes of stock [entitled to vote on the proposal] that are included in the plan and by the commissioner. In no event may the option to purchase such shares be for a consideration less than the par value thereof.

      Sec. 35.  NRS 662.115 is hereby amended to read as follows:

      662.115  A bank may issue capital notes , collateralized debt securities, collateralized debt certificates, or debentures, convertible or otherwise, subject to such regulations as the commissioner may adopt with respect thereto.

      Sec. 36.  NRS 662.125 is hereby amended to read as follows:

      662.125  1.  [No] Except as otherwise provided in subsection 2, no bank may make any loan or discount on the security of its own [capital] stock or members’ interests, nor be the purchaser or holder of any such shares or interests, unless the [security or purchase] loan, discount, purchase or holding has been approved by the commissioner or is necessary to prevent loss upon a debt previously contracted in good faith.


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ê1997 Statutes of Nevada, Page 990 (Chapter 286, AB 360)ê

 

      2.  A bank may make a loan or discount on the security of its own stock or members’ interests as it deems appropriate if the bank is subject to the reporting requirements set forth in section 12, 13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended (15 U.S.C §§ 78l, 78m, 78n and 78o(d), respectively) or 12 C.F.R. § 335.

      3.  Stock or interests [so] purchased or acquired to prevent loss upon a debt previously contracted in good faith must , within [12 months after purchase] 2 years after they are purchased, be sold or disposed of at a public or private sale [.] , unless the commissioner authorizes the bank to hold the stock or interests for a longer period. After the expiration of [12 months,] 2 years or the period authorized by the commissioner, any such stock or interests not [so] sold or disposed of pursuant to this subsection must , except upon the approval of the commissioner, be charged to profit and loss and must not be considered as part of the assets of the bank.

      [2.] 4.  Any bank may sell or become the owner of any property which may come into its possession as collateral security for any debt or obligation due it, according to the terms of any contract depositing [such] the collateral security . [, and if] If there is no [such contract, then] contract, the collateral security may be sold in the manner provided by law. Any [such] property the bank has in its possession pursuant to this subsection, other than real property , must be sold within 2 years after [acquisition.] it is acquired, unless the commissioner authorizes the bank to hold the property for a longer period.

      Sec. 37.  NRS 662.135 is hereby amended to read as follows:

      662.135  1.  Except as otherwise provided in this section and subject to the provisions of NRS 662.065 and 662.125, no bank may make any investment in [capital] the stock or become a member of any other state or national bank.

      2.  A bank doing business under this Title may subscribe to or purchase, upon such terms as may be agreed upon, the [capital] stock of banks organized under the Act of Congress known as the Edge Act or the [capital] stock of central reserve banks whose [capital] stock exceeds $1,000,000.

      3.  [In order to] To constitute a central reserve bank as contemplated by this Title, at least 50 percent of the capital stock of [such] the bank must be owned by other banks. The investment by any bank in the capital stock of [such] a central reserve bank or a bank organized under the Edge Act, must at no time exceed 10 percent of the [paid-in capital and permanent surplus] stockholders’ or members’ equity of the bank making the investment.

      4.  A bank shall not invest in the stocks or ownership of other corporations, firms, partnerships or companies except as otherwise provided in this Title, unless the investment is made to protect the bank from loss.

      5.  A bank may invest in the stocks or ownership of other corporations, firms, partnerships or companies as part of a merger, consolidation, combination or acquisition that is authorized pursuant to the provisions of chapter 78, 86 or 92A of NRS, regardless of whether the investment is made to protect the bank from loss.

      6.  Any stocks or ownership owned or acquired after July 1, 1971, in excess of the limitations imposed by this section must be disposed of at public or private sale within 12 months after the date of acquiring them, and if not so disposed of , they must be charged to profit and loss account, and no longer carried on the books as an asset.


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ê1997 Statutes of Nevada, Page 991 (Chapter 286, AB 360)ê

 

if not so disposed of , they must be charged to profit and loss account, and no longer carried on the books as an asset. The limit of time in which such stocks or ownership is disposed of or charged off the books of the bank may be extended by the commissioner if in his judgment it is for the best interest of the bank that an extension be granted.

      [6.] 7.  A bank may subscribe to, purchase or become the owner of stock in:

      (a) Federal reserve banks as established by Act of Congress approved December 23, 1913, being c. 6, 38 Stat. 251, or any amendment thereof; or

      (b) Any governmental agency , Federal Home Loan Bank or liquidating or financial corporation created by the Congress of the United States.

      [7.] 8.  A bank may invest up to 50 percent of its surplus in the stock or membership of corporations or limited-liability companies engaged in related banking fields.

      Sec. 38.  NRS 662.145 is hereby amended to read as follows:

      662.145  1.  Subject to the limitations [of] set forth in NRS 662.155, the total outstanding loans of any bank to any person, company, corporation or firm [, including in the loans to any unincorporated company or firm the loans to the several members thereof,] may not at any time exceed 25 percent of the [capital and surplus] stockholders’ or members’ equity of the bank, actually paid in. The discount of bills of exchange drawn in good faith against actual existing values, as collateral security, and a discount or purchase of commercial or business paper, actually owned by the persons, must not be considered as money loaned.

      2.  Neither the limitation on loans by banks contained in this section nor any other similar limitations contained in any law of this state relating to banks or banking apply to any loan or loans made by any bank to the extent that they are secured or covered by guarantees or by commitments or agreements to take over or to purchase made by any Federal Reserve Bank or by the United States or any department, bureau, board, commission or establishment of the United States, including any corporation wholly owned, directly or indirectly, by the United States.

      3.  The commissioner may establish limitations on loans made by a bank to its directors, officers or employees and may establish requirements for the reporting of these loans.

      4.  The commissioner may adopt regulations necessary to carry out the provisions of this section.

      Sec. 39.  NRS 662.155 is hereby amended to read as follows:

      662.155  1.  The combination of investments in private securities provided for in subsection 5 of NRS 662.065 [,] and outstanding loans provided for in subsection 1 of NRS 662.145, of any bank to any one obligor, person, company, corporation or firm, including any unincorporated company or firm and [to the several] the members thereof, [shall] must not at any time exceed 25 percent of the [unimpaired capital and permanent surplus] stockholders’ or members’ equity of the bank.

      2.  The commissioner may adopt regulations necessary to carry out the provisions of this section.


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ê1997 Statutes of Nevada, Page 992 (Chapter 286, AB 360)ê

 

      Sec. 40.  NRS 662.175 is hereby amended to read as follows:

      662.175  1.  Any bank may secure money deposited with a bank by the United States, the State of Nevada or a political subdivision of this state by pledging acceptable assets of the bank as collateral security.

      2.  Any bank may borrow money for temporary purposes, not to exceed the amount of its [paid-up capital and surplus,] stockholders’ or members’ equity, and may pledge any of its assets as collateral security therefor.

      3.  With the written consent of the commissioner , [and the state board of finance in each instance,] a bank may borrow [to the amount of 50] an amount that is not more than 200 percent in excess of its [paid-up capital and surplus,] stockholders’ or members’ equity, and pledge assets of the bank as collateral security [therefor.] for the amount borrowed. Any indebtedness contracted in excess of the amount limited in this subsection is void in its entirety.

      4.  A bank may borrow money from the Federal Home Loan Bank. Money borrowed pursuant to this subsection shall not be deemed borrowed money for the purposes of the limitations prescribed in subsections 2 and 3. A bank may pledge any of its assets as collateral security for money borrowed pursuant to this subsection.

      5.  The purchase of federal reserve money by a bank from another bank shall be deemed a transfer from a seller’s account in a Federal Reserve Bank to the buyer’s account [therein, and such] in that bank, and the transfer shall be considered a purchase and sale of [such money. Any such] federal reserve money. Such a transfer does not create an obligation on the part of the buyer subject to NRS 662.145, or a borrowing subject to the limitations of this section, but shall be considered a purchase and sale of [such] federal reserve money.

      Sec. 41.  NRS 662.205 is hereby amended to read as follows:

      662.205  1.  As used in this section:

      (a) “Board of Governors of the Federal Reserve System” means the Board of Governors of the Federal Reserve System created and described in the Federal Reserve Act.

      (b) “Federal Reserve Act” means the Act of Congress, approved December 23, 1913, being c. 6, 38 Stat. 251, as amended.

      (c) “Federal Reserve Bank” means the Federal Reserve Banks created and organized under authority of the Federal Reserve Act.

      (d) “Member bank” means any national bank, state bank or banking and trust company which has become or which becomes a member of one of the Federal Reserve Banks created by the Federal Reserve Act.

      2.  Any bank organized under the laws of this state may subscribe to the [capital] stock and become a member of a Federal Reserve Bank.

      3.  Any bank organized under the laws of this state which is, or which becomes, a member of a Federal Reserve Bank is, by this section, vested with all powers conferred upon member banks of the Federal Reserve Banks by the terms of the Federal Reserve Act as fully and completely as if such powers were specifically enumerated and described in this section, and all such powers must be exercised subject to all restrictions and limitations imposed by the Federal Reserve Act, or by regulations of the Board of Governors of the Federal Reserve System made pursuant thereto. The right, however, is expressly reserved to revoke or to amend the powers conferred in this section.


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ê1997 Statutes of Nevada, Page 993 (Chapter 286, AB 360)ê

 

however, is expressly reserved to revoke or to amend the powers conferred in this section.

      4.  A compliance on the part of any such bank with the reserve requirements of the Federal Reserve Act shall be deemed to be a full compliance with those provisions of the laws of this state which require banks to maintain cash balances in their vaults or with other banks, and no such bank need carry or maintain a reserve other than such as is required under the terms of the Federal Reserve Act.

      5.  Any such bank continues to be subject to the supervision and examinations required by the laws of this state, except that the Board of Governors of the Federal Reserve System may, if it deems necessary, make examinations. The authorities of this state having supervision over such bank may disclose to the Board of Governors of the Federal Reserve System, or to examiners [duly] appointed by it, all information in reference to the affairs of any bank which has become, or desires to become, a member of a Federal Reserve Bank.

      Sec. 42.  NRS 662.215 is hereby amended to read as follows:

      662.215  1.  Any bank organized under the provisions of this Title may carry on a savings business as prescribed in this Title.

      2.  Any bank conducting a savings business may receive deposits on such terms as are authorized by its board of directors.

      3.  A receipt or a passbook must be issued to each depositor in a bank for all money deposited on open account.

      4.  The [receipt or passbook must contain the] rules and regulations adopted by the bank governing [the deposit or if the passbook does not contain those rules and regulations, they] deposits must be [printed] :

      (a) Included in the receipt or passbook issued pursuant to subsection 3;

      (b) Printed and conspicuously posted in [some] a place accessible and visible to all persons in the business office of the bank [, and the rules and regulations must be accepted by the depositor, and thereupon shall be deemed agreed to by him.] ; or

      (c) Provided directly to the depositor.

      5.  Payments from the account to the depositor must be made only [upon his written order.] if the depositor authorizes the payments. Banks issuing savings deposit receipts for accounts other than certificates of deposit or passbook accounts shall, not less often than:

      (a) Quarterly, for accounts having a balance of $100 or more; or

      (b) Annually, for accounts having a balance of less than $100,

deliver or mail to the depositor a statement, showing the balance on deposit in the account and each deposit made by and each payment made to the depositor during the calendar quarter.

      [4.  Nothing in this Title prohibits]

      6.  This Title does not prohibit a bank from issuing time certificates of deposit.

      Sec. 43.  (Deleted by amendment.)

      Sec. 44.  NRS 665.133 is hereby amended to read as follows:

      665.133  1.  The records and information described in [subsection 1 of] NRS 665.130 may be disclosed to:


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ê1997 Statutes of Nevada, Page 994 (Chapter 286, AB 360)ê

 

      (a) An agency of the Federal Government or of another state which regulates the financial institution which is the subject of the records or information;

      (b) The director of the department of business and industry for his confidential use;

      (c) The state board of finance for its confidential use, if the report or other information is necessary for the state board of finance to perform its duties under this Title;

      (d) An entity which insures or guarantees deposits;

      (e) A public officer authorized to investigate criminal charges in connection with the affairs of the depository institution;

      (f) A person preparing a proposal for merging with or acquiring an institution or holding company, but only after notice of the disclosure has been given to the institution or holding company;

      (g) Any person to whom the subject of the report has authorized the disclosure;

      (h) Any other person if the commissioner determines, after notice and opportunity for hearing, that disclosure is in the public interest and outweighs any potential harm to the depository institution and its [shareholders,] stockholders, members, depositors and creditors; and

      (i) Any court in a proceeding initiated by the commissioner concerning the financial institution.

      2.  All the reports made available pursuant to this section remain the property of the division of financial institutions, and no person, agency or authority to whom the reports are made available, or any officer, director or employee thereof, may disclose any of the reports or any information contained therein, except in published statistical material that does not disclose the affairs of any natural person or corporation.

      Sec. 45.  NRS 665.135 is hereby amended to read as follows:

      665.135  In making the examinations [as] required by this Title, the commissioner and any appointed examiner may administer oaths to examine any officer, director, manager, agent, employee, customer, depositor, [shareholder] stockholder or member of the bank, or any other person [or persons,] touching the affairs and business of the bank being examined. Any examiner may summon in writing any officer, director, manager, agent, employee, customer, depositor, [shareholder] stockholder or member, or any other person [or persons] who is a resident of this state, to appear before him and testify in relation to the affairs and business of [such] the bank.

      Sec. 46.  NRS 665.165 is hereby amended to read as follows:

      665.165  1.  Every state bank shall retain its business records for such periods as are or may be prescribed by or in accordance with the terms of this section.

      2.  Each state bank shall retain permanently the minute books of meetings of its stockholders and directors, any analogous formal proceedings of its members or managers, its [capital] stock ledger and [capital] stock certificate ledger or stubs, its general ledger, its investment ledger, its copies of bank examination reports, and all records which the commissioner in accordance with this section requires to be retained permanently.


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ê1997 Statutes of Nevada, Page 995 (Chapter 286, AB 360)ê

 

commissioner in accordance with this section requires to be retained permanently.

      3.  All other bank records must be retained for such periods as the commissioner may in accordance with this section prescribe.

      4.  The commissioner shall, from time to time, [issue] adopt regulations classifying all records kept by state banks and prescribe the period for which records in each class must be retained. The periods may be permanent or for a lesser term of years. The commissioner shall keep such regulations current and shall review them at least once every 3 years. In issuing and revising such regulations, the commissioner shall consider:

      (a) Actions at law and administrative proceedings in which the production of bank records [might] may be necessary or desirable.

      (b) State and federal statutes of limitation applicable to such actions or proceedings.

      (c) The availability of information contained in bank records from other sources.

      (d) Such other matters as the commissioner [considers pertinent in order that his] deems pertinent to ensure that the regulations will require banks to retain their records for as short a period as is commensurate with the interests of bank customers and [shareholders] stockholders or members and of the people of this state in having bank records available.

      5.  Any state bank may dispose of any record which has been retained for the period prescribed by or in accordance with the terms of this section for retention of records of its class, and thereafter is under no duty to produce the record in any action or proceeding.

      6.  Any state bank may cause any or all records required to be kept pursuant to this section to be reproduced by the microphotographic process, optical disk imaging or any other equivalent technique designed to ensure an accurate reproduction of the original. Any such reproduction has the same effect as the original. Upon completion of such a duplication, the original of any record may be destroyed.

      7.  To the extent that they are not in contravention of any law of the United States, the provisions of this section apply to all banks doing business in this state.

      Sec. 47.  Chapter 666 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A Nevada depository institution or its holding company that acquires an out-of-state depository institution, a Nevada depository institution that is the resulting depository institution after merging with an out-of-state depository institution, or a Nevada depository institution that otherwise establishes or acquires a branch outside of this state, may, in accordance with applicable state and federal law:

      (a) Continue to operate the out-of-state depository institution or branch;

      (b) Convert any existing main office or branch outside of this state into a branch of the Nevada depository institution;

      (c) Establish or acquire additional branches of the Nevada depository institution in any state where the out-of-state institution could have done so if it had not been acquired or merged;


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ê1997 Statutes of Nevada, Page 996 (Chapter 286, AB 360)ê

 

      (d) Continue or establish its principal office or principal place of business outside this state notwithstanding the provisions of NRS 660.015 and 662.245; and

      (e) Subject to the approval of the commissioner, exercise any power and engage in any activity outside of this state to the same extent as the out-of-state depository institution could have if it had not been acquired or merged, even if the Nevada depository institution is not authorized to exercise those powers or engage in those activities in this state.

      2.  The commissioner shall not approve the exercise of any power or the engagement in any activity pursuant to paragraph (d) or (e) of subsection 1 if the commissioner determines that the exercise of that power or the engagement in that activity would be inconsistent with safe and sound banking practices.

      3.  Except as otherwise provided in paragraph (d) of subsection 1, a branch outside this state of a Nevada depository institution shall comply with, and have all rights and powers prescribed in, the laws of this state relating to depository institutions.

      4.  This section does not affect the authority of the commissioner to examine, supervise and regulate a Nevada depository institution operating or seeking to operate a branch outside this state.

      Sec. 48.  NRS 666.003 is hereby amended to read as follows:

      666.003  “Control” means the power, directly or indirectly, to:

      1.  Direct or exercise a controlling influence over the management or policies of a depository institution or the election of a majority of the directors or trustees of an institution; or

      2.  Vote:

      (a) Twenty percent or more of any class of voting securities of a depository institution if exercised by a natural person; or

      (b) More than [5] 10 percent of any class of voting securities of a depository institution if exercised by a person other than a natural person.

      Sec. 49.  NRS 666.015 is hereby amended to read as follows:

      666.015  1.  With the approval of the commissioner, a Nevada depository institution may merge or consolidate with, or transfer its assets and liabilities to, another Nevada depository institution, an out-of-state depository institution or an out-of-state holding company.

      2.  [Application to] An application filed with the commissioner for approval of the merger, consolidation or transfer must be on a form prescribed by the commissioner and must include:

      (a) A nonrefundable fee of $3,000 for the application. The depository institution [shall] must also pay such additional expenses incurred in the process of investigation as the commissioner deems necessary. All money received by the commissioner pursuant to this section must be placed in the investigative account created by NRS 232.545.

      (b) Certified copies of the [minutes of all proceedings had] resolutions adopted by the directors and stockholders or the managers and members of the depository institution or the stockholders of the holding company regarding the merger, consolidation or transfer. The minutes of the proceedings [had] conducted by the stockholders or members of each depository institution or the stockholders of each holding company and the resolutions adopted by them, if any, must set forth that holders of at least [two-thirds] a majority of the stock or members’ interests voted in the affirmative on the proposition of merger, consolidation or transfer.


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ê1997 Statutes of Nevada, Page 997 (Chapter 286, AB 360)ê

 

resolutions adopted by them, if any, must set forth that holders of at least [two-thirds] a majority of the stock or members’ interests voted in the affirmative on the proposition of merger, consolidation or transfer. The [minutes] resolutions must also contain or have attached thereto a complete copy of the [agreement made and entered into between the depository institutions or with the holding company, with reference to the merger, consolidation or transfer.] plan of merger.

      (c) Information which the commissioner requires to make the findings specified in subsection 7.

      3.  When a completed application has been filed, the commissioner shall conduct an investigation of each depository institution to determine:

      (a) Whether the interests of the depositors, creditors and stockholders or members of each depository institution are protected.

      (b) That the merger, consolidation or transfer is in the public interest.

      (c) That the merger, consolidation or transfer is made for legitimate purposes.

      (d) Whether each depository institution has a good record of compliance with the Community Reinvestment Act of 1977 (12 U.S.C. §§ 2901 to 2905, inclusive).

      4.  The commissioner’s approval or rejection of the merger, consolidation or transfer must be based upon his investigation. The expense of the investigation must be paid by the depository institutions.

      5.  Notice of the merger, consolidation or transfer must be published once [a] each week for 4 consecutive weeks, before or after the merger, consolidation or transfer is effective at the discretion of the commissioner, in a newspaper published in a city, town or county in which each of the depository institutions is located, and a certified copy of the notice must be filed with the commissioner.

      6.  The commissioner shall issue his written decision within 60 days after receiving a completed application. The commissioner may approve the application subject to any terms and conditions which he considers necessary to protect the public interest.

      7.  The commissioner shall disapprove an application if he finds that:

      (a) The proposed transaction would be detrimental to the safety and soundness of the applicant, to any institution which is a party to the transaction or to a subsidiary or affiliate of any such institution;

      (b) The applicant [,] or its executive officers, directors, managers, principal stockholders or members have not established a record of sound performance, efficient management, financial responsibility and integrity so that it would be against the interest of the depositors, other customers, creditors, [shareholders] stockholders or members of an institution, or the general public to authorize the proposed transaction;

      (c) The financial condition of the applicant or any other institution which is a participant in the proposed transactions might jeopardize the financial stability of the applicant or other institution, or prejudice the interests of depositors or other customers of the applicant or other institutions;

      (d) The consummation of the proposed transaction will tend to lessen competition substantially, unless [he] the commissioner finds that the anticompetitive effects of the proposed transaction are clearly outweighed by the benefit of accommodating the convenience and needs of the relevant market to be served; or

 


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ê1997 Statutes of Nevada, Page 998 (Chapter 286, AB 360)ê

 

the benefit of accommodating the convenience and needs of the relevant market to be served; or

      (e) The applicant has not established a record of meeting the needs for credit of the communities which it or its subsidiary depository institution serves.

      8.  [In any] If a merger, consolidation or transfer [, all rights of creditors and all liens upon any property of the constituent depository institutions must be preserved unimpaired, limited in lien to the property affected by those liens immediately before the time of the merger, consolidation or transfer. All debts, liabilities and duties of the respective constituent depository institutions must thenceforth attach to the surviving, consolidated or transferee depository institution and may be enforced against it to the same extent as if the debts, liabilities and duties had been incurred or contracted by it.

      9.  In the case of a merger, consolidation or transfer pursuant to the provisions of this section, if any stockholder or member of any constituent depository institution votes against the agreement, objects to the agreement in writing at or before the taking of the vote thereon, and, within 20 days after the date on which the agreement is filed as provided in this section, demands in writing from the surviving or consolidated depository institution payment for his shares or interest, the surviving, consolidated or transferee depository institution shall, within 30 days thereafter, pay to the stockholder or member the fair cash value of his shares or interest as of the day before the vote on the agreement of merger, consolidation or transfer was taken, exclusive of any element of value arising from the expectation or accomplishment of the merger, consolidation or transfer.

      10.] is approved pursuant to this section, the property and liabilities of the constituent depository institutions must be treated in the manner prescribed in NRS 92A.250.

      9.  A Nevada depository institution authorized pursuant to this section to merge or consolidate with, or transfer its assets and liabilities to, an out-of-state depository institution or an out-of-state holding company shall comply with the laws of all states in which it is authorized to operate.

      Sec. 50.  NRS 666.035 is hereby amended to read as follows:

      666.035  1.  A state bank may, with the approval of the commissioner, consolidate, convert into or merge with a national bank upon the vote of the holders of not less than two-thirds of each class of voting stock of, or of the members’ interests in, the state bank.

      2.  The commissioner shall not approve any consolidation, conversion or merger under this section which would:

      (a) Result in a monopoly or which would further any attempt to monopolize the business of banking in this state; or

      (b) Substantially lessen competition or be in restraint of trade, unless the commissioner finds that the anticompetitive effects of the proposed transaction are clearly outweighed by the probable success of the transaction in meeting the needs of the community to be served.

In every case, the commissioner shall consider the financial and managerial resources and the future prospects of the company or companies and the banks concerned, and the convenience and the needs of the community to be served.


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ê1997 Statutes of Nevada, Page 999 (Chapter 286, AB 360)ê

 

banks concerned, and the convenience and the needs of the community to be served.

      3.  Except as otherwise provided in subsection 5, the rights and liabilities of a state bank which consolidates, converts into or merges with a national bank, and the rights and liabilities of [its] the stockholders or members [,] of the state bank, are the same as the rights and liabilities prescribed by the law of the United States for national banks and their stockholders or members at the time of the consolidation, conversion or merger.

      4.  Upon consolidation, conversion or merger, the resulting national bank becomes the same business as each consolidating, converting or merging bank, with all the property rights, power and duties of each consolidating, converting or merging bank, except as affected by the law of the United States and by the charter and bylaws of the resulting bank. Any reference to a consolidating, converting or merging bank in any writing, whether executed or which takes effect before or after the consolidation, conversion or merger, is applicable to the resulting bank if not inconsistent with the other provisions of that writing.

