Link to Page 3484

 

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ê2003 Statutes of Nevada, Page 3485 (Chapter 509, SB 370)ê

 

      2.  The amount of the tax must be computed on the basis of the value of the transferred real property as declared pursuant to NRS 375.060.

      3.  The county recorder shall collect the tax in the manner provided in NRS 375.030, except that he shall transmit all the proceeds from the tax imposed pursuant to this section to the State Treasurer for use in the Plant Industry Program as required by NRS 561.355.

      Sec. 2.  NRS 375.018 is hereby amended to read as follows:

      375.018  With regard to the administration of [the real property transfer tax,] any tax imposed by this chapter, the county recorder shall apply the following principles:

      1.  Forms, instructions and regulations governing the computation of the amount of tax due must be brief and easily understood.

      2.  In cases where another authority, such as the United States or this state, also imposes a tax upon the same property or revenue, the mechanism for collecting the tax imposed by the county must be as nearly compatible with the collection of the other taxes as is feasible.

      3.  Unless a change is made necessary by statute or to preserve compatibility with a tax imposed by another authority, the forms, instructions and regulations must remain the same from year to year, to make the taxpayer’s liability as predictable as is feasible.

      4.  Exemptions or waivers, where permitted by statute, must be granted:

      (a) Equitably among eligible taxpayers; and

      (b) As sparingly as is consistent with the legislative intent, to retain the broadest feasible base for the tax.

      Sec. 3.  NRS 375.030 is hereby amended to read as follows:

      375.030  1.  If any deed evidencing a transfer of title subject to the tax imposed by NRS 375.020 and, if applicable, NRS 375.025 [,] and section 1 of this act, is offered for recordation, the county recorder shall compute the amount of the tax due and shall collect that amount before acceptance of the deed for recordation.

      2.  The buyer and seller are jointly and severally liable for the payment of the taxes imposed by NRS 375.020 and 375.025 and section 1 of this act and any penalties and interest imposed pursuant to subsection 3. The escrow holder is not liable for the payment of the taxes imposed by NRS 375.020 and 375.025 and section 1 of this act or any penalties or interest imposed pursuant to subsection 3.

      3.  If after recordation of the deed, the county recorder disallows an exemption that was claimed at the time the deed was recorded or through audit or otherwise determines that an additional amount of tax is due, the county recorder shall promptly notify the person who requested the recording of the deed and the buyer and seller of the additional amount of tax due. If the additional amount of tax is not paid within 30 days after the date the buyer and seller are notified, the county recorder shall impose a penalty of 10 percent of the additional amount due in addition to interest at the rate of 1 percent per month, or portion thereof, of the additional amount due calculated from the date of the original recordation of the deed on which the additional amount is due through the date on which the additional amount due, penalty and interest are paid to the county recorder.

      4.  This section does not prohibit a buyer and seller from agreeing by contract or otherwise that one party or the other will be responsible for the payment of the tax due pursuant to this chapter, but such an agreement does not affect the ability of the county recorder to collect the tax and any penalties and interest from either the buyer or the seller.


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ê2003 Statutes of Nevada, Page 3486 (Chapter 509, SB 370)ê

 

not affect the ability of the county recorder to collect the tax and any penalties and interest from either the buyer or the seller.

      Sec. 4.  NRS 375.070 is hereby amended to read as follows:

      375.070  1.  The county recorder shall transmit the proceeds of the [real property transfer] tax imposed by NRS 375.020 at the end of each quarter in the following manner:

      (a) An amount equal to that portion of the proceeds which is equivalent to 10 cents for each $500 of value or fraction thereof must be transmitted to the State Controller who shall deposit that amount in the Account for Low-Income Housing created pursuant to NRS 319.500.

      (b) In a county whose population is more than 400,000, an amount equal to that portion of the proceeds which is equivalent to 60 cents for each $500 of value or fraction thereof must be transmitted to the county treasurer for deposit in the county school district’s fund for capital projects established pursuant to NRS 387.328, to be held and expended in the same manner as other money deposited in that fund.

      (c) The remaining proceeds must be transmitted to the State Controller for deposit in the Local Government Tax Distribution Account created by NRS 360.660 for credit to the respective accounts of Carson City and each county.

      2.  In addition to any other authorized use of the proceeds it receives pursuant to subsection 1, a county or city may use the proceeds to pay expenses related to or incurred for the development of affordable housing for families whose income does not exceed 80 percent of the median income for families residing in the same county, as that percentage is defined by the United States Department of Housing and Urban Development. A county or city that uses the proceeds in that manner must give priority to the development of affordable housing for persons who are disabled or elderly.

      3.  The expenses authorized by subsection 2 include, but are not limited to:

      (a) The costs to acquire land and developmental rights;

      (b) Related predevelopment expenses;

      (c) The costs to develop the land, including the payment of related rebates;

      (d) Contributions toward down payments made for the purchase of affordable housing; and

      (e) The creation of related trust funds.

      Sec. 5.  NRS 375.090 is hereby amended to read as follows:

      375.090  The [tax] taxes imposed by NRS 375.020 and 375.025 [does] and section 1 of this act do not apply to:

      1.  A mere change in identity, form or place of organization, such as a transfer between a corporation and its parent corporation, a subsidiary or an affiliated corporation if the affiliated corporation has identical common ownership.

      2.  A transfer of title to the United States, any territory or state or any agency, department, instrumentality or political subdivision thereof.

      3.  A transfer of title recognizing the true status of ownership of the real property.

      4.  A transfer of title without consideration from one joint tenant or tenant in common to one or more remaining joint tenants or tenants in common.


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ê2003 Statutes of Nevada, Page 3487 (Chapter 509, SB 370)ê

 

      5.  A transfer of title to community property without consideration when held in the name of one spouse to both spouses as joint tenants or tenants in common, or as community property.

      6.  A transfer of title between spouses, including gifts.

      7.  A transfer of title between spouses to effect a property settlement agreement or between former spouses in compliance with a decree of divorce.

      8.  A transfer of title to or from a trust, if the transfer is made without consideration, and is made to or from:

      (a) The trustor of the trust;

      (b) The trustor’s legal representative; or

      (c) A person related to the trustor in the first degree of consanguinity.

As used in this subsection, “legal representative” has the meaning ascribed to it in NRS 167.020.

      9.  Transfers, assignments or conveyances of unpatented mines or mining claims.

      10.  A transfer, assignment or other conveyance of real property to a corporation or other business organization if the person conveying the property owns 100 percent of the corporation or organization to which the conveyance is made.

      11.  A transfer, assignment or other conveyance of real property if the owner of the property is related to the person to whom it is conveyed within the first degree of consanguinity.

      12.  The making, delivery or filing of conveyances of real property to make effective any plan of reorganization or adjustment:

      (a) Confirmed under the Bankruptcy Act, as amended, 11 U.S.C. §§ 101 et seq.;

      (b) Approved in an equity receivership proceeding involving a railroad, as defined in the Bankruptcy Act; or

      (c) Approved in an equity receivership proceeding involving a corporation, as defined in the Bankruptcy Act,

if the making, delivery or filing of instruments of transfer or conveyance occurs within 5 years after the date of the confirmation, approval or change.

      13.  The making or delivery of conveyances of real property to make effective any order of the Securities and Exchange Commission if:

      (a) The order of the Securities and Exchange Commission in obedience to which the transfer or conveyance is made recites that the transfer or conveyance is necessary or appropriate to effectuate the provisions of section 11 of the Public Utility Holding Company Act of 1935, 15 U.S.C. § 79k;

      (b) The order specifies and itemizes the property which is ordered to be transferred or conveyed; and

      (c) The transfer or conveyance is made in obedience to the order.

      14.  A transfer to an educational foundation. As used in this subsection, “educational foundation” has the meaning ascribed to it in subsection 3 of NRS 388.750.

      15.  A transfer to a university foundation. As used in this subsection, “university foundation” has the meaning ascribed to it in subsection 3 of NRS 396.405.

      16.  A transfer, assignment or other conveyance of real property to a corporation sole from another corporation sole. As used in this subsection, “corporation sole” means a corporation which is organized pursuant to the provisions of chapter 84 of NRS.


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ê2003 Statutes of Nevada, Page 3488 (Chapter 509, SB 370)ê

 

“corporation sole” means a corporation which is organized pursuant to the provisions of chapter 84 of NRS.

      Sec. 6.  NRS 375.120 is hereby amended to read as follows:

      375.120  The county recorder shall:

      1.  Conduct and apply audits and other procedures for enforcement as uniformly as is feasible.

      2.  Collect [real property transfer] any tax that is due pursuant to the provisions of this chapter in an equitable manner, so that every taxpayer pays the full amount imposed by law.

      Sec. 7.  NRS 375.130 is hereby amended to read as follows:

      375.130  1.  The county recorder may audit all records relating to the collection and calculation of [the real property transfer tax.] any tax imposed by this chapter. If the county recorder deems it necessary to conduct an audit, the audit must be completed within 3 years after the date of the original recording of the document that evidences the transfer of property for which the tax was imposed.

      2.  The county recorder may issue subpoenas to require the production of documents necessary for him to determine the amount of [real property transfer] the tax due pursuant to this chapter or to determine whether a person qualifies for an exemption from taxes pursuant to this chapter. The county recorder may have the subpoenas served, and upon application of the district attorney, to any court of competent jurisdiction, enforced in the manner provided by law for the service and enforcement of subpoenas in a civil action.

      Sec. 8.  NRS 375.160 is hereby amended to read as follows:

      375.160  1.  If any [real property transfer] tax imposed pursuant to this chapter is not paid when due, the county may, within 3 years after the date that the tax was due, record a certificate in the office of the county recorder which states:

      (a) The amount of the [real property transfer] tax and any interest or penalties due;

      (b) The name and address of the person who is liable for the amount due as they appear on the records of the county; and

      (c) That the county recorder has complied with all procedures required by law for determining the amount due.

      2.  From the time of the recording of the certificate, the amount due, including interest and penalties, constitutes:

      (a) A lien upon the real property for which the tax was due if the person who owes the tax still owns the property; or

      (b) A demand for payment if the property has been sold or otherwise transferred to another person.

      3.  The lien has the effect and priority of a judgment lien and continues for 5 years after the time of the recording of the certificate unless sooner released or otherwise discharged.

      4.  Within 5 years after the date of recording the certificate or within 5 years after the date of the last extension of the lien pursuant to this subsection, the lien may be extended by recording a new certificate in the office of the county recorder. From the time of recording the new certificate, the lien is extended for 5 years, unless sooner released or otherwise discharged.


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ê2003 Statutes of Nevada, Page 3489 (Chapter 509, SB 370)ê

 

      Sec. 9.  NRS 375.170 is hereby amended to read as follows:

      375.170  1.  If a person is delinquent in the payment of [the real property transfer] any tax imposed by this chapter or has not paid the amount of a deficiency determination, the county may bring an action in a court of this state, a court of any other state or a court of the United States that has competent jurisdiction to collect the delinquent or deficient amount, penalties and interest. The action:

      (a) May not be brought if the decision that the payment is delinquent or that there is a deficiency determination is on appeal to a hearing officer pursuant to NRS 375.320.

      (b) Must be brought not later than 3 years after the payment became delinquent or the determination became final.

      2.  The district attorney shall prosecute the action. The provisions of the Nevada Revised Statutes, Nevada Rules of Civil Procedure and Nevada Rules of Appellate Procedure relating to service of summons, pleadings, proofs, trials and appeals are applicable to the proceedings. In the action, a writ of attachment may issue. A bond or affidavit is not required before an attachment may be issued.

      3.  In an action, a certificate by the county recorder showing the delinquency is prima facie evidence of:

      (a) The determination of the tax or the amount of the tax;

      (b) The delinquency of the amounts; and

      (c) The compliance by the county recorder with all the procedures required by law relating to the computation and determination of the amounts.

      Sec. 10.  NRS 375.250 is hereby amended to read as follows:

      375.250  1.  The Legislature hereby declares that each taxpayer has the right:

      (a) To be treated by officers and employees of the county recorder with courtesy, fairness, uniformity, consistency and common sense.

      (b) To a prompt response from the county recorder to each communication from the taxpayer.

      (c) To provide the minimum documentation and other information as may reasonably be required by the county recorder to carry out his duties.

      (d) To be notified, in writing, by the county recorder whenever an officer or employee of the county recorder determines that the taxpayer is entitled to an exemption or has been taxed more than is required pursuant to this chapter.

      (e) To written instructions indicating how the taxpayer may petition for a refund for overpayment of [real property transfer] any tax, interest or penalties.

      (f) To recover an overpayment of [real property transfer] any tax promptly upon the final determination of such an overpayment.

      (g) To obtain specific advice from the county recorder concerning [real property transfer] any tax.

      (h) In any meeting with the county recorder, including an audit, conference, interview or hearing:

             (1) To an explanation by an officer, agent or employee of the county recorder that describes the procedures to be followed and the rights of the taxpayer thereunder;

             (2) To be represented by himself or anyone who is otherwise authorized by law to represent him before the county recorder;


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ê2003 Statutes of Nevada, Page 3490 (Chapter 509, SB 370)ê

 

             (3) To make an audio recording using the taxpayer’s equipment and at the taxpayer’s expense; and

             (4) To receive a copy of any document or audio recording made by or in the possession of the county recorder relating to the determination or collection of any tax for which the taxpayer is assessed pursuant to this chapter, upon payment of the actual cost to the county recorder of making the copy.

      (i) To a full explanation of the authority of the county recorder to collect the [real property transfer] tax or to collect a delinquent [real property transfer] tax, including, without limitation, the procedures and notices for review and appeal that are required for the protection of the taxpayer. An explanation which meets the requirements of this section must also be included with each notice to a taxpayer that an audit will be conducted by the county.

      (j) To the immediate release of any lien which the county recorder has placed on real property for the nonpayment of [the real property transfer] a tax when:

             (1) The tax is paid;

             (2) The period of limitation for collecting the tax expires;

             (3) The lien is the result of an error by the county recorder;

             (4) The county recorder determines that the taxes, interest and penalties are secured sufficiently by a lien on other real property;

             (5) The release or subordination of the lien will not jeopardize the collection of the taxes, interest and penalties; or

             (6) The release of the lien will facilitate the collection of the taxes, interest and penalties.

      (k) To be free from harassment and intimidation by an officer or employee of the county recorder for any reason.

      2.  The provisions of this chapter governing the administration and collection of taxes by the county recorder must not be construed in such a manner as to interfere or conflict with the provisions of this section or any applicable regulations.

      3.  The provisions of this section apply to the administration and collection of taxes pursuant to this chapter.

      Sec. 11.  NRS 375.270 is hereby amended to read as follows:

      375.270  The county recorder shall provide each taxpayer who it determines may be liable for taxes pursuant to this chapter with simplified written instructions concerning the rights and responsibilities of the taxpayer, including the:

      1.  Keeping of records sufficient for audit purposes;

      2.  Procedures for paying [the real property transfer tax;] any taxes that are due; and

      3.  Procedures for challenging any liability for [real property transfer] any tax, penalties or interest and for requesting refunds of any erroneously paid [real property transfer] tax, including the steps for appealing a denial thereof.

      Sec. 12.  NRS 375.290 is hereby amended to read as follows:

      375.290  A taxpayer is entitled to receive on any overpayment of [the real property transfer] any tax imposed by this chapter a refund together with interest at a rate determined pursuant to NRS 17.130. No interest is allowed on a refund of any penalties or interest on the [real property transfer] tax that is paid by a taxpayer.


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ê2003 Statutes of Nevada, Page 3491 (Chapter 509, SB 370)ê

 

      Sec. 13.  NRS 375.300 is hereby amended to read as follows:

      375.300  The county recorder shall provide a taxpayer with a response to any written request submitted by the taxpayer that relates to a [real property transfer] tax imposed by this chapter within 30 days after the county treasurer receives the request.

      Sec. 14.  NRS 375.330 is hereby amended to read as follows:

      375.330  1.  The county recorder may waive any [real property transfer] tax, penalty and interest owed by the taxpayer pursuant to this chapter if the taxpayer meets the criteria adopted by regulation. If a waiver is granted pursuant to this subsection, the county shall prepare and maintain on file a statement that contains:

      (a) The reason for the waiver;

      (b) The amount of the tax, penalty and interest owed by the taxpayer; and

      (c) The amount of the tax, penalty and interest waived by the county.

      2.  If the county recorder or a designated hearing officer finds that the failure of a person to make a timely payment of [the real property transfer] any tax imposed is the result of circumstances beyond his control and occurred despite the exercise of ordinary care and without intent to avoid such payment, the county recorder may relieve him of all or part of any interest or penalty or both.

      3.  If a person proves to the satisfaction of the county recorder that he has in good faith remitted the [real property transfer] tax in reliance upon written advice provided by an officer or employee of the county recorder, an opinion of the district attorney or Attorney General, or the written results of an audit of his records conducted by the county recorder, the county recorder may not require the taxpayer to pay delinquent taxes, penalties or interest if the county recorder determines after the completion of a subsequent audit that the taxes the taxpayer remitted were deficient.

      Sec. 15.  Chapter 226 of NRS is hereby amended by adding thereto a new section to read as follows:

      There is hereby created an account for the rebate of the governmental services tax to senior citizens within the State General Fund. The State Treasurer shall administer the account.

      Sec. 16.  NRS 388.750 is hereby amended to read as follows:

      388.750  1.  An educational foundation:

      (a) Shall comply with the provisions of chapter 241 of NRS;

      (b) Except as otherwise provided in subsection 2, shall make its records public and open to inspection pursuant to NRS 239.010; and

      (c) Is exempt from the [tax on transfers of real property] taxes imposed by NRS 375.020 and 375.025 and section 1 of this act pursuant to subsection 14 of NRS 375.090.

      2.  An educational foundation is not required to disclose the names of the contributors to the foundation or the amount of their contributions. The educational foundation shall, upon request, allow a contributor to examine, during regular business hours, any record, document or other information of the foundation relating to that contributor.

      3.  As used in this section, “educational foundation” means a nonprofit corporation, association or institution or a charitable organization that is:

      (a) Organized and operated exclusively for the purpose of supporting one or more kindergartens, elementary schools, junior high or middle schools or high schools, or any combination thereof;


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ê2003 Statutes of Nevada, Page 3492 (Chapter 509, SB 370)ê

 

      (b) Formed pursuant to the laws of this state; and

      (c) Exempt from taxation pursuant to 26 U.S.C. § 501(c)(3).

      Sec. 17.  NRS 396.405 is hereby amended to read as follows:

      396.405  1.  A university foundation:

      (a) Shall comply with the provisions of chapter 241 of NRS;

      (b) Except as otherwise provided in subsection 2, shall make its records public and open to inspection pursuant to NRS 239.010;

      (c) Is exempt from the [tax on transfers of real property] taxes imposed by NRS 375.020 and 375.025 and section 1 of this act pursuant to subsection [14] 15 of NRS 375.090; and

      (d) May allow a president or an administrator of the university or community college which it supports to serve as a member of its governing body.

      2.  A university foundation is not required to disclose the name of any contributor or potential contributor to the university foundation, the amount of his contribution or any information which may reveal or lead to the discovery of his identity. The university foundation shall, upon request, allow a contributor to examine, during regular business hours, any record, document or other information of the foundation relating to that contributor.

      3.  As used in this section, “university foundation” means a nonprofit corporation, association or institution or a charitable organization that is:

      (a) Organized and operated exclusively for the purpose of supporting a university or a community college;

      (b) Formed pursuant to the laws of this state; and

      (c) Exempt from taxation pursuant to 26 U.S.C. § 501(c)(3).

      Sec. 18.  NRS 561.355 is hereby amended to read as follows:

      561.355  1.  The Plant Industry Program is hereby established.

      2.  The following fees and money must be used in the Plant Industry Program:

      (a) Fees and money collected pursuant to the provisions of chapters 552, 555, 581, 582 and 587 of NRS.

      (b) Laboratory fees collected for the diagnosis of infectious, contagious and parasitic diseases of bees, as authorized by NRS 561.305, and as are necessary pursuant to the provisions of chapter 552 of NRS.

      (c) Laboratory fees collected for the diagnosis of infectious, contagious and destructive diseases of agricultural commodities, and infestations thereof by pests, as authorized by NRS 561.305, and as may be necessary pursuant to the provisions of chapter 554 of NRS . [554.010 to 554.240, inclusive.]

      (d) Laboratory fees collected for the survey and identification of insect pests, plant diseases and noxious weeds, as authorized by NRS 561.305, and as may be necessary pursuant to the provisions of NRS 555.005 to 555.249, inclusive.

      (e) Laboratory fees collected for the testing of the purity and germinating power of agricultural seeds, as authorized by NRS 561.305, and as may be necessary pursuant to the provisions of NRS 587.015 to 587.123, inclusive.

      (f) Money received from a tax on the transfer of real property imposed pursuant to section 1 of this act.

      3.  Expenditures for the Plant Industry Program must be made only for the purposes of carrying out the provisions of this chapter and chapters 552, 554, 555, 581, 582 and 587 of NRS.


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ê2003 Statutes of Nevada, Page 3493 (Chapter 509, SB 370)ê

 

      4.  The money credited to the Program pursuant to section 1 of this act must be allocated for disbursement to each county in proportion to the amount of money collected in that county and must only be used:

      (a) By the Department for programs on the exclusion, detection and control of:

             (1) Invasive species; and

             (2) Endemic pests and weeds designated by the Director; and

      (b) For grants to local governments and nonprofit organizations for the control or management of such species, pests and weeds.

      5.  Not later than 30 days after the beginning of each fiscal year, the Department shall present to each board of county commissioners for approval by each such board proposed programs for the exclusion, detection and control of invasive species and endemic pests and weeds designated by the Director that involve cooperative action between the Department and the county.

      6.  As used in this section:

      (a) “Invasive species” means any living organism not native to this state that may present a threat to the economy, environment or public health of this state.

      (b) “Local government” has the meaning ascribed to it in NRS 237.050.

      Sec. 19.  This act becomes effective on July 1, 2003.

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CHAPTER 510, SB 459

Senate Bill No. 459–Committee on Human Resources and Facilities

 

CHAPTER 510

 

AN ACT relating to the Fund for a Healthy Nevada; revising the amount of the limit on the income of a senior citizen to qualify for a subsidy for the provision of prescription drugs and pharmaceutical services from money in the Fund for a Healthy Nevada; and providing other matters properly relating thereto.

 

[Approved: June 12, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 439.665 is hereby amended to read as follows:

      439.665  1.  The Department [shall] may enter into contracts with private insurers who transact health insurance in this state to arrange for the availability, at a reasonable cost, of policies of health insurance that provide coverage to senior citizens for prescription drugs and pharmaceutical services.

      2.  Within the limits of the money available for this purpose in the Fund for a Healthy Nevada, a senior citizen who is not eligible for Medicaid and who [purchases] is eligible for a policy of health insurance that is made available pursuant to subsection 1 is entitled to an annual grant from the [Trust] Fund to subsidize the cost of that insurance, including premiums and deductibles, if he has been domiciled in this state for at least 1 year immediately preceding the date of his application and :


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ê2003 Statutes of Nevada, Page 3494 (Chapter 510, SB 459)ê

 

deductibles, if he has been domiciled in this state for at least 1 year immediately preceding the date of his application and :

      (a) If the senior citizen is single, his [household] income is not over $21,500 [.] ; or

      (b) If the senior citizen is married, his household income is not over $28,660.

The monetary amounts set forth in this subsection must be adjusted for each fiscal year by adding to each amount the product of the amount shown multiplied by the percentage increase in the Consumer Price Index from December 2002 to the December preceding the fiscal year for which the adjustment is calculated.

      3.  The subsidy granted pursuant to this section must not exceed the annual cost of insurance that provides coverage for prescription drugs and pharmaceutical services, including premiums and deductibles.

      4.  A policy of health insurance that is made available pursuant to subsection 1 must provide for:

      (a) A copayment of not more than $10 per prescription drug or pharmaceutical service that is generic as set forth in the formulary of the insurer; and

      (b) A copayment of not more than $25 per prescription drug or pharmaceutical service that is preferred as set forth in the formulary of the insurer.

      5.  The Department may waive the eligibility requirement set forth in subsection 2 regarding household income upon written request of the applicant [if the circumstances of the applicant’s household have changed as a result of:] or enrollee based on one or more of the following circumstances:

      (a) Illness;

      (b) Disability; or

      (c) Extreme financial hardship , [based on a significant reduction of income,] when considering the [applicant’s] current financial circumstances [.] of the applicant or enrollee.

An applicant or enrollee who requests such a waiver shall include with that request all medical and financial documents that support his request.

      6.  If the Federal Government provides any coverage of prescription drugs and pharmaceutical services for senior citizens who are eligible for a subsidy pursuant to subsections 1 to 5, inclusive, the Department may, upon approval of the Legislature, or the Interim Finance Committee if the Legislature is not in session, change any program established pursuant to NRS 439.635 to 439.690, inclusive, and otherwise provide assistance with prescription drugs and pharmaceutical services for senior citizens within the limits of the money available for this purpose in the Fund for a Healthy Nevada.

      7.  The provisions of subsections 1 to 5, inclusive, do not apply if the Department provides assistance with prescription drugs and pharmaceutical services for senior citizens pursuant to subsection 6.

      Sec. 2.  This act becomes effective on July 1, 2003.

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ê2003 Statutes of Nevada, Page 3495ê

 

CHAPTER 511, SB 489

Senate Bill No. 489–Committee on Natural Resources

 

CHAPTER 511

 

AN ACT relating to taxation; exempting from the local school support tax and certain analogous taxes solar thermal energy systems and solar lighting systems that reduce the consumption of electricity or any fossil fuel; delaying the prospective expiration of the exemption from those taxes for systems that use renewable energy to generate electricity; and providing other matters properly relating thereto.

