Senate Bill No. 125–Committee on Judiciary

(On Behalf of State Treasurer)

February 4, 1999

____________

Referred to Committee on Judiciary

 

SUMMARY—Transfers duties of division of unclaimed property of department of business and industry to secretary of state. (BDR 10-996)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

~

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 unclaimed property; abolishing the division of unclaimed property of the department of business and industry; transferring the duties of the division to the secretary of state; 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 120A.025 is hereby amended to read as follows:

1-2 120A.025 "Administrator" means the [chief of the division] secretary

1-3 of state in his capacity as the administrator of unclaimed property.

1-4 Sec. 2. NRS 120A.145 is hereby amended to read as follows:

1-5 120A.145 The administrator or any officer, agent or employee of the

1-6 [division] office of the secretary of state shall not use or disclose any

1-7 information received by the administrator in the course of carrying out the

1-8 provisions of this chapter which is confidential or which is provided to the

1-9 [division] administrator on the basis that the information is to remain

1-10 confidential, unless the use or disclosure of the information is necessary to

1-11 locate the owner of unclaimed or abandoned property.

1-12 Sec. 3. NRS 120A.250 is hereby amended to read as follows:

1-13 120A.250 1. [Every] A person holding money or other property

1-14 presumed abandoned under this chapter shall make a verified report to the

1-15 [division] administrator with respect to the property.

1-16 2. The report must include:

2-1 (a) Except with respect to traveler’s checks and money orders, the name,

2-2 if known, and last known address, if any, of each person appearing from the

2-3 records of the holder to be the owner of any property of the value of $50 or

2-4 more presumed abandoned under this chapter.

2-5 (b) In the case of unclaimed money held by an insurance company, the

2-6 full name of the insured or annuitant and his last known address according

2-7 to the corporation’s records.

2-8 (c) The nature and identifying number, if any, or description of the

2-9 property and the amount appearing from the records to be due, except that

2-10 items of value under $50 each may be reported in the aggregate.

2-11 (d) The date when the property became payable, demandable or

2-12 returnable and the date of the last transaction with the owner with respect to

2-13 the property.

2-14 (e) Other information which the administrator prescribes by regulation

2-15 as necessary for the administration of this chapter.

2-16 3. If the person holding property presumed abandoned is a successor to

2-17 other persons who previously held the property for the owner, or if the

2-18 holder has changed his name while holding the property, he shall file with

2-19 his report all prior known names and addresses of each holder of the

2-20 property.

2-21 4. The report must be filed before November 1 of each year for the

2-22 preceding fiscal year ending June 30 , except that the report of an insurance

2-23 company must be filed before May 1 of each year for the preceding

2-24 calendar year. The administrator may, in writing, postpone the reporting

2-25 date upon written request by any person required to file a report.

2-26 5. Verification of the report, if made by:

2-27 (a) A partnership, must be executed by a partner.

2-28 (b) An unincorporated association or private corporation, must be

2-29 executed by an officer.

2-30 (c) A public entity or corporation, must be executed by its chief fiscal

2-31 officer.

2-32 Sec. 4. NRS 120A.280 is hereby amended to read as follows:

2-33 120A.280 1. Within 180 days after the filing of the report required

2-34 by NRS 120A.250 and the payment or delivery of the property required by

2-35 NRS [120A.360,] 120A.320, the administrator shall cause notice to be

2-36 published in at least one newspaper of general circulation in the county in

2-37 this state in which is located the last known address of any person to be

2-38 named in the notice. If no address is listed or if the address is outside this

2-39 state, the notice must be published in the county in which the holder of the

2-40 abandoned property has his principal place of business within this state.

2-41 2. The published notice must be entitled "Notice of Names of Persons

2-42 Appearing To Be Owners of Abandoned Property," and must contain:

3-1 (a) The names in alphabetical order and last known addresses, if any, of

3-2 persons listed in the report and entitled to notice within the county.