      5.  The holders of shares of the stock of, or members’ interests in, a state bank which were voted against a consolidation or merger into a national bank are entitled to receive their value in cash, if and when the consolidation or merger becomes effective, upon written demand made to the resulting national bank at any time within 30 days after the effective date of the consolidation or merger, accompanied by the surrender of any stock certificate or certificates. The value of the shares or interests must be determined, as of the date of the meeting of the stockholders or members approving the consolidation or merger, by three appraisers [, one] to be selected as follows:

      (a) One by the owners of two-thirds of the dissenting shares or interests involved

[, one] ;

      (b) One by the board of directors of the resulting national bank [, and the third by the two so chosen.] ; and

      (c) One by the appraisers chosen pursuant to paragraphs (a) and (b).

The valuation agreed upon by any two appraisers governs. If the appraisal is not completed within 90 days after the consolidation or merger becomes effective, the Comptroller of the Currency shall cause an appraisal to be made.

      6.  The amount fixed as the value of the shares of stock of, or members’ interests in, the consolidating or merging bank at the time of the meeting of the stockholders or members approving the consolidation or merger, and the amount fixed by the appraisal as provided by subsection 5, where the fixed value is not accepted, constitute a debt of the resulting national bank.

      7.  Upon the completion of the consolidation, conversion or merger, the license to operate as a state bank automatically terminates.

      Sec. 51.  NRS 666.075 is hereby amended to read as follows:

      666.075  1.  There is a rebuttable presumption that a company which directly or indirectly owns, controls or has the power to vote less than [5] 10 percent of the voting stock of, or members’ interests in, a bank does not control the bank.


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ê1997 Statutes of Nevada, Page 1000 (Chapter 286, AB 360)ê

 

10 percent of the voting stock of, or members’ interests in, a bank does not control the bank.

      2.  An estate, trust, guardianship or conservatorship is not by virtue of its ownership or control of stock of, or members’ interests in, a bank, a bank holding company unless it is:

      (a) A business trust; or

      (b) A voting trust which by its terms or by law does not expire within 10 years after the date of its establishment.

      3.  A company is not a bank holding company by virtue of its ownership or control of stock or a member’s interest which:

      (a) Was acquired in the ordinary course of securing or collecting a debt which the company previously contracted in good faith; and

      (b) Is held only as long as is necessary to sell the stock on a reasonable basis.

      Sec. 52.  NRS 666.315 is hereby amended to read as follows:

      666.315  1.  [Application to] An application filed with the commissioner for approval must be on a form prescribed by the commissioner and must include:

      (a) A nonrefundable fee of $3,000 for the application. The depository institution or holding company [shall] must also pay such additional expenses incurred in the process of investigation as the commissioner deems necessary. All money received by the commissioner pursuant to this section must be placed in the investigative account created by NRS 232.545.

      (b) Information which the commissioner requires to make the findings specified in subsection 4.

      (c) Unless the applicant is a resident of Nevada, a corporation organized in this state or a foreign corporation admitted to do business in this state, a written consent to service of process on a resident of this state in any action arising out of the applicant’s activities in this state.

      2.  In reviewing the application, the commissioner shall consider the applicant’s record of compliance with the Community Reinvestment Act of 1977 (12 U.S.C. §§ 2901 to 2905, inclusive) and whether the proposed transaction will meet the needs of those counties whose populations are less than 100,000 and whose residents are not being adequately served by existing financial institutions.

      3.  The commissioner shall issue his written decision within 60 days after receiving a completed application. The commissioner may approve the application subject to any terms and conditions which he considers necessary to protect the public interest.

      4.  The commissioner shall disapprove an application if he finds:

      (a) That the proposed transaction would be detrimental to the safety and soundness of the applicant, to any institution which is a party to the transaction, or to a subsidiary or affiliate of that institution;

      (b) The applicant [,] or its executive officers, directors or principal stockholders have not established a record of sound performance, efficient management, financial responsibility and integrity so that it would be against the interest of the depositors, other customers, creditors or [shareholders] stockholders of an institution, or the public to authorize the proposed transaction;


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ê1997 Statutes of Nevada, Page 1001 (Chapter 286, AB 360)ê

 

      (c) The financial condition of the applicant or any other institution which is a participant in the proposed transaction might jeopardize the financial stability of the applicant or other institution, or prejudice the interests of depositors or other customers of the applicant or other institutions;

      (d) The consummation of the proposed transaction will tend to lessen competition substantially, unless the commissioner finds that the anticompetitive effects of the proposed transaction are clearly outweighed by the benefit of meeting the convenience and needs of the relevant market to be served; or

      (e) The applicant has not established a record of meeting the needs for credit of the communities which it or its subsidiary depository institution serves.

      Sec. 53.  NRS 666.375 is hereby amended to read as follows:

      666.375  The commissioner may not authorize or require any transaction pursuant to NRS 666.355 involving an out-of-state depository institution or an out-of-state holding company, unless he finds that:

      1.  The acquiring or merging depository institution or holding company has demonstrated an acceptable record of meeting the needs for credit of the communities which it serves; and

      2.  The acquiring or merging depository institution or holding company has a record of sound performance, adequate [capital,] stockholders’ or members’ equity, financial capacity and efficient management so the acquisition or merger will not jeopardize the financial stability of the acquired or merged depository institution and will not be detrimental to the interests of depositors, creditors or other customers of the depository institution, or to the public.

      Sec. 54.  NRS 666.400 is hereby amended to read as follows:

      666.400  1.  Subject to the provisions of NRS 666.410, 666.415 and 666.420, and after approval of the commissioner pursuant to NRS 666.315, an out-of-state depository institution or its holding company may acquire control of, acquire all or substantially all of the assets of, or merge with, a Nevada depository institution or its holding company.

      2.  An out-of-state depository institution or holding company that acquires a Nevada depository institution, or an out-of-state depository institution that is the resulting depository institution after merging with a Nevada depository institution, or an out-of-state depository institution that otherwise establishes or acquires a branch in Nevada, may , [do any of the following] in accordance with applicable state and federal law:

      (a) Continue to operate the Nevada depository institution or branch;

      (b) Convert any existing main office or branch in Nevada into a branch of the out-of-state depository institution;

      (c) Establish or acquire additional branches of the out-of-state depository institution in any state where the Nevada depository institution could have done so had it not been acquired or merged; and

      (d) Exercise any power and engage in any activity in this state to the same extent as a depository institution of the same [class] type whose home state is Nevada [.] , even if the out-of-state depository institution is not authorized to exercise those powers or engage in those activities in the out-of-state depository institution’s home state.


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ê1997 Statutes of Nevada, Page 1002 (Chapter 286, AB 360)ê

 

      3.  A branch in this state of an out-of-state depository institution shall comply with [the law] :

      (a) If the branch is not a federally chartered institution, the applicable laws relating to depository institutions of the institution’s home state, including, without limitation, provisions relating to the names of depository institutions; or [comply with federal law in the case of]

      (b) If the institution is a federally chartered institution [.] , the provisions of federal law.

      4.  If the laws of this state as a host state conflict with the laws of another state as a home state, the laws of the home state prevail , except that:

      (a) The commissioner may, by regulation, order that Nevada law prevail over that of the home state if the application of Nevada law is necessary to preserve the safe and sound operation of the branch or otherwise protect the residents of this state; and

      (b) The laws of this state regarding protection of customers, fair lending and intrastate branching apply to a branch in this state of an out-of-state depository institution to the same extent as those laws apply to a branch in this state of a depository institution chartered by this state.

      [4.] 5.  This section does not affect the authority of the commissioner to examine, supervise and regulate an out-of-state depository institution operating or seeking to operate a branch in this state or to take any action or issue any order with regard to that branch pursuant to NRS 666.325.

      Sec. 55.  NRS 666.405 is hereby amended to read as follows:

      666.405  1.  Except as otherwise provided in this section, an out-of-state depository institution without a branch in Nevada, or an out-of-state holding company without a depository institution in Nevada, may acquire a Nevada depository institution and convert the institution to a branch of the out-of-state depository institution or depository institution of the out-of-state holding company. If the Nevada depository institution is chartered after September 28, 1995, the Nevada depository institution may be so acquired only if it has been in existence for at least 5 years.

      2.  For the purposes of [this subsection, a] subsection 1:

      (a) A depository institution chartered solely for the purpose of acquiring another depository institution [is considered] shall be deemed to have been in existence for the same period as the depository institution to be acquired, [so] as long as [it] the acquiring depository institution does not open for business at any time before the acquisition.

      [2.] (b) A bank that was originally chartered as a corporation or limited-liability company other than a depository institution shall be deemed to have been in existence for the period since a certificate of amendment of its articles of incorporation or organization was filed pursuant to NRS 659.015 to reorganize the corporation or limited-liability company as a bank.

      (c) A bank that was originally chartered as a Nevada depository institution other than a bank shall be deemed to have been in existence for the period since the original articles of incorporation or organization of the depository institution were filed with the secretary of state.


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ê1997 Statutes of Nevada, Page 1003 (Chapter 286, AB 360)ê

 

      (d) If a Nevada depository institution becomes the successor in interest to the business of an out-of-state depository institution without a branch bank in this state that previously acquired a Nevada depository institution or to an out-of-state holding company without a branch bank in this state that previously acquired a Nevada depository institution, the commissioner shall include the period of existence of the original Nevada depository institution when determining the period of existence of the successor Nevada depository institution.

      3.  If the commissioner considers it necessary to protect depositors, creditors and other customers of a failing depository institution or a failing holding company which controls a depository institution, he may authorize the acquisition of the institution or company by, or its merger with, another institution or company regardless of the duration of existence of the failing depository institution or failing holding company.

      [3.] 4.  The restriction set forth in subsection 1 does not apply to an acquisition of, or merger between, affiliated depository institutions.

      Sec. 56.  NRS 666A.150 is hereby amended to read as follows:

      666A.150  1.  Except as otherwise provided in this chapter or in regulations adopted by the commissioner, a foreign bank operating at a state branch or agency has the same rights, privileges and powers as a Nevada bank at the same location, including the eligibility to exercise fiduciary powers, and is subject to the same duties, restrictions, penalties, liabilities, conditions and limitations that would apply under the laws of this state to a Nevada bank doing business at the same location, but:

      (a) A state branch may not accept [,] from citizens or residents of the United States [,] deposits other than credit balances that are incidental to or arise out of its exercise of other lawful banking powers, but it may accept deposits from persons who are [neither citizens nor residents] not citizens or residents of the United States;

      (b) A state agency may not accept any deposits from citizens or residents of the United States other than credit balances that are incidental to or arise out of its exercise of other lawful banking powers, but it may accept deposits from persons who are [neither citizens nor residents] not citizens or residents of the United States; and

      (c) A state branch or agency is not required to maintain federal deposit insurance and the commissioner may, by regulation or order, exclude or exempt uninsured state branches or agencies from, or otherwise modify the applicability to uninsured state branches or agencies of, any law or regulation of this state that is generally applicable to insured Nevada banks, or that would otherwise be applicable to an insured Nevada bank doing business at the same location, taking into account applicable limitations on the privileges of state branches and agencies and on their power to take retail deposits.

      2.  Any limitation or restriction based on the [capital stock and surplus] stockholders’ or members’ equity of a Nevada bank shall be deemed to refer, as applied to a state branch or agency, to the dollar equivalent of the [capital stock and surplus] stockholders’ or members’ equity of the foreign bank, and if the foreign bank has more than one state branch or agency in this state, the business transacted by all the state branches and agencies must be aggregated in determining compliance with the limitation.


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ê1997 Statutes of Nevada, Page 1004 (Chapter 286, AB 360)ê

 

this state, the business transacted by all the state branches and agencies must be aggregated in determining compliance with the limitation.

      3.  The commissioner may adopt such additional, or modify the applicability of any existing, standards, conditions or requirements, by regulation, as he deems necessary to ensure the safety and soundness and the protection of creditors of the operations of branches and agencies of foreign banks in this state.

      Sec. 57.  NRS 667.015 is hereby amended to read as follows:

      667.015  1.  [A] Except as otherwise provided in this section, a bank may go into voluntary liquidation [and be closed, and may surrender its charter and franchise as a corporation of this state by the affirmative votes of its stockholders owning two-thirds of its stock, or of its members holding two-thirds of the members’ interests. The vote must be taken at a meeting of the stockholders called by resolution of the board of directors, or at a meeting of the members called by the managers. Written notice of the meeting, which notice must state the purpose of the meeting, must be mailed to each stockholder or member, or in case of his death, to his legal representative or heirs at law, addressed to his last known residence 10 days before the date of the meeting.] pursuant to the provisions of NRS 78.580 or 86.491.

      2.  If the voluntary liquidation of the bank results from a vote or agreement of the stockholders or members [decide to liquidate] of the bank, a certified copy of all proceedings of the meeting at which that action is taken, verified by the oath of the president or a manager , [and the cashier,] must be transmitted to the commissioner for his approval. If the commissioner approves the liquidation, he shall issue to the bank, under his seal, a permit for that purpose. No permit may be issued by the commissioner until he is satisfied that provision has been made by the bank to satisfy and pay off all depositors and all creditors of the bank. If he is not satisfied, the commissioner shall not issue a permit, but he may take possession of the bank, its assets and business, and liquidate the bank in the manner provided by this chapter.

      3.  When the commissioner approves the voluntary liquidation of a bank [,] pursuant to subsection 2, the directors or managers of the bank shall cause to be published , in a newspaper in the city, town or county in which the bank is located, a notice that the bank is closing its affairs and going into liquidation, and that its depositors and creditors are to present their claims for payment.

      4.  When any bank is in the process of voluntary liquidation, it is subject to examination by the commissioner, and the bank shall furnish such reports, from time to time, as may be called for by the commissioner.

      5.  All unclaimed deposits and dividends remaining in the hands of the bank are subject to the provisions of this chapter.

      6.  Any bank that is in the process of voluntary liquidation may sell and transfer to any other state or national bank all or any portion of its assets of every kind upon such terms as may be agreed upon and approved by the commissioner and by [two-thirds] a majority vote of the bank’s board of directors or of its managers. A certified copy of the minutes of any meeting at which that action is taken, under the oath of the president or a manager , [and the cashier, together with] and a copy of the contract of sale and transfer [,] must be filed with the commissioner.


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ê1997 Statutes of Nevada, Page 1005 (Chapter 286, AB 360)ê

 

[and the cashier, together with] and a copy of the contract of sale and transfer [,] must be filed with the commissioner.

      7.  If a voluntary liquidation or the sale and transfer of the assets of any bank is approved by the commissioner, a certified copy of that approval under seal of the commissioner, filed in the office of the secretary of state, authorizes the cancellation of the articles of incorporation or organization of the bank, subject to its continued existence, as provided by law.

      Sec. 58.  NRS 667.095 is hereby amended to read as follows:

      667.095  All books, papers and records of a bank which has been finally liquidated must be deposited by the receiver in the office of the [county clerk of the county in which the office of the bank is located, or in such other place as in his judgment will provide for the proper safekeeping and protection of those books, papers and records. The books, papers and records must be held subject to the orders of the commissioner and the county clerk of the county in which the bank was located.] commissioner.

      Sec. 59.  NRS 667.105 is hereby amended to read as follows:

      667.105  1.  [Subject to the provisions of subsection 3, after the expiration of 10 years from the date of filing in the office of the county clerk of a final order approving the liquidation of any insolvent bank and the delivery to the county clerk or into his custody of the records of that bank, the records may be destroyed by the county clerk by burning them in the presence of the county recorder and the sheriff of the county, who shall join with the county clerk in the execution of a certificate as to the destruction of the records. The certificate must be filed by the county clerk in the court records of the liquidation of the insolvent bank.

      2.  Subject to the provisions of subsection] Except as otherwise provided in subsections 2 and 3, after the expiration of 10 years from the filing by the commissioner of a final report of liquidation of any insolvent bank, the commissioner, with the consent of the state board of finance, may destroy [, by burning,] the records of any insolvent bank held in the office of the commissioner in connection with the liquidation of the bank . [; but if]

      2.  If there are any unpaid dividends of the insolvent bank , the commissioner shall preserve the deposit ledger or other evidence of indebtedness of the bank which refers to the unpaid dividends until the dividends have been paid.

      3.  [Neither the county clerk of any county nor the] The commissioner may not destroy any of the formal records of liquidation [, nor may the commissioner destroy] or any of the records made in his office with reference to the liquidation of any insolvent bank.

      Sec. 60.  NRS 667.115 is hereby amended to read as follows:

      667.115  [When]

      1.  Except as otherwise provided in subsection 2, if any bank created under the laws of this state [, which] has been or is appointed trustee in any indenture, deed of trust or other instrument of like character, executed to secure the payment of any bonds, notes or other evidences of indebtedness, is taken over for liquidation by the commissioner, by the Federal Deposit Insurance Corporation or by any other legally constituted authority, the powers and duties of the bank as trustee cease upon the entry of an order of the district court appointing a successor trustee pursuant to a petition as provided for in NRS 667.125 to 667.185, inclusive.


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the district court appointing a successor trustee pursuant to a petition as provided for in NRS 667.125 to 667.185, inclusive.

      2.  If an indenture, deed of trust or other instrument of like character that appoints a bank as trustee pursuant to subsection 1 includes a provision which provides for the appointment of a successor trustee if the bank is taken over for liquidation, the powers and duties of the bank as trustee cease upon being taken over by the commissioner, the Federal Deposit Insurance Corporation or any other legally constituted authority and the successor trustee named, or whose selection is provided for, in the instrument immediately assumes the duties as trustee without appointment by the district court pursuant to NRS 667.125 to 667.185, inclusive.

      Sec. 61.  NRS 667.125 is hereby amended to read as follows:

      667.125  In all cases to which subsection 1 of NRS 667.115 is applicable, the district court for the county in which such indenture, deed of trust or other instrument of like character is recorded shall, upon the verified petition of any person interested in any such trust, either as trustee, beneficiary or otherwise, which interest [shall] must be set out in the petition, issue its order directing service on all interested parties, [either] personally or by the publication in [some] a newspaper published in the county, or in some adjoining county if no newspaper is published in the county where [such] the application is made, of a notice directed to all persons concerned, commanding and requiring all persons having any interest in [such] the trust, to appear in court on a day designated in the order and notice, not less than 30 days [from] after the date of the order and notice, to show cause why a new trustee should not be appointed.

      Sec. 62.  NRS 667.225 is hereby amended to read as follows:

      667.225  1.  When any bank is authorized to dissolve [,] and has taken the necessary steps to effect dissolution in accordance with the laws of this state or the laws of the United States, but before actual dissolution, a majority of the directors or managers of the national or state bank, upon authority in writing of the owners of two-thirds of its [capital] stock or two-thirds of the members’ interests and with the approval of the commissioner, may execute articles of incorporation or organization as provided in this Title for the organization of a new bank. The articles must further set forth the authority derived from the stockholders or members of the national or state bank.

      2.  Upon the filing of articles of incorporation or organization in the same manner as provided for the organization of new banks, the reorganized bank is a bank under the laws of this state. Upon reorganization, all assets, real and personal, of the dissolved national or state bank, by operation of law, vest in and become the property of the reorganized state bank, subject to all liabilities of the national or state bank existing before the reorganization.

      Sec. 63.  NRS 668.075 is hereby amended to read as follows;

      668.075  A bank or an officer or manager of a bank shall not advertise in any manner or publish any statement of the [capital] stock authorized or subscribed, unless the amount of [capital] stock actually paid up is advertised or published [therewith.] with the advertisement or statement.


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ê1997 Statutes of Nevada, Page 1007 (Chapter 286, AB 360)ê

 

      Sec. 64.  NRS 669.100 is hereby amended to read as follows:

      669.100  No trust company may be organized or operated with a [capital] stockholders’ equity of less than [$250,000,] $300,000, or in such greater amount as may be required by the commissioner . [, and paid-up surplus of $50,000, or in such greater amount as may be required by the commissioner.] The full amount of the [capital and surplus] initial stockholders’ equity must be paid in cash, exclusive of all organization expenses, before the trust company is authorized to commence business.

      Sec. 65.  NRS 669.120 is hereby amended to read as follows:

      669.120  1.  The articles of incorporation must contain:

      (a) The corporate name adopted by the corporation, which must be such as to distinguish it from any other trust company formed or incorporated in this state, or engaged in the trust business in this state.

      (b) The place where its business is to be conducted.

      (c) The purpose for which it is formed.

      (d) The amount of its [capital] stock, which must be divided into shares of the par value of not less than [$25 each, except that upon the written approval of the commissioner the capital stock may be divided into shares of the par value of not less than] $1 each. [The amount of capital stock must not be less than $250,000, and must be assessable.

      (e) The amount of its original paid-in surplus, which must not be less than 20 percent of its capital stock.

      (f)] (e) The name and place of residence of, and the number of shares subscribed by, each stockholder.

      [(g)] (f) The number of directors, which must not be less than five, and the names of the stockholders selected to act as the first board of directors, each of whom must be a bona fide subscriber for at least $1,000 of the stock of the bank, fully paid and not hypothecated.

      [(h)] (g) The location of all branch offices as approved by the commissioner.

      [(i)] (h) Such other matters, not inconsistent with law, as the incorporators [may deem proper.] deem appropriate.

      2.  The articles of incorporation may also provide for [the] :

      (a) The issuance and sale of preferred stock in such amount as is fixed by the articles or by amendments thereto [, and the] ;

      (b) The amount and number of shares [thereof, and the] of preferred stock; and

      (c) The terms and conditions [thereof] of the issuance and sale, which must not be inconsistent with the provisions of this chapter.

      Sec. 66.  NRS 669.130 is hereby amended to read as follows:

      669.130  1.  The secretary of state shall issue a certificate in the form provided by law for other corporations, and the existence of the trust company as a corporation [dates from] begins upon the issuance of the certificate by the secretary of state, from which time it has and may exercise the powers conferred by law upon corporations generally, except as those powers are limited or modified by this chapter.

      2.  The trust company shall not transact [no] business, except the election of officers [,] and the taking and approving of their official bonds, [and] the receipt of payments on account of the subscriptions of the [capital stock,] stock and such other business as is incidental to its organization, until it is authorized by the commissioner to commence the trust company business as provided in this chapter.


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ê1997 Statutes of Nevada, Page 1008 (Chapter 286, AB 360)ê

 

stock,] stock and such other business as is incidental to its organization, until it is authorized by the commissioner to commence the trust company business as provided in this chapter.

      Sec. 67.  NRS 669.160 is hereby amended to read as follows:

      669.160  1.  Within 60 days [following the filing of] after the application for a license is filed, the commissioner shall investigate the facts of the application and the other requirements of this chapter to determine:

      (a) That the persons who will serve as directors or officers are qualified by character and experience.

      (b) That the financial status of the stockholders, directors and officers is consistent with their responsibilities and duties.

      (c) That the name of the proposed company is not deceptively similar to [that] the name of another trust company licensed in this state or is not otherwise misleading.

      (d) That the [capital and surplus are] initial stockholders’ equity is not less than the required minimum.

      (e) The need for trust facilities or additional trust facilities in the community where the proposed trust company is to be located.

      (f) Such other matters concerning the proposed trust company in relation to its location as the commissioner may deem relevant.

      2.  Within 90 days after the application is filed, the commissioner shall conduct a public hearing to consider the application. At least 30 days before the hearing, the commissioner shall give written notice of the hearing to all persons doing a trust business in the community in which the proposed trust company is to be located and to such other persons, institutions or organizations as he [may see fit.] deems appropriate.

      Sec. 68.  NRS 669.190 is hereby amended to read as follows:

      669.190  1.  The initial fee to be paid for a trust company license must be in proportion to the [authorized capitalization] initial stockholders’ equity of the trust company as follows:

      (a) A trust company [having a capitalization of $250,000 and up to and including $500,000 shall] with an initial stockholders’ equity of not less than $300,000 but not more than $500,000 must pay a license fee of $500.

      (b) A trust company [having a capitalization of] with an initial stockholders’ equity of more than $500,000 [and up to and including $1,000,000 shall] but not more than $1,000,000 must pay a license fee of $750.