 

[Approved: June 12, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 374.307 is hereby amended to read as follows:

      374.307  1.  There are exempted from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption in this state of, any [product] :

      (a) Product or system designed or adapted to use renewable energy to generate electricity and all of its integral components.

      (b) Solar thermal energy system that reduces the consumption of electricity or any fossil fuel, and all of its integral components.

      (c) Solar lighting system that reduces the consumption of electricity or any fossil fuel, and all of its integral components.

      2.  As used in this section:

      (a) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

             (1) Agricultural crops and agricultural wastes and residues;

             (2) Wood and wood wastes and residues;

             (3) Animal wastes;

             (4) Municipal wastes; and

             (5) Aquatic plants.

      (b) “Fuel cell” means a device or contrivance that, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

      (c) “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

             (1) Biomass;

             (2) Fuel cells;

             (3) Geothermal energy;

             (4) Solar energy;

             (5) Waterpower; and

             (6) Wind.

The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

      (d) “Solar lighting system” means a system of related components that:

             (1) Uses solar energy to provide indoor lighting; and

             (2) Is designed to work as an integral package such that the system is not complete without one of its related components.


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ê2003 Statutes of Nevada, Page 3496 (Chapter 511, SB 489)ê

 

      (e) “Solar thermal energy system” means a system of related components that:

             (1) Uses solar radiation to heat water; and

             (2) Is designed to work as an integral package such that the system is not complete without one of its related components.

      (f) “System designed or adapted to use renewable energy to generate electricity” means a system of related components:

             (1) From which at least 75 percent of the electricity generated is produced from one or more sources of renewable energy; and

             (2) That is designed to work as an integral package such that the system is not complete without one of its related components.

      Sec. 2.  Section 3 of chapter 330, Statutes of Nevada 2001, at page 1538, is hereby amended to read as follows:

      Sec. 3.  1.  This section becomes effective on July 1, 2001.

      2.  Sections 1 and 2 of this act become effective on July 1, 2001, for the purpose of adopting regulations and on January 1, 2002, for all other purposes.

      3.  This act expires by limitation on June 30, [2003.] 2005.

      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 on July 1, 2003, and expires by limitation on June 30, 2005.

________

 

CHAPTER 512, SB 507

Senate Bill No. 507–Committee on Finance

 

CHAPTER 512

 

AN ACT relating to projects of capital improvement; requiring the repayment for certain projects by certain state agencies; authorizing certain expenditures by the State Public Works Board; levying a property tax to support the consolidated bond interest and redemption fund; making appropriations; and providing other matters properly relating thereto.

 

[Approved: June 12, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  The State Board of Finance shall issue general obligation bonds of the State of Nevada in the face amount of not more than $150,090,519 for the capital improvements summarized in this section. This amount is allocated to projects numbered and described in the executive budget for the Fiscal Years 2003-2004 and 2004-2005 or otherwise described as follows:

 


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ê2003 Statutes of Nevada, Page 3497 (Chapter 512, SB 507)ê

 

      Description                                                                  Project No.         Amount

 

      1.  Capital Improvements for the Department of Corrections:

             Renovate windows and showers at NNCC........ 03-M17         $942,007

             Exercise area security improvements for HDSP 03-M18              31,185

             Relocate water lines away from transformer at SDCC 03-M19  71,735

             Groundwater protection projects at HCC & CCC 03-M20     1,107,981

             Install heat exchanger on cooling system at HDSP 03-M35      280,376

             Repair condensate return system at SDCC........ 03-M37        1,488,344

             Upgrade pedestrian entrance area at SDCC...... 03-M38              61,662

             Construct weather enclosure for housing unit 10 gun post at NSP 03M-48 131,555

             Replace existing cell doors in housing units at NSP 03-M49      155,178

             Repair and upgrade exercise areas units 1-8 at ESP 03-M70     245,904

             Culinary repairs at LCC......................................... 03-M71           204,348

      2.  Capital Improvements for the Office of the Military:

             Readiness center for Nevada National Guard at Henderson         03-P5      $440,129

      3.  Capital Improvements for the University and Community College System of Nevada:

             TMCC Dandini Campus fire flow pump station upgrade             03-C2      $540,692

             Furnishings, equipment, and buildout of TMCC hi-tech center at the Redfield Campus         03-C3......................................................................... 1,646,116

             Furnishings and equipment for the CCSN Cheyenne Campus telecommunications building 03-C4......................................................................... 4,000,000

             Construction of health sciences building on West Charleston Campus of CCSN      03-C21....................................................................... 19,705,335

             UNLV science engineering and technology complex construction 03-C23  35,326,401

             Maxey Science Center, Building Renovations and Addition, DRI 03-C91L               1,900,000

             Campus-wide Fire and Life-Safety Retrofits, UNR 03-C94L    750,000

             Land Acquisition for Women’s Athletics Program, UNR          03-C95L      5,000,000


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ê2003 Statutes of Nevada, Page 3498 (Chapter 512, SB 507)ê

 

             Renovation of Former Mesquite High School for CSSN......... 03-C96L      $750,000

             Security System and Equipment Upgrades at Various Campuses, CCSN  03-C97L                500,000

             Establishment of Oral Health Clinic, GBC....... 03-C98L           250,000

             Study and Design of Heart Transplant Facility and Construction of Embalming Facility and Plasticization Lab, UNR School of Medicine 03-C99L     1,700,000

             Design electrical and industrial technology building at GBC      03-P5.6      132,977

             Math and Science Center Programming, Schematic Design and Preliminary Cost Estimate, UNR............................................................................ 03-P10L           500,000

             Renovation of Getchell Library, Programming 03-P11L           400,000

             Student Services Addition, UNLV, Design through Construction Documents            03-P12L............................................................................. 500,000

             Campus Improvements-UCCSN System........... 03-U1L           100,000

             Campus Improvements-UNLV............................ 03-U2L        3,231,261

             Campus Improvements-UNR............................... 03-U3L        3,796,839

             Campus Improvements-CCSN............................. 03-U4L           976,542

             Campus Improvements-DRI................................ 03-U5L           301,755

             Campus Improvements-GBC............................... 03-U6L           251,953

             Campus Improvements-TMCC........................... 03-U7L           696,650

             Campus Improvements-WNCC........................... 03-U8L           645,000

      4.  Capital Improvements for the Department of Conservation and Natural Resources:

             Rehabilitate western region headquarters, Division of Forestry 03-C16      $604,709

             Replace floor at Jean Conservation Camp........ 03-M24              16,694

             Expand shop at Pioche Conservation Camp.... 03-M52           149,282

      5.  Capital Improvements for the Department of Human Resources:

             150-bed psychiatric hospital at SNAMHS............ 03-C1   $32,168,576

             New metal building for recreational use at Caliente Youth Center 03-C17 464,065

             Upgrade electric strike door-release system in 10 buildings at Desert Regional Center             03-M8............................................................................. 196,553

             Install fire sprinklers in the multi-purpose building at NYTC     03-M11      72,956


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ê2003 Statutes of Nevada, Page 3499 (Chapter 512, SB 507)ê

 

             Renovate swimming pool at the Caliente Youth Center 03-M26 $303,389

             Renovate heating systems in cottages at Caliente Youth Center 03-M27   558,832

             Replace hot water tanks in cottages at Caliente Youth Center 03-M27A    306,399

             Replace kitchenettes and appliances at Caliente Youth Center 03-M54     220,384

             Renovate central kitchen-NNAMHS.................. 03-M63        1,272,422

             Remodel kitchen, replace equipment, and upgrade floors at Lake’s Crossing           03-M64 671,203

             Feasibility study for a 50-bed forensic facility-SNAMHS              03-P4      143,547

      6.  Capital Improvements for the Department of Administration:

             Phase II of the remodel of building #17 at the Stewart facility    03-C7      $268,759

             Lease-purchase state office building for the Department of Conservation and Natural Resources.............................................................................. 03-C50        3,100,000

             Repair exterior tile at the Grant Sawyer state office building       03-M1      251,162

             Repair exterior sidewalks at Grant Sawyer state office building 03-M2      45,904

             Seismic strengthening of the capitol annex.......... 03-M4           443,236

             HVAC system upgrades for the capitol building and the capitol building annex       03-M21 560,506

             HVAC system upgrades at the State Printing facility 03-M22   667,902

             Repairs to stucco at Library and Archives building 03-M23        47,444

             Upgrade temperature control system in buildings #6 and 107 at Stewart facility      03-M51 773,319

             Structural evaluation of Kinkead building, Carson City 03-P1    65,323

             Facility use study for Campos building, Las Vegas 03-P2            35,000

             Statewide Roofing Program...................................... 03-S1        2,323,780

             Statewide ADA Program............................................ 03-S2           637,376

             Statewide Fire Sprinkler Program............................. 03-S3        2,347,192

             Statewide Advance Planning Program.................... 03-S4           303,750

             Statewide Paving Program........................................ 03-S5        1,333,333

             Statewide Asbestos, Lead, Mold, IAQ Program.... 03-S6           264,085


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ê2003 Statutes of Nevada, Page 3500 (Chapter 512, SB 507)ê

 

      7.  Capital Improvements for the Department of Information Technology:

             Addition to and renovation of state computer facility 03-C10 $5,167,283

             Microwave renovations on mountaintop communications facility 03-C11                990,134

             Extend state’s communications backbone to the Stewart Complex 03-C13              505,324

             Building security enhancements at all DoIT facilities 03-M46    70,575

      8.  Capital Improvements for the Department of Cultural Affairs:

             Design for improved ADA access at Nevada State Museum in Carson City              03-C19  $28,657

             New office for Comstock Historic District Commission in Virginia City     03-C52  701,273

             Deferred maintenance projects at Nevada State Museum in Las Vegas    03-M12 156,480

             Upgrade temperature controls, valves and ventilation boxes at the Nevada State Museum and Historical Society building in Las Vegas...... 03-M47           275,170

             Exterior repairs, flooring replacements and HVAC Upgrades at Nevada State Museum in Carson City..................................................................... 03-M67        1,474,560

      9.  Capital Improvements for the Department of Public Safety:

             New state emergency operations center-Carson City 03-C6    $571,175

      10.  Capital Improvements for the Department of Agriculture:

             Design new office building........................................ 03-P3         $270,881

      11.  Capital Improvements for the Commission on Economic Development:

             Purchase and renovation of 120 miles of Nevada Northern Railroad Track             03-C92L.......................................................................... $500,000

      Sec. 2.  Any remaining balance of the allocated amounts authorized in section 1 of this act must not be committed for expenditure after June 30, 2007, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      Sec. 3.  1.  The State Board of Finance may issue the bonds authorized pursuant to section 1 of this act at the time deemed appropriate by the Board based on the schedule established for the completion of the projects described in that section.


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ê2003 Statutes of Nevada, Page 3501 (Chapter 512, SB 507)ê

 

based on the schedule established for the completion of the projects described in that section.

      2.  The State Controller may advance temporarily from the State General Fund, upon the approval of the Chief of the Budget Division of the Department of Administration, to the State Public Works Board, until the date on which bonds authorized by section 1 of this act are sold, amounts necessary to facilitate the start of the projects enumerated in section 1 of this act. The State Controller shall not advance more than the face amount of the bonds authorized to be issued. The advanced amounts must be repaid immediately to the State General Fund upon the sale of the bonds.

      3.  The Chief of the Budget Division of the Department of Administration shall notify the State Controller and the Fiscal Analysis Division of the Legislative Counsel Bureau of the approval of an advance from the State General Fund to the State Public Works Board pursuant to subsection 2.

      Sec. 4.  Commencing on July 1, 2005, the Department of Information Technology shall repay in annual installments to the State Treasurer for deposit to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund the cost of the following projects authorized pursuant to section 1 of this act:

      1.  Project 03-C10, addition to and renovation of state computer facility in Carson City;

      2.  Project 03-C11, microwave renovations on mountaintop communications facilities;

      3.  Project 03-C13, extend state’s communications backbone to the Stewart Complex; and

      4.  Project 03-M46, building security enhancements at all DoIT facilities.

Each installment must be equal to 5 percent of the total cost of the completed project, including the costs of debt service that are incurred.

      Sec. 5.  Commencing on July 1, 2005, the State Purchasing Division of the Department of Administration shall repay in annual installments to the State Treasurer for deposit to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund its portion of the cost of the project numbered and described in the executive budget for Fiscal Years 2003-2004 and 2004-2005 or otherwise described as project 03-S1, statewide roofing program. Each installment must be equal to 5 percent of the total cost of the completed project, including the costs of debt service that are incurred.

      Sec. 6.  There is hereby appropriated from the State Highway Fund to the State Public Works Board the sum of $16,685,635 to support the Board in carrying out the program of capital improvements summarized in this section. This amount is allocated to projects numbered and described in the executive budget for the Fiscal Years 2003-2004 and 2004-2005 or otherwise described as follows:

 

      Description                                                                  Project No.         Amount

 

      1.  Expand shop and communications facilities at new NHP headquarters building in Las Vegas................................................................................ 03-C8         $563,305


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ê2003 Statutes of Nevada, Page 3502 (Chapter 512, SB 507)ê

 

      2.  New DMV field services office in North Las Vegas 03-C9     $9,626,364

      3.  Land acquisition for new DMV office in south Reno 03-C15 $4,369,285

      4.  West Flamingo DMV intersection payment......... 03-C22           $33,996

      5.  Install new counters at East Sahara DMV office 03-M32     $1,125,451

      6.  Carson City DMV HVAC....................................... 03-M91         $947,234

      7.  Statewide Roofing Program....................................... 03-S1           $20,000

      Sec. 7.  Any remaining balance of the appropriations made by section 6 of this act must not be committed for expenditure after June 30, 2007, and reverts to the State Highway Fund as soon as all payments of money committed have been made.

      Sec. 8.  The amounts appropriated pursuant to section 6 of this act from the State Highway Fund must be allocated by the State Controller as the money is required for the projects and must not be transferred to the projects from the State Highway Fund until required to make contract payments.

      Sec. 9.  The State Public Works Board shall transfer the sum of $314,468 from the amounts allocated or appropriated pursuant to section 1 of chapter 542, Statutes of Nevada 1999, at pages 2822 to 2836, inclusive, from the projects identified in this section to projects as authorized in section 11 of this act.

 

      Description                                                                  Project No.         Amount

 

      1.  Remodel Carson City Courthouse for the Office of the Attorney General  99-C4     $24,000

      2.  Repair 21 housing unit wing gates, Southern Desert Correctional Center     99-M29 $123,000

      3.  Improve shower stalls in housing units, Nevada State Prison     99-M30      $80,000

      4.  Sewer line upgrades, Phase II at Stewart Complex, Carson City 99-M5      $17,411

      5.  Replace fencing and gates, SNAMHS, Las Vegas 99-M10         $33,467

      6.  Exterior safety lighting and pool cover, SNCAS, Las Vegas       99-M18      $22,207

      7.  Advance planning through construction documents for addition and remodel of Special Children’s Clinic, Reno........................................................ 99-S4B           $14,383

      Sec. 10.  The State Public Works Board shall transfer the sum of $2,501,619 from the amounts allocated pursuant to sections 1 and 4 of chapter 585, Statutes of Nevada 2001, at pages 2991 to 2996, inclusive, from the projects identified in this section to projects as authorized in section 11 of this act:

 


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ê2003 Statutes of Nevada, Page 3503 (Chapter 512, SB 507)ê

 

      Description                                                                  Project No.         Amount

 

      1.  New State Motor Pool building................................. 01-C4      $2,436,435

      2.  Upgrade exercise areas of units 1-8 at ESP......... 01-M30           $13,412

      3.  Replace windows in housing units 1-4 at NNCC 01-M33           $47,825

      4.  Upgrade pedestrian entrance area at SDCC....... 01-M38              $3,947

      Sec. 11.  The State Public Works Board shall use the $2,816,087 transferred from the projects identified in sections 9 and 10 of this act to support the Board in carrying out the program of capital improvements summarized in this section. This amount is allocated to projects numbered and described in the executive budget for the Fiscal Years 2003-2004 and 2004-2005 or otherwise described as follows:

 

      Description                                                                  Project No.         Amount

 

      1.  150-bed psychiatric hospital at SNAMHS............. 03-C1           $70,057

      2.  Phase II of the remodel of building #17 at the Stewart facility     03-C7      $2,477,846

      3.  Repair exterior tile at the Grant Sawyer state office building        03-M1      $65,184

      4.  Renovate windows and showers at NNCC ........ 03-M17         $203,000

      Sec. 12.  Any remaining balance of the allocated amounts in section 11 of this act must not be committed for expenditure after June 30, 2007, and reverts to the fund of origin as soon as all payments of money committed have been made.

      Sec. 13.  The State Public Works Board shall transfer the sum of $1,177,283 from the amounts appropriated pursuant to section 12 of chapter 585, Statutes of Nevada 2001, at page 2998, for project 01-M1, Renovate HVAC system in east wing of DMV & PS building, Carson City, to the project numbered and described in the executive budget for the Fiscal Years 2003-2004 and 2004-2005 or otherwise described as project 03-M91, Carson City DMV HVAC.

      Sec. 14.  Any remaining balance of the allocated amounts in section 13 of this act must not be committed for expenditure after June 30, 2007, and reverts to the fund of origin as soon as all payments of money committed have been made.

      Sec. 15.  Expenditure of the following sums not appropriated from the State General Fund or the State Highway Fund is hereby authorized for the following projects numbered and described in the executive budget for the Fiscal Years 2003-2004 and 2004-2005 or otherwise described as follows:

 

      Description                                                                  Project No.         Amount

 

      1.  Rehabilitate state fish hatcheries, phase II.......... 03-C12   $14,500,000


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ê2003 Statutes of Nevada, Page 3504 (Chapter 512, SB 507)ê

 

      2.  Petroleum laboratory addition-Department of Agriculture          03-C18      $1,216,582

      3.  Construction of health sciences building on West Charleston Campus of CCSN       03-C21  $500,000

      4.  Science engineering and technology complex construction, UNLV 03-C23 $25,000,000

      5.  Maxey Science Center, Building Renovations and Addition, DRI 03-C91L                $200,000

      6.  Readiness center for Nevada National Guard in Henderson          03-P5      $813,000

      7.  Statewide Asbestos, Lead, Mold, IAQ Program..... 03-S6         $500,000

      Sec. 16.  The State Public Works Board shall not execute a contract for the construction of the following projects until the Board has determined that the money authorized for those projects pursuant to section 15 of this act is available for expenditure for those projects and cannot be expended for other purposes:

 

      Description                                                                          Project No.

 

      1.  Science engineering and technology complex construction, UNLV 03-C23

      2.  Maxey Science Center, Building Renovations and Addition, DRI 03-C91L

      Sec. 17.  1.  The State Controller may advance temporarily from the State General Fund, upon the approval of the Chief of the Budget Division of the Department of Administration, to the State Public Works Board, until the date on which the sums not appropriated from the State General Fund or the State Highway Fund for project 03-P5, readiness center for Nevada National Guard in Henderson, are received, amounts necessary to facilitate the start of the project. The advanced amounts must be repaid immediately to the State General Fund upon the receipt of the sums not appropriated from the State General Fund or the State Highway Fund.

      2.  The Chief of the Budget Division of the Department of Administration shall notify the State Controller and the Fiscal Analysis Division of the Legislative Counsel Bureau of the approval of an advance from the State General Fund to the State Public Works Board pursuant to subsection 1.

      Sec. 18.  The State Public Works Board shall carry out the provisions of this act as provided in chapter 341 of NRS. The Board shall ensure that qualified persons are employed to accomplish the authorized work. Every contract pertaining to the work must be approved by the Attorney General.

      Sec. 19.  All state and local governmental agencies involved in the design and construction of the projects enumerated in this act shall cooperate with the State Public Works Board to expedite the completion of the project.

      Sec. 20.  1.  An ad valorem tax of 16 cents on each $100 of assessed valuation of taxable property is hereby levied for the fiscal year commencing July 1, 2003, and ending June 30, 2004, and an ad valorem tax of 16 cents on each $100 of assessed valuation of taxable property is hereby levied for the fiscal year commencing July 1, 2004, and ending June 30, 2005. The taxes levied must be collected in the manner provided in chapter 361 of NRS on all taxable property in this state including the net proceeds of minerals and excluding such property as is by law exempt from taxation.


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ê2003 Statutes of Nevada, Page 3505 (Chapter 512, SB 507)ê

 

taxable property in this state including the net proceeds of minerals and excluding such property as is by law exempt from taxation. Notwithstanding the provisions of NRS 361.453 to the contrary, 1 cent of the levies imposed pursuant to this subsection must not be included in calculating the limitation set forth in subsection 1 of NRS 361.453 on the total ad valorem tax levied for all public purposes.

      2.  An ad valorem tax of 1 cent on each $100 of assessed valuation of taxable property is hereby levied for the fiscal year commencing July 1, 2003, and ending June 30, 2004, and an ad valorem tax of 1 cent on each $100 of assessed valuation of taxable property is hereby levied for the fiscal year commencing July 1, 2004, and ending June 30, 2005. The taxes levied must be collected in the manner provided in chapter 361 of NRS on all taxable property in this state including the net proceeds of minerals and excluding such property as is by law exempt from taxation. The proceeds of the taxes levied pursuant to this subsection must be used exclusively for the repayment of bonded indebtedness issued pursuant to the provisions of chapter 6, Statutes of Nevada 2001, Special Session. Notwithstanding the provisions of NRS 361.453 to the contrary, the levies imposed pursuant to this subsection must not be included in calculating the limitation set forth in subsection 1 of NRS 361.453 on the total ad valorem tax levied for all public purposes.

      3.  The proceeds of the taxes levied by this section are hereby appropriated for each fiscal year to the Consolidated Bond Interest and Redemption Fund to discharge the obligations of the State of Nevada as they are respectively due in that fiscal year. Any balance of the money appropriated by this section remaining at the end of the respective fiscal years does not revert to the State General Fund.

      Sec. 21.  1.  On or before July 1, 2003, and July 1, 2004, the State Controller shall estimate the amount of proceeds of the taxes levied by section 20 of this act. If the amount is less than the total obligation of the State of Nevada for payment of the interest on and principal of bonds which will become due in the fiscal year, he shall reserve in the State General Fund an amount which is sufficient to pay the remainder of the total obligation. The State Controller may revise the estimate and amount reserved.

      2.  If the money in the Consolidated Bond Interest and Redemption Fund is insufficient to pay those obligations as they become due, the State Controller shall cause the money in reserve to be transferred from the State General Fund to the Consolidated Bond Interest and Redemption Fund. The amount reserved is hereby contingently appropriated for that purpose. Any balance of the sums appropriated by this subsection remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal years and reverts to the State General Fund as soon as all payments of money committed have been made.

      3.  The State Controller shall report to the Legislature or, if the Legislature is not in session, to the Interim Finance Committee:

      (a) The amount of any estimate made pursuant to subsection 1 and the amount of money reserved in the State General Fund based upon the estimate;

      (b) The amount of money transferred from the State General Fund pursuant to subsection 2; and

      (c) The amount of money which reverts to the State General Fund pursuant to subsection 2.


…………………………………………………………………………………………………………………

ê2003 Statutes of Nevada, Page 3506 (Chapter 512, SB 507)ê

 

      Sec. 22.  The State Board of Finance, in its capacity as the State General Obligation Bond Commission and to the extent that money is available, shall pay the expenses related to the issuance of general obligation bonds approved by the 72nd Session of the Nevada Legislature from the proceeds of those bonds.

      Sec. 23.  Expenditure of the following sums not appropriated from the State General Fund or the State Highway Fund is hereby authorized from the Consolidated Bond Interest and Redemption Fund in the amount of $95,917,942 for the fiscal year beginning July 1, 2003, and ending June 30, 2004, and in the amount of $98,844,192 for the fiscal year beginning July 1, 2004, and ending June 30, 2005.

      Sec. 24.  With the approval of the Interim Finance Committee, the State Public Works Board and the University and Community College System of Nevada may transfer appropriated and authorized money from one project to another within the same agency or within the University and Community College System of Nevada for those projects listed in sections 1, 6, 11, 15 and 25 of this act.

      Sec. 25.  The money collected pursuant to the annual tax on slot machines imposed pursuant to NRS 463.385 that is distributed to the Special Capital Construction Fund for Higher Education, except any amount of that money which is needed to pay the principal and interest on bonds, is appropriated to the State Public Works Board for the following capital improvement projects for the University and Community College System of Nevada:

 

      Description                                                              Project No.             Amount

 

      Campus Improvements-UNLV............................... 03-U2L          $1,821,147

      Campus Improvements-UNR................................. 03-U3L          $2,438,630

      Campus Improvements-CCSN............................... 03-U4L             $282,107

      Campus Improvements-DRI................................... 03-U5L             $109,972

      Campus Improvements-GBC................................. 03-U6L               $45,187

      Campus Improvements-TMCC.............................. 03-U7L             $302,957

      Sec. 26.  Any remaining balance of the appropriation made by section 25 of this act must not be committed for expenditure after June 30, 2007, and reverts to the fund of origin as soon as all payments of money committed have been made.

      Sec. 27.  Section 3 of chapter 478, Statutes of Nevada 1997, as last amended by section 38 of chapter 585, Statutes of Nevada 2001, at pages 3007 and 3008, is hereby amended to read as follows:

      Sec. 3.  1.  Except as otherwise provided in this section, any remaining balance of the appropriations made by section 1 of chapter 478, Statutes of Nevada 1997, at page 1827, must not be committed for expenditure after June 30, 2001, and reverts to the State General Fund as soon as all payments of money committed have been made.

      2.  Except as otherwise provided in subsection 3, any remaining balance of the appropriations made by section 1 of chapter 478, Statutes of Nevada 1997, at page 1827, for projects enumerated in section 17 of chapter 542, Statutes of Nevada 1999, at page 2830, must not be committed for expenditure after June 30, 2003, and reverts to the State General Fund as soon as all payments of money committed have been made.


