Assembly Bill No. 2–Committee of the Whole

 

July 18, 2003

____________

 

Referred to Committee of the Whole

 

SUMMARY—Makes various changes concerning state financial administration. (BDR 32‑47)

 

FISCAL NOTE:                   Effect on Local Government: Yes.

                   Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to taxation; providing for the imposition and administration of a franchise tax on financial institutions for the privilege of doing business in this state; increasing the taxes on liquor and cigarettes; increasing the license fees charged for certain gaming establishments and manufacturers of interactive gaming systems; making various changes to the provisions governing the Fund to Stabilize the Operation of the State Government; changing the Disaster Relief Fund into an account in the Fund to Stabilize the Operation of the State Government; making various other changes relating to state financial administration; making technical corrections to certain previously enacted provisions; reducing the amount previously appropriated to the Interim Finance Committee for allocation to the Department of Taxation; repealing an appropriation made to the Fund to Stabilize the Operation of the State Government during a previous session; requiring the identification of state programs for the treatment of alcohol and drug abuse and state funded local programs and the development of a coordination proposal; providing penalties; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

2-1  Section 1. Title 32 of NRS is hereby amended by adding

2-2  thereto a new chapter to consist of the provisions set forth as

2-3  sections 2 to 33, inclusive, of this act.

2-4  Sec. 2.  As used in this chapter, unless the context otherwise

2-5  requires, the words and terms defined in sections 3 to 9, inclusive,

2-6  of this act have the meanings ascribed to them in those sections.

2-7  Sec. 3.  “Commission” means the Nevada Tax Commission.

2-8  Sec. 4.  “Federal taxable income” means the taxable income

2-9  of a financial institution for a taxable year, as set forth in the

2-10  federal income tax return filed by the financial institution for that

2-11  year with the Internal Revenue Service, and any other taxable

2-12  income of a financial institution for a taxable year under federal

2-13  law, regardless of whether it is actually reported.

2-14      Sec. 5.  1.  Except as otherwise provided in subsection 2,

2-15  “financial institution” means:

2-16      (a) An institution licensed, registered or otherwise authorized

2-17  to do business in this state pursuant to the provisions of chapter

2-18  604, 645B, 645E or 649 of NRS or title 55 or 56 of NRS, or a

2-19  similar institution chartered or licensed pursuant to federal law

2-20  and doing business in this state;

2-21      (b) Any other person conducting loan or credit card processing

2-22  activities in this state; and

2-23      (c) Any other bank, bank holding company, national bank,

2-24  savings association, federal savings bank, trust company, credit

2-25  union, building and loan association, investment company,

2-26  registered broker or dealer in securities or commodities, finance

2-27  company, dealer in commercial paper or other business entity

2-28  engaged in the business of lending money, providing credit,

2-29  securitizing receivables or fleet leasing, or any related business

2-30  entity, doing business in this state.

2-31      2.  The term does not include:

2-32      (a) A nonprofit organization that is recognized as exempt from

2-33  taxation pursuant to 26 U.S.C. § 501(c).

2-34      (b) A credit union organized under the provisions of chapter

2-35  678 of NRS or the Federal Credit Union Act.

2-36      Sec. 6.  “Gross revenue” means the total amount of the

2-37  money and the value of any other consideration received or

2-38  receivable by a financial institution which the financial institution

2-39  is required to report for the purposes of federal income taxation.

2-40      Sec. 7.  “Nevada taxable income” means the amount of the

2-41  federal taxable income of a financial institution, as adjusted

2-42  pursuant to section 18 of this act.

2-43      Sec. 8.  “Taxable year” means the taxable year used by the

2-44  financial institution for the purposes of federal income taxation.

3-1  Sec. 9.  “Taxpayer” means any person liable for a tax

3-2  imposed pursuant to this chapter.

3-3  Sec. 10.  The Department shall:

3-4  1.  Administer and enforce the provisions of this chapter, and

3-5  may adopt such regulations as it deems appropriate for that

3-6  purpose.

3-7  2.  Deposit all taxes, interest and penalties it receives pursuant

3-8  to this chapter in the State Treasury for credit to the State General

3-9  Fund.

3-10      Sec. 11.  1.  Each person responsible for maintaining the

3-11  records of a financial institution shall:

3-12      (a) Keep such records as may be necessary to determine the

3-13  amount of its liability pursuant to the provisions of this chapter;

3-14      (b) Preserve those records for 4 years or until any litigation or

3-15  prosecution pursuant to this chapter is finally determined,

3-16  whichever is longer; and

3-17      (c) Make the records available for inspection by the

3-18  Department upon demand at reasonable times during regular

3-19  business hours.

3-20      2.  For the purposes of this section, “record” includes any

3-21  federal income tax return filed by a financial institution with the

3-22  Internal Revenue Service.

3-23      3.  Any person who violates the provisions of subsection 1 is

3-24  guilty of a misdemeanor.

3-25      Sec. 12.  1.  To verify the accuracy of any return filed or, if

3-26  no return is filed by a financial institution, to determine the

3-27  amount required to be paid, the Department, or any person

3-28  authorized in writing by the Department, may examine the books,

3-29  papers and records of any person or financial institution that may

3-30  be liable for the tax imposed by this chapter.

3-31      2.  Any person or financial institution which may be liable for

3-32  the tax imposed by this chapter and which keeps outside of this

3-33  state its books, papers and records relating thereto shall pay to the

3-34  Department an amount equal to the allowance provided for state

3-35  officers and employees generally while traveling outside of the

3-36  State for each day or fraction thereof during which an employee

3-37  of the Department is engaged in examining those documents, plus

3-38  any other actual expenses incurred by the employee while he is

3-39  absent from his regular place of employment to examine those

3-40  documents.

3-41      Sec. 13.  The Executive Director may request from any other

3-42  governmental agency or officer such information as he deems

3-43  necessary to carry out the provisions of this chapter. If the

3-44  Executive Director obtains any confidential information pursuant

3-45  to such a request, he shall maintain the confidentiality of that

4-1  information in the same manner and to the same extent as

4-2  provided by law for the agency or officer from whom the

4-3  information was obtained.

4-4  Sec. 14.  1.  Except as otherwise provided in this section and

4-5  NRS 360.250, the records and files of the Department concerning

4-6  the administration of this chapter are confidential and privileged.

4-7  The Department, and any employee engaged in the administration

4-8  of this chapter or charged with the custody of any such records or

4-9  files, shall not disclose any information obtained from the

4-10  Department’s records or files or from any examination,

4-11  investigation or hearing authorized by the provisions of this

4-12  chapter. Neither the Department nor any employee of the

4-13  Department may be required to produce any of the records, files

4-14  and information for the inspection of any person or for use in any

4-15  action or proceeding.

4-16      2.  The records and files of the Department concerning the

4-17  administration of this chapter are not confidential and privileged

4-18  in the following cases:

4-19      (a) Testimony by a member or employee of the Department

4-20  and production of records, files and information on behalf of the

4-21  Department or a taxpayer in any action or proceeding pursuant to

4-22  the provisions of this chapter if that testimony or the records, files

4-23  or information, or the facts shown thereby, are directly involved in

4-24  the action or proceeding.

4-25      (b) Delivery to a taxpayer or his authorized representative of a

4-26  copy of any return or other document filed by the taxpayer

4-27  pursuant to this chapter.

4-28      (c) Publication of statistics so classified as to prevent the

4-29  identification of a particular financial institution or document.

4-30      (d) Exchanges of information with the Internal Revenue

4-31  Service in accordance with compacts made and provided for in

4-32  such cases.

4-33      (e) Disclosure in confidence to the Governor or his agent in

4-34  the exercise of the Governor’s general supervisory powers, or to

4-35  any person authorized to audit the accounts of the Department in

4-36  pursuance of an audit, or to the Attorney General or other legal

4-37  representative of the State in connection with an action or

4-38  proceeding pursuant to this chapter, or to any agency of this or

4-39  any other state charged with the administration or enforcement of

4-40  laws relating to taxation.

4-41      (f) Exchanges of information pursuant to subsection 3.

4-42      3.  The Commission may agree with any county fair and

4-43  recreation board or the governing body of any county, city or town

4-44  for the continuing exchange of information concerning taxpayers.

5-1  Sec. 15.  1.  A franchise tax is hereby imposed upon each

5-2  financial institution for the privilege of engaging in a business in

5-3  this state at the rate of 4 percent of the Nevada taxable income of

5-4  the financial institution each taxable year. The tax for each

5-5  taxable year is due on the last day of that taxable year.

5-6  2.  Each financial institution engaging in a business in this

5-7  state during a taxable year shall file with the Department a return

5-8  on a form prescribed by the Department, together with the

5-9  remittance of any tax due pursuant to this chapter for that taxable

5-10  year, not later than the date the financial institution is required to

5-11  file its federal income tax return for that taxable year with the

5-12  Internal Revenue Service. The return required by this subsection

5-13  must include:

5-14      (a) A statement that the return is made under penalty of

5-15  perjury; and

5-16      (b) Such information as is required by the Department.

5-17      Sec. 16. 1.  In addition to the returns required by section 15

5-18  of this act, a financial institution that is a member of an affiliated

5-19  group and is engaged in a unitary business in this state with one

5-20  or more other members of the affiliated group shall file with the

5-21  Department such reports regarding the unitary business as the

5-22  Department determines is appropriate for the administration and

5-23  enforcement of the provisions of this chapter.

5-24      2.  The Department may allow two or more financial

5-25  institutions that are members of an affiliated group to file a

5-26  consolidated return for the purposes of this chapter if the financial

5-27  institutions are allowed to file a consolidated return for the

5-28  purposes of federal income taxation.

5-29      3.  As used in this section:

5-30      (a) “Affiliated group” means a group of two or more financial

5-31  institutions, each of which is controlled by a common owner or by

5-32  one or more of the members of the group.

5-33      (b) “Controlled by” means the possession, directly or

5-34  indirectly, of the power to direct or cause the direction of the

5-35  management and policies of a financial institution, whether

5-36  through the ownership of voting securities, by contract or

5-37  otherwise.

5-38      (c) “Unitary business” means a business characterized by

5-39  unity of ownership, functional integration, centralization of

5-40  management and economy of scale.

5-41      Sec. 17.  1.  If a financial institution files an amended

5-42  federal income tax return that reflects a change in income

5-43  required to be reported pursuant to this chapter, the financial

5-44  institution shall file an amended return with the Department not

5-45  later than the date it files the amended federal return.

6-1  2.  If a final determination of federal taxable income is made

6-2  under federal law and, pursuant to that determination, the federal

6-3  taxable income of a financial institution is found to differ from

6-4  that initially reported to the Internal Revenue Service, the

6-5  financial institution shall, within 30 days after the date of that

6-6  determination, report the determination to the Department in

6-7  writing, together with such information as the Department deems

6-8  appropriate.

6-9  3.  If, based upon an amended return or report filed pursuant

6-10  to this section, it appears that the tax imposed by this chapter has

6-11  not been fully assessed, the Department shall assess the deficiency,

6-12  with interest calculated at the rate and in the manner set forth in

6-13  NRS 360.417. Any assessment required by this subsection must be

6-14  made within 1 year after the Department receives the amended

6-15  return or report.

6-16      Sec. 18. 1.  In computing the Nevada taxable income of a

6-17  financial institution, its federal taxable income must be:

6-18      (a) Increased by:

6-19          (1) The amount of any deduction for the tax imposed by

6-20  section 15 of this act or the equivalent taxing statute of another

6-21  state;

6-22          (2) The amount of any net operating loss in the taxable

6-23  year that is carried back to previous taxable years pursuant to 26

6-24  U.S.C. § 172;

6-25          (3) The amount of any deduction claimed for the taxable

6-26  year pursuant to 26 U.S.C. § 172 which was previously used to

6-27  offset any increase required by this subsection; and

6-28          (4) Any interest or dividends on the obligations or securities

6-29  of any state or political subdivision of a state, other than this state

6-30  or a political subdivision of this state; and

6-31      (b) Decreased by:

6-32          (1) Any income that is exempt from taxation by this state

6-33  under the Constitution, laws or treaties of the United States or the

6-34  Nevada Constitution;

6-35          (2) Any interest income received on obligations of the

6-36  United States; and

6-37          (3) The amount of any refund of income tax received from

6-38  another state which has been included as income in computing

6-39  federal taxable income.

6-40      2.  After making the calculations required by subsection 1, the

6-41  resulting amount must be allocated or apportioned to this state in

6-42  accordance with the regulations adopted pursuant to section 19 of

6-43  this act to determine the amount of the tax liability of the financial

6-44  institution. The Nevada taxable income of the financial institution

7-1  consists of the amount of the tax liability of the financial

7-2  institution determined pursuant to this subsection.

7-3  3.  The Department shall adopt regulations for the

7-4  administration of this section.

