[Rev. 11/14/2017 12:08:16 PM]

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CHAPTER 485, AB 380

Assembly Bill No. 380–Assemblyman Yeager

 

Joint Sponsors: Senators Cannizzaro, Denis, Ford, Gustavson, Harris, Roberson and Segerblom

 

CHAPTER 485

 

[Approved: June 8, 2017]

 

AN ACT relating to real property; authorizing the recording of certain documents relating to real property; limiting an action constituting an easement by prescription under certain circumstances; authorizing the governing body of a city or county to adopt certain ordinances governing a sign posted by an owner of land; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law provides for the recording of certain documents relating to real property. (Chapter 111 of NRS) Section 1 of this bill authorizes an owner of real property to record a notice in the office of any county recorder, wherein the subject property is located, which provides that public use for pedestrian access of the owner’s real property is with the permission of and subject to the control of the owner.

      Existing law limits certain actions for the recovery of real property. (NRS 11.030-11.180) Section 3 of this bill: (1) authorizes an owner of land to post certain notice stating that the right to pass over such land is by permission and subject to the control of the owner; and (2) prohibits a person from maintaining an action constituting an easement by prescription regardless of whether the owner posts certain notice on the property or records a notice pursuant to section 1. Section 3 also authorizes a governing body of a city or county to adopt ordinances governing a sign posted by an owner of land under certain circumstances.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 111 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Any owner of real property, who opens any part of his or her real property for use by the public for pedestrian access and has improved such real property for that specific purpose, may record in the office of the county recorder of the county or counties in which any part of the real property is situated, a description of the real property and notice in substantially the following form:

 

      The right of the public or any person to make use of the real property described or any portion thereof, for pedestrian access, other than any use expressly allowed by a written or recorded map, agreement, grant of easement, deed or dedication, is by permission, and subject to control, of owner pursuant to section 1 of this act.

 

      2.  The recording of a notice pursuant to this section is conclusive evidence that subsequent use of the real property during the time such notice is in effect by the public or any person for pedestrian access, other than any use in accordance with a right granted by a written or recorded map, agreement, grant of easement, deed or dedication, is permissive and with consent in any judicial proceeding involving the issue as to whether all or any portion of such real property has been dedicated to public use or whether any person has a prescriptive right in such real property or any portion thereof.

 


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notice is in effect by the public or any person for pedestrian access, other than any use in accordance with a right granted by a written or recorded map, agreement, grant of easement, deed or dedication, is permissive and with consent in any judicial proceeding involving the issue as to whether all or any portion of such real property has been dedicated to public use or whether any person has a prescriptive right in such real property or any portion thereof. The notice may be revoked by the owner of the real property by recording a notice of revocation in the office of the county recorder where the notice is recorded. After recording the notice, and before any revocation of such notice, the owner of the real property shall not prevent any appropriate pedestrian access by physical obstruction, notice or otherwise.

      3.  The notice pursuant to this section shall not be deemed to affect rights vested at the time of recording.

      4.  Permission for the use of real property by the public or any person, for pedestrian access, other than any use expressly allowed by a written or recorded map, agreement, grant of easement, deed or dedication described in the notice recorded pursuant to subsection 1, may be conditioned upon reasonable restrictions on the time, place and manner of such use. Any use of the real property in violation of such restrictions may not be considered public use for the purposes of a finding of implied dedication.

      Sec. 2. NRS 111.312 is hereby amended to read as follows:

      111.312  1.  The county recorder shall not record with respect to real property, a notice of completion, a declaration of homestead, a lien or notice of lien, an affidavit of death, a mortgage or deed of trust, [or] any conveyance of real property or instrument in writing setting forth an agreement to convey real property or a notice pursuant to section 1 of this act unless the document being recorded contains:

      (a) The mailing address of the grantee or, if there is no grantee, the mailing address of the person who is requesting the recording of the document; and

      (b) Except as otherwise provided in subsection 2, the assessor’s parcel number of the property at the top left corner of the first page of the document, if the county assessor has assigned a parcel number to the property. The parcel number must comply with the current system for numbering parcels used by the county assessor’s office. The county recorder is not required to verify that the assessor’s parcel number is correct.

      2.  Any document relating exclusively to the transfer of water rights may be recorded without containing the assessor’s parcel number of the property.

      3.  The county recorder shall not record with respect to real property any deed, including, without limitation:

      (a) A grant, bargain or deed of sale;

      (b) Quitclaim deed;

      (c) Warranty deed; or

      (d) Trustee’s deed upon sale,

Ê unless the document being recorded contains the name and address of the person to whom a statement of the taxes assessed on the real property is to be mailed.

      4.  The assessor’s parcel number shall not be deemed to be a complete legal description of the real property conveyed.

 


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      5.  Except as otherwise provided in subsection 6, if a document that is being recorded includes a legal description of real property that is provided in metes and bounds, the document must include the name and mailing address of the person who prepared the legal description. The county recorder is not required to verify the accuracy of the name and mailing address of such a person.

      6.  If a document including the same legal description described in subsection 5 previously has been recorded, the document must include all information necessary to identify and locate the previous recording, but the name and mailing address of the person who prepared the legal description is not required for the document to be recorded. The county recorder is not required to verify the accuracy of the information concerning the previous recording.

      Sec. 3. Chapter 11 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  If an owner of land opens his or her land for use by the public for pedestrian access and has improved such land for that specific purpose, no such use by any person or the public, no matter for how long of a period, of any land shall ever ripen into an easement by prescription, if the owner of the land posts at each entrance to the land or at intervals of not more than 200 feet along the boundary of such land a sign reading substantially as follows:

 

       Right to pass by permission, and subject to control, of owner: section 3 of this act.

 

      2.  Regardless of whether an owner of land has recorded a notice pursuant to section 1 of this act or has posted signs on such land pursuant to subsection 1, if an owner of land opens his or her land for use by the public for pedestrian access and has improved such land for that specific purpose, no such use of such land by any person or the public on or after October 1, 2017, shall ever ripen to confer upon the public or any governmental entity a vested right to continue to make such use permanently, in the absence of an express written grant of easement or other conveyance of such land for such use, or irrevocable offer of dedication of such property for such use, made by the owner, which has been accepted by the governmental entity to which the offer of dedication was made.

      3.  The governing body of any city or county pursuant to the powers granted in NRS 278.010 to 278.630, inclusive, may by ordinance establish provisions governing the size, placement and composition of a sign posted by an owner of land pursuant to subsection 1.

      4.  As used in this section, “governmental entity” has the meaning ascribed to it in NRS 363C.040.

      Sec. 4. NRS 107A.200 is hereby amended to read as follows:

      107A.200  “Submit for recording” means to submit a document complying with applicable legal standards, with required fees and taxes, to the appropriate governmental office pursuant to NRS 111.310 to 111.365, inclusive [.] , and section 1 of this act.

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CHAPTER 486, AB 468

Assembly Bill No. 468–Assemblywoman Jauregui

 

CHAPTER 486

 

[Approved: June 8, 2017]

 

AN ACT relating to mortgage lending; revising provisions which apply to mortgage brokers to also apply to mortgage bankers; revising the terms which identify mortgage brokers, mortgage agents and mortgage bankers; revising provisions governing bonds required for mortgage brokers and mortgage bankers; revising certain exemptions from licensing requirements for mortgage brokers and mortgage bankers; repealing provisions relating to mortgage bankers; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law prohibits a person from offering or providing any of the services of a mortgage broker or mortgage banker unless the person first obtains a license as a mortgage broker or mortgage banker, as applicable, or is exempt from licensing. (NRS 645B.900, 645E.900) This bill repeals the provisions of law that regulate mortgage bankers and revises the provisions of law that currently regulate mortgage brokers to apply to both mortgage brokers and mortgage bankers, both of which are now included in the term “mortgage company.” Specifically, section 6 of this bill defines “mortgage company” to include all persons who previously were mortgage brokers or mortgage bankers. Additionally, the term “mortgage agent” is changed to “mortgage loan originator.” Section 11 of this bill revises provisions relating to licensing as a mortgage broker to apply to licensing as a mortgage company. Sections 15.5 and 16 of this bill revise the requirements for the form of certain bonds required for mortgage brokers and mortgage bankers. Section 88.5 of this bill revises the provisions governing exemptions for certain entities from the requirements for licensure as a mortgage broker or mortgage banker. Section 110 of this bill deems any person who holds a license as a mortgage broker or mortgage banker on January 1, 2020, to hold a license as a mortgage company. Section 112 of this bill repeals the provisions of existing law which apply to mortgage bankers as such provisions are made redundant by the provisions of this bill.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 645A.173 is hereby amended to read as follows:

      645A.173  1.  If an escrow for the sale of real property is established, the holder of the escrow shall, on the date of establishment of the escrow, record in writing the number and the date of expiration of the:

      (a) License issued pursuant to chapter 645 of NRS; or

      (b) Certificate of cooperation issued pursuant to NRS 645.605,

Ê of any real estate broker, broker-salesperson or salesperson who will be paid compensation from money held in the escrow for performing the services of a real estate broker, broker-salesperson or salesperson in the transaction that is the subject of the escrow. The holder of the escrow is not required to verify independently the validity of the number of the license or certificate.

 


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      2.  If an escrow for the sale of real property is established and the real property is or will be secured by a mortgage or deed of trust, the holder of the escrow shall, on the date of establishment of the escrow, record in writing the number and the date of expiration of the license issued pursuant to chapter 645B [or 645E] of NRS of any mortgage [broker or mortgage banker] company associated with the mortgage or deed of trust. The holder of the escrow is not required to verify independently the validity of the number of the license.

      Sec. 2. NRS 645A.215 is hereby amended to read as follows:

      645A.215  1.  Except as otherwise provided in subsection 2, a licensee may not conduct the business of administering escrows for compensation within any office, suite, room or place of business in which any other business is solicited or engaged in, except a notary public, or in association or conjunction with any other business, unless authority to do so is given by the Commissioner.

      2.  A licensee may conduct the business of administering escrows pursuant to this chapter in the same office or place of business as a mortgage [banker] company if:

      (a) The licensee and the mortgage [banker:] company:

             (1) Operate as separate legal entities;

             (2) Maintain separate accounts, books and records;

             (3) Are subsidiaries of the same parent corporation; and

             (4) Maintain separate licenses; and

      (b) The mortgage [banker] company is licensed by this state pursuant to chapter [645E] 645B of NRS . [and does not conduct any business as a mortgage broker licensed pursuant to chapter 645B of NRS in the office or place of business.]

      Sec. 2.1. Chapter 645B of NRS is hereby amended by adding thereto the provisions set forth as sections 2.2 to 2.5, inclusive, of this act.

      Sec. 2.2. “Applicant” means a person who applies for licensure as a mortgage company pursuant to this chapter.

      Sec. 2.3. “Commercial mortgage loan” means a loan primarily for a business, commercial or agricultural purpose that:

      1.  Directly or indirectly, is secured by a lien on commercial property; and

      2.  Is created with the consent of the owner of the commercial property.

      Sec. 2.4. “Commercial property” means any real property which is located in this State and which is neither used as a dwelling nor upon which a dwelling is constructed or intended to be constructed. For the purposes of this section, “dwelling” has the meaning ascribed to it in section 103(v) of the federal Truth in Lending Act, 15 U.S.C. § 1602(w).

      Sec. 2.5. “Institutional investor” means a person who, in the regular course of business, makes commercial mortgage loans of more than $250,000 that are funded exclusively from one or more of the following sources:

      1.  The person’s cash, corporate capital or warehouse credit lines at a depository financial institution or other sources that are liability items on the person’s financial statements.

 

 


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      2.  Correspondent contracts between the person and another institutional investor or between the person and a depository financial institution, trust company, profit-sharing or pension trust, installment lender or insurance company.

      3.  An affiliate’s cash, corporate capital or warehouse credit lines at a depository financial institution or other sources that are liability items on the affiliate’s financial statements for which the affiliate’s assets are pledged. As used in this subsection, “affiliate” means another person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the person who is the institutional investor.

      Sec. 2.7.NRS 645B.010 is hereby amended to read as follows:

      645B.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 645B.0104 to 645B.01356, inclusive, and sections 2.2 to 2.5, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 3. 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 604A, 645, 645A, 645C, [645E,] 645G or 649 of NRS.

      Sec. 4. NRS 645B.0123 is hereby amended to read as follows:

      645B.0123  “Licensee” means a person who is licensed or required to be licensed as a mortgage [broker] company pursuant to this chapter. The term does not include a person issued a license as a mortgage [agent] loan originator pursuant to NRS 645B.410 who is acting properly within the scope of that license.

      Sec. 5. NRS 645B.0125 is hereby amended to read as follows:

      645B.0125  1.  “Mortgage [agent”] loan originator” means:

      (a) A natural person who:

             (1) Is an employee of a mortgage [broker or mortgage banker] company who is required to be licensed pursuant to this chapter ; [or chapter 645E of NRS;] and

             (2) Is authorized by the mortgage [broker or mortgage banker] company to engage in, on behalf of the mortgage [broker or mortgage banker,] company, any activity that would require the person, if the person were not an employee of the mortgage [broker or mortgage banker,] company, to be licensed as a mortgage [broker or mortgage banker] company pursuant to this chapter ; [or chapter 645E of NRS;]

      (b) A mortgage [broker,] company or qualified employee [or mortgage banker] who is required by NRS 645B.405 [or 645E.290] to be licensed as a mortgage [agent;] loan originator; or

      (c) A loan processor who is an independent contractor and who is associated with a mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016.

      2.  The term includes, but is not limited to, a residential mortgage loan originator.

      3.  The term does not include a person who:

      (a) Except as otherwise provided in paragraph (b) of subsection 1, is licensed as a mortgage [broker or mortgage banker;] company;

 


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      (b) Is an owner, general partner, officer or director of a mortgage [broker or mortgage banker] company who does not engage in any activity that would otherwise require a license as a mortgage [broker or mortgage banker;] company;

      (c) Except as otherwise provided in paragraph (c) of subsection 1, performs only clerical or ministerial tasks for a mortgage [broker or mortgage banker;] company; or

      (d) Collects payments and performs related services, including, without limitation, the modification of an existing loan, in connection with a loan secured by a lien on real property and who does not undertake any other activity that would otherwise require a license pursuant to this chapter or chapter [645E or] 645F of NRS.

      Sec. 6. NRS 645B.0127 is hereby amended to read as follows:

      645B.0127  1.  “Mortgage [broker”] company” means a person who, directly or indirectly:

      (a) Holds himself or herself out for hire to serve as an agent for any person in an attempt to obtain a loan which will be secured by a lien on real property;

      (b) Holds himself or herself out for hire to serve as an agent for any person who has money to lend, if the loan is or will be secured by a lien on real property;

      (c) Holds himself or herself out as being able to make loans secured by liens on real property;

      (d) Holds himself or herself out as being able to buy or sell notes secured by liens on real property; or

      (e) Offers for sale in this State any security which is exempt from registration under state or federal law and purports to make investments in promissory notes secured by liens on real property.

      2.  The term includes a wholesale lender.

      [3.  The term does not include a person who is licensed as a mortgage banker, as defined in NRS 645E.100, unless the person is also licensed as a mortgage broker pursuant to this chapter.]

      Sec. 7. NRS 645B.0137 is hereby amended to read as follows:

      645B.0137  1.  In addition to any other requirements provided by this chapter, a person who wishes to receive an initial license as a mortgage [broker] company or mortgage [agent] loan originator must:

      (a) Complete education on mortgage lending as required by this chapter and any regulations adopted thereto; and

      (b) Successfully pass a written examination as provided for by the Division.

      2.  If the applicant for an initial license as a mortgage [broker] company is not a natural person, the applicant must designate a natural person to be the qualified employee of the applicant and meet the requirements of subsection 1.

      3.  The Division may hire a testing organization to create, administer and score a written examination.

      4.  The Commissioner shall adopt regulations to carry out the provisions of this section, including, without limitation:

      (a) Regulations relating to the content of a written examination and the scoring of a written examination; and

      (b) Regulations for compliance with the requirements for registration with the Registry and any other applicable federal law.

 


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      Sec. 8. NRS 645B.0138 is hereby amended to read as follows:

      645B.0138  1.  A course of continuing education that is required pursuant to this chapter must meet the requirements set forth by the Commissioner by regulation.

      2.  The Commissioner shall adopt regulations:

      (a) Relating to the requirements for courses of continuing education, including, without limitation, regulations relating to the providers and instructors of such courses, records kept for such courses, approval and revocation of approval of such courses, monitoring of such courses and disciplinary action taken regarding such courses.

      (b) Allowing for the participation of representatives of the mortgage lending industry pertaining to the creation of regulations regarding such courses.

      (c) Ensuring compliance with the requirements for registration with the Registry and any other applicable federal law.

      3.  The regulations adopted by the Commissioner pursuant to subsection 2 must not require a mortgage [agent,] loan originator or mortgage [banker or mortgage broker] company or an employee of a mortgage [banker or mortgage broker] company who, pursuant to subsection 1 of NRS 645F.267, is not required to register or renew with the Registry and who has not voluntarily registered or renewed with the Registry to complete any continuing education relating to residential mortgage loans.

      Sec. 9. NRS 645B.0145 is hereby amended to read as follows:

      645B.0145  The provisions of this chapter do not:

      1.  Limit any statutory or common-law right of a person to bring a civil action against a mortgage [broker] company or mortgage [agent] loan originator for any act or omission involved in the transaction of business by or on behalf of the mortgage [broker] company or mortgage [agent;] loan originator;

      2.  Limit the right of the State to punish a person for the violation of any law, ordinance or regulation; or

      3.  Establish a basis for a person to bring a civil action against the State or its officers or employees for any act or omission in carrying out the provisions of this chapter, including, without limitation, any act or omission relating to the disclosure of information or the failure to disclose information pursuant to the provisions of this chapter.

      Sec. 10. NRS 645B.016 is hereby amended to read as follows:

      645B.016  Except as otherwise provided in subsection 2 and NRS 645B.690:

      1.  A person who claims an exemption from the provisions of this chapter pursuant to subsection 1 of NRS 645B.015 must:

      (a) File a written application for a certificate of exemption with the Office of the Commissioner;

      (b) Pay the fee required pursuant to NRS 645B.017;

      (c) Include with the written application satisfactory proof that the person meets the requirements of subsection 1 of NRS 645B.015; and

      (d) Provide evidence to the Commissioner that the person is duly licensed to conduct his or her business, including, if applicable, the right to transact mortgage loans, and such license is in good standing pursuant to the laws of this State, any other state or the United States.

      2.  The provisions of subsection 1 do not apply to the extent preempted by federal law.

 


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      3.  The Commissioner may require a person who claims an exemption from the provisions of this chapter pursuant to subsections 2 to 12, inclusive, of NRS 645B.015 to:

      (a) File a written application for a certificate of exemption with the Office of the Commissioner;

      (b) Pay the fee required pursuant to NRS 645B.017; and

      (c) Include with the written application satisfactory proof that the person meets the requirements of at least one of those exemptions.

      4.  A certificate of exemption expires automatically if, at any time, the person who claims the exemption no longer meets the requirements of at least one exemption set forth in the provisions of NRS 645B.015.

      5.  If a certificate of exemption expires automatically pursuant to this section, the person shall not provide any of the services of a mortgage [broker] company or mortgage [agent] loan originator or otherwise engage in, carry on or hold himself or herself out as engaging in or carrying on the business of a mortgage [broker] company or mortgage [agent] loan originator unless the person applies for and is issued:

      (a) A license as a mortgage [broker] company or mortgage [agent,] loan originator, as applicable, pursuant to this chapter; or

      (b) Another certificate of exemption.

      6.  The Commissioner may impose upon a person who is required to apply for a certificate of exemption or who holds a certificate of exemption an administrative fine of not more than $10,000 for each violation that the person commits, if the person:

      (a) Has knowingly made or caused to be made to the Commissioner any false representation of material fact;

      (b) Has suppressed or withheld from the Commissioner any information which the person possesses and which, if submitted by the person, would have rendered the person ineligible to hold a certificate of exemption; or

      (c) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner that applies to a person who is required to apply for a certificate of exemption or who holds a certificate of exemption.

      7.  A person who is exempt from the requirements of this chapter may file a written application for a certificate of exemption with the Office of the Commissioner for the purposes of complying with the requirements of the Registry or enabling a mortgage [agent] loan originator to comply with the requirements of the Registry.

      8.  The Commissioner may require an applicant or person described in subsection 7 to submit the information or pay the fee directly to the Division or, if the applicant or person is required to register or voluntarily registers with the Registry, to the Division through the Registry.

      9.  An application filed pursuant to subsection 7 does not affect the applicability of this chapter to such an applicant or person.

      Sec. 11.  NRS 645B.020 is hereby amended to read as follows:

      645B.020  1.  A person who wishes to be licensed as a mortgage [broker] company must file a written application for a license with the Office of the Commissioner and pay the fee required pursuant to NRS 645B.050. The Commissioner may require the applicant or person to submit the information or pay the fee directly to the Division or, if the applicant or person is required to register or voluntarily registers with the Registry, to the Division through the Registry. An application for a license as a mortgage [broker] company must:

 


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      (a) State the name, residence address and business address of the applicant and, if the applicant is a mortgage [broker] company other than a wholesale lender, the location of each principal office and branch office at which the mortgage [broker] company will conduct business within this State.

      (b) State the location of any principal office, office or other place of business located outside this State from which the mortgage [broker] company will conduct business in this State and any office or other place of business which the applicant maintains as a corporate or home office.

      (c) State the name under which the applicant will conduct business as a mortgage [broker.] company.

      (d) List the name, residence address and business address of each person who will:

             (1) If the applicant is not a natural person, have an interest in the mortgage [broker] company as a principal, partner, officer, director or trustee, specifying the capacity and title of each such person.

             (2) Be associated with or employed by the mortgage [broker] company as a mortgage [agent.] loan originator.

      (e) Include a general business plan and a description of the policies and procedures that the mortgage [broker] company and his or her mortgage [agents] loan originators will follow to arrange and service loans and to conduct business pursuant to this chapter.

      (f) State the length of time the applicant has been engaged in the business of a mortgage [broker.] company.

      (g) Include a financial statement of the applicant and, if applicable, satisfactory proof that the applicant will be able to maintain continuously the net worth required pursuant to NRS 645B.115.

      (h) Include all information required to complete the application.

      (i) Unless fingerprints were submitted to the Registry for the person, include a complete set of fingerprints for each natural person who is a principal, partner, officer, director or trustee of the applicant which the Division may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.

      (j) Include any other information required pursuant to the regulations adopted by the Commissioner or an order of the Commissioner.

      2.  If a mortgage [broker] company will conduct business in this State at one or more branch offices, the mortgage [broker] company must apply for a license for each such branch office.

      3.  Except as otherwise provided by law, the Commissioner shall issue a license to an applicant as a mortgage [broker] company if:

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

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

             (1) Has demonstrated financial responsibility, character and general fitness so as to command the confidence of the community and warrant a determination that the applicant will operate honestly, fairly and efficiently for the purposes of this chapter.

             (2) Has not been convicted of, or entered or agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic, foreign or military court within the 7 years immediately preceding the date of the application, or at any time if such felony involved an act of fraud, dishonesty or a breach of trust, moral turpitude or money laundering.

 


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within the 7 years immediately preceding the date of the application, or at any time if such felony involved an act of fraud, dishonesty or a breach of trust, moral turpitude or money laundering.

             (3) Has not made a false statement of material fact on the application.

             (4) Has never had a license or registration as a mortgage agent, mortgage banker, mortgage broker, mortgage company, mortgage loan originator or residential mortgage loan originator revoked in this State or any other jurisdiction or had a financial services license revoked within the immediately preceding 10 years.

             (5) Has not violated any provision of this chapter , [or chapter 645E of NRS,] a regulation adopted pursuant thereto or an order of the Commissioner.

      4.  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 has a license issued pursuant to this chapter for an office or other place of business located in this State or if the applicant will conduct business in this State only as a wholesale lender, and 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 electronically or 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 applicant must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.

      Sec. 12. NRS 645B.021 is hereby amended to read as follows:

      645B.021  1.  If a mortgage [broker] company is not a natural person, the mortgage [broker] company must designate a natural person as a qualified employee to act on behalf of the mortgage [broker.] company.

      2.  The Division shall adopt regulations regarding a qualified employee, including, without limitation, regulations that establish:

      (a) A definition for the term “qualified employee”;

      (b) Any duties of a qualified employee; and

      (c) Any requirements regarding a qualified employee.

      Sec. 13. NRS 645B.023 is hereby amended to read as follows:

      645B.023  1.  In addition to any other requirements set forth in this chapter:

      (a) A natural person who applies for the issuance of a license as a mortgage [broker] company shall include the social security number of the applicant in the application submitted to the Commissioner.

      (b) A natural person who applies for the issuance or renewal of a license as a mortgage [broker] company shall submit to the Commissioner the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

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

 


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

      (b) A separate form prescribed by the Commissioner.

      3.  A license as a mortgage [broker] company may not be issued or renewed by the Commissioner 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 the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

      4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      Sec. 14. NRS 645B.0243 is hereby amended to read as follows:

      645B.0243  The Commissioner may refuse to issue a license to an applicant if the Commissioner has reasonable cause to believe that the applicant or any general partner, officer or director of the applicant has, after October 1, 1999, employed or proposed to employ a person as a mortgage [agent] loan originator or authorized or proposed to authorize a person to be associated with a mortgage [broker] company as a mortgage [agent] loan originator at a time when the applicant or the general partner, officer or director knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person has committed any act or omission that would be cause for refusing to issue a license to a mortgage [agent.] loan originator.

      Sec. 15. NRS 645B.025 is hereby amended to read as follows:

      645B.025  1.  A mortgage [broker] company shall post each license in a conspicuous place in the office to which it pertains.

      2.  A mortgage [broker] company may not transfer or assign a license to another person, unless the Commissioner gives written approval.

      Sec. 15.5. NRS 645B.042 is hereby amended to read as follows:

      645B.042  1.  As a condition to doing business in this State, each mortgage broker shall deposit with the Commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount set forth in subsection 4, which is executed by a corporate surety satisfactory to the Commissioner and which names as principals the mortgage broker and all mortgage agents employed by or associated with the mortgage broker.

      2.  At the time of filing an application for a license as a mortgage agent and at the time of filing an application for the renewal of a license as a mortgage agent, the applicant shall file with the Commissioner proof that the applicant is named as a principal on the corporate surety bond deposited with the Commissioner by the mortgage broker with whom the applicant is associated or employed.

      3.  The bond must be in [substantially the following form:

 


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       Know All Persons by These Presents, that ..................., as principal, and ..................., as surety, are held and firmly bound unto the State of Nevada for the use and benefit of any person who suffers damages because of a violation of any of the provisions of chapter 645B of NRS, in the sum of ..................., lawful money of the United States, to be paid to the State of Nevada for such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

       The condition of that obligation is such that: Whereas, the principal has been issued a license as a mortgage broker or mortgage agent by the Commissioner of Mortgage Lending and is required to furnish a bond, which is conditioned as set forth in this bond:

       Now, therefore, if the principal, his or her agents and employees, strictly, honestly and faithfully comply with the provisions of chapter 645B of NRS, and pay all damages suffered by any person because of a violation of any of the provisions of chapter 645B of NRS, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of chapter 645B of NRS, then this obligation is void; otherwise it remains in full force.

       This bond becomes effective on the ......... (day) of ......... (month) of ......... (year), and remains in force until the surety is released from liability by the Commissioner of Mortgage Lending or until this bond is cancelled by the surety. The surety may cancel this bond and be relieved of further liability hereunder by giving 60 days’ written notice to the principal and to the Commissioner of Mortgage Lending.

       In Witness Whereof, the seal and signature of the principal hereto is affixed, and the corporate seal and the name of the surety hereto is affixed and attested by its authorized officers at ..................., Nevada, this ......... (day) of ......... (month) of ......... (year).

 

                                       ....................................................................... (Seal)

                                                                    Principal

                                       ....................................................................... (Seal)

                                                                      Surety

                                               By....................................................................

                                                                       Attorney-in-fact

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

                                                      Nevada Licensed Insurance Agent]

a form prescribed by the Commissioner.

      4.  Each mortgage broker shall deposit a corporate surety bond that complies with the provisions of this section in the following amounts:

      (a) For an annual loan production of $20,000,000 or less, $50,000.

      (b) For an annual loan production of more than $20,000,000, $75,000.

      5.  Except as otherwise required by federal law or regulation, for the purposes of subsection 4, the Commissioner shall determine the appropriate amount of the surety bond that must be deposited initially by a mortgage broker based upon the expected annual loan production amount and shall determine the appropriate amount of the surety bond annually based upon the actual annual loan production.

 


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      Sec. 16. NRS 645B.042 is hereby amended to read as follows:

      645B.042  1.  As a condition to doing business in this State, each mortgage [broker] company shall deposit with the Commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount set forth in subsection 4, which is executed by a corporate surety satisfactory to the Commissioner and which names as principals the mortgage [broker] company and all mortgage [agents] loan originators employed by or associated with the mortgage [broker.] company.

      2.  At the time of filing an application for a license as a mortgage [agent] loan originator and at the time of filing an application for the renewal of a license as a mortgage [agent,] loan originator, the applicant shall file with the Commissioner proof that the applicant is named as a principal on the corporate surety bond deposited with the Commissioner by the mortgage [broker] company with whom the applicant is associated or employed.

      3.  The bond must be in a form prescribed by the Commissioner.

      4.  Each mortgage [broker] company shall deposit a corporate surety bond that complies with the provisions of this section in the following amounts:

      (a) For an annual loan production of $20,000,000 or less, $50,000.

      (b) For an annual loan production of more than $20,000,000, $75,000.

      5.  Except as otherwise required by federal law or regulation, for the purposes of subsection 4, the Commissioner shall determine the appropriate amount of the surety bond that must be deposited initially by a mortgage [broker] company based upon the expected annual loan production amount and shall determine the appropriate amount of the surety bond annually based upon the actual annual loan production.

      Sec. 17. NRS 645B.048 is hereby amended to read as follows:

      645B.048  1.  Any person claiming against a bond may bring an action in a court of competent jurisdiction on the bond for damages to the extent covered by the bond. A person who brings an action on a bond shall notify the Commissioner in writing upon filing the action. An action may not be commenced after the expiration of 3 years following the commission of the act on which the action is based.

      2.  Upon receiving a request from a person for whose benefit a bond is required, the Commissioner shall notify the person:

      (a) That a bond is in effect and of the amount of the bond; and

      (b) If there is an action against the bond, the title, court and case number of the action and the amount sought by the plaintiff.

      3.  If a surety wishes to make payment without awaiting action by a court, the amount of the bond must be reduced to the extent of any payment made by the surety in good faith under the bond. Any payment must be based on written claims received by the surety before any action is taken by a court.

      4.  The surety may bring an action for interpleader against all claimants upon the bond. If it does so, it shall publish notice of the action at least once each week for 2 weeks in every issue of a newspaper of general circulation in the county where the mortgage [broker] company has its principal place of business. The surety may deduct its costs of the action, including attorney’s fees and publication, from its liability under the bond.

      5.  Claims against a bond have equal priority, and if the bond is insufficient to pay all claims in full, they must be paid on a pro rata basis.

 


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Partial payment of claims is not full payment, and any claimant may bring an action against the mortgage [broker] company for the unpaid balance.

      Sec. 18. NRS 645B.050 is hereby amended to read as follows:

      645B.050  1.  A license as a mortgage [broker] company issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew such a license, the licensee must submit to the Commissioner on or after November 1 and on or before December 31 of each year, or on a date otherwise specified by the Commissioner by regulation:

      (a) An application for renewal;

      (b) The fee required to renew the license pursuant to this section;

      (c) The information required pursuant to NRS 645B.051; and

      (d) All information required by the Commissioner or, if applicable, required by the Registry to complete the renewal.

      2.  If the licensee fails to submit any item required pursuant to subsection 1 to the Commissioner on or after November 1 and on or before December 31 of any year, unless a different date is specified by the Commissioner by regulation, the license is cancelled as of December 31 of that year. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner on or before February 28 of the following year:

      (a) An application for renewal;

      (b) The fee required to renew the license pursuant to this section;

      (c) The information required pursuant to NRS 645B.051;

      (d) Except as otherwise provided in this section, a reinstatement fee of not more than $200; and

      (e) All information required to complete the reinstatement.

      3.  Except as otherwise provided in this section, a person must pay the following fees to apply for, to be issued or to renew a license as a mortgage [broker] company pursuant to this chapter:

      (a) To file an original application for a license, not more than $1,500 for the principal office and not more than $400 for each branch office. The person must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary.

      (b) To be issued a license, not more than $1,000 for the principal office and not more than $100 for each branch office.

      (c) To renew a license, not more than $500 for the principal office and not more than $100 for each branch office.

      4.  To be issued a duplicate copy of any license, a person must make a satisfactory showing of its loss and pay a fee of not more than $10.

      5.  Except as otherwise provided in this chapter, all fees received pursuant to this chapter are in addition to any fee required to be paid to the Registry and must be deposited in the Account for Mortgage Lending created by NRS 645F.270.

      6.  The Commissioner may, by regulation, adjust any fee or date set forth in this section if the Commissioner determines that such an adjustment is necessary for the Commissioner to carry out his or her duties pursuant to this chapter. The amount of any adjustment in a fee pursuant to this subsection must not exceed the amount determined to be necessary for the Commissioner to carry out his or her duties pursuant to this chapter.

      7.  The Commissioner may require a licensee to submit an item or pay a fee required by this section directly to the Commissioner or, if the licensee is required to register or voluntarily registers with the Registry, to the Commissioner through the Registry.

 


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      Sec. 19. NRS 645B.051 is hereby amended to read as follows:

      645B.051  1.  Except as otherwise provided in subsection 2, in addition to the requirements set forth in NRS 645B.050, to renew a license as a mortgage [broker:] company:

      (a) If the licensee is a natural person, the licensee must submit to the Commissioner satisfactory proof that the licensee attended at least 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

      (b) If the licensee is not a natural person, the licensee must submit to the Commissioner satisfactory proof that each natural person who supervises the daily business of the licensee attended at least 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

      2.  In lieu of the continuing education requirements set forth in paragraph (a) or (b) of subsection 1, a licensee or any natural person who supervises the daily business of the licensee who, pursuant to subsection 1 of NRS 645F.267, is not required to register or renew with the Registry and who has not voluntarily registered or renewed with the Registry must submit to the Commissioner satisfactory proof that he or she attended at least 5 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires. The hours of continuing education required by this subsection must include:

      (a) At least 3 hours relating to the laws and regulations of this State; and

      (b) At least 2 hours relating to ethics.

      3.  As used in this section, “certified course of continuing education” means a course of continuing education which relates to the mortgage industry or mortgage transactions and which meets the requirements set forth by the Commissioner by regulation pursuant to NRS 645B.0138.

      Sec. 20. NRS 645B.060 is hereby amended to read as follows:

      645B.060  1.  Subject to the administrative control of the Director of the Department of Business and Industry, the Commissioner shall exercise general supervision and control over mortgage [brokers] companies and mortgage [agents] loan originators doing business in this State.

      2.  In addition to the other duties imposed upon him or her by law, the Commissioner shall:

      (a) Adopt regulations:

             (1) Setting forth the requirements for an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property. The regulations must include, without limitation, the minimum financial conditions that the investor must comply with before becoming an investor.

             (2) Establishing reasonable limitations and guidelines on loans made by a mortgage [broker] company to a director, officer, mortgage [agent] loan originator or employee of the mortgage [broker.] company.

      (b) Adopt any other regulations that are necessary to carry out the provisions of this chapter, except as to loan [brokerage] fees.

      (c) Conduct such investigations as may be necessary to determine whether any person has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

 

 


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      (d) Except as otherwise provided in subsection 4, conduct an annual examination of each mortgage [broker] company doing business in this State. The annual examination must include, without limitation, a formal exit review with the mortgage [broker.] company. The Commissioner shall adopt regulations prescribing:

             (1) Standards for determining the rating of each mortgage [broker] company based upon the results of the annual examination; and

             (2) Procedures for resolving any objections made by the mortgage [broker] company to the results of the annual examination. The results of the annual examination may not be opened to public inspection pursuant to NRS 645B.090 until after a period of time set by the Commissioner to determine any objections made by the mortgage [broker.] company.

      (e) Conduct such other examinations, periodic or special audits, investigations and hearings as may be necessary for the efficient administration of the laws of this State regarding mortgage [brokers] companies and mortgage [agents.] loan originators. The Commissioner shall adopt regulations specifying the general guidelines that will be followed when a periodic or special audit of a mortgage [broker] company is conducted pursuant to this chapter.

      (f) Classify as confidential certain records and information obtained by the Division when those matters are obtained from a governmental agency upon the express condition that they remain confidential. This paragraph does not limit examination by:

             (1) The Legislative Auditor; or

             (2) The Department of Taxation if necessary to carry out the provisions of chapters 363A and 363C of NRS.

      (g) Conduct such examinations and investigations as are necessary to ensure that mortgage [brokers] companies and mortgage [agents] loan originators meet the requirements of this chapter for obtaining a license, both at the time of the application for a license and thereafter on a continuing basis.

      3.  For each special audit, investigation or examination, a mortgage [broker] company or mortgage [agent] loan originator shall pay a fee based on the rate established pursuant to NRS 645F.280.

      4.  The Commissioner may conduct examinations of a mortgage [broker,] company, as described in paragraph (d) of subsection 2, on a biennial instead of an annual basis if the mortgage [broker:] company:

      (a) Received a rating in the last annual examination that meets a threshold determined by the Commissioner;

      (b) Has not had any adverse change in financial condition since the last annual examination, as shown by financial statements of the mortgage [broker;] company;

      (c) Has not had any complaints received by the Division that resulted in any administrative action by the Division; and

      (d) Does not maintain any trust accounts pursuant to NRS 645B.170 or 645B.175 or arrange loans funded by private investors.

      Sec. 21. NRS 645B.075 is hereby amended to read as follows:

      645B.075  Each mortgage [broker] company shall pay the assessment levied pursuant to NRS 645F.180. Each mortgage [broker] company and mortgage [agent] loan originator shall cooperate fully with the audits and examinations performed pursuant thereto.

 


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      Sec. 22. NRS 645B.080 is hereby amended to read as follows:

      645B.080  1.  Each mortgage [broker] company shall keep and maintain at all times at each location where the mortgage [broker] company conducts business in this state complete and suitable records of all mortgage transactions made by the mortgage [broker] company at that location. Each mortgage [broker] company shall also keep and maintain at all times at each such location all original books, papers and data, or copies thereof, clearly reflecting the financial condition of the business of the mortgage [broker.] company.

      2.  Each mortgage [broker] company shall submit to the Commissioner each month a report of the mortgage [broker’s] company’s activity for the previous month. The report must:

      (a) Specify the volume of loans arranged and loans made by the mortgage [broker] company for the month or state that no loans were arranged or made in that month;

      (b) Include any information required pursuant to NRS 645B.260 or pursuant to the regulations adopted by the Commissioner; and

      (c) Be submitted to the Commissioner by the 15th day of the month following the month for which the report is made.

      3.  The Commissioner may adopt regulations prescribing accounting procedures for mortgage [brokers] companies handling trust accounts and the requirements for keeping records relating to such accounts.

      4.  Each mortgage [broker] company who is required to register or voluntarily registers with the Registry shall submit to the Registry and the Commissioner a report of condition or any other report required by the Registry in the form and at the time required by the Registry.

      Sec. 23. NRS 645B.085 is hereby amended to read as follows:

      645B.085  1.  Except as otherwise provided in this section, not later than 90 days after the last day of each fiscal year for a mortgage [broker,] company, the mortgage [broker] company shall submit to the Commissioner a financial statement that:

      (a) Is dated not earlier than the last day of the fiscal year; and

      (b) Has been prepared from the books and records of the mortgage [broker] company by an independent certified public accountant who holds a license to practice in this State or in any other state that has not been revoked or suspended.

      2.  Unless otherwise prohibited by the Registry, the Commissioner may grant a reasonable extension for the submission of a financial statement pursuant to this section if a mortgage [broker] company requests such an extension before the date on which the financial statement is due.

      3.  If a mortgage [broker] company maintains any accounts described in subsection 1 of NRS 645B.175, the financial statement submitted pursuant to this section must be audited. If a mortgage [broker] company maintains any accounts described in subsection 1 or 4 of NRS 645B.175, those accounts must be audited.

      4.  The Commissioner shall adopt regulations prescribing the scope of an audit conducted pursuant to subsection 3.

      Sec. 24. NRS 645B.090 is hereby amended to read as follows:

      645B.090  1.  Except as otherwise provided in this section or by specific statute, all papers, documents, reports and other written instruments filed with the Commissioner pursuant to this chapter are open to public inspection.

 


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      2.  Except as otherwise provided in subsection 3, the Commissioner may withhold from public inspection or refuse to disclose to a person, for such time as the Commissioner considers necessary, any information that, in the Commissioner’s judgment, would:

      (a) Impede or otherwise interfere with an investigation or examination that is currently pending against a mortgage [broker;] company;

      (b) Have an undesirable effect on the welfare of the public; or

      (c) Reveal personal information in violation of NRS 239B.030.

      3.  Except as otherwise provided in NRS 645B.092, the Commissioner shall disclose the following information concerning a mortgage [broker] company to any person who requests it:

      (a) The findings and results of any investigation which has been completed during the immediately preceding 5 years against the mortgage [broker] company pursuant to the provisions of this chapter and which has resulted in a finding by the Commissioner that the mortgage [broker] company committed a violation of a provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;

      (b) The nature of any disciplinary action that has been taken during the immediately preceding 5 years against the mortgage [broker] company pursuant to the provisions of this chapter; and

      (c) If the mortgage [broker] company makes or offers for sale in this State any investments in promissory notes secured by liens on real property:

             (1) Any information in the possession of the Commissioner regarding the present and past ownership and management structure of the mortgage [broker;] company; and

             (2) The findings and results of:

                   (I) All examinations or investigations of the mortgage [broker] company conducted pursuant to NRS 645B.060 during the immediately preceding 5 years, including, without limitation, annual or biennial examinations of the mortgage [broker] company conducted pursuant to NRS 645B.060, including, without limitation, the rating for each annual or biennial examination and an explanation of the standards for determining that rating; and

                   (II) Any other examination or audit, investigation or hearing which has been completed during the immediately preceding 3 years against the mortgage [broker] company pursuant to the provisions of this chapter.

      Sec. 25. NRS 645B.093 is hereby amended to read as follows:

      645B.093  1.  A mortgage [broker] company who is a broker-dealer or a sales representative licensed pursuant to NRS 90.310 or who is exempt from licensure pursuant to NRS 90.320:

      (a) Shall not commingle money received for mortgage transactions and money received for securities transactions; and

      (b) Shall ensure that all money received for mortgage transactions is accounted for separately from all money received for securities transactions.

      2.  A mortgage [broker] company who is an investment adviser or a representative of an investment adviser licensed pursuant to NRS 90.330 or exempt from licensure pursuant to NRS 90.340:

      (a) Shall not commingle money received for mortgage transactions and money received for securities transactions; and

      (b) Shall ensure that all money received for mortgage transactions is accounted for separately from all money received for securities transactions.

 


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ê2017 Statutes of Nevada, Page 3050 (Chapter 486, AB 468)ê

 

      Sec. 26. NRS 645B.095 is hereby amended to read as follows:

      645B.095  1.  As used in this section, “change of control” means:

      (a) A transfer of voting stock which results in giving a person, directly or indirectly, the power to direct the management and policy of a mortgage [broker;] company; or

      (b) A transfer of at least 25 percent of the outstanding voting stock of a mortgage [broker.] company.

      2.  The Commissioner must be notified in writing of a transfer of 10 percent or more of the outstanding voting stock of a mortgage [broker] company at least 15 days before such a transfer and must approve a transfer of voting stock of a mortgage [broker] company which constitutes a change of control.

      3.  The person who acquires stock resulting in a change of control of the mortgage [broker] company shall apply to the Commissioner for approval of the transfer. The application must contain information which shows that the requirements of this chapter and the Registry, if applicable, for obtaining a license will be satisfied after the change of control. Except as otherwise provided in subsection 4, the Commissioner shall conduct an investigation to determine whether those requirements will be satisfied. If, after the investigation, the Commissioner denies the application, the Commissioner may forbid the applicant from participating in the business of the mortgage [broker.] company.

      4.  A mortgage [broker] company may submit a written request to the Commissioner to waive an investigation pursuant to subsection 3. The Commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his or her employment with a financial institution.

      Sec. 27. NRS 645B.115 is hereby amended to read as follows:

      645B.115  1.  If a mortgage [broker] company maintains any accounts described in NRS 645B.175, the mortgage [broker] company and his or her mortgage [agents] loan originators shall not engage in any activity that is authorized pursuant to this chapter, unless the mortgage [broker] company maintains continuously a minimum net worth in the following amount based upon the average monthly balance of the accounts maintained by the mortgage [broker] company pursuant to NRS 645B.175:

 

AVERAGE MONTHLY BALANCE                              MINIMUM NET

                                                                                      WORTH REQUIRED

$100,000 or less................................................................................ $25,000

More than $100,000 but not more than $250,000...................... 50,000

More than $250,000 but not more than $500,000.................... 100,000

More than $500,000 but not more than $1,000,000................. 200,000

More than $1,000,000..................................................................... 250,000

 

The Commissioner shall determine the appropriate initial minimum net worth that must be maintained by the mortgage [broker] company pursuant to this section based upon the expected average monthly balance of the accounts maintained by the mortgage [broker] company pursuant to NRS 645B.175. After determining the initial minimum net worth that must be maintained by the mortgage [broker,] company, the Commissioner shall, on an annual basis, determine the appropriate minimum net worth that must be maintained by the mortgage [broker] company pursuant to this section based upon the average monthly balance of the accounts maintained by the mortgage [broker] company pursuant to NRS 645B.175.

 


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ê2017 Statutes of Nevada, Page 3051 (Chapter 486, AB 468)ê

 

maintained by the mortgage [broker,] company, the Commissioner shall, on an annual basis, determine the appropriate minimum net worth that must be maintained by the mortgage [broker] company pursuant to this section based upon the average monthly balance of the accounts maintained by the mortgage [broker] company pursuant to NRS 645B.175.