…………………………………………………………………………………………………………………

ê2003 Statutes of Nevada, Page 3507 (Chapter 512, SB 507)ê

 

      3.  Any remaining balance of the appropriations made by section 1 of chapter 478, Statutes of Nevada 1997, at page 1827, for projects enumerated in section 19 of [this act,] chapter 585, Statutes of Nevada 2001, at page 3000, must not be committed for expenditure after June 30, 2005, and reverts to the State General Fund as soon as all payments of money committed have been made.

      4.  Any remaining balance of the appropriations made by section 1 of chapter 478, Statutes of Nevada 1997, at page 1827, for the following projects, must not be committed for expenditure after June 30, 2002, and reverts to the State General Fund as soon as all payments of money committed have been made:

 

       Description                                                                            Project No.

 

       (a) Chapel, southern Nevada veterans’ cemetery................. 97-C20

       (b) Phase III expansion, southern Nevada veterans’ cemetery 97-C20L

       (c) Replace domestic water supply line, SNMRS.................. 97-M10

       (d) Replace doors and locks, housing units 1-3, NNCC....... 97-M27

       (e) Statewide fire sprinkler program............................................ 97-S3

       (f) Statewide paving....................................................................... 97-S5

       (g) Campus improvements, TMCC............................................ 97-U7

 

      5.  Any remaining balance of the appropriations made by section 1 of chapter 478, Statutes of Nevada 1997, at page 1827, for project 97-C16, southern Nevada veterans’ home, must not be committed for expenditure after June 30, [2001,] 2004, and reverts to the State General Fund as soon as all payments of money committed have been made.

      Sec. 28.  Section 11 of chapter 478, Statutes of Nevada 1997, as last amended by section 40 of chapter 585, Statutes of Nevada 2001, at page 3008, is hereby amended to read as follows:

      Sec. 11.  1.  Except as otherwise provided in this section, any remaining balance of the allocated amounts authorized in section 10 of chapter 478, Statutes of Nevada 1997, at page 1832, must not be committed for expenditure after June 30, 2001, and reverts to the bond interest and redemption account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      2.  [Any] Except as otherwise provided in subsection 4, any remaining balance of the allocated amounts authorized in section 10 of chapter 478, Statutes of Nevada 1997, at page 1832, for projects enumerated in section 17 of chapter 542, Statutes of Nevada 1999, at page 2830, must not be committed for expenditure after June 30, 2003, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      3.  Any remaining balance of the allocated amounts authorized in section 10 of chapter 478, Statutes of Nevada 1997, at page 1832, for projects enumerated in section 19 of [this act,] chapter 585, Statutes of Nevada 2001, at page 3000, must not be committed for expenditure after June 30, 2005, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.


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ê2003 Statutes of Nevada, Page 3508 (Chapter 512, SB 507)ê

 

expenditure after June 30, 2005, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      4.  Any remaining balance of the allocated amounts authorized in section 10 of chapter 478, Statutes of Nevada 1997, at page 1832, for project 97-C15, Lied Library, UNLV, must not be committed for expenditure after June 30, 2005, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      Sec. 29.  Section 3 of chapter 542, Statutes of Nevada 1999, as amended by section 43 of chapter 585, Statutes of Nevada 2001, at page 3010, is hereby amended as follows:

      Sec. 3.  1.  Except as otherwise provided in [subsection 2.] this section, any remaining balance of the allocated amounts authorized in sections 1 and 2 of chapter 542, Statutes of Nevada 1999, at pages 2822 to 2826, inclusive, must not be committed for expenditure after June 30, 2003, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      2.  Any remaining balance of the allocated amounts authorized in section 1 of chapter 542, Statutes of Nevada 1999, at page 2822, for projects enumerated in section 20 of [this act,] chapter 585, Statutes of Nevada 2001, at page 3002, must not be committed for expenditure after June 30, 2005, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      3.  Any remaining balance of the allocated amounts authorized in section 1 of chapter 542, Statutes of Nevada 1999, at page 2822, for the following projects, must not be committed for expenditure after June 30, 2004, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made:

 

       Description                                                                             Project No.

 

       (a) New supply administration facility, Carson City............. 99-C3

       (b) SNAMHS, advance planning for psychiatric emergency crisis center          99-C7

       (c) Capitol complex conduit system, phase II, Carson City. 99-C8

       (d) Enclose pavilion at Veteran’s Cemetery, Fernley............ 99-C9

       (e) Law School Renovation, UNLV......................................... 99-C12

       (f) Science building on West Charleston campus, CCSN... 99-C14

       (g) Library and student center, WNCC................................... 99-C17

       (h) High-Tech learning center, Green Valley, CCSN........ 99-C28L


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ê2003 Statutes of Nevada, Page 3509 (Chapter 512, SB 507)ê

 

       (i) Statewide ADA program......................................................... 99-S2

 

      4.  Any remaining balance of the allocated amounts authorized in section 1 of chapter 542, Statutes of Nevada 1999, at page 2822, for the following projects, must not be committed for expenditure after June 30, 2005, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made:

 

       Description                                                                             Project No.

 

       (a) Lied Library Furnishings, UNLV...................................... 99-C11

       (b) Redfield campus, phase I, UNR......................................... 99-C13

       (c) Student development center, TMCC................................. 99-C16

       (d) High-Tech learning center, TMCC................................ 99-C37L

       (e) Provide second exit from dormitories and install fire sprinklers at Caliente Youth Center     99-M1

       (f) Repair/remodel multipurpose building and replace ceiling and wall covers in the gymnasium, NYTC, Elko      99-M22

       (g) Library Upgrade building data systems/wiring for Capitol Complex and Sawyer Building, Carson City and Las Vegas.................................................................................... 99-M26

       (h) Statewide asbestos, lead and indoor air quality program 99-S6

 

       5.  Any remaining balance of the allocated amounts authorized in section 1 of chapter 542, Statutes of Nevada 1999, at page 2822, for projects enumerated in section 9 of this act, must not be committed for expenditure after June 30, 2007, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      Sec. 30.  Section 9 of chapter 542, Statutes of Nevada 1999, as amended by section 45 of chapter 585, Statutes of Nevada 2001, at page 3010, is hereby amended to read as follows:

      Sec. 9.  [Any]

      1.  Except as otherwise provided in subsection 2, any remaining balance of the appropriations made by section 7 of chapter 542, Statutes of Nevada 1999, at page 2828, must not be committed for expenditure after June 30, 2003, and reverts to the State Highway Fund as soon as all payments of money committed have been made.

      2.  Any remaining balance of the appropriations made by section 7 of chapter 542, Statutes of Nevada 1999, at page 2828, for projects 99-H1, new highway patrol building, Las Vegas, and 99-H2, covered parking at highway patrol facility, Las Vegas, must not be committed for expenditure after June 30, 2005, and reverts to the fund of origin as soon as all payments of money committed have been made.


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ê2003 Statutes of Nevada, Page 3510 (Chapter 512, SB 507)ê

 

      Sec. 31.  Section 19 of chapter 542, Statutes of Nevada 1999, as amended by section 46 of chapter 585, Statutes of Nevada 2001, at pages 3010 and 3011, is hereby amended to read as follows:

      Sec. 19.  1.  Except as otherwise provided in [subsection 2,] this section, any remaining balance of the allocated amounts in section 18 of chapter 542, Statutes of Nevada 1999, at page 2830, must not be committed for expenditure after June 30, 2003, and reverts to the fund of origin as soon as all payments of money committed have been made.

      2.  Any remaining balance of the allocated amounts authorized in section 18 of chapter 542, Statutes of Nevada 1999, at page 2830, for projects enumerated in section 20 of [this act,] chapter 585, Statutes of Nevada 2001, at page 3002, must not be committed for expenditure after June 30, 2005, and reverts to the fund of origin as soon as all payments of money committed have been made.

      3.  Any remaining balance of the allocated amounts authorized in section 18 of chapter 542, Statutes of Nevada 1999, at page 2830, for the following projects must not be committed for expenditure after June 30, 2004, and reverts to the fund of origin as soon as all payments of money committed have been made:

 

       Description                                                                             Project No.

 

       (a) New supply administration facility, Office of the Military, Carson City       99-C3

       (b) Library and student services building, WNCC............... 99-C17

       (c) Statewide ADA Program........................................................ 99-S2

 

       4.  Any remaining balance of the allocated amounts authorized in section 18 of chapter 542, Statutes of Nevada 1999, at page 2830, for the following projects must not be committed for expenditure after June 30, 2005, and reverts to the fund of origin as soon as all payments of money committed have been made:

 

       Description                                                                             Project No.

 

       (a) Lied Library Furnishings, UNLV...................................... 99-C11

       (b) Omega fire sprinkler program............................................ 99-S3L

      Sec. 32.  Section 3 of chapter 585, Statutes of Nevada 2001, at page 2995, is hereby amended to read as follows:

      Sec. 3.  [Any]

      1.  Except as otherwise provided in subsection 2, any remaining balance of the appropriations made by section 2 of [this act] chapter 585, Statutes of Nevada 2001, at page 2993, must not be committed for expenditure after June 30, 2005, and reverts to the State General Fund as soon as all payments of money committed have been made.

      2.  Any remaining balance of the appropriations made by section 2 of chapter 585, Statutes of Nevada 2001, at page 2993, for the following projects, must not be committed for expenditure after June 30, 2007, and reverts to the State General Fund as soon as all payments of money committed have been made:

 


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ê2003 Statutes of Nevada, Page 3511 (Chapter 512, SB 507)ê

 

       Description                                                                             Project No.

 

       (a) Upgrade exercise areas of units 1-8 at ESP................... 01-M30

       (b) Replace windows in housing units 1-4 at NNCC.......... 01-M33

       (c) Upgrade pedestrian entrance area at SDCC.................. 01-M38

      Sec. 33.  Section 5 of chapter 585, Statutes of Nevada 2001, at page 2997, is hereby amended to read as follows:

      Sec. 5.  [Any]

      1.  Except as otherwise provided in subsection 2, any remaining balance of the allocated amounts authorized in section 4 of [this act] chapter 585, Statutes of Nevada 2001, at page 2995, must not be committed for expenditure after June 30, 2005, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      2.  Any remaining balance of the allocated amounts authorized in section 4 of chapter 585, Statutes of Nevada 2001, at page 2995, for project 01-C4, New State Motor Pool building, must not be committed for expenditure after June 30, 2007, and reverts to the Bond Interest and Redemption Account in the Consolidated Bond Interest and Redemption Fund as soon as all payments of money committed have been made.

      Sec. 34.  Section 13 of chapter 585, Statutes of Nevada 2001, at page 2998, is hereby amended to read as follows:

      Sec. 13.  [Any]

      1.  Except as otherwise provided in subsection 2, any remaining balance of the appropriations made by section 12 of [this act] chapter 585, statutes of Nevada 2001, at page 2998, must not be committed for expenditure after June 30, 2005, and reverts to the State Highway Fund as soon as all payments of money committed have been made.

      2.  Any remaining balance of the appropriations made by section 12 of chapter 585, Statutes of Nevada 2001, at page 2998, for project 01-M1, Renovate HVAC system in east wing of DMV & PS building, Carson City, must not be committed for expenditure after June 30, 2007, and reverts to the State Highway Fund as soon as all payments of money committed have been made.

      Sec. 35.  Section 15 of chapter 585, Statutes of Nevada 2001, at page 2998, is hereby amended to read as follows:

      Sec. 15.  1.  Except as otherwise provided in subsection 2, the [following expenditures are] expenditure of $15,000,000 from money credited to the account of the State of Nevada in the Unemployment Trust Fund pursuant to 42 U.S.C. § 1103 is hereby authorized to support the State Public Works Board in carrying out the program of capital improvements summarized in this section for the project numbered and described in the executive budget for the Fiscal Years 2001-2002 and 2002-2003 or otherwise described as project 01-E1, new office building for Employment Security Division . [:

      (a) From the Employment Security Fund created pursuant to NRS 612.615, $1,000,000; and


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ê2003 Statutes of Nevada, Page 3512 (Chapter 512, SB 507)ê

 

      (b) From money credited to the account of the State of Nevada in the Unemployment Trust Fund pursuant to 42 U.S.C. § 1103, $3,000,000.]

      2.  The amount which may be expended during a fiscal year pursuant to [paragraph (b) of] subsection 1 must not exceed the amount by which the aggregate of the amounts credited to the account of this state pursuant to 42 U.S.C. § 1103 during that fiscal year and the 24 preceding fiscal years exceeds the aggregate of the amounts expended pursuant to NRS 612.617 and charged against the amounts credited to the account of this state during any of those 25 fiscal years. If the provisions of this subsection limit the amount of funding authorized pursuant to [paragraph (b) of] subsection 1, the Interim Finance Committee may authorize [additional] funding from the Employment Security Fund to fund the project. The expenditures authorized pursuant to this section must not exceed [$4,000,000] $15,000,000 from all sources unless an increased amount is approved by the Legislature or, if the Legislature is not in session, by the Interim Finance Committee.

      3.  [Any remaining balance of the allocated amount in paragraph (a) of subsection 1 must not be committed for expenditure after June 30, 2005, and reverts to the Employment Security Fund as soon as all payments of money committed have been made.

      4.]  Any remaining balance of the allocated amount in [paragraph (b) of] subsection 1 must not be committed for expenditure after June 30, [2003,] 2007, and reverts to the fund of origin as soon as all payments of money committed have been made.

      Sec. 36.  Section 24 of chapter 585, Statutes of Nevada 2001, at page 3003, is hereby amended to read as follows:

      Sec. 24.  The State Public Works Board shall not execute a contract for the construction of the following projects until the Board receives the money authorized for those projects pursuant to section 23 of [this act:] chapter 585, Statutes of Nevada 2001, at page 3003:

 

       Description                                                                            Project No.

 

       1.  Furnishings and build-out, Redfield campus, phase I, UNR 01-C16

       2.  New campus library, UNR.................................................... 01-C24

       3.  Academic and student services building, NSC.................. 01-C25

       [4.  Telecommunications building on Cheyenne campus, CCSN 01-C29L]

      Sec. 37.  Section 16 of chapter 585, Statutes of Nevada 2001, at page 2999, is hereby repealed.

      Sec. 38.  The inclusion of project 03-C50 in section 1 of this act constitutes the legislative approval of the project required pursuant to NRS 353.550.

      Sec. 39.  This act becomes effective upon passage and approval.

________

 


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ê2003 Statutes of Nevada, Page 3513ê

 

CHAPTER 513, AB 552

Assembly Bill No. 552–Committee on Judiciary

 

CHAPTER 513

 

AN ACT relating to statutes; making technical corrections to certain measures previously approved by the 72nd Session of the Nevada Legislature; and providing other matters properly relating thereto.

 

[Approved: June 12, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Section 5 of Assembly Bill No. 293 of this session is hereby amended to read as follows:

      Sec. 5.  NRS 295.121 is hereby amended to read as follows:

      295.121  1.  In a county whose population is [100,000] 40,000 or more, for each initiative, referendum or other question to be placed on the ballot by [the] :

      (a) The board or county clerk, including, without limitation, pursuant to NRS 293.482, 295.115 or 295.160 [,] ;

      (b) The governing body of a school district, public library or water district authorized by law to submit questions to some or all of the qualified electors or registered voters of the county; or

      (c) A metropolitan police committee on fiscal affairs authorized by law to submit questions to some or all of the qualified electors or registered voters of the county,

the board shall, in consultation with the county clerk pursuant to subsection [4,] 5, appoint two committees. Except as otherwise provided in subsection 2, one committee must be composed of three persons who favor approval by the voters of the initiative, referendum or other question and the other committee must be composed of three persons who oppose approval by the voters of the initiative, referendum or other question.

      2.  If, after consulting with the county clerk pursuant to subsection [4,] 5, the board is unable to appoint three persons who are willing to serve on a committee, the board may appoint fewer than three persons to that committee, but the board must appoint at least one person to each committee appointed pursuant to this section.

      3.  With respect to a committee appointed pursuant to this section:

      (a) A person may not serve simultaneously on the committee that favors approval by the voters of an initiative, referendum or other question and the committee that opposes approval by the voters of that initiative, referendum or other question.

      (b) Members of the committee serve without compensation.

      (c) The term of office for each member commences upon appointment and expires upon the publication of the sample ballot containing the initiative, referendum or other question.

      4.  The county clerk may establish and maintain a list of the persons who have expressed an interest in serving on a committee appointed pursuant to this section. The county clerk, after exercising due diligence to locate persons who favor approval by the voters of an initiative, referendum or other question to be placed on the ballot or who oppose approval by the voters of an initiative, referendum or other question to be placed on the ballot, may use the names on a list established pursuant to this subsection to:


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ê2003 Statutes of Nevada, Page 3514 (Chapter 513, AB 552)ê

 

exercising due diligence to locate persons who favor approval by the voters of an initiative, referendum or other question to be placed on the ballot or who oppose approval by the voters of an initiative, referendum or other question to be placed on the ballot, may use the names on a list established pursuant to this subsection to:

      (a) Make recommendations pursuant to subsection 5; and

      (b) Appoint members to a committee pursuant to subsection 6.

      5.  Before the board appoints a committee pursuant to this section, the county clerk shall:

      (a) Recommend to the board persons to be appointed to the committee; and

      (b) Consider recommending pursuant to paragraph (a):

             (1) Any person who has expressed an interest in serving on the committee; and

             (2) A person who is a member of an organization that has expressed an interest in having a member of the organization serve on the committee.

      [5.] 6.  If the board of a county whose population is [100,000] 40,000 or more fails to appoint a committee as required pursuant to this section, the county clerk shall appoint the committee.

      [6.] 7.  A committee appointed pursuant to this section:

      (a) Shall elect a chairman for the committee;

      (b) Shall meet and conduct its affairs as necessary to fulfill the requirements of this section;

      (c) May seek and consider comments from the general public;

      (d) Shall, based on whether the members were appointed to advocate or oppose approval by the voters of the initiative, referendum or other question, prepare an argument either advocating or opposing approval by the voters of the initiative, referendum or other question;

      (e) Shall prepare a rebuttal to the argument prepared by the other committee appointed pursuant to this section; [and]

      (f) Shall address in the argument and rebuttal prepared pursuant to paragraphs (d) and (e):

             (1) The fiscal impact of the initiative, referendum or other question;

             (2) The environmental impact of the initiative, referendum or other question; and

             (3) The impact of the initiative, referendum or other question on the public health, safety and welfare; and

      (g) Shall submit the argument and rebuttal prepared pursuant to paragraphs (d) , (e) and [(e)] (f) to the county clerk not later than the date prescribed by the county clerk pursuant to subsection [7.] 8.

      [7.] 8.  The county clerk of a county whose population is [100,000] 40,000 or more shall provide, by rule or regulation:

      (a) The maximum permissible length of an argument or rebuttal prepared pursuant to this section; and

      (b) The date by which an argument or rebuttal prepared pursuant to this section must be submitted by the committee to the county clerk.

      [8.] 9.  Upon receipt of an argument or rebuttal prepared pursuant to this section, the county clerk:


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ê2003 Statutes of Nevada, Page 3515 (Chapter 513, AB 552)ê

 

      (a) May consult with persons who are generally recognized by a national or statewide organization as having expertise in the field or area to which the initiative, referendum or other question pertains; and

      (b) Shall reject each statement in the argument or rebuttal that he believes is libelous or factually inaccurate.

Not later than 5 days after the county clerk rejects a statement pursuant to this subsection, the committee may appeal that rejection to the district attorney. The district attorney shall review the statement and the reasons for its rejection and may receive evidence, documentary or testimonial, to aid him in his decision. Not later than 3 business days after the appeal by the committee, the district attorney shall issue his decision rejecting or accepting the statement. The decision of the district attorney is a final decision for the purposes of judicial review.

      [9.] 10.  The county clerk shall place in the sample ballot provided to the registered voters of the county each argument and rebuttal prepared pursuant to this section, containing all statements that were not rejected pursuant to subsection [8.] 9. The county clerk may revise the language submitted by the committee so that it is clear, concise and suitable for incorporation in the sample ballot, but shall not alter the meaning or effect without the consent of the committee.

      [10.] 11.  In a county whose population is less than [100,000:] 40,000:

      (a) The board may appoint committees pursuant to this section.

      (b) If the board appoints committees pursuant to this section, the county clerk shall provide for rules or regulations pursuant to subsection [7.] 8.

      12.  Except as otherwise provided in this subsection, if a question is to be placed on the ballot by an entity described in paragraph (b) or (c) of subsection 1, the entity must provide a copy and explanation of the question to the county clerk at least 30 days earlier than the date required for the submission of such documents pursuant to subsection 1 of NRS 293.481. This subsection does not apply to a question if the date that the question must be submitted to the county clerk is governed by subsection 2 of NRS 293.481.

      Sec. 2.  Section 17 of Assembly Bill No. 425 of this session is hereby amended to read as follows:

      Sec. 17.  NRS 338.1381 is hereby amended to read as follows:

      338.1381  1.  If, within 10 days after receipt of the notice denying his application [,] pursuant to NRS 338.1379, the applicant files a written request for a hearing with the State Public Works Board or the governing body , [of the local government,] the Board or governing body shall set the matter for a hearing within [10] 20 days after receipt of the request. The hearing must be held not later than [20] 45 days after the receipt of the request for a hearing.

      2.  The hearing must be held at a time and place prescribed by the Board or governing body. At least 10 days before the date set for the hearing, the Board or governing body shall serve the applicant with written notice of the hearing. The notice may be served by personal delivery to the applicant or by certified mail to the last known business or residential address of the applicant.


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ê2003 Statutes of Nevada, Page 3516 (Chapter 513, AB 552)ê

 

      3.  The Board or governing body shall issue a decision on the matter within 5 days after the hearing and notify the applicant, in writing, of its decision within [5] 15 days after it is issued. The decision of the Board or governing body is a final decision for purposes of judicial review.

      Sec. 3.  Assembly Bill No. 542 of this session is hereby amended by adding thereto a new section to be designated as sec. 26, immediately following sec. 25, to read as follows:

      Sec. 26.  1.  This section and sections 21, 24 and 25 of this act become effective upon passage and approval.

      2.  Sections 1 to 20, inclusive, 22 and 23 of this act become effective on October 1, 2003.

      Sec. 4.  The title of Senate Bill No. 317 of this session is hereby amended to read as follows:

AN ACT relating to incarcerated persons; requiring the Department of Education to adopt regulations that establish a statewide program of education for incarcerated persons and to coordinate with and assist school districts in operating programs of education for incarcerated persons; creating in the State Treasury the Fund for Programs of Education for Incarcerated Persons; authorizing school districts to operate programs of education for incarcerated persons under certain circumstances; providing procedures if a manager or warden excludes from a facility or institution a person employed by a school district to operate a program of education for incarcerated persons in the facility or institution; authorizing the University and Community College System of Nevada to offer courses that lead to a postsecondary degree for incarcerated persons; making various changes to provisions relating to credits against the sentence of an offender; revising the provisions governing the manner in which prisoners may be released from jail when the jail becomes overcrowded; and providing other matters properly relating thereto.

      Sec. 5.  Section 36 of Senate Bill No. 453 of this session is hereby amended to read as follows:

      Sec. 36.  NRS 293B.084 is hereby amended to read as follows:

      293B.084  1.  A mechanical recording device which directly records votes electronically must:

      [1.] (a) Bear a number which identifies that mechanical recording device.

      [2.] (b) Be equipped with a storage device which:

      [(a)] (1) Stores the ballots voted on the mechanical recording device;

      [(b)] (2) Can be removed from the mechanical recording device for the purpose of transporting the ballots stored therein to a central counting place; and

      [(c)] (3) Bears the same number as the mechanical recording device.

      [3.] (c) Be designed in such a manner that voted ballots may be stored within the mechanical recording device and the storage device required pursuant to [subsection 2] paragraph (b) at the same time.

      [4.] (d) Provide a record printed on paper of:


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ê2003 Statutes of Nevada, Page 3517 (Chapter 513, AB 552)ê

 

      [(a)] (1) Each ballot voted on the mechanical recording device; and

      [(b)] (2) The total number of votes recorded on the mechanical recording device for each candidate and for or against each measure.

      2.  The paper record described in paragraph (d) of subsection 1 must:

      (a) Be printed and made available for a manual audit, as necessary; and

      (b) Be printed and serve as an official record for a recount, as necessary.

      Sec. 6.  1.  Sections 2, 3 and 19 of Senate Bill No. 281 of this session are hereby repealed.

      2.  Section 30 of Senate Bill No. 310 of this session is hereby repealed.

      Sec. 7.  This act becomes effective upon passage and approval.

________

 

CHAPTER 514, AB 132

Assembly Bill No. 132–Committee on Judiciary

 

CHAPTER 514

 

AN ACT relating to the protection of children; providing that in certain judicial districts proceedings concerning the abuse or neglect of children are presumptively open to the public and that in certain judicial districts such proceedings are presumptively closed to the public; requiring the Court Administrator to prepare reports concerning the child welfare system; and providing other matters properly relating thereto.

 

[Approved: June 12, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 432B.430 is hereby amended to read as follows:

      432B.430  1.  Except as otherwise provided in subsections 3 and 4 and NRS 432B.457, in each judicial district that includes a county whose population is 400,000 or more:

      (a) Any proceeding held pursuant to NRS 432B.410 to 432B.590, inclusive, other than a hearing held pursuant to subsections 1 to 4, inclusive, of NRS 432B.530 or a hearing held pursuant to subsection 5 of NRS 432B.530 when the court proceeds immediately, must be open to the general public unless the judge or master, upon his own motion or upon the motion of another person, determines that all or part of the proceeding must be closed to the general public because such closure is in the best interests of the child who is the subject of the proceeding. In determining whether closing all or part of the proceeding is in the best interests of the child who is the subject of the proceeding, the judge or master must consider and give due weight to the desires of that child.

