Senate Bill No. 220–Committee on Commerce and Labor
February 18, 1999
____________
Referred to Committee on Commerce and Labor
SUMMARY—Provides for regulation of professional management consultants. (BDR 54-164)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. Title 54 of NRS is hereby amended by adding thereto a1-2
new chapter to consist of the provisions set forth as sections 2 to 61,1-3
inclusive, of this act.1-4
Sec. 2. As used in this chapter, unless the context otherwise requires,1-5
the words and terms defined in sections 3 to 8, inclusive, of this act have1-6
the meanings ascribed to them in those sections.1-7
Sec. 3. "Board" means the board of professional management1-8
consultants.1-9
Sec. 4. "Certificate" means a certificate issued by the Institute of1-10
Management Consultants or the National Bureau of Certified1-11
Consultants.1-12
Sec. 5. "License" means a license to engage in the practice of1-13
management consulting issued pursuant to the provisions of this chapter.1-14
Sec. 6. "Licensee" means a person who is licensed to engage in the1-15
practice of management consulting pursuant to the provisions of this1-16
chapter.2-1
Sec. 7. "Practice of management consulting" means the use of2-2
independent and objective judgment, systematic analysis, and specialized2-3
knowledge and skill, for a fee, to:2-4
1. Identify and investigate issues relating to the management of a2-5
business organization;2-6
2. Develop recommendations regarding those issues; and2-7
3. Provide assistance to the management of the business2-8
organization in carrying out those recommendations.2-9
Sec. 8. "Registrant" means a partnership, corporation or limited-2-10
liability company registered with the board to engage in the practice of2-11
management consulting as a partnership, corporation or limited-liability2-12
company pursuant to sections 28 to 32, inclusive, of this act.2-13
Sec. 9. The practice of management consulting is hereby declared to2-14
be a learned profession, affecting public health, safety and welfare and is2-15
subject to regulation to protect the public from the practice of2-16
management consulting by unqualified persons and from unprofessional2-17
conduct by persons who are licensed to engage in the practice of2-18
management consulting.2-19
Sec. 10. A license issued pursuant to the provisions of this chapter is2-20
a privilege that may be revoked in accordance with disciplinary2-21
procedures set forth in this chapter and in regulations adopted by the2-22
board pursuant thereto, and no holder of such a license acquires thereby2-23
any vested right.2-24
Sec. 11. 1. The board of professional management consultants,2-25
consisting of five members appointed by the governor, is hereby created.2-26
2. The governor shall appoint:2-27
(a) Three members who are licensed or eligible for licensing pursuant2-28
to the provisions of this chapter;2-29
(b) One member who is a representative of the general public; and2-30
(c) One member who is on the faculty of:2-31
(1) The department of management of the college of business of the2-32
University of Nevada, Las Vegas; or2-33
(2) The department of managerial sciences of the college of2-34
business administration of the University of Nevada, Reno.2-35
3. No person may be appointed to the board unless he is a resident of2-36
this state.2-37
4. The member of the board who is the representative of the general2-38
public shall not participate in preparing, conducting or grading any2-39
examination required by the board.2-40
5. No member of the board may be held liable in a civil action for2-41
any act which he performs in good faith in carrying out his duties2-42
pursuant to this chapter.3-1
Sec. 12. The governor shall remove from the board a member whose3-2
license has become void or has been revoked or suspended, and may,3-3
after a hearing, remove any member for neglect of duty or any other just3-4
cause.3-5
Sec. 13. 1. The member of the board who is the representative of3-6
the general public is entitled to receive:3-7
(a) A salary of not more than $80 per day, as fixed by the board, while3-8
engaged in the business of the board; and3-9
(b) A per diem allowance and travel expenses, at a rate fixed by the3-10
board, while engaged in the business of the board. The rate must not3-11
exceed the rate provided for officers and employees of this state3-12
generally.3-13
2. Each member of the board who is not the representative of the3-14
general public is not entitled to receive a salary, per diem allowance or3-15
travel expenses pursuant to this section.3-16
3. While engaged in the business of the board, each employee of the3-17
board is entitled to receive a per diem allowance and travel expenses at a3-18
rate fixed by the board. The rate must not exceed the rate provided for3-19
officers and employees of this state generally.3-20
Sec. 14. 1. The board shall:3-21
(a) Elect from among its members a president, vice president,3-22
secretary and treasurer. The members may assign the duties of the3-23
treasurer and the secretary to one person who must be designated the3-24
secretary-treasurer.3-25
(b) Adopt regulations to carry out the provisions of this chapter.3-26