7-5  Sec. 19.  The Department shall adopt regulations providing

7-6  for the allocation or apportionment to this state of the tax liability

7-7  of a financial institution pursuant to this chapter. If the federal

7-8  taxable income of a financial institution is derived from business

7-9  conducted both within and outside this state, whether or not the

7-10  financial institution is physically present in another state or is

7-11  subject to another state’s jurisdiction to impose a tax on the

7-12  financial institution, the apportionment factor for determining the

7-13  tax liability of the financial institution derived from business

7-14  conducted by it in this state must consist of a fraction, the

7-15  numerator of which is the gross revenue of the financial

7-16  institution from customers whose address is within this state and

7-17  the denominator of which is the gross revenue of the financial

7-18  institution from its entire operation as a financial institution.

7-19      Sec. 20. 1.  For the purposes of this chapter, the method of

7-20  accounting and the taxable year used by a financial institution

7-21  must be the same as those used by the financial institution for the

7-22  purposes of federal income taxation. If the financial institution

7-23  does not regularly use a single method of accounting, the taxable

7-24  income of the financial institution must be computed under such a

7-25  method as the Department determines will fairly reflect that

7-26  income.

7-27      2.  If there is any change in the method of accounting or the

7-28  taxable year used by a financial institution for the purposes of

7-29  federal income taxation, the same change must be implemented

7-30  for the purposes of this chapter.

7-31      Sec. 21.  Upon written application made before the date on

7-32  which a financial institution is otherwise required to file a return

7-33  and to pay the tax imposed by this chapter, the Department may:

7-34      1.  If the financial institution is granted an extension of time

7-35  by the Federal Government for the filing of its federal income tax

7-36  return, extend the time for filing the return required by this

7-37  chapter until not later than the date the financial institution is

7-38  required to file its federal income tax return pursuant to the

7-39  extension of time granted by the Federal Government. The

7-40  Department shall require, as a condition to the granting of any

7-41  extension pursuant to this subsection, the payment of the tax

7-42  estimated to be due pursuant to this chapter.

7-43      2.  For good cause, extend by 30 days the time within which

7-44  the financial institution is required to pay the tax. If the tax is paid

7-45  during a period of extension granted pursuant to this subsection,

8-1  no penalty or late charge may be imposed for failure to pay at the

8-2  time required, but the financial institution shall pay interest at the

8-3  rate of 1 percent per month from the date on which the amount

8-4  would have been due without the extension until the date of

8-5  payment, unless otherwise provided in NRS 360.232 or 360.320.

8-6  Sec. 22. The remedies of the State provided for in this

8-7  chapter are cumulative, and no action taken by the Department or

8-8  the Attorney General constitutes an election by the State to pursue

8-9  any remedy to the exclusion of any other remedy for which

8-10  provision is made in this chapter.

8-11      Sec. 23.  If the Department determines that any tax, penalty

8-12  or interest has been paid more than once or has been erroneously

8-13  or illegally collected or computed, the Department shall set forth

8-14  that fact in the records of the Department and shall certify to the

8-15  State Board of Examiners the amount collected in excess of the

8-16  amount legally due and the financial institution or person from

8-17  which it was collected or by whom it was paid. If approved by the

8-18  State Board of Examiners, the excess amount collected or paid

8-19  must be credited on any amounts then due from the person or

8-20  financial institution under this chapter, and the balance refunded

8-21  to the person or financial institution, or its successors,

8-22  administrators or executors.

8-23      Sec. 24. 1.  Except as otherwise provided in NRS 360.235

8-24  and 360.395:

8-25      (a) No refund may be allowed unless a claim for it is filed with

8-26  the Department within 3 years after the last day of the month

8-27  immediately following the close of the taxable year for which the

8-28  overpayment was made.

8-29      (b) No credit may be allowed after the expiration of the period

8-30  specified for filing claims for refund unless a claim for credit is

8-31  filed with the Department within that period.

8-32      2.  Each claim must be in writing and must state the specific

8-33  grounds upon which the claim is founded.

8-34      3.  Failure to file a claim within the time prescribed in this

8-35  chapter constitutes a waiver of any demand against the State on

8-36  account of overpayment.

8-37      4.  Within 30 days after rejecting any claim in whole or in

8-38  part, the Department shall serve notice of its action on the

8-39  claimant in the manner prescribed for service of notice of a

8-40  deficiency determination.

8-41      Sec. 25.  1.  Except as otherwise provided in this section and

8-42  NRS 360.320, interest must be paid upon any overpayment of any

8-43  amount of the tax imposed by this chapter at the rate of 0.5

8-44  percent per month, or fraction thereof, from the last day of the

8-45  calendar month immediately following the calendar month in

9-1  which the overpayment was made. No refund or credit may be

9-2  made of any interest imposed upon the person or financial

9-3  institution making the overpayment with respect to the amount

9-4  being refunded or credited.

9-5  2.  The interest must be paid:

9-6  (a) In the case of a refund, to the last day of the calendar

9-7  month following the date upon which the person making the

9-8  overpayment, if he has not already filed a claim, is notified by

9-9  the Department that a claim may be filed or the date upon which

9-10  the claim is certified to the State Board of Examiners, whichever is

9-11  earlier.

9-12      (b) In the case of a credit, to the same date as that to which

9-13  interest is computed on the tax or the amount against which the

9-14  credit is applied.

9-15      3.  If the Department determines that any overpayment has

9-16  been made intentionally or by reason of carelessness, it shall not

9-17  allow any interest on the overpayment.

9-18      Sec. 26. 1.  No injunction, writ of mandate or other legal or

9-19  equitable process may issue in any suit, action or proceeding in

9-20  any court against this state or against any officer of the State to

9-21  prevent or enjoin the collection under this chapter of the tax

9-22  imposed by this chapter or any amount of tax, penalty or interest

9-23  required to be collected.

9-24      2.  No suit or proceeding may be maintained in any court for

9-25  the recovery of any amount alleged to have been erroneously or

9-26  illegally determined or collected unless a claim for refund or credit

9-27  has been filed.

9-28      Sec. 27.  1.  Within 90 days after a final decision upon a

9-29  claim filed pursuant to this chapter is rendered by the

9-30  Commission, the claimant may bring an action against the

9-31  Department on the grounds set forth in the claim in a court of

9-32  competent jurisdiction in Carson City, the county of this state

9-33  where the claimant resides or maintains his principal place of

9-34  business or a county in which any relevant proceedings were

9-35  conducted by the Department for the recovery of the whole or any

9-36  part of the amount with respect to which the claim has been

9-37  disallowed.

9-38      2.  Failure to bring an action within the time specified

9-39  constitutes a waiver of any demand against the State on account of

9-40  alleged overpayments.

9-41      Sec. 28. 1.  If the Department fails to mail notice of action

9-42  on a claim within 6 months after the claim is filed, the claimant

9-43  may consider the claim disallowed and may file an appeal with the

9-44  Commission within 30 days after the last day of the 6-month

9-45  period. If the claimant is aggrieved by the decision of the

10-1  Commission rendered on appeal, the claimant may, within 90 days

10-2  after the decision is rendered, bring an action against the

10-3  Department on the grounds set forth in the claim for the recovery

10-4  of the whole or any part of the amount claimed as an

10-5  overpayment.

10-6      2.  If judgment is rendered for the plaintiff, the amount of the

10-7  judgment must first be credited towards any tax due from the

10-8  plaintiff.

10-9      3.  The balance of the judgment must be refunded to the

10-10  plaintiff.

10-11     Sec. 29.  In any judgment, interest must be allowed at the rate

10-12  of 6 percent per annum upon the amount found to have been

10-13  illegally collected from the date of payment of the amount to the

10-14  date of allowance of credit on account of the judgment, or to a

10-15  date preceding the date of the refund warrant by not more than

10-16  30 days. The date must be determined by the Department.

10-17     Sec. 30. A judgment may not be rendered in favor of the

10-18  plaintiff in any action brought against the Department to recover

10-19  any amount paid when the action is brought by or in the name of

10-20  an assignee of the financial institution paying the amount or by

10-21  any person other than the person or financial institution which

10-22  paid the amount.

10-23     Sec. 31.  1.  The Department may recover a refund or any

10-24  part thereof which is erroneously made and any credit or part

10-25  thereof which is erroneously allowed in an action brought in a

10-26  court of competent jurisdiction in Carson City or Clark County in

10-27  the name of the State of Nevada.

10-28     2.  The action must be tried in Carson City or Clark County

10-29  unless the court, with the consent of the Attorney General, orders

10-30  a change of place of trial.

10-31     3.  The Attorney General shall prosecute the action, and the

10-32  provisions of NRS, the Nevada Rules of Civil Procedure and the

10-33  Nevada Rules of Appellate Procedure relating to service of

10-34  summons, pleadings, proofs, trials and appeals are applicable to

10-35  the proceedings.

10-36     Sec. 32. 1.  If any amount in excess of $25 has been

10-37  illegally determined, either by the Department or by the person

10-38  filing the return, the Department shall certify this fact to the State

10-39  Board of Examiners, and the latter shall authorize the

10-40  cancellation of the amount upon the records of the Department.

10-41     2.  If an amount not exceeding $25 has been illegally

10-42  determined, either by the Department or by the person or financial

10-43  institution filing the return, the Department, without certifying

10-44  this fact to the State Board of Examiners, shall authorize the

10-45  cancellation of the amount upon the records of the Department.

11-1      Sec. 33.  1.  A person shall not:

11-2      (a) Make, cause to be made or permit to be made any false or

11-3  fraudulent return or declaration or false statement in any return

11-4  or declaration with intent to defraud the State or to evade payment

11-5  of the tax or any part of the tax imposed by this chapter.

11-6      (b) Make, cause to be made or permit to be made any false

11-7  entry in books, records or accounts with intent to defraud the State

11-8  or to evade the payment of the tax or any part of the tax imposed

11-9  by this chapter.

11-10     (c) Keep, cause to be kept or permit to be kept more than one

11-11  set of books, records or accounts with intent to defraud the State

11-12  or to evade the payment of the tax or any part of the tax imposed

11-13  by this chapter.

11-14     2.  Any person who violates the provisions of subsection 1 is

11-15  guilty of a gross misdemeanor.

11-16     Sec. 34.  NRS 360.2935 is hereby amended to read as follows:

11-17      360.2935  Except as otherwise provided in [NRS 361.485,] this

11-18  title, a taxpayer is entitled to receive on any overpayment of taxes,

11-19  after the offset required by NRS 360.320 has been made, a refund

11-20  together with interest at a rate determined pursuant to NRS 17.130.

11-21  No interest is allowed on a refund of any penalties or interest paid

11-22  by a taxpayer.

11-23     Sec. 35.  NRS 360.300 is hereby amended to read as follows:

11-24      360.300  1.  If a person fails to file a return or the Department

11-25  is not satisfied with the return or returns of any tax, contribution or

11-26  premium or amount of tax, contribution or premium required to be

11-27  paid to the State by any person, in accordance with the applicable

11-28  provisions of this chapter, chapter 362, 364A, 369, 370, 372, 372A,

11-29  374, 377, 377A or 444A of NRS, NRS 482.313, or chapter 585 or

11-30  680B of NRS , or sections 2 to 33, inclusive, of this act, as

11-31  administered or audited by the Department, it may compute and

11-32  determine the amount required to be paid upon the basis of:

11-33     (a) The facts contained in the return;

11-34     (b) Any information within its possession or that may come into

11-35  its possession; or

11-36     (c) Reasonable estimates of the amount.

11-37     2.  One or more deficiency determinations may be made with

11-38  respect to the amount due for one or for more than one period.

11-39     3.  In making its determination of the amount required to be

11-40  paid, the Department shall impose interest on the amount of tax

11-41  determined to be due, calculated at the rate and in the manner set

11-42  forth in NRS 360.417, unless a different rate of interest is

11-43  specifically provided by statute.

12-1      4.  The Department shall impose a penalty of 10 percent in

12-2  addition to the amount of a determination that is made in the case of

12-3  the failure of a person to file a return with the Department.

12-4      5.  When a business is discontinued, a determination may be

12-5  made at any time thereafter within the time prescribed in NRS

12-6  360.355 as to liability arising out of that business, irrespective of

12-7  whether the determination is issued before the due date of the

12-8  liability.

12-9      Sec. 36.  NRS 360.417 is hereby amended to read as follows:

12-10      360.417  Except as otherwise provided in NRS 360.232 and

12-11  360.320, and unless a different penalty or rate of interest is

12-12  specifically provided by statute, any person who fails to pay any tax

12-13  provided for in chapter 362, 364A, 369, 370, 372, 374, 377, 377A,

12-14  444A or 585 of NRS, or sections 2 to 33, inclusive, of this act, or

12-15  the fee provided for in NRS 482.313, to the State or a county within

12-16  the time required, shall pay a penalty of not more than 10 percent

12-17  of the amount of the tax or fee which is owed, as determined by the

12-18  Department, in addition to the tax or fee, plus interest at the rate of 1

12-19  percent per month, or fraction of a month, from the last day of the

12-20  month following the period for which the amount or any portion of

12-21  the amount should have been reported until the date of payment.

12-22  The amount of any penalty imposed must be based on a graduated

12-23  schedule adopted by the Nevada Tax Commission which takes into

12-24  consideration the length of time the tax or fee remained unpaid.