      (b) If the judge or master determines pursuant to paragraph (a) that all or part of a proceeding must be closed to the general public:

             (1) The judge or master must make specific findings of fact to support such a determination; and


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ê2003 Statutes of Nevada, Page 3518 (Chapter 514, AB 132)ê

 

             (2) The general public must be excluded and only those persons having a direct interest in the case, as determined by the judge or master, may be admitted to the proceeding.

      (c) Any proceeding held pursuant to subsections 1 to 4, inclusive, of NRS 432B.530 and any proceeding held pursuant to subsection 5 of NRS 432B.530 when the court proceeds immediately must be closed to the general public unless the judge or master, upon his own motion or upon the motion of another person, determines that all or part of the proceeding must be open to the general public because opening the proceeding in such a manner is in the best interests of the child who is the subject of the proceeding. In determining whether opening all or part of the proceeding is in the best interests of the child who is the subject of the proceeding, the judge or master must consider and give due weight to the desires of that child. If the judge or master determines pursuant to this paragraph that all or part of a proceeding must be open to the general public, the judge or master must make specific findings of fact to support such a determination. Unless the judge or master determines pursuant to this paragraph that all or part of a proceeding described in this paragraph must be open to the general public, the general public must be excluded and only those persons having a direct interest in the case, as determined by the judge or master, may be admitted to the proceeding.

      2.  Except as otherwise provided in subsections 3 and 4 and NRS 432B.457, in each judicial district that includes a county whose population is less than 400,000:

      (a) Any proceeding held pursuant to NRS 432B.410 to 432B.590, inclusive, must be closed to the general public unless the judge or master, upon his own motion or upon the motion of another person, determines that all or part of the proceeding must be open to the general public because opening the proceeding in such a manner is in the best interests of the child who is the subject of the proceeding. In determining whether opening all or part of the proceeding is in the best interests of the child who is the subject of the proceeding, the judge or master shall consider and give due weight to the desires of that child.

      (b) If the judge or master determines pursuant to paragraph (a) that all or part of a proceeding must be open to the general public, the judge or master must make specific findings of fact to support such a determination.

      (c) Unless the judge or master determines pursuant to paragraph (a) that all or part of a proceeding must be open to the general public, the general public must be excluded and only those persons having a direct interest in the case, as [ordered] determined by the judge or master, may be admitted to [any] the proceeding .

      3.  Except as otherwise provided in subsection 4 and NRS 432B.457, in a proceeding held pursuant to NRS 432B.470, the general public must be excluded and only those persons having a direct interest in the case, as determined by the judge or master, may be admitted to the proceeding.

      4.  In conducting a proceeding held pursuant to NRS 432B.410 to 432B.590, inclusive [.] , a judge or master shall keep information confidential to the extent necessary to obtain federal funds in the maximum amount available to this state.

      Sec. 2.  1.  The Court Administrator shall collect information from the clerks of the district courts concerning:


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ê2003 Statutes of Nevada, Page 3519 (Chapter 514, AB 132)ê

 

      (a) The effect of the amendatory provisions of this act on children who are involved in proceedings held pursuant to NRS 432B.410 to 432B.590, inclusive;

      (b) The operation of the child welfare system in this state; and

      (c) Any other issue about which the Legislative Committee on Children, Youth and Families requests information.

      2.  The Court Administrator shall:

      (a) On or before July 1, 2004, or by another date determined by the Legislative Committee on Children, Youth and Families, submit to the Committee a written report compiling the information collected pursuant to subsection 1; and

      (b) On or before January 1, 2005, submit to the Director of the Legislative Counsel Bureau for transmittal to the 73rd Session of the Nevada Legislature a written report compiling the most recent and updated information collected pursuant to subsection 1.

________

 

CHAPTER 515, AB 502

Assembly Bill No. 502–Committee on Health and Human Services

 

CHAPTER 515

 

AN ACT relating to insurance; requiring certain policies of insurance and health plans to provide coverage for certain medical treatment provided in a clinical trial or study; providing immunity from liability for insurers, medical services corporations, health maintenance organizations and managed care organizations for injury and other adverse outcomes occurring in connection with treatment provided in a clinical trial or study for which coverage is required to be provided; and providing other matters properly relating thereto.

 

[Approved: June 12, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 689A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A policy of health insurance must provide coverage for medical treatment which a policyholder or subscriber receives as part of a clinical trial or study if:

      (a) The medical treatment is provided in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;


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ê2003 Statutes of Nevada, Page 3520 (Chapter 515, AB 502)ê

 

      (c) The medical treatment is provided by a provider of health care and the facility and personnel have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this state; and

      (g) The policyholder or subscriber has signed, before his participation in the clinical trial or study, a statement of consent indicating that he has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:

      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the policyholder or subscriber.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in the clinical trial or study or as a result of any complication arising out of the medical treatment provided in the clinical trial or study, to the extent that such health care services would otherwise be covered under the policy of health insurance.

      (c) The initial consultation to determine whether the policyholder or subscriber is eligible to participate in the clinical trial or study.

      (d) Health care services required for the clinically appropriate monitoring of the policyholder or subscriber during the clinical trial or study.

Except as otherwise provided in section 9 of Assembly Bill No. 320 of this session, the services provided pursuant to paragraphs (b) and (d) must be covered only if the services are provided by a provider with whom the insurer has contracted for such services. If the insurer has not contracted for the provision of such services, the insurer shall pay the provider the rate of reimbursement that is paid to other providers with whom the insurer has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to a policyholder or subscriber is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the policyholder or subscriber.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.


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ê2003 Statutes of Nevada, Page 3521 (Chapter 515, AB 502)ê

 

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the policyholder’s or subscriber’s policy of health insurance, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the policyholder or subscriber during the clinical trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the policyholder or subscriber.

      (h) Any costs for the management of research relating to the clinical trial or study.

      5.  An insurer who delivers or issues for delivery a policy of health insurance specified in subsection 1, may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the policyholder or subscriber, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  An insurer who delivers or issues for delivery a policy specified in subsection 1 shall:

      (a) Include in the disclosure required pursuant to NRS 689A.390 notice to each policyholder and subscriber under the policy of the availability of the benefits required by this section.

      (b) Provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the policy.

      7.  A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2004, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with this section is void.

      8.  An insurer who delivers or issues for delivery a policy specified in subsection 1 is immune from liability for:

      (a) Any injury to a policyholder or subscriber caused by:

             (1) Any medical treatment provided to the policyholder or subscriber in connection with his participation in a clinical trial or study described in this section; or

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the policyholder or subscriber in connection with his participation in a clinical trial or study described in this section.


…………………………………………………………………………………………………………………

ê2003 Statutes of Nevada, Page 3522 (Chapter 515, AB 502)ê

 

      (b) Any adverse or unanticipated outcome arising out of a policyholder’s or subscriber’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 or 633 of NRS.

      Sec. 2.  NRS 689A.0404 is hereby amended to read as follows:

      689A.0404  Except as otherwise provided in section 1 of this act:

      1.  No policy of health insurance that provides coverage for a drug approved by the Food and Drug Administration for use in the treatment of an illness, disease or other medical condition may be delivered or issued for delivery in this state unless the policy includes coverage for any other use of the drug for the treatment of cancer , if that use is:

      (a) Specified in the most recent edition of or supplement to:

             (1) The United States Pharmacopoeia Drug Information; or

             (2) The American Hospital Formulary Service Drug Information; or

      (b) Supported by at least two articles reporting the results of scientific studies that are published in scientific or medical journals, as defined in 21 C.F.R. § 99.3.

      2.  The coverage required pursuant to this section:

      (a) Includes coverage for any medical services necessary to administer the drug to the insured.

      (b) Does not include coverage for any:

             (1) Experimental drug used for the treatment of cancer if that drug has not been approved by the Food and Drug Administration; or

             (2) Use of a drug that is contraindicated by the Food and Drug Administration.

      3.  A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with the provisions of this section is void.

      Sec. 3.  NRS 689A.330 is hereby amended to read as follows:

      689A.330  If any policy is issued by a domestic insurer for delivery to a person residing in another state, and if the insurance commissioner or corresponding public officer of that other state has informed the Commissioner that the policy is not subject to approval or disapproval by that officer, the Commissioner may by ruling require that the policy meet the standards set forth in NRS 689A.030 to 689A.320, inclusive [.] , and section 1 of this act.

      Sec. 4.  Chapter 689B of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A policy of group health insurance must provide coverage for medical treatment which a person insured under the group policy receives as part of a clinical trial or study if:


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ê2003 Statutes of Nevada, Page 3523 (Chapter 515, AB 502)ê

 

      (a) The medical treatment is provided in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;

      (c) The medical treatment is provided by a provider of health care and the facility and personnel have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this state; and

      (g) The insured has signed, before his participation in the clinical trial or study, a statement of consent indicating that he has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:

      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the insured person.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in the clinical trial or study or as a result of any complication arising out of the medical treatment provided in the clinical trial or study, to the extent that such health care services would otherwise be covered under the policy of group health insurance.

      (c) The initial consultation to determine whether the insured is eligible to participate in the clinical trial or study.

      (d) Health care services required for the clinically appropriate monitoring of the insured during the clinical trial or study.

Except as otherwise provided in section 13 of Assembly Bill No. 320 of this session, the services provided pursuant to paragraphs (b) and (d) must be covered only if the services are provided by a provider with whom the insurer has contracted for such services. If the insurer has not contracted for the provision of such services, the insurer shall pay the provider the rate of reimbursement that is paid to other providers with whom the insurer has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.


…………………………………………………………………………………………………………………

ê2003 Statutes of Nevada, Page 3524 (Chapter 515, AB 502)ê

 

insurer has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to a person insured under the group policy is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the person insured under the group policy.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the insured’s policy of group health insurance, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the insured during the clinical trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the insured.

      (h) Any costs for the management of research relating to the clinical trial or study.

      5.  An insurer who delivers or issues for delivery a policy of group health insurance specified in subsection 1, may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the insured, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  An insurer who delivers or issues for delivery a policy of group health insurance specified in subsection 1 shall:

      (a) Include in the disclosure required pursuant to NRS 689B.027 notice to each group policyholder of the availability of the benefits required by this section.

      (b) Provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the policy.

      7.  A policy of group health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2004, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with this section is void.

      8.  An insurer who delivers or issues for delivery a policy of group health insurance specified in subsection 1 is immune from liability for:


…………………………………………………………………………………………………………………

ê2003 Statutes of Nevada, Page 3525 (Chapter 515, AB 502)ê

 

      (a) Any injury to the insured caused by:

             (1) Any medical treatment provided to the insured in connection with his participation in a clinical trial or study described in this section; or

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the insured in connection with his participation in a clinical trial or study described in this section.

      (b) Any adverse or unanticipated outcome arising out of an insured’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 or 633 of NRS.

      Sec. 5.  NRS 689B.0365 is hereby amended to read as follows:

      689B.0365  Except as otherwise provided in section 4 of this act:

      1.  No group policy of health insurance that provides coverage for a drug approved by the Food and Drug Administration for use in the treatment of an illness, disease or other medical condition may be delivered or issued for delivery in this state unless the policy includes coverage for any other use of the drug for the treatment of cancer, if that use is:

      (a) Specified in the most recent edition of or supplement to:

             (1) The United States Pharmacopoeia Drug Information; or

             (2) The American Hospital Formulary Service Drug Information; or

      (b) Supported by at least two articles reporting the results of scientific studies that are published in scientific or medical journals, as defined in 21 C.F.R. § 99.3.

      2.  The coverage required pursuant to this section:

      (a) Includes coverage for any medical services necessary to administer the drug to the employee or member of the insured group.

      (b) Does not include coverage for any:

             (1) Experimental drug used for the treatment of cancer [,] if that drug has not been approved by the Food and Drug Administration; or

             (2) Use of a drug that is contraindicated by the Food and Drug Administration.

      3.  A policy subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with the provisions of this section is void.

      Sec. 6.  Chapter 695B of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A policy of health insurance issued by a medical services corporation must provide coverage for medical treatment which a person insured under the policy receives as part of a clinical trial or study if:

      (a) The medical treatment is provided in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:


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ê2003 Statutes of Nevada, Page 3526 (Chapter 515, AB 502)ê

 

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;

      (c) The medical treatment is provided by a provider of health care and the facility and personnel have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this state; and

      (g) The insured has signed, before his participation in the clinical trial or study, a statement of consent indicating that he has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:

      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the insured person.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in the clinical trial or study or as a result of any complication arising out of the medical treatment provided in the clinical trial or study, to the extent that such health care services would otherwise be covered under the policy of health insurance.

      (c) The initial consultation to determine whether the insured is eligible to participate in the clinical trial or study.

      (d) Health care services required for the clinically appropriate monitoring of the insured during the clinical trial or study.

Except as otherwise provided in section 24 of Assembly Bill No. 320 of this session, the services provided pursuant to paragraphs (b) and (d) must be covered only if the services are provided by a provider with whom the medical services corporation has contracted for such services. If the medical services corporation has not contracted for the provision of such services, the medical services corporation shall pay the provider the rate of reimbursement that is paid to other providers with whom the medical services corporation has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to a person insured under the policy is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the person insured under the policy.


…………………………………………………………………………………………………………………

ê2003 Statutes of Nevada, Page 3527 (Chapter 515, AB 502)ê

 

pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the person insured under the policy.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the insured’s policy of health insurance, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the insured during the trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the insured.

      (h) Any costs for the management of research relating to the clinical trial or study.

      5.  A medical services corporation that delivers or issues for delivery a policy of health insurance specified in subsection 1, may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the insured, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  A medical services corporation that delivers or issues for delivery a policy of health insurance specified in subsection 1 shall:

      (a) Include in the disclosure required pursuant to NRS 695B.172 notice to each person insured under the policy of the availability of the benefits required by this section.

      (b) Provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the policy.

      7.  A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2004, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with this section is void.

      8.  A medical services corporation that delivers or issues for delivery a policy of health insurance specified in subsection 1 is immune from liability for:

      (a) Any injury to the insured caused by:

             (1) Any medical treatment provided to the insured in connection with his participation in a clinical trial or study described in this section; or


…………………………………………………………………………………………………………………

ê2003 Statutes of Nevada, Page 3528 (Chapter 515, AB 502)ê

 

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the insured in connection with his participation in a clinical trial or study described in this section.

      (b) Any adverse or unanticipated outcome arising out of an insured’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 and 633 of NRS.

      Sec. 7.  NRS 695B.1908 is hereby amended to read as follows:

      695B.1908  Except as otherwise provided in section 6 of this act:

      1.  No contract for hospital or medical services that provides coverage for a drug approved by the Food and Drug Administration for use in the treatment of an illness, disease or other medical condition may be delivered or issued for delivery in this state unless the contract includes coverage for any other use of the drug for the treatment of cancer, if that use is:

      (a) Specified in the most recent edition of or supplement to:

             (1) The United States Pharmacopoeia Drug Information; or

             (2) The American Hospital Formulary Service Drug Information; or

      (b) Supported by at least two articles reporting the results of scientific studies that are published in scientific or medical journals, as defined in 21 C.F.R. § 99.3.

      2.  The coverage required pursuant to this section:

      (a) Includes coverage for any medical services necessary to administer the drug to a person covered under the contract.

      (b) Does not include coverage for any:

             (1) Experimental drug used for the treatment of cancer [,] if that drug has not been approved by the Food and Drug Administration; or

             (2) Use of a drug that is contraindicated by the Food and Drug Administration.

      3.  A contract for hospital or medical services subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by this section, and any provision of the contract that conflicts with the provisions of this section is void.

      Sec. 8.  Chapter 695C of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in NRS 695C.050, a health care plan issued by a health maintenance organization must provide coverage for medical treatment which an enrollee receives as part of a clinical trial or study if:

      (a) The medical treatment is provided in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:


…………………………………………………………………………………………………………………

ê2003 Statutes of Nevada, Page 3529 (Chapter 515, AB 502)ê

 

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;

      (c) The medical treatment is provided by a provider of health care and the facility and personnel have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this state; and

      (g) The enrollee has signed, before his participation in the clinical trial or study, a statement of consent indicating that he has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:

      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the enrollee.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in the clinical trial or study or as a result of any complication arising out of the medical treatment provided in the clinical trial or study, to the extent that such health care services would otherwise be covered under the health care plan.

      (c) The initial consultation to determine whether the enrollee is eligible to participate in the clinical trial or study.

      (d) Health care services required for the clinically appropriate monitoring of the enrollee during the clinical trial or study.

Except as otherwise provided in section 27 of Assembly Bill No. 320 of this session, the services provided pursuant to paragraphs (b) and (d) must be covered only if the services are provided by a provider with whom the health maintenance organization has contracted for such services. If the health maintenance organization has not contracted for the provision of such services, the health maintenance organization shall pay the provider the rate of reimbursement that is paid to other providers with whom the health maintenance organization has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to an enrollee is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the enrollee.


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section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the enrollee.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the enrollee’s health care plan, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the enrollee during the clinical trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the enrollee.

      (h) Any costs for the management of research relating to the clinical trial or study.

      5.  A health maintenance organization that delivers or issues for delivery a health care plan specified in subsection 1, may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the enrollee, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  A health maintenance organization that delivers or issues for delivery a health care plan specified in subsection 1 shall:

      (a) Include in the disclosure required pursuant to NRS 695C.193 notice to each enrollee of the availability of the benefits required by this section.

      (b) Provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the plan.

      7.  A health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2004, has the legal effect of including the coverage required by this section, and any provision of the plan that conflicts with this section is void.

      8.  A health maintenance organization that delivers or issues for delivery a health care plan specified in subsection 1 is immune from liability for:

      (a) Any injury to an enrollee caused by:

             (1) Any medical treatment provided to the enrollee in connection with his participation in a clinical trial or study described in this section; or

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the enrollee in connection with his participation in a clinical trial or study described in this section.


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enrollee in connection with his participation in a clinical trial or study described in this section.

      (b) Any adverse or unanticipated outcome arising out of an enrollee’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 or 633 of NRS.

      Sec. 9.  NRS 695C.050 is hereby amended to read as follows:

      695C.050  1.  Except as otherwise provided in this chapter or in specific provisions of this title, the provisions of this title are not applicable to any health maintenance organization granted a certificate of authority under this chapter. This provision does not apply to an insurer licensed and regulated pursuant to this title except with respect to its activities as a health maintenance organization authorized and regulated pursuant to this chapter.

      2.  Solicitation of enrollees by a health maintenance organization granted a certificate of authority, or its representatives, must not be construed to violate any provision of law relating to solicitation or advertising by practitioners of a healing art.

      3.  Any health maintenance organization authorized under this chapter shall not be deemed to be practicing medicine and is exempt from the provisions of chapter 630 of NRS.

      4.  The provisions of NRS 695C.110, 695C.170 to 695C.200, inclusive, 695C.250 and 695C.265 and section 8 of this act do not apply to a health maintenance organization that provides health care services through managed care to recipients of Medicaid under the state plan for Medicaid or insurance pursuant to the Children’s Health Insurance Program pursuant to a contract with the Division of Health Care Financing and Policy of the Department of Human Resources. This subsection does not exempt a health maintenance organization from any provision of this chapter for services provided pursuant to any other contract.

      5.  The provisions of NRS 695C.1694 and 695C.1695 apply to a health maintenance organization that provides health care services through managed care to recipients of Medicaid under the state plan for Medicaid.

      Sec. 10.  NRS 695C.1733 is hereby amended to read as follows:

      695C.1733  Except as otherwise provided in section 8 of this act:

      1.  No evidence of coverage that provides coverage for a drug approved by the Food and Drug Administration for use in the treatment of an illness, disease or other medical condition may be delivered or issued for delivery in this state unless the evidence of coverage includes coverage for any other use of the drug for the treatment of cancer, if that use is:

      (a) Specified in the most recent edition of or supplement to:

             (1) The United States Pharmacopoeia Drug Information; or

             (2) The American Hospital Formulary Service Drug Information; or

      (b) Supported by at least two articles reporting the results of scientific studies that are published in scientific or medical journals, as defined in 21 C.F.R. § 99.3.


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      2.  The coverage required pursuant to this section:

      (a) Includes coverage for any medical services necessary to administer the drug to the enrollee.

      (b) Does not include coverage for any:

             (1) Experimental drug used for the treatment of cancer [,] if that drug has not been approved by the Food and Drug Administration; or

             (2) Use of a drug that is contraindicated by the Food and Drug Administration.

      3.  Any evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by this section, and any provision of the evidence of coverage that conflicts with the provisions of this section is void.

      Sec. 11.  NRS 695C.330 is hereby amended to read as follows:

      695C.330  1.  The Commissioner may suspend or revoke any certificate of authority issued to a health maintenance organization pursuant to the provisions of this chapter if he finds that any of the following conditions exist:

      (a) The health maintenance organization is operating significantly in contravention of its basic organizational document, its health care plan or in a manner contrary to that described in and reasonably inferred from any other information submitted pursuant to NRS 695C.060, 695C.070 and 695C.140, unless any amendments to those submissions have been filed with and approved by the Commissioner;

      (b) The health maintenance organization issues evidence of coverage or uses a schedule of charges for health care services which do not comply with the requirements of NRS [695C.170] 695C.1694 to 695C.200, inclusive, [or 695C.1694, 695C.1695] or 695C.207 [;] or section 8 of this act;

      (c) The health care plan does not furnish comprehensive health care services as provided for in NRS 695C.060;

      (d) The State Board of Health certifies to the Commissioner that the health maintenance organization:

             (1) Does not meet the requirements of subsection 2 of NRS 695C.080; or

             (2) Is unable to fulfill its obligations to furnish health care services as required under its health care plan;

      (e) The health maintenance organization is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees;

      (f) The health maintenance organization has failed to put into effect a mechanism affording the enrollees an opportunity to participate in matters relating to the content of programs pursuant to NRS 695C.110;

      (g) The health maintenance organization has failed to put into effect the system for resolving complaints required by NRS 695C.260 in a manner reasonably to dispose of valid complaints;

      (h) The health maintenance organization or any person on its behalf has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive or unfair manner;

      (i) The continued operation of the health maintenance organization would be hazardous to its enrollees; or

      (j) The health maintenance organization has otherwise failed to comply substantially with the provisions of this chapter.


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      2.  A certificate of authority must be suspended or revoked only after compliance with the requirements of NRS 695C.340.

      3.  If the certificate of authority of a health maintenance organization is suspended, the health maintenance organization shall not, during the period of that suspension, enroll any additional groups or new individual contracts, unless those groups or persons were contracted for before the date of suspension.

      4.  If the certificate of authority of a health maintenance organization is revoked, the organization shall proceed, immediately following the effective date of the order of revocation, to wind up its affairs and shall conduct no further business except as may be essential to the orderly conclusion of the affairs of the organization. It shall engage in no further advertising or solicitation of any kind. The Commissioner may , by written order , permit such further operation of the organization as he may find to be in the best interest of enrollees to the end that enrollees are afforded the greatest practical opportunity to obtain continuing coverage for health care.

      Sec. 12.  Chapter 695G of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A health care plan issued by a managed care organization must provide coverage for medical treatment which a person insured under the plan receives as part of a clinical trial or study if:

      (a) The medical treatment is provided in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;

      (c) The medical treatment is provided by a provider of health care and the facility and personnel have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this state; and

      (g) The insured has signed, before his participation in the clinical trial or study, a statement of consent indicating that he has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:


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      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the insured.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in the clinical trial or study or as a result of any complication arising out of the medical treatment provided in the clinical trial or study, to the extent that such health care services would otherwise be covered under the health care plan.

      (c) The initial consultation to determine whether the insured is eligible to participate in the clinical trial or study.

      (d) Health care services required for the clinically appropriate monitoring of the insured during the clinical trial or study.

Except as otherwise provided in section 33 of Assembly Bill No. 320 of this session, the services provided pursuant to paragraphs (b) and (d) must be covered only if the services are provided by a provider with whom the managed care organization has contracted for such services. If the managed care organization has not contracted for the provision of such services, the managed care organization shall pay the provider the rate of reimbursement that is paid to other providers with whom the managed care organization has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to a person insured under the plan is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the person insured under the plan.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the insured’s health care plan, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the insured during the clinical trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the insured.

      (h) Any costs for the management of research relating to the clinical trial or study.


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      5.  A managed care organization that delivers or issues for delivery a health care plan specified in subsection 1, may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the insured, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  A managed care organization that delivers or issues for delivery a health care plan specified in subsection 1 shall:

      (a) Include in the disclosure required pursuant to NRS 695C.193 notice to each person insured under the plan of the availability of the benefits required by this section.

      (b) Provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the plan.

      7.  A health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2004, has the legal effect of including the coverage required by this section, and any provision of the plan that conflicts with this section is void.

      8.  A managed care organization that delivers or issues for delivery a health care plan specified in subsection 1 is immune from liability for:

      (a) Any injury to an insured caused by:

             (1) Any medical treatment provided to the insured in connection with his participation in a clinical trial or study described in this section; or

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the insured in connection with his participation in a clinical trial or study described in this section.

      (b) Any adverse or unanticipated outcome arising out of an insured’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 or 633 of NRS.

      Sec. 13.  NRS 287.010 is hereby amended to read as follows:

      287.010  1.  The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada may:

      (a) Adopt and carry into effect a system of group life, accident or health insurance, or any combination thereof, for the benefit of its officers and employees, and the dependents of officers and employees who elect to accept the insurance and who, where necessary, have authorized the governing body to make deductions from their compensation for the payment of premiums on the insurance.

      (b) Purchase group policies of life, accident or health insurance, or any combination thereof, for the benefit of such officers and employees, and the dependents of such officers and employees, as have authorized the purchase, from insurance companies authorized to transact the business of such insurance in the State of Nevada, and, where necessary, deduct from the compensation of officers and employees the premiums upon insurance and pay the deductions upon the premiums.