      2.  If requested by the Commissioner, a mortgage [broker] company who is subject to the provisions of this section and his or her mortgage [agents] loan originators shall submit to the Commissioner or allow the Commissioner to examine any documentation or other evidence that is related to determining the net worth of the mortgage [broker.] company.

      3.  The Commissioner:

      (a) Shall adopt regulations prescribing standards for determining the net worth of a mortgage [broker;] company; and

      (b) May adopt any other regulations that are necessary to carry out the provisions of this section.

      Sec. 28. NRS 645B.165 is hereby amended to read as follows:

      645B.165  1.  Except as otherwise permitted by law and as otherwise provided in subsection 3, the amount of any advance fee, salary, deposit or money paid to a mortgage [broker] company and his or her mortgage [agents] loan originators or any other person to obtain a loan which will be secured by a lien on real property must be placed in escrow pending completion of the loan or a commitment for the loan.

      2.  The amount held in escrow pursuant to subsection 1 must be released:

      (a) Upon completion of the loan or commitment for the loan, to the mortgage [broker] company or other person to whom the advance fee, salary, deposit or money was paid.

      (b) If the loan or commitment for the loan fails, to the person who made the payment.

      3.  Advance payments to cover reasonably estimated costs paid to third persons are excluded from the provisions of subsections 1 and 2 if the person making them first signs a written agreement which specifies the estimated costs by item and the estimated aggregate cost, and which recites that money advanced for costs will not be refunded. If an itemized service is not performed and the estimated cost thereof is not refunded, the recipient of the advance payment is subject to the penalties provided in NRS 645B.960.

      Sec. 29. NRS 645B.170 is hereby amended to read as follows:

      645B.170  1.  All money paid to a mortgage [broker] company and his or her mortgage [agents] loan originators for payment of taxes or insurance premiums on real property which secures any loan arranged or loan made by the mortgage [broker] company must be deposited in an insured depository financial institution and kept separate, distinct and apart from money belonging to the mortgage [broker.] company. Such money, when deposited, is to be designated as an “impound trust account” or under some other appropriate name indicating that the accounts are not the money of the mortgage [broker.] company.

      2.  The mortgage [broker] company has a fiduciary duty to each debtor with respect to the money in an impound trust account.

      3.  The mortgage [broker] company shall, upon reasonable notice, account to any debtor whose real property secures a loan arranged or loan made by the mortgage [broker] company for any money which that person has paid to the mortgage [broker] company for the payment of taxes or insurance premiums on the real property.

 


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has paid to the mortgage [broker] company for the payment of taxes or insurance premiums on the real property.

      4.  The mortgage [broker] company shall, upon reasonable notice, account to the Commissioner for all money in an impound trust account.

      5.  A mortgage [broker] company shall:

      (a) Require contributions to an impound trust account in an amount reasonably necessary to pay the obligations as they become due.

      (b) Undertake an annual review of an impound trust account.

      (c) Within 30 days after the completion of the annual review of an impound trust account, notify the debtor:

             (1) Of the amount by which the contributions exceed the amount reasonably necessary to pay the annual obligations due from the account; and

             (2) That the debtor may specify the disposition of the excess money within 20 days after receipt of the notice. If the debtor fails to specify such a disposition within that time, the mortgage [broker] company shall maintain the excess money in the account.

Ê This subsection does not prohibit a mortgage [broker] company from requiring additional amounts to be paid into an impound trust account to recover a deficiency that exists in the account.

      6.  A mortgage [broker] company shall not make payments from an impound trust account in a manner that causes a policy of insurance to be cancelled or causes property taxes or similar payments to become delinquent.

      Sec. 30. NRS 645B.175 is hereby amended to read as follows:

      645B.175  1.  Except as otherwise provided in this section, all money received by a mortgage [broker] company and his or her mortgage [agents] loan originators from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property must:

      (a) Be deposited in:

             (1) An insured depository financial institution; or

             (2) An escrow account which is controlled by a person who is independent of the parties and subject to instructions regarding the account which are approved by the parties.

      (b) Be kept separate from money:

             (1) Belonging to the mortgage [broker] company in an account appropriately named to indicate that the money does not belong to the mortgage [broker.] company.

             (2) Received pursuant to subsection 4.

      2.  Except as otherwise provided in this section, the amount held in trust pursuant to subsection 1 must be released:

      (a) Upon completion of the loan, including proper recordation of the respective interests or release, or upon completion of the transfer of the ownership or beneficial interest therein, to the debtor or the debtor’s designee less the amount due the mortgage [broker] company for the payment of any fee or service charge;

      (b) If the loan or the transfer thereof is not consummated, to each investor who furnished the money held in trust; or

      (c) Pursuant to any instructions regarding the escrow account.

      3.  The amount held in trust pursuant to subsection 1 must not be released to the debtor or the debtor’s designee unless:

      (a) The amount released is equal to the total amount of money which is being loaned to the debtor for that loan, less the amount due the mortgage [broker] company for the payment of any fee or service charge; and

 


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      (b) The mortgage [broker] company has provided a written instruction to a title agent or title insurer requiring that a lender’s policy of title insurance or appropriate title endorsement, which names as an insured each investor who owns a beneficial interest in the loan, be issued for the real property securing the loan.

      4.  Except as otherwise provided in this section, all money paid to a mortgage [broker] company and his or her mortgage [agents] loan originators by a person in full or in partial payment of a loan secured by a lien on real property, must:

      (a) Be deposited in:

             (1) An insured depository financial institution; or

             (2) An escrow account which is controlled by a person who is subject to instructions regarding the account which are approved by the parties.

      (b) Be kept separate from money:

             (1) Belonging to the mortgage [broker] company in an account appropriately named to indicate that it does not belong to the mortgage [broker.] company.

             (2) Received pursuant to subsection 1.

      5.  Except as otherwise provided in this section, the amount held in trust pursuant to subsection 4:

      (a) Must be released, upon the deduction and payment of any fee or service charge due the mortgage [broker,] company, to each investor who owns a beneficial interest in the loan in exact proportion to the beneficial interest that the investor owns in the loan; and

      (b) Must not be released, in any proportion, to an investor who owns a beneficial interest in the loan, unless the amount described in paragraph (a) is also released to every other investor who owns a beneficial interest in the loan.

      6.  An investor may waive, in writing, the right to receive one or more payments, or portions thereof, that are released to other investors in the manner set forth in subsection 5. A mortgage [broker] company or mortgage [agent] loan originator shall not act as the attorney-in-fact or the agent of an investor with respect to the giving of a written waiver pursuant to this subsection. Any such written waiver applies only to the payment or payments, or portions thereof, that are included in the written waiver and does not affect the right of the investor to:

      (a) Receive the waived payment or payments, or portions thereof, at a later date; or

      (b) Receive all other payments in full and in accordance with the provisions of subsection 5.

      7.  Upon reasonable notice, any mortgage [broker] company described in this section shall:

      (a) Account to any investor or debtor who has paid to the mortgage [broker] company or his or her mortgage [agents] loan originators money that is required to be deposited in a trust account pursuant to this section; and

      (b) Account to the Commissioner for all money which the mortgage [broker] company and his or her mortgage [agents] loan originators have received from each investor or debtor and which the mortgage [broker] company is required to deposit in a trust account pursuant to this section.

      8.  Money received by a mortgage [broker] company and his or her mortgage [agents] loan originators pursuant to this section from a person who is not associated with the mortgage [broker] company may be held in trust for not more than 45 days before an escrow account must be opened in connection with the loan.

 


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trust for not more than 45 days before an escrow account must be opened in connection with the loan. If, within this 45-day period, the loan or the transfer therefor is not consummated, the money must be returned within 24 hours. If the money is so returned, it may not be reinvested with the mortgage [broker] company for at least 15 days.

      9.  If a mortgage [broker] company or a mortgage [agent] loan originator receives any money pursuant to this section, the mortgage [broker] company or mortgage [agent,] loan originator, after the deduction and payment of any fee or service charge due the mortgage [broker,] company, shall not release the money to:

      (a) Any person who does not have a contractual or legal right to receive the money; or

      (b) Any person who has a contractual right to receive the money if the mortgage [broker] company or mortgage [agent] loan originator knows or, in light of all the surrounding facts and circumstances, reasonably should know that the person’s contractual right to receive the money violates any provision of this chapter or a regulation adopted pursuant to this chapter.

      10.  If a mortgage [broker] company maintains any accounts described in subsection 1 or 4, the mortgage [broker] company shall, in addition to the annual financial statement audited pursuant to NRS 645B.085, submit to the Commissioner each 6 calendar months a financial statement concerning those trust accounts.

      11.  The Commissioner shall adopt regulations concerning the form and content required for financial statements submitted pursuant to subsection 10.

      12.  Any duty, responsibility or obligation of a mortgage [broker] company pursuant to this chapter is not delegable or transferable to an investor, and, if an investor only provides money to acquire ownership of or a beneficial interest in a loan secured by a lien on real property, no criminal or civil liability may be imposed on the investor for any act or omission of a mortgage [broker.] company.

      Sec. 31. NRS 645B.180 is hereby amended to read as follows:

      645B.180  1.  Money in an impound trust account is not subject to execution or attachment on any claim against the mortgage [broker] company or his or her mortgage [agents.] loan originators.

      2.  It is unlawful for a mortgage [broker] company or his or her mortgage [agents] loan originators knowingly to keep or cause to be kept any money in a depository financial institution under the heading of “impound trust account” or any other name designating such money as belonging to the investors or debtors of the mortgage [broker,] company, unless the money has been paid to the mortgage [broker] company or his or her mortgage [agents] loan originators by an investor or debtor and is being held in trust by the mortgage [broker] company pursuant to NRS 645B.170 or 645B.175.

      Sec. 32. NRS 645B.185 is hereby amended to read as follows:

      645B.185  1.  A mortgage [broker] company or mortgage [agent] loan originator shall not accept money from a private investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property unless:

      (a) The private investor and the mortgage [broker] company or mortgage [agent] loan originator sign and date a disclosure form that complies with the provisions of this section; and

 


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      (b) The mortgage [broker] company or mortgage [agent] loan originator gives the private investor the original disclosure form that has been signed and dated.

      2.  A private investor and a mortgage [broker] company or mortgage [agent] loan originator must sign and date a separate disclosure form pursuant to subsection 1 for each loan in which the private investor invests his or her money. A mortgage [broker] company or mortgage [agent] loan originator shall not act as the attorney-in-fact or the agent of a private investor with respect to the signing or dating of any disclosure form.

      3.  In addition to the requirements of subsections 1 and 2, a mortgage [broker] company or mortgage [agent] loan originator shall not accept money from a private investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property, unless the mortgage [broker] company or mortgage [agent] loan originator gives the private investor a written form by which the private investor may request that the mortgage [broker] company authorize the Commissioner to release the mortgage [broker’s] company’s financial statement to the private investor. Such a form must be given to the private investor for each loan. If the private investor, before giving money to the mortgage [broker] company for the loan, requests that the mortgage [broker] company authorize the release of a financial statement pursuant to this subsection, the mortgage [broker] company and his or her mortgage [agents] loan originators shall not accept money from the private investor for that loan until the mortgage [broker] company receives notice from the Commissioner that the financial statement has been released to the private investor.

      4.  A private investor and a mortgage [broker] company or mortgage [agent] loan originator may not agree to alter or waive the provisions of this section by contract or other agreement. Any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.

      5.  A mortgage [broker] company shall retain a copy of each disclosure form that is signed and dated pursuant to subsection 1 for the period that is prescribed in the regulations adopted by the Commissioner.

      6.  The standard provisions for each such disclosure form must include, without limitation, statements:

      (a) Explaining the risks of investing through the mortgage [broker,] company, including, without limitation:

             (1) The possibility that the debtor may default on the loan;

             (2) The nature of the losses that may result through foreclosure;

             (3) The fact that payments of principal and interest are not guaranteed and that the private investor may lose the entire amount of principal that he or she has invested;

             (4) The fact that the mortgage [broker] company is not a depository financial institution and that the investment is not insured by any depository insurance and is not otherwise insured or guaranteed by the Federal or State Government; and

             (5) Any other information required pursuant to the regulations adopted by the Commissioner; and

      (b) Disclosing to the private investor the following information if the information is known or, in light of all the surrounding facts and circumstances, reasonably should be known to the mortgage [broker:] company:

 


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ê2017 Statutes of Nevada, Page 3056 (Chapter 486, AB 468)ê

 

             (1) Whether the real property that will secure the loan is encumbered by any other liens and, if so, the priority of each such lien, the amount of debt secured by each such lien and the current status of that debt, including, without limitation, whether the debt is being paid or is in default;

             (2) Whether the mortgage [broker] company or any general partner, officer, director or mortgage [agent] loan originator of the mortgage [broker] company has any direct or indirect interest in the debtor;

             (3) Whether any disciplinary action has been taken by the Commissioner against the mortgage [broker] company or any general partner, officer or director of the mortgage [broker] company within the immediately preceding 12 months, and the nature of any such disciplinary action;

             (4) Whether the mortgage [broker] company or any general partner, officer or director of the mortgage [broker] company has been convicted within the immediately preceding 12 months for violating any law, ordinance or regulation that involves fraud, misrepresentation or a deceitful, fraudulent or dishonest business practice; and

             (5) Any other information required pursuant to the regulations adopted by the Commissioner.

      7.  Whether or not a mortgage [broker] company is required to disclose any information to private investors through a disclosure form that complies with the provisions of this section, the Commissioner may order the mortgage [broker] company to disclose to private investors and other investors or to the general public any information concerning the mortgage [broker,] company, any general partner, officer, director or mortgage [agent] loan originator of the mortgage [broker] company or any loan in which the mortgage [broker] company is or has been involved, if the Commissioner, in his or her judgment, believes that the information:

      (a) Would be of material interest to a reasonable investor who is deciding whether to invest money with the mortgage [broker;] company; or

      (b) Is necessary to protect the welfare of the public.

      8.  In carrying out the provisions of subsection 7, the Commissioner may, without limitation, order a mortgage [broker] company to include statements of disclosure prescribed by the Commissioner:

      (a) In the disclosure form that must be given to private investors pursuant to subsection 1;

      (b) In additional disclosure forms that must be given to private investors and other investors before or after they have invested money through the mortgage [broker;] company; or

      (c) In any advertisement that the mortgage [broker] company uses in carrying on his or her business.

      9.  The Commissioner:

      (a) Shall adopt regulations prescribing the period for which a mortgage [broker] company must retain a copy of each disclosure form that is given to private investors; and

      (b) May adopt any other regulations that are necessary to carry out the provisions of this section, including, without limitation, regulations specifying the size of print and any required formatting or typesetting that a mortgage [broker] company must use in any form that is given to private investors.

 


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ê2017 Statutes of Nevada, Page 3057 (Chapter 486, AB 468)ê

 

      Sec. 33. NRS 645B.186 is hereby amended to read as follows:

      645B.186  1.  If a licensee or a relative of the licensee is licensed as, conducts business as or holds a controlling interest or position in:

      (a) A construction control;

      (b) An escrow agency or escrow agent; or

      (c) A title agent, a title insurer or an escrow officer of a title agent or title insurer,

Ê the licensee shall fully disclose his or her status as, connection to or relationship with the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer to each investor, and the licensee shall not require, as a condition to an investor acquiring ownership of or a beneficial interest in a loan secured by a lien on real property, that the investor transact business with or use the services of the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer or that the investor authorize the licensee to transact business with or use the services of the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer on behalf of the investor.

      2.  For the purposes of this section, a person shall be deemed to hold a controlling interest or position if the person:

      (a) Owns or controls a majority of the voting stock or holds any other controlling interest, directly or indirectly, that gives the person the power to direct management or determine policy; or

      (b) Is a partner, officer, director or trustee.

      3.  As used in this section, “licensee” means:

      (a) A person who is licensed as a mortgage [broker] company or mortgage [agent] loan originator pursuant to this chapter; and

      (b) Any general partner, officer or director of such a person.

      Sec. 34. NRS 645B.187 is hereby amended to read as follows:

      645B.187  1.  If a mortgage [broker] company or mortgage [agent] loan originator solicits or receives money from an investor, the mortgage [broker] company or mortgage [agent] loan originator shall not:

      (a) In any advertisement; or

      (b) Before, during or after solicitation or receipt of money from the investor,

Ê make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a reasonable person would construe as a guarantee that the investor will be repaid the principal amount of money he or she invests or will earn a specific rate of return or a specific rate of interest on the principal amount of money he or she invests.

      2.  If a mortgage [broker] company offers to pay or pays premium interest on money that the mortgage [broker] company receives from a person to acquire ownership of or a beneficial interest in a loan secured by a lien on real property or in full or partial payment of such a loan:

      (a) The premium interest must be paid from the assets or income of the mortgage [broker;] company; and

      (b) The mortgage [broker] company or a mortgage [agent] loan originator shall not:

             (1) In any advertisement; or

             (2) Before, during or after receipt of money from such a person,

 


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ê2017 Statutes of Nevada, Page 3058 (Chapter 486, AB 468)ê

 

Ê make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a reasonable person would construe as a guarantee that the mortgage [broker] company will pay the premium interest.

      3.  A person who violates any provision of this section is guilty of a misdemeanor and shall be punished as provided in NRS 645B.950.

      4.  As used in this section, “premium interest” means that amount of interest a mortgage [broker] company pays to a person which exceeds the amount which is being obtained from the insured depository financial institution.

      Sec. 35. NRS 645B.189 is hereby amended to read as follows:

      645B.189  1.  If, in carrying on his or her business, a mortgage [broker] company uses an advertisement that is designed, intended or reasonably likely to solicit money from private investors, the mortgage [broker] company shall include in each such advertisement a statement of disclosure in substantially the following form:

 

Money invested through a mortgage [broker] company is not guaranteed to earn any interest or return and is not insured.

 

      2.  A mortgage [broker] company shall include in each advertisement that the mortgage [broker] company uses in carrying on his or her business any statements of disclosure required pursuant to the regulations adopted by the Commissioner or required pursuant to an order of the Commissioner entered in accordance with subsections 7 and 8 of NRS 645B.185.

      3.  Each mortgage [broker] company who has received an initial license within the past 12 months shall submit any proposed advertisement that the mortgage [broker] company intends to use in carrying on his or her business to the Commissioner for approval.

      4.  In addition to the requirements set forth in this chapter, each advertisement that a mortgage [broker] company uses in carrying on his or her business must comply with the requirements of:

      (a) NRS 598.0903 to 598.0999, inclusive, concerning deceptive trade practices; and

      (b) Any applicable federal statute or regulation concerning deceptive advertising and the advertising of interest rates.

      5.  If a mortgage [broker] company violates any provision of NRS 598.0903 to 598.0999, inclusive, concerning deceptive trade practices or any federal statute or regulation concerning deceptive advertising or the advertising of interest rates, in addition to any sanction or penalty imposed by state or federal law upon the mortgage [broker] company for the violation, the Commissioner may take any disciplinary action set forth in paragraph (b) of subsection 1 of NRS 645B.670 against the mortgage [broker.] company.

      6.  The Commissioner may adopt any regulations that are necessary to carry out the provisions of this section.

      Sec. 36. NRS 645B.196 is hereby amended to read as follows:

      645B.196  1.  An advertising spokesperson for a mortgage [broker] company is jointly and severally liable with the mortgage [broker] company for damages caused by the mortgage [broker] company by fraud, embezzlement, misappropriation of property, a violation of the provisions of this chapter or the regulations adopted pursuant thereto, or an action of the mortgage [broker] company that is grounds for disciplinary action, if:

 


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ê2017 Statutes of Nevada, Page 3059 (Chapter 486, AB 468)ê

 

this chapter or the regulations adopted pursuant thereto, or an action of the mortgage [broker] company that is grounds for disciplinary action, if:

      (a) The advertising spokesperson knew or should have known of the fraud, embezzlement, misappropriation of property, violation of the provisions of this chapter or the regulations adopted pursuant thereto, or action of the mortgage [broker] company that is grounds for disciplinary action; or

      (b) In advertising for the mortgage [broker,] company, the advertising spokesperson knew or should have known that:

             (1) The conduct of the advertising spokesperson was likely to deceive, defraud or harm the public or any person who engaged in business with the mortgage [broker;] company; or

             (2) The advertising spokesperson was disseminating material information concerning the mortgage [broker] company or the business, products or services of the mortgage [broker] company which was false or misleading.

      2.  As used in this section:

      (a) “Advertising for a mortgage [broker”] company” means advertising or otherwise promoting a mortgage [broker] company or the business, products or services of the mortgage [broker] company using any medium of communication.

      (b) “Advertising spokesperson for a mortgage [broker”] company” or “advertising spokesperson” means a person who consents to and receives compensation for using his or her name or likeness in advertising for a mortgage [broker.] company.

      Sec. 37. NRS 645B.240 is hereby amended to read as follows:

      645B.240  1.  If a person is required to make a payment to a mortgage [broker] company pursuant to the terms of a loan secured by a lien on real property, the mortgage [broker] company may not charge the person a late fee, an additional amount of interest or any other penalty in connection with that payment if the payment is delivered to the mortgage [broker] company before 5 p.m. on:

      (a) The day that the payment is due pursuant to the terms of the loan, if an office of the mortgage [broker] company is open to customers until 5 p.m. on that day; or

      (b) The next day that an office of the mortgage [broker] company is open to customers until 5 p.m., if the provisions of paragraph (a) do not otherwise apply.

      2.  A person and a mortgage [broker] company or mortgage [agent] loan originator may not agree to alter or waive the provisions of this section by contract or other agreement, and any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.

      Sec. 38. NRS 645B.250 is hereby amended to read as follows:

      645B.250  Except pursuant to a contract for the collection or servicing of a loan which is governed by the requirements established by the Government National Mortgage Association, Federal Home Loan Mortgage Corporation or Federal National Mortgage Association, a mortgage [broker] company or mortgage [agent] loan originator shall not advance payments to an investor on behalf of a person who has obtained a loan secured by a lien on real property and who has defaulted in his or her payments.

 


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ê2017 Statutes of Nevada, Page 3060 (Chapter 486, AB 468)ê

 

      Sec. 39. NRS 645B.260 is hereby amended to read as follows:

      645B.260  1.  If a mortgage [broker] company maintains any accounts described in subsection 4 of NRS 645B.175 in which the mortgage [broker] company deposits payments from a debtor on a loan secured by a lien on real property and, on the last day of any month, the debtor has failed to make two or more consecutive payments in accordance with the terms of the loan, the mortgage [broker] company shall:

      (a) Include in the report that the mortgage [broker] company submits to the Commissioner pursuant to subsection 2 of NRS 645B.080 the information relating to delinquencies in payments and defaults that is required by the regulations adopted pursuant to subsection 2;

      (b) Not later than 15 days after the last day of each such month, mail to the last known address of each investor who owns a beneficial interest in the loan a notice containing the information relating to delinquencies in payments and defaults that is required by the regulations adopted pursuant to subsection 2; and

      (c) Comply with the provisions of this section each month on a continuing basis until:

             (1) The debtor or the debtor’s designee remedies the delinquency in payments and any default; or

             (2) The lien securing the loan is extinguished.

      2.  The Commissioner:

      (a) Shall adopt regulations prescribing the information relating to delinquencies in payments and defaults that a mortgage [broker] company must include in his or her report to the Commissioner and in the notice mailed to investors pursuant to subsection 1. Such regulations may provide for variations between the information that a mortgage [broker] company must include in his or her report to the Commissioner and the information that a mortgage [broker] company must include in the notice mailed to investors.

      (b) May adopt any other regulations that are necessary to carry out the provisions of this section.

      Sec. 40. NRS 645B.300 is hereby amended to read as follows:

      645B.300  1.  Except as otherwise provided in subsection 4, a mortgage [broker] company or mortgage [agent] loan originator shall not accept money from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property, unless the mortgage [broker] company has obtained a written appraisal of the real property securing the loan.

      2.  The written appraisal of the real property:

      (a) Must be completed not more than 6 months before the mortgage [broker’s] company’s first solicitation for the loan;

      (b) Must meet the standards set forth in the Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal Standards Board of The Appraisal Foundation;

      (c) Must be performed by an appraiser who is authorized to perform appraisals in this State or in the state where the real property securing the loan is located; and

      (d) Must not be performed by the mortgage [broker] company or a mortgage [agent,] loan originator, unless the mortgage [broker] company or mortgage [agent] loan originator is certified or licensed to perform such an appraisal pursuant to chapter 645C of NRS.

 


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ê2017 Statutes of Nevada, Page 3061 (Chapter 486, AB 468)ê

 

      3.  A copy of the written appraisal of the real property must be:

      (a) Maintained at each office of the mortgage [broker] company where money is accepted from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on the real property; and

      (b) Made available during normal business hours for inspection by each such investor and the Commissioner.

      4.  A mortgage [broker] company is not required to obtain a written appraisal of the real property pursuant to this section if the mortgage [broker] company obtains a written waiver of the appraisal from each investor who acquires ownership of or a beneficial interest in a loan secured by a lien on the real property. A mortgage [broker] company or mortgage [agent] loan originator shall not act as the attorney-in-fact or the agent of an investor with respect to the giving of a written waiver pursuant to this subsection.

      5.  If the mortgage [broker] company obtains a written waiver of the appraisal as provided in subsection 4, the mortgage [broker] company shall provide to each investor before accepting any money from the investor a separate written disclosure which contains the information analyzed, the valuation methods and techniques employed and the reasoning for any opinion regarding value provided by or on behalf of the mortgage [broker.] company.

      6.  As used in this section, “appraisal” has the meaning ascribed to it in NRS 645C.030.

      Sec. 41. NRS 645B.305 is hereby amended to read as follows:

      645B.305  A mortgage [broker] company shall ensure that each loan secured by a lien on real property for which he or she engages in activity as a mortgage [broker] company includes a disclosure:

      1.  Describing, in a specific dollar amount, all fees earned by the mortgage [broker;] company;

      2.  Explaining which party is responsible for the payment of the fees described in subsection 1; and

      3.  Explaining the probable impact the fees described in subsection 1 may have on the terms of the loan, including, without limitation, the interest rates.

      Sec. 42. NRS 645B.307 is hereby amended to read as follows:

      645B.307  A mortgage [broker] company shall ensure that each loan secured by a lien on real property for which he or she engages in activity as a mortgage [broker] company includes:

      1.  If the mortgage [broker] company is not registered with the Registry, the license number of the mortgage [broker;] company; or

      2.  Any identifying number issued by the Registry.

      Sec. 43. NRS 645B.310 is hereby amended to read as follows:

      645B.310  A mortgage [broker] company shall not assign all or a part of his or her interest in a loan secured by a lien on real property, unless the mortgage [broker:] company:

      1.  Obtains a policy of title insurance for the real property;

      2.  Obtains the approval of the assignment from each investor who has acquired ownership of or a beneficial interest in the loan if, at the time of the assignment, the debtor on the loan has defaulted in making a payment required for the loan or any portion of the loan; and

      3.  Records the assignment in the office of the county recorder of the county in which the real property is located.

 


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      Sec. 44. NRS 645B.320 is hereby amended to read as follows:

      645B.320  If money from an investor is released to a debtor or the debtor’s designee pursuant to subsection 2 of NRS 645B.175 upon completion of a loan secured by a lien on real property, the mortgage [broker] company that arranged the loan shall, not later than 3 business days after the date on which the mortgage [broker] company receives a copy of the recorded deed of trust, mail to the last known address of each investor who owns a beneficial interest in the loan a copy of the recorded deed of trust.

      Sec. 45. NRS 645B.330 is hereby amended to read as follows:

      645B.330  1.  A mortgage [broker] company or mortgage [agent] loan originator shall not engage in any act or transaction on behalf of a private investor pursuant to a power of attorney unless:

      (a) The power of attorney is executed for the sole purpose of providing services for not more than one specific loan in which the private investor owns a beneficial interest; and

      (b) The provisions of the power of attorney:

             (1) Have been approved by the Commissioner;

             (2) Expressly prohibit the mortgage [broker] company and his or her mortgage [agents] loan originators from engaging in any act or transaction that subordinates the priority of a recorded deed of trust unless, before such an act or transaction, the mortgage [broker] company obtains written approval for the subordination from the private investor;

             (3) Expressly prohibit the mortgage [broker] company and his or her mortgage [agents] loan originators from using or releasing any money in which the private investor owns a beneficial interest with regard to the specific loan for a purpose that is not directly related to providing services for the loan unless, before any such money is used or released for another purpose, the mortgage [broker] company obtains written approval from the private investor to use or release the money for the other purpose; and

             (4) Expressly provide that the power of attorney is effective only for the term of the specific loan unless the mortgage [broker] company obtains written approval from the private investor to extend the term of the power of attorney to provide services for not more than one other loan and the written approval:

                   (I) Identifies the loan for which the power of attorney was executed; and

                   (II) Identifies the loan for which the written approval is being given.

      2.  A mortgage [broker] company or mortgage [agent] loan originator shall not act as the attorney-in-fact or the agent of a private investor with respect to the giving of written approval pursuant to paragraph (b) of subsection 1. A private investor and a mortgage [broker] company or mortgage [agent] loan originator may not agree to alter or waive the provisions of this section by contract or other agreement. Any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.

      3.  Except as otherwise provided in subsection 4, a power of attorney which designates a mortgage [broker] company or mortgage [agent] loan originator as the attorney-in-fact or the agent of a private investor and which violates the provisions of this section is void and must not be given effect with regard to any act or transaction that occurs on or after October 1, 1999, whether or not the power of attorney is or has been executed by the private investor before, on or after October 1, 1999.

 


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whether or not the power of attorney is or has been executed by the private investor before, on or after October 1, 1999.

      4.  The provisions of subsection 3 do not apply to a power of attorney that designates a mortgage [broker] company or mortgage [agent] loan originator as the attorney-in-fact or the agent of a private investor if the power of attorney:

      (a) Was executed before July 1, 2001; and

      (b) Complied with the provisions of this section that were in effect on October 1, 1999.

      5.  The provisions of this section do not limit the right of a private investor to include provisions in a power of attorney that are more restrictive than the provisions set forth in subsection 1.

      Sec. 46. NRS 645B.340 is hereby amended to read as follows:

      645B.340  1.  Except as otherwise provided by law or by agreement between the parties and regardless of the date the interests were created, if the beneficial interest in a loan or the ownership interest in the real property previously securing the loan belongs to more than one person, the holders of the beneficial interest in a loan whose interests represent 51 percent or more of the outstanding principal balance of the loan or the holders of 51 percent or more of the ownership interest in the real property, as indicated on a trustee’s deed upon sale recorded pursuant to subsection 10 of NRS 107.080, a deed recorded pursuant to subsection 5 of NRS 40.430 or a deed in lieu of foreclosure, and any subsequent deed selling, transferring or assigning an ownership interest, may act on behalf of all the holders of the beneficial interests or ownership interests of record on matters which require the action of the holders of the beneficial interests in the loan or the ownership interests in the real property, including, without limitation:

      (a) The designation of a mortgage [broker] company or mortgage [agent,] loan originator, servicing agent or any other person to act on behalf of all the holders of the beneficial interests or ownership interests of record;

      (b) The foreclosure of the property for which the loan was made;

      (c) The subsequent sale, transfer, encumbrance or lease of real property owned by the holders resulting from a foreclosure or the receipt of a deed in lieu of a foreclosure in full satisfaction of a loan, to a bona fide purchaser or encumbrancer for value;

      (d) The release of any obligation under a loan in return for an interest in equity in the real property or, if the loan was made to a person other than a natural person, an interest in equity of that entity; and

      (e) The modification or restructuring of any term of the loan, deed of trust or other document relating to the loan, including, without limitation, changes to the maturity date, interest rate and the acceptance of payment of less than the full amount of the loan and any accrued interest in full satisfaction of the loan.

      2.  A person designated to act pursuant to subsection 1 on behalf of the holders of the beneficial interest in a loan or the ownership interest in real property shall, not later than 30 days before the date on which the holders will determine whether or not to act pursuant to subsection 1, send a written notice of the action to each holder of a beneficial interest or ownership interest at the holder’s last known address, by a delivery service that provides proof of delivery or evidence that the notice was sent. The written notice must state:

 


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      (a) The actions that will be taken on behalf of the holders who consent to an action pursuant to this section, if the holders of the beneficial interest in a loan whose interests represent 51 percent or more of the outstanding principal balance of the loan or the holders of 51 percent or more of the ownership interest in the real property act pursuant to subsection 1;

      (b) The actions that will be taken on behalf of the holders who do not consent to an action pursuant to this section, if the holders of the beneficial interest in a loan whose interests represent 51 percent or more of the outstanding principal balance of the loan or the holders of 51 percent or more of the ownership interest in the real property act pursuant to subsection 1; and

      (c) The amount of the costs or, if an amount is unknown, an estimate of the amount of the costs that will be allocated to, or due from, the holder and deducted from any proceeds owed to the holder.

      3.  If real property is sold, transferred, encumbered or leased pursuant to paragraph (c) of subsection 1, any beneficial interest in the loan or ownership interest in the real property of a holder who does not consent to the sale, transfer, encumbrance or lease, including, without limitation, any interest of a tenant in common who does not consent to the sale, transfer, encumbrance or lease, must be sold, transferred, encumbered or leased by a reference to this section and by the signatures on the necessary documents of the holders consenting to the sale, transfer, encumbrance or lease of the real property. The holders consenting to the sale, transfer, encumbrance or lease of the real property shall designate a representative to sign any necessary documents on behalf of the holders who do not consent to the sale, transfer, encumbrance or lease and, if the representative maintains written evidence of the consent of the number of holders described in subsection 1, the representative is not liable for any action taken pursuant to this subsection.

      4.  Any action which is taken pursuant to subsection 1 must be in writing.

      5.  The provisions of this section do not apply to a transaction involving two investors with equal interests.

      Sec. 47. NRS 645B.350 is hereby amended to read as follows:

      645B.350  A mortgage [broker] company shall not accept money from an investor to acquire ownership of or a beneficial interest in a loan which has more than one investor at the time of origination unless the mortgage [broker] company provides to each investor a form which allows the investor to choose one of the following options:

      1.  That, upon receipt of a written request submitted by another investor who owns or has a beneficial interest in the loan, the mortgage [broker] company may provide to that other investor the name, address, telephone number and electronic mail address of the investor;

      2.  That, upon receipt of a written request submitted by another investor who owns or has a beneficial interest in the loan, the mortgage [broker] company may provide to that other investor the name, address, telephone number and electronic mail address of the investor only if the loan is in default; or

      3.  That the address, telephone number and electronic mail address of the investor must remain confidential and that the mortgage [broker] company may not provide that information to any other investor unless the investor provides the mortgage [broker] company with subsequent written permission to provide such information to other investors.

 


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      Sec. 48. NRS 645B.351 is hereby amended to read as follows:

      645B.351  1.  A mortgage [broker] company who makes or arranges a loan shall not include in any loan document a provision which requires a private investor to participate in binding arbitration of disputes relating to the loan.

      2.  The provisions of this section may not be varied by agreement, and the rights conferred by this section may not be waived. Any provision included in a loan document agreement that conflicts with this section is void.

      Sec. 49. NRS 645B.352 is hereby amended to read as follows:

      645B.352  1.  Before servicing a loan in which a private investor has acquired a beneficial interest, a mortgage [broker] company must enter into a written servicing agreement with each investor which describes specifically the services which the mortgage [broker] company will provide and the compensation the mortgage [broker] company will receive for those services. The compensation of the mortgage [broker] company must include an amount reasonably necessary to pay the cost of servicing the loan.

      2.  A mortgage [broker] company shall include in each servicing agreement provisions which:

      (a) Require the mortgage [broker] company to:

             (1) Deposit in a trust account all money paid to the mortgage [broker] company in full or partial payment of a loan, unless a provision of law authorizes the mortgage [broker] company to deposit such money in a different manner;

             (2) Release to the investors, pursuant to paragraph (a) of subsection 5 of NRS 645B.175, within 15 days after receipt of all money paid to the mortgage [broker] company in full or partial payment of a loan;

             (3) Record a request for special notice and notice of default for any encumbrance on the real property which has priority over the lien securing the loan or any other real property securing the loan;

             (4) Provide to each investor prompt written notice of:

                   (I) Any lis pendens, mechanic’s lien or other lien recorded against the real property securing the loan after the origination of the loan if the mortgage [broker] company has become aware that such an instrument has been recorded; and

                   (II) Any delinquent taxes or insurance premiums;

             (5) Upon receiving a written request from an investor for a tally of any vote of the investors, provide to the investor a statement of the number of investors voting in favor of an action and the number of investors voting against the action and the percentage of beneficial interest represented by each such vote; and

             (6) Respond within a reasonable time under the circumstances to the request of the borrower or investor to correct any errors relating to the loan.

      (b) Prohibit the mortgage [broker] company from:

             (1) Commingling with the assets of the mortgage [broker] company any money paid to the mortgage [broker] company in full or partial payment of a loan, unless a provision of law authorizes such commingling;

             (2) Using money paid to the mortgage [broker] company in full or partial payment of a loan for any transaction other than the servicing transaction for which the money was paid, unless a provision of law authorizes such use; or

 


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             (3) Requiring an investor to participate in binding arbitration of disputes relating to the loan.

      (c) Allow the majority of investors or the mortgage [broker] company to transfer the servicing agreement to another entity authorized to service loans or terminate the servicing agreement for any reason, upon providing written notice at least 30 days before the effective date of the transfer or termination.

      Sec. 50. NRS 645B.353 is hereby amended to read as follows:

      645B.353  Except as otherwise permitted by law, a mortgage [broker] company shall not release a borrower or guarantor from personal liability for a loan unless a majority of the investors approve such a release.

      Sec. 51. NRS 645B.354 is hereby amended to read as follows:

      645B.354  1.  If an investor owes money to the mortgage [broker] company who is servicing a loan or to other investors, the mortgage [broker] company shall not withhold money due the investor in order to offset the money owed to the mortgage [broker] company or to another investor, unless:

      (a) The mortgage [broker] company obtains the written consent of the investor who owes the money; or

      (b) A court order requires the mortgage [broker] company to withhold the money.

      2.  A mortgage [broker] company may include in a loan servicing agreement a provision which provides written consent to withhold money due an investor in order to offset money owed by the investor to the mortgage [broker] company or other investors.

      Sec. 52. NRS 645B.355 is hereby amended to read as follows:

      645B.355  A mortgage [broker] company shall not act as a construction control with respect to money belonging to a borrower or investor. If a borrower or investor wishes to utilize a construction control for money belonging to the borrower or investor, a mortgage [broker] company must place the money with a person who is independent of the mortgage [broker] company and is licensed or authorized to accept such money. The money must be subject to the control of a construction control which is in compliance with, or exempt from, the provisions of NRS 627.180 or 627.183.

      Sec. 53. NRS 645B.356 is hereby amended to read as follows:

      645B.356  1.  A mortgage [broker] company shall not place or arrange to place a private investor into a limited-liability company, business trust or other entity before or after foreclosure of the real property securing the loan, or receipt of a deed in lieu of foreclosure in full satisfaction of a loan secured by the real property, unless the mortgage [broker:] company:

      (a) Provides a copy of the organizational documents of the limited-liability company, business trust or other entity to each investor not later than 5 days before the transfer of the interest in the loan or the interest in the real property;

      (b) Obtains the written authorization of a sufficient number of the investors to act on behalf of all the investors pursuant to NRS 645B.340; and

      (c) Obtains the written authorization of each investor consenting to the transfer of his or her interest in the loan or in the real property to the limited-liability company, business trust or other entity.

      2.  If a private investor is placed into a limited-liability company, business trust or other entity pursuant to subsection 1, any beneficial interest in a loan or ownership interest in real property of the private investor who does not consent to the placement, including, without limitation, any interest of a tenant in common who does not consent to the placement, must be placed in the limited-liability company, business trust or other entity by a reference to this section and by the signatures on the necessary documents of the investors consenting to the placement.

 


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does not consent to the placement, including, without limitation, any interest of a tenant in common who does not consent to the placement, must be placed in the limited-liability company, business trust or other entity by a reference to this section and by the signatures on the necessary documents of the investors consenting to the placement. The investors who consent to an action pursuant to subsection 1 shall designate a representative to sign any necessary documents on behalf of the investors who do not consent to the action, and if the representative maintains written evidence of the consent of the number of investors described in paragraph (b) of subsection 1, the representative is not liable for any action taken pursuant to this subsection.

      3.  The documents provided to each investor pursuant to paragraph (a) of subsection 1 must clearly and concisely state any fees which will be paid to the mortgage [broker] company by the limited-liability company, business trust or other entity, and the sections of the documents that state fees must be initialed by the investor and any representative designated pursuant to subsection 2.

      4.  A mortgage [broker] company or mortgage [agent] loan originator shall not act as the attorney-in-fact or the agent of a private investor for the signing or dating of the written authorization.

      5.  Any term of a contract or other agreement that attempts to alter or waive the requirements of this section is void.

      Sec. 54. NRS 645B.357 is hereby amended to read as follows:

      645B.357  1.  A mortgage [broker] company shall not assess or collect any fee which is not:

      (a) Authorized by the loan documents or loan servicing agreement; and

      (b) Assessed or collected in exchange for bona fide services rendered or costs incurred.

      2.  A mortgage [broker] company shall apply all fees collected in the manner set forth in the loan documents or loan servicing agreement.

      Sec. 55. NRS 645B.400 is hereby amended to read as follows:

      645B.400  A person shall not act as or provide any of the services of a mortgage [agent or] loan originator, otherwise engage in, carry on or hold himself or herself out as engaging in or carrying on the activities of a mortgage [agent] loan originator or supervise a mortgage loan originator unless the person:

      1.  Has a license as a mortgage [agent] loan originator issued pursuant to NRS 645B.410 [.

      2.  Is:

      (a) If the person is not a loan processor who is an independent contractor, an employee of a mortgage broker or mortgage banker; or

      (b) An] to 645B.460, inclusive, or is an employee of or associated with a person who holds a certificate of exemption pursuant to NRS 645B.016.

      [3.]2.  If the person is required to register with the Registry:

      (a) Is an employee of and whose sponsorship has been entered with the Registry by a mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016 as required by subsection 2 of NRS 645B.450; and

      (b) Is registered with and provides any identifying number issued by the Registry.

      Sec. 56. NRS 645B.405 is hereby amended to read as follows:

      645B.405  A mortgage [broker] company or qualified employee who wishes to engage in activities as a residential mortgage loan originator or to supervise a mortgage [agent] loan originator who engages in activities as a residential mortgage loan originator must obtain and maintain a license as a mortgage [agent] loan originator pursuant to the provisions of NRS 645B.400 to 645B.460, inclusive.

 


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supervise a mortgage [agent] loan originator who engages in activities as a residential mortgage loan originator must obtain and maintain a license as a mortgage [agent] loan originator pursuant to the provisions of NRS 645B.400 to 645B.460, inclusive.

      Sec. 57. NRS 645B.410 is hereby amended to read as follows:

      645B.410  1.  To obtain a license as a mortgage [agent,] loan originator, a person must:

      (a) Be a natural person;

      (b) File a written application for a license as a mortgage [agent] loan originator with the Office of the Commissioner;

      (c) Comply with the applicable requirements of this chapter;

      (d) Pay an application fee set by the Commissioner of not more than $185; and

      (e) Be:

             (1) Employed by, or have received an offer of employment from, a mortgage [broker;

             (2) Employed by, or have received an offer of employment from, a mortgage banker;

             (3)] company;

             (2) Associated with or employed by, or have received an offer of a contract with or an offer of employment from, a person who holds a certificate of exemption pursuant to NRS 645B.016; or

             [(4)](3) A loan processor who is not an employee and who is associated with, or has received an offer of a contract with, a mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016.

      2.  An application for a license as a mortgage [agent] loan originator must:

      (a) State the name and residence address of the applicant;

      (b) Include a provision by which the applicant gives written consent to the Division and, if applicable, the Registry for an investigation of his or her credit history, criminal history and background;

      (c) Unless fingerprints were submitted to the Registry, include a complete set of fingerprints which the Division may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;

      (d) Include a verified statement from the mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016 with whom the applicant will be associated or employed that expresses the intent of that mortgage [broker, mortgage banker] company or exempt person to employ or associate the applicant with the mortgage [broker, mortgage banker] company or exempt person and to be responsible for the activities of the applicant as a mortgage [agent;] loan originator; and

      (e) Include any other information or supporting materials required pursuant to the regulations adopted by the Commissioner, by an order of the Commissioner or, if applicable, by the Registry. Such information or supporting materials may include, without limitation, other forms of identification of the person.

      3.  Except as otherwise provided by law, the Commissioner shall issue a license as a mortgage [agent] loan originator to an applicant if:

 


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      (a) The application is verified by the Commissioner and complies with the applicable requirements of this chapter, other applicable law and, if applicable, the Registry; and

      (b) The applicant:

             (1) Has not been convicted of, or entered or agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic, foreign or military court within the 7 years immediately preceding the date of the application, or at any time if such felony involved an act of fraud, dishonesty or a breach of trust, money laundering or moral turpitude;

             (2) Has never had a license or registration as a mortgage agent, mortgage banker, mortgage broker, mortgage company, mortgage loan originator or residential mortgage loan originator revoked in this State or any other jurisdiction, or had a financial services license revoked within the immediately preceding 10 years;

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

             (4) Has not violated any provision of this chapter , [or chapter 645E of NRS,] a regulation adopted pursuant thereto or an order of the Commissioner; and

             (5) Has demonstrated financial responsibility, character and general fitness so as to command the confidence of the community and warrant a determination that the applicant will operate honestly, fairly and efficiently for the purposes of this chapter.

      4.  Money received by the Commissioner pursuant to this section is in addition to any fee required to be paid to the Registry and must be deposited in the Account for Mortgage Lending created by NRS 645F.270.

      5.  The Commissioner may require the submission of an item or the payment of a fee required by this section directly to the Commissioner or, if the person submitting the item or fee is required to register or voluntarily registers with the Registry, to the Commissioner through the Registry.

