Link to Page 1586

 

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      (b) Has been identified in the guidelines of the regional planning commission as a project which will result in the creation of significant new geothermal or mining operations;

      (c) Has been identified in the guidelines of the regional planning commission as a project which will have a significant effect on the natural resources, public services, public facilities , including, without limitation, schools, or the adopted regional form of the region; or

      (d) Will require a change in zoning, a special use permit, an amendment to a master plan, a tentative map or other approval for the use of land which, if approved, will have an effect on the region of increasing:

             (1) Employment by not less than 938 employees;

             (2) Housing by not less than 625 units;

             (3) Hotel accommodations by not less than 625 rooms;

             (4) Sewage by not less than 187,500 gallons per day;

             (5) Water usage by not less than 625 acre feet per year; or

             (6) Traffic by not less than an average of 6,250 trips daily.

Ê The term does not include any project for which a request for an amendment to a master plan, a change in zoning, a tentative map or a special use permit has been approved by the local planning commission before June 17, 1989.

      6.  “Project of regional significance,” with respect to a project proposed by a utility, includes:

      (a) An electric substation;

      (b) A transmission line that carries 60 kilovolts or more;

      (c) A facility that generates electricity greater than 5 megawatts;

      (d) Natural gas storage and peak shaving facilities; and

      (e) Gas regulator stations and mains that operate over 100 pounds per square inch.

      7.  “Sphere of influence” means an area into which a city plans to expand as designated in the comprehensive regional plan within the time designated in the comprehensive regional plan.

      Sec. 14.  (Deleted by amendment.)

      Sec. 15.  NRS 278.0265 is hereby amended to read as follows:

      278.0265  The governing board:

      1.  Shall adopt such regulations as are necessary to carry out its specific powers and duties.

      2.  Shall prescribe an appropriate course of at least 12 hours of training in land use planning for the members of the regional planning commission. The course of training must include, without limitation, training relating to:

      (a) State statutes and regulations and local ordinances, resolutions and regulations concerning land use planning; and

      (b) The provisions of chapter 241 of NRS.

      3.  May establish and collect reasonable fees for the provision of any service that is authorized pursuant to the provisions of NRS 278.026 to 278.029, inclusive [.] , and sections 6 and 6.5 of this act.

      4.  May enter into an agreement pursuant to NRS 277.045 or 277.080 to 277.180, inclusive, for a purpose that is consistent with the provisions of NRS 278.026 to 278.029, inclusive [.] , and sections 6 and 6.5 of this act.

      Sec. 16.  NRS 278.0274 is hereby amended to read as follows:

      278.0274  The comprehensive regional plan must include goals, policies, maps and other documents relating to:

 


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      1.  Population, including a projection of population growth in the region and the resources that will be necessary to support that population.

      2.  Conservation, including policies relating to the use and protection of air, land, water and other natural resources, ambient air quality, natural recharge areas, floodplains and wetlands, and a map showing the areas that are best suited for development based on those policies.

      3.  The limitation of the premature expansion of development into undeveloped areas, preservation of neighborhoods and revitalization of urban areas, including, without limitation, policies that relate to the interspersion of new housing and businesses in established neighborhoods and set forth principles by which growth will be directed to older urban areas.

      4.  Land use and transportation, including the classification of future land uses by density or intensity of development based upon the projected necessity and availability of public facilities , including, without limitation, schools, and services and natural resources, and the compatibility of development in one area with that of other areas in the region. This portion of the plan must [allow] :

      (a) Address, if applicable, mixed-use development, transit-oriented development, master-planned communities and gaming enterprise districts;

      (b) Allow for a variety of uses [, describe] ;

      (c) Describe the transportation facilities that will be necessary to satisfy the requirements created by those future uses ; and [must be]

      (d) Be based upon the policies and map relating to conservation that are developed pursuant to subsection 2, surveys, studies and data relating to the area, the amount of land required to accommodate planned growth, the population of the area projected pursuant to subsection 1, and the characteristics of undeveloped land in the area.

      5.  Public facilities and services, including provisions relating to sanitary sewer facilities, solid waste, flood control, potable water and ground-water aquifer recharge which are correlated with principles and guidelines for future land uses, and which specify ways to satisfy the requirements created by those future uses. This portion of the plan must:

      (a) Describe the problems and needs of the area relating to public facilities and services and the general facilities that will be required for their solution and satisfaction;

      (b) Identify the providers of public services within the region and the area within which each must serve, including service territories set by the Public Utilities Commission of Nevada for public utilities;

      (c) Establish the time within which those public facilities and services necessary to support the development relating to land use and transportation must be made available to satisfy the requirements created by that development; and

      (d) Contain a summary prepared by the regional planning commission regarding the plans for capital improvements that:

             (1) Are required to be prepared by each local government in the region pursuant to NRS 278.0226; and

             (2) May be prepared by the water planning commission of the county, the regional transportation commission and the county school district.

      6.  Annexation, including the identification of spheres of influence for each unit of local government, improvement district or other service district and specifying standards and policies for changing the boundaries of a sphere of influence and procedures for the review of development within each sphere of influence.

 


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of influence and procedures for the review of development within each sphere of influence. As used in this subsection, “sphere of influence” means an area into which a political subdivision may expand in the foreseeable future.

      7.  Intergovernmental coordination, including the establishment of guidelines for determining whether local master plans and facilities plans conform with the comprehensive regional plan.

      8.  Any utility project required to be reported pursuant to NRS 278.145.

      Sec. 17.  (Deleted by amendment.)

      Sec. 18.  NRS 278.160 is hereby amended to read as follows:

      278.160  1.  Except as otherwise provided in subsection 4 of NRS 278.150 and subsection 3 of NRS 278.170, the master plan, with the accompanying charts, drawings, diagrams, schedules and reports, may include such of the following subject matter or portions thereof as are appropriate to the city, county or region, and as may be made the basis for the physical development thereof:

      (a) Community design. Standards and principles governing the subdivision of land and suggestive patterns for community design and development.

      (b) Conservation plan. For the conservation, development and utilization of natural resources, including, without limitation, water and its hydraulic force, underground water, water supply, forests, soils, rivers and other waters, harbors, fisheries, wildlife, minerals and other natural resources. The plan must also cover the reclamation of land and waters, flood control, prevention and control of the pollution of streams and other waters, regulation of the use of land in stream channels and other areas required for the accomplishment of the conservation plan, prevention, control and correction of the erosion of soils through proper clearing, grading and landscaping, beaches and shores, and protection of watersheds. The plan must also indicate the maximum tolerable level of air pollution.

      (c) Economic plan. Showing recommended schedules for the allocation and expenditure of public money in order to provide for the economical and timely execution of the various components of the plan.

      (d) Historical properties preservation plan. An inventory of significant historical, archaeological and architectural properties as defined by a city, county or region, and a statement of methods to encourage the preservation of those properties.

      (e) Housing plan. The housing plan must include, without limitation:

             (1) An inventory of housing conditions, needs and plans and procedures for improving housing standards and for providing adequate housing.

             (2) An inventory of affordable housing in the community.

             (3) An analysis of the demographic characteristics of the community.

             (4) A determination of the present and prospective need for affordable housing in the community.

             (5) An analysis of any impediments to the development of affordable housing and the development of policies to mitigate those impediments.

             (6) An analysis of the characteristics of the land that is the most appropriate for the construction of affordable housing.

             (7) An analysis of the needs and appropriate methods for the construction of affordable housing or the conversion or rehabilitation of existing housing to affordable housing.

 


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             (8) A plan for maintaining and developing affordable housing to meet the housing needs of the community.

      (f) Land use plan. An inventory and classification of types of natural land and of existing land cover and uses, and comprehensive plans for the most desirable utilization of land. The land use plan [may] :

             (1) Must address, if applicable, mixed-use development, transit-oriented development, master-planned communities and gaming enterprise districts.

             (2) May include a provision concerning the acquisition and use of land that is under federal management within the city, county or region, including, without limitation, a plan or statement of policy prepared pursuant to NRS 321.7355.

      (g) Population plan. An estimate of the total population which the natural resources of the city, county or region will support on a continuing basis without unreasonable impairment.

      (h) Public buildings. Showing locations and arrangement of civic centers and all other public buildings, including the architecture thereof and the landscape treatment of the grounds thereof.

      (i) Public services and facilities. Showing general plans for sewage, drainage and utilities, and rights-of-way, easements and facilities therefor, including, without limitation, any utility projects required to be reported pursuant to NRS 278.145.

      (j) Recreation plan. Showing a comprehensive system of recreation areas, including, without limitation, natural reservations, parks, parkways, trails, reserved riverbank strips, beaches, playgrounds and other recreation areas, including, when practicable, the locations and proposed development thereof.

      (k) Rural neighborhoods preservation plan. In any county whose population is 400,000 or more, showing general plans to preserve the character and density of rural neighborhoods.

      (l) Safety plan. In any county whose population is 400,000 or more, identifying potential types of natural and man-made hazards, including, without limitation, hazards from floods, landslides or fires, or resulting from the manufacture, storage, transfer or use of bulk quantities of hazardous materials. The plan may set forth policies for avoiding or minimizing the risks from those hazards.

      (m) School facilities plan. Showing the general locations of current and future school facilities based upon information furnished by the appropriate local school district.

      (n) Seismic safety plan. Consisting of an identification and appraisal of seismic hazards such as susceptibility to surface ruptures from faulting, to ground shaking or to ground failures.

      (o) Solid waste disposal plan. Showing general plans for the disposal of solid waste.

      (p) Streets and highways plan. Showing the general locations and widths of a comprehensive system of major traffic thoroughfares and other traffic ways and of streets and the recommended treatment thereof, building line setbacks, and a system of naming or numbering streets and numbering houses, with recommendations concerning proposed changes.

      (q) Transit plan. Showing a proposed multimodal system of transit lines, including mass transit, streetcar, motorcoach and trolley coach lines, paths for bicycles and pedestrians, satellite parking and related facilities.

 


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      (r) Transportation plan. Showing a comprehensive transportation system, including, without limitation, locations of rights-of-way, terminals, viaducts and grade separations. The plan may also include port, harbor, aviation and related facilities.

      2.  The commission may prepare and adopt, as part of the master plan, other and additional plans and reports dealing with such other subjects as may in its judgment relate to the physical development of the city, county or region, and nothing contained in NRS 278.010 to 278.630, inclusive, and sections 1.5, 6 and 6.5 of this act prohibits the preparation and adoption of any such subject as a part of the master plan.

      Sec. 18.5.  NRS 278.210 is hereby amended to read as follows:

      278.210  1.  Before adopting the master plan or any part of it in accordance with NRS 278.170, or any substantial amendment thereof, the commission shall hold at least one public hearing thereon, notice of the time and place of which must be given at least by one publication in a newspaper of general circulation in the city or county, or in the case of a regional planning commission, by one publication in a newspaper in each county within the regional district, at least 10 days before the day of the hearing.

      2.  Before a public hearing may be held pursuant to subsection 1 in a county whose population is 100,000 or more on an amendment to a master plan, including, without limitation, a gaming enterprise district, if applicable, the person who requested the proposed amendment must hold a neighborhood meeting to provide an explanation of the proposed amendment. Notice of such a meeting must be given by the person requesting the proposed amendment to:

      (a) Each owner, as listed on the county assessor’s records, of real property located within a radius of 750 feet of the area to which the proposed amendment pertains;

      (b) The owner, as listed on the county assessor’s records, of each of the 30 separately owned parcels nearest to the area to which the proposed amendment pertains, to the extent this notice does not duplicate the notice given pursuant to paragraph (a); and

      (c) Each tenant of a mobile home park if that park is located within a radius of 750 feet of the area to which the proposed amendment pertains.

Ê The notice must be sent by mail at least 10 days before the neighborhood meeting and include the date, time, place and purpose of the neighborhood meeting.

   3.  The adoption of the master plan, or of any amendment, extension or addition thereof, must be by resolution of the commission carried by the affirmative votes of not less than two-thirds of the total membership of the commission. The resolution must refer expressly to the maps, descriptive matter and other matter intended by the commission to constitute the plan or any amendment, addition or extension thereof, and the action taken must be recorded on the map and plan and descriptive matter by the identifying signatures of the secretary and chairman of the commission.

      [3.] 4.  No plan or map, hereafter, may have indicated thereon that it is a part of the master plan until it has been adopted as part of the master plan by the commission as herein provided for the adoption thereof, whenever changed conditions or further studies by the commission require such amendments, extension or addition.

      [4.] 5.  Except as otherwise provided in this subsection, the commission shall not amend the land use plan of the master plan set forth in paragraph (f) of subsection 1 of NRS 278.160, or any portion of such a land use plan, more than four times in a calendar year.

 


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of subsection 1 of NRS 278.160, or any portion of such a land use plan, more than four times in a calendar year. The provisions of this subsection do not apply to a change in the land use designated for a particular area if the change does not affect more than 25 percent of the area.

      [5.] 6.  An attested copy of any part, amendment, extension of or addition to the master plan adopted by the planning commission of any city, county or region in accordance with NRS 278.170 must be certified to the governing body of the city, county or region. The governing body of the city, county or region may authorize such certification by electronic means.

      [6.] 7.  An attested copy of any part, amendment, extension of or addition to the master plan adopted by any regional planning commission must be certified to the county planning commission and to the board of county commissioners of each county within the regional district. The county planning commission and board of county commissioners may authorize such certification by electronic means.

      Sec. 19.  NRS 278.250 is hereby amended to read as follows:

      278.250  1.  For the purposes of NRS 278.010 to 278.630, inclusive, and sections 1.5, 6 and 6.5 of this act, the governing body may divide the city, county or region into zoning districts of such number, shape and area as are best suited to carry out the purposes of NRS 278.010 to 278.630, inclusive [.] , and sections 1.5, 6 and 6.5 of this act. Within the zoning district it may regulate and restrict the erection, construction, reconstruction, alteration, repair or use of buildings, structures or land.

      2.  The zoning regulations must be adopted in accordance with the master plan for land use and be designed:

      (a) To preserve the quality of air and water resources.

      (b) To promote the conservation of open space and the protection of other natural and scenic resources from unreasonable impairment.

      (c) To consider existing views and access to solar resources by studying the height of new buildings which will cast shadows on surrounding residential and commercial developments.

      (d) To reduce the consumption of energy by encouraging the use of products and materials which maximize energy efficiency in the construction of buildings.

      (e) To provide for recreational needs.

      [(d)] (f) To protect life and property in areas subject to floods, landslides and other natural disasters.

      [(e)] (g) To conform to the adopted population plan, if required by NRS 278.170.

      [(f)] (h) To develop a timely, orderly and efficient arrangement of transportation and public facilities and services, including public access and sidewalks for pedestrians, and facilities and services for bicycles.

      [(g)] (i) To ensure that the development on land is commensurate with the character and the physical limitations of the land.

      [(h)] (j) To take into account the immediate and long range financial impact of the application of particular land to particular kinds of development, and the relative suitability of the land for development.

      [(i)] (k) To promote health and the general welfare.

      [(j)] (l) To ensure the development of an adequate supply of housing for the community, including the development of affordable housing.

      [(k)] (m) To ensure the protection of existing neighborhoods and communities, including the protection of rural preservation neighborhoods.

 


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      3.  The zoning regulations must be adopted with reasonable consideration, among other things, to the character of the area and its peculiar suitability for particular uses, and with a view to conserving the value of buildings and encouraging the most appropriate use of land throughout the city, county or region.

      4.  In exercising the powers granted in this section, the governing body may use any controls relating to land use or principles of zoning that the governing body determines to be appropriate, including, without limitation, density bonuses, inclusionary zoning and minimum density zoning.

      5.  As used in this section:

      (a) “Density bonus” means an incentive granted by a governing body to a developer of real property that authorizes the developer to build at a greater density than would otherwise be allowed under the master plan, in exchange for an agreement by the developer to perform certain functions that the governing body determines to be socially desirable, including, without limitation, developing an area to include a certain proportion of affordable housing.

      (b) “Inclusionary zoning” means a type of zoning pursuant to which a governing body requires or provides incentives to a developer who builds residential dwellings to build a certain percentage of those dwellings as affordable housing.

      (c) “Minimum density zoning” means a type of zoning pursuant to which development must be carried out at or above a certain density to maintain conformance with the master plan.

      Secs. 20-29.  (Deleted by amendment.)

      Sec. 30.  Section 8.010 of the Charter of the City of Las Vegas, being chapter 517, Statutes of Nevada 1983, at page 1420, is hereby amended to read as follows:

      Sec. 8.010  Legislative declaration.  The Legislature by the inclusion of this article in this Charter declares that:

      1.  All of the property which is to be acquired by the City pursuant to this article must be owned, operated, administered and maintained for and on behalf of all of the people of the City.

      2.  The exercise by the City of the purposes, powers, rights, privileges, immunities and duties which are established, granted, conferred and imposed in this article promotes the public health, safety, prosperity, security, comfort, convenience and general welfare of all of the people of the State and will be of special benefit to the inhabitants of the City and the property within the City.

      3.  The provisions in this article which involve the purposes, powers, rights, privileges, immunities, liabilities, duties and disabilities with respect to the City will serve a public purpose.

      4.  The necessity for this article results from:

      (a) The large population growth in the urban areas which are included within the City and its environs, which constitutes in the aggregate a significant portion of the State’s population;

      (b) The numerous capital improvements and large amount of improved real property which is situate within the urban areas;

      (c) The need for capital improvements within certain areas within the City to provide needed services, facilities and other improvements for public use;

 


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      (d) The existence of blighted or deteriorating areas within the City which constitutes a serious and growing menace which is condemned as injurious and inimical to the public health, safety and general welfare of the people of the State, and particularly of the City;

      (e) The lack of municipally owned capital improvements and the blighted or deteriorating areas which present difficulties and handicaps beyond remedy and control solely by the regulatory processes in the exercise of the police power;

      (f) Deficiencies which contribute substantially and increasingly to the problems of, and necessitate excessive and disproportionate expenditures for, crime prevention and the preservation of the public health, safety and general welfare;

      (g) Deficiencies which also constitute an economic and social liability which imposes onerous municipal burdens which decrease the tax base and reduce tax revenues, aggravate traffic hazards and the improvement of the traffic facilities; and

      (h) The fact that the areas in which these deficiencies exist consume an excessive proportion of the City’s revenues because of the extra services which are required for police, fire, accident, hospitalization and other forms of public protection.

      5.  The menace which results from the foregoing factors is becoming increasingly direct and substantial in its significance and effect.

      6.  The benefits which the City will derive from the remedying of these deficiencies by making available additional revenues to defray indirectly the costs of undertakings within the City which are authorized by NRS 268.672 to 268.740, inclusive, the development of mixed-use and transit-oriented communities, and the redevelopment of blighted or deteriorating areas within the City will inure to the inhabitants and the property owners of the City as a whole, will be of general benefit to those people and will be of special benefit to the taxable real property within a tax increment area and to the owners of that property.

      7.  The method of paying the bond requirements of the securities which are issued pursuant to this article is equitable and enables the City to issue securities to defray the cost of any project.

      8.  A general law cannot be made applicable to the City or to the properties, powers, rights, privileges, immunities, liabilities, duties and disabilities which pertain to the City, as provided in this article, because of the number of atypical factors and special conditions with respect to them.

      9.  For the accomplishment of the purposes which are provided in this section, each of the provisions of this article must be broadly construed.

      Sec. 31.  Section 8.110 of the Charter of the City of Las Vegas, being chapter 517, Statutes of Nevada 1983, as amended by chapter 639, Statutes of Nevada 1985, at page 2087, is hereby amended to read as follows:

      Sec. 8.110  “Undertaking” defined.  “Undertaking” means any enterprise to acquire, develop, improve or equip, or any combination thereof, any project which is authorized in NRS 268.672 to 268.740, inclusive, which is a mixed-use or transit-oriented community, or which could be undertaken by a redevelopment agency pursuant to NRS 279.382 to 279.680, inclusive, and to defray the cost of that enterprise, wholly or in part, by the issuance of the City’s bonds or other securities which are payable, wholly or in part, from tax proceeds which are allocated to any Tax Increment Account that pertains to the enterprise pursuant to section 8.230 of this Charter.


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which could be undertaken by a redevelopment agency pursuant to NRS 279.382 to 279.680, inclusive, and to defray the cost of that enterprise, wholly or in part, by the issuance of the City’s bonds or other securities which are payable, wholly or in part, from tax proceeds which are allocated to any Tax Increment Account that pertains to the enterprise pursuant to section 8.230 of this Charter.

      Sec. 32.  Section 7A.010 of the Charter of the City of North Las Vegas, being chapter 584, Statutes of Nevada 1983, at page 1850, is hereby amended to read as follows:

      Sec. 7A.010  Legislative declaration.  The Legislature by the inclusion of this article in this Charter declares that:

      1.  All of the property which is to be acquired by the city pursuant to this article must be owned, operated, administered and maintained for and on behalf of all of the people of the City.

      2.  The exercise by the City of the purposes, powers, rights, privileges, immunities and duties which are established, granted, conferred and imposed in this article promotes the public health, safety, prosperity, security, comfort, convenience and general welfare of all of the people of the State and will be of special benefit to the inhabitants of the City and the property within the City.

      3.  The provisions in this article which involve the purposes, powers, rights, privileges, immunities, liabilities, duties and disabilities with respect to the City will serve a public purpose.

      4.  The necessity for this article results from:

      (a) The large population growth in the urban areas which are included within the City and its environs, which constitutes in the aggregate a significant portion of the State’s population;

      (b) The numerous capital improvements and large amount of improved real property which is situate within the urban areas;

      (c) The need for capital improvements within certain areas within the City to provide needed services, facilities and other improvements for public use;

      (d) The existence of blighted or deteriorating areas within the City which constitutes a serious and growing menace which is condemned as injurious and inimical to the public health, safety and general welfare of the people of the State, and particularly of the City;

      (e) The lack of municipally owned capital improvements and the blighted or deteriorating areas which present difficulties and handicaps beyond remedy and control solely by the regulatory processes in the exercise of the police power; and

      (f) Deficiencies which also constitute an economic and social liability which imposes onerous municipal burdens which decrease the tax base and reduce tax revenues, aggravate traffic hazards and the improvement of the traffic facilities.

      5.  The menace which results from the foregoing factors is becoming increasingly direct and substantial in its significance and effect.

      6.  The benefits which the City will derive from the remedying of these deficiencies by making available additional revenues to defray indirectly the costs of undertakings within the City which are authorized by NRS 268.672 to 268.740, inclusive, the development of mixed-use and transit-oriented communities, and the redevelopment of blighted or deteriorating areas within the City will inure to the inhabitants and the property owners of the City as a whole, will be of general benefit to those people and will be of special benefit to the taxable real property within a tax increment area and to the owners of that property.

 


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of blighted or deteriorating areas within the City will inure to the inhabitants and the property owners of the City as a whole, will be of general benefit to those people and will be of special benefit to the taxable real property within a tax increment area and to the owners of that property.

      7.  The method of paying the bond requirements of the securities which are issued pursuant to this article is equitable and enables the City to issue securities to defray the cost of any project.

      8.  A general law cannot be made applicable to the City or to the properties, powers, rights, privileges, immunities, liabilities, duties and disabilities which pertain to the City, as provided in this article, because of the number of atypical factors and special conditions with respect to them.

      9.  For the accomplishment of the purposes which are provided in this section, each of the provisions of this article must be broadly construed.

      Sec. 33.  Section 7A.110 of the Charter of the City of North Las Vegas, being chapter 584, Statutes of Nevada 1983, at page 1853, is hereby amended to read as follows:

      Sec. 7A.110  “Undertaking” defined.  “Undertaking” means any enterprise to acquire, develop, improve or equip , [(] or any combination thereof , [)] any project which is authorized in NRS 268.672 to 268.740, inclusive, or which is a mixed-use or transit-oriented community, and to defray the cost of that enterprise, wholly or in part, by the issuance of the City’s bonds or other securities which are payable, wholly or in part, from tax proceeds which are allocated to any tax increment account that pertains to the enterprise pursuant to section 7A.230 of this Charter.

      Sec. 34.  Section 7A.120 of the Charter of the City of Reno, being chapter 460, Statutes of Nevada 1979, at page 862, is hereby amended to read as follows:

      Sec. 7A.120  “Undertaking” defined.  “Undertaking” means any enterprise to acquire, develop, improve or equip , [(] or any combination thereof , [)] any project or projects authorized in the City Bond Law or which is a mixed-use or transit-oriented community, and to defray the cost of such enterprise wholly or in part by the issuance of the City’s bonds or other securities payable wholly or in part from tax proceeds allocated to the Tax Increment Account pertaining to such enterprise pursuant to section 7A.190.

________

 

CHAPTER 405, AB 437

Assembly Bill No. 437–Committee on Commerce and Labor

 

CHAPTER 405

 

AN ACT relating to manufactured home parks; revising provisions governing the rights and obligations of landlords and tenants of manufactured home parks; revising provisions governing the obligations of a landlord before the closure of a manufactured home park in certain situations; revising provisions governing the membership of the board of directors or trustees of certain mobile home parks; revising provisions governing regulations for the issuance and renewal of a limited dealer’s license for mobile and manufactured homes; and providing other matters properly relating thereto.

 


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ê2005 Statutes of Nevada, Page 1597 (Chapter 405, AB 437)ê

 

issuance and renewal of a limited dealer’s license for mobile and manufactured homes; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 118B of NRS is hereby amended by adding thereto a new section to read as follows:

      If a landlord bills a tenant individually for utility charges derived from a utility bill for the manufactured home park which represents utility usage for multiple tenants, the landlord shall post in a conspicuous and readily accessible place in the community or recreational facility in the manufactured home park or other common area in the manufactured home park, or provide to each tenant who is individually billed for the utility charges:

      1.  A copy of the utility bill for the park; and

      2.  A statement indicating the portion of the utility bill for which each tenant is responsible.

      Sec. 2.  NRS 118B.070 is hereby amended to read as follows:

      118B.070  1.  The landlord shall [provide:] deliver to:

      (a) Each new tenant [with] a copy of the current text of the provisions of this chapter with the rental agreement at the time the tenant signs the agreement.

      (b) Each tenant [with] a copy of each provision of this chapter which is added, amended or repealed within [90] 180 days after the [provisions become] provision becomes effective.

      2.  When the landlord provides a tenant with a copy of any [of the provisions] provision of this chapter pursuant to subsection 1, the copy must contain a legible and typewritten statement that contains the following contact information regarding the Division in substantially the following form:

 

TENANTS OF MANUFACTURED HOME PARKS ARE ENTITLED TO CERTAIN RIGHTS UNDER NEVADA REVISED STATUTES

 

      To obtain information regarding your rights as a tenant under Nevada Revised Statutes, you may contact the Manufactured Housing Division of the Department of Business and Industry as follows:

 

SOUTHERN NEVADA:

(The address of the Division in Southern Nevada)

(The local telephone number of the Division in Southern Nevada)

 

NORTHERN NEVADA:

(The address of the Division in Northern Nevada)

(The local telephone number of the Division in Northern Nevada)

 


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INTERNET:

(The Internet address of the Division)

      Sec. 3.  NRS 118B.110 is hereby amended to read as follows:

      118B.110  1.  The landlord shall meet with a representative group of tenants occupying the park, chosen by the tenants, to hear any complaints or suggestions which concern a matter relevant to the park within 45 days after he receives a written request to do so which has been signed by persons occupying at least 25 percent of the lots in the park. The 25 percent must be calculated on the basis of one signature per occupied lot. The meeting must be held at a time and place which is convenient to the landlord and the tenants. The representative group of tenants must consist of no more than five persons.

      2.  At least 10 days before any meeting is held pursuant to this section , the landlord or his agent shall post a notice of the meeting in a conspicuous place in a common area of the park.

      3.  If the landlord is [not a natural person, the landlord shall appoint a natural person, not the manager or assistant manager, who possesses a financial interest in the manufactured home park to] a:

      (a) Sole proprietorship, the owner or an authorized agent or representative designated by the owner who has working knowledge of the operations of the park and authority to make decisions shall meet with the tenants.

      (b) Partnership, a partner who has working knowledge of the operations of the park and authority to make decisions shall meet with the tenants.

      (c) Corporation, an officer designated by the corporation who has working knowledge of the operations of the park and authority to make decisions shall meet with the tenants.

      4.  If an attorney for the landlord attends a meeting held pursuant to this section, the landlord shall not prohibit the group of tenants from being represented by an attorney at that meeting.

      5.  If the landlord of a manufactured home park is a cooperative association or a corporation for public benefit, the landlord shall provide a notice of the meeting to the Administrator and the Administrator or his representative shall attend the meeting.

      6.  As used in this section:

      (a) “Cooperative association” means an association formed pursuant to the provisions of NRS 81.170 to 81.270, inclusive.

      (b) “Corporation for public benefit” has the meaning ascribed to it in NRS 82.021.

      Sec. 4.  NRS 118B.120 is hereby amended to read as follows:

      118B.120  1.  The landlord or his agent or employee may:

      (a) Require that the tenant landscape and maintain the tenant’s lot if the landlord advises the tenant in writing of reasonable requirements for the landscaping.

      (b) If the tenant does not comply with the provisions of paragraph (a), maintain the tenant’s lot and charge the tenant a service fee for the actual cost of that maintenance.

      (c) Require that the manufactured home be removed from the park if it is unoccupied for more than 90 consecutive days and the tenant or dealer is not making good faith and diligent efforts to sell it.

 


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      2.  The landlord shall maintain, in the manner required for the other tenants, any lot on which is located a manufactured home within the park which has been repossessed, abandoned or held for rent or taxes. The landlord is entitled to reimbursement for the cost of that maintenance from the repossessor or lienholder or from the proceeds of any sale for taxes, as the case may be.

      3.  The landlord shall trim all the trees located within the park and dispose of the trimmings from those trees absent a written voluntary assumption of that duty by the tenant for trees on the tenant’s lot.

      4.  For the purposes of this section, a manufactured home shall be deemed to be abandoned if:

      (a) It is located on a lot in a manufactured home park, other than a cooperative park, for which no rent has been paid for at least 60 days;

      (b) It is unoccupied; and

      (c) The manager of the manufactured home park reasonably believes it to be abandoned.

      Sec. 5.  NRS 118B.150 is hereby amended to read as follows:

      118B.150  1.  Except as otherwise provided in subsections 2 and 3, the landlord or his agent or employee shall not:

      (a) Increase rent or additional charges unless:

             (1) The rent charged after the increase is the same rent charged for manufactured homes of the same size or lots of the same size or of a similar location within the park, including, without limitation, manufactured homes and lots which are held pursuant to a long-term lease, except that a discount may be selectively given to persons who:

                   (I) Are handicapped;

                   (II) Are 55 years of age or older;

                   (III) Are long-term tenants of the park if the landlord has specified in the rental agreement or lease the period of tenancy required to qualify for such a discount;

                   (IV) Pay their rent in a timely manner; or

                   (V) Pay their rent by check, money order or electronic means;

             (2) Any increase in additional charges for special services is the same amount for each tenant using the special service; and

             (3) Written notice advising a tenant of the increase is received by the tenant 90 days before the first payment to be increased and written notice of the increase is given to prospective tenants before commencement of their tenancy. In addition to the notice provided to a tenant pursuant to this subparagraph, if the landlord or his agent or employee knows or reasonably should know that the tenant receives assistance from the Fund created pursuant to NRS 118B.215, the landlord or his agent or employee shall provide to the Administrator written notice of the increase 90 days before the first payment to be increased.

      (b) Require a tenant to pay for an improvement to the common area of a manufactured home park unless the landlord is required to make the improvement pursuant to an ordinance of a local government.

      (c) Require a tenant to pay for a capital improvement to the manufactured home park unless the tenant has notice of the requirement at the time he enters into the rental agreement. A tenant may not be required to pay for a capital improvement after the tenant enters into the rental agreement unless the tenant consents to it in writing or is given 60 days’ notice of the requirement in writing. The landlord may not establish such a requirement unless a meeting of the tenants is held to discuss the proposal and the landlord provides each tenant with notice of the proposal and the date, time and place of the meeting not less than 60 days before the meeting.

 


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requirement unless a meeting of the tenants is held to discuss the proposal and the landlord provides each tenant with notice of the proposal and the date, time and place of the meeting not less than 60 days before the meeting. The notice must include a copy of the proposal. A notice in a periodic publication of the park does not constitute notice for the purposes of this paragraph.

      (d) Require a tenant to pay his rent by check or money order.

      (e) Require a tenant who pays his rent in cash to apply any change to which he is entitled to the next periodic payment that is due. The landlord or his agent or employee shall have an adequate amount of money available to provide change to such a tenant.

      (f) Prohibit or require fees or deposits for any meetings held in the park’s community or recreational facility by the tenants or occupants of any manufactured home or recreational vehicle in the park to discuss the park’s affairs, or any political meeting sponsored by a tenant, if the meetings are held at reasonable hours and when the facility is not otherwise in use, or prohibit the distribution of notices of those meetings.

      (g) Interrupt, with the intent to terminate occupancy, any utility service furnished the tenant except for nonpayment of utility charges when due. Any landlord who violates this paragraph is liable to the tenant for actual damages.

      (h) Prohibit a tenant from having guests, but he may require the tenant to register the guest within 48 hours after his arrival, Sundays and legal holidays excluded, and if the park is a secured park, a guest may be required to register upon entering and leaving.

      (i) Charge a fee for a guest who does not stay with the tenant for more than a total of 60 days in a calendar year. The tenant of a manufactured home lot who is living alone may allow one other person to live in his home without paying an additional charge or fee, unless such a living arrangement constitutes a violation of chapter 315 of NRS. No agreement between a tenant and his guest alters or varies the terms of the rental contract between the tenant and the landlord, and the guest is subject to the rules and regulations of the landlord.

      (j) Prohibit a tenant from erecting a fence [along the perimeter of] on the tenant’s lot if the fence complies with any standards for fences established by the landlord, including limitations established for the location and height of fences, the materials used for fences and the manner in which fences are to be constructed.

      (k) Prohibit any tenant from soliciting membership in any association which is formed by the tenants who live in the park. As used in this paragraph, “solicit” means to make an oral or written request for membership or the payment of dues or to distribute, circulate or post a notice for payment of those dues.

      (l) Prohibit a public officer, candidate for public office or the representative of a public officer or candidate for public office from walking through the park to talk with the tenants or distribute political material.

      (m) If a tenant has voluntarily assumed responsibility to trim the trees on his lot, require the tenant to trim any particular tree located on the lot or dispose of the trimmings unless a danger or hazard exists.

      2.  The landlord is entitled to require a security deposit from a tenant who wants to use the manufactured home park’s clubhouse, swimming pool or other park facilities for the tenant’s exclusive use. The landlord may require the deposit at least 1 week before the use.

 


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ê2005 Statutes of Nevada, Page 1601 (Chapter 405, AB 437)ê

 

require the deposit at least 1 week before the use. The landlord shall apply the deposit to costs which occur due to damage or clean up from the tenant’s use within 1 week after the use, if any, and shall, on or before the 8th day after the use, refund any unused portion of the deposit to the tenant making the deposit. The landlord is not required to place such a deposit into a financial institution or to pay interest on the deposit.

      3.  The provisions of paragraphs (a), (b), (c), (j) and (m) of subsection 1 do not apply to a corporate cooperative park.

      4.  As used in this section, “long-term lease” means a rental agreement or lease the duration of which exceeds 12 months.

      Sec. 6.  NRS 118B.170 is hereby amended to read as follows:

      118B.170  1.  The landlord may require approval of a prospective buyer and tenant before the sale of a tenant’s manufactured home or recreational vehicle, if the manufactured home or vehicle will remain in the park. The landlord shall consider the record, if any, of the prospective buyer and tenant concerning the payment of rent. The landlord shall not unreasonably withhold his consent.

      2.  If a tenant sells his manufactured home or recreational vehicle, the landlord may require that the manufactured home or recreational vehicle be removed from the park if it is deemed by the park’s written rules or regulations in the possession of the tenants to be in a run-down condition or in disrepair or does not meet the safety standards set forth in NRS 461A.120. If the manufactured home must be inspected to determine compliance with the standards, the person requesting the inspection shall pay for it.

      3.  If the landlord requires the approval of a prospective buyer and tenant, he shall [post] :

      (a) Post and maintain a sign which is clearly readable at the entrance to the park which advises the reader that before a manufactured home in the park is sold, the prospective buyer must be approved by the landlord.

      (b) Approve or deny a completed application from a prospective buyer and tenant within 10 business days after the date of the submission of the application.

      (c) Inform the prospective buyer and tenant upon the submission of the completed application of the duty of the landlord to approve or deny the completed application within 10 business days after the date of submission of the completed application.

      4.  If the landlord requires the approval of a prospective buyer and tenant of a manufactured home or recreational vehicle and the manufactured home or recreational vehicle is sold without the approval of the landlord, the landlord may:

      (a) After providing at least 5 days’ written notice to the buyer and tenant, bring an action for an unlawful detainer in the manner prescribed in chapter 40 of NRS; or

      (b) Require the buyer and tenant to sign a rental agreement. If the buyer and tenant refuse to sign the rental agreement within 5 days after such a request, the landlord may, after providing at least 5 days’ written notice to the buyer and tenant, bring an action for an unlawful detainer in the manner provided in chapter 40 of NRS.

      5.  For the purposes of NRS 40.251, a person who:

      (a) Purchases a manufactured home or recreational vehicle from a tenant of a manufactured home park which will remain in the park;

 


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ê2005 Statutes of Nevada, Page 1602 (Chapter 405, AB 437)ê

 

      (b) Was required to be approved by the landlord of the manufactured home park before the sale of the manufactured home or recreational vehicle; and

      (c) Was not approved by the landlord before he purchased that manufactured home or recreational vehicle,

Ê shall be deemed a tenant at will and a lessee of the manufactured home park.