(c) Prepare and maintain a complete record of its transactions.3-27
(d) Adopt a seal of which each court of this state shall take judicial3-28
notice.3-29
2. A majority of the board constitutes a quorum for the transaction3-30
of business by the board.3-31
Sec. 15. 1. The secretary of the board shall maintain a separate list3-32
of the names and addresses of:3-33
(a) The applicants for a license;3-34
(b) The licensees; and3-35
(c) The registrants.3-36
2. For each applicant, licensee and registrant, the list must indicate3-37
whether the applicant, licensee or registrant has been issued a certificate.3-38
Sec. 16. The board may:3-39
1. Maintain offices in as many locations in this state as it considers3-40
necessary to carry out the provisions of this chapter.3-41
2. Employ attorneys, investigators and other persons necessary to3-42
carry out its duties.4-1
Sec. 17. The board shall operate on the basis of a fiscal year4-2
beginning on July 1 and ending on June 30.4-3
Sec. 18. 1. Except as otherwise provided in subsection 4, all4-4
reasonable expenses incurred by the board in carrying out the provisions4-5
of this chapter must be paid from the money which it receives. No part of4-6
the salaries or expenses of the board may be paid from the state general4-7
fund.4-8
2. All money received by the board must be deposited in a bank or4-9
other financial institution in this state and paid out on its order for its4-10
expenses.4-11
3. The board may delegate to a hearing officer or panel its authority4-12
to take any disciplinary action pursuant to this chapter, impose and4-13
collect fines and penalties therefor and deposit the money therefrom in a4-14
bank or other financial institution in this state.4-15
4. If a hearing officer or panel is not authorized to take disciplinary4-16
action pursuant to subsection 3 and the board deposits the money4-17
collected from the imposition of fines with the state treasurer for credit to4-18
the state general fund, it may present a claim to the state board of4-19
examiners for recommendation to the interim finance committee if4-20
money is required to pay attorney’s fees or the costs of an investigation,4-21
or both.4-22
Sec. 19. A person shall not engage in the practice of management4-23
consulting in this state unless he has registered with the board or4-24
obtained a license issued by the board pursuant to the provisions of this4-25
chapter.4-26
Sec. 20. 1. The board shall issue a license to any person who:4-27
(a) Is a resident of this state or, if not a resident, has filed with the4-28
board a designation and acceptance of a resident agent for service of4-29
legal process;4-30
(b) Is a person of fiscal integrity who has not committed any acts4-31
involving dishonesty or moral turpitude; and4-32
(c) Has passed the written examination of the board.4-33
2. If the board refuses to issue a license to an applicant:4-34
(a) The board shall set forth the reason therefor in a written statement4-35
to the applicant; and4-36
(b) The applicant may submit to the board a written request for4-37
reconsideration within 30 days after the board refuses to issue the4-38
license. Sec. 21. 1. The examination of the board must be conducted by the4-40
board and take place as often as the board determines necessary, but not4-41
less than twice each year.5-1
2. The board shall prescribe, by regulation, the procedure for5-2
applying for the examination and for conducting the examination,5-3
including the grading of papers and the determination of passing grades.5-4
Sec. 22. 1. An applicant for a license must provide proof5-5
satisfactory to the board that he:5-6
(a) Is of good moral character.5-7
(b) Is a citizen of the United States or is lawfully entitled to remain5-8
and work in the United States.5-9
(c) Has passed the examination of the board.5-10
(d) Has not been convicted of a felony pursuant to the laws of any5-11
state, the United States or the District of Columbia. For the purposes of5-12
this paragraph, an affidavit signed by the applicant stating that he has5-13
not been convicted of a felony constitutes satisfactory proof.5-14
(e) Has not been convicted of a crime, an element of which is5-15
dishonesty or fraud, pursuant to the laws of any state, the United States5-16
or the District of Columbia. For the purposes of this paragraph, an5-17
affidavit signed by the applicant stating that he has not been convicted of5-18
such a crime constitutes satisfactory proof.5-19
2. The applicant must pay a fee for:5-20
(a) An application for a license of not more than $600.5-21
(b) The examination required by the board pursuant to section 20 of5-22
this act of not more than $200.5-23
3. The board may reject an application if it appears that the5-24
applicant’s credentials are fraudulent or the applicant has engaged in the5-25
practice of management consulting without a license issued pursuant to5-26
the provisions of this chapter, or has committed any act described in5-27
section 33 of this act.5-28
4. The board may require the applicant to provide any other5-29
information it considers necessary to establish the qualifications of the5-30
applicant.5-31