      Sec. 57.5. NRS 645B.420 is hereby amended to read as follows:

      645B.420  1.  In addition to any other requirements set forth in this chapter:

      (a) An applicant for the issuance of a license as a mortgage [agent] loan originator pursuant to this chapter shall include the social security number of the applicant in the application submitted to the Commissioner.

      (b) An applicant for the issuance or renewal of a license as a mortgage [agent] loan originator pursuant to this chapter shall submit to the Commissioner the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

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

      (a) The application or any other forms that must be submitted for the issuance or renewal of a license as a mortgage [agent;] loan originator; or

      (b) A separate form prescribed by the Commissioner.

      3.  The license as a mortgage [agent] loan originator may not be issued or renewed by the Commissioner if the applicant:

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

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

 


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compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

      4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      Sec. 58. NRS 645B.430 is hereby amended to read as follows:

      645B.430  1.  A license as a mortgage [agent] loan originator issued pursuant to NRS 645B.410 expires each year on December 31, unless it is renewed. To renew a license as a mortgage [agent,] loan originator, the holder of the license must continue to meet the requirements of subsection 3 of NRS 645B.410 and must submit to the Commissioner on or after November 1 and on or before December 31 of each year, or on a date otherwise specified by the Commissioner by regulation:

      (a) An application for renewal;

      (b) Except as otherwise provided in this section, satisfactory proof that the holder of the license as a mortgage [agent] loan originator attended at least 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires; and

      (c) A renewal fee set by the Commissioner of not more than $170.

      2.  In lieu of the continuing education requirement set forth in paragraph (b) of subsection 1, the holder of a license as a mortgage [agent] loan originator who, pursuant to subsection 1 of NRS 645F.267, is not required to register or renew with the Registry and who has not voluntarily registered or renewed with the Registry must submit to the Commissioner satisfactory proof that he or she attended at least 5 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires. The hours of continuing education required by this subsection must include:

      (a) At least 3 hours relating to the laws and regulations of this State; and

      (b) At least 2 hours relating to ethics.

      3.  If the holder of the license as a mortgage [agent] loan originator fails to submit any item required pursuant to subsection 1 or 2 to the Commissioner on or after November 1 and on or before December 31 of any year, unless a different date is specified by the Commissioner by regulation, the license is cancelled as of December 31 of that year. The Commissioner may reinstate a cancelled license if the holder of the license submits to the Commissioner on or before February 28 of the following year:

      (a) An application for renewal;

      (b) The fee required to renew the license pursuant to this section; and

      (c) A reinstatement fee of $75.

      4.  To change the mortgage [broker] company with whom the mortgage [agent] loan originator is associated, a person must pay a fee in an amount prescribed by regulation of the Commissioner, not to exceed $50.

      5.  Money received by the Commissioner pursuant to this section is in addition to any fee that must be paid to the Registry and must be deposited in the Account for Mortgage Lending created by NRS 645F.270.

 


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      6.  The Commissioner may require a licensee to submit an item or pay a fee required by this section directly to the Division or, if the licensee is required to register or voluntarily registers with the Registry, to the Division through the Registry.

      7.  Nothing in this section shall be construed as preventing the Commissioner from renewing the license of a mortgage [agent] loan originator who does not satisfy the criteria set forth in paragraph (e) of subsection 1 of NRS 645B.410 at the time of the application for renewal.

      8.  As used in this section, “certified course of continuing education” has the meaning ascribed to it in NRS 645B.051.

      Sec. 59. NRS 645B.450 is hereby amended to read as follows:

      645B.450  1.  A person licensed as a mortgage [agent] loan originator pursuant to the provisions of NRS 645B.410 may not be associated with or employed by more than one licensed or registered mortgage [broker or mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016 at the same time.

      2.  A mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016 shall not associate with or employ a person as a mortgage [agent] loan originator or authorize a person to be associated with the mortgage [broker, mortgage banker] company or exempt person who holds a certificate of exemption pursuant to NRS 645B.016 as a mortgage [agent] loan originator if the mortgage [agent] loan originator is not licensed with the Division pursuant to NRS 645B.410. Before allowing a mortgage [agent] loan originator to act on its behalf, a mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016, must:

      (a) Enter its sponsorship of the mortgage [agent] loan originator with the Registry; or

      (b) If the mortgage [agent] loan originator is not required to be registered with the Registry, notify the Division of its sponsorship of the mortgage [agent.] loan originator.

      3.  If a mortgage [agent] loan originator terminates his or her association or employment with a mortgage [broker, mortgage banker] company or exempt person who holds a certificate of exemption pursuant to NRS 645B.016 for any reason, the mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016 shall, not later than the third business day following the date of termination:

      (a) Remove its sponsorship of the mortgage [agent] loan originator from the Registry; or

      (b) If the mortgage [agent] loan originator is not required to be registered with the Registry, deliver to the Division and to the mortgage [agent] loan originator at the last known residence address of the mortgage [agent] loan originator a written statement which includes the name, address and license number of the mortgage [agent] loan originator and a statement of the circumstances of the termination.

      Sec. 60. NRS 645B.460 is hereby amended to read as follows:

      645B.460  1.  A mortgage [broker] company shall exercise reasonable supervision and control over the activities of his or her mortgage [agents] loan originators and must also be licensed as a mortgage [agent] loan originator if required pursuant to NRS 645B.405. Such reasonable supervision and control must include, as appropriate:

 


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      (a) The establishment of written policies and procedures for the mortgage [agents;] loan originators;

      (b) The establishment of a system to review, oversee and inspect the activities of the mortgage [agents,] loan originators, including, without limitation:

            (1) Transactions handled by the mortgage [agents] loan originators pursuant to this chapter;

             (2) Communications between the mortgage [agents] loan originators and a party to such a transaction;

             (3) Documents prepared by the mortgage [agents] loan originators that may have a material effect upon the rights or obligations of a party to such a transaction; and

             (4) The handling by the mortgage [agents] loan originators of any fee, deposit or money paid to the mortgage [broker] company or the mortgage [agents] loan originators or held in trust by the mortgage [broker] company or the mortgage [agents] loan originators pursuant to this chapter; and

      (c) The establishment of a system of reporting to the Division of any fraudulent activity engaged in by any of the mortgage [agents.] loan originators.

      2.  The Commissioner shall allow a mortgage [broker] company to take into consideration the total number of mortgage [agents] loan originators associated with or employed by the mortgage [broker] company when the mortgage [broker] company determines the form and extent of the policies and procedures for those mortgage [agents] loan originators and the system to review, oversee and inspect the activities of those mortgage [agents.] loan originators.

      3.  The Commissioner may adopt regulations prescribing standards for determining whether a mortgage [broker] company has exercised reasonable supervision and control over the activities of a mortgage [agent] loan originator pursuant to this section.

      Sec. 61. NRS 645B.490 is hereby amended to read as follows:

      645B.490  Except as otherwise required by the Registry for persons who are required to register or voluntarily register with the Registry:

      1.  Any mortgage [broker] company or mortgage [agent] loan originator licensed under the provisions of this chapter who is called into the military service of the United States shall, at his or her request, be relieved from compliance with the provisions of this chapter and placed on inactive status for the period of such military service and for a period of 6 months after discharge therefrom.

      2.  At any time within 6 months after termination of such service, if the mortgage [broker] company or mortgage [agent] loan originator complies with the provisions of subsection 1, the mortgage [broker] company or mortgage [agent] loan originator may be reinstated, without having to meet any qualification or requirement other than the payment of the reinstatement fee, as provided in NRS 645B.050 or 645B.430, and the mortgage [broker] company or mortgage [agent] loan originator is not required to make payment of the renewal fee for the current year.

      3.  Any mortgage [broker] company or mortgage [agent] loan originator seeking to qualify for reinstatement, as provided in subsections 1 and 2, must present a certified copy of his or her honorable discharge or certificate of satisfactory service to the Commissioner.

 


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      Sec. 62. NRS 645B.620 is hereby amended to read as follows:

      645B.620  1.  Whether or not a complaint has been filed, the Commissioner [shall] may investigate a mortgage [broker,] company, mortgage [agent] loan originator or other person if, for any reason, it appears that:

      (a) The mortgage [broker] company or mortgage [agent] loan originator is conducting business in an unsafe and injurious manner or in violation of any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;

      (b) The person is offering or providing any of the services of a mortgage [broker] company or mortgage [agent] loan originator or otherwise engaging in, carrying on or holding himself or herself out as engaging in or carrying on the business of a mortgage [broker] company or mortgage [agent] loan originator without being appropriately licensed or exempt from licensing pursuant to the provisions of this chapter; or

      (c) The person is violating any other provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner.

      2.  If, upon investigation, the Commissioner has reasonable cause to believe that the mortgage [broker,] company, mortgage [agent] loan originator or other person has engaged in any conduct or committed any violation described in subsection 1:

      (a) The Commissioner shall notify the Attorney General of the conduct or violation and, if applicable, the Commissioner shall immediately take possession of the property of the mortgage [broker] company pursuant to NRS 645B.630; and

      (b) The Attorney General shall, if appropriate:

             (1) Investigate and prosecute the mortgage [broker,] company, mortgage [agent] loan originator or other person pursuant to NRS 645B.800; and

             (2) Bring a civil action to:

                   (I) Enjoin the mortgage [broker,] company, mortgage [agent] loan originator or other person from engaging in the conduct, operating the business or committing the violation; and

                   (II) Enjoin any other person who has encouraged, facilitated, aided or participated in the conduct, the operation of the business or the commission of the violation, or who is likely to engage in such acts, from engaging in or continuing to engage in such acts.

      3.  If the Attorney General brings a civil action pursuant to subsection 2, the district court of any county of this State is hereby vested with the jurisdiction in equity to enjoin the conduct, the operation of the business or the commission of the violation and may grant any injunctions that are necessary to prevent and restrain the conduct, the operation of the business or the commission of the violation. During the pendency of the proceedings before the district court:

      (a) The court may issue any temporary restraining orders as may appear to be just and proper;

      (b) The findings of the Commissioner shall be deemed to be prima facie evidence and sufficient grounds, in the discretion of the court, for the ex parte issuance of a temporary restraining order; and

      (c) The Attorney General may apply for and on due showing is entitled to have issued the court’s subpoena requiring forthwith the appearance of any person to:

 


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             (1) Produce any documents, books and records as may appear necessary for the hearing of the petition; and

             (2) Testify and give evidence concerning the conduct complained of in the petition.

      Sec. 63. NRS 645B.630 is hereby amended to read as follows:

      645B.630  1.  In addition to any other action that is required or permitted pursuant to this chapter, if the Commissioner has reasonable cause to believe that:

      (a) The assets or capital of a mortgage [broker] company are impaired; or

      (b) A mortgage [broker] company is conducting business in an unsafe and injurious manner that may result in danger to the public,

Ê the Commissioner [shall] may immediately take possession of all the property, business and assets of the mortgage [broker] company that are located in this State and shall retain possession of them pending further proceedings provided for in this chapter.

      2.  If the licensee, the board of directors or any officer or person in charge of the offices of the mortgage [broker] company refuses to permit the Commissioner to take possession of the property of the mortgage [broker] company pursuant to subsection 1:

      (a) The Commissioner shall notify the Attorney General; and

      (b) The Attorney General shall immediately bring such proceedings as may be necessary to place the Commissioner in immediate possession of the property of the mortgage [broker.] company.

      3.  If the Commissioner takes possession of the property of the mortgage [broker,] company, the Commissioner shall:

      (a) Make or have made an inventory of the assets and known liabilities of the mortgage [broker;] company;

      (b) File one copy of the inventory in the office of the Commissioner and one copy in the office of the clerk of the district court of the county in which the principal office of the mortgage [broker] company is located and shall mail one copy to each stockholder, partner, officer, director or associate of the mortgage [broker] company at his or her last known address; and

      (c) If the mortgage [broker] company maintains any accounts described in NRS 645B.175, not later than 5 business days after the date on which the Commissioner takes possession of the property of the mortgage [broker,] company, mail notice of the possession to the last known address of each person whose money is deposited in such an account or whose money was or should have been deposited in such an account during the preceding 12 months.

      4.  The clerk of the court with which the copy of the inventory is filed shall file it as any other case or proceeding pending in the court and shall give it a docket number.

      Sec. 64. NRS 645B.640 is hereby amended to read as follows:

      645B.640  1.  If the Commissioner takes possession of the property of a mortgage [broker] company pursuant to NRS 645B.630, the licensee, officers, directors, partners, associates or stockholders of the mortgage [broker] company may, within 60 days after the date on which the Commissioner takes possession of the property, make good any deficit in the assets or capital of the mortgage [broker] company or remedy any unsafe and injurious conditions or practices of the mortgage [broker.] company.

 


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      2.  At the expiration of the 60-day period, if the deficiency in assets or capital has not been made good or the unsafe and injurious conditions or practices remedied, the Commissioner may apply to the court to be appointed receiver and proceed to liquidate the assets of the mortgage [broker] company which are located in this State in the same manner as now provided by law for liquidation of a private corporation in receivership.

      3.  No other person may be appointed receiver by any court without first giving the Commissioner ample notice of his or her application.

      4.  The inventory made by the Commissioner and all claims filed by creditors are open at all reasonable times for inspection, and any action taken by the receiver upon any of the claims is subject to the approval of the court before which the cause is pending.

      5.  The expenses of the receiver and compensation of counsel, as well as all expenditures required in the liquidation proceedings, must be fixed by the Commissioner subject to the approval of the court and, upon certification of the Commissioner, must be paid out of the money in his or her hands as the receiver.

      Sec. 65. NRS 645B.670 is hereby amended to read as follows:

      645B.670  1.  Except as otherwise provided in NRS 645B.690:

      (a) For each violation committed by an applicant for a license issued pursuant to this chapter, whether or not the applicant is issued a license, the Commissioner may impose upon the applicant an administrative fine of not more than $25,000 if the applicant:

             (1) Has knowingly made or caused to be made to the Commissioner any false representation of material fact;

             (2) Has suppressed or withheld from the Commissioner any information which the applicant possesses and which, if submitted by the applicant, would have rendered the applicant ineligible to be licensed pursuant to the provisions of this chapter; or

             (3) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner in completing and filing his or her application for a license or during the course of the investigation of his or her application for a license.

      (b) For each violation committed by a mortgage [broker,] company, the Commissioner may impose upon the mortgage [broker] company an administrative fine of not more than $25,000, may suspend, revoke or place conditions upon the mortgage [broker’s] company’s license, or may do both, if the mortgage [broker,] company, whether or not acting as such:

             (1) Is insolvent;

             (2) Is grossly negligent or incompetent in performing any act for which the mortgage [broker] company is required to be licensed pursuant to the provisions of this chapter;

             (3) Does not conduct his or her business in accordance with law or has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;

             (4) Is in such financial condition that the mortgage [broker] company cannot continue in business with safety to his or her customers;

             (5) Has made a material misrepresentation in connection with any transaction governed by this chapter;

             (6) Has suppressed or withheld from a client any material facts, data or other information relating to any transaction governed by the provisions of this chapter which the mortgage [broker] company knew or, by the exercise of reasonable diligence, should have known;

 


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this chapter which the mortgage [broker] company knew or, by the exercise of reasonable diligence, should have known;

             (7) Has knowingly made or caused to be made to the Commissioner any false representation of material fact or has suppressed or withheld from the Commissioner any information which the mortgage [broker] company possesses and which, if submitted by the mortgage [broker,] company, would have rendered the mortgage [broker] company ineligible to be licensed pursuant to the provisions of this chapter;

             (8) Has failed to account to persons interested for all money received for a trust account;

             (9) Has refused to permit an examination by the Commissioner of his or her books and affairs or has refused or failed, within a reasonable time, to furnish any information or make any report that may be required by the Commissioner pursuant to the provisions of this chapter or a regulation adopted pursuant to this chapter;

             (10) Has been convicted of, or entered or agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic, foreign or military court within the 7 years immediately preceding the date of the application, or at any time if such felony involved an act of fraud, dishonesty or a breach of trust, moral turpitude or money laundering;

             (11) Has refused or failed to pay, within a reasonable time, any fees, assessments, costs or expenses that the mortgage [broker] company is required to pay pursuant to this chapter or a regulation adopted pursuant to this chapter;

             (12) Has failed to satisfy a claim made by a client which has been reduced to judgment;

             (13) Has failed to account for or to remit any money of a client within a reasonable time after a request for an accounting or remittal;

             (14) Has commingled the money or other property of a client with his or her own or has converted the money or property of others to his or her own use;

             (15) Has engaged in any other conduct constituting a deceitful, fraudulent or dishonest business practice;

             (16) Has repeatedly violated the policies and procedures of the mortgage [broker;] company;

             (17) Has failed to exercise reasonable supervision and control over the activities of a mortgage [agent] loan originator as required by NRS 645B.460;

             (18) Has instructed a mortgage [agent] loan originator to commit an act that would be cause for the revocation of the license of the mortgage [broker,] company, whether or not the mortgage [agent] loan originator commits the act;

             (19) Has employed a person as a mortgage [agent] loan originator or authorized a person to be associated with the mortgage [broker] company as a mortgage [agent] loan originator at a time when the mortgage [broker] company knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person:

                   (I) Had been convicted of, or entered or agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic, foreign or military court within the 7 years immediately preceding the date of application, or at any time if such felony involved an act of fraud, dishonesty or a breach of trust, moral turpitude or money laundering; or

 


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                   (II) Had a license or registration as a mortgage agent, mortgage banker, mortgage broker, mortgage company, mortgage loan originator or residential mortgage loan originator revoked in this State or any other jurisdiction or had a financial services license or registration revoked within the immediately preceding 10 years;

             (20) Has violated NRS 645C.557;

             (21) Has failed to pay a tax as required pursuant to the provisions of chapter 363A or 363C of NRS; or

             (22) Has, directly or indirectly, paid any commission, fees, points or any other compensation as remuneration for the services of a mortgage [agent] loan originator to a person other than a mortgage [agent] loan originator who:

                   (I) Is an employee of or associated with the mortgage [broker;] company; or

                   (II) If the mortgage [agent] loan originator is required to register with the Registry, is an employee of and whose sponsorship has been entered with the Registry by the mortgage [broker] company as required by subsection 2 of NRS 645B.450.

      (c) For each violation committed by a mortgage [agent,] loan originator, the Commissioner may impose upon the mortgage [agent] loan originator an administrative fine of not more than $25,000, may suspend, revoke or place conditions upon the mortgage [agent’s] loan originator’s license, or may do both, if the mortgage [agent,] loan originator, whether or not acting as such:

             (1) Is grossly negligent or incompetent in performing any act for which the mortgage [agent] loan originator is required to be licensed pursuant to the provisions of this chapter;

             (2) Has made a material misrepresentation in connection with any transaction governed by this chapter;

             (3) Has suppressed or withheld from a client any material facts, data or other information relating to any transaction governed by the provisions of this chapter which the mortgage [agent] loan originator knew or, by the exercise of reasonable diligence, should have known;

             (4) Has knowingly made or caused to be made to the Commissioner any false representation of material fact or has suppressed or withheld from the Commissioner any information which the mortgage [agent] loan originator possesses and which, if submitted by the mortgage [agent,] loan originator, would have rendered the mortgage [agent] loan originator ineligible to be licensed pursuant to the provisions of this chapter;

             (5) Has been convicted of, or entered or agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic, foreign or military court within the 7 years immediately preceding the date of the application, or at any time if such felony involved an act of fraud, dishonesty or a breach of trust, moral turpitude or money laundering;

             (6) Has failed to account for or to remit any money of a client within a reasonable time after a request for an accounting or remittal;

             (7) Has commingled the money or other property of a client with his or her own or has converted the money or property of others to his or her own use;

             (8) Has engaged in any other conduct constituting a deceitful, fraudulent or dishonest business practice;

             (9) Has violated NRS 645C.557;

 


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             (10) Has repeatedly violated the policies and procedures of the mortgage [broker] company with whom the mortgage [agent] loan originator is associated or by whom he or she is employed;

             (11) Has, directly or indirectly, received any commission, fees, points or any other compensation as remuneration for his or her services as a mortgage [agent:] loan originator:

                   (I) From a person other than the mortgage [broker] company with whom the mortgage [agent] loan originator is associated or by whom he or she is employed; or

                   (II) If the mortgage [agent] loan originator is required to be registered with the Registry, from a person other than the mortgage [broker] company by whom the mortgage [agent] loan originator is employed and on whose behalf sponsorship was entered as required by subsection 2 of NRS 645B.450; or

             (12) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner or has assisted or offered to assist another person to commit such a violation.

      2.  This section does not prohibit the co-brokering of a commercial loan through the cooperation of two or more mortgage [brokers] companies so long as such a transaction is not inconsistent with any other provision of this chapter.

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

      Sec. 66. (Deleted by amendment.)

      Sec. 67. NRS 645B.680 is hereby amended to read as follows:

      645B.680  1.  If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license as a mortgage [broker] company or mortgage [agent,] loan originator, the Commissioner shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Commissioner shall reinstate a license as a mortgage [broker] company or mortgage [agent] loan originator that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      Sec. 68. NRS 645B.690 is hereby amended to read as follows:

      645B.690  1.  If a person offers or provides any of the services of a mortgage [broker] company or mortgage [agent] loan originator or otherwise engages in, carries on or holds himself or herself out as engaging in or carrying on the business of a mortgage [broker] company or mortgage [agent] loan originator and, at the time:

      (a) The person was required to have a license pursuant to this chapter and the person did not have such a license;

 


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      (b) The person was required to be registered with the Registry and the person was not so registered; or

      (c) The person’s license was suspended or revoked pursuant to this chapter,

Ê the Commissioner [shall] may impose upon the person an administrative fine of not more than $50,000 for each violation and, if the person has a license, the Commissioner may suspend or revoke it.

      2.  If a mortgage [broker] company violates any provision of subsection 1 of NRS 645B.080 and the mortgage [broker] company fails, without reasonable cause, to remedy the violation within 20 business days after being ordered by the Commissioner to do so or within such later time as prescribed by the Commissioner, or if the Commissioner orders a mortgage [broker] company to provide information, make a report or permit an examination of his or her books or affairs pursuant to this chapter and the mortgage [broker] company fails, without reasonable cause, to comply with the order within 20 business days or within such later time as prescribed by the Commissioner, the Commissioner [shall:] may:

      (a) Impose upon the mortgage [broker] company an administrative fine of not more than $25,000 for each violation;

      (b) Suspend or revoke the license of the mortgage [broker;] company; and

      (c) Conduct a hearing to determine whether the mortgage [broker] company is conducting business in an unsafe and injurious manner that may result in danger to the public and whether it is necessary for the Commissioner to take possession of the property of the mortgage [broker] company pursuant to NRS 645B.630.

      3.  If a mortgage [broker:] company:

      (a) Makes or offers for sale in this State any investments in promissory notes secured by liens on real property; and

      (b) Receives the lowest possible rating on two consecutive annual or biennial examinations pursuant to NRS 645B.060,

Ê the Commissioner [shall] may suspend or revoke the license of the mortgage [broker.] company.

      Sec. 68.5. NRS 645B.710 is hereby amended to read as follows:

      645B.710  If a person is a partnership, corporation or unincorporated association, the Commissioner [shall] may take any disciplinary action required pursuant to NRS 645B.690 and may take any other disciplinary action set forth in this chapter against the person if any member of the partnership or any officer or director of the corporation or unincorporated association has committed any act or omission that would be cause for taking such disciplinary action against a natural person.

      Sec. 69. NRS 645B.740 is hereby amended to read as follows:

      645B.740  The expiration or revocation of a license of a mortgage [broker] company or mortgage [agent] loan originator by operation of law or by order or decision of the Commissioner or a court of competent jurisdiction, or the voluntary surrender of a license, does not:

      1.  Prohibit the Commissioner from initiating or continuing an investigation of, or action or disciplinary proceeding against, the mortgage [broker] company or mortgage [agent] loan originator as authorized pursuant to the provisions of this chapter or the regulations adopted pursuant thereto; or

 


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      2.  Prevent the imposition or collection of any fine or penalty authorized pursuant to the provisions of this chapter or the regulations adopted pursuant thereto against the mortgage [broker] company or mortgage [agent.] loan originator.

      Sec. 70. NRS 645B.900 is hereby amended to read as follows:

      645B.900  It is unlawful for any person to offer or provide any of the services of a mortgage [broker] company or mortgage [agent] loan originator or otherwise to engage in, carry on or hold himself or herself out as engaging in or carrying on the business of a mortgage [broker] company or mortgage [agent] loan originator without first obtaining the applicable license issued pursuant to this chapter, unless the person:

      1.  Is exempt from the provisions of this chapter; and

      2.  Complies with the requirements for that exemption.

      Sec. 71. NRS 645B.910 is hereby amended to read as follows:

      645B.910  It is unlawful for any foreign corporation, association or business trust to conduct any business as a mortgage [broker] company within this State, unless it:

      1.  Qualifies under chapter 80 of NRS; and

      2.  Complies with the provisions of this chapter or, if it claims an exemption from the provisions of this chapter, complies with the requirements for that exemption.

      Sec. 72. NRS 645B.930 is hereby amended to read as follows:

      645B.930  In addition to any other remedy or penalty, if a person, or any general partner, director, officer, agent or employee of a person, violates the provisions of NRS 645B.900 or 645B.910, the client may bring a civil action against the person for:

      1.  Actual and consequential damages;

      2.  Punitive damages, which are subject to the provisions of NRS 42.005;

      3.  Reasonable attorney’s fees and costs; and

      4.  Any other legal or equitable relief that the court deems appropriate.

      Sec. 73. NRS 645B.955 is hereby amended to read as follows:

      645B.955  1.  A person who engages in an activity for which a license as a mortgage [broker] company or mortgage [agent] loan originator is required pursuant to this chapter, without regard to whether such a person is licensed pursuant to this chapter, may be required by the Commissioner to pay restitution to any person who has suffered an economic loss as a result of a violation of the provisions of this chapter or any regulation adopted pursuant thereto.

      2.  Notwithstanding the provision of paragraph (m) of subsection 1 of NRS 622A.120, payment of restitution pursuant to subsection 1 shall be done in a manner consistent with the provisions of chapter 622A of NRS.

      Sec. 74. NRS 645F.060 is hereby amended to read as follows:

      645F.060  “Mortgage [broker”] company” has the meaning ascribed to it in NRS 645B.0127.

      Sec. 75. NRS 645F.160 is hereby amended to read as follows:

      645F.160  The Commissioner shall not, either directly or indirectly, be interested in any mortgage servicer, escrow agency [,] or mortgage [broker or mortgage banker] company to which this chapter and chapters 645A [,] and 645B [and 645E] of NRS apply, nor engage in business as a personal loan broker.

 


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      Sec. 76. NRS 645F.180 is hereby amended to read as follows:

      645F.180  1.  The Commissioner may appoint deputy commissioners of mortgage lending, examiners, assistants, clerks, stenographers and other employees necessary to assist the Commissioner in the performance of his or her duties pursuant to this chapter, chapters 645A [,] and 645B [and 645E] of NRS or any other law. These employees shall perform such duties as are assigned to them by the Commissioner.

      2.  The Commissioner may employ or contract with a certified public accountant to review and conduct independent audits and examinations of escrow agencies, mortgage [brokers,] companies and mortgage servicers . [and mortgage bankers.] The Commissioner shall levy an assessment upon each licensed escrow agency, mortgage [broker,] company and mortgage servicer [and mortgage banker] to cover all the costs related to the employment of or the contract with the certified public accountant and the performance of the audits and examinations.

      3.  Assessments collected by the Commissioner pursuant to subsection 2 must be deposited in the State Treasury for deposit to the Account for Mortgage Lending created by NRS 645F.270 and accounted for separately. The Commissioner shall use the money for the purposes specified in subsection 2.

      Sec. 77. NRS 645F.250 is hereby amended to read as follows:

      645F.250  The Commissioner and the Division shall administer the provisions of this chapter and chapters 645A [,] and 645B [and 645E] of NRS, subject to administrative supervision by the Director of the Department of Business and Industry.

      Sec. 78. NRS 645F.260 is hereby amended to read as follows:

      645F.260  The State Board of Finance shall act in an advisory capacity to the Division in the administration of this chapter and chapters 645A [,] and 645B [and 645E] of NRS.

      Sec. 79. NRS 645F.267 is hereby amended to read as follows:

      645F.267  1.  A mortgage [agent,] loan originator, mortgage [banker, mortgage broker] company or mortgage servicer or an employee of a mortgage [banker, mortgage broker] company or mortgage servicer is not required to register or renew with the Registry, or provide reports of financial condition to the Registry, if the mortgage [agent,] loan originator, mortgage [banker, mortgage broker] company or mortgage servicer or employee:

      (a) Is not a residential mortgage loan originator or the supervisor of a residential mortgage loan originator; and

      (b) Is not required to register pursuant to the provisions of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

      2.  A mortgage [agent,] loan originator, mortgage [banker, mortgage broker] company or mortgage servicer or an employee of a mortgage [banker, mortgage broker] company or mortgage servicer who, pursuant to subsection 1, is not required to register or renew with the Registry and who voluntarily registers or renews with the Registry shall comply with all requirements of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008, and any regulations adopted pursuant thereto.

      3.  As used in this section, “residential mortgage loan originator” has the meaning ascribed to it in NRS 645B.01325.

 


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      Sec. 80. NRS 645F.275 is hereby amended to read as follows:

      645F.275  The Commissioner shall adopt regulations:

      1.  Establishing minimum net worth or surety bonding requirements that reflect the dollar amount of loans originated by a residential mortgage loan originator, as defined in NRS 645B.01325; or

      2.  Requiring a percentage of the fees collected for the issuance or renewal of a license pursuant to chapter 645B [or 645E] of NRS to be deposited in a mortgage recovery fund, and setting forth the methods by which a person may make a claim against and be paid from the fund.

      Sec. 81. NRS 645F.293 is hereby amended to read as follows:

      645F.293  1.  The Commissioner shall adopt regulations to carry out the provisions of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

      2.  The regulations must include, without limitation:

      (a) A method by which to allow for reporting regularly violations of the relevant provisions of chapter 645B [or 645E] of NRS, enforcement actions and other relevant information to the Registry; and

      (b) A process whereby a person may challenge information reported to the Registry by the Commissioner.

      3.  The regulations must not require a mortgage [agent,] loan originator, mortgage [banker, mortgage broker] company or mortgage servicer or an employee of a mortgage [banker, mortgage broker] company or mortgage servicer to register with the Registry if the mortgage [agent,] loan originator, mortgage [banker, mortgage broker,] company, mortgage servicer or employee is exempt from registration pursuant to subsection 1 of NRS 645F.267.

      Sec. 81.5. NRS 645F.296 is hereby amended to read as follows:

      645F.296  1.  Any person authorized to engage in activities as a residential mortgage loan originator on behalf of an installment loan lender licensed under chapter 675 of NRS shall obtain and maintain a license as a mortgage [agent.] loan originator.

      2.  As used in this section:

      (a) “Mortgage [agent”] loan originator” has the meaning ascribed to in NRS 645B.0125; and

      (b) “Residential mortgage loan originator” has the meaning ascribed to it in NRS 645B.01325.

      Sec. 82. NRS 645F.500 is hereby amended to read as follows:

      645F.500  The provisions of NRS 645F.500 to 645F.540, inclusive, do not apply to:

      1.  A depository financial institution, as that term is defined in NRS [645E.060,] 645B.0109, or any subsidiary or holding company of a depository financial institution if such entity maintains its principal place of business or a branch office in this State.

      2.  A real estate investment trust, as that term is defined in 26 U.S.C. § 856(a), unless the business conducted by the trust in this State is not subject to supervision by the appropriate regulatory body of a jurisdiction outside of this State.

      3.  Any trustee of an employee benefit plan, as that term is defined in 29 U.S.C. § 1002(3), who makes a residential mortgage loan directly from money in the plan.

      4.  An attorney who is licensed in this State and who does not engage in the business of, or otherwise hold himself or herself out as being able to provide services related to, a mortgage servicer, if the activities of the attorney are directly incidental to the representation of a client.

 


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provide services related to, a mortgage servicer, if the activities of the attorney are directly incidental to the representation of a client.

      5.  A person performing any act pursuant to a court order.

      6.  A federal or state agency or a political subdivision of this State, including, without limitation, the Public Employees’ Retirement System.

      7.  A nonprofit organization that is recognized as exempt under section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3).

      8.  A mortgage servicer that, in the aggregate with any affiliates, services not more than 10 residential mortgage loans in this State during a calendar year.

      9.  A person licensed pursuant to the provisions of chapter 645B [, 645E] or 675 of NRS who is collecting payments on a mortgage loan or servicing one or more mortgage loans made or arranged by the person under his or her license.

      Sec. 83. NRS 645H.040 is hereby amended to read as follows:

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

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

      2.  A mortgage holding entity chartered by Congress; or

      3.  A federal, state or local governmental entity.

      Sec. 84. NRS 645H.060 is hereby amended to read as follows:

      645H.060  “Client” means:

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

      2.  A mortgage holding entity chartered by Congress; or

      3.  A federal, state or local governmental entity,

Ê for whom an asset management company provides asset management.

      Sec. 85. NRS 645H.110 is hereby amended to read as follows:

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

      Sec. 86. NRS 645H.160 is hereby amended to read as follows:

      645H.160  1.  The provisions of this chapter which require a certificate of registration or permit do not apply to a person or broker who has a current permit to engage in property management pursuant to chapter 645 of NRS.

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

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

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

 


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

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

      Sec. 87. NRS 40.750 is hereby amended to read as follows:

      40.750  1.  As used in this section, “financial institution” means a bank, mortgage [broker, mortgage banker,] company, mortgage servicer as that term is defined in NRS 645F.063, credit union, thrift company or savings and loan association, or any subsidiary or affiliate of a bank, mortgage [broker, mortgage banker,] company, mortgage servicer, credit union, thrift company or savings and loan association, which is authorized to transact business in this State and which makes or acquires, in whole or in part, any loan of the kind described in subsection 2.

      2.  Except as otherwise provided in subsection 5, a person who, for the purpose of obtaining a loan secured by a lien on real property, knowingly conceals a material fact, or makes a false statement concerning a material fact knowing that the statement is false, is liable to any financial institution or other lender which relied upon the absence of that concealed fact or on that false statement for any damages it sustains because of the fraud.

      3.  In addition to its actual damages, a financial institution or other lender may recover exemplary or punitive damages in an amount not to exceed 50 percent of the actual damages awarded.

      4.  The cause of action provided by this section:

      (a) Is not, for the purposes of NRS 40.430, an action for the recovery of any debt or an action for the enforcement of any right secured by mortgage or lien upon real estate.

      (b) Is in addition to and not in substitution for any right of foreclosure existing in favor of the financial institution or other lender. Any recovery pursuant to this section does not limit the amount of a judgment awarded pursuant to NRS 40.459, but the financial institution or other lender is not entitled to recover actual damages more than once for the same loss.

      5.  The provisions of this section do not apply to any loan which is secured by a lien on real property used for residential purposes if:

      (a) The residence is a single-family dwelling occupied by the person obtaining the loan, as represented by the person in connection with the person’s application for the loan; and

      (b) The loan is for the principal amount of $150,000 or less.

      Sec. 88. NRS 80.015 is hereby amended to read as follows:

      80.015  1.  For the purposes of this chapter, the following activities do not constitute doing business in this State:

      (a) Maintaining, defending or settling any proceeding;

      (b) Holding meetings of the board of directors or stockholders or carrying on other activities concerning internal corporate affairs;

      (c) Maintaining accounts in banks or credit unions;

      (d) Maintaining offices or agencies for the transfer, exchange and registration of the corporation’s own securities or maintaining trustees or depositaries with respect to those securities;

      (e) Making sales through independent contractors;

 


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      (f) Soliciting or receiving orders outside of this State through or in response to letters, circulars, catalogs or other forms of advertising, accepting those orders outside of this State and filling them by shipping goods into this State;

      (g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

      (h) Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;

      (i) Owning, without more, real or personal property;

      (j) Isolated transactions completed within 30 days and not a part of a series of similar transactions;

      (k) The production of motion pictures as defined in NRS 231.020;

      (l) Transacting business as an out-of-state depository institution pursuant to the provisions of title 55 of NRS; and

      (m) Transacting business in interstate commerce.

      2.  The list of activities in subsection 1 is not exhaustive.

      3.  A person who is not doing business in this State within the meaning of this section need not qualify or comply with any provision of this chapter, chapter 645A [,] or 645B [or 645E] of NRS or title 55 or 56 of NRS unless the person:

      (a) Maintains an office in this State for the transaction of business;

      (b) Solicits or accepts deposits in the State, except pursuant to the provisions of chapter 666 or 666A of NRS;

      (c) Solicits business for the activities of a mortgage [broker] company as defined [by] in NRS 645B.0127 ; [or the activities of a mortgage banker as defined by NRS 645E.100;] or

      (d) Arranges a mortgage loan secured by real property which is not commercial property [as defined by NRS 645E.040.] as defined in section 2.4 of this act.

      4.  The fact that a person is not doing business in this State within the meaning of this section:

      (a) Does not affect the determination of whether any court, administrative agency or regulatory body in this State may exercise personal jurisdiction over the person in any civil action, criminal action, administrative proceeding or regulatory proceeding; and

      (b) Except as otherwise provided in subsection 3, does not affect the applicability of any other provision of law with respect to the person and may not be offered as a defense or introduced in evidence in any civil action, criminal action, administrative proceeding or regulatory proceeding to prove that the person is not doing business in this State, including, without limitation, any civil action, criminal action, administrative proceeding or regulatory proceeding involving an alleged violation of chapter 597, 598 or 598A of NRS.

      5.  As used in this section and for the purposes of NRS 80.016, “deposits” means demand deposits, savings deposits and time deposits, as those terms are defined in chapter 657 of NRS.

      Sec. 88.5. NRS 86.5483 is hereby amended to read as follows:

      86.5483  1.  For the purposes of NRS 86.543 to 86.549, inclusive, the following activities do not constitute transacting business in this State:

      (a) Maintaining, defending or settling any proceeding;

      (b) Holding meetings of the managers or members or carrying on other activities concerning internal company affairs;

 


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      (c) Maintaining accounts in banks or credit unions;

      (d) Maintaining offices or agencies for the transfer, exchange and registration of the company’s own securities or maintaining trustees or depositaries with respect to those securities;

      (e) Making sales through independent contractors;

      (f) Soliciting or receiving orders outside this State through or in response to letters, circulars, catalogs or other forms of advertising, accepting those orders outside this State and filling them by shipping goods into this State;

      (g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

      (h) Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;

      (i) Owning, without more, real or personal property;

      (j) Isolated transactions completed within 30 days and not a part of a series of similar transactions;

      (k) The production of motion pictures as defined in NRS 231.020;

      (l) Transacting business as an out-of-state depository institution pursuant to the provisions of title 55 of NRS; and

      (m) Transacting business in interstate commerce.

      2.  The list of activities in subsection 1 is not exhaustive.

      3.  A person who is not transacting business in this State within the meaning of this section need not qualify or comply with any provision of this chapter, title 55 or 56 of NRS or chapter 645A, 645B or 645E of NRS unless the person:

      (a) Maintains an office in this State for the transaction of business; [or]

      (b) Solicits or accepts deposits in the State, except pursuant to the provisions of chapter 666 or 666A of NRS [.] ;

      (c) Solicits business for the activities of a mortgage broker as defined in NRS 645B.0127 or the activities of a mortgage banker as defined in NRS 645E.100; or

      (d) Arranges a mortgage loan secured by real property that is not commercial property as defined in NRS 645E.040.

      4.  The fact that a person is not transacting business in this State within the meaning of this section:

      (a) Does not affect the determination of whether any court, administrative agency or regulatory body in this State may exercise personal jurisdiction over the person in any civil action, criminal action, administrative proceeding or regulatory proceeding; and

      (b) Except as otherwise provided in subsection 3, does not affect the applicability of any other provision of law with respect to the person and may not be offered as a defense or introduced in evidence in any civil action, criminal action, administrative proceeding or regulatory proceeding to prove that the person is not transacting business in this State, including, without limitation, any civil action, criminal action, administrative proceeding or regulatory proceeding involving an alleged violation of chapter 597, 598 or 598A of NRS.

      5.  As used in this section, “deposits” means demand deposits, savings deposits and time deposits, as those terms are defined in chapter 657 of NRS.

      Sec. 89. NRS 86.5483 is hereby amended to read as follows:

      86.5483  1.  For the purposes of NRS 86.543 to 86.549, inclusive, the following activities do not constitute transacting business in this State:

 


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      (a) Maintaining, defending or settling any proceeding;

      (b) Holding meetings of the managers or members or carrying on other activities concerning internal company affairs;

      (c) Maintaining accounts in banks or credit unions;

      (d) Maintaining offices or agencies for the transfer, exchange and registration of the company’s own securities or maintaining trustees or depositaries with respect to those securities;

      (e) Making sales through independent contractors;

      (f) Soliciting or receiving orders outside this State through or in response to letters, circulars, catalogs or other forms of advertising, accepting those orders outside this State and filling them by shipping goods into this State;

      (g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

      (h) Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;

      (i) Owning, without more, real or personal property;

      (j) Isolated transactions completed within 30 days and not a part of a series of similar transactions;

      (k) The production of motion pictures as defined in NRS 231.020;

      (l) Transacting business as an out-of-state depository institution pursuant to the provisions of title 55 of NRS; and

      (m) Transacting business in interstate commerce.

      2.  The list of activities in subsection 1 is not exhaustive.

      3.  A person who is not transacting business in this State within the meaning of this section need not qualify or comply with any provision of this chapter, title 55 or 56 of NRS or chapter 645A [,] or 645B [or 645E] of NRS unless the person:

      (a) Maintains an office in this State for the transaction of business;

      (b) Solicits or accepts deposits in the State, except pursuant to the provisions of chapter 666 or 666A of NRS;

      (c) Solicits business for the activities of a mortgage [broker] company as defined in NRS 645B.0127 ; [or the activities of a mortgage banker as defined in NRS 645E.100;] or

      (d) Arranges a mortgage loan secured by real property that is not commercial property as defined in [NRS 645E.040.] section 2.3 of this act.

      4.  The fact that a person is not transacting business in this State within the meaning of this section:

      (a) Does not affect the determination of whether any court, administrative agency or regulatory body in this State may exercise personal jurisdiction over the person in any civil action, criminal action, administrative proceeding or regulatory proceeding; and

      (b) Except as otherwise provided in subsection 3, does not affect the applicability of any other provision of law with respect to the person and may not be offered as a defense or introduced in evidence in any civil action, criminal action, administrative proceeding or regulatory proceeding to prove that the person is not transacting business in this State, including, without limitation, any civil action, criminal action, administrative proceeding or regulatory proceeding involving an alleged violation of chapter 597, 598 or 598A of NRS.

      5.  As used in this section, “deposits” means demand deposits, savings deposits and time deposits, as those terms are defined in chapter 657 of NRS.

 


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      Sec. 90. NRS 87A.615 is hereby amended to read as follows:

      87A.615  1.  For the purposes of NRS 87A.535 to 87A.625, inclusive, the following activities do not constitute transacting business in this State:

      (a) Maintaining, defending or settling any proceeding;

      (b) Holding meetings of the managers or members or carrying on other activities concerning internal company affairs;

      (c) Maintaining accounts in banks or credit unions;

      (d) Maintaining offices or agencies for the transfer, exchange and registration of the company’s own securities or maintaining trustees or depositaries with respect to those securities;

      (e) Making sales through independent contractors;

      (f) Soliciting or receiving orders outside this State through or in response to letters, circulars, catalogs or other forms of advertising, accepting those orders outside this State and filling them by shipping goods into this State;

      (g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

      (h) Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;

      (i) Owning, without more, real or personal property;

      (j) Isolated transactions completed within 30 days and not a part of a series of similar transactions;

      (k) The production of motion pictures as defined in NRS 231.020;

      (l) Transacting business as an out-of-state depository institution pursuant to the provisions of title 55 of NRS; and

      (m) Transacting business in interstate commerce.

      2.  The list of activities in subsection 1 is not exhaustive.

      3.  A person who is not transacting business in this State within the meaning of this section need not qualify or comply with any provision of this chapter, title 55 or 56 of NRS or chapter 645A [,] or 645B [or 645E] of NRS unless the person:

      (a) Maintains an office in this State for the transaction of business; or

      (b) Solicits or accepts deposits in the State, except pursuant to the provisions of chapter 666 or 666A of NRS.

      4.  The fact that a person is not transacting business in this State within the meaning of this section:

      (a) Does not affect the determination of whether any court, administrative agency or regulatory body in this State may exercise personal jurisdiction over the person in any civil action, criminal action, administrative proceeding or regulatory proceeding; and

      (b) Except as otherwise provided in subsection 3, does not affect the applicability of any other provision of law with respect to the person and may not be offered as a defense or introduced in evidence in any civil action, criminal action, administrative proceeding or regulatory proceeding to prove that the person is not transacting business in this State, including, without limitation, any civil action, criminal action, administrative proceeding or regulatory proceeding involving an alleged violation of chapter 597, 598 or 598A of NRS.

      5.  As used in this section, “deposits” means demand deposits, savings deposits and time deposits, as those terms are defined in chapter 657 of NRS.

      Sec. 91. NRS 88.602 is hereby amended to read as follows:

      88.602  1.  For the purposes of NRS 88.570 to 88.605, inclusive, the following activities do not constitute transacting business in this State:

 


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      (a) Maintaining, defending or settling any proceeding;

      (b) Holding meetings of the managers or members or carrying on other activities concerning internal company affairs;

      (c) Maintaining accounts in banks or credit unions;

      (d) Maintaining offices or agencies for the transfer, exchange and registration of the company’s own securities or maintaining trustees or depositaries with respect to those securities;

      (e) Making sales through independent contractors;

      (f) Soliciting or receiving orders outside this State through or in response to letters, circulars, catalogs or other forms of advertising, accepting those orders outside this State and filling them by shipping goods into this State;

      (g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

      (h) Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;

      (i) Owning, without more, real or personal property;

      (j) Isolated transactions completed within 30 days and not a part of a series of similar transactions;

      (k) The production of motion pictures as defined in NRS 231.020;

      (l) Transacting business as an out-of-state depository institution pursuant to the provisions of title 55 of NRS; and

      (m) Transacting business in interstate commerce.

