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).

1-1 Section 1. NRS 598.092 is hereby amended to read as follows:

1-2 598.092 A person engages in a "deceptive trade practice" when in the

1-11 is incarcerated and the name and location of the correctional facility.

2-1 3. Knowingly states that services, replacement parts or repairs are

2-2 needed when no such services, replacement parts or repairs are actually

2-3 needed.

2-4 4. Fails to make delivery of goods or services within a reasonable time

2-5 or to make a refund for the goods or services, if he allows refunds.

2-6 5. Advertises or offers an opportunity for investment and:

2-7 (a) Represents that the investment is guaranteed, secured or protected in

2-8 a manner which he knows or has reason to know, is false or misleading;

2-9 (b) Represents that the investment will earn a rate of return which he

2-10 knows or has reasons to know is false or misleading;

2-11 (c) Makes any untrue statement of a material fact or omits to state a

2-12 material fact which is necessary to make another statement, considering the

2-13 circumstances under which it is made, not misleading;

2-14 (d) Fails to maintain adequate records so that an investor may determine

2-15 how his money is invested;

2-16 (e) Fails to provide information to an investor after a reasonable request

2-17 for information concerning his investment;

2-18 (f) Fails to comply with any law or regulation for the marketing of

2-19 securities or other investments; or

2-20 (g) Represents that he is licensed by an agency of the state to sell or

2-21 offer for sale investments or services for investments if he is not so

2-22 licensed.

2-23 6. Charges a fee for advice with respect to investment of money and

2-24 fails to disclose:

2-25 (a) That he is selling goods or services and, if he is, their identity; or

2-26 (b) That he is licensed by an agency of any state or of the United States

2-27 to sell or to offer for sale investments or services for investments, or holds

2-28 any other license related to the service he is providing.

2-29 7. Notifies any person, by any means, as a part of an advertising plan

2-30 or scheme, that he has won a prize and that as a condition of receiving the

2-31 prize he must purchase or rent goods or services.

2-32 8. Fails to inform customers, if he does not allow refunds or

2-33 exchanges, that he does not allow refunds or exchanges by:

2-34 (a) Printing a statement on the face of the sales receipt;

2-35 (b) Printing a statement on the face of the price tag; or

2-36 (c) Posting in an open and conspicuous place a sign at least 8 by 10

2-37 inches in size with boldface letters,

2-38 specifying that no refunds or exchanges are allowed.

2-39 Sec. 2. NRS 598.0955 is hereby amended to read as follows:

2-40 598.0955 1. NRS 598.0903 to 598.0999, inclusive, do not apply to:

2-42 person who is incarcerated in a correctional facility, conduct in

3-1 compliance with the orders or rules of, or a statute administered by, a

3-2 federal, state or local governmental agency.

3-3 (b) Publishers, including outdoor advertising media, advertising

3-4 agencies, broadcasters or printers engaged in the dissemination of

3-5 information or reproduction of printed or pictorial matter who publish,

3-6 broadcast or reproduce material without knowledge of its deceptive

3-7 character.

3-8 (c) Actions or appeals pending on July 1, 1973.

3-9 2. NRS 598.0903 to 598.0999, inclusive, do not apply to the use by a

3-10 person of any service mark, trade-mark, certification mark, collective

3-11 mark, trade name or other trade identification which was used and not

3-12 abandoned [prior to] before July 1, 1973, if the use was in good faith and

3-13 is otherwise lawful except for the provisions of NRS 598.0903 to

3-14 598.0999, inclusive.

3-15 Sec. 3. NRS 599B.010 is hereby amended to read as follows:

3-16 599B.010 As used in this chapter, unless the context otherwise

3-43 person represents or implies that he will, for a fee, recover any amount of

4-1 money that a consumer has provided to a seller or salesman pursuant to a

4-2 solicitation governed by the provisions of this chapter.

4-3 9. "Salesman" means any person:

4-4 (a) Employed or authorized by a seller to sell, or to attempt to sell,

4-5 goods or services by telephone;

4-6 (b) Retained by a seller to provide consulting services relating to the

4-7 management or operation of the seller’s business; or

4-8 (c) Who communicates on behalf of a seller with a consumer:

4-9 (1) In the course of a solicitation by telephone; or

4-10 (2) For the purpose of verifying, changing or confirming an order,

4-11 except that a person is not a salesman if his only function is to identify a

4-12 consumer by name only and he immediately refers the consumer to a

4-13 salesman.

