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 78 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 12, inclusive, of this act.

1-3 Sec. 2. 1. As used in sections 2 to 12, inclusive, of this act, unless

1-4 the context otherwise requires, "commercial resident agent" means a

1-5 resident agent who, as part of a business or other commercial enterprise,

1-6 forms or assists in forming more than 50 corporations per year pursuant

1-7 to the provisions of this chapter and who:

1-8 (a) Provides or maintains a registered office for any of those

1-9 corporations;

1-10 (b) Conducts seminars or promotional workshops concerning the

1-11 desirability or benefits of forming a corporation in this state; or

1-12 (c) Provides financial, investment or other advice or materials to a

1-13 corporation or person who wishes to form a corporation in this state.

2-1 2. The term includes an employee of such a resident agent if the

2-2 employee is responsible for forming a corporation pursuant to the

2-3 provisions of this chapter or for obtaining and distributing information

2-4 through any medium, including, without limitation, advertisements,

2-5 communications by telephone, mail, seminars or workshops, concerning

2-6 the desirability or benefits of forming a corporation pursuant to the

2-7 provisions of this chapter.

2-8 3. The term does not include:

2-9 (a) A resident agent for a profession, occupation or business that is

2-10 subject to regulation pursuant to the provisions of Title 54 of NRS; or

2-11 (b) An attorney licensed to practice law in this state.

2-12 Sec. 3. It is unlawful for a person to engage in business as, act in the

2-13 capacity of or hold himself out as a commercial resident agent within this

2-14 state without first obtaining a license to engage in business as a

2-15 commercial resident agent from the secretary of state.

2-16 Sec. 4. A license issued pursuant to the provisions of this chapter is

2-17 a revocable privilege, and the holder of the license does not thereby

2-18 acquire any vested right.

2-19 Sec. 5. 1. Each person desiring a license to engage in business as a

2-20 commercial resident agent must:

2-21 (a) File an application with the secretary of state on a form furnished

2-22 by the secretary of state. The application must be accompanied by a

2-23 nonrefundable fee of:

2-24 (1) One hundred dollars, if the applicant is an employee of a

2-25 commercial resident agent who performs the duties set forth in

2-26 subsection 2 of section 2 of this act; or

2-27 (2) One thousand dollars for all other applicants.

2-28 (b) Except as otherwise provided in paragraph (c), deposit with the

2-29 secretary of state a bond executed by the applicant as principal, and by a

2-30 corporation qualified under the laws of this state as surety, payable to the

2-31 State of Nevada in the amount of $1,000,000, and conditioned upon the

2-32 proper performance of his duties.

2-33 (c) In lieu of the bond required by paragraph (b), submit evidence

2-34 sufficient to the secretary of state that the applicant has been issued a

2-35 policy of insurance in a form approved by the secretary of state which

2-36 provides adequate coverage for any loss, injury or other damage which

2-37 may be caused by the applicant in his capacity as a commercial resident

2-38 agent.

2-39 (d) Submit the statement required pursuant to section 7 of this act.

2-40 2. The secretary of state shall grant an application for a license to

2-41 any applicant who complies with the provisions of this section.

3-1 Sec. 6. An application for a license to engage in business as a

3-2 commercial resident agent must include the social security number of the

3-3 applicant.

3-4 Sec. 7. 1. An applicant for the issuance or renewal of a license to

3-5 engage in business as a commercial resident agent must submit to the

3-6 secretary of state the statement prescribed by the welfare division of the

3-7 department of human resources pursuant to NRS 425.520. The statement

3-8 must be completed and signed by the applicant.

3-9 2. The secretary of state shall include the statement required

3-10 pursuant to subsection 1 in:

3-11 (a) The application or any other forms that must be submitted for the

3-12 issuance or renewal of the license; or

3-13 (b) A separate form prescribed by the secretary of state.

3-14 3. A license may not be issued or renewed by the secretary of state if

3-15 the applicant:

3-16 (a) Fails to submit the statement required pursuant to subsection 1; or

3-17 (b) Indicates on the statement submitted pursuant to subsection 1 that

3-18 he is subject to a court order for the support of a child and is not in

3-19 compliance with the order or a plan approved by the district attorney or

3-20 other public agency enforcing the order for the repayment of the amount

3-21 owed pursuant to the order.

3-22 4. If an applicant indicates on the statement submitted pursuant to

3-23 subsection 1 that he is subject to a court order for the support of a child

3-24 and is not in compliance with the order or a plan approved by the district

3-25 attorney or other public agency enforcing the order for the repayment of

3-26 the amount owed pursuant to the order, the secretary of state shall advise

3-27 the applicant to contact the district attorney or other public agency

3-28 enforcing the order to determine the actions that the applicant may take

3-29 to satisfy the arrearage.

3-30 Sec. 8. 1. If the secretary of state receives a copy of a court order

3-31 issued pursuant to NRS 425.540 that provides for the suspension of all

3-32 professional, occupational and recreational licenses, certificates and

3-33 permits issued to a licensee, the secretary of state shall deem the license

3-34 to be suspended at the end of the 30th day after the date the court order

3-35 was issued unless the secretary of state receives a letter issued to the

3-36 licensee by the district attorney or other public agency pursuant to NRS

3-37 425.550 stating that the licensee has complied with the subpoena or

3-38 warrant or has satisfied the arrearage pursuant to NRS 425.560.

3-39 2. The secretary of state shall reinstate a license that has been

3-40 suspended by a district court pursuant to NRS 425.540 if the secretary of

3-41 state receives a letter issued by the district attorney or other public agency

4-1 pursuant to NRS 425.550 to the licensee stating that the licensee has

4-2 complied with the subpoena or warrant or has satisfied the arrearage

4-3 pursuant to NRS 425.560.