      2.  The list of activities in subsection 1 is not exhaustive.

      3.  A person who is not transacting business in this State within the meaning of this section need not qualify or comply with any provision of this chapter, title 55 or 56 of NRS or chapter 645A [,] or 645B [or 645E] of NRS unless the person:

      (a) Maintains an office in this State for the transaction of business; or

      (b) Solicits or accepts deposits in the State, except pursuant to the provisions of chapter 666 or 666A of NRS.

      4.  The fact that a person is not transacting business in this State within the meaning of this section:

      (a) Does not affect the determination of whether any court, administrative agency or regulatory body in this State may exercise personal jurisdiction over the person in any civil action, criminal action, administrative proceeding or regulatory proceeding; and

      (b) Except as otherwise provided in subsection 3, does not affect the applicability of any other provision of law with respect to the person and may not be offered as a defense or introduced in evidence in any civil action, criminal action, administrative proceeding or regulatory proceeding to prove that the person is not transacting business in this State, including, without limitation, any civil action, criminal action, administrative proceeding or regulatory proceeding involving an alleged violation of chapter 597, 598 or 598A of NRS.

      5.  As used in this section, “deposits” means demand deposits, savings deposits and time deposits, as those terms are defined in chapter 657 of NRS.

      Sec. 92. NRS 90.530 is hereby amended to read as follows:

      90.530  The following transactions are exempt from NRS 90.460 and 90.560:

      1.  An isolated nonissuer transaction, whether or not effected through a broker-dealer.

 


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      2.  A nonissuer transaction in an outstanding security if the issuer of the security has a class of securities subject to registration under section 12 of the Securities Exchange Act of 1934, 15 U.S.C. § 78l, and has been subject to the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78m and 78o(d), for not less than 90 days next preceding the transaction, or has filed and maintained with the Administrator for not less than 90 days preceding the transaction information, in such form as the Administrator, by regulation, specifies, substantially comparable to the information the issuer would be required to file under section 12(b) or 12(g) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78l(b) and 78l(g), were the issuer to have a class of its securities registered under section 12 of the Securities Exchange Act of 1934, 15 U.S.C. § 78l, and paid a fee of $300 with the filing.

      3.  A nonissuer transaction by a sales representative licensed in this State, in an outstanding security if:

      (a) The security is sold at a price reasonably related to the current market price of the security at the time of the transaction;

      (b) The security does not constitute all or part of an unsold allotment to, or subscription or participation by, a broker-dealer as an underwriter of the security;

      (c) At the time of the transaction, a recognized securities manual designated by the Administrator by regulation or order contains the names of the issuer’s officers and directors, a statement of the financial condition of the issuer as of a date within the preceding 18 months, and a statement of income or operations for each of the last 2 years next preceding the date of the statement of financial condition, or for the period as of the date of the statement of financial condition if the period of existence is less than 2 years;

      (d) The issuer of the security has not undergone a major reorganization, merger or acquisition within the preceding 30 days which is not reflected in the information contained in the manual; and

      (e) At the time of the transaction, the issuer of the security has a class of equity security listed on the New York Stock Exchange, American Stock Exchange or other exchange designated by the Administrator, or on the National Market System of the National Association of Securities Dealers Automated Quotation System. The requirements of this paragraph do not apply if:

             (1) The security has been outstanding for at least 180 days;

             (2) The issuer of the security is actually engaged in business and is not developing the issuer’s business, in bankruptcy or in receivership; and

             (3) The issuer of the security has been in continuous operation for at least 5 years.

      4.  A nonissuer transaction in a security that has a fixed maturity or a fixed interest or dividend provision if there has been no default during the current fiscal year or within the 3 preceding years, or during the existence of the issuer, and any predecessors if less than 3 years, in the payment of principal, interest or dividends on the security.

      5.  A nonissuer transaction effected by or through a registered broker-dealer pursuant to an unsolicited order or offer to purchase.

      6.  A transaction between the issuer or other person on whose behalf the offering of a security is made and an underwriter, or a transaction among underwriters.

 


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ê2017 Statutes of Nevada, Page 3091 (Chapter 486, AB 468)ê

 

      7.  A transaction in a bond or other evidence of indebtedness secured by a real estate mortgage, deed of trust, personal property security agreement, or by an agreement for the sale of real estate or personal property, if the entire mortgage, deed of trust or agreement, together with all the bonds or other evidences of indebtedness secured thereby, is offered and sold as a unit.

      8.  A transaction by an executor, administrator, sheriff, marshal, receiver, trustee in bankruptcy, guardian or conservator.

      9.  A transaction executed by a bona fide secured party without the purpose of evading this chapter.

      10.  An offer to sell or the sale of a security to a financial or institutional investor or to a broker-dealer.

      11.  Except as otherwise provided in this subsection, a transaction pursuant to an offer to sell securities of an issuer if:

      (a) The transaction is part of an issue in which there are not more than 25 purchasers in this State, other than those designated in subsection 10, during any 12 consecutive months;

      (b) No general solicitation or general advertising is used in connection with the offer to sell or sale of the securities;

      (c) No commission or other similar compensation is paid or given, directly or indirectly, to a person, other than a broker-dealer licensed or not required to be licensed under this chapter, for soliciting a prospective purchaser in this State; and

      (d) One of the following conditions is satisfied:

             (1) The seller reasonably believes that all the purchasers in this State, other than those designated in subsection 10, are purchasing for investment; or

             (2) Immediately before and immediately after the transaction, the issuer reasonably believes that the securities of the issuer are held by 50 or fewer beneficial owners, other than those designated in subsection 10, and the transaction is part of an aggregate offering that does not exceed $500,000 during any 12 consecutive months.

Ê The Administrator by rule or order as to a security or transaction or a type of security or transaction may withdraw or further condition the exemption set forth in this subsection or waive one or more of the conditions of the exemption.

      12.  An offer to sell or sale of a preorganization certificate or subscription if:

      (a) No commission or other similar compensation is paid or given, directly or indirectly, for soliciting a prospective subscriber;

      (b) No public advertising or general solicitation is used in connection with the offer to sell or sale;

      (c) The number of offers does not exceed 50;

      (d) The number of subscribers does not exceed 10; and

      (e) No payment is made by a subscriber.

      13.  An offer to sell or sale of a preorganization certificate or subscription issued in connection with the organization of a depository institution if that organization is under the supervision of an official or agency of a state or of the United States which has and exercises the authority to regulate and supervise the organization of the depository institution. For the purpose of this subsection, “under the supervision of an official or agency” means that the official or agency by law has authority to require disclosures to prospective investors similar to those required under NRS 90.490, impound proceeds from the sale of a preorganization certificate or subscription until organization of the depository institution is completed, and require refund to investors if the depository institution does not obtain a grant of authority from the appropriate official or agency.

 


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ê2017 Statutes of Nevada, Page 3092 (Chapter 486, AB 468)ê

 

NRS 90.490, impound proceeds from the sale of a preorganization certificate or subscription until organization of the depository institution is completed, and require refund to investors if the depository institution does not obtain a grant of authority from the appropriate official or agency.

      14.  A transaction pursuant to an offer to sell to existing security holders of the issuer, including persons who at the time of the transaction are holders of transferable warrants exercisable within not more than 90 days after their issuance, convertible securities or nontransferable warrants, if:

      (a) No commission or other similar compensation, other than a standby commission, is paid or given, directly or indirectly, for soliciting a security holder in this State; or

      (b) The issuer first files a notice specifying the terms of the offer to sell, together with a nonrefundable fee of $300, and the Administrator does not by order disallow the exemption within the next 5 full business days.

      15.  A transaction involving an offer to sell, but not a sale, of a security not exempt from registration under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., if:

      (a) A registration or offering statement or similar record as required under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., has been filed, but is not effective;

      (b) A registration statement, if required, has been filed under this chapter, but is not effective; and

      (c) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the Administrator or the Securities and Exchange Commission, and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.

      16.  A transaction involving an offer to sell, but not a sale, of a security exempt from registration under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., if:

      (a) A registration statement has been filed under this chapter, but is not effective; and

      (b) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the Administrator and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.

      17.  A transaction involving the distribution of the securities of an issuer to the security holders of another person in connection with a merger, consolidation, exchange of securities, sale of assets or other reorganization to which the issuer, or its parent or subsidiary, and the other person, or its parent or subsidiary, are parties, if:

      (a) The securities to be distributed are registered under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., before the consummation of the transaction; or

      (b) The securities to be distributed are not required to be registered under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., written notice of the transaction and a copy of the materials, if any, by which approval of the transaction will be solicited, together with a nonrefundable fee of $300, are given to the Administrator at least 10 days before the consummation of the transaction and the Administrator does not, by order, disallow the exemption within the next 10 days.

 


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ê2017 Statutes of Nevada, Page 3093 (Chapter 486, AB 468)ê

 

      18.  A transaction involving the offer to sell or sale of one or more promissory notes each of which is directly secured by a first lien on a single parcel of real estate, or a transaction involving the offer to sell or sale of participation interests in the notes if the notes and participation interests are originated by a depository institution and are offered and sold subject to the following conditions:

      (a) The minimum aggregate sales price paid by each purchaser may not be less than $250,000;

      (b) Each purchaser must pay cash either at the time of the sale or within 60 days after the sale; and

      (c) Each purchaser may buy for the purchaser’s own account only.

      19.  A transaction involving the offer to sell or sale of one or more promissory notes directly secured by a first lien on a single parcel of real estate or participating interests in the notes, if the notes and interests are originated by a mortgagee approved by the Secretary of Housing and Urban Development under sections 203 and 211 of the National Housing Act, 12 U.S.C. §§ 1709 and 1715b, and are offered or sold, subject to the conditions specified in subsection 18, to a depository institution or insurance company, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association.

      20.  A transaction between any of the persons described in subsection 19 involving a nonassignable contract to buy or sell the securities described in subsection 18 if the contract is to be completed within 2 years and if:

      (a) The seller of the securities pursuant to the contract is one of the parties described in subsection 18 or 19 who may originate securities;

      (b) The purchaser of securities pursuant to a contract is any other person described in subsection 19; and

      (c) The conditions described in subsection 18 are fulfilled.

      21.  A transaction involving one or more promissory notes secured by a lien on real estate, or participating interests in those notes, by [:

      (a) A] a mortgage [banker licensed pursuant to chapter 645E of NRS to engage in those transactions; or

      (b) A mortgage broker] company licensed pursuant to chapter 645B of NRS to engage in those transactions.

      Sec. 93. NRS 205.372 is hereby amended to read as follows:

      205.372  1.  A person who is a participant in a mortgage lending transaction and who:

      (a) Knowingly makes a false statement or misrepresentation concerning a material fact or knowingly conceals or fails to disclose a material fact;

      (b) Knowingly uses or facilitates the use of a false statement or misrepresentation made by another person concerning a material fact or knowingly uses or facilitates the use of another person’s concealment or failure to disclose a material fact;

      (c) Receives any proceeds or any other money in connection with a mortgage lending transaction that the person knows resulted from a violation of paragraph (a) or (b);

      (d) Conspires with another person to violate any of the provisions of paragraph (a), (b) or (c); or

      (e) Files or causes to be filed with a county recorder any document that the person knows to include a misstatement, misrepresentation or omission concerning a material fact,

 


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ê2017 Statutes of Nevada, Page 3094 (Chapter 486, AB 468)ê

 

Ê commits the offense of mortgage lending fraud which is a category C felony and, upon conviction, shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years, or by a fine of not more than $10,000, or by both fine and imprisonment.

      2.  A person who engages in a pattern of mortgage lending fraud or conspires or attempts to engage in a pattern of mortgage lending fraud is guilty of a category B felony and, upon conviction, shall be punished by imprisonment in the state prison for a minimum term of not less than 3 years and a maximum term of not more than 20 years, or by a fine of not more than $50,000, or by both fine and imprisonment.

      3.  Each mortgage lending transaction in which a person violates any provision of subsection 1 constitutes a separate violation.

      4.  Except as otherwise provided in this subsection, if a lender or any agent of the lender is convicted of the offense of mortgage lending fraud in violation of this section, the mortgage lending transaction with regard to which the fraud was committed may be rescinded by the borrower within 6 months after the date of the conviction if the borrower gives written notice to the lender and records that notice with the recorder of the county in which the mortgage was recorded. A mortgage lending transaction may not be rescinded pursuant to this subsection if the lender has transferred the mortgage to a bona fide purchaser.

      5.  The Attorney General may investigate and prosecute a violation of this section.

      6.  In addition to the criminal penalties imposed for a violation of this section, any person who violates this section is subject to a civil penalty of not more than $5,000 for each violation. This penalty must be recovered in a civil action, brought in the name of the State of Nevada by the Attorney General. In such an action, the Attorney General may recover reasonable attorney’s fees and costs.

      7.  The owner or holder of the beneficial interest in real property which is the subject of mortgage lending fraud may bring a civil action in the district court in and for the county in which the real property is located to recover any damages suffered by the owner or holder of the beneficial interest plus reasonable attorney’s fees and costs.

      8.  As used in this section:

      (a) “Bona fide purchaser” means any person who purchases a mortgage in good faith and for valuable consideration and who does not know or have reasonable cause to believe that the lender or any agent of the lender engaged in mortgage lending fraud in violation of this section.

      (b) “Mortgage lending transaction” means any transaction between two or more persons for the purpose of making or obtaining, attempting to make or obtain, or assisting another person to make or obtain a loan that is secured by a mortgage or other lien on residential real property. The term includes, without limitation:

             (1) The solicitation of a person to make or obtain the loan;

             (2) The representation or offer to represent another person to make or obtain the loan;

             (3) The negotiation of the terms of the loan;

             (4) The provision of services in connection with the loan; and

             (5) The execution of any document in connection with making or obtaining the loan.

 


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ê2017 Statutes of Nevada, Page 3095 (Chapter 486, AB 468)ê

 

      (c) “Participant in a mortgage lending transaction” includes, without limitation:

             (1) A borrower as defined in NRS 598D.020;

             (2) An escrow agent as defined in NRS 645A.010;

             (3) A foreclosure consultant as defined in NRS 645F.320;

             (4) A foreclosure purchaser as defined in NRS 645F.330;

             (5) An investor as defined in NRS 645B.0121;

             (6) A lender as defined in NRS 598D.050;

             (7) A loan modification consultant as defined in NRS 645F.365;

             (8) A mortgage [agent] loan originator as defined in NRS 645B.0125;

             (9) A mortgage [banker] company as defined in [NRS 645E.100;

             (10) A mortgage broker as defined in] NRS 645B.0127; and

             [(11)](10) A mortgage servicer as defined in NRS 645F.063.

      (d) “Pattern of mortgage lending fraud” means one or more violations of a provision of subsection 1 committed in two or more mortgage lending transactions which have the same or similar purposes, results, accomplices, victims or methods of commission, or are otherwise interrelated by distinguishing characteristics.

      Sec. 94. NRS 239.010 is hereby amended to read as follows:

      239.010  1.  Except as otherwise provided in this section and NRS 1.4683, 1.4687, 1A.110, 41.071, 49.095, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 119A.280, 119A.653, 119B.370, 119B.382, 120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 127.007, 127.057, 127.130, 127.140, 127.2817, 130.312, 130.712, 136.050, 159.044, 172.075, 172.245, 176.015, 176.0625, 176.09129, 176.156, 176A.630, 178.39801, 178.4715, 178.5691, 179.495, 179A.070, 179A.165, 179A.450, 179D.160, 200.3771, 200.3772, 200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3925, 209.419, 209.521, 211A.140, 213.010, 213.040, 213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 228.270, 228.450, 228.495, 228.570, 231.069, 231.1473, 233.190, 237.300, 239.0105, 239.0113, 239B.030, 239B.040, 239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 240.007, 241.020, 241.030, 241.039, 242.105, 244.264, 244.335, 250.087, 250.130, 250.140, 250.150, 268.095, 268.490, 268.910, 271A.105, 281.195, 281A.350, 281A.440, 281A.550, 284.4068, 286.110, 287.0438, 289.025, 289.080, 289.387, 289.830, 293.5002, 293.503, 293.558, 293B.135, 293D.510, 331.110, 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.16925, 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 353A.049, 353A.085, 353A.100, 353C.240, 360.240, 360.247, 360.255, 360.755, 361.044, 361.610, 365.138, 366.160, 368A.180, 372A.080, 378.290, 378.300, 379.008, 385A.830, 385B.100, 387.626, 387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 391.035, 392.029, 392.147, 392.264, 392.271, 392.850, 394.167, 394.1698, 394.447, 394.460, 394.465, 396.3295, 396.405, 396.525, 396.535, 398.403, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 425.400, 427A.1236, 427A.872, 432.205, 432B.175, 432B.280, 432B.290, 432B.407, 432B.430, 432B.560, 433.534, 433A.360, 439.840, 439B.420, 440.170, 441A.195, 441A.220, 441A.230, 442.330, 442.395, 445A.665, 445B.570, 449.209, 449.245, 449.720, 450.140, 453.164, 453.720, 453A.610, 453A.700, 458.055, 458.280, 459.

 


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ê2017 Statutes of Nevada, Page 3096 (Chapter 486, AB 468)ê

 

440.170, 441A.195, 441A.220, 441A.230, 442.330, 442.395, 445A.665, 445B.570, 449.209, 449.245, 449.720, 450.140, 453.164, 453.720, 453A.610, 453A.700, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 459.846, 463.120, 463.15993, 463.240, 463.3403, 463.3407, 463.790, 467.1005, 480.365, 481.063, 482.170, 482.5536, 483.340, 483.363, 483.575, 483.659, 483.800, 484E.070, 485.316, 503.452, 522.040, 534A.031, 561.285, 571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 599B.090, 603.070, 603A.210, 604A.710, 612.265, 616B.012, 616B.015, 616B.315, 616B.350, 618.341, 618.425, 622.310, 623.131, 623A.137, 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 628B.760, 629.047, 629.069, 630.133, 630.30665, 630.336, 630A.555, 631.368, 632.121, 632.125, 632.405, 633.283, 633.301, 633.524, 634.055, 634.214, 634A.185, 635.158, 636.107, 637.085, 637B.288, 638.087, 638.089, 639.2485, 639.570, 640.075, 640A.220, 640B.730, 640C.400, 640C.745, 640C.760, 640D.190, 640E.340, 641.090, 641A.191, 641B.170, 641C.760, 642.524, 643.189, 644.446, 645.180, 645.625, 645A.050, 645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 645D.135, [645E.300, 645E.375,] 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 648.033, 648.197, 649.065, 649.067, 652.228, 654.110, 656.105, 661.115, 665.130, 665.133, 669.275, 669.285, 669A.310, 671.170, 673.430, 675.380, 676A.340, 676A.370, 677.243, 679B.122, 679B.152, 679B.159, 679B.190, 679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, 687A.110, 687A.115, 687C.010, 688C.230, 688C.480, 688C.490, 692A.117, 692C.190, 692C.3536, 692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 703.196, 704B.320, 704B.325, 706.1725, 706A.230, 710.159, 711.600, sections 35, 38 and 41 of chapter 478, Statutes of Nevada 2011 and section 2 of chapter 391, Statutes of Nevada 2013 and unless otherwise declared by law to be confidential, all public books and public records of a governmental entity must be open at all times during office hours to inspection by any person, and may be fully copied or an abstract or memorandum may be prepared from those public books and public records. Any such copies, abstracts or memoranda may be used to supply the general public with copies, abstracts or memoranda of the records or may be used in any other way to the advantage of the governmental entity or of the general public. This section does not supersede or in any manner affect the federal laws governing copyrights or enlarge, diminish or affect in any other manner the rights of a person in any written book or record which is copyrighted pursuant to federal law.

      2.  A governmental entity may not reject a book or record which is copyrighted solely because it is copyrighted.

      3.  A governmental entity that has legal custody or control of a public book or record shall not deny a request made pursuant to subsection 1 to inspect or copy or receive a copy of a public book or record on the basis that the requested public book or record contains information that is confidential if the governmental entity can redact, delete, conceal or separate the confidential information from the information included in the public book or record that is not otherwise confidential.

      4.  A person may request a copy of a public record in any medium in which the public record is readily available. An officer, employee or agent of a governmental entity who has legal custody or control of a public record:

 


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ê2017 Statutes of Nevada, Page 3097 (Chapter 486, AB 468)ê

 

      (a) Shall not refuse to provide a copy of that public record in a readily available medium because the officer, employee or agent has already prepared or would prefer to provide the copy in a different medium.

      (b) Except as otherwise provided in NRS 239.030, shall, upon request, prepare the copy of the public record and shall not require the person who has requested the copy to prepare the copy himself or herself.

      Sec. 95. NRS 315.99815 is hereby amended to read as follows:

      315.99815  “Lending institution” means any bank or trust company, Federal National Mortgage Association approved mortgage [banker,] company, national banking association, savings and loan association or other financial institution or governmental agency of the United States which customarily provides service or otherwise aids in the financing of mortgages located in this State.

      Sec. 96. NRS 319.090 is hereby amended to read as follows:

      319.090  “Lending institution” means any bank or trust company, Federal National Mortgage Association approved mortgage [banker,] company, national banking association, savings and loan association or other financial institution or governmental agency of the United States which customarily provides service or otherwise aids in the financing of mortgages located in this state.

      Sec. 97. NRS 319.173 is hereby amended to read as follows:

      319.173  1.  There is hereby created an Advisory Committee on Housing to review and provide to the Director of the Department of Business and Industry and the Administrator advice, recommendations and other commentary regarding:

      (a) The investment of money or issuance of obligations by the Division.

      (b) The development of new programs or the improvement of existing programs of the Division.

      (c) The improvement of policies and procedures of the Division, including those relating to the dissemination of relevant information to persons who participate in or are otherwise interested in programs of the Division.

      (d) The administration of the Account for Low-Income Housing.

      (e) Any other matters referred to the Advisory Committee by the Director or Administrator.

      2.  The Advisory Committee consists of the Director of the Department of Business and Industry or his or her representative, and eight members appointed by the Director. The Director shall appoint to the Advisory Committee:

      (a) One representative of an association of mortgage [bankers] companies in this State, selected from a list of names submitted to the Director by that association.

      (b) One representative of persons engaged in residential construction in this State.

      (c) One representative of banks or savings and loan associations in this State who is knowledgeable about making mortgage loans.

      (d) One member who is knowledgeable about the sale and marketing or the management of real property in this State.

      (e) One member who is knowledgeable about the development or management of nonprofit housing in this State.

      (f) One member who is knowledgeable about housing programs sponsored, administered or supported by local governments in this State.

 


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ê2017 Statutes of Nevada, Page 3098 (Chapter 486, AB 468)ê

 

      (g) One member who is knowledgeable about federal housing programs administered by the Division.

      (h) One member who is an advocate of affordable housing.

Ê The members of the Advisory Committee are not entitled to any additional compensation for their service in that capacity.

      3.  The Director of the Department of Business and Industry or his or her representative shall serve as the Chair of the Advisory Committee. The Advisory Committee shall meet at least once each calendar quarter, and at the call of the Chair or upon the written request of the Administrator or a majority of the members of the Committee.

      4.  The Administrator shall submit annually to the Advisory Committee for its review, comment and recommendations a work plan for the activities of the Division for the succeeding calendar year. The work plan must include:

      (a) The expected needs for financing and anticipated demand for tax credits and sources of funding for each of the programs administered by the Division.

      (b) Strategies for meeting those needs and demands.

      (c) A plan for resolving any anticipated problems in carrying out those strategies.

      (d) A plan for the allocation of the resources of the Division, including the allotment of its employees’ time, to carry out the work plan in such a manner as to serve the entire area of the State adequately.

      (e) Any other matters which are critical to the success of any programs administered by the Division.

      5.  Before the:

      (a) Investment of money of the Division pursuant to NRS 319.171; or

      (b) Submission of findings to the State Board of Finance pursuant to subsection 4 of NRS 319.323,

Ê the Administrator shall submit a plan of investment or a plan of financing, together with any proposed findings relating to that plan, to the Advisory Committee for its review and comment.

      6.  The Administrator shall report to the Advisory Committee at least once each calendar quarter on the activities of the Division and the implementation of the Division’s work plan for that year.

      Sec. 98. 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 604A [,] or 645B [or 645E] of NRS, or a similar institution chartered or licensed pursuant to federal law;

      (b) A person licensed or registered or required to be licensed or registered pursuant to NRS 90.310, 90.330, 90.453, 686A.340 or 688C.190;

      (c) A person holding or required to hold a solicitation permit or license pursuant to NRS 692B.040, 692B.190 or 692B.260;

      (d)A person designated or registered or required to be designated or registered pursuant to the Commodity Exchange Act, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, the Investment Company Act of 1940 or the Investment Advisers Act of 1940, as amended;

      (e) A person licensed pursuant to 7 U.S.C. § 2009cc-3 to operate as a rural business investment company;

 


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ê2017 Statutes of Nevada, Page 3099 (Chapter 486, AB 468)ê

 

      (f) A person registered or required to be registered as a savings and loan holding company pursuant to 12 U.S.C. § 1467a;

      (g) A person registered or required to be registered as a bank holding company pursuant to 12 U.S.C. § 1844;

      (h) An investment bank holding company supervised pursuant to 15 U.S.C. § 78q;

      (i) A person electing to be treated as a business development company pursuant to 15 U.S.C. § 80a-53;

      (j) A person licensed pursuant to 15 U.S.C. § 681 to operate as a small business investment company;

      (k) A person granted final approval pursuant to 15 U.S.C. § 689c to operate as a new markets venture capital company;

      (l) A person qualifying as and electing to be considered a real estate investment trust pursuant to 26 U.S.C. § 856;

      (m) A bank, as defined in 12 U.S.C. § 1813(a);

      (n) A savings association, as defined in 12 U.S.C. § 1813(b);

      (o) A savings bank, as defined in 12 U.S.C. § 1813(g);

      (p) A thrift institution, as defined in 12 U.S.C. § 1841(i);

      (q) A national banking association organized under the National Bank Act;

      (r) An entity that is related to any of the entities described in paragraphs (a), (b), (d) to (k), inclusive, and (m) to (q), inclusive, regardless of whether the entity described in any of those paragraphs is doing business in this State; and

      (s) An issuer or a service provider,

Ê who is conducting a business activity in this State.

      2.  The term does not include:

      (a) A credit union organized under the provisions of chapter 678 of NRS or the Federal Credit Union Act;

      (b) A federal land credit association, farm credit bank, agricultural credit association or similar institution organized under the provisions of the Farm Credit Act;

      (c) A person who sells, solicits or negotiates insurance and whose business primarily consists of the sale, solicitation or negotiation of insurance; and

      (d) Any person or other entity that this State is prohibited from taxing under the Constitution, laws or treaties of the United States or the Nevada Constitution.

      3.  For the purposes of this section:

      (a) “Credit card” has the meaning ascribed to it in NRS 97A.050.

      (b) “Entity” includes, without limitation, any corporation, limited-liability company, association, organization, company, firm, partnership, joint venture, trust, business trust, receiver, trustee, syndicate, cooperative or assignee, or any other group or combination acting as a unit.

      (c) “Issuer” has the meaning ascribed to it in NRS 97A.100, except that the term does not include a seller of goods or provider of services who issues a credit card for the purpose of providing or extending credit only in connection with the goods he or she sells or the services he or she provides.

      (d) A business “primarily consists of the sale, solicitation or negotiation of insurance” if more than 50 percent of the annual income of the business from commissions is derived from the sale, solicitation or negotiation of insurance.

 


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ê2017 Statutes of Nevada, Page 3100 (Chapter 486, AB 468)ê

 

      (e) Entities are “related” if at least 50 percent of the interest, either by vote or value, in each entity is owned, either directly or indirectly, by the same entity, including either of those entities.

      (f) “Service provider” has the meaning ascribed to it in NRS 97A.130, except that the term does not include a service provider who acts in that capacity solely on behalf of a seller of goods or provider of services who issues a credit card for the purpose of providing or extending credit only in connection with the goods he or she sells or the services he or she provides.

      Sec. 99. NRS 604A.250 is hereby amended to read as follows:

      604A.250  The provisions of this chapter do not apply to:

      1.  Except as otherwise provided in NRS 604A.200, a person doing business pursuant to the authority of any law of this State or of the United States relating to banks, national banking associations, savings banks, trust companies, savings and loan associations, credit unions, mortgage [brokers, mortgage bankers,] companies, thrift companies or insurance companies, including, without limitation, any affiliate or subsidiary of such a person regardless of whether the affiliate or subsidiary is a bank.

      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 or herself 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, high-interest 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 or her 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 or her 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 or her own account.

 


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ê2017 Statutes of Nevada, Page 3101 (Chapter 486, AB 468)ê

 

      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, high-interest loan service or title loan service.

      Sec. 100. NRS 604A.655 is hereby amended to read as follows:

      604A.655  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] a mortgage [broker] company if:

             [(1)](a) The licensee and the mortgage [broker:] company:

                   [(I)](1) Maintain separate accounts, books and records;

                   [(II)](2) Are subsidiaries of the same parent corporation; and

                   [(III)](3) Maintain separate licenses; and

             [(2)](b) The mortgage [broker] company 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, high-interest loan service or title loan service, the pawnbroker may operate that service at the same office or place of business from which he or she conducts business as a pawnbroker pursuant to chapter 646 of NRS.

      Sec. 101. NRS 657.120 is hereby amended to read as follows:

      657.120  1.  A financial institution may impose and collect a fee or charge, not to exceed an amount specified in or limited by specific statute, for any service it provides to a customer, if the fee or charge is clearly and conspicuously disclosed in writing to the customer before the customer receives the service. A financial institution must provide a customer with written notice of any increase in the fee or charge at least 10 days before the increase becomes effective.

      2.  A fee or charge for the presentation for payment, on a single business day, of multiple checks drawn by a customer on an account for which there is an insufficient balance to pay all the checks, must be determined as if the checks drawn in a single series or class were presented:

      (a) In the order the checks were written;

      (b) From the lowest check number to the highest check number; or

      (c) In order of ascending amounts, the check for the smallest sum being presented first.

 


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ê2017 Statutes of Nevada, Page 3102 (Chapter 486, AB 468)ê

 

      3.  As used in this section, “financial institution” means an institution licensed pursuant to the provisions of this title or title 56 or chapter 645B [, 645E] or 649 of NRS, or a similar institution chartered or licensed pursuant to federal law.

      Sec. 102. NRS 657.130 is hereby amended to read as follows:

      657.130  1.  As used in this section, unless the context otherwise requires:

      (a) “Committee to review compliance” means one or more persons assigned or engaged by a financial institution to test, review or evaluate its conduct, transactions or potential transactions, policies or procedures for the purpose of monitoring and improving or enforcing compliance with state and federal statutes and regulations requiring safe, sound and fair lending practices, including, without limitation, acts concerning equal credit opportunity, fair housing, fair lending, flood zone protection, housing and financial discrimination, truth in lending and financial reporting to federal or state regulatory agencies.

      (b) “Financial institution” means an institution licensed pursuant to the provisions of this title or title 56 or chapter 645B [or 645E] of NRS, or a similar institution chartered or licensed pursuant to federal law. The term includes, without limitation, a holding company, affiliate or subsidiary of such an institution.

      2.  Except as otherwise voluntarily authorized by the financial institution:

      (a) A document prepared for or created by a committee to review compliance is confidential and privileged, and is not subject to discovery or admissible in evidence in a civil action of this State, even if it has been submitted to a governmental or regulatory agency of this State, the United States or a foreign government.

      (b) A member of a committee to review compliance or a person who acted under the direction of the committee cannot be required to testify in a civil action concerning the contents of a document described in paragraph (a) or concerning the discussions or conclusions of, or the actions taken by, the committee.

      Sec. 103. NRS 657.140 is hereby amended to read as follows:

      657.140  1.  Except as otherwise provided in subsection 2, a financial institution shall not include in any loan agreement a provision that allows the financial institution to recover, take, appropriate or otherwise apply as a setoff against any debt or liability owing to the financial institution under the loan agreement money from an account unrelated to the loan agreement to the extent the money is exempt from execution pursuant to paragraph (y) of subsection 1 of NRS 21.090.

      2.  The provisions of subsection 1 do not apply to a provision in a loan agreement that specifically authorizes automatic withdrawals from an account.

      3.  The provisions of this section may not be varied by agreement, and the rights conferred by this section may not be waived. Any provision included in an agreement that conflicts with this section is void.

      4.  As used in this section:

      (a) “An account unrelated to the loan agreement” includes, without limitation, an account pledged as security under the loan agreement, unless the specific account pledged as security is conspicuously described in the loan agreement.

 


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ê2017 Statutes of Nevada, Page 3103 (Chapter 486, AB 468)ê

 

      (b) “Financial institution” means an institution licensed pursuant to the provisions of this title or title 56 or chapter 645B [, 645E] or 649 of NRS, or a similar institution chartered or licensed pursuant to federal law.

      Sec. 104. NRS 658.190 is hereby amended to read as follows:

      658.190  1.  The Commissioner of Financial Institutions shall, with the cooperation of the Commissioner of Mortgage Lending, adopt regulations concerning nontraditional mortgage loan products and lending practices of persons and financial institutions that are required to be licensed or registered pursuant to the provisions of titles 55 and 56 and [chapters] chapter 645B [and 645E] of NRS and which make or offer to make loans that are secured by liens on real property.

      2.  The regulations required to be adopted by subsection 1 must be substantially similar to the provisions set forth in the “Guidance on Nontraditional Mortgage Product Risks” published by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators on November 14, 2006.

      3.  If the publication is revised, the Commissioner shall review the revision to determine whether the revision is suitable for this State. If the Commissioner determines that the revision is suitable for this State, he or she shall adopt a regulation that includes the revision.

      4.  If the Commissioner determines that the revision is not suitable for this State, the Commissioner shall hold a hearing within 60 days after his or her determination and give notice of the hearing. If, after the hearing, the Commissioner does not revise his or her determination, the Commissioner shall give written notice within 30 days after the hearing that the revision is not suitable for this State.

      5.  As used in this section, “nontraditional mortgage loan product”:

      (a) Means a residential loan agreement whose terms allow a borrower to defer repayment of principal or payment of interest on the loan for a period.

      (b) Includes, without limitation:

             (1) An interest-only loan; and

             (2) A payment option adjustable-rate mortgage.

      (c) Does not include:

             (1) A home equity line of credit other than a simultaneous second-lien home equity line of credit; or

             (2) A reverse mortgage.

      Sec. 104.5. NRS 658.210 is hereby amended to read as follows:

      658.210  1.  Except as otherwise provided in NRS 645F.296, any person authorized to engage in activities as a residential mortgage loan originator on behalf of a privately insured institution or organization licensed under title 55 or 56 of NRS shall obtain and maintain a license as a mortgage [agent.] loan originator.

      2.  As used in subsection 1:

      (a) “Mortgage [agent”] loan originator” has the meaning ascribed to in NRS 645B.0125; and

      (b) “Residential mortgage loan originator” has the meaning ascribed to it in NRS 645B.01325.

      Sec. 105. NRS 675.035 is hereby amended to read as follows:

      675.035  The provisions of this chapter apply to any person who:

      1.  Makes installment loans that are not subject to regulation pursuant to chapter 604A of NRS;

 


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ê2017 Statutes of Nevada, Page 3104 (Chapter 486, AB 468)ê

 

      2.  Is an affiliate, subsidiary or holding company of a bank, national banking association, savings bank, trust company, savings and loan association, credit union, mortgage [broker, mortgage banker,] company, mortgage servicer as that term is defined in NRS 645F.063, thrift company or insurance company; and

      3.  Seeks to evade its application by any device, subterfuge or pretense, including, without limitation:

      (a) Calling a loan by any other name;

      (b) Using any agents, affiliates or subsidiaries in an attempt to avoid the application of the provisions of this chapter; or

      (c) Having any affiliation or other business arrangement with an entity that is exempt from the provisions of this chapter pursuant to subsection 1 of NRS 675.040, the effect of which is to evade the provisions of this chapter, including, without limitation, making a loan while purporting to be the agent of such an exempt entity where the purported agent holds, acquires or maintains a material economic interest in the revenues generated by the loan.

      Sec. 106. NRS 675.040 is hereby amended to read as follows:

      675.040  This chapter does not apply to:

      1.  Except as otherwise provided in NRS 675.035, a person doing business under the authority of any law of this State or of the United States relating to banks, national banking associations, savings banks, trust companies, savings and loan associations, credit unions, mortgage [brokers, mortgage bankers,] companies, 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 or her 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 or her duties as a real estate broker if the loan is secured by real property.

      6.  Except as otherwise provided in this subsection, any firm or corporation:

      (a) Whose principal purpose or activity is lending money on real property which is secured by a mortgage;

      (b) Approved by the Federal National Mortgage Association as a seller or servicer; and

      (c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.

      7.  A person who provides money for investment in loans secured by a lien on real property, on his or her 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 chapter 604A of NRS with regard to those services regulated pursuant to chapter 604A of NRS.

      Sec. 107. NRS 675.230 is hereby amended to read as follows:

      675.230  1.  Except as otherwise provided in subsection 2, a licensee may not conduct the business of making loans under this chapter within any office, suite, room or place of business in which any other business is solicited or engaged in, except an insurance agency or notary public, or in association or conjunction with any other business, unless authority to do so is given by the Commissioner.

 


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ê2017 Statutes of Nevada, Page 3105 (Chapter 486, AB 468)ê

 

solicited or engaged in, except an insurance agency or notary public, or in association or conjunction with any other business, unless authority to do so is given by the Commissioner.

      2.  A licensee may conduct the business of making loans pursuant to this chapter in the same office or place of business as [:

      (a) A] a mortgage [broker] company if:

             [(1)](a) The licensee and the mortgage [broker:] company:

                   [(I)](1) Operate as separate legal entities;

                   [(II)](2) Maintain separate accounts, books and records;

                   [(III)](3) Are subsidiaries of the same parent corporation; and

                   [(IV)](4) Maintain separate licenses; and

             [(2)](b) The mortgage [broker] company 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) Operate as separate legal entities;

                   (II) Maintain separate accounts, books and records;

                   (III) Are subsidiaries of the same parent corporation; and

                   (IV) Maintain separate licenses; and

             (2) The mortgage 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.]

      Sec. 108. NRS 690B.180 is hereby amended to read as follows:

      690B.180  An insurer who issues policies of insurance for home protection, other than casualty insurance, shall not:

      1.  Engage in any other business of insurance or real estate pursuant to chapters 645 to [645E,] 645H, inclusive, of NRS.

      2.  Assume reinsurance from any other insurer.

      Sec. 109.  A person who, on January 1, 2020, is the holder of a valid license as a:

      1.  Mortgage broker issued pursuant to NRS 645B.020 and who is otherwise qualified to hold such a license on that date shall be deemed to hold a license as a mortgage company issued pursuant to NRS 645B.020, as amended by section 11 of this act.

      2.  Mortgage banker issued pursuant to NRS 645E.200 and who is otherwise qualified to hold such a license on that date shall be deemed to hold a license as a mortgage company issued pursuant to NRS 645B.020, as amended by section 11 of this act.

      3.  Mortgage agent issued pursuant to NRS 645B.410 and who is otherwise qualified to hold such a license on that date shall be deemed to hold a license as a mortgage loan originator issued pursuant to NRS 645B.410, as amended by section 57 of this act.

      Sec. 110.  The regulations of the Commissioner of Mortgage Lending which are codified as chapter 645E of NAC remain in effect and may be enforced with respect to any person who, on January 1, 2020, is the holder of a valid license as a mortgage banker issued pursuant to NRS 645E.200 until the Commissioner adopts regulations to repeal or replace those regulations.

      Sec. 111.  The Commissioner of Mortgage Lending shall, on or before January 1, 2020, adopt such regulations as are necessary to carry out the provisions of this act.

 


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ê2017 Statutes of Nevada, Page 3106 (Chapter 486, AB 468)ê

 

      Sec. 112. NRS 645B.035, 645E.010, 645E.020, 645E.030, 645E.040, 645E.050, 645E.060, 645E.070, 645E.080, 645E.090, 645E.100, 645E.105, 645E.115, 645E.130, 645E.150, 645E.160, 645E.165, 645E.170, 645E.200, 645E.210, 645E.220, 645E.230, 645E.280, 645E.290, 645E.291, 645E.300, 645E.310, 645E.315, 645E.320, 645E.350, 645E.360, 645E.370, 645E.375, 645E.390, 645E.420, 645E.430, 645E.440, 645E.470, 645E.620, 645E.630, 645E.640, 645E.670, 645E.680, 645E.690, 645E.700, 645E.710, 645E.750, 645E.800, 645E.900, 645E.910, 645E.920, 645E.930, 645E.950, 645E.955, 645E.960, 645F.050 and 645H.100 are hereby repealed.

      Sec. 113.  1.  This section and sections 15.5 and 88.5 of this act become effective upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act and on October 1, 2017, for all other purposes.

      2.  Sections 1 to 15, inclusive, 16 to 88, inclusive, and 89 to 112, inclusive, of this act become effective upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act and on January 1, 2020, for all other purposes.

________

 

CHAPTER 487, AB 492

Assembly Bill No. 492–Committee on Ways and Means

 

CHAPTER 487

 

[Approved: June 8, 2017]

 

AN ACT relating to taxation; revising provisions governing the total amount of transferable tax credits that may be approved by the Office of Economic Development pursuant to applications submitted to the Office by a production company that produces film, television or other media productions in this State; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law establishes a program for the issuance of transferable tax credits by the Office of Economic Development to production companies that produce films and certain other productions. (NRS 360.758-360.7598) In addition, existing law requires the Legislature, during each legislative session, to determine the amount of film tax credits allowed for each fiscal year of the upcoming biennium. (NRS 360.7594) This bill removes the provision requiring the Legislature to set the maximum dollar amount of transferrable tax credits on a biennial basis and instead provides that beginning on July 1, 2017, the total amount of transferable tax credits the Office of Economic Development is allowed to approve for the production of films and certain other productions is $10,000,000 per fiscal year. Finally, this bill specifically provides that any portion of the $10,000,000 per fiscal year for which transferable tax credits have not previously been approved may be carried forward and made available for approval during the next or any future fiscal year.

 


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ê2017 Statutes of Nevada, Page 3107 (Chapter 487, AB 492)ê

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 360.7594 is hereby amended to read as follows:

      360.7594  1.  Except as otherwise provided in this subsection, the Office of Economic Development shall not approve any application for transferable tax credits submitted pursuant to NRS 360.759 if approval of the application would cause the total amount of transferable tax credits approved pursuant to NRS 360.759 for [the current] each fiscal year to exceed the [amount appropriated or authorized for expenditure for that purpose for that fiscal year. If the Office does not approve transferable tax credits of the full amount so appropriated or authorized during any fiscal year, the remaining amount of transferable tax credits must be carried forward and made available for approval during the immediately following 2 fiscal years.] sum of $10,000,000. Any portion of the $10,000,000 per fiscal year for which transferable tax credits have not previously been approved may be carried forward and made available for approval during the next or any future fiscal year.

      2.  The transferable tax credits issued to any production company for any qualified production pursuant to NRS 360.759:

      (a) Must not exceed a total amount of $6,000,000; and

      (b) Expire 4 years after the date on which the transferable tax credits are issued to the production company.

      3.  For the purposes of calculating qualified direct production expenditures:

      (a) The compensation payable to all producers who are Nevada residents must not exceed 10 percent of the portion of the total budget of the qualified production that was expended in or attributable to any expenses incurred in this State.

      (b) The compensation payable to all producers who are not Nevada residents must not exceed 5 percent of the portion of the total budget of the qualified production that was expended in or attributable to any expenses incurred in this State.

      (c) The compensation payable to any employee, independent contractor or any other person paid a wage or salary as compensation for providing labor services on the production of the qualified production must not exceed $750,000.

      Sec. 2.  This act becomes effective on July 1, 2017.

________

 


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ê2017 Statutes of Nevada, Page 3108ê

 

CHAPTER 488, AB 491

Assembly Bill No. 491–Committee on Education

 

CHAPTER 488

 

[Approved: June 8, 2017]

 

AN ACT relating to education; requiring, with limited exception, that a child in foster care remain enrolled in his or her school of origin; providing that the relevant agency which provides child welfare services and local education agency are jointly liable for the costs of transportation for the child in foster care to attend his or her school of origin; requiring the Department of Education and each agency which provides child welfare services and local education agency to develop certain policies and procedures relating to children in foster care; eliminating the Program of School Choice for Children in Foster Care; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      In 2015, Congress passed the Every Student Succeeds Act of 2015. (20 U.S.C. §§ 6301 et seq.) This Act requires each state to adopt a plan that describes the steps the state will take to ensure the educational stability of children in foster care, including requiring, with limited exception, a child in foster care to remain enrolled in the child’s school of origin, which is the public school in which he or she was enrolled before entering foster care. (20 U.S.C. § 6311)

      Section 7 of this bill requires that a child who enters foster care or changes placement while in foster care remain enrolled in the child’s school of origin if the agency which provides child welfare services determines that it is in the best interests of the child. Section 7 also sets forth certain criteria that must be used by the agency in making such a determination.

      Section 7.5 of this bill requires the board of trustees of a school district or the governing body of a charter school to allow a pupil who leaves foster care to remain enrolled in his or her school of origin until the end of the school year unless the parent or guardian of the pupil elects to enroll the pupil in a different school.

      Section 8 of this bill requires the agency which provides child welfare services and the local education agency to provide and pay for the costs of transportation of a child in foster care to the child’s school of origin. Section 8 also requires the agency which provides the child welfare services and the local education agency to provide and pay for the costs of transportation of a child in foster care to the child’s school of origin until any dispute concerning the cost of transportation is resolved.

      Section 9 of this bill requires that the Department of Education, each local education agency and each agency which provides child welfare services to designate a single point of contact who is responsible for developing certain policies and procedures relating to children in foster care.

      Section 10 of this bill requires the State Board of Education to prepare an annual report concerning the academic progress of children in foster care who attend a public school in this State. Section 10 also requires: (1) each education agency to submit to the Department of Education a report relating to children in foster care; and (2) an agency which provides child welfare services to a child enrolled in public school in this State to provide any information requested by a local education agency as soon as practicable.