      (c) A trust company [having a capitalization] with an initial stockholders’ equity of more than $1,000,000 [shall] must pay a license fee of $1,000.

      2.  In addition , every trust company [shall] must pay an initial license fee of $100 for each branch office that [may be] is authorized by the commissioner.

      3.  Thereafter, every trust company [shall] must pay annually on or before April 1 of each year a license fee which must be in proportion to its [authorized or existing capitalization (capital plus paid-in surplus plus undivided profits), whichever is higher,] existing stockholders’ equity as follows:


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ê1997 Statutes of Nevada, Page 1009 (Chapter 286, AB 360)ê

 

      (a) A trust company [having a capitalization of $250,000 and up to and including $500,000 shall] with an existing stockholders’ equity of not less than $300,000 but not more than $500,000 must pay a license fee of $500.

      (b) A trust company [having a capitalization] with an existing stockholders’ equity of more than $500,000 [and up to and including $1,000,000 shall] but not more than $1,000,000 must pay a license fee of $750.

      (c) A trust company [having a capitalization] with an existing stockholders’ equity of more than $1,000,000 [shall] must pay a license fee of $1,000.

      4.  All money collected under the provisions of this section must be paid into the state general fund , and the state treasurer shall issue a receipt therefor.

      Sec. 69.  NRS 669.220 is hereby amended to read as follows:

      669.220  1.  Every trust company:

      (a) Shall keep all trust funds and investments separate from the assets of the company, and all investments made by the company as a fiduciary must be designated so that the trust or estate to which the investments belong may be clearly identified.

      (b) Holding trust funds awaiting investment or distribution may deposit or leave those funds on deposit [such funds] with a state or national bank. [Such] The funds must not be deposited or left with the same corporation depositing them or leaving them on deposit, [nor] or with a corporation or association holding or owning a majority of the [capital] stock of the trust company making or leaving the deposit, unless that corporation or association first pledges, as security for the deposit, securities eligible for investment by state banks which have a market value equal to that of the deposited funds. No security is required with respect to any portion of [such deposits which] the deposits that is insured under the provisions of any law of the United States.

      (c) Acting in any capacity under a court trust or private trust, unless the instrument creating the trust provides otherwise, may cause any securities held by it in its representative capacity to be registered in the name of a nominee or nominees of the company.

      (d) When acting as depositary or custodian for the personal representative of a court trust or private trust, unless the instrument creating the trust provides otherwise, may with the consent of the personal representative of the trust, cause any securities held by it to be registered in the name of a nominee or nominees of the company.

      2.  Every trust company is liable for any loss occasioned by the acts of its nominees with respect to securities registered under this section.

      3.  No corporation or the registrar or transfer agent of the corporation is liable for registering or causing to be registered on the books of the corporation any securities in the name of any nominee of a trust company or for transferring or causing to be transferred on the books of the corporation any securities registered by the corporation in the name of any nominee of a trust company when the transfer is made on the authorization of the nominee.


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ê1997 Statutes of Nevada, Page 1010 (Chapter 286, AB 360)ê

 

      4.  Except as otherwise provided in subsection 5, a trust company’s investments must:

      (a) Be governmental obligations or insured deposits.

      (b) Mature within 3 years after acquisition.

The aggregate market value of all investments must equal or exceed 60 percent of the company’s current [capital, surplus and undivided profits] stockholders’ equity or 60 percent of the company’s [capital and surplus when it was organized,] initial stockholders’ equity, whichever is greater.

      5.  A trust company may purchase or rent land and equipment for use in the daily activities of the company.

      Sec. 70.  Chapter 670 of NRS is hereby amended by adding thereto a new section to read as follows:

      The stockholders’ equity of a development corporation must not be less than $500,000.

      Sec. 71.  NRS 670.080 is hereby amended to read as follows:

      670.080  The articles of incorporation of the corporation must contain:

      1.  The name of the corporation, which must include the words “development corporation.”

      2.  The location of the principal office of the corporation, but the corporation may have other offices as the board of directors deems necessary [, but all offices of the corporation must be] if those offices are located in this state.

      3.  The purposes for which the corporation is founded, which must be:

      (a) To assist, encourage, develop and advance the business prosperity and economic welfare of this state;

      (b) To encourage and assist in the location of new business and industry in this state and to rehabilitate existing business and industry;

      (c) To stimulate and assist in the expansion of all kinds of business activity which will tend to promote the business development and maintain the economic stability of this state, provide maximum opportunities for employment, encourage thrift and improve the standard of living of the [citizens] residents of this state;

      (d) To cooperate and act in conjunction with other organizations, public or private, the objects of which are the promotion and advancement of industrial, commercial, agricultural and recreational developments in this state; and

      (e) To furnish money and credit to approved and deserving applicants, for the promotion, development and conduct of all kinds of business activity in this state, thereby establishing a source of credit not otherwise readily available [therefor.] for those purposes.

      4.  The names and post office addresses of the members of the first board of directors, who, unless otherwise provided by the articles of incorporation or the bylaws, shall hold office for the first year of existence of the corporation or until their successors are elected and have qualified.

      5.  Any provision which the incorporators may choose to insert for the regulation of the business and for the conduct of the affairs of the corporation and any provision creating, dividing, limiting and regulating the powers of the corporation, the directors, stockholders or any class of the stockholders, including , but not limited to , a list of the officers, and provisions governing the issuance of stock certificates to replace lost or destroyed certificates, except that no provision may be included for cumulative voting for directors.


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ê1997 Statutes of Nevada, Page 1011 (Chapter 286, AB 360)ê

 

provisions governing the issuance of stock certificates to replace lost or destroyed certificates, except that no provision may be included for cumulative voting for directors.

      6.  The amount of authorized [capital] stock and the number of shares into which it is divided, the par value of each share and the amount of [capital] stockholders’ equity with which the corporation will commence business and, if there is more than one class of stock, a description of the different classes . [; the]

      7.  The names and addresses of the preorganization subscribers of stock and the number of shares subscribed by each. [The aggregate of the subscription is the minimum amount of capital with which the corporation may commence business , which may not be less than $500,000.

      7.] 8.  Any provision consistent with the laws of this state for the regulation of the corporation.

      [8.] 9.  A recitation that the corporation is organized under the provisions of this chapter.

      Sec. 72.  NRS 670A.080 is hereby amended to read as follows:

      670A.080  The articles of incorporation of the corporation must contain:

      1.  The name of the corporation, which must include the words “corporation for economic revitalization and diversification.”

      2.  The location of the principal office of the corporation, but the corporation may have other offices as the board of directors deems necessary.

      3.  The purposes for which the corporation is founded, which must be to:

      (a) Assist, promote, encourage, develop and advance the economic welfare and diversification of the state in accordance with the state plan for economic development;

      (b) Facilitate and assist in the location of new business, commerce and industry in the state, and to rehabilitate and revitalize existing business, commerce and industry;

      (c) Stimulate and assist in the expansion of business activity which will tend to promote business development and diversification that would result in the economic stability of the state;

      (d) Provide new opportunities for employment;

      (e) Cooperate and act in conjunction with public or private organizations and governmental agencies, the objectives of which are the support and advancement of business, commercial, industrial, agricultural and recreational activity that would advance the economic welfare of the state, promote economic diversification, and effectuate any state or local plan for economic development; and

      (f) Furnish money and credit to approved and deserving applicants who would assist in achieving or carrying out any of the purposes described in this subsection.

      4.  The names and post office addresses of the members of the first board of directors, who, unless otherwise provided by the articles of incorporation or the bylaws, shall hold office for the first year of existence of the corporation or until their successors are elected and have qualified.


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ê1997 Statutes of Nevada, Page 1012 (Chapter 286, AB 360)ê

 

      5.  Any provision which the incorporators may choose to insert for the regulation of the business and for the conduct of the affairs of the corporation and any provision creating, dividing, limiting and regulating the powers of the corporation, the directors, stockholders or any class of the stockholders, including , but not limited to , a list of the officers, and provisions governing the issuance of stock certificates to replace lost or destroyed certificates, except that no provision may be included for cumulative voting for directors.

      6.  The amount of authorized [capital] stock and the number of shares into which it is divided [, the amount of capital with which the corporation will commence business] and, if there is more than one class of stock, a description of the different classes . [; the]

      7.  The names and addresses of the preorganization subscribers of stock and the number of shares subscribed by each.

      [7.] 8.  Any provision consistent with the laws of this state for the regulation of the corporation.

      [8.] 9.  A recitation that the corporation is organized under the provisions of this chapter.

      Sec. 73.  NRS 670A.200 is hereby amended to read as follows:

      670A.200  1.  Each member shall lend money to the corporation as and when called upon by it to do so, but the total amount on loan by any member at any one time must not exceed the limits described in subsections 2 and 3, to be determined as of the time the financial institution or insurer becomes a member. The amount may thereafter be readjusted annually if any change in the base of the loan limit of the member occurs.

      2.  The loan limits are, for:

      (a) Banks and stock insurance companies, 2 percent of [capital and surplus, or surplus fund, as the case may be.] the stockholders’ equity of the bank or company.

      (b) Savings and loan associations, 2 percent of the surplus account.

      (c) Mutual insurance companies, 2 percent of surplus to policyholders.

      (d) Other financial institutions and insurance companies, and Nevada corporations described in NRS 670A.190, [as] an amount established by the board of directors.

      3.  Except as otherwise provided in this subsection , the total amount on loan by any member at any one time must not exceed $250,000. Any member who has a loan limit in excess of $250,000, may elect that its total amount on loan at any one time to the corporation equal its loan limit, but in no event may it exceed $500,000.

      4.  All loan limits must be established at the thousand dollar figure nearest to the amount computed on an actual basis.

      Sec. 74.  NRS 670A.230 is hereby amended to read as follows:

      670A.230  1.  The [capital] stock of the corporation must be 20,000 shares of no par value, which must be issued for $100 per share in cash. At least 5 percent of the [capital stock] initial stockholders’ equity of the corporation must be paid into its treasury in cash before it may transact any business other than [such as relates] business relating to its organization.


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ê1997 Statutes of Nevada, Page 1013 (Chapter 286, AB 360)ê

 

      2.  At least a majority of the [capital] stock of the corporation must at all times be held by residents of the state or by persons engaged in doing business in Nevada.

      3.  A financial institution which does not become a member of a corporation established under this chapter may not acquire any shares of the [capital] stock of the corporation.

      4.  Except as otherwise provided in this subsection, any financial institution which becomes a member of a corporation established under this chapter may acquire, purchase, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of any shares of the [capital] stock of the corporation [,] and , while the owner of those shares, may exercise all the rights, powers and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of this state. The amount of the [capital] stock of the corporation which may be acquired by any member under this section may not exceed 10 percent of the loan limit of the member. The amount of [capital] stock of the corporation which any member may acquire under this section is in addition to the amount of [capital] stock in corporations which the member is otherwise authorized to acquire.

      5.  The holders of [capital] stock of the corporation do not, as such, have any preemptive or preferential right to purchase or subscribe for any part of the unissued or new issue of [capital] stock of the corporation, whether now or hereafter authorized or issued, or to purchase or subscribe for any bonds or other obligations, whether or not convertible into stock of the corporation, now or hereafter authorized or issued.

      Sec. 75.  NRS 670A.240 is hereby amended to read as follows:

      670A.240  1.  The corporation shall set apart as an earned surplus all of its net earnings in each year until the earned surplus equals [the total of the paid-in capital and paid-in surplus] 50 percent of the stockholders’ equity then outstanding. The earned surplus must be held in cash, invested in United States government bonds, or as provided in the corporation’s bylaws, and be kept and used to meet losses and contingencies of the corporation , and [,] whenever the amount of earned surplus becomes impaired, it must be built up again to the required amount in the manner provided for its original accumulation.

      2.  At no time may the total obligations of the corporation exceed ten times the amount of its [paid-in capital and surplus,] stockholders’ equity, not including therein the earned surplus, or $50 million, whichever is greater.

      3.  The corporation shall not deposit any of its money in any financial institution unless the financial institution has been designated as a depository by a vote of the majority of all of the directors of the corporation, exclusive of any director who is an officer or director of the designated depository . [so designated.] The corporation shall not receive money on deposit [. The corporation shall not] or make any loans directly or indirectly to any of its officers or to any firms in which any of its officers is a member or officer.


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ê1997 Statutes of Nevada, Page 1014 (Chapter 286, AB 360)ê

 

      Sec. 76.  NRS 78.020 is hereby amended to read as follows:

      78.020  1.  Insurance companies, mutual fire insurance companies, surety companies, express companies and railroad companies may be formed under this chapter, but such a corporation may not:

      (a) Transact any such business within this state until it has first complied with all laws concerning or affecting the right to engage in such business.

      (b) Infringe the laws of any other state or country in which it may intend to engage in business, by so incorporating under this chapter.

      2.  No trust company, savings and loan association, thrift company or corporation organized for the purpose of conducting a banking business may be organized under this chapter.

      Sec. 77.  Chapter 677 of NRS is hereby amended by adding thereto the provisions set forth as sections 78, 79 and 80 of this act.

      Sec. 78.  “Stockholders’ equity” means the capital, surplus and retained earnings of a licensee.

      Sec. 79.  The provisions of chapters 78 and 92A of NRS that are not in conflict with this chapter are hereby adopted as part of this chapter.

      Sec. 80.  A corporation authorized to engage in business pursuant to this chapter may form a bank pursuant to the provisions of subsection 2 of NRS 659.015.

      Sec. 81.  NRS 677.020 is hereby amended to read as follows:

      677.020  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 677.030 to 677.140, inclusive, and section 78 of this act have the meanings ascribed to them in those sections.

      Sec. 82.  NRS 677.150 is hereby amended to read as follows:

      677.150  [When] If authorized by the commissioner, as provided in this chapter, a corporation may be formed [by three or more persons] in accordance with the laws of this state to engage in business under this chapter.

      Sec. 83.  NRS 677.190 is hereby amended to read as follows:

      677.190  The commissioner shall not approve the application unless he ascertains to his satisfaction:

      1.  That the public convenience and advantage will be promoted by the establishment of the proposed corporation.

      2.  That the corporation is being formed for no other purpose than the legitimate objectives contemplated by this chapter.

      3.  That the proposed capital structure is adequate.

      4.  That the financial responsibility, character and general fitness of the proposed officers, directors, [shareholders] stockholders and other investors are such as to command the confidence of the community and to warrant belief that the business will be operated honestly and fairly within the purpose of this chapter, and that the proposed officers and directors have sufficient banking, industrial loan or other experience, ability and standing to afford reasonable promise of successful operation.

      5.  That the applicant has complied with all the applicable provisions of this chapter.

      Sec. 84.  NRS 677.200 is hereby amended to read as follows:

      677.200  [1.  Except in the case of a merger between an out-of-state depository institution and a Nevada depository institution or an out-of-state depository institution that otherwise establishes or acquires a branch in Nevada pursuant to the provisions of chapter 666 of NRS, all officers and a majority of the directors of a corporation formed to engage in business under this chapter must be residents of this state.


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ê1997 Statutes of Nevada, Page 1015 (Chapter 286, AB 360)ê

 

depository institution that otherwise establishes or acquires a branch in Nevada pursuant to the provisions of chapter 666 of NRS, all officers and a majority of the directors of a corporation formed to engage in business under this chapter must be residents of this state.

      2.]  The president of the corporation must have not less than 10 [years’] years of experience in a regulated financial institution in this state, or in any other state or the District of Columbia. The manager of the principal office and any branch office must have not less than 2 [years’] years of experience in a regulated financial institution in this state, or in any other state or the District of Columbia.

      Sec. 85.  NRS 677.210 is hereby amended to read as follows:

      677.210  The [paid-in capital] stockholders’ equity of any corporation formed to do business under this chapter [shall] must not be less than [$250,000. In addition, such corporation shall have as its capital surplus, 20 percent of its paid-in capital and shall have as its undivided profit 10 percent of its paid-in capital, plus additional capital of] $325,000, plus an additional $25,000 for each of its branch [office.] offices.

      Sec. 86.  NRS 677.241 is hereby amended to read as follows:

      677.241  Subject to the prior approval of the commissioner, a licensee may, by a majority vote of its board of directors:

      1.  Enter into a contract, incur an obligation and perform other acts necessary to obtain a membership or other benefit that is available to a thrift company or its customers, stockholders, conservators, receivers or liquidators pursuant to the provisions of:

      (a) The Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et seq.); or

      (b) The National Housing Act (12 U.S.C. §§ 1701 to 1743, inclusive) . [; or

      (c) A contract of insurance obtained by a licensee pursuant to paragraph (c) of subsection 1 of NRS 677.247.]

      2.  Subscribe for and acquire any stock, debentures, bonds or other types of securities of the Federal Deposit Insurance Corporation.

      Sec. 87.  NRS 677.243 is hereby amended to read as follows:

      677.243  1.  Each licensee [must] shall maintain a record that includes for each employee:

      (a) His full name;

      (b) The address of each place at which he has resided during the previous 10 years;

      (c) The name and address of each employer during the previous 10 years;

      (d) A recent photograph of the employee measuring 3 by 5 inches; and

      (e) Any alias used by the employee.

      2.  A licensee may comply with the provisions of subsection 1 by maintaining the employee identification information required pursuant to 26 C.F.R. Part 31.

      3.  The information contained in [this] the record required pursuant to this section must be provided to the commissioner upon his request , but is otherwise confidential.

      Sec. 88.  NRS 677.245 is hereby amended to read as follows:

      677.245  1.  Unless the licensee has received a written waiver from the commissioner, the total amount of money that [it] the licensee has advanced or committed for the real property that it has developed or constructed may not exceed twice the sum of its [capital, surplus, undivided profits, reserve for loans, reserve for federal insurance] stockholders’ equity and any other reserves [specified] required by the commissioner.


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ê1997 Statutes of Nevada, Page 1016 (Chapter 286, AB 360)ê

 

or committed for the real property that it has developed or constructed may not exceed twice the sum of its [capital, surplus, undivided profits, reserve for loans, reserve for federal insurance] stockholders’ equity and any other reserves [specified] required by the commissioner.

      2.  If a licensee acquires title to any real property pursuant to the provisions of subsection 1 of NRS 677.630, the deed or other document representing the transaction must be recorded [immediately.] within a reasonable time after the acquisition of that property.

      3.  An account must be established for the acquired property with a separate subsidiary ledger or other appropriate record. The amount carried in the account must be the sum of the unpaid principal balance of any loan made by the licensee that was secured by the foreclosed property plus the cost of the foreclosure less any advance payments held in the account for loans in progress at the time of acquisition, together with:

      (a) Any amount paid after acquisition for taxes on the property that accrued before the acquisition;

      (b) Assessments that are due or delinquent at the time of acquisition;

      (c) Any other costs of acquisition; and

      (d) The cost of insurance on the property.

      4.  The subsidiary ledger or other appropriate record must indicate as to each property:

      (a) The type and character of the property;

      (b) All the capitalized items of investment and their cost; and

      (c) The account number of the former loan or contract of sale.

      Sec. 89.  NRS 677.247 is hereby amended to read as follows:

      677.247  1.  [An] Except as otherwise provided in subsection 2, an applicant for an authorization to engage in the business regulated pursuant to this chapter must obtain:

      (a)The insurance of deposits provided pursuant to the provisions of the Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et seq.); or

      (b) The insurance of deposits provided pursuant to the provisions of the National Housing Act (12 U.S.C. §§ 1701 to 1743, inclusive) . [; or

      (c) A contract for the insurance of deposits which is issued by a private insurer approved by the commissioner and the commissioner of insurance pursuant to NRS 677.249. Such a contract must be approved by the commissioner and the commissioner of insurance. The issuance of a contract of insurance is not transacting insurance for the purposes of Title 57 of NRS.

      2.  An applicant must first attempt to obtain the insurance of deposits provided pursuant to the provisions of the Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et seq.) or the National Housing Act (12 U.S.C. §§ 1701 to 1743, inclusive) before obtaining a contract of insurance. The commissioner and the commissioner of insurance shall not approve a contract of insurance for an applicant unless they are satisfied that the reasons why the applicant has not obtained insurance under those provisions do not indicate that the protection intended to be afforded to the depositors by this act will be substantially impaired.

      3.  The commissioner and the commissioner of insurance shall not approve a contract of insurance unless the protection afforded thereby to the depositors is substantially equivalent to the protection afforded by the Federal Deposit Insurance Corporation to the depositors of the accounts that it insures.]

 


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ê1997 Statutes of Nevada, Page 1017 (Chapter 286, AB 360)ê

 

depositors is substantially equivalent to the protection afforded by the Federal Deposit Insurance Corporation to the depositors of the accounts that it insures.]

      2.  A person who:

      (a) Is licensed pursuant to this chapter before October 1, 1997; and

      (b) Has not obtained the insurance of deposits provided in subsection 1, may obtain a contract for the insurance of deposits that is issued by a private insurer. The contract must be approved by the commissioner and the commissioner of insurance.

      3.  The commissioner shall adopt regulations prescribing the requirements that must be complied with before a contract issued pursuant to subsection 2 will be approved by him.

      Sec. 90.  NRS 677.250 is hereby amended to read as follows:

      677.250  When authorized by the commissioner as provided in this chapter, a licensee, pursuant to a resolution of its board of directors, may establish and maintain one or more branch offices within or outside the state.

      Sec. 91.  NRS 677.270 is hereby amended to read as follows:

      677.270  1.  The commissioner shall not approve an application for a branch office until he has ascertained to his satisfaction that the facts set forth in the application are true and:

      (a) That [the] public convenience and advantage will be promoted by the establishment of the proposed branch office.

      (b) That the licensee has the [capital] stockholders’ equity required by this chapter.

      2.  The commissioner must give his approval or denial for [a branch] an application for a branch office to the licensee within 45 days [from] after the date of application to open a branch office unless the commissioner gives notice within the original 45-day period that he is extending the period for decision for a [term] period not to exceed an additional 45 days.

      Sec. 92.  NRS 677.400 is hereby amended to read as follows:

      677.400  1.  Annually, on or before May 15, unless the commissioner grants a written extension, each licensee shall file with the commissioner a report of operations of the licensed business for the preceding calendar year.

      2.  The report must give information with respect to the financial condition of the licensee [and include balance] , including, without limitation:

      (a) Balance sheets at the beginning and end of the year [,] ;

      (b) A statement of income and expenses for the period [,] ;

      (c) A reconciliation of the surplus or net worth with the balance sheets [,] ;

      (d) A schedule of the assets used and useful in the licensed business [,] ;

      (e) The size of loans [,] and an analysis of charges, including the monthly average number and amount of loans outstanding [,] ;

      (f) An analysis of delinquent accounts [,] ;

      (g) Any court actions undertaken to effect collection [, and any] ; and

      (h) Any further statistical information reasonably prescribed by the commissioner.


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ê1997 Statutes of Nevada, Page 1018 (Chapter 286, AB 360)ê

 

      3.  The report must be made under oath and be in the form prescribed by the commissioner.

      4.  If any person or affiliated group holds more than one license in [the] this state, that person or group may file a composite annual report, if a short form of report applicable to each licensed office accompanies the report.

      5.  A licensee may comply with the provisions of this section by filing with the commissioner a copy of the annual audit report filed by the licensee with the Federal Deposit Insurance Corporation pursuant to 12 U.S.C. § 1831m.

      Sec. 93.  NRS 677.420 is hereby amended to read as follows:

      677.420  1.  A licensee shall [immediately] notify the commissioner of any change in the ownership of [5] 10 percent or more of the outstanding voting stock of the licensee [.] within 3 business days after the licensee has knowledge of the change.

      2.  An application for approval must be submitted to the commissioner by a person who acquires:

      (a) At least 25 percent of a licensee’s outstanding voting stock; or

      (b) Any outstanding voting stock of a licensee if the change will result in a change in the control of the licensee.

Except as otherwise provided in subsection 4, the commissioner shall conduct an investigation in accordance with NRS 677.180. If the commissioner denies the application, he may forbid the applicant from participating in the business of the licensee.

      3.  The licensee with which the applicant is affiliated shall pay such a portion of the cost of the investigation as the commissioner requires. All money received by the commissioner pursuant to this subsection must be placed in the investigative account created by NRS 232.545.

      4.  A licensee may submit a written request to the commissioner to waive an investigation pursuant to subsection 2. The commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his employment with a financial institution.