      6.  The provisions of this section do not apply to a corporate cooperative park.

      Sec. 7.  NRS 118B.177 is hereby amended to read as follows:

      118B.177  1.  If a landlord closes a manufactured home park [he] , or if a landlord is forced to close a manufactured home park because of a valid order of a state or local governmental agency or court requiring the closure of the manufactured home park permanently for health or safety reasons, the landlord shall pay the amount described in subsection 2 or 3, in accordance with the choice of the tenant.

      2.  If the tenant chooses to move the manufactured home, the landlord shall pay to the tenant:

      (a) The cost of moving each tenant’s manufactured home and its appurtenances to a new location within 50 miles from the manufactured home park; or

      (b) If the new location is more than 50 miles from the manufactured home park, the cost of moving the manufactured home for the first 50 miles,

Ê including fees for inspection, any deposits for connecting utilities, and the cost of taking down, moving, setting up and leveling the manufactured home and its appurtenances in the new lot or park.

      3.  If the tenant chooses not to move the manufactured home, the manufactured home cannot be moved without being structurally damaged, or there is no manufactured home park within 50 miles that is willing to accept the manufactured home, the landlord:

      (a) May remove and dispose of the manufactured home; and

      (b) Shall pay to the tenant the fair market value of the manufactured home less the reasonable cost of removing and disposing of the manufactured home.

      4.  Written notice of [the] any closure must be served timely on each [tenant] :

      (a) Tenant in the manner provided in NRS 40.280, giving the tenant at least 180 days after the date of the notice before he is required to move his manufactured home from the lot.

      (b) Prospective tenant by:

             (1) Handing each prospective tenant or his agent a copy of the written notice; and

             (2) Maintaining a copy of the written notice at the entrance of the manufactured home park.

      5.  For the purposes of this section, the fair market value of a manufactured home and the reasonable cost of removing and disposing of a manufactured home must be determined by:

      (a) A dealer licensed pursuant to chapter 489 of NRS who is agreed upon by the landlord and tenant; or

      (b) If the landlord and tenant cannot agree pursuant to paragraph (a), a dealer licensed pursuant to chapter 489 of NRS who is selected for this purpose by the Division.

 


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ê2005 Statutes of Nevada, Page 1603 (Chapter 405, AB 437)ê

 

      6.  A landlord shall not increase the rent of a tenant after notice is served on the tenant as required by subsection 4.

      7.  As used in this section, “timely” means not later than 3 days after the landlord learns of a closure.

      Sec. 8.  NRS 118B.183 is hereby amended to read as follows:

      118B.183  1.  A landlord may convert an existing manufactured home park to any other use of the land if the change is approved by the appropriate local zoning board, planning commission or governing body, and:

      (a) The landlord gives notice in writing to each tenant within 5 days after he files his application for the change in land use with the local zoning board, planning commission or governing body;

      (b) The landlord pays the amount described in subsection 2 or 3, in accordance with the choice of the tenant; and

      (c) After the landlord is granted final approval of the change by the appropriate local zoning board, planning commission or governing body, written notice is served on each tenant in the manner provided in NRS 40.280, giving the tenant at least 180 days after the date of the notice before he is required to move his manufactured home from the lot.

      2.  If the tenant chooses to move the manufactured home, the landlord shall pay to the tenant:

      (a) The cost of moving the tenant’s manufactured home and its appurtenances to a new location within 50 miles from the manufactured home park; or

      (b) If the new location is more than 50 miles from the manufactured home park, the cost of moving the manufactured home for the first 50 miles,

Ê including fees for inspection, any deposits for connecting utilities and the cost of taking down, moving, setting up and leveling his manufactured home and its appurtenances in the new lot or park.

      3.  If the tenant chooses not to move the manufactured home, the manufactured home cannot be moved without being structurally damaged, or there is no manufactured home park within 50 miles that is willing to accept the manufactured home, the landlord:

      (a) May remove and dispose of the manufactured home; and

      (b) Shall pay to the tenant the fair market value of the manufactured home less the reasonable cost of removing and disposing of the manufactured home.

      4.  A landlord shall not increase the rent of any tenant [for] :

      (a) For 180 days before [applying] filing an application for a change in land use, permit or variance affecting the manufactured home park [.] ; or

      (b) At any time after filing an application for a change in land use, permit or variance affecting the manufactured home park unless:

            (1) The landlord withdraws the application or the appropriate local zoning board, planning commission or governing body denies the application; and

             (2) The landlord continues to operate the manufactured home park after the withdrawal or denial.

      5.  For the purposes of this section, the fair market value of a manufactured home and the reasonable cost of removing and disposing of a manufactured home must be determined by:

      (a) A dealer licensed pursuant to chapter 489 of NRS who is agreed upon by the landlord and tenant; or

 


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ê2005 Statutes of Nevada, Page 1604 (Chapter 405, AB 437)ê

 

      (b) If the landlord and tenant cannot agree pursuant to paragraph (a), a dealer licensed pursuant to chapter 489 of NRS who is selected for this purpose by the Division.

      6.  The provisions of this section do not apply to a corporate cooperative park.

      Sec. 9.  NRS 118B.210 is hereby amended to read as follows:

      118B.210  1.  The landlord shall not terminate a tenancy, refuse to renew a tenancy, increase rent or decrease services he normally supplies, or bring or threaten to bring an action for possession of a manufactured home lot as retaliation upon the tenant because:

      (a) He has complained in good faith about a violation of a building, safety or health code or regulation pertaining to a manufactured home park to the governmental agency responsible for enforcing the code or regulation.

      (b) He has complained to the landlord concerning the maintenance, condition or operation of the park or a violation of any provision of NRS 118B.040 to 118B.220, inclusive, and section 1 of this act, or 118B.240.

      (c) He has organized or become a member of a tenants’ league or similar organization.

      (d) He has requested the reduction in rent required by:

             (1) NRS 118.165 as a result of a reduction in property taxes.

             (2) NRS 118B.153 when a service, utility or amenity is decreased or eliminated by the landlord.

      (e) A citation has been issued to the landlord as the result of a complaint of the tenant.

      (f) In a judicial proceeding or arbitration between the landlord and the tenant, an issue has been determined adversely to the landlord.

      2.  A landlord, manager or assistant manager of a manufactured home park shall not willfully harass a tenant.

      3.  A tenant shall not willfully harass a landlord, manager or assistant manager of a manufactured home park or an employee or agent of the landlord.

      4.  As used in this section, “harass” means to threaten or intimidate, through words or conduct, with the intent to affect the terms or conditions of a tenancy or a person’s exercise of his rights pursuant to this chapter.

      Sec. 10.  Chapter 82 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Notwithstanding any provision of law to the contrary, if a corporation for public benefit owns or leases a mobile home park:

      (a) The board of directors or trustees which controls the mobile home park must be selected as set forth in NRS 461A.215; and

      (b) The provisions of NRS 461.215 govern the operation of the corporation and the mobile home park.

      2.  As used in this section:

      (a) “Board of directors or trustees which controls the mobile home park” has the meaning ascribed to it in NRS 461A.215.

      (b) “Owns or leases a mobile home park” has the meaning ascribed to it in NRS 461A.215.

      Sec. 11.  NRS 461A.215 is hereby amended to read as follows:

      461A.215  1.  [The board of directors of a mobile home park owned or leased by a nonprofit organization must consist of a number of members such that one-third of the members of the board are elected by the residents of the park, one-third of the members of the board are appointed by the governing body of the local government with jurisdiction over the location of the park and one-third of the members of the board are appointed by the nonprofit organization owning or leasing the park.

 


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ê2005 Statutes of Nevada, Page 1605 (Chapter 405, AB 437)ê

 

governing body of the local government with jurisdiction over the location of the park and one-third of the members of the board are appointed by the nonprofit organization owning or leasing the park.

      2.] Notwithstanding any provision of law to the contrary, if a nonprofit organization owns or leases a mobile home park:

      (a) The board of directors or trustees which controls the mobile home park must be selected as set forth in this section; and

      (b) The provisions of this section govern the operation of the nonprofit organization and the mobile home park.

      2.  If a nonprofit organization owns or leases only one mobile home park, the board of directors or trustees which controls the mobile home park must be composed of:

      (a) Three directors or trustees who are residents of the mobile home park and are elected by a majority of the residents who live in the mobile home park, with each unit in the mobile home park authorized to cast one vote;

      (b) Except as otherwise provided in subsection 4, three directors or trustees appointed by the governing body of the local government with jurisdiction over the location of the mobile home park; and

      (c) Three directors or trustees elected by a majority of the other directors or trustees selected pursuant to this subsection.

      3.  If a nonprofit organization owns or leases more than one mobile home park, the board of directors or trustees which controls the mobile home parks must be composed of:

      (a) For each mobile home park, one director or trustee who is a resident of that mobile home park and is elected by a majority of the residents who live in that mobile home park, with each unit in the mobile home park authorized to cast one vote;

      (b) Except as otherwise provided in subsection 4, one director or trustee appointed for each mobile home park by the governing body of the local government with jurisdiction over the location of that mobile home park; and

      (c) For each mobile home park, one director or trustee elected by a majority of the other directors or trustees selected pursuant to this subsection.

      4.  The governing body of a local government with jurisdiction over the location of a mobile home park owned or leased by a nonprofit organization shall not appoint a director or trustee pursuant to paragraph (b) of subsection 2 or paragraph (b) of subsection 3 unless the land upon which the mobile home park is located or the improvements to that land are owned by any governmental entity, patented to any governmental entity or leased to the nonprofit organization by any governmental entity.

      5.  The term of office of a director or trustee selected pursuant to this section:

      (a) Is 2 years, except that upon the expiration of his term of office he shall continue to serve until his successor is selected; and

      (b) Commences on July 1 of each odd-numbered year.

      6.  Any vacancy occurring in the membership of the board of directors or trustees selected pursuant to this section must be filled in the same manner as the original election or appointment.

      7.  The Attorney General shall:

      (a) Enforce the provisions of this section;

 


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ê2005 Statutes of Nevada, Page 1606 (Chapter 405, AB 437)ê

 

      (b) Investigate suspected violations of the provisions of this section; and

      (c) Institute proceedings on behalf of this State, an agency or political subdivision of this State, or as parens patriae of a person residing in a mobile home park:

             (1) For injunctive relief to prevent and restrain a violation of any provision of this section; and

             (2) To collect any costs or fees awarded pursuant to the provisions of this section.

      8.  The provisions of this section may be enforced with regard to a nonprofit organization or a mobile home park by:

      (a) The nonprofit organization;

      (b) The board of directors or trustees required to be selected pursuant to this section, or any member thereof;

      (c) A person who claims membership on the board of directors or trustees required to be selected pursuant to this section;

      (d) A resident of the mobile home park;

      (e) The local government with jurisdiction over the location of the mobile home park; or

      (f) Any combination of the persons described in paragraphs (a) to (e), inclusive.

      9.  In any action to enforce the provisions of this section, including, without limitation, an action to prevent or restrain a violation of the provisions of this section, if a person is found to have knowingly acted as a director or trustee on a board of directors or trustees required to be selected pursuant to this section while he was not authorized to act as such a director or trustee pursuant to this section:

      (a) The court shall award the prevailing party costs and attorney’s fees;

      (b) If the nonprofit organization which owns or leases a mobile home park participates in the action, the court shall award the nonprofit organization costs and attorney’s fees; and

      (c) Costs and attorney’s fees awarded pursuant to this section must be recovered from the person. If in the same action to enforce the provisions of this section, more than one person is found to have knowingly acted as a director or trustee on a board of directors or trustees required to be selected pursuant to this section while he was not authorized to act as such a director or trustee pursuant to this section, each such person is jointly and severally liable for the costs and attorney’s fees awarded pursuant to this section.

      10.  The provisions of this section do not apply to a corporate cooperative park.

      11.  As used in this section:

      (a) “Board of directors or trustees which controls the mobile home park” means:

             (1) If the nonprofit organization which owns or leases a mobile home park does not own or operate any substantial asset that is unrelated to the mobile home park, the board of directors or trustees of the nonprofit organization; or

             (2) If the nonprofit organization which owns or leases a mobile home park owns or operates a substantial asset that is unrelated to the mobile home park, a board of directors or trustees which:

 


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ê2005 Statutes of Nevada, Page 1607 (Chapter 405, AB 437)ê

 

                   (I) Has full and independent control over the affairs of the nonprofit organization that are related to the mobile home park, including, without limitation, full and independent control over all policies, operation, property, assets, accounts and records of the nonprofit organization which are related to or derived from the park;

                   (II) Notwithstanding any provision of law to the contrary, exercises the powers described in sub-subparagaph (I) without being subject to any control by the board of directors or trustees of the nonprofit organization or any other person, group or entity within or related to the nonprofit organization; and

                   (III) If the nonprofit organization owns or leases more than one mobile home park, controls all of the mobile home parks owned or leased by the nonprofit organization.

      (b) “Corporation for public benefit” has the meaning ascribed to it in NRS 82.021.

      (c) “Governmental entity” includes, without limitation, the Federal Government, this State, an agency or political subdivision of this State, a municipal corporation and a housing authority.

      (d) “Nonprofit organization” includes, without limitation, a corporation for public benefit.

      (e) “Owns or leases a mobile home park” means being the owner or lessee of:

             (1) The land upon which the mobile home park is located; or

             (2) The improvements to the land upon which the mobile home park is located.

      Sec. 12.  NRS 489.281 is hereby amended to read as follows:

      489.281  1.  The Division shall adopt regulations for the issuance and renewal of a limited dealer’s license authorizing a person other than a bank, savings and loan association, credit union, thrift company or other financial institution to act as a repossessor or liquidator concerning manufactured homes, mobile homes or commercial coaches.

      2.  Regulations adopted by the Division concerning the issuance and renewal of a limited dealer’s license must not require more than 2 hours of continuing education per year and the required continuing education must be limited to topics relating to the processes and procedures for the sale of a manufactured home.

      Sec. 13.  1.  Except as otherwise provided in subsection 2, if the provisions of NRS 461A.215, as amended by this act, apply to an organization in existence on the effective date of this section, the directors or trustees of the organization who are in office on the effective date of this section shall be deemed to be authorized to serve as the directors or trustees pursuant to NRS 461A.215, as amended by this act, until a board of directors or trustees is selected pursuant to NRS 461A.215, as amended by this act.

      2.  If the provisions of NRS 461A.215, as amended by this act, apply to an organization in existence on the effective date of this section and applied to the organization before the effective date of this section, and the directors or trustees were elected by the residents of the mobile home park or appointed by the governing body of the local government with jurisdiction over the location of the mobile home park pursuant to NRS 461A.215 before the effective date of this section, those directors or trustees elected by the residents or appointed by the governing body of the local government shall be deemed to be:

 


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ê2005 Statutes of Nevada, Page 1608 (Chapter 405, AB 437)ê

 

      (a) Authorized to serve as the directors or trustees pursuant to NRS 461A.215, as amended by this act, until a board of directors or trustees is selected pursuant to NRS 461A.215, as amended by this act; and

      (b) The sole directors or trustees authorized to serve as the directors or trustees pursuant to NRS 461A.215, as amended by this act, until a board of directors or trustees is selected pursuant to NRS 461A.215, as amended by this act.

      Sec. 14.  1.  This section and sections 10, 11 and 13 of this act become effective upon passage and approval.

      2.  Sections 1 to 9, inclusive, and 12 of this act become effective on July 1, 2005.

________

 

CHAPTER 406, SB 37

Senate Bill No. 37–Senator Wiener

 

CHAPTER 406

 

AN ACT relating to prescription drugs; requiring an applicant for licensure as a wholesaler of prescription drugs to submit a set of his fingerprints to the State Board of Pharmacy for use by the Board in obtaining a report on the applicant’s criminal history; authorizing the Board to require certain persons connected with the operations of a licensed wholesaler to submit a set of fingerprints to the Board for use by the Board in obtaining a report on the person’s criminal history; requiring certain licensed wholesalers to file a bond or cash deposit conditioned upon compliance with the laws relating to wholesalers; requiring the State Board of Pharmacy to ensure the safe and efficient operation of wholesalers and the integrity and propriety of transactions involving wholesalers; revising provisions governing the sale and purchase of prescription drugs by wholesalers; providing penalties; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 639 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 12, inclusive, of this act.

      Sec. 2.  1.  In addition to the requirements for an application set forth in NRS 639.100, each applicant for a license to engage in wholesale distribution shall submit with his application a complete set of his fingerprints and written permission authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report. If the applicant is a:

      (a) Natural person, that person must submit his fingerprints.

      (b) Partnership, each partner must submit his fingerprints.

      (c) Corporation, each officer and director of the corporation must submit his fingerprints.

      (d) Sole proprietorship, that sole proprietor must submit his fingerprints.

 


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      2.  In addition to the requirements of subsection 1, the applicant shall submit with his application a list containing each employee, agent, independent contractor, consultant, guardian, personal representative, lender or holder of indebtedness of the applicant. The Board may require any person on the applicant’s list to submit a complete set of his fingerprints to the Board if the Board determines that the person has the power to exercise significant influence over the operation of the applicant as a licensed wholesaler. The fingerprints must be submitted with written permission authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report. The provisions of this subsection do not apply to a:

      (a) Lender or holder of indebtedness of an applicant who is a commercial bank, bank holding company, subsidiary or affiliate of a bank holding company, personal property broker, consumer finance lender, commercial finance lender or insurer, or any other person engaged in the business of extending credit, who is regulated by an officer or agency of the State or the Federal Government.

      (b) Common motor carrier or other delivery service that delivers a drug at the direction of a manufacturer.

      3.  The Board may issue a provisional license to an applicant pending receipt of the reports from the Federal Bureau of Investigation if the Board determines that the applicant is otherwise qualified.

      4.  An applicant who is issued a license by the Board shall not allow a person who is required to submit his fingerprints pursuant to subsection 2 to act in any capacity in which he exercises significant influence over the operation of the wholesaler if the:

      (a) Person does not submit a complete set of his fingerprints in accordance with subsection 2; or

      (b) Report of the criminal history of the person indicates that he has been convicted of, or entered a plea of guilty or nolo contendere to, a felony or offense involving moral turpitude or related to the qualifications, functions or duties of that person in connection with the operation of the wholesaler.

      5.  The Board shall not issue a license to an applicant if the requirements of this section are not satisfied.

      Sec. 2.5.  The Board shall implement and maintain reasonable security measures to protect the information obtained by the Board pursuant to section 2 of this act and all other information related to an application for a license to engage in wholesale distribution to protect the information from unauthorized access, acquisition, destruction, use, modification or disclosure. The provisions of this section do not prohibit the Board from disclosing and providing such information to other state and federal agencies involved in the regulation of prescription drugs to the extent deemed necessary by the Board.

      Sec. 3.  1.  On an annual basis, each licensed wholesaler shall submit to the Board an updated list of each employee, agent, independent contractor, consultant, guardian, personal representative, lender or holder of indebtedness of the wholesaler who is employed by or otherwise contracts with the wholesaler for the provision of services in connection with the operation of the licensee as a wholesaler. Any changes to the list must be submitted to the Board not later than 30 days after the change is made.

 


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ê2005 Statutes of Nevada, Page 1610 (Chapter 406, SB 37)ê

 

must be submitted to the Board not later than 30 days after the change is made.

      2.  If a person identified on an undated list of the wholesaler is employed by or otherwise contracts with the wholesaler after the wholesaler is issued a license and that person did not submit his fingerprints pursuant to section 2 of this act, the Board may require that person to submit a complete set of his fingerprints to the Board if the Board determines that the person has the power to exercise significant influence over the operation of the licensee as a wholesaler. The fingerprints must be submitted within 30 days after being requested to do so by the Board and must include written permission authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report. The provisions of this subsection do not apply to a:

      (a) Lender or holder of indebtedness of a wholesaler who is a commercial bank, bank holding company, subsidiary or affiliate of a bank holding company, personal property broker, consumer finance lender, commercial finance lender or insurer, or any other person engaged in the business of extending credit, who is regulated by an officer or agency of the State or the Federal Government.

      (b) Common motor carrier or other delivery service that delivers a drug at the direction of a manufacturer.

      3.  A wholesaler shall not allow a person who is required to submit his fingerprints pursuant to subsection 2 to act in any capacity in which he exercises significant influence over the operation of the wholesaler if the:

      (a) Person does not submit a complete set of his fingerprints in accordance with subsection 2; or

      (b) Report of the criminal history of the person indicates that he has been convicted of, or entered a plea of guilty or nolo contendere to, a felony or offense involving moral turpitude or related to qualifications, functions or duties of that person in connection with the operation of the wholesaler.

      Sec. 4.  1.  Except as otherwise provided in this subsection, before the Board issues a license to engage in the wholesale distribution of prescription drugs, the applicant shall file with the Board a bond in an amount not less than $25,000 and not more than $100,000, as determined by the Board, executed by the applicant as principal, and by a corporation qualified under the laws of this State as surety, payable to this State and conditioned upon the compliance with the requirements of this chapter applicable to wholesalers. An applicant that is a publicly traded corporation is not required to file a bond or other security pursuant to this section.

      2.  In lieu of the bond required pursuant to subsection 1, an applicant may deposit with the Board a like amount of lawful money of the United States or any other form of security authorized by NRS 100.065. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the certificate must state that the amount is not available for withdrawal except upon order of the Board.

      3.  The Board may, by agreement with a wholesaler who has been licensed with the Board for 5 consecutive years or more, allow a reduction in the amount of the bond or other security as provided in subsections 1 and 2, if the wholesaler has conducted business in accordance with the applicable provisions of this chapter for the immediately preceding 5 years, but no bond may be in an amount less than $5,000.

 


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applicable provisions of this chapter for the immediately preceding 5 years, but no bond may be in an amount less than $5,000. The Board may at any time thereafter require the licensee to increase the amount of the bond or other security if evidence is presented to the Board supporting this requirement.

      4.  The purpose of the bond and other security required by this section is to secure payment of any fines imposed by the Board pursuant to NRS 639.255 and any costs incurred by the Board regarding the license of a wholesaler that are imposed pursuant to NRS 622.400 or 622.410 which the licensee fails to pay within 30 days after the fines or costs become due and payable. The Board may make a claim against a bond or other security pursuant to this subsection until 1 year after the license ceases to be valid or until 60 days after any administrative proceeding against the licensee conducted pursuant to NRS 639.241 to 639.2576, inclusive, is concluded.

      5.  Except as otherwise provided in this subsection, before renewing a license to engage in wholesale distribution, the Board shall require the licensee to file with the Board satisfactory evidence that his surety bond or other security is in full force. A licensee that is a publicly traded corporation is not required to maintain a bond or other security.

      6.  Failure of an applicant or licensee to file or maintain in full force the required bond or other security constitutes cause for the Board to deny, revoke, suspend or refuse to renew a license to engage in wholesale distribution.

      7.  All money received by the Board pursuant to this section must be deposited in accordance with NRS 639.081.

      Sec. 5.  As used in sections 5 to 8, inclusive, of this act, unless the context otherwise requires, “statement of prior sales” or “statement”:

      1.  Means a statement of prior sales that must be used in a transaction involving the purchase or sale of a prescription drug by a wholesaler, if required; and

      2.  Is synonymous with the term “Statement Identifying Prior Sales of Prescription Drugs by Wholesalers Required by the Prescription Drug Marketing Act.”

      Sec. 6.  1.  The Board shall ensure the safe and efficient operation of wholesalers and the integrity and propriety of transactions involving the purchase and sale of prescription drugs by wholesalers, including, without limitation, ensuring:

      (a) The circumstances and conditions under which a wholesaler must prepare, deliver, acquire and maintain a statement of prior sales regarding a transaction involving the purchase or sale of a prescription drug;

      (b) The form and contents of a statement of prior sales; and

      (c) The process and procedures for verifying and certifying that the information contained in a statement of prior sales is complete and accurate.

      2.  In ensuring the circumstances and conditions under which a wholesaler must prepare, deliver, acquire and maintain a statement of prior sales regarding a transaction involving the purchase or sale of a prescription drug, the Board shall consider:

      (a) The need for verification to ensure that the transaction is a bona fide transaction pursuant to NRS 639.2615; and

 


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ê2005 Statutes of Nevada, Page 1612 (Chapter 406, SB 37)ê

 

      (b) The level of risk the transaction poses to public health and safety, including, without limitation, the potential that the transaction may involve the sale or purchase of a prescription drug that is:

             (1) Counterfeit;

             (2) Deemed to be adulterated or misbranded in accordance with the provisions of chapter 585 of NRS;

             (3) Mislabeled;

             (4) Damaged or compromised by improper handling, storage or temperature control;

             (5) From a foreign or unlawful source; or

             (6) Manufactured, packaged, labeled or shipped in violation of any state or federal law relating to prescription drugs.

      3.  If a statement of prior sales is required for a transaction involving the purchase or sale of a prescription drug by a wholesaler, the statement:

      (a) Must include the signature of the wholesaler or his designated representative certifying that the information contained in the statement is complete and accurate; and

      (b) Except as otherwise provided in subsection 4, must be:

             (1) In written or electronic form, if the transaction occurs before January 1, 2007; and

             (2) In electronic form, if the transaction occurs on or after January 1, 2007.

      4.  The Board may extend the date for compliance with the requirement that the statement of prior sales must be in electronic form if the Board determines that the technology to provide such a statement in electronic form is not reasonably available or that the licensed wholesalers in this State otherwise require additional time to carry out the requirements of an electronic form. If the Board extends the deadline pursuant to this subsection, the Board shall ensure that all licensed wholesalers in this State are provided adequate notice of the extension.

      Sec. 6.5.  If a statement of prior sales indicates that more than 3 prior sales of a prescription drug have occurred, including, without limitation, a sale involving an authorized distributor of record, a person who is licensed to engage in wholesale distribution pursuant to this chapter shall not sell that prescription drug to another wholesaler.

      Sec. 7.  A person who is licensed to engage in wholesale distribution pursuant to this chapter is guilty of a category C felony and shall be punished as provided in NRS 193.130 if, with the intent to defraud or deceive, he:

      1.  Fails to deliver to another person a complete and accurate statement of prior sales for a prescription drug, if such a statement is required, before selling or otherwise transferring the drug to that person.

      2.  Fails to acquire a complete and accurate statement of prior sales for a prescription drug, if such a statement is required, before obtaining the drug from another person.

      3.  Falsely swears or certifies that the information in a statement of prior sales is accurate and complete.

      Sec. 8.  A person who is licensed to engage in wholesale distribution pursuant to this chapter is guilty of a category C felony and shall be punished as provided in NRS 193.130 if he knowingly:

 


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ê2005 Statutes of Nevada, Page 1613 (Chapter 406, SB 37)ê

 

      1.  Destroys, alters, conceals or fails to maintain a complete and accurate statement of prior sales for each prescription drug in his possession for wholesale distribution if such a statement is required.

      2.  Fails to authenticate information contained in a statement of prior sales for a prescription drug, if such a statement is required, and distributes or attempts to distribute that prescription drug.

      3.  Forges, counterfeits or falsely creates a statement of prior sales.

      4.  Makes a false representation or assertion of any factual matter contained in a statement of prior sales.

      5.  Fails to record material information required to be recorded in a statement of prior sales.

      Sec. 9.  A person who is licensed to engage in wholesale distribution pursuant to this chapter shall maintain the following information, updated annually, concerning each wholesaler from whom the licensee purchases a prescription drug or to whom the licensee sells a prescription drug:

      1.  A list that identifies each state in which the wholesaler is domiciled and each state into which the wholesaler ships prescription drugs.

      2.  Copies of each state and federal regulatory license and registration held by the wholesaler, including, without limitation, the numbers accompanying each license and registration.

      3.  Copies of formation documents, business licenses and other documents related to the company of the wholesaler and its operations.

      4.  Copies of the wholesaler’s most recent site inspection report by state or federal agencies.

      5.  If the licensee receives a prescription drug from the wholesaler, a copy of the wholesaler’s product liability insurance policy that includes the licensee as an additional insured for at least $1,000,000.

      6.  A list that includes the name and address of:

      (a) If the wholesaler is a partnership, limited-liability partnership or limited-liability corporation, the partners or shareholders, as applicable.

      (b) If the wholesaler is a private corporation, the officers, directors and shareholders.

      (c) If the wholesaler is a public corporation, the officers and directors.

      7.  Evidence of due diligence in accordance with section 10 of this act.

      8.  A copy of the wholesaler’s policy or procedure for internal operations, including, without limitation, the procedures related to handling counterfeit, misbranded or adulterated prescription drugs.

      9.  A listing of all manufacturers with whom the wholesaler claims status as an authorized distributor of record and the applicable account numbers.

      Sec. 10.  1.  A person who is licensed to engage in wholesale distribution pursuant to this chapter shall maintain the following evidence regarding due diligence concerning each wholesaler with whom the licensee does business in accordance with any applicable requirements of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.:

      (a) A copy of the driver’s license of:

             (1) If the wholesaler is a sole proprietor, the owner.

             (2) If the wholesaler is a partnership, limited-liability partnership or limited-liability corporation, each partner or shareholder, as applicable.

             (3) If the wholesaler is a private corporation, each officer and director.

 


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ê2005 Statutes of Nevada, Page 1614 (Chapter 406, SB 37)ê

 

      (b) Proof that the licensee has checked to determine if civil or criminal litigation or both exists against the company, its owners, partners, officers or directors and whether any disciplinary action has been taken or is pending against the company, its owners, partners, officers or directors by a state or federal agency.

      2.  A person who is licensed to engage in wholesale distribution pursuant to this chapter shall not maintain a business relationship with any company if any of the owners, partners, officers or directors have been convicted of a felony related to the wholesale distribution of prescription drugs.

      Sec. 11.  1.  A person who is licensed to engage in wholesale distribution pursuant to this chapter shall, within 30 days after beginning a business relationship with another wholesaler, conduct an on-site inspection of each facility of the wholesaler to verify that the wholesaler complies with federal requirements for the storage of prescription drugs and the operation of the facilities where prescription drugs are stored.

      2.  After the date of the inspection pursuant to subsection 1, the licensee shall conduct an on-site inspection biannually.

      3.  Each on-site inspection conducted pursuant to this section must include:

      (a) An assessment of the authority, training and experience of persons who are responsible for receiving, inspecting, storing, handling and shipping prescription drugs at the facility;

      (b) An assessment of the operational conditions of each facility of the wholesaler, including, without limitation, security, climate control and cleanliness;

      (c) An assessment of compliance with:

             (1) The Federal Prescription Drug Marketing Act;

             (2) Appropriate recordkeeping measures;

             (3) The Drug Enforcement Administration recordkeeping requirements if the wholesaler maintains a federal controlled substance registration; and

             (4) Temperature monitoring and documentation requirements; and

      (d) An assessment of the procedures of the wholesaler for detecting adulterated, misbranded or counterfeit prescription drugs.

      4.  For each inspection pursuant to this section, the licensee shall obtain and maintain the signature of the appropriate representative of the wholesaler verifying the accuracy of the inspection.

      5.  Each licensee shall enter into an agreement with each wholesaler with whom the licensee enters into a business relationship providing that the wholesaler will comply with all applicable federal and state laws and regulations relating to the purchase and sale of prescription drugs and requiring the wholesaler to notify the licensee of any material change regarding the integrity or legal status of prescription drugs received by the licensee or any other material change regarding the legal status of the wholesaler.

      Sec. 12.  A person who is licensed to engage in wholesale distribution pursuant to this chapter shall certify a claim by another wholesaler that the wholesaler is an authorized distributor of record from whom the licensee purchases a prescription drug. Such certification includes a statement signed by a representative of the wholesaler certifying the claim that the wholesaler is an authorized distributor of record for a specified manufacturer and:

 


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ê2005 Statutes of Nevada, Page 1615 (Chapter 406, SB 37)ê

 

wholesaler is an authorized distributor of record for a specified manufacturer and:

      1.  A copy of the written agreement currently in effect with the manufacturer;

      2.  A copy of a letter from the manufacturer endorsing the wholesaler as an authorized distributor of record;

      3.  Copies of applicable invoices from the manufacturer demonstrating the purchase by the wholesaler of at least 1,000 sales units of prescription drugs from the manufacturer within the 12 months immediately preceding the current month;

      4.  Copies of applicable invoices from the manufacturer from each of the previous 12 months;

      5.  Copies of applicable invoices from the manufacturer specific to the given transaction; or

      6.  Verification from the manufacturer’s website that the wholesaler is an authorized distributor of record.

      Sec. 13.  NRS 639.040 is hereby amended to read as follows:

      639.040  1.  The Board shall elect a President and a Treasurer from among its members.

      2.  The Board shall employ an Executive Secretary, who [must not be] is not a member of the Board. The Executive Secretary must have experience as a licensed pharmacist in this State or in another state with comparable licensing requirements. The Executive Secretary shall keep a complete record of all proceedings of the Board and of all certificates issued, and shall perform such other duties as the Board may require, for which services he is entitled to receive a salary to be determined by the Board.

      Sec. 14.  NRS 639.180 is hereby amended to read as follows:

      639.180  1.  Except as otherwise provided in this subsection, a certificate, license or permit issued by the Board pursuant to this chapter expires on October 31 of each even-numbered year. A certificate of registration as a pharmacist expires on October 31 of each odd-numbered year.

      2.  Except as otherwise provided by NRS 639.137, 639.230 and 639.2328, each person to whom a certificate, license or permit has been issued may, if the certificate, license or permit has not been revoked, renew the certificate, license or permit biennially by:

      (a) Filing an application for renewal;

      (b) Paying the fee for renewal;

      (c) Complying with the requirement of continuing professional education, if applicable; [and]

      (d) If applicable, filing with the Board satisfactory evidence that his surety bond or other security required by section 4 of this act is in full force; and

      (e) If the applicant is a natural person who is applying for the renewal of a certificate of registration as a pharmacist, intern pharmacist, pharmaceutical technician or pharmaceutical technician in training or a license issued pursuant to NRS 639.233, submitting the statement required pursuant to NRS 639.129.

      3.  The application for renewal, together with the fee for renewal and, if applicable, the evidence of compliance with section 4 of this act and the statement [,] required pursuant to NRS 639.129, must be delivered to the Executive Secretary of the Board on or before the expiration date of the certificate, license or permit, or the current renewal receipt thereof.

 


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ê2005 Statutes of Nevada, Page 1616 (Chapter 406, SB 37)ê

 

Executive Secretary of the Board on or before the expiration date of the certificate, license or permit, or the current renewal receipt thereof.

      4.  If a certificate, license or permit is renewed, it must be delivered to the applicant within a reasonable time after receipt of the application for renewal and the fee for renewal.

      5.  The Board may refuse to renew a certificate, license or permit if the applicant has committed any act proscribed by NRS 639.210.

      6.  If the application for renewal , [and] the fee for renewal and, if applicable, the evidence of compliance with section 4 of this act and the statement required pursuant to NRS 639.129, are not postmarked on or before the expiration date of the certificate, license or permit, or the current renewal receipt thereof, the registration is automatically forfeited.

      Sec. 15.  NRS 639.180 is hereby amended to read as follows:

      639.180  1.  Except as otherwise provided in this subsection, a certificate, license or permit issued by the Board pursuant to this chapter expires on October 31 of each even-numbered year. A certificate of registration as a pharmacist expires on October 31 of each odd-numbered year.

      2.  Except as otherwise provided by NRS 639.137, 639.230 and 639.2328, each person to whom a certificate, license or permit has been issued may, if the certificate, license or permit has not been revoked, renew the certificate, license or permit biennially by:

      (a) Filing an application for renewal;

      (b) Paying the fee for renewal; [and]

      (c) If applicable, filing with the Board satisfactory evidence that his surety bond or other security required by section 4 of this act is in full force; and

      (d) Complying with the requirement of continuing professional education, if applicable.

      3.  The application for renewal, together with the fee for renewal [,] and, if applicable, the evidence of compliance with section 4 of this act, must be delivered to the Executive Secretary of the Board on or before the expiration date of the certificate, license or permit, or the current renewal receipt thereof.

      4.  If a certificate, license or permit is renewed, it must be delivered to the applicant within a reasonable time after receipt of the application for renewal and the fee for renewal.

      5.  The Board may refuse to renew a certificate, license or permit if the applicant has committed any act proscribed by NRS 639.210.

      6.  If the application for renewal , [and] the fee for renewal and, if applicable, the evidence of compliance with section 4 of this act are not postmarked on or before the expiration date of the certificate, license or permit, or the current renewal receipt thereof, the registration is automatically forfeited.