      If a court finds that a child is in need of protection and places the child other than with a parent, an agency acting as the custodian of the child is required to report to the court before any hearing for a review of the placement of the child. (NRS 432B.580) Section 13.5 of this bill requires the agency to include in the report certain information about the education of the child.

 


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ê2017 Statutes of Nevada, Page 3109 (Chapter 488, AB 491)ê

 

      Existing law establishes the Program of School Choice for Children in Foster Care. (NRS 388E.100) This program allows the legal guardian or custodian of a child who is in foster care to apply to participate in the Program so that the child may be enrolled in a public school other than the public school which the child is zoned to attend. (NRS 388E.110) Section 15 of this bill eliminates this Program. Section 15 also eliminates a provision which provides that a child who is in the legal or physical custody of an agency which provides child welfare services and is awaiting foster care placement is deemed to be homeless for the purposes of the federal McKinney-Vento Homeless Assistance Act of 1987, 42 U.S.C. §§ 11301 et seq.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 388.040 is hereby amended to read as follows:

      388.040  1.  Except as otherwise provided in subsection 2, the board of trustees of a school district that includes more than one school which offers instruction in the same grade or grades may zone the school district and determine which pupils must attend each school.

      2.  The establishment of zones pursuant to subsection 1 does not preclude a pupil from attending a:

      (a) Charter school;

      (b) University school for profoundly gifted pupils;

      (c) Public school outside the zone of attendance that the pupil is otherwise required to attend if the pupil is [enrolled in the Program of School Choice for Children in Foster Care established pursuant to NRS 388E.100;] a child in foster care who is remaining in his or her school of origin pursuant to section 7 of this act; or

      (d) Public school outside the zone of attendance that the pupil is otherwise required to attend if the pupil has been issued a fictitious address pursuant to NRS 217.462 to 217.471, inclusive, or the parent or legal guardian with whom the pupil resides has been issued a fictitious address pursuant to NRS 217.462 to 217.471, inclusive.

      Sec. 2. Chapter 388E of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 10, inclusive, of this act.

      Sec. 3. “Agency which provides child welfare services” has the meaning ascribed to it in NRS 432B.030.

      Sec. 4. “Foster care” has the meaning ascribed to it in 45 C.F.R. § 1355.20.

      Sec. 5. “Local education agency” includes, without limitation, the board of trustees of a school district and the sponsor of a charter school.

      Sec. 6. “School of origin” means the public school in which a child was enrolled at the time that the child was placed in foster care or the school in which a child who is in foster care is enrolled at the time of the most recent change in the placement of the child.

      Sec. 7. 1.  When a child enters foster care or changes placement while in foster care, the agency which provides child welfare services to the child shall determine whether it is in the best interests of the child for the child to remain in his or her school of origin. In making this determination, there is a rebuttable presumption that it is in the best interests of the child to remain in his or her school of origin.

 


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ê2017 Statutes of Nevada, Page 3110 (Chapter 488, AB 491)ê

 

      2.  In determining whether it is in the best interests of a child in foster care to remain in his or her school of origin, the agency which provides child welfare services, in consultation with the local education agency, must consider, without limitation:

      (a) The wishes of the child;

      (b) The educational success, stability and achievement of the child;

      (c) Any individualized education program or academic plan developed for the child;

      (d) Whether the child has been identified as an English learner;

      (e) The health and safety of the child;

      (f) The availability of necessary services for the child at the school of origin; and

      (g) Whether the child has a sibling enrolled in the school of origin.

Ê The costs of transporting the child to the school of origin must not be considered when determining whether it is in the best interests of the child to remain at his or her school of origin.

      3.  If the agency which provides child welfare services determines that it is in the best interests of a child in foster care to attend a public school other than the child’s school of origin:

      (a) The agency which provides child welfare services must:

             (1) Provide written notice of its determination to every interested party as soon as practicable; and

             (2) In collaboration with the local education agency, ensure that the child is immediately enrolled in that public school; and

      (b) The public school may not refuse to the enroll the child on the basis that the public school does not have:

             (1) A certificate stating that the child has been immunized and has received proper boosters for that immunization;

             (2) A birth certificate or other document suitable as proof of the child’s identity;

             (3) A copy of the child’s records from the school the child most recently attended; or

             (4) Any other documentation required by a policy adopted by the public school or the local education agency.

      Sec. 7.5. The board of trustees of a school district or the governing body of a charter school must allow a pupil who leaves foster care to remain enrolled in his or her school of origin until the end of the school year during which the child leaves foster care unless the parent or guardian of the pupil elects to enroll the pupil in a different school.

      Sec. 8. 1.  If the agency which provides child welfare services to a child has determined pursuant to section 7 of this act that it is in the best interests of the child to remain in his or her school of origin, the agency which provides child welfare services and the local education agency must provide the child with transportation to the school of origin:

      (a) For the entire time that the child is in foster care; and

      (b) Until the end of the school year during which the child leaves foster care.

      2.  The agency which provides child welfare services and the local education agency are jointly responsible for the costs of transportation of a child to the child’s school of origin unless the agency which provides child welfare services and the local education agency mutually agree otherwise.

 


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ê2017 Statutes of Nevada, Page 3111 (Chapter 488, AB 491)ê

 

      3.  If a dispute arises between the agency which provides child welfare services and the local education agency that is related to the transportation of a child in foster care to the child’s school of origin, including, without limitation, a dispute related to the costs of transportation, and the dispute is not resolved within 5 business days, the juvenile or family court with jurisdiction over the child must resolve the dispute by court order within 5 business days.

      4.  If a dispute arises between the agency which provides child welfare services and the local education agency that is related to the transportation of a child in foster care, the agency which provides child welfare services and the local education agency must provide the child with transportation to the school of origin until the dispute is resolved.

      Sec. 9. 1.  The Department, each local education agency and each agency which provides child welfare services shall designate a single point of contact who is responsible for:

      (a) Developing policies and procedures necessary for the Department, local education agency or agency which provides child welfare services, as applicable, to comply with the requirements of the Every Student Succeeds Act, 20 U.S.C. §§ 6301 et seq., including, without limitation, policies and procedures relating to the:

             (1) Communication of information relating to children in foster care among the Department, local education agencies and agencies which provide child welfare services; and

             (2) Transportation of children in foster care to their schools of origin.

      (b) Communicating and coordinating with other single points of contact designated pursuant to this section.

      2.  Policies and procedures relating to transportation of a child in foster care to his or her school of origin must include, without limitation, a plan for paying the costs of such transportation.

      3.  As used in this section, “single point of contact” means a natural person or a team of personnel, each of whom has the ability and authority to perform the responsibilities described in this section.

      Sec. 10. 1.  The State Board shall prepare an annual report concerning the academic progress of children in foster care who attend a public school in this State that includes, without limitation, the information prescribed by 20 U.S.C. § 6311(h)(1)(c)(i)-(iii).

      2.  Each local education agency shall, on or before the date established by the Department, and in the form prescribed by the Department, prepare and submit to the Department a report on children in foster care who attend a public school within the jurisdiction of the local education agency. This report must include the information prescribed by 20 U.S.C. § 6311(h)(1)(c)(i)-(iii).

      3.  An agency which provides child welfare services to a child enrolled in public school in this State shall provide any information requested by the local education agency to the local education agency as soon as practicable.

      Sec. 11. NRS 388E.010 is hereby amended to read as follows:

      388E.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in [NRS 388E.020, 388E.030 and 388E.040] sections 3 to 6, inclusive, of this act have the meanings ascribed to them in those sections.

 


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ê2017 Statutes of Nevada, Page 3112 (Chapter 488, AB 491)ê

 

      Sec. 12. NRS 392.010 is hereby amended to read as follows:

      392.010  Except as to the attendance of a pupil pursuant to NRS 388.820 to 388.874, inclusive, [388E.110] or 392.015, or section 7 of this act, or a pupil who is ineligible for attendance pursuant to NRS 392.4675 and except as otherwise provided in NRS 392.264 and 392.268:

      1.  The board of trustees of any school district may, with the approval of the Superintendent of Public Instruction:

      (a) Admit to the school or schools of the school district any pupil or pupils living in an adjoining school district within this State or in an adjoining state when the school district of residence in the adjoining state adjoins the receiving Nevada school district; or

      (b) Pay tuition for pupils residing in the school district but who attend school in an adjoining school district within this State or in an adjoining state when the receiving district in the adjoining state adjoins the school district of Nevada residence.

      2.  With the approval of the Superintendent of Public Instruction, the board of trustees of the school district in which the pupil or pupils reside and the board of trustees of the school district in which the pupil or pupils attend school shall enter into an agreement providing for the payment of such tuition as may be agreed upon, but transportation costs must be paid by the board of trustees of the school district in which the pupil or pupils reside:

      (a) If any are incurred in transporting a pupil or pupils to an adjoining school district within the State; and

      (b) If any are incurred in transporting a pupil or pupils to an adjoining state, as provided by the agreement.

      3.  In addition to the provisions for the payment of tuition and transportation costs for pupils admitted to an adjoining school district as provided in subsection 2, the agreement may contain provisions for the payment of reasonable amounts of money to defray the cost of operation, maintenance and depreciation of capital improvements which can be allocated to such pupils.

      Sec. 13. NRS 217.464 is hereby amended to read as follows:

      217.464  1.  If the Attorney General approves an application, the Attorney General shall:

      (a) Designate a fictitious address for the participant; and

      (b) Forward mail that the Attorney General receives for a participant to the participant.

      2.  The Attorney General shall not make any records containing the name, confidential address or fictitious address of a participant available for inspection or copying, unless:

      (a) The address is requested by a law enforcement agency, in which case the Attorney General shall make the address available to the law enforcement agency; or

      (b) The Attorney General is directed to do so by lawful order of a court of competent jurisdiction, in which case the Attorney General shall make the address available to the person identified in the order.

      3.  If a pupil is attending or wishes to attend [a public school that is located outside the zone of attendance as authorized by paragraph (c) of subsection 2 of NRS 388.040 or] a public school that is located in a school district other than the school district in which the pupil resides as authorized by NRS 392.016, the Attorney General shall, upon request of the public school that the pupil is attending or wishes to attend, inform the public school of whether the pupil is a participant and whether the parent or legal guardian with whom the pupil resides is a participant.

 


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ê2017 Statutes of Nevada, Page 3113 (Chapter 488, AB 491)ê

 

school of whether the pupil is a participant and whether the parent or legal guardian with whom the pupil resides is a participant. The Attorney General shall not provide any other information concerning the pupil or the parent or legal guardian of the pupil to the public school.

      Sec. 13.5. NRS 432B.580 is hereby amended to read as follows:

      432B.580  1.  Except as otherwise provided in this section and NRS 432B.513, if a child is placed pursuant to NRS 432B.550 other than with a parent, the placement must be reviewed by the court at least semiannually, and within 90 days after a request by a party to any of the prior proceedings. Unless the parent, guardian or the custodian objects to the referral, the court may enter an order directing that the placement be reviewed by a panel appointed pursuant to NRS 432B.585.

      2.  An agency acting as the custodian of the child shall, before any hearing for review of the placement of a child, submit a report to the court, or to the panel if it has been designated to review the matter, which includes:

      (a) An evaluation of the progress of the child and the family of the child and any recommendations for further supervision, treatment or rehabilitation.

      (b) Information concerning the placement of the child in relation to the child’s siblings, including, without limitation:

             (1) Whether the child was placed together with the siblings;

             (2) Any efforts made by the agency to have the child placed together with the siblings;

             (3) Any actions taken by the agency to ensure that the child has contact with the siblings; and

             (4) If the child is not placed together with the siblings:

                   (I) The reasons why the child is not placed together with the siblings; and

                   (II) A plan for the child to visit the siblings, which must be approved by the court.

      (c) Information concerning the child’s education, including:

             (1) A copy of an academic plan developed for the child pursuant to NRS 388.155, 388.165 or 388.205 [.] ;

             (2) The grade and school in which the child is enrolled;

             (3) The name of the each school the child attended before enrolling in the school in which he or she is currently enrolled and the corresponding dates of attendance;

             (4) Whether the child has not completed or passed any course of instruction that the child should have completed or passed by the time the report is submitted, which has resulted in the child having a deficiency in credits;

             (5) A copy of any individualized education program developed for the child;

             (6) A copy of any plan developed in accordance with section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794;

             (7) A summary of any special education services received by the child;

             (8) Whether a request that the child receive special education services has been made and, if so, the outcome of such a request; and

             (9) Whether, in the opinion of the agency, it is necessary to appoint a surrogate parent to represent the child in all matters relating to the provision of a free and appropriate public education to the child.

 


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ê2017 Statutes of Nevada, Page 3114 (Chapter 488, AB 491)ê

 

      (d) A copy of any explanations regarding medication that has been prescribed for the child that have been submitted by a foster home pursuant to NRS 424.0383.

      3.  Except as otherwise provided in this subsection, a copy of the report submitted pursuant to subsection 2 must be given to the parents, the guardian ad litem and the attorney, if any, representing the parent or the child. If the child was delivered to a provider of emergency services pursuant to NRS 432B.630 and the parent has not appeared in the action, the report need not be sent to that parent.

      4.  After a plan for visitation between a child and the siblings of the child submitted pursuant to subparagraph (4) of paragraph (b) of subsection 2 has been approved by the court, the agency which provides child welfare services must request the court to issue an order requiring the visitation set forth in the plan for visitation. If a person refuses to comply with or disobeys an order issued pursuant to this subsection, the person may be punished as for a contempt of court.

      5.  The court or the panel shall hold a hearing to review the placement, unless the parent, guardian or custodian files a motion with the court to dispense with the hearing. If the motion is granted, the court or panel may make its determination from any report, statement or other information submitted to it.

      6.  Except as otherwise provided in this subsection and subsection 5 of NRS 432B.520, notice of the hearing must be given by registered or certified mail to:

      (a) All the parties to any of the prior proceedings;

      (b) Any persons planning to adopt the child;

      (c) A sibling of the child, if known, who has been granted a right to visitation of the child pursuant to NRS 127.171 and his or her attorney, if any; and

      (d) Any other relatives of the child or providers of foster care who are currently providing care to the child.

      7.  The notice of the hearing required to be given pursuant to subsection 6:

      (a) Must include a statement indicating that if the child is placed for adoption the right to visitation of the child is subject to the provisions of NRS 127.171;

      (b) Must not include any confidential information described in NRS 127.140; and

      (c) Need not be given to a parent whose rights have been terminated pursuant to chapter 128 of NRS or who has voluntarily relinquished the child for adoption pursuant to NRS 127.040.

      8.  The court or panel may require the presence of the child at the hearing and shall provide to each person to whom notice was given pursuant to subsection 6 a right to be heard at the hearing.

      9.  The court or panel shall review:

      (a) The continuing necessity for and appropriateness of the placement;

      (b) The extent of compliance with the plan submitted pursuant to subsection 2 of NRS 432B.540;

      (c) Any progress which has been made in alleviating the problem which resulted in the placement of the child; and

      (d) The date the child may be returned to, and safely maintained in, the home or placed for adoption or under a legal guardianship.

 


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ê2017 Statutes of Nevada, Page 3115 (Chapter 488, AB 491)ê

 

      10.  The provision of notice and a right to be heard pursuant to this section does not cause any person planning to adopt the child, any sibling of the child or any other relative, any adoptive parent of a sibling of the child or a provider of foster care to become a party to the hearing.

      11.  As used in this section, “individualized education program” has the meaning ascribed to it in 20 U.S.C. § 1414(d)(1)(A).

      Sec. 14.  The provisions of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

      Sec. 15. NRS 388E.020, 388E.030, 388E.040, 388E.100, 388E.110, 388E.120, 388E.130, 388E.140, 388E.150 and 432B.135 are hereby repealed.

      Sec. 16.  This act becomes effective on July 1, 2017.

________

CHAPTER 489, SB 49

Senate Bill No. 49–Committee on Finance

 

CHAPTER 489

 

[Approved: June 8, 2017]

 

AN ACT relating to education; requiring an additional apportionment of money from the State Distributive School Account in the State General Fund to certain school districts and charter schools for pupils with disabilities; revising provisions governing the reimbursement of certain hospitals and other facilities for educational services provided to certain children; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law provides for a basic support guarantee to be provided for each pupil who attends public school in this State. The money is paid from the State Distributive School Account in the State General Fund. The amount of the basic support guarantee is established for each school district for each school year according to a formula. Existing law further provides for a statewide multiplier to be applied for pupils with disabilities so that additional funding is provided for such pupils from the Account. However, that additional funding is limited to not more than 13 percent of the total pupil enrollment in the school district or charter school, except in limited circumstances. (NRS 387.122) If a school district or charter school has reported an enrollment of pupils with disabilities exceeding 13 percent of total pupil enrollment, section 1 of this bill generally requires that an additional apportionment be made from the Account to the school district or charter school, for each such pupil in an amount equal to one-half of the statewide multiplier then in effect for pupils with disabilities.

      Under existing law, certain hospitals and other facilities that provide residential treatment to children and also operate a licensed private school are authorized to request reimbursement from the Department of Education for the cost of providing educational services to a child who is verified to be a patient of the hospital or facility and attends the private school for more than 7 school days. Upon receiving such a request, the Department is required to determine the amount of reimbursement as a percentage of the basic support guarantee per pupil and withhold that amount from the school district or charter school where the child would attend school if the child were not in the hospital or facility. (NRS 387.1225) If such a child is a pupil with a disability, section 1.2 of this bill provides that the hospital or facility is also entitled to a corresponding percentage of the statewide multiplier included in the basic support guarantee per pupil.

 


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ê2017 Statutes of Nevada, Page 3116 (Chapter 489, SB 49)ê

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 387.122 is hereby amended to read as follows:

      387.122  1.  For making the apportionments of the State Distributive School Account in the State General Fund required by the provisions of this title, the basic support guarantee per pupil for each school district is established by law for each school year. The formula for calculating the basic support guarantee may be expressed as an estimated weighted average per pupil, based on the total expenditures for public education in the immediately preceding even-numbered fiscal year, plus any legislative appropriations for the immediately succeeding biennium, minus those local funds not guaranteed by the State pursuant to NRS 387.163.

      2.  The estimated weighted average per pupil for the State must be calculated as a basic support guarantee for each school district through an equity allocation model that incorporates:

      (a) Factors relating to wealth in the school district;

      (b) Salary costs;

      (c) Transportation; and

      (d) Any other factor determined by the Superintendent of Public Instruction after consultation with the school districts and the State Public Charter School Authority.

      3.  The basic support guarantee per pupil must include a statewide multiplier for pupils with disabilities. Except as otherwise provided in this [subsection,] section, the funding provided to each school district and charter school through the multiplier for pupils with disabilities is limited to the actual number of pupils with disabilities enrolled in the school district or charter school, not to exceed 13 percent of total pupil enrollment for the school district or charter school. [If]

      4.  Except as otherwise provided in this subsection, if a school district or charter school has reported an enrollment of pupils with disabilities equal to more than 13 percent of total pupil enrollment, the school district or charter school must receive , for each such additional pupil, an amount of money [necessary to satisfy the requirements for maintenance of effort under federal law.

      4.]equal to one-half of the statewide multiplier then in effect for pupils with disabilities. An apportionment made to a school district or charter school pursuant to this subsection is subject to change from year to year in accordance with the number of pupils with disabilities enrolled in the school district or charter school. If the money available for apportionment pursuant to this subsection is insufficient to make the apportionment otherwise required by this subsection, the Superintendent of Public Instruction shall proportionately reduce the amount so apportioned to each school district and charter school. The Department shall account separately for any money apportioned pursuant to this subsection.

      5.  Not later than July 1 of each even-numbered year, the Superintendent of Public Instruction shall review and, if necessary, revise the factors used for the equity allocation model adopted for the previous biennium and present the review and any revisions at a meeting of the Legislative Committee on Education for consideration and recommendations by the Committee.

 


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ê2017 Statutes of Nevada, Page 3117 (Chapter 489, SB 49)ê

 

Committee. After the meeting, the Superintendent of Public Instruction shall consider any recommendations of the Legislative Committee on Education, determine whether to include those recommendations in the equity allocation model and adopt the model. The Superintendent of Public Instruction shall submit the equity allocation model to the:

      (a) Governor for inclusion in the proposed executive budget.

      (b) Director of the Legislative Counsel Bureau for transmittal to the next regular session of the Legislature.

      [5.]6.  The Department shall make available updated information regarding the equity allocation model on the Internet website maintained by the Department.

      Sec. 1.2. NRS 387.1225 is hereby amended to read as follows:

      387.1225  1.  A hospital or other facility which is licensed by the Division of Public and Behavioral Health of the Department of Health and Human Services that provides residential treatment to children and which operates a private school licensed pursuant to chapter 394 of NRS may request reimbursement from the Department for the cost of providing educational services to a child who:

      (a) The Department verifies is a patient or resident of the hospital or facility; and

      (b) Attends the private school for more than 7 school days.

      2.  Upon receiving a request for reimbursement, the Department shall determine the amount of reimbursement to which the hospital or facility is entitled as a percentage of the basic support guarantee per pupil and withhold that amount from the [county] school district or charter school where the child would attend school if the child were not placed in the hospital or facility. If the child is a pupil with a disability, the hospital or facility is also entitled to a corresponding percentage of the statewide multiplier included in the basic support guarantee per pupil pursuant to NRS 387.122. The Department shall distribute the money withheld from the [county] school district or charter school to the hospital or facility.

      3.  For the purposes of subsection 2, the amount of reimbursement to which the hospital or facility is entitled must be calculated on the basis of the number of school days the child is a patient or resident of the hospital or facility and attends the private school, excluding the 7 school days prescribed in paragraph (b) of subsection 1, in proportion to the number of days of instruction scheduled for that school year by the board of trustees of the school district or the charter school, as applicable.

      4.  The Department shall adopt any regulations necessary to carry out the provisions of this section.

      [4.]5.  As used in this section:

      (a) “Hospital” has the meaning ascribed to it in NRS 449.012.

      (b) “Private school” has the meaning ascribed to it in NRS 394.103.

      Sec. 1.5. NRS 388.429 is hereby amended to read as follows:

      388.429  1.  The Legislature declares that funding provided for each school year establishes financial resources sufficient to ensure a reasonably equal educational opportunity to pupils with disabilities residing in Nevada through the use of the statewide multiplier to the basic support guarantee prescribed by NRS 387.122.

      2.  Subject to the provisions of NRS 388.417 to 388.469, inclusive, the board of trustees of each school district shall make such special provisions as may be necessary for the education of pupils with disabilities.

 


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ê2017 Statutes of Nevada, Page 3118 (Chapter 489, SB 49)ê

 

      3.  The board of trustees of a school district in a county whose population is less than 700,000 may provide early intervening services. Such services must be provided in accordance with the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq., and the regulations adopted pursuant thereto.

      4.  The board of trustees of a school district shall establish uniform criteria governing eligibility for instruction under the special education programs provided for by NRS 388.417 to 388.469, inclusive. The criteria must prohibit the placement of a pupil in a program for pupils with disabilities solely because the pupil is a disciplinary problem in school. The criteria are subject to such standards as may be prescribed by the State Board.

      Sec. 2.  This act becomes effective on July 1, 2017.

________

CHAPTER 490, SB 124

Senate Bill No. 124–Senators Spearman, Ratti, Ford, Woodhouse, Atkinson; Cancela, Cannizzaro, Manendo, Parks and Segerblom

 

Joint Sponsor: Assemblyman Sprinkle

 

CHAPTER 490

 

[Approved: June 8, 2017]

 

AN ACT relating to firearms; revising provisions concerning the surrender, sale or transfer of any firearm by an adverse party subject to an extended order for protection against domestic violence; requiring a person convicted of a battery which constitutes domestic violence and a person convicted of stalking in certain circumstances to permanently surrender, sell or transfer any such firearm; adding additional persons to the list of persons who are prohibited from owning or having in their possession or under their custody or control any firearm; providing penalties; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes a court to include in an extended order for protection against domestic violence: (1) a requirement that the adverse party surrender, sell or transfer any firearm in his or her possession or under his or her custody or control; and (2) a prohibition on the adverse party against possessing or having under his or her custody or control any firearm while the order is in effect. (NRS 33.031) Existing law also authorizes the court to include in such an extended order a limited exception from the prohibition to possess or have under the adverse party’s custody or control any firearm if the adverse party establishes certain facts relating to the necessity of using or possessing a firearm for purposes of his or her employment. (NRS 33.031) Section 1 of this bill adds the requirement that the adverse party establish that he or she only uses or possesses the firearm in the course of his or her employment. Additionally, existing law makes an adverse party who violates any provision included in an extended order for protection against domestic violence concerning the surrender, sale, transfer, possession, custody or control of a firearm guilty of a gross misdemeanor. (NRS 33.031) Section 1 increases the crime to a category B felony.

 


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      Section 2 of this bill provides that if an adverse party who is ordered to surrender, sell or transfer any firearm pursuant to an extended order for protection against domestic violence does not have any firearm to surrender, sell or transfer, the adverse party must submit an affidavit to the court stating that fact. Section 2 additionally provides that if an adverse party sells or transfers a firearm to a licensed firearm dealer, the licensed firearm dealer is required to provide the adverse party with a receipt containing certain information regarding the sale or transfer.

      Section 3 of this bill provides that in every judgment of conviction or admonishment of rights issued for a battery which constitutes domestic violence, the court must inform the person convicted that he or she is prohibited from owning, possessing or having under his or her custody or control any firearm, and order the person convicted to permanently surrender, sell or transfer any firearm that he or she owns or has in his or her possession or under his or her custody or control. Section 4 of this bill requires a court to include a finding in the judgment of conviction or admonishment of rights of a person convicted of stalking if the court determines the victim has an ongoing, reasonable fear of physical harm and the convicted person has a relationship with the victim that also makes the act domestic violence. If such a finding is entered in the judgment of conviction or admonishment of rights, section 4 prohibits the convicted person from owning, possessing or having under his or her custody or control any firearm. Sections 3 and 4 also provide that a person who violates a provision included in a judgment of conviction or admonishment of rights issued for a battery which constitutes domestic violence or stalking relating to owning, possessing or taking other actions relating to a firearm is guilty of a category B felony.

      Existing law prohibits certain persons from owning or having in their possession or under their custody or control any firearm. A person who violates such a provision is guilty of a category B felony. (NRS 202.360) Section 7 of this bill adds to such a list of persons: (1) a person who has been convicted of stalking pursuant to Nevada law or a substantially similar law of any other state and the court has entered a finding in the judgment of conviction or admonishment of rights described above; and (2) a person currently subject to an extended order for protection against domestic violence in this State or an equivalent order in any other state. Section 5 of this bill requires such a person to surrender, sell or transfer any firearm that the person owns, possesses or has under his or her custody or control, and sets forth the procedure relating to the surrender, sale or transfer of any such firearm.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 33.031 is hereby amended to read as follows:

      33.031  1.  A court may include in an extended order issued pursuant to NRS 33.030:

      (a) A requirement that the adverse party surrender, sell or transfer any firearm in the adverse party’s possession or under the adverse party’s custody or control in the manner set forth in NRS 33.033; and

      (b) A [prohibition on] statement that, unless the provisions of subsection 3 apply, the adverse party [against] is prohibited from possessing or having under the adverse party’s custody or control any firearm while the order is in effect [.] pursuant to NRS 202.360.

      2.  In determining whether to include the provisions set forth in subsection 1 in an extended order, the court must consider, without limitation, whether the adverse party:

 


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      (a) Has a documented history of domestic violence;

      (b) Has used or threatened to use a firearm to injure or harass the applicant, a minor child or any other person; and

      (c) Has used a firearm in the commission or attempted commission of any crime.

      3.  If a court includes the provisions set forth in subsection 1 in an extended order, the court may include a limited exception from the prohibition to possess or have under the adverse party’s custody or control any firearm if the adverse party establishes that:

      (a) The adverse party is employed by an employer who requires the adverse party to use or possess a firearm as an integral part of the adverse party’s employment; [and]

      (b) The adverse party only uses or possesses the firearm in the course of such employment; and

      (c) The employer will provide for the storage of any such firearm during any period when the adverse party is not working.

      4.  An adverse party who violates any provision included in an extended order pursuant to this section concerning the surrender, sale, transfer, possession, custody or control of a firearm is guilty of a [gross misdemeanor. If the court includes any such provision in an extended order, the] category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years, and may be further punished by a fine of not more than $5,000. The court must include in the order a statement that violation of such a provision in the order is a [gross misdemeanor.] category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years, and may be further punished by a fine of not more than $5,000.

      Sec. 2. NRS 33.033 is hereby amended to read as follows:

      33.033  1.  If a court orders an adverse party to surrender , sell or transfer any firearm pursuant to NRS 33.031, the adverse party shall, not later than 24 hours after service of the order:

      (a) Surrender any firearm in the adverse party’s possession or under the adverse party’s custody or control to the appropriate local law enforcement agency designated by the court in the order;

      (b) Surrender any firearm in the adverse party’s possession or under the adverse party’s custody or control to a person designated by the court in the order; [or]

      (c) Sell or transfer any firearm in the adverse party’s possession or under the adverse party’s custody or control to a licensed firearm dealer [.] ; or

      (d) Submit an affidavit:

             (1) Informing the court that he or she currently does not have any firearm in his or her possession or under his or her custody or control; and

             (2) Acknowledging that failure to surrender, sell or transfer any firearm in his or her possession or under his or her custody or control is a violation of the extended order and state law.

      2.  If the court orders the adverse party to surrender any firearm to a local law enforcement agency pursuant to paragraph (a) of subsection 1, the law enforcement agency shall provide the adverse party with a receipt which includes a description of each firearm surrendered and the serial number of each firearm surrendered.

 


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each firearm surrendered. The adverse party shall, not later than 72 hours or 1 business day, whichever is later, after surrendering any such firearm, provide the receipt to the court.

      3.  If the court orders the adverse party to surrender any firearm to a person designated by the court pursuant to paragraph (b) of subsection 1, the adverse party shall, not later than 72 hours or 1 business day, whichever is later, after the adverse party surrenders any firearm to such person, provide to the court and the appropriate local law enforcement agency the name and address of the person designated in the order and a written description of each firearm surrendered and the serial number of each firearm surrendered to such person.

      4.  If the adverse party sells or transfers any firearm to a licensed firearm dealer [that is subject to an order] pursuant to paragraph (c) of subsection 1 [, the] :

      (a) The licensed firearm dealer shall provide the adverse party with a receipt which includes a description of each firearm sold or transferred, the serial number of each firearm sold or transferred and, if the firearm was transferred, whether the transfer is permanent or temporary; and

      (b) The adverse party shall, not later than 72 hours or 1 business day, whichever is later, after such sale or transfer, provide the receipt to the court and the appropriate local law enforcement agency . [a receipt of such sale or transfer and a written description of each firearm sold or transferred.]

      5.  If there is probable cause to believe that the adverse party has not surrendered, sold or transferred any firearm in the adverse party’s possession or under the adverse party’s custody or control within 24 hours after service of the order, the court may issue and deliver to any law enforcement officer a search warrant which authorizes the law enforcement officer to enter and search any place where there is probable cause to believe any firearm is located and seize the firearm.

      6.  A local law enforcement agency may charge and collect a fee from the adverse party for the collection and storage of a firearm pursuant to this section. The fee must not exceed the cost incurred by the local law enforcement agency to provide the service.

      7.  A licensed firearm dealer may charge and collect a fee from the adverse party for the storage of a firearm pursuant to this section.

      8.  As used in this section, “licensed firearm dealer” means a person licensed pursuant to 18 U.S.C. § 923(a).

      Sec. 3. NRS 200.485 is hereby amended to read as follows:

      200.485  1.  Unless a greater penalty is provided pursuant to subsection 2 or NRS 200.481, a person convicted of a battery which constitutes domestic violence pursuant to NRS 33.018:

      (a) For the first offense within 7 years, is guilty of a misdemeanor and shall be sentenced to:

             (1) Imprisonment in the city or county jail or detention facility for not less than 2 days, but not more than 6 months; and

             (2) Perform not less than 48 hours, but not more than 120 hours, of community service.

Ê The person shall be further punished by a fine of not less than $200, but not more than $1,000. A term of imprisonment imposed pursuant to this paragraph may be served intermittently at the discretion of the judge or justice of the peace, except that each period of confinement must be not less than 4 consecutive hours and must occur at a time when the person is not required to be at his or her place of employment or on a weekend.

 


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than 4 consecutive hours and must occur at a time when the person is not required to be at his or her place of employment or on a weekend.

      (b) For the second offense within 7 years, is guilty of a misdemeanor and shall be sentenced to:

             (1) Imprisonment in the city or county jail or detention facility for not less than 10 days, but not more than 6 months; and

             (2) Perform not less than 100 hours, but not more than 200 hours, of community service.

Ê The person shall be further punished by a fine of not less than $500, but not more than $1,000.

      (c) For the third and any subsequent offense within 7 years, is guilty of a category C felony and shall be punished as provided in NRS 193.130.

      2.  Unless a greater penalty is provided pursuant to NRS 200.481, a person convicted of a battery which constitutes domestic violence pursuant to NRS 33.018, if the battery is committed by strangulation as described in NRS 200.481, is guilty of a category C felony and shall be punished as provided in NRS 193.130 and by a fine of not more than $15,000.

      3.  In addition to any other penalty, if a person is convicted of a battery which constitutes domestic violence pursuant to NRS 33.018, the court shall:

      (a) For the first offense within 7 years, require the person to participate in weekly counseling sessions of not less than 1 1/2 hours per week for not less than 6 months, but not more than 12 months, at his or her expense, in a program for the treatment of persons who commit domestic violence that has been certified pursuant to NRS 228.470.

      (b) For the second offense within 7 years, require the person to participate in weekly counseling sessions of not less than 1 1/2 hours per week for 12 months, at his or her expense, in a program for the treatment of persons who commit domestic violence that has been certified pursuant to NRS 228.470.

Ê If the person resides in this State but the nearest location at which counseling services are available is in another state, the court may allow the person to participate in counseling in the other state in a program for the treatment of persons who commit domestic violence that has been certified pursuant to NRS 228.470.

      4.  An offense that occurred within 7 years immediately preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of this section when evidenced by a conviction, without regard to the sequence of the offenses and convictions. The facts concerning a prior offense must be alleged in the complaint, indictment or information, must not be read to the jury or proved at trial but must be proved at the time of sentencing and, if the principal offense is alleged to be a felony, must also be shown at the preliminary examination or presented to the grand jury.

      5.  In addition to any other fine or penalty, the court shall order such a person to pay an administrative assessment of $35. Any money so collected must be paid by the clerk of the court to the State Controller on or before the fifth day of each month for the preceding month for credit to the Account for Programs Related to Domestic Violence established pursuant to NRS 228.460.

      6.  In addition to any other penalty, the court may require such a person to participate, at his or her expense, in a program of treatment for the abuse of alcohol or drugs that has been certified by the Division of Public and Behavioral Health of the Department of Health and Human Services.

 


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of alcohol or drugs that has been certified by the Division of Public and Behavioral Health of the Department of Health and Human Services.

      7.  If it appears from information presented to the court that a child under the age of 18 years may need counseling as a result of the commission of a battery which constitutes domestic violence pursuant to NRS 33.018, the court may refer the child to an agency which provides child welfare services. If the court refers a child to an agency which provides child welfare services, the court shall require the person convicted of a battery which constitutes domestic violence pursuant to NRS 33.018 to reimburse the agency for the costs of any services provided, to the extent of the convicted person’s ability to pay.

      8.  If a person is charged with committing a battery which constitutes domestic violence pursuant to NRS 33.018, a prosecuting attorney shall not dismiss such a charge in exchange for a plea of guilty, guilty but mentally ill or nolo contendere to a lesser charge or for any other reason unless the prosecuting attorney knows, or it is obvious, that the charge is not supported by probable cause or cannot be proved at the time of trial. A court shall not grant probation to and, except as otherwise provided in NRS 4.373 and 5.055, a court shall not suspend the sentence of such a person.

      9.  In every judgment of conviction or admonishment of rights issued pursuant to this section, the court shall:

      (a) Inform the person convicted that he or she is prohibited from owning, possessing or having under his or her custody or control any firearm pursuant to NRS 202.360; and

      (b) Order the person convicted to permanently surrender, sell or transfer any firearm that he or she owns or that is in his or her possession or under his or her custody or control in the manner set forth in section 5 of this act.

      10.  A person who violates any provision included in a judgment of conviction or admonishment of rights issued pursuant to this section concerning the surrender, sale, transfer, ownership, possession, custody or control of a firearm is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years, and may be further punished by a fine of not more than $5,000. The court must include in the judgment of conviction or admonishment of rights a statement that a violation of such a provision in the judgment or admonishment is a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years, and may be further punished by a fine of not more than $5,000.

      11.  As used in this section:

      (a) “Agency which provides child welfare services” has the meaning ascribed to it in NRS 432B.030.

      (b) “Battery” has the meaning ascribed to it in paragraph (a) of subsection 1 of NRS 200.481.

      (c) “Offense” includes a battery which constitutes domestic violence pursuant to NRS 33.018 or a violation of the law of any other jurisdiction that prohibits the same or similar conduct.

      Sec. 4. NRS 200.575 is hereby amended to read as follows:

      200.575  1.  A person who, without lawful authority, willfully or maliciously engages in a course of conduct that would cause a reasonable person to feel terrorized, frightened, intimidated, harassed or fearful for the immediate safety of a family or household member, and that actually causes the victim to feel terrorized, frightened, intimidated, harassed or fearful for the immediate safety of a family or household member, commits the crime of stalking.

 


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person to feel terrorized, frightened, intimidated, harassed or fearful for the immediate safety of a family or household member, and that actually causes the victim to feel terrorized, frightened, intimidated, harassed or fearful for the immediate safety of a family or household member, commits the crime of stalking. Except where the provisions of subsection 2 or 3 are applicable, a person who commits the crime of stalking:

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

      (b) For any subsequent offense, is guilty of a gross misdemeanor.

      2.  A person who commits the crime of stalking and in conjunction therewith threatens the person with the intent to cause the person to be placed in reasonable fear of death or substantial bodily harm commits the crime of aggravated stalking. A person who commits the crime of aggravated stalking shall be punished for a category B felony by imprisonment in the state prison for a minimum term of not less than 2 years and a maximum term of not more than 15 years, and may be further punished by a fine of not more than $5,000.

      3.  A person who commits the crime of stalking with the use of an Internet or network site, electronic mail, text messaging or any other similar means of communication to publish, display or distribute information in a manner that substantially increases the risk of harm or violence to the victim shall be punished for a category C felony as provided in NRS 193.130.

      4.  Except as otherwise provided in subsection 2 of NRS 200.571, a criminal penalty provided for in this section may be imposed in addition to any penalty that may be imposed for any other criminal offense arising from the same conduct or for any contempt of court arising from the same conduct.

      5.  If the court finds that a person convicted of stalking pursuant to this section committed the crime against a person listed in subsection 1 of NRS 33.018 and that the victim has an ongoing, reasonable fear of physical harm, the court shall enter the finding in its judgment of conviction or admonishment of rights.

      6.  If the court includes such a finding in a judgment of conviction or admonishment of rights issued pursuant to this section, the court shall:

      (a) Inform the person convicted that he or she is prohibited from owning, possessing or having under his or her control or custody any firearm pursuant to NRS 202.360; and

      (b) Order the person convicted to permanently surrender, sell or transfer any firearm that he or she owns or that is in his or her possession or under his or her custody or control in the manner set forth in section 5 of this act.

      7.  A person who violates any provision included in a judgment of conviction or admonishment of rights issued pursuant to this section concerning the surrender, sale, transfer, ownership, possession, custody or control of a firearm is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years, and may be further punished by a fine of not more than $5,000. The court must include in the judgment of conviction or admonishment of rights a statement that a violation of such a provision in the judgment or admonishment is a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years, and may be further punished by a fine of not more than $5,000.

 


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prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years, and may be further punished by a fine of not more than $5,000.

      8.  The penalties provided in this section do not preclude the victim from seeking any other legal remedy available.

      [6.] 9.  As used in this section:

      (a) “Course of conduct” means a pattern of conduct which consists of a series of acts over time that evidences a continuity of purpose directed at a specific person.

      (b) “Family or household member” means a spouse, a former spouse, a parent or other person who is related by blood or marriage or is or was actually residing with the person.

      (c) “Internet or network site” has the meaning ascribed to it in NRS 205.4744.

      (d) “Network” has the meaning ascribed to it in NRS 205.4745.

      (e) [“Provider of Internet service” has the meaning ascribed to it in NRS 205.4758.

      (f)] “Text messaging” means a communication in the form of electronic text or one or more electronic images sent from a telephone or computer to another person’s telephone or computer by addressing the communication to the recipient’s telephone number.

      [(g)](f) “Without lawful authority” includes acts which are initiated or continued without the victim’s consent. The term does not include acts which are otherwise protected or authorized by constitutional or statutory law, regulation or order of a court of competent jurisdiction, including, but not limited to:

             (1) Picketing which occurs during a strike, work stoppage or any other labor dispute.

             (2) The activities of a reporter, photographer, camera operator or other person while gathering information for communication to the public if that person is employed or engaged by or has contracted with a newspaper, periodical, press association or radio or television station and is acting solely within that professional capacity.

             (3) The activities of a person that are carried out in the normal course of his or her lawful employment.

             (4) Any activities carried out in the exercise of the constitutionally protected rights of freedom of speech and assembly.

      Sec. 5. Chapter 202 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  If a person is prohibited from owning, possessing or having under his or her custody or control a firearm pursuant to NRS 202.360, the court in which the person is convicted shall order the person to surrender any firearm that the person owns or that is in his or her possession or under his or her custody or control to a designated law enforcement agency, a person designated by court order or a licensed firearm dealer, and the person shall, not later than 24 hours after service of the order:

      (a) Surrender any firearm that the person owns or that is in his or her possession or under his or her custody or control to the appropriate local law enforcement agency designated by the court in the order;

      (b) Surrender any firearm that the person owns or that is in his or her possession or under his or her custody or control to a person designated by the court in the order;

 


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      (c) Sell or transfer any firearm that the person owns or that is in his or her possession or under his or her custody or control to a licensed firearm dealer; or

      (d) Submit an affidavit:

             (1) Informing the court that he or she currently does not own or have any firearm in his or her possession or under his or her custody or control; and

             (2) Acknowledging that failure to surrender, sell or transfer any firearm that he or she owns or has in his or her possession or under his or her custody or control is a violation of the order and state law.

      2.  If the court orders a person to surrender any firearm to a local law enforcement agency pursuant to paragraph (a) of subsection 1, the law enforcement agency shall provide the person with a receipt which includes a description of each firearm surrendered and the serial number of each firearm surrendered. The person shall, not later than 72 hours or 1 business day, whichever is later, after surrendering any such firearm, provide the receipt to the court.

      3.  If a person surrenders any firearm to a person designated by the court pursuant to paragraph (b) of subsection 1, the person who surrenders the firearm shall, not later than 72 hours or 1 business day, whichever is later, after the person surrenders any firearm to such person, provide to the court and the appropriate local law enforcement agency the name and address of the person designated in the order and a written description of each firearm surrendered and the serial number of each firearm surrendered to such person.

      4.  If a person sells or transfers any firearm to a licensed firearm dealer pursuant to paragraph (c) of subsection 1:

      (a) The licensed firearm dealer shall provide the person with a receipt which includes a description of each firearm sold or transferred and the serial number of each firearm sold or transferred; and

      (b) The person shall, not later than 72 hours or 1 business day, whichever is later, after such sale or transfer, provide the receipt to the court and the appropriate local law enforcement agency.

      5.  If there is probable cause to believe that the person has not surrendered, sold or transferred any firearm that the person owns or in the person’s possession or under the person’s custody or control within 24 hours after service of the order, the court may issue and deliver to any law enforcement officer a search warrant which authorizes the law enforcement officer to enter and search any place where there is probable cause to believe any firearm is located and seize the firearm.

      6.  A local law enforcement agency may charge and collect a fee from the person for the collection of a firearm pursuant to this section. The fee must not exceed the cost incurred by the local law enforcement agency to provide the service.

      7.  As used in this section, “licensed firearm dealer” means a person licensed pursuant to 18 U.S.C. § 923(a).

      Sec. 6. NRS 202.253 is hereby amended to read as follows:

      202.253  As used in NRS 202.253 to 202.369, inclusive [:] , and section 5 of this act:

 

 


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      1.  “Explosive or incendiary device” means any explosive or incendiary material or substance that has been constructed, altered, packaged or arranged in such a manner that its ordinary use would cause destruction or injury to life or property.

      2.  “Firearm” means any device designed to be used as a weapon from which a projectile may be expelled through the barrel by the force of any explosion or other form of combustion.

      3.  “Firearm capable of being concealed upon the person” applies to and includes all firearms having a barrel less than 12 inches in length.

      4.  “Motor vehicle” means every vehicle that is self-propelled.

      Sec. 7. NRS 202.360 is hereby amended to read as follows:

      202.360  1.  A person shall not own or have in his or her possession or under his or her custody or control any firearm if the person:

      (a) Has been convicted in this State or any other state of a misdemeanor crime of domestic violence as defined in 18 U.S.C. § 921(a)(33);

      (b) Has been convicted of a felony in this State or any other state, or in any political subdivision thereof, or of a felony in violation of the laws of the United States of America, unless the person has received a pardon and the pardon does not restrict his or her right to bear arms;

      (c) Has been convicted of a violation of NRS 200.575 or a law of any other state that prohibits the same or substantially similar conduct and the court entered a finding in the judgment of conviction or admonishment of rights pursuant to subsection 5 of NRS 200.575;

      (d) Except as otherwise provided in NRS 33.031, is currently subject to:

             (1) An extended order for protection against domestic violence pursuant to NRS 33.017 to 33.100, inclusive, which includes a statement that the adverse party is prohibited from possessing or having under his or her custody or control any firearm while the order is in effect; or

             (2) An equivalent order in any other state;

      (e) Is a fugitive from justice;

      [(d)](f) Is an unlawful user of, or addicted to, any controlled substance; or

      [(e)](g) Is otherwise prohibited by federal law from having a firearm in his or her possession or under his or her custody or control.