      Sec. 94.  NRS 677.540 is hereby amended to read as follows:

      677.540  Whenever it appears to the commissioner that:

      1.  The [capital] stockholders’ equity of any licensee is [impaired;] less than its initial stockholders’ equity;

      2.  Any licensee has violated its articles of incorporation or any law of this state;

      3.  Any licensee is conducting its business in an unsafe or unauthorized manner;

      4.  Any licensee refuses to submit its books, papers and affairs to the inspection of any examiner;

      5.  Any officer of any licensee refuses to be examined upon oath touching the concerns of the licensee;

      6.  Any licensee has suspended payment of its obligations;

      7.  Any licensee is in a condition that it is unsound or unsafe for it to transact business;


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ê1997 Statutes of Nevada, Page 1019 (Chapter 286, AB 360)ê

 

      8.  Any licensee neglects or refuses to observe any order of the commissioner made pursuant to this chapter unless the enforcement of the order is restrained in a proceeding brought by the licensee;

      9.  Any licensee has accepted deposits in violation of the provisions of this chapter; or

      10.  Any fact or condition exists which, if it had existed at the time of the original application for authority to organize and establish a corporation to engage in business under this chapter , it reasonably would have warranted the [commissioner in disapproving] disapproval of the application [,] by the commissioner,

the commissioner may forthwith take possession of the property and business of the licensee and retain possession until it resumes business or its affairs are finally liquidated as provided in this chapter. The licensee, with the consent of the commissioner, may resume business upon such conditions as [he] the commissioner may prescribe.

      Sec. 95.  NRS 677.590 is hereby amended to read as follows:

      677.590  [This]

      1.  Except as otherwise provided in subsection 2, this chapter does not permit a licensee to issue thrift certificates.

      2.  A licensee who maintains a branch office located outside this state may issue thrift certificates and any other securities that are permitted to be issued by a licensee pursuant to the laws of the state in which the branch office is located.

      Sec. 96.  NRS 677.600 is hereby amended to read as follows:

      677.600  A licensee shall not deposit any of its money with any other moneyed corporation, unless that corporation has been designated as a depository by a majority vote of the directors or the executive committee, exclusive of any director who is an officer, director or trustee of the depository so designated. Such a depository must be a federally insured financial institution [licensed to do business in this state] or any Federal Reserve Bank.

      Sec. 97.  NRS 677.620 is hereby amended to read as follows:

      677.620  1.  Except as otherwise provided in subsections 2 and 3, a licensee shall not have at any time deposits in an aggregate sum in excess of 10 times the aggregate amount of its [paid-up and unimpaired capital and unimpaired surplus.] stockholders’ equity.

      2.  A licensee insured by the Federal Deposit Insurance Corporation shall comply with the limits imposed by that insurer [.] , if any.

      3.  If a licensee has operated under this chapter for 1 year or more and during its most recent fiscal year has been profitable, the commissioner may increase the ratio of deposits to [paid-up and unimpaired capital and unimpaired surplus] stockholders’ equity prescribed in subsection 1 to not more than the greatest net worth to savings ratio permitted for any savings and loan association operating in this state. The commissioner shall give his approval or denial of the application for an increased ratio to the licensee in writing with supporting reasons within 30 days after the date of the application submitted by the licensee unless the commissioner gives notice within the original 30-day period that he is extending the period for decision for a [term] period not to exceed an additional 30 days. The commissioner may, for reasonable cause, decrease the ratio [permitted] authorized under this subsection at any time, but not below the ratio prescribed in subsection 1.


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ê1997 Statutes of Nevada, Page 1020 (Chapter 286, AB 360)ê

 

may, for reasonable cause, decrease the ratio [permitted] authorized under this subsection at any time, but not below the ratio prescribed in subsection 1.

      4.  A licensee may not have total borrowings, exclusive of deposits, which exceed the larger of:

      (a) Five times its [capital and surplus;] stockholders’ equity; or

      (b) The face amount of total deposits at the time a borrowing is made.

      5.  [Except as otherwise provided in subsection 6, each licensee shall establish a liquidity reserve immediately upon beginning business, as a special account with an initial balance of $50,000. Money cannot be withdrawn from the reserve or the account put to any other use without the permission of the commissioner. Money in the reserve may be invested only in obligations of the United States, this or any other state, or federally insured financial institutions in this state or any Federal Reserve Bank. At least annually, but no later than at the end of each fiscal year of the licensee, an amount equal to 1 percent of the licensee’s deposits must be added to the reserve until its balance reaches 1.5 percent of the net deposits. Interest earned on the principal of the reserve must not be withdrawn except as permitted for other money of the reserve, but may be credited against the required addition.

      6.  If the deposits of a licensee are insured pursuant to the provisions of NRS 677.247, the licensee need not maintain a liquidity reserve.] A licensee may borrow money from a Federal Home Loan Bank. Money borrowed pursuant to this subsection shall not be deemed borrowed money for the purposes of the limitations prescribed in subsection 4. A licensee may pledge any of its assets as collateral security for money borrowed pursuant to this subsection.

      Sec. 98.  NRS 677.630 is hereby amended to read as follows:

      677.630  1.  A licensee may purchase, hold, develop and convey real property, including apartments and other buildings, for the following purposes only:

      (a) Real property conveyed to it in satisfaction of debts contracted in the course of its business.

      (b) Real property purchased at sale under judgments, decrees or mortgage foreclosures or foreclosures of or trustees’ sales under deeds of trust, or pursuant to an order of a bankruptcy court. A licensee shall not bid against its debtor at any such sale in a larger amount than is necessary to satisfy its debt and costs.

      (c) Real property necessary as premises for the transaction of its business. A licensee shall not invest directly or indirectly an amount exceeding one-third of its [paid-up capital and surplus] stockholders’ equity in the lot and building in which the business of the company is carried on, furniture and fixtures, and vaults, necessary and proper to carry on its business.

      (d) Real property purchased or held for the purpose of development. An investment for this purpose must not exceed the market value of the property as evidenced by an appraisal prepared by a member of the American Institute of Real Estate Appraisers, the National Association of Review Appraisers and Mortgage Underwriters, the Society of Real Estate Appraisers or the Independent Fee Appraisers Society [, or by] or an appraiser approved by the commissioner.


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ê1997 Statutes of Nevada, Page 1021 (Chapter 286, AB 360)ê

 

Appraisers or the Independent Fee Appraisers Society [, or by] or an appraiser approved by the commissioner. Within 120 days after the investment is made:

             (1) The licensee shall provide the commissioner with a certified copy of one or more appraisal reports and a report from a title insurer which shows , for not less than the immediately preceding 3 years, the chain of title and the amount of consideration for which the title was transferred, if that information is available . [, for at least 3 years.]

             (2) The commissioner may require a statement from the licensee disclosing whether any director, officer or employee of the licensee has, or has had within the [last] immediately preceding 3 years, any direct or indirect interest in the property. For the purposes of this subparagraph, “interest” includes ownership of stock in a corporation which has an interest in the property.

If the total amount to be invested in real property for residential development, excluding any real property which is mortgaged to the licensee as security for money owing to the licensee, exceeds the [licensee’s capital accounts,] stockholders’ equity of the licensee, the investment may not be made without the written approval of the commissioner. Any person who fails to make a disclosure required by this section is guilty of a misdemeanor.

      2.  No real estate acquired pursuant to paragraph (a) or (b) of subsection 1 may be held for a longer period than 5 years unless it has been improved by the licensee and is producing a fair income based upon the appraised value.

      Sec. 99.  NRS 677.650 is hereby amended to read as follows:

      677.650  1.  Except as otherwise provided in subsection 2, a licensee shall not directly or indirectly make any loan to, or purchase a contract or chose in action from:

      (a) A person who is an officer, director or holder of record or beneficiary of 10 percent or more of the shares of the licensee ; [.]

      (b) A person in which an officer, director or holder of record or beneficiary of 10 percent or more of the shares of the licensee directly or indirectly is financially interested [.] ; or

      (c) A person who acquired the contract directly or indirectly or through intervening assignments from a person described in paragraph (a) or (b) [.] , unless the licensee has been authorized by the commissioner to make that loan or purchase that contract or chose in action from that person.

      2.  Loans may be made to an officer, director or [shareholder] stockholder of the licensee, upon collateral of his deposits with the licensee, of not more than 90 percent of the amount of his deposits, at the same rates of interest and under the same terms as loans secured by deposits are offered to members of the general public.

      3.  Any officer, director or [shareholder] stockholder of a licensee who [directly or indirectly] :

      (a)Knowingly and intentionally makes or procures or participates in making or procuring , directly or indirectly, a loan or contract in violation of this section [or knowingly approves such] ; or

      (b) Knowingly approves a loan or contract in violation of this section, is personally liable for any loss resulting to the licensee from the loan or contract, in addition to any other penalties provided by law.


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ê1997 Statutes of Nevada, Page 1022 (Chapter 286, AB 360)ê

 

is personally liable for any loss resulting to the licensee from the loan or contract, in addition to any other penalties provided by law.

      Sec. 100.  NRS 677.660 is hereby amended to read as follows:

      677.660  1.  A person shall not advertise, print, display, publish, distribute or broadcast or cause or permit to be advertised, printed, displayed, published, distributed or broadcast, in any manner, any statement or representation with regard to the rates, terms or conditions for making or negotiating loans, or with regard to deposits, which is false, misleading or deceptive.

      2.  Except as otherwise provided in this subsection, a licensee shall not use any advertising or make any representations which indicate, imply or might lead a person to believe that it is a bank, a thrift company or a savings bank, unless it is insured by the Federal Deposit Insurance Corporation. The provisions of this subsection do not apply to a thrift company that does not accept money for deposit.

      3.  A licensee whose deposits are insured by the Federal Deposit Insurance Corporation [or a private insurer] shall include that information in its advertising relating to deposits.

      Sec. 101.  NRS 677.730 is hereby amended to read as follows:

      677.730  [1.] A licensee may lend any amount of money:

      [(a)] 1.  At any rate of interest;

      [(b)] 2.  Subject to the imposition of any charge in any amount; and

      [(c)] 3.  Upon any schedule of repayment,

to which the parties may agree.

      [2.  Secured loans or obligations of $50,000 or more other than those secured by deposits with the licensee must be secured by collateral having a market value of at least 115 percent of the amount due on the loans or obligations. On loans secured by deposits with the licensee, the net amount advanced must not exceed 90 percent of the amount of the deposits used as collateral.]

      Sec. 102.  NRS 677.760 is hereby amended to read as follows:

      677.760  1. A licensee shall not lend in the aggregate more than [5] 10 percent of its [capital and surplus not available for dividends upon:

      1.] stockholders’ equity upon:

      (a) The security of the stock of any one corporation, which stock , except as otherwise provided in subsection 2, may not exceed 10 percent of the outstanding stock of that corporation . [except that, if the licensee has obtained other security from the borrower which satisfies the provisions of subsection 2 of NRS 677.730, the licensee may accept as security any amount of the stock of that corporation.

      2.] (b) The security of the bonds of any one obligor except:

      [(a)] (1) Bonds of the United States or for the payment of which the credit of the United States is pledged;

      [(b)] (2) Bonds of the State of Nevada, or for the payment of which the credit of the State of Nevada is pledged; and

      [(c)] (3) Bonds which are general obligations of any county, city, metropolitan water district, school district or irrigation district of the State of Nevada.


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ê1997 Statutes of Nevada, Page 1023 (Chapter 286, AB 360)ê

 

      2.  The stock of a corporation upon the security of which a licensee loans money pursuant to paragraph (a) of subsection 1 may exceed 10 percent of the outstanding stock of that corporation if:

      (a) The licensee has secured collateral, other than deposits with the licensee, which has a market value of not less than 115 percent of the amount loaned; or

      (b) The loans are secured by deposits with the licensee and the amount of the money loaned does not exceed 90 percent of the deposits used as collateral.

      Sec. 103.  NRS 677.770 is hereby amended to read as follows:

      677.770  [1.  Except for a licensee that is insured by the Federal Deposit Insurance Corporation, a licensee shall not make an unsecured loan of more than one-tenth of 1 percent of its total assets or make loans that are in the aggregate more than 5 percent of its total assets.

      2.]  Secured loans or obligations of any one person as primary obligor made or held by a licensee may not, in any event, exceed in the aggregate 25 percent of the [capital and surplus] stockholders’ equity of the licensee. Loans secured by deposits with the licensee must not be included in applying this limitation.

      Sec. 104.  NRS 677.800 is hereby amended to read as follows:

      677.800  Any person and the [several] members, officers, directors, agents and employees thereof who [shall] knowingly and intentionally violate or participate in the violation of any provision of this chapter [is] are guilty of a misdemeanor, unless a greater penalty is provided in this chapter.

      Sec. 104.5.  Section 1 of Assembly Bill No. 8 of this session is hereby amended to read as follows:

       Section 1.  NRS 661.145 is hereby amended to read as follows:

       661.145  1.  No person is eligible to serve as a director or manager of any bank, organized or existing under the laws of this state, unless he [is] :

       (a) Is a bona fide owner of stock of the bank or its holding company [, or has] ;

       (b) Holds stock of the bank or its holding company in a revocable trust; or

       (c) Has a member’s interest in the bank.

       2.  The stock or interest owned or held pursuant to subsection 1 must have a total fair market value of at least $1,000. A determination of the value of the stock or interest must be based on its value on the date it was purchased or on its value on the date the owner or holder of the stock or interest became a director, whichever is greater. The stock or the member’s contribution must be fully paid and not pledged.

       [2.] 3.  For the purposes of this section, “holding company” has the meaning ascribed to it in NRS 666.005.

      Sec. 105.  1.  NRS 661.046, 661.055, 661.095, 661.155, 661.175, 661.215, 661.225, 662.012 and 663.035 are hereby repealed.

      2.  NRS 677.249 is hereby repealed.


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ê1997 Statutes of Nevada, Page 1024 (Chapter 286, AB 360)ê

 

      Sec. 106.  1.  This section and sections 1 to 85, inclusive, 87, 88 and 90 to 104.5, inclusive, of this act, and subsection 1 of section 105 of this act become effective upon passage and approval.

      2.  Section 89 of this act becomes effective:

      (a) Upon passage and approval for the purposes of adopting the regulations required pursuant to that section; and

      (b) On October 1, 1997, for all other purposes.

      3.  Section 86 of this act and subsection 2 of section 105 of this act become effective on October 1, 1997.

________

 

CHAPTER 287, AB 38

Assembly Bill No. 38–Assemblyman Bache

CHAPTER 287

AN ACT relating to employment practices; authorizing an employee or person referred to an employer by a labor organization to submit written material for inclusion in his record of employment; prohibiting the maintenance of a secret record of employment; and providing other matters properly relating thereto.

 

[Approved July 5, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 613.075 is hereby amended to read as follows:

      613.075  1.  Any person or governmental entity who employs and has under his direction and control any person for wages or under a contract of hire, or any labor organization referring a person to an employer for employment, shall, upon the request of that employee or person referred:

      (a) Give him a reasonable opportunity, during the usual hours of business, to inspect any records kept by that employer or labor organization containing information used:

             (1) By the employer or labor organization to determine the qualifications of that employee and any disciplinary action taken against him, including termination from that employment; or

             (2) By the labor organization with respect to that person’s position on its list concerning past, present and future referrals for employment; and

      (b) [Subject to the provisions of subsection 5, furnish] Furnish him with a copy of those records.

The records to be made available do not include confidential reports from previous employers or investigative agencies , other confidential investigative files concerning the employee or person referred or information concerning the investigation, arrest or conviction of that person for a violation of any law.

      2.  An employer or labor organization shall allow an employee or person referred to submit a reasonable written explanation in direct response to any written entry in the records of employment regarding the employee or person. Any such written explanation must be reasonable in length, in a format prescribed by the employer and maintained by the employer or labor organization in the records of employment.


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ê1997 Statutes of Nevada, Page 1025 (Chapter 287, AB 38)ê

 

format prescribed by the employer and maintained by the employer or labor organization in the records of employment.

      3.  An employer or labor organization shall not maintain a secret record of employment regarding an employee or person referred.

      4.  Upon termination of employment, [the] an employer shall allow [the] an employee to inspect [those] his records of employment within 60 days after his termination of employment and [, subject to the provisions of subsection 5, ] shall, if requested by that former employee within that period, furnish him with a copy of those records.

      [3.  The]

      5.  An employer or labor organization may only charge [that] an employee or person referred an amount equal to the actual cost of providing access to and copies of [those records.

      4.] his records of employment.

      6.  The employee or person referred shall, if he contends that any information contained in the records is inaccurate or incomplete, notify his employer or the labor organization in writing of his contention. If the employer or labor organization finds that the contention of that employee or person is correct, it shall change the information accordingly.

      [5.] 7.  No copies may be furnished to an employee or former employee under this section unless he has been or was employed for more than 60 days.

      Sec. 2.  This act becomes effective upon passage and approval.

________

 

CHAPTER 288, AB 54

Assembly Bill No. 54–Committee on Natural Resources, Agriculture, and Mining

CHAPTER 288

AN ACT relating to wildlife; revising the provisions governing the requirements for the issuance of a hunting license and the suspension or revocation of certain licenses, permits and privileges by the board of wildlife commissioners and the division of wildlife of the state department of conservation and natural resources; and providing other matters properly relating thereto.

 

[Approved July 5, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 501.1812 is hereby amended to read as follows:

      501.1812  As used in NRS 501.1812 to 501.1818, inclusive, unless the context otherwise requires:

      1.  “Permit” does not include a permit issued by the division pursuant to NRS 502.390 authorizing the development or maintenance of an artificial or man-made body of water.

      2.  “Wildlife [violation”] conviction” means a conviction obtained in any court of competent jurisdiction in this state , including, without limitation, a conviction obtained upon a plea of nolo contendere or upon a forfeiture of bail not vacated in any such court, for a violation of [a] :

 


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ê1997 Statutes of Nevada, Page 1026 (Chapter 288, AB 54)ê

 

conviction obtained upon a plea of nolo contendere or upon a forfeiture of bail not vacated in any such court, for a violation of [a] :

      (a) A provision of this Title or any regulation adopted pursuant to this Title [.] other than a provision of NRS 502.370, 502.390, 503.185, 503.310 or 504.300 to 504.390, inclusive; or

      (b) A provision of the Lacey Act Amendments of 1981 (Pub. L. No. 97-79, Nov. 16, 1981), if the violation of that provision is based on a violation of a law or regulation of this state.

      Sec. 2.  NRS 501.1814 is hereby amended to read as follows:

      501.1814  1.  The commission shall establish and the division shall administer and enforce a system of assessing demerit points for wildlife [violations against any person convicted of a wildlife violation.] convictions. The system must be uniform in its operation.

      2.  Pursuant to the schedule of demerit points established by regulation [by] of the commission for each wildlife [violation] conviction occurring within this state affecting any holder of a hunting, fishing or trapping license , [or] permit or privilege issued pursuant to this Title, the division shall assess demerit points for the 60-month period preceding a person’s most recent wildlife [violation.] conviction. Sixty months after the date of the [violation,] conviction, the demerit points for that [violation] conviction must be deleted from the total demerit points accumulated by that person. The date of the violation shall be deemed the date on which accumulated demerit points must be assessed. If a conviction of two or more wildlife violations committed at a single event is obtained, demerit points must be assessed for the offense having the greater number of demerit points.

      Sec. 3.  NRS 501.1816 is hereby amended to read as follows:

      501.1816  1.  If a person accumulates 6 or more demerit points, but less than 12, the division shall notify him of that fact by certified mail. If, after the division mails the notice, the person presents proof to the division that he has, after his most recent wildlife [violation,] conviction, successfully completed a course of instruction in the responsibilities of hunters approved by the division, the division shall deduct 4 demerit points from his record. A person may attend a course of instruction in the responsibilities of hunters only once in 60 months for the purpose of reducing his demerit points.

      2.  If a person accumulates 12 or more demerit points [or commits a wildlife violation punishable as a gross misdemeanor] before completing a course of instruction pursuant to subsection 1, the division shall suspend or revoke any hunting, fishing or trapping license , [or] permit or privilege issued to him pursuant to this Title.

      3.  Not later than [30] 60 days after the division determines that a person [accumulates] has accumulated 12 demerit points, the division shall notify the person by certified mail that his privileges [are subject to suspension.] will be suspended or revoked. Except as otherwise provided in subsection 4, the division shall suspend [the license or permit] or revoke those privileges 30 days after it mails the notice.

      4.  Any person who receives the notice required by subsection 3 may submit to the division a written request for a hearing before the commission [no] not later than 30 days after the receipt of the notice.


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ê1997 Statutes of Nevada, Page 1027 (Chapter 288, AB 54)ê

 

[no] not later than 30 days after the receipt of the notice. If a written request for a hearing is received by the division:

      (a) The suspension or revocation of the license , permit or privilege is stayed until a determination is made by the commission after the hearing.

      (b) The hearing must be held within 60 days after the request is received.

      5.  The periods of suspension or revocation imposed pursuant to this section must run concurrently. No license , [or] permit or privilege may be suspended or revoked pursuant to this section for more than 3 years.

      6.  If the division suspends or revokes a license , [or] permit or privilege pursuant to this section, the period of suspension or revocation begins 30 days after notification pursuant to subsection 3 or a determination is made by the commission pursuant to subsection 4. After a person’s license , [or] permit or privilege is suspended [,] or revoked pursuant to this section, all demerit points accumulated by that person must be canceled.

      Sec. 4.  NRS 501.1817 is hereby amended to read as follows:

      501.1817  Any person whose license , [or] permit or privilege has been suspended or revoked by the division pursuant to NRS 501.1816 is entitled to judicial review of the decision in the manner provided by chapter 233B of NRS.

      Sec. 5.  NRS 501.388 is hereby amended to read as follows:

      501.388  1.  The commission may [:] , in addition to any suspension, revocation or other penalty imposed pursuant to any other provision of this Title:

      (a) Revoke any license of any person who is convicted of a violation of NRS 503.050, [in addition to the penalty imposed,] and may refuse to issue any new license to the convicted person for any period not to exceed 5 years after the date of the conviction; and

      (b) Revoke any license of any person who is convicted of unlawfully killing or possessing a bighorn sheep, mountain goat, elk, deer, pronghorn antelope, mountain lion or black bear without a valid tag, [in addition to the penalty imposed,] and may:

             (1) Refuse to issue any new license to the convicted person for any period not to exceed 3 years; and

             (2) Revoke that person’s privilege to apply for any big game tag for a period not to exceed 10 years.

      2.  The court in which the conviction is had shall require the immediate surrender of all such licenses and shall forward them to the commission.

      Sec. 6.  NRS 502.330 is hereby amended to read as follows:

      502.330  1.  No hunting license may be obtained by any person born after January 1, 1960, unless he presents to the division, or one of its authorized licensing agents : [, either:]

      (a) A certificate of successful completion of a course of instruction in the responsibilities of hunters as provided by NRS 502.340; [or]

      (b) An equivalent certificate of completion of a course in the responsibilities of hunters provided by [any] a state or an agency of a Canadian province for the management of wildlife [.] ; or

      (c) A hunting license issued to him in a previous year by the division, a state or an agency of a Canadian province, which bears a number or other unique mark evidencing successful completion of a course of instruction in the responsibilities of hunters.


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1028 (Chapter 288, AB 54)ê

 

unique mark evidencing successful completion of a course of instruction in the responsibilities of hunters.

      2.  Any person who has been convicted of violating NRS 503.165 or 503.175 may not obtain a hunting license until he has successfully completed a course in the responsibilities of hunters conducted pursuant to NRS 502.340.

      Sec. 7.  The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

      Sec. 8.  This act becomes effective upon passage and approval.

________

 

CHAPTER 289, AB 61

Assembly Bill No. 61–Committee on Government Affairs

CHAPTER 289

AN ACT relating to state employees; extending the period of time that the department must maintain recordings of oral examinations in certain circumstances; authorizing the director of the department of personnel to allow a greater percentage of employees from the same department to serve on a panel which conducts an oral examination in certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 5, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 284.210 is hereby amended to read as follows:

      284.210  1.  All competitive examinations for positions in the classified service must:

      (a) Relate to those matters which fairly test the capacity and fitness of the persons examined to [discharge efficiently] perform in an efficient manner the duties of the class in which employment is sought.

      (b) Be open to all applicants who meet the reasonable standards or requirements fixed by the director with regard to experience, character, age, education, physical condition and any other factors relating to the ability of the applicants to perform the duties of the position with reasonable efficiency.