      Sec. 16.  NRS 639.210 is hereby amended to read as follows:

      639.210  The Board may suspend or revoke any certificate, license, registration or permit issued pursuant to this chapter, and deny the application of any person for a certificate, license, registration or permit, if the holder or applicant:

      1.  Is not of good moral character;

      2.  Is guilty of habitual intemperance;

 


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      3.  Becomes or is intoxicated or under the influence of liquor, any depressant drug or a controlled substance, unless taken pursuant to a lawfully issued prescription, while on duty in any establishment licensed by the Board;

      4.  Is guilty of unprofessional conduct or conduct contrary to the public interest;

      5.  Is addicted to the use of any controlled substance;

      6.  Has been convicted of a violation of any law or regulation of the Federal Government or of this or any other state related to controlled substances, dangerous drugs, drug samples, or the wholesale or retail distribution of drugs;

      7.  Has been convicted of:

      (a) A felony relating to holding a certificate, license, registration or permit pursuant to this chapter; [or]

      (b) A felony pursuant to section 7 or 8 of this act; or

      (c) Other crime involving moral turpitude, dishonesty or corruption;

      8.  Has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive;

      9.  Has willfully made to the Board or its authorized representative any false statement which is material to the administration or enforcement of any of the provisions of this chapter;

      10.  Has obtained any certificate, certification, license or permit by the filing of an application, or any record, affidavit or other information in support thereof, which is false or fraudulent;

      11.  Has violated any provision of the Federal Food, Drug and Cosmetic Act or any other federal law or regulation relating to prescription drugs;

      12.  Has violated, attempted to violate, assisted or abetted in the violation of or conspired to violate any of the provisions of this chapter or any law or regulation relating to drugs, the manufacture or distribution of drugs or the practice of pharmacy, or has knowingly permitted, allowed, condoned or failed to report a violation of any of the provisions of this chapter or any law or regulation relating to drugs, the manufacture or distribution of drugs or the practice of pharmacy committed by the holder of a certificate, license, registration or permit;

      13.  Has failed to renew his certificate, license or permit by failing to submit the application for renewal or pay the renewal fee therefor;

      14.  Has had his certificate, license or permit suspended or revoked in another state on grounds which would cause suspension or revocation of a certificate, license or permit in this State;

      15.  Has, as a managing pharmacist, violated any provision of law or regulation concerning recordkeeping or inventory in a store over which he presides, or has knowingly allowed a violation of any provision of this chapter or other state or federal laws or regulations relating to the practice of pharmacy by personnel of the pharmacy under his supervision;

      16.  Has repeatedly been negligent, which may be evidenced by claims of malpractice settled against him; [or]

      17.  Has failed to maintain and make available to a state or federal officer any records in accordance with the provisions of this chapter or chapter 453 or 454 of NRS [.] ; or

      18.  Has failed to file or maintain a bond or other security if required by section 4 of this act.

 


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      Sec. 17.  NRS 639.2615 is hereby amended to read as follows:

      639.2615  1.  A wholesaler may sell a prescription drug only [to:

      (a) A pharmacy or practitioner; or

      (b) Another wholesaler if:

             (1) The wholesaler who purchases the drug is licensed by the Board or the board or other relevant authority of another state; and

             (2) The] if the sale is a bona fide transaction.

      2.  A wholesaler may purchase a prescription drug only from:

      (a) A manufacturer; [or]

      (b) A pharmacy or practitioner if that pharmacy or practitioner maintains a valid license in the State in which the pharmacy or practitioner is domiciled; or

      (c) Another wholesaler if:

             (1) The wholesaler who sells the drug is licensed by the Board; and

             (2) The sale is a bona fide transaction.

      3.  A wholesaler may receive a prescription drug from a pharmacy or practitioner only if the wholesaler does not pay the pharmacy or practitioner an amount, either in cash or credit, that is more than the price for which the wholesaler sells such prescription drugs to other pharmacies or practitioners at the time of return and:

      (a) The prescription drug was originally shipped to the pharmacy or practitioner by the wholesaler; or

      (b) The prescription drug could not be returned by the pharmacy or practitioner to the original wholesaler.

Ê If a wholesaler receives a prescription drug pursuant to this subsection and the wholesaler subsequently sells the prescription drug to another wholesaler, the prescription drug must be accompanied by a statement of prior sales as defined in section 5 of this act.

      4.  The Board shall not limit the quantity of prescription drugs a wholesaler may purchase, sell, distribute or otherwise provide to another wholesaler, distributor or manufacturer.

      [4.] 5.  For the purposes of this section:

      (a) A purchase shall be deemed a bona fide transaction if:

             (1) The wholesaler purchased the drug:

                   (I) Directly from the manufacturer of the drug; or

                   (II) With a reasonable belief that the drug was originally purchased directly from the manufacturer of the drug;

             (2) The circumstances of the purchase reasonably indicate that the drug was not purchased from a source prohibited by law;

             (3) Unless the drug is purchased by the wholesaler from the manufacturer, before the wholesaler sells the drug to another wholesaler, the wholesaler who sells the drug conducts a reasonable visual examination of the drug to ensure that the drug is not:

                   (I) Counterfeit;

                   (II) Deemed to be adulterated or misbranded in accordance with the provisions of chapter 585 of NRS;

                   (III) Mislabeled;

                   (IV) Damaged or compromised by improper handling, storage or temperature control;

                   (V) From a foreign or unlawful source; or

                   (VI) Manufactured, packaged, labeled or shipped in violation of any state or federal law relating to prescription drugs;

 


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             (4) The drug is shipped directly from the wholesaler who sells the drug to the wholesaler who purchases the drug; and

             (5) The documents of the shipping company concerning the shipping of the drug are attached to the invoice for the drug and are maintained in the records of the wholesaler.

      (b) A sale shall be deemed a bona fide transaction if [there is a reasonable assurance by the wholesaler that purchases the drug that the wholesaler will sell the drug directly and] the wholesaler sells the prescription drug only to [a] :

             (1) A pharmacy or practitioner [.] if that pharmacy or practitioner maintains a valid license in the state in which the pharmacy or practitioner is domiciled.

             (2) Another wholesaler who maintains a valid license in the state in which he is domiciled if the wholesaler who sells the prescription drug has complied with sections 9, 10 and 11 of this act.

      (c) The purchase or sale of a prescription drug includes, without limitation, the distribution, transfer, trading, bartering or any other provision of a prescription drug to another person by a wholesaler. A transfer of a prescription drug from a wholesale facility of a wholesaler to another wholesale facility of the wholesaler shall not be deemed a purchase or sale of a prescription drug pursuant to this section if the wholesaler is a corporation whose securities are publicly traded and regulated by the Securities Exchange Act of 1934.

      Sec. 18.  NRS 639.2801 is hereby amended to read as follows:

      639.2801  Unless specified to the contrary in writing on the prescription by the prescribing practitioner, all prescriptions filled by any practitioner must be dispensed in a container to which is affixed a label or other device which clearly shows:

      1.  The date.

      2.  The name, address and prescription serial number of the practitioner who filled the prescription.

      3.  The names of the prescribing practitioner and of the person for whom prescribed.

      4.  The number of dosage units.

      5.  Specific directions for use given by the prescribing practitioner.

      6.  The expiration date of the effectiveness of the drug or medicine dispensed, if that information is [required to be] included on the original label of the manufacturer of [the] that drug or medicine. [The practitioner shall not specify on the label or other device for the drug or medicine an expiration date that is earlier than] If the expiration date specified by the manufacturer [on the original label.] is not less than 1 year after the date of dispensing, the practitioner may use a date that is 1 year after the date of dispensing as the expiration date.

      7.  The proprietary or generic name of the drug or medicine as written by the prescribing practitioner.

      8.  The strength of the drug or medicine.

Ê The label must contain the warning:

 

      Caution: Do not use with alcohol or nonprescribed drugs without consulting the prescribing practitioner.

      Sec. 19.  A person who possesses a license to engage in the wholesale distribution of prescription drugs issued by the State Board of Pharmacy before October 1, 2005, must, as a condition to renewal of that license, file a bond or other security required by section 4 of this act.

 


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ê2005 Statutes of Nevada, Page 1620 (Chapter 406, SB 37)ê

 

before October 1, 2005, must, as a condition to renewal of that license, file a bond or other security required by section 4 of this act.

      Sec. 20.  1.  This section and sections 1 to 14, inclusive, and 16 to 19, inclusive, of this act become effective on October 1, 2005.

      2.  Section 14 of this act expires 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,

Ê are repealed by the Congress of the United States.

      3.  Section 15 of this act becomes 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

      (b) Are in arrears in the payment for the support of one or more children,

Ê are repealed by the Congress of the United States.

________

 

CHAPTER 407, SB 172

Senate Bill No. 172–Committee on Judiciary

 

CHAPTER 407

 

AN ACT relating to deeds of trust; revising provisions relating to the sale of real property under a deed of trust; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 107 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.

      Sec. 2.  A person who willfully removes or defaces a notice posted pursuant to subsection 4 of NRS 107.080, if done before the sale or, if the default is satisfied before the sale, before the satisfaction of the default, is liable in the amount of $500 to any person aggrieved by the removal or defacing of the notice.

      Sec. 3.  1.  All sales of property pursuant to NRS 107.080 must be made at auction to the highest bidder and must be made between the hours of 9 a.m. and 5 p.m. The agent holding the sale must not become a purchaser at the sale or be interested in any purchase at such a sale.

      2.  All sales of real property must be made:

      (a) In a county with a population of less than 100,000, at the courthouse in the county in which the property or some part thereof is situated.

 


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      (b) In a county with a population of 100,000 or more, at the public location in the county designated by the governing body of the county for that purpose.

      Sec. 4.  1.  If a sale of property pursuant to NRS 107.080 is postponed by oral proclamation, the sale must be postponed to a later date at the same time and location.

      2.  If such a sale has been postponed by oral proclamation three times, any new sale information must be provided by notice as provided in NRS 107.080.

      Sec. 5.  1.  If a purchaser refuses to pay the amount bid by him for the property struck off to him at a sale pursuant to NRS 107.080, the agent may again sell the property to the highest bidder, after again giving the notice previously provided.

      2.  If any loss is incurred from the purchaser refusing to pay his bid, the agent may recover the amount of the loss, with costs, for the benefit of the party aggrieved, by motion upon previous notice of 5 days to the purchaser, before any court of competent jurisdiction.

      3.  The court shall proceed in a summary manner in the hearing and disposition of such a motion, and give judgment and issue execution therefor forthwith, but the refusing purchaser may request a jury. The same proceedings may be had against any subsequent purchaser who refuses to pay, and the agent may, in his discretion, thereafter reject the bid of any person so refusing.

      4.  An agent is not liable for any amount other than the amount bid by the second or subsequent purchaser and the amount collected from the purchaser who refused to pay.

      Sec. 6.  NRS 107.030 is hereby amended to read as follows:

      107.030  Every deed of trust made after March 29, 1927, may adopt by reference all or any of the following covenants, agreements, obligations, rights and remedies:

      1.  Covenant No. 1. That grantor agrees to pay and discharge at maturity all taxes and assessments and all other charges and encumbrances which now are or shall hereafter be, or appear to be, a lien upon the trust premises, or any part thereof; and that he will pay all interest or installments due on any prior encumbrance, and that in default thereof, beneficiary may, without demand or notice, pay the same, and beneficiary shall be sole judge of the legality or validity of such taxes, assessments, charges or encumbrances, and the amount necessary to be paid in satisfaction or discharge thereof.

      2.  Covenant No. 2. That the grantor will at all times keep the buildings and improvements which are now or shall hereafter be erected upon the premises insured against loss or damage by fire, to the amount of at least $........, by some insurance company or companies approved by beneficiary, the policies for which insurance shall be made payable, in case of loss, to beneficiary, and shall be delivered to and held by the beneficiary as further security; and that in default thereof, beneficiary may procure such insurance, not exceeding the amount aforesaid, to be effected either upon the interest of trustee or upon the interest of grantor, or his assigns, and in their names, loss, if any, being made payable to beneficiary, and may pay and expend for premiums for such insurance such sums of money as the beneficiary may deem necessary.

 


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ê2005 Statutes of Nevada, Page 1622 (Chapter 407, SB 172)ê

 

      3.  Covenant No. 3. That if, during the existence of the trust, there be commenced or pending any suit or action affecting the conveyed premises, or any part thereof, or the title thereto, or if any adverse claim for or against the premises, or any part thereof, be made or asserted, the trustee or beneficiary may appear or intervene in the suit or action and retain counsel therein and defend same, or otherwise take such action therein as they may be advised, and may settle or compromise same or the adverse claim; and in that behalf and for any of the purposes may pay and expend such sums of money as the trustee or beneficiary may deem to be necessary.

      4.  Covenant No. 4. That the grantor will pay to trustee and to beneficiary respectively, on demand, the amounts of all sums of money which they shall respectively pay or expend pursuant to the provisions of the implied covenants of this section, or any of them, together with interest upon each of the amounts, until paid, from the time of payment thereof, at the rate of ................ percent per annum.

      5.  Covenant No. 5. That in case grantor shall well and truly perform the obligation or pay or cause to be paid at maturity the debt or promissory note, and all moneys agreed to be paid by him, and interest thereon for the security of which the transfer is made, and also the reasonable expenses of the trust in this section specified, then the trustee, its successors or assigns, shall reconvey to the grantor all the estate in the premises conveyed to the trustee by the grantor. Any part of the trust property may be reconveyed at the request of the beneficiary.

      6.  Covenant No. 6. That if default be made in the performance of the obligation, or in the payment of the debt, or interest thereon, or any part thereof, or in the payment of any of the other moneys agreed to be paid, or of any interest thereon, or if any of the conditions or covenants in this section adopted by reference be violated, and if the notice of breach and election to sell, required by this chapter, be first recorded, then trustee, its successors or assigns, on demand by beneficiary, or assigns, shall sell the above-granted premises, or such part thereof as in its discretion it shall find necessary to sell, in order to accomplish the objects of these trusts, in the manner following, namely:

      The trustees shall first give notice of the time and place of such sale, in the manner provided [by the laws of this State for the sale of real property under execution,] in NRS 107.080 and may [from time to time] postpone such sale [by such advertisement as it may deem reasonable, or without further advertisement,] not more than three times by proclamation made to the persons assembled at the time and place previously appointed and advertised for such sale, and on the day of sale so advertised, or to which such sale may have been postponed, the trustee may sell the property so advertised, or any portion thereof, at public auction, at the time and place specified in the notice, [either] at a public location in the county in which the property, or any part thereof, to be sold, is situated, [or at the principal office of the trustee, in its discretion,] to the highest cash bidder. The beneficiary, obligee, creditor, or the holder or holders of the promissory note or notes secured thereby may bid and purchase at such sale. The beneficiary may, after recording the notice of breach and election, waive or withdraw the same or any proceedings thereunder, and shall thereupon be restored to his former position and have and enjoy the same rights as though such notice had not been recorded.

 


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      7.  Covenant No. 7. That the trustee, upon such sale, shall make (without warranty), execute and, after due payment made, deliver to purchaser or purchasers, his or their heirs or assigns, a deed or deeds of the premises so sold which shall convey to the purchaser all the title of the grantor in the trust premises, and shall apply the proceeds of the sale thereof in payment, firstly, of the expenses of such sale, together with the reasonable expenses of the trust, including counsel fees, in an amount equal to ................ percent of the amount secured thereby and remaining unpaid, which shall become due upon any default made by grantor in any of the payments aforesaid; and also such sums, if any, as trustee or beneficiary shall have paid, for procuring a search of the title to the premises, or any part thereof, subsequent to the execution of the deed of trust; and in payment, secondly, of the obligation or debts secured, and interest thereon then remaining unpaid, and the amount of all other moneys with interest thereon herein agreed or provided to be paid by grantor; and the balance or surplus of such proceeds of sale it shall pay to grantor, his heirs, executors, administrators or assigns.

      8.  Covenant No. 8. That in the event of a sale of the premises conveyed or transferred in trust, or any part thereof, and the execution of a deed or deeds therefor under such trust, the recital therein of default, and of recording notice of breach and election of sale, and of the elapsing of the 3-month period, and of the giving of notice of sale, and of a demand by beneficiary, his heirs or assigns, that such sale should be made, shall be conclusive proof of such default, recording, election, elapsing of time, and of the due giving of such notice, and that the sale was regularly and validly made on due and proper demand by beneficiary, his heirs and assigns; and any such deed or deeds with such recitals therein shall be effectual and conclusive against grantor, his heirs and assigns, and all other persons; and the receipt for the purchase money recited or contained in any deed executed to the purchaser as aforesaid shall be sufficient discharge to such purchaser from all obligation to see to the proper application of the purchase money, according to the trusts aforesaid.

      9.  Covenant No. 9. That the beneficiary or his assigns may, from time to time, appoint another trustee, or trustees, to execute the trust created by the deed of trust or other conveyance in trust. A copy of a resolution of the board of directors of beneficiary (if beneficiary be a corporation), certified by the secretary thereof, under its corporate seal, or an instrument executed and acknowledged by the beneficiary (if the beneficiary be a natural person), shall be conclusive proof of the proper appointment of such substituted trustee. Upon the recording of such certified copy or executed and acknowledged instrument, the new trustee or trustees shall be vested with all the title, interest, powers, duties and trusts in the premises vested in or conferred upon the original trustee. If there be more than one trustee, either may act alone and execute the trusts upon the request of the beneficiary, and all his acts thereunder shall be deemed to be the acts of all trustees, and the recital in any conveyance executed by such sole trustee of such request shall be conclusive evidence thereof, and of the authority of such sole trustee to act.

      Sec. 7.  NRS 107.080 is hereby amended to read as follows:

      107.080  1.  Except as otherwise provided in NRS 107.085, if any transfer in trust of any estate in real property is made after March 29, 1927, to secure the performance of an obligation or the payment of any debt, a power of sale is hereby conferred upon the trustee to be exercised after a breach of the obligation for which the transfer is security.

 


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ê2005 Statutes of Nevada, Page 1624 (Chapter 407, SB 172)ê

 

power of sale is hereby conferred upon the trustee to be exercised after a breach of the obligation for which the transfer is security.

      2.  The power of sale must not be exercised, however, until:

      (a) In the case of any trust agreement coming into force:

             (1) On or after July 1, 1949, and before July 1, 1957, the grantor, or his successor in interest, a beneficiary under a subordinate deed of trust or any other person who has a subordinate lien or encumbrance of record on the property, has for a period of 15 days, computed as prescribed in subsection 3, failed to make good the deficiency in performance or payment; or

             (2) On or after July 1, 1957, the grantor, or his successor in interest, a beneficiary under a subordinate deed of trust or any other person who has a subordinate lien or encumbrance of record on the property, has for a period of 35 days, computed as prescribed in subsection 3, failed to make good the deficiency in performance or payment;

      (b) The beneficiary, the successor in interest of the beneficiary or the trustee first executes and causes to be recorded in the office of the recorder of the county wherein the trust property, or some part thereof, is situated a notice of the breach and of his election to sell or cause to be sold the property to satisfy the obligation; and

      (c) Not less than 3 months have elapsed after the recording of the notice.

      3.  The 15- or 35-day period provided in paragraph (a) of subsection 2 commences on the first day following the day upon which the notice of default and election to sell is recorded in the office of the county recorder of the county in which the property is located and a copy of the notice of default and election to sell is mailed by registered or certified mail, return receipt requested and with postage prepaid to the grantor, and to the person who holds the title of record on the date the notice of default and election to sell is recorded, at their respective addresses, if known, otherwise to the address of the trust property. The notice of default and election to sell must describe the deficiency in performance or payment and may contain a notice of intent to declare the entire unpaid balance due if acceleration is permitted by the obligation secured by the deed of trust, but acceleration must not occur if the deficiency in performance or payment is made good and any costs, fees and expenses incident to the preparation or recordation of the notice and incident to the making good of the deficiency in performance or payment are paid within the time specified in subsection 2.

      4.  The trustee, or other person authorized to make the sale under the terms of the trust deed or transfer in trust, shall, after expiration of the 3-month period following the recording of the notice of breach and election to sell, and before the making of the sale, give notice of the time and place thereof [in the manner and for a time not less than that required by law for the sale or sales of real property upon execution. The sale itself may be made at the office of the trustee, if the notice so provides, whether the property so conveyed in trust is located within the same county as the office of the trustee or not.] by recording the notice of sale and by:

      (a) Providing the notice to each trustor and any other person entitled to notice pursuant to this section by personal service or by mailing the notice by registered or certified mail to the last known address of the trustor and any other person entitled to such notice pursuant to this section;

      (b) Posting a similar notice particularly describing the property, for 20 days successively, in three public places of the township or city where the property is situated and where the property is to be sold; and

 


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ê2005 Statutes of Nevada, Page 1625 (Chapter 407, SB 172)ê

 

      (c) Publishing a copy of the notice three times, once each week for 3 consecutive weeks, in a newspaper of general circulation in the county where the property is situated.

      5.  Every sale made under the provisions of this section and other sections of this chapter vests in the purchaser the title of the grantor and his successors in interest without equity or right of redemption. A person who purchases property pursuant to this section is not a bona fide purchaser, and the sale may be declared void if the trustee or other person authorized to make the sale does not substantially comply with the provisions of this section. The sale of a lease of a dwelling unit of a cooperative housing corporation vests in the purchaser title to the shares in the corporation which accompany the lease.

________

 

CHAPTER 408, AB 427

Assembly Bill No. 427–Committee on Government Affairs

 

CHAPTER 408

 

AN ACT relating to housing; requiring each established place of business of a dealer, manufacturer, general serviceman or specialty serviceman to include name of the business and to conform to certain other requirements; authorizing the Administrator of the Manufactured Housing Division of the Department of Business and Industry to issue a cease and desist order against unlicensed persons who engage in acts requiring a license; providing for the imposition of certain remedies and penalties against such unlicensed persons; deleting the provisions that require a person to obtain a license before engaging in the business of a rebuilder, serviceman or installer of manufactured homes, mobile homes or commercial coaches; prohibiting a person from engaging or offering to engage in the business of a general serviceman or specialty serviceman without a license to engage in that business issued by the Division; subjecting a licensee to disciplinary action for failing to use certain forms for the sale and listing for sale of a manufactured home, mobile home or commercial coach; providing a penalty; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 489 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 8.5, inclusive, of this act.

      Sec. 2.  1.  “General serviceman” means a person who owns or is the responsible managing employee of a business which:

      (a) Installs or repairs the awnings, roofing, skirting, plumbing, heating or electrical systems of a manufactured home, mobile home or commercial coach;

      (b) Installs, removes or tears down a manufactured home, mobile home or commercial coach at the site where it will be or has been used for occupancy; or

 


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ê2005 Statutes of Nevada, Page 1626 (Chapter 408, AB 427)ê

 

      (c) Reconstructs a manufactured home, mobile home or commercial coach by the alteration, addition or substitution of substantial or essential parts.

      2.  The term does not include:

      (a) A licensed manufacturer engaged in the repair or service of a manufactured home, mobile home or commercial coach that was manufactured by the licensed manufacturer;

      (b) The owner or purchaser of a manufactured home or mobile home who uses the manufactured home or mobile home as his private residence; or

      (c) The owner or purchaser of a commercial coach who uses the commercial coach for his own industrial, professional or commercial purposes.

      Sec. 3.  1.  “Specialty serviceman” means a person who owns or is the responsible managing employee of a business which is limited in the scope of the work it may perform on or in a manufactured home, mobile home or commercial coach in accordance with NRS 489.325.

      2.  The term does not include:

      (a) A licensed manufacturer engaged in the repair or service of a manufactured home, mobile home or commercial coach that was manufactured by the licensed manufacturer;

      (b) The owner or purchaser of a manufactured home or mobile home who uses the manufactured home or mobile home as his private residence; or

      (c) The owner or purchaser of a commercial coach who uses the commercial coach for his own industrial, professional or commercial purposes.

      Sec. 4.  Each established place of business, including each branch office of that business, must display a sign that:

      1.  Includes the name under which business is conducted pursuant to a license issued pursuant to this chapter; and

      2.  Conforms to any regulations adopted by the Division relating to the size and placement of the sign.

      Sec. 5.  1.  A license issued pursuant to this chapter must not be used for any purpose by any person other than the person to whom the license is issued.

      2.  The holder of such a license shall not assign, transfer or otherwise authorize the use of the license by any other person.

      3.  In addition to any other remedy or penalty authorized pursuant to this chapter, if the holder of a license violates any provision of this section, the violation is cause for the automatic cancellation and revocation of the license.

      Sec. 6.  1.  The Administrator or his designee shall issue an order to cease and desist to any person or combination of persons who:

      (a) Engages in the business or acts in the capacity of a licensee within this State, including, without limitation, commencing any work for which a license is required pursuant to this chapter; or

      (b) Submits a bid or enters into a contract for a job located within this State for which a license is required pursuant to this chapter,

Ê without having a license issued pursuant to this chapter, unless that person or combination of persons is exempt from licensure pursuant to this chapter.

 


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chapter. The order must be served personally or by certified mail and is effective upon receipt.

      2.  If it appears that any person or combination of persons has engaged in acts or practices which constitute a violation of this chapter or the violation of an order issued pursuant to subsection 1, the Administrator may request the Attorney General, the district attorney of the county in which the alleged violation occurred or the district attorney of any other county in which that person or combination of persons maintains a place of business or resides, to apply on behalf of the Administrator to the district court for an injunction restraining the person or combination of persons from acting in violation of this chapter. Upon a proper showing, a temporary restraining order, a preliminary injunction or a permanent injunction may be granted. The Administrator, as plaintiff in the action, is not required to prove any irreparable injury.

      3.  In seeking injunctive relief against any person or combination of persons for an alleged violation of this chapter, it is sufficient to allege that the person or combination of persons, upon a certain day and in a certain county of this State:

      (a) Engaged in the business or acted in the capacity of a licensee within this State; or

      (b) Submitted a bid or entered into a contract for a job located within this State for which a license is required pursuant to this chapter,

Ê and the person or combination of persons did not have a license issued pursuant to this chapter and was not exempt from licensure pursuant to this chapter, without alleging any further or more particular facts concerning the matter.

      4.  The issuance of a restraining order or an injunction does not relieve the person or combination of persons against whom the restraining order or injunction is issued from criminal prosecution for practicing without a license.

      5.  If the court finds that any person or combination of persons has willfully violated an order issued pursuant to subsection 1, it shall impose a fine of not less than $250 nor more than $1,000 for each violation of the order.

      Sec. 7.  1.  It is unlawful for any person or combination of persons to:

      (a) Engage in the business or act in the capacity of a licensee within this State, including, without limitation, commencing any work for which a license is required pursuant to this chapter; or

      (b) Submit a bid or enter into a contract for a job located within this State for which a license is required pursuant to this chapter,

Ê without having a license issued pursuant to this chapter, unless that person or combination of persons is exempt from licensure pursuant to this chapter.

      2.  The district attorneys in this State shall prosecute all violations of this section which occur in their respective counties, unless the violations are prosecuted by the Attorney General. Upon the request of the Administrator, the Attorney General shall prosecute any violation of this section in lieu of prosecution by the district attorney.

      3.  In addition to any other remedy or penalty authorized pursuant to this chapter, any person or combination of persons convicted of violating any provision of subsection 1 may be required to pay:

 


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ê2005 Statutes of Nevada, Page 1628 (Chapter 408, AB 427)ê

 

      (a) Court costs and the costs of prosecution;

      (b) Reasonable costs of the investigation of the violation to the Division;

      (c) Damages the person or combination of persons caused as a result of the violation up to the amount of any pecuniary gain from the violation; or

      (d) Any combination of paragraphs (a), (b) and (c).

      4.  If any person or combination of persons submits a bid or enters into a contract in violation of subsection 1, the bid or contract shall be deemed void.

      Sec. 8.  1.  If any person or combination of persons violates the provisions of NRS 489.311 or subsection 1 of section 7 of this act, the Administrator may impose an administrative fine of not less than $1,000 nor more than $10,000 for each violation.

      2.  An administrative fine imposed pursuant to this section is in addition to any other remedy or penalty authorized pursuant to this chapter.

      3.  If the administrative fine is not paid when due, the fine must be recovered in a civil action brought by the Attorney General on behalf of the Administrator.

      Sec. 8.5.  1.  Except as otherwise provided in this section, all money collected from administrative fines imposed pursuant to this chapter must be deposited in the State General Fund.

      2.  The money collected from an administrative fine may be deposited with the State Treasurer for credit to the Fund for Manufactured Housing created pursuant to NRS 489.491 if:

      (a) The person pays the administrative fine without exercising his right to a hearing to contest the administrative fine; or

      (b) The administrative fine is imposed in a hearing conducted by a hearing officer or panel appointed by the Administrator.

      3.  The Administrator may appoint one or more hearing officers or panels and may delegate to those hearing officers or panels the power of the Administrator to conduct hearings and other proceedings, determine violations, impose fines and penalties and take other disciplinary action authorized by the provisions of this chapter.

      4.  If money collected from an administrative fine is deposited in the State General Fund, the Administrator may present a claim to the State Board of Examiners for recommendation to the Interim Finance Committee if money is needed to pay attorney’s fees or the costs of an investigation, or both.

      Sec. 9.  NRS 489.031 is hereby amended to read as follows:

      489.031  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 489.036 to 489.155, inclusive, and sections 2 and 3 of this act have the meanings ascribed to them in those sections.

      Sec. 10.  NRS 489.137 is hereby amended to read as follows:

      489.137  “Salesman” means any person employed by a dealer [or rebuilder,] under any form of contract or arrangement to sell, rent, lease, exchange or buy, or offer for sale, rental, lease or exchange, an interest in a manufactured home, mobile home or commercial coach to any person, and who receives or expects to receive a commission, fee or any other consideration from his employer.

 


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ê2005 Statutes of Nevada, Page 1629 (Chapter 408, AB 427)ê

 

      Sec. 11.  NRS 489.285 is hereby amended to read as follows:

      489.285  1.  The Division shall adopt regulations concerning continuing education requirements for [installers, rebuilders and] general servicemen and specialty servicemen of manufactured homes, mobile homes [,] or commercial coaches, and responsible managing employees and salesmen. The regulations must include the:

      (a) Criteria for determining what qualifies as continuing education;

      (b) Criteria for approving educational and training programs;

      (c) Requirements for submitting evidence of completion; and

      (d) Grounds and procedures for granting an extension of time within which to comply with continuing education requirements.

      2.  In adopting regulations pursuant to subsection 1, the Division shall:

      (a) Allow for alternative subjects, instructors, schools and sources of programs, with consideration for specialized areas of practice, availability and proximity of resources to the licensees and applicants, and the time and expense required to participate in the programs.

      (b) Approve courses offered by generally accredited educational institutions and private vocational schools if those courses otherwise qualify as continuing education.

      (c) Approve training and educational programs and seminars offered by:

             (1) Individual sponsors;

             (2) Manufactured housing firms and businesses such as dealers, [installers, rebuilders,] general servicemen, specialty servicemen, manufacturers of manufactured homes , mobile homes or commercial coaches, and suppliers of the various components for constructing such homes [,] or coaches, including heating and air-conditioning systems, material for roofing and siding, skirting, awnings and other components;

             (3) Professional and industry-related organizations; and

             (4) Other organized educational programs concerning technical or specialized subjects, including in-house training programs offered by an employer for his employees and participation in meetings and conferences of industry-related organizations.

      (d) Solicit advice and assistance from persons and organizations that are knowledgeable in the construction, sale, installation, rebuilding and servicing of manufactured homes , mobile homes or commercial coaches and the method of educating licensees.

      3.  The Division is not responsible for the costs of any continuing education program, but may participate in the funding of those programs subject to legislative appropriations.

      4.  As used in this section, “industry-related organizations” includes, without limitation, the:

      (a) [National Manufactured Housing Federation;

      (b)] Manufactured Housing Institute;

      [(c) Nevada Mobilehome Park]

      (b) Manufactured Home Community Owners Association;

      [(d)] (c) Nevada Association of Manufactured [Homeowners;

      (e)] Home Owners, Inc.;

      (d) Nevada Association of Realtors; and

      [(f)] (e) Any other organization approved by the Division.

      Sec. 12.  NRS 489.305 is hereby amended to read as follows:

      489.305  To open a branch office, a dealer, [installer, rebuilder] or general serviceman or specialty serviceman, as the case may be, must:

 


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      1.  Obtain a license from the Division to operate the branch office; and

      2.  Provide for direct supervision of the branch office, either by himself or by employing a responsible managing employee.

      Sec. 13.  NRS 489.311 is hereby amended to read as follows:

      489.311  Except as otherwise provided by NRS 489.331, no person may engage or offer to engage in the business of a dealer, manufacturer, [rebuilder,] general serviceman or [installer] specialty serviceman in this State, or be entitled to any other license or permit required by this chapter, until he has applied for and has been issued a license by the Division.

      Sec. 14.  NRS 489.321 is hereby amended to read as follows:

      489.321  1.  An application for a manufacturer’s, dealer’s, [rebuilder’s,] general serviceman’s or [installer’s] specialty serviceman’s license must be filed upon forms supplied by the Division and include the social security number of the applicant. The applicant must furnish:

      (a) Any proof the Division may deem necessary that the applicant is a manufacturer, dealer, [rebuilder,] general serviceman or [installer.] specialty serviceman.

      (b) Any proof the Division may require that the applicant has an established place of business.

      (c) Any proof the Division may require of the applicant’s good character and reputation and of his fitness to engage in the activities for which the license is sought.

      (d) A complete set of his fingerprints and written permission authorizing the Administrator to forward those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report. The Administrator may exchange with the Central Repository and the Federal Bureau of Investigation any information relating to the fingerprints of an applicant under this section.

      (e) In the case of a dealer in new manufactured homes, an instrument in the form prescribed by the Division executed by or on behalf of the manufacturer certifying that the applicant is an authorized franchise dealer for the make or makes concerned.

      (f) A reasonable fee fixed by regulation.

      (g) In the case of a dealer, [rebuilder,] general serviceman or [installer,] specialty serviceman, proof of passing the examination required under NRS 489.351.

      (h) Any additional requirements the Division may from time to time prescribe by regulation.

      2.  Within 60 days after the receipt of a complete application, the Division shall issue or deny the license.

      3.  The Administrator may issue a provisional license pending receipt of the report from the Federal Bureau of Investigation. Upon receipt of the report and a determination by the Administrator that the applicant is qualified, the Division shall issue to the applicant a dealer’s, manufacturer’s, [installer’s, rebuilder’s] general serviceman’s or specialty serviceman’s license containing the applicant’s name and the address of his fixed place of business.

      4.  Each license is valid for a period of 2 years [from] after the date of issuance and may be renewed for like consecutive periods upon application to and approval by the Division.

 


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      Sec. 15.  NRS 489.321 is hereby amended to read as follows:

      489.321  1.  Applications for a manufacturer’s, dealer’s, [rebuilder’s,] general serviceman’s or [installer’s] specialty serviceman’s license must be filed upon forms supplied by the Division, and the applicant shall furnish:

      (a) Any proof the Division may deem necessary that the applicant is a manufacturer, dealer, [rebuilder,] general serviceman or [installer.] specialty serviceman.

      (b) Any proof the Division may require that the applicant has an established place of business.

      (c) Any proof the Division may require of the applicant’s good character and reputation and of his fitness to engage in the activities for which the license is sought.

      (d) A complete set of his fingerprints and written permission authorizing the Administrator to forward those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report. The Administrator may exchange with the Central Repository and the Federal Bureau of Investigation any information respecting the fingerprints of an applicant under this section.

      (e) In the case of a dealer in new manufactured homes, an instrument in the form prescribed by the Division executed by or on behalf of the manufacturer certifying that the applicant is an authorized franchise dealer for the make or makes concerned.

      (f) A reasonable fee fixed by regulation.

      (g) In the case of a dealer, [rebuilder,] general serviceman or [installer] specialty serviceman, proof of passing the examination required under NRS 489.351.

      (h) Any additional requirements the Division may from time to time prescribe by regulation.

      2.  Within 60 days after receipt of a complete application, the Division shall issue or deny the license.

      3.  The Administrator may issue a provisional license pending receipt of the report from the Federal Bureau of Investigation. Upon receipt of the report and a determination by the Administrator that the applicant is qualified, the Division shall issue to the applicant a dealer’s, manufacturer’s, [installer’s, rebuilder’s] general serviceman’s or specialty serviceman’s license certificate containing the applicant’s name and the address of his fixed place of business.

      4.  Each license is valid for a period of 2 years [from] after the date of issuance and may be renewed for like consecutive periods upon application to and approval by the Division.

      Sec. 16.  NRS 489.323 is hereby amended to read as follows:

      489.323  If a licensee is [an installer, rebuilder] a general serviceman or specialty serviceman of manufactured homes, mobile homes [,] or commercial coaches, or a responsible managing employee or salesman, the Division shall not renew a license issued to that licensee until the licensee has submitted proof satisfactory to the Division that he has, during the 2-year period immediately preceding the renewal of the license, completed at least 8 hours of continuing education approved by the Division pursuant to NRS 489.285.

      Sec. 17.  NRS 489.325 is hereby amended to read as follows:

      489.325  1.  The Administrator may adopt regulations which provide for the [creation of a subclass of licensure for] licensing of specialty servicemen.

 


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servicemen. A person licensed as a [limited] specialty serviceman pursuant to this section must be limited in the scope of the work he may perform to installation or repair in one of the following categories:

      (a) Awnings, roofing or skirting;

      (b) Plumbing;

      (c) Heating and air-conditioning systems;

      (d) Electrical systems; or

      (e) Any other category that may be similarly licensed by the State Contractors’ Board.

      2.  The Administrator shall provide in those regulations for:

      (a) The imposition of reasonable fees for application, examination and licensure.

      (b) The creation and administration of a written or oral examination for each category of limited licensure.

      (c) Minimum qualifications for such a license, including, without limitation, the passage of the applicable examination.

      3.  A person who is licensed as a [limited] specialty serviceman shall comply with each statute and regulation which applies to general servicemen, including, without limitation, the payment of a fee required pursuant to subparagraph 1 of paragraph (c) of subsection 2 of NRS 489.4971.

      Sec. 18.  NRS 489.341 is hereby amended to read as follows:

      489.341  1.  A person shall not act as a salesman in this State or as a responsible managing employee for a person who sells, leases, reconstructs, improves, repairs or installs any manufactured home, mobile home or commercial coach subject to the provisions of this chapter without first having received a license from the Division. Before issuing such a license, the Division shall require:

      (a) An application, signed and verified by the applicant, stating that he desires to act as a salesman or responsible managing employee and providing his residential address, his social security number and the name and address of his employer.

      (b) Proof of the employment of the applicant at the time the application is filed. An applicant for a license as a responsible managing employee shall submit proof of 2 years’ experience within the previous 4 years in the business in which the applicant is seeking to be licensed as a responsible managing employee.

      (c) Proof of the applicant’s good character and reputation and of his fitness to act as a salesman or responsible managing employee.

      (d) A complete set of his fingerprints and written permission authorizing the Administrator to forward those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report. The Administrator may exchange with the Central Repository and the Federal Bureau of Investigation any information relating to the fingerprints of an applicant.