4-14 10. Except as otherwise provided in subsection 11, "seller" means any

4-15 person who, on his own behalf, causes or attempts to cause a solicitation

4-16 by telephone to be made through the use of one or more salesmen or any

4-17 automated dialing announcing device under any of the following

4-18 circumstances:

4-19 (a) The person initiates contact by telephone with a consumer and

4-20 represents or implies:

4-21 (1) That a consumer who buys one or more goods or services will

4-22 receive additional goods or services, whether or not of the same type as

4-23 purchased, without further cost, except for actual postage or common

4-24 carrier charges;

4-25 (2) That a consumer will or has a chance or opportunity to receive a

4-26 premium;

4-27 (3) That the items for sale are gold, silver or other precious metals,

4-28 diamonds, rubies, sapphires or other precious stones, or any interest in oil,

4-29 gas or mineral fields, wells or exploration sites or any other investment

4-30 opportunity;

4-31 (4) That the product offered for sale is information or opinions

4-32 relating to sporting events;

4-33 (5) That the product offered for sale is the services of a recovery

4-34 service; or

4-35 (6) That the consumer will receive a premium or goods or services if

4-36 he makes a donation;

4-37 (b) The solicitation by telephone is made by the person in response to

4-38 inquiries from a consumer generated by a notification or communication

4-39 sent or delivered to the consumer that represents or implies:

4-40 (1) That the consumer has been in any manner specially selected to

4-41 receive the notification or communication or the offer contained in the

4-42 notification or communication;

5-1 (2) That the consumer will receive a premium if the recipient calls

5-2 the person;

5-3 (3) That if the consumer buys one or more goods or services from the

5-4 person, the consumer will also receive additional or other goods or

5-5 services, whether or not the same type as purchased, without further cost or

5-6 at a cost that the person represents or implies is less than the regular price

5-7 of the goods or services;

5-8 (4) That the product offered for sale is the services of a recovery

5-9 service; or

5-10 (5) That the consumer will receive a premium or goods or services if

5-11 he makes a donation; [or]

5-12 (c) The solicitation by telephone is made by the person in response to

5-13 inquiries generated by advertisements that represent or imply that the

5-14 person is offering to sell any:

5-15 (1) Gold, silver or other metals, including coins, diamonds, rubies,

5-16 sapphires or other stones, coal or other minerals or any interest in oil, gas

5-17 or other mineral fields, wells or exploration sites, or any other investment

5-18 opportunity;

5-19 (2) Information or opinions relating to sporting events; or

5-20 (3) Services of a recovery service [.

5-21 11. "Seller"] ; or

5-22 (d) The solicitation by telephone is made by a person who is

5-23 incarcerated in a correctional facility.

5-24 11. Except where a solicitation by telephone is made by a person who

5-25 is incarcerated in a correctional facility, "seller" does not include:

5-26 (a) A person licensed pursuant to chapter 90 of NRS when soliciting

5-27 offers, sales or purchases within the scope of his license.

5-28 (b) A person licensed pursuant to chapter 119A, 119B, 624, 645 or

5-29 696A of NRS when soliciting sales within the scope of his license.

5-30 (c) A person licensed as an insurance broker, agent or solicitor when

5-31 soliciting sales within the scope of his license.

5-32 (d) Any solicitation of sales made by the publisher of a newspaper or

5-33 magazine or by an agent of the publisher pursuant to a written agreement

5-34 between the agent and publisher.

5-35 (e) A broadcaster soliciting sales who is licensed by any state or federal

5-36 authority, if the solicitation is within the scope of the broadcaster’s license.

5-37 (f) A person who solicits a donation from a consumer when:

5-38 (1) The person represents or implies that the consumer will receive a

5-39 premium or goods or services with an aggregated fair market value of 2

5-40 percent of the donation or $50, whichever is less; or

5-41 (2) The consumer provides a donation of $50 or less in response to

5-42 the solicitation.

6-1 (g) A charitable organization which is registered or approved to conduct

6-2 a lottery pursuant to chapter 462 of NRS.

6-3 (h) A public utility or motor carrier which is regulated pursuant to

6-4 chapter 704 or 706 of NRS, or by an affiliate of such a utility or motor

6-5 carrier, if the solicitation is within the scope of its certificate or license.

6-6 (i) A utility which is regulated pursuant to chapter 710 of NRS, or by an

6-7 affiliate of such a utility.

6-8 (j) A person soliciting the sale of books, recordings, video cassettes,

6-9 software for computer systems or similar items through:

6-10 (1) An organization whose method of sales is governed by the

6-11 provisions of Part 425 of Title 16 of the Code of Federal Regulations

6-12 relating to the use of negative option plans by sellers in commerce;

6-13 (2) The use of continuity plans, subscription arrangements,

6-14 arrangements for standing orders, supplements, and series arrangements

6-15 pursuant to which the person periodically ships merchandise to a consumer

6-16 who has consented in advance to receive the merchandise on a periodic

6-17 basis and has the opportunity to review the merchandise for at least 10

6-18 days and return it for a full refund within 30 days after it is received; or

6-19 (3) An arrangement pursuant to which the person ships merchandise

6-20 to a consumer who has consented in advance to receive the merchandise

6-21 and has the opportunity to review the merchandise for at least 10 days and

6-22 return it for a full refund within 30 days after it is received.

