Assembly Bill No. 109–Committee on Commerce and Labor

(On Behalf of Attorney General)

February 4, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions relating to deceptive trade practices. (BDR 52-292)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to deceptive trade practices; revising the definition of "organization" for the purposes of determining the applicability of certain provisions relating to deceptive trade practices; and providing other matters properly relating thereto.

 

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

1-1 Section 1. NRS 598.281 is hereby amended to read as follows:

1-2 598.281 As used in NRS 598.281 to 598.289, inclusive, unless the

1-3 context otherwise requires:

1-4 1. "Buyer" means a natural person who is solicited to purchase or who

1-5 purchases the services of an organization which provides credit services.

1-6 2. "Commissioner" means the commissioner of consumer affairs.

1-7 3. "Division" means the consumer affairs division of the department of

1-8 business and industry.

1-9 4. "Extension of credit" means the right to defer payment of debt or to

1-10 incur debt and defer its payment, offered or granted primarily for personal,

1-11 family or household purposes.

1-12 5. "Organization":

1-13 (a) Means a person who, with respect to the extension of credit by

1-14 others, sells, provides or performs, or represents that he can or will sell,

1-15 provide or perform, any of the following services, in return for the payment

1-16 of money or other valuable consideration:

1-17 (1) Improving a buyer’s credit record, history or rating.

1-18 (2) Obtaining an extension of credit for a buyer.

2-1 (3) Providing counseling or assistance to a person in establishing or

2-2 effecting a plan for the payment of his indebtedness, unless [such] that

2-3 counseling or assistance is provided by and is within the scope of the

2-4 authorized practice of a debt adjuster licensed pursuant to chapter 676 of

2-5 NRS.

2-6 (4) Providing advice or assistance to a buyer with regard to [either]

2-7 subparagraph (1) or (2).

2-8 (b) Does not include : [any of the following:]

2-9 (1) A person organized, chartered or holding a license or

2-10 authorization certificate to make loans or extensions of credit pursuant to

2-11 the laws of this state or the United States who is subject to regulation and

2-12 supervision by an officer or agency of this state or the United States.

2-13 (2) A bank or savings and loan institution whose deposits or accounts

2-14 are eligible for insurance by the Federal Deposit Insurance Corporation.

2-15 (3) [A nonprofit organization exempt from taxation under section

2-16 501(c)(3) of the Internal Revenue Code.

2-17 (4)] A person licensed as a real estate broker by this state where the

2-18 person is acting within the course and scope of that license [.

2-19 (5)] , unless the person is rendering those services in the course and

2-20 scope of employment by or other affiliation with an organization.

2-21 (4) A person licensed to practice law in this state where the person

2-22 renders services within the course and scope of his practice as an attorney

2-23 at law, unless the person is rendering [such] those services in the course

2-24 and scope of employment by or other affiliation with an organization.

2-25 [(6)] (5) A broker-dealer registered with the Securities and Exchange

2-26 Commission or the Commodity Futures Trading Commission where the

2-27 broker-dealer is acting within the course and scope of such regulation.

2-28 [(7)] (6) A person licensed as a debt adjuster pursuant to chapter 676

2-29 of NRS.

2-30 [(8)] (7) A reporting agency.

2-31 6. "Reporting agency" means a person who, for fees, dues or on a

2-32 cooperative nonprofit basis, regularly engages in whole or in part in the

2-33 business of assembling or evaluating information regarding the credit of or

2-34 other information regarding consumers to furnish consumer reports to third

2-35 parties, regardless of the means or facility of commerce used to prepare or

2-36 furnish the consumer reports. The term does not include:

2-37 (a) A person solely for the reason that he conveys a decision regarding

2-38 whether to guarantee a check in response to a request by a third party;

2-39 (b) A person who obtains or creates a consumer report and provides the

2-40 report or information contained in it to a subsidiary or affiliate; or

2-41 (c) A person licensed pursuant to chapter 463 of NRS.

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