      2.  An examination may consist of:

      (a) An evaluation of the applicant’s training and experience;

      (b) A written examination;

      (c) An oral examination;

      (d) An evaluation of the applicant’s performance, such as the ability to operate successfully certain equipment; or

      (e) Any combination of paragraphs (a) to (d), inclusive.

      3.  An examination may be conducted by using a center for assessment as defined by regulations adopted by the director. An employee of the department for which an examination is being held may not serve on the panel or score the examination.

      4.  An oral examination given pursuant to this section must be:


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1029 (Chapter 289, AB 61)ê

 

      (a) [Conducted] Except as otherwise provided in subsection 5, conducted by a panel of which no more than one-third of the members are employed by the department in which a vacancy exists for the position for which the examination is given.

      (b) Recorded and maintained by the department for [at least 30 days] :

             (1) Not less than 2 years after the date of the examination ; or

             (2) Until the final disposition of a charge of discrimination,

whichever is longer, and must be available to [interested persons.] an affected person upon request.

      5.  Employees of the department in which a vacancy exists may comprise more than one-third of the members of the panel if:

      (a) A member who is not such an employee is unable to serve on the panel because of illness or an emergency;

      (b) The department has more than 1,000 employees; and

      (c) The department has two or more divisions that administer separate and diverse programs and the employees of the department on the panel are not employed by the same division.

      Sec. 2.  This act becomes effective on July 1, 1997.

________

 

CHAPTER 290, AB 115

Assembly Bill No. 115–Committee on Labor and Management

CHAPTER 290

AN ACT relating to the division of industrial relations of the department of business and industry; repealing the requirement that the division must have a seal to authenticate its proceedings and orders; and providing other matters properly relating thereto.

 

[Approved July 5, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 618.275 is hereby repealed.

________

 


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1030ê

 

CHAPTER 291, AB 240

Assembly Bill No. 240–Assemblymen Ohrenschall, Evans, Arberry, Price, Freeman, Mortenson, Parks, Segerblom, Neighbors, Herrera, Williams, Lambert, Collins, Koivisto, Bache, Lee and Manendo

CHAPTER 291

AN ACT relating to crimes; prohibiting the release of a person on parole or probation if he was convicted of committing a certain offense related to defrauding a person who is 65 years of age or older until the convicted person has paid a certain amount of restitution to the victim of the offense; and providing other matters properly relating thereto.

 

[Approved July 5, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 213 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in subsection 2, the board shall not release on parole a prisoner whose conduct during the commission of the crime for which he was imprisoned satisfies the requirements for imposing an additional term of imprisonment pursuant to paragraph (f) or (g) of subsection 1 of NRS 193.167 or subsection 2 of NRS 193.167, until the prisoner has paid to the victim of the offense at least 80 percent of the amount of restitution set by a court pursuant to NRS 176.033.

      2.  The board shall not refuse to release a prisoner on parole as provided in subsection 1 unless the board determines that the prisoner has willfully failed to make restitution to the victim of the crime and the prisoner has the ability to make restitution.

      Sec. 2.  NRS 213.107 is hereby amended to read as follows:

      213.107  As used in NRS 213.107 to 213.157, inclusive, and section 1 of this act, unless the context otherwise requires:

      1.  “Board” means the state board of parole commissioners.

      2.  “Chief” means the chief parole and probation officer.

      3.  “Division” means the division of parole and probation of the department of motor vehicles and public safety.

      4.  “Residential confinement” means the confinement of a person convicted of a crime to his place of residence under the terms and conditions established by the board.

      5.  “Sex offender” means any person who has been or is convicted of a sexual offense.

      6.  “Sexual offense” means:

      (a) A violation of NRS 200.366, subsection [3] 4 of NRS 200.400, NRS 200.710, 200.720, subsection 2 of NRS 200.730, NRS 201.180, paragraph (a) or subparagraph (2) of paragraph (b) of subsection 1 of NRS 201.195, NRS 201.230 or 201.450;

      (b) An attempt to commit any offense listed in paragraph (a); or

      (c) An act of murder in the first or second degree, kidnaping in the first or second degree, false imprisonment, burglary or invasion of the home if the act is determined to be sexually motivated at a hearing conducted pursuant to NRS 175.547.


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1031 (Chapter 291, AB 240)ê

 

the act is determined to be sexually motivated at a hearing conducted pursuant to NRS 175.547.

      7.  “Standards” means the objective standards for granting or revoking parole or probation which are adopted by the board or the chief.

      Sec. 3.  Chapter 176 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in subsection 2, the court shall not grant probation to a person whose conduct during the commission of the crime for which he was convicted satisfies the requirements for imposing an additional term of imprisonment pursuant to paragraph (f) or (g) of subsection 1 of NRS 193.167 or subsection 2 of NRS 193.167, until the convicted person has paid to the victim of the offense at least 80 percent of the amount of restitution set by the court pursuant to NRS 176.033.

      2.  The court shall not deny probation to a person as provided in subsection 1 unless the court determines that the person has willfully failed to make restitution to the victim of the crime and the person has the ability to make restitution.

      Sec. 4.  The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1997.

      Sec. 5.  The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

________

 

CHAPTER 292, AB 369

Assembly Bill No. 369–Committee on Natural Resources, Agriculture, and Mining

CHAPTER 292

AN ACT relating to state lands; revising provisions governing the duties and activities of the state land use planning agency and the land use planning advisory council; and providing other matters properly relating thereto.

 

[Approved July 5, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 321.720 is hereby amended to read as follows:

      321.720  The administrator shall develop and make available to cities and counties information useful to land use planning, including:

      1.  Preparation and continuing revision of a statewide inventory of the land and natural resources of the state;

      2.  Compilation and continuing revision of data, on a statewide basis, related to population densities and trends, economic characteristics and projections, environmental conditions and trends, and directions and extent of urban and rural growth;

      3.  Projections of the nature and quantity of land needed and suitable for:

      (a) Recreation and esthetic appreciation;


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1032 (Chapter 292, AB 369)ê

 

      (b) Conservation and preservation of natural resources, agriculture, mineral development [,] and forestry;

      (c) Industry and commerce, including the development, generation and transmission of energy;

      (d) Transportation;

      (e) Urban development, including the revitalization of existing communities, the development of new towns, and the economic diversification of existing communities which possess a narrow economic base;

      (f) Rural development, taking into consideration future demands for and limitations upon products of the land; and

      (g) Health, educational, and other state and local governmental services;

      4.  Preparation and continuing revision of an inventory of environmental, geological and physical conditions, including types of soil, which influence the desirability of various uses of land;

      5.  Preparation and continuing revision of an inventory of state, local government and private needs and priorities concerning the acquisition and use of federal lands within the state;

      6.  Preparation and continuing revision of an inventory of public and private institutional and financial resources available for land use planning and management within the state and of state and local programs and activities which have a land use impact of more than local concern;

      7.  Provision, where appropriate, of technical assistance and training programs for state and local agency personnel concerned with the development and implementation of state and local land use programs;

      8.  Coordination and exchange of land use planning information and data among state agencies and local governments, with the Federal Government, among the several states and interstate agencies, and with members of the public, including conducting of public hearings, preparation of reports [,] and soliciting of comments on reports concerning information useful to land use planning;

      9.  Coordination of planning for state and local acquisition and use of federal lands within the state, except that in the case of a plan which utilizes both federal and private lands the governing body of the area where private lands are to be utilized has final authority to approve the proposal; [and]

      10.  Provision of assistance to counties to develop programs to increase the responsibility of local governments for the management of lands in the State of Nevada that are under federal management; and

      11.  Consideration of, and consultation with, the relevant states on the interstate aspects of land use issues of more than local concern.

      Sec. 2.  NRS 321.7355 is hereby amended to read as follows:

      321.7355  1.  The state land use planning agency shall prepare, in cooperation with appropriate state agencies and local governments throughout the state, plans or policy statements concerning the acquisition and use of lands in the State of Nevada [which] that are under federal management.

      2.  The state land use planning agency shall, in preparing the plans and policy statements, identify lands which are suitable for acquisition for:

      (a) Commercial, industrial or residential development;


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1033 (Chapter 292, AB 369)ê

 

      (b) The expansion of the property tax base, including the potential for an increase in revenue by the lease and sale of those lands; or

      (c) Accommodating increases in the population of this state.

The plans or policy statements must not include matters concerning zoning or the division of land and must be consistent with local plans and regulations concerning the use of private property.

      3.  The state land use planning agency shall encourage public comment upon the various matters treated in a proposed plan or policy statement throughout its preparation and shall submit its work on a plan or statement of policy periodically for review and comment by the land use planning advisory council, the advisory board on natural resources and any committees of the legislature or subcommittees of the legislative commission [which] that deal with matters concerning the public lands.

      4.  Whenever the state land use planning agency prepares plans or policy statements pursuant to subsection 1 and submits those plans or policy statements to the governor, legislature or an agency of the Federal Government, the state land use planning agency shall include with each plan or policy statement the comments and recommendations of:

      (a) The land use planning advisory council;

      (b) The advisory board on natural resources; and

      (c) Any committees of the legislature or subcommittees of the legislative commission that deal with matters concerning the public lands.

      5.  A plan or statement of policy must be approved by the governing bodies of the county and cities affected by it, and by the governor, before it is put into effect.

      Sec. 3.  NRS 321.750 is hereby amended to read as follows:

      321.750  The land use planning advisory council shall [advise] :

      1.  Advise the administrator on the development and distribution to cities and counties of information useful to land use planning.

      2.  Advise the state land use planning agency regarding the development of plans and policy statements pursuant to subsection 1 of NRS 321.7355.

      Sec. 4.  This act becomes effective on July 1, 1997.

________

 


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1034ê

 

CHAPTER 293, AB 400

Assembly Bill No. 400–Assemblymen Buckley, Goldwater, Ohrenschall, Krenzer, Manendo, Bache, Perkins, Koivisto, Braunlin, Lee, Parks, Lambert, Freeman, Anderson, Price, Mortenson, Herrera, Amodei, Humke, Close, Giunchigliani, Arberry, Cegavske, Sandoval, Collins, Chowning, Ernaut, Williams, Neighbors, Tiffany, de Braga, Hickey, Evans and Nolan

CHAPTER 293

AN ACT relating to mobile home parks; requiring the refund with interest of certain deposits held by landlords of mobile home parks; and providing other matters properly relating thereto.

 

[Approved July 5, 1997]

 

      Whereas, Section 12 of chapter 689, Statutes of Nevada 1991, at page 2273, which amended NRS 118B.060, required any deposit collected by a landlord of a mobile home park as a sum to compensate for a tenant default to be refunded with interest not more than 5 years after the landlord received the deposit; and

      Whereas, In a letter to the Administrator of the Manufactured Housing Division dated September 20, 1991, the Office of the Attorney General opined that section 12 of chapter 689, Statutes of Nevada 1991, at page 2273, did not apply to any such deposit received by a landlord before the effective date of that section which was on October 1, 1991; and

      Whereas, The members of the 69th session of the Nevada Legislature wish to clarify that section 12 of chapter 689, Statutes of Nevada 1991, at page 2273, was intended to apply to all such deposits, including those received before October 1, 1991; now, therefore,

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  1.  Any deposit that was received by a landlord of a mobile home park before October 1, 1991, as a sum to compensate for a tenant default which is still held by the landlord on the effective date of this act must be refunded to the tenant pursuant to subsection 4 of NRS 118B.060 within 30 days after the effective date of this act.

      2.  Except as otherwise provided in this subsection, the refunded amount must include interest calculated pursuant to subsection 4 of NRS 118B.060 for the entire period during which the deposit was held by the landlord. Interest paid pursuant to this section need not be calculated for or applied to the portion of the period during which the deposit was held, if any, before October 1, 1991.

      Sec. 2.  This act becomes effective upon passage and approval.

________

 


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1035ê

 

CHAPTER 294, SB 330

Senate Bill No. 330–Senator Neal

CHAPTER 294

AN ACT relating to civil actions; providing that community action agencies and their direct successors in interest are political subdivisions of this state for purposes of determining civil liability; and providing other matters properly relating thereto.

 

[Approved July 5, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 41.0305 is hereby amended to read as follows:

      41.0305  As used in NRS 41.031 to 41.039, inclusive, the term “political subdivision” includes an organization that was officially designated as a community action agency pursuant to 42 U.S.C. § 2790 before that section was repealed and is included in the definition of an “eligible entity” pursuant to 42 U.S.C. § 9902, the Nevada rural housing authority, an airport authority created by special act of the legislature, a regional transportation commission and a fire protection district, irrigation district, school district and other special district [which] that performs a governmental function, even though it does not exercise general governmental powers.

      Sec. 2.  The amendatory provisions of this act apply to a civil action filed with a court on or after October 1, 1997.

________

 

CHAPTER 295, SB 382

Senate Bill No. 382–Committee on Commerce and Labor

CHAPTER 295

AN ACT relating to professions; specifying the duties of the state board of professional engineers and land surveyors; requiring the board to adopt regulations governing the election of its officers; revising the provisions governing the administration of the examinations for licensure as a professional engineer or professional land surveyor; revising the provisions governing the licensing of land surveyors who are licensed in a foreign country; eliminating the authority of the board to certify a land surveyor intern who is certified in another state or territory of the United States; providing a penalty; and providing other matters properly relating thereto.

 

[Approved July 5, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 623.330 is hereby amended to read as follows:

      623.330  1.  The following persons are exempt from the provisions of this chapter:

      (a) A person engaging in architectural work as an employee of a registered architect or residential designer, if the work does not include responsible charge of design or supervision, or a consultant retained by a registered architect or residential designer.


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1036 (Chapter 295, SB 382)ê

 

      (b) A person hired by the Federal Government to practice architecture on federal land.

      (c) A professional engineer [registered] licensed pursuant to the provisions of chapter 625 of NRS who designs buildings as permitted by chapter 625 of NRS.

      (d) A contractor licensed pursuant to the provisions of chapter 624 of NRS who provides his own drawings for his own construction activities.

      (e) Any person who prepares plans, drawings or specifications for:

             (1) Buildings for his own private residential use; or

             (2) Farm or ranch buildings used as such.

      (f) A person engaging in work related to interior design as an employee of a registered interior designer, if the work does not include responsible charge of interior design or supervision, or a consultant retained by a registered interior designer.

      (g) Any person who prepares drawings of the layout of materials or furnishings used in interior design or provides assistance in the selection of materials or furnishings used in interior design, including, without limitation:

             (1) Decorative accessories;

             (2) Wallpaper, wallcoverings or paint;

             (3) Linoleum, tile, carpeting or floor coverings;

             (4) Draperies, blinds or window coverings;

             (5) Lighting which is not part of a structure;

             (6) Plumbing fixtures which are not a part of a structure; and

             (7) Furniture or equipment,

if the preparation or implementation of those drawings or the installation of those materials or furnishings is not regulated by any building code or other law, ordinance, rule or regulation governing the alteration or construction of a structure.

      2.  Any person exempted by the provisions of this section is not thereby absolved from any civil or criminal liability that might otherwise accrue.

      3.  The exemptions provided by this section do not entitle any person who does not hold a certificate of registration to hold himself out to the public or advertise himself as an architect, registered interior designer or residential designer.

      Sec. 2.  NRS 623.350 is hereby amended to read as follows:

      623.350  1.  This chapter does not prevent firms, partnerships, corporations or associations of architects, registered interior designers, professional engineers and landscape architects, or any combination thereof, from practicing as such, if each director, stockholder and officer of the corporation and each partner or associate of the firm, partnership or association is registered or licensed pursuant to the applicable provisions of this chapter, chapter 623A or chapter 625 of NRS.

      2.  Every office or place of business of any firm, partnership, corporation or association engaged in the practice of architecture must have an architect who is a resident of this state and holds a certificate of registration issued pursuant to this chapter regularly working in the office or place of business and directly responsible for the administration of the architectural work conducted in the office or place of business.


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1037 (Chapter 295, SB 382)ê

 

      3.  The provisions of subsection 2 do not apply to firms, partnerships, corporations or associations engaged in the practice of architecture at offices established for construction administration.

      Sec. 3.  NRS 623A.070 is hereby amended to read as follows:

      623A.070  1.  This chapter does not apply to:

      (a) Owners of property who make plans, specifications or drawings for their own property.

      (b) Any person engaged in the practice of architecture who is registered pursuant to chapter 623 of NRS.

      (c) A contractor licensed pursuant to chapter 624 of NRS who provides his own drawings for his own construction activities.

      (d) Any person who is [registered] licensed as a civil engineer pursuant to chapter 625 of NRS.

      (e) Any person who designs, manufactures or sells irrigation equipment and provides instructions pertaining to the mechanical erection and installation of the equipment but does not install the equipment.

      2.  Any person exempted by the provisions of this section is not thereby absolved from any civil or criminal liability that might otherwise accrue.

      3.  The exemptions provided by this section do not entitle any person who does not hold a certificate to practice landscape architecture to hold himself out to the public or advertise himself as a landscape architect.

      Sec. 4.  NRS 624.020 is hereby amended to read as follows:

      624.020  1.  For the purpose of this chapter , “contractor” is synonymous with “builder.”

      2.  Within the meaning of this chapter, a contractor is any person, except a registered architect or a [registered] licensed professional engineer, acting solely in his professional capacity, who in any capacity other than as the employee of another with wages as the sole compensation, undertakes to, or offers to undertake to, or purports to have the capacity to undertake to, or submits a bid to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith. Evidence of the securing of any permit from a governmental agency or the employment of any person on a construction project [shall] must be accepted by the board or any court of this state as prima facie evidence that the person securing [such] that permit or employing any person on a construction project is acting in the capacity of a contractor [under] pursuant to the provisions of this chapter.

      3.  A contractor within the meaning of this chapter includes subcontractor or specialty contractor, but does not include anyone who merely furnishes materials or supplies without fabricating them into, or consuming them in the performance of, the work of a contractor.

      4.  A contractor within the meaning of this chapter includes a construction manager who performs management and counseling services on a construction project for a professional fee.


…………………………………………………………………………………………………………………

ê1997 Statutes of Nevada, Page 1038 (Chapter 295, SB 382)ê

 

      Sec. 5.  Chapter 625 of NRS is hereby amended by adding thereto the provisions set forth as sections 6 to 11, inclusive, of this act.

      Sec. 6.  “Intern” means an engineer intern or a land surveyor intern.

      Sec. 7.  “Licensee” means a professional engineer or professional land surveyor licensed pursuant to the provisions of this chapter.

      Sec. 8.  The board shall:

      1.  Issue licenses to qualified and competent persons as professional engineers and professional land surveyors and certify qualified and competent persons as engineer interns and land surveyor interns.

      2.  Carry out the provisions of this chapter.

      3.  Upon request, provide information concerning the regulation of the practice of professional engineering and land surveying.

      Sec. 9.  1.  The board shall hold examinations of applicants for licenses at least once each year in localities determined by the number of applications received.

      2.  The examinations must be written and administered in English.

      Sec. 10.  1.  A person who:

      (a)Is 21 years of age or older; and

      (b)Is a citizen of the United States or is lawfully entitled to remain and work in the United States,

may apply to the board, in accordance with the provisions of this chapter and any regulations adopted by the board, for licensure as a professional engineer.

      2.  An applicant for licensure as a professional engineer must:

      (a)Be of good character and reputation; and

      (b) Pass the examination on the:

             (1) Fundamentals of engineering or receive a waiver of that requirement; and

             (2) Principles and practices of engineering,

pursuant to section 11 of this act.

      3.  An applicant for licensure as a professional engineer may not take the examination on the principles and practices of engineering, unless he:

      (a) Is a graduate of an engineering curriculum of 4 years or more that is approved by the board and has a record of 4 years or more of active experience in engineering that is satisfactory to the board and indicates that he is competent to be placed in responsible charge of engineering work; or

      (b)Has a record of 10 years or more of active experience in engineering work that is satisfactory to the board and indicates that he is competent to be placed in responsible charge of engineering work.

      4.  For the purposes of determining whether an applicant for licensure as a professional engineer has an adequate record of active experience pursuant to paragraph (a) of subsection 3:

      (a) Graduation from a college or university in a field other than engineering is equivalent to 2 years of active experience.

      (b) Two of the 4 years of active experience must have been completed by working under the direct supervision of a person who is a professional engineer, unless that requirement is waived by the board.


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ê1997 Statutes of Nevada, Page 1039 (Chapter 295, SB 382)ê

 

      (c) The execution, as a contractor, of work designed by a professional engineer or the supervision of the construction of that work as a foreman or superintendent, is not equivalent to active experience in engineering.

      5.  For the purposes of determining whether an applicant for licensure as a professional engineer has an adequate record of active experience pursuant to paragraph (b) of subsection 3:

      (a)Satisfactory completion of 1 year of courses in engineering that are approved by the board, by a person who has not graduated from an engineering curriculum, is equivalent to 1 year of active experience in engineering.

      (b)Graduation from a college or university in a field other than engineering is equivalent to 2 years of active experience.

      (c) Two of the 10 years of active experience must have been completed by working under the direct supervision of a person who is a professional engineer unless that requirement is waived by the board.

      (d) The execution, as a contractor, of work designed by a professional engineer or the supervision of the construction of that work as a foreman or superintendent, is not equivalent to active experience in engineering.

      (e) Not more than 4 years of active experience may be satisfied by the completion of educational course work.

      6.  A person who is not working in the field of engineering when he applies for licensure is eligible for licensure as a professional engineer if he complies with the requirements for licensure prescribed in this chapter.

      Sec. 11.  1.  The examination for licensure as a professional engineer must consist of:

      (a) An 8-hour examination on the fundamentals of engineering that must cover the subject matter of a general education or training in engineering. If the applicant for licensure as a professional engineer has 15 years or more of experience in engineering, the examination on the fundamentals of engineering may be waived. For the purposes of determining the years of experience of an applicant for licensure as a professional engineer pursuant to this paragraph, the board shall consider graduation from an engineering curriculum that is approved by the board to be equivalent to 4 years of experience.

      (b)An 8-hour examination on the principles and practices of engineering that must cover the discipline of engineering in which the applicant is applying for licensure.

      2.  An applicant for licensure as a professional engineer must pass the examination on the fundamentals of engineering or receive a waiver of that requirement before he may take the examination on the principles and practices of engineering.

      3.  When determining the content of the examinations on the fundamentals of engineering and the principles and practices of engineering, the board shall consider the recognized disciplines of engineering and may conform the examination to the particular qualifications of the applicant.

      4.  The board may require additional examinations for licensure in specialized areas of practice within one or more recognized disciplines of engineering.


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ê1997 Statutes of Nevada, Page 1040 (Chapter 295, SB 382)ê

 

      5.  The board may administer or authorize an accredited college or university that offers a program in engineering approved by the board to administer the examination on the fundamentals of engineering to persons who are not applicants for licensure as professional engineers in this state.

      6.  The board may prescribe or limit the use of notes, texts and reference materials by applicants who are taking the examinations.

      7.  The board may require the examinations or any portion of the examinations set forth in this section to be completed:

      (a) In writing, with a pen or pencil of a type that has been approved by the board;

      (b) With a computer that has been provided or approved by the board; or

      (c) Orally, in the manner prescribed by the board.

      Sec. 12.  NRS 625.005 is hereby amended to read as follows:

      625.005  The purpose of this chapter is to safeguard life, health and property and to promote the public welfare by providing for the [registration] licensure of qualified and competent professional engineers and professional land surveyors.

      Sec. 13.  NRS 625.008 is hereby amended to read as follows:

      625.008  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 625.010 to 625.090, inclusive, and sections 6 and 7 of this act have the meanings ascribed to them in those sections.

      Sec. 14.  NRS 625.030 is hereby amended to read as follows:

      625.030  [“Engineering] “Engineer intern” means [an applicant for registration as a professional engineer.] a person who has satisfied the requirements of NRS 625.275 and subsection 1 of NRS 625.390.

      Sec. 15.  NRS 625.035 is hereby amended to read as follows:

      625.035  [“Land-surveying] “Land surveyor intern” means [an applicant for registration as a land surveyor.] a person who has satisfied the requirements of NRS 625.275 and subsection 1 of NRS 625.390.

      Sec. 16.  NRS 625.060 is hereby amended to read as follows:

      625.060  “Professional engineer” means a person who by reason of his professional education and practical experience is granted a [certificate of registration] license by the board to practice professional engineering.