      (e) A statement as to whether any previous application of the applicant has been denied or license revoked.

      (f) Payment of a reasonable license fee established by regulation.

      (g) The applicant to have passed the examination required by NRS 489.351.

      (h) Any other information the Division deems necessary.

 


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      2.  Within 60 days after the receipt of a complete application, the Division shall issue or deny the license.

      3.  The Administrator may issue a provisional license pending receipt of the report from the Federal Bureau of Investigation. Upon receipt of the report and a determination by the Administrator that the applicant is qualified, the Administrator shall issue to the applicant a license as a salesman or a responsible managing employee. The license must contain the licensee’s name and the address of his employer’s place of business.

      4.  Each license is valid for 2 years [from] after the date of issuance and may be renewed for like consecutive periods upon application to and approval by the Division.

      5.  A person licensed pursuant to this section shall not engage in sales activity other than for the account of, or for and in behalf of, a single employer who is a licensed dealer . [, rebuilder, serviceman or installer.]

      6.  A license issued pursuant to this section may be transferred to another licensed employer upon application and the payment of a transfer fee of $10. When a salesman or responsible managing employee holding a current license leaves the employment of one dealer, [rebuilder,] general serviceman or [installer] specialty serviceman for that of another, the new employer may employ the salesman or responsible managing employee pending the transfer of the license if the transfer is completed within 10 days.

      7.  A license issued pursuant to this section must be posted in a conspicuous place on the premises of the employer for whom the holder of the license is licensed.

      8.  If a salesman or responsible managing employee ceases to be employed by a licensed dealer, [rebuilder,] general serviceman or [installer,] specialty serviceman, his license to act as a salesman or responsible managing employee is automatically suspended and his right to act in that capacity immediately ceases, and he shall not engage in such an activity until reemployed by a licensed dealer, [rebuilder,] general serviceman or [installer.] specialty serviceman. Every licensed salesman and responsible managing employee shall report in writing to the Division every change in his place of employment or termination of employment within 5 days after the date of making the change.

      Sec. 19.  NRS 489.341 is hereby amended to read as follows:

      489.341  1.  A person shall not act as a salesman in this State or as a responsible managing employee for a person who sells, leases, reconstructs, improves, repairs or installs any manufactured home, mobile home or commercial coach subject to the provisions of this chapter without first having received a license from the Division. Before issuing such a license, the Division shall require:

      (a) An application, signed and verified by the applicant, stating that he desires to act as a salesman or responsible managing employee and providing his residential address and the name and address of his employer.

      (b) Proof of the employment of the applicant at the time the application is filed. An applicant for a license as a responsible managing employee shall submit proof of 2 years’ experience within the previous 4 years in the business in which the applicant is seeking to be licensed as a responsible managing employee.

      (c) Proof of the applicant’s good character and reputation and of his fitness to act as a salesman or responsible managing employee.

 


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      (d) A complete set of his fingerprints and written permission authorizing the Administrator to forward those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report. The Administrator may exchange with the Central Repository and the Federal Bureau of Investigation any information respecting the fingerprints of an applicant.

      (e) A statement as to whether any previous application of the applicant has been denied or license revoked.

      (f) Payment of a reasonable license fee established by regulation.

      (g) The applicant to have passed the examination required by NRS 489.351.

      (h) Any other information the Division deems necessary.

      2.  Within 60 days after receipt of a complete application, the Division shall issue or deny the license.

      3.  The Administrator may issue a provisional license pending receipt of the report from the Federal Bureau of Investigation. Upon receipt of the report and a determination by the Administrator that the applicant is qualified, the Administrator shall issue to the applicant a license as a salesman or a responsible managing employee. The license must contain the licensee’s name and the address of his employer’s place of business.

      4.  Each license is valid for 2 years [from] after the date of issuance and may be renewed for like consecutive periods upon application to and approval by the Division.

      5.  A person licensed pursuant to this section shall not engage in sales activity other than for the account of or for and in behalf of a single employer who is a licensed dealer . [, rebuilder, serviceman or installer.]

      6.  A license issued pursuant to this section may be transferred to another licensed employer upon application and the payment of a transfer fee of $10. When a salesman or responsible managing employee holding a current license leaves the employment of one dealer, [rebuilder,] general serviceman or [installer] specialty serviceman for that of another, the new employer may employ the salesman or responsible managing employee pending the transfer of the license if the transfer is completed within 10 days.

      7.  A license issued pursuant to this section must be posted in a conspicuous place on the premises of the employer for whom the holder of the license is licensed.

      8.  If a salesman or responsible managing employee ceases to be employed by a licensed dealer, [rebuilder,] general serviceman or [installer,] specialty serviceman, his license to act as a salesman or responsible managing employee is automatically suspended and his right to act in that capacity immediately ceases, and he shall not engage in such an activity until reemployed by a licensed dealer, [rebuilder,] general serviceman or [installer.] specialty serviceman. Every licensed salesman and responsible managing employee shall report in writing to the Division every change in his place of employment or termination of employment within 5 days [of] after the date of making the change.

      Sec. 20.  NRS 489.342 is hereby amended to read as follows:

      489.342  1.  A natural person who applies for the issuance or renewal of a manufacturer’s, dealer’s, [rebuilder’s, serviceman’s, installer’s,] general serviceman’s, specialty serviceman’s, salesman’s or managing employee’s license shall submit to the Division the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520.

 


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Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      2.  The Division shall include the statement required pursuant to subsection 1 in:

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

      (b) A separate form prescribed by the Division.

      3.  A manufacturer’s, dealer’s, [rebuilder’s, serviceman’s, installer’s,] general serviceman’s, specialty serviceman’s, salesman’s or managing employee’s license may not be issued or renewed by the Division 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 Division shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      Sec. 21.  NRS 489.343 is hereby amended to read as follows:

      489.343  1.  Every partnership doing business as a manufacturer, dealer, [rebuilder,] general serviceman or [installer] specialty serviceman in this State shall designate one of its members, and every corporation doing business as a manufacturer, dealer, [rebuilder,] general serviceman or [installer] specialty serviceman in this State shall designate one of its officers, to submit an application for a manufacturer’s, dealer’s, [rebuilder’s,] general serviceman’s or [installer’s] specialty serviceman’s license.

      2.  The Division shall issue a manufacturer’s, dealer’s, [rebuilder’s,] general serviceman’s or [installer’s] specialty serviceman’s license to the member or officer on behalf of the corporation or partnership, upon:

      (a) The designated member or officer, in the case of a dealer, [rebuilder,] general serviceman or [installer,] specialty serviceman, successfully passing the examination requirement pursuant to NRS 489.351; and

      (b) Compliance with all other requirements of law or any other additional requirements the Division may from time to time prescribe by regulation by the partnership or corporation, as well as by the designated member or officer.

      3.  Upon receipt of the license , the designated member or officer is entitled to perform all the acts authorized by a license issued by the Division, except:

      (a) That the license issued entitles the designated member or officer to act pursuant to the terms and conditions of the license issued by the Division only as officer or agent of the partnership or corporation, and not on his own behalf; and

      (b) That if the person designated by the partnership or corporation:

             (1) Is refused a license by the Division; or

             (2) Ceases to be connected with the partnership or corporation, ( the partnership or corporation may designate another person who shall make application and qualify as in the first instance.

 

 


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Ê the partnership or corporation may designate another person who shall make application and qualify as in the first instance.

      Sec. 22.  NRS 489.344 is hereby amended to read as follows:

      489.344  Each member or officer of a partnership or corporation who will perform or engage in any of the acts specified in NRS 489.076 [, 489.105, 489.115 or 489.135,] or 489.115, or section 2 or 3 of this act, other than the member or officer designated for [such] that purpose by the partnership or corporation in the manner provided in NRS 489.343, [shall make application] must apply for and take out a separate manufacturer’s, dealer’s, [rebuilder’s,] general serviceman’s or [installer’s] specialty serviceman’s license in his own name. The license issued to any such member or officer of a partnership or corporation entitles the member or officer to act as a manufacturer, dealer, [rebuilder,] general serviceman or [installer] specialty serviceman only as an officer or agent of the partnership or corporation and not on his own behalf.

      Sec. 23.  NRS 489.351 is hereby amended to read as follows:

      489.351  The Administrator shall require an oral or written examination of each applicant for a license as a dealer, responsible managing employee, [installer, rebuilder,] salesman , general serviceman or specialty serviceman.

      Sec. 24.  NRS 489.391 is hereby amended to read as follows:

      489.391  The following grounds, among others, constitute grounds for disciplinary action under NRS 489.381:

      1.  Except for a salesman, failure of the applicant to have an established place of business or conducting business from a location that is not authorized by the Division.

      2.  Financial insolvency of the applicant or licensee.

      3.  Material misstatement in the application or otherwise furnishing false information to the Division.

      4.  Failure of a salesman or applicant for licensing as a salesman to establish by proof satisfactory to the Division that he is employed by a licensed dealer . [or rebuilder.]

      5.  Failure of an applicant for a license to provide proof satisfactory to the Division of his good character and reputation and of his fitness to engage in the activities for which the license is sought.

      6.  Any conduct before licensing which was in fact unknown to the Division and would have been grounds for denial of a license had the Division been aware of the conduct.

      7.  Obtaining or disclosing the contents of an examination given by the Division.

      Sec. 25.  NRS 489.401 is hereby amended to read as follows:

      489.401  The following grounds, among others, constitute grounds for disciplinary action pursuant to NRS 489.381:

      1.  The intentional publication, circulation or display of any advertising which constitutes a deceptive trade practice as that term is defined in NRS 598.0915 to 598.0925, inclusive.

      2.  Failure to include in any advertising the name of the licensed dealer, [rebuilder,] general serviceman or [installer, or] specialty serviceman, or the name under which he is doing business.

      3.  Making any substantial misrepresentation or false promise which is likely to influence, persuade or induce, or continually failing to fulfill promises to sell, breaching agreements or contracts or making false promises by any means.

 


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      4.  Failure to disclose all terms and conditions of a sale, purchase or lease or offer to sell, purchase or lease a manufactured home, mobile home or commercial coach.

      5.  Failure to disclose to a person with whom the licensed dealer is dealing with regard to the sale, purchase or lease of a manufactured home any material facts, structural defects or other material information which the licensed dealer knew, or which by the exercise of reasonable care and diligence should have known, concerning the manufactured home or concerning the sale, purchase or lease of the manufactured home.

      6.  Failure to comply with the provisions of NRS 489.595.

      7.  Representing to any lender, guaranteeing agency or other interested party, orally or through the preparation of false documents:

      (a) An amount in excess of the actual sales price;

      (b) A false amount as the down payment, earnest money deposit or other valuable consideration;

      (c) Terms differing from those actually agreed upon; or

      (d) False information on a credit application.

      8.  Inducing an applicant to falsify his credit application.

      9.  Failure to obtain from the holder of any lien or security interest in a manufactured home, mobile home or commercial coach, within 10 days before the closure of a sale of the manufactured home, mobile home or commercial coach, a written acknowledgment that the holder of the lien or security interest has received written notification of the sale.

      Sec. 26.  NRS 489.423 is hereby amended to read as follows:

      489.423  1.  Upon a finding that a licensed dealer knew, or by the exercise of reasonable care and diligence should have known, of any unlawful act or violation of a provision of this chapter by a salesman, [rebuilder, installer] general serviceman or specialty serviceman who is employed by or associated with the licensed dealer, the [Division] Administrator may suspend or revoke the license of the licensed dealer and impose [a] an administrative fine upon him of not more than $1,000.

      2.  Upon a finding that a licensed dealer failed to maintain adequate supervision of a salesman, [rebuilder, installer] general serviceman or specialty serviceman who, while employed by or associated with the licensed dealer, committed any unlawful act or violated a provision of this chapter, the [Division] Administrator may suspend or revoke the license of a licensed dealer and impose [a] an administrative fine upon him of not more than $1,000.

      Sec. 27.  NRS 489.425 is hereby amended to read as follows:

      489.425  1.  If the Division receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a manufacturer’s, dealer’s, [rebuilder’s, serviceman’s, installer’s,] general serviceman’s, specialty serviceman’s, salesman’s or managing employee’s license, the Division 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 Division 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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      2.  The Division shall reinstate a manufacturer’s, dealer’s, [rebuilder’s, serviceman’s, installer’s,] general serviceman’s, specialty serviceman’s, salesman’s or managing employee’s license that has been suspended by a district court pursuant to NRS 425.540 if the Division receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the 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. 28.  NRS 489.481 is hereby amended to read as follows:

      489.481  The Division shall adopt regulations providing fees for:

      1.  Certificates of installation;

      2.  Labels of installation;

      3.  Certificates of compliance;

      4.  Labels of compliance;

      5.  Certificates of ownership;

      6.  Licenses of manufacturers, dealers, salesmen, responsible managing employees, general servicemen [, rebuilders and installers;] and specialty servicemen;

      7.  Licenses for branch offices; and

      8.  Any other services provided by the Division.

      Sec. 29.  NRS 489.4971 is hereby amended to read as follows:

      489.4971  1.  The Account for Education and Recovery Relating to Manufactured Housing is hereby created within the Fund for Manufactured Housing to satisfy the claims of purchasers of manufactured homes, mobile homes or commercial coaches against persons licensed pursuant to the provisions of this chapter. Any balance in the Account over $500,000 at the end of any fiscal year must be set aside and used by the Administrator for education relating to manufactured homes, mobile homes, travel trailers or commercial coaches.

      2.  Upon the issuance or renewal of the following licenses by the Division, the licensee must pay , in addition to the original or renewal license fee, a fee:

      (a) For a dealer’s or manufacturer’s original license, or [an] for any original limited dealer’s license , [issued pursuant to NRS 489.281,] of $1,000.

      (b) For a dealer’s or manufacturer’s renewal license, or a renewal of any limited dealer’s license , [issued pursuant to NRS 489.281,] of $600.

      (c) For an original or renewal license for:

             (1) A general serviceman [, rebuilder or installer,] or specialty serviceman, of $150.

             (2) A salesman, of $75.

             (3) A responsible managing employee, of $100.

Ê Except as otherwise provided in NRS 489.265, fees collected pursuant to this section must be deposited in the State Treasury for credit to the Account.

      3.  A payment from the Account to satisfy the claim of a purchaser specified in subsection 1 against a person who is licensed pursuant to this chapter must be made only upon an appropriate court order that is issued in an action for fraud, misrepresentation or deceit relating to an act for which a license is required pursuant to this chapter.

      4.  If a purchaser specified in subsection 1 commences an action specified in subsection 3 against a person who is licensed pursuant to this chapter, the purchaser must serve a copy of the complaint upon the Administrator within 30 days after the action is commenced.

 


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chapter, the purchaser must serve a copy of the complaint upon the Administrator within 30 days after the action is commenced.

      Sec. 30.  NRS 489.511 is hereby amended to read as follows:

      489.511  1.  If a used or rebuilt manufactured home, mobile home or commercial coach is sold in this State by a dealer , [or rebuilder,] the dealer [or rebuilder] shall complete a dealer’s [or rebuilder’s] report of sale. The report must be in a form prescribed by the Division and include a description of the manufactured home, mobile home or commercial coach, the name and address of the seller and the name and address of the buyer. If a security interest exists at the time of the sale, or if in connection with the sale a security interest is taken or retained by the seller [, dealer or rebuilder] or dealer to secure all or part of the purchase price, or a security interest is taken by a person who gives value to enable the buyer to acquire rights in the manufactured home, mobile home or commercial coach, the name and address of the secured party must be entered on the dealer’s [or rebuilder’s] report of sale.

      2.  The dealer [or rebuilder] shall submit the original of the dealer’s [or rebuilder’s] report of sale to the Division within 45 days after the execution of all instruments which the contract of sale requires to be executed at the time of the sale, unless an extension of time is granted by the Division, together with the endorsed certificate of title or certificate of ownership previously issued. The dealer [or rebuilder] shall furnish one copy of the report of sale to the buyer at the time of the sale. Within 45 days after the sale, the dealer [or rebuilder] shall furnish one copy of the report of sale to the assessor of the county in which the manufactured home, mobile home or commercial coach will be located.

      3.  The dealer [or rebuilder] shall require the buyer to sign an acknowledgment of taxes, on a form prescribed by the Division, which includes a statement that the manufactured home, mobile home or commercial coach is taxable in the county in which it is located. The dealer shall deliver the buyer’s copy of the acknowledgment to him at the time of sale and submit another copy to the county assessor of the county in which the manufactured home, mobile home or commercial coach is to be located.

      4.  If a used or rebuilt manufactured home, mobile home or commercial coach is sold by a dealer [or rebuilder] pursuant to an installment contract or other agreement by which the certificate of title or certificate of ownership does not pass immediately from the seller to the buyer upon the sale, the dealer [or rebuilder] shall submit to the Division any information required by the regulations adopted by the Administrator pursuant to NRS 489.272.

      Sec. 31.  NRS 489.521 is hereby amended to read as follows:

      489.521  1.  If a used or rebuilt manufactured home, mobile home or commercial coach is sold in this State by a person who is not a dealer , [or rebuilder,] the seller or buyer , or both , [of them] shall submit to the Division, and a copy to the county assessor of the county in which the manufactured home, mobile home or commercial coach is located, within 45 days after the sale:

      (a) If a certificate of ownership has been issued in this State, that certificate properly endorsed.

      (b) If a certificate of title or other document of title has been issued by a public authority of another state, territory or country:

             (1) The certificate or document properly endorsed; and

 


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             (2) A statement showing, if not included on the endorsed certificate or document, the description of the manufactured home, mobile home or commercial coach, the names and addresses of the buyer and seller, and the name and address of any person who takes or retains a purchase money security interest. The statement must be signed and acknowledged by the seller and buyer.

      (c) If a document of title has not been issued by any public authority, a statement showing all the information and signed and acknowledged in the manner required by subparagraph (2) of paragraph (b) of subsection 1.

      2.  If a used or rebuilt manufactured home, mobile home or commercial coach is sold by a person who is not a dealer [or rebuilder] pursuant to an installment contract or other agreement by which the certificate of title or certificate of ownership does not pass immediately from the seller to the buyer upon the sale, the seller or buyer, or both, shall submit to the Division any information required by the regulations adopted by the Administrator pursuant to NRS 489.272.

      Sec. 32.  NRS 489.601 is hereby amended to read as follows:

      489.601  1.  Except as otherwise provided in NRS 489.611, any manufacturer [, dealer or rebuilder] or dealer having an established place of business in this State, and owning or controlling any new or used manufactured home, mobile home or commercial coach, may move the manufactured home, mobile home or commercial coach for the purposes of display, maintenance, sale or exchange if there is displayed on it a special plate issued to the manufacturer [, dealer or rebuilder] or dealer as provided by this section.

      2.  Upon issuance of a manufacturer’s [, dealer’s or rebuilder’s] or dealer’s license pursuant to this chapter, the Division shall furnish to the licensee one or more special plates for use on manufactured homes, mobile homes and commercial coaches pursuant to subsection 1. Each plate must have displayed upon it the identification number which is assigned to the manufacturer [, dealer or rebuilder] or dealer and may, at the discretion of the Division, have a different letter or symbol on each plate. The plates may be used interchangeably on the manufactured homes, mobile homes or commercial coaches.

      3.  The Division shall, by regulation, determine the number of plates to which each manufacturer [, dealer or rebuilder] or dealer is entitled.

      4.  The Department shall supply the Division with the special plates.

      5.  There must be paid to the Division a fee of $12 at the time application for a special plate is made, and by the Division to the Department, a fee of $5.50 for each special plate.

      Sec. 33.  NRS 489.7152 is hereby amended to read as follows:

      489.7152  The Administrator shall prescribe [, by regulation,] the form of the [contract] contracts that must be used for the sale and listing for sale of a manufactured home, mobile home or commercial coach. A licensee who fails to use the forms prescribed by the Administrator pursuant to this section is subject to disciplinary action pursuant to NRS 489.381.

      Sec. 34.  NRS 489.731 is hereby amended to read as follows:

      489.731  Unless further restricted by a local ordinance, if more than 80 percent of the lots in the park where it is situated are occupied, it is unlawful for a dealer, [an installer or a] general serviceman, specialty serviceman or salesman to rent or lease a vacant mobile home lot unless:

 


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      1.  Within 60 days he takes up residence in a manufactured home or mobile home placed upon the lot; or

      2.  He releases the lot to a qualified tenant.

Ê After the expiration of 60 days [from] after the date of rental of the lot to the dealer, [installer] general serviceman, specialty serviceman or salesman, any qualified tenant is entitled, upon written request to the landlord, to obtain release of the lot.

      Sec. 35.  NRS 489.780 is hereby amended to read as follows:

      489.780  The failure of a licensed dealer [, rebuilder] or salesman to make the disclosure required pursuant to NRS 489.776 constitutes grounds for disciplinary action pursuant to NRS 489.381.

      Sec. 36.  NRS 489.811 is hereby amended to read as follows:

      489.811  1.  Except as otherwise provided in subsection 5, any person who violates any of the provisions of this chapter is liable to the State for a civil penalty of not more than $1,000 for each violation. Each violation of this chapter or any regulation or order issued under it constitutes a separate violation with respect to each manufactured home, mobile home or commercial coach and with respect to each failure or refusal to allow or perform an act required by this chapter or regulation or order, except that the maximum civil penalty is $1,000,000 for any related series of violations occurring within 1 year after the first violation.

      2.  Before the adoption of any regulation for whose violation a civil penalty may be imposed, the Administrator shall give at least 30 days’ written notice to every licensed manufacturer, dealer, [rebuilder, installer and] general serviceman and specialty serviceman, and every other interested party who has requested the notice.

      3.  An action to enforce a civil penalty must be brought in a court of competent jurisdiction in the county in which the defendant has his principal place of business.

      4.  All money collected as civil penalties pursuant to the provisions of this chapter must be deposited in the State General Fund.

      5.  This section does not apply to a manufacturer [, dealer or rebuilder] or dealer of travel trailers.

      Sec. 37.  NRS 118B.067 is hereby amended to read as follows:

      118B.067  1.  If a landlord approves the placement of a manufactured home on a lot in a park and it is determined after the home is placed on the lot that the placement of the home does not comply with the requirements of the local ordinances relating to that placement, the landlord shall pay the cost to ensure compliance with those requirements.

      2.  A landlord shall notify any tenant who is bringing a manufactured home which is new to the manufactured home park into the manufactured home park that the provisions of NRS 489.311 require that only persons licensed by the State of Nevada as [manufactured home installers] general servicemen are legally permitted to set up and install a manufactured home. Before the tenant may bring such a manufactured home into the manufactured home park, the tenant must provide to the landlord a copy of the license issued pursuant to NRS 489.311 to the person who will be installing the manufactured home.

      Sec. 38.  NRS 489.105, 489.135 and 489.145 are hereby repealed.

      Sec. 39.  1.  Every person in this State who, on October 1, 2005, holds a license as an installer, rebuilder or serviceman of a manufactured home, mobile home or commercial coach shall be deemed to have been issued a temporary license as a general serviceman or specialty serviceman of a manufactured home, mobile home or commercial coach, as appropriate.

 


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ê2005 Statutes of Nevada, Page 1642 (Chapter 408, AB 427)ê

 

temporary license as a general serviceman or specialty serviceman of a manufactured home, mobile home or commercial coach, as appropriate.

      2.  A temporary license specified in subsection 1 expires on:

      (a) The next regularly scheduled date for renewal of the original license of the person or July 1, 2007, whichever is earlier if, by that date, the person has not applied for and received a license as a general serviceman or specialty serviceman of a manufactured home, mobile home or commercial coach, as appropriate; or

      (b) The date the Manufactured Housing Division of the Department of Business and Industry grants or denies the person’s application for a license as a general serviceman or specialty serviceman of a manufactured home, mobile home or commercial coach, as appropriate,

Ê whichever occurs first.

      Sec. 40.  1.  This section and sections 1 to 14, inclusive, 16, 17, 18 and 20 to 39, inclusive, of this act become effective on October 1, 2005.

      2.  Sections 14, 18, 20 and 27 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,

Ê are repealed by the Congress of the United States.

      3.  Sections 15 and 19 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

      (b) Are in arrears in the payment for the support of one or more children,

Ê are repealed by the Congress of the United States.

________

 

CHAPTER 409, AB 340

Assembly Bill No. 340–Assemblymen Giunchigliani, Leslie, Parks, Ohrenschall, Anderson, Buckley, Claborn, Denis, Koivisto, McClain, McCleary and Perkins

 

CHAPTER 409

 

AN ACT relating to financial transactions; establishing certain requirements and prohibitions relating to refund anticipation loans; providing remedies and penalties; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

 


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ê2005 Statutes of Nevada, Page 1643 (Chapter 409, AB 340)ê

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Title 52 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 18, 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 13, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 3.  “Customer” means a person who, in connection with the preparation or filing of a tax return, applies for a refund anticipation loan or receives the proceeds of a refund anticipation loan.

      Sec. 4.  1.  “Facilitator of a refund anticipation loan” or “facilitator” means a person who:

      (a) Receives or accepts for delivery an application for a refund anticipation loan;

      (b) Delivers a check in payment of the proceeds of a refund anticipation loan; or

      (c) In any other manner, acts to allow or facilitates the offering or making of a refund anticipation loan.

      2.  The term includes, without limitation, a tax preparer who engages in any of the acts described in subsection 1.

      3.  The term does not include:

      (a) A bank, thrift, savings association, industrial bank or credit union operating under the laws of the United States or this State;

      (b) An affiliate, other than a tax preparer, that is a servicer for such an entity; or

      (c) Any person who acts solely as an intermediary and does not deal with a customer in the making of a refund anticipation loan.

      Sec. 5.  “Internal Revenue Service” means the Internal Revenue Service of the United States Department of the Treasury.

      Sec. 6.  “Lender” means a person who offers to extend or extends credit to a customer in the form of a refund anticipation loan.

      Sec. 7.  1.  “Refund anticipation loan” means a loan offered or made to a customer by a lender or through a facilitator based on the customer’s anticipated federal income tax refund.

      2.  The term includes, without limitation, a refund anticipation loan offered or made using electronic commerce.

      Sec. 8.  1.  “Refund anticipation loan fee” means any fee, charge or other consideration imposed by a lender or a facilitator for a refund anticipation loan.

      2.  The term does not include any fee, charge or other consideration usually imposed by a facilitator in the ordinary course of business for nonloan services, such as fees for preparing tax returns and fees for the electronic filing of tax returns.

      Sec. 9.  1.  “Refund anticipation loan fee schedule” means a listing or table of refund anticipation loan fees charged by a lender or a facilitator for three or more representative refund anticipation loan amounts.

      2.  A refund anticipation loan fee schedule must:

      (a) List separately each fee or charge imposed and a total of all fees and charges imposed which are related to the making of refund anticipation loans; and

 


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ê2005 Statutes of Nevada, Page 1644 (Chapter 409, AB 340)ê

 

      (b) Include, for each representative loan amount, the estimated annual percentage rate calculated under the guidelines established by the Truth in Lending Act and Regulation Z.

      Sec. 10.  “Regulation Z” means the federal regulations, as amended, 12 C.F.R. Part 226, adopted pursuant to the Truth in Lending Act and commonly known as Regulation Z.

      Sec. 11“Tax preparer” means a person who engages in the business of preparing or filing tax returns for any fee, charge or other consideration.

      Sec. 12.  “Tax return” means a federal income tax return.

      Sec. 13.  “Truth in Lending Act” means the federal Truth in Lending Act, as amended, 15 U.S.C. §§ 1601 et seq.

      Sec. 14.  A facilitator of a refund anticipation loan shall post the refund anticipation loan fee schedule used by the facilitator in a conspicuous place in every location at which the facilitator conducts business.

      Sec. 15.  1.  If a facilitator of a refund anticipation loan offers a customer an opportunity to apply for a refund anticipation loan, the facilitator shall provide to the customer, before the customer completes the application process, the following disclosures:

      (a) The refund anticipation loan fee schedule used by the facilitator; and

      (b) A written statement or, if the transaction is conducted using electronic commerce, an electronic statement, in at least 10-point type, containing the following information:

             (1) A disclosure that the refund anticipation loan is a loan which creates a legally enforceable debt and that the loan is not the customer’s actual tax refund;

             (2) A disclosure that the customer may file a tax return electronically without applying for the refund anticipation loan;

             (3) A disclosure of the average times, according to the Internal Revenue Service, within which a person who does not obtain a refund anticipation loan can expect to receive a tax refund if the person:

                   (I) Files a tax return electronically and the person’s tax refund is directly deposited to the person’s account or mailed to the person; or

                   (II) Mails a tax return to the Internal Revenue Service and the person’s tax refund is directly deposited to the person’s account or mailed to the person;

             (4) A disclosure that the Internal Revenue Service does not guarantee that a person will be paid the full amount of an anticipated tax refund and does not guarantee that an anticipated tax refund will be deposited into a person’s account or mailed to a person on a specific date;

             (5) A disclosure that the customer is responsible for repayment of the refund anticipation loan and related fees and charges if the anticipated tax refund is not paid or paid in full;

             (6) A disclosure of the estimated time within which the proceeds of the refund anticipation loan will be paid to the customer if the loan is approved; and

             (7) A disclosure of the fee or charge that will be imposed, if any, if the refund anticipation loan is not approved.

 


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      2.  In addition to the disclosures required pursuant to subsection 1, the facilitator shall provide to the customer, before the loan transaction is completed, the following additional disclosures:

      (a) The estimated total fees and charges for obtaining the refund anticipation loan; and

      (b) The estimated annual percentage rate for the refund anticipation loan calculated under the guidelines established by the Truth in Lending Act and Regulation Z.

      Sec. 16.  A facilitator of a refund anticipation loan shall not:

      1.  Misrepresent a material factor or condition of a refund anticipation loan;

      2.  Fail to process the application for a refund anticipation loan promptly after the customer applies for the loan;

      3.  Engage in any dishonest, fraudulent, unfair, unconscionable or unethical practice or conduct in connection with a refund anticipation loan;

      4.  Arrange for a lender to take a security interest in any property of the customer, other than the proceeds of the customer’s tax refund and the account into which that tax refund is deposited, to secure payment of the loan; or

      5.  Offer a refund anticipation loan to a customer in an amount that, when added to the refund anticipation loan fees and any other fees or charges related to the loan or the preparation of the tax return, exceeds the amount of the customer’s anticipated tax refund.

      Sec. 17.  Any person who knowingly and willfully violates any provision of this chapter is guilty of a misdemeanor and shall be punished by a fine of not more than $500 for each violation.

      Sec. 18.  1.  The remedies, penalties, duties and prohibitions set forth in this chapter are not exclusive and are in addition to any other remedies, penalties, duties and prohibitions provided by law.

      2.  Any violation of this chapter constitutes a deceptive trade practice for the purposes of the civil and administrative remedies and penalties set forth in NRS 598.0903 to 598.0999, inclusive.

________

 

CHAPTER 410, SB 214

Senate Bill No. 214–Committee on Finance

 

CHAPTER 410

 

AN ACT relating to education; requiring the Department of Education to establish a monitoring system for the statewide system of accountability; revising various provisions governing the statewide system of accountability; requiring the Department of Education to prescribe an educational involvement accord for use in all public schools; requiring the Department of Education to prescribe a code of honor relating to cheating; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

 


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ê2005 Statutes of Nevada, Page 1646 (Chapter 410, SB 214)ê

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 385 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Department shall establish a monitoring system for the statewide system of accountability. The monitoring system must:

      (a) Include a common formula that provides a comparison and analysis of the results of pupils on the examinations that are administered pursuant to NRS 389.015 and 389.550, identified by grade, school and school district.

      (b) Identify any inconsistencies of the results of the examinations administered pursuant to NRS 389.015 compared with the results of the examinations administered pursuant to NRS 389.550, including, without limitation, an identification of whether the results of one or more subject areas on the examinations administered pursuant to NRS 389.015 are significantly higher or lower than the results of the same subject area or areas on the examinations that are administered pursuant to NRS 389.550.

      (c) Identify significant levels of achievement of pupils on the examinations that are administered pursuant to NRS 389.550 and the high school proficiency examination that is administered pursuant to NRS 389.015, identified by school and by school district.

      (d) Include procedures for investigating, and if necessary, auditing any inconsistencies identified pursuant to paragraph (b). The audit must include a review of data from the applicable school district or school districts, school or schools, and if practicable, class or classes.

      2.  On or before October 1 of each year, the Department shall prepare a written summary of the findings made pursuant to subsection 1. The written summary must be provided to:

      (a) The Committee; and

      (b) If the findings show inconsistencies applicable to a particular school district or school within a school district, the board of trustees of that school district.

      3.  The Committee shall review the report submitted pursuant to subsection 2 and take such action as it deems appropriate.

      Sec. 2.  NRS 385.210 is hereby amended to read as follows:

      385.210  1.  The Superintendent of Public Instruction shall prescribe a convenient form of school register for the purpose of securing accurate returns from the teachers of public schools.

      2.  The Superintendent shall prepare pamphlet copies of the codified statutes relating to schools, and shall transmit a copy to each school, school trustee and other school officer in this State. If the State Board adopts regulations to carry out these codified statutes or if additions or amendments are made to these codified statutes, the Superintendent shall have the regulations, additions or amendments printed and transmitted immediately thereafter. Each pamphlet must be marked “State property—to be turned over to your successor in office.” Each school shall maintain a copy of the pamphlet with any regulations, additions or amendments in the school library.

      3.  In addition to the requirements set forth in subsection 2, the Superintendent shall, to the extent practicable and not later than July 1 of each year, provide to the board of trustees of each school district and to the governing body of each charter school a memorandum that [describes] includes:

 


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ê2005 Statutes of Nevada, Page 1647 (Chapter 410, SB 214)ê

 

governing body of each charter school a memorandum that [describes] includes:

      (a) A description of each statute newly enacted by the Legislature which affects the public schools in this State and the pupils who are enrolled in the public schools in this State. The memorandum may compile all the statutes into one document. [If a statute requires the State Board to take action to carry out the statute, the memorandum must include a brief plan for carrying out the statute by the State Board. In addition, the memorandum must include the date on which the statute becomes effective and the date by which it must be carried into effect by a school district or public school.

      4.] (b) A description of each bill, or portion of a bill, newly enacted by the Legislature that appropriates or authorizes money for public schools or for employees of a school district or charter school, or both, or otherwise affects the money that is available for public schools or for employees of school districts or charter schools, or both, including, without limitation, each line item in a budget for such an appropriation or authorization. The memorandum may compile all bills, or portions of bills, as applicable, into one document.

      (c) If a statute or bill described in the memorandum requires the State Board or the Department to take action to carry out the statute or bill, a brief plan for carrying out that statute or bill.

      (d) The date on which each statute and bill described in the memorandum becomes effective and the date by which it must be carried into effect by a school district or public school, including, without limitation, a charter school.

      4.  If a statute or bill described in subsection 3 is enacted during a special session of the Legislature that concludes after July 1, the Superintendent shall prepare an addendum to the memorandum that includes the information required by this section for each such statute or bill. The addendum must be provided to the board of trustees of each school district and the governing body of each charter school not later than 30 days after the special session concludes.

      5.  The Superintendent shall, if directed by the State Board, prepare and publish a bulletin as the official publication of the Department.

      Sec. 3.  NRS 385.3455 is hereby amended to read as follows:

      385.3455  As used in NRS 385.3455 to 385.391, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 385.346 to 385.34675, inclusive, have the meanings ascribed to them in those sections.

      Sec. 4.  NRS 385.34691 is hereby amended to read as follows:

      385.34691  1.  The State Board shall prepare a plan to improve the achievement of pupils enrolled in the public schools in this State. The plan:

      (a) Must be prepared in consultation with:

             (1) Employees of the Department;

             (2) At least one employee of a school district in a county whose population is 100,000 or more, appointed by the Nevada Association of School Boards;

             (3) At least one employee of a school district in a county whose population is less than 100,000, appointed by the Nevada Association of School Boards; and

 


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ê2005 Statutes of Nevada, Page 1648 (Chapter 410, SB 214)ê

 

             (4) At least one representative of the Statewide Council for the Coordination of the Regional Training Programs created by NRS 391.516, appointed by the Council; and

      (b) May be prepared in consultation with:

             (1) Representatives of institutions of higher education;

             (2) Representatives of regional educational laboratories;

             (3) Representatives of outside consultant groups;

             (4) Representatives of the regional training programs for the professional development of teachers and administrators established pursuant to NRS 391.512;

             (5) The Bureau; and

             (6) Other persons who the State Board determines are appropriate.

      2.  A plan to improve the achievement of pupils enrolled in public schools in this State must include:

      (a) A review and analysis of the data upon which the report required pursuant to NRS 385.3469 is based and a review and analysis of any data that is more recent than the data upon which the report is based.

      (b) The identification of any problems or factors common among the school districts or charter schools in this State, as revealed by the review and analysis.

      (c) Strategies based upon scientifically based research, as defined in 20 U.S.C. § 7801(37), that will strengthen the core academic subjects, as set forth in NRS 389.018.

      (d) Strategies to improve the academic achievement of pupils enrolled in public schools in this State, including, without limitation, strategies to:

             (1) Instruct pupils who are not achieving to their fullest potential [;] , including, without limitation:

                   (I) The curriculum appropriate to improve achievement;

                   (II) The manner by which the instruction will improve the achievement and proficiency of pupils on the examinations administered pursuant to NRS 389.015 and 389.550; and

                   (III) An identification of the instruction and curriculum that is specifically designed to improve the achievement and proficiency of pupils in each subgroup identified in paragraph (b) of subsection 1 of NRS 385.361;

             (2) Increase the rate of attendance of pupils and reduce the number of pupils who drop out of school;

             (3) Integrate technology into the instructional and administrative programs of the school districts;

             (4) Manage effectively the discipline of pupils; and

             (5) Enhance the professional development offered for the teachers and administrators employed at public schools in this State to include the activities set forth in 20 U.S.C. § 7801(34), as deemed appropriate by the State Board.