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ê2003 Statutes of Nevada, Page 3536 (Chapter 515, AB 502)ê

 

from insurance companies authorized to transact the business of such insurance in the State of Nevada, and, where necessary, deduct from the compensation of officers and employees the premiums upon insurance and pay the deductions upon the premiums.

      (c) Provide group life, accident or health coverage through a self-insurance reserve fund and, where necessary, deduct contributions to the maintenance of the fund from the compensation of officers and employees and pay the deductions into the fund. The money accumulated for this purpose through deductions from the compensation of officers and employees and contributions of the governing body must be maintained as an internal service fund as defined by NRS 354.543. The money must be deposited in a state or national bank or credit union authorized to transact business in the State of Nevada. Any independent administrator of a fund created under this section is subject to the licensing requirements of chapter 683A of NRS, and must be a resident of this state. Any contract with an independent administrator must be approved by the Commissioner of Insurance as to the reasonableness of administrative charges in relation to contributions collected and benefits provided. The provisions of NRS 689B.030 to 689B.050, inclusive, and 689B.575 and section 4 of this act apply to coverage provided pursuant to this paragraph, except that the provisions of NRS 689B.0359 do not apply to such coverage.

      (d) Defray part or all of the cost of maintenance of a self-insurance fund or of the premiums upon insurance. The money for contributions must be budgeted for in accordance with the laws governing the county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada.

      2.  If a school district offers group insurance to its officers and employees pursuant to this section, members of the board of trustees of the school district must not be excluded from participating in the group insurance. If the amount of the deductions from compensation required to pay for the group insurance exceeds the compensation to which a trustee is entitled, the difference must be paid by the trustee.

      Sec. 14.  NRS 287.04335 is hereby amended to read as follows:

      287.04335  If the Board provides health insurance through a plan of self-insurance, it shall comply with the provisions of section 12 of this act and NRS 689B.255, 695G.150, 695G.160, 695G.170 and 695G.200 to 695G.230, inclusive, in the same manner as an insurer that is licensed pursuant to title 57 of NRS is required to comply with those provisions.

      Sec. 15.  This act becomes effective on January 1, 2004.

________

 


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ê2003 Statutes of Nevada, Page 3537ê

 

CHAPTER 516, AB 490

Assembly Bill No. 490–Committee on Commerce and Labor

 

CHAPTER 516

 

AN ACT relating to mortgage investments; creating the Commissioner of Mortgage Lending and providing his duties; creating the Division of Mortgage Lending of the Department of Business and Industry; establishing the Fund for Mortgage Lending to be administered by the Commissioner; providing for the licensure of mortgage agents; providing that advertising spokespersons for mortgage brokers are jointly and severally liable for damages caused by the mortgage brokers under certain circumstances; revising the provisions relating to renewal of a license as a mortgage broker or mortgage agent; revising the provisions relating to exemptions to the licensure requirements of mortgage bankers, mortgage brokers and mortgage agents; increasing the amount of continuing education annually required of mortgage brokers and mortgage agents; revising provisions governing continuing education of mortgage brokers and mortgage agents; redesignating mortgage companies as mortgage bankers; providing that a division, office, authority, commission, board or other entity of the Department may provide for the conduct of business electronically; and providing other matters properly relating thereto.

 

[Approved: June 12, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Title 54 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 17, inclusive, of this act.

      Sec. 2.  As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 to 7, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 3.  “Commissioner” means the Commissioner of Mortgage Lending.

      Sec. 4.  “Division” means the Division of Mortgage Lending of the Department of Business and Industry.

      Sec. 5.  “Escrow agency” has the meaning ascribed to it in NRS 645A.010.

      Sec. 6.  “Mortgage banker” has the meaning ascribed to it in NRS 645E.100.

      Sec. 7.  “Mortgage broker” has the meaning ascribed to it in NRS 645B.0127.

      Sec. 8.  The Commissioner and the Division shall administer the provisions of this chapter and chapters 645A, 645B and 645E of NRS, subject to administrative supervision by the Director of the Department of Business and Industry.

      Sec. 9.  The Commissioner:


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      1.  Must be a person who has had practical experience in the financial services industry or the business of making loans secured by an interest in real property.

      2.  Except as otherwise provided in NRS 284.143, 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.

      Sec. 10.  The Commissioner shall not, either directly or indirectly, be interested in any escrow agency, mortgage broker or mortgage banker to which chapters 645A, 645B and 645E of NRS apply, nor engage in business as a personal loan broker.

      Sec. 11.  After appointment and before entering upon the discharge of the duties of his office, the Commissioner shall take and subscribe to an official oath.

      Sec. 12.  1.  The Commissioner may appoint deputy commissioners of mortgage lending, examiners, assistants, clerks, stenographers and other employees necessary to assist him in the performance of his duties pursuant to this chapter, chapters 645A, 645B and 645E of NRS or any other law. These employees shall perform such duties as are assigned to them by the Commissioner.

      2.  The Commissioner may employ or contract with a certified public accountant to review and conduct independent audits and examinations of escrow agencies, mortgage brokers and mortgage bankers. The Commissioner shall levy an assessment upon each licensed escrow agency, mortgage broker and mortgage banker to cover all the costs related to the employment of or the contract with the certified public accountant and the performance of the audits and examinations.

      3.  Assessments collected by the Commissioner pursuant to subsection 2 must be deposited in the State Treasury for deposit to the Fund for Mortgage Lending created by section 17 of this act and accounted for separately. The Commissioner shall use the money for the purposes specified in subsection 2.

      Sec. 13.  Each deputy commissioner of mortgage lending shall, before entering upon the discharge of his duties, take and subscribe to the constitutional oath of office.

      Sec. 14.  The State Board of Finance shall act in an advisory capacity to the Division in the administration of this chapter and chapters 645A, 645B and 645E of NRS.

      Sec. 15.  1.  The Commissioner shall establish by regulation rates to be paid by escrow companies, mortgage agents, mortgage brokers and mortgage bankers for supervision and examinations by the Commissioner or the Division.

      2.  In establishing a rate pursuant to subsection 1, the Commissioner shall consider:

      (a) The complexity of the various examinations to which the rate applies;

      (b) The skill required to conduct the examinations;

      (c) The expenses associated with conducting the examination and preparing a report; and

      (d) Any other factors the Commissioner deems relevant.

      Sec. 16.  1.  The Commissioner shall collect an assessment pursuant to this section from each:

      (a) Escrow agent that is supervised pursuant to chapter 645A of NRS;


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ê2003 Statutes of Nevada, Page 3539 (Chapter 516, AB 490)ê

 

      (b) Mortgage broker that is supervised pursuant to chapter 645B of NRS; and

      (c) Mortgage banker that is supervised pursuant to chapter 645E of NRS.

      2.  The Commissioner shall determine the total amount of all assessments to be collected from the entities identified in subsection 1, but that amount must not exceed the amount necessary to recover the cost of legal services provided by the Attorney General to the Commissioner and to the Division. The total amount of all assessments collected must be reduced by any amounts collected by the Commissioner from an entity for the recovery of the costs of legal services provided by the Attorney General in a specific case.

      3.  The Commissioner shall collect from each entity identified in subsection 1 an assessment that is based on:

      (a) An equal basis; or

      (b) Any other reasonable basis adopted by the Commissioner.

      4.  The assessment required by this section is in addition to any other assessment, fee or cost required by law to be paid by an entity identified in subsection 1.

      5.  Money collected by the Commissioner pursuant to this section must be deposited in the Fund for Mortgage Lending created by section 17 of this act.

      Sec. 17.  1.  The Fund for Mortgage Lending is hereby created in the State Treasury as a special revenue fund.

      2.  Except as otherwise provided by law, any money collected by the Commissioner or Division pursuant to law:

      (a) Must be deposited in the Fund for Mortgage Lending; and

      (b) May only be used to:

             (1) Carry out the programs and laws administered by the Commissioner and the Division; and

             (2) Pay the expenses related to the operations of the Commissioner and the Division.

      3.  Except as otherwise provided by law, any money that remains in the Fund for Mortgage Lending at the end of the fiscal year does not revert to the State General Fund, and the balance of the Fund for Mortgage Lending must be carried forward to the next fiscal year.

      4.  The Commissioner shall administer the Fund for Mortgage Lending. Any interest or income earned on the money in the Fund must be credited to the Fund after deducting any applicable charges. Any claims against the Fund must be paid as other claims against the State are paid.

      Sec. 18.  NRS 645A.010 is hereby amended to read as follows:

      645A.010  As used in this chapter, unless the context otherwise requires:

      1.  “Commissioner” means the Commissioner of [Financial Institutions.] Mortgage Lending.

      2.  “Division” means the Division of [Financial Institutions] Mortgage Lending of the Department of Business and Industry.

      3.  “Escrow” means any transaction wherein one person, for the purpose of effecting the sale, transfer, encumbering or leasing of real or personal property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered by such third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor or any agent or employee of any of the latter.


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condition, when it is then to be delivered by such third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor or any agent or employee of any of the latter. The term includes the collection of payments and the performance of related services by a third person in connection with a loan secured by a lien on real property.

      4.  “Escrow agency” means:

      (a) Any person who employs one or more escrow agents; or

      (b) An escrow agent who administers escrows on his own behalf.

      5.  “Escrow agent” means any person engaged in the business of administering escrows for compensation.

      Sec. 19.  NRS 645A.037 is hereby amended to read as follows:

      645A.037  1.  Except as otherwise provided in subsection 2, a licensee may not conduct the business of administering escrows for compensation within any office, suite, room or place of business in which any other business is solicited or engaged in, except a notary public, or in association or conjunction with any other business, unless authority to do so is given by the Commissioner.

      2.  A licensee may conduct the business of administering escrows pursuant to this chapter in the same office or place of business as [:

      (a) A firm or corporation that is exempt from licensing as] a mortgage [company pursuant to subsection 6 of NRS 645E.150.

      (b) A mortgage company if:

             (1)] banker if:

      (a) The licensee and the mortgage [company:

                   (I)] banker:

             (1) Operate as separate legal entities;

                   [(II)] (2) Maintain separate accounts, books and records;

                   [(III)] (3) Are subsidiaries of the same parent corporation; and

                   [(IV)] (4) Maintain separate licenses; and

             [(2)] (b) The mortgage [company] banker is licensed by this state pursuant to chapter 645E of NRS and does not conduct any business as a mortgage broker licensed pursuant to chapter 645B of NRS in the office or place of business.

      Sec. 20.  NRS 645A.040 is hereby amended to read as follows:

      645A.040  1.  Every license issued pursuant to the provisions of this chapter expires on July 1 of each year if it is not renewed. A license may be renewed by filing an application for renewal, paying the annual fee for the succeeding year and, if the licensee is a natural person, submitting the statement required pursuant to NRS 645A.025.

      2.  The fees for the issuance or renewal of a license for an escrow agency are:

      (a) For filing an application for an initial license, $500 for the principal office and $100 for each branch office. [All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.]

      (b) If the license is approved for issuance, $200 for the principal office and $100 for each branch office. The fee must be paid before issuance of the license.

      (c) For filing an application for renewal, $200 for the principal office and $100 for each branch office.

      3.  The fees for the issuance or renewal of a license for an escrow agent are:


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      (a) For filing an application for an initial license or for the renewal of a license, $100.

      (b) If a license is approved for issuance or renewal, $25. The fee must be paid before the issuance or renewal of the license.

      4.  If a licensee fails to submit the statement required pursuant to NRS 645A.025 or pay the fee for the annual renewal of his license before its expiration, his license may be renewed only upon the payment of a fee one and one-half times the amount otherwise required for renewal. A license may be renewed pursuant to this subsection only if the required statement is submitted and all the fees are paid within 1 year after the date on which the license expired.

      5.  In addition to the other fees set forth in this section, each applicant or licensee shall pay:

      (a) For filing an application for a duplicate copy of any license, upon satisfactory showing of its loss, $10.

      (b) For filing any change of information contained in the application, $10.

      (c) For each change of association with an escrow agency, $25.

      6.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.

      Sec. 21.  NRS 645A.040 is hereby amended to read as follows:

      645A.040  1.  Every license issued pursuant to the provisions of this chapter expires on July 1 of each year if it is not renewed. A license may be renewed by filing an application for renewal and paying the annual fee for the succeeding year.

      2.  The fees for the issuance or renewal of a license for an escrow agency are:

      (a) For filing an application for an initial license, $500 for the principal office and $100 for each branch office. [All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.]

      (b) If the license is approved for issuance, $200 for the principal office and $100 for each branch office. The fee must be paid before issuance of the license.

      (c) For filing an application for renewal, $200 for the principal office and $100 for each branch office.

      3.  The fees for the issuance or renewal of a license for an escrow agent are:

      (a) For filing an application for an initial license or for the renewal of a license, $100.

      (b) If a license is approved for issuance or renewal, $25. The fee must be paid before the issuance or renewal of the license.

      4.  If a licensee fails to pay the fee for the annual renewal of his license before its expiration, his license may be renewed only upon the payment of a fee one and one-half times the amount otherwise required for renewal. A license may be renewed pursuant to this subsection only if all the fees are paid within 1 year after the date on which the license expired.

      5.  In addition to the other fees set forth in this section, each applicant or licensee shall pay:


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      (a) For filing an application for a duplicate copy of any license, upon satisfactory showing of its loss, $10.

      (b) For filing any change of information contained in the application, $10.

      (c) For each change of association with an escrow agency, $25.

      6.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.

      Sec. 21.5.  NRS 645A.067 is hereby amended to read as follows:

      645A.067  Each escrow agency shall pay the assessment levied by the Commissioner and cooperate fully with the audits and examinations performed pursuant to [NRS 658.055.] section 12 of this act.

      Sec. 22.  NRS 645A.085 is hereby amended to read as follows:

      645A.085  1.  An escrow agency shall immediately notify the Commissioner of any change in the ownership of 5 percent or more of its outstanding voting stock.

      2.  An application must be submitted to the Commissioner, pursuant to NRS 645A.020, by a person who acquires:

      (a) At least 25 percent of the outstanding voting stock of an escrow agency; or

      (b) Any outstanding voting stock of an escrow agency if the change will result in a change in the control of the escrow agency.

      3.  Except as otherwise provided in subsection 5, the Commissioner shall conduct an investigation to determine whether the applicant has the experience, character, financial condition, business reputation and general fitness to command the confidence of the public and to warrant the belief that the business conducted will protect and safeguard the public. If the Commissioner denies the application, he may forbid the applicant from participating in the business of the escrow agency.

      4.  The escrow agency with which the applicant is affiliated shall pay a portion of the cost of the investigation as the Commissioner requires. All money received by the Commissioner pursuant to this section must be [placed in the Investigative Account created pursuant to NRS 232.545.] deposited in the Fund for Mortgage Lending created by section 17 of this act.

      5.  An escrow agency may submit a written request to the Commissioner to waive an investigation pursuant to subsection 3. 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. 23.  NRS 645A.173 is hereby amended to read as follows:

      645A.173  1.  If an escrow for the sale of real property is established, the holder of the escrow shall, on the date of establishment of the escrow, record in writing the number and the date of expiration of the:

      (a) License issued pursuant to chapter 645 of NRS; or

      (b) Certificate of cooperation issued pursuant to NRS 645.605,

of any real estate broker, broker-salesman or salesman who will be paid compensation from money held in the escrow for performing the services of a real estate broker, broker-salesman or salesman in the transaction that is the subject of the escrow. The holder of the escrow is not required to verify independently the validity of the number of the license or certificate.


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      2.  If an escrow for the sale of real property is established and the real property is or will be secured by a mortgage or deed of trust, the holder of the escrow shall, on the date of establishment of the escrow, record in writing the number and the date of expiration of the license issued pursuant to chapter 645B or 645E of NRS of any mortgage broker or mortgage [company] banker associated with the mortgage or deed of trust. The holder of the escrow is not required to verify independently the validity of the number of the license.

      Sec. 24.  Chapter 645B of NRS is hereby amended by adding thereto the provisions set forth as sections 25 to 30, inclusive, of this act.

      Sec. 25.  1.  An advertising spokesperson for a mortgage broker is jointly and severally liable with the mortgage broker for damages caused by the mortgage broker by fraud, embezzlement, misappropriation of property, a violation of the provisions of this chapter or the regulations adopted pursuant thereto, or an action of the mortgage broker that is grounds for disciplinary action, if:

      (a) The advertising spokesperson knew or should have known of the fraud, embezzlement, misappropriation of property, violation of the provisions of this chapter or the regulations adopted pursuant thereto, or action of the mortgage broker that is grounds for disciplinary action; or

      (b) In advertising for the mortgage broker, the advertising spokesperson knew or should have known that:

             (1) The conduct of the advertising spokesperson was likely to deceive, defraud or harm the public or any person who engaged in business with the mortgage broker; or

             (2) The advertising spokesperson was disseminating material information concerning the mortgage broker or the business, products or services of the mortgage broker which was false or misleading.

      2.  As used in this section:

      (a) “Advertising for a mortgage broker” means advertising or otherwise promoting a mortgage broker or the business, products or services of the mortgage broker using any medium of communication.

      (b) “Advertising spokesperson for a mortgage broker” or “advertising spokesperson” means a person who consents to and receives compensation for using his name or likeness in advertising for a mortgage broker.

      Sec. 26.  A person shall not act as or provide any of the services of a mortgage agent or otherwise engage in, carry on or hold himself out as engaging in or carrying on the activities of a mortgage agent unless the person has a license as a mortgage agent issued pursuant to section 27 of this act.

      Sec. 27.  1.  To obtain a license as a mortgage agent, a person must:

      (a) Be a natural person;

      (b) File a written application for a license as a mortgage agent with the office of the Commissioner;

      (c) Comply with the applicable requirements of this chapter; and

      (d) Pay an application fee set by the Commissioner of not more than $185.

      2.  An application for a license as a mortgage agent must:

      (a) Be verified;

      (b) State the name and residence address of the applicant;

      (c) Include a provision by which the applicant gives his written consent to an investigation of his credit history, criminal history and background;


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      (d) Include a verified statement from the mortgage broker with whom the applicant will be associated that expresses the intent of that mortgage broker to associate the applicant with the mortgage broker and to be responsible for the activities of the applicant as a mortgage agent; and

      (e) Include any other information or supporting materials required pursuant to the regulations adopted by the Commissioner or by an order of the Commissioner. Such information or supporting materials may include, without limitation, a complete set of fingerprints from the person and other forms of identification of the person.

      3.  Except as otherwise provided in this chapter, the Commissioner shall issue a license as a mortgage agent to an applicant if:

      (a) The application complies with the applicable requirements of this chapter; and

      (b) The applicant:

             (1) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude;

             (2) Has not had a financial services license suspended or revoked within the immediately preceding 10 years;

             (3) Has not made a false statement of material fact on his application;

             (4) Has not violated any provision of this chapter or chapter 645E of NRS, a regulation adopted pursuant thereto or an order of the Commissioner; and

             (5) Has a good reputation for honesty, trustworthiness and integrity and displays competence to transact the business of a mortgage agent in a manner which safeguards the interests of the general public. The applicant must submit satisfactory proof of these qualifications to the Commissioner.

      4.  Money received by the Commissioner pursuant to this section must be deposited in the Fund for Mortgage Lending created by section 17 of this act.

      Sec. 28.  1.  A license as a mortgage agent issued pursuant to section 27 of this act expires 1 year after the date the license is issued, unless it is renewed. To renew a license as a mortgage agent, the holder of the license must submit to the Commissioner each year, on or before the date the license expires:

      (a) An application for renewal;

      (b) Except as otherwise provided in this section, satisfactory proof that the holder of the license as a mortgage agent attended at least 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires; and

      (c) A renewal fee set by the Commissioner of not more than $170.

      2.  If the holder of the license as a mortgage agent fails to submit any item required pursuant to subsection 1 to the Commissioner each year on or before the date the license expires, the license is cancelled. The Commissioner may reinstate a cancelled license if the holder of the license submits to the Commissioner:

      (a) An application for renewal;

      (b) The fee required to renew the license pursuant to this section; and

      (c) A reinstatement fee of $75.

      3.  To be issued a duplicate copy of a license as a mortgage agent, a person must make a satisfactory showing of its loss and pay a fee of $10.


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      4.  To change the mortgage broker with whom the mortgage agent is associated, a person must pay a fee of $10.

      5.  Money received by the Commissioner pursuant to this section must be deposited in the Fund for Mortgage Lending created by section 17 of this act.

      6.  The Commissioner may provide by regulation that any hours of a certified course of continuing education attended during a 12-month period, but not needed to satisfy a requirement set forth in this section for the 12-month period in which the hours were taken, may be used to satisfy a requirement set forth in this section for a later 12-month period.

      7.  As used in this section, “certified course of continuing education” has the meaning ascribed to it in NRS 645B.051.

      Sec. 29.  1.  In addition to any other requirement for the issuance of a license as a mortgage agent pursuant to section 27 of this act, an applicant for the issuance of the license must include his social security number in his application.

      2.  In addition to any other requirement for the issuance or renewal of a license as a mortgage agent pursuant to section 27 or 28 of this act, an applicant for the issuance or renewal of the license shall submit to the Commissioner the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      3.  The Commissioner shall include the statement required pursuant to subsection 2 in:

      (a) The application or any other forms that must be submitted for the issuance or renewal of a license as a mortgage agent; or

      (b) A separate form prescribed by the Commissioner.

      4.  The license as a mortgage agent may not be issued or renewed by the Commissioner if the applicant:

      (a) Fails to submit the statement required pursuant to subsection 2; or

      (b) Indicates on the statement submitted pursuant to subsection 2 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

      5.  If an applicant indicates on the statement submitted pursuant to subsection 2 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      Sec. 30.  1.  Any mortgage broker or mortgage agent licensed under the provisions of this chapter who is called into the military service of the United States shall, at his request, be relieved from compliance with the provisions of this chapter and placed on inactive status for the period of such military service and for a period of 6 months after discharge therefrom.

      2.  At any time within 6 months after termination of such service, if the mortgage broker or mortgage agent complies with the provisions of subsection 1, the mortgage broker or mortgage agent may be reinstated, without having to meet any qualification or requirement other than the payment of the reinstatement fee, as provided in NRS 645B.050 or section 28 of this act, and the mortgage broker or mortgage agent is not required to make payment of the renewal fee for the current year.


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without having to meet any qualification or requirement other than the payment of the reinstatement fee, as provided in NRS 645B.050 or section 28 of this act, and the mortgage broker or mortgage agent is not required to make payment of the renewal fee for the current year.

      3.  Any mortgage broker or mortgage agent seeking to qualify for reinstatement, as provided in subsections 1 and 2, must present a certified copy of his honorable discharge or certificate of satisfactory service to the Commissioner.

      Sec. 31.  NRS 645B.010 is hereby amended to read as follows:

      645B.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS [645B.0103] 645B.0105 to 645B.0135, inclusive, have the meanings ascribed to them in those sections.

      Sec. 32.  NRS 645B.0105 is hereby amended to read as follows:

      645B.0105  “Commissioner” means the Commissioner of [Financial Institutions.] Mortgage Lending.

      Sec. 33.  NRS 645B.0111 is hereby amended to read as follows:

      645B.0111  “Division” means the Division of [Financial Institutions] Mortgage Lending of the Department of Business and Industry.

      Sec. 34.  NRS 645B.0123 is hereby amended to read as follows:

      645B.0123  “Licensee” means a person who is licensed as a mortgage broker pursuant to this chapter. The term does not include a person issued a license as a mortgage agent pursuant to section 27 of this act.

      Sec. 35.  NRS 645B.0127 is hereby amended to read as follows:

      645B.0127  1.  “Mortgage broker” means a person who, directly or indirectly:

      (a) Holds himself out for hire to serve as an agent for any person in an attempt to obtain a loan which will be secured by a lien on real property;

      (b) Holds himself out for hire to serve as an agent for any person who has money to lend, if the loan is or will be secured by a lien on real property;

      (c) Holds himself out as being able to make loans secured by liens on real property;

      (d) Holds himself out as being able to buy or sell notes secured by liens on real property; or

      (e) Offers for sale in this state any security which is exempt from registration under state or federal law and purports to make investments in promissory notes secured by liens on real property.

      2.  The term does not include a person who is licensed as a mortgage [company,] banker, as defined in NRS 645E.100, unless the person is also licensed as a mortgage broker pursuant to this chapter.

      Sec. 36.  NRS 645B.015 is hereby amended to read as follows:

      645B.015  Except as otherwise provided in NRS 645B.016, the provisions of this chapter do not apply to:

      1.  Any person doing business under the laws of this state, any other state or the United States relating to banks, savings banks, trust companies, savings and loan associations, consumer finance companies, industrial loan companies, credit unions, thrift companies or insurance companies, unless the business conducted in this state is not subject to supervision by the regulatory authority of the other jurisdiction, in which case licensing pursuant to this chapter is required.

      2.  A real estate investment trust, as defined in 26 U.S.C. § 856, unless the business conducted in this state is not subject to supervision by the regulatory authority of the other jurisdiction, in which case licensing pursuant to this chapter is required.


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regulatory authority of the other jurisdiction, in which case licensing pursuant to this chapter is required.

      3.  An employee benefit plan, as defined in 29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the plan’s trustee.

      4.  An attorney at law rendering services in the performance of his duties as an attorney at law.

      5.  A real estate broker rendering services in the performance of his duties as a real estate broker.

      6.  [Except as otherwise provided in this subsection and NRS 645B.690, any firm or corporation:

      (a) Whose principal purpose or activity is lending money on real property which is secured by a mortgage;

      (b) Approved by the Federal National Mortgage Association as a seller and servicer; and

      (c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.