      Sec. 17.  NRS 625.070 is hereby amended to read as follows:

      625.070  “Professional land surveyor” means a person who by reason of his professional education and practical experience is granted a [certificate of registration] license by the board to practice land surveying in this state.

      Sec. 18.  NRS 625.100 is hereby amended to read as follows:

      625.100  1.  The governor shall appoint seven persons, six of whom must be engaged in the practice or teaching of professional engineering in any of its disciplines except military engineering, and one of whom must be engaged in the practice or teaching of land surveying. The members must be citizens of the United States and residents of this state, and [they] constitute the state board of professional engineers and land surveyors.

      2.  All appointments made must be from the current roster of [registered] professional engineers and professional land surveyors as issued by the board and on file in the office of the secretary of state. Insofar as practicable, membership on the board must be distributed proportionately among the recognized disciplines of the profession.


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ê1997 Statutes of Nevada, Page 1041 (Chapter 295, SB 382)ê

 

among the recognized disciplines of the profession. One of the members who is a professional land surveyor must not be [registered] licensed as a professional engineer.

      3.  Within 30 days after his appointment, a member shall take and subscribe to the oath of office as prescribed by the laws of Nevada and shall file the oath with the secretary of state.

      Sec. 19.  NRS 625.110 is hereby amended to read as follows:

      625.110  1.  The board shall elect [one of its members as chairman and one of its members as vice chairman, each of whom holds office for 2 years and until a successor is elected and qualified.] officers from its members and, by regulation, establish the:

      (a) Offices to which members may be elected;

      (b) Title and term for each office; and

      (c) Procedure for electing members to each office.

      2.  At any meeting, four members constitute a quorum.

      3.  Each member is entitled to receive:

      (a) A salary of not more than $80 per day, as fixed by the board, while engaged in the business of the board; and

      (b) A per diem allowance and travel expenses at a rate fixed by the board, while engaged in the business of the board. The rate must not exceed the rate provided for state officers and employees generally.

      4.  While engaged in the business of the board, each employee of the board is entitled to receive a per diem allowance and travel expenses at a rate fixed by the board. The rate must not exceed the rate provided for state officers and employees generally.

      5.  [Expenses of the board and expenses and] The salaries of members of the board and employees of the board must be paid from the fees received by the board pursuant to the provisions of this chapter, and no part of those salaries [and expenses] may be paid out of the state general fund.

      6.  The board shall appoint an executive director who serves at the pleasure of the board and is entitled to receive such compensation as may be fixed by the board.

      Sec. 20.  NRS 625.140 is hereby amended to read as follows:

      625.140  The board may adopt all bylaws and regulations, including the adoption [and promulgation] of a code of conduct which is binding on any person [registered] licensed in accordance with the provisions of this chapter, not inconsistent with the constitution and laws of this state, which are necessary for the proper performance of the duties of the board, the regulation of the proceedings before it and the maintenance of a high standard of integrity and dignity in the profession.

      Sec. 21.  NRS 625.150 is hereby amended to read as follows:

      625.150  1.  The board shall deposit in banks and savings and loan associations in the State of Nevada all money collected by it.

      2.  Except as otherwise provided in subsection 6, all money collected by the board must be used to meet the expenses of conducting examinations, [the expenses of issuance of certificates and the expenses of] issuing licenses and conducting the office of the board.

      3.  The expenses [,] of the board, including the per diem allowances and travel expenses of the members and employees of the board while engaged in the business of the board and the expenses of conducting examinations, must be paid from the current receipts.


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ê1997 Statutes of Nevada, Page 1042 (Chapter 295, SB 382)ê

 

in the business of the board and the expenses of conducting examinations, must be paid from the current receipts. No portion thereof may be paid from the state treasury.

      4.  Any balance remaining in excess of the expenses incurred may be retained by the board and used in defraying the future expenses thereof.

      5.  The board may delegate to a hearing officer or panel its authority to take any disciplinary action pursuant to this chapter, impose and collect fines and penalties therefor and deposit the money therefrom in banks or savings and loan associations in this state.

      6.  If a hearing officer or panel is not authorized to take disciplinary action pursuant to subsection 5 and the board deposits the money collected from the imposition of fines with the state treasurer for credit to the state general fund, it may present a claim to the state board of examiners for recommendation to the interim finance committee if money is needed to pay attorney’s fees or the costs of an investigation, or both.

      7.  The board shall consider and take appropriate action concerning a written notification received by the board pursuant to section 2 or 3 of [this act.] Assembly Bill No. 328 of this session.

      Sec. 22.  NRS 625.170 is hereby amended to read as follows:

      625.170  1.  The executive director of the board shall , [prepare] once each year [,] or at intervals [as] established by the board, prepare a roster [showing the names, last known addresses and disciplines of engineering of all registered professional engineers and the names and last known addresses of all land surveyors, engineering interns and land-surveying interns. Copies of the] that shows, for each:

      (a) Professional engineer, his name, the city in which he lives, his license number and the discipline of engineering in which he specializes.

      (b) Professional land surveyor, his name, the city in which he lives and his license number.

      (c) Engineer intern or land surveyor intern, his name and license number.

      2.  The roster must be:

      [1.  Mailed to each person so registered.

      2.](a) Made available to each licensee in a manner prescribed by the board.

      (b) Placed on file with the secretary of state and county and city clerks.

      [3.](c) Distributed or sold to the public.

      Sec. 23.  NRS 625.175 is hereby amended to read as follows:

      625.175  The board may by regulation define the scope of each discipline of professional engineering for which [registration] licensure is required pursuant to this chapter.

      Sec. 24.  NRS 625.261 is hereby amended to read as follows:

      625.261  1.  Except as otherwise provided in this section:

      (a) A firm, partnership, corporation or other person engaged in or offering to engage in the practice of engineering or land surveying in this state shall employ full time at least one professional engineer or professional land surveyor , respectively, at each place of business where [land-surveying] such work is or will be performed; and


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ê1997 Statutes of Nevada, Page 1043 (Chapter 295, SB 382)ê

 

      (b) All engineering or land-surveying work done at a place of business must be performed under a professional engineer or professional land surveyor , respectively, who has been placed in responsible charge of the work and who is employed full time at that particular place of business.

      2.  If the only professional engineer or professional land surveyor employed full time at a place of business where engineering or land-surveying work is performed ceases to be employed at that place of business, during the 30 days next following his departure:

      (a) The place of business is not required to employ full time a professional engineer or professional land surveyor; and

      (b) The professional engineer or professional land surveyor placed in responsible charge of engineering or land-surveying work performed at the place of business is not required to be employed full time at that place of business.

      3.  [This section does] Except as otherwise provided in subsection 4:

      (a) A firm, partnership, corporation or other person who performs or offers to perform engineering services in a certain discipline at a particular place of business shall employ full time at that place of business a professional engineer licensed in that discipline.

      (b) Each person who holds himself out as practicing a certain discipline of engineering must be licensed in that discipline or employ full time a professional engineer licensed in that discipline.

      4.  The provisions of this section do not apply to [firms, partnerships, corporations or other persons practicing] a firm, partnership, corporation or other person who:

      (a) Practices professional engineering for his benefit and does not engage in the practice of professional engineering or offer professional engineering services to other persons; or

      (b) Is engaged in the practice of professional engineering or land surveying in offices established for limited or temporary purposes, including offices established for the convenience of field survey crews [,] or offices established for inspecting construction.

      Sec. 25.  NRS 625.270 is hereby amended to read as follows:

      625.270  1.  A person who:

      (a) Is 21 years of age or older; and

      (b) Is a citizen of the United States or is lawfully entitled to remain and work in the United States,

may apply to the board , [for examination,] in accordance with the provisions of this chapter and any regulations adopted by the board, for [registration] licensure as a professional land surveyor.

      2.  [A person is not eligible for registration as a professional land surveyor if he is not of good character and reputation.

      3.]  An applicant for [registration] licensure as a professional land surveyor must:

      (a) Be of good character and reputation; and

      (b) Pass the examination on the:


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ê1997 Statutes of Nevada, Page 1044 (Chapter 295, SB 382)ê

 

             (1) Fundamentals of land surveying or receive a waiver of that requirement; and

             (2) Principles and practices of land surveying,

pursuant to NRS 625.280.

      3.  An applicant for licensure as a professional land surveyor may not take the examination on the principles and practices of land surveying, unless he:

      (a) Is a graduate of a land-surveying curriculum of 4 years or more that is approved by the board and [have] has a record of [an additional] 4 years or more of active experience in land surveying that is satisfactory to the board and indicates that he is competent to be placed in responsible charge of land-surveying work; or

      (b) [Have] Has a record of 10 years or more of active experience in land-surveying work that is satisfactory to the board and indicates that he is competent to be placed in responsible charge of land-surveying work.

      4.  For the purposes of determining whether an applicant for licensure as a professional land surveyor has an adequate record of active experience pursuant to paragraph (a) of subsection 3:

      (a) Graduation from a college or university in a field other than land surveying is equivalent to 2 years of active experience.

      (b) Two of the 4 years of active experience must have been completed by working under the direct supervision of a person who is a professional land surveyor, unless that requirement is waived by the board.

      (c) The execution, as a contractor, of work designed by a professional land surveyor or the supervision of the construction of that work, as a foreman or superintendent, is not equivalent to active experience in land surveying.

      5.  For the purposes of [evaluating an applicant’s qualifications for registration, the board shall consider:] determining whether an applicant for licensure as a professional land surveyor has an adequate record of active experience pursuant to paragraph (b) of subsection 3:

      (a) Satisfactory completion of 1 year of courses in land surveying that are approved by the board [to be] , by a person who has not graduated from a land-surveying curriculum, is equivalent to 1 year of active experience in land surveying . [; and]

      (b) Graduation from a college or university [curriculum] in a field other than land surveying [to be] is equivalent to 2 years of active experience.

      [5.  An applicant may not receive credit for]

      (c) Two of the 10 years of active experience must have been completed by working under the direct supervision of a person who is a professional land surveyor unless that requirement is waived by the board.

      (d) The execution, as a contractor, of work designed by a professional land surveyor or the supervision of the construction of that work as a foreman or superintendent, is not equivalent to active experience in land surveying.

      (e) Not more than 4 years of active experience [because of educational qualifications described in subsection 4.] may be satisfied by the completion of educational course work.


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ê1997 Statutes of Nevada, Page 1045 (Chapter 295, SB 382)ê

 

      6.  A person who is not working in the field of land surveying when he applies for licensure is eligible for licensure as a professional land surveyor if he complies with the requirements for licensure prescribed in this chapter.

      Sec. 26.  NRS 625.275 is hereby amended to read as follows:

      625.275  [Except as provided in NRS 625.305, to]

      1.  To be eligible for certification as a [land-surveying] land surveyor intern, an applicant must:

      [1.](a) Be a graduate of or in his final year of an [approved] land-surveying or engineering curriculum of 4 years [of more,] or more that has been approved by the board [as satisfactory,] and have [successfully passed part 1 of a written examination designated by the board; or

      2.]passed the examination on the fundamentals of land surveying provided for in NRS 625.280; or

      (b) Have had 4 years or more of experience in land-surveying work that is satisfactory to the board [,] and have [successfully passed part 1 of] passed the examination on the fundamentals of land surveying provided for in NRS 625.280.

      2.  To be eligible for certification as an engineer intern, an applicant must:

      (a) Be a graduate of or in his final year of an engineering curriculum of 4 years or more that has been approved by the board and have passed the examination on the fundamentals of engineering provided for in section 11 of this act; or

      (b) Have had 4 years or more of experience in engineering work that is satisfactory to the board and have passed the examination on the fundamentals of engineering provided for in section 11 of this act.

      Sec. 27.  NRS 625.280 is hereby amended to read as follows:

      625.280  1.  The [written] examination for [registration] licensure as a professional land surveyor must consist of [a 2-day test, four 4-hour periods, divided into two parts:

      (a) Part 1 must be an 8-hour written] :

      (a) An 8-hour examination on the fundamentals of land surveying [and] that must cover the subject matter of a general land-surveying education or training. If the applicant [is a graduate of a curriculum of land surveying that is approved by the board or has 8] for licensure as a professional land surveyor has 15 years or more of experience in land surveying, [part 1] the examination on the fundamentals of land surveying may be waived. For the purposes of determining the years of experience of an applicant for licensure as a professional land surveyor pursuant to this paragraph, the board shall consider graduation from a land-surveying curriculum that is approved by the board to be equivalent to 4 years of experience.

      (b) [Part 2 must be an 8-hour written] An 8-hour examination on the principles and [practice] practices of land surveying.

      2.  An applicant for licensure as a professional land surveyor must pass [part 1 of] the examination on the fundamentals of land surveying or receive a waiver of [part 1 before taking part 2 of] that requirement before he may take the examination [.] on the principles and practices of land surveying.

      3.  The board may administer or authorize an accredited college or university that offers a program in land surveying approved by the board to administer the examination on the fundamentals of land surveying to persons who are not applicants for licensure as professional land surveyors in this state.


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ê1997 Statutes of Nevada, Page 1046 (Chapter 295, SB 382)ê

 

administer the examination on the fundamentals of land surveying to persons who are not applicants for licensure as professional land surveyors in this state.

      4.  The board may prescribe or limit the use of notes, texts and reference materials [, but shall allow each applicant to use any standard table of mathematical or physical data of his own selection within the prescribed or limited categories.

      4.  Oral examinations must be given in the manner prescribed by the board.] by applicants who are taking the examinations.

      5.  The board may require the examinations or any portion of the examinations set forth in this section to be completed:

      (a) In writing, with a pen or pencil of a type that has been approved by the board;

      (b) With a computer that has been provided or approved by the board; or

      (c) Orally, in the manner prescribed by the board.

      Sec. 28.  NRS 625.290 is hereby amended to read as follows:

      625.290  To qualify for [registration] licensure as a professional engineer or professional land surveyor or for certification as [a land-surveying] an engineer intern or land surveyor intern, an applicant must receive a grade of not less than 70 on [his examination.] each examination required by the board.

      Sec. 29.  NRS 625.295 is hereby amended to read as follows:

      625.295  1.  The board shall issue a [certificate of registration] license to practice professional engineering or land surveying to any applicant who, in the opinion of the board, has satisfactorily met all the requirements of this chapter concerning professional engineers or professional land surveyors [.

      2.  Certificates of registration] , respectively.

      2.  A license to practice professional engineering or land surveying must:

      (a) Show the full name of the [registrant.

      (b) Have a registration number.] licensee.

      (b) Include the number of the license.

      (c) Be signed by the chairman and executive director under the seal of the board.

      (d) Authorize the practice of professional engineering in the discipline for which the applicant has qualified or the practice of land surveying [.] , respectively.

      3.  The issuance of a [certificate of registration] license to practice professional engineering or land surveying by the board is evidence that the person named thereon is entitled to all the rights and privileges of a professional engineer or professional land surveyor , respectively, while the [certificate] license remains unrevoked or unexpired.

      Sec. 30.  NRS 625.300 is hereby amended to read as follows:

      625.300  1.  The board may issue a license to practice professional engineering or land surveying to an applicant, upon presentation of evidence [of registration] that he is licensed to practice professional engineering or land surveying, respectively, and in good standing [from] in a state [or territory maintaining] , territory, possession of the United States or country that maintains standards of engineering or land-surveying [registration] licensure, equivalent to those in Nevada, if [such person,] the applicant, in the judgment of the board, has the necessary qualifications [under] pursuant to the provisions of this chapter.


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ê1997 Statutes of Nevada, Page 1047 (Chapter 295, SB 382)ê

 

that maintains standards of engineering or land-surveying [registration] licensure, equivalent to those in Nevada, if [such person,] the applicant, in the judgment of the board, has the necessary qualifications [under] pursuant to the provisions of this chapter.

      2.  The board [, in its discretion,] may require an applicant for licensure as a professional engineer or professional land surveyor pursuant to subsection 1 to pass a written or oral examination [.] conducted by not less than three professional engineers or professional land surveyors, respectively.

      Sec. 31.  NRS 625.325 is hereby amended to read as follows:

      625.325  1.  Each professional engineer and professional land surveyor [must, upon registration,] shall obtain a [seal] stamp of the design authorized by the board, bearing his name and [registration] the number of his license and the legend “Professional Engineer” followed by the discipline for which he is qualified or the legend “Professional Land Surveyor [

      2.  A rubber stamp which produces in ink the same design and information required by subsection 1 may be used in lieu of the prescribed seal.

      3.],” respectively.

      2.  A professional land surveyor shall not use the legend “Professional Engineer.”

      Sec. 32.  NRS 625.330 is hereby amended to read as follows:

      625.330  1.  A professional land surveyor may practice land surveying and prepare:

      (a) Maps, plats, reports and descriptions; and

      (b) Grading and drainage plans for residential subdivisions containing four lots or less,

or other documentary evidence in connection therewith.

      2.  [Every map, plat, report, drawing, description, grading and drainage plan or other document issued by a professional land surveyor must be signed by him, endorsed with his certificate number, dated and stamped with his seal or rubber stamp, whenever the map, plat, report, drawing, description, grading and drainage plan or other document is filed as a public record, filed with any public authority or delivered as a formal or final document.

      3.]  It is unlawful for a professional land surveyor to sign [, stamp or seal] or stamp any map, plat, report, description, grading and drainage plan or other document relating to land surveying which was not prepared by him or for which he did not have [the] responsible charge of the work.

      3.  It is unlawful for a professional engineer to sign or stamp any plans, specifications or reports that were not prepared by him or for which he did not have responsible charge of the work.

      4.  It is unlawful for [anyone to stamp or seal] any person to impress any documents with the [seal] stamp of a professional engineer or professional land surveyor after the [certificate] license of the professional engineer or professional land surveyor named on the [seal] stamp has expired or has been suspended or revoked, unless his [certificate] license has been renewed or reissued.


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ê1997 Statutes of Nevada, Page 1048 (Chapter 295, SB 382)ê

 

      5.  It is unlawful for any person to impress any documents with the stamp of a professional engineer or professional land surveyor after the professional engineer or professional land surveyor has retired from the practice of professional engineering or land surveying.

      6.  The board shall, by regulation, prescribe additional requirements relating to the signing and stamping of documents produced by a professional engineer or a professional land surveyor.

      7.  A person who violates any of the provisions of this section is guilty of a gross misdemeanor.

      Sec. 33.  NRS 625.335 is hereby amended to read as follows:

      625.335  1.  A surveyor may enter public or private land, a water course or a body of water to:

      (a) Investigate, recover, establish, reestablish, rehabilitate, perpetuate or use evidence of a boundary location.

      (b) Locate, relocate, use, install or replace a survey monument.

      (c) Perform land or control surveying.

      2.  Before entering private land pursuant to subsection 1, a surveyor [shall] must provide written notice to the owner or occupant of the land of the proposed date and approximate time of entry upon the land and a statement of the purpose for entry upon the land. The notice must include the name, [registration] number of the license and business affiliation of the surveyor. The surveyor shall obtain the approval of the owner or occupant of the land before entry. An owner shall not unreasonably withhold approval of such entry on his land. The provisions of this subsection are not applicable to an entry made pursuant to NRS 37.050.

      3.  [Nothing in] The provisions of this section [may be construed to] do not relieve a surveyor from any civil liability for any damage caused by his entry pursuant to subsection 1.

      4.  As used in this section, “surveyor” includes:

      (a) A professional land surveyor or his designee.

      (b) A surveyor employed by the Federal Government or an agency of the Federal Government, the State of Nevada, a political subdivision of the state or an agency of the state.

      Sec. 34.  NRS 625.350 is hereby amended to read as follows:

      625.350  1.  A record of survey must be a map legibly drawn in waterproof ink on tracing cloth or produced by the use of other materials of a permanent nature generally used for [such] that purpose in the engineering profession. The size of each sheet must be 24 by 32 inches. A marginal line must be drawn completely around each sheet, leaving an entirely blank margin of 1 inch at the top, bottom and right edges, and 2 inches at the left edge along the 24-inch dimension.

      2.  A record of survey must show:

      (a) All monuments found, set, reset or replaced, describing their kind, size and location and giving other data relating thereto.

      (b) Bearing or witness monuments, the basis of bearings, bearing and length of lines and the scale of the map.

      (c) The name and legal description of the tract in which the survey is located and any ties to adjoining tracts.


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ê1997 Statutes of Nevada, Page 1049 (Chapter 295, SB 382)ê

 

      (d) The tie to [Coast and Geodetic Survey Control System,] the control network maintained by the National Geodetic Survey of the National Oceanic and Atmospheric Administration, if points of the [system] network are established in the area in which the survey is made.

      (e) A memorandum of oaths, if any.

      (f) The signature and validated [seal] stamp of the surveyor who performed the survey.

      (g) A certificate prepared by the surveyor indicating:

             (1) The person or entity for whom the survey was performed;

             (2) The general vicinity of the property being surveyed;

             (3) The date the survey was completed;

             (4) Whether monuments were found or set and, if so, their character and location as shown; and

             (5) Any other pertinent information.

      (h) Any other data necessary for the [intelligent] interpretation of the various items and locations of the points, lines and areas shown.

      3.  If the land surveyed is described in terms of area, the record of the survey must show the area of the land surveyed in the following manner:

      (a) In acres, calculated to the nearest one-hundredth of an acre, if the area is 2 acres or more; or

      (b) In square feet , if the area is less than 2 acres.

      4.  As used in this section, “control network” means a system of coordinates that defines latitude, longitude, height, scale, gravity and orientation throughout the United States.

      Sec. 35.  NRS 625.380 is hereby amended to read as follows:

      625.380  1.  Monuments set must be sufficient in number and durability and efficiently placed so as not to be readily disturbed to [assure,] ensure, together with monuments already existing, the perpetuation of facile reestablishment of any point or line of the survey.

      2.  Any monument set by a professional land surveyor to mark or reference a point on a property or boundary line must be permanently and visibly marked or tagged with the [registration] number of the license of the professional land surveyor setting it, each number to be preceded by the letters “P.L.S.”

      Sec. 36.  NRS 625.385 is hereby amended to read as follows:

      625.385  1.  The board shall certify as an [engineering] engineer intern or [land-surveying] land surveyor intern any person qualified pursuant to the provisions of this chapter.

      2.  A person certified as an engineer intern or land surveyor intern pursuant to subsection 1 may practice only engineering or land surveying , respectively, as a subordinate. Any work performed by an [engineering] engineer intern or [land-surveying] land surveyor intern may, if deemed of a satisfactory nature by the board, be applied toward the requirements for experience set forth in NRS [625.180 and 625.270.] 625.270 and section 10 of this act for certification as an engineer intern or land surveyor intern, respectively.


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ê1997 Statutes of Nevada, Page 1050 (Chapter 295, SB 382)ê

 

      Sec. 37.  NRS 625.390 is hereby amended to read as follows:

      625.390  1.  An applicant for [registration] licensure as a professional engineer or professional land surveyor or for certification as an [engineering] engineer intern or [land-surveying] land surveyor intern must:

      (a) Complete a form furnished and prescribed by the board;

      (b) Answer all questions on the form under oath; [and]

      (c) Provide a detailed summary of his technical training and education [.] ; and

      (d) Pay the fee established by the board.

      2.  Unless the requirement is waived by the board, an applicant for [registration] licensure must provide the names of not less than four references who have knowledge of the background, character and technical competence of the applicant. None of the persons named as references may be members of the board. If the applicant is:

      (a) Applying for [registration as a land-surveying intern, at least three of the persons named as references must be professional land surveyors registered in this or any other state.

      (b) Applying for registration] licensure as a professional engineer, the persons named as references must be professional engineers [registered] licensed in this state or any other state, three of whom must be [registered] licensed in the same discipline of engineering for which the applicant is applying for [registration.

      (c)]licensure.

      (b) Applying for [registration] licensure as a professional land surveyor, the persons named as references must be professional land surveyors [registered] licensed in this state or any other state.

      3.  The board shall, by regulation, establish the [application] fee for licensure as a professional [engineers] engineer and professional [land surveyors] land surveyor in an amount not more than $200. The fee is nonrefundable and must accompany the application.

      4.  The board shall charge and collect from each applicant for certification as an [engineering] engineer intern or [land-surveying] land surveyor intern a fee fixed by the board of not more than $100, which includes the cost of examination and the issuance of a certificate.