Ê A person who violates the provisions of this subsection is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years, and may be further punished by a fine of not more than $5,000.

      2.  A person shall not own or have in his or her possession or under his or her custody or control any firearm if the person:

      (a) Has been adjudicated as mentally ill or has been committed to any mental health facility by a court of this State, any other state or the United States;

      (b) Has entered a plea of guilty but mentally ill in a court of this State, any other state or the United States;

      (c) Has been found guilty but mentally ill in a court of this State, any other state or the United States;

      (d) Has been acquitted by reason of insanity in a court of this State, any other state or the United States; or

      (e) Is illegally or unlawfully in the United States.

 


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Ê A person who violates the provisions of this subsection is guilty of a category D felony and shall be punished as provided in NRS 193.130.

      3.  As used in this section:

      (a) “Controlled substance” has the meaning ascribed to it in 21 U.S.C. § 802(6).

      (b) “Firearm” includes any firearm that is loaded or unloaded and operable or inoperable.

      Sec. 8.  1.  The provisions of NRS 33.031 and 33.033, as amended by sections 1 and 2 of this act, apply to an extended order issued pursuant to NRS 33.030 on or after October 1, 2017.

      2.  The provisions of NRS 200.485 and 200.575, as amended by sections 3 and 4 of this act, apply to a judgment of conviction or admonishment of rights issued on or after October 1, 2017.

      3.  The provisions of paragraph (c) of subsection 1 of NRS 202.360, as amended by section 7 of this act, apply to a judgment of conviction or admonishment of rights issued on or after October 1, 2017.

      4.  The provisions of paragraph (d) of subsection 1 of NRS 202.360, as amended by section 7 of this act, apply to an extended order issued pursuant to NRS 33.030 on or after October 1, 2017.

________

CHAPTER 491, SB 132

Senate Bill No. 132–Senator Harris

 

CHAPTER 491

 

[Approved: June 8, 2017]

 

AN ACT relating to education; providing for the establishment of an individual graduation plan for certain pupils to allow them to remain in high school for an additional period to work towards graduation; requiring the Superintendent of Public Instruction to determine certain requirements for eligibility for such a plan; revising provisions relating to academic plans for high school pupils; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires the State Board of Education to prescribe the criteria for a pupil to receive a standard high school diploma. (NRS 390.600) Section 1 of this bill requires the board of trustees of each school district and allows the governing body of a charter school that operates as a high school and is in good standing with its sponsor to adopt a policy to authorize the establishment of individual graduation plans for pupils enrolled in a high school within the school district or operated by the charter school, as applicable, who: (1) are not likely to graduate on time; (2) have scored poorly on the college and career readiness assessment; or (3) have attended or will attend school in another country as a foreign exchange student for at least one semester. Section 1 requires the Superintendent of Public Instruction to establish certain requirements for eligibility for such a plan. Section 1 further allows a pupil with an individual graduation plan to remain enrolled in high school for up to 3 semesters after the date on which he or she was otherwise scheduled to graduate. The school district or charter school, as applicable, may withdraw an individual graduation plan if the pupil is not making adequate progress as outlined in the plan or for other good cause. Section 1 provides that a pupil for whom an individual graduation plan has been established must be counted when calculating the graduation rates of pupils for the year in which the pupil was scheduled to graduate until the pupil obtains a standard high school diploma and then must be counted for the appropriate year as determined by the Department.

 


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graduation plan has been established must be counted when calculating the graduation rates of pupils for the year in which the pupil was scheduled to graduate until the pupil obtains a standard high school diploma and then must be counted for the appropriate year as determined by the Department. Section 1 also requires a pupil with an individual graduation plan who receives below a prescribed score on the college and career readiness assessment to enroll in the maximum number of units of credit per semester allowed by the public school in which he or she is enrolled unless his or her individual graduation plan provides otherwise. Finally, section 1 provides that a charter school shall be deemed to be in good standing if the charter school: (1) is carrying out an improvement plan approved by the sponsor of the charter school; or (2) operates as a high school, has a graduation rate that is more than 60 percent and is not rated in the lowest 5 percent of high schools in the State in pupil achievement and performance as determined by the Department of Education.

      Existing law requires the board of trustees of each school district to adopt a policy to develop a 4-year academic plan for pupils in high school. (NRS 388.205) Section 2 of this bill requires each public school within the school district to provide each pupil with this plan at the beginning of the pupil’s ninth grade year. Section 2 also requires: (1) a school counselor to establish and annually revise specific educational goals for each pupil in consultation with the pupil’s parent or legal guardian; and (2) the policies adopted by the board of trustees of each school district to ensure that each pupil and the pupil’s parent or legal guardian are provided with certain information regarding postsecondary and vocational education.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 388 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The board of trustees of each school district shall, and the governing body of each charter school that operates as a high school and is in good standing with its sponsor may, adopt a policy to authorize the establishment of individual graduation plans for pupils enrolled in a high school within the school district or operated by the charter school, as applicable, who:

      (a) Are deficient in credits and not likely to graduate according to schedule;

      (b) Have performed poorly on the college and career readiness assessment administered pursuant to NRS 390.610; or

      (c) Have attended or will attend school in another country as a foreign exchange student for at least one semester.

      2.  In addition to the conditions set forth in paragraphs (a), (b) and (c) of subsection 1, the Superintendent of Public Instruction may establish other conditions for a pupil to be eligible for an individual graduation plan.

      3.  An individual graduation plan must establish an academic plan for a pupil to allow the pupil to graduate with a standard high school diploma not later than 3 semesters after the date on which the pupil was otherwise scheduled to graduate. The individual graduation plan must include any conditions to which a pupil must agree to comply to remain enrolled in the high school. Such conditions may include, without limitation, any subjects that must be completed, the minimum number of units of credit in which the pupil must enroll each semester, the minimum grade point average that must be maintained by the pupil and any other conditions necessary to ensure that the pupil makes adequate progress to obtain a standard high school diploma within the time allowed.

 


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ensure that the pupil makes adequate progress to obtain a standard high school diploma within the time allowed.

      4.  The Superintendent of Public Instruction shall make a determination each year concerning:

      (a) The number of credits by which a pupil must be deficient to be eligible for an individual graduation plan;

      (b) The maximum score on the college and career readiness assessment administered pursuant to NRS 390.610 that a pupil may receive to be eligible for an individual graduation plan; and

      (c) Any other conditions that must be met for participation in an individual graduation plan.

      5.  An individual graduation plan may be withdrawn by the school district or charter school if the pupil is not making adequate progress as outlined in the individual graduation plan or for other good cause.

      6.  A pupil for whom an individual graduation plan has been established must be counted when calculating the graduation rates of pupils in the annual report of accountability for the school district or charter school in which the pupil is enrolled pursuant to NRS 385A.070 and the annual report of accountability prepared by the State Board pursuant to NRS 385A.400 for the year in which the pupil was scheduled to graduate until the pupil obtains a standard high school diploma and then must be counted for the appropriate year as determined by the Department pursuant to subsection 8.

      7.  A pupil for whom an individual graduation plan has been established must not be counted when calculating the graduation rates of pupils used to determine whether the sponsor of a charter school may take certain actions concerning the charter school pursuant to NRS 388A.330.

      8.  If a pupil for whom an individual graduation plan has been established:

      (a) Obtains a standard high school diploma within the time allowed by the individual graduation plan, the pupil must be counted as having received a standard high school diploma when calculating the graduation rates of pupils for the purposes of NRS 388A.330, if applicable, in the annual report of accountability for the school district or charter school in which the pupil is enrolled pursuant to NRS 385A.070 and the annual report of accountability prepared by the State Board pursuant to NRS 385A.400 for the year in which the pupil graduates.

      (b) Fails to obtain a standard high school diploma within the time allowed by the individual graduation plan, the pupil must be counted as having failed to receive a standard high school diploma when calculating the graduation rates of pupils for the purpose of NRS 388A.330, if applicable, in the annual report of accountability for the school district or charter school in which the pupil is enrolled pursuant to NRS 385A.070 and the annual report of accountability prepared by the State Board pursuant to NRS 385A.400 for the year in which the pupil was scheduled to graduate pursuant to his or her individual graduation plan.

      9.  Any pupil for whom an individual graduation plan has been established who receives a score on the college and career readiness assessment that is less than the score prescribed by the Superintendent of Public Instruction pursuant to paragraph (b) of subsection 4 must, unless his or her individual graduation plan provides otherwise, enroll in the maximum number of units of credit per semester allowed by the public school in which the pupil is enrolled.

 


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his or her individual graduation plan provides otherwise, enroll in the maximum number of units of credit per semester allowed by the public school in which the pupil is enrolled.

      10.  For the purposes of this section, a charter school shall be deemed to be in good standing if:

      (a) The charter school is carrying out an improvement plan approved by the sponsor of the charter school; or

      (b) The charter school:

             (1) Operates as a high school;

             (2) Has a graduation rate that is more than 60 percent; and

             (3) Is not rated in the lowest 5 percent of high schools in this State in pupil achievement and school performance as determined by the Department pursuant to the statewide system of accountability for public schools.

      Sec. 2. NRS 388.205 is hereby amended to read as follows:

      388.205  1.  The board of trustees of each school district shall adopt a policy for each public school in the school district in which ninth grade pupils are enrolled to develop a 4-year academic plan for each of those pupils. Except as otherwise provided in subsection 4, the policy must require each public school to provide each pupil with an academic plan at the beginning of the pupil’s ninth grade year. The academic plan must set forth the specific educational goals [that the pupil] established pursuant to subsection 6 each year and the steps that the pupil intends to take in order to achieve [before graduation from high school.] those goals. The plan may include, without limitation, the designation of a career pathway and enrollment in dual credit courses, career and technical education courses, advanced placement courses and honors courses.

      2.  The policy [may] must ensure that each pupil enrolled in ninth grade and the pupil’s parent or legal guardian are provided with, to the extent practicable, [the following] information [:] regarding:

      (a) The advanced placement courses, honors courses, international baccalaureate courses, dual credit courses, career and technical education courses, including, without limitation, career and technical skills-building programs, and any other educational programs, pathways or courses available to the pupil which will assist the pupil in the advancement of his or her education;

      (b) The requirements for graduation from high school with a diploma and the types of diplomas available;

      (c) The requirements for admission to the Nevada System of Higher Education , including, without limitation, the average score on the college and career readiness assessment administered pursuant to NRS 390.610 of students admitted to each community college, state college or university in the Nevada System of Higher Education, and the eligibility requirements for a Governor Guinn Millennium Scholarship; [and]

      (d) The Free Application for Federal Student Aid and advice concerning how to finance enrollment in an institution that provides postsecondary and vocational education; and

      (e) The charter schools within the school district.

      3.  The policy required by subsection 1 must require each pupil enrolled in ninth grade and the pupil’s parent or legal guardian to:

      (a) Be notified of opportunities to work in consultation with a school counselor to develop and review an academic plan for the pupil;

 


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      (b) Sign the academic plan; and

      (c) Review the academic plan at least once each school year in consultation with a school counselor and revise the plan if necessary.

      4.  If a pupil enrolls in a high school after ninth grade, an academic plan must be developed for that pupil as soon as reasonably practicable with appropriate modifications for the grade level of the pupil.

      5.  An academic plan for a pupil must be used as a guide for the pupil and the parent or legal guardian of the pupil to plan, monitor and manage the pupil’s educational and occupational development and make determinations of the appropriate courses of study for the pupil. If a pupil does not satisfy all the goals set forth in the academic plan, the pupil is eligible to graduate and receive a high school diploma if the pupil otherwise satisfies the requirements for a diploma.

      6.  Except as otherwise provided in subsection 4, a school counselor shall establish specific educational goals for each pupil in consultation with the pupil and the parent or legal guardian of the pupil, to the extent practicable, at the beginning of each pupil’s ninth grade year and as a part of the review conducted pursuant to paragraph (c) of subsection 3.

      Sec. 3. NRS 432B.580 is hereby amended to read as follows:

      432B.580  1.  Except as otherwise provided in this section and NRS 432B.513, if a child is placed pursuant to NRS 432B.550 other than with a parent, the placement must be reviewed by the court at least semiannually, and within 90 days after a request by a party to any of the prior proceedings. Unless the parent, guardian or the custodian objects to the referral, the court may enter an order directing that the placement be reviewed by a panel appointed pursuant to NRS 432B.585.

      2.  An agency acting as the custodian of the child shall, before any hearing for review of the placement of a child, submit a report to the court, or to the panel if it has been designated to review the matter, which includes:

      (a) An evaluation of the progress of the child and the family of the child and any recommendations for further supervision, treatment or rehabilitation.

      (b) Information concerning the placement of the child in relation to the child’s siblings, including, without limitation:

             (1) Whether the child was placed together with the siblings;

             (2) Any efforts made by the agency to have the child placed together with the siblings;

             (3) Any actions taken by the agency to ensure that the child has contact with the siblings; and

             (4) If the child is not placed together with the siblings:

                   (I) The reasons why the child is not placed together with the siblings; and

                   (II) A plan for the child to visit the siblings, which must be approved by the court.

      (c) A copy of [an] any academic plan or individual graduation plan developed for the child pursuant to NRS 388.155, 388.165 or 388.205 [.] or section 1 of this act.

      (d) A copy of any explanations regarding medication that has been prescribed for the child that have been submitted by a foster home pursuant to NRS 424.0383.

      3.  Except as otherwise provided in this subsection, a copy of the report submitted pursuant to subsection 2 must be given to the parents, the guardian ad litem and the attorney, if any, representing the parent or the child.

 


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child. If the child was delivered to a provider of emergency services pursuant to NRS 432B.630 and the parent has not appeared in the action, the report need not be sent to that parent.

      4.  After a plan for visitation between a child and the siblings of the child submitted pursuant to subparagraph (4) of paragraph (b) of subsection 2 has been approved by the court, the agency which provides child welfare services must request the court to issue an order requiring the visitation set forth in the plan for visitation. If a person refuses to comply with or disobeys an order issued pursuant to this subsection, the person may be punished as for a contempt of court.

      5.  The court or the panel shall hold a hearing to review the placement, unless the parent, guardian or custodian files a motion with the court to dispense with the hearing. If the motion is granted, the court or panel may make its determination from any report, statement or other information submitted to it.

      6.  Except as otherwise provided in this subsection and subsection 5 of NRS 432B.520, notice of the hearing must be given by registered or certified mail to:

      (a) All the parties to any of the prior proceedings;

      (b) Any persons planning to adopt the child;

      (c) A sibling of the child, if known, who has been granted a right to visitation of the child pursuant to NRS 127.171 and his or her attorney, if any; and

      (d) Any other relatives of the child or providers of foster care who are currently providing care to the child.

      7.  The notice of the hearing required to be given pursuant to subsection 6:

      (a) Must include a statement indicating that if the child is placed for adoption the right to visitation of the child is subject to the provisions of NRS 127.171;

      (b) Must not include any confidential information described in NRS 127.140; and

      (c) Need not be given to a parent whose rights have been terminated pursuant to chapter 128 of NRS or who has voluntarily relinquished the child for adoption pursuant to NRS 127.040.

      8.  The court or panel may require the presence of the child at the hearing and shall provide to each person to whom notice was given pursuant to subsection 6 a right to be heard at the hearing.

      9.  The court or panel shall review:

      (a) The continuing necessity for and appropriateness of the placement;

      (b) The extent of compliance with the plan submitted pursuant to subsection 2 of NRS 432B.540;

      (c) Any progress which has been made in alleviating the problem which resulted in the placement of the child; and

      (d) The date the child may be returned to, and safely maintained in, the home or placed for adoption or under a legal guardianship.

      10.  The provision of notice and a right to be heard pursuant to this section does not cause any person planning to adopt the child, any sibling of the child or any other relative, any adoptive parent of a sibling of the child or a provider of foster care to become a party to the hearing.

      Sec. 4.  This act becomes effective on July 1, 2018.

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CHAPTER 492, SB 149

Senate Bill No. 149– Senators Manendo and Hammond

 

CHAPTER 492

 

[Approved: June 8, 2017]

 

AN ACT relating to regional transportation commissions; authorizing certain regional transportation commissions to provide grants of money for the research, development or implementation of transportation projects that use new technologies; authorizing certain regional transportation commissions to enter into agreements with private entities for certain projects; authorizing certain regional transportation commissions to recommend the imposition of certain taxes to fund the transportation projects of the commission and to submit the recommendation to the board of county commissioners which created the commission; authorizing the board of county commissioners to submit the recommendation for the imposition of such taxes to the voters of the county; requiring the board of county commissioners to adopt an ordinance imposing any such taxes that are approved by the voters; revising provisions governing the composition of regional transportation commissions; authorizing certain regional transportation commissions to develop and maintain high-capacity transit systems; authorizing certain regional transportation commissions to adopt rules for the parking of unauthorized vehicles at facilities of the commission and the imposition of fees for the use of services or facilities of the commission; repealing provisions requiring certain regional transportation commissions to establish a regional rapid transit authority; revising various provisions relating to the powers and duties of regional transportation commissions; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law provides that a county may, by ordinance, create a regional transportation commission if a streets and highways plan has been adopted by the county or regional planning commission. (NRS 277A.170) Existing law also provides a regional transportation commission the exclusive right to operate a system of public transportation within its jurisdiction, as well as enter into contracts, leases and agreements with state agencies and local governments to perform its functions. (NRS 277A.270)

      Section 3 of this bill authorizes a regional transportation commission in a county whose population is 700,000 or more (currently only Clark County) to: (1) provide grants of money to conduct research for and otherwise develop and implement certain transportation projects; (2) enter into agreements with private entities for certain transportation projects in accordance with federal law; (3) impose civil penalties for unauthorized parking at a transportation facility; and (4) impose fees for the use of services or facilities of the commission.

      Section 3 also authorizes such a regional transportation commission to construct, develop and operate a high-capacity transit system with the approval of the county or city which owns any public right-of-way. Section 3.5 of this bill requires such a regional transportation commission to enter into agreements with other local governments to coordinate and collaborate on the development of a project or high-capacity transit system and to share the costs related to such projects. If such a regional transportation commission enters into such an agreement, section 4 of this bill requires the commission to create and administer an account that will hold any money appropriated by the commission or a local government in accordance with the agreement.

 


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bill requires the commission to create and administer an account that will hold any money appropriated by the commission or a local government in accordance with the agreement. Section 3.7 of this bill authorizes such a regional transportation commission to use a turnkey procurement process or competitive negotiation process in connection with a high-capacity transit project.

      Sections 5 and 6 of this bill provide that such a regional transportation commission may recommend the imposition of an additional tax on the gross receipts of any retailer from the sale of all tangible personal property sold at retail. The recommendations of the commission must specify the rate of the recommended tax, the period during which the recommended tax will be imposed and the type and location of the transportation projects the recommended tax would support, if the commission submits its recommendations to the board of county commissioners, the board of county commissioners may submit a question to the voters at the next general election asking whether the tax recommended by the commission should be imposed in the county. If a majority of the voters approve the question, the board of county commissioners is required to impose the approved tax at the rate specified in the question submitted to the voters. A board of county commissioners may only submit one such question to the voters, and any such general election must be held on or before December 31, 2020. Section 7 of this bill provides that the proceeds resulting from the imposition of such taxes must be remitted to the commission for its use in accordance with the provisions of existing law governing regional transportation commissions.

      Existing law requires a regional transportation commission in certain larger counties (currently Clark and Washoe Counties) to be composed of members of the board of county commissioners and the governing body of each city in the county. Section 10.5 of this bill provides that if a mayor of a city in such a county is not a member of the governing body of the city, the governing body may appoint the mayor to be a member of the regional transportation commission.

      Existing law requires the regional transportation commission in any county whose population is 700,000 or more (currently Clark County) to establish a regional rapid transit authority. Section 18 of this bill repeals that provision.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 277A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 7, inclusive, of this act.

      Sec. 2. As used in sections 2 to 7, inclusive, of this act, “high-capacity transit” means a public transit system that may provide a higher level of passenger capacity by increasing, without limitation, the number of vehicles utilized by the system, the size of the vehicles, the frequency of vehicle rides, travel speed or any combination thereof, and that operates in conjunction with public transit stations. The term includes, without limitation, bus rapid transit, fixed guideway, light rail transit, commuter rail, streetcar and heavy rail.

      Sec. 2.5. The provisions of sections 2 to 7, inclusive, of this act apply only to a commission in a county whose population is 700,000 or more.

      Sec. 2.7. The provisions of sections 2 to 7, inclusive, of this act, being necessary to secure and preserve the public health, safety, convenience and welfare, shall be so interpreted and liberally construed as to:

      1.  Make uniform so far as possible the laws and regulations of this State and other states and of the government of the United States having to do with the subject of transportation; and

 


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      2.  Effect any other purpose and objective for which the provisions of sections 2 to 7, inclusive, of this act are intended.

      Sec. 3.  A commission may:

      1.  Provide grants of money to conduct research for and otherwise develop and implement transportation projects that promote innovative transportation and transit technology, including, without limitation, autonomous technology as defined in NRS 482A.025.

      2.  Enter into agreements in accordance with 49 U.S.C. § 5315 and any guidelines adopted pursuant thereto.

      3.  Operate, develop and maintain a high-capacity transit system, to the exclusion of any other publicly owned system of transportation within its area of jurisdiction.

      4.  Construct high-capacity transit systems in the county or a city within the county which owns a public right-of-way if the county or city within the county approves of such construction.

      5.  Adopt regulations regarding:

      (a) Unauthorized parking of vehicles at a transportation facility within the jurisdiction of the commission, including, without limitation, the imposition of a civil penalty for a violation of such regulations; and

      (b) The imposition of fees for the use of the facilities or services of the commission and the use of such fees for the construction or operation of transportation facilities.

      Sec. 3.5. 1.  Except as otherwise provided in subsection 2, before constructing a transportation project or high-capacity transit system, a commission shall enter into agreements with any county, city, town and other political subdivision to coordinate and collaborate on the development of the transportation project or high-capacity transit system, including, without limitation, the use of public rights-of-way and the sharing of costs related to such a project.

      2.  A commission may make changes to bus schedules and bus routes and relocate bus stops within the public right-of-way without executing an agreement pursuant to subsection 1.

      Sec. 3.7. 1.  Notwithstanding the provisions of chapter 332 of NRS or NRS 625.530, a commission may utilize a turnkey procurement process to select a person to design, build, finance, operate and maintain, or any combination thereof, a high-capacity transit system, including, without limitation, any minimum operable segment thereof. The commission shall determine whether to utilize turnkey procurement for a high-capacity transit project before the completion of the preliminary engineering phase of the project. In making that determination, the commission shall evaluate whether turnkey procurement is the most cost-effective method of constructing the project on schedule and in satisfaction of its transportation objectives.

      2.  Notwithstanding the provisions of chapter 332 of NRS, a commission may utilize a competitive negotiation procurement process to procure rolling stock for a high-capacity transit project and any other equipment that is related to the project. The award of a contract under such a process must be made to the person whose proposal is determined to be the most advantageous to the commission, based on price and other factors specified in the procurement documents.

 


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      3.  If a commission develops a high-capacity transit project, the Department of Transportation is hereby designated to serve as the oversight agency to ensure compliance with the federal safety regulations for rail fixed guideway systems set forth in 49 C.F.R. Part 659.

      4.  As used in this section:

      (a) “Minimum operable segment” means the shortest portion of a high-capacity transit system that is technically capable of providing viable public transportation between two end points.

      (b) “Turnkey procurement” means a competitive procurement process by which a person is selected by a commission, based on evaluation criteria established by the commission, to design, build, operate and maintain, or any combination thereof, a high-capacity transit system, or a portion thereof, in accordance with performance criteria and technical specifications established by the commission.

      Sec. 4. If a commission enters into an agreement with a county, city, town or other political subdivision to share costs relating to a transportation project pursuant to section 3.5 of this act, the commission shall create an account administered by the commission and deposit into such account any money appropriated by each participating entity in accordance with the amounts established under the agreement. The money in the account, including any interest and income earned on the money in the account, must not be transferred to any other fund or account or used for any purpose other than the purposes set forth in the agreement entered into pursuant to section 3.5 of this act.

      Sec. 5. 1.  Except as otherwise provided in subsection 4, a commission may:

      (a) Prepare recommendations for the imposition of the tax described in section 6 of this act in the county to provide funding for the commission for the purposes set forth in sections 2 to 7, inclusive, of this act. The recommendations must specify the proposed rate for the recommended tax, the period during which the recommended tax will be imposed and the type and location of the transportation projects the recommended tax will support.

      (b) Submit the recommendations to the board of county commissioners.

      2.  Except as otherwise provided in subsection 5, upon the receipt of recommendations pursuant to subsection 1, the board of county commissioners may, at the next general election, submit a question to the voters of the county asking whether the recommended tax should be imposed in the county. The question submitted to the voters of the county must specify the proposed rate for the recommended tax, the period during which the recommended tax will be imposed, if the period was specified in the recommendations submitted pursuant to subsection 1, and the type and location of the transportation projects the recommended tax will support.

      3.  If a majority of the voters voting on the question submitted to the voters pursuant to subsection 2 vote affirmatively on the question:

      (a) The board of county commissioners shall impose the recommended tax in accordance with the provisions of section 6 of this act at the rate specified in the question submitted to the voters pursuant to subsection 2.

 

 


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      (b) The tax must be imposed notwithstanding the provisions of any specific statute to the contrary and, except as otherwise specifically provided in this section and sections 6 and 7 of this act, such tax is not subject to any limitations set forth in any statute which authorizes the board of county commissioners to impose such tax, including, without limitation, any limitations on the maximum rate which may be imposed or the duration of the period during which such tax may be imposed.

      4.  A commission may not prepare and submit recommendations to the board of county commissioners pursuant to subsection 1 on or after December 31, 2020.

      5.  A board of county commissioners may only use the authorization provided pursuant to subsection 2 to submit a question to the voters of the county one time, and only if the next general election at which the question is submitted to the voters is held not later than December 31, 2020.

      Sec. 6.  Upon approval of the registered voters of a county voting on a question presented to the voters pursuant to section 5 of this act recommending the imposition of a tax on the gross receipts of any retailer from the sale of all tangible personal property sold at retail, or stored, used or otherwise consumed, in the county, the board of county commissioners shall impose a tax by ordinance on the gross receipts of any retailer from the sale of all tangible personal property sold at retail, or stored, used or otherwise consumed, in the county. The tax must be imposed throughout the county, including all cities within the county, upon all retailers in the business of selling tangible personal property. Any ordinance enacted under this subsection must include provisions in substance as follows:

      1.  Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

      2.  A provision that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this chapter, automatically become a part of the ordinance.

      3.  A provision that the county shall, before the effective date of the ordinance, contract with the Department to perform all functions incident to the administration or operation of the tax in the county.

      4.  A provision that a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed upon the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract for the construction of an improvement to real property, entered into on or before the effective date of the tax or the increase in the tax, or for which a binding bid was submitted before the date if the bid was afterward accepted, if under the terms of the contract or bid the contract price or bid amount cannot be adjusted to reflect the imposition of the tax or the increase in the tax.

      Sec. 7. The proceeds of any tax imposed pursuant to sections 5 and 6 of this act must be remitted by the Department of Taxation to the commission for use in accordance with the provisions of sections 2 to 7, inclusive, of this act.

      Secs. 8-10. (Deleted by amendment.)

 


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      Sec. 10.5. NRS 277A.180 is hereby amended to read as follows:

      277A.180  1.  In counties whose population is 100,000 or more, the commission must be composed of representatives selected by the following entities : [from among their members:]

      (a) Two by the board [.] from among its members.

      (b) Two by the governing body of the largest city in the county [.] from among its members or, if the mayor of the city is not a member of the governing body, from among its members and the mayor of the city.

      (c) One by the governing body of each additional city in the county [.] from among its members or, if the mayor of the city is not a member of the governing body, from among its members and the mayor of the city.

      2.  In counties whose population is less than 100,000, the commission must be composed of representatives selected as follows:

      (a) If the county contains three or more cities:

             (1) Two by the board.

             (2) One by the governing body of the largest city.

      (b) If the county contains only two cities:

             (1) Three by the board, at least one of whom is a representative of the public who is a resident of the county.

             (2) One by the governing body of each city in the county.

      (c) If the county contains only one city:

             (1) Two by the board.

             (2) One by the governing body of the city.

      (d) If the county contains no city, the board shall select:

             (1) Two members of the board; and

             (2) One representative of the public, who is a resident of the largest town, if any, in the county.

      3.  In Carson City, the commission must be composed of representatives selected by the Board of Supervisors as follows:

      (a) Two members of the Board of Supervisors, one of whom must be designated by the commission to serve as chair of the commission.

      (b) Three representatives of the city at large.

      4.  The first representatives must be selected within 30 days after passage of the ordinance creating the commission, and, except as otherwise provided in subsections 5, 6 and 7, must serve until the next ensuing December 31 of an even-numbered year. The representative of any city incorporated after passage of the ordinance must be selected within 30 days after the first meeting of the governing body, and, except as otherwise provided in subsection 7, must serve until the next ensuing December 31 of an even-numbered year. Their successors must serve for terms of 2 years, and vacancies must be filled for the unexpired term.

      5.  In Carson City:

      (a) One representative of the commission who is a member of the Board of Supervisors and one representative of the commission who is a representative of the city at large must serve until the next ensuing December 31 of an even-numbered year; and

      (b) One representative of the commission who is a member of the Board of Supervisors and two representatives of the commission who are representatives of the city at large must serve until the next ensuing December 31 of an odd-numbered year.

 


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      6.  In counties whose population is 100,000 or more, but less than 700,000:

      (a) One representative selected by the board and one representative selected by the governing body of the largest city in the county must serve until the next ensuing December 31 of an even-numbered year; and

      (b) One representative selected by the board and one representative selected by the governing body of the largest city in the county must serve until the next ensuing December 31 of an odd-numbered year.

      7.  In counties whose population is 700,000 or more, the first representatives and the representative of any city incorporated after passage of the ordinance must serve until the next ensuing June 30 of an odd-numbered year.

      Sec. 11. NRS 277A.210 is hereby amended to read as follows:

      277A.210  1.  A commission may:

      [1.](a) Sue and be sued.

      [2.](b) Prepare and approve budgets for the regional street and highway fund, the public transit fund and money it receives from any source.

      [3.](c) Adopt bylaws for the administration of its affairs and rules for the administration and operation of facilities under its control.

      [4.](d) Conduct studies, develop plans and conduct public hearings to establish and approve short-range and regional plans for transportation.

      [5.](e) Purchase insurance or establish a reserve or fund for self-insurance, or adopt any combination of these, to insure against loss by reason of:

      [(a)](1) Damages resulting from fire, theft, accident or other casualty; or

      [(b)](2) The commission’s liability for other damages to persons or property which occur in the construction or operation of facilities or equipment under its control or in the conduct of its activities.

      2.  A commission shall have a perpetual succession, subject to termination in accordance with statute.

      Secs. 12-17. (Deleted by amendment.)

      Sec. 18. NRS 277A.345 is hereby repealed.

      Sec. 19.  This act becomes effective upon passage and approval.

________

 

 

 


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ê2017 Statutes of Nevada, Page 3141ê

 

CHAPTER 493, SB 213

Senate Bill No. 213–Senators Gansert, Roberson, Kieckhefer; Atkinson, Denis, Farley, Goicoechea, Hammond, Hardy, Harris, Manendo, Settelmeyer and Woodhouse

 

Joint Sponsors: Assemblymen Benitez-Thompson; Oscarson and Tolles

 

CHAPTER 493

 

[Approved: June 8, 2017]

 

AN ACT relating to education; authorizing the Superintendent of Public Instruction to carry out an inspection of a provider of special education in certain circumstances; authorizing the Superintendent of Public Instruction to take certain measures to ensure compliance with the laws governing the education of pupils with disabilities in certain circumstances; requiring the Department of Education to prescribe certain policies and procedures for programs of special education; revising certain provisions concerning background checks conducted on certain educational personnel and volunteers; authorizing a court to appoint an educational surrogate parent for a child; providing penalties; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires the Department of Education to ensure compliance with the Individuals with Disabilities Education Act, federal regulations adopted pursuant to the Act and Nevada statutes and regulations governing the education of pupils with disabilities. (20 U.S.C. §§ 1400 et seq.; 34 C.F.R. Part 300; NRS 388.417-388.5243) Existing regulations also require the Department to monitor each school district, charter school or other governmental entity responsible for providing education to pupils with disabilities and to administer a state complaint system for the investigation of potential noncompliance with certain federal or state laws. (34 C.F.R. §§ 300.151 et seq.; NAC 388.092, 388.318) Section 5 of this bill authorizes the Superintendent of Public Instruction to order an inspection of a provider of special education after determining that good cause for an inspection exists. Such an inspection may be conducted on-site, electronically or by telephone. Section 8 of this bill defines the term “provider of special education” to mean a school within a school district or charter school that provides education or services to pupils with disabilities or any other entity that is responsible for providing education or services to pupils with disabilities for a school district or charter school. If an inspection is ordered by the Superintendent and the provider of special education is found to be out of compliance with the laws governing special education, section 5 requires the Superintendent to: (1) meet with the provider to determine the most efficient and expeditious manner in which to bring the provider into compliance; and (2) request a plan of corrective action from the board of trustees of the school district or the governing body of the charter school, as applicable.

      Existing law defines “communication mode” as any system or method of communication used by a person who is deaf or whose hearing is impaired to facilitate communication. The definition includes certain systems or methods of communication used by such a person. Section 8 revises the definition of “communication mode” to clarify that such systems or methods of communication are used by a person with a disability.

      Existing law provides that the Superintendent of Public Instruction is responsible for the enforcement of the K-12 public education laws of this State, and once it is determined that a school district or a charter school is not in compliance with such laws, the Superintendent is required to request a plan of corrective action from the board of trustees of the school district or the governing body of the charter school.

 


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board of trustees of the school district or the governing body of the charter school. (NRS 385.175) Existing federal law also requires the State to conduct a hearing when a parent alleges that his or her child has not received certain due process safeguards that are required by the Individuals with Disabilities Education Act and to provide for an opportunity to appeal the decision rendered by the hearing officer. (20 U.S.C. § 1415) Section 6 of this bill requires the Superintendent to take certain measures in response to the failure or refusal of a provider of special education to comply in a timely manner with a plan of corrective action or the order of a hearing officer related to due process safeguards. Section 6 requires the Superintendent to take certain factors into consideration before determining the corrective measures to take. After considering these factors, section 6 requires the Superintendent to take appropriate measures to ensure compliance.

      Section 7 of this bill requires the Department of Education, on or before January 1, 2018, to prescribe policies and procedures necessary to carry out: (1) a program of training for certain school district and charter school personnel; and (2) requirements for notifying parents of pupils with disabilities of certain information concerning special education programs. Section 7 also requires the board of trustees of each school district and the governing body of each charter school to adopt a program for reporting certain information about special education programs in each school.

      Existing law governs the employment of persons in school districts, charter schools and university schools for profoundly gifted pupils in this State. Under existing law, certain applicants seeking employment with such schools in this State must submit a complete set of his or her fingerprints and written permission authorizing the applicable school to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its report on the criminal history of the applicant and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant. Under existing law, a teacher or other licensed personnel are required to undergo subsequent background investigations every 5 years, as a condition to continued employment with the school. (NRS 388A.515, 388C.200, 391.033, 391.104, 391.281) Sections 8.2, 8.3 and 9 of this bill require any applicant for employment with a charter school, university school for profoundly gifted pupils or public school, or volunteer at such a school who is likely to have unsupervised regular contact with pupils, to undergo certain background investigations before the school may employ the applicant or accept the volunteer. Sections 8.2, 8.3, 8.7, 8.8, 9 and 9.1 of this bill require background checks of applicants, employees and volunteers of such schools to include written authorization by the applicant, employee or volunteer for the school to obtain information concerning such persons that may be available from the Statewide Central Registry for the Collection of Information Concerning the Abuse or Neglect of a Child and any equivalent information from another jurisdiction. Sections 8.2, 8.3, 9 and 9.1 require all employees and volunteers of such a school to undergo subsequent background investigations, every 5 years, as a condition to continue employment with the school Sections 8.2, 8.3, 9 and 9.1 additionally authorize certain schools to accept gifts, grants and donations to carry out such background checks. Section 9.3 of this bill requires all applicants for employment, employees and volunteers of a private school to undergo similar background investigations and subsequent background investigations.

      Existing law gives a juvenile court exclusive jurisdiction over proceedings concerning a child in need of protection in this State, except if the child is subject to the jurisdiction of an Indian tribe pursuant to the Indian Child Welfare Act of 1978, 25 U.S.C. §§ 1901 et seq. (NRS 432B.410) Section 10 of this bill authorizes a juvenile court to appoint an educational surrogate parent for a child with a known or suspected disability under certain circumstances.

 


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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 385.040 is hereby amended to read as follows:

      385.040  1.  The State Board shall hold at least 9 but not more than 12 regular meetings annually at the State Capital. The Secretary shall call all regular meetings.

      2.  At least one of the meetings of the State Board must include a discussion with the superintendents of the school districts, presidents of the boards of trustees of the school districts, representatives of the governing bodies of charter schools, representatives of the governing bodies of university schools for profoundly gifted pupils and the chairs of all boards, commissions and councils in the public education system in this State to discuss:

      (a) The goals and benchmarks of the State for improving the academic achievement of pupils enrolled in public schools;

      (b) The effects of those goals and benchmarks on the school districts and public schools;

      (c) The status of the school districts and public schools in achieving the goals and benchmarks; and

      (d) The status of any [corrective actions imposed on a school district or public school.] plan of corrective action requested by the Superintendent of Public Instruction and of any measures taken to ensure compliance with a plan of corrective action or an order of a hearing officer pursuant to section 6 of this act.

      3.  The State Board may hold special meetings at such other times and places as the State Board may direct. The Secretary shall call special meetings upon the written request of the President or any three voting members of the State Board.

      4.  A majority of the voting members of the State Board constitutes a quorum for the transaction of business, and no action of the State Board is valid unless that action receives, at a legally called meeting, the approval of a majority of all voting members.

      Sec. 2. NRS 385.175 is hereby amended to read as follows:

      385.175  The Superintendent of Public Instruction is the educational leader for the system of K-12 public education in this State. The Superintendent of Public Instruction shall:

      1.  Execute, direct or supervise all administrative, technical and procedural activities of the Department in accordance with policies prescribed by the State Board.

      2.  Employ personnel for the positions approved by the State Board and necessary for the efficient operation of the Department.

      3.  Organize the Department in a manner which will assure efficient operation and service.

      4.  Maintain liaison and coordinate activities with other state agencies performing educational functions.

      5.  Enforce the observance of this title and all other statutes and regulations governing K-12 public education.

      6.  Request a plan of corrective action from the board of trustees of a school district or the governing body of a charter school if the Superintendent of Public Instruction determines that the school district or charter school , or any other entity which provides education to a pupil with a disability for a school district or charter school, has not complied with a requirement of this title or any other statute or regulation governing K-12 public education.

 


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Superintendent of Public Instruction determines that the school district or charter school , or any other entity which provides education to a pupil with a disability for a school district or charter school, has not complied with a requirement of this title or any other statute or regulation governing K-12 public education. The plan of corrective action must provide a timeline approved by the Superintendent of Public Instruction for compliance with the statute or regulation.

      7.  Perform such other duties as are prescribed by law.

      Sec. 3. NRS 385.230 is hereby amended to read as follows:

      385.230  1.  The Department shall, in conjunction with the State Board, prepare an annual report of the state of public education in this State. The report must include, without limitation:

      (a) An analysis of each annual report of accountability prepared by the State Board pursuant to NRS 385A.400;

      (b) An update on the status of K-12 public education in this State;

      (c) A description of the most recent vision and mission statements of the State Board and the Department, including, without limitation, the progress made by the State Board and Department in achieving those visions and missions;

      (d) A description of the goals and benchmarks for improving the academic achievement of pupils which are included in the plan to improve the achievement of pupils required by NRS 385.111;

      (e) A description of any significant changes made to the collection, maintenance or transfer of data concerning pupils by the Department, a school district, a sponsor of a charter school or a university school for profoundly gifted pupils;

      (f) Any new data elements, including, without limitation, data about individual pupils and aggregated data about pupils within a defined group, proposed for inclusion in the automated system of accountability information for Nevada established pursuant to NRS 385A.800;

      (g) An analysis of the progress the public schools have made in the previous year toward achieving the goals and benchmarks for improving the academic achievement of pupils;

      (h) An analysis of whether the standards and examinations adopted by the State Board adequately prepare pupils for success in postsecondary educational institutions and in career and workforce readiness;

      (i) An analysis of the extent to which school districts and charter schools recruit and retain effective teachers and principals;

      (j) An analysis of the ability of the automated system of accountability information for Nevada established pursuant to NRS 385A.800 to link the achievement of pupils to the performance of the individual teachers assigned to those pupils and to the principals of the schools in which the pupils are enrolled;

      (k) An analysis of the extent to which the lowest performing public schools have improved the academic achievement of pupils enrolled in those schools;

      (l) A summary of the innovative educational programs implemented by public schools which have demonstrated the ability to improve the academic achievement of pupils, including, without limitation:

             (1) Pupils who are economically disadvantaged, as defined by the State Board;

 


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             (2) Pupils from major racial and ethnic groups, as defined by the State Board;

             (3) Pupils with disabilities;

             (4) Pupils who are limited English proficient; and

             (5) Pupils who are migratory children, as defined by the State Board; [and]

      (m) A description of any plan of corrective action requested by the Superintendent of Public Instruction from the board of trustees of a school district or the governing body of a charter school and the status of that plan [.] ; and

      (n) A summary of any measures taken by the Superintendent of Public Instruction pursuant to section 6 of this act to ensure compliance with a plan of corrective action or the order of a hearing officer.

      2.  In odd-numbered years, the Superintendent of Public Instruction shall present the report prepared pursuant to subsection 1 in person to the Governor and each standing committee of the Legislature with primary jurisdiction over matters relating to K-12 public education at the beginning of each regular session of the Legislature.

      3.  In even-numbered years, the Superintendent of Public Instruction shall, on or before January 31, submit a written copy of the report prepared pursuant to subsection 1 to the Governor and to the Legislative Committee on Education.

      Sec. 4. Chapter 388 of NRS is hereby amended by adding thereto the provisions set forth as sections 5, 6 and 7 of this act.

      Sec. 5. 1.  Any person or governmental entity may request the Superintendent of Public Instruction to determine whether a provider of special education is in compliance with the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq., NRS 388.417 to 388.525, inclusive, and sections 5, 6 and 7 of this act, any regulations adopted pursuant thereto, or any other law or regulation governing the education of pupils with disabilities in this State.

      2.  Upon receipt of a request pursuant to subsection 1 or upon his or her own initiative, the Superintendent of Public Instruction must determine whether there is good cause to conduct an inspection of the provider of special education. If the Superintendent of Public Instruction determines there is good cause to conduct an inspection, the Superintendent of Public Instruction shall cause such an inspection to be conducted by the Department within 30 days after making the determination. An inspection conducted pursuant to this subsection may be conducted on-site, electronically or by telephone.

      3.  If, after an inspection conducted pursuant to subsection 2, the Superintendent of Public Instruction determines that a provider of special education is not in compliance with a law or regulation governing the education of pupils with disabilities, the Superintendent of Public Instruction must, not more than 30 days after completion of the inspection:

      (a) Meet with the provider of special education to determine the most efficient and expeditious manner in which to bring the provider of special education into compliance with the law or regulation; and

      (b) Request the board of trustees of the school district or the governing body of the charter school, as applicable, to establish a plan of corrective action pursuant to NRS 385.175 to ensure compliance with the law or regulation.

 


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      Sec. 6. 1.  If a provider of special education fails or refuses to comply in a timely manner with a plan of corrective action established pursuant to NRS 385.175 or with an order of a hearing officer issued pursuant to a due process hearing conducted pursuant to the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq., or pursuant to an appeal therefrom, the Superintendent of Public Instruction must take appropriate measures to ensure compliance with the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq., NRS 388.417 to 388.525, inclusive, and sections 5, 6 and 7 of this act, any regulations adopted pursuant thereto, or any other law or regulation governing the education of pupils with disabilities in this State.

      2.  In determining the appropriate measures to take to ensure compliance with the laws and regulations governing the education of pupils with disabilities, the Superintendent of Public Instruction must consider:

      (a) The severity of the failure to comply with the plan of corrective action or the order of the hearing officer and the length and number of times that the provider of special education has been out of compliance with the laws and regulations governing the education of pupils with disabilities;

      (b) Whether the provider of special education made a good faith effort to comply with the plan of corrective action or the order of the hearing officer;

      (c) The impact on pupils served by the provider of special education of the failure to comply with the plan of corrective action or the order of the hearing officer; and

      (d) Whether the provider of special education has previously failed to comply with such a plan of corrective action or order of a hearing officer.

      3.  The actions which the Superintendent of Public Instruction may take to ensure compliance pursuant to subsection 1 after considering the factors set forth in subsection 2 include, without limitation:

      (a) Extending the time by which the provider of special education must comply with the plan of corrective action;

      (b) Revising the plan of corrective action;

      (c) Requiring the school district or the governing body of the charter school, as applicable, to provide technical assistance to the provider of special education to assist with compliance with the laws and regulations governing the education of pupils with disabilities;

      (d) Requiring the school district or the governing body of the charter school, as applicable, to provide appropriate professional development for the provider of special education to assist with compliance with the laws and regulations governing the education of pupils with disabilities;

      (e) Ordering an investigation of compliance by the provider of special education or additional inspections of the provider of special education to ensure compliance with the laws and regulations governing the education of pupils with disabilities, or both;

      (f) Requiring the school district or charter school, as appropriate, to assign one or more persons to monitor compliance with the plan of corrective action or order of the hearing officer and the laws and regulations governing the education of pupils with disabilities by the provider of special education;

 


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      (g) Notwithstanding any collective bargaining agreement or contract of employment to the contrary, requiring the school district or charter school, as applicable, to take appropriate disciplinary action against a principal or other administrator who knowingly and willfully fails to comply with a plan of corrective action or order of a hearing officer;

      (h) Requiring the provider of special education to attend a public meeting of the State Board to explain the failure of the provider of special education to comply with a plan of corrective action or order of a hearing officer, address public concerns and outline the actions that the provider of special education intends to take to ensure compliance with the laws and regulations governing the education of pupils with disabilities;

      (i) Taking punitive action against the provider of special education, which may include, without limitation:

             (1) To the extent possible, redirecting money provided by the Federal Government for administrative costs related to the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq.; or

             (2) To the extent possible, withholding, in whole or in part, any federal or state apportionment to the provider; or

      (j) Seeking enforcement of a plan of corrective action or the order of a hearing officer in a court of competent jurisdiction.