4-4 Sec. 9. The secretary of state shall:

4-5 1. Receive any complaints or reports of violations of the provisions of

4-6 this chapter relating to:

4-7 (a) A commercial resident agent or an employee of such an agent; or

4-8 (b) Fraudulent or unethical activities of the agent or employee; and

4-9 2. Refer such complaints or reported violations to the attorney

4-10 general for investigation and prosecution.

4-11 Sec. 10. 1. A commercial resident agent shall, in any printed

4-12 promotional materials, advertisements, communications by telephone,

4-13 mailings, seminars or workshops, provide a statement indicating whether

4-14 the office of the agent is the registered office of the corporation for which

4-15 he is a resident agent and whether the officers of that corporation

4-16 maintain regular office hours at that office.

4-17 2. A commercial resident agent shall submit to the secretary of state

4-18 quarterly reports specifying each corporation for which he was a resident

4-19 agent for the immediately preceding quarter. The reports must be

4-20 submitted at such times as are designated by the secretary of state.

4-21 Sec. 11. 1. A commercial resident agent who:

4-22 (a) Violates a fiduciary duty owed to a person in his capacity as a

4-23 commercial resident agent;

4-24 (b) Uses a device, scheme or artifice in any manner or engages in an

4-25 activity, practice or course of conduct that constitutes fraud or deceit;

4-26 (c) Is grossly negligent in providing financial, investment or other

4-27 advice or materials to a corporation or person who wishes to form a

4-28 corporation in this state; or

4-29 (d) Violates a statute or regulation relating to the duties of a resident

4-30 agent,

4-31 is liable in a civil action for damages for economic loss, including,

4-32 without limitation, costs and attorney’s fees, to any person who incurs

4-33 such damages.

4-34 2. If a final judgment is entered against a commercial resident agent

4-35 pursuant to this section, or if a commercial resident agent violates any

4-36 provision of this chapter or any regulation adopted pursuant thereto, the

4-37 secretary of state shall suspend the license of that agent for a period to be

4-38 determined by the secretary of state. The license may be reinstated upon

4-39 the payment of a fee in an amount to be determined by the secretary of

4-40 state.

4-41 Sec. 12. The secretary of state shall adopt such regulations as are

4-42 necessary to carry out the provisions of sections 2 to 11, inclusive, of this

4-43 act.

5-1 Sec. 13. Section 5 of this act is hereby amended to read as follows:

5-2 Sec. 5. 1. Each person desiring a license to engage in

5-3 business as a commercial resident agent must:

5-4 (a) File an application with the secretary of state on a form

5-5 furnished by the secretary of state. The application must be

5-6 accompanied by a nonrefundable fee of:

5-7 (1) One hundred dollars, if the applicant is an employee of a

5-8 commercial resident agent who performs the duties set forth in

5-9 subsection 2 of section 2 of this act; or

5-10 (2) One thousand dollars for all other applicants.

5-11 (b) Except as otherwise provided in paragraph (c), deposit with

5-12 the secretary of state a bond executed by the applicant as principal,

5-13 and by a corporation qualified under the laws of this state as surety,

5-14 payable to the State of Nevada in the amount of $1,000,000, and

5-15 conditioned upon the proper performance of his duties.

5-16 (c) In lieu of the bond required by paragraph (b), submit

5-17 evidence sufficient to the secretary of state that the applicant has

5-18 been issued a policy of insurance in a form approved by the

5-19 secretary of state which provides adequate coverage for any loss,

5-20 injury or other damage which may be caused by the applicant in his

5-21 capacity as a commercial resident agent.

5-22 [(d) Submit the statement required pursuant to section 7 of this

5-23 act.]

5-24 2. The secretary of state shall grant an application for a license

5-25 to any applicant who complies with the provisions of this section.

5-26 Sec. 14. Notwithstanding the provisions of sections 2 to 12, inclusive,

5-27 of this act, a person is not required to be licensed as a commercial resident

5-28 agent pursuant to the provisions of this act before January 1, 2000.

5-29 Sec. 15. The amendatory provisions of this act do not apply to

5-30 offenses that were committed before October 1, 1999.

5-31 Sec. 16. 1. This section and sections 1 to 12, inclusive, and 14 and

5-32 15 of this act become effective on October 1, 1999.

5-33 2. Section 13 of this act becomes effective on the date on which the

5-34 provisions of 42 U.S.C. § 666 requiring each state to establish procedures

5-35 under which the state has authority to withhold or suspend, or to restrict

5-36 the use of professional, occupational and recreational licenses of person

5-37 who:

5-38 (a) Have failed to comply with a subpoena or warrant relating to a

5-39 procedure to determine the paternity of a child or to establish or enforce an

5-40 obligation for the support of a child; or

5-41 (b) Are in arrears in the payment for the support of one or more

5-42 children,

5-43 are repealed by the Congress of the United States.

6-1 3. Sections 6, 7 and 8 of this act expire by limitation on the date on

6-2 which the provisions of 42 U.S.C. § 666 requiring each state to establish

6-3 procedures under which the state has authority to withhold or suspend, or

6-4 to restrict the use of professional, occupational and recreational licenses of

6-5 persons who:

6-6 (a) Have failed to comply with a subpoena or warrant relating to a

6-7 procedure to determine the paternity of a child or to establish or enforce an

6-8 obligation for the support of a child; or

6-9 (b) Are in arrears in the payment for the support of one or more

6-10 children,

6-11 are repealed by the Congress of the United States.