      5.  A nonresident applying for [registration] licensure as a professional engineer or professional land surveyor is subject to the same fees as a resident.

      6.  An applicant must furnish proof that he is a citizen of the United States or that he is lawfully entitled to remain and work in the United States.

      7.  The board shall require the biennial renewal of each [certificate of registration] license of a professional engineer or professional land surveyor and collect a [renewal] fee for renewal of not more than $100, prescribed by regulation of the board, except that the board may prescribe shorter periods and prorated fees in setting up a system of staggered renewals.

      8.  In addition to the fee for renewal, the board shall require a holder of an expired [certificate of registration] license to pay, as a condition of renewal, a penalty in an amount established by regulation of the board.


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ê1997 Statutes of Nevada, Page 1051 (Chapter 295, SB 382)ê

 

      Sec. 38.  NRS 625.395 is hereby amended to read as follows:

      625.395  Each [person who holds a certificate of registration] licensee must renew his [certificate] license and pay the fee for renewal. Any [holder of a certificate of registration] licensee who fails to renew his [certificate] license may do so within 6 months after the date of its expiration, upon application to and with the approval of the board, and upon payment of all required fees and penalties. The board may extend the time for renewal of the expired [certificate.] license.

      Sec. 39.  NRS 625.397 is hereby amended to read as follows:

      625.397  The board may require any person:

      1.  Whose [certificate authorizing the person] license to practice professional engineering or land surveying has expired; or

      2.  Who has been the subject of a disciplinary proceeding before the board,

to pass a written or oral examination as a condition of reinstating or renewing his [certificate.] license.

      Sec. 40.  NRS 625.400 is hereby amended to read as follows:

      625.400  A new [certificate of registration] license to replace any [certificate] license revoked, lost, destroyed or mutilated may be issued, subject to the regulations of the board, and a charge of not more than $40 may be made for its issuance.

      Sec. 41.  NRS 625.403 is hereby amended to read as follows:

      625.403  The use of the word “certify” or “certification” by a [registered] professional engineer or professional land surveyor in the practice of professional engineering or land surveying constitutes an expression of professional opinion regarding those facts or findings which are the subject of the certification.

      Sec. 42.  NRS 625.405 is hereby amended to read as follows:

      625.405  1.  Any person who furnishes information concerning a licensee, an applicant for [registration or a registrant] licensure, an intern or an applicant for certification as an intern in good faith and without malicious intent is immune from any civil action for furnishing that information.

      2.  The board, any member, employee or committee of the board, counsel, investigator, expert, hearing officer, [registrant] licensee, intern or other person who assists the board in the investigation or prosecution of an alleged violation of a provision of this chapter, a proceeding concerning licensure or reissuance of a license or a criminal prosecution is immune from any civil liability for:

      (a) Any decision or action taken in good faith and without malicious intent in response to information acquired by the board.

      (b) Disseminating information concerning a licensee, an applicant for [registration or a registrant] licensure, an intern or an applicant for certification as an intern to any other licensing board, national association of registered boards, an agency of the Federal Government or of the state, the attorney general or any law enforcement agency.

      Sec. 43.  NRS 625.410 is hereby amended to read as follows:

      625.410  The board may take disciplinary action against [any registrant or any person applying for registration for any of the following reasons:] a licensee, an applicant for licensure, an intern or an applicant for certification as an intern for:

 


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ê1997 Statutes of Nevada, Page 1052 (Chapter 295, SB 382)ê

 

licensee, an applicant for licensure, an intern or an applicant for certification as an intern for:

      1.  The practice of any fraud or deceit in obtaining or attempting to obtain or renew a [certificate of registration] license or cheating on any examination required by this chapter.

      2.  Any gross negligence, incompetency or misconduct in the practice of professional engineering as a [registered] professional engineer or in the practice of land surveying as a professional land surveyor.

      3.  Aiding or abetting any person in the violation of any provision of this chapter or regulation adopted by the board.

      4.  Conviction of or entry of a plea of nolo contendere to:

      (a) Any felony; or

      (b) Any crime, an essential element of which is dishonesty, or which is directly related to the practice of engineering or land surveying.

      5.  A violation of any provision of this chapter or regulation adopted by the board.

      6.  Discipline by another state or territory, the District of Columbia, a foreign country, the Federal Government or any other governmental agency, if at least one of the grounds for discipline is the same or substantially equivalent to any ground contained in this chapter.

      7.  Practicing after [his certificate of registration] the license of the professional engineer or professional land surveyor has expired or has been suspended or revoked.

      8.  [Failure] Failing to comply with an order issued by the board.

      9.  [Failure] Failing to provide requested information within 30 days after receipt of a request by the board or its investigators concerning a complaint made to the board.

      Sec. 44.  NRS 625.420 is hereby amended to read as follows:

      625.420  1.  Any person may file with the board a charge concerning a violation of any provision of this chapter or regulation adopted by the board against any [registrant. Charges] person. The charges must be in writing and filed with the board.

      2.  All charges, unless dismissed by the board as unfounded or trivial, must be heard by the board within a reasonable time. An action against a [registrant] person may not be commenced by the filing of a formal complaint more than 1 year after the date on which the board received the charges.

      Sec. 45.  NRS 625.425 is hereby amended to read as follows:

      625.425  1.  Any information obtained during the course of an investigation by the board and any record of an investigation is confidential until the investigation is completed. If no disciplinary action is taken against a [registrant,] licensee, an applicant for licensure, an intern or an applicant for certification as an intern, or no civil penalty is imposed pursuant to NRS 625.590, the information in [any] his investigative file remains confidential. If a formal complaint is filed, all pleadings and evidence introduced at the hearing are public records.

      2.  The provisions of this section do not prohibit the board or its employees from communicating and cooperating with another licensing board or any other agency that is investigating a [registrant.] person.


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ê1997 Statutes of Nevada, Page 1053 (Chapter 295, SB 382)ê

 

      Sec. 46.  NRS 625.430 is hereby amended to read as follows:

      625.430  1.  The time and place for the hearing must be fixed by the board, and notice of the time and place of hearing must be personally served on [the registrant] the person against whom a complaint has been filed with the board or mailed to [the] his last known address [of the registrant] at least 30 days before the date fixed for the hearing.

      2.  The board may suspend the [certificate of registration] license of a [registrant] licensee without a hearing if the board finds, based upon evidence in its possession, that the public health, safety or welfare imperatively requires summary suspension of the [certificate of registration] license and incorporates that finding in its order. If the board summarily suspends the [certificate of registration] license of a [registrant,] licensee, a hearing must be held within 30 days after the suspension.

      Sec. 47.  NRS 625.460 is hereby amended to read as follows:

      625.460  If, after a hearing, a majority of the members of the board present at the hearing vote in favor of finding the accused [professional engineer, professional land surveyor, or applicant for registration as a professional engineer or land surveyor or for certification as an engineering intern or land-surveying intern,] person guilty, the board may:

      1.  Revoke the [certificate of registration] license of the [registered] professional engineer or professional land surveyor or deny a [certificate of registration] license to the applicant;

      2.  Suspend the license of the professional engineer or professional land surveyor;

      3.  Fine the [professional engineer, professional land surveyor] licensee or applicant for licensure not more than [$5,000] $15,000 for each violation of a provision of this chapter or any regulation adopted by the board;

      4.  Place the [professional engineer, professional land surveyor] licensee or applicant for licensure on probation for such periods as it deems necessary and, if the board deems appropriate, require the [professional engineer, professional land surveyor] licensee or applicant for licensure to pay restitution to clients or other persons who have suffered economic losses as a result of a violation of the provisions of this chapter or the regulations adopted by the board; or

      5.  Take such other disciplinary action as the board deems appropriate.

      Sec. 48.  NRS 625.470 is hereby amended to read as follows:

      625.470  The board [, for reasons which it may deem sufficient,] may reissue a [certificate of registration] license to any person whose [certificate] license has been revoked if a majority of the members of the board vote in favor of [such] reissuance.

      Sec. 49.  NRS 625.480 is hereby amended to read as follows:

      625.480  The following persons are exempt from the provisions of this chapter which require [registration:] licensure:

      1.  Any subordinate of a [registered] professional engineer of this state [insofar as] if he acts as a subordinate.

      2.  Officers and employees of the United States Government who have qualified [under] pursuant to federal regulations and have been authorized to do engineering for the Federal Government, but no such governmental officer or employee may engage in the private practice of engineering in Nevada unless he is [registered under the law.]


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ê1997 Statutes of Nevada, Page 1054 (Chapter 295, SB 382)ê

 

Nevada unless he is [registered under the law.] licensed pursuant to the provisions of this chapter.

      Sec. 50.  NRS 625.490 is hereby amended to read as follows:

      625.490  The following persons are exempt from the provisions of this chapter concerning the practice of land surveying:

      1.  Any state, county, city or district employee directly responsible to a professional land surveyor.

      2.  Any subordinate to a professional land surveyor of this state [, insofar as] if he acts as a subordinate.

      3.  [Registered professional] Professional mining engineers engaged solely in surveys made for mining and milling purposes or facilities pertaining thereto.

      4.  Officers and employees of the United States Government who have qualified [under] pursuant to federal regulations and have been authorized to make surveys for the government, but such a governmental employee shall not engage in private practice as a land surveyor in Nevada unless he is [registered under] licensed pursuant to the provisions of this chapter.

      Sec. 51.  NRS 625.500 is hereby amended to read as follows:

      625.500  The [registration] licensure requirements of this chapter do not apply to the employees of interstate or intrastate public utility companies while they are engaged in work for [such] those companies or to any architect registered [under] pursuant to the provisions of chapter 623 of NRS and who practices architecture as permitted by chapter 623 of NRS.

      Sec. 52.  NRS 625.520 is hereby amended to read as follows:

      625.520  1.  Except as otherwise provided in subsection 4, it is unlawful for:

      (a) Any person not properly licensed or exempted in accordance with the provisions of this chapter to:

             (1) Practice, continue to practice, solicit to practice, offer to practice or attempt to practice engineering or any discipline thereof;

             (2) Employ, use or cause to be used any of the following terms or any combination, variation or abbreviation thereof as a professional or commercial identification, representation, claim, asset or means of advantage or benefit, namely, “engineer,” “engineering,” “engineered,” “professional engineer” or “licensed engineer”; or

             (3) Directly or indirectly employ any means which in any manner tends or is likely to create the impression on the public or any member thereof that any person is qualified or authorized to practice engineering.

      (b) Any [registered] professional engineer to practice or offer to practice a discipline of professional engineering in which the board has not qualified him.

      (c) Any person to present or attempt to use, as his own, the [certificate of registration] license or the [seal] stamp of another [.] person.

      (d) Any person to give any false or forged evidence of any kind to the board or any member thereof in obtaining a [certificate of registration.] license.

      (e) Any person to impersonate any other [registrant] licensee of like or different name.


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ê1997 Statutes of Nevada, Page 1055 (Chapter 295, SB 382)ê

 

      (f) Any person to attempt to use an expired, suspended or revoked [certificate of registration.] license.

      (g) Any person to violate any of the provisions of this chapter.

      2.  Whenever any person is engaging or is about to engage in any act or practice that constitutes a violation of this chapter, the district court in any county, if the court would have jurisdiction over the violation, may, upon application of the board, issue an injunction or restraining order against the act or practice pursuant to Rule 65 of the Nevada Rules of Civil Procedure.

      3.  This section does not prevent a contractor licensed in accordance with the provisions of chapter 624 of NRS from using the term “engineer” or “engineering” if the term is used by the state contractors’ board in describing a specific classification.

      4.  Subparagraph (2) of paragraph (a) of subsection 1 does not apply to any corporation using such a term in its corporate name, if the corporation:

      (a) Filed its articles of incorporation with the secretary of state on or before September 30, 1991; and

      (b) Files with the board a written statement signed by a corporate officer under penalty of perjury in which he states that the corporation:

             (1) Is not practicing or offering to practice engineering in this state; and

             (2) Will not do so unless [and until] it is properly licensed or exempted in accordance with the provisions of this chapter.

      5.  Any person who violates any of the provisions of subsection 1 is guilty of a gross misdemeanor.

      Sec. 53.  NRS 625.530 is hereby amended to read as follows:

      625.530  1.  The State of Nevada or any of its political subdivisions, [such as] including a county, city or town, shall not engage in any public work requiring the practice of professional engineering or land surveying , [or engineering,] unless the maps, plans, specifications, reports and estimates have been prepared by, and the work executed under the supervision of, [a registered] a professional engineer, professional land surveyor or registered architect.

      2.  [Nothing in] The provisions of this section [:

      (a) Applies] do not:

      (a) Apply to any public work wherein the expenditure for the complete project of which the work is a part does not exceed $35,000.

      (b) [Includes] Include any maintenance work undertaken by the State of Nevada or its political subdivisions.

      (c) [Authorizes either] Authorize a professional engineer , [or a] registered architect or [a] professional land surveyor to practice in violation of any of the provisions of chapter 623 of NRS or this chapter.

      (d) [Requires] Require the services of an architect registered [under] pursuant to the provisions of chapter 623 of NRS for the erection of buildings or structures manufactured in an industrial plant, if [such] those buildings or structures meet the requirements of local building codes of the jurisdiction in which they are being erected.

      3.  The selection of a [registered] professional engineer, professional land surveyor or registered architect to perform services [under] pursuant to subsection 1 must be made on the basis of the competence and qualifications of the engineer, land surveyor or architect for the type of services to be performed [,] and not on the basis of competitive fees.


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ê1997 Statutes of Nevada, Page 1056 (Chapter 295, SB 382)ê

 

of the engineer, land surveyor or architect for the type of services to be performed [,] and not on the basis of competitive fees. If, after selection of the engineer, land surveyor or architect, an agreement upon a fair and reasonable fee cannot be reached with him, the public agency may terminate negotiations and select another engineer, land surveyor or architect.

      Sec. 54.  NRS 625.540 is hereby amended to read as follows:

      625.540  1.  It is unlawful for a person [:] who is:

      (a) Not properly [registered,] licensed or exempted in accordance with the provisions of this chapter to:

             (1) Practice, continue to practice, solicit to practice, offer to practice or attempt to practice land surveying;

             (2) Set, reset or replace any survey monument; or

             (3) Directly or indirectly employ any means which in any manner tends or is likely to create the impression on the public or any member thereof that any person who is not licensed [or registered] pursuant to this chapter is qualified or authorized to practice land surveying.

      (b) To present or attempt to use, as his own, the [certificate of registration,] license or [seal] stamp of another [.] person.

      (c) To give any false or forged evidence of any kind to the board or any member thereof in obtaining a [certificate of registration or] license.

      (d) To impersonate any other [registrant] licensee of the same or a different name.

      (e) To attempt to use an expired, suspended or revoked [certificate of registration or] license.

      (f) To violate any of the provisions of this chapter.

      2.  A person who violates any of the provisions of subsection 1 is guilty of a gross misdemeanor.

      Sec. 55.  NRS 625.560 is hereby amended to read as follows:

      625.560  It is unlawful for any person to sign [, stamp or seal] or stamp any map, plat, report, description or other document pertaining to the practice of land surveying unless he holds [a valid] an unsuspended and unrevoked [certificate] license as a professional land surveyor.

      Sec. 56.  NRS 625.570 is hereby amended to read as follows:

      625.570  Any employee or [official] officer who is employed on a full-time basis by the state, or a county, city or district thereof, who is paid a monthly or annual salary for his employment and whose public duty includes the practice of professional engineering or the practice of land surveying as defined in this chapter shall not engage in the private practice of professional engineering or the private practice of land surveying during the hours when he is required to perform his duties for the state, county, city or district.

      Sec. 57.  NRS 625.580 is hereby amended to read as follows:

      625.580 [Any public official violating the provisions] If a public officer violates a provision of this chapter , the board shall [:

      1.  Be punished by] impose a fine in an amount not [exceeding $500; and

      2.  Shall] to exceed $5,000 and may require the public officer to forfeit his office.


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ê1997 Statutes of Nevada, Page 1057 (Chapter 295, SB 382)ê

 

      Sec. 58.  NRS 625.590 is hereby amended to read as follows:

      625.590  1.  In addition to any other penalty provided by law, a person who violates any provision of this chapter or any regulation adopted by the board is subject to a civil penalty of not more than [$5,000] $15,000 for each violation. Any such penalty must be imposed by the board at a hearing for which notice has been given pursuant to NRS 625.430.

      2.  If a person does not pay a civil penalty imposed pursuant to subsection 1 within 60 days after the order of the board becomes final, the order may be executed upon in the same manner as a judgment issued by a court.

      Sec. 59.  NRS 625A.020 is hereby amended to read as follows:

      625A.020  As used in this chapter, unless the context otherwise requires:

      1.  “Board” means the board of registered environmental health specialists.

      2.  “Environmental health specialist” means a person who:

      (a) Is qualified to advocate or recommend the use of sanitary measures for the public benefit by reason of education, practical training and experience determined by the board to be satisfactory; and

      (b) Has received from the board a certificate of registration.

The term does not include any person who engages in the practice of professional engineering, unless he is [registered] licensed to do so pursuant to chapter 625 of NRS.

      Sec. 60.  NRS 627.190 is hereby amended to read as follows:

      627.190  Every construction control shall:

      1.  Obtain a true copy, certified as [such] true by a registered architect or [registered] licensed professional engineer and signed by the person or persons who executed the general contract of construction or the owner-contractor contracts, respectively, as owner, of the complete plans and specifications to be used in the construction subject to the construction control.

      2.  Obtain from the lender a written statement of the total net amount of [moneys,] money, credits or loan proceeds that will be available for disbursement or, as a lender engaging in construction control functions, review and ascertain its total net amount.

      3.  Obtain a true copy, signed by all the parties thereto, of the general contract of construction or all owner-contractor contracts, [under] pursuant to which the construction will be performed.

      4.  Obtain a true copy, signed by the parties thereto, of all of the subcontracts entered into with a contractor if the construction is to be performed [under] pursuant to a general contract of construction.

      5.  Compare the total amounts to be paid [under] pursuant to all of the subcontracts with the total amount payable to the general contractor, and compare the amount payable with the total net loans proceeds available for disbursement as construction loan funds.

      6.  Compare the total amounts to be paid [under] pursuant to all owner-contractor contracts entered into with the total net loan proceeds available for disbursement as construction loan funds.

      7.  Establish, in writing, the categories of disbursement and the amounts of [moneys] money apportioned to each category for disbursement.


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ê1997 Statutes of Nevada, Page 1058 (Chapter 295, SB 382)ê

 

      8.  Disburse or authorize the disbursement of [moneys] money from a particular category only for bills incurred within that category.

      9.  Disburse or authorize the disbursement of funds if the total net loan proceeds exceeds in amount or equals the total payable by the terms of:

      (a) The general contract of construction, or the subcontracts entered into with the general contractor, whichever is greater; or

      (b) The total payable by the terms of all owner-contractor contracts.

      10.  Receive funds before authorizing disbursement, [in the event that] if other funds are [still] needed to create an excess of funds as required [under] pursuant to subsection 9.

      11.  Restore categories of disbursement in the order in which they become exhausted and to the amount exhausted from any available funds in its hands and from other funds supplied by the borrower or borrowers.

      12.  Obtain from the obligee a mechanic’s lien release covering all work, labor and materials performed or supplied to the time specified in the lien release and for the amount payable [under] pursuant to the terms of the release, [prior to] before the disbursement of any [moneys] money for payment of such bills.

      13.  Upon receipt of written notice of a change order entered into after the beginning of construction which requires expenditure of extra [moneys] money and the amount thereof, require that any category of disbursement affected thereby be increased and restored to the extent of the amount of such extras from any available funds in its hands and from other funds supplied by the borrower before the disbursement of additional funds from [such] that category.

      14.  Before disbursing [moneys] money to a subcontractor or supplier, obtain from that subcontractor or supplier a true copy of the bill, in those instances in which the category was established based upon a proposal or bid of that subcontractor or supplier and not upon a firm contract.

      Sec. 61.  NRS 78.045 is hereby amended to read as follows:

      78.045  1.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed [under] pursuant to the laws of this state which provides that the name of the corporation contain the word “bank” or “trust,” unless:

      (a) It appears from the articles or the certificate of amendment that the corporation proposes to carry on business as a banking or trust company, [either] exclusively or in connection with its business as a bank or savings and loan association; and

      (b) The articles or certificate of amendment is first approved by the commissioner of financial institutions.

      2.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed [under] pursuant to the provisions of this chapter when it appears from the articles or the certificate of amendment that the business to be carried on by the corporation is subject to supervision by the commissioner of insurance or by the commissioner of financial institutions, unless the articles or certificate of amendment is first approved by the commissioner who will be supervising the business of the corporation.


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ê1997 Statutes of Nevada, Page 1059 (Chapter 295, SB 382)ê

 

      3.  Except as otherwise provided in subsection 4, the secretary of state shall not accept for filing any articles of incorporation or any certificate or amendment of articles of incorporation of any corporation formed [under] pursuant to the laws of this state if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer” or “licensed engineer” unless:

      (a) The state board of professional engineers and land surveyors certifies that the principals of the corporation are [registered] licensed to practice engineering [or are registered to practice engineering and architecture, except landscape architecture, under] pursuant to the laws of this state; or

      (b) The state board of professional engineers and land surveyors certifies that the corporation is exempt from the prohibitions of NRS 625.520.

      4.  The provisions of subsection 3 do not apply to any corporation, whose securities are publicly traded and regulated by the Securities Exchange Act of 1934, which does not engage in the practice of professional engineering.

      5.  The commissioner of financial institutions and the commissioner of insurance may approve or disapprove the articles or amendments referred to them [under] pursuant to the provisions of this section.

      Sec. 62.  NRS 80.010 is hereby amended to read as follows:

      80.010  1.  Before commencing or doing any business in this state, every corporation organized pursuant to the laws of another state, territory, the District of Columbia, a dependency of the United States or a foreign country, that enters this state to do business must:

      (a) File in the office of the secretary of state of this state:

             (1) A certificate of corporate existence issued not more than 90 days before the date of filing by an authorized officer of the jurisdiction of its incorporation setting forth the filing of documents and instruments related to the articles of incorporation, or the governmental acts or other instrument or authority by which the corporation was created. If the certificate is in a language other than English, a translation, together with the oath of the translator and his attestation of its accuracy, must be attached to the certificate.

             (2) A certificate of acceptance of appointment executed by its resident agent, who must be a resident or located in this state. The certificate must set forth the name of the resident agent, his street address for the service of process, and his mailing address if different from his street address. The street address of the resident agent is the registered office of the corporation in this state.

             (3) A statement executed by an officer of the corporation, acknowledged before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds, setting forth:

                   (I) A general description of the purposes of the corporation; and

                   (II) The authorized stock of the corporation and the number and par value of shares having par value and the number of shares having no par value.

      (b) Lodge in the office of the secretary of state a copy of the document most recently filed by the corporation in the jurisdiction of its incorporation setting forth the authorized stock of the corporation, the number of par value shares and their par value, and the number of no-par-value shares.


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ê1997 Statutes of Nevada, Page 1060 (Chapter 295, SB 382)ê

 

setting forth the authorized stock of the corporation, the number of par value shares and their par value, and the number of no-par-value shares.

      2.  The secretary of state shall not file the documents required by subsection 1 for any foreign corporation whose name is the same as, or deceptively similar to the name of a corporation, limited partnership or limited-liability company existing [under] pursuant to the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state or a name to which the exclusive right is at the time reserved in the manner provided [under] in the laws of this state, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

      3.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer” or “licensed engineer” unless the state board of professional engineers and land surveyors certifies that:

      (a) The principals of the corporation are [registered] licensed to practice engineering [or are registered to practice engineering and architecture, except landscape architecture,] pursuant to the laws of this state; or

      (b) The corporation is exempt from the prohibitions of NRS 625.520.

      4.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if it appears from the documents that the business to be carried on by the corporation is subject to supervision by the commissioner of financial institutions, unless the commissioner certifies that:

      (a) The corporation has obtained the authority required to do business in this state; or

      (b) The corporation is not subject to or is exempt from the requirements for obtaining such authority.