3-3 (b) A statement that information concerning the amount or description

3-4 of the property and the name and address of the holder may be obtained by

3-5 any person possessing an interest in the property by addressing an inquiry

3-6 to the [division.] administrator.

3-7 (c) If the property was removed from a safe-deposit box or other

3-8 safekeeping repository, a statement declaring that the administrator will

3-9 hold the property for 1 year after the date the property was delivered to the

3-10 [division,] administrator, and that the property may be destroyed if no

3-11 claims are made for it within that period.

3-12 3. The administrator is not required to publish in the notice any item

3-13 valued at less than $50 unless he deems the publication to be in the public

3-14 interest.

3-15 4. In addition to the notice required to be published pursuant to this

3-16 section, the administrator shall take such actions as are reasonably

3-17 calculated to give actual notice to the owner of property presumed

3-18 abandoned, including, without limitation, using information obtained from

3-19 the department of motor vehicles and public safety and other governmental

3-20 agencies or executing contracts with private businesses to assist in locating

3-21 such owners of property.

3-22 Sec. 5. NRS 120A.310 is hereby amended to read as follows:

3-23 120A.310 No service, handling, maintenance or other charge or fee

3-24 may be deducted or withheld from any property subject to this chapter if,

3-25 under the holder’s policy or practice, the holder would not have excluded,

3-26 withheld or deducted such a charge or fee if the property had been claimed

3-27 by the owner before it was paid or delivered to the [division.]

3-28 administrator.

3-29 Sec. 6. NRS 120A.320 is hereby amended to read as follows:

3-30 120A.320 1. Except as otherwise provided in subsection 3 and NRS

3-31 120A.160, [every] a person who files a report under NRS 120A.250 shall,

3-32 at the time of filing the report, pay or deliver to the [division]

3-33 administrator all abandoned property specified in [this] the report.

3-34 2. The holder of an interest under NRS 120A.190 shall deliver a

3-35 duplicate certificate or other evidence of ownership if the holder does not

3-36 issue certificates of ownership to the [division.] administrator. Upon

3-37 delivery of a duplicate certificate to the administrator, the holder and any

3-38 transfer agent, registrar, or other person acting for or on behalf of a holder

3-39 in executing or delivering the duplicate certificate is relieved of all liability

3-40 to every person, including any person acquiring the original certificate or

4-1 the duplicate of the certificate issued to the [division,] administrator, for

4-2 any losses or damages resulting to any person by the issuance and delivery

4-3 to the [division] administrator of the duplicate certificate.

4-4 3. Property which in all probability will be presumed abandoned

4-5 pursuant to NRS 120A.200 may, upon approval of the administrator, be

4-6 reported and delivered by the holder to the [division] administrator before

4-7 the date it is statutorily presumed abandoned.

4-8 Sec. 7. NRS 120A.330 is hereby amended to read as follows:

4-9 120A.330 Except for property that was removed from a safe-deposit

4-10 box, the administrator may decline to receive any abandoned property

4-11 which he deems to have a value less than the cost of giving notice and

4-12 holding a sale, or he may, if he deems it desirable because of the small sum

4-13 involved, postpone taking possession until a sufficient sum accumulates.

4-14 Unless [it] he gives notice to the contrary at the time [it] he receives

4-15 abandoned property, the [division] administrator shall be deemed to have

4-16 elected to receive and maintain the custody of the property.

4-17 Sec. 8. NRS 120A.340 is hereby amended to read as follows:

4-18 120A.340 1. Upon the payment or delivery to [it] him of abandoned

4-19 property, the [division] administrator shall assume custody of the property

4-20 and is thereafter responsible for its safekeeping.

4-21 2. Any person who pays or delivers abandoned property to the

4-22 [division] administrator under this chapter is relieved of all liability to the

4-23 extent of the value of the property so paid or delivered for any claim which

4-24 then exists or which thereafter may arise or be made in respect to the

4-25 property.

