Amendment No. 679

Assembly Amendment to Assembly Bill No. 431 (BDR 52-182)

Proposed by: Committee on Commerce and Labor

Amendment Box: Replaces Amendment No. 603.

Resolves Conflicts with: N/A

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend sec. 12, page 6, line 3, after "of the" by inserting:

"location where the loan is made, the name of the".

Amend sec. 12, page 6, by deleting line 13 and inserting:

"signature, in at least 14-point bold type that states: "You may be held liable in a civil action for collection of this deferred deposit. You cannot be".

Amend sec. 13, page 6, by deleting lines 19 and 20 and inserting:

"1. Informing borrowers that a borrower may be held liable in a civil action to collect a loan made in the form of a deferred deposit, but that criminal prosecution cannot be used to collect such a loan; and".

Amend sec. 14, page 6, by deleting lines 28 through 43 and inserting:

"Sec. 14. If a check is not paid upon presentment because of insufficient funds, the registrant may collect a fee of not more than $25. Only one such fee may be charged, regardless of the number of times the check is presented for payment.".

Amend the bill as a whole by adding a new section designated sec. 14.5, following sec. 14, to read as follows:

"Sec. 14.5. 1. If a borrower defaults on a loan made in the form of a deferred deposit, the registrant shall, upon default, offer to enter into an agreement with the borrower for repayment of the amount due. The agreement must provide for the repayment of the amount due within 60 days after the default, without any further charges or interest.

2. If the borrower refuses to enter into such an agreement or defaults on such an agreement, the registrant may convert the debt to a loan for an indefinite term. The amount of the loan for an indefinite term must not exceed the amount previously due, including accrued charges and interest. Interest may be charged on the loan for an indefinite term at a rate equal to or less than the prime rate at the largest bank in the State of Nevada, as ascertained by the commissioner on January 1 or July 1, as the case may be, immediately preceding the date of default, plus 10 percent.".

Amend sec. 15, page 7, line 6, by deleting "one-fourth" and inserting "one-third".

Amend sec. 15, page 7, by deleting lines 12 through 15 and inserting:

"same borrower at one time or make such a loan to a borrower who has two or more".

Amend sec. 15, page 7, by deleting lines 17 through 21 and inserting:

"5. Establish or extend the period for the repayment, renewal, refinancing or consolidation of an outstanding loan made in the form of a deferred deposit to the same borrower beyond 6 weeks after the expiration of the initial loan period.".

Amend the bill as a whole by renumbering sections 16 through 20 as sections 17 through 21 and adding a new section designated sec. 16, following sec. 15, to read as follows:

"Sec. 16. NRS 604.090 is hereby amended to read as follows:

604.090 1. Except as otherwise provided in subsection 2, it is unlawful to operate a check-cashing or deferred deposit service without being registered with the commissioner.

2. The provisions of this chapter do not apply to:

(a) A person doing business pursuant to the authority of any law of this state or of the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions, development corporations, mortgage companies, thrift companies, pawnbrokers or insurance companies.

(b) [A person licensed to make installment loans pursuant to chapter 675 of NRS.

(c)] A person who is primarily engaged in the retail sale of goods or services who:

(1) As an incident to or independently of a retail sale or service from time to time cashes checks for a fee or other consideration of not more than $2; and

(2) Does not hold himself out as a check-cashing service.

[(d)] (c) A person while performing any act authorized by a license issued pursuant to chapter 671 of NRS.

[(e)] (d) A person who holds a nonrestricted gaming license issued pursuant to chapter 463 of NRS while performing any act in the course of that licensed operation.

[(f)] (e) A person who is exclusively engaged in a check-cashing service relating to out-of-state checks.

[(g)] (f) A corporation organized pursuant to the laws of this state that has been continuously and exclusively engaged in a check-cashing service in this state since July 1, 1973.".

Amend the bill as a whole by adding new sections designated sections 22 through 24, following sec. 20, to read as follows:

"Sec. 22. Chapter 675 of NRS is hereby amended by adding thereto a new section to read as follows:

1. A licensee shall not make a loan in the form of a deferred deposit unless the licensee is registered pursuant to chapter 604 of NRS.

2. As used in this section, "deferred deposit" has the meaning ascribed to it in NRS 604.060.

Sec. 23. NRS 675.470 is hereby amended to read as follows:

675.470 Any person and the several members, officers, directors, agents and employees thereof who violate or participate in the violation of any provision of NRS 675.060 or section 22 of this act are guilty of a misdemeanor.

Sec. 24. The amendatory provisions of section 23 of this act do not apply to offenses that were committed before October 1, 1999.".

Amend the title of the bill to read as follows:

"AN ACT relating to the protection of certain persons in commercial transactions; providing additional deceptive trade practices; revising the provisions regarding loans in the form of deferred deposits; extending the exemption of workers’ compensation benefits from creditors; providing a penalty; and providing other matters properly relating thereto.".