      (e) Strategies designed to provide to the pupils enrolled in middle school, junior high school and high school, the teachers and counselors who provide instruction to those pupils, and the parents and guardians of those pupils information concerning:

             (1) The requirements for admission to an institution of higher education and the opportunities for financial aid;

             (2) The availability of millennium scholarships pursuant to NRS 396.911 to 396.938, inclusive; and

 


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ê2005 Statutes of Nevada, Page 1649 (Chapter 410, SB 214)ê

 

             (3) The need for a pupil to make informed decisions about his curriculum in middle school, junior high school and high school in preparation for success after graduation.

      (f) An identification, by category, of the employees of the Department who are responsible for ensuring that each provision of the plan is carried out effectively.

      (g) For each provision of the plan, a timeline for carrying out that provision, including, without limitation, a timeline for monitoring whether the provision is carried out effectively.

      (h) For each provision of the plan, measurable criteria for determining whether the provision has contributed toward improving the academic achievement of pupils, increasing the rate of attendance of pupils and reducing the number of pupils who drop out of school.

      (i) Strategies to improve the allocation of resources from this State, by program and by school district, in a manner that will improve the academic achievement of pupils. If this State has a financial analysis program that is designed to track educational expenditures and revenues to individual schools, the State Board shall use that statewide program in complying with this paragraph. If a statewide program is not available, the State Board shall use the Department’s own financial analysis program in complying with this paragraph.

      (j) Based upon the reallocation of resources set forth in paragraph (i), the resources available to the State Board and the Department to carry out the plan [.] , including, without limitation, a budget for the overall cost of carrying out the plan.

      (k) A summary of the effectiveness of appropriations made by the Legislature to improve the academic achievement of pupils and programs approved by the Legislature to improve the academic achievement of pupils.

      3.  The State Board shall:

      (a) Review the plan prepared pursuant to this section annually to evaluate the effectiveness of the plan; and

      (b) Based upon the evaluation of the plan, make revisions, as necessary, to ensure that the plan is designed to improve the academic achievement of pupils enrolled in public schools in this State.

      4.  On or before December 15 of each year, the State Board shall submit the plan or the revised plan, as applicable, to the:

      (a) Governor;

      (b) Committee;

      (c) Bureau;

      (d) Board of Regents of the University of Nevada;

      (e) Council to Establish Academic Standards for Public Schools created by NRS 389.510;

      (f) Board of trustees of each school district; and

      (g) Governing body of each charter school.

      Sec. 5.  NRS 385.348 is hereby amended to read as follows:

      385.348  1.  The board of trustees of each school district shall, in consultation with the employees of the school district, prepare a plan to improve the achievement of pupils enrolled in the school district, excluding pupils who are enrolled in charter schools located in the school district. If the school district is a Title I school district designated as demonstrating need for improvement pursuant to NRS 385.377, the plan must also be prepared in consultation with parents and guardians of pupils enrolled in the school district and other persons who the board of trustees determines are appropriate.

 


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district and other persons who the board of trustees determines are appropriate.

      2.  Except as otherwise provided in this subsection, the plan must include the items set forth in 20 U.S.C. § 6316(c)(7) and the regulations adopted pursuant thereto. If a school district has not been designated as demonstrating need for improvement pursuant to NRS 385.377, the board of trustees of the school district is not required to include those items set forth in 20 U.S.C. § 6316(c)(7) and the regulations adopted pursuant thereto that directly relate to the status of a school district as needing improvement.

      3.  In addition to the requirements of subsection 2, a plan to improve the achievement of pupils enrolled in a school district must include:

      (a) A review and analysis of the data upon which the report required pursuant to subsection 2 of NRS 385.347 is based and a review and analysis of any data that is more recent than the data upon which the report is based.

      (b) The identification of any problems or factors at individual schools that are revealed by the review and analysis.

      (c) Strategies based upon scientifically based research, as defined in 20 U.S.C. § 7801(37), that will strengthen the core academic subjects, as set forth in NRS 389.018.

      (d) Strategies to improve the academic achievement of pupils enrolled in the school district , including, without limitation, strategies to:

             (1) Instruct pupils who are not achieving to their fullest potential [;] , including, without limitation:

                   (I) The curriculum appropriate to improve achievement;

                   (II) The manner by which the instruction will improve the achievement and proficiency of pupils on the examinations administered pursuant to NRS 389.015 and 389.550; and

                   (III) An identification of the instruction and curriculum that is specifically designed to improve the achievement and proficiency of pupils in each subgroup identified in paragraph (b) of subsection 1 of NRS 385.361;

             (2) Increase the rate of attendance of pupils and reduce the number of pupils who drop out of school;

             (3) Integrate technology into the instructional and administrative programs of the school district;

             (4) Manage effectively the discipline of pupils; and

             (5) Enhance the professional development offered for the teachers and administrators employed by the school district to include the activities set forth in 20 U.S.C. § 7801(34), as deemed appropriate by the board of trustees of the school district.

      (e) An identification, by category, of the employees of the school district who are responsible for ensuring that each provision of the plan is carried out effectively.

      (f) In consultation with the Department, an identification, by category, of the employees of the Department, if any, who are responsible for overseeing and monitoring whether the plan is carried out effectively.

      (g) For each provision of the plan, a timeline for carrying out that provision, including, without limitation, a timeline for monitoring whether the provision is carried out effectively.

      (h) For each provision of the plan, measurable criteria for determining whether the provision has contributed toward improving the academic achievement of pupils, increasing the rate of attendance of pupils and reducing the number of pupils who drop out of school.

 


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achievement of pupils, increasing the rate of attendance of pupils and reducing the number of pupils who drop out of school.

      (i) Strategies to improve the allocation of resources from the school district, by program and by school, in a manner that will improve the academic achievement of pupils. If this State has a financial analysis program that is designed to track educational expenditures and revenues to individual schools, each school district shall use that statewide program in complying with this paragraph. If a statewide program is not available, each school district shall use its own financial analysis program in complying with this paragraph.

      (j) Based upon the reallocation of resources set forth in paragraph (i), the resources available to the school district to carry out the plan [.] , including, without limitation, a budget of the overall cost for carrying out the plan.

      (k) A summary of the effectiveness of appropriations made by the Legislature that are available to the school district or the schools within the school district to improve the academic achievement of pupils and programs approved by the Legislature to improve the academic achievement of pupils.

      (l) An identification of the programs, practices and strategies that are used throughout the school district and by the schools within the school district that have proven successful in improving the achievement and proficiency of pupils, including, without limitation:

             (1) An identification of each school that carries out such a program, practice or strategy;

             (2) An indication of which programs, practices and strategies are carried out throughout the school district and which programs, practices and strategies are carried out by individual schools;

             (3) The extent to which the programs, practices and strategies include methods to improve the achievement and proficiency of pupils in each subgroup identified in paragraph (b) of subsection 1 of NRS 385.361; and

             (4) A description of how the school district disseminates information concerning the successful programs, practices and strategies to all schools within the school district.

      4.  The board of trustees of each school district shall:

      (a) Review the plan prepared pursuant to this section annually to evaluate the effectiveness of the plan; and

      (b) Based upon the evaluation of the plan, make revisions, as necessary, to ensure that the plan is designed to improve the academic achievement of pupils enrolled in the school district.

      5.  On or before December 15 of each year, the board of trustees of each school district shall submit the plan or the revised plan, as applicable, to the:

      (a) Superintendent of Public Instruction;

      (b) Governor;

      (c) State Board;

      (d) Department;

      (e) Committee; and

      (f) Bureau.

      Sec. 6.  NRS 385.357 is hereby amended to read as follows:

      385.357  1.  The principal of each school, including, without limitation, each charter school, shall, in consultation with the employees of the school, prepare a plan to improve the achievement of the pupils enrolled in the school.

 


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      2.  The plan developed pursuant to subsection 1 must include:

      (a) A review and analysis of the data pertaining to the school upon which the report required pursuant to subsection 2 of NRS 385.347 is based and a review and analysis of any data that is more recent than the data upon which the report is based.

      (b) The identification of any problems or factors at the school that are revealed by the review and analysis.

      (c) Strategies based upon scientifically based research, as defined in 20 U.S.C. § 7801(37), that will strengthen the core academic subjects, as defined in NRS 389.018.

      (d) Policies and practices concerning the core academic subjects which have the greatest likelihood of ensuring that each subgroup of pupils identified in paragraph (b) of subsection 1 of NRS 385.361 who are enrolled in the school will make adequate yearly progress and meet the minimum level of proficiency prescribed by the State Board.

      (e) Annual measurable objectives, consistent with the annual measurable objectives established by the State Board pursuant to NRS 385.361, for the continuous and substantial progress by each subgroup of pupils identified in paragraph (b) of subsection 1 of that section who are enrolled in the school to ensure that each subgroup will make adequate yearly progress and meet the level of proficiency prescribed by the State Board.

      (f) Strategies, consistent with the policy adopted pursuant to NRS 392.457 by the board of trustees of the school district in which the school is located, to promote effective involvement by parents and families of pupils enrolled in the school in the education of their children.

      (g) As appropriate, programs of remedial education or tutoring to be offered before and after school, during the summer, or between sessions if the school operates on a year-round calendar for pupils enrolled in the school who need additional instructional time to pass or to reach a level considered proficient.

      (h) Strategies to improve the academic achievement of pupils enrolled in the school, including, without limitation, strategies to:

             (1) Instruct pupils who are not achieving to their fullest potential [;] , including, without limitation:

                   (I) The curriculum appropriate to improve achievement;

                   (II) The manner by which the instruction will improve the achievement and proficiency of pupils on the examinations administered pursuant to NRS 389.015 and 389.550; and

                   (III) An identification of the instruction and curriculum that is specifically designed to improve the achievement and proficiency of pupils in each subgroup identified in paragraph (b) of subsection 1 of NRS 385.361;

             (2) Increase the rate of attendance of pupils and reduce the number of pupils who drop out of school;

             (3) Integrate technology into the instructional and administrative programs of the school;

             (4) Manage effectively the discipline of pupils; and

             (5) Enhance the professional development offered for the teachers and administrators employed at the school to include the activities set forth in 20 U.S.C. § 7801(34), as deemed appropriate by the principal and other persons and entities responsible for the development of the plan.

 


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      (i) An identification, by category, of the employees of the school who are responsible for ensuring that the plan is carried out effectively.

      (j) In consultation with the school district or governing body, as applicable, an identification, by category, of the employees of the school district or governing body, if any, who are responsible for ensuring that the plan is carried out effectively or for overseeing and monitoring whether the plan is carried out effectively.

      (k) In consultation with the Department, an identification, by category, of the employees of the Department, if any, who are responsible for overseeing and monitoring whether the plan is carried out effectively.

      (l) For each provision of the plan, a timeline for carrying out that provision, including, without limitation, a timeline for monitoring whether the provision is carried out effectively.

      (m) For each provision of the plan, measurable criteria for determining whether the provision has contributed toward improving the academic achievement of pupils, increasing the rate of attendance of pupils and reducing the number of pupils who drop out of school.

      (n) The resources available to the school to carry out the plan. If this State has a financial analysis program that is designed to track educational expenditures and revenues to individual schools, each school shall use that statewide program in complying with this paragraph. If a statewide program is not available, each school shall use the financial analysis program used by the school district in which the school is located in complying with this paragraph.

      (o) A summary of the effectiveness of appropriations made by the Legislature that are available to the school to improve the academic achievement of pupils and programs approved by the Legislature to improve the academic achievement of pupils.

      (p) A budget of the overall cost for carrying out the plan.

      3.  In addition to the requirements of subsection 2, if a school has been designated as demonstrating need for improvement pursuant to NRS 385.3623, the plan must comply with 20 U.S.C. § 6316(b)(3) and the regulations adopted pursuant thereto.

      4.  Except as otherwise provided in subsection 5, the principal of each school shall, in consultation with the employees of the school:

      (a) Review the plan prepared pursuant to this section annually to evaluate the effectiveness of the plan; and

      (b) Based upon the evaluation of the plan, make revisions, as necessary, to ensure that the plan is designed to improve the academic achievement of pupils enrolled in the school.

      5.  If a school has been designated as demonstrating need for improvement pursuant to NRS 385.3623, the technical assistance partnership or the support team established for the school, as applicable, shall review the plan and make revisions to the most recent plan for improvement of the school pursuant to NRS 385.3692 or 385.3741, as applicable. If the school is a Title I school that has been designated as demonstrating need for improvement, the technical assistance partnership or support team established for the school, as applicable, shall, in making revisions to the plan, work in consultation with parents and guardians of pupils enrolled in the school and, to the extent deemed appropriate by the entity responsible for creating the partnership or support team, outside experts.

 


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      6.  On or before November 1 of each year, the principal of each school, or the technical assistance partnership or support team established for the school, as applicable, shall submit the plan or the revised plan, as applicable, to:

      (a) If the school is a public school of the school district, the superintendent of schools of the school district.

      (b) If the school is a charter school, the governing body of the charter school.

      7.  If a Title I school is designated as demonstrating need for improvement pursuant to NRS 385.3623, the superintendent of schools of the school district or the governing body, as applicable, shall carry out a process for peer review of the plan or the revised plan, as applicable, in accordance with 20 U.S.C. § 6316(b)(3)(E) and the regulations adopted pursuant thereto. Not later than 45 days after receipt of the plan, the superintendent of schools of the school district or the governing body, as applicable, shall approve the plan or the revised plan, as applicable, if it meets the requirements of 20 U.S.C. § 6316(b)(3) and the regulations adopted pursuant thereto and the requirements of this section. The superintendent of schools of the school district or the governing body, as applicable, may condition approval of the plan or the revised plan, as applicable, in the manner set forth in 20 U.S.C. § 6316(b)(3)(B) and the regulations adopted pursuant thereto. The State Board shall prescribe the requirements for the process of peer review, including, without limitation, the qualifications of persons who may serve as peer reviewers.

      8.  If a school is designated as demonstrating exemplary achievement, high achievement or adequate achievement, or if a school that is not a Title I school is designated as demonstrating need for improvement, not later than 45 days after receipt of the plan or the revised plan, as applicable, the superintendent of schools of the school district or the governing body, as applicable, shall approve the plan or the revised plan if it meets the requirements of this section.

      9.  On or before December 15 of each year, the principal of each school, or the technical assistance partnership or support team established for the school, as applicable, shall submit the final plan or the final revised plan, as applicable, to the:

      (a) Superintendent of Public Instruction;

      (b) Governor;

      (c) State Board;

      (d) Department;

      (e) Committee;

      (f) Bureau; and

      (g) Board of trustees of the school district in which the school is located.

      10.  A plan for the improvement of a school must be carried out expeditiously, but not later than January 1 after approval of the plan pursuant to subsection 7 or 8, as applicable.

      Secs. 7 and 8.  (Deleted by amendment.)

      Sec. 9.  Chapter 386 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Not later than 60 days after receipt of a memorandum pursuant to subsection 3 of NRS 385.210 or an addendum to a memorandum pursuant to subsection 4 of that section, the governing body of a charter school shall determine which statutes and bills described in the memorandum or addendum, as applicable, directly affect pupils, parents, teachers, administrators or other educational personnel of the charter school and require a plan for implementation.

 


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ê2005 Statutes of Nevada, Page 1655 (Chapter 410, SB 214)ê

 

addendum, as applicable, directly affect pupils, parents, teachers, administrators or other educational personnel of the charter school and require a plan for implementation. If the governing body determines that a statute or bill requires a plan for implementation, the governing body shall prepare a brief plan, which must ensure that the charter school will comply with the statute or bill on the date on which the statute or bill becomes effective and thereafter.

      2.  The governing body of a charter school shall provide to the parents and legal guardians of pupils who are enrolled in the charter school, and to all teachers, administrators and other educational personnel who are employed by the charter school, written notice of the:

      (a) Information contained in the memorandum provided pursuant to subsection 3 of NRS 385.210 or the addendum provided pursuant to subsection 4 of that section, as applicable, that directly affects pupils, parents, teachers, administrators or other educational personnel of the charter school; and

      (b) Brief plan for implementation of the statutes or bills, if any.

      3.  The written notice provided pursuant to subsection 2 to the parents and legal guardians may be:

      (a) Included in other notices that the charter school provides to parents and legal guardians.

      (b) Provided in a language other than English if the governing body determines that it is necessary for the parent or legal guardian to understand the notice.

      Sec. 10.  NRS 386.360 is hereby amended to read as follows:

      386.360  1.  Not later than 60 days after receipt of [such] a memorandum pursuant to subsection 3 of NRS 385.210 [from the Superintendent of Public Instruction,] or an addendum to a memorandum pursuant to subsection 4 of that section, the board of trustees of a school district shall determine which statutes and bills described in the memorandum or addendum, as applicable, directly affect pupils, parents, teachers, administrators or other educational personnel and require a plan for implementation. If the board of trustees determines that a statute or bill requires a plan for implementation, the board of trustees shall prepare a brief plan, which must ensure that the school district and the public schools within the school district will comply with the statute or bill on the date on which the statute or bill becomes effective and thereafter.

      2.  The board of trustees shall provide written notice to the parents and legal guardians of pupils who are enrolled in public schools within the school district, and to all teachers, administrators and other educational personnel who are employed by the board of trustees and the governing body of each charter school that is located within the school district of the [information] :

      (a) Information contained in the memorandum provided pursuant to subsection 3 of NRS 385.210 or the addendum provided pursuant to subsection 4 of that section, as applicable, that directly affects pupils, parents, teachers, administrators or other educational personnel ; and [a brief]

      (b) Brief plan for implementation of the statutes [,] or bills, if any . [, to the parents and legal guardians of pupils who are enrolled in public schools within the school district and all teachers, administrators and other educational personnel who are employed by the board of trustees.]   

 


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      3.  The written notice provided pursuant to subsection 2 to the parents and legal guardians may be:

      (a) Included in other notices that the board of trustees provides to parents and legal guardians.

      (b) Provided in a language other than English if the board of trustees determines that it is necessary for the parent or legal guardian to understand the notice.

      [2.] 4.  Each board of trustees may prescribe or enforce rules, not inconsistent with law or rules prescribed by the State Board, for its own government and the government of public schools under its charge.

      [3.] 5.  Each board of trustees shall prescribe rules for the granting of permission to carry or possess a weapon pursuant to NRS 202.265.

      Sec. 11.  NRS 386.500 is hereby amended to read as follows:

      386.500  For the purposes of NRS 386.500 to 386.610, inclusive, and section 9 of this act, a pupil is “at risk” if he has an economic or academic disadvantage such that he requires special services and assistance to enable him to succeed in educational programs. The term includes, without limitation, pupils who are members of economically disadvantaged families, pupils who are limited English proficient, pupils who are at risk of dropping out of high school and pupils who do not meet minimum standards of academic proficiency. The term does not include a pupil with a disability.

      Sec. 12.  NRS 389.012 is hereby amended to read as follows:

      389.012  1.  The State Board shall:

      [1.] (a) In accordance with guidelines established by the National Assessment Governing Board and National Center for Education Statistics and in accordance with 20 U.S.C. §§ 6301 et seq. and the regulations adopted pursuant thereto, adopt regulations requiring the schools of this State that are selected by the National Assessment Governing Board or the National Center for Education Statistics to participate in the examinations of the National Assessment of Educational Progress.

      [2.] (b) Report the results of those examinations to the:

      [(a)] (1) Governor;

      [(b)] (2) Board of trustees of each school district of this State;

      [(c)] (3) Legislative Committee on Education created pursuant to NRS 218.5352; and

      [(d)] (4) Legislative Bureau of Educational Accountability and Program Evaluation created pursuant to NRS 218.5356.

      [3.] (c) The report required pursuant to subsection 2 must include an analysis and comparison of the results of pupils in this State on the examinations required by this section with:

      [(a)] (1) The results of pupils throughout this country who participated in the examinations of the National Assessment of Educational Progress; and

      [(b)] (2) The results of pupils on the achievement and proficiency examinations administered pursuant to this chapter.

      2.  If the report required by this section indicates that the percentage of pupils enrolled in the public schools in this State who are proficient on the National Assessment of Educational Progress differs by more than 10 percent of the pupils who are proficient on the examinations administered pursuant to NRS 389.550 and the high school proficiency examination administered pursuant to NRS 389.015, the Department shall prepare a written report describing the discrepancy. The report must include, without limitation, a comparison and evaluation of:

 


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ê2005 Statutes of Nevada, Page 1657 (Chapter 410, SB 214)ê

 

      (a) The standards of content and performance for English and mathematics established pursuant to NRS 389.520 with the standards for English and mathematics that are tested on the National Assessment.

      (b) The standards for proficiency established for the National Assessment with the standards for proficiency established for the examinations that are administered pursuant to NRS 389.550 and the high school proficiency examination administered pursuant to NRS 389.015.

      3.  The report prepared by the Department pursuant to subsection 2 must be submitted to the:

      (a) Governor;

      (b) Legislative Committee on Education;

      (c) Legislative Bureau of Educational Accountability and Program Evaluation; and

      (d) Council to Establish Academic Standards for Public Schools.

      4.  The Council to Establish Academic Standards for Public Schools shall review and evaluate the report provided to the Council pursuant to subsection 3 to identify any discrepancies in the standards of content and performance established by the Council that require revision and a timeline for carrying out the revision, if necessary. The Council shall submit a written report of its review and evaluation to the Legislative Committee on Education and Legislative Bureau of Educational Accountability and Program Evaluation.

      Sec. 13.  NRS 391.516 is hereby amended to read as follows:

      391.516  1.  The Statewide Council for the Coordination of the Regional Training Programs, consisting of nine members, is hereby created. The membership of the Council consists of:

      (a) Each coordinator [appointed] hired by the governing body of each regional training program pursuant to NRS 391.532.

      (b) One member of the governing body of each regional training program, appointed by the governing body. The member appointed pursuant to this paragraph may appoint a designee to serve in his place.

      (c) One representative of the Nevada State Education Association, appointed by the President of that Association.

      2.  Each coordinator who serves on the Statewide Council is a member of the Statewide Council only for the period of his service as coordinator of the regional training program pursuant to NRS 391.532.

      3.  Each member appointed by the governing body pursuant to paragraph (b) of subsection 1 and the member appointed pursuant to paragraph (c) of subsection 1 serve a term of 2 years.

      4.  Members of the Statewide Council serve without salary, but are entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally for each day or portion of a day during which a member attends a meeting of the Statewide Council or is otherwise engaged in the work of the Statewide Council. For the members of the Statewide Council who are appointed pursuant to paragraphs (a) and (b) of subsection 1, the governing body of the regional training program represented by those members shall pay the per diem allowance and travel expenses. For the member of the Statewide Council who is appointed pursuant to paragraph (c) of subsection 1, the Nevada State Education Association shall pay the per diem allowance and travel expenses.

 


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      5.  The governing bodies of the regional training programs may mutually agree to expend a portion of their respective budgets to pay for the administrative support of the Statewide Council.

      Sec. 14.  NRS 391.532 is hereby amended to read as follows:

      391.532  1.  The governing body of each regional training program shall [appoint] :

      (a) Employ or otherwise contract with a coordinator of the program, who serves at the pleasure of the governing body.

      (b) Set the salary or other compensation of the coordinator.

      2.  The coordinator of each regional training program shall:

      (a) Serve on the Statewide Council;

      (b) Assist in the evaluation of the regional training program, as directed by the governing body; and

      (c) Perform such other duties as directed by the governing body.

      Sec. 15.  NRS 391.536 is hereby amended to read as follows:

      391.536  1.  On an annual basis, the governing body of each regional training program shall review the budget for the program and submit a proposed budget to the Legislative Committee on Education. The proposed budget must include, without limitation, the amount of money requested by the governing body to pay for the [services] salary or other compensation of the coordinator of the program [appointed] hired pursuant to NRS 391.532. In even-numbered years, the proposed budget must be submitted to the Legislative Committee on Education at least 4 months before the commencement of the next regular session of the Legislature.

      2.  The governing body of a regional training program may:

      (a) Accept gifts and grants from any source to assist the governing body in providing the training required by NRS 391.544.

      (b) Comply with applicable federal laws and regulations governing the provision of federal grants to assist with the training provided pursuant to NRS 391.544, including, without limitation, providing money from the budget of the governing body to match the money received from a federal grant.

      Sec. 16.  NRS 391.540 is hereby amended to read as follows:

      391.540  1.  The governing body of each regional training program shall:

      (a) Adopt a training model, taking into consideration other model programs, including, without limitation, the program used by the Geographic Alliance in Nevada.

      (b) Assess the training needs of teachers and administrators who are employed by the school districts within the primary jurisdiction of the regional training program and adopt priorities of training for the program based upon the assessment of needs. The board of trustees of each such school district may submit recommendations to the appropriate governing body for the types of training that should be offered by the regional training program.

      (c) In making the assessment required by paragraph (b), review the plans to improve the achievement of pupils prepared pursuant to NRS 385.348 by the school districts within the primary jurisdiction of the regional training program and, as deemed necessary by the governing body, review the plans to improve the achievement of pupils prepared pursuant to NRS 385.357 for individual schools within the primary jurisdiction of the regional training program.

 


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      (d) Prepare a 5-year plan for the regional training program, which includes, without limitation:

             (1) An assessment of the training needs of teachers and administrators who are employed by the school districts within the primary jurisdiction of the regional training program; and

             (2) Specific details of the training that will be offered by the regional training program for the first 2 years covered by the plan.

      [(d)] (e) Review the 5-year plan on an annual basis and make revisions to the plan as are necessary to serve the training needs of teachers and administrators employed by the school districts within the primary jurisdiction of the regional training program.

      2.  The Department, the University and Community College System of Nevada and the board of trustees of a school district may request the governing body of the regional training program that serves the school district to provide training, participate in a program or otherwise perform a service that is in addition to the duties of the regional training program that are set forth in the plan adopted pursuant to this section or otherwise required by statute. An entity may not represent that a regional training program will perform certain duties or otherwise obligate the regional training program as part of an application by that entity for a grant unless the entity has first obtained the written confirmation of the governing body of the regional training program to perform those duties or obligations. The governing body of a regional training program may, but is not required to, grant a request pursuant to this subsection.

      Sec. 17.  Chapter 392 of NRS is hereby amended by adding thereto the provisions set forth as sections 17.3 and 17.5 of this act.

      Sec. 17.3  1.  The Department shall prescribe a form for educational involvement accords to be used by all public schools in this State. The educational involvement accord must comply with the parental involvement policy:

      (a) Required by the federal No Child Left Behind Act of 2001, as set forth in 20 U.S.C. § 6318.

      (b) Adopted by the State Board pursuant to NRS 392.457.

      2.  Each educational involvement accord must include, without limitation:

      (a) A description of how the parent or legal guardian will be involved in the education of the pupil, including, without limitation:

             (1) Reading to the pupil, as applicable for the grade or reading level of the pupil;

             (2) Reviewing and checking the pupil’s homework; and

             (3) Contributing 5 hours of time each school year, including, without limitation, by attending school-related activities, parent-teacher association meetings, parent-teacher conferences, volunteering at the school and chaperoning school-sponsored activities.

      (b) The responsibilities of a pupil in a public school, including, without limitation:

             (1) Reading each day before or after school, as applicable for the grade or reading level of the pupil;

             (2) Using all school equipment and property appropriately and safely;

             (3) Following the directions of any adult member of the staff of the school;

 


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ê2005 Statutes of Nevada, Page 1660 (Chapter 410, SB 214)ê

 

             (4) Completing and submitting homework in a timely manner; and

             (5) Respecting himself, others and all property.

      (c) The responsibilities of a public school and the administrators, teachers and other personnel employed at a school, including, without limitation:

             (1) Ensuring that each pupil is provided proper instruction, supervision and interaction;

             (2) Maximizing the educational and social experience of each pupil;

             (3) Carrying out the professional responsibility of educators to seek the best interest of each pupil; and

             (4) Making staff available to the parents and legal guardians of pupils to discuss the concerns of parents and legal guardians regarding the pupils.

      3.  Each educational involvement accord must be accompanied by, without limitation:

      (a) Information describing how the parent or legal guardian may contact the pupil’s teacher and the principal of the school in which the pupil is enrolled;

      (b) The curriculum of the course or standards for the grade in which the pupil is enrolled, as applicable, including, without limitation, a calendar that indicates the dates of major examinations and the due dates of significant projects, if those dates are known by the teacher at the time that the information is distributed;

      (c) The homework and grading policies of the pupil’s teacher or school;

      (d) Directions for finding resource materials for the course or grade in which the pupil is enrolled, as applicable;

      (e) Suggestions for parents and legal guardians to assist pupils in their schoolwork at home;

      (f) The dates of scheduled conferences between teachers or administrators and the parents or legal guardians of the pupil;

      (g) The manner in which reports of the pupil’s progress will be delivered to the parent or legal guardian and how a parent or legal guardian may request a report of progress;

      (h) The classroom rules and policies;

      (i) The dress code of the school, if any;

      (j) The availability of assistance to parents who have limited proficiency in the English language;

      (k) Information describing the availability of free and reduced-price meals, including, without limitation, information regarding school breakfast, school lunch and summer meal programs;

      (l) Opportunities for parents and legal guardians to become involved in the education of their children and to volunteer for the school or class; and

      (m) The code of honor relating to cheating prescribed pursuant to section 17.5 of this act.

      4.  The board of trustees of each school district shall adopt a policy providing for the development and distribution of the educational involvement accord. The policy adopted by a board of trustees must require each classroom teacher to:

 


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      (a) Distribute the educational involvement accord to the parent or legal guardian of each pupil in his class at the beginning of each school year or upon a pupil’s enrollment in the class, as applicable; and

      (b) Provide the parent or legal guardian with a reasonable opportunity to sign the educational involvement accord.

      5.  Except as otherwise provided in this subsection, the board of trustees of each school district shall ensure that the form prescribed by the Department is used for the educational involvement accord of each public school in the school district. The board of trustees of a school district may authorize the use of an expanded form that contains additions to the form prescribed by the Department if the basic information contained in the expanded form complies with the form prescribed by the Department.

      6.  The Department and the board of trustees of each school district shall, at least once each year, review and amend their respective educational involvement accords.

      Sec. 17.5.  1.  The Department shall prescribe by regulation a written policy that establishes a code of honor for pupils relating to cheating on examinations and course work. The policy must be developed in consultation with the boards of trustees of school districts, the governing bodies of charter schools, educational personnel employed by school districts and charter schools, and local associations and organizations of parents whose children are enrolled in public schools throughout this State.

      2.  The policy must include, without limitation, a definition of cheating that clearly and concisely informs pupils which acts constitute cheating for purposes of the code of honor.

      3.  On or before July 1 of each year, the Department shall:

      (a) Provide a copy of the code of honor to the board of trustees of each school district and the governing body of each charter school.

      (b) Review and amend the code of honor as necessary.

      4.  Copies of the code of honor must be made available for inspection at each public school located within a school district, including, without limitation, each charter school, in an area on the grounds of the school that is open to the public.

      Secs. 18-22.  (Deleted by amendment.)

      Sec. 23.  The Department of Education shall:

      1.  On or before December 1, 2005, submit to the Legislative Committee on Education a written report that sets forth the proposed monitoring system for the statewide system of accountability that includes the elements prescribed in section 1 of this act.

      2.  On or before July 1, 2006, adopt a final version of the monitoring system to be carried out beginning with the 2006-2007 school year.

      Sec. 24.  The Department of Education shall participate in any national study that determines whether the standards of content and performance for the State of Nevada are calibrated to the standards that are measured on the National Assessment of Educational Progress if such a study is available and if the study will not require any additional expenditure of money by the Department.

      Sec. 25.  (Deleted by amendment.)

      Sec. 26.  This act becomes effective on July 1, 2005.

________

 

 


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CHAPTER 411, AB 162

Assembly Bill No. 162–Committee on Education

 

CHAPTER 411

 

AN ACT relating to education; revising provisions governing the operation of charter schools, the employees of charter schools and the enrollment of pupils in charter schools; providing for the issuance of a license to teach to certain persons with graduate degrees and work experience; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 386 of NRS is hereby amended by adding thereto a new section to read as follows:

      The provisions of NRS 386.500 to 386.610, inclusive, and any other statute or regulation applicable to charter schools or its officers or employees govern the formation and operation of charter schools in this State. Upon the first renewal of a written charter and each renewal thereafter, the sponsor of a charter school shall not prescribe additional requirements or otherwise require a charter school to comply with additional terms or conditions unless the sponsor is specifically authorized by statute, regulation or the written charter.

      Sec. 2.  NRS 386.500 is hereby amended to read as follows:

      386.500  For the purposes of NRS 386.500 to 386.610, inclusive, and section 1 of this act, a pupil is “at risk” if he has an economic or academic disadvantage such that he requires special services and assistance to enable him to succeed in educational programs. The term includes, without limitation, pupils who are members of economically disadvantaged families, pupils who are limited English proficient, pupils who are at risk of dropping out of high school and pupils who do not meet minimum standards of academic proficiency. The term does not include a pupil with a disability.

      Sec. 3.  NRS 386.527 is hereby amended to read as follows:

      386.527  1.  If the State Board or the board of trustees of a school district approves an application to form a charter school, it shall grant a written charter to the applicant. The State Board or the board of trustees, as applicable, shall, not later than 10 days after the approval of the application, provide written notice to the Department of the approval and the date of the approval. If the board of trustees approves the application, the board of trustees shall be deemed the sponsor of the charter school.

      2.  If the State Board approves the application:

      (a) The State Board shall be deemed the sponsor of the charter school.

      (b) Neither the State of Nevada, the State Board nor the Department is an employer of the members of the governing body of the charter school or any of the employees of the charter school.

      [2.] 3.  Upon the initial renewal of a written charter and each renewal thereafter, the governing body of a charter school may request a change in the sponsorship of the charter school to an entity that is authorized to sponsor charter schools pursuant to NRS 386.515. The State Board shall adopt objective criteria for the conditions under which such a request may be granted.

 


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adopt objective criteria for the conditions under which such a request may be granted.

      4.  Except as otherwise provided in subsection [4,] 6, a written charter must be for a term of 6 years unless the governing body of a charter school renews its initial charter after 3 years of operation pursuant to subsection 2 of NRS 386.530. A written charter must include all conditions of operation set forth in paragraphs (a) to (o), inclusive, of subsection 2 of NRS 386.520 and include the kind of school, as defined in subsections 1 to 4, inclusive, of NRS 388.020 for which the charter school is authorized to operate. If the State Board is the sponsor of the charter school, the written charter must set forth the responsibilities of the sponsor and the charter school with regard to the provision of services and programs to pupils with disabilities who are enrolled in the charter school in accordance with the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq., and NRS 388.440 to 388.520, inclusive. As a condition of the issuance of a written charter pursuant to this subsection, the charter school must agree to comply with all conditions of operation set forth in NRS 386.550.

      [3.] 5.  The governing body of a charter school may submit to the sponsor of the charter school a written request for an amendment of the written charter of the charter school. Such an amendment may include, without limitation, the expansion of instruction and other educational services to pupils who are enrolled in grade levels other than the grade levels of pupils currently enrolled in the charter school if the expansion of grade levels does not change the kind of school, as defined in NRS 388.020, for which the charter school is authorized to operate. If the proposed amendment complies with the provisions of this section, NRS 386.500 to 386.610, inclusive, and section 1 of this act, and any other statute or regulation applicable to charter schools, the sponsor shall amend the written charter in accordance with the proposed amendment. If a charter school wishes to expand the instruction and other educational services offered by the charter school to pupils who are enrolled in grade levels other than the grade levels of pupils currently enrolled in the charter school and the expansion of grade levels changes the kind of school, as defined in NRS 388.020, for which the charter school is authorized to operate, the charter school must submit a new application to form a charter school.

      [4.] 6.  The State Board shall adopt objective criteria for the issuance of a written charter to an applicant who is not prepared to commence operation on the date of issuance of the written charter. The criteria must include, without limitation, the:

      (a) Period for which such a written charter is valid; and

      (b) Timelines by which the applicant must satisfy certain requirements demonstrating its progress in preparing to commence operation.

Ê A holder of such a written charter may apply for grants of money to prepare the charter school for operation. A written charter issued pursuant to this subsection must not be designated as a conditional charter or a provisional charter or otherwise contain any other designation that would indicate the charter is issued for a temporary period.

      [5.] 7.  The holder of a written charter that is issued pursuant to subsection [4] 6 shall not commence operation of the charter school and is not eligible to receive apportionments pursuant to NRS 387.124 until the sponsor has determined that the requirements adopted by the State Board pursuant to subsection [4] 6 have been satisfied and that the facility the charter school will occupy has been inspected and meets the requirements of any applicable building codes, codes for the prevention of fire, and codes pertaining to safety, health and sanitation.

 


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charter school will occupy has been inspected and meets the requirements of any applicable building codes, codes for the prevention of fire, and codes pertaining to safety, health and sanitation. Except as otherwise provided in this subsection, the sponsor shall make such a determination 30 days before the first day of school for the:

      (a) Schools of the school district in which the charter school is located that operate on a traditional school schedule and not a year-round school schedule; or

      (b) Charter school,

Ê whichever date the sponsor selects. The sponsor shall not require a charter school to demonstrate compliance with the requirements of this subsection more than 30 days before the date selected. However, it may authorize a charter school to demonstrate compliance less than 30 days before the date selected.