4-26 3. Any holder who has paid money to the [division] administrator

4-27 pursuant to this chapter may make payment to any person appearing to the

4-28 holder to be entitled thereto, and if the holder files with the [division]

4-29 administrator proof of such payment and proof that the payee was entitled

4-30 thereto, the [division] administrator shall forthwith reimburse the holder

4-31 for the payment, without charge. [Where] If reimbursement is sought for a

4-32 payment made on a negotiable instrument , [(] including a traveler’s check

4-33 or money order [), the division] , the administrator shall reimburse the

4-34 holder upon his filing proof that the instrument was presented to him and

4-35 that payment was made thereon to a person who appeared to the holder to

4-36 be entitled to payment.

4-37 4. If the holder pays or delivers property to the [division]

4-38 administrator in accordance with this chapter and thereafter any person

4-39 claims the property from the holder, or another state claims the property

4-40 from the holder under that state’s laws, the attorney general shall, upon

4-41 written request of the holder, defend him against the claim , and the

4-42 administrator shall indemnify him against [any] all liability on the claim.

5-1 5. Property removed from a safe-deposit box or other safekeeping

5-2 repository is received by the administrator subject to the holder’s right to

5-3 be reimbursed for the actual cost of the opening and to any valid lien or

5-4 contract providing for the holder to be reimbursed for unpaid rent or

5-5 storage charges. The administrator shall reimburse or pay the holder out of

5-6 the proceeds remaining after deducting the administrator’s selling cost.

5-7 Sec. 9. NRS 120A.350 is hereby amended to read as follows:

5-8 120A.350 [When] If property other than money is paid or delivered to

5-9 the [division] administrator under this chapter, the owner is entitled to

5-10 receive from the [division] administrator any dividends, interest or other

5-11 increments realized or accruing on the property at or before liquidation or

5-12 conversion thereof into money.

5-13 Sec. 10. NRS 120A.360 is hereby amended to read as follows:

5-14 120A.360 1. Except as otherwise provided in subsections 4, 5 and 6,

5-15 all abandoned property other than money delivered to the [division]

5-16 administrator under this chapter must, within 1 year after the delivery, be

5-17 sold by the administrator to the highest bidder at public sale in whatever

5-18 city in the state affords in his judgment the most favorable market for the

5-19 property involved. The administrator may decline the highest bid and

5-20 reoffer the property for sale if he considers the price bid insufficient.

5-21 2. Any sale held under this section must be preceded by a single

5-22 publication of notice thereof at least 2 weeks in advance of the sale in a

5-23 newspaper of general circulation in the county where the property is to be

5-24 sold.

5-25 3. The purchaser at any sale conducted by the administrator pursuant to

5-26 this chapter is vested with title to the property purchased, free from all

5-27 claims of the owner or prior holder and of all persons claiming through or

5-28 under them. The administrator shall execute all documents necessary to

5-29 complete the transfer of title.

5-30 4. The administrator need not offer any property for sale if , in his

5-31 opinion , the probable cost of the sale exceeds the value of the property.

5-32 The administrator may destroy or otherwise dispose of such property or

5-33 may transfer it to:

5-34 (a) The Nevada museum and historical society, the Nevada state

5-35 museum or the Nevada historical society, upon its written request, if the

5-36 property has, in the opinion of the requesting institution, historical, artistic

5-37 or literary value and is worthy of preservation; or

5-38 (b) A genealogical library, upon its written request, if the property has

5-39 genealogical value and is not wanted by the Nevada museum and historical

5-40 society, the Nevada state museum or the Nevada historical society.

5-41 An action may not be maintained by any person against the holder of the

5-42 property because of that transfer, disposal or destruction.

6-1 5. Securities listed on an established stock exchange must be sold at the

6-2 prevailing price for that security on the exchange at the time of sale. Other

6-3 securities not listed on an established stock exchange may be sold:

6-4 (a) Over the counter at the prevailing price for that security at the time

6-5 of sale; or

6-6 (b) By any other method the administrator deems acceptable.