A firm or corporation is not exempt from the provisions of this chapter pursuant to this subsection if it maintains any accounts described in subsection 1 of NRS 645B.175 or if it offers for sale in this state any unregistered security under state or federal law and purports to make investments in promissory notes secured by liens on real property. A firm or corporation which is exempted pursuant to this subsection must submit annually as a condition of its continued exemption a certified statement by an independent certified public accountant that the firm or corporation does not maintain any such accounts. This subsection does not prohibit an exempt firm or corporation from maintaining accounts described in NRS 645B.170 and subsection 4 of NRS 645B.175.

      7.]  Any person doing any act under an order of any court.

      [8.] 7.  Any one natural person, or husband and wife, who provides money for investment in loans secured by a lien on real property, on his own account, unless such a person makes a loan secured by a lien on real property using his own money and assigns all or a part of his interest in the loan to another person, other than his spouse or child, within 5 years after the date on which the loan is made or the deed of trust is recorded, whichever occurs later.

      [9.] 8.  Agencies of the United States and of this state and its political subdivisions, including the Public Employees’ Retirement System.

      [10.] 9.  A seller of real property who offers credit secured by a mortgage of the property sold.

      Sec. 37.  NRS 645B.016 is hereby amended to read as follows:

      645B.016  Except as otherwise provided in NRS 645B.690:

      1.  A person who claims an exemption from the provisions of this chapter pursuant to subsection 1 [or 6] of NRS 645B.015 must:

      (a) File a written application for a certificate of exemption with the office of the Commissioner;

      (b) Pay the fee required pursuant to NRS 645B.050; and

      (c) Include with the written application satisfactory proof that the person meets the requirements of subsection 1 [or 6] of NRS 645B.015.

      2.  The Commissioner may require a person who claims an exemption from the provisions of this chapter pursuant to subsections 2 to [5, inclusive, or 7 to 10,] 9, inclusive, of NRS 645B.015 to:


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      (a) File a written application for a certificate of exemption with the office of the Commissioner;

      (b) Pay the fee required pursuant to NRS 645B.050; and

      (c) Include with the written application satisfactory proof that the person meets the requirements of at least one of those exemptions.

      3.  A certificate of exemption expires automatically if, at any time, the person who claims the exemption no longer meets the requirements of at least one exemption set forth in the provisions of NRS 645B.015.

      4.  If a certificate of exemption expires automatically pursuant to this section, the person shall not provide any of the services of a mortgage broker or mortgage agent or otherwise engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage broker [,] or mortgage agent unless the person applies for and is issued:

      (a) A license as a mortgage broker or mortgage agent, as applicable, pursuant to this chapter; or

      (b) Another certificate of exemption.

      5.  The Commissioner may impose upon a person who is required to apply for a certificate of exemption or who holds a certificate of exemption an administrative fine of not more than $10,000 for each violation that he commits, if the person:

      (a) Has knowingly made or caused to be made to the Commissioner any false representation of material fact;

      (b) Has suppressed or withheld from the Commissioner any information which the person possesses and which, if submitted by him, would have rendered the person ineligible to hold a certificate of exemption; or

      (c) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner that applies to a person who is required to apply for a certificate of exemption or who holds a certificate of exemption.

      Sec. 38.  NRS 645B.035 is hereby amended to read as follows:

      645B.035  1.  A license as a mortgage broker entitles a licensee to engage only in the activities authorized by this chapter.

      2.  The provisions of this chapter do not prohibit a licensee from:

      (a) Holding a license as a mortgage [company] banker pursuant to chapter 645E of NRS; or

      (b) Conducting the business of a mortgage [company] banker and the business of a mortgage broker in the same office or place of business.

      Sec. 39.  NRS 645B.050 is hereby amended to read as follows:

      645B.050  1.  A license as a mortgage broker issued pursuant to this chapter expires each year on June 30, unless it is renewed. To renew such a license, the licensee must submit to the Commissioner on or before [June 30] May 31 of each year:

      (a) An application for renewal;

      (b) The fee required to renew the license pursuant to this section;

      (c) If the licensee is a natural person, the statement required pursuant to NRS 645B.023; and

      (d) The information required pursuant to NRS 645B.051.

      2.  If the licensee fails to submit any item required pursuant to subsection 1 to the Commissioner on or before [June 30] May 31 of any year, the license is cancelled [.] as of June 30 of that year. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner:


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      (a) An application for renewal;

      (b) The fee required to renew the license pursuant to this section;

      (c) If the licensee is a natural person, the statement required pursuant to NRS 645B.023;

      (d) The information required pursuant to NRS 645B.051; and

      (e) Except as otherwise provided in this section, a reinstatement fee of $200.

      3.  Except as otherwise provided in NRS 645B.016, a certificate of exemption issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a certificate of exemption, a person must submit to the Commissioner on or before [December 31] November 30 of each year:

      (a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter; and

      (b) The fee required to renew the certificate of exemption.

      4.  If the person fails to submit any item required pursuant to subsection 3 to the Commissioner on or before [December 31] November 30 of any year, the certificate of exemption is cancelled [.] as of December 31 of that year. Except as otherwise provided in NRS 645B.016, the Commissioner may reinstate a cancelled certificate of exemption if the person submits to the Commissioner:

      (a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter;

      (b) The fee required to renew the certificate of exemption; and

      (c) Except as otherwise provided in this section, a reinstatement fee of $100.

      5.  Except as otherwise provided in this section, a person must pay the following fees to apply for, to be issued or to renew a license as a mortgage broker pursuant to this chapter:

      (a) To file an original application or a license, $1,500 for the principal office and $40 for each branch office. The person 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 paragraph must be placed in the Investigative Account created by NRS 232.545.]

      (b) To be issued a license, $1,000 for the principal office and $60 for each branch office.

      (c) To renew a license, $500 for the principal office and $100 for each branch office.

      6.  Except as otherwise provided in this section, a person must pay the following fees to apply for or to renew a certificate of exemption pursuant to this chapter:

      (a) To file an application for a certificate of exemption, $200.

      (b) To renew a certificate of exemption, $100.

      7.  To be issued a duplicate copy of any license or certificate of exemption, a person must make a satisfactory showing of its loss and pay a fee of $10.

      8.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.]


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the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.

      9.  The Commissioner may, by regulation, increase any fee set forth in this section if the Commissioner determines that such an increase is necessary for the Commissioner to carry out his duties pursuant to this chapter. The amount of any increase in a fee pursuant to this subsection must not exceed the amount determined to be necessary for the Commissioner to carry out his duties pursuant to this chapter.

      Sec. 40.  NRS 645B.050 is hereby amended to read as follows:

      645B.050  1.  A license as a mortgage broker issued pursuant to this chapter expires each year on June 30, unless it is renewed. To renew such a license, the licensee must submit to the Commissioner on or before [June 30] May 31 of each year:

      (a) An application for renewal;

      (b) The fee required to renew the license pursuant to this section; and

      (c) The information required pursuant to NRS 645B.051.

      2.  If the licensee fails to submit any item required pursuant to subsection 1 to the Commissioner on or before [June 30] May 31 of any year, the license is cancelled [.] as of June 30 of that year. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner:

      (a) An application for renewal;

      (b) The fee required to renew the license pursuant to this section;

      (c) The information required pursuant to NRS 645B.051; and

      (d) Except as otherwise provided in this section, a reinstatement fee of $200.

      3.  Except as otherwise provided in NRS 645B.016, a certificate of exemption issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a certificate of exemption, a person must submit to the Commissioner on or before [December 31] November 30 of each year:

      (a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter; and

      (b) The fee required to renew the certificate of exemption.

      4.  If the person fails to submit any item required pursuant to subsection 3 to the Commissioner on or before [December 31] November 30 of any year, the certificate of exemption is cancelled [.] as of December 31 of that year. Except as otherwise provided in NRS 645B.016, the Commissioner may reinstate a cancelled certificate of exemption if the person submits to the Commissioner:

      (a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter;

      (b) The fee required to renew the certificate of exemption; and

      (c) Except as otherwise provided in this section, a reinstatement fee of $100.

      5.  Except as otherwise provided in this section, a person must pay the following fees to apply for, to be issued or to renew a license as a mortgage broker pursuant to this chapter:

      (a) To file an original application for a license, $1,500 for the principal office and $40 for each branch office. The person must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary.


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additional expenses incurred in the process of investigation as the Commissioner deems necessary. [All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.]

      (b) To be issued a license, $1,000 for the principal office and $60 for each branch office.

      (c) To renew a license, $500 for the principal office and $100 for each branch office.

      6.  Except as otherwise provided in this section, a person must pay the following fees to apply for or to renew a certificate of exemption pursuant to this chapter:

      (a) To file an application for a certificate of exemption, $200.

      (b) To renew a certificate of exemption, $100.

      7.  To be issued a duplicate copy of any license or certificate of exemption, a person must make a satisfactory showing of its loss and pay a fee of $10.

      8.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.

      9.  The Commissioner may, by regulation, increase any fee set forth in this section if the Commissioner determines that such an increase is necessary for the Commissioner to carry out his duties pursuant to this chapter. The amount of any increase in a fee pursuant to this subsection must not exceed the amount determined to be necessary for the Commissioner to carry out his duties pursuant to this chapter.

      Sec. 41.  NRS 645B.051 is hereby amended to read as follows:

      645B.051  1.  [In] Except as otherwise provided in this section, in addition to the requirements set forth in NRS 645B.050, to renew a license [:] as a mortgage broker:

      (a) If the licensee is a natural person, the licensee must submit to the Commissioner satisfactory proof that the licensee attended at least [5] 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

      (b) If the licensee is not a natural person, the licensee must submit to the Commissioner satisfactory proof that each natural person who supervises the daily business of the licensee attended at least [5] 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

      2.  The Commissioner may provide by regulation that any hours of a certified course of continuing education attended during a 12-month period, but not needed to satisfy a requirement set forth in this section for the 12-month period in which the course was taken, may be used to satisfy a requirement set forth in this section for a later 12-month period.

      3.  As used in this section, “certified course of continuing education” means a course of continuing education which relates to the mortgage industry or mortgage transactions and which is [:

      (a) Certified by the] certified by:

      (a) The National Association of Mortgage Brokers or any successor in interest to that organization; or

      (b) [Certified in a manner established by the Commissioner, if the National Association of Mortgage Brokers or any successor in interest to that organization ceases to exist.]


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organization ceases to exist.] Any organization designated for this purpose by the Commissioner by regulation.

      Sec. 42.  NRS 645B.060 is hereby amended to read as follows:

      645B.060  1.  Subject to the administrative control of the Director of the Department of Business and Industry, the Commissioner shall exercise general supervision and control over mortgage brokers and mortgage agents doing business in this state.

      2.  In addition to the other duties imposed upon him by law, the Commissioner shall:

      (a) Adopt any regulations that are necessary to carry out the provisions of this chapter, except as to loan brokerage fees.

      (b) Conduct such investigations as may be necessary to determine whether any person has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

      (c) Conduct an annual examination of each mortgage broker doing business in this state. The annual examination must include, without limitation, a formal exit review with the mortgage broker. The Commissioner shall adopt regulations prescribing:

             (1) Standards for determining the rating of each mortgage broker based upon the results of the annual examination; and

             (2) Procedures for resolving any objections made by the mortgage broker to the results of the annual examination. The results of the annual examination may not be opened to public inspection pursuant to NRS 645B.090 until any objections made by the mortgage broker have been decided by the Commissioner.

      (d) Conduct such other examinations, periodic or special audits, investigations and hearings as may be necessary and proper for the efficient administration of the laws of this state regarding mortgage brokers and mortgage agents. The Commissioner shall adopt regulations specifying the general guidelines that will be followed when a periodic or special audit of a mortgage broker is conducted pursuant to this chapter.

      (e) Classify as confidential certain records and information obtained by the Division when those matters are obtained from a governmental agency upon the express condition that they remain confidential. This paragraph does not limit examination by the Legislative Auditor.

      (f) Conduct such examinations and investigations as are necessary to ensure that mortgage brokers and mortgage agents meet the requirements of this chapter for obtaining a license, both at the time of the application for a license and thereafter on a continuing basis.

      3.  For each special audit, investigation or examination, a mortgage broker or mortgage agent shall pay a fee based on the rate established pursuant to [NRS 658.101.] section 15 of this act.

      Sec. 42.5.  NRS 645B.075 is hereby amended to read as follows:

      645B.075  Each mortgage broker shall pay the assessment levied pursuant to [NRS 658.055.] section 12 of this act. Each mortgage broker and mortgage agent shall cooperate fully with the audits and examinations performed pursuant thereto.

      Sec. 43.  NRS 645B.450 is hereby amended to read as follows:

      645B.450  1.  [A person shall not act as or provide any of the services of a mortgage agent or otherwise engage in, carry on or hold himself out as engaging in or carrying on the activities of a mortgage agent if the person:


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      (a) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

      (b) Has had a financial services license or registration suspended or revoked within the immediately preceding 10 years.

      2.] A person licensed as a mortgage agent pursuant to the provisions of section 27 of this act may not be associated with or employed by more than one mortgage broker at the same time.

      [3.  A mortgage broker shall register with the Division each person who will be associated with or employed by the mortgage broker as a mortgage agent. A mortgage broker shall register each such person with the Division when the person begins his association or employment with the mortgage broker and annually thereafter. A registration expires 12 months after its effective date.

      4.  To register a person as a mortgage agent, a mortgage broker must:

      (a) Submit to the Division a registration form which is provided by the Division and which:

             (1) States the name, residence address and business address of the person;

             (2) Is signed by the person;

             (3) Includes a provision by which the person gives his written consent to an investigation of his credit history, criminal history and background; and

             (4) Includes any other information or supporting materials required by the regulations adopted by the Commissioner. Such information or supporting materials may include, without limitation, a complete set of fingerprints from the person, the social security number of the person and other forms of identification of the person.

      (b) For each initial registration, pay the actual costs and expenses incurred by the Division to investigate the credit history, criminal history and background of the person. All money received pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.

      (c) For each annual registration, submit to the Division satisfactory proof that the person attended at least 5 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the registration expires.

      5.  Not later than the date on which the mortgage broker submits the information for annual registration required by subsection 4, the person being registered shall pay an annual registration fee of $125. If the person does not pay the annual registration fee, the person shall be deemed to be unregistered for the purposes of this chapter.

      6.] 2.  A mortgage broker shall not associate with or employ a person as a mortgage agent or authorize a person to be associated with the mortgage broker as a mortgage agent if the mortgage [broker has not registered the person] agent is not licensed with the Division pursuant to [this section or if the person:

      (a) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

      (b) Has had a financial services license or registration suspended or revoked within the immediately preceding 10 years.

      7.] section 27 of this act.


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      3.  If a mortgage agent terminates his association or employment with a mortgage broker for any reason, the mortgage broker shall, not later than the third business day following the date of termination:

      (a) Deliver to the mortgage agent or send by certified mail to the last known residence address of the mortgage agent a written statement which advises him that his termination is being reported to the Division; and

      (b) Deliver or send by certified mail to the Division:

             (1) The license or license number of the mortgage agent;

             (2) A written statement of the circumstances surrounding the termination; and

             [(2)] (3) A copy of the written statement that the mortgage broker delivers or mails to the mortgage agent pursuant to paragraph (a).

      [8.  As used in this section, “certified course of continuing education” has the meaning ascribed to it in NRS 645B.051.]

      Sec. 44.  NRS 645B.620 is hereby amended to read as follows:

      645B.620  1.  Whether or not a complaint has been filed, the Commissioner shall investigate a mortgage broker , mortgage agent or other person if, for any reason, it appears that:

      (a) The mortgage broker or mortgage agent is conducting business in an unsafe and injurious manner or in violation of any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;

      (b) The person is offering or providing any of the services of a mortgage broker or mortgage agent or otherwise engaging in, carrying on or holding himself out as engaging in or carrying on the business of a mortgage broker or mortgage agent without being appropriately licensed or exempt from licensing pursuant to the provisions of this chapter; or

      (c) The person is violating any other provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

      2.  If, upon investigation, the Commissioner has reasonable cause to believe that the mortgage broker , mortgage agent or other person has engaged in any conduct or committed any violation described in subsection 1:

      (a) The Commissioner shall notify the Attorney General of the conduct or violation and, if applicable, the Commissioner shall immediately take possession of the property of the mortgage broker pursuant to NRS 645B.630; and

      (b) The Attorney General shall, if appropriate:

             (1) Investigate and prosecute the mortgage broker , mortgage agent or other person pursuant to NRS 645B.800; and

             (2) Bring a civil action to:

                   (I) Enjoin the mortgage broker , mortgage agent or other person from engaging in the conduct, operating the business or committing the violation; and

                   (II) Enjoin any other person who has encouraged, facilitated, aided or participated in the conduct, the operation of the business or the commission of the violation, or who is likely to engage in such acts, from engaging in or continuing to engage in such acts.

      3.  If the Attorney General brings a civil action pursuant to subsection 2, the district court of any county of this state is hereby vested with the jurisdiction in equity to enjoin the conduct, the operation of the business or the commission of the violation and may grant any injunctions that are necessary to prevent and restrain the conduct, the operation of the business or the commission of the violation.


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the commission of the violation. During the pendency of the proceedings before the district court:

      (a) The court may issue any temporary restraining orders as may appear to be just and proper;

      (b) The findings of the Commissioner shall be deemed to be prima facie evidence and sufficient grounds, in the discretion of the court, for the ex parte issuance of a temporary restraining order; and

      (c) The Attorney General may apply for and on due showing is entitled to have issued the court’s subpoena requiring forthwith the appearance of any person to:

             (1) Produce any documents, books and records as may appear necessary for the hearing of the petition; and

             (2) Testify and give evidence concerning the conduct complained of in the petition.

      Sec. 45.  NRS 645B.670 is hereby amended to read as follows:

      645B.670  Except as otherwise provided in NRS 645B.690:

      1.  For each violation committed by an applicant [,] for a license issued pursuant to this chapter, whether or not he is issued a license, the Commissioner may impose upon the applicant an administrative fine of not more than $10,000, if the applicant:

      (a) Has knowingly made or caused to be made to the Commissioner any false representation of material fact;

      (b) Has suppressed or withheld from the Commissioner any information which the applicant possesses and which, if submitted by him, would have rendered the applicant ineligible to be licensed pursuant to the provisions of this chapter; or

      (c) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner in completing and filing his application for a license or during the course of the investigation of his application for a license.

      2.  For each violation committed by a licensee, the Commissioner may impose upon the licensee an administrative fine of not more than $10,000, may suspend, revoke or place conditions upon his license, or may do both, if the licensee, whether or not acting as such:

      (a) Is insolvent;

      (b) Is grossly negligent or incompetent in performing any act for which he is required to be licensed pursuant to the provisions of this chapter;

      (c) Does not conduct his business in accordance with law or has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;

      (d) Is in such financial condition that he cannot continue in business with safety to his customers;

      (e) Has made a material misrepresentation in connection with any transaction governed by this chapter;

      (f) Has suppressed or withheld from a client any material facts, data or other information relating to any transaction governed by the provisions of this chapter which the licensee knew or, by the exercise of reasonable diligence, should have known;

      (g) Has knowingly made or caused to be made to the Commissioner any false representation of material fact or has suppressed or withheld from the Commissioner any information which the licensee possesses and which, if submitted by him, would have rendered the licensee ineligible to be licensed pursuant to the provisions of this chapter;


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submitted by him, would have rendered the licensee ineligible to be licensed pursuant to the provisions of this chapter;

      (h) Has failed to account to persons interested for all money received for a trust account;

      (i) Has refused to permit an examination by the Commissioner of his books and affairs or has refused or failed, within a reasonable time, to furnish any information or make any report that may be required by the Commissioner pursuant to the provisions of this chapter or a regulation adopted pursuant to this chapter;

      (j) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude;

      (k) Has refused or failed to pay, within a reasonable time, any fees, assessments, costs or expenses that the licensee is required to pay pursuant to this chapter or a regulation adopted pursuant to this chapter;

      (l) Has failed to satisfy a claim made by a client which has been reduced to judgment;

      (m) Has failed to account for or to remit any money of a client within a reasonable time after a request for an accounting or remittal;

      (n) Has commingled the money or other property of a client with his own or has converted the money or property of others to his own use;

      (o) Has engaged in any other conduct constituting a deceitful, fraudulent or dishonest business practice;

      (p) Has repeatedly violated the policies and procedures of the mortgage broker;

      (q) Has failed to exercise reasonable supervision over the activities of a mortgage agent as required by NRS 645B.460;

      (r) Has instructed a mortgage agent to commit an act that would be cause for the revocation of the license of the mortgage broker, whether or not the mortgage agent commits the act;

      (s) Has employed a person as a mortgage agent or authorized a person to be associated with the licensee as a mortgage agent at a time when the licensee knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person:

             (1) Had been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

             (2) Had a financial services license or registration suspended or revoked within the immediately preceding 10 years; or

      (t) Has not conducted verifiable business as a mortgage broker for 12 consecutive months, except in the case of a new applicant. The Commissioner shall determine whether a mortgage broker is conducting business by examining the monthly reports of activity submitted by the licensee or by conducting an examination of the licensee.

      Sec. 46.  NRS 645B.680 is hereby amended to read as follows:

      645B.680  1.  If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license as a mortgage broker [,] or mortgage agent, the Commissioner shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.


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with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Commissioner shall reinstate a license as a mortgage broker or mortgage agent that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      Sec. 47.  NRS 645B.690 is hereby amended to read as follows:

      645B.690  1.  If a person offers or provides any of the services of a mortgage broker or mortgage agent or otherwise engages in, carries on or holds himself out as engaging in or carrying on the business of a mortgage broker or mortgage agent and, at the time:

      (a) The person was required to have a license pursuant to this chapter and the person did not have such a license; or

      (b) The person’s license was suspended or revoked pursuant to this chapter,

the Commissioner shall impose upon the person an administrative fine of not more than $10,000 for each violation and, if the person has a license, the Commissioner shall revoke it.

      2.  [If a person is exempt from the provisions of this chapter pursuant to subsection 6 of NRS 645B.015 and the person, while exempt, maintains, offers to maintain or holds himself out as maintaining any accounts described in subsection 1 of NRS 645B.175 or otherwise engages in, offers to engage in or holds himself out as engaging in any activity that would remove the person from the exemption set forth in subsection 6 of NRS 645B.015, the Commissioner shall impose upon the person an administrative fine of not more than $10,000 for each violation and the Commissioner shall revoke the person’s exemption. If the Commissioner revokes an exemption pursuant to this subsection, the person may not again be granted the same or a similar exemption from the provisions of this chapter. The person may apply for a license pursuant to this chapter unless otherwise prohibited by specific statute.

      3.]  If a mortgage broker violates any provision of subsection 1 of NRS 645B.080 and the mortgage broker fails, without reasonable cause, to remedy the violation within 20 business days after being ordered by the Commissioner to do so or within such later time as prescribed by the Commissioner, or if the Commissioner orders a mortgage broker to provide information, make a report or permit an examination of his books or affairs pursuant to this chapter and the mortgage broker fails, without reasonable cause, to comply with the order within 20 business days or within such later time as prescribed by the Commissioner, the Commissioner shall:

      (a) Impose upon the mortgage broker an administrative fine of not more than $10,000 for each violation;

      (b) Suspend or revoke the license of the mortgage broker; and

      (c) Conduct a hearing to determine whether the mortgage broker is conducting business in an unsafe and injurious manner that may result in danger to the public and whether it is necessary for the Commissioner to take possession of the property of the mortgage broker pursuant to NRS 645B.630.


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      Sec. 48.  NRS 645B.900 is hereby amended to read as follows:

      645B.900  It is unlawful for any person to offer or provide any of the services of a mortgage broker or mortgage agent or otherwise to engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage broker or mortgage agent without first obtaining [a license as a mortgage broker] the applicable license issued pursuant to this chapter, unless the person:

      1.  Is exempt from the provisions of this chapter; and

      2.  Complies with the requirements for that exemption.

      Sec. 48.5.  NRS 645E.020 is hereby amended to read as follows:

      645E.020  “Applicant” means a person who applies for licensure as a mortgage [company] banker pursuant to this chapter.

      Sec. 49.  NRS 645E.050 is hereby amended to read as follows:

      645E.050  “Commissioner” means the Commissioner of [Financial Institutions.] Mortgage Lending.

      Sec. 50.  NRS 645E.070 is hereby amended to read as follows:

      645E.070  “Division” means the Division of [Financial Institutions] Mortgage Lending of the Department of Business and Industry.

      Sec. 51.  NRS 645E.090 is hereby amended to read as follows:

      645E.090  “Licensee” means a person who is licensed as a mortgage [company] banker pursuant to this chapter.

      Sec. 52.  NRS 645E.100 is hereby amended to read as follows:

      645E.100  1.  “Mortgage [company”] banker” means any of the following:

      (a) A person who, directly or indirectly:

             (1) Holds himself out as being able to:

                   (I) Buy or sell notes secured by liens on real property; or

                   (II) Make loans secured by liens on real property using his own money; and

             (2) Does not engage in any other act or transaction described in the definition of “mortgage broker,” as set forth in NRS 645B.0127, unless the person is also licensed as a mortgage broker pursuant to chapter 645B of NRS.

      (b) A person who, directly or indirectly:

             (1) Negotiates, originates or makes or offers to negotiate, originate or make commercial mortgage loans as an agent for or on behalf of an institutional investor; and

             (2) Does not engage in any other act or transaction described in the definition of “mortgage broker,” as set forth in NRS 645B.0127, unless the person is also licensed as a mortgage broker pursuant to chapter 645B of NRS.

      2.  For the purposes of this section, a person does not make a loan secured by a lien on real property using his own money if any portion of the money that is used to make the loan is provided by another person who acquires ownership of or a beneficial interest in the loan.