      4.  The Superintendent of Public Instruction may work with any other appropriate governmental entity to carry out the provisions of subsection 3.

      Sec. 7. 1.  The Department, in accordance with the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq., and the regulations adopted pursuant thereto, shall adopt regulations prescribing:

      (a) Standards for a program of training for persons who are employed by school districts and charter schools and who assist in carrying out the education of pupils who are receiving special education services pursuant to NRS 388.417 to 388.469, inclusive, and sections 5, 6 and 7 of this act, including, without limitation, teachers, administrators, other licensed educational personnel, substitute teachers, personnel who provide related services and paraprofessionals.

      (b) The required content and manner of notifying the parents of pupils with disabilities of certain information, which must include, without limitation:

             (1) A description of the procedure whereby an individualized education program is developed and implemented for a pupil with a disability.

             (2) That the parent of a pupil with a disability has the right to invite persons who have knowledge or special expertise regarding the pupil, including, without limitation, related service personnel, to participate as a member of the individualized education program team for the pupil.

             (3) A description of the effect of receiving an adjusted diploma, if a pupil with a disability desires to receive an adjusted diploma pursuant to NRS 390.600, including, without limitation, that an adjusted diploma may not be used to apply to a college or university.

      2.  The board of trustees of each school district and the governing body of each charter school shall adopt a program for reporting information concerning the special education programs in each school. The report must include, without limitation, the total number of pupils with disabilities:

 


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ê2017 Statutes of Nevada, Page 3148 (Chapter 493, SB 213)ê

 

      (a) With an individualized education program.

      (b) Who received a standard high school diploma.

      (c) Who received an adjusted diploma.

      (d) Who dropped out of school.

      (e) Who did not satisfy the requirements set forth in his or her individualized education program.

      Sec. 8. NRS 388.417 is hereby amended to read as follows:

      388.417  As used in NRS 388.417 to 388.515, inclusive [:] , and sections 5, 6 and 7 of this act:

      1.  “Communication mode” means any system or method of communication used by a person with a disability, including, without limitation, a person who is deaf or whose hearing is impaired , to facilitate communication which may include, without limitation:

      (a) American Sign Language;

      (b) English-based manual or sign systems;

      (c) Oral and aural communication;

      (d) Spoken and written English, including speech reading or lip reading; and

      (e) Communication with assistive technology devices.

      2.  “Dyslexia” means a neurological learning disability characterized by difficulties with accurate and fluent word recognition and poor spelling and decoding abilities that typically result from a deficit in the phonological component of language.

      3.  “Dyslexia intervention” means systematic, multisensory intervention offered in an appropriate setting that is derived from evidence-based research.

      4.  “Individualized education program” has the meaning ascribed to it in 20 U.S.C. § 1414(d)(1)(A).

      5.  “Individualized education program team” has the meaning ascribed to it in 20 U.S.C. § 1414(d)(1)(B).

      6.  “Provider of special education” means a school within a school district or charter school that provides education or services to pupils with disabilities or any other entity that is responsible for providing education or services to a pupil with a disability for a school district or charter school.

      7.  “Pupil who receives early intervening services” means a person enrolled in kindergarten or grades 1 to 12, inclusive, who is not a pupil with a disability but who needs additional academic and behavioral support to succeed in a regular school program.

      [7.]8.  “Pupil with a disability” means a “child with a disability,” as that term is defined in 20 U.S.C. § 1401(3)(A), who is under 22 years of age.

      [8.]9.  “Response to scientific, research-based intervention” means a collaborative process which assesses a pupil’s response to scientific, research-based intervention that is matched to the needs of a pupil and that systematically monitors the level of performance and rate of learning of the pupil over time for the purpose of making data-based decisions concerning the need of the pupil for increasingly intensified services.

      [9.]10.  “Specific learning disability” means a disorder in one or more of the basic psychological processes involved in understanding or using spoken or written language which is not primarily the result of a visual, hearing or motor impairment, intellectual disability, serious emotional disturbance, or an environmental, cultural or economic disadvantage. Such a disorder may manifest itself in an imperfect ability to listen, think, speak, read, write, spell or perform mathematical calculations.

 


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read, write, spell or perform mathematical calculations. The term includes, without limitation, perceptual disabilities, brain injury, minimal brain dysfunction, dyslexia and developmental aphasia.

      Sec. 8.2. NRS 388A.515 is hereby amended to read as follows:

      388A.515  1.  Each applicant for employment with or employee at a charter school, except a licensed teacher or other person licensed by the Superintendent of Public Instruction, or volunteer at a charter school who is likely to have unsupervised or regular contact with pupils, must, [as a condition to] before beginning his or her employment [,] or service as a volunteer and at least once every 5 years thereafter, submit to the governing body of the charter school [a] :

      (a) A complete set of the applicant’s , employee’s or volunteer’s fingerprints and written permission authorizing the governing body to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its report on the criminal history of the applicant , employee or volunteer and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant [.] , employee or volunteer; and

      (b) Written authorization for the governing body to obtain any information concerning the applicant, employee or volunteer that may be available from the Statewide Central Registry for the Collection of Information Concerning the Abuse or Neglect of a Child established by NRS 432.100 and any equivalent registry maintained by a governmental entity in a jurisdiction in which the applicant, employee or volunteer has resided within the immediately preceding 5 years.

      2.  In conducting an investigation into the background of an applicant, employee or volunteer, the governing body of a charter school may cooperate with any appropriate law enforcement agency to obtain information relating to the background of the applicant, employee or volunteer, including, without limitation, any record of warrants for the arrest of or application for protective orders against the applicant, employee or volunteer.

      3.  If the [reports on the criminal history of an applicant indicate] information obtained by the governing body pursuant subsection 1 or 2 indicates that the applicant , employee or volunteer has not been convicted of a felony or an offense involving moral turpitude, the governing body of the charter school may employ the applicant [.

      3.]or employee or accept the volunteer, as applicable.

      4.  If [a report on the criminal history of an applicant] the information obtained by the governing body pursuant to subsection 1 or 2 indicates that the applicant , employee or volunteer has been convicted of a felony or an offense involving moral turpitude and the governing body of the charter school does not disqualify the applicant or employee from [further consideration of] employment or the volunteer from serving as a volunteer on the basis of that [report,] information, the governing body shall, upon the written authorization of the applicant, employee or volunteer, forward a copy of the [report] information to the Superintendent of Public Instruction. If the applicant , employee or volunteer refuses to provide his or her written authorization to forward a copy of the [report] information pursuant to this subsection, the charter school shall not employ the applicant [.

      4.]or employee or accept the volunteer, as applicable.

 


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      5.  The Superintendent of Public Instruction or the Superintendent’s designee shall promptly review the [report] information to determine whether the conviction of the applicant , employee or volunteer is related or unrelated to the position with the charter school for which the applicant has applied [. If the applicant desires employment with the charter school, the] or in which the employee is employed or the volunteer wishes to serve. The applicant , employee or volunteer shall, upon the request of the Superintendent of Public Instruction or the Superintendent’s designee, provide any further information that the Superintendent or the designee determines is necessary to make the determination. If the governing body of the charter school desires to employ the applicant [,] or employee or accept the volunteer, the governing body shall, upon the request of the Superintendent of Public Instruction or the Superintendent’s designee, provide any further information that the Superintendent or the designee determines is necessary to make the determination. The Superintendent of Public Instruction or the Superintendent’s designee shall provide written notice of the determination to the applicant , employee or volunteer and to the governing body of the charter school.

      [5.]6.  If the Superintendent of Public Instruction or the Superintendent’s designee determines that the conviction of the applicant , employee or volunteer is related to the position with the charter school for which the applicant has applied [,] or in which the employee is employed or the volunteer wishes to serve, the governing body of the charter school shall not employ the applicant [.] or employee or accept the volunteer, as applicable. If the Superintendent of Public Instruction or the Superintendent’s designee determines that the conviction of the applicant , employee or volunteer is unrelated to the position with the charter school for which the applicant has applied [,] or in which the employee is employed or the volunteer wishes to serve, the governing body of the charter school may employ the applicant or employee for that position [.] or accept the volunteer, as applicable.

      7.  The governing body of a charter school may use a substantiated report of the abuse or neglect of a child or a violation of NRS 201.540, 201.560 or 392.4633 obtained from the Statewide Central Registry or an equivalent registry maintained by a governmental agency in another jurisdiction:

      (a) When making determinations concerning assignments, requiring retraining, imposing discipline, hiring, termination or accepting a volunteer; and

      (b) In any proceedings to which the report is relevant, including, without limitation, an action for trespass or a restraining order.

      8.  The governing body of a charter school may accept any gifts, grants and donations to carry out the provisions of this section.

      Sec. 8.3. NRS 388C.200 is hereby amended to read as follows:

      388C.200  1.  Each applicant for employment with and employee at a university school for profoundly gifted pupils, except a licensed teacher or other person licensed by the Superintendent of Public Instruction, and each volunteer at a university school for profoundly gifted pupils who is likely to have regular or unsupervised contact with pupils, must, [as a condition to] before beginning his or her employment [,] or service as a volunteer and at least once every 5 years thereafter, submit to the governing body of the university school [a] :

 


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      (a) A complete set of his or her fingerprints and written permission authorizing the governing body to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its report on the criminal history of the applicant , employee or volunteer and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant [.] , employee or volunteer; and

      (b) Written authorization for the governing body to obtain any information concerning the applicant, employee or volunteer that may be available from the Statewide Central Registry for the Collection of Information Concerning the Abuse or Neglect of a Child established by NRS 432.100 and any equivalent registry maintained by a governmental entity in a jurisdiction in which the applicant or volunteer has resided within the immediately preceding 5 years.

      2.  When conducting an investigation into the background of an applicant, employee or volunteer, the governing body of a university school for profoundly gifted pupils may cooperate with any appropriate law enforcement agency to obtain information relating to the background of the applicant, employee or volunteer, including, without limitation, any record of warrants for the arrest of or applications for protective orders against the applicant, employee or volunteer.

      3.  If the [reports on the criminal history of an applicant indicate] information obtained by the governing body pursuant to subsection 1 or 2 indicates that the applicant , employee or volunteer has not been convicted of a felony or an offense involving moral turpitude, the governing body of the university school for profoundly gifted pupils may employ the applicant [.

      3.]or employee or accept the volunteer, as applicable.

      4.  If [a report on the criminal history of an applicant] the information obtained by the governing body pursuant to subsection 1 or 2 indicates that the applicant , employee or volunteer has been convicted of a felony or an offense involving moral turpitude and the governing body of the university school for profoundly gifted pupils does not disqualify the applicant or employee from [further consideration of] employment or the volunteer from serving as a volunteer on the basis of that report, the governing body shall, upon the written authorization of the applicant, employee or volunteer, forward a copy of the [report] information to the Superintendent of Public Instruction. If the applicant , employee or volunteer refuses to provide his or her written authorization to forward a copy of the report pursuant to this subsection, the university school shall not employ the applicant [.

      4.]or employee or accept the volunteer, as applicable.

      5.  The Superintendent of Public Instruction or the Superintendent’s designee shall promptly review the [report] information to determine whether the conviction of the applicant , employee or volunteer is related or unrelated to the position with the university school for profoundly gifted pupils for which the applicant has applied [. If the applicant desires employment with the university school, the] or in which the employee is employed or the volunteer wishes to serve. The applicant , employee or volunteer shall, upon the request of the Superintendent of Public Instruction or the Superintendent’s designee, provide any further information that the Superintendent or the designee determines is necessary to make the determination. If the governing body of the university school desires to employ the applicant [,] or employee or accept the volunteer, the governing body shall, upon the request of the Superintendent of Public Instruction or the Superintendent’s designee, provide any further information that the Superintendent or the designee determines is necessary to make the determination.

 


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body shall, upon the request of the Superintendent of Public Instruction or the Superintendent’s designee, provide any further information that the Superintendent or the designee determines is necessary to make the determination. The Superintendent of Public Instruction or the Superintendent’s designee shall provide written notice of the determination to the applicant , employee or volunteer and to the governing body of the university school.

      [5.]6.  If the Superintendent of Public Instruction or the Superintendent’s designee determines that the conviction of the applicant , employee or volunteer is related to the position with the university school for profoundly gifted pupils for which the applicant has applied [,] or in which the employee is employed or the volunteer wishes to serve, the governing body of the university school shall not employ the applicant [.] or employee or accept the volunteer, as applicable. If the Superintendent of Public Instruction or the Superintendent’s designee determines that the conviction of the applicant , employee or volunteer is unrelated to the position with the university school for which the applicant has applied [,] or in which the employee is employed or the volunteer wishes to serve, the governing body of the university school may employ the applicant or employee for that position [.] or accept the volunteer, as applicable.

      7.  The governing body of a university school for profoundly gifted pupils may use a substantiated report of the abuse or neglect of a child or a violation of NRS 201.540, 201.560 or 392.4633 obtained from the Statewide Central Registry or an equivalent registry maintained by a governmental agency in another jurisdiction:

      (a) When making determinations concerning assignments, requiring retraining, imposing discipline, hiring, termination or accepting a volunteer; and

      (b) In any proceedings to which the report is relevant, including, without limitation, an action for trespass or a restraining order.

      8.  The governing body of a university school for profoundly gifted pupils may accept any gifts, grants and donations to carry out the provisions of this section.

      Sec. 8.5. Chapter 391 of NRS is hereby amended by adding thereto a new section to read as follows:

      “Statewide Central Registry” means the Statewide Central Registry for the Collection of Information Concerning the Abuse or Neglect of a Child established by NRS 432.100.

      Sec. 8.6. NRS 391.002 is hereby amended to read as follows:

      391.002  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 391.005 and 391.008 and section 8.5 of this act have the meanings ascribed to them in those sections.

      Sec. 8.7. NRS 391.033 is hereby amended to read as follows:

      391.033  1.  All licenses for teachers and other educational personnel are granted by the Superintendent of Public Instruction pursuant to regulations adopted by the Commission and as otherwise provided by law.

      2.  An application for the issuance of a license must include the social security number of the applicant.

      3.  Every applicant for a license must submit with his or her application [a] :

      (a) A complete set of his or her fingerprints and written permission authorizing the Superintendent to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its initial report on the criminal history of the applicant and for reports thereafter upon renewal of the license pursuant to subsection 7 of NRS 179A.075, and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant [.]

 


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Repository for Nevada Records of Criminal History for its initial report on the criminal history of the applicant and for reports thereafter upon renewal of the license pursuant to subsection 7 of NRS 179A.075, and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant [.] ; and

      (b) Written authorization for the Superintendent to obtain any information concerning the applicant that may be available from the Statewide Central Registry and any equivalent registry maintained by a governmental entity in a jurisdiction in which the applicant has resided within the immediately preceding 5 years.

      4.  When conducting an investigation into the background of an applicant for a license, the Superintendent may cooperate with any appropriate law enforcement agency to obtain information relating to the criminal history of the applicant, including, without limitation, any record of warrants for the arrest of or applications for protective orders against the applicant.

      5.  The Superintendent may issue a provisional license pending receipt of the reports of the Federal Bureau of Investigation and the Central Repository for Nevada Records of Criminal History if the Superintendent determines that the applicant is otherwise qualified.

      [5.]6.  A license must be issued to, or renewed for, as applicable, an applicant if:

      (a) The Superintendent determines that the applicant is qualified;

      (b) The [reports on the criminal history of the applicant from the Federal Bureau of Investigation and the Central Repository for Nevada Records of Criminal History:] information obtained by the Superintendent pursuant to subsections 3 and 4:

             (1) [Do] Does not indicate that the applicant has been convicted of a felony or any offense involving moral turpitude; or

             (2) [Indicate] Indicates that the applicant has been convicted of a felony or an offense involving moral turpitude but the Superintendent determines that the conviction is unrelated to the position within the county school district or charter school for which the applicant applied or for which he or she is currently employed, as applicable; and

      (c) For initial licensure, the applicant submits the statement required pursuant to NRS 391.034.

      7.  The Superintendent shall forward all information obtained from an investigation of an applicant pursuant to subsections 3 and 4 to the board of trustees of a school district, the governing body of a charter school or the governing body of a university school for profoundly gifted pupils or the administrator of the private school where the applicant is employed or serving as a volunteer or seeking employment. The board of trustees or governing body, as applicable, may use a substantiated report of the abuse or neglect of a child or a violation of NRS 201.540, 201.560 or 392.4633 obtained from the Statewide Central Registry or an equivalent registry maintained by a governmental agency in another jurisdiction:

      (a) When making determinations concerning assignments, requiring retraining, imposing discipline, hiring or termination; and

      (b) In any proceedings to which the report is relevant, including, without limitation, an action for trespass or a restraining order.

 


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      Sec. 8.8. NRS 391.035 is hereby amended to read as follows:

      391.035  1.  Except as otherwise provided in NRS 239.0115 [,] and 391.033, an application to the Superintendent of Public Instruction for a license as a teacher or to perform other educational functions and all documents in the Department’s file relating to the application, including:

      (a) The applicant’s health records;

      (b) The applicant’s fingerprints and any report from the Federal Bureau of Investigation or the Central Repository for Nevada Records of Criminal History [;] or information from the Statewide Central Registry or any equivalent registry maintained by a governmental agency in a jurisdiction in which the applicant has resided within the immediately preceding 5 years;

      (c) Transcripts of the applicant’s records at colleges or other educational institutions;

      (d) The applicant’s scores on the examinations administered pursuant to the regulations adopted by the Commission;

      (e) Any correspondence concerning the application; and

      (f) Any other personal information,

Ê are confidential.

      2.  It is unlawful to disclose or release the information in an application or any related document except pursuant to paragraph (d) of subsection 7 of NRS 179A.075 or the applicant’s written authorization.

      3.  The Department shall, upon request, make available the applicant’s file for inspection by the applicant during regular business hours.

      Sec. 9. NRS 391.104 is hereby amended to read as follows:

      391.104  1.  Each applicant for employment pursuant to NRS 391.100 [,] or employee, except a teacher or other person licensed by the Superintendent of Public Instruction, or volunteer who is likely to have unsupervised or regular contact with pupils must, [as a condition to] before beginning his or her employment [,] or service as a volunteer and at least once every 5 years thereafter, submit to the school district [a] :

      (a) A full set of the applicant’s , employee’s or volunteer’s fingerprints and written permission authorizing the school district to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its report on the criminal history of the applicant , employee or volunteer and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant [.] , employee or volunteer; and

      (b) Written authorization for the board of trustees of the school district to obtain any information concerning the applicant, employee or volunteer that may be available from the Statewide Central Registry and any equivalent registry maintained by a governmental entity in a jurisdiction in which the applicant, employee or volunteer has resided within the immediately preceding 5 years.

      2.  When conducting an investigation into the background of an applicant, employee or volunteer, the board of trustees of a school district may cooperate with any appropriate law enforcement agency to obtain information relating to the criminal history of the applicant, employee or volunteer, including, without limitation, warrants for the arrest of or protective orders against the applicant, employee or volunteer.

      3.  The board of trustees of a school district may use a substantiated report of the abuse or neglect of a child or a violation of NRS 201.540, 201.560 or 392.4633 obtained from the Statewide Central Registry or an equivalent registry maintained by a governmental agency in another jurisdiction:

 


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201.560 or 392.4633 obtained from the Statewide Central Registry or an equivalent registry maintained by a governmental agency in another jurisdiction:

      (a) When making determinations concerning assignments, hiring or termination, requiring retraining, imposing discipline or accepting a volunteer; and

      (b) In any proceedings to which the report is relevant, including, without limitation, an action for trespass or a restraining order.

      4.  Except as otherwise provided in subsection [3,] 5, the board of trustees of a school district shall not require a licensed teacher or other person licensed by the Superintendent of Public Instruction pursuant to NRS 391.033 who has taken a leave of absence from employment authorized by the school district, including, without limitation:

      (a) Sick leave;

      (b) Sabbatical leave;

      (c) Personal leave;

      (d) Leave for attendance at a regular or special session of the Legislature of this State if the employee is a member thereof;

      (e) Maternity leave; and

      (f) Leave permitted by the Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq.,

Ê to submit a set of his or her fingerprints as a condition of return to or continued employment with the school district if the employee is in good standing when the employee began the leave.

      [3.]5.  A board of trustees of a school district may ask the Superintendent of Public Instruction to require a person licensed by the Superintendent of Public Instruction pursuant to NRS 391.033 who has taken a leave of absence from employment authorized by the school district to submit a set of his or her fingerprints as a condition of return to or continued employment with the school district if the board of trustees has probable cause to believe that the person has committed a felony or an offense involving moral turpitude during the period of his or her leave of absence.

      6.  The board of trustees of a school district may accept any gifts, grants and donations to carry out the provisions of subsections 1 and 2.

      Sec. 9.1. NRS 391.281 is hereby amended to read as follows:

      391.281  1.  Each applicant for employment or appointment pursuant to this section [,] or employee, except a teacher or other person licensed by the Superintendent of Public Instruction, must, [as a condition to] before beginning his or her employment [,] or appointment and at least once every 5 years thereafter, submit to the school district [a] :

      (a) A full set of the applicant’s or employee’s fingerprints and written permission authorizing the school district to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its report on the criminal history of the applicant or employee and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant [.] or employee.

      (b) Written authorization for the board of trustees of the school district to obtain any information concerning the applicant or employee that may be available from the Statewide Central Registry and any equivalent registry maintained by a governmental entity in a jurisdiction in which the applicant or employee has resided within the immediately preceding 5 years.

 


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      2.  When conducting an investigation into the background of an applicant or employee, the board of trustees of a school district may cooperate with any appropriate law enforcement agency to obtain information relating to the criminal history of the applicant or employee, including, without limitation, any record of warrants for the arrest of or applications for protective orders against the applicant or employee.

      3.  The board of trustees of a school district may use a substantiated report of the abuse or neglect of a child or a violation of NRS 201.540, 201.560 or 392.4633 obtained from the Statewide Central Registry or an equivalent registry maintained by a governmental agency in another jurisdiction:

      (a) When making determinations concerning assignments, requiring retraining, imposing discipline, hiring or termination; and

      (b) In any proceedings to which the report is relevant, including, without limitation, an action for trespass or a restraining order.

      4.  The board of trustees of a school district may accept any gifts, grants and donations to carry out the provisions of subsections 1 and 2.

      5.  The board of trustees of a school district may employ or appoint persons to serve as school police officers. If the board of trustees of a school district employs or appoints persons to serve as school police officers, the board of trustees shall employ a law enforcement officer to serve as the chief of school police who is supervised by the superintendent of schools of the school district. The chief of school police shall supervise each person appointed or employed by the board of trustees as a school police officer, including any school police officer that provides services to a charter school pursuant to a contract entered into with the board of trustees pursuant to NRS 388A.384. In addition, persons who provide police services pursuant to subsection [3] 6 or [4] 7 shall be deemed school police officers.

      [3.]6.  The board of trustees of a school district in a county that has a metropolitan police department created pursuant to chapter 280 of NRS may contract with the metropolitan police department for the provision and supervision of police services in the public schools within the jurisdiction of the metropolitan police department and on property therein that is owned by the school district and on property therein that is owned or occupied by a charter school if the board of trustees has entered into a contract with the charter school for the provision of school police officers pursuant to NRS 388A.384. If a contract is entered into pursuant to this subsection, the contract must make provision for the transfer of each school police officer employed by the board of trustees to the metropolitan police department. If the board of trustees of a school district contracts with a metropolitan police department pursuant to this subsection, the board of trustees shall, if applicable, cooperate with appropriate local law enforcement agencies within the school district for the provision and supervision of police services in the public schools within the school district, including, without limitation, any charter school with which the school district has entered into a contract for the provision of school police officers pursuant to NRS 388A.384, and on property owned by the school district and, if applicable, the property owned or occupied by the charter school, but outside the jurisdiction of the metropolitan police department.

      [4.]7.  The board of trustees of a school district in a county that does not have a metropolitan police department created pursuant to chapter 280 of NRS may contract with the sheriff of that county for the provision of police services in the public schools within the school district, including, without limitation, in any charter school with which the board of trustees has entered into a contract for the provision of school police officers pursuant to NRS 388A.384, and on property therein that is owned by the school district and, if applicable, the property owned or occupied by the charter school.

 


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services in the public schools within the school district, including, without limitation, in any charter school with which the board of trustees has entered into a contract for the provision of school police officers pursuant to NRS 388A.384, and on property therein that is owned by the school district and, if applicable, the property owned or occupied by the charter school.

      Sec. 9.3. Chapter 394 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Each applicant for employment with or employee at a private school, except a licensed teacher or other person licensed by the Superintendent of Public Instruction, or volunteer at a private school who is likely to have unsupervised or regular contact with pupils, must, before beginning his or her employment or service as a volunteer and at least once every 5 years thereafter, submit to the administrator of the private school:

      (a) A complete set of the applicant’s, employee’s or volunteer’s fingerprints and written permission authorizing the administrator to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its report on the criminal history of the applicant, employee or volunteer and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant, employee or volunteer; and

      (b) Written authorization for the administrator to obtain any information concerning the applicant, employee or volunteer that may be available from the Statewide Central Registry for the Collection of Information Concerning the Abuse or Neglect of a Child established by NRS 432.100 and any equivalent registry maintained by a governmental entity in a jurisdiction in which the applicant, employee or volunteer has resided within the immediately preceding 5 years.

      2.  The administrator of the private school shall:

      (a) Submit the fingerprints of the applicant, employee or volunteer to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the administrator deems necessary; and

      (b) Request any information that may be available from the Statewide Central Registry for the Collection of Information Concerning the Abuse or Neglect of a Child established by NRS 432.100 and any equivalent registry maintained by a governmental entity in a jurisdiction in which the applicant, employee or volunteer has resided within the immediately preceding 5 years.

      3.  When conducting an investigation into the criminal history of an applicant, employee or volunteer, the administrator of a private school may cooperate with any appropriate law enforcement agency to obtain information relating to the criminal history of the applicant, employee or volunteer, including, without limitation, any record of warrants for the arrest of or applications for protective orders against the applicant, employee or volunteer.

      4.  The administrator or governing body of a private school may use a substantiated report of abuse or neglect of a child or a violation of NRS 201.540, 201.560 or 392.4633 obtained from the Statewide Central Registry or an equivalent registry maintained by a governmental agency in another jurisdiction:

 


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      (a) When making determinations concerning assignments, requiring retraining, imposing discipline, hiring, accepting a volunteer or termination; and

      (b) In any proceedings to which the report is relevant, including, without limitation, an action for trespass or a restraining order.

      Sec. 9.4. NRS 394.610 is hereby amended to read as follows:

      394.610  Unless a specific penalty is otherwise provided, a person who willfully violates the provisions of NRS 394.005 to 394.550, inclusive, and section 9.3 of this act, is guilty of a gross misdemeanor. Each day’s failure to comply with the provisions of these sections is a separate offense.

      Sec. 9.6. NRS 171.1223 is hereby amended to read as follows:

      171.1223  1.  Except as otherwise provided in subsection 3, in a county whose population is 100,000 or more, a peace officer with limited jurisdiction who witnesses a category A felony being committed or attempted in the officer’s presence, or has reasonable cause for believing a person has committed or attempted to commit a category A felony in an area that is within the officer’s jurisdiction, shall immediately notify the primary law enforcement agency in the city or county, as appropriate, where the offense or attempted offense was committed.

      2.  Upon arrival of an officer from the primary law enforcement agency notified pursuant to subsection 1, a peace officer with limited jurisdiction shall immediately transfer the investigation of the offense or attempted offense to the primary law enforcement agency.

      3.  The provisions of subsection 1 do not:

      (a) Apply to an offense or attempted offense that is a misdemeanor, gross misdemeanor or felony other than a category A felony;

      (b) Apply to an officer of the Nevada Highway Patrol, a member of the police department of the Nevada System of Higher Education, an agent of the Investigation Division of the Department of Public Safety or a ranger of the Division of State Parks of the State Department of Conservation and Natural Resources;

      (c) Apply to a peace officer with limited jurisdiction if an interlocal agreement between the officer’s employer and the primary law enforcement agency in the city or county in which a category A felony was committed or attempted authorizes the peace officer with limited jurisdiction to respond to and investigate the felony without immediately notifying the primary law enforcement agency; or

      (d) Prohibit a peace officer with limited jurisdiction from:

             (1) Contacting a primary law enforcement agency for assistance with an offense that is a misdemeanor, gross misdemeanor or felony that is not a category A felony; or

             (2) Responding to a category A felony until the appropriate primary law enforcement agency arrives at the location where the felony was allegedly committed or attempted, including, without limitation, taking any appropriate action to provide assistance to a victim of the felony, to apprehend the person suspected of committing or attempting to commit the felony, to secure the location where the felony was allegedly committed or attempted and to protect the life and safety of the peace officer and any other person present at that location.

      4.  As used in this section:

 


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      (a) “Peace officer with limited jurisdiction” means:

             (1) A school police officer who is appointed or employed pursuant to subsection [2] 5 of NRS 391.281;

             (2) An airport guard or police officer who is appointed pursuant to NRS 496.130;

             (3) A person employed to provide police services for an airport authority created by a special act of the Legislature; and

             (4) A marshal or park ranger who is part of a unit of specialized law enforcement established pursuant to NRS 280.125.

      (b) “Primary law enforcement agency” means:

             (1) A police department of an incorporated city;

             (2) The sheriff’s office of a county; or

             (3) If the county is within the jurisdiction of a metropolitan police department, the metropolitan police department.

      Sec. 9.7. NRS 179A.075 is hereby amended to read as follows:

      179A.075  1.  The Central Repository for Nevada Records of Criminal History is hereby created within the General Services Division of the Department.

      2.  Each agency of criminal justice and any other agency dealing with crime or delinquency of children shall:

      (a) Collect and maintain records, reports and compilations of statistical data required by the Department; and

      (b) Submit the information collected to the Central Repository in the manner approved by the Director of the Department.

      3.  Each agency of criminal justice shall submit the information relating to records of criminal history that it creates, issues or collects, and any information in its possession relating to the DNA profile of a person from whom a biological specimen is obtained pursuant to NRS 176.09123 or 176.0913, to the Division. The information must be submitted to the Division:

      (a) Through an electronic network;

      (b) On a medium of magnetic storage; or

      (c) In the manner prescribed by the Director of the Department,

Ê within 60 days after the date of the disposition of the case. If an agency has submitted a record regarding the arrest of a person who is later determined by the agency not to be the person who committed the particular crime, the agency shall, immediately upon making that determination, so notify the Division. The Division shall delete all references in the Central Repository relating to that particular arrest.

      4.  The Division shall, in the manner prescribed by the Director of the Department:

      (a) Collect, maintain and arrange all information submitted to it relating to:

             (1) Records of criminal history; and

             (2) The DNA profile of a person from whom a biological specimen is obtained pursuant to NRS 176.09123 or 176.0913.

      (b) When practicable, use a record of the personal identifying information of a subject as the basis for any records maintained regarding him or her.

      (c) Upon request, provide the information that is contained in the Central Repository to the State Disaster Identification Team of the Division of Emergency Management of the Department.

 


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      (d) Upon request, provide, in paper or electronic form, the information that is contained in the Central Repository to a multidisciplinary team to review the death of the victim of a crime that constitutes domestic violence organized or sponsored by the Attorney General pursuant to NRS 228.495.

      5.  The Division may:

      (a) Disseminate any information which is contained in the Central Repository to any other agency of criminal justice;

      (b) Enter into cooperative agreements with repositories of the United States and other states to facilitate exchanges of information that may be disseminated pursuant to paragraph (a); and

      (c) Request of and receive from the Federal Bureau of Investigation information on the background and personal history of any person whose record of fingerprints or other biometric identifier the Central Repository submits to the Federal Bureau of Investigation and:

             (1) Who has applied to any agency of the State of Nevada or any political subdivision thereof for a license which it has the power to grant or deny;

             (2) With whom any agency of the State of Nevada or any political subdivision thereof intends to enter into a relationship of employment or a contract for personal services;

             (3) Who has applied to any agency of the State of Nevada or any political subdivision thereof to attend an academy for training peace officers approved by the Peace Officers’ Standards and Training Commission;

             (4) For whom such information is required or authorized to be obtained pursuant to NRS 62B.270, 62G.223, 62G.353, 424.031, 432A.170, 432B.198, 433B.183, 449.123 and 449.4329; or

             (5) About whom any agency of the State of Nevada or any political subdivision thereof is authorized by law to have accurate personal information for the protection of the agency or the persons within its jurisdiction.

      6.  To request and receive information from the Federal Bureau of Investigation concerning a person pursuant to subsection 5, the Central Repository must receive:

      (a) The person’s complete set of fingerprints for the purposes of:

             (1) Booking the person into a city or county jail or detention facility;

             (2) Employment;

             (3) Contractual services; or

             (4) Services related to occupational licensing;

      (b) One or more of the person’s fingerprints for the purposes of mobile identification by an agency of criminal justice; or

      (c) Any other biometric identifier of the person as it may require for the purposes of:

             (1) Arrest; or

             (2) Criminal investigation,

Ê from the agency of criminal justice or agency of the State of Nevada or any political subdivision thereof and submit the received data to the Federal Bureau of Investigation for its report.

      7.  The Central Repository shall:

      (a) Collect and maintain records, reports and compilations of statistical data submitted by any agency pursuant to subsection 2.

      (b) Tabulate and analyze all records, reports and compilations of statistical data received pursuant to this section.

 


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      (c) Disseminate to federal agencies engaged in the collection of statistical data relating to crime information which is contained in the Central Repository.

      (d) Investigate the criminal history of any person who:

             (1) Has applied to the Superintendent of Public Instruction for the issuance or renewal of a license;

             (2) Has applied to a county school district, charter school or private school for employment [;] or to serve as a volunteer; or

             (3) Is employed by or volunteers for a county school district, charter school or private school,

Ê and immediately notify the superintendent of each county school district, the governing body of each charter school and the Superintendent of Public Instruction, or the administrator of each private school, as appropriate, if the investigation of the Central Repository indicates that the person has been convicted of a violation of NRS 200.508, 201.230, 453.3385, 453.339 or 453.3395, or convicted of a felony or any offense involving moral turpitude.

      (e) Upon discovery, immediately notify the superintendent of each county school district, the governing body of each charter school or the administrator of each private school, as appropriate, by providing the superintendent, governing body or administrator with a list of all persons:

             (1) Investigated pursuant to paragraph (d); or

             (2) Employed by or volunteering for a county school district, charter school or private school whose fingerprints were sent previously to the Central Repository for investigation,

Ê who the Central Repository’s records indicate have been convicted of a violation of NRS 200.508, 201.230, 453.3385, 453.339 or 453.3395, or convicted of a felony or any offense involving moral turpitude since the Central Repository’s initial investigation. The superintendent of each county school district, the governing body of a charter school or the administrator of each private school, as applicable, shall determine whether further investigation or action by the district, charter school or private school, as applicable, is appropriate.

      (f) Investigate the criminal history of each person who submits one or more fingerprints or other biometric identifier or has such data submitted pursuant to NRS 62B.270, 62G.223, 62G.353, 424.031, 432A.170, 432B.198, 433B.183, 449.122, 449.123 or 449.4329.

      (g) On or before July 1 of each year, prepare and post on the Central Repository’s Internet website an annual report containing the statistical data relating to crime received during the preceding calendar year. Additional reports may be posted to the Central Repository’s Internet website throughout the year regarding specific areas of crime if they are approved by the Director of the Department.

      (h) On or before July 1 of each year, prepare and post on the Central Repository’s Internet website a report containing statistical data about domestic violence in this State.

      (i) Identify and review the collection and processing of statistical data relating to criminal justice and the delinquency of children by any agency identified in subsection 2 and make recommendations for any necessary changes in the manner of collecting and processing statistical data by any such agency.

      (j) Adopt regulations governing biometric identifiers and the information and data derived from biometric identifiers, including, without limitation:

 


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             (1) Their collection, use, safeguarding, handling, retention, storage, dissemination and destruction; and

             (2) The methods by which a person may request the removal of his or her biometric identifiers from the Central Repository and any other agency where his or her biometric identifiers have been stored.

      8.  The Central Repository may:

      (a) In the manner prescribed by the Director of the Department, disseminate compilations of statistical data and publish statistical reports relating to crime or the delinquency of children.

      (b) Charge a reasonable fee for any publication or special report it distributes relating to data collected pursuant to this section. The Central Repository may not collect such a fee from an agency of criminal justice, any other agency dealing with crime or the delinquency of children which is required to submit information pursuant to subsection 2 or the State Disaster Identification Team of the Division of Emergency Management of the Department. All money collected pursuant to this paragraph must be used to pay for the cost of operating the Central Repository.

      (c) In the manner prescribed by the Director of the Department, use electronic means to receive and disseminate information contained in the Central Repository that it is authorized to disseminate pursuant to the provisions of this chapter.

      9.  As used in this section:

      (a) “Biometric identifier” means a fingerprint, palm print, scar, bodily mark, tattoo, voiceprint, facial image, retina image or iris image of a person.

      (b) “Mobile identification” means the collection, storage, transmission, reception, search, access or processing of a biometric identifier using a handheld device.

      (c) “Personal identifying information” means any information designed, commonly used or capable of being used, alone or in conjunction with any other information, to identify a person, including, without limitation:

             (1) The name, driver’s license number, social security number, date of birth and photograph or computer-generated image of a person; and

             (2) A biometric identifier of a person.

      (d) “Private school” has the meaning ascribed to it in NRS 394.103.

      Sec. 9.8. NRS 288.150 is hereby amended to read as follows:

      288.150  1.  Except as otherwise provided in subsection 4 and NRS 354.6241, every local government employer shall negotiate in good faith through one or more representatives of its own choosing concerning the mandatory subjects of bargaining set forth in subsection 2 with the designated representatives of the recognized employee organization, if any, for each appropriate bargaining unit among its employees. If either party so requests, agreements reached must be reduced to writing.

      2.  The scope of mandatory bargaining is limited to:

      (a) Salary or wage rates or other forms of direct monetary compensation.

      (b) Sick leave.

      (c) Vacation leave.

      (d) Holidays.

      (e) Other paid or nonpaid leaves of absence consistent with the provisions of this chapter.

      (f) Insurance benefits.

      (g) Total hours of work required of an employee on each workday or workweek.

 


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      (h) Total number of days’ work required of an employee in a work year.

      (i) Except as otherwise provided in [subsection] subsections 6 [,] and 10, discharge and disciplinary procedures.

      (j) Recognition clause.

      (k) The method used to classify employees in the bargaining unit.

      (l) Deduction of dues for the recognized employee organization.

      (m) Protection of employees in the bargaining unit from discrimination because of participation in recognized employee organizations consistent with the provisions of this chapter.

      (n) No-strike provisions consistent with the provisions of this chapter.

      (o) Grievance and arbitration procedures for resolution of disputes relating to interpretation or application of collective bargaining agreements.

      (p) General savings clauses.

      (q) Duration of collective bargaining agreements.

      (r) Safety of the employee.

      (s) Teacher preparation time.

      (t) Materials and supplies for classrooms.

      (u) Except as otherwise provided in subsections 7 , [and] 9 [,] and 10, the policies for the transfer and reassignment of teachers.

      (v) Procedures for reduction in workforce consistent with the provisions of this chapter.

      (w) Procedures consistent with the provisions of subsection 4 for the reopening of collective bargaining agreements for additional, further, new or supplementary negotiations during periods of fiscal emergency.

      3.  Those subject matters which are not within the scope of mandatory bargaining and which are reserved to the local government employer without negotiation include:

      (a) Except as otherwise provided in paragraph (u) of subsection 2, the right to hire, direct, assign or transfer an employee, but excluding the right to assign or transfer an employee as a form of discipline.

      (b) The right to reduce in force or lay off any employee because of lack of work or lack of money, subject to paragraph (v) of subsection 2.

      (c) The right to determine:

             (1) Appropriate staffing levels and work performance standards, except for safety considerations;

             (2) The content of the workday, including without limitation workload factors, except for safety considerations;

             (3) The quality and quantity of services to be offered to the public; and

             (4) The means and methods of offering those services.

      (d) Safety of the public.

      4.  Notwithstanding the provisions of any collective bargaining agreement negotiated pursuant to this chapter, a local government employer is entitled to:

      (a) Reopen a collective bargaining agreement for additional, further, new or supplementary negotiations relating to compensation or monetary benefits during a period of fiscal emergency. Negotiations must begin not later than 21 days after the local government employer notifies the employee organization that a fiscal emergency exists. For the purposes of this section, a fiscal emergency shall be deemed to exist:

             (1) If the amount of revenue received by the general fund of the local government employer during the last preceding fiscal year from all sources, except any nonrecurring source, declined by 5 percent or more from the amount of revenue received by the general fund from all sources, except any nonrecurring source, during the next preceding fiscal year, as reflected in the reports of the annual audits conducted for those fiscal years for the local government employer pursuant to NRS 354.624; or

 


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except any nonrecurring source, declined by 5 percent or more from the amount of revenue received by the general fund from all sources, except any nonrecurring source, during the next preceding fiscal year, as reflected in the reports of the annual audits conducted for those fiscal years for the local government employer pursuant to NRS 354.624; or

             (2) If the local government employer has budgeted an unreserved ending fund balance in its general fund for the current fiscal year in an amount equal to 4 percent or less of the actual expenditures from the general fund for the last preceding fiscal year, and the local government employer has provided a written explanation of the budgeted ending fund balance to the Department of Taxation that includes the reason for the ending fund balance and the manner in which the local government employer plans to increase the ending fund balance.

      (b) Take whatever actions may be necessary to carry out its responsibilities in situations of emergency such as a riot, military action, natural disaster or civil disorder. Those actions may include the suspension of any collective bargaining agreement for the duration of the emergency.

Ê Any action taken under the provisions of this subsection must not be construed as a failure to negotiate in good faith.

      5.  The provisions of this chapter, including without limitation the provisions of this section, recognize and declare the ultimate right and responsibility of the local government employer to manage its operation in the most efficient manner consistent with the best interests of all its citizens, its taxpayers and its employees.

      6.  If the sponsor of a charter school reconstitutes the governing body of a charter school pursuant to NRS 388A.330, the new governing body may terminate the employment of any teachers or other employees of the charter school, and any provision of any agreement negotiated pursuant to this chapter that provides otherwise is unenforceable and void.

      7.  The board of trustees of a school district in which a school is designated as a turnaround school pursuant to NRS 388G.400 or the principal of such a school, as applicable, may take any action authorized pursuant to NRS 388G.400, including, without limitation:

      (a) Reassigning any member of the staff of such a school; or

      (b) If the staff member of another public school consents, reassigning that member of the staff of the other public school to such a school.

      8.  Any provision of an agreement negotiated pursuant to this chapter which differs from or conflicts in any way with the provisions of subsection 7 or imposes consequences on the board of trustees of a school district or the principal of a school for taking any action authorized pursuant to subsection 7 is unenforceable and void.

      9.  The board of trustees of a school district may reassign any member of the staff of a school that is converted to an achievement charter school pursuant to NRS 388B.200 to 388B.230, inclusive, and any provision of any agreement negotiated pursuant to this chapter which provides otherwise is unenforceable and void.

      10.  The board of trustees of a school district, governing body of a charter school or the governing body of a university school for profoundly gifted pupils may use a substantiated report of the abuse or neglect of a child or a violation of NRS 201.540, 201.560 or 392.4633 obtained from the Statewide Central Registry for the Collection of Information Concerning the Abuse or Neglect of a Child established by NRS 432.100 or an equivalent registry maintained by a governmental agency in another jurisdiction for the purposes authorized by NRS 388A.515, 388C.200, 391.033, 391.104 or 391.281, as applicable.

 


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an equivalent registry maintained by a governmental agency in another jurisdiction for the purposes authorized by NRS 388A.515, 388C.200, 391.033, 391.104 or 391.281, as applicable. Such purposes may include, without limitation, making determinations concerning the assignment, discipline or termination of an employee. Any provision of any agreement negotiated pursuant to this chapter which conflicts with the provisions of this subsection is unenforceable and void.

      11.  This section does not preclude, but this chapter does not require, the local government employer to negotiate subject matters enumerated in subsection 3 which are outside the scope of mandatory bargaining. The local government employer shall discuss subject matters outside the scope of mandatory bargaining but it is not required to negotiate those matters.

      [11.]12.  Contract provisions presently existing in signed and ratified agreements as of May 15, 1975, at 12 p.m. remain negotiable.

      [12.]13.  As used in this section, “achievement charter school” has the meaning ascribed to it in NRS 385.007.

      Sec. 9.9. NRS 289.190 is hereby amended to read as follows:

      289.190  1.  A person employed or appointed to serve as a school police officer pursuant to subsection [2] 5 of NRS 391.281 has the powers of a peace officer. A school police officer shall perform the officer’s duties in compliance with the provisions of NRS 171.1223.

      2.  A person appointed pursuant to NRS 393.0718 by the board of trustees of any school district has the powers of a peace officer to carry out the intents and purposes of NRS 393.071 to 393.0719, inclusive.

      3.  Members of every board of trustees of a school district, superintendents of schools, principals and teachers have concurrent power with peace officers for the protection of children in school and on the way to and from school, and for the enforcement of order and discipline among such children, including children who attend school within one school district but reside in an adjoining school district or adjoining state, pursuant to the provisions of chapter 392 of NRS. This subsection must not be construed so as to make it the duty of superintendents of schools, principals and teachers to supervise the conduct of children while not on the school property.

      Sec. 10. Chapter 432B of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Any person who is a party to a proceeding pursuant to this chapter may file a petition requesting the court to appoint an educational surrogate parent for a child with a known or suspected disability. The court may appoint an educational surrogate parent for a child with a known or suspected disability if a parent, as defined in 34 C.F.R. § 300.30, is:

      (a) Not identified;

      (b) Unavailable; or

      (c) Unwilling or unable to make decisions relating to the education of the child and such an appointment is in the best interest of the child.