6-7 6. The administrator shall hold property that was removed from a safe-

6-8 deposit box or other safekeeping repository for 1 year after the date of the

6-9 delivery of the property to the [division,] administrator, unless that

6-10 property is a will or a codicil to a will, in which case the administrator shall

6-11 hold the property for 10 years after the date of the delivery of the property

6-12 to the [division.] administrator. If no claims are filed for the property

6-13 within that period, it may be destroyed.

6-14 Sec. 11. NRS 120A.370 is hereby amended to read as follows:

6-15 120A.370 1. There is hereby created in the state treasury the

6-16 abandoned property trust fund.

6-17 2. All money received by the [division] administrator under this

6-18 chapter, including the proceeds from the sale of abandoned property, must

6-19 be deposited by the administrator in the state treasury for credit to the

6-20 abandoned property trust fund.

6-21 3. Before making a deposit, the administrator shall record the name

6-22 and last known address of each person appearing from the holders’ reports

6-23 to be entitled to the abandoned property and of the name and last known

6-24 address of each insured person or annuitant, and with respect to each policy

6-25 or contract listed in the report of an insurance company, its number, the

6-26 name of the company and the amount due. The record must be available for

6-27 public inspection at all reasonable business hours.

6-28 4. The administrator may pay from money available in the abandoned

6-29 property trust fund:

6-30 (a) Any costs in connection with the sale of abandoned property.

6-31 (b) Any costs of mailing and publication in connection with any

6-32 abandoned property.

6-33 (c) Reasonable service charges.

6-34 (d) Any costs incurred in examining the records of a holder and in

6-35 collecting the abandoned property.

6-36 (e) Any valid claims filed pursuant to this chapter.

6-37 5. At the end of each fiscal year , the amount of the balance in the fund

6-38 in excess of $100,500 must be [deposited with the state treasurer for credit]

6-39 transferred to the state general fund , but remains subject to the valid

6-40 claims of holders pursuant to NRS 120A.340 or owners pursuant to NRS

6-41 120A.380.

7-1 6. If there is an insufficient amount of money in the abandoned

7-2 property trust fund to pay any cost or charge pursuant to subsection 4, the

7-3 state board of examiners may, upon the application of the administrator,

7-4 authorize a temporary transfer from the state general fund to the abandoned

7-5 property trust fund of an amount necessary to pay those costs or charges.

7-6 The administrator shall repay the amount of the transfer as soon as

7-7 sufficient money is available in the abandoned property trust fund.

7-8 Sec. 12. NRS 120A.400 is hereby amended to read as follows:

7-9 120A.400 Any person aggrieved by a decision of the administrator, or

7-10 as to whose claim the administrator has failed to render a decision within

7-11 90 days after the filing of the claim, may [do either of the following, or

7-12 both:

7-13 1. Request the director of the department of business and industry to

7-14 review the administrative record. The request must be made in writing and

7-15 must be filed with the director within 90 days after the decision of the

7-16 administrator or within 180 days after the filing of the claim. The decision

7-17 of the director constitutes the final decision in a contested case.

7-18 2. Commence] commence an action in the district court to establish his

7-19 claim. The proceeding must be brought within 90 days after the decision of

7-20 the administrator or within 180 days after the filing of the claim if the

7-21 administrator has failed to render a decision. The action must be tried

7-22 without a jury in cases where the administrator has failed to render a

7-23 decision.

7-24 Sec. 13. NRS 120A.405 is hereby amended to read as follows:

7-25 120A.405 1. Any agreement to locate, deliver, recover or assist in the

7-26 recovery of property presumed abandoned which is entered into by or on

7-27 behalf of the owner of the property must:

7-28 (a) Be in writing.

7-29 (b) Be signed by the owner.

7-30 (c) Include a description of the property.

7-31 (d) Include the value of the property.

7-32 (e) Include the name and address of the person in possession of the

7-33 property, if known.