12-25     Sec. 37.  NRS 360.419 is hereby amended to read as follows:

12-26      360.419  1.  If the Executive Director or a designated hearing

12-27  officer finds that the failure of a person to make a timely return or

12-28  payment of a tax imposed pursuant to NRS 361.320 or [chapter

12-29  361A, 376A, 377 or 377A of NRS, or by] chapter 361A, 362, 364A,

12-30  369, 370, 372, 372A, 374, 375A , [or] 375B , 376A, 377 or 377A of

12-31  NRS, or sections 2 to 33, inclusive, of this act is the result of

12-32  circumstances beyond his control and occurred despite the exercise

12-33  of ordinary care and without intent, the Department may relieve him

12-34  of all or part of any interest or penalty , or both.

12-35     2.  A person seeking this relief must file with the Department a

12-36  statement under oath setting forth the facts upon which he bases his

12-37  claim.

12-38     3.  The Department shall disclose, upon the request of any

12-39  person:

12-40     (a) The name of the person to whom relief was granted; and

12-41     (b) The amount of the relief.

12-42     4.  The Executive Director or a designated hearing officer shall

12-43  act upon the request of a taxpayer seeking relief pursuant to NRS

12-44  361.4835 which is deferred by a county treasurer or county assessor.

 

13-1      Sec. 38.  NRS 360.510 is hereby amended to read as follows:

13-2      360.510  1.  If any person is delinquent in the payment of any

13-3  tax or fee administered by the Department or if a determination has

13-4  been made against him which remains unpaid, the Department may:

13-5      (a) Not later than 3 years after the payment became delinquent

13-6  or the determination became final; or

13-7      (b) Not later than 6 years after the last recording of an abstract

13-8  of judgment or of a certificate constituting a lien for tax

13-9  owed,

13-10  give a notice of the delinquency and a demand to transmit

13-11  personally or by registered or certified mail to any person,

13-12  including, without limitation, any officer or department of this state

13-13  or any political subdivision or agency of this state, who has in his

13-14  possession or under his control any credits or other personal

13-15  property belonging to the delinquent, or owing any debts to the

13-16  delinquent or person against whom a determination has been made

13-17  which remains unpaid, or owing any debts to the delinquent or that

13-18  person. In the case of any state officer, department or agency, the

13-19  notice must be given to the officer, department or agency before

13-20  the Department presents the claim of the delinquent taxpayer to the

13-21  State Controller.

13-22     2.  A state officer, department or agency which receives such a

13-23  notice may satisfy any debt owed to it by that person before it

13-24  honors the notice of the Department.

13-25     3.  After receiving the demand to transmit, the person notified

13-26  by the demand may not transfer or otherwise dispose of the credits,

13-27  other personal property, or debts in his possession or under his

13-28  control at the time he received the notice until the Department

13-29  consents to a transfer or other disposition.

13-30     4.  Every person notified by a demand to transmit shall, within

13-31  10 days after receipt of the demand to transmit, inform the

13-32  Department of[,] and transmit to the Department all such credits,

13-33  other personal property[,] or debts in his possession, under his

13-34  control or owing by him within the time and in the manner

13-35  requested by the Department. Except as otherwise provided in

13-36  subsection 5, no further notice is required to be served to that

13-37  person.

13-38     5.  If the property of the delinquent taxpayer consists of a series

13-39  of payments owed to him, the person who owes or controls the

13-40  payments shall transmit the payments to the Department until

13-41  otherwise notified by the Department. If the debt of the delinquent

13-42  taxpayer is not paid within 1 year after the Department issued the

13-43  original demand to transmit, the Department shall issue another

13-44  demand to transmit to the person responsible for making the

13-45  payments informing him to continue to transmit payments to the

14-1  Department or that his duty to transmit the payments to the

14-2  Department has ceased.

14-3      6.  If the notice of the delinquency seeks to prevent the transfer

14-4  or other disposition of a deposit in a bank or credit union or other

14-5  credits or personal property in the possession or under the control of

14-6  a bank, credit union or other depository institution, the notice must

14-7  be delivered or mailed to any branch or office of the bank, credit

14-8  union or other depository institution at which the deposit is carried

14-9  or at which the credits or personal property is held.

14-10     7.  If any person notified by the notice of the delinquency

14-11  makes any transfer or other disposition of the property or debts

14-12  required to be withheld or transmitted, to the extent of the value of

14-13  the property or the amount of the debts thus transferred or paid, he is

14-14  liable to the State for any indebtedness due pursuant to this chapter,

14-15  or chapter 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A

14-16  of NRS, NRS 482.313, or chapter 585 or 680B of NRS , or sections

14-17  2 to 33, inclusive, of this act from the person with respect to whose

14-18  obligation the notice was given if solely by reason of the transfer or

14-19  other disposition the State is unable to recover the indebtedness of

14-20  the person with respect to whose obligation the notice was given.

14-21     Sec. 39.  NRS 369.174 is hereby amended to read as follows:

14-22      369.174  Each month, the State Controller shall transfer to the

14-23  Tax on Liquor Program Account in the State General Fund, from the

14-24  tax on liquor containing more than 22 percent of alcohol by volume,

14-25  the portion of the tax which exceeds [$1.90] $3.45 per wine gallon.

14-26     Sec. 40.  NRS 369.330 is hereby amended to read as follows:

14-27      369.330  Except as otherwise provided in this chapter, an excise

14-28  tax is hereby levied and must be collected respecting all liquor and

14-29  upon the privilege of importing, possessing, storing or selling liquor,

14-30  according to the following rates and classifications:

14-31     1.  On liquor containing more than 22 percent of alcohol by

14-32  volume, [$2.05] $3.60 per wine gallon or proportionate part thereof.

14-33     2.  On liquor containing more than 14 percent up to and

14-34  including 22 percent of alcohol by volume, [75 cents] $1.30 per

14-35  wine gallon or proportionate part thereof.

14-36     3.  On liquor containing from one-half of 1 percent up to and

14-37  including 14 percent of alcohol by volume, [40] 70 cents per wine

14-38  gallon or proportionate part thereof.

14-39     4.  On all malt beverage liquor brewed or fermented and bottled

14-40  in or outside this state, [9] 16 cents per gallon.

14-41     Sec. 41.  NRS 370.165 is hereby amended to read as follows:

14-42      370.165  There is hereby levied a tax upon the purchase or

14-43  possession of cigarettes by a consumer in the State of Nevada at the

14-44  rate of [17.5] 42.5 mills per cigarette. The tax may be represented

14-45  and precollected by the affixing of a revenue stamp or other

15-1  approved evidence of payment to each package, packet or container

15-2  in which cigarettes are sold. The tax must be precollected by the

15-3  wholesale or retail dealer, and must be recovered from the consumer

15-4  by adding the amount of the tax to the selling price. Each person

15-5  who sells cigarettes at retail shall prominently display on his

15-6  premises a notice that the tax is included in the selling price and is

15-7  payable under the provisions of this chapter.

15-8      Sec. 42.  NRS 370.260 is hereby amended to read as follows:

15-9      370.260  1.  All taxes and license fees imposed by the

15-10  provisions of NRS 370.001 to 370.430, inclusive, less any refunds

15-11  granted as provided by law, must be paid to the Department in the

15-12  form of remittances payable to the Department.

15-13     2.  The Department shall:

15-14     (a) As compensation to the State for the costs of collecting the

15-15  taxes and license fees, transmit each month the sum the Legislature

15-16  specifies from the remittances made to it pursuant to subsection 1

15-17  during the preceding month to the State Treasurer for deposit to the

15-18  credit of the Department. The deposited money must be expended

15-19  by the Department in accordance with its work program.

15-20     (b) From the remittances made to it pursuant to subsection 1

15-21  during the preceding month, less the amount transmitted pursuant to

15-22  paragraph (a), transmit each month the portion of the tax which is

15-23  equivalent to [12.5] 37.5 mills per cigarette to the State Treasurer

15-24  for deposit to the credit of the Account for the Tax on Cigarettes in

15-25  the State General Fund.

15-26     (c) Transmit the balance of the payments each month to the

15-27  State Treasurer for deposit in the Local Government Tax

15-28  Distribution Account created by NRS 360.660.

15-29     (d) Report to the State Controller monthly the amount of

15-30  collections.

15-31     3.  The money deposited pursuant to paragraph (c) of

15-32  subsection 2 in the Local Government Tax Distribution Account is

15-33  hereby appropriated to Carson City andto each of the counties in

15-34  proportion to their respective populations and must be credited to

15-35  the respective accounts of Carson City and each county.

15-36     Sec. 43.  NRS 370.350 is hereby amended to read as follows:

15-37      370.350  1.  Except as otherwise provided in subsection 3, a

15-38  tax is hereby levied and imposed upon the use of cigarettes in this

15-39  state.

15-40     2.  The amount of the use tax is [17.5] 42.5 mills per cigarette.

15-41     3.  The use tax does not apply where:

15-42     (a) Nevada cigarette revenue stamps have been affixed to

15-43  cigarette packages as required by law.

15-44     (b) Tax exemption is provided for in this chapter.

16-1      Sec. 44.  Chapter 353 of NRS is hereby amended by adding

16-2  thereto a new section to read as follows:

16-3      “Account” means the Disaster Relief Account created by NRS

16-4  353.2735.

16-5      Sec. 45.  NRS 353.2705 is hereby amended to read as follows:

16-6      353.2705  As used in NRS 353.2705 to 353.2771, inclusive,

16-7  and section 44 of this act, unless the context otherwise requires, the

16-8  words and terms defined in NRS 353.271 to 353.2731, inclusive,

16-9  and section 44 of this act have the meanings ascribed to them in

16-10  those sections.

16-11     Sec. 46.  NRS 353.2735 is hereby amended to read as follows:

16-12      353.2735  1.  The Disaster Relief [Fund] Account is hereby

16-13  created as a special [revenue fund.] account in the Fund to

16-14  Stabilize the Operation of the State Government. The Interim

16-15  Finance Committee shall administer the [Fund.] Account.

16-16     2.  The Division may accept grants, gifts or donations for

16-17  deposit in the [Fund.] Account. Except as otherwise provided in

16-18  subsection 3, money received from:

16-19     (a) A direct legislative appropriation to the [Fund;] Account;

16-20     (b) A transfer of [one-half of the interest earned on money] not

16-21  more than 10 percent of the aggregate balance in the Fund to

16-22  Stabilize the Operation of the State Government made pursuant to

16-23  NRS 353.288; and

16-24     (c) A grant, gift or donation to the [Fund,] Account,

16-25  must be deposited in the [Fund.] Account. Except as otherwise

16-26  provided in NRS 414.135, the interest and income earned on the

16-27  money in the [Fund] Account must, after deducting any applicable

16-28  charges, be credited to the [Fund.] Account.

16-29     3.  If, at the end of each quarter of a fiscal year, the balance in

16-30  the [Fund] Account exceeds 0.75 percent of the total amount of all

16-31  appropriations from the State General Fund for the operation of all

16-32  departments, institutions and agencies of State Government and

16-33  authorized expenditures from the State General Fund for the

16-34  regulation of gaming for that fiscal year, the State Controller shall

16-35  not, until the balance in the [Fund] Account is 0.75 percent or less

16-36  of that amount, transfer any [interest earned on] money in the Fund

16-37  to Stabilize the Operation of the State Government from the State

16-38  General Fund to the [Fund] Account pursuant to the provisions of

16-39  NRS 353.288.

16-40     4.  Money in the [Fund] Account may be distributed through

16-41  grants and loans to state agencies and local governments as provided

16-42  in NRS 353.2705 to 353.2771, inclusive[.] , and section 44 of this

16-43  act. Except as otherwise provided in NRS 353.276, such grants will

16-44  be disbursed on the basis of reimbursement of costs authorized

16-45  pursuant to NRS 353.274 and 353.2745.

17-1      5.  If the Governor declares a disaster, the State Board of

17-2  Examiners shall estimate:

17-3      (a) The money in the [Fund] Account that is available for grants

17-4  and loans for the disaster pursuant to the provisions of NRS

17-5  353.2705 to 353.2771, inclusive [;] , and section 44 of this act; and

17-6      (b) The anticipated amount of those grants and loans for the

17-7  disaster.

17-8  Except as otherwise provided in this subsection, if the anticipated

17-9  amount determined pursuant to paragraph (b) exceeds the available

17-10  money in the [Fund] Account for such grants and loans, all grants

17-11  and loans from the [Fund] Account for the disaster must be reduced

17-12  in the same proportion that the anticipated amount of the grants and

17-13  loans exceeds the money in the [Fund] Account that is available for

17-14  grants and loans for the disaster. If the reduction of a grant or loan

17-15  from the [Fund] Account would result in a reduction in the amount

17-16  of money that may be received by a state agency or local

17-17  government from the Federal Government, the reduction in the grant

17-18  or loan must not be made.