Sec. 23. An application for a license must include the social security5-32
number of the applicant. Sec. 24. 1. An applicant for the issuance or renewal of a license5-34
shall submit to the board the statement prescribed by the welfare division5-35
of the department of human resources pursuant to NRS 425.520. The5-36
statement must be completed and signed by the applicant.5-37
2. The board shall include the statement required pursuant to5-38
subsection 1 in:5-39
(a) The application or any other forms that must be submitted for the5-40
issuance or renewal of the license; or5-41
(b) A separate form prescribed by the board.5-42
3. A license may not be issued or renewed by the board if the5-43
applicant:6-1
(a) Fails to submit the statement required pursuant to subsection 1; or6-2
(b) Indicates on the statement submitted pursuant to subsection 1 that6-3
he is subject to a court order for the support of a child and is not in6-4
compliance with the order or a plan approved by the district attorney or6-5
other public agency enforcing the order for the repayment of the amount6-6
owed pursuant to the order.6-7
4. If an applicant indicates on the statement submitted pursuant to6-8
subsection 1 that he is subject to a court order for the support of a child6-9
and is not in compliance with the order or a plan approved by the district6-10
attorney or other public agency enforcing the order for the repayment of6-11
the amount owed pursuant to the order, the board shall advise the6-12
applicant to contact the district attorney or other public agency enforcing6-13
the order to determine the actions that the applicant may take to satisfy6-14
the arrearage. Sec. 25. 1. The board shall:6-16
(a) Conduct at least two examinations each year to examine6-17
applicants;6-18
(b) Establish the time and place for the examinations;6-19
(c) Provide such books, blanks and forms as may be necessary to6-20
conduct the examinations; and6-21
(d) Establish, by regulation, the requirements for passing the6-22
examination.6-23
2. The examination must:6-24
(a) Be conducted in the English language, and written or oral, as the6-25
board may determine; and6-26
(b) Test the applicant on the provisions of this chapter and any6-27
regulations adopted pursuant to this chapter.6-28
Sec. 26. 1. A license issued pursuant to the provisions of this6-29
chapter expires 1 year after the date of issuance. A license may be6-30
renewed before it expires upon:6-31
(a) The submission of the statement required pursuant to section 24 of6-32
this act; and6-33
(b) The payment of a renewal fee of $200.6-34
2. A license that is not renewed by the expiration date is delinquent.6-35
A delinquent license may be reinstated upon the payment of the annual6-36
renewal fee and an additional fee for delinquency of $50.6-37
Sec. 27. The board shall issue a license without examination to a6-38
person who holds a license or certificate to engage in the practice of6-39
management consulting in a state, territory or possession of the United6-40
States or the District of Columbia if the requirements for that license or6-41
certificate at the time the license or certificate was issued are deemed by6-42
the board to be substantially equivalent to the requirements for a license6-43
set forth in this chapter.7-1
Sec. 28. 1. One or more natural persons may organize a7-2
corporation for the practice of management consulting pursuant to7-3
chapter 89 of NRS. The corporation is not required to have more7-4
directors than shareholders, but at least one director must be a7-5
shareholder. The other directors are not required to be shareholders.7-6
2. One or more natural persons may:7-7
(a) Organize a corporation pursuant to chapter 78 of NRS;7-8
(b) Qualify to do business as a foreign corporation pursuant to7-9
chapter 80 of NRS;7-10
(c) Organize a limited-liability company pursuant to chapter 86 of7-11
NRS; or7-12
(d) Register as a foreign limited-liability company pursuant to chapter7-13
86 of NRS,7-14
to engage in the practice of management consulting.7-15
3. The organization, qualification or registration of a corporation or7-16
company pursuant to subsection 2:7-17
(a) Does not modify:7-18
(1) The relationship between a professional management7-19
consultant and a client;7-20
(2) The liability arising out of that relationship; or7-21
(3) The compliance of the corporation or company with the7-22
provisions of this chapter or any regulations adopted pursuant to this7-23
chapter.7-24
(b) Does not render:7-25
(1) A person liable in tort for any act in which he has not personally7-26
participated.7-27
(2) The manager, a member or an employee of a limited-liability7-28
company liable in contract for a contract that he executes on behalf of a7-29
limited-liability company within the scope of his authority.7-30
Sec. 29. 1. A partnership engaged in this state in the practice of7-31
management consulting shall register with the board as a partnership of7-32
professional management consultants and comply with the following7-33
requirements:7-34
(a) At least one general partner must be a licensee in good standing.7-35
(b) Each partner who is a resident of this state and is personally and7-36