7-34 2. [No such] Such an agreement is not valid unless it is executed:

7-35 (a) Before the date on which the property is reported to the [division]

7-36 administrator pursuant to NRS 120A.250; or

7-37 (b) Two years after the property has been paid or delivered to the

7-38 [division.

7-39 3. No] administrator.

7-40 3. A fee charged for the location, delivery, recovery or assistance in the

7-41 recovery of property presumed abandoned [may] must not be more than 10

7-42 percent of the total value of the property.

8-1 Sec. 14. NRS 120A.420 is hereby amended to read as follows:

8-2 120A.420 1. The [chief of the division of unclaimed property]

8-3 administrator may at reasonable times and upon reasonable notice examine

8-4 the records of any person if he has reason to believe that the person has

8-5 failed to report property which should have been reported pursuant to this

8-6 chapter.

8-7 2. To determine compliance with this chapter, the commissioner of

8-8 financial institutions may examine the records of any banking organization

8-9 and any savings and loan association doing business within this state but

8-10 not organized under the laws of or created in this state.

8-11 3. When requested by the [chief of the division of unclaimed property,]

8-12 administrator, any licensing or regulating agency otherwise empowered by

8-13 the laws of this state to examine the records of the holder shall include in its

8-14 examination a determination whether the holder has complied with the

8-15 provisions of this chapter.

8-16 Sec. 15. NRS 120A.430 is hereby amended to read as follows:

8-17 120A.430 If any person refuses to pay or deliver property to the

8-18 [division] administrator as required under this chapter, the attorney

8-19 general, upon request of the administrator, may bring an action in a court of

8-20 competent jurisdiction to enforce the payment or delivery. In such an

8-21 action, the court may award costs and reasonable attorney’s fees to the

8-22 prevailing party, and, if the [division] administrator is the prevailing party,

8-23 may impose a civil penalty against the losing party in an amount not to

8-24 exceed 2 percent of the value of the property, or $1,000, whichever is

8-25 greater.

8-26 Sec. 16. NRS 120A.440 is hereby amended to read as follows:

8-27 120A.440 1. Any person who willfully fails to make any report or

8-28 perform any other duty required under this chapter is guilty of a

8-29 misdemeanor. Each day such a report is withheld constitutes a separate

8-30 offense.

8-31 2. Any person who willfully refuses to pay or deliver abandoned

8-32 property to the [division] administrator as required under this chapter is

8-33 guilty of a gross misdemeanor.

8-34 Sec. 17. NRS 120A.450 is hereby amended to read as follows:

8-35 120A.450 1. Except as otherwise provided in subsection 2, in

8-36 addition to any penalties for which he may be liable, any person who fails

8-37 to report or to pay or deliver abandoned property within the time prescribed

8-38 by this chapter shall pay to the [division] administrator interest at the rate

8-39 of 18 percent per annum on the money or the value of other property from

8-40 the date on which the property should have been paid or delivered.

8-41 2. The administrator may waive [any] the right to the payment of

8-42 interest pursuant to this section if:

9-1 (a) The person otherwise obligated to make payment files with the

9-2 [division] administrator a verified statement of the facts, showing that his

9-3 failure to report or to make payment or delivery was not willful or negligent

9-4 but occurred because of circumstances beyond his control; and

9-5 (b) The administrator so finds.

9-6 Sec. 18. NRS 225.080 is hereby amended to read as follows:

9-7 225.080 The secretary of state shall:

9-8 1. Attest all the official acts and proceedings of the governor, and affix

9-9 the seal of the state, with proper attestations, to all commissions, pardons

9-10 and other public instruments to which the signature of the governor is

9-11 required. A copy of these instruments must be filed in the office of the

9-12 secretary of state.

9-13 2. Lay all papers, minutes and vouchers relative to the official acts and

9-14 proceedings of the governor before either house of the legislature when

9-15 required by that house.