6-23 (k) A person who solicits sales by periodically publishing and

6-24 delivering a catalog to consumers if the catalog:

6-25 (1) Contains a written description or illustration of each item offered

6-26 for sale and the price of each item;

6-27 (2) Includes the business address of the person;

6-28 (3) Includes at least 24 pages of written material and illustrations;

6-29 (4) Is distributed in more than one state; and

6-30 (5) Has an annual circulation by mailing of not less than 250,000.

6-31 (l) A person soliciting without the intent to complete and who does not

6-32 complete, the sales transaction by telephone but completes the sales

6-33 transaction at a later face-to-face meeting between the solicitor and the

6-34 consumer, if the person, after soliciting a sale by telephone, does not cause

6-35 another person to collect the payment from or deliver any goods or

6-36 services purchased to the consumer.

6-37 (m) Any commercial bank, bank holding company, subsidiary or

6-38 affiliate of a bank holding company, trust company, savings and loan

6-39 association, credit union, industrial loan company, personal property

6-40 broker, consumer finance lender, commercial finance lender, or insurer

6-41 subject to regulation by an official or agency of this state or of the United

6-42 States, if the solicitation is within the scope of the certificate or license

6-43 held by the entity.

7-1 (n) A person holding a certificate of authority issued pursuant to chapter

7-2 452 of NRS when soliciting sales within the scope of the certificate.

7-3 (o) A person licensed pursuant to chapter 689 of NRS when soliciting

7-4 sales within the scope of his license.

7-5 (p) A person soliciting the sale of services provided by a community

7-6 antenna television company subject to regulation pursuant to chapter 711

7-7 of NRS.

7-8 (q) A person soliciting the sale of agricultural products, if the

7-9 solicitation is not intended to and does not result in a sale of more than

7-10 $100 that is to be delivered to one address. As used in this paragraph,

7-11 "agricultural products" has the meaning ascribed to it in NRS 587.290.

7-12 (r) A person who has been operating, for at least 2 years, a retail

7-13 business establishment under the same name as that used in connection

7-14 with the solicitation of sales by telephone if, on a continuing basis:

7-15 (1) Goods are displayed and offered for sale or services are offered

7-16 for sale and provided at the person’s business establishment; and

7-17 (2) At least 50 percent of the person’s business involves the buyer

7-18 obtaining such goods or services at the person’s business establishment.

7-19 (s) A person soliciting only the sale of telephone answering services to

7-20 be provided by the person or his employer.

7-21 (t) A person soliciting a transaction regulated by the Commodity

7-22 Futures Trading Commission, if:

7-23 (1) The person is registered with or temporarily licensed by the

7-24 Commission to conduct that activity pursuant to the Commodity Exchange

7-25 Act (7 U.S.C. §§ 1 et seq.); and

7-26 (2) The registration or license has not expired or been suspended or

7-27 revoked.

7-28 (u) A person who contracts for the maintenance or repair of goods

7-29 previously purchased from the person:

7-30 (1) Making the solicitation; or

7-31 (2) On whose behalf the solicitation is made.

7-32 (v) A person to whom a license to operate an information service or a

7-33 nonrestricted gaming license, which is current and valid, has been issued

7-34 pursuant to chapter 463 of NRS when soliciting sales within the scope of

7-35 his license.

7-36 (w) A person who solicits a previous customer of the business on whose

7-37 behalf the call is made if the person making the call:

7-38 (1) Does not offer the customer any premium in connection with the

7-39 sale;

7-40 (2) Is not selling an investment or an opportunity for an investment

7-41 that is not registered with any state or federal authority; and

7-42 (3) Is not regularly engaged in telephone sales.

7-43 (x) A person who solicits the sale of livestock.

8-1 (y) An issuer which has a class of securities that is listed on the New

8-2 York Stock Exchange, the American Stock Exchange or the National

8-3 Market System of the National Association of Securities Dealers

8-4 Automated Quotation System.

8-5 (z) A subsidiary of an issuer that qualifies for exemption pursuant to

8-6 paragraph (y) if at least 60 percent of the voting power of the shares of the

8-7 subsidiary is owned by the issuer.

8-8 Sec. 4. NRS 599B.170 is hereby amended to read as follows:

8-9 599B.170 1. During any solicitation or sales presentation made by

8-34 accurately reflects the actual number of premiums that will be awarded.

8-35 Sec. 5. The amendatory provisions of this act do not apply to offenses

8-36 that are committed before the effective date of this act.

8-37 Sec. 6. This act becomes effective upon passage and approval.