      Sec. 53.  NRS 645E.130 is hereby amended to read as follows:

      645E.130  The provisions of this chapter do not:

      1.  Limit any statutory or common-law right of a person to bring a civil action against a mortgage [company] banker for any act or omission involved in the transaction of business by or on behalf of the mortgage [company;] banker;


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ê2003 Statutes of Nevada, Page 3559 (Chapter 516, AB 490)ê

 

      2.  Limit the right of the State to punish a person for the violation of any law, ordinance or regulation; or

      3.  Establish a basis for a person to bring a civil action against the State or its officers or employees for any act or omission in carrying out the provisions of this chapter, including, without limitation, any act or omission relating to the disclosure of information or the failure to disclose information pursuant to the provisions of this chapter.

      Sec. 54.  NRS 645E.150 is hereby amended to read as follows:

      645E.150  Except as otherwise provided in NRS 645E.160, the provisions of this chapter do not apply to:

      1.  Any person doing business under the laws of this state, any other state or the United States relating to banks, savings banks, trust companies, savings and loan associations, consumer finance companies, industrial loan companies, credit unions, thrift companies or insurance companies, unless the business conducted in this state is not subject to supervision by the regulatory authority of the other jurisdiction, in which case licensing pursuant to this chapter is required.

      2.  A real estate investment trust, as defined in 26 U.S.C. § 856, unless the business conducted in this state is not subject to supervision by the regulatory authority of the other jurisdiction, in which case licensing pursuant to this chapter is required.

      3.  An employee benefit plan, as defined in 29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the plan’s trustee.

      4.  An attorney at law rendering services in the performance of his duties as an attorney at law.

      5.  A real estate broker rendering services in the performance of his duties as a real estate broker.

      6.  [Any firm or corporation:

      (a) Whose principal purpose or activity is lending money on real property which is secured by a mortgage;

      (b) Approved by the Federal National Mortgage Association as a seller and servicer; and

      (c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.

      7.]  Any person doing any act under an order of any court.

      [8.] 7.  Any one natural person, or husband and wife, who provides money for investment in loans secured by a lien on real property, on his own account, unless such a person makes a loan secured by a lien on real property using his own money and assigns all or a part of his interest in the loan to another person, other than his spouse or child, within 5 years after the date on which the loan is made or the deed of trust is recorded, whichever occurs later.

      [9.] 8.  Agencies of the United States and of this state and its political subdivisions, including the public employees’ retirement system.

      [10.] 9.  A seller of real property who offers credit secured by a mortgage of the property sold.

      Sec. 55.  NRS 645E.160 is hereby amended to read as follows:

      645E.160  1.  A person who claims an exemption from the provisions of this chapter pursuant to subsection 1 [or 6] of NRS 645E.150 must:

      (a) File a written application for a certificate of exemption with the Office of the Commissioner;

      (b) Pay the fee required pursuant to NRS 645E.280; and


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      (c) Include with the written application satisfactory proof that the person meets the requirements of subsection 1 [or 6] of NRS 645E.150.

      2.  The Commissioner may require a person who claims an exemption from the provisions of this chapter pursuant to subsections 2 to [5, inclusive, or 7 to 10,] 9, inclusive, of NRS 645E.150 to:

      (a) File a written application for a certificate of exemption with the Office of the Commissioner;

      (b) Pay the fee required pursuant to NRS 645E.280; and

      (c) Include with the written application satisfactory proof that the person meets the requirements of at least one of those exemptions.

      3.  A certificate of exemption expires automatically if, at any time, the person who claims the exemption no longer meets the requirements of at least one exemption set forth in the provisions of NRS 645E.150.

      4.  If a certificate of exemption expires automatically pursuant to this section, the person shall not provide any of the services of a mortgage [company] banker or otherwise engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage [company,] banker, unless the person applies for and is issued:

      (a) A license as a mortgage [company] banker pursuant to this chapter; or

      (b) Another certificate of exemption.

      5.  The Commissioner may impose upon a person who is required to apply for a certificate of exemption or who holds a certificate of exemption an administrative fine of not more than $10,000 for each violation that he commits, if the person:

      (a) Has knowingly made or caused to be made to the Commissioner any false representation of material fact;

      (b) Has suppressed or withheld from the Commissioner any information which the person possesses and which, if submitted by him, would have rendered the person ineligible to hold a certificate of exemption; or

      (c) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner that applies to a person who is required to apply for a certificate of exemption or who holds a certificate of exemption.

      Sec. 56.  NRS 645E.200 is hereby amended to read as follows:

      645E.200  1.  A person who wishes to be licensed as a mortgage [company] banker must file a written application for a license with the Office of the Commissioner and pay the fee required pursuant to NRS 645E.280. An application for a license as a mortgage [company] banker must:

      (a) Be verified.

      (b) State the name, residence address and business address of the applicant and the location of each principal office and branch office at which the mortgage [company] banker will conduct business in this state, including, without limitation, any office or other place of business located outside this state from which the mortgage [company] banker will conduct business in this state.

      (c) State the name under which the applicant will conduct business as a mortgage [company.] banker.

      (d) If the applicant is not a natural person, list the name, residence address and business address of each person who will have an interest in the mortgage [company] banker as a principal, partner, officer, director or trustee, specifying the capacity and title of each such person.


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mortgage [company] banker as a principal, partner, officer, director or trustee, specifying the capacity and title of each such person.

      (e) Indicate the general plan and character of the business.

      (f) State the length of time the applicant has been engaged in the business of a mortgage [company.] banker.

      (g) Include a financial statement of the applicant.

      (h) Include any other information required pursuant to the regulations adopted by the Commissioner or an order of the Commissioner.

      2.  If a mortgage [company] banker will conduct business in this state at one or more branch offices, the mortgage [company] banker must apply for a license for each such branch office.

      3.  Except as otherwise provided in this chapter, the Commissioner shall issue a license to an applicant as a mortgage [company] banker if:

      (a) The application complies with the requirements of this chapter; and

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

             (1) Has a good reputation for honesty, trustworthiness and integrity and displays competence to transact the business of a mortgage [company] banker in a manner which safeguards the interests of the general public. The applicant must submit satisfactory proof of these qualifications to the Commissioner.

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

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

             (4) Has not had a license that was issued pursuant to the provisions of this chapter or chapter 645B of NRS suspended or revoked within the 10 years immediately preceding the date of his application.

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

             (6) Has not violated any provision of this chapter or chapter 645B of NRS, a regulation adopted pursuant thereto or an order of the Commissioner.

      4.  If an applicant is a partnership, corporation or unincorporated association, the Commissioner may refuse to issue a license to the applicant if any member of the partnership or any officer or director of the corporation or unincorporated association has committed any act or omission that would be cause for refusing to issue a license to a natural person.

      5.  A person may apply for a license for an office or other place of business located outside this state from which the applicant will conduct business in this state if the applicant or a subsidiary or affiliate of the applicant has a license issued pursuant to this chapter for an office or other place of business located in this state and if the applicant submits with the application for a license a statement signed by the applicant which states that the applicant agrees to:

      (a) Make available at a location within this state the books, accounts, papers, records and files of the office or place of business located outside this state to the Commissioner or a representative of the Commissioner; or

      (b) Pay the reasonable expenses for travel, meals and lodging of the Commissioner or a representative of the Commissioner incurred during any investigation or examination made at the office or place of business located outside this state.


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ê2003 Statutes of Nevada, Page 3562 (Chapter 516, AB 490)ê

 

investigation or examination made at the office or place of business located outside this state.

The applicant must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.

      Sec. 57.  NRS 645E.210 is hereby amended to read as follows:

      645E.210  1.  In addition to the requirements set forth in NRS 645E.200 and 645E.280, a natural person who applies for the issuance or renewal of a license as a mortgage [company] banker shall submit to the Commissioner:

      (a) In any application for issuance of a license, the social security number of the applicant and the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      (b) In any application for renewal of a license, the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      2.  The Commissioner shall include the statement required pursuant to subsection 1 in:

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

      (b) A separate form prescribed by the Commissioner.

      3.  The Commissioner shall not issue or renew a license as a mortgage [company] banker if the applicant is a natural person who:

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

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

      4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      Sec. 58.  NRS 645E.220 is hereby amended to read as follows:

      645E.220  1.  A mortgage [company] banker shall post each license in a conspicuous place in the office for which the license has been issued.

      2.  A mortgage [company] banker may not transfer or assign a license to another person, unless the Commissioner gives his written approval.

      Sec. 59.  NRS 645E.230 is hereby amended to read as follows:

      645E.230  1.  A license entitles a licensee to engage only in the activities authorized by this chapter.

      2.  The provisions of this chapter do not prohibit a licensee from:

      (a) Holding a license as a mortgage broker pursuant to chapter 645B of NRS; or

      (b) Conducting the business of a mortgage [company] banker and the business of a mortgage broker in the same office or place of business.

      Sec. 60.  NRS 645E.280 is hereby amended to read as follows:

      645E.280  1.  A license issued to a mortgage [company] banker pursuant to this chapter expires each year on December 31, unless it is renewed.


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ê2003 Statutes of Nevada, Page 3563 (Chapter 516, AB 490)ê

 

renewed. To renew a license, the licensee must submit to the Commissioner on or before December 31 of each year:

      (a) An application for renewal that complies with the requirements of this chapter; and

      (b) The fee required to renew the license pursuant to this section.

      2.  If the licensee fails to submit any item required pursuant to subsection 1 to the Commissioner on or before December 31 of any year, the license is cancelled. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner:

      (a) An application for renewal that complies with the requirements of this chapter;

      (b) The fee required to renew the license pursuant to this section; and

      (c) A reinstatement fee of $200.

      3.  Except as otherwise provided in NRS 645E.160, a certificate of exemption issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a certificate of exemption, a person must submit to the Commissioner on or before December 31 of each year:

      (a) An application for renewal that complies with the requirements of this chapter; and

      (b) The fee required to renew the certificate of exemption.

      4.  If the person fails to submit any item required pursuant to subsection 3 to the Commissioner on or before December 31 of any year, the certificate of exemption is cancelled. Except as otherwise provided in NRS 645E.160, the Commissioner may reinstate a cancelled certificate of exemption if the person submits to the Commissioner:

      (a) An application for renewal that complies with the requirements of this chapter;

      (b) The fee required to renew the certificate of exemption; and

      (c) A reinstatement fee of $100.

      5.  A person must pay the following fees to apply for, to be issued or to renew a license as a mortgage [company] banker pursuant to this chapter:

      (a) To file an original application for a license, $1,500 for the principal office and $40 for each branch office. The person 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 paragraph must be placed in the Investigative Account created by NRS 232.545.]

      (b) To be issued a license, $1,000 for the principal office and $60 for each branch office.

      (c) To renew a license, $500 for the principal office and $100 for each branch office.

      6.  A person must pay the following fees to apply for or to renew a certificate of exemption pursuant to this chapter:

      (a) To file an application for a certificate of exemption, $200.

      (b) To renew a certificate of exemption, $100.

      7.  To be issued a duplicate copy of any license or certificate of exemption, a person must make a satisfactory showing of its loss and pay a fee of $10.

      8.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the [State Treasury for credit to the State General Fund.] Fund for Mortgage Lending created by section 17 of this act.


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ê2003 Statutes of Nevada, Page 3564 (Chapter 516, AB 490)ê

 

      Sec. 61.  NRS 645E.300 is hereby amended to read as follows:

      645E.300  1.  Subject to the administrative control of the Director of the Department of Business and Industry, the Commissioner shall exercise general supervision and control over mortgage [companies] bankers doing business in this state.

      2.  In addition to the other duties imposed upon him by law, the Commissioner shall:

      (a) Adopt any regulations that are necessary to carry out the provisions of this chapter, except as to loan fees.

      (b) Conduct such investigations as may be necessary to determine whether any person has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

      (c) Conduct an annual examination of each mortgage [company] banker doing business in this state.

      (d) Conduct such other examinations, periodic or special audits, investigations and hearings as may be necessary and proper for the efficient administration of the laws of this state regarding mortgage [companies.] bankers.

      (e) Classify as confidential certain records and information obtained by the Division when those matters are obtained from a governmental agency upon the express condition that they remain confidential. This paragraph does not limit examination by the Legislative Auditor.

      (f) Conduct such examinations and investigations as are necessary to ensure that mortgage [companies] bankers meet the requirements of this chapter for obtaining a license, both at the time of the application for a license and thereafter on a continuing basis.

      3.  For each special audit, investigation or examination, a mortgage [company] banker shall pay a fee based on the rate established pursuant to [NRS 658.101.] section 15 of this act.

      Sec. 62.  NRS 645E.320 is hereby amended to read as follows:

      645E.320  Each mortgage [company] banker shall pay the assessment levied pursuant to [NRS 658.055] section 12 of this act and cooperate fully with the audits and examinations performed pursuant thereto.

      Sec. 63.  NRS 645E.350 is hereby amended to read as follows:

      645E.350  1.  Each mortgage [company] banker shall keep and maintain at all times at each location where the mortgage [company] banker conducts business in this state complete and suitable records of all mortgage transactions made by the mortgage [company] banker at that location. Each mortgage [company] banker shall also keep and maintain at all times at each such location all original books, papers and data, or copies thereof, clearly reflecting the financial condition of the business of the mortgage [company.] banker.

      2.  Each mortgage [company] banker shall submit to the Commissioner each month a report of the mortgage [company’s] banker’s activity for the previous month. The report must:

      (a) Specify the volume of loans made by the mortgage [company] banker for the month or state that no loans were made in that month;

      (b) Include any information required pursuant to the regulations adopted by the Commissioner; and

      (c) Be submitted to the Commissioner by the 15th day of the month following the month for which the report is made.


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ê2003 Statutes of Nevada, Page 3565 (Chapter 516, AB 490)ê

 

      3.  The Commissioner may adopt regulations prescribing accounting procedures for mortgage [companies] bankers handling trust accounts and the requirements for keeping records relating to such accounts.

      4.  A licensee who operates outside this state an office or other place of business which is licensed pursuant to this chapter shall:

      (a) Make available at a location within this state the books, accounts, papers, records and files of the office or place of business located outside this state to the Commissioner or a representative of the Commissioner; or

      (b) Pay the reasonable expenses for travel, meals and lodging of the Commissioner or a representative of the Commissioner incurred during any investigation or examination made at the office or place of business located outside this state.

The licensee must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.

      Sec. 64.  NRS 645E.360 is hereby amended to read as follows:

      645E.360  1.  Except as otherwise provided in this section, not later than 60 days after the last day of each fiscal year for a mortgage [company,] banker, the mortgage [company] banker shall submit to the Commissioner a financial statement that:

      (a) Is dated not earlier than the last day of the fiscal year; and

      (b) Has been prepared from the books and records of the mortgage [company] banker by an independent public accountant who holds a permit to engage in the practice of public accounting in this state that has not been revoked or suspended.

      2.  The Commissioner may grant a reasonable extension for the submission of a financial statement pursuant to this section if a mortgage [company] banker requests such an extension before the date on which the financial statement is due.

      3.  If a mortgage [company] banker maintains any accounts described in NRS 645E.430, the financial statement submitted pursuant to this section must be audited. The public accountant who prepares the report of an audit shall submit a copy of the report to the Commissioner at the same time that he submits the report to the mortgage [company.] banker.

      4.  The Commissioner shall adopt regulations prescribing the scope of an audit conducted pursuant to subsection 3.

      Sec. 65.  NRS 645E.370 is hereby amended to read as follows:

      645E.370  1.  Except as otherwise provided in this section or by specific statute, all papers, documents, reports and other written instruments filed with the Commissioner pursuant to this chapter are open to public inspection.

      2.  The Commissioner may withhold from public inspection or refuse to disclose to a person, for such time as the Commissioner considers necessary, any information that, in his judgment, would:

      (a) Impede or otherwise interfere with an investigation that is currently pending against a mortgage [company;] banker; or

      (b) Have an undesirable effect on the welfare of the public or the welfare of any mortgage [company.] banker.

      Sec. 66.  NRS 645E.390 is hereby amended to read as follows:

      645E.390  1.  The Commissioner must be notified of a transfer of 5 percent or more of the outstanding voting stock of a mortgage [company] banker and must approve a transfer of voting stock of a mortgage [company] banker which constitutes a change of control.


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ê2003 Statutes of Nevada, Page 3566 (Chapter 516, AB 490)ê

 

      2.  The person who acquires stock resulting in a change of control of the mortgage [company] banker shall apply to the Commissioner for approval of the transfer. The application must contain information which shows that the requirements of this chapter for obtaining a license will be satisfied after the change of control. Except as otherwise provided in subsection 3, the Commissioner shall conduct an investigation to determine whether those requirements will be satisfied. If, after the investigation, the Commissioner denies the application, he may forbid the applicant from participating in the business of the mortgage [company.] banker.

      3.  A mortgage [company] banker 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.

      4.  As used in this section, “change of control” means:

      (a) A transfer of voting stock which results in giving a person, directly or indirectly, the power to direct the management and policy of a mortgage [company;] banker; or

      (b) A transfer of at least 25 percent of the outstanding voting stock of a mortgage [company.] banker.

      Sec. 67.  NRS 645E.420 is hereby amended to read as follows:

      645E.420  1.  Except as otherwise provided in subsection 3, the amount of any advance fee, salary, deposit or money paid to any mortgage [company] banker or other person to obtain a loan secured by a lien on real property must be placed in escrow pending completion of the loan or a commitment for the loan.

      2.  The amount held in escrow pursuant to subsection 1 must be released:

      (a) Upon completion of the loan or commitment for the loan, to the mortgage [company] banker or other person to whom the advance fee, salary, deposit or money was paid.

      (b) If the loan or commitment for the loan fails, to the person who made the payment.

      3.  Advance payments to cover reasonably estimated costs paid to third persons are excluded from the provisions of subsections 1 and 2 if the person making them first signs a written agreement which specifies the estimated costs by item and the estimated aggregate cost, and which recites that money advanced for costs will not be refunded. If an itemized service is not performed and the estimated cost thereof is not refunded, the recipient of the advance payment is subject to the penalties provided in NRS 645E.960.

      Sec. 68.  NRS 645E.430 is hereby amended to read as follows:

      645E.430  1.  All money paid to a mortgage [company] banker for payment of taxes or insurance premiums on real property which secures any loan made by the mortgage [company] banker must be deposited in an insured depository financial institution and kept separate, distinct and apart from money belonging to the mortgage [company.] banker. Such money, when deposited, is to be designated as an “impound trust account” or under some other appropriate name indicating that the accounts are not the money of the mortgage [company.] banker.

      2.  The mortgage [company] banker has a fiduciary duty to each debtor with respect to the money in an impound trust account.


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ê2003 Statutes of Nevada, Page 3567 (Chapter 516, AB 490)ê

 

      3.  The mortgage [company] banker shall, upon reasonable notice, account to any debtor whose real property secures a loan made by the mortgage [company] banker for any money which that person has paid to the mortgage [company] banker for the payment of taxes or insurance premiums on the real property.

      4.  The mortgage [company] banker shall, upon reasonable notice, account to the Commissioner for all money in an impound trust account.

      5.  A mortgage [company] banker shall:

      (a) Require contributions to an impound trust account in an amount reasonably necessary to pay the obligations as they become due.

      (b) Within 30 days after the completion of the annual review of an impound trust account, notify the debtor:

             (1) Of the amount by which the contributions exceed the amount reasonably necessary to pay the annual obligations due from the account; and

             (2) That the debtor may specify the disposition of the excess money within 20 days after receipt of the notice. If the debtor fails to specify such a disposition within that time, the mortgage [company] banker shall maintain the excess money in the account.

This subsection does not prohibit a mortgage [company] banker from requiring additional amounts to be paid into an impound trust account to recover a deficiency that exists in the account.

      6.  A mortgage [company] banker shall not make payments from an impound trust account in a manner that causes a policy of insurance to be cancelled or causes property taxes or similar payments to become delinquent.

      Sec. 69.  NRS 645E.440 is hereby amended to read as follows:

      645E.440  1.  Money in an impound trust account is not subject to execution or attachment on any claim against the mortgage [company.] banker.

      2.  It is unlawful for a mortgage [company] banker knowingly to keep or cause to be kept any money in a depository financial institution under the heading of “impound trust account” or any other name designating such money as belonging to the debtors of the mortgage [company,] banker, unless the money has been paid to the mortgage [company] banker by a debtor pursuant to NRS 645E.430 and is being held in trust by the mortgage [company] banker pursuant to the provisions of that section.

      Sec. 70.  NRS 645E.470 is hereby amended to read as follows:

      645E.470  1.  If a person is required to make a payment to a mortgage [company] banker pursuant to the terms of a loan secured by a lien on real property, the mortgage [company] banker may not charge the person a late fee, an additional amount of interest or any other penalty in connection with that payment if the payment is delivered to the mortgage [company] banker before 5 p.m. on:

      (a) The day that the payment is due pursuant to the terms of the loan, if an office of the mortgage [company] banker is open to customers until 5 p.m. on that day; or

      (b) The next day that an office of the mortgage [company] banker is open to customers until 5 p.m., if the provisions of paragraph (a) do not otherwise apply.

      2.  A person and a mortgage [company] banker may not agree to alter or waive the provisions of this section by contract or other agreement, and any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.


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ê2003 Statutes of Nevada, Page 3568 (Chapter 516, AB 490)ê

 

      Sec. 71.  NRS 645E.620 is hereby amended to read as follows:

      645E.620  1.  Whether or not a complaint has been filed, the Commissioner may investigate a mortgage [company] banker or other person if, for any reason, it appears that:

      (a) The mortgage [company] banker is conducting business in an unsafe and injurious manner or in violation of any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;

      (b) The person is offering or providing any of the services of a mortgage [company] banker or otherwise engaging in, carrying on or holding himself out as engaging in or carrying on the business of a mortgage [company] banker without being licensed or exempt from licensing pursuant to the provisions of this chapter; or

      (c) The person is violating any other provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

      2.  If, upon investigation, the Commissioner has reasonable cause to believe that the mortgage [company] banker or other person has engaged in any conduct or committed any violation described in subsection 1, the Commissioner may:

      (a) Advise the district attorney of the county in which the conduct or violation occurred, and the district attorney shall cause the appropriate legal action to be taken against the mortgage [company] banker or other person to enjoin the conduct or the operation of the business or prosecute the violation; and

      (b) Bring a civil action to:

             (1) Enjoin the mortgage [company] banker or other person from engaging in the conduct, operating the business or committing the violation; and

             (2) Enjoin any other person who has encouraged, facilitated, aided or participated in the conduct, the operation of the business or the commission of the violation, or who is likely to engage in such acts, from engaging in or continuing to engage in such acts.

      3.  If the Commissioner brings a civil action pursuant to subsection 2, the district court of any county of this state is hereby vested with the jurisdiction in equity to enjoin the conduct, the operation of the business or the commission of the violation and may grant any injunctions that are necessary to prevent and restrain the conduct, the operation of the business or the commission of the violation. During the pendency of the proceedings before the district court:

      (a) The court may issue any temporary restraining orders as may appear to be just and proper;

      (b) The findings of the Commissioner shall be deemed to be prima facie evidence and sufficient grounds, in the discretion of the court, for the ex parte issuance of a temporary restraining order; and

      (c) The Commissioner may apply for and on due showing is entitled to have issued the court’s subpoena requiring forthwith the appearance of any person to:

             (1) Produce any documents, books and records as may appear necessary for the hearing of the petition; and

             (2) Testify and give evidence concerning the conduct complained of in the petition.


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ê2003 Statutes of Nevada, Page 3569 (Chapter 516, AB 490)ê

 

      Sec. 72.  NRS 645E.630 is hereby amended to read as follows:

      645E.630  1.  In addition to any other action that is permitted pursuant to this chapter, if the Commissioner has reasonable cause to believe that:

      (a) The assets or capital of a mortgage [company] banker are impaired; or

      (b) A mortgage [company] banker is conducting business in an unsafe and injurious manner that may result in danger to the public,

the Commissioner may immediately take possession of all the property, business and assets of the mortgage [company] banker that are located in this state and retain possession of them pending further proceedings provided for in this chapter.

      2.  If the licensee, the board of directors or any officer or person in charge of the offices of the mortgage [company] banker refuses to permit the Commissioner to take possession of the property of the mortgage [company] banker pursuant to subsection 1:

      (a) The Commissioner shall notify the Attorney General; and

      (b) The Attorney General shall immediately bring such proceedings as may be necessary to place the Commissioner in immediate possession of the property of the mortgage [company.] banker.

      3.  If the Commissioner takes possession of the property of the mortgage [company,] banker, the Commissioner shall:

      (a) Make or have made an inventory of the assets and known liabilities of the mortgage [company;] banker; and

      (b) File one copy of the inventory in his office and one copy in the office of the clerk of the district court of the county in which the principal office of the mortgage [company] banker is located and shall mail one copy to each stockholder, partner, officer, director or associate of the mortgage [company] banker at his last known address.

      4.  The clerk of the court with which the copy of the inventory is filed shall file it as any other case or proceeding pending in the court and shall give it a docket number.

      Sec. 73.  NRS 645E.640 is hereby amended to read as follows:

      645E.640  1.  If the Commissioner takes possession of the property of a mortgage [company] banker pursuant to NRS 645E.630, the licensee, officers, directors, partners, associates or stockholders of the mortgage [company] banker may, within 60 days after the date on which the Commissioner takes possession of the property, make good any deficit in the assets or capital of the mortgage [company] banker or remedy any unsafe and injurious conditions or practices of the mortgage [company.] banker.

      2.  At the expiration of the 60-day period, if the deficiency in assets or capital has not been made good or the unsafe and injurious conditions or practices remedied, the Commissioner may apply to the court to be appointed receiver and proceed to liquidate the assets of the mortgage [company] banker which are located in this state in the same manner as now provided by law for liquidation of a private corporation in receivership.

      3.  No other person may be appointed receiver by any court without first giving the Commissioner ample notice of his application.

      4.  The inventory made by the Commissioner and all claims filed by creditors are open at all reasonable times for inspection, and any action taken by the receiver upon any of the claims is subject to the approval of the court before which the cause is pending.