17-19     Sec. 47.  NRS 353.274 is hereby amended to read as follows:

17-20      353.274  Money in the [Fund] Account may be distributed as a

17-21  grant to a state agency because of a disaster for the payment of

17-22  expenses incurred by the state agency for:

17-23     1.  The repair or replacement of public roads, public streets,

17-24  bridges, water control facilities, public buildings, public utilities,

17-25  recreational facilities and parks owned by the State and damaged by

17-26  the disaster;

17-27     2.  Any emergency measures undertaken to save lives, protect

17-28  public health and safety or protect public property, including,

17-29  without limitation, an emergency measure undertaken in response to

17-30  a crisis involving violence on school property, at a school activity or

17-31  on a school bus, in the jurisdiction in which the disaster occurred;

17-32     3.  The removal of debris from publicly or privately owned land

17-33  and waterways undertaken because of the disaster; and

17-34     4.  The administration of a disaster assistance program.

17-35     Sec. 48.  NRS 353.2745 is hereby amended to read as follows:

17-36      353.2745  Money in the [Fund] Account may be distributed as

17-37  a grant to a local government because of a disaster for:

17-38     1.  The payment of not more than 50 percent of the expenses

17-39  incurred by the local government for:

17-40     (a) The repair or replacement of public roads, public streets,

17-41  bridges, water control facilities, public buildings, public utilities,

17-42  recreational facilities and parks owned by the local government and

17-43  damaged by the disaster; and

17-44     (b) Any emergency measures undertaken to save lives, protect

17-45  public health and safety or protect public property, including,

18-1  without limitation, an emergency measure undertaken in response to

18-2  a crisis involving violence on school property, at a school activity or

18-3  on a school bus, in the jurisdiction in which the disaster occurred;

18-4  and

18-5      2.  The payment of not more than 50 percent of any grant match

18-6  the local government must provide to obtain a grant from a federal

18-7  disaster assistance agency for an eligible project to repair damage

18-8  caused by the disaster within the jurisdiction of the local

18-9  government.

18-10     Sec. 49.  NRS 353.2751 is hereby amended to read as follows:

18-11      353.2751  Money in the [Fund] Account may be distributed as

18-12  a loan to a local government because of a disaster for:

18-13     1.  The payment of expenses incurred by the local government

18-14  for:

18-15     (a) The repair or replacement of public roads, public streets,

18-16  bridges, water control facilities, public buildings, public utilities,

18-17  recreational facilities and parks owned by the local government and

18-18  damaged by the disaster;

18-19     (b) Any overtime worked by an employee of the local

18-20  government because of the disaster or any other extraordinary

18-21  expenses incurred by the local government because of the disaster;

18-22  and

18-23     (c) Any projects to reduce or prevent the possibility of damage

18-24  to persons or property from similar disasters in the future; and

18-25     2.  The payment of not more than 50 percent of any grant match

18-26  the local government must provide to obtain a grant from a federal

18-27  disaster assistance agency for an eligible project to repair damage

18-28  caused by the disaster within the jurisdiction of the local

18-29  government. Before a loan may be distributed to a local government

18-30  pursuant to this subsection:

18-31     (a) The Interim Finance Committee must make a determination

18-32  that the local government is currently unable to meet its financial

18-33  obligations; and

18-34     (b) The local government must execute a loan agreement in

18-35  which the local government agrees to:

18-36         (1) Use the money only for the purpose of paying the grant

18-37  match; and

18-38         (2) Repay the entire amount of the loan, without any interest

18-39  or other charges, to the [Disaster Relief Fund] Account not later

18-40  than 10 years after the date on which the agreement is executed.

18-41     Sec. 50.  NRS 353.2753 is hereby amended to read as follows:

18-42      353.2753  1.  A state agency or local government may request

18-43  the Division to conduct a preliminary assessment of the damages

18-44  related to an event for which the state agency or local government

18-45  seeks a grant or loan from the [Fund.] Account.

19-1      2.  Upon receipt of such a request, the Division shall investigate

19-2  the event or cause the event to be investigated to make a preliminary

19-3  assessment of the damages related to the event and shall make or

19-4  cause to be made a written report of the damages related to the

19-5  event.

19-6      3.  As soon as practicable after completion of the investigation

19-7  and preparation of the report of damages, the Division shall:

19-8      (a) Determine whether the event constitutes a disaster for which

19-9  the state agency or local government may seek a grant or loan from

19-10  the [Fund;] Account; and

19-11     (b) Submit the report prepared pursuant to this section and its

19-12  written determination regarding whether the event constitutes a

19-13  disaster to the state agency or local government.

19-14     4.  The Division shall prescribe by regulation the information

19-15  that must be included in a report of damages, including, without

19-16  limitation, a description of the damage caused by the event, an

19-17  estimate of the costs to repair such damage and a specification of

19-18  whether the purpose of the project is for repair or replacement,

19-19  emergency response or mitigation.

19-20     Sec. 51.  NRS 353.2754 is hereby amended to read as follows:

19-21      353.2754  A local government may request a grant or loan from

19-22  the [Fund] Account if:

19-23     1.  Pursuant to NRS 414.090, the governing body of the local

19-24  government determines that an event which has occurred constitutes

19-25  a disaster; and

19-26     2.  After the Division conducts a preliminary assessment of the

19-27  damages pursuant to NRS 353.2753, the Division determines that an

19-28  event has occurred that constitutes a disaster.

19-29     Sec. 52.  NRS 353.2755 is hereby amended to read as follows:

19-30      353.2755  1.  A state agency or local government may submit

19-31  a request to the State Board of Examiners for a grant or loan from

19-32  the [Fund] Account as provided in NRS 353.2705 to 353.2771,

19-33  inclusive, and section 44 of this act if:

19-34     (a) The agency or local government finds that, because of a

19-35  disaster, it is unable to pay for an expense or grant match specified

19-36  in NRS 353.274, 353.2745 or 353.2751 from money appropriated or

19-37  otherwise available to the agency or local government;

19-38     (b) The request has been approved by the chief administrative

19-39  officer of the state agency or the governing body of the local

19-40  government; and

19-41     (c) If the requester is an incorporated city, the city has requested

19-42  financial assistance from the county and was denied all or a portion

19-43  of the requested assistance.

20-1      2.  A request for a grant or loan submitted pursuant to

20-2  subsection 1 must be made within 60 days after the disaster and

20-3  must include:

20-4      (a) A statement setting forth the amount of money requested by

20-5  the state agency or local government;

20-6      (b) An assessment of the need of the state agency or local

20-7  government for the money requested;

20-8      (c) If the request is submitted by a local government that has

20-9  established a fund pursuant to NRS 354.6115 to mitigate the effects

20-10  of a natural disaster, a statement of the amount of money that is

20-11  available in that fund, if any, for the payment of expenses incurred

20-12  by the local government as a result of a disaster;

20-13     (d) A determination of the type, value and amount of resources

20-14  the state agency or local government may be required to provide as

20-15  a condition for the receipt of a grant or loan from the [Fund;]

20-16  Account;

20-17     (e) A written report of damages prepared by the Division and the

20-18  written determination made by the Division that the event

20-19  constitutes a disaster pursuant to NRS 353.2753; and

20-20     (f) If the requester is an incorporated city, all documents which

20-21  relate to a request for assistance submitted to the board of county

20-22  commissioners of the county in which the city is located.

20-23  Any additional documentation relating to the request that is

20-24  requested by the State Board of Examiners must be submitted within

20-25  6 months after the disaster unless the State Board of Examiners and

20-26  the Interim Finance Committee [grants] grant an extension.

20-27     3.  Upon the receipt of a complete request for a grant or loan

20-28  submitted pursuant to subsection 1, the State Board of Examiners:

20-29     (a) Shall consider the request; and

20-30     (b) May require any additional information that it determines is

20-31  necessary to make a recommendation.

20-32     4.  If the State Board of Examiners finds that a grant or loan is

20-33  appropriate, it shall include in its recommendation to the Interim

20-34  Finance Committee the proposed amount of the grant or loan. If the

20-35  State Board of Examiners recommends a grant, it shall include a

20-36  recommendation regarding whether or not the state agency or local

20-37  government requires an advance to avoid severe financial hardship.

20-38  If the State Board of Examiners recommends a loan for a local

20-39  government, it shall include the information required pursuant to

20-40  subsection 1 of NRS 353.2765. If the State Board of Examiners

20-41  finds that a grant or loan is not appropriate, it shall include in its

20-42  recommendation the reason for its determination.

20-43     5.  The provisions of this section do not prohibit a state agency

20-44  or local government from submitting more than one request for a

20-45  grant or loan from the [Fund.] Account.

21-1      6.  As used in this section, the term “natural disaster” has the

21-2  meaning ascribed to it in NRS 354.6115.

21-3      Sec. 53.  NRS 353.276 is hereby amended to read as follows:

21-4      353.276  1.  The State Board of Examiners shall submit a

21-5  recommendation for each request for a grant or loan made pursuant

21-6  to NRS 353.2755 to the Director of the Legislative Counsel Bureau.

21-7  Upon receipt of the recommendation, the Director shall notify the

21-8  Chairman of the Interim Finance Committee of that

21-9  recommendation. The Chairman shall call a meeting of the

21-10  Committee to consider the recommendation.

21-11     2.  The Interim Finance Committee may reject any

21-12  recommendation of the State Board of Examiners and independently

21-13  evaluate and act upon any request submitted pursuant to

21-14  NRS 353.2755.

21-15     3.  If the Interim Finance Committee finds that a grant or loan

21-16  from the [Fund] Account is appropriate and may be made in

21-17  accordance with the provisions of NRS 353.2705 to 353.2771,

21-18  inclusive, and section 44 of this act, it shall, by resolution:

21-19     (a) Establish the amount and purpose of the grant or loan.

21-20     (b) Except as otherwise provided in this paragraph, provide for

21-21  the transfer of that amount from the [Fund] Account to the

21-22  appropriate state agency or local government. If the request is for a

21-23  grant, the Interim Finance Committee shall authorize disbursement

21-24  of the grant from the [Fund] Account on the basis of reimbursement

21-25  for costs unless it determines that disbursement in that manner

21-26  would cause severe financial hardship to the state agency or local

21-27  government. If the Interim Finance Committee determines that

21-28  disbursement on the basis of reimbursement of costs would cause

21-29  severe financial hardship, the Interim Finance Committee may

21-30  authorize an advance of money to the state agency or local

21-31  government in an amount not to exceed 25 percent of the total

21-32  estimated cost of the projects for which the grant is requested.

21-33     4.  No grant or loan from the [Fund] Account may be made by

21-34  the Interim Finance Committee to increase the salaries of any

21-35  officers or employees of the State or a local government.

21-36     Sec. 54.  NRS 353.2765 is hereby amended to read as follows:

21-37      353.2765  1.  In addition to any applicable requirements set

21-38  forth in NRS 353.2751, if the Interim Finance Committee approves

21-39  a loan to a local government pursuant to the provisions of NRS

21-40  353.2705 to 353.2771, inclusive, and section 44 of this act, the

21-41  approval must include a schedule for the repayment of the loan. The

21-42  schedule must specify:

21-43     (a) A period of not more than 10 years for the repayment of the

21-44  loan; and

21-45     (b) The rate of interest, if any, for the loan.

22-1      2.  Except as otherwise provided in subsection 3, if a local

22-2  government receives a loan from the [Fund] Account and, before the

22-3  loan is repaid, the local government receives money from the

22-4  Federal Government for a grant match or any of the expenses set

22-5  forth in subsection 1 of NRS 353.2751 for which the local

22-6  government received the loan, the local government shall deposit

22-7  with the State Treasurer for credit to the [Fund] Account an amount

22-8  of money equal to the money it received from the Federal

22-9  Government for the grant match or the expenses.

22-10     3.  Any money deposited with the State Treasurer for credit to

22-11  the [Fund] Account pursuant to subsection 2 must be used to pay the

22-12  unpaid balance of the loan specified in subsection 2. If any money

22-13  remains after that payment is made, the remaining money must be

22-14  paid to the local government to whom the loan was made.

22-15     Sec. 55.  NRS 353.2771 is hereby amended to read as follows:

22-16      353.2771  1.  Except as otherwise provided in this section, no

22-17  grant or loan may be made from the [Fund] Account to a state

22-18  agency or local government unless, as a condition of making the

22-19  grant or loan, the state agency or local government agrees to provide

22-20  an amount of its resources equal to at least 25 percent of the grant or

22-21  loan. The State Board of Examiners shall determine the type, value

22-22  and amount of the resources, including money, labor, materials,

22-23  supplies and equipment, that is required to be provided by the state

22-24  agency or local government.

22-25     2.  If a state agency or local government submits a request for a

22-26  grant or loan pursuant to NRS 353.2755 and:

22-27     (a) It maintains a policy of insurance providing coverage for

22-28  damages, injuries or other losses incurred because of a disaster; or

22-29     (b) If the request is submitted by a local government, it has

22-30  established a district for the control of floods pursuant to NRS

22-31  543.170 to 543.830, inclusive,

22-32  the State Board of Examiners may recommend that the state agency

22-33  or local government provide a portion of its resources in an amount

22-34  that is less than the amount required pursuant to subsection 1.

22-35     3.  The State Board of Examiners may, if it determines that the

22-36  state agency or local government is unable to provide any portion of

22-37  its resources as its contribution for the receipt of a grant or loan,

22-38  recommend that the state agency or local government not be

22-39  required to provide any portion of its resources as a condition for the

22-40  receipt of the grant or loan.

