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. Chapter 482 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 7, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 7, inclusive, of this act, unless the

1-14 owner or lienholder in the vehicle, whether or not for compensation.

2-1 Sec. 5. "Consignment contract" means a written agreement between

2-2 a registered owner or lienholder of a vehicle and a consignee to whom

2-3 the vehicle has been entrusted by consignment for the purpose of sale

2-4 that specifies the terms and conditions of the consignment and sale.

2-5 Sec. 6. A consignment contract must include, without limitation:

2-6 1. The names of the consignor and consignee;

2-7 2. The date on which the consignment contract was entered into;

2-8 3. A complete description of the vehicle subject to the consignment

2-9 contract, including the vehicle identification number, the year, make and

2-10 model of the vehicle, and the number of miles registered on the odometer

2-11 of the vehicle at the time that the consignment contract is entered into;

2-12 4. The term of the consignment contract;

2-13 5. The name of each person or business entity holding any security

2-14 interest in the vehicle to be consigned;

2-15 6. The minimum sales price for the vehicle and the disposition of the

2-16 proceeds therefrom, as agreed upon by the consignor and consignee; and

2-17 7. The signatures of the consignor and consignee acknowledging all

2-18 the terms and conditions set forth in the consignment contract.

2-19 Sec. 7. 1. A consignee of a vehicle shall, upon entering into a

2-20 consignment contract or other form of agreement to sell a vehicle owned

2-21 by another person, open and maintain a separate trust account in a

2-22 federally insured bank or savings and loan association that is located in

2-23 this state, into which the consignee shall deposit all money received from

2-24 a prospective buyer as a deposit, or as partial or full payment of the

2-25 purchase price agreed upon, toward the purchase or transfer of interest

2-26 in the vehicle. A consignee of a vehicle shall not:

2-27 (a) Commingle the money in the trust account with any other money

2-28 that is not on deposit or otherwise maintained toward the purchase of the

2-29 vehicle subject to the consignment contract or agreement; or

2-30 (b) Use any money in the trust account to pay his operational

2-31 expenses for any purpose that is not related to the consignment contract

2-32 or agreement.

2-33 2. Upon the sale or transfer of interest in the vehicle, the consignee

2-34 shall forthwith:

2-35 (a) Satisfy or cause to be satisfied all outstanding security interests in

2-36 the vehicle; and

2-37 (b) Satisfy the financial obligations due the consignor pursuant to the

2-38 consignment contract.

2-39 3. Upon the receipt of money by delivery of cash, bank check or

2-40 draft, or any other form of legal monetary exchange, or after any form of

2-41 transfer of interest in a vehicle, the consignee shall notify the consignor

2-42 that the money has been received or that a transfer of interest in the

2-43 vehicle has occurred. Notification by the consignee to the consignor must

3-1 be given in person or, in the absence of the consignor, by registered or

3-2 certified mail addressed to the last address or residence of the consignor

3-3 known to the consignee. The notification must be made within 3 business

3-4 days after the date on which the money is received or the transfer of

3-5 interest in the vehicle is made.

3-6 4. The provisions of this section do not apply to an executor, an

3-7 administrator, a sheriff or any other person who sells a vehicle pursuant

3-8 to the powers or duties granted to or imposed on him by specific statute.

3-9 5. Notwithstanding any provision of NRS 482.423 to 482.4245,

3-10 inclusive, to the contrary, a vehicle subject to a consignment contract

3-11 may not be operated by the consignee, an employee or agent of the

3-12 consignee, or a prospective buyer in accordance with NRS 482.423 to

3-13 482.4245, inclusive, by displaying a special permit to operate the vehicle

3-14 unless such operation of the vehicle is authorized by the express written

3-15 consent of the consignor.

3-16 6. A vehicle subject to a consignment contract may not be operated

3-17 by the consignee, an employee or agent of the consignee, or a prospective

3-18 buyer in accordance with NRS 482.320 by displaying a special plate

3-19 unless such operation of the vehicle is authorized by the express written

3-20 consent of the consignor.

3-21 7. A consignee shall maintain a written log for each vehicle for

3-22 which he has entered into a consignment contract. The written log must

3-23 include:

3-24 (a) The name and address, or place of residence, of the consignor;

3-25 (b) A description of the vehicle consigned, including the year, make,

3-26 model and serial or identification number of the vehicle;

3-27 (c) The date on which the consignment contract is entered into;

3-28 (d) The period that the vehicle is to be consigned;

3-29 (e) The minimum agreed upon sales price for the vehicle;

3-30 (f) The approximate amount of money due any lienholder or other

3-31 person known to have an interest in the vehicle;

3-32 (g) If the vehicle is sold, the date on which the vehicle is sold;

3-33 (h) The date that the money due the consignor and the lienholder was

3-34 paid;

3-35 (i) The name and address of the federally insured bank or savings and

3-36 loan association in which the consignee opened the trust account

3-37 required pursuant to subsection 1; and

3-38 (j) The signature of the consignor acknowledging that the terms of the

3-39 consignment contract were fulfilled or terminated, as appropriate.

3-40 8. A person who:

3-41 (a) Appropriates, diverts or otherwise converts to his own use money

3-42 in a trust account opened pursuant to subsection 1 or otherwise subject to

3-43 a consignment contract or agreement is guilty of embezzlement and shall

4-1 be punished in accordance with NRS 205.300. The court shall, in

4-2 addition to any other penalty, order the person to pay restitution.

4-3 (b) Violates any other provision of this section is guilty of a

4-4 misdemeanor.

4-5 Sec. 8. NRS 482.320 is hereby amended to read as follows:

4-6 482.320 1. [A] Except as otherwise provided in section 7 of this act,

4-30 for a manufacturer, distributor, dealer or rebuilder for services performed.

4-31 Sec. 9. The amendatory provisions of this act do not apply to offenses

4-32 that are committed before the effective date of this act.

4-33 Sec. 10. This act becomes effective upon passage and approval.