      2.  The court may appoint a person as an educational surrogate parent if the person:

      (a) Has not caused the abuse or neglect of the child;

      (b) Does not have any interest that conflicts with the best interests of the child;

      (c) Has the knowledge and skill to adequately represent the interests of the child; and

 


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      (d) Is not an employee of a public agency involved in the education of the child. An educational surrogate parent appointed pursuant to this section shall not be deemed to be an employee of a public agency involved in the education of the child.

      3.  An educational surrogate parent shall represent the child with a known or suspected disability in all matters relating to the identification of the child, the assessment of any special educational needs of the child, the educational placement of the child and the provision of a free appropriate program of public education to the child.

      4.  A court may revoke the appointment of an educational surrogate parent if the court determines the revocation of the appointment is in the best interests of the child.

      5.  If the court does not appoint an educational surrogate parent or if the court revokes such an appointment, the selection of an educational surrogate parent must be made pursuant to applicable state and federal law.

      Sec. 11. NRS 432B.190 is hereby amended to read as follows:

      432B.190  The Division of Child and Family Services shall, in consultation with each agency which provides child welfare services, adopt:

      1.  Regulations establishing reasonable and uniform standards for:

      (a) Child welfare services provided in this State;

      (b) Programs for the prevention of abuse or neglect of a child and the achievement of the permanent placement of a child;

      (c) The development of local councils involving public and private organizations;

      (d) Reports of abuse or neglect, records of these reports and the response to these reports;

      (e) Carrying out the provisions of NRS 432B.260, including, without limitation, the qualifications of persons with whom agencies which provide child welfare services enter into agreements to provide services to children and families;

      (f) The management and assessment of reported cases of abuse or neglect;

      (g) The protection of the legal rights of parents and children;

      (h) Emergency shelter for a child;

      (i) The prevention, identification and correction of abuse or neglect of a child in residential institutions;

      (j) Developing and distributing to persons who are responsible for a child’s welfare a pamphlet that is written in language which is easy to understand, is available in English and in any other language the Division determines is appropriate based on the demographic characteristics of this State and sets forth:

             (1) Contact information regarding persons and governmental entities which provide assistance to persons who are responsible for the welfare of children, including, without limitation, persons and entities which provide assistance to persons who are being investigated for allegedly abusing or neglecting a child;

             (2) The procedures for taking a child for placement in protective custody; and

             (3) The state and federal legal rights of:

                   (I) A person who is responsible for a child’s welfare and who is the subject of an investigation of alleged abuse or neglect of a child, including, without limitation, the legal rights of such a person at the time an agency which provides child welfare services makes initial contact with the person in the course of the investigation and at the time the agency takes the child for placement in protective custody, and the legal right of such a person to be informed of any allegation of abuse or neglect of a child which is made against the person at the initial time of contact with the person by the agency; and

 


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including, without limitation, the legal rights of such a person at the time an agency which provides child welfare services makes initial contact with the person in the course of the investigation and at the time the agency takes the child for placement in protective custody, and the legal right of such a person to be informed of any allegation of abuse or neglect of a child which is made against the person at the initial time of contact with the person by the agency; and

                   (II) Persons who are parties to a proceeding held pursuant to NRS 432B.410 to 432B.590, inclusive, and section 10 of this act, during all stages of the proceeding; and

      (k) Making the necessary inquiries required pursuant to NRS 432B.397 to determine whether a child is an Indian child.

      2.  Regulations, which are applicable to any person who is authorized to place a child in protective custody without the consent of the person responsible for the child’s welfare, setting forth reasonable and uniform standards for establishing whether immediate action is necessary to protect the child from injury, abuse or neglect for the purposes of determining whether to place the child into protective custody pursuant to NRS 432B.390. Such standards must consider the potential harm to the child in remaining in his or her home, including, without limitation:

      (a) Circumstances in which a threat of harm suggests that a child is in imminent danger of serious harm.

      (b) The conditions or behaviors of the child’s family which threaten the safety of the child who is unable to protect himself or herself and who is dependent on others for protection, including, without limitation, conditions or behaviors that are beyond the control of the caregiver of the child and create an imminent threat of serious harm to the child.

Ê The Division of Child and Family Services shall ensure that the appropriate persons or entities to whom the regulations adopted pursuant to this subsection apply are provided with a copy of such regulations. As used in this subsection, “serious harm” includes the threat or evidence of serious physical injury, sexual abuse, significant pain or mental suffering, extreme fear or terror, extreme impairment or disability, death, substantial impairment or risk of substantial impairment to the child’s mental or physical health or development.

      3.  Regulations establishing procedures for:

      (a) Expeditiously locating any missing child who has been placed in the custody of an agency which provides child welfare services;

      (b) Determining the primary factors that contributed to a child who has been placed in the custody of an agency which provides child welfare services running away or otherwise being absent from foster care, and to the extent possible and appropriate, responding to those factors in current and subsequent placements; and

      (c) Determining the experiences of a child who has been placed in the custody of an agency which provides child welfare services during any period the child was missing, including, without limitation, determining whether the child may be a victim of sexual abuse or sexual exploitation.

      4.  Such other regulations as are necessary for the administration of NRS 432B.010 to 432B.606, inclusive.

      Sec. 12.  The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

 


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      Sec. 12.3.  The provisions of NRS 288.150, as amended by section 9.8 of this act:

      1.  Apply to any collective bargaining agreement entered into, extended or renewed on or after July 1, 2017, and any provision of the agreement that is in conflict with that section, as amended, is void.

      2.  Do not apply to any collective bargaining agreement entered into before July 1, 2017.

      Sec. 12.5.  1.  The Department of Education shall adopt the regulations pursuant to section 7 of this act on or before January 1, 2018.

      2.  The board of trustees of each school district or the governing body of a charter school shall enact the regulations adopted pursuant to section 7 of this act before the 2018-2019 school year.

      Sec. 13.  This act becomes effective on July 1, 2017.

________

CHAPTER 494, SB 303

Senate Bill No. 303–Senators Woodhouse, Ford, Manendo, Denis, Parks; Cancela, Harris, Ratti, Segerblom and Spearman

 

Joint Sponsors: Assemblymen Carlton; and Fumo

 

CHAPTER 494

 

[Approved: June 8, 2017]

 

AN ACT relating to education; requiring the Department of Education to generate and carry out a plan for auditing the assessments conducted to monitor the performance of pupils and schools in the public school system in this State; requiring the plan to comply with the grant application process set forth in applicable federal law; making an appropriation; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      In December 2015, the Every Student Succeeds Act took effect. (Pub. L. No. 114-95, 129 Stat. 1801) The Act: (1) revises the educational assessment standards the State must meet to receive federal funds for pupils enrolled in the public schools in this State; (2) revises the reporting requirements for the State when requesting such funds; (3) encourages the State to improve and streamline the assessment tools and examinations used to monitor the performance of pupils and schools in the public education system; and (4) authorizes the appropriation of money for federal grants to assist the State with such an audit to encourage the realignment of State assessments with the current federal requirements.

      This bill requires the Department of Education to create and carry out a plan for auditing the assessment tools and examinations used to monitor the performance of pupils and schools for kindergarten and grades 1 to 12, inclusive, in the public school system in this State. Section 1 of this bill requires the plan to: (1) include a plan to improve and streamline the assessment tools and examinations used to monitor the performance of pupils and schools in the public school system in this State; and (2) meet the prerequisites necessary for acquiring a grant from the Federal Government as set forth in the Every Student Succeeds Act. Section 1 also requires the board of trustees of each school district and the governing body of each charter school to collect and provide any information requested by the Department which the Department determines is necessary to develop and carry out the plan and the audit.

 


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      Section 2 of this bill requires the Department to submit the plan to the United States Secretary of Education to apply for a grant of money pursuant to the provisions of the Every Student Succeeds Act. (20 U.S.C. § 6362) Section 3 of this bill requires the Department to submit the plan and the results of the audit to the State Board of Education, the Legislative Committee on Education and the Interim Finance Committee not later than December 1, 2017.

      Section 3.5 of this bill makes an appropriation from the State General Fund to the Department of Education to develop and carry out the plan to audit the assessment tools and examinations required by section 1.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. 1.  The Department of Education shall develop and carry out a plan to audit the assessment tools and examinations used to monitor the performance of pupils and schools for kindergarten and grades 1 to 12, inclusive, in the public schools system in this State.

      2.  The plan must:

      (a) Include a plan to improve and streamline the assessment tools and examinations used to monitor the performance of pupils and schools for kindergarten and grades 1 to 12, inclusive, in the public school system in this State in accordance with 20 U.S.C. § 6362(e)(3)(D). Such a plan must be developed using data collected on or after December 10, 2015, and include, without limitation:

             (1) An examination of models from other states that are streamlining the assessment tools and examinations used to monitor the performance of pupils based on the requirements set forth in 20 U.S.C. §§ 6361, 6362 and 6363; and

             (2) Recommendations for improving or streamlining the assessment tools and examinations used to monitor the performance of pupils based on the audit conducted pursuant to subsection 1 and the examination conducted pursuant to subparagraph (1).

      (b) Comply with the requirements set forth in 20 U.S.C. §§ 6361, 6362 and 6363, which make available a grant for carrying out such an audit and other related activities under the Every Student Succeeds Act of 2015, Public Law No. 114-95.

      3.  The board of trustees of each school district and the governing body of each charter school shall collect and provide any information requested by the Department which it determines is necessary to develop and carry out the plan and the audit.

      Sec. 2.  Upon completion of the plan developed pursuant to section 1 of this act, the Department of Education shall submit a copy of the plan to the United States Secretary of Education and take such actions as are necessary to apply for a grant of money pursuant to 20 U.S.C. § 6362.

      Sec. 3.  Not later than December 1, 2017, the Department of Education shall submit a copy of the plan developed pursuant to section 1 of this act and the results of the audit to:

      1.  The State Board of Education;

      2.  The Legislative Committee on Education, created by NRS 218E.605; and

      3.  The Interim Finance Committee.

 


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      Sec. 3.5.  1.  There is hereby appropriated from the State General Fund to the Department of Education the sum of $100,000 to develop and carry out the plan to audit the assessment tools and examinations required by section 1 of this act.

      2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2019, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 20, 2019, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 20, 2019.

      Sec. 4.  The provisions of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

      Sec. 5.  This act becomes effective upon passage and approval.

________

CHAPTER 495, SB 355

Senate Bill No. 355–Senators Segerblom, Cannizzaro, Harris, Manendo; Farley, Goicoechea, Hammond and Hardy

 

CHAPTER 495

 

[Approved: June 8, 2017]

 

AN ACT relating to grief support; creating the Grief Support Trust Account in the State General Fund; requiring the Director of the Department of Health and Human Services to administer the Grief Support Trust Account; requiring the fee for the furnishing of a copy of a certificate of death to include 50 cents for credit to the Grief Support Trust Account; requiring the Grants Management Advisory Committee to establish a list of nonprofit community organizations eligible to receive awards of money from the Grief Support Trust Account to provide certain grief support services; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Section 2 of this bill creates the Grief Support Trust Account in the State General Fund. Section 2 requires the money in the Account to be used to support nonprofit community organizations that provide grief support services to certain children, parents and adult caregivers. Section 3 of this bill requires the Director of the Department of Health and Human Services to administer the Account.

      Existing law requires the State Registrar to charge and collect a fee for a certified copy of a record of death. (NRS 440.700) Section 5 of this bill requires such fee for a copy of a certificate of death to include 50 cents for credit to the Grief Support Trust Account.

      Existing law also requires the Grants Management Advisory Committee to adopt policies that set forth criteria to determine which nonprofit organizations to recommend for an award of money by the Director from programs administered by the Department. (NRS 232.385) Section 6 of this bill: (1) requires the Committee to establish a list of nonprofit community organizations eligible to receive awards of money from the Grief Support Trust Account; and (2) establishes certain criteria that the Committee must use to determine whether a nonprofit community organization is eligible for an award of money from the Grief Support Trust Account.

 


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the Committee must use to determine whether a nonprofit community organization is eligible for an award of money from the Grief Support Trust Account. Under section 3, the Director is required to make awards of money from the Grief Support Trust Account to eligible nonprofit community organizations immediately as money in the Account becomes available.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 439 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

      Sec. 2. 1.  The Grief Support Trust Account is hereby created in the State General Fund. The money in the Account must be used to support nonprofit community organizations that provide grief support services to children who have experienced a loss of a relative or other person who had a significant emotional relationship with the child. Such grief support services may also be provided to parents and adult caregivers who have experienced the loss of a child.

      2.  The interest and income earned on the money in the Account must be credited to the Account.

      3.  Any money remaining in the Account at the end of each fiscal year does not revert to the State General Fund but must be carried over into the next fiscal year.

      Sec. 3. 1.  The Director is responsible for administering the Grief Support Trust Account created by section 2 of this act.

      2.  The Director shall make awards of money, by contract or grant, from the Grief Support Trust Account to nonprofit community organizations which provide or will provide grief support services as described in subsection 1 of section 2 of this act and which have been included in the list of organizations eligible to receive such awards by the Grants Management Advisory Committee pursuant to paragraph (d) of subsection 1 of NRS 232.385. The Director shall make such awards of money to eligible nonprofit community organizations immediately as money becomes available in the Account. The duration of an award made pursuant to this subsection must not exceed 3 years.

      3.  The Director shall report to each regular session of the Legislature regarding the nonprofit community organizations that have been awarded money from the Grief Support Trust Account, the amount and sources of money credited to the Account, the interest and income on the money in the Account, any unexpended money in the Account and the general expenses of administering the Account.

      4.  Requests for awards of money from the Grief Support Trust Account must be reviewed at least annually by the Grants Management Advisory Committee created by NRS 232.383.

      Sec. 4. NRS 440.690 is hereby amended to read as follows:

      440.690  1.  The State Registrar shall keep a true and correct account of all fees received under this chapter.

      2.  The money collected pursuant to subsection 2 of NRS 440.700 must be remitted by the State Registrar to the State Treasurer for credit to the Children’s Trust Account created by NRS 432.131. The money collected pursuant to subsection 3 of NRS 440.700 must be remitted by the State Registrar to the State Treasurer for credit to the Review of Death of Children Account created by NRS 432B.409.

 


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Registrar to the State Treasurer for credit to the Review of Death of Children Account created by NRS 432B.409. The money collected pursuant to subsection 4 of NRS 440.700 must be remitted by the State Registrar to the State Treasurer for credit to the Grief Support Trust Account created by section 2 of this act. Any money collected pursuant to subsection [5] 6 of NRS 440.700 must be remitted by the State Registrar to the county treasurers of the various participating counties for credit to their accounts for the support of the offices of the county coroners created pursuant to NRS 259.025. Any other proceeds accruing to the State of Nevada under the provisions of this chapter may be used by the Division of Public and Behavioral Health of the Department of Health and Human Services to administer and carry out the provisions of this chapter and any regulations adopted pursuant thereto.

      Sec. 5. NRS 440.700 is hereby amended to read as follows:

      440.700  1.  Except as otherwise provided in this section, the State Registrar shall charge and collect a fee in an amount established by the State Registrar by regulation:

      (a) For searching the files for one name, if no copy is made.

      (b) For verifying a vital record.

      (c) For establishing and filing a record of paternity, other than a hospital-based paternity, and providing a certified copy of the new record.

      (d) For a certified copy of a record of birth.

      (e) For a certified copy of a record of death originating in a county in which the board of county commissioners has not created an account for the support of the office of the county coroner pursuant to NRS 259.025.

      (f) For a certified copy of a record of death originating in a county in which the board of county commissioners has created an account for the support of the office of the county coroner pursuant to NRS 259.025.

      (g) For correcting a record on file with the State Registrar and providing a certified copy of the corrected record.

      (h) For replacing a record on file with the State Registrar and providing a certified copy of the new record.

      (i) For filing a delayed certificate of birth and providing a certified copy of the certificate.

      (j) For the services of a notary public, provided by the State Registrar.

      (k) For an index of records of marriage provided on microfiche to a person other than a county clerk or a county recorder of a county of this State.

      (l) For an index of records of divorce provided on microfiche to a person other than a county clerk or a county recorder of a county in this State.

      (m) For compiling data files which require specific changes in computer programming.

      2.  The fee collected for furnishing a copy of a certificate of birth or death must include the sum of $3 for credit to the Children’s Trust Account created by NRS 432.131.

      3.  The fee collected for furnishing a copy of a certificate of death must include the sum of $1 for credit to the Review of Death of Children Account created by NRS 432B.409.

      4.  The fee collected for furnishing a copy of a certificate of death must include the sum of 50 cents for credit to the Grief Support Trust Account created by section 2 of this act.

 


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      5.  The State Registrar shall not charge a fee for furnishing a certified copy of a record of birth to:

      (a) A homeless person who submits a signed affidavit on a form prescribed by the State Registrar stating that the person is homeless.

      (b) A person who submits documentation from the Department of Corrections verifying that the person was released from prison within the immediately preceding 90 days.

      [5.]6.  The fee collected for furnishing a copy of a certificate of death originating in a county in which the board of county commissioners has created an account for the support of the office of the county coroner pursuant to NRS 259.025 must include the sum of $1 for credit to the account for the support of the office of the county coroner of the county in which the certificate originates.

      [6.]7.  Upon the request of any parent or guardian, the State Registrar shall supply, without the payment of a fee, a certificate limited to a statement as to the date of birth of any child as disclosed by the record of such birth when the certificate is necessary for admission to school or for securing employment.

      [7.]8.  The United States Bureau of the Census may obtain, without expense to the State, transcripts or certified copies of births and deaths without payment of a fee.

      Sec. 6. NRS 232.385 is hereby amended to read as follows:

      232.385  1.  The Grants Management Advisory Committee created by NRS 232.383 shall:

      [1.](a) Review all requests received by the Department for awards of money from agencies of the State or its political subdivisions and nonprofit community organizations or educational institutions which provide or will provide services to persons served by the programs administered by the Department;

      [2.](b) Submit recommendations to the Director concerning each request for an award of money that the Advisory Committee believes should be granted, including, without limitation, the name of the agency, nonprofit community organization or educational institution that submitted the request;

      [3.](c) Adopt policies setting forth criteria to determine which agencies, organizations and institutions to recommend for an award of money;

      (d) In accordance with subsection 2, establish a list of nonprofit community organizations eligible to receive awards of money from the Grief Support Trust Account created by section 2 of this act;

      [4.](e) Monitor awards of money granted by the Department to agencies of the State or its political subdivisions, and nonprofit community organizations or educational institutions which provide or will provide services to persons served by the programs administered by the Department, including, without limitation, awards of money granted pursuant to NRS 439.630;

      [5.](f) Assist the staff of the Department in determining the needs of local communities and in setting priorities for funding programs administered by the Department; and

      [6.](g) Consider funding strategies for the Department, including, without limitation, seeking ways to avoid unnecessary duplication of the services for which awards of money to agencies of the State or its political subdivisions and nonprofit community organizations or educational institutions are granted, and make recommendations concerning funding strategies to the Director.

 


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subdivisions and nonprofit community organizations or educational institutions are granted, and make recommendations concerning funding strategies to the Director.

      2.  The Grants Management Advisory Committee may include a nonprofit community organization on the list of nonprofit community organizations eligible to receive an award of money from the Grief Support Trust Account created by section 2 of this act only if the nonprofit community organization satisfies the following criteria:

      (a) The Secretary of the Treasury has recognized the nonprofit community organization as tax exempt pursuant to the provisions of section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), for at least 3 years, and the organization is organized as a nonprofit corporation pursuant to chapter 82 of NRS.

      (b) The nonprofit community organization has provided age-appropriate peer support groups for children between the ages of 3 years and 18 years for at least 2 years, and provides such peer support groups from September to May of each calendar year on a biweekly basis.

      (c) The nonprofit community organization is a member of the National Alliance for Grieving Children or its successor organization.

      (d) The nonprofit community organization must provide its grief support services free of charge.

      (e) The nonprofit community organization keep and aggregate information relating to the number of children served by the organization and the demographic information of such children, including, without limitation, a child’s age, gender, race, ethnicity, school attendance and family income.

      (f) Any other criteria set forth in the policies adopted by the Committee pursuant to paragraph (c) of subsection 1.

      Sec. 7.  The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

      Sec. 8.  This act becomes effective:

      1.  Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

      2.  On July 1, 2017, for all other purposes.

________

 

 


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CHAPTER 496, SB 361

Senate Bill No. 361–Senators Cannizzaro, Segerblom, Manendo, Ratti, Farley; Atkinson, Cancela, Denis, Ford, Parks, Spearman and Woodhouse

 

CHAPTER 496

 

[Approved: June 8, 2017]

 

AN ACT relating to domestic violence; providing under certain circumstances for hours of leave if an employee is a victim of an act which constitutes domestic violence; prohibiting the Administrator of the Employment Security Division of the Department of Employment, Training and Rehabilitation from disqualifying certain persons from receiving unemployment benefits under certain circumstances; prohibiting employers from conditioning employment in certain circumstances; revising the list of persons against whom domestic violence may be committed; revising provisions that exclude certain misdemeanor offenses related to domestic violence from provisions that limit the time of day that an arrest for a misdemeanor may be made; increasing the penalty for a battery which constitutes domestic violence in certain circumstances; providing penalties; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law sets forth certain unlawful acts which constitute domestic violence when committed against certain specified persons. (NRS 33.018) Section 1 of this bill requires an employer to provide certain hours of leave to an employee who has been employed by the employer for at least 90 days and who is a victim of an act which constitutes domestic violence, or such an employee whose family or household member is a victim of an act which constitutes domestic violence and the employee is not the alleged perpetrator. Section 1 specifically requires that such an employee is entitled to 160 hours of leave during a 12-month period. Such leave: (1) may be paid or unpaid; (2) must be used within the 12 months immediately following the date on which the act which constitutes domestic violence occurred; (3) may be used consecutively or intermittently; and (4) under certain circumstances, must be deducted from leave permitted by the Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. Section 1 authorizes an employee to use the leave for purposes related to a person who is a victim of an act which constitutes domestic violence. Section 1 additionally requires an employer to maintain a record of the use of the hours of leave for each employee for a 2-year period and to make those records available for inspection by the Labor Commissioner. Finally, section 1 requires the Labor Commissioner to prepare a bulletin setting forth the right to these benefits and requires employers to post the bulletin in the workplace.

      Section 4 of this bill prohibits the Administrator of the Employment Security Division of the Department of Employment, Training and Rehabilitation from disqualifying a person from receiving unemployment compensation benefits if: (1) the person left employment to protect himself or herself, or his or her family or household member, from an act which constitutes domestic violence; and (2) the person actively engaged in an effort to preserve employment. Section 4 also authorizes the Administrator to request evidence from the person to support a claim for benefits.

 

 


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      Section 6 of this bill requires an employer to provide reasonable accommodations which will not create an undue hardship for an employee who is a victim of an act which constitutes domestic violence or whose family or household member is a victim of an act which constitutes domestic violence.

      Section 7 of this bill prohibits an employer from conditioning the employment of an employee or prospective employee or taking certain employment actions because: (1) the employee is a victim of an act which constitutes domestic violence; (2) the employee’s family or household member is a victim of an act which constitutes domestic violence; or (3) of other circumstances related to being a victim of an act which constitutes domestic violence.

      Section 7.5 of this bill revises the list of persons against whom domestic violence may be committed to remove certain persons with whom the person is or was actually residing. Section 8.3 of this bill makes a conforming change.

      Existing law establishes the acts which constitute domestic violence, including committing a battery against a person with whom the aggressor has a certain relationship. (NRS 33.018) Under existing law, a person who is convicted of a third or subsequent offense of battery which constitutes domestic violence within 7 years is guilty of a category C felony. Additionally, if a person is convicted of a battery which constitutes domestic violence that is committed by strangulation, the person is guilty of a category C felony. (NRS 200.485) Section 9 of this bill makes it a category B felony punishable by a minimum term of imprisonment of 2 years and a maximum term of 15 years, and a fine of not less than $2,000 but not more than $5,000, to commit a battery which constitutes domestic violence if the person has previously been convicted of: (1) a felony in this State for committing battery which constitutes domestic violence; or (2) a violation of the law of any other jurisdiction that prohibits conduct that is the same or similar to a felony in this State for committing a battery which constitutes domestic violence.

      Existing law limits the time of day that an arrest for a misdemeanor may be made. Under existing law, a battery that constitutes domestic violence is excluded from such time limits and under certain circumstances such an arrest must be made. (NRS 171.136, 171.137) Section 8.7 of this bill makes conforming changes by deleting the reference to battery that constitutes domestic violence and instead providing that an arrest for battery committed upon certain persons, including a person with whom the person to be arrested is or was actually residing, may be made at any time of day if the circumstances prescribed by existing law for mandatory arrest for such an offense are met.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 608 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  An employee who has been employed by an employer for at least 90 days and who is a victim of an act which constitutes domestic violence, or whose family or household member is a victim of an act which constitutes domestic violence, and the employee is not the alleged perpetrator, is entitled to not more than 160 hours of leave in one 12-month period. Hours of leave provided pursuant to this subsection:

      (a) May be paid or unpaid by the employer;

      (b) Must be used within the 12 months immediately following the date on which the act which constitutes domestic violence occurred;

      (c) May be used consecutively or intermittently; and

      (d) If used for a reason for which leave may also be taken pursuant to the Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq., must be deducted from the amount of leave the employee is entitled to take pursuant to this section and from the amount of leave the employee is entitled to take pursuant to the Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq.

 


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be deducted from the amount of leave the employee is entitled to take pursuant to this section and from the amount of leave the employee is entitled to take pursuant to the Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq.

      2.  An employee may use the hours of leave pursuant to subsection 1 as follows:

      (a) An employee may use the hours of leave only:

             (1) For the diagnosis, care or treatment of a health condition related to an act which constitutes domestic violence committed against the employee or family or household member of the employee;

             (2) To obtain counseling or assistance related to an act which constitutes domestic violence committed against the employee or family or household member of the employee;

             (3) To participate in any court proceedings related to an act which constitutes domestic violence committed against the employee or family or household member of the employee; or

             (4) To establish a safety plan, including, without limitation, any action to increase the safety of the employee or the family or household member of the employee from a future act which constitutes domestic violence.

      (b) After taking any hours of leave upon the occurrence of the act which constitutes domestic violence, an employee shall give not less than 48 hours’ advance notice to his or her employer of the need to use additional hours of leave for any purpose listed in paragraph (a).

      3.  An employer shall not:

      (a) Deny an employee the right to use hours of leave in accordance with the conditions of this section;

      (b) Require an employee to find a replacement worker as a condition of using hours of leave; or

      (c) Retaliate against an employee for using hours of leave.

      4. The employer of an employee who takes hours of leave pursuant to this section may require the employee to provide to the employer documentation that confirms or supports the reason the employee provided for requesting leave. Such documentation may include, without limitation, a police report, a copy of an application for an order for protection, an affidavit from an organization which provides services to victims of domestic violence or documentation from a physician. Any documentation provided to an employer pursuant to this subsection is confidential and must be retained by the employer in a manner consistent with the requirements of the Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq.

      5.  The Labor Commissioner shall prepare a bulletin which clearly sets forth the right to the benefits created by this section. The Labor Commissioner shall post the bulletin on the Internet website maintained by the Office of Labor Commissioner, if any, and shall require all employers to post the bulletin in a conspicuous location in each workplace maintained by the employer. The bulletin may be included in any printed abstract posted by the employer pursuant to NRS 608.013.

      6.  An employer shall maintain a record of the hours of leave taken pursuant to this section for each employee for a 2-year period following the entry of such information in the record and, upon request, shall make those records available for inspection by the Labor Commissioner. The employer shall exclude the names of the employees from the records, unless a request for a record is for the purpose of an investigation.

 


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employer shall exclude the names of the employees from the records, unless a request for a record is for the purpose of an investigation.

      7.  The provisions of this section do not:

      (a) Limit or abridge any other rights, remedies or procedures available under the law.

      (b) Negate any other rights, remedies or procedures available to an aggrieved party.

      (c) Prohibit, preempt or discourage any contract or other agreement that provides a more generous leave benefit or paid leave benefit.

      8.  As used in this section:

      (a) “Domestic violence” has the meaning ascribed to it in NRS 33.018.

      (b) “Family or household member” means a:

             (1) Spouse;

             (2) Domestic partner;

             (3) Minor child; or

             (4) Parent or other adult person who is related within the first degree of consanguinity or affinity to the employee, or other adult person who is or was actually residing with the employee at the time of the act which constitutes domestic violence.

      Sec. 2. NRS 608.180 is hereby amended to read as follows:

      608.180  The Labor Commissioner or the representative of the Labor Commissioner shall cause the provisions of NRS 608.005 to 608.195, inclusive, and section 1 of this act to be enforced, and upon notice from the Labor Commissioner or the representative:

      1.  The district attorney of any county in which a violation of those sections has occurred;

      2.  The Deputy Labor Commissioner, as provided in NRS 607.050;

      3.  The Attorney General, as provided in NRS 607.160 or 607.220; or

      4.  The special counsel, as provided in NRS 607.065,

Ê shall prosecute the action for enforcement according to law.

      Sec. 3. NRS 608.195 is hereby amended to read as follows:

      608.195  1.  Except as otherwise provided in NRS 608.0165, any person who violates any provision of NRS 608.005 to 608.195, inclusive, and section 1 of this act, or any regulation adopted pursuant thereto, is guilty of a misdemeanor.

      2.  In addition to any other remedy or penalty, the Labor Commissioner may impose against the person an administrative penalty of not more than $5,000 for each such violation.

      Sec. 4. Chapter 612 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Administrator shall not deny any otherwise eligible person benefits if the Administrator finds that:

      (a) The person left employment to protect himself or herself, or a family or household member, from an act which constitutes domestic violence; and

      (b) The person actively engaged in an effort to preserve employment.

      2.  The Administrator may request the person to furnish evidence satisfactory to support the person’s claim for benefits.

      3.  As used in this section:

      (a) “Domestic violence” has the meaning ascribed to it in NRS 33.018.

      (b) “Family or household member” means a:

 


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             (1) Spouse;

             (2) Domestic partner;

             (3) Minor child; or

             (4) Parent or other adult person who is related within the first degree of consanguinity or affinity to the employee, or other adult person who is or was actually residing with the employee at the time of the act which constitutes domestic violence.

      Sec. 5. Chapter 613 of NRS is hereby amended by adding thereto the provisions set forth as sections 6 and 7 of this act.

      Sec. 6. 1.  An employer must make reasonable accommodations which will not create an undue hardship for an employee who is a victim of an act which constitutes domestic violence or whose family or household member is a victim of an act which constitutes domestic violence. The employer may provide such accommodations, including, without limitation, as:

      (a) A transfer or reassignment;

      (b) A modified schedule;

      (c) A new telephone number for work; or

      (d) Any other reasonable accommodations which will not create an undue hardship deemed necessary to ensure the safety of the employee, the workplace, the employer or other employees.

      2.  An employer may require an employee to provide to the employer documentation that confirms or supports the reason the employee requires the reasonable accommodations.

      3.  As used in this section:

      (a) “Domestic violence” has the meaning ascribed to it in NRS 33.018.

      (b) “Family or household member” has the meaning ascribed to it in section 4 of this act.

      Sec. 7. 1.  It is unlawful for any employer in this State to discharge, discipline, discriminate against in any manner or deny employment or promotion to, or threaten to take any such action against, an employee because:

      (a) The employee requested to use hours of leave pursuant to section 1 of this act;

      (b) The employee participated as a witness or interested party in court proceedings related to an act which constitutes domestic violence which triggered the use of leave pursuant to section 1 of this act;

      (c) The employee requested an accommodation pursuant to section 6 of this act; or

      (d) An act which constitutes domestic violence was committed against the employee in the workplace of the employee.

      2.  As used in this section, “domestic violence” has the meaning ascribed to it in NRS 33.018.

      Sec. 7.5. NRS 33.018 is hereby amended to read as follows:

      33.018  1.  Domestic violence occurs when a person commits one of the following acts against or upon the person’s spouse or former spouse, any other person to whom the person is related by blood or marriage, [any other person with whom the person is or was actually residing,] any other person with whom the person has had or is having a dating relationship, any other person with whom the person has a child in common, the minor child of any of those persons, the person’s minor child or any other person who has been appointed the custodian or legal guardian for the person’s minor child:

 


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      (a) A battery.

      (b) An assault.

      (c) Compelling the other person by force or threat of force to perform an act from which the other person has the right to refrain or to refrain from an act which the other person has the right to perform.

      (d) A sexual assault.

      (e) A knowing, purposeful or reckless course of conduct intended to harass the other person. Such conduct may include, but is not limited to:

             (1) Stalking.

             (2) Arson.

             (3) Trespassing.

             (4) Larceny.

             (5) Destruction of private property.

             (6) Carrying a concealed weapon without a permit.

             (7) Injuring or killing an animal.

      (f) A false imprisonment.

      (g) Unlawful entry of the other person’s residence, or forcible entry against the other person’s will if there is a reasonably foreseeable risk of harm to the other person from the entry.

      2.  As used in this section, “dating relationship” means frequent, intimate associations primarily characterized by the expectation of affectional or sexual involvement. The term does not include a casual relationship or an ordinary association between persons in a business or social context.

      Sec. 8. (Deleted by amendment.)

      Sec. 8.3. NRS 171.1225 is hereby amended to read as follows:

      171.1225  1.  When investigating an act of domestic violence, a peace officer shall:

      (a) Make a good faith effort to explain the provisions of NRS 171.137 pertaining to domestic violence and advise victims of all reasonable means to prevent further abuse, including advising each person of the availability of a shelter or other services in the community.

      (b) Provide a person suspected of being the victim of an act of domestic violence with a written copy of the following statements:

             (1) My name is Officer ......................... (naming the investigating officer). Nevada law requires me to inform you of the following information.

             (2) If I have probable cause to believe that a battery has been committed against you, your minor child or the minor child of the person believed to have committed the battery in the last 24 hours by your spouse, your former spouse, any other person to whom you are related by blood or marriage, [a person with whom you are or were actually residing,] a person with whom you have had or are having a dating relationship or a person with whom you have a child in common, I am required, unless mitigating circumstances exist, to arrest the person suspected of committing the battery.

             (3) If I am unable to arrest the person suspected of committing the battery, you have the right to request that the prosecutor file a criminal complaint against the person. I can provide you with information on this procedure. If convicted, the person who committed the battery may be placed on probation, ordered to see a counselor, put in jail or fined.

             (4) The law provides that you may seek a court order for the protection of you, your minor children or any animal that is owned or kept by you, by the person who committed or threatened the act of domestic violence or by the minor child of either such person against further threats or acts of domestic violence.

 


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or by the minor child of either such person against further threats or acts of domestic violence. You do not need to hire a lawyer to obtain such an order for protection.

             (5) An order for protection may require the person who committed or threatened the act of domestic violence against you to:

                   (I) Stop threatening, harassing or injuring you or your children;

                   (II) Move out of your residence;

                   (III) Stay away from your place of employment;

                   (IV) Stay away from the school attended by your children;

                   (V) Stay away from any place you or your children regularly go;

                   (VI) Avoid or limit all communication with you or your children;

                   (VII) Stop physically injuring, threatening to injure or taking possession of any animal that is owned or kept by you or your children, either directly or through an agent; and

                   (VIII) Stop physically injuring or threatening to injure any animal that is owned or kept by the person who committed or threatened the act or his or her children, either directly or through an agent.

             (6) A court may make future orders for protection which award you custody of your children and require the person who committed or threatened the act of domestic violence against you to:

                   (I) Pay the rent or mortgage due on the place in which you live;

                   (II) Pay the amount of money necessary for the support of your children;

                   (III) Pay part or all of the costs incurred by you in obtaining the order for protection; and

                   (IV) Comply with the arrangements specified for the possession and care of any animal owned or kept by you or your children or by the person who committed or threatened the act or his or her children.

             (7) To get an order for protection, go to room number ....... (state the room number of the office at the court) at the court, which is located at ......................... (state the address of the court). Ask the clerk of the court to provide you with the forms for an order of protection.

             (8) If the person who committed or threatened the act of domestic violence against you violates the terms of an order for protection, the person may be arrested and, if:

                   (I) The arresting officer determines that such a violation is accompanied by a direct or indirect threat of harm;

                   (II) The person has previously violated a temporary or extended order for protection; or

                   (III) At the time of the violation or within 2 hours after the violation, the person has a concentration of alcohol of 0.08 or more in the person’s blood or breath or an amount of a prohibited substance in the person’s blood or urine that is equal to or greater than the amount set forth in subsection 3 of NRS 484C.110,

Ê the person will not be admitted to bail sooner than 12 hours after arrest.

             (9) You may obtain emergency assistance or shelter by contacting your local program against domestic violence at ......................... (state name, address and telephone number of local program) or you may call, without charge to you, the Statewide Program Against Domestic Violence at ........................ (state toll-free telephone number of Statewide Program).

      2.  The failure of a peace officer to carry out the requirements set forth in subsection 1 is not a defense in a criminal prosecution for the commission of an act of domestic violence, nor may such an omission be considered as negligence or as causation in any civil action against the peace officer or the officer’s employer.

 


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of an act of domestic violence, nor may such an omission be considered as negligence or as causation in any civil action against the peace officer or the officer’s employer.

      3.  As used in this section:

      (a) “Act of domestic violence” means any of the following acts committed by a person against his or her spouse, former spouse, any other person to whom he or she is related by blood or marriage, [a person with whom he or she is or was actually residing,] a person with whom he or she has had or is having a dating relationship, a person with whom he or she has a child in common, the minor child of any of those persons or his or her minor child:

             (1) A battery.

             (2) An assault.

             (3) Compelling the other by force or threat of force to perform an act from which he or she has the right to refrain or to refrain from an act which he or she has the right to perform.

             (4) A sexual assault.

             (5) A knowing, purposeful or reckless course of conduct intended to harass the other. Such conduct may include, but is not limited to:

                   (I) Stalking.

                   (II) Arson.

                   (III) Trespassing.

                   (IV) Larceny.

                   (V) Destruction of private property.

                   (VI) Carrying a concealed weapon without a permit.

                   (VII) Injuring or killing an animal.

             (6) False imprisonment.

             (7) Unlawful entry of the other’s residence, or forcible entry against the other’s will if there is a reasonably foreseeable risk of harm to the other from the entry.

      (b) “Dating relationship” means frequent, intimate associations primarily characterized by the expectation of affectional or sexual involvement. The term does not include a casual relationship or an ordinary association between persons in a business or social context.

      Sec. 8.7. NRS 171.136 is hereby amended to read as follows:

      171.136  1.  If the offense charged is a felony or gross misdemeanor, the arrest may be made on any day, and at any time of day or night.

      2.  If it is a misdemeanor, the arrest cannot be made between the hours of 7 p.m. and 7 a.m., except:

      (a) Upon the direction of a magistrate, endorsed upon the warrant;

      (b) When the offense is committed in the presence of the arresting officer;

      (c) When the person is found and the arrest is made in a public place or a place that is open to the public and:

             (1) There is a warrant of arrest against the person; and

             (2) The misdemeanor is discovered because there was probable cause for the arresting officer to stop, detain or arrest the person for another alleged violation or offense;

      (d) When the offense is committed in the presence of a private person and the person makes an arrest immediately after the offense is committed;

 


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      (e) When [the offense charged is battery that constitutes domestic violence pursuant to NRS 33.018 and] the arrest is made in the manner provided in NRS 171.137;

      (f) When the offense charged is a violation of a temporary or extended order for protection against domestic violence issued pursuant to NRS 33.017 to 33.100, inclusive;

      (g) When the person is already in custody as a result of another lawful arrest; or

      (h) When the person voluntarily surrenders himself or herself in response to an outstanding warrant of arrest.

      Sec. 9. NRS 200.485 is hereby amended to read as follows:

      200.485  1.  Unless a greater penalty is provided pursuant to subsection 2 or 3 or NRS 200.481, a person convicted of a battery which constitutes domestic violence pursuant to NRS 33.018:

      (a) For the first offense within 7 years, is guilty of a misdemeanor and shall be sentenced to:

             (1) Imprisonment in the city or county jail or detention facility for not less than 2 days, but not more than 6 months; and

             (2) Perform not less than 48 hours, but not more than 120 hours, of community service.

Ê The person shall be further punished by a fine of not less than $200, but not more than $1,000. A term of imprisonment imposed pursuant to this paragraph may be served intermittently at the discretion of the judge or justice of the peace, except that each period of confinement must be not less than 4 consecutive hours and must occur at a time when the person is not required to be at his or her place of employment or on a weekend.

      (b) For the second offense within 7 years, is guilty of a misdemeanor and shall be sentenced to:

             (1) Imprisonment in the city or county jail or detention facility for not less than 10 days, but not more than 6 months; and

             (2) Perform not less than 100 hours, but not more than 200 hours, of community service.

Ê The person shall be further punished by a fine of not less than $500, but not more than $1,000.

      (c) For the third [and any subsequent] offense within 7 years, is guilty of a category C felony and shall be punished as provided in NRS 193.130.

      2.  Unless a greater penalty is provided pursuant to subsection 3 or NRS 200.481, a person convicted of a battery which constitutes domestic violence pursuant to NRS 33.018, if the battery is committed by strangulation as described in NRS 200.481, is guilty of a category C felony and shall be punished as provided in NRS 193.130 and by a fine of not more than $15,000.

      3.  Unless a greater penalty is provided pursuant to NRS 200.481, a person who has been previously convicted of:

      (a) A battery which constitutes domestic violence pursuant to NRS 33.018 that is punishable as a felony pursuant to paragraph (c) of subsection 1 or subsection 2; or

      (b) A violation of the law of any other jurisdiction that prohibits the same or similar conduct set forth in paragraph (a),

 

 


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Ê and who commits a battery which constitutes domestic violence pursuant to NRS 33.018 is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 2 years and a maximum term of not more than 15 years, and shall be further punished by a fine of not less than $2,000 but more than $5,000.

      4.  In addition to any other penalty, if a person is convicted of a battery which constitutes domestic violence pursuant to NRS 33.018, the court shall:

      (a) For the first offense within 7 years, require the person to participate in weekly counseling sessions of not less than 1 1/2 hours per week for not less than 6 months, but not more than 12 months, at his or her expense, in a program for the treatment of persons who commit domestic violence that has been certified pursuant to NRS 228.470.

      (b) For the second offense within 7 years, require the person to participate in weekly counseling sessions of not less than 1 1/2 hours per week for 12 months, at his or her expense, in a program for the treatment of persons who commit domestic violence that has been certified pursuant to NRS 228.470.

Ê If the person resides in this State but the nearest location at which counseling services are available is in another state, the court may allow the person to participate in counseling in the other state in a program for the treatment of persons who commit domestic violence that has been certified pursuant to NRS 228.470.

      [4.  An]

      5.  Except as otherwise provided in this subsection, an offense that occurred within 7 years immediately preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of this section when evidenced by a conviction, without regard to the sequence of the offenses and convictions. An offense which is listed in paragraph (a) or (b) of subsection 3 that occurred on any date preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of this section when evidenced by a conviction, without regard to the sequence of the offenses and convictions. The facts concerning a prior offense must be alleged in the complaint, indictment or information, must not be read to the jury or proved at trial but must be proved at the time of sentencing and, if the principal offense is alleged to be a felony, must also be shown at the preliminary examination or presented to the grand jury.

      [5.]6.  In addition to any other fine or penalty, the court shall order such a person to pay an administrative assessment of $35. Any money so collected must be paid by the clerk of the court to the State Controller on or before the fifth day of each month for the preceding month for credit to the Account for Programs Related to Domestic Violence established pursuant to NRS 228.460.

 

 

 

 

 

 

 


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      [6.]7.  In addition to any other penalty, the court may require such a person to participate, at his or her expense, in a program of treatment for the abuse of alcohol or drugs that has been certified by the Division of Public and Behavioral Health of the Department of Health and Human Services.

      [7.]8.  If it appears from information presented to the court that a child under the age of 18 years may need counseling as a result of the commission of a battery which constitutes domestic violence pursuant to NRS 33.018, the court may refer the child to an agency which provides child welfare services. If the court refers a child to an agency which provides child welfare services, the court shall require the person convicted of a battery which constitutes domestic violence pursuant to NRS 33.018 to reimburse the agency for the costs of any services provided, to the extent of the convicted person’s ability to pay.

      [8.]9.  If a person is charged with committing a battery which constitutes domestic violence pursuant to NRS 33.018, a prosecuting attorney shall not dismiss such a charge in exchange for a plea of guilty, guilty but mentally ill or nolo contendere to a lesser charge or for any other reason unless the prosecuting attorney knows, or it is obvious, that the charge is not supported by probable cause or cannot be proved at the time of trial. A court shall not grant probation to and, except as otherwise provided in NRS 4.373 and 5.055, a court shall not suspend the sentence of such a person.

      [9.]10.  As used in this section:

      (a) “Agency which provides child welfare services” has the meaning ascribed to it in NRS 432B.030.

      (b) “Battery” has the meaning ascribed to it in paragraph (a) of subsection 1 of NRS 200.481.

      (c) “Offense” includes a battery which constitutes domestic violence pursuant to NRS 33.018 or a violation of the law of any other jurisdiction that prohibits the same or similar conduct.

      Sec. 10. NRS 432B.640 is hereby amended to read as follows:

      432B.640  1.  Upon receiving a referral from a court pursuant to subsection [7] 8 of NRS 200.485, an agency which provides child welfare services may, as appropriate, conduct an assessment to determine whether a psychological evaluation or counseling is needed by a child.

      2.  If an agency which provides child welfare services conducts an assessment pursuant to subsection 1 and determines that a psychological evaluation or counseling would benefit the child, the agency may, with the approval of the parent or legal guardian of the child:

      (a) Conduct the evaluation or counseling; or

      (b) Refer the child to a person that has entered into an agreement with the agency to provide those services.

      Sec. 11.  This act becomes effective;

      1.  Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks necessary to carry out the provisions of this act; and

      2.  On January 1, 2018, for all other purposes.

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