22-41     Sec. 56.  NRS 353.288 is hereby amended to read as follows:

22-42      353.288  1.  The Fund to Stabilize the Operation of the State

22-43  Government is hereby created as a special revenue fund. Except as

22-44  otherwise provided in subsections 2 and 3, each year after the close

22-45  of the fiscal year and before the issuance of the State Controller’s

23-1  annual report , the State Controller shall deposit to the credit of the

23-2  Fund 40 percent of the unrestricted balance of the State General

23-3  Fund, as of the close of the fiscal year, which remains after

23-4  subtracting an amount equal to [10] 5 percent of all appropriations

23-5  made from the State General Fund during that year for the operation

23-6  of all departments, institutions and agencies of State Government

23-7  and for the funding of schools.

23-8      2.  The balance in the Fund must not exceed [10] 15 percent of

23-9  the total of all appropriations from the State General Fund for the

23-10  operation of all departments, institutions and agencies of the State

23-11  Government and for the funding of schools and authorized

23-12  expenditures from the State General Fund for the regulation of

23-13  gaming for the fiscal year in which that revenue will be deposited in

23-14  the Fund.

23-15     3.  Except as otherwise provided in this subsection and NRS

23-16  353.2735, beginning with the fiscal year that begins on July 1,

23-17  [1999,] 2003, the State Controller shall, at the end of each quarter of

23-18  a fiscal year, transfer from the State General Fund to the Disaster

23-19  Relief [Fund] Account created pursuant to NRS 353.2735 an

23-20  amount equal to [one-half of the interest earned on money] not more

23-21  than 10 percent of the aggregate balance in the Fund to Stabilize

23-22  the Operation of the State Government during the previous quarter.

23-23  The State Controller shall not transfer more than $500,000 for any

23-24  quarter pursuant to this subsection.

23-25     4.  Money from the Fund to Stabilize the Operation of the State

23-26  Government may be appropriated only:

23-27     (a) If the total actual revenue of the State falls short by 5 percent

23-28  or more of the total anticipated revenue for the biennium in which

23-29  the appropriation is made; or

23-30     (b) If the Legislature and the Governor declare that a fiscal

23-31  emergency exists.

23-32     Sec. 57.  NRS 414.135 is hereby amended to read as follows:

23-33      414.135  1.  There is hereby created the Emergency Assistance

23-34  [Account] Subaccount within the Disaster Relief [Fund] Account

23-35  created pursuant to NRS 353.2735. Beginning with the fiscal year

23-36  that begins on July 1, 1999, the State Controller shall, at the end of

23-37  each fiscal year, transfer the interest earned during the previous

23-38  fiscal year on the money in the Disaster Relief [Fund] Account to

23-39  the [Account] Subaccount in an amount not to exceed $500,000.

23-40     2.  The Division of Emergency Management of the Department

23-41  of Public Safety shall administer the [Account.] Subaccount. The

23-42  Division may adopt regulations authorized by this section before, on

23-43  or after July 1, 1999.

23-44     3.  All expenditures from the [Account] Subaccount must be

23-45  approved in advance by the Division. Except as otherwise provided

24-1  in subsection 4, all money in the [Account] Subaccount must be

24-2  expended solely to:

24-3      (a) Provide supplemental emergency assistance to this state or to

24-4  local governments in this state that are severely and adversely

24-5  affected by a natural, technological or man-made emergency or

24-6  disaster for which available resources of this state or the local

24-7  government are inadequate to provide a satisfactory remedy; and

24-8      (b) Pay any actual expenses incurred by the Division for

24-9  administration during a natural, technological or man-made

24-10  emergency or disaster.

24-11     4.  Beginning with the fiscal year that begins on July 1, 1999, if

24-12  any balance remains in the [Account] Subaccount at the end of a

24-13  fiscal year and the balance has not otherwise been committed for

24-14  expenditure, the Division may, with the approval of the Interim

24-15  Finance Committee, allocate all or any portion of the remaining

24-16  balance, not to exceed $250,000, to this state or to a local

24-17  government to:

24-18     (a) Purchase equipment or supplies required for emergency

24-19  management;

24-20     (b) Provide training to personnel related to emergency

24-21  management; and

24-22     (c) Carry out the provisions of NRS 392.600 to 392.656,

24-23  inclusive.

24-24     5.  Beginning with the fiscal year that begins on July 1, 1999,

24-25  the Division shall, at the end of each quarter of a fiscal year, submit

24-26  to the Interim Finance Committee a report of the expenditures made

24-27  from the [Account] Subaccount for the previous quarter.

24-28     6.  The Division shall adopt such regulations as are necessary to

24-29  administer the [Account.] Subaccount.

24-30     7.  The Division may adopt regulations to provide for

24-31  reimbursement of expenditures made from the [Account.]

24-32  Subaccount. If the Division requires such reimbursement, the

24-33  Attorney General shall take such action as is necessary to recover

24-34  the amount of any unpaid reimbursement plus interest at a rate

24-35  determined pursuant to NRS 17.130, computed from the date on

24-36  which the money was removed from the [Fund,] Account, upon

24-37  request by the Division.

24-38     Sec. 58.  NRS 463.370 is hereby amended to read as follows:

24-39      463.370  1.  Except as otherwise provided in NRS 463.373,

24-40  the Commission shall charge and collect from each licensee a

24-41  license fee based upon all the gross revenue of the licensee as

24-42  follows:

24-43     (a) Three and one-half percent of all the gross revenue of the

24-44  licensee which does not exceed $50,000 per calendar month;

25-1      (b) Four and one-half percent of all the gross revenue of the

25-2  licensee which exceeds $50,000 per calendar month and does not

25-3  exceed $134,000 per calendar month; and

25-4      (c) Six and [one-quarter] three-quarters percent of all the gross

25-5  revenue of the licensee which exceeds $134,000 per calendar month.

25-6      2.  Unless the licensee has been operating for less than a full

25-7  calendar month, the Commission shall charge and collect the fee

25-8  prescribed in subsection 1, based upon the gross revenue for the

25-9  preceding calendar month, on or before the 24th day of the

25-10  following month. Except for the fee based on the first full month of

25-11  operation, the fee is an estimated payment of the license fee for the

25-12  third month following the month whose gross revenue is used as its

25-13  basis.

25-14     3.  When a licensee has been operating for less than a full

25-15  calendar month, the Commission shall charge and collect the fee

25-16  prescribed in subsection 1, based on the gross revenue received

25-17  during that month, on or before the 24th day of the following

25-18  calendar month of operation. After the first full calendar month of

25-19  operation, the Commission shall charge and collect the fee based on

25-20  the gross revenue received during that month, on or before the 24th

25-21  day of the following calendar month. The payment of the fee due for

25-22  the first full calendar month of operation must be accompanied by

25-23  the payment of a fee equal to three times the fee for the first full

25-24  calendar month. This additional amount is an estimated payment of

25-25  the license fees for the next 3 calendar months. Thereafter, each

25-26  license fee must be paid in the manner described in subsection 2.

25-27  Any deposit held by the Commission on July 1, 1969, must be

25-28  treated as an advance estimated payment.

25-29     4.  All revenue received from any game or gaming device

25-30  which is operated on the premises of a licensee, regardless of

25-31  whether any portion of the revenue is shared with any other person,

25-32  must be attributed to the licensee for the purposes of this section and

25-33  counted as part of the gross revenue of the licensee. Any other

25-34  person, including, without limitation, an operator of an inter-casino

25-35  linked system, who is authorized to receive a share of the revenue

25-36  from any game, gaming device or inter-casino linked system that is

25-37  operated on the premises of a licensee is liable to the licensee for

25-38  that person’s proportionate share of the license fees paid by the

25-39  licensee pursuant to this section and shall remit or credit the full

25-40  proportionate share to the licensee on or before the 24th day of each

25-41  calendar month. The proportionate share of an operator of an inter-

25-42  casino linked system must be based on all compensation and other

25-43  consideration received by the operator of the inter-casino linked

25-44  system, including, without limitation, amounts that accrue to the

25-45  meter of the primary progressive jackpot of the inter-casino linked

26-1  system and amounts that fund the reserves of such a jackpot, subject

26-2  to all appropriate adjustments for deductions, credits, offsets and

26-3  exclusions that the licensee is entitled to take or receive pursuant to

26-4  the provisions of this chapter. A licensee is not liable to any other

26-5  person authorized to receive a share of the licensee’s revenue from

26-6  any game, gaming device or inter-casino linked system that is

26-7  operated on the premises of the licensee for that person’s

26-8  proportionate share of the license fees to be remitted or credited to

26-9  the licensee by that person pursuant to this section.

26-10     5.  An operator of an inter-casino linked system shall not enter

26-11  into any agreement or arrangement with a licensee that provides for

26-12  the operator of the inter-casino linked system to be liable to the

26-13  licensee for less than its full proportionate share of the license fees

26-14  paid by the licensee pursuant to this section, whether accomplished

26-15  through a rebate, refund, charge-back or otherwise.

26-16     6.  Any person required to pay a fee pursuant to this section

26-17  shall file with the Commission, on or before the 24th day of each

26-18  calendar month, a report showing the amount of all gross revenue

26-19  received during the preceding calendar month. Each report must be

26-20  accompanied by:

26-21     (a) The fee due based on the revenue of the month covered by

26-22  the report; and

26-23     (b) An adjustment for the difference between the estimated fee

26-24  previously paid for the month covered by the report, if any, and

26-25  the fee due for the actual gross revenue earned in that month. If the

26-26  adjustment is less than zero, a credit must be applied to the

26-27  estimated fee due with that report.

26-28     7.  If the amount of license fees required to be reported and paid

26-29  pursuant to this section is later determined to be greater or less than

26-30  the amount actually reported and paid, the Commission shall:

26-31     (a) Charge and collect the additional license fees determined to

26-32  be due, with interest thereon until paid; or

26-33     (b) Refund any overpayment to the person entitled thereto

26-34  pursuant to this chapter, with interest thereon.

26-35  Interest pursuant to paragraph (a) must be computed at the rate

26-36  prescribed in NRS 17.130 from the first day of the first month

26-37  following the due date of the additional license fees until paid.

26-38  Interest pursuant to paragraph (b) must be computed at one-half the

26-39  rate prescribed in NRS 17.130 from the first day of the first month

26-40  following the date of overpayment until paid.

26-41     8.  Failure to pay the fees provided for in this section shall be

26-42  deemed a surrender of the license at the expiration of the period for

26-43  which the estimated payment of fees has been made, as established

26-44  in subsection 2.

27-1      9.  Except as otherwise provided in NRS 463.386, the amount

27-2  of the fee prescribed in subsection 1 must not be prorated.

27-3      10.  Except as otherwise provided in NRS 463.386, if a licensee

27-4  ceases operation, the Commission shall:

27-5      (a) Charge and collect the additional license fees determined to

27-6  be due with interest computed pursuant to paragraph (a) of

27-7  subsection 7; or

27-8      (b) Refund any overpayment to the licensee with interest

27-9  computed pursuant to paragraph (b) of subsection 7,

27-10  based upon the gross revenue of the licensee during the last 3

27-11  months immediately preceding the cessation of operation, or

27-12  portions of those last 3 months.

27-13     11.  If in any month[,] the amount of gross revenue is less than

27-14  zero, the licensee may offset the loss against gross revenue in

27-15  succeeding months until the loss has been fully offset.

27-16     12.  If in any month[,] the amount of the license fee due is less

27-17  than zero, the licensee is entitled to receive a credit against any

27-18  license fees due in succeeding months until the credit has been fully

27-19  offset.

27-20     Sec. 59.  NRS 463.770 is hereby amended to read as follows:

27-21      463.770  1.  All gross revenue from operating interactive

27-22  gaming received by an establishment licensed to operate interactive

27-23  gaming, regardless of whether any portion of the revenue is shared

27-24  with another person, must be attributed to the licensee and counted

27-25  as part of the gross revenue of the licensee for the purpose of

27-26  computing the license fee required by NRS 463.370.

27-27     2.  A manufacturer of interactive gaming systems who is

27-28  authorized by an agreement to receive a share of the revenue from

27-29  an interactive gaming system from an establishment licensed to

27-30  operate interactive gaming is liable to the establishment for a

27-31  portion of the license fee paid pursuant to subsection 1. The portion

27-32  for which the manufacturer of interactive gaming systems is liable is

27-33  [6.25] 6.75 percent of the amount of revenue to which the

27-34  manufacturer of interactive gaming systems is entitled pursuant to

27-35  the agreement.

27-36     3.  For the purposes of subsection 2, the amount of revenue to

27-37  which the manufacturer of interactive gaming systems is entitled

27-38  pursuant to an agreement to share the revenue from an interactive

27-39  gaming system:

27-40     (a) Includes all revenue of the manufacturer of interactive

27-41  gaming systems that is his share of the revenue from the interactive

27-42  gaming system pursuant to the agreement; and

27-43     (b) Does not include revenue that is the fixed purchase price for

27-44  the sale of a component of the interactive gaming system.