9-16 3. Keep the official bond of the treasurer, while the bond is in force.

9-17 4. Permit all the records and transactions of his office to be open at all

9-18 times to the inspection and examination of any committee of either house of

9-19 the legislature.

9-20 5. Furnish information, in writing, upon any subject relating to the

9-21 duties of his office to the governor, whenever required.

9-22 6. Deliver, in good order and condition, to his successor, all records,

9-23 books, papers and other things belonging to his office.

9-24 7. Serve as the administrator of unclaimed property.

9-25 Sec. 19. NRS 232.510 is hereby amended to read as follows:

9-26 232.510 1. The department of business and industry is hereby

9-27 created.

9-28 2. The department consists of a director and the following:

9-29 (a) Consumer affairs division.

9-30 (b) Division of financial institutions.

9-31 (c) Housing division.

9-32 (d) Manufactured housing division.

9-33 (e) Real estate division.

9-34 (f) [Division of unclaimed property.

9-35 (g)] Division of agriculture.

9-36 [(h)] (g) Division of minerals.

9-37 [(i)] (h) Division of insurance.

9-38 [(j)] (i) Division of industrial relations.

9-39 [(k)] (j) Office of labor commissioner.

9-40 [(l)] (k) Taxicab authority.

9-41 [(m)] (l) Nevada athletic commission.

9-42 [(n)] (m) Office of the Nevada attorney for injured workers.

9-43 [(o)] (n) State predatory animal and rodent committee.

10-1 [(p)] (o) Transportation services authority.

10-2 [(q)] (p) Any other office, commission, board, agency or entity created

10-3 or placed within the department pursuant to a specific statute, the budget

10-4 approved by the legislature or an executive order, or an entity whose

10-5 budget or activities have been placed within the control of the department

10-6 by a specific statute.

10-7 Sec. 20. NRS 232.520 is hereby amended to read as follows:

10-8 232.520 The director:

10-9 1. Shall appoint a chief or executive director, or both of them, of each

10-10 of the divisions, offices, commissions, boards, agencies or other entities of

10-11 the department, unless the authority to appoint such a chief or executive

10-12 director, or both of them, is expressly vested in another person, board or

10-13 commission by a specific statute. In making the appointments, the director

10-14 may obtain lists of qualified persons from professional organizations,

10-15 associations or other groups recognized by the department, if any. The

10-16 chief of the consumer affairs division is the commissioner of consumer

10-17 affairs, the chief of the division of financial institutions is the commissioner

10-18 of financial institutions, the chief of the housing division is the

10-19 administrator of the housing division, the chief of the manufactured housing

10-20 division is the administrator of the manufactured housing division, the chief

10-21 of the real estate division is the real estate administrator, [the chief of the

10-22 division of unclaimed property is the administrator of unclaimed property,]

10-23 the chief of the division of agriculture is the administrator of the division of

10-24 agriculture, the chief of the division of minerals is the administrator of the

10-25 division of minerals, the chief of the division of insurance is the insurance

10-26 commissioner, the chief of the division of industrial relations is the

10-27 administrator of the division of industrial relations, the chief of the office of

10-28 labor commissioner is the labor commissioner, the chief of the taxicab

10-29 authority is the taxicab administrator, the chief of the transportation

10-30 services authority is the chairman of the authority and the chief of any other

10-31 entity of the department has the title specified by the director, unless a

10-32 different title is specified by a specific statute.

10-33 2. Is responsible for the administration of all provisions of law relating

10-34 to the jurisdiction, duties and functions of all divisions and other entities

10-35 within the department. The director may, if he deems it necessary to carry

10-36 out his administrative responsibilities, be considered as a member of the

10-37 staff of any division or other entity of the department for the purpose of

10-38 budget administration or for carrying out any duty or exercising any power

10-39 necessary to fulfill the responsibilities of the director pursuant to this

10-40 subsection. [Nothing contained in this subsection may be construed as

10-41 allowing] This subsection does not allow the director to preempt any

10-42 authority or jurisdiction granted by statute to any division or other entity

11-1 within the department or [as allowing the director] to act or take on a

11-2 function that would be in contravention of a rule of court or a statute.