      Sec. 4.  NRS 386.580 is hereby amended to read as follows:

      386.580  1.  An application for enrollment in a charter school may be submitted to the governing body of the charter school by the parent or legal guardian of any child who resides in this State. Except as otherwise provided in this subsection [,] and subsection 2, a charter school shall enroll pupils who are eligible for enrollment in the order in which the applications are received. If the board of trustees of the school district in which the charter school is located has established zones of attendance pursuant to NRS 388.040, the charter school shall, if practicable, ensure that the racial composition of pupils enrolled in the charter school does not differ by more than 10 percent from the racial composition of pupils who attend public schools in the zone in which the charter school is located. [If] Except as otherwise provided in subsection 2, if more pupils who are eligible for enrollment apply for enrollment in the charter school than the number of spaces which are available, the charter school shall determine which applicants to enroll pursuant to this subsection on the basis of a lottery system.

      2.  A charter school that is dedicated to providing educational programs and opportunities to pupils who are at risk may enroll a child who:

      (a) Is a sibling of a pupil who is currently enrolled in the charter school; or

      (b) Resides within 2 miles of the charter school if the charter school is located in an area that the sponsor of the charter school determines includes a high percentage of children who are at risk,

Ê before the charter school enrolls other pupils who are eligible for enrollment. If more pupils described in this subsection who are eligible apply for enrollment than the number of spaces available, the charter school shall determine which applicants to enroll pursuant to this subsection on the basis of a lottery system.

      3.  Except as otherwise provided in subsection [6,] 7, a charter school shall not accept applications for enrollment in the charter school or otherwise discriminate based on the:

      (a) Race;

      (b) Gender;

      (c) Religion;

      (d) Ethnicity; or

 


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      (e) Disability,

Ê of a pupil.

      [3.] 4.  If the governing body of a charter school determines that the charter school is unable to provide an appropriate special education program and related services for a particular disability of a pupil who is enrolled in the charter school, the governing body may request that the board of trustees of the school district of the county in which the pupil resides transfer that pupil to an appropriate school.

      [4.] 5.  Except as otherwise provided in this subsection, upon the request of a parent or legal guardian of a child who is enrolled in a public school of a school district or a private school, or a parent or legal guardian of a homeschooled child, the governing body of the charter school shall authorize the child to participate in a class that is not otherwise available to the child at his school or home school or participate in an extracurricular activity at the charter school if:

      (a) Space for the child in the class or extracurricular activity is available; and

      (b) The parent or legal guardian demonstrates to the satisfaction of the governing body that the child is qualified to participate in the class or extracurricular activity.

Ê If the governing body of a charter school authorizes a child to participate in a class or extracurricular activity pursuant to this subsection, the governing body is not required to provide transportation for the child to attend the class or activity. A charter school shall not authorize such a child to participate in a class or activity through a program of distance education provided by the charter school pursuant to NRS 388.820 to 388.874, inclusive.

      [5.] 6.  The governing body of a charter school may revoke its approval for a child to participate in a class or extracurricular activity at a charter school pursuant to subsection [4] 5 if the governing body determines that the child has failed to comply with applicable statutes, or applicable rules and regulations. If the governing body so revokes its approval, neither the governing body nor the charter school is liable for any damages relating to the denial of services to the child.

      [6.] 7.  This section does not preclude the formation of a charter school that is dedicated to provide educational services exclusively to pupils:

      (a) With disabilities;

      (b) Who pose such severe disciplinary problems that they warrant an educational program specifically designed to serve a single gender and emphasize personal responsibility and rehabilitation; or

      (c) Who are at risk.

Ê If more eligible pupils apply for enrollment in such a charter school than the number of spaces which are available, the charter school shall determine which applicants to enroll pursuant to this subsection on the basis of a lottery system.

      Sec. 5.  NRS 386.595 is hereby amended to read as follows:

      386.595  1.  All employees of a charter school shall be deemed public employees.

      2.  [Except as otherwise provided in this subsection, the provisions of the collective bargaining agreement entered into by the board of trustees of the school district in which the charter school is located apply to the terms and conditions of employment of employees of the charter school who are on a leave of absence from the school district pursuant to subsection 5, including, without limitation, any provisions relating to representation by the employee organization that is a party to the collective bargaining agreement of the school district in a grievance proceeding or other dispute arising out of the agreement.

 


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a leave of absence from the school district pursuant to subsection 5, including, without limitation, any provisions relating to representation by the employee organization that is a party to the collective bargaining agreement of the school district in a grievance proceeding or other dispute arising out of the agreement. The provisions of the collective bargaining agreement apply to each employee for the first 3 years that he is on a leave of absence from the school district. After the first 3 years that the employee is on a leave of absence:

      (a) If he is subsequently reassigned by the school district pursuant to subsection 5, he is covered by the collective bargaining agreement of the school district.

      (b) If he continues his employment with the charter school, he is covered by the collective bargaining agreement of the charter school, if applicable.

      3.  Except as otherwise provided in subsection 2, the] The governing body of a charter school may make all decisions concerning the terms and conditions of employment with the charter school and any other matter relating to employment with the charter school. In addition, the governing body may make all employment decisions with regard to its employees pursuant to NRS 391.311 to 391.3197, inclusive, unless a collective bargaining agreement entered into by the governing body pursuant to chapter 288 of NRS contains separate provisions relating to the discipline of licensed employees of a school.

      [4.] 3.  Except as otherwise provided in this subsection, if the written charter of a charter school is revoked or if a charter school ceases to operate as a charter school, the employees of the charter school must be reassigned to employment within the school district in accordance with the applicable collective bargaining agreement. A school district is not required to reassign an employee of a charter school pursuant to this subsection if the employee:

      (a) Was not granted a leave of absence by the school district to teach at the charter school pursuant to subsection [5;] 4; or

      (b) Was granted a leave of absence by the school district and did not submit a written request to return to employment with the school district in accordance with subsection [5.] 4.

      [5.] 4.  The board of trustees of a school district that is a sponsor of a charter school shall grant a leave of absence, not to exceed 6 years, to any employee who is employed by the board of trustees who requests such a leave of absence to accept employment with the charter school. After the first school year in which an employee is on a leave of absence, he may return to his former teaching position with the board of trustees. After the third school year, an employee who is on a leave of absence may submit a written request to the board of trustees to return to a comparable teaching position with the board of trustees. After the sixth school year, an employee shall either submit a written request to return to a comparable teaching position or resign from the position for which his leave was granted. The board of trustees shall grant a written request to return to a comparable position pursuant to this subsection even if the return of the employee requires the board of trustees to reduce the existing workforce of the school district. The board of trustees may require that a request to return to a teaching position submitted pursuant to this subsection be submitted at least 90 days before the employee would otherwise be required to report to duty.

      [6.] 5.  An employee who is on a leave of absence from a school district pursuant to this section [shall] :

 


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      (a) Shall contribute to and be eligible for all benefits for which he would otherwise be entitled, including, without limitation, participation in the Public Employees’ Retirement System and accrual of time for the purposes of leave and retirement.

      (b) Continues, while he is on leave, to be covered by the collective bargaining agreement of the school district only with respect to any matter relating to his status or employment with the district.

Ê The time during which such an employee is on a leave of absence and employed in a charter school does not count toward the acquisition of permanent status with the school district.

      [7.] 6.  Upon the return of a teacher to employment in the school district, he is entitled to the same level of retirement, salary and any other benefits to which he would otherwise be entitled if he had not taken a leave of absence to teach in a charter school.

      [8.] 7.  An employee of a charter school who is not on a leave of absence from a school district is eligible for all benefits for which he would be eligible for employment in a public school, including, without limitation, participation in the Public Employees’ Retirement System.

      [9.] 8.  For all employees of a charter school:

      (a) The compensation that a teacher or other school employee would have received if he were employed by the school district must be used to determine the appropriate levels of contribution required of the employee and employer for purposes of the Public Employees’ Retirement System.

      (b) The compensation that is paid to a teacher or other school employee that exceeds the compensation that he would have received if he were employed by the school district must not be included for the purposes of calculating future retirement benefits of the employee.

      [10.] 9.  If the board of trustees of a school district in which a charter school is located manages a plan of group insurance for its employees, the governing body of the charter school may negotiate with the board of trustees to participate in the same plan of group insurance that the board of trustees offers to its employees. If the employees of the charter school participate in the plan of group insurance managed by the board of trustees, the governing body of the charter school shall:

      (a) Ensure that the premiums for that insurance are paid to the board of trustees; and

      (b) Provide, upon the request of the board of trustees, all information that is necessary for the board of trustees to provide the group insurance to the employees of the charter school.

      Sec. 6.  NRS 387.123 is hereby amended to read as follows:

      387.123  1.  The count of pupils for apportionment purposes includes all pupils who are enrolled in programs of instruction of the school district, including, without limitation, a program of distance education provided by the school district, or pupils who reside in the county in which the school district is located and are enrolled in any charter school, including, without limitation, a program of distance education provided by a charter school, for:

      (a) Pupils in the kindergarten department.

      (b) Pupils in grades 1 to 12, inclusive.

      (c) Pupils not included under paragraph (a) or (b) who are receiving special education pursuant to the provisions of NRS 388.440 to 388.520, inclusive.

 


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      (d) Pupils who reside in the county and are enrolled part time in a program of distance education if an agreement is filed with the Superintendent of Public Instruction pursuant to NRS 388.854 or 388.858, as applicable.

      (e) Children detained in facilities for the detention of children, alternative programs and juvenile forestry camps receiving instruction pursuant to the provisions of NRS 388.550, 388.560 and 388.570.

      (f) Pupils who are enrolled in classes pursuant to subsection 4 of NRS 386.560 and pupils who are enrolled in classes pursuant to subsection [4] 5 of NRS 386.580.

      (g) Pupils who are enrolled in classes pursuant to subsection 3 of NRS 392.070.

      (h) Pupils who are enrolled in classes and taking courses necessary to receive a high school diploma, excluding those pupils who are included in paragraphs (d), (f) and (g).

      2.  The State Board shall establish uniform regulations for counting enrollment and calculating the average daily attendance of pupils. In establishing such regulations for the public schools, the State Board:

      (a) Shall divide the school year into 10 school months, each containing 20 or fewer school days, or its equivalent for those public schools operating under an alternative schedule authorized pursuant to NRS 388.090.

      (b) May divide the pupils in grades 1 to 12, inclusive, into categories composed respectively of those enrolled in elementary schools and those enrolled in secondary schools.

      (c) Shall prohibit the counting of any pupil specified in subsection 1 more than once.

      3.  Except as otherwise provided in subsection 4 and NRS 388.700, the State Board shall establish by regulation the maximum pupil-teacher ratio in each grade, and for each subject matter wherever different subjects are taught in separate classes, for each school district of this State which is consistent with:

      (a) The maintenance of an acceptable standard of instruction;

      (b) The conditions prevailing in the school district with respect to the number and distribution of pupils in each grade; and

      (c) Methods of instruction used, which may include educational television, team teaching or new teaching systems or techniques.

Ê If the Superintendent of Public Instruction finds that any school district is maintaining one or more classes whose pupil-teacher ratio exceeds the applicable maximum, and unless he finds that the board of trustees of the school district has made every reasonable effort in good faith to comply with the applicable standard, he shall, with the approval of the State Board, reduce the count of pupils for apportionment purposes by the percentage which the number of pupils attending those classes is of the total number of pupils in the district, and the State Board may direct him to withhold the quarterly apportionment entirely.

      4.  The provisions of subsection 3 do not apply to a charter school or a program of distance education provided pursuant to NRS 388.820 to 388.874, inclusive.

      Sec. 7.  NRS 387.1233 is hereby amended to read as follows:

      387.1233  1.  Except as otherwise provided in subsection 2, basic support of each school district must be computed by:

 


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      (a) Multiplying the basic support guarantee per pupil established for that school district for that school year by the sum of:

             (1) Six-tenths the count of pupils enrolled in the kindergarten department on the last day of the first school month of the school district for the school year, including, without limitation, the count of pupils who reside in the county and are enrolled in any charter school on the last day of the first school month of the school district for the school year.

             (2) The count of pupils enrolled in grades 1 to 12, inclusive, on the last day of the first school month of the school district for the school year, including, without limitation, the count of pupils who reside in the county and are enrolled in any charter school on the last day of the first school month of the school district for the school year.

             (3) The count of pupils not included under subparagraph (1) or (2) who are enrolled full time in a program of distance education provided by that school district or a charter school located within that school district on the last day of the first school month of the school district for the school year.

             (4) The count of pupils who reside in the county and are enrolled:

                   (I) In a public school of the school district and are concurrently enrolled part time in a program of distance education provided by another school district or a charter school on the last day of the first school month of the school district for the school year, expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

                   (II) In a charter school and are concurrently enrolled part time in a program of distance education provided by a school district or another charter school on the last day of the first school month of the school district for the school year, expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

             (5) The count of pupils not included under subparagraph (1), (2), (3) or (4), who are receiving special education pursuant to the provisions of NRS 388.440 to 388.520, inclusive, on the last day of the first school month of the school district for the school year, excluding the count of pupils who have not attained the age of 5 years and who are receiving special education pursuant to subsection 1 of NRS 388.490 on that day.

             (6) Six-tenths the count of pupils who have not attained the age of 5 years and who are receiving special education pursuant to subsection 1 of NRS 388.490 on the last day of the first school month of the school district for the school year.

             (7) The count of children detained in facilities for the detention of children, alternative programs and juvenile forestry camps receiving instruction pursuant to the provisions of NRS 388.550, 388.560 and 388.570 on the last day of the first school month of the school district for the school year.

             (8) The count of pupils who are enrolled in classes for at least one semester pursuant to subsection 4 of NRS 386.560, subsection [4] 5 of NRS 386.580 or subsection 3 of NRS 392.070, expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

 


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to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

      (b) Multiplying the number of special education program units maintained and operated by the amount per program established for that school year.

      (c) Adding the amounts computed in paragraphs (a) and (b).

      2.  If the enrollment of pupils in a school district or a charter school that is located within the school district on the last day of the first school month of the school district for the school year is less than the enrollment of pupils in the same school district or charter school on the last day of the first school month of the school district for either or both of the immediately preceding 2 school years, the largest number must be used from among the 3 years for purposes of apportioning money from the State Distributive School Account to that school district or charter school pursuant to NRS 387.124.

      3.  Pupils who are excused from attendance at examinations or have completed their work in accordance with the rules of the board of trustees must be credited with attendance during that period.

      4.  Pupils who are incarcerated in a facility or institution operated by the Department of Corrections must not be counted for the purpose of computing basic support pursuant to this section. The average daily attendance for such pupils must be reported to the Department of Education.

      5.  Pupils who are enrolled in courses which are approved by the Department as meeting the requirements for an adult to earn a high school diploma must not be counted for the purpose of computing basic support pursuant to this section.

      Sec. 8.  Chapter 391 of NRS is hereby amended by adding thereto a new section to read as follows:

      A person who is licensed pursuant to subparagraph (7) of paragraph (a) of subsection 1 of NRS 391.019:

      1.  Shall comply with all applicable statutes and regulations.

      2.  Except as otherwise provided by specific statute, is entitled to all benefits, rights and privileges conferred by statutes and regulations on licensed teachers.

      3.  Except as otherwise provided by specific statute, if he is employed as a teacher by the board of trustees of a school district or the governing body of a charter school, is entitled to all benefits, rights and privileges conferred by statutes and regulations on the licensed employees of a school district or charter school, as applicable.

      Sec. 9.  NRS 391.019 is hereby amended to read as follows:

      391.019  1.  Except as otherwise provided in NRS 391.027, the Commission:

      (a) Shall adopt regulations:

             (1) Prescribing the qualifications for licensing teachers and other educational personnel, including, without limitation, the qualifications for a license to teach middle school or junior high school education, and the procedures for the issuance and renewal of such licenses.

             (2) Identifying fields of specialization in teaching which require the specialized training of teachers.

             (3) Except as otherwise provided in NRS 391.125, requiring teachers to obtain from the Department an endorsement in a field of specialization to be eligible to teach in that field of specialization.

 


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             (4) Setting forth the educational requirements a teacher must satisfy to qualify for an endorsement in each field of specialization.

             (5) Setting forth the qualifications and requirements for obtaining a license or endorsement to teach American Sign Language, including, without limitation, being qualified to engage in the practice of interpreting pursuant to subsection 3 of NRS 656A.100.

             (6) Except as otherwise authorized by subsection 4 of NRS 656A.100, requiring teachers and other educational personnel to satisfy the qualifications set forth in subsection 3 of NRS 656A.100 if they:

                   (I) Provide instruction or other educational services; and

                   (II) Concurrently engage in the practice of interpreting, as defined in NRS 656A.060.

             (7) Providing for the issuance of a license to teach to a person who:

                   (I) Holds a graduate degree from an accredited college or university in the field for which he will be providing instruction;

                   (II) Is not licensed to teach public school in another state;

                   (III) Has at least 5 years of experience teaching with satisfactory evaluations at a school that is accredited by a national or regional accrediting agency recognized by the United States Department of Education; and

                   (IV) Submits proof of participation in a program of student teaching or mentoring or agrees to participate in a program of mentoring for the first year of his employment as a teacher with a school district or charter school.

Ê An applicant for licensure pursuant to this subparagraph is exempt from each examination required by NRS 391.021 if the applicant successfully passed the examination in another state.

      (b) May adopt such other regulations as it deems necessary for its own government or to carry out its duties.

      2.  Any regulation which increases the amount of education, training or experience required for licensing:

      (a) Must, in addition to the requirements for publication in chapter 233B of NRS, be publicized before its adoption in a manner reasonably calculated to inform those persons affected by the change.

      (b) Must not become effective until at least 1 year after the date it is adopted by the Commission.

      (c) Is not applicable to a license in effect on the date the regulation becomes effective.

      Sec. 10.  NRS 391.021 is hereby amended to read as follows:

      391.021  Except as otherwise provided in [NRS] subparagraph (7) of paragraph (a) of subsection 1 of NRS 391.019 and 391.027, the Commission shall adopt regulations governing examinations for the initial licensing of teachers and other educational personnel. The examinations must test the ability of the applicant to teach and his knowledge of each specific subject he proposes to teach. Each examination must include the following subjects:

      1.  The laws of Nevada relating to schools;

      2.  The Constitution of the State of Nevada; and

      3.  The Constitution of the United States.

Ê The provisions of this section do not prohibit the Commission from adopting regulations pursuant to subsection 2 of NRS 391.032 that provide an exemption from the examinations for teachers and other educational personnel who have previous experience in teaching or performing other educational functions in another state.

 


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personnel who have previous experience in teaching or performing other educational functions in another state.

      Sec. 11.  NRS 391.037 is hereby amended to read as follows:

      391.037  1.  The State Board shall:

      (a) Prescribe by regulation the standards for approval of a course of study or training offered by an educational institution to qualify a person to be a teacher or administrator or to perform other educational functions.

      (b) Maintain descriptions of the approved courses of study required to qualify for endorsements in fields of specialization and provide to an applicant, upon request, the approved course of study for a particular endorsement.

      2.  [Every] Except for an applicant who submits an application for the issuance of a license pursuant to subparagraph (7) of paragraph (a) of subsection 1 of NRS 391.019, an applicant for a license as a teacher or administrator or to perform some other educational function must submit with his application, in the form prescribed by the Superintendent of Public Instruction, proof that he has satisfactorily completed a course of study and training approved by the State Board [.] pursuant to subsection 1.

      Sec. 12.  The amendatory provisions of section 5 of this act do not apply to a person who is, before July 1, 2005, employed by a charter school and on a leave of absence from a school district.

      Sec. 13.  1.  This section and sections 4 and 12 of this act become effective upon passage and approval.

      2.  Sections 1, 2, 3 and 5 to 11, inclusive, of this act become effective on July 1, 2005.

________

 

CHAPTER 412, AB 493

Assembly Bill No. 493–Committee on Commerce and Labor

 

CHAPTER 412

 

AN ACT relating to public welfare; requiring the Department of Human Resources to apply for a Medicaid waiver pursuant to the Health Insurance Flexibility and Accountability demonstration initiative; providing a mechanism for funding the benefits provided pursuant to the waiver; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 422 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.

      Sec. 2.  1.  The Director shall apply to the Federal Government for a Medicaid waiver pursuant to the Health Insurance Flexibility and Accountability demonstration initiative or any succeeding program to provide certain health care benefits through Medicaid and the Children’s Health Insurance Program to the persons described in section 3 of this act.

      2.  The Director shall fully cooperate in good faith with the Federal Government during the application process to satisfy the requirements of the Federal Government for obtaining a waiver pursuant to this section, including, without limitation:

 


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the Federal Government for obtaining a waiver pursuant to this section, including, without limitation:

      (a) Providing any necessary information requested by the Federal Government in a timely manner;

      (b) Responding promptly and thoroughly to any questions or concerns of the Federal Government concerning the application; and

      (c) Working with the Federal Government to amend any necessary provisions of the application to satisfy the requirements for approval of the application.

      3.  In applying for a waiver pursuant to this section, the Director shall consider any recommendations he receives from the Board of Trustees of the Fund for Hospital Care to Indigent Patients established pursuant to NRS 428.195, any board of county commissioners and the Board of Directors of the Nevada Association of Counties.

      Sec. 3.  The Director shall include in the application for the Medicaid waiver pursuant to section 2 of this act, to the extent authorized by federal law, that the waiver is to:

      1.  Provide coverage for medical services to pregnant women who have household incomes that are more than 133 percent of the federally designated level signifying poverty but not more than 185 percent of the federally designated level signifying poverty.

      2.  Provide a monthly subsidy of up to $100 toward a policy of insurance purchased by an employee or the spouse of an employee:

      (a) Who works for an employer that employs at least 2 but not more than 50 employees;

      (b) Whose household income is less than 200 percent of the federally designated level signifying poverty; and

      (c) Who is otherwise ineligible for Medicaid.

      3.  Provide coverage for hospital care to persons who have low incomes, are otherwise ineligible for Medicaid and who have a catastrophic illness or injury which results in unpaid charges for hospital care. As used in this subsection, “hospital care” has the meaning ascribed to it in NRS 428.155.

      Sec. 4.  1.  If the Federal Government approves a Medicaid waiver which the Director applied for pursuant to section 2 of this act, the Director shall adopt regulations to implement the waiver and establish a program in accordance with the waiver, which may include, without limitation, regulations setting forth:

      (a) Any amount of contribution that a person who receives any benefit under the program is required to pay;

      (b) Criteria for eligibility;

      (c) The services covered by the program;

      (d) Any limitation on the number of persons who may participate in the program; and

      (e) Any other regulations necessary to carry out the program.

      2.  The Director shall also adopt any necessary regulations to ensure that an employer that provides health care insurance to an employee does not discontinue or reduce his contribution toward such insurance as a result of any subsidy authorized under the program established pursuant to this section. Such regulations must include, without limitation, a requirement that a person is not eligible for a subsidy unless his employer contributes at least 50 percent toward the premium for insurance provided by the employer.

 


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contributes at least 50 percent toward the premium for insurance provided by the employer.

      3.  The Director shall submit a quarterly report concerning benefits provided by the program established pursuant to this section to the Interim Finance Committee and the Legislative Committee on Health Care.

      Sec. 5.  To fund a program established pursuant to section 4 of this act, the Director shall use:

      1.  The money transferred pursuant to subsection 2 of NRS 428.305;

      2.  Any money provided by appropriation by the Legislature for that purpose; and

      3.  Any federal money allotted to the State of Nevada for that purpose.

      Sec. 6.  NRS 422.240 is hereby amended to read as follows:

      422.240  1.  Money to carry out the provisions of NRS 422.001 to 422.410, inclusive, and sections 2 to 5, inclusive, of this act and 422.580, including, without limitation, any federal money allotted to the State of Nevada pursuant to the program to provide Temporary Assistance for Needy Families and the Program for Child Care and Development, must, except as otherwise provided in sections 2 to 5, inclusive, of this act and NRS 422.3755 to 422.379, inclusive, and 439.630, be provided by appropriation by the Legislature from the State General Fund.

      2.  Disbursements for the purposes of NRS 422.001 to 422.410, inclusive, and sections 2 to 5, inclusive, of this act, and 422.580 must, except as otherwise provided in sections 2 to 5, inclusive, of this act and NRS 422.3755 to 422.379, inclusive, and 439.630, be made upon claims duly filed and allowed in the same manner as other money in the State Treasury is disbursed.

      Sec. 7.  Chapter 428 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Board may authorize counties to apply to the Board for reimbursement or partial reimbursement of unpaid charges for hospital care in excess of $25,000 to any one person which have been incurred by a person certified as indigent by the board of county commissioners pursuant to this chapter.

      2.  The Board shall set forth the circumstances under which and the manner in which counties may apply for reimbursement pursuant to this section, including, without limitation, any amount of money that the county must expend before it may apply for reimbursement pursuant to this section.

      3.  The Board may review an application it receives pursuant to this section and approve or disapprove reimbursement of all or part of the unpaid charges in excess of $25,000. If reimbursement or partial reimbursement is approved, payment to the county must be made from the Fund, to the extent money is available in the Fund, and the county must reimburse the provider of care for the care given to any one indigent person which exceeds $25,000 but only to the extent of the money reimbursed or partially reimbursed to the county from the Fund on account of that patient.

      4.  Upon payment to the county, the Board:

      (a) Is subrogated to the right of the county to recover unpaid charges from the indigent person or from other persons responsible for his support, to the extent of the reimbursement or partial reimbursement paid; and

 


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      (b) Has a lien upon the proceeds of any recovery by the county from the indigent person or other person responsible for his support, to the extent of the reimbursement or partial reimbursement paid from the Fund.

      Sec. 8.  NRS 428.115 is hereby amended to read as follows:

      428.115  As used in NRS 428.115 to 428.255, inclusive, and section 7 of this act, unless the context otherwise requires, the words and terms defined in NRS 428.125 to 428.165, inclusive, have the meanings ascribed to them in those sections.

      Sec. 9.  NRS 428.175 is hereby amended to read as follows:

      428.175  1.  The Fund for Hospital Care to Indigent Persons is hereby created as a special revenue fund for the purposes described in NRS 428.115 to 428.255, inclusive [.] , and section 7 of this act.

      2.  All money collected or recovered pursuant to NRS 428.115 to 428.255, inclusive, and section 7 of this act, and the interest earned on the money in the Fund must be deposited for credit to the Fund. Claims against the Fund must be paid on claims approved by the Board.

      Sec. 10.  NRS 428.265 is hereby amended to read as follows:

      428.265  As used in NRS 428.265 to [428.345,] 428.305, inclusive:

      1.  “Fund” means the fund for medical assistance to indigent persons.

      2.  “Supplemental Account” means the Supplemental Account for Medical Assistance to Indigent Persons.

      Sec. 11.  NRS 428.275 is hereby amended to read as follows:

      428.275  1.  The board of county commissioners of a county shall before July 1, 1985, by ordinance, create in the county treasury a fund to be designated as the fund for medical assistance to indigent persons.

      2.  The money in the fund must be used [for reimbursement, as provided in NRS 428.335 and 428.345, of any unpaid charges for medical care furnished to an indigent person who falls sick in the county other than care furnished on account of an injury suffered in a motor vehicle accident.] in the manner set forth in NRS 428.295 and to fund, in part, the waiver obtained pursuant to section 2 of this act and any program established pursuant to section 4 of this act.

      3.  All money collected or recovered pursuant to this section and NRS 428.285, and the interest earned on the money in the fund , must be deposited for credit to the fund. Claims against the fund must be paid on claims approved by the board of county commissioners. Any money remaining in the fund at the end of any fiscal year does not revert to the county general fund.

      Sec. 12.  NRS 428.285 is hereby amended to read as follows:

      428.285  1.  The board of county commissioners of each county shall establish a tax rate of at least 6 cents on each $100 of assessed valuation for the purposes of the tax imposed pursuant to subsection 2. A board of county commissioners may increase the rate to not more than 10 cents on each $100 of assessed valuation.

      2.  In addition to the levies provided in NRS 428.050 and 428.185 and any tax levied pursuant to NRS 450.425, the board of county commissioners shall levy a tax ad valorem at a rate necessary to produce revenue in an amount equal to an amount calculated by multiplying the assessed valuation of all taxable property in the county by the tax rate established pursuant to subsection 1, and subtracting from the product the amount of unencumbered money remaining in the fund on May 1 of the current fiscal year.

 


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      3.  For each fiscal year beginning on or after July 1, 1989, the board of county commissioners of each county shall remit to the State Controller from the money in the fund an amount of money equivalent to 1 cent on each $100 of assessed valuation of all taxable property in the county for credit to the [supplemental fund.] Supplemental Account.

      4.  The tax so levied and its proceeds must be excluded in computing the maximum amount of money which the county is permitted to receive from taxes ad valorem and the highest permissible rate of such taxes.

      Sec. 13.  NRS 428.305 is hereby amended to read as follows:

      428.305  1.  The Supplemental Account for Medical Assistance to Indigent Persons is created in the Fund for Hospital Care for Indigent Persons. [Any money recovered pursuant to NRS 428.345 and the] The interest earned on the money in the Supplemental Account must be deposited for credit to the Supplemental Account.

      2.  [If] Beginning with the fiscal year that begins on July 1, 2005, at the end of each quarter of a fiscal year, the balance in the Supplemental Account [exceeds $2,000,000 on May 1, the excess must be credited pro rata against the amounts due from the respective counties.] must be transferred to the Health Insurance Flexibility and Accountability Holding Account in the State General Fund in an amount not to exceed the amount of any appropriation provided by the Legislature to fund a program established pursuant to section 4 of this act.

      3.  Any money remaining in the Health Insurance Flexibility and Accountability Holding Account at the end of each fiscal year reverts to the Fund for Hospital Care to Indigent Persons and to the State General Fund in equal amounts.

      Sec. 14.  NRS 439B.330 is hereby amended to read as follows:

      439B.330  1.  Except as otherwise provided in this subsection, subsection 2 and NRS 439B.300 , [and subsection 2 of this section,] each county shall use the definition of “indigent” in NRS 439B.310 to determine a person’s eligibility for medical assistance pursuant to chapter 428 of NRS, other than assistance provided pursuant to NRS 428.115 to 428.255, inclusive [.] , and section 7 of this act.

      2.  A board of county commissioners may, if it determines that a hospital within the county is serving a disproportionately large share of low-income patients:

      (a) Pay a higher rate to the hospital for treatment of indigent inpatients;

      (b) Pay the hospital for treatment of indigent inpatients whom the hospital would otherwise be required to treat without receiving compensation from the county; or

      (c) Both pay at a higher rate and pay for inpatients for whom the hospital would otherwise be uncompensated.

      3.  Each hospital which treats an indigent inpatient shall submit to the board of county commissioners of the county of residence of the patient a discharge form identifying the patient as a possible indigent and containing the information required by the Department and the county to be included in all such forms.

      4.  The county which receives a discharge form from a hospital for an indigent inpatient shall verify the status of the patient and the amount which the hospital is entitled to receive. A hospital aggrieved by a determination of a county regarding the indigent status of an inpatient may appeal the determination to the Director or a person designated by the Director to hear such an appeal.

 


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such an appeal. The decision of the Director or the person he designates must be mailed by registered or certified mail to the county and the hospital. The decision of the Director or the person he designates may be appealed to a court having general jurisdiction in the county within 15 days after the date of the postmark on the envelope in which the decision was mailed.

      5.  Except as otherwise provided in subsection 2 of this section and subsection 3 of NRS 439B.320, if the county is the county of residence of the patient and the patient is indigent, the county shall pay to the hospital the amount required, within the limits of money which may lawfully be appropriated for this purpose pursuant to NRS 428.050, 428.285 and 450.425.

      6.  For the purposes of this section, the county of residence of the patient is the county of residence of that person before he was admitted to the hospital.

      Sec. 15.  The provisions of NRS 428.315, 428.335 and 428.345 are hereby repealed.

      Sec. 16.  Any balance existing in the Supplemental Account for Medical Assistance to Indigent Persons created by NRS 428.305 on June 30, 2005, must be transferred to the Fund for Hospital Care to Indigent Persons.

      Sec. 17.  1.  This section and sections 1 to 6, inclusive, and 16 of this act become effective on July 1, 2005.

      2.  Sections 7 to 15, inclusive, of this act become effective on July 1, 2005, and expire by limitation on July 1, 2007, if the waiver applied for by the Director of the Department of Human Resources pursuant to section 2 of this act is not approved by the Federal Government.

________

 

CHAPTER 413, AB 51

Assembly Bill No. 51–Committee on Judiciary

 

CHAPTER 413

 

AN ACT relating to domestic relations; revising provisions concerning the considerations of the court in determining the best interests of a child for the purpose of determining custody of the child; providing a procedure for parties to an adoption to enter into an enforceable agreement that provides for postadoptive contact; requiring certain persons to notify the court of the existence of such an agreement; authorizing a natural parent who has entered into such an agreement to petition the court to prove the existence of the agreement, to enforce its terms and to bring certain civil actions related to the agreement; authorizing an adoptive parent who has entered into such an agreement to petition the court to enforce the terms of the agreement and to modify or terminate the agreement; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

 


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ê2005 Statutes of Nevada, Page 1678 (Chapter 413, AB 51)ê

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 125.480 is hereby amended to read as follows:

      125.480  1.  In determining custody of a minor child in an action brought under this chapter, the sole consideration of the court is the best interest of the child. If it appears to the court that joint custody would be in the best interest of the child, the court may grant custody to the parties jointly.

      2.  Preference must not be given to either parent for the sole reason that the parent is the mother or the father of the child.

      3.  The court shall award custody in the following order of preference unless in a particular case the best interest of the child requires otherwise:

      (a) To both parents jointly pursuant to NRS 125.490 or to either parent. If the court does not enter an order awarding joint custody of a child after either parent has applied for joint custody, the court shall state in its decision the reason for its denial of the parent’s application. [When awarding custody to either parent, the court shall consider, among other factors, which parent is more likely to allow the child to have frequent associations and a continuing relationship with the noncustodial parent.]

      (b) To a person or persons in whose home the child has been living and where the child has had a wholesome and stable environment.

      (c) To any person related within the third degree of consanguinity to the child whom the court finds suitable and able to provide proper care and guidance for the child, regardless of whether the relative resides within this State.

      (d) To any other person or persons whom the court finds suitable and able to provide proper care and guidance for the child.

      4.  In determining the best interest of the child, the court shall consider [,] and set forth its specific findings concerning, among other things:

      (a) The wishes of the child if the child is of sufficient age and capacity to form an intelligent preference as to his custody . [;]

      (b) Any nomination by a parent or a guardian for the child . [; and]

      (c) Which parent is more likely to allow the child to have frequent associations and a continuing relationship with the noncustodial parent.

      (d) The level of conflict between the parents.

      (e) The ability of the parents to cooperate to meet the needs of the child.

      (f) The mental and physical health of the parents.

      (g) The physical, developmental and emotional needs of the child.

      (h) The nature of the relationship of the child with each parent.

      (i) The ability of the child to maintain a relationship with any sibling.

      (j) Any history of parental abuse or neglect of the child or a sibling of the child.

      (k) Whether either parent or any other person seeking custody has engaged in an act of domestic violence against the child, a parent of the child or any other person residing with the child.

      5.  Except as otherwise provided in subsection 6 or NRS 125C.210, a determination by the court after an evidentiary hearing and finding by clear and convincing evidence that either parent or any other person seeking custody has engaged in one or more acts of domestic violence against the child, a parent of the child or any other person residing with the child creates a rebuttable presumption that sole or joint custody of the child by the perpetrator of the domestic violence is not in the best interest of the child.

 


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a rebuttable presumption that sole or joint custody of the child by the perpetrator of the domestic violence is not in the best interest of the child. Upon making such a determination, the court shall set forth:

      (a) Findings of fact that support the determination that one or more acts of domestic violence occurred; and

      (b) Findings that the custody or visitation arrangement ordered by the court adequately protects the child and the parent or other victim of domestic violence who resided with the child.

      6.  If after an evidentiary hearing held pursuant to subsection 5 the court determines that each party has engaged in acts of domestic violence, it shall, if possible, then determine which person was the primary physical aggressor. In determining which party was the primary physical aggressor for the purposes of this section, the court shall consider:

      (a) All prior acts of domestic violence involving either party;

      (b) The relative severity of the injuries, if any, inflicted upon the persons involved in those prior acts of domestic violence;

      (c) The likelihood of future injury;

      (d) Whether, during the prior acts, one of the parties acted in self-defense; and

      (e) Any other factors which the court deems relevant to the determination.

Ê In such a case, if it is not possible for the court to determine which party is the primary physical aggressor, the presumption created pursuant to subsection 5 applies to both parties. If it is possible for the court to determine which party is the primary physical aggressor, the presumption created pursuant to subsection 5 applies only to the party determined by the court to be the primary physical aggressor.

      7.  As used in this section, “domestic violence” means the commission of any act described in NRS 33.018.

      Sec. 2.  Chapter 127 of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 8, inclusive, of this act.

      Sec. 3.  1.  The natural parent or parents and the prospective adoptive parent or parents of a child to be adopted may enter into an enforceable agreement that provides for postadoptive contact between:

      (a) The child and his natural parent or parents;

      (b) The adoptive parent or parents and the natural parent or parents; or

      (c) Any combination thereof.

      2.  An agreement that provides for postadoptive contact is enforceable if the agreement:

      (a) Is in writing and signed by the parties; and

      (b) Is incorporated into an order or decree of adoption.

      3.  The identity of a natural parent is not required to be included in an agreement that provides for postadoptive contact. If such information is withheld, an agent who may receive service of process for the natural parent must be provided in the agreement.

      4.  A court that enters an order or decree of adoption which incorporates an agreement that provides for postadoptive contact shall retain jurisdiction to enforce, modify or terminate the agreement that provides for postadoptive contact until:

      (a) The child reaches 18 years of age;

      (b) The child becomes emancipated; or

 


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      (c) The agreement is terminated.

      5.  The establishment of an agreement that provides for postadoptive contact does not affect the rights of an adoptive parent as the legal parent of the child as set forth in NRS 127.160.