regularly engaged in this state in the practice of management consulting7-37
as a partner of the partnership must be a licensee in good standing.7-38
(c) Each partner who personally engages in the practice of7-39
management consulting in this state and who is not a resident of this7-40
state and is not regularly employed in an office of the firm in this state7-41
must be a licensed or certified professional management consultant of a7-42
state, territory or possession of the United States or the District of7-43
Columbia in good standing.8-1
(d) Each partner who is regularly engaged in the practice of8-2
management consulting within the United States must be a licensed or8-3
certified professional management consultant of a state, territory or8-4
possession of the United States or the District of Columbia in good8-5
standing.8-6
(e) Each manager in charge of an office of the firm in this state must8-7
be a licensee in good standing.8-8
(f) A corporation or limited-liability company which is registered8-9
pursuant to sections 28 to 32, inclusive, of this act may be a partner, and8-10
a partnership which is registered pursuant to this section may be a8-11
general partner, in a partnership engaged in the practice of management8-12
consulting.8-13
(g) The partnership shall comply with the regulations adopted by the8-14
board relating to partnerships that are engaged in the practice of8-15
management consulting in this state.8-16
2. Application for registration must be made upon the affidavit of a8-17
general partner who holds a license. The board shall determine whether8-18
the applicant is eligible for registration and may charge an initial fee and8-19
an annual renewal fee established by the board. A partnership that is so8-20
registered may use the words "licensed professional management8-21
consultants" or the abbreviation "L.P.M.C.s" or "LPMCs" in connection8-22
with its partnership name. Notice must be given to the board within 18-23
month after the admission to, or withdrawal of, a partner from a8-24
partnership so registered. Sec. 30. 1. A corporation organized to engage in the practice of8-26
management consulting shall register with the board as a corporation of8-27
professional management consultants and comply with the following8-28
requirements:8-29
(a) The sole purpose and business of the corporation must be to8-30
provide to the public services not inconsistent with the provisions of this8-31
chapter or the regulations of the board, except that the corporation may8-32
invest its money in a manner not incompatible with the practice of8-33
management consulting.8-34
(b) Each shareholder of the corporation must be a licensee or a8-35
licensed or certified professional management consultant of a state,8-36
territory or possession of the United States or the District of Columbia in8-37
good standing, and be principally employed by the corporation or actively8-38
engaged in its business. No other person may have any interest in the8-39
stock of the corporation. The principal officer of the corporation and any8-40
officer or director who has authority over the practice of management8-41
consulting by the corporation must be a licensee or a licensed or certified8-42
professional management consultant of a state, territory or possession of8-43
the United States or the District of Columbia in good standing.9-1
(c) At least one shareholder of the corporation must be a licensee in9-2
good standing.9-3
(d) Each manager in charge of an office of the corporation in this9-4
state and each shareholder or director who is regularly and personally9-5
engaged in this state in the practice of management consulting must be a9-6
licensee in good standing.9-7
(e) To facilitate compliance with the provisions of this section relating9-8
to the ownership of stock, there must be a written agreement binding the9-9
shareholders or the corporation to purchase all shares offered for sale9-10
by, or not under the ownership or effective control of, a qualified9-11
shareholder. The corporation may retire any amount of stock for this9-12
purpose, notwithstanding any impairment of its capital, as long as one9-13
share remains outstanding.9-14
(f) The corporation shall comply with the regulations adopted by the9-15
board relating to corporations that are engaged in the practice of9-16
management consulting in this state.9-17
2. An application for registration must be made upon the affidavit of9-18
a shareholder who is a licensee. The board shall determine whether the9-19
applicant is eligible for registration and may charge an initial fee and an9-20
annual renewal fee established by the board. A corporation that is so9-21
registered may use the words "licensed professional management9-22
consultants" or the abbreviation "L.P.M.C.s" or "LPMCs" in connection9-23
with its corporate name. Notice must be given to the board within 19-24
month after the admission to, or withdrawal of, a shareholder from a9-25
corporation so registered.9-26
Sec. 31. 1. A limited-liability company organized to engage in the9-27
practice of management consulting shall register with the board as a9-28
limited-liability company of professional management consultants and9-29