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ê2003 Statutes of Nevada, Page 3570 (Chapter 516, AB 490)ê

 

      5.  The expenses of the receiver and compensation of counsel, as well as all expenditures required in the liquidation proceedings, must be fixed by the Commissioner subject to the approval of the court and, upon certification of the Commissioner, must be paid out of the money in his hands as the receiver.

      Sec. 74.  NRS 645E.680 is hereby amended to read as follows:

      645E.680  1.  If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license as a mortgage [company,] banker, the Commissioner shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Commissioner shall reinstate a license as a mortgage [company] banker that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      Sec. 75.  NRS 645E.900 is hereby amended to read as follows:

      645E.900  It is unlawful for any person to offer or provide any of the services of a mortgage [company] banker or otherwise to engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage [company] banker without first obtaining a license as a mortgage [company] banker pursuant to this chapter, unless the person:

      1.  Is exempt from the provisions of this chapter; and

      2.  Complies with the requirements for that exemption.

      Sec. 76.  NRS 645E.910 is hereby amended to read as follows:

      645E.910  It is unlawful for any foreign corporation, association or business trust to conduct any business as a mortgage [company] banker within this state, unless it:

      1.  Qualifies under chapter 80 of NRS; and

      2.  Complies with the provisions of this chapter or, if it claims an exemption from the provisions of this chapter, complies with the requirements for that exemption.

      Sec. 77.  NRS 40.750 is hereby amended to read as follows:

      40.750  1.  As used in this section, “financial institution” means a bank, mortgage broker, mortgage [company,] banker, credit union, thrift company or savings and loan association, or any subsidiary or affiliate of a bank, mortgage broker, mortgage [company,] banker, credit union, thrift company or savings and loan association, which is authorized to transact business in this state and which makes or acquires, in whole or in part, any loan of the kind described in subsection 2.

      2.  Except as otherwise provided in subsection 5, a person who, for the purpose of obtaining a loan secured by a lien on real property, knowingly conceals a material fact, or makes a false statement concerning a material fact knowing that the statement is false, is liable to any financial institution which relied upon the absence of that concealed fact or on that false statement for any damages it sustains because of the fraud.


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ê2003 Statutes of Nevada, Page 3571 (Chapter 516, AB 490)ê

 

which relied upon the absence of that concealed fact or on that false statement for any damages it sustains because of the fraud.

      3.  In addition to its actual damages, a financial institution may recover exemplary or punitive damages in an amount not to exceed 50 percent of the actual damages awarded.

      4.  The cause of action provided by this section:

      (a) Is not, for the purposes of NRS 40.430, an action for the recovery of any debt or an action for the enforcement of any right secured by mortgage or lien upon real estate.

      (b) Is in addition to and not in substitution for any right of foreclosure existing in favor of the financial institution. Any recovery pursuant to this section does not limit the amount of a judgment awarded pursuant to NRS 40.459, but the financial institution is not entitled to recover actual damages more than once for the same loss.

      5.  The provisions of this section do not apply to any loan which is secured by a lien on real property used for residential purposes if:

      (a) The residence is a single-family dwelling occupied by the person obtaining the loan, as represented by him in connection with his application for the loan; and

      (b) The loan is for the principal amount of $150,000 or less.

      Sec. 78.  NRS 90.530 is hereby amended to read as follows:

      90.530  The following transactions are exempt from NRS 90.460 and 90.560:

      1.  An isolated nonissuer transaction, whether or not effected through a broker-dealer.

      2.  A nonissuer transaction in an outstanding security if the issuer of the security has a class of securities subject to registration under section 12 of the Securities Exchange Act of 1934, 15 U.S.C. § 78l, and has been subject to the reporting requirements of section 13 or 15(c) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78m and 78o(d), for not less than 90 days next preceding the transaction, or has filed and maintained with the Administrator for not less than 90 days preceding the transaction information, in such form as the Administrator, by regulation, specifies, substantially comparable to the information the issuer would be required to file under section 12(b) or 12(g) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78l(b) and 78l(g), were the issuer to have a class of its securities registered under section 12 of the Securities Exchange Act of 1934, 15 U.S.C. § 78l, and paid a fee with the filing of $150.

      3.  A nonissuer transaction by a sales representative licensed in this state, in an outstanding security if:

      (a) The security is sold at a price reasonably related to the current market price of the security at the time of the transaction;

      (b) The security does not constitute all or part of an unsold allotment to, or subscription or participation by, a broker-dealer as an underwriter of the security;

      (c) At the time of the transaction, a recognized securities manual designated by the Administrator by regulation or order contains the names of the issuer’s officers and directors, a statement of the financial condition of the issuer as of a date within the preceding 18 months, and a statement of income or operations for each of the last 2 years next preceding the date of the statement of financial condition, or for the period as of the date of the statement of financial condition if the period of existence is less than 2 years;


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      (d) The issuer of the security has not undergone a major reorganization, merger or acquisition within the preceding 30 days which is not reflected in the information contained in the manual; and

      (e) At the time of the transaction, the issuer of the security has a class of equity security listed on the New York Stock Exchange, American Stock Exchange or other exchange designated by the Administrator, or on the National Market System of the National Association of Securities Dealers Automated Quotation System. The requirements of this paragraph do not apply if:

             (1) The security has been outstanding for at least 180 days;

             (2) The issuer of the security is actually engaged in business and is not developing his business, in bankruptcy or in receivership; and

             (3) The issuer of the security has been in continuous operation for at least 5 years.

      4.  A nonissuer transaction in a security that has a fixed maturity or a fixed interest or dividend provision if there has been no default during the current fiscal year or within the 3 preceding years, or during the existence of the issuer, and any predecessors if less than 3 years, in the payment of principal, interest or dividends on the security.

      5.  A nonissuer transaction effected by or through a registered broker-dealer pursuant to an unsolicited order or offer to purchase.

      6.  A transaction between the issuer or other person on whose behalf the offering of a security is made and an underwriter, or a transaction among underwriters.

      7.  A transaction in a bond or other evidence of indebtedness secured by a real estate mortgage, deed of trust, personal property security agreement, or by an agreement for the sale of real estate or personal property, if the entire mortgage, deed of trust or agreement, together with all the bonds or other evidences of indebtedness secured thereby, is offered and sold as a unit.

      8.  A transaction by an executor, administrator, sheriff, marshal, receiver, trustee in bankruptcy, guardian or conservator.

      9.  A transaction executed by a bona fide secured party without the purpose of evading this chapter.

      10.  An offer to sell or sale of a security to a financial or institutional investor or to a broker-dealer.

      11.  Except as otherwise provided in this subsection, a transaction pursuant to an offer to sell securities of an issuer if:

      (a) The transaction is part of an issue in which there are not more than 25 purchasers in this state, other than those designated in subsection 10, during any 12 consecutive months;

      (b) No general solicitation or general advertising is used in connection with the offer to sell or sale of the securities;

      (c) No commission or other similar compensation is paid or given, directly or indirectly, to a person, other than a broker-dealer licensed or not required to be licensed under this chapter, for soliciting a prospective purchaser in this state; and

      (d) One of the following conditions is satisfied:

             (1) The seller reasonably believes that all the purchasers in this state, other than those designated in subsection 10, are purchasing for investment; or

             (2) Immediately before and immediately after the transaction, the issuer reasonably believes that the securities of the issuer are held by 50 or fewer beneficial owners, other than those designated in subsection 10, and the transaction is part of an aggregate offering that does not exceed $500,000 during any 12 consecutive months.


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fewer beneficial owners, other than those designated in subsection 10, and the transaction is part of an aggregate offering that does not exceed $500,000 during any 12 consecutive months.

The Administrator by rule or order as to a security or transaction or a type of security or transaction, may withdraw or further condition the exemption set forth in this subsection or waive one or more of the conditions of the exemption.

      12.  An offer to sell or sale of a preorganization certificate or subscription if:

      (a) No commission or other similar compensation is paid or given, directly or indirectly, for soliciting a prospective subscriber;

      (b) No public advertising or general solicitation is used in connection with the offer to sell or sale;

      (c) The number of offers does not exceed 50;

      (d) The number of subscribers does not exceed 10; and

      (e) No payment is made by a subscriber.

      13.  An offer to sell or sale of a preorganization certificate or subscription issued in connection with the organization of a depository institution if that organization is under the supervision of an official or agency of a state or of the United States which has and exercises the authority to regulate and supervise the organization of the depository institution. For the purpose of this subsection, “under the supervision of an official or agency” means that the official or agency by law has authority to require disclosures to prospective investors similar to those required under NRS 90.490, impound proceeds from the sale of a preorganization certificate or subscription until organization of the depository institution is completed, and require refund to investors if the depository institution does not obtain a grant of authority from the appropriate official or agency.

      14.  A transaction pursuant to an offer to sell to existing security holders of the issuer, including persons who at the time of the transaction are holders of transferable warrants exercisable within not more than 90 days after their issuance, convertible securities or nontransferable warrants, if:

      (a) No commission or other similar compensation other than a standby commission, is paid or given, directly or indirectly, for soliciting a security holder in this state; or

      (b) The issuer first files a notice specifying the terms of the offer to sell, together with a nonrefundable fee of $150, and the Administrator does not by order disallow the exemption within the next 5 full business days.

      15.  A transaction involving an offer to sell, but not a sale, of a security not exempt from registration under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., if:

      (a) A registration or offering statement or similar document as required under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., has been filed, but is not effective;

      (b) A registration statement, if required, has been filed under this chapter, but is not effective; and

      (c) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the Administrator or the Securities and Exchange Commission, and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.


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      16.  A transaction involving an offer to sell, but not a sale, of a security exempt from registration under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., if:

      (a) A registration statement has been filed under this chapter, but is not effective; and

      (b) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the Administrator and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.

      17.  A transaction involving the distribution of the securities of an issuer to the security holders of another person in connection with a merger, consolidation, exchange of securities, sale of assets or other reorganization to which the issuer, or its parent or subsidiary, and the other person, or its parent or subsidiary, are parties, if:

      (a) The securities to be distributed are registered under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., before the consummation of the transaction; or

      (b) The securities to be distributed are not required to be registered under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., written notice of the transaction and a copy of the materials, if any, by which approval of the transaction will be solicited, together with a nonrefundable fee of $150, are given to the Administrator at least 10 days before the consummation of the transaction and the Administrator does not, by order, disallow the exemption within the next 10 days.

      18.  A transaction involving the offer to sell or sale of one or more promissory notes each of which is directly secured by a first lien on a single parcel of real estate, or a transaction involving the offer to sell or sale of participation interests in the notes if the notes and participation interests are originated by a depository institution and are offered and sold subject to the following conditions:

      (a) The minimum aggregate sales price paid by each purchaser may not be less than $250,000;

      (b) Each purchaser must pay cash either at the time of the sale or within 60 days after the sale; and

      (c) Each purchaser may buy for his own account only.

      19.  A transaction involving the offer to sell or sale of one or more promissory notes directly secured by a first lien on a single parcel of real estate or participating interests in the notes, if the notes and interests are originated by a mortgagee approved by the Secretary of Housing and Urban Development under sections 203 and 211 of the National Housing Act, 12 U.S.C. §§ 1709 and 1715b, and are offered or sold, subject to the conditions specified in subsection 18, to a depository institution or insurance company, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association.

      20.  A transaction between any of the persons described in subsection 19 involving a nonassignable contract to buy or sell the securities described in subsection 18 if the contract is to be completed within 2 years and if:

      (a) The seller of the securities pursuant to the contract is one of the parties described in subsection 18 or 19 who may originate securities;

      (b) The purchaser of securities pursuant to a contract is any other person described in subsection 19; and

      (c) The conditions described in subsection 18 are fulfilled.


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      21.  A transaction involving one or more promissory notes secured by a lien on real estate, or participating interests in those notes, by:

      (a) A mortgage [company] banker licensed pursuant to chapter 645E of NRS to engage in those transactions; or

      (b) A mortgage broker licensed pursuant to chapter 645B of NRS to engage in those transactions.

      Sec. 79.  Chapter 232 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A division, office, authority, commission, board or other entity set forth in NRS 232.510 may adopt regulations to establish procedures to conduct business electronically with persons who have business with that division, office, authority, commission, board or other entity. The regulations may include, without limitation, the establishment of fees to cover the costs to the division, office, authority, commission, board or other entity of conducting business electronically.

      2.  Notwithstanding any other provision, if a division, office, authority, commission, board or other entity adopts regulations to conduct business electronically pursuant to subsection 1, the division, office, authority, commission, board or other entity may provide that a declaration made pursuant to NRS 53.045 may satisfy the requirement that a signature or statement be notarized, acknowledged, verified or made under oath.

      3.  The division, office, authority, commission, board or other entity may refuse to conduct business electronically with a person who has failed to pay money owed to the division, office, authority, commission, board or other entity.

      Sec. 80.  NRS 232.510 is hereby amended to read as follows:

      232.510  1.  The Department of Business and Industry is hereby created.

      2.  The Department consists of a Director and the following:

      (a) Consumer Affairs Division.

      (b) Division of Financial Institutions.

      (c) Housing Division.

      (d) Manufactured Housing Division.

      (e) Real Estate Division.

      (f) Division of Insurance.

      (g) Division of Industrial Relations.

      (h) Office of Labor Commissioner.

      (i) Taxicab Authority.

      (j) Nevada Athletic Commission.

      (k) Office of the Nevada Attorney for Injured Workers.

      (l) Transportation Services Authority.

      (m) Division of Mortgage Lending.

      (n) Any other office, commission, board, agency or entity created or placed within the Department pursuant to a specific statute, the budget approved by the Legislature or an executive order, or an entity whose budget or activities have been placed within the control of the Department by a specific statute.

      Sec. 81.  NRS 232.520 is hereby amended to read as follows:

      232.520  The Director:

      1.  Shall appoint a chief or executive director, or both of them, of each of the divisions, offices, commissions, boards, agencies or other entities of the Department, unless the authority to appoint such a chief or executive director, or both of them, is expressly vested in another person, board or commission by a specific statute.


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director, or both of them, is expressly vested in another person, board or commission by a specific statute. In making the appointments, the Director may obtain lists of qualified persons from professional organizations, associations or other groups recognized by the Department, if any. The Chief of the Consumer Affairs Division is the Commissioner of Consumer Affairs, the Chief of the Division of Financial Institutions is the Commissioner of Financial Institutions, the Chief of the Housing Division is the Administrator of the Housing Division, the Chief of the Manufactured Housing Division is the Administrator of the Manufactured Housing Division, the Chief of the Real Estate Division is the Real Estate Administrator, the Chief of the Division of Insurance is the Commissioner of Insurance, the Chief of the Division of Industrial Relations is the Administrator of the Division of Industrial Relations, the Chief of the Office of Labor Commissioner is the Labor Commissioner, the Chief of the Taxicab Authority is the Taxicab Administrator, the Chief of the Transportation Services Authority is the Chairman of the Authority, the Chief of the Division of Mortgage Lending is the Commissioner of Mortgage Lending and the chief of any other entity of the Department has the title specified by the Director, unless a different title is specified by a specific statute.

      2.  Is responsible for the administration of all provisions of law relating to the jurisdiction, duties and functions of all divisions and other entities within the Department. The Director may, if he deems it necessary to carry out his administrative responsibilities, be considered as a member of the staff of any division or other entity of the Department for the purpose of budget administration or for carrying out any duty or exercising any power necessary to fulfill the responsibilities of the Director pursuant to this subsection. This subsection does not allow the Director to preempt any authority or jurisdiction granted by statute to any division or other entity within the Department or to act or take on a function that would contravene a rule of court or a statute.

      3.  May:

      (a) Establish uniform policies for the department, consistent with the policies and statutory responsibilities and duties of the divisions and other entities within the Department, relating to matters concerning budgeting, accounting, planning, program development, personnel, information services, dispute resolution, travel, workplace safety, the acceptance of gifts or donations, the management of records and any other subject for which a uniform departmental policy is necessary to ensure the efficient operation of the Department.

      (b) Provide coordination among the divisions and other entities within the Department, in a manner which does not encroach upon their statutory powers and duties, as they adopt and enforce regulations, execute agreements, purchase goods, services or equipment, prepare legislative requests and lease or use office space.

      (c) Define the responsibilities of any person designated to carry out the duties of the director relating to financing, industrial development or business support services.

      4.  May, within the limits of the financial resources made available to him, promote, participate in the operation of, and create or cause to be created, any nonprofit corporation, pursuant to chapter 82 of NRS, which he determines is necessary or convenient for the exercise of the powers and duties of the department. The purposes, powers and operation of the corporation must be consistent with the purposes, powers and duties of the Department.


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corporation must be consistent with the purposes, powers and duties of the Department.

      5.  For any bonds which he is otherwise authorized to issue, may issue bonds the interest on which is not exempt from federal income tax or excluded from gross revenue for the purposes of federal income tax.

      6.  May, except as otherwise provided by specific statute, adopt by regulation a schedule of fees and deposits to be charged in connection with the programs administered by him pursuant to chapters 348A and 349 of NRS. Except as otherwise provided by specific statute, the amount of any such fee or deposit must not exceed 2 percent of the principal amount of the financing.

      7.  May designate any person within the Department to perform any of the duties or responsibilities, or exercise any of the authority, of the Director on his behalf.

      8.  May negotiate and execute agreements with public or private entities which are necessary to the exercise of the powers and duties of the Director or the Department.

      9.  May establish a trust account in the State Treasury for depositing and accounting for money that is held in escrow or is on deposit with the Department for the payment of any direct expenses incurred by the Director in connection with any bond programs administered by the Director. The interest and income earned on money in the trust account, less any amount deducted to pay for applicable charges, must be credited to the trust account. Any balance remaining in the account at the end of a fiscal year may be:

      (a) Carried forward to the next fiscal year for use in covering the expense for which it was originally received; or

      (b) Returned to any person entitled thereto in accordance with agreements or regulations of the Director relating to those bond programs.

      Sec. 82.  NRS 232.545 is hereby amended to read as follows:

      232.545  1.  An Investigative Account for Financial Institutions is hereby created in the State General Fund. The Account consists of money which is:

      (a) Received by the Department of Business and Industry in connection with the licensing of financial institutions and the investigation of persons associated with those institutions; and

      (b) Required by law to be placed therein.

      2.  The Director of the Department of Business and Industry or his designee may authorize expenditures from the Investigative Account to pay the expenses incurred:

      (a) In investigating applications for licensing of financial institutions and in investigating persons associated with those institutions;

      (b) In conducting special investigations relating to financial institutions and persons associated with those institutions; and

      (c) In connection with mergers, consolidations, conversions, receiverships and liquidations of financial institutions.

      3.  As used in this section, “financial institution” means an institution for which licensing or registration is required by the provisions of titles 55 and 56 and chapters 604 [, 645B, 645E] and 649 of NRS.

      Sec. 83.  NRS 604.090 is hereby amended to read as follows:

      604.090  1.  Except as otherwise provided in subsection 2, it is unlawful to operate a check-cashing or deferred deposit service without being registered with the Commissioner.


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

      (a) A person doing business pursuant to the authority of any law of this state or of the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions, development corporations, mortgage brokers, mortgage [companies,] bankers, thrift companies, pawnbrokers or insurance companies.

      (b) A person licensed to make installment loans pursuant to chapter 675 of NRS.

      (c) A person who is primarily engaged in the retail sale of goods or services who:

             (1) As an incident to or independently of a retail sale or service from time to time cashes checks for a fee or other consideration of not more than $2; and

             (2) Does not hold himself out as a check-cashing service.

      (d) A person while performing any act authorized by a license issued pursuant to chapter 671 of NRS.

      (e) A person who holds a nonrestricted gaming license issued pursuant to chapter 463 of NRS while performing any act in the course of that licensed operation.

      (f) A person who is exclusively engaged in a check-cashing service relating to out-of-state checks.

      (g) A corporation organized pursuant to the laws of this state that has been continuously and exclusively engaged in a check-cashing service in this state since July 1, 1973.

      Sec. 84.  NRS 675.040 is hereby amended to read as follows:

      675.040  This chapter does not apply to:

      1.  A person doing business under the authority of any law of this state or of the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions, development corporations, mortgage brokers, mortgage [companies,] bankers, thrift companies, pawnbrokers or insurance companies.

      2.  A real estate investment trust, as defined in 26 U.S.C. § 856.

      3.  An employee benefit plan, as defined in 29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the plan’s trustee.

      4.  An attorney at law rendering services in the performance of his duties as an attorney at law if the loan is secured by real property.

      5.  A real estate broker rendering services in the performance of his duties as a real estate broker if the loan is secured by real property.

      6.  Except as otherwise provided in this subsection, any firm or corporation:

      (a) Whose principal purpose or activity is lending money on real property which is secured by a mortgage;

      (b) Approved by the Federal National Mortgage Association as a seller or servicer; and

      (c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.

      7.  A person who provides money for investment in loans secured by a lien on real property, on his own account.

      8.  A seller of real property who offers credit secured by a mortgage of the property sold.

      9.  A person holding a nonrestricted state gaming license issued pursuant to the provisions of chapter 463 of NRS.


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      Sec. 85.  NRS 675.230 is hereby amended to read as follows:

      675.230  1.  Except as otherwise provided in subsection 2, a licensee may not conduct the business of making loans under this chapter within any office, suite, room or place of business in which any other business is solicited or engaged in, except an insurance agency or notary public, or in association or conjunction with any other business, unless authority to do so is given by the Commissioner.

      2.  A licensee may conduct the business of making loans pursuant to this chapter in the same office or place of business as:

      (a) A mortgage broker if:

             (1) The licensee and the mortgage broker:

                   (I) Operate as separate legal entities;

                   (II) Maintain separate accounts, books and records;

                   (III) Are subsidiaries of the same parent corporation; and

                   (IV) Maintain separate licenses; and

             (2) The mortgage broker is licensed by this state pursuant to chapter 645B of NRS and does not receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.

      (b) A mortgage [company] banker if:

             (1) The licensee and the mortgage [company:] banker:

                   (I) Operate as separate legal entities;

                   (II) Maintain separate accounts, books and records;

                   (III) Are subsidiaries of the same parent corporation; and

                   (IV) Maintain separate licenses; and

             (2) The mortgage [company] banker is licensed by this state pursuant to chapter 645E of NRS and, if the mortgage [company] banker is also licensed as a mortgage broker pursuant to chapter 645B of NRS, does not receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.

      Sec. 86.  NRS 645B.0103 is hereby repealed.

      Sec. 87.  1.  On October 1, 2003, the Commissioner of Mortgage Lending may begin accepting applications for, and issuing, licenses as mortgage agents pursuant to section 27 of this act. Any such license issued on or before July 1, 2004:

      (a) Becomes effective on July 1, 2004; and

      (b) Notwithstanding the provisions of section 28 of this act to the contrary, expires on a date between July 1, 2004, and June 30, 2005, as specified in a written notice provided with the license to the mortgage agent. The Commissioner of Mortgage Lending shall provide various expiration dates for the licenses issued on or before July 1, 2004, as needed to allow for the efficient administration of the requirements of this act. The fee required for such a license that is effective for less than 1 year must be prorated in an appropriate manner as determined by the Commissioner of Mortgage Lending.

      2.  On July 1, 2004, the registration of a mortgage agent who is registered pursuant to NRS 645B.450 expires.

      3.  As used in this section, “mortgage agent” has the meaning ascribed to it in NRS 645B.0125.

      Sec. 87.5.  1.  Notwithstanding the amendatory provisions of this act, if a person, on July 1, 2003, holds a certificate of exemption issued pursuant to chapter 645B of NRS and the certificate is based on the exemption set forth in subsection 6 of NRS 645B.015, as that subsection existed before the enactment of this act, the person may, until January 1, 2004, provide the services of a mortgage broker or otherwise engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage broker without being licensed pursuant to chapter 645B of NRS.


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enactment of this act, the person may, until January 1, 2004, provide the services of a mortgage broker or otherwise engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage broker without being licensed pursuant to chapter 645B of NRS.

      2.  Notwithstanding the amendatory provisions of this act, if a person, on July 1, 2003, holds a certificate of exemption issued pursuant to chapter 645E of NRS and the certificate is based on the exemption set forth in subsection 6 of NRS 645E.150, as that subsection existed before the enactment of this act, the person may, until January 1, 2004, provide the services of a mortgage banker or otherwise engage in, carry on or hold himself out as engaging in or carrying on the business of a mortgage banker without being licensed pursuant to chapter 645E of NRS.

      Sec. 88.  The Legislative Counsel shall:

      1.  In preparing the reprint and supplements to the Nevada Revised Statutes, appropriately change any references to “mortgage company” to “mortgage banker.”

      2.  In preparing supplements to the Nevada Administrative Code, appropriately change any references to “mortgage company” to “mortgage banker.”

      Sec. 89.  1.  This section becomes effective upon passage and approval.

      2.  Sections 1 to 20, inclusive, 21.5 to 39, inclusive, and 41 to 88, inclusive, of this act become effective upon passage and approval for the purposes of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act, and:

      (a) Sections 1 to 20, inclusive, 21.5 to 25, inclusive, 31, 32, 33, 35, 36, 38, 39, 41, 42, 42.5, 45 and 48.5 to 88, inclusive, of this act become effective on July 1, 2003, for all other purposes.

      (b) Sections 26 to 30, inclusive, 34, 37, 43, 44, 46, 47 and 48 of this act become effective on July 1, 2004, for all other purposes.

      3.  Sections 20, 29, 39, 46 and 74 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the State has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

      (a) Have failed to comply with a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or

      (b) Are in arrears in the payment for the support of one or more children,

are repealed by the Congress of the United States.

      4.  Sections 21 and 40 of this act become effective on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the State has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

      (a) Have failed to comply with a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or


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      (b) Are in arrears in the payment for the support of one or more children,

are repealed by the Congress of the United States.

________