 

28-1      Sec. 60.  NRS 645B.060 is hereby amended to read as follows:

28-2      645B.060  1.  Subject to the administrative control of the

28-3  Director of the Department of Business and Industry, the

28-4  Commissioner shall exercise general supervision and control over

28-5  mortgage brokers doing business in this state.

28-6      2.  In addition to the other duties imposed upon him by law, the

28-7  Commissioner shall:

28-8      (a) Adopt any regulations that are necessary to carry out the

28-9  provisions of this chapter, except as to loan brokerage fees.

28-10     (b) Conduct such investigations as may be necessary to

28-11  determine whether any person has violated any provision of this

28-12  chapter, a regulation adopted pursuant to this chapter or an order of

28-13  the Commissioner.

28-14     (c) Conduct an annual examination of each mortgage broker

28-15  doing business in this state. The annual examination must include,

28-16  without limitation, a formal exit review with the mortgage broker.

28-17  The Commissioner shall adopt regulations prescribing:

28-18         (1) Standards for determining the rating of each mortgage

28-19  broker based upon the results of the annual examination; and

28-20         (2) Procedures for resolving any objections made by the

28-21  mortgage broker to the results of the annual examination. The

28-22  results of the annual examination may not be opened to public

28-23  inspection pursuant to NRS 645B.090 until any objections made by

28-24  the mortgage broker have been decided by the Commissioner.

28-25     (d) Conduct such other examinations, periodic or special audits,

28-26  investigations and hearings as may be necessary and proper for the

28-27  efficient administration of the laws of this state regarding mortgage

28-28  brokers and mortgage agents. The Commissioner shall adopt

28-29  regulations specifying the general guidelines that will be followed

28-30  when a periodic or special audit of a mortgage broker is conducted

28-31  pursuant to this chapter.

28-32     (e) Classify as confidential certain records and information

28-33  obtained by the Division when those matters are obtained from a

28-34  governmental agency upon the express condition that they remain

28-35  confidential. This paragraph does not limit examination by [the] :

28-36         (1) The Legislative Auditor[.] ; or

28-37         (2) The Department of Taxation if necessary to carry out

28-38  the provisions of sections 2 to 33, inclusive, of this act.

28-39     (f) Conduct such examinations and investigations as are

28-40  necessary to ensure that mortgage brokers meet the requirements of

28-41  this chapter for obtaining a license, both at the time of the

28-42  application for a license and thereafter on a continuing basis.

28-43     3.  For each special audit, investigation or examination, a

28-44  mortgage broker shall pay a fee based on the rate established

28-45  pursuant to NRS 658.101.

29-1      Sec. 61.  NRS 645B.670 is hereby amended to read as follows:

29-2      645B.670  Except as otherwise provided in NRS 645B.690:

29-3      1.  For each violation committed by an applicant, whether or

29-4  not he is issued a license, the Commissioner may impose upon the

29-5  applicant an administrative fine of not more than $10,000, if the

29-6  applicant:

29-7      (a) Has knowingly made or caused to be made to the

29-8  Commissioner any false representation of material fact;

29-9      (b) Has suppressed or withheld from the Commissioner any

29-10  information which the applicant possesses and which, if submitted

29-11  by him, would have rendered the applicant ineligible to be licensed

29-12  pursuant to the provisions of this chapter; or

29-13     (c) Has violated any provision of this chapter, a regulation

29-14  adopted pursuant to this chapter or an order of the Commissioner in

29-15  completing and filing his application for a license or during the

29-16  course of the investigation of his application for a license.

29-17     2.  For each violation committed by a licensee, the

29-18  Commissioner may impose upon the licensee an administrative fine

29-19  of not more than $10,000, may suspend, revoke or place conditions

29-20  upon his license, or may do both, if the licensee, whether or not

29-21  acting as such:

29-22     (a) Is insolvent;

29-23     (b) Is grossly negligent or incompetent in performing any act for

29-24  which he is required to be licensed pursuant to the provisions of this

29-25  chapter;

29-26     (c) Does not conduct his business in accordance with law or has

29-27  violated any provision of this chapter, a regulation adopted pursuant

29-28  to this chapter or an order of the Commissioner;

29-29     (d) Is in such financial condition that he cannot continue in

29-30  business with safety to his customers;

29-31     (e) Has made a material misrepresentation in connection with

29-32  any transaction governed by this chapter;

29-33     (f) Has suppressed or withheld from a client any material facts,

29-34  data or other information relating to any transaction governed by the

29-35  provisions of this chapter which the licensee knew or, by the

29-36  exercise of reasonable diligence, should have known;

29-37     (g) Has knowingly made or caused to be made to the

29-38  Commissioner any false representation of material fact or has

29-39  suppressed or withheld from the Commissioner any information

29-40  which the licensee possesses and which, if submitted by him, would

29-41  have rendered the licensee ineligible to be licensed pursuant to the

29-42  provisions of this chapter;

29-43     (h) Has failed to account to persons interested for all money

29-44  received for a trust account;

30-1      (i) Has refused to permit an examination by the Commissioner

30-2  of his books and affairs or has refused or failed, within a reasonable

30-3  time, to furnish any information or make any report that may be

30-4  required by the Commissioner pursuant to the provisions of this

30-5  chapter or a regulation adopted pursuant to this chapter;

30-6      (j) Has been convicted of, or entered a plea of nolo contendere

30-7  to, a felony or any crime involving fraud, misrepresentation or

30-8  moral turpitude;

30-9      (k) Has refused or failed to pay, within a reasonable time, any

30-10  fees, assessments, costs or expenses that the licensee is required to

30-11  pay pursuant to this chapter or a regulation adopted pursuant to this

30-12  chapter;

30-13     (l) Has failed to satisfy a claim made by a client which has been

30-14  reduced to judgment;

30-15     (m) Has failed to account for or to remit any money of a client

30-16  within a reasonable time after a request for an accounting or

30-17  remittal;

30-18     (n) Has commingled the money or other property of a client

30-19  with his own or has converted the money or property of others to his

30-20  own use;

30-21     (o) Has engaged in any other conduct constituting a deceitful,

30-22  fraudulent or dishonest business practice;

30-23     (p) Has repeatedly violated the policies and procedures of the

30-24  mortgage broker;

30-25     (q) Has failed to exercise reasonable supervision over the

30-26  activities of a mortgage agent as required by NRS 645B.460;

30-27     (r) Has instructed a mortgage agent to commit an act that would

30-28  be cause for the revocation of the license of the mortgage broker,

30-29  whether or not the mortgage agent commits the act;

30-30     (s) Has employed a person as a mortgage agent or authorized a

30-31  person to be associated with the licensee as a mortgage agent at a

30-32  time when the licensee knew or, in light of all the surrounding facts

30-33  and circumstances, reasonably should have known that the person:

30-34         (1) Had been convicted of, or entered a plea of nolo

30-35  contendere to, a felony or any crime involving fraud,

30-36  misrepresentation or moral turpitude; or

30-37         (2) Had a financial services license or registration suspended

30-38  or revoked within the immediately preceding 10 years; [or]

30-39     (t) Has failed to pay the franchise tax imposed pursuant to the

30-40  provisions of sections 2 to 33, inclusive, of this act; or

30-41     (u) Has not conducted verifiable business as a mortgage broker

30-42  for 12 consecutive months, except in the case of a new applicant.

30-43  The Commissioner shall determine whether a mortgage broker is

30-44  conducting business by examining the monthly reports of activity

31-1  submitted by the licensee or by conducting an examination of the

31-2  licensee.

31-3      Sec. 62.  NRS 645E.300 is hereby amended to read as follows:

31-4      645E.300  1.  Subject to the administrative control of the

31-5  Director of the Department of Business and Industry, the

31-6  Commissioner shall exercise general supervision and control over

31-7  mortgage companies doing business in this state.

31-8      2.  In addition to the other duties imposed upon him by law, the

31-9  Commissioner shall:

31-10     (a) Adopt any regulations that are necessary to carry out the

31-11  provisions of this chapter, except as to loan fees.

31-12     (b) Conduct such investigations as may be necessary to

31-13  determine whether any person has violated any provision of this

31-14  chapter, a regulation adopted pursuant to this chapter or an order of

31-15  the Commissioner.

31-16     (c) Conduct an annual examination of each mortgage company

31-17  doing business in this state.

31-18     (d) Conduct such other examinations, periodic or special audits,

31-19  investigations and hearings as may be necessary and proper for the

31-20  efficient administration of the laws of this state regarding mortgage

31-21  companies.

31-22     (e) Classify as confidential certain records and information

31-23  obtained by the Division when those matters are obtained from a

31-24  governmental agency upon the express condition that they remain

31-25  confidential. This paragraph does not limit examination by [the] :

31-26         (1) The Legislative Auditor[.] ; or

31-27         (2) The Department of Taxation if necessary to carry out

31-28  the provisions of sections 2 to 33, inclusive, of this act.

31-29     (f) Conduct such examinations and investigations as are

31-30  necessary to ensure that mortgage companies meet the requirements

31-31  of this chapter for obtaining a license, both at the time of the

31-32  application for a license and thereafter on a continuing basis.

31-33     3.  For each special audit, investigation or examination, a

31-34  mortgage company shall pay a fee based on the rate established

31-35  pursuant to NRS 658.101.

31-36     Sec. 63.  NRS 645E.670 is hereby amended to read as follows:

31-37      645E.670  1.  For each violation committed by an applicant,

31-38  whether or not he is issued a license, the Commissioner may impose

31-39  upon the applicant an administrative fine of not more than $10,000,

31-40  if the applicant:

31-41     (a) Has knowingly made or caused to be made to the

31-42  Commissioner any false representation of material fact;

31-43     (b) Has suppressed or withheld from the Commissioner any

31-44  information which the applicant possesses and which, if submitted

32-1  by him, would have rendered the applicant ineligible to be licensed

32-2  pursuant to the provisions of this chapter; or

32-3      (c) Has violated any provision of this chapter, a regulation

32-4  adopted pursuant to this chapter or an order of the Commissioner in

32-5  completing and filing his application for a license or during the

32-6  course of the investigation of his application for a license.

32-7      2.  For each violation committed by a licensee, the

32-8  Commissioner may impose upon the licensee an administrative fine

32-9  of not more than $10,000, may suspend, revoke or place conditions

32-10  upon his license, or may do both, if the licensee, whether or not

32-11  acting as such:

32-12     (a) Is insolvent;

32-13     (b) Is grossly negligent or incompetent in performing any act for

32-14  which he is required to be licensed pursuant to the provisions of this

32-15  chapter;

32-16     (c) Does not conduct his business in accordance with law or has

32-17  violated any provision of this chapter, a regulation adopted pursuant

32-18  to this chapter or an order of the Commissioner;

32-19     (d) Is in such financial condition that he cannot continue in

32-20  business with safety to his customers;

32-21     (e) Has made a material misrepresentation in connection with

32-22  any transaction governed by this chapter;

32-23     (f) Has suppressed or withheld from a client any material facts,

32-24  data or other information relating to any transaction governed by the

32-25  provisions of this chapter which the licensee knew or, by the

32-26  exercise of reasonable diligence, should have known;

32-27     (g) Has knowingly made or caused to be made to the

32-28  Commissioner any false representation of material fact or has

32-29  suppressed or withheld from the Commissioner any information

32-30  which the licensee possesses and which, if submitted by him, would

32-31  have rendered the licensee ineligible to be licensed pursuant to the

32-32  provisions of this chapter;

32-33     (h) Has failed to account to persons interested for all money

32-34  received for a trust account;

32-35     (i) Has refused to permit an examination by the Commissioner

32-36  of his books and affairs or has refused or failed, within a reasonable

32-37  time, to furnish any information or make any report that may be

32-38  required by the Commissioner pursuant to the provisions of this

32-39  chapter or a regulation adopted pursuant to this chapter;

32-40     (j) Has been convicted of, or entered a plea of nolo contendere

32-41  to, a felony or any crime involving fraud, misrepresentation or

32-42  moral turpitude;

32-43     (k) Has refused or failed to pay, within a reasonable time, any

32-44  fees, assessments, costs or expenses that the licensee is required to

33-1  pay pursuant to this chapter or a regulation adopted pursuant to this

33-2  chapter;

33-3      (l) Has failed to pay the franchise tax imposed pursuant to the

33-4  provisions of sections 2 to 33, inclusive, of this act;

33-5      (m)  Has failed to satisfy a claim made by a client which has

33-6  been reduced to judgment;

33-7      [(m)] (n) Has failed to account for or to remit any money of a

33-8  client within a reasonable time after a request for an accounting or

33-9  remittal;

33-10     [(n)] (o) Has commingled the money or other property of a

33-11  client with his own or has converted the money or property of others

33-12  to his own use; or

33-13     [(o)] (p) Has engaged in any other conduct constituting a

33-14  deceitful, fraudulent or dishonest business practice.