11-3 3. [Has authority to:] May:

11-4 (a) Establish uniform policies for the department, consistent with the

11-5 policies and statutory responsibilities and duties of the divisions and other

11-6 entities within the department, relating to matters concerning budgeting,

11-7 accounting, planning, program development, personnel, information

11-8 services, dispute resolution, travel, workplace safety, the acceptance of gifts

11-9 or donations, the management of records and any other subject for which a

11-10 uniform departmental policy is necessary to ensure the efficient operation

11-11 of the department.

11-12 (b) Provide coordination among the divisions and other entities within

11-13 the department, in a manner which does not encroach upon their statutory

11-14 powers and duties, as they adopt and enforce regulations, execute

11-15 agreements, purchase goods, services or equipment, prepare legislative

11-16 requests and lease or utilize office space.

11-17 (c) Define the responsibilities of any person designated to carry out the

11-18 duties of the director relating to financing, industrial development or

11-19 business support services.

11-20 4. May, within the limits of the financial resources made available to

11-21 him, promote, participate in the operation of, and create or cause to be

11-22 created, any nonprofit corporation, pursuant to chapter 82 of NRS, which

11-23 he determines is necessary or convenient for the exercise of the powers and

11-24 duties of the department. The purposes, powers and operation of the

11-25 corporation must be consistent with the purposes, powers and duties of the

11-26 department.

11-27 5. For any bonds which he is otherwise authorized to issue, may issue

11-28 bonds the interest on which is not exempt from federal income tax or

11-29 excluded from gross revenue for the purposes of federal income tax.

11-30 6. May, except as otherwise provided by specific statute, adopt by

11-31 regulation a schedule of fees and deposits to be charged in connection with

11-32 the programs administered by him pursuant to chapters 348A and 349 of

11-33 NRS. Except as [so] otherwise provided, the amount of any such fee or

11-34 deposit must not exceed 2 percent of the principal amount of the financing.

11-35 7. May designate any person within the department to perform any of

11-36 the duties or responsibilities, or exercise any of the authority, of the

11-37 director on his behalf.

11-38 8. May negotiate and execute agreements with public or private entities

11-39 which are necessary to the exercise of the powers and duties of the director

11-40 or the department.

11-41 9. May establish a trust account in the state treasury for the purpose of

11-42 depositing and accounting for money that is held in escrow or is on deposit

11-43 with the department for the payment of any direct expenses incurred by the

12-1 director in connection with any bond programs administered by the

12-2 director. The interest and income earned on money in the trust account, less

12-3 any amount deducted to pay for applicable charges, must be credited to the

12-4 trust account. Any balance remaining in the account at the end of a fiscal

12-5 year may be:

12-6 (a) Carried forward to the next fiscal year for use in covering the

12-7 expense for which it was originally received; or

12-8 (b) Returned to any person entitled thereto in accordance with

12-9 agreements or regulations of the director pertaining to such bond programs.

12-10 Sec. 21. NRS 663.085 is hereby amended to read as follows:

12-11 663.085 1. If the rental due on a safe-deposit box has not been paid

12-12 for 90 days, the lessor may send a notice by registered or certified mail to

12-13 the last known address of the lessee stating that the safe-deposit box will be

12-14 opened and its contents stored at the expense of the lessee unless payment

12-15 of the rental is made within 30 days. If the rental is not paid within 30 days

12-16 [from] after the mailing of the notice, the box may be opened in the

12-17 presence of any officer of the lessor and a notary public. The contents must

12-18 be sealed in a package by the notary public, who shall write on the outside

12-19 the name of the lessee and the date of the opening of the box in the

12-20 presence of the officer. The notary public and the officer shall execute a

12-21 certificate reciting the name of the lessee, the date of the opening of the box