comply with the following requirements:9-30
(a) The sole purpose and business of the limited-liability company9-31
must be to provide to the public services not inconsistent with the9-32
provisions of this chapter or the regulations of the board, except that the9-33
limited-liability company may invest its money in a manner not9-34
incompatible with the practice of management consulting.9-35
(b) Each member of the limited-liability company must be a licensee9-36
or a licensed or certified professional management consultant of a state,9-37
territory or possession of the United States or the District of Columbia in9-38
good standing, and be principally employed by the limited-liability9-39
company or actively engaged in its business. No other person may have9-40
any interest in the limited-liability company. The manager, if any, of the9-41
limited-liability company must be a licensee in good standing.9-42
(c) At least one member of the limited-liability company must be a9-43
licensee in good standing.10-1
(d) Each person in charge of an office of the limited-liability company10-2
in this state and each member who is regularly and personally engaged10-3
in this state in the practice of management consulting must be a licensee10-4
in good standing.10-5
(e) To facilitate compliance with the provisions of this section relating10-6
to the ownership of interests, there must be a written agreement binding10-7
the members of the limited-liability company to purchase all interest in10-8
the limited-liability company offered for sale by, or not under the10-9
ownership or effective control of, a qualified member.10-10
(f) The limited-liability company shall comply with the regulations10-11
adopted by the board relating to limited-liability companies that are10-12
engaged in the practice of management consulting in this state.10-13
2. Application for registration must be made upon the affidavit of the10-14
manager or a member of the limited-liability company. The affiant must10-15
be a licensee. The board shall determine whether the applicant is eligible10-16
for registration and may charge an initial fee and an annual renewal fee10-17
established by the board. A limited-liability company that is so registered10-18
may use the words "licensed professional management consultants" or10-19
the abbreviation "L.P.M.C.s" or "LPMCs" in connection with its name.10-20
Notice must be given to the board within 1 month after the admission to,10-21
or withdrawal of, a member from a limited-liability company so10-22
registered.10-23
Sec. 32. 1. Each office established or maintained in this state for10-24
the practice of management consulting in this state by a licensee,10-25
partnership, corporation or limited-liability company must be registered10-26
annually with the board pursuant to this chapter. The board may charge10-27
a fee for the registration of an office.10-28
2. Each office must be supervised by a manager who is a licensee.10-29
The manager may be a partner, shareholder, member or employee.10-30
3. The board shall, by regulation, prescribe the procedure for the10-31
registration of offices. Sec. 33. 1. After giving notice and conducting a hearing, the board10-33
may revoke or suspend a license for a period of not more than 5 years,10-34
suspend or refuse to renew a license, or administer a public or private10-35
reprimand to a licensee for any of the following reasons:10-36
(a) Fraud or deceit in obtaining a license or certificate.10-37
(b) Dishonesty, fraud or gross negligence by a licensee in the practice10-38
of management consulting or, if not in the practice of management10-39
consulting, of a kind that adversely affects the ability to engage in the10-40
practice of management consulting.10-41
(c) A violation of any provision of this chapter.10-42
(d) A violation of a regulation or rule of professional conduct adopted10-43
by the board pursuant to this chapter.11-1
(e) A conviction of a felony pursuant to the laws of any state, the11-2
District of Columbia or of the United States.11-3
(f) A conviction of a crime, an element of which is dishonesty or11-4
fraud, pursuant to the laws of any state, the District of Columbia or of11-5
the United States.11-6
(g) A cancellation, revocation, suspension or refusal to renew the11-7
right to engage in the practice of management consulting by another11-8
state, a territory or possession of the United States or the District of11-9
Columbia for any cause other than failure to pay an annual fee or to11-10
comply with the requirements for continuing education or review of his11-11
practice in that jurisdiction.11-12
(h) A suspension or revocation of the right to engage in the practice of11-13
management consulting before a state or federal agency.11-14
(i) Unless the person has been placed on inactive or retired status, the11-15
failure to obtain a license within 1 year after the expiration date of the11-16
license last obtained or renewed by the licensee, unless the failure has11-17
been excused by the board.11-18
(j) Conduct discreditable to the profession of management consulting11-19
or that reflects adversely upon the fitness of the person to engage in the11-20