33-15     Sec. 64.  NRS 649.395 is hereby amended to read as follows:

33-16      649.395  1.  The Commissioner may impose an administrative

33-17  fine, not to exceed $500 for each violation, or suspend or revoke the

33-18  license of a collection agency, or both impose a fine and suspend or

33-19  revoke the license, by an order made in writing and filed in his

33-20  office and served on the licensee by registered or certified mail at

33-21  the address shown in the records of the Commissioner, if:

33-22     (a) The licensee is adjudged liable in any court of law for breach

33-23  of any bond given under the provisions of this chapter; [or]

33-24     (b) After notice and hearing, the licensee is found guilty of:

33-25         (1) Fraud or misrepresentation;

33-26         (2) An act or omission inconsistent with the faithful

33-27  discharge of his duties and obligations; or

33-28         (3) A violation of any provision of this chapter[.] ; or

33-29     (c) The Commissioner determines that the licensee has failed

33-30  to pay the franchise tax imposed pursuant to the provisions of

33-31  sections 2 to 33, inclusive, of this act.

33-32     2.  The Commissioner may suspend or revoke the license of a

33-33  collection agency without notice and hearing if:

33-34     (a) The suspension or revocation is necessary for the immediate

33-35  protection of the public; and

33-36     (b) The licensee is afforded a hearing to contest the suspension

33-37  or revocation within 20 days after the written order of suspension or

33-38  revocation is served upon the licensee.

33-39     3.  Upon revocation of his license, all rights of the licensee

33-40  under this chapter terminate, and no application may be received

33-41  from any person whose license has once been revoked.

33-42     Sec. 65.  NRS 658.151 is hereby amended to read as follows:

33-43      658.151  1.  The Commissioner may forthwith take possession

33-44  of the business and property of any depository institution to which

34-1  this title or title 56 of NRS applies when it appears that the

34-2  depository institution:

34-3      (a) Has violated its charter or any laws applicable thereto.

34-4      (b) Is conducting its business in an unauthorized or unsafe

34-5  manner.

34-6      (c) Is in an unsafe or unsound condition to transact its business.

34-7      (d) Has an impairment of its stockholders’ or members’ equity.

34-8      (e) Has refused to pay its depositors in accordance with the

34-9  terms on which such deposits were received, or has refused to pay

34-10  its holders of certificates of indebtedness or investment in

34-11  accordance with the terms upon which those certificates of

34-12  indebtedness or investment were sold.

34-13     (f) Has become otherwise insolvent.

34-14     (g) Has neglected or refused to comply with the terms of a

34-15  lawful order of the Commissioner.

34-16     (h) Has refused, upon proper demand, to submit its records,

34-17  affairs and concerns for inspection and examination of an appointed

34-18  or authorized examiner of the Commissioner.

34-19     (i) Has made a voluntary assignment of its assets to trustees.

34-20     (j) Has failed to pay the franchise tax imposed pursuant to the

34-21  provisions of sections 2 to 33, inclusive, of this act.

34-22     2.  The Commissioner also may forthwith take possession of the

34-23  business and property of any depository institution to which this title

34-24  or title 56 of NRS applies when it appears that the officers of the

34-25  depository institution have refused to be examined upon oath

34-26  regarding its affairs.

34-27     Sec. 66.  NRS 665.133 is hereby amended to read as follows:

34-28      665.133  1.  The records and information described in NRS

34-29  665.130 may be disclosed to:

34-30     (a) An agency of the Federal Government or of another state

34-31  which regulates the financial institution which is the subject of the

34-32  records or information;

34-33     (b) The Director of the Department of Business and Industry for

34-34  his confidential use;

34-35     (c) The State Board of Finance for its confidential use, if the

34-36  report or other information is necessary for the State Board of

34-37  Finance to perform its duties under this title;

34-38     (d) The Department of Taxation for its use in carrying out the

34-39  provisions of sections 2 to 33, inclusive, of this act;

34-40     (e) An entity which insures or guarantees deposits;

34-41     [(e)] (f) A public officer authorized to investigate criminal

34-42  charges in connection with the affairs of the depository institution;

34-43     [(f)] (g) A person preparing a proposal for merging with or

34-44  acquiring an institution or holding company, but only after notice of

34-45  the disclosure has been given to the institution or holding company;

35-1      [(g)] (h) Any person to whom the subject of the report has

35-2  authorized the disclosure;

35-3      [(h)] (i) Any other person if the Commissioner determines, after

35-4  notice and opportunity for hearing, that disclosure is in the public

35-5  interest and outweighs any potential harm to the depository

35-6  institution and its stockholders, members, depositors and creditors;

35-7  and

35-8      [(i)] (j) Any court in a proceeding initiated by the

35-9  Commissioner concerning the financial institution.

35-10     2.  All the reports made available pursuant to this section

35-11  remain the property of the Division of Financial Institutions, and no

35-12  person, agency or authority to whom the reports are made available,

35-13  or any officer, director or employee thereof, may disclose any of the

35-14  reports or any information contained therein, except in published

35-15  statistical material that does not disclose the affairs of any natural

35-16  person or corporation.

35-17     Sec. 67.  NRS 673.484 is hereby amended to read as follows:

35-18      673.484  The Commissioner may after notice and hearing

35-19  suspend or revoke the charter of any association for [repeated] :

35-20     1.  Repeated failure to abide by the provisions of this chapter or

35-21  the regulations adopted thereunder.

35-22     2.  Failure to pay the franchise tax imposed pursuant to the

35-23  provisions of sections 2 to 33, inclusive, of this act.

35-24     Sec. 68.  NRS 675.440 is hereby amended to read as follows:

35-25      675.440  1.  If the Commissioner has reason to believe that

35-26  grounds for revocation or suspension of a license exist, he shall give

35-27  20 days’ written notice to the licensee stating the contemplated

35-28  action and, in general, the grounds therefor and set a date for a

35-29  hearing.

35-30     2.  At the conclusion of a hearing, the Commissioner shall:

35-31     (a) Enter a written order either dismissing the charges, revoking

35-32  the license, or suspending the license for a period of not more than

35-33  60 days, which period must include any prior temporary suspension.

35-34  A copy of the order must be sent by registered or certified mail to

35-35  the licensee.

35-36     (b) Impose upon the licensee a fine of $500 for each violation by

35-37  the licensee of any provision of this chapter or any lawful regulation

35-38  adopted under it.

35-39     (c) If a fine is imposed pursuant to this section, enter such order

35-40  as is necessary to recover the costs of the proceeding, including his

35-41  investigative costs and attorney’s fees.

35-42     3.  The grounds for revocation or suspension of a license are

35-43  that:

35-44     (a) The licensee has failed to pay the annual license fee;

36-1      (b) The licensee, either knowingly or without any exercise of

36-2  due care to prevent it, has violated any provision of this chapter or

36-3  any lawful regulation adopted under it;

36-4      (c) The licensee has failed to pay the franchise tax imposed

36-5  pursuant to the provisions of sections 2 to 33, inclusive, of this act;

36-6      (d) Any fact or condition exists which would have justified the

36-7  Commissioner in denying the licensee’s original application for a

36-8  license hereunder; or

36-9      [(d)] (e) The applicant failed to open an office for the conduct

36-10  of the business authorized under this chapter within 120 days from

36-11  the date the license was issued, or has failed to remain open for the

36-12  conduct of the business for a period of 120 days without good cause

36-13  therefor.

36-14     4.  Any revocation or suspension applies only to the license

36-15  granted to a person for the particular office for which grounds for

36-16  revocation or suspension exist.

36-17     5.  An order suspending or revoking a license becomes effective

36-18  5 days after being entered unless the order specifies otherwise or a

36-19  stay is granted.

36-20     Sec. 69.  NRS 676.290 is hereby amended to read as follows:

36-21      676.290  1.  The Commissioner may, pursuant to the

36-22  procedure provided in this chapter, deny, suspend or revoke any

36-23  license for which application has been made or which has been

36-24  issued under the provisions of this chapter if he finds, as to the

36-25  licensee, its associates, directors or officers, grounds for action.

36-26     2.  Any one of the following grounds may provide the requisite

36-27  grounds for denial, suspension or revocation:

36-28     (a) Conviction of a felony or of a misdemeanor involving moral

36-29  turpitude.

36-30     (b) Violation of any of the provisions of this chapter or

36-31  regulations of the Commissioner.

36-32     (c) Fraud or deceit in procuring the issuance of the license.

36-33     (d) Continuous course of unfair conduct.

36-34     (e) Insolvency, filing in bankruptcy, receivership or assigning

36-35  for the benefit of creditors by any licensee or applicant for a license

36-36  under this chapter.

36-37     (f) Failure to pay the franchise tax imposed pursuant to the

36-38  provisions of sections 2 to 33, inclusive, of this act.

36-39     (g) Failure to pay the fee for renewal or reinstatement of a

36-40  license.

36-41     3.  The Commissioner shall, after notice and hearing, impose

36-42  upon the licensee a fine of $500 for each violation by the licensee of

36-43  any of the provisions of this chapter or regulations of the

36-44  Commissioner. If a fine is imposed pursuant to this section, the

37-1  costs of the proceeding, including investigative costs and attorney’s

37-2  fees, may be recovered by the Commissioner.

37-3      Sec. 70.  NRS 677.510 is hereby amended to read as follows:

37-4      677.510  1.  If the Commissioner has reason to believe that

37-5  grounds for revocation or suspension of a license exist, he shall give

37-6  20 days’ written notice to the licensee stating the contemplated

37-7  action and, in general, the grounds therefor and set a date for a

37-8  hearing.

37-9      2.  At the conclusion of a hearing, the Commissioner shall:

37-10     (a) Enter a written order either dismissing the charges, or

37-11  revoking the license, or suspending the license for a period of not

37-12  more than 60 days, which period must include any prior temporary

37-13  suspension. A copy of the order must be sent by registered or

37-14  certified mail to the licensee.

37-15     (b) Impose upon the licensee a fine of $500 for each violation by

37-16  the licensee of any provision of this chapter or any lawful regulation

37-17  adopted pursuant thereto.

37-18     (c) If a fine is imposed pursuant to this section, enter such order

37-19  as is necessary to recover the costs of the proceeding, including his

37-20  investigative costs and attorney’s fees.

37-21     3.  The grounds for revocation or suspension of a license are

37-22  that:

37-23     (a) The licensee has failed to pay the annual license fee;

37-24     (b) The licensee, either knowingly or without any exercise of

37-25  due care to prevent it, has violated any provision of this chapter, or

37-26  any lawful regulation adopted pursuant thereto;

37-27     (c) The licensee has failed to pay the franchise tax imposed

37-28  pursuant to the provisions of sections 2 to 33, inclusive, of this act;

37-29     (d) Any fact or condition exists which would have justified the

37-30  Commissioner in denying the licensee’s original application for a

37-31  license hereunder; or

37-32     [(d)] (e) The applicant failed to open an office for the conduct

37-33  of the business authorized under this chapter within 120 days from

37-34  the date the license was issued, or has failed to remain open for the

37-35  conduct of the business for a period of 120 days without good cause

37-36  therefor.

37-37     4.  Any revocation or suspension applies only to the license

37-38  granted to a person for the particular office for which grounds for

37-39  revocation or suspension exist.

37-40     5.  An order suspending or revoking a license becomes effective

37-41  5 days after being entered unless the order specifies otherwise or a

37-42  stay is granted.

37-43     Sec. 71.  NRS 680B.037 is hereby amended to read as follows:

37-44      680B.037  [Payment]

38-1      1.  Except as otherwise provided in subsection 2, payment by

38-2  an insurer of the tax imposed by NRS 680B.027 is in lieu of all

38-3  taxes imposed by the State or any city, town or county upon

38-4  premiums or upon income of insurers and of franchise, privilege or

38-5  other taxes measured by income of the insurer.

38-6      2.  The provisions of subsection 1 do not apply to the

38-7  franchise tax imposed pursuant to the provisions of sections 2 to

38-8  33, inclusive, of this act.

38-9      Sec. 72.  NRS 687A.130 is hereby amended to read as follows:

38-10      687A.130  The Association is exempt from payment of all fees

38-11  and all taxes levied by this state or any of its subdivisions, except

38-12  [taxes] :

38-13     1.  Taxes levied on real or personal property.

38-14     2.  The franchise tax imposed pursuant to the provisions of

38-15  sections 2 to 33, inclusive, of this act.

38-16     Sec. 73.  NRS 694C.450 is hereby amended to read as follows:

38-17      694C.450  1.  Except as otherwise provided in this section, a

38-18  captive insurer shall pay to the Division, not later than March 1 of

38-19  each year, a tax at the rate of:

38-20     (a) Two-fifths of 1 percent on the first $20,000,000 of its net

38-21  direct premiums;

38-22     (b) One-fifth of 1 percent on the next $20,000,000 of its net

38-23  direct premiums; and

38-24     (c) Seventy-five thousandths of 1 percent on each additional

38-25  dollar of its net direct premiums.

38-26     2.  Except as otherwise provided in this section, a captive

38-27  insurer shall pay to the Division, not later than March 1 of each

38-28  year, a tax at a rate of:

38-29     (a) Two hundred twenty-five thousandths of 1 percent on the

38-30  first $20,000,000 of revenue from assumed reinsurance premiums;

38-31     (b) One hundred fifty thousandths of 1 percent on the next

38-32  $20,000,000 of revenue from assumed reinsurance premiums; and

38-33     (c) Twenty-five thousandths of 1 percent on each additional

38-34  dollar of revenue from assumed reinsurance premiums.