12-22 and a list of its contents. The certificate must be included in the package

12-23 and a copy of the certificate must be sent by registered or certified mail to

12-24 the last known address of the lessee. If the contents of the safe-deposit box

12-25 have been unclaimed by the owner for 5 years or less, the package must

12-26 then be placed in the general vaults of the lessor at a rental not exceeding

12-27 the rental previously charged for the box, until such time that the contents

12-28 will have been unclaimed by the owner for more than 5 years, at which time

12-29 the lessor shall deliver the package to the [division] secretary of state in his

12-30 capacity as the administrator of unclaimed property [of the department of

12-31 business and industry] pursuant to the provisions of chapter 120A of NRS.

12-32 2. If the contents of a safe-deposit box that has been opened pursuant

12-33 to subsection 1 have been unclaimed by the owner for more than 5 years,

12-34 the lessor shall deliver the package to the [division] secretary of state in his

12-35 capacity as the administrator of unclaimed property [of the department of

12-36 business and industry] pursuant to the provisions of chapter 120A of NRS.

12-37 Sec. 22. NRS 673.373 is hereby amended to read as follows:

12-38 673.373 1. If the rental due on a safe-deposit box has not been paid

12-39 for 90 days, the lessor may send a notice by registered or certified mail to

12-40 the last known address of the lessee stating that the safe-deposit box will be

12-41 opened and its contents stored at the expense of the lessee unless payment

12-42 of the rental is made within 30 days. If the rental is not paid within 30 days

12-43 [from] after the mailing of the notice, the box may be opened in the

13-1 presence of any officer of the lessor and a notary public. The contents must

13-2 be sealed in a package by the notary public, who shall write on the outside

13-3 the name of the lessee and the date of the opening of the box in the

13-4 presence of the officer. The notary public and the officer shall execute a

13-5 certificate reciting the name of the lessee, the date of the opening of the box

13-6 and a list of its contents. The certificate must be included in the package

13-7 and a copy of the certificate must be sent by registered or certified mail to

13-8 the last known address of the lessee. If the contents of the safe-deposit box

13-9 have been unclaimed by the owner for 5 years or less, the package must

13-10 then be placed in the general vaults of the lessor at a rental not exceeding

13-11 the rental previously charged for the box, until such time that the contents

13-12 will have been unclaimed by the owner for more than 5 years, at which time

13-13 the lessor shall deliver the package to the [division] secretary of state in his

13-14 capacity as the administrator of unclaimed property [of the department of

13-15 business and industry] pursuant to the provisions of chapter 120A of NRS.

13-16 2. If the contents of a safe-deposit box that has been opened pursuant

13-17 to subsection 1 have been unclaimed by the owner for more than 5 years,

13-18 the lessor shall deliver the package to the [division] secretary of state in his

13-19 capacity as the administrator of unclaimed property [of the department of

13-20 business and industry] pursuant to the provisions of chapter 120A of NRS.

13-21 Sec. 23. NRS 120A.050 is hereby repealed.

13-22 Sec. 24. This act becomes effective upon passage and approval.

13-23 Sec. 25. The legislative counsel shall:

13-24 1. In preparing the reprint and supplements to the Nevada Revised

13-25 Statutes, with respect to any section which is not amended by this act or is

13-26 further amended by another act, appropriately change any reference to the

13-27 "division of unclaimed property" to refer to the "administrator" or to the

13-28 "secretary of state acting in his capacity as the administrator of unclaimed

13-29 property."

13-30 2. In preparing supplements to the Nevada Administrative Code,

13-31 appropriately change any reference to the "division of unclaimed property"

13-32 to refer to the "administrator" or to the "secretary of state acting in his

13-33 capacity as the administrator of unclaimed property."

 

13-34 TEXT OF REPEALED SECTION

 

13-35 120A.050 "Division" defined. "Division" means the division of

13-36 unclaimed property in the department of business and industry.

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