      Sec. 4.  1.  Each prospective adoptive parent of a child to be adopted who enters into an agreement that provides for postadoptive contact pursuant to section 3 of this act shall notify the court responsible for entering the order or decree of adoption of the child of the existence of the agreement as soon as practicable after the agreement is established, but not later than the time at which the court enters the order or decree of adoption of the child.

      2.  Each:

      (a) Director or other authorized representative of the agency which provides child welfare services or the licensed child-placing agency involved in the adoption proceedings concerning the child; and

      (b) Attorney representing a prospective adoptive parent, the child, the agency which provides child welfare services or the licensed child-placing agency in the adoption proceedings concerning the child,

Ê shall, as soon as practicable after obtaining actual knowledge that the prospective adoptive parent or parents of the child and the natural parent or parents of the child have entered into an agreement that provides for postadoptive contact pursuant to section 3 of this act, notify the court responsible for entering the order or decree of adoption of the child of the existence of the agreement.

      Sec. 5.  1.  Before a court may enter an order or decree of adoption of a child, the court must address in person:

      (a) Each prospective adoptive parent of the child to be adopted;

      (b) Each director or other authorized representative of the agency which provides child welfare services or the licensed child-placing agency involved in the adoption proceedings concerning the child; and

      (c) Each attorney representing a prospective adoptive parent, the child, the agency which provides child welfare services or the licensed child-placing agency in the adoption proceedings concerning the child,

Ê and inquire whether the person has actual knowledge that the prospective adoptive parent or parents of the child and natural parent or parents of the child have entered into an agreement that provides for postadoptive contact pursuant to section 3 of this act.

      2.  If the court determines that the prospective adoptive parent or parents and the natural parent or parents have entered into an agreement that provides for postadoptive contact, the court shall:

      (a) Order the prospective adoptive parent or parents to provide a copy of the agreement to the court; and

      (b) Incorporate the agreement into the order or decree of adoption.

      Sec. 6.  1.  A natural parent who has entered into an agreement that provides for postadoptive contact pursuant to section 3 of this act may, for good cause shown:

      (a) Petition the court that entered the order or decree of adoption of the child to prove the existence of the agreement that provides for postadoptive contact and to request that the agreement be incorporated into the order or decree of adoption; and

      (b) During the period set forth in subsection 2 of section 7 of this act, petition the court that entered the order or decree of adoption of the child to enforce the terms of the agreement that provides for postadoptive contact if the agreement complies with the requirements of subsection 2 of section 3 of this act.

 


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to enforce the terms of the agreement that provides for postadoptive contact if the agreement complies with the requirements of subsection 2 of section 3 of this act.

      2.  An adoptive parent who has entered into an agreement that provides for postadoptive contact pursuant to section 3 of this act may:

      (a) During the period set forth in subsection 2 of section 7 of this act, petition the court that entered the order or decree of adoption of the child to enforce the terms of the agreement that provides for postadoptive contact if the agreement complies with the requirements of subsection 2 of section 3 of this act; and

      (b) Petition the court that entered the order or decree of adoption of the child to modify or terminate the agreement that provides for postadoptive contact in the manner set forth in section 8 of this act.

      Sec. 7.  1.  Failure to comply with the terms of an agreement that provides for postadoptive contact entered into pursuant to section 3 of this act may not be used as a ground to:

      (a) Set aside an order or decree of adoption;

      (b) Revoke, nullify or set aside a valid release for or consent to an adoption or a relinquishment for adoption; or

      (c) Except as otherwise provided in section 12 of this act, award any civil damages to a party to the agreement.

      2.  Any action to enforce the terms of an agreement that provides for postadoptive contact must be commenced not later than 120 days after the date on which the agreement was breached.

      Sec. 8.  1.  An agreement that provides for postadoptive contact entered into pursuant to section 3 of this act may only be modified or terminated by an adoptive parent petitioning the court that entered the order or decree which included the agreement. The court may grant a request to modify or terminate the agreement only if:

      (a) The adoptive parent petitioning the court for the modification or termination establishes that:

             (1) A change in circumstances warrants the modification or termination; and

             (2) The contact provided for in the agreement is no longer in the best interests of the child; or

      (b) Each party to the agreement consents to the modification or termination.

      2.  If an adoptive parent petitions the court for a modification or termination of an agreement pursuant to this section:

      (a) There is a presumption that the modification or termination is in the best interests of the child; and

      (b) The court may consider the wishes of the child involved in the agreement.

      3.  Any order issued pursuant to this section to modify an agreement that provides postadoptive contact:

      (a) May limit, restrict, condition or decrease contact between the parties involved in the agreement; and

      (b) May not expand or increase the contact between the parties involved in the agreement or place any new obligation on an adoptive parent.

 


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      Sec. 9.  NRS 127.005 is hereby amended to read as follows:

      127.005  The provisions of NRS 127.010 to 127.186, inclusive, and sections 3 to 8, inclusive, of this act govern the adoption of minor children, and the provisions of NRS 127.190, 127.200 and 127.210 and the provisions of NRS 127.010 to 127.186, inclusive, where not inconsistent with the provisions of NRS 127.190, 127.200 and 127.210, govern the adoption of adults.

      Sec. 10.  NRS 127.140 is hereby amended to read as follows:

      127.140  1.  All hearings held in proceedings under this chapter are confidential and must be held in closed court, without admittance of any person other than the petitioners, their witnesses, the director of an agency, or their authorized representatives, attorneys and persons entitled to notice by this chapter, except by order of the court.

      2.  The files and records of the court in adoption proceedings are not open to inspection by any person except [upon] :

      (a) Upon an order of the court expressly so permitting pursuant to a petition setting forth the reasons therefor [or if] ;

      (b) If a natural parent and the child are eligible to receive information from the State Register for Adoptions [.] ; or

      (c) As provided pursuant to subsections 3, 4 and 5.

      3.  An adoptive parent who intends to file a petition pursuant to section 6 or 8 of this act to enforce, modify or terminate an agreement that provides for postadoptive contact may inspect only the portions of the files and records of the court concerning the agreement for postadoptive contact.

      4.  A natural parent who intends to file a petition pursuant to section 6 of this act to prove the existence of or to enforce an agreement that provides for postadoptive contact or to file an action pursuant to section 12 of this act may inspect only the portions of the files or records of the court concerning the agreement for postadoptive contact.

      5.  The portions of the files and records which are made available for inspection by an adoptive parent or natural parent pursuant to subsection 3 or 4 must not include any confidential information, including, without limitation, any information that identifies or would lead to the identification of a natural parent if the identity of the natural parent is not included in the agreement for postadoptive contact.

      Sec. 11.  NRS 127.171 is hereby amended to read as follows:

      127.171  1.  [In] Except as otherwise provided in sections 3 to 8, inclusive, of this act, in a proceeding for the adoption of a child, the court may grant a reasonable right to visit to certain relatives of the child only if a similar right had been granted previously pursuant to NRS 125C.050.

      2.  The court may not grant a right to visit the child to any person other than as specified in subsection 1.

      Sec. 12.  Chapter 41 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A natural parent of an adopted child who has entered into an agreement that provides for postadoptive contact pursuant to section 3 of this act may bring a civil action against a person if:

      (a) The person knowingly provided false information in response to a question asked by a court pursuant to section 5 of this act; and

 


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      (b) The provision of false information caused the court not to incorporate the agreement that provides for postadoptive contact in the order or decree of adoption pursuant to section 5 of this act.

      2.  If a person is liable to a natural parent of an adopted child pursuant to subsection 1, the natural parent may recover his actual damages, costs, reasonable attorney’s fees and any punitive damages that the facts may warrant.

      3.  The liability imposed by this section is in addition to any other liability imposed by law.

________

 

CHAPTER 414, AB 384

Assembly Bill No. 384–Assemblymen Buckley, Giunchigliani, Oceguera, Parks and Arberry Jr.

 

Joint Sponsors: Senators Care and Horsford

 

CHAPTER 414

 

AN ACT relating to financial services; revising the standards and procedures for the licensing and regulation of check-cashing services, deferred deposit loan services, certain short-term loan services and title loan services; repealing provisions governing check-cashing services and deferred deposit loans to conform with the revised standards and procedures; revising provisions relating to certain unfair lending practices; providing remedies and administrative penalties; and providing other matters properly relating thereto.

 

[Approved: June 14, 2005]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Title 52 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 74, inclusive, of this act.

      Sec. 2.  As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 2.5 to 21.5, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 2.5.  1.  “Automated loan machine” means any machine or other device, regardless of the name given to it or the technology used, that:

      (a) Is automated;

      (b) Is designed or intended to allow a customer, without any additional assistance from another person, to receive or attempt to receive a deferred deposit loan or short-term loan through the machine or other device; and

      (c) Is set up, installed, operated or maintained by or on behalf of the person making the loan or any agent, affiliate or subsidiary of the person.

      2.  The term does not include any machine or other device used directly by a customer to access the Internet unless the machine or other device is made available to the customer by the person making the loan or any agent, affiliate or subsidiary of the person.

 


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      Sec. 3.  “Cashing” means providing currency or a negotiable instrument in exchange for a check.

      Sec. 4.  1.  “Check” means:

      (a) A draft, other than a documentary draft, payable on demand and drawn on a bank; or

      (b) A cashier’s check or teller’s check.

      2.  An instrument may be a check even though it is described on its face by another term, such as “money order.”

      Sec. 5.  “Check-cashing service” means any person engaged in the business of cashing checks for a fee, service charge or other consideration.

      Sec. 6.  “Commissioner” means the Commissioner of Financial Institutions.

      Sec. 7.  “Customer” means any person who receives or attempts to receive check-cashing services, deferred deposit loan services, short-term loan services or title loan services from another person.

      Sec. 8.  1.  “Default” means the failure of a customer to:

      (a) Make a scheduled payment on a loan on or before the due date for the payment under the terms of a lawful loan agreement and any grace period that complies with the provisions of section 23 of this act or under the terms of any lawful extension or repayment plan relating to the loan and any grace period that complies with the provisions of section 23 of this act; or

      (b) Pay a loan in full on or before:

             (1) The expiration of the initial loan period as set forth in a lawful loan agreement and any grace period that complies with the provisions of section 23 of this act; or

             (2) The due date of any lawful extension or repayment plan relating to the loan and any grace period that complies with the provisions of section 23 of this act, provided that the due date of the extension or repayment plan does not violate the provisions of this chapter.

      2.  A default occurs on the day immediately following the date of the customer’s failure to perform as described in subsection 1.

      Sec. 9.  “Deferred deposit loan” means a transaction in which, pursuant to a loan agreement:

      1.  A customer tenders to another person:

      (a) A personal check drawn upon the account of the customer; or

      (b) Written authorization for an electronic transfer of money for a specified amount from the account of the customer; and

      2.  The other person:

      (a) Provides to the customer an amount of money that is equal to the face value of the check or the amount specified in the written authorization for an electronic transfer of money, less any fee charged for the transaction; and

      (b) Agrees, for a specified period, not to cash the check or execute an electronic transfer of money for the amount specified in the written authorization.

      Sec. 10.  “Deferred deposit loan service” means any person engaged in the business of making deferred deposit loans for a fee, service charge or other consideration.

      Sec. 11.  “Electronic transfer of money” means any transfer of money, other than a transaction initiated by a check or other similar instrument, that is initiated through an electronic terminal, telephone, computer or magnetic tape for the purpose of ordering, instructing or authorizing a financial institution to debit or credit an account.

 


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computer or magnetic tape for the purpose of ordering, instructing or authorizing a financial institution to debit or credit an account.

      Sec. 12.  1.  “Extension” means any extension or rollover of a loan beyond the date on which the loan is required to be paid in full under the original terms of the loan agreement, regardless of the name given to the extension or rollover.

      2.  The term does not include a grace period.

      Sec. 13.  “Grace period” means any period of deferment offered gratuitously by a licensee to a customer if the licensee complies with the provisions of section 23 of this act.

      Sec. 14.  “Licensee” means any person who has been issued one or more licenses to operate a check-cashing service, deferred deposit loan service, short-term loan service or title loan service pursuant to the provisions of this chapter.

      Sec. 15.  “Loan” means any deferred deposit loan, short-term loan or title loan, or any extension or repayment plan relating to such a loan, made at any location or through any method, including, without limitation, at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means.

      Sec. 15.5.  “Refund anticipation loan” means a loan offered or made to a taxpayer by a lender or through a facilitator based on the taxpayer’s anticipated federal income tax refund.

      Sec. 16.  “Regulation Z” means the federal regulations, as amended, 12 C.F.R. Part 226, adopted pursuant to the Truth in Lending Act and commonly known as Regulation Z.

      Sec. 17.  1.  “Short-term loan” means a loan made to a customer pursuant to a loan agreement which, under its original terms:

      (a) Charges an annual percentage rate of more than 40 percent; and

      (b) Requires the loan to be paid in full in less than 1 year.

      2.  The term does not include:

      (a) A deferred deposit loan;

      (b) A title loan; or

      (c) A refund anticipation loan.

      Sec. 18.  “Short-term loan service” means any person engaged in the business of providing short-term loans for a fee, service charge or other consideration.

      Sec. 19.  1.  “Title loan” means a loan made to a customer pursuant to a loan agreement which, under its original terms:

      (a) Charges an annual percentage rate of more than 35 percent; and

      (b) Requires the customer to secure the loan by giving possession of the title to a vehicle legally owned by the customer to the person making the loan, or to any agent, affiliate or subsidiary of the person, whether or not the person making the loan or taking possession of the title perfects a security interest in the vehicle by having the person’s name noted on the title as a lienholder.

      2.  The term does not include:

      (a) A loan which creates a purchase-money security interest in a vehicle or the refinancing of any such loan; or

      (b) Any other loan for which a vehicle is used as security or collateral if the person making the loan, or any agent, affiliate or subsidiary of the person, does not take possession of the title.

 


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      Sec. 20.  “Title loan service” means any person engaged in the business of providing title loans for a fee, service charge or other consideration.

      Sec. 21.  “Title to a vehicle” or “title” means a certificate of title or ownership issued pursuant to the laws of this State that identifies the legal owner of a vehicle or any similar document issued pursuant to the laws of another jurisdiction.

      Sec. 21.2.  “Truth in Lending Act” means the federal Truth in Lending Act, as amended, 15 U.S.C. §§ 1601 et seq.

      Sec. 21.5.  1.  “Vehicle” means any vehicle, whether or not self-propelled, that is designed or intended for land transportation if the legal owner of the vehicle is required to have a title.

      2.  The term includes, without limitation:

      (a) Passenger vehicles;

      (b) Recreational vehicles; and

      (c) House trailers and travel trailers.

      3.  The term does not include:

      (a) Farm vehicles;

      (b) Vehicles of a common or contract carrier;

      (c) Commercial vehicles;

      (d) Construction vehicles;

      (e) Military vehicles;

      (f) Vehicles used exclusively upon stationary rails or tracks; or

      (g) Any other vehicles which are similar in nature to the vehicles listed in paragraphs (a) to (f), inclusive, and which the Commissioner, by regulation, excludes from the definition of “vehicle.”

      Sec. 21.8.  1.  As used in this chapter, unless the context otherwise requires, the following terms have the meanings ascribed to them in the Truth in Lending Act and Regulation Z:

      (a) “Amount financed.”

      (b) “Annual percentage rate.”

      (c) “Finance charge.”

      (d) “Payment schedule.”

      (e) “Total of payments.”

      2.  For the purposes of this chapter, proper calculation of the amount financed, annual percentage rate and finance charge for a loan must be made in accordance with the Truth in Lending Act and Regulation Z.

      Sec. 22.  The provisions of this chapter apply to any person who seeks to evade its application by any device, subterfuge or pretense, including, without limitation, calling a loan by any other name or using any agents, affiliates or subsidiaries in an attempt to avoid the application of the provisions of this chapter.

      Sec. 23.  The provisions of this chapter do not prohibit a licensee from offering a customer a grace period on the repayment of a loan or an extension of a loan, except that the licensee shall not charge the customer:

      1.  Any fees for granting such a grace period; or

      2.  Any additional fees or additional interest on the outstanding loan during such a grace period.

      Sec. 24.  1.  The provisions of this chapter must be interpreted so as to effectuate their general purpose to provide for, to the extent practicable, uniform regulation of the loans and transactions that are subject to the provisions of this chapter.

 


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      2.  If there is a conflict between the provisions of this chapter and the provisions of any other general law regulating loans and similar transactions, the provisions of this chapter control.

      Sec. 25.  This chapter or any part thereof may be modified, amended or repealed by the Legislature so as to effect a cancellation or alteration of any license or right of a licensee under this chapter, provided that such cancellation or alteration shall not impair or affect the obligation of any preexisting lawful loan agreement between any licensee and any customer.

      Sec. 26.  Any loan lawfully made outside this State as permitted by the laws of the state in which the loan was made may be collected or otherwise enforced in this State in accordance with its terms.

      Sec. 27.  The provisions of this chapter do not apply to:

      1.  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 bankers, thrift companies or insurance companies.

      2.  A person who is primarily engaged in the retail sale of goods or services who:

      (a) 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

      (b) Does not hold himself out as a check-cashing service.

      3.  A person while performing any act authorized by a license issued pursuant to chapter 671 of NRS.

      4.  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.

      5.  A person who is exclusively engaged in a check-cashing service relating to out-of-state checks.

      6.  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.

      7.  A pawnbroker, unless the pawnbroker operates a check-cashing service, deferred deposit loan service, short-term loan service or title loan service.

      8.  A real estate investment trust, as defined in 26 U.S.C. § 856.

      9.  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.

      10.  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.

      11.  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.

      12.  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.

      13.  A person who provides money for investment in loans secured by a lien on real property, on his own account.

 


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      14.  A seller of real property who offers credit secured by a mortgage of the property sold.

      15.  A person who makes a refund anticipation loan, unless the person operates a check-cashing service, deferred deposit loan service, short-term loan service or title loan service.

      Sec. 28.  1.  The Commissioner may establish by regulation the fees that a licensee who provides check-cashing services may impose for cashing checks.

      2.  The Commissioner shall adopt any other regulations as are necessary to carry out the provisions of this chapter.

      Sec. 29.  1.  A person, including, without limitation, a person licensed pursuant to chapter 675 of NRS, shall not operate a check-cashing service, deferred deposit loan service, short-term loan service or title loan service unless the person is licensed with the Commissioner pursuant to the provisions of this chapter.

      2.  A person must have a license regardless of the location or method that the person uses to operate such a service, including, without limitation, at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the person shall not operate such a service through any automated loan machine in violation of the provisions of subsection 3.

      3.  A person shall not operate a deferred deposit loan service or short-term loan service through any automated loan machine, and the Commissioner shall not issue a license that authorizes the licensee to conduct business through any automated loan machine.

      Sec. 30.  1.  A licensee shall post in a conspicuous place in every location at which he conducts business under his license:

      (a) A notice that states the fees he charges for providing check-cashing services, deferred deposit loan services, short-term loan services or title loan services.

      (b) A notice that states a toll-free telephone number to the Office of the Commissioner to handle concerns or complaints of customers.

Ê The Commissioner shall adopt regulations prescribing the form and size of the notices required by this subsection.

      2.  If a licensee offers loans to customers at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except for an automated loan machine prohibited by section 29 of this act, the licensee shall, as appropriate to the location or method for making the loan, post in a conspicuous place where customers will see it before they enter into a loan, or disclose in an open and obvious manner to customers before they enter into a loan, a notice that states:

      (a) The types of loans the licensee offers and the fees he charges for making each type of loan; and

      (b) A list of the states where the licensee is licensed or authorized to conduct business from outside this State with customers located in this State.

      3.  A licensee who provides check-cashing services shall give written notice to each customer of the fees he charges for cashing checks. The customer must sign the notice before the licensee provides the check-cashing service.

 


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      Sec. 31.  1.  Before making any loan to a customer, a licensee shall provide to the customer a written loan agreement which may be kept by the customer and which must be written in:

      (a) English, if the transaction is conducted in English; or

      (b) Spanish, if the transaction is conducted in Spanish.

      2.  The loan agreement must include, without limitation, the following information:

      (a) The name and address of the licensee and the customer;

      (b) The nature of the security for the loan, if any;

      (c) The date and amount of the loan, amount financed, annual percentage rate, finance charge, total of payments, payment schedule and a description and the amount of every fee charged, regardless of the name given to the fee and regardless of whether the fee is required to be included in the finance charge under the Truth in Lending Act and Regulation Z;

      (d) A disclosure of the right of the customer to rescind a loan pursuant to the provisions of this chapter;

      (e) A disclosure of the right of the customer to pay his loan in full or in part with no additional charge pursuant to the provisions of this chapter;

      (f) A disclosure stating that, if the customer defaults on the loan, the customer has the opportunity within 30 days of the date of default to enter into a repayment plan with a term of at least 90 days, and that the licensee must offer the repayment plan to the customer before the licensee commences any civil action or process of alternative dispute resolution or, if appropriate for the loan, before the licensee repossesses a vehicle; and

      (g) Any other disclosures required under the Truth in Lending Act and Regulation Z or under any other applicable federal or state statute or regulation.

      Sec. 32.  1.  If a customer defaults on a loan, the licensee may collect the debt owed to the licensee only in a professional, fair and lawful manner. When collecting such a debt, the licensee must act in accordance with and must not violate sections 803 to 812, inclusive, of the federal Fair Debt Collection Practices Act, as amended, 15 U.S.C. §§ 1692a to 1692j, inclusive, even if the licensee is not otherwise subject to the provisions of that Act.

      2.  If a licensee commences a civil action against a customer to collect a debt, the court may award:

      (a) Court costs;

      (b) Costs of service of process, except that the costs must not exceed the amount of the fees charged by the sheriff or constable for service of process in the county where the action was brought or, if the customer was not served in that county, in the county where the customer was served; and

      (c) Reasonable attorney’s fees. In determining the amount of the attorney’s fees and whether they are reasonable, the court shall consider the complexity of the case, the amount of the debt and whether the licensee could have used less costly means to collect the debt.

      3.  Notwithstanding any provision of NRS 66.010 to the contrary, if:

      (a) A licensee intends to commence a civil action in a justice’s court against a customer to collect a debt; and

      (b) The customer resides in the county where the loan was made,

Ê the licensee is required to commence the civil action in the justice’s court for the township where the loan was made unless, after the date of default and before the licensee commences the civil action, the customer signs an affidavit agreeing to try the action in another justice’s court having jurisdiction over the subject matter and the parties.

 


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default and before the licensee commences the civil action, the customer signs an affidavit agreeing to try the action in another justice’s court having jurisdiction over the subject matter and the parties. A licensee shall not, directly or indirectly, require, intimidate, threaten or coerce a customer to sign such an affidavit.

      Sec. 33.  1.  If a customer is called to active duty in the military, a licensee shall:

      (a) Defer for the duration of the active duty all collection activity against the customer and his property, including, without limitation, any community property in which the customer has an interest; and

      (b) Honor the terms of any repayment plan between the licensee and customer, including, without limitation, any repayment plan negotiated through military counselors or third-party credit counselors.

      2.  When collecting any defaulted loan, a licensee shall not:

      (a) Garnish or threaten to garnish any wages or salary paid to a customer for active service in the military; or

      (b) Contact or threaten to contact the military chain of command of a customer in an effort to collect the defaulted loan.

      3.  As used in this section, “military” means the Armed Forces of the United States, a reserve component thereof or the National Guard.

      Sec. 33.5.  1.  A licensee shall not:

      (a) Make a deferred deposit loan that exceeds 25 percent of the expected gross monthly income of the customer when the loan is made; or

      (b) Make a short-term loan which, under the terms of the loan agreement, requires any monthly payment that exceeds 25 percent of the expected gross monthly income of the customer.

      2.  A licensee is not in violation of the provisions of this section if the customer presents evidence of his gross monthly income to the licensee and represents to the licensee in writing that:

      (a) For a deferred deposit loan, the loan does not exceed 25 percent of his expected gross monthly income when the loan is made; or

      (b) For a short-term loan, the monthly payment required under the terms of the loan agreement does not exceed 25 percent of his expected gross monthly income.

      Sec. 34.  A licensee shall not make more than one deferred deposit loan or short-term loan to the same customer at one time or before any outstanding balance is paid in full on an existing loan made by that licensee to the customer unless:

      1.  The customer is seeking multiple loans that do not exceed the limits set forth in section 33.5 of this act;

      2.  The licensee charges the same or a lower annual percentage rate for any additional loans as he charged for the initial loan;

      3.  Except for that part of the finance charge which consists of interest only, the licensee does not impose any other charge or fee to initiate any additional loans, except that a licensee who makes deferred deposit loans or short-term loans in accordance with the provisions of subsection 2 of section 43 of this act may charge a reasonable fee for preparing documents in an amount that does not exceed $50; and

      4.  If the additional loans are deferred deposit loans and the customer provides one or more additional checks that are not paid upon presentment, the licensee does not charge any fees to the customer pursuant to section 45 of this act, except for the fees allowed pursuant to that section for the first check that is not paid upon presentment.

 


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pursuant to section 45 of this act, except for the fees allowed pursuant to that section for the first check that is not paid upon presentment.

      Sec. 35.  A licensee shall not:

      1.  Accept:

      (a) Collateral as security for a loan, except that a title to a vehicle may be accepted as security for a title loan.

      (b) An assignment of wages, salary, commissions or other compensation for services, whether earned or to be earned, as security for a loan.

      (c) A check as security for a short-term loan or title loan.

      (d) More than one check or written authorization for an electronic transfer of money for each deferred deposit loan.

      (e) A check or written authorization for an electronic transfer of money for any deferred deposit loan in an amount which exceeds the total of payments set forth in the disclosure statement required by the Truth in Lending Act and Regulation Z that is provided to the customer.

      2.  Take any note or promise to pay which does not disclose the date and amount of the loan, amount financed, annual percentage rate, finance charge, total of payments, payment schedule and a description and the amount of every fee charged, regardless of the name given to the fee and regardless of whether the fee is required to be included in the finance charge under the Truth in Lending Act and Regulation Z.

      3.  Take any instrument, including a check or written authorization for an electronic transfer of money, in which blanks are left to be filled in after the loan is made.

      4.  Make any transaction contingent on the purchase of insurance or any other goods or services or sell any insurance to the customer with the loan.

      5.  Fail to comply with a payment plan which is negotiated and agreed to by the licensee and customer.

      6.  Charge any fee to cash a check representing the proceeds of a loan made by the licensee or any agent, affiliate or subsidiary of the licensee.

      Sec. 36.  A licensee shall not:

      1.  Use or threaten to use the criminal process in this State or any other state, or any civil process not available to creditors generally, to collect on a loan made to a customer.

      2.  Commence a civil action or any process of alternative dispute resolution or repossess a vehicle before the customer defaults under the original term of a loan agreement or before the customer defaults under any repayment plan, extension or grace period negotiated and agreed to by the licensee and customer, unless otherwise authorized pursuant to this chapter.

      3.  Take any confession of judgment or any power of attorney running to himself or to any third person to confess judgment or to appear for the customer in a judicial proceeding.

      4.  Include in any written agreement:

      (a) A promise by the customer to hold the licensee harmless;

      (b) A confession of judgment by the customer;

      (c) An assignment or order for the payment of wages or other compensation due the customer; or        (d) A waiver of any claim or defense arising out of the loan agreement or a waiver of any provision of this chapter.

 


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      (d) A waiver of any claim or defense arising out of the loan agreement or a waiver of any provision of this chapter. The provisions of this paragraph do not apply to the extent preempted by federal law.

      5.  Engage in any deceptive trade practice, as defined in chapter 598 of NRS, including, without limitation, making a false representation.

      6.  Advertise or permit to be advertised in any manner any false, misleading or deceptive statement or representation with regard to the rates, terms or conditions for loans.

      7.  Use or attempt to use any agent, affiliate or subsidiary to avoid the requirements or prohibitions of this chapter.

      Sec. 36.5.  Notwithstanding any other provision of this chapter to the contrary:

      1.  The original term of a title loan must not exceed 30 days.

      2.  The title loan may be extended for not more than six additional periods of extension, with each such period not to exceed 30 days, if:

      (a) Any interest or charges accrued during the original term of the title loan or any period of extension of the title loan are not capitalized or added to the principal amount of the title loan during any subsequent period of extension;

      (b) The annual percentage rate charged on the title loan during any period of extension is not more than the annual percentage rate charged on the title loan during the original term; and

      (c) No additional origination fees, set-up fees, collection fees, transaction fees, negotiation fees, handling fees, processing fees, late fees, default fees or any other fees, regardless of the name given to the fees, are charged in connection with any extension of the title loan.

      Sec. 37.  A licensee who makes title loans shall not:

      1.  Make a title loan that exceeds the fair market value of the vehicle securing the title loan.

      2.  Make a title loan without regard to the ability of the customer seeking the title loan to repay the title loan, including the customer’s current and expected income, obligations and employment.

      3.  Make a title loan without requiring the customer to sign an affidavit which states that:

      (a) The customer has provided the licensee with true and correct information concerning the customer’s income, obligations, employment and ownership of the vehicle; and

      (b) The customer has the ability to repay the title loan.

      Sec. 38.  1.  Except where in conflict with the provisions of this section, the provisions of chapter 104 of NRS apply to any title loan between a licensee and a customer.

      2.  Except as otherwise provided in this section, if a customer defaults on a title loan, or on any extension or repayment plan relating to the title loan, the sole remedy of the licensee who made the title loan is to seek repossession and sale of the vehicle which the customer used to secure the title loan. The licensee may not pursue the customer personally for:

      (a) Payment of the loan, unless the licensee proves the customer prevented the repossession and sale of the vehicle by any means, including, without limitation, hiding the vehicle; or

      (b) Any deficiency after repossession and sale of the vehicle which the customer used to secure the title loan, unless the licensee proves the customer damaged or otherwise committed or permitted waste on the vehicle.

 


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vehicle. For the purposes of this paragraph, it shall not be deemed waste for the customer to continue to use the vehicle in the same manner it was used before he entered into the title loan.

      3.  If a vehicle is repossessed pursuant to this section:

      (a) By the licensee or his employees, the licensee shall make reasonably available to the customer any personal property in or upon the vehicle; or

      (b) By a third party acting on behalf of the licensee, the licensee shall instruct the third party to make reasonably available to the customer any personal property in or upon the vehicle.

      4.  If a customer uses fraud to secure a title loan or if the customer wrongfully transfers any interest in the vehicle to a third party before the title loan is repaid, the licensee may bring a civil action against the customer for any or all of the following relief:

      (a) The amount of the loan obligation, including, without limitation, the aggregate amount of the interest, charges and fees negotiated and agreed to by the licensee and customer as permitted under this chapter, less any prior payments made by the customer;

      (b) Reasonable attorney’s fees and costs; and

      (c) Any other legal or equitable relief that the court deems appropriate.

      5.  As used in this section, “fraud” means an intentional misrepresentation, deception or concealment of a material fact known to the customer with the intent to deprive the licensee of his rights or property or to otherwise injure the licensee. The term includes, without limitation, giving to a licensee as security for a title loan the title to a vehicle which does not belong to the customer.

      Sec. 39.  1.  A customer may rescind a loan on or before the close of business on the next day of business at the location where the loan was initiated. To rescind the loan, the customer must deliver to the licensee:

      (a) A sum of money equal to the face value of the loan, less any fee charged to the customer to initiate the loan; or

      (b) The original check, if any, which the licensee gave to the customer pursuant to the loan. Upon receipt of the original check, the licensee shall refund any fee charged to the customer to initiate the loan.

      2.  If a customer rescinds a loan pursuant to this section, the licensee:

      (a) Shall not charge the customer any fee for rescinding the loan; and

      (b) Upon receipt of the sum of money or check pursuant to subsection 1, shall give to the customer a receipt showing the account paid in full and:

             (1) If the customer gave to the licensee a check or a written authorization for an electronic transfer of money to initiate a deferred deposit loan, the check or written authorization stamped “void”;

             (2) If the customer gave to the licensee a promissory note to initiate a short-term loan, a copy of the promissory note stamped “void” or the receipt stamped “paid in full”; or

             (3) If the customer gave to the licensee a title to a vehicle to initiate the title loan, the title.

      Sec. 40.  1.  A customer may pay a loan, or any extension thereof, in full at any time, without an additional charge or fee, before the date his final payment on the loan, or any extension thereof, is due.

      2.  If a customer pays the loan in full, including all interest, charges and fees negotiated and agreed to by the licensee and customer as permitted under this chapter, the licensee shall:

 


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      (a) Give to the customer:

             (1) If the customer gave to the licensee a check or a written authorization for an electronic transfer of money to initiate a deferred deposit loan, the check or the written authorization stamped “void”;

             (2) If the customer gave to the licensee a promissory note to initiate a short-term loan, the promissory note stamped “void” or a receipt stamped “paid in full”; or

             (3) If the customer gave to the licensee a title to a vehicle to initiate a title loan, the title; and

      (b) Give to the customer a receipt with the following information:

             (1) The name and address of the licensee;

             (2) The identification number assigned to the loan agreement or other information that identifies the loan;

             (3) The date of the payment;

             (4) The amount paid;

             (5) An itemization of interest, charges and fees;

             (6) A statement that the loan is paid in full; and

             (7) If more than one loan made by the licensee to the customer was outstanding at the time the payment was made, a statement indicating to which loan the payment was applied.

      Sec. 41.  1.  A customer may make a partial payment on a loan, or any extension thereof, at any time without an additional charge or fee.

      2.  If a customer makes such a partial payment, the licensee shall give to the customer a receipt with the following information:

      (a) The name and address of the licensee;

      (b) The identification number assigned to the loan agreement or other information that identifies the loan;

      (c) The date of the payment;

      (d) The amount paid;

      (e) An itemization of interest, charges and fees;

      (f) The balance due on the loan; and

      (g) If more than one loan made by the licensee to the customer was outstanding at the time the payment was made, a statement indicating to which loan the payment was applied.

      Sec. 42.  1.  Before a licensee attempts to collect the outstanding balance on a loan in default by commencing any civil action or process of alternative dispute resolution or by repossessing a vehicle, the licensee shall offer the customer an opportunity to enter into a repayment plan. The licensee:

      (a) Is required to make the offer available to the customer for a period of at least 30 days after the date of default; and

      (b) Is not required to make such an offer more than once for each loan.

      2.  Not later than 15 days after the date of default, the licensee shall provide to the customer written notice of the opportunity to enter into a repayment plan. The written notice must:

      (a) Be in English, if the initial transaction was conducted in English, or in Spanish, if the initial transaction was conducted in Spanish;

      (b) State the date by which the customer must act to enter into a repayment plan;

      (c) Explain the procedures the customer must follow to enter into a repayment plan;

 


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      (d) If the licensee requires the customer to make an initial payment to enter into a repayment plan, explain the requirement and state the amount of the initial payment and the date the initial payment must be made;

      (e) State that the customer has the opportunity to enter into a repayment plan with a term of at least 90 days after the date of default; and

      (f) Include the following amounts:

             (1) The total of payments or the remaining balance on the original loan;

             (2) Any payments made on the loan;

             (3) Any charges added to the loan amount allowed pursuant to the provisions of this chapter; and

             (4) The total amount due if the customer enters into a repayment plan.

      3.  Under the terms of any repayment plan pursuant to this section:

      (a) The customer must enter into the repayment plan not later than 30 days after the date of default, unless the licensee allows a longer period;

      (b) The licensee must allow the period for repayment to extend at least 90 days after the date of default, unless the customer agrees to a shorter term;

      (c) The licensee may require the customer to make an initial payment of not more than 20 percent of the total amount due under the terms of the repayment plan;

      (d) For a deferred deposit loan:

             (1) The licensee may require a customer to provide, as security, one or more checks or written authorizations for an electronic transfer of money which equal the total amount due under the terms of the repayment plan;

             (2) The licensee shall, if the customer makes a payment in the amount of a check or written authorization taken as security for that payment, return to the customer the check or written authorization stamped “void” or destroy the check or written authorization; and

             (3) The licensee shall not charge any fee to the customer pursuant to section 45 of this act for a check which is provided as security during the repayment plan and which is not paid upon presentment if, in connection with that loan, the licensee has previously charged at least one such fee.

      4.  If the licensee and customer enter into a repayment plan pursuant to this section, the licensee shall honor the terms of the repayment plan, and the licensee shall not:

      (a) Except as otherwise provided by this chapter, charge any other amount to a customer, including, without limitation, any amount or charge payable directly or indirectly by the customer and imposed directly or indirectly by the licensee as an incident to or as a condition of entering into a repayment plan. Such an amount includes, without limitation:

             (1) Any interest, regardless of the name given to the interest, other than the interest charged pursuant to the original loan agreement at a rate which does not exceed the annual percentage rate charged during the term of the original loan agreement; or

             (2) Any origination fees, set-up fees, collection fees, transaction fees, negotiation fees, handling fees, processing fees, late fees, default fees or any other fees, regardless of the name given to the fee;

      (b) Except as otherwise provided in this section, accept any additional security or collateral from the customer to enter into the repayment plan;

 


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      (c) Sell to the customer any insurance or require the customer to purchase insurance or any other goods or services to enter into the repayment plan;

      (d) Make any other loan to the customer, unless the customer is seeking multiple loans that do not exceed the limit set forth in section 33.5 of this act;

      (e) During the term of the repayment plan, attempt to collect the outstanding balance by commencing any civil action or process of alternative dispute resolution or by repossessing a vehicle, unless the customer defaults on the repayment plan; or

      (f) Attempt to collect an amount that is greater than the amount owed under the terms of the repayment plan.

      5.  If the licensee and customer enter into a repayment plan pursuant to this section, the licensee shall:

      (a) Prepare a written agreement establishing the repayment plan; and

      (b) Give the customer a copy of the written agreement. The written agreement must:

             (1) Be signed by the licensee and customer; and

             (2) Contain all of the terms of the repayment plan, including, without limitation, the total amount due under the terms of the repayment plan.