practice of management consulting.11-21
2. In addition to any other penalties prescribed by this section, the11-22
board may:11-23
(a) For a first violation, impose a civil penalty of not more than11-24
$1,000.11-25
(b) For a second violation within 1 year after the first violation,11-26
impose a civil penalty of not more than $5,000.11-27
(c) Recover:11-28
(1) Attorney’s fees and costs incurred with respect to a hearing held11-29
pursuant to subsection 1 from a licensee if he is found in violation11-30
thereof; and11-31
(2) Attorney’s fees and costs incurred in the recovery of a civil11-32
penalty imposed.11-33
Sec. 34. 1. Any records or information obtained during the course11-34
of an investigation by the board and any record of the investigation are11-35
confidential until the investigation is completed. Upon completion of the11-36
investigation, the information and records are public records if:11-37
(a) Disciplinary action is imposed by the board as a result of the11-38
investigation; or11-39
(b) The person regarding whom the investigation was made submits a11-40
written request to the board asking that the information and records be11-41
made public records.12-1
2. The provisions of this section do not prohibit the board from12-2
providing any such records or information to another licensing board or12-3
any agency, including a law enforcement agency, which is investigating12-4
the person licensed pursuant to the provisions of this chapter.12-5
Sec. 35. 1. The board may issue subpoenas for the attendance of12-6
witnesses and the production of books and papers.12-7
2. The district court, in and for the county in which any hearing is12-8
held, may compel the attendance of witnesses, the giving of testimony12-9
and the production of books and papers as required by any subpoena12-10
issued by the board.12-11
3. If any witness refuses to attend or testify or produce any books or12-12
papers required by a subpoena, the board may file a petition ex parte12-13
with the district court, setting forth that:12-14
(a) Notice has been given of the time and place for the attendance of12-15
the witness or the production of the books or papers;12-16
(b) The witness has been subpoenaed by the board pursuant to this12-17
section;12-18
(c) The witness has failed or refused to attend or produce the books or12-19
papers required by the subpoena before the board in the cause or12-20
proceeding named in the subpoena, or has refused to answer questions12-21
propounded to him in the course of the hearing; and12-22
(d) The board therefore requests an order of the court compelling the12-23
witness to attend and testify or produce the books and papers before the12-24
board.12-25
4. The court, upon such a petition, shall enter an order directing the12-26
witness to appear before the court at a time and place fixed by the court12-27
in the order, and then and there to show cause why he has not attended12-28
or testified or produced the books or papers before the board. The time12-29
may not be more than 10 days after the date of the order. A certified copy12-30
of the order must be served upon the witness.12-31
5. If the court determines that the subpoena was regularly issued by12-32
the board, the court shall thereupon enter an order that the witness12-33
appear before the board at the time and place fixed in the order, and12-34
testify or produce the required books or papers. Failure to obey the order12-35
is a contempt of the court that issued it.12-36
Sec. 36. Each witness who appears by order of the board is entitled12-37
to receive for his attendance the same fees and mileage allowed by law to12-38
a witness in a civil case. The amount must be paid by the party who12-39
requested the subpoena. If any witness who has not been required to12-40
attend at the request of any party is subpoenaed by the board, his fees12-41
and mileage must be paid from the money of the board.13-1
Sec. 37. 1. The board may, in any hearing before it, cause the13-2
deposition of witnesses to be taken in the manner prescribed for13-3
depositions in civil actions in this state.13-4
2. The district court in and for the county in which any hearing is13-5
held by the board shall, upon the application of the board, issue a13-6
commission to another state for the taking of evidence in that state for13-7
use in any proceeding before the board.13-8
Sec. 38. 1. If the board receives a copy of a court order issued13-9
pursuant to NRS 425.540 that provides for the suspension of all13-10
professional, occupational and recreational licenses, certificates and13-11
permits issued to a licensee, the board shall deem the license to be13-12
suspended at the end of the 30th day after the date on which the court13-13
order was issued unless the board receives a letter issued to the licensee13-14
by the district attorney or other public agency pursuant to NRS 425.55013-15
stating that the licensee has complied with the subpoena or warrant or13-16
has satisfied the arrearage pursuant to NRS 425.560.13-17
2. The board shall reinstate a license that has been suspended by a13-18
district court pursuant to NRS 425.540 if the board receives