38-35  The tax on reinsurance premiums pursuant to this subsection must

38-36  not be levied on premiums for risks or portions of risks which are

38-37  subject to taxation on a direct basis pursuant to subsection 1. A

38-38  captive insurer is not required to pay any reinsurance premium tax

38-39  pursuant to this subsection on revenue related to the receipt of assets

38-40  by the captive insurer in exchange for the assumption of loss

38-41  reserves and other liabilities of another insurer that is under

38-42  common ownership and control with the captive insurer, if the

38-43  transaction is part of a plan to discontinue the operation of the other

38-44  insurer and the intent of the parties to the transaction is to renew or

38-45  maintain such business with the captive insurer.

39-1      3.  If the sum of the taxes to be paid by a captive insurer

39-2  calculated pursuant to subsections 1 and 2 is less than $5,000 in any

39-3  given year, the captive insurer shall pay a tax of $5,000 for that

39-4  year.

39-5      4.  Two or more captive insurers under common ownership and

39-6  control must be taxed as if they were a single captive insurer.

39-7      5.  Notwithstanding any specific statute to the contrary , [and]

39-8  except as otherwise provided in this subsection, the tax provided for

39-9  by this section constitutes all the taxes collectible pursuant to the

39-10  laws of this state from a captive insurer, and no occupation tax or

39-11  other taxes may be levied or collected from a captive insurer by this

39-12  state or by any county, city or municipality within this state, except

39-13  for the franchise tax imposed pursuant to the provisions of

39-14  sections 2 to 33, inclusive, of this act and ad valorem taxes on real

39-15  or personal property located in this state used in the production of

39-16  income by the captive insurer.

39-17     6.  Ten percent of the revenues collected from the tax imposed

39-18  pursuant to this section must be deposited with the State Treasurer

39-19  for credit to the Account for the Regulation and Supervision of

39-20  Captive Insurers created pursuant to NRS 694C.460. The remaining

39-21  90 percent of the revenues collected must be deposited with the

39-22  State Treasurer for credit to the State General Fund.

39-23     7.  As used in this section, unless the context otherwise

39-24  requires:

39-25     (a) “Common ownership and control” means:

39-26         (1) In the case of a stock insurer, the direct or indirect

39-27  ownership of 80 percent or more of the outstanding voting stock of

39-28  two or more corporations by the same member or members.

39-29         (2) In the case of a mutual insurer, the direct or indirect

39-30  ownership of 80 percent or more of the surplus and the voting power

39-31  of two or more corporations by the same member or members.

39-32     (b) “Net direct premiums” means the direct premiums collected

39-33  or contracted for on policies or contracts of insurance written by a

39-34  captive insurer during the preceding calendar year, less the amounts

39-35  paid to policyholders as return premiums, including dividends on

39-36  unabsorbed premiums or premium deposits returned or credited to

39-37  policyholders.

39-38     Sec. 74.  Section 58 of Assembly Bill No. 553 of the 72nd

39-39  Session of the Nevada Legislature is hereby amended to read as

39-40  follows:

39-41      Sec. 58.  1.  If projections of the ending balance of the

39-42  State General Fund fall below the amount estimated by the

39-43  [2003] Nevada Legislature for Fiscal Year 2003-2004 or

39-44  2004-2005, the Director of the Department of Administration

39-45  shall report this information to the State Board of Examiners.

40-1      2.  If the State Board of Examiners determines that the

40-2  ending balance of the State General Fund is projected to be

40-3  less than $60,000,000 for Fiscal Year 2003-2004 or 2004-

40-4  2005, the Governor, pursuant to NRS 353.225, may direct the

40-5  Director of the Department of Administration to require the

40-6  State Controller or the head of each department, institution or

40-7  agency to set aside a reserve of not more than 15 percent of

40-8  the total amount of operating expenses or other appropriations

40-9  and money otherwise available to the department, institution

40-10  or agency.

40-11     3.  A reserve must not be set aside pursuant to this

40-12  section unless:

40-13      (a) The Governor, on behalf of the State Board of

40-14  Examiners, submits a report to the Legislature, or, if the

40-15  Legislature is not in session, to the Interim Finance

40-16  Committee, stating the reasons why a reserve is needed and

40-17  indicating each department, institution or agency that will be

40-18  required to set aside a reserve; and

40-19      (b) The Legislature or Interim Finance Committee

40-20  approves the setting aside of the reserve.

40-21     Sec. 75.  Section 61 of Assembly Bill No. 553 of the 72nd

40-22  Session of the Nevada Legislature is hereby amended to read as

40-23  follows:

40-24      Sec. 61.  1.  There is hereby appropriated from the

40-25  State General Fund to the Interim Finance Committee the

40-26  sum of $12,500,000 in Fiscal Year 2003-2004 and

40-27  [$20,000,000] $15,000,000 in Fiscal Year 2004-2005 for

40-28  information technology and additional operational costs that

40-29  may be required by the Department of Taxation or other state

40-30  agency to implement or modify the collections of State

40-31  General Fund revenues . [approved by the 72nd Session of

40-32  the Nevada Legislature.]

40-33     2.  If the Department of Taxation or other state agency

40-34  determines that additional resources are necessary for

40-35  information technology or additional operational costs related

40-36  to subsection 1 the State Board of Examiners shall consider

40-37  the request and recommend the amount of the allocation, if

40-38  any, to the Interim Finance Committee.

40-39     3.  The Interim Finance Committee is not required to

40-40  approve the entire amount of an allocation recommended

40-41  pursuant to subsection 2 or to allocate the entire amount

40-42  appropriated in subsection 1.

40-43     4.  The sums appropriated by subsection 1 are available

40-44  for either fiscal year. Any balance of those sums must not be

40-45  committed for expenditure after June 30, 2005, and reverts to

41-1  the State General Fund as soon as all payments of money

41-2  committed have been made.

41-3      Sec. 76.  Section 1 of Senate Bill No. 243 of the 72nd Session

41-4  of the Nevada Legislature is hereby amended to read as follows:

41-5      Section 1.  [1.  There is hereby appropriated from the

41-6  State General Fund to the Fund to Stabilize the Operation of

41-7  State Government created by NRS 353.288 the sum of

41-8  $30,000,000.

41-9      2.] Notwithstanding the provisions of NRS 353.235:

41-10      [(a)] 1.  Upon receipt of the projections and estimates of

41-11  the Economic Forum required by paragraph (d) of subsection

41-12  1 of NRS 353.228 to be reported on or before December 1,

41-13  2004, the Interim Finance Committee shall project the ending

41-14  balance of the State General Fund for Fiscal Year 2004-2005,

41-15  using all relevant information known to it.

41-16      [(b)] 2.  Except as otherwise provided in [paragraph (c),]

41-17  subsection 3, there is hereby contingently appropriated from

41-18  the State General Fund to the Fund to Stabilize the Operation

41-19  of the State Government created by NRS 353.288 the

41-20  amount, if any, by which the projection required by

41-21  [paragraph (a)] subsection 1 exceeds the amount of the

41-22  ending balance of the State General Fund for Fiscal Year

41-23  2004-2005 as estimated by the [2003 Legislature.

41-24      (c)] Nevada Legislature.

41-25     3.  The amount of any appropriation pursuant to

41-26  [paragraph (b)] subsection 2 must not exceed [$20,000,000.]

41-27  $50,000,000.

41-28     Sec. 77.  NRS 353.272 is hereby repealed.

41-29     Sec. 78.  Notwithstanding the provisions of NRS 353.288:

41-30     1.  After the close of the 2003-2004 Fiscal Year and after the

41-31  close of the 2004-2005 Fiscal Year, the Interim Finance Committee

41-32  shall determine the amount, if any, by which the total revenue from

41-33  all sources to the State General Fund, excluding reversions to the

41-34  State General Fund, exceeds:

41-35     (a) One hundred seven percent of the total revenue from all

41-36  sources to the State General Fund as projected by the Nevada

41-37  Legislature for the applicable fiscal year; and

41-38     (b) The total amount of all applicable contingent appropriations

41-39  enacted for the 2003-2004 Fiscal Year and the 2004-2005 Fiscal

41-40  Year by the Nevada Legislature for which the conditions for the

41-41  contingent appropriations were satisfied.

41-42     2.  Any excess amount of revenue determined pursuant to

41-43  subsection 1 must be used as follows:

 

42-1      (a) An amount estimated by the Interim Finance Committee to

42-2  pay for expenditures that will occur in the next biennium for which

42-3  the corresponding expenditures in the current biennium were paid or

42-4  are to be paid from a source other than the State General Fund, but

42-5  for which the alternative source of revenue likely will not be

42-6  available or will not be received during the biennium, must be used

42-7  to replace previously used nonrecurring revenue. This amount must

42-8  be accounted for separately in the State General Fund.

42-9      (b) The remaining excess amount of revenue must be transferred

42-10  to the Fund to Stabilize the Operation of the State Government

42-11  created by NRS 353.288, in such an amount that does not cause the

42-12  balance in the Fund to exceed the limitation on that balance set forth

42-13  in NRS 353.288.

42-14     (c) Any remaining excess amount of revenue must be transferred

42-15  to the Fund for Tax Accountability created pursuant to section 79 of

42-16  this act.

42-17     Sec. 79.  1.  The Fund for Tax Accountability is hereby

42-18  created as a special revenue fund.

42-19     2.  Money from the Fund may be appropriated only for the

42-20  purpose of supplementing future revenue of this state to allow the

42-21  reduction of the rate or amount of a tax or fee.

42-22     3.  This section does not authorize a refund or other return of

42-23  any tax or fee paid to this state pursuant to any statute or regulation

42-24  in effect at the time the tax or fee was paid.

42-25     Sec. 80.  The Budget Division of the Department of

42-26  Administration and the Fiscal Analysis Division of the Legislative

42-27  Counsel Bureau shall jointly:

42-28     1.  Identify all departments, institutions and agencies of the

42-29  Executive Department of the State Government that administer

42-30  programs for the treatment of alcohol and drug abuse or provide

42-31  funding to local governments for such programs;

42-32     2.  Develop a proposal for coordinating such programs,

42-33  reducing the administrative costs associated with such programs and

42-34  maximizing the use of state revenue being expended for such

42-35  programs; and

42-36     3.  Report their recommendations to Governor and to the

42-37  Director of the Legislative Counsel Bureau not later than

42-38  December 1, 2004.

42-39     Sec. 81.  1.  Notwithstanding the provisions of this act and

42-40  any other provision of law to the contrary, a public utility or local

42-41  government franchisee may increase its previously approved rates

42-42  by an amount which is reasonably estimated to produce an amount

42-43  of revenue equal to the amount of any tax liability incurred by the

42-44  public utility or local government franchisee before January 1, 2005,

42-45  as a result of the provisions of this act.

43-1      2.  For the purposes of this section:

43-2      (a) “Local government franchisee” means a person to whom a

43-3  local government has granted a franchise for the provision of

43-4  services who is required to obtain the approval of a governmental

43-5  entity to increase any of the rates it charges for those services.

43-6      (b) “Public utility” means a public utility that is required to

43-7  obtain the approval of a governmental entity to increase any of the

43-8  rates it charges for a utility service.

43-9      Sec. 82.  1.  The franchise tax imposed by section 15 of this

43-10  act applies to any Nevada taxable income earned by a financial

43-11  institution on or after November 1, 2003.

43-12     2.  Notwithstanding the provisions of section 15 of this act, the

43-13  tax return and remittance of the tax required pursuant to section 15

43-14  of this act for any taxable year ending before November 1, 2004, is

43-15  due on January 15, 2005.

43-16     3.  Sections 41, 42 and 43 of this act do not apply to any taxes

43-17  precollected pursuant to chapter 370 of NRS on or before the

43-18  effective date of those sections.

43-19     4.  Sections 39, 40 and 58 of this act do not affect the amount of

43-20  any license fees or taxes due for any period ending on or before

43-21  July 31, 2003.

43-22     5.  As used in this section:

43-23     (a) “Financial institution” has the meaning ascribed to it in

43-24  section 5 of this act.

43-25     (b) “Nevada taxable income” has the meaning ascribed to it in

43-26  section 7 of this act.

43-27     (c) “Taxable year” has the meaning ascribed to it in section 8 of

43-28  this act.

43-29     Sec. 83.  1.  This section and sections 34, 41 to 57, inclusive,

43-30  and 74 to 82, inclusive, of this act become effective upon passage

43-31  and approval.

43-32     2.  Sections 1 to 33, inclusive, 35 to 38, inclusive, and 60 to 73,

43-33  inclusive, of this act become effective:

43-34     (a) Upon passage and approval for the purpose of adopting

43-35  regulations and performing any other preparatory administrative

43-36  tasks that are necessary to carry out the provisions of this act; and

43-37     (b) On November 1, 2003, for all other purposes.

43-38     3.  Sections 39, 40, 58 and 59 become effective on August 1,

43-39  2003.

 

44-1  TEXT OF REPEALED SECTION

 

44-2      353.272  “Fund” defined.  “Fund” means the Disaster Relief

44-3   Fund created pursuant to NRS 353.2735.

 

44-4  H