      6.  Each time a customer makes a payment pursuant to a repayment plan, the licensee shall give to the customer a receipt with the following information:

      (a) The name and address of the licensee;

      (b) The identification number assigned to the loan agreement or other information that identifies the loan;

      (c) The date of the payment;

      (d) The amount paid;

      (e) The balance due on the loan or, when the customer makes the final payment, a statement that the loan is paid in full; and

      (f) If more than one loan made by the licensee to the customer was outstanding at the time the payment was made, a statement indicating to which loan the payment was applied.

      7.  If the customer defaults on the repayment plan, the licensee may, to collect the outstanding balance, commence any civil action or process of alternative dispute resolution or repossess a vehicle as otherwise authorized pursuant to this chapter.

      Sec. 43.  1.  Except as otherwise provided in subsection 2, if a customer agrees to establish or extend the period for the repayment, renewal, refinancing or consolidation of an outstanding loan by using the proceeds of a new deferred deposit loan or short-term loan to pay the balance of the outstanding loan, the licensee shall not establish or extend such a period beyond 60 days after the expiration of the initial loan period.

      2.  This section does not apply to a deferred deposit loan or short-term loan if the licensee:

      (a) Makes the deferred deposit loan or short-term loan to a customer pursuant to a loan agreement which, under its original terms:

             (1) Charges an annual percentage rate of less than 200 percent;

             (2) Requires the customer to make a payment on the loan at least once every 30 days;

 


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             (3) Requires the loan to be paid in full in not less than 150 days; and

             (4) Provides that interest does not accrue on the loan at the annual percentage rate set forth in the loan agreement after the date of maturity of the loan;

      (b) Performs a credit check of the customer with a major consumer reporting agency before making the loan;

      (c) Reports information relating to the loan experience of the customer to a major consumer reporting agency;

      (d) Gives the customer the right to rescind the deferred deposit loan or short-term loan within 5 days after the loan is made without charging the customer any fee for rescinding the loan;

      (e) Participates in good faith with a counseling agency that is:

             (1) Accredited by the Council on Accreditation for Services for Families and Children, Inc., or its successor organization; and

             (2) A member of the National Foundation for Credit Counseling, or its successor organization; and

      (f) Does not commence any civil action or process of alternative dispute resolution on a defaulted loan or any extension or repayment plan thereof.

      Sec. 44.  1.  Except as otherwise provided in section 36.5 of this act, if a customer defaults on a loan or on any extension or repayment plan relating to the loan, whichever is later, the licensee may collect only the following amounts from the customer, less all payments made before and after default:

      (a) The principal amount of the loan.

      (b) The interest accrued before the expiration of the initial loan period at the annual percentage rate set forth in the disclosure statement required by the Truth in Lending Act and Regulation Z that is provided to the customer. If there is an extension relating to the loan, the licensee may charge and collect interest pursuant to this paragraph for a period not to exceed 60 days after the expiration of the initial loan period, unless otherwise allowed by section 43 of this act.

      (c) The interest accrued after the expiration of the initial loan period or after any extension or repayment plan that is allowed pursuant to this chapter, whichever is later, at an annual percentage rate not to exceed the prime rate at the largest bank in Nevada, as ascertained by the Commissioner, on January 1 or July 1, as the case may be, immediately preceding the expiration of the initial loan period, plus 10 percent. The licensee may charge and collect interest pursuant to this paragraph for a period not to exceed 90 days. After that period, the licensee shall not charge or collect any interest on the loan.

      (d) Any fees allowed pursuant to section 45 of this act for a check that is not paid upon presentment because the account of the customer contains insufficient funds or has been closed.

      2.  Except for the interest and fees permitted pursuant to subsection 1 and any other charges expressly permitted pursuant to sections 34, 36.5 and 42 of this act, the licensee shall not charge any other amount to a customer, including, without limitation, any amount or charge payable directly or indirectly by the customer and imposed directly or indirectly by the licensee as an incident to or as a condition of the extension of the period for the payment of the loan or the extension of credit.

 


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period for the payment of the loan or the extension of credit. Such an amount includes, without limitation:

      (a) Any interest, other than the interest charged pursuant to subsection 1, regardless of the name given to the interest; or

      (b) Any origination fees, set-up fees, collection fees, transaction fees, negotiation fees, handling fees, processing fees, late fees, default fees or any other fees, regardless of the name given to the fee.

      Sec. 45.  1.  A licensee may collect a fee of not more than $25 if a check is not paid upon presentment because the account of the customer contains insufficient funds or has been closed.

      2.  If the account of the customer contains insufficient funds, the licensee may collect only two fees of $25 each regardless of the number of times the check is presented for payment.

      3.  If the account of the customer has been closed, the licensee may collect only one fee of $25 regardless of the number of times the check is presented for payment.

      4.  A customer is not liable for damages pursuant to NRS 41.620 or to criminal prosecution for a violation of chapter 205 of NRS unless the customer acted with criminal intent.

      Sec. 46.  In addition to any other provision in this chapter, each time a customer makes a payment to a licensee, the licensee shall give to the customer a receipt with the following information:

      1.  The name and address of the licensee;

      2.  The identification number assigned to the loan agreement or other information that identifies the loan;

      3.  The date of the payment;

      4.  The amount paid;

      5.  The balance due on the loan or, when the customer makes a final payment, a statement that the loan is paid in full; and

      6.  If more than one loan made by the licensee to the customer was outstanding at the time the payment was made, a statement indicating to which loan the payment was applied.

      Sec. 47.  1.  A person shall not act as an agent for or assist a licensee in the making of a loan unless the licensee complies with all applicable federal and state laws, regulations and guidelines.

      2.  The provisions of this section do not apply to the agent or assistant to a state or federally chartered bank, thrift company, savings and loan association or industrial loan company if the state or federally chartered bank, thrift company, savings and loan association or industrial loan company:

      (a) Initially advances the loan proceeds to the customer; and

      (b) Does not sell, assign or transfer a preponderant economic interest in the loan to the agent or assistant or an affiliate or subsidiary of the state or federally chartered bank, thrift company, savings and loan association or industrial loan company, unless selling, assigning or transferring a preponderant economic interest is expressly permitted by the primary regulator of the state or federally chartered bank, thrift company, savings and loan association or industrial loan company.

      3.  If a licensee acts as an agent for or assists a state or federally chartered bank, thrift company, savings and loan association or industrial loan company in the making of a loan and the licensee can show that the standards set forth in subsection 2 are satisfied, the licensee must comply with all other provisions in this chapter to the extent they are not preempted by other state or federal law.

 


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with all other provisions in this chapter to the extent they are not preempted by other state or federal law.

      Sec. 48.  1.  An application for a license pursuant to the provisions of this chapter must be made in writing, under oath and on a form prescribed by the Commissioner. The application must include:

      (a) If the applicant is a natural person, the name and address of the applicant.

      (b) If the applicant is a business entity, the name and address of each:

             (1) Partner;

             (2) Officer;

             (3) Director;

             (4) Manager or member who acts in a managerial capacity; and

             (5) Registered agent,

Ê of the business entity.

      (c) Such other information, as the Commissioner determines necessary, concerning the financial responsibility, background, experience and activities of the applicant and its:

             (1) Partners;

             (2) Officers;

             (3) Directors; and

             (4) Managers or members who act in a managerial capacity.

      (d) The address of each location at which the applicant proposes to do business under the license, including, without limitation, each location where the applicant will operate at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the applicant shall not propose to do business through any automated loan machine prohibited by section 29 of this act.

      (e) If the applicant is or intends to be licensed to provide more than one type of service pursuant to the provisions of this chapter, a statement of that intent and which services he provides or intends to provide.

      2.  Each application for a license must be accompanied by:

      (a) A nonrefundable application fee;

      (b) Such additional expenses incurred in the process of investigation as the Commissioner deems necessary; and

      (c) A fee of not less than $100 or more than $500, prorated on the basis of the licensing year.

Ê All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account for Financial Institutions created by NRS 232.545.

      3.  The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.

      4.  The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.

 


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      Sec. 49.  1.  Except as otherwise provided in section 50 of this act, each application for a license pursuant to the provisions of this chapter must be accompanied by a surety bond payable to the State of Nevada in the amount of $50,000 plus an additional $5,000 for each branch location at which the applicant proposes to do business under the license. Thereafter, each licensee shall maintain the surety bond so that the amount of the surety bond is $50,000 plus an additional $5,000 for each branch location at which the licensee does business under the license. The surety bond required by this section is for the use and benefit of any customer receiving the services of the licensee at any location at which the licensee does business under the license.

      2.  The bond must be in a form satisfactory to the Commissioner, issued by a bonding company authorized to do business in this State and must secure the faithful performance of the obligations of the licensee respecting the provision of the services.

      3.  A licensee shall, within 10 days after the commencement of any action or notice of entry of any judgment against him by any creditor or claimant arising out of business regulated by this chapter give notice thereof to the Commissioner by certified mail with details sufficient to identify the action or judgment. The surety shall, within 10 days after it pays any claim or judgment to a creditor or claimant, give notice thereof to the Commissioner by certified mail with details sufficient to identify the creditor or claimant and the claim or judgment so paid.

      4.  Whenever the principal sum of the bond is reduced by recoveries or payments thereon, the licensee shall furnish:

      (a) A new or additional bond so that the total or aggregate principal sum of the bonds equals the sum required pursuant to subsection 1; or

      (b) An endorsement, duly executed by the surety, reinstating the bond to the required principal sum.

      5.  The liability of the surety on the bond to a creditor or claimant is not affected by any misrepresentation, breach of warranty, failure to pay a premium or other act or omission of the licensee, or by any insolvency or bankruptcy of the licensee.

      6.  The liability of the surety continues as to all transactions entered into in good faith by the creditors and claimants with the agents of the licensee within 30 days after:

      (a) The death of the licensee or the dissolution or liquidation of his business; or

      (b) The termination of the bond,

Ê whichever event occurs first.

      7.  A licensee or his surety shall not cancel or alter a bond except after notice to the Commissioner by certified mail. The cancellation or alteration is not effective until 10 days after receipt of the notice by the Commissioner. A cancellation or alteration does not affect any liability incurred or accrued on the bond before the expiration of the 30-day period designated in subsection 6.

      Sec. 50.  1.  In lieu of any surety bond, or any portion of the principal sum thereof as required pursuant to the provisions of this chapter, a licensee may deposit with the State Treasurer or with any bank, credit union or trust company authorized to do business in this State as the licensee may select, with the approval of the Commissioner:

      (a) Interest-bearing stocks;

 


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      (b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or

      (c) Any obligation of this State or any city, county, town, township, school district or other instrumentality of this State or guaranteed by this State,

Ê in an aggregate amount of, based upon principal amount or market value, whichever is lower, of not less than the amount of the required surety bond or portion thereof.

      2.  The securities must be held to secure the same obligation as would the surety bond, but the depositor may receive any interest or dividends and, with the approval of the Commissioner, substitute other suitable securities for those deposited.

      Sec. 51.  1.  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.

Ê The person must be allowed to choose between the provisions of paragraph (a) or (b) in complying with the provisions of this subsection.

      2.  This section applies, without limitation, to any office or other place of business located outside this State from which the applicant will conduct business in this State at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the applicant shall not conduct business in this State through any automated loan machine prohibited by section 29 of this act.

      Sec. 52.  1.  Upon the filing of the application and the payment of the fees required pursuant to section 48 of this act, the Commissioner shall investigate the facts concerning the application and the requirements provided for in sections 53.5 and 54 of this act.

      2.  The Commissioner may hold a hearing on the application at a time not less than 30 days after the date the application was filed or not more than 60 days after that date. The hearing must be held in the Office of the Commissioner or such other place as he may designate. Notice in writing of the hearing must be sent to the applicant and to any licensee to which a notice of the application has been given and to such other persons as the Commissioner may see fit, at least 10 days before the date set for the hearing.

      3.  The Commissioner shall make his order granting or denying the application within 10 days after the date of the closing of the hearing, unless the period is extended by written agreement between the applicant and the Commissioner.

 


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      Sec. 53.  If the Commissioner finds that any applicant does not possess the requirements specified in this chapter, he shall:

      1.  Enter an order denying the application and notify the applicant of the denial.

      2.  Within 10 days after the entry of such an order, file his findings and a summary of the evidence supporting those findings and deliver a copy thereof to the applicant.

      Sec. 53.5.  1.  In addition to any other requirements set forth in this chapter, each applicant must submit proof satisfactory to the Commissioner that the applicant:

      (a) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.

      (b) Has not made a false statement of material fact on the application for the license.

      (c) Has not committed any of the acts specified in subsection 2.

      (d) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.

      (e) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.

      (f) If the applicant is a natural person:

             (1) Is at least 21 years of age; and

             (2) Is a citizen of the United States or lawfully entitled to remain and work in the United States.

      2.  In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:

      (a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.

      (b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.

      (c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.

      (d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.

      Sec. 54.  1.  The Commissioner shall enter an order granting an application if he finds that:

      (a) The financial responsibility, experience, character and general fitness of the applicant are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honestly, fairly and efficiently; and

      (b) The applicant has satisfied the requirements set forth in section 53.5 of this act.

      2.  If the Commissioner grants an application, the Commissioner shall:

      (a) File his findings of fact together with the transcript of any hearing held pursuant to the provisions of this chapter; and

      (b) Issue to the licensee a license in such form and size as is prescribed by the Commissioner for each location at which the licensee proposes to do business.

 


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      3.  Each licensee shall prominently display his license at the location where he does business. The Commissioner may issue additional licenses to the same licensee for each branch location at which the licensee is authorized to operate under the license, including, without limitation, each branch location where the licensee is authorized to operate at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the Commissioner shall not issue any license that would authorize the licensee to operate through any automated loan machine prohibited by section 29 of this act. Nothing in this subsection requires a license for any place of business devoted to accounting, recordkeeping or administrative purposes only.

      4.  Each license must:

      (a) State the address at which the business is to be conducted; and

      (b) State fully:

             (1) The name and address of the licensee;

             (2) If the licensee is a copartnership or association, the names of its members; and

             (3) If the licensee is a corporation, the date and place of its incorporation.

      5.  A license is not transferable or assignable.

      Sec. 55.  1.  A license issued pursuant to the provisions of this chapter expires annually on the anniversary of the issuance of the license. A licensee must renew his license on or before the date on which the license expires by paying:

      (a) A renewal fee; and

      (b) An additional fee for each branch location at which the licensee is authorized to operate under the license.

      2.  A licensee who fails to renew his license within the time required by this section is not licensed pursuant to the provisions of this chapter.

      3.  The Commissioner may reinstate an expired license upon receipt of the renewal fee and a fee for reinstatement.

      4.  The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.

      Sec. 56.  1.  A licensee shall immediately notify the Commissioner of any change of control of the licensee.

      2.  A person who acquires stock, partnership or member interests resulting in a change of control of the licensee shall apply to the Commissioner for approval of the transfer. The application must contain information which shows that the requirements for obtaining a license pursuant to the provisions of this chapter will be satisfied after the change of control. If the Commissioner determines that those requirements will not be satisfied, he may deny the application and forbid the applicant from participating in the business of the licensee.

      3.  As used in this section, “change of control” means:

      (a) A transfer of voting stock, partnership or member interests which results in giving a person, directly or indirectly, the power to direct the management and policy of a licensee; or

      (b) A transfer of at least 25 percent of the outstanding voting stock, partnership or member interests of the licensee.

      Sec. 57.  1.  A licensee shall not conduct the business of making loans under any name, at any place or by any method, including, without limitation, at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except as permitted in the license or branch license issued to the licensee.

 


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limitation, at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except as permitted in the license or branch license issued to the licensee.

      2.  A licensee must obtain the approval of the Commissioner before using or changing a business name.

      3.  A licensee shall not:

      (a) Use any business name which is identical or similar to a business name used by another licensee under this chapter or which may mislead or confuse the public.

      (b) Use any printed forms which may mislead or confuse the public.

      Sec. 58.  1.  Except as otherwise provided in this section, a licensee may not conduct the business of making loans within any office, suite, room or place of business in which any other lending 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 in the same office or place of business as:

      (a) A mortgage broker if:

             (1) The licensee and the mortgage broker:

                   (I) Maintain separate accounts, books and records;

                   (II) Are subsidiaries of the same parent corporation; and

                   (III) 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 banker if:

             (1) The licensee and the mortgage banker:

                   (I) Maintain separate accounts, books and records;

                   (II) Are subsidiaries of the same parent corporation; and

                   (III) Maintain separate licenses; and

             (2) The mortgage banker is licensed by this State pursuant to chapter 645E of NRS and, if the mortgage 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.

      3.  If a pawnbroker is licensed to operate a check-cashing service, deferred deposit loan service, short-term loan service or title loan service, the pawnbroker may operate that service at the same office or place of business from which he conducts business as a pawnbroker pursuant to chapter 646 of NRS.

      Sec. 59.  1.  A licensee who wishes to change the address of an office or other place of business for which he has a license pursuant to the provisions of this chapter must, at least 10 days before changing the address, give written notice of the proposed change to the Commissioner.

      2.  Upon receipt of the proposed change of address pursuant to subsection 1, the Commissioner shall provide written approval of the change and the date of the approval.

      3.  If a licensee fails to provide notice as required pursuant to subsection 1, the Commissioner may impose a fine in an amount not to exceed $500.

 


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      4.  This section applies, without limitation, to any office or other place of business at which the licensee intends to operate a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the licensee shall not operate any automated loan machine prohibited by section 29 of this act.

      Sec. 60.  1.  Each licensee shall keep and use in his business such books and accounting records as are in accord with generally accepted accounting practices.

      2.  Each licensee shall maintain a separate written or electronic record or ledger card for the account of each customer and shall set forth separately the amount of cash advance and the total amount of interest and charges, but such a record may set forth precomputed declining balances based on the scheduled payments, without a separation of principal and charges.

      3.  Each licensee shall preserve all such books and accounting records for at least 2 years after making the final entry therein.

      4.  Each licensee who operates outside this State an office or other place of business that is licensed pursuant to provisions of 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.

Ê The licensee must be allowed to choose between the provisions of paragraph (a) or (b) in complying with this subsection.

      5.  As used in this section, “amount of cash advance” means the amount of cash or its equivalent actually received by a customer or paid out at his direction or in his behalf.

      Sec. 61.  1.  Except as otherwise provided in subsection 3, an officer or employee of the Division of Financial Institutions of the Department of Business and Industry shall not:

      (a) Be directly or indirectly interested in or act on behalf of any licensee;

      (b) Receive, directly or indirectly, any payment from any licensee;

      (c) Be indebted to any licensee;

      (d) Engage in the negotiation of loans for others with any licensee; or

      (e) Obtain credit or services from a licensee conditioned upon a fraudulent practice or undue or unfair preference over other customers.

      2.  An employee of the Division of Financial Institutions in the unclassified service of the State shall not obtain new extensions of credit from a licensee while in office.

      3.  Any officer or employee of the Division of Financial Institutions may be indebted to a licensee on the same terms as are available to the public generally.

      4.  If an officer or employee of the Division of Financial Institutions has a service, a preferred consideration, an interest or a relationship prohibited by this section at the time of his appointment or employment, or obtains it during his employment, he shall terminate it within 120 days after the date of his appointment or employment or the discovery of the prohibited act.

 


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after the date of his appointment or employment or the discovery of the prohibited act.

      Sec. 62.  1.  For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the Commissioner or his duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:

      (a) Any licensee;

      (b) Any other person engaged in the business of making loans or participating in such business as principal, agent, broker or otherwise; and

      (c) Any person who the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter.

      2.  For the purpose of examination, the Commissioner or his authorized representatives shall have and be given free access to the offices and places of business, and the files, safes and vaults of such persons.

      3.  For the purposes of this section, any person who advertises for, solicits or holds himself out as willing to make any deferred deposit loan, short-term loan or title loan is presumed to be engaged in the business of making loans.

      Sec. 63.  1.  The Commissioner may require the attendance of any person and examine him under oath regarding:

      (a) Any check-cashing service or loan service regulated pursuant to the provisions of this chapter; or

      (b) The subject matter of any audit, examination, investigation or hearing.

      2.  The Commissioner may require the production of books, accounts, papers and records for any audit, examination, investigation or hearing.

      Sec. 64.  1.  At least once each year, the Commissioner or his authorized representatives shall make an examination of the place of business of each licensee and of the loans, transactions, books, accounts, papers and records of the licensee so far as they pertain to the business for which he is licensed pursuant to the provisions of this chapter.

      2.  If, after auditing one or more branch locations of the licensee, the Commissioner or his authorized representatives conclude that the loans, disclosures, loan practices, computer processes, filing systems and records are identical at each branch location, the Commissioner may make an examination of only those branch locations he deems necessary.

      Sec. 65.  1.  The Commissioner shall charge and collect from each licensee a fee of $40 per hour for any supervision, audit, examination, investigation or hearing conducted pursuant to this chapter or any regulations adopted pursuant thereto.

      2.  The Commissioner shall bill each licensee upon the completion of the activity for the fee established pursuant to subsection 1. The licensee shall pay the fee within 30 days after the date the bill is received. Except as otherwise provided in this subsection, any payment received after the date due must include a penalty of 10 percent of the fee plus an additional 1 percent of the fee for each month, or portion of a month, that the fee is not paid. The Commissioner may waive the penalty for good cause.

 


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      3.  The failure of a licensee to pay the fee required pursuant to subsection 1 as provided in this section constitutes grounds for revocation of the license of the licensee.

      Sec. 65.5.  In addition to any other lawful reasons, the Commissioner may suspend or revoke a license if the licensee has engaged in any act that would be grounds for denying a license pursuant this chapter.

      Sec. 66.  If the Commissioner finds that probable cause for revocation of any license exists and that enforcement of the provisions of this chapter requires immediate suspension of a license pending investigation, he may, upon 5 days’ written notice and a hearing, enter an order suspending a license for a period not exceeding 20 days, pending a hearing upon the revocation.

      Sec. 67.  1.  Whenever the Commissioner has reasonable cause to believe that any person is violating or is threatening to or intends to violate any provision of this chapter, he may, in addition to all actions provided for in this chapter and without prejudice thereto, enter an order requiring the person to desist or to refrain from such violation.

      2.  The Attorney General or the Commissioner may bring an action to enjoin a person from engaging in or continuing a violation or from doing any act or acts in furtherance thereof. In any such action, an order or judgment may be entered awarding a preliminary or final injunction as may be deemed proper.

      3.  In addition to all other means provided by law for the enforcement of a restraining order or injunction, the court in which an action is brought may impound, and appoint a receiver for, the property and business of the defendant, including books, papers, documents and records pertaining thereto, or so much thereof as the court may deem reasonably necessary to prevent violations of this chapter through or by means of the use of property and business. A receiver, when appointed and qualified, has such powers and duties as to custody, collection, administration, winding up and liquidation of such property and business as may from time to time be conferred upon him by the court.

      Sec. 68.  1.  If the Commissioner has reason to believe that grounds for revocation or suspension of a license exist, he shall give 20 days’ written notice to the licensee stating the contemplated action and, in general, the grounds therefor and set a date for a hearing.

      2.  At the conclusion of a hearing, the Commissioner shall:

      (a) Enter a written order either dismissing the charges, revoking the license or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. The Commissioner shall send a copy of the order to the licensee by registered or certified mail.

      (b) Impose upon the licensee a fine of $500 for each violation by the licensee of any provision of this chapter or any regulation adopted pursuant thereto.

      (c) If a fine is imposed pursuant to this section, enter such order as is necessary to recover the costs of the proceeding, including his investigative costs and attorney’s fees.

      3.  The grounds for revocation or suspension of a license are that:

      (a) The licensee has failed to pay the annual license fee;

 


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      (b) The licensee, either knowingly or without any exercise of due care to prevent it, has violated any provision of this chapter or any lawful regulation adopted pursuant thereto;

      (c) The licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS;

      (d) Any fact or condition exists which would have justified the Commissioner in denying the licensee’s original application for a license pursuant to the provisions of this chapter; or

      (e) The licensee:

             (1) Failed to open an office for the conduct of the business authorized by his license within 180 days after the date his license was issued; or

             (2) Has failed to remain open for the conduct of the business for a period of 180 days without good cause therefor.

      4.  Any revocation or suspension applies only to the license granted to a person for the particular office for which grounds for revocation or suspension exist.

      5.  An order suspending or revoking a license becomes effective 5 days after being entered unless the order specifies otherwise or a stay is granted.

      Sec. 69.  A licensee may surrender any license issued pursuant to the provisions of this chapter by delivering it to the Commissioner with written notice of its surrender, but a surrender does not affect his civil or criminal liability for acts committed prior thereto.

      Sec. 70.  A revocation, suspension, expiration or surrender of any license does not impair or affect the obligation of any preexisting lawful loan agreement between the licensee and any customer. Such a loan agreement and all lawful charges thereon may be collected by the licensee, its successors or assigns.

      Sec. 71.  1.  Annually, on or before April 15, each licensee shall file with the Commissioner a report of operations of the licensed business for the preceding calendar year.

      2.  The licensee shall make the report under oath and on a form prescribed by the Commissioner.

      3.  If any person or affiliated group holds more than one license in this State, it may file a composite annual report.

      Sec. 72.  1.  A court of this State may exercise jurisdiction over a party to a civil action arising under the provisions of this chapter on any basis not inconsistent with the Constitution of the State of Nevada or the Constitution of the United States.

      2.  Personal service of summons upon a party outside this State is sufficient to confer upon a court of this State jurisdiction over the party so served if the service is made by delivering a copy of the summons, together with a copy of the complaint, to the party served in the manner provided by statute or rule of court for service upon a person of like kind within this State.

      3.  In all cases of such service, the defendant has 40 days, exclusive of the day of service, within which to answer or plead.

      4.  This section provides an additional manner of serving process and does not invalidate any other service.

      Sec. 73.  1.  Except as otherwise provided in this section, if a licensee willfully:

 


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      (a) Enters into a loan agreement for an amount of interest or any other charge or fee that violates the provisions of this chapter or any regulation adopted pursuant thereto;

      (b) Demands, collects or receives an amount of interest or any other charge or fee that violates the provisions of this chapter or any regulation adopted pursuant thereto; or

      (c) Commits any other act or omission that violates the provisions of this chapter or any regulation adopted pursuant thereto,

Ê the loan is void and the licensee is not entitled to collect, receive or retain any principal, interest or other charges or fees with respect to the loan.

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

      (a) A licensee shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error of computation, notwithstanding the maintenance of procedures reasonably adapted to avoid that error; and

      (b) Within 60 days after discovering the error, the licensee notifies the customer of the error and makes whatever adjustments in the account are necessary to correct the error.

      Sec. 73.5.  In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who, without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter.

      Sec. 74.  1.  Subject to the affirmative defense set forth in subsection 3, in addition to any other remedy or penalty, if a person violates any provision of section 29, 31 to 47, inclusive, 49, 50, 57 or 58 of this act or any regulation adopted pursuant thereto, the customer may bring a civil action against the person for any or all of the following relief:

      (a) Actual and consequential damages;

      (b) Punitive damages, which are subject to the provisions of NRS 42.005;

      (c) Reasonable attorney’s fees and costs; and

      (d) Any other legal or equitable relief that the court deems appropriate.

      2.  Subject to the affirmative defense set forth in subsection 3, in addition to any other remedy or penalty, the customer may bring a civil action against a person pursuant to subsection 1 to recover an additional amount, as statutory damages, which is equal to $1,000 for each violation if the person knowingly:

      (a) Operates a check-cashing service, deferred deposit loan service, short-term loan service or title loan service without a license, in violation of section 29 of this act;

      (b) Fails to include in a loan agreement a disclosure of the right of the customer to rescind the loan, in violation of section 31 of this act;

      (c) Violates any provision of section 33 of this act;

      (d) Accepts collateral or security for a deferred deposit loan, in violation of section 35 of this act, except that a check or written authorization for an electronic transfer of money shall not be deemed to be collateral or security for a deferred deposit loan;

      (e) Uses or threatens to use the criminal process in this State or any other state to collect on a loan made to the customer, in violation of section 36 of this act;

 


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      (f) Includes in any written agreement a promise by the customer to hold the person harmless, a confession of judgment by the customer or an assignment or order for the payment of wages or other compensation due the customer, in violation of section 36 of this act;

      (g) Violates any provision of section 44 of this act; or

      (h) Violates any provision of section 45 of this act.

      3.  A person may not be held liable in any civil action brought pursuant to this section if the person proves, by a preponderance of evidence, that the violation:

      (a) Was not intentional;

      (b) Was technical in nature; and

      (c) Resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.

      4.  For the purposes of subsection 3, a bona fide error includes, without limitation, clerical errors, calculation errors, computer malfunction and programming errors and printing errors, except that an error of legal judgment with respect to the person’s obligations under this chapter is not a bona fide error.

      Sec. 75.  NRS 598D.130 is hereby amended to read as follows:

      598D.130  A mortgage, deed of trust or other instrument that encumbers home property as security for repayment of a home loan must expressly indicate in writing in a size equal to at least 14-point bold type on the front page of the mortgage, deed of trust or other instrument that the home loan is a home loan as defined in NRS 598D.040 [.] and is subject to the provisions of § 152 of the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1602(aa), and the regulations adopted by the Board of Governors of the Federal Reserve System pursuant thereto, including, without limitation, 12 C.F.R. § 226.32.

      Sec. 75.5.  NRS 41.620 is hereby amended to read as follows:

      41.620  1.  [Any] Except as otherwise provided in section 45 of this act, any person who:

      (a) Makes, utters, draws or delivers a check or draft for the payment of money drawn upon any financial institution or other person, when he has no account with the drawee of the instrument or has insufficient money, property or credit with the drawee to pay; or

      (b) Uses a credit card or debit card to obtain money, goods, property, services or anything of value, when he knows or should have known the credit card or debit card is no longer valid,

Ê and who fails to pay the amount in cash to the payee, issuer or other creditor within 30 days after a demand therefor in writing is mailed to him by certified mail, is liable to the payee, issuer or other creditor for the amount of the check, draft or extension of credit, and damages equal to three times the amount of the check, draft or extension of credit, but not less than $100 nor more than $500.

      2.  As used in this section, unless the context otherwise requires:

      (a) “Credit card” has the meaning ascribed to it in NRS 205.630;

      (b) “Debit card” has the meaning ascribed to it in NRS 205.635; and

      (c) “Issuer” has the meaning ascribed to it in NRS 205.650.

      Sec. 76.  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:

 


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      (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 and 649] of NRS [.] , chapter 649 of NRS and sections 2 to 74, inclusive, of this act.

      Sec. 77.  NRS 363A.050 is hereby amended to read as follows:

      363A.050  1.  Except as otherwise provided in subsection 2, “financial institution” means:

      (a) An institution licensed, registered or otherwise authorized to do business in this State pursuant to the provisions of title 55 or 56 of NRS or chapter [604,] 645B, 645E or 649 of NRS or [title 55 or 56 of NRS,] sections 2 to 74, inclusive, of this act, or a similar institution chartered or licensed pursuant to federal law and doing business in this State;

      (b) Any person primarily engaged in:

             (1) The purchase, sale and brokerage of securities;

             (2) Originating, underwriting and distributing issues of securities;

             (3) Buying and selling commodity contracts on either a spot or future basis for the person’s own account or for the account of others, if the person is a member or is associated with a member of a recognized commodity exchange;

             (4) Furnishing space and other facilities to members for the purpose of buying, selling or otherwise trading in stocks, stock options, bonds or commodity contracts;

             (5) Furnishing investment information and advice to others concerning securities on a contract or fee basis;

             (6) Furnishing services to holders of or brokers or dealers in securities or commodities;

             (7) Holding or owning the securities of banks for the sole purpose of exercising some degree of control over the activities of the banks whose securities the person holds;

             (8) Holding or owning securities of companies other than banks, for the sole purpose of exercising some degree of control over the activities of the companies whose securities the person holds;

             (9) Issuing shares, other than unit investment trusts and face-amount certificate companies, whose shares contain a provision requiring redemption by the company upon request of the holder of the security;

             (10) Issuing shares, other than unit investment trusts and face-amount certificate companies, whose shares contain no provision requiring redemption by the company upon request by the holder of the security;

             (11) Issuing unit investment trusts or face-amount certificates;

 


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             (12) The management of the money of trusts and foundations organized for religious, educational, charitable or nonprofit research purposes;

             (13) The management of the money of trusts and foundations organized for purposes other than religious, educational, charitable or nonprofit research;

             (14) Investing in oil and gas royalties or leases, or fractional interests therein;

             (15) Owning or leasing franchises, patents and copyrights which the person in turn licenses others to use;

             (16) Closed-end investments in real estate or related mortgage assets operating in such a manner as to meet the requirements of the Real Estate Investment Trust Act of 1960, as amended;

             (17) Investing; or

             (18) Any combination of the activities described in this paragraph,

Ê who is doing business in this State;

      (c) Any other person conducting loan or credit card processing activities in this State; and

      (d) Any other bank, bank holding company, national bank, savings association, federal savings bank, trust company, credit union, building and loan association, investment company, registered broker or dealer in securities or commodities, finance company, dealer in commercial paper or other business entity engaged in the business of lending money, providing credit, securitizing receivables or fleet leasing, or any related business entity, doing business in this State.

      2.  The term does not include a credit union organized under the provisions of chapter 678 of NRS or the Federal Credit Union Act.

      Sec. 78.  NRS 645B.0119 is hereby amended to read as follows:

      645B.0119  “Financial services license or registration” means any license or registration issued in this State or any other state, district or territory of the United States that authorizes the person who holds the license or registration to engage in any business or activity described in the provisions of this chapter, title 55 or 56 of NRS or chapter [604,] 645, 645A, 645C, 645E or 649 of NRS or [title 55 or 56 of NRS.] sections 2 to 74, inclusive, of this act.

      Sec. 79.  NRS 658.098 is hereby amended to read as follows:

      658.098  1.  On a quarterly or other regular basis, the Commissioner shall collect an assessment pursuant to this section from each:

      (a) Check-cashing service or deferred deposit loan service that is supervised pursuant to [chapter 604 of NRS;] sections 2 to 74, inclusive, of this act;

      (b) Collection agency that is supervised pursuant to chapter 649 of NRS;

      (c) Bank that is supervised pursuant to chapters 657 to 668, inclusive, of NRS;

      (d) Trust company that is supervised pursuant to chapter 669 of NRS;

      (e) Development corporation that is supervised pursuant to chapter 670 of NRS;

      (f) Corporation for economic revitalization and diversification that is supervised pursuant to chapter 670A of NRS;

      (g) Person engaged in the business of selling or issuing checks or of receiving for transmission or transmitting money or credits that is supervised pursuant to chapter 671 of NRS;

 


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      (h) Savings and loan association that is supervised pursuant to chapter 673 of NRS;

      (i) Person engaged in the business of lending that is supervised pursuant to chapter 675 of NRS;

      (j) Person engaged in the business of debt adjusting that is supervised pursuant to chapter 676 of NRS;

      (k) Thrift company that is supervised pursuant to chapter 677 of NRS; and

      (l) Credit union that is supervised pursuant to chapter 678 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 of Financial Institutions. 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) A portion of the total amount of all assessments as determined pursuant to subsection 2, such that the assessment collected from an entity identified in subsection 1 shall bear the same relation to the total amount of all assessments as the total assets of that entity bear to the total of all assets of all entities identified in subsection 1; 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 State Treasury pursuant to the provisions of NRS 658.091.

      Sec. 80.  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 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

 


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      (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.

      10.  A person licensed to do business pursuant to sections 2 to 74, inclusive, of this act with regard to those services regulated pursuant to sections 2 to 74, inclusive, of this act.

      Sec. 81.  NRS 675.060 is hereby amended to read as follows:

      675.060  1.  No person may engage in the business of lending in this State without first having obtained a license from the Commissioner pursuant to this chapter for each office or other place of business at which the person engages in such business [.] , except that if a person intends to engage in the business of lending in this State as a deferred deposit loan service, short-term loan service or title loan service, as those terms are defined in sections 2 to 74, inclusive, of this act, the person must obtain a license from the Commissioner pursuant to sections 2 to 74, inclusive, of this act before the person may engage in any such business.

      2.  For the purpose of this section, a person engages in the business of lending in this State if he:

      (a) Solicits loans in this State or makes loans to persons in this State, unless these are isolated, incidental or occasional transactions; or

      (b) Is located in this State and solicits loans outside of this State or makes loans to persons located outside of this State, unless these are isolated, incidental or occasional transactions.

      Sec. 82.  NRS 604.010, 604.020, 604.030, 604.040, 604.050, 604.060, 604.070, 604.080, 604.090, 604.100, 604.110, 604.120, 604.130, 604.140, 604.150, 604.160, 604.162, 604.164, 604.166, 604.170, 604.180 and 604.190 are hereby repealed.

      Sec. 83.  1.  If a person:

      (a) On July 1, 2005, holds a valid certificate of registration or license that was issued by the Commissioner of Financial Institutions pursuant to chapter 604 or 675 of NRS before July 1, 2005; and

      (b) Operates a check-cashing service, deferred deposit loan service, short-term loan service or title loan service, as those terms are defined in the provisions of sections 2 to 74, inclusive, of this act,

Ê the person’s certificate of registration or license shall be deemed to be a license issued by the Commissioner of Financial Institutions pursuant to the provisions of sections 2 to 74, inclusive, of this act until the date on which the person would have been required to renew his certificate of registration or license pursuant to chapter 604 or 675 of NRS.

      2.  Except as otherwise provided in subsections 3 and 4, a person described in subsection 1 shall:

      (a) On and after July 1, 2005, comply with all provisions of sections 2 to 74, inclusive, of this act relating to transactions with customers, including, without limitation, all provisions relating to loans, extensions, repayment plans, interest, fees, charges and collections; and

 

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