      Sec. 63.  NRS 116.4106 is hereby amended to read as follows:

      116.4106  1.  The public offering statement of a common-interest community containing any converted building must contain, in addition to the information required by NRS 116.4103 and 116.41035:

      (a) A statement by the declarant, based on a report prepared by an independent registered architect or licensed professional engineer, describing the present condition of all structural components and mechanical and electrical installations material to the use and enjoyment of the building;

      (b) A statement by the declarant of the expected useful life of each item reported in paragraph (a) or a statement that no representations are made in that regard; and

      (c) A list of any outstanding notices of uncured violations of building codes or other municipal regulations, together with the estimated cost of curing those violations.

      2.  This section applies only to a common-interest community comprised of a converted building or buildings containing more than 12 units that may be occupied for residential use.


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ê1997 Statutes of Nevada, Page 1061 (Chapter 295, SB 382)ê

 

      Sec. 64.  NRS 119.140 is hereby amended to read as follows:

      119.140  Any person or broker proposing to offer or sell any subdivision or lot, parcel, unit or interest therein in this state shall first submit to the division:

      1.  The name and address of each person owning or controlling an interest of 10 percent or more.

      2.  The name, principal occupation and address of every officer, director, partner, owner, associate or trustee of the subdivider.

      3.  The legal description and area of lands.

      4.  A true statement of the condition of the title to the land, [particularly] including all encumbrances thereon.

      5.  A true statement of the terms and conditions on which it is intended to dispose of the land and copies of the instruments which will be delivered to a purchaser to evidence his interest in the subdivision and of the contracts and other agreements which a purchaser will be required to agree to or sign.

      6.  A true statement of the provisions, if any, that have been made for public utilities in the proposed subdivision, including water, electricity, gas, telephone and sewerage facilities.

      7.  A true statement of the use for which the proposed subdivision will be offered.

      8.  A true statement of the provisions, if any, limiting the use or occupancy of the parcels in the subdivision.

      9.  A true statement of the maximum depth of fill used, or proposed to be used on each lot, and a true statement on the soil conditions in the subdivision supported by engineering reports showing the soil has been, or will be, prepared in accordance with the recommendations of a [registered] licensed civil engineer.

      10.  A true statement of the amount of indebtedness which is a lien upon the subdivision or any part thereof, and which was incurred to pay for the construction of any onsite or offsite improvement, or any community or recreational facility, and the names and addresses of the holders of [such] the indebtedness together with an indication of their relationship, if any, to the owner and subdivider.

      11.  A true statement or reasonable estimate, if applicable, of the amount of any indebtedness which has been or is proposed to be incurred by an existing or proposed special district, entity, taxing area or assessment district, within the boundaries of which the subdivision, or any part thereof, is located, and which is to pay for the construction or installation of any improvement or to furnish community or recreational facilities to [such] the subdivision, and which amounts are to be obtained by ad valorem tax or assessment, or by a special assessment or tax upon the subdivision, or any part thereof.

      12.  A true statement describing any agricultural activities or conditions in the area which may adversely affect residents of the subdivision, including any odors, cultivation and related dust, agricultural burning, application of pesticides, or irrigation and drainage.

      13.  Such other information as the owner, his agent or subdivider may [desire] wish to present.


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ê1997 Statutes of Nevada, Page 1062 (Chapter 295, SB 382)ê

 

      14.  A completed application for a license in such form and containing such additional information as the division may require on its filing forms.

      15.  The fees prescribed by this chapter.

      Sec. 65.  NRS 254.020 is hereby amended to read as follows:

      254.020  The county engineer must be:

      1.  A qualified and competent civil engineer.

      2.  [Registered] Licensed as a professional engineer by the state board of professional engineers and land surveyors.

      Sec. 66.  NRS 255.025 is hereby amended to read as follows:

      255.025  No person may be appointed as a county surveyor unless he is a professional land surveyor [registered] licensed pursuant to the provisions of chapter 625 of NRS.

      Sec. 67.  NRS 266.019 is hereby amended to read as follows:

      266.019  1.  The petition for incorporation must include the following information concerning the area proposed to be incorporated:

      (a) A description of the area prepared by a professional land surveyor [registered] licensed pursuant to chapter 625 of NRS, which need not be made from a current survey nor contain courses and distances measured from fixed points, but may be based upon assessor’s parcel maps, existing boundaries of subdivision or parcel maps, visible ground features, extensions of the visible ground features, or by any boundary that coincides with the official boundary of the state, a county, a city, a township, a section or any combination thereof.

      (b) The proposed name of the city.

      (c) The total acreage of the area.

      (d) The number of persons who reside in the area.

      (e) The number of owners of record of real property within the area.

      (f) A statement that the area meets the requirements of NRS 266.017.

      (g) A statement of the committee’s plans for providing police and fire protection, maintaining the streets, providing water and sewer services, collecting the garbage and providing administrative services in the proposed city, with an estimate of the costs and sources of revenue.

      (h) A map or plat of the area which is prepared from the description required by paragraph (a) and that shows the existing dedicated streets, sewer interceptors and outfalls and their proposed extensions.

      2.  The petition must be substantially in the following form:

 

PETITION FOR INCORPORATION

 

       To the Board of County Commissioners of .......... County, Nevada:

       We, the undersigned qualified electors of the State of Nevada respectfully petition the board of county commissioners to submit a proposal to incorporate as a city certain unincorporated contiguous area located within ................ County namely, ......................... (describe area to be incorporated), to the qualified electors who reside within the area to be incorporated, for their approval or disapproval at a special election to be held for that purpose.

       Each signer of this petition states:


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ê1997 Statutes of Nevada, Page 1063 (Chapter 295, SB 382)ê

 

       1.  I have personally signed this petition as a qualified elector of this state; and

       2.  I have correctly stated on this petition my residence, mailing address and the date of my signature.

      Sec. 68.  NRS 266.0335 is hereby amended to read as follows:

      266.0335  Upon approval of the incorporation by the voters, the board of county commissioners shall authorize a professional land surveyor [registered] licensed pursuant to chapter 625 of NRS to prepare a legal description of the area of the incorporated city by metes and bounds and courses and distances. The cost of the survey is a charge against the incorporated city.

      Sec. 69.  NRS 278.371 is hereby amended to read as follows:

      278.371  1.  The survey, setting of monuments and final map must be made by a professional land surveyor [registered] licensed in the State of Nevada.

      2.  The final monuments must be set before the recordation of the final map unless the subdivider furnishes a performance bond or other suitable assurance to the governing body or planning commission guaranteeing that the subdivider will provide a professional land surveyor to set the monuments on or before a day certain. The governing body or planning commission shall determine the amount of the performance bond, if any is required. If a surveyor other than the one signing the final plat accepts responsibility for the setting of monuments, a certificate of amendment must be filed and recorded.

      3.  The final monument must, except as otherwise provided in subsections 6 and 7, consist of a nonferrous tablet, disc or cap securely attached to the top of a metallic shaft solidly embedded in the ground, with a minimum diameter of 5/8 of an inch and a length sufficient to resist removal, and a mark for the exact point and stamped “PLS” followed by the number of the professional land surveyor’s [registration number.] license.

      4.  Final monuments must be set at:

      (a) Each corner of the boundary of the subdivision and at any point necessary to ensure that each monument on a given boundary can be seen from the next monument on that boundary.

      (b) Intersections of centerlines of streets.

      (c) Sufficient locations along the centerlines of streets so that the centerlines may be retraced. These locations may be at, or on an offset to, an angle to the centerline of a street, the center of a cul-de-sac, a point which defines a curve (the beginning or end of a curve or a point of intersection of a tangent) or an intersection with a boundary of the subdivision.

      (d) A position for a corner of the system of rectangular surveys which is used as control in the survey required by this chapter to establish property lines and corners of the subdivision.

The governing body shall, by ordinance, adopt any additional standards for the setting of final monuments which are reasonably necessary, including the establishment of Nevada state plane coordinates thereon pursuant to chapter 327 of NRS.


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ê1997 Statutes of Nevada, Page 1064 (Chapter 295, SB 382)ê

 

      5.  A final monument required in subsection 4 which falls in a paved area must:

      (a) Consist of a well with lid placed so that the top of the tablet, disc or cap of the monument is not less than 4 inches below the surface of the pavement; or

      (b) Be of comparable construction as required by the governing body.

The monument must be set flush with the top of the pavement with such references as are required by the governing body.

      6.  If a point designated in subsection 4 falls on solid bedrock or on a concrete or stone roadway, curb, gutter or walk, a durable nonferrous metal tablet, disc or cap must be securely anchored in the rock or concrete and marked as required in subsection 3.

      7.  If a monument required by subsection 3 cannot be set because of steep terrain, water, marsh or existing structures, or if it would be obliterated as a result of proposed construction, one or more reference monuments must be set. In addition to the physical requirements for a monument set forth in subsections 3 to 6, inclusive, the letters “RM” and “WC” must be stamped in the tablet, disc or cap. If only one reference monument is used, it must be set on the actual line or a prolongation thereof. Otherwise, at least two reference monuments must be set. These monuments shall be deemed final monuments.

      8.  A corner of a lot must be set by the land surveyor in the manner approved by the governing body.

      Sec. 70.  NRS 278.375 is hereby amended to read as follows:

      278.375  A final map presented for filing must include a certificate of the surveyor responsible for the survey. The certificate must be in the following form:

 

Surveyor’s Certificate

 

I, .........................(Name of Surveyor), a Professional Land Surveyor [registered] licensed in the State of Nevada, certify that:

 

1.  This plat represents the results of a survey conducted under my direct supervision at the instance of   

(Owner, Trustee, Etc.).

2.  The lands surveyed lie within ...........................................................................

(Section, Township, Range, Meridian and, if required by the governing body, a description by metes and bounds for any subdivision which is divided into lots containing 5 acres in area or less),

and the survey was completed on ………………………………(date).

3.  This plat complies with the applicable state statutes and any local ordinances in effect on the date that the governing body gave its final approval.


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ê1997 Statutes of Nevada, Page 1065 (Chapter 295, SB 382)ê

 

4.  The monuments depicted on the plat are of the character shown, occupy the positions indicated and are of sufficient number and durability.

(OR)

4.  The monuments depicted on the plat will be of the character shown and occupy the positions indicated by .............................. (a day certain) and an appropriate financial guarantee will be posted with the governing body before recordation to [assure] ensure the installation of the monuments.

.…………………….  [Registration] License Number and [Seal:] Stamp:

(Name of Surveyor)

      Sec. 71.  NRS 278.376 is hereby amended to read as follows:

      278.376  1.  A final map presented for filing must include a certificate by the county surveyor or county engineer if a subdivision lies within an unincorporated area, and if a subdivision lies within a city, a certificate by the city surveyor, city engineer or county surveyor when for that purpose appointed by the governing body of the city, stating:

      (a) That he has examined the final map; and

      (b) That the map is technically correct and that if the monuments have not been set, that a proper performance bond has been deposited guaranteeing their setting on or before a day certain.

      2.  The person certifying the information required by this section must be [registered] licensed as a professional land surveyor or civil engineer pursuant to chapter 625 of NRS.

      Sec. 72.  NRS 278.477 is hereby amended to read as follows:

      278.477  1.  In addition to the requirements of subsection 2, an amendment of a recorded subdivision plat, parcel map, map of division into large parcels, or record of survey which changes or purports to change the physical location of any survey monument, property line or boundary line is subject to the following requirements:

      (a) If the proposed amendment is to a parcel map, map of division into large parcels, or record of survey, the same procedures and requirements apply as in the original filing.

      (b) If the proposed amendment is to a subdivision plat, only those procedures for the approval and filing of a final map.

      2.  Any amended plat, map or survey required pursuant to subsection 1 must:

      (a) Be identical in size and scale to the document being amended, drawn in the manner and on the material provided by law;

      (b) Have the words “Amended Plat of” prominently displayed on each sheet above the title of the document amended;

      (c) Have a blank margin for the county recorder’s index information;

      (d) Have a 3-inch square adjacent to and on the left side of the existing square for the county recorder’s information and stamp;

      (e) Contain or be accompanied by the report of a title company and the certificate required by NRS 278.374 or an order of the district court of the county in which the land is located that the amendment may be approved without all the necessary signatures if the order is based upon a finding that a bona fide effort was made to communicate with the necessary persons, that all persons who responded have consented thereto and that the amendment does not adversely affect the persons who did not respond;

 


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ê1997 Statutes of Nevada, Page 1066 (Chapter 295, SB 382)ê

 

that all persons who responded have consented thereto and that the amendment does not adversely affect the persons who did not respond;

      (f) Contain a certificate of the professional land surveyor [registered] licensed pursuant to chapter 625 of NRS who prepared the amendment stating that it complies with all pertinent sections of NRS 278.010 to 278.630, inclusive, and 625.340 to 625.380, inclusive, and with any applicable local ordinance; and

      (g) For a survey recorded in support of an adjusted boundary, contain a certificate executed by the appropriate county surveyor, county engineer, city surveyor or city engineer, if he is [registered] licensed as a professional land surveyor or civil engineer pursuant to chapter 625 of NRS stating that he has examined the document and that it is technically correct.

      3.  Upon recording the amended document, the county recorder shall cause a proper notation to be entered upon all recorded sheets of the document being amended, if the county recorder does not maintain a cumulative index for such maps and amendments. If such an index is maintained, the county recorder shall direct an appropriate entry for the amendment.

      Sec. 73.  NRS 278.4955 is hereby amended to read as follows:

      278.4955  1.  The map of reversion submitted pursuant to NRS 278.490 must contain the report and the appropriate certificates required by NRS 278.376 and 278.377 for the original division of the land, any agreement entered into for a required improvement pursuant to NRS 278.380 for the original division of the land, and the certificates required by NRS 278.496 and 278.4965. If the map includes the reversion of any street or easement owned by a city, a county or the state, the provisions of NRS 278.480 must be followed before approval of the map.

      2.  The final map of reversion must be:

      (a) Prepared by a professional land surveyor [registered] licensed pursuant to chapter 625 of NRS. The professional land surveyor shall state in his certificate that the map has been prepared from information on a recorded map that is being reverted. The professional land surveyor may state in his certificate that he assumes no responsibility for the existence of the monuments or for correctness of other information shown on or copied from the document. The professional land surveyor shall include in his certificate information which is sufficient to identify clearly the recorded map being reverted.

      (b) Clearly and legibly drawn in black permanent ink upon good tracing cloth or produced by the use of other materials of a permanent nature generally used for such a purpose in the engineering profession. Affidavits, certificates and acknowledgments must be legibly stamped or printed upon the map with black permanent ink.

      3.  The size of each sheet of the final map must be 24 by 32 inches. A marginal line must be drawn completely around each sheet, leaving an entirely blank margin of 1 inch at the top, bottom and right edges, and of 2 inches at the left edge along the 24-inch dimension.

      4.  The scale of the final map must be large enough to show all details clearly and enough sheets must be used to accomplish this end.


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ê1997 Statutes of Nevada, Page 1067 (Chapter 295, SB 382)ê

 

      5.  The particular number of the sheet and the total number of sheets comprising the final map must be stated on each of the sheets and its relation to each adjoining sheet must be clearly shown.

      Sec. 74.  NRS 329.130 is hereby amended to read as follows:

      329.130  “Surveyor” means any person who is [authorized] licensed pursuant to chapter 625 of NRS to practice land surveying.

      Sec. 75.  NRS 341.100 is hereby amended to read as follows:

      341.100  1.  The board may appoint a manager. The manager, with the approval of the board, may appoint a deputy for professional services and a deputy for administrative, fiscal and constructional services. In addition, the manager may appoint such other technical and clerical assistants as may be necessary to carry into effect the provisions of this chapter.

      2.  The manager and his deputies are in the unclassified service of the state. Except as otherwise provided in NRS 284.143, the manager and each deputy shall devote his entire time and attention to the business of his office and shall not pursue any other business or occupation or hold any other office of profit.

      3.  The manager and his deputy for professional services must each be a [registered] licensed professional engineer pursuant to the provisions of chapter 625 of NRS or an architect [licensed under] registered pursuant to the provisions of chapter 623 of NRS. The deputy manager for administrative, fiscal and constructional services must have a comprehensive knowledge of principles of administration and a working knowledge of principles of engineering or architecture as determined by the board.

      4.  The manager shall:

      (a) Serve as the secretary of the board.

      (b) Manage the daily affairs of the board.

      (c) Represent the board before the legislature.

      (d) Prepare and submit to the board, for its approval, the recommended priority for proposed capital improvement projects and provide the board with an estimate of the cost of each project.

      (e) Make recommendations to the board for the selection of architects, engineers and contractors.

      (f) Make recommendations to the board [regarding] concerning the acceptance of completed projects.

      (g) Advise the board and the legislature, or the interim finance committee if the legislature is not in session, on a monthly basis of the progress of all public works projects which are a part of the approved capital improvement program.

      Sec. 76.  NRS 408.163 is hereby amended to read as follows:

      408.163  The director:

      1.  Is in the unclassified service of the state.

      2.  Must be a [registered] licensed professional engineer in the state.

      3.  Must have had at least 5 years of responsible administrative experience in public or business administration.

      4.  Must possess broad skills as a manager in areas related to the functions of the department.


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ê1997 Statutes of Nevada, Page 1068 (Chapter 295, SB 382)ê

 

      Sec. 77.  NRS 408.178 is hereby amended to read as follows:

      408.178  1.  The deputy director:

      (a) Is in the unclassified service of the state.

      (b) Must hold a master’s degree in public or business administration, hold the degree of bachelor of science in civil, structural, mechanical or industrial engineering, or be a [registered] licensed professional engineer.

      (c) Must have at least 2 years of administrative experience as the assistant director, the chief engineer [,] or the head of an engineering or planning division of the department, or have equivalent experience.

      2.  The chief engineer:

      (a) Is in the classified service of the state.

      (b) Must be a [registered] licensed professional engineer.

      (c) Except as otherwise provided in subsection 3, must have at least 3 years of experience as the final engineering authority for a state’s agency which has duties similar to those of the department.

      3.  If the director or deputy director is a [registered] licensed professional engineer, he may also act as the department’s chief engineer.

      Sec. 78.  NRS 445B.275 is hereby amended to read as follows:

      445B.275  1.  The governing body of any district, county or city authorized to operate an air pollution control program [under] pursuant to NRS 445B.100 to 445B.640, inclusive, may appoint an air pollution control hearing board.

      2.  The air pollution control hearing board appointed by a county, city or health district [shall] must consist of seven members who are not employees of the state or any political subdivision of the state. One member of the hearing board [shall] must be an attorney admitted to practice law in Nevada, one member [shall] must be a professional engineer [registered] licensed in Nevada and one member [shall] must be licensed in Nevada as a general engineering contractor or a general building contractor as defined by NRS 624.215. Three [shall] must be appointed for a term of 1 year, three [shall] must be appointed for a term of 2 years and one [shall] must be appointed for a term of 3 years. Each succeeding term [shall] must be for a period of 3 years.

      Sec. 79.  NRS 496.035 is hereby amended to read as follows:

      496.035  1.  An employee of a municipality who is not [registered] licensed as a professional land surveyor pursuant to chapter 625 of NRS may collect information to be used exclusively by the municipality for preliminary planning for development of new airports or air navigation facilities or improvements to existing airports or air navigation facilities within the municipality.

      2.  If, based on the information collected pursuant to this section, the municipality elects to initiate or proceed with such a project, the municipality shall comply with the provisions of chapter 625 of NRS governing the:

      (a) Preparation of the maps, plans, specifications, reports and estimates required for the project; and

      (b) Execution or supervision of all other practices of land surveying associated with the project.


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ê1997 Statutes of Nevada, Page 1069 (Chapter 295, SB 382)ê

 

      Sec. 80.  NRS 532.030 is hereby amended to read as follows:

      532.030  No person [shall] may be appointed as state engineer who is not a [registered] licensed professional engineer [under] pursuant to the provisions of chapter 625 of NRS and who does not have such training in hydraulic and general engineering and such practical skill and experience as shall fit him for the position.

      Sec. 81.  NRS 533.080 is hereby amended to read as follows:

      533.080  1.  All maps, surveys and measurements of water required pursuant to this chapter must be made by a state water right surveyor. No survey, map or measurement of flow of water may be approved by the state engineer unless the survey is made by a state water right surveyor.

      2.  Any [registered] licensed professional engineer or land surveyor, [qualified and registered in this state,] who has a practical knowledge of surveying or engineering and who is familiar with land surveying and mapping and the measurement of water, and who is of good moral standing, must be considered for appointment as a state water right surveyor upon application to the state engineer. The application must be in the form prescribed by the state engineer and accompanied by a fee of $50.

      3.  The state engineer may require any applicant for appointment to the position of state water right surveyor to pass such reasonable examination as to his qualifications as is provided by the state engineer.

      4.  Whenever the state engineer approves the qualifications of an applicant, he shall issue a certificate to the applicant designating him as a state water right surveyor.

      5.  Every water right surveyor’s certificate expires on June 30 of each year unless renewed by application in the form prescribed by the state engineer. A fee of $20 must be paid each year for renewal. All application and renewal fees must be accounted for in the state engineer’s water license account, which is hereby created in the state general fund, and must be used to pay costs pertaining to the certificate and renewal and other costs associated with carrying out the provisions of this section.

      6.  An appointment may be revoked by the state engineer at any time for good cause shown.

      7.  The state engineer may provide such additional regulations governing the qualifications and official acts of state water right surveyors as are reasonable and not inconsistent with this chapter.

      8.  The State of Nevada is not liable for the compensation of any state water right surveyor, but he is entitled to be paid by the person employing him.

      9.  Officers and employees of the [United States] Federal Government are entitled to apply for the position of state water right surveyor and are exempt from the [qualification of registration as] requirement that a state water right surveyor must be a professional engineer or professional land surveyor [required] set forth in subsection 2. Any certificate issued to those officers and employees must include a restriction limiting those officers and employees to work for the [United States] Federal Government.

      Sec. 82.  NRS 540A.100 is hereby amended to read as follows:

      540A.100  The members of the commission appointed pursuant to NRS 540A.080 and 540A.090 may not hold any elective governmental office but may be engaged or employed in private enterprise or be employees of state or local government and each member must be qualified pursuant to at least one of the following subsections:

 


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ê1997 Statutes of Nevada, Page 1070 (Chapter 295, SB 382)ê

 

may be engaged or employed in private enterprise or be employees of state or local government and each member must be qualified pursuant to at least one of the following subsections:

      1.  A professional engineer [registered] licensed pursuant to the provisions of chapter 625 of NRS with experience related to comprehensive planning, natural resources or environmental protection;

      2.  A specialist in hydrology;

      3.  Experienced in law, management or planning related to water;

      4.  Experienced in municipal finance;

      5.  Experienced in construction, planning or operation of facilities or systems for supplying or treating water, for collecting or treating sewage, for drainage of storm water, or for control of floods; or

      6.  Knowledgeable in the areas of water conservation, biology, natural systems, water quality and water management.

      Sec. 83.  NRS 543.510 is hereby amended to read as follows:

      543.510  1.  The board may:

      (a) Appoint a chief engineer and general manager who must be a civil engineer [registered] licensed pursuant to the provisions of chapter 625 of NRS and may be selected from among nominees proposed by the citizens’ advisory committee for the district.

      (b) Prescribe the duties of officers, agents and employees and fix their compensation.

      (c) Create a technical committee for the district. If the board of county commissioners constitutes the board of directors, the technical committee must include one member and one alternate appointed by the county and by each city within the district. If the regional transportation commission constitutes the board of directors, the number of members and alternates appointed respectively by the county and by each city must be equal to the number of its representatives on the commission. The citizens’ advisory committee for the district shall appoint one of its members to the technical committee. The chief engineer and general manager is a member of the technical committee and shall serve as its executive director. Each member of the committee has one vote, except the member from the citizens’ advisory committee and the chief executive and general manager, each of whom may otherwise participate in the activities of and make recommendations to the technical committee. The committee shall annually choose one of its members as chairman.

      2.  The chief engineer and general manager may hire and retain agents, employees, engineers and attorneys, and any other persons necessary or desirable to effect the purposes of the district.

      3.  The board may contract with any agency of the Federal Government for any services related to projects for the control of floods in the district.

      4.  The district attorney, the county surveyor, the county assessor, the county auditor or comptroller, the county treasurer, their deputies, assistants, clerks and other employees are ex officio officers, deputies, assistants, clerks and employees of the district. They shall, if requested by the board, perform the same various duties for the district as for the county. The board [must] shall reimburse the county for the cost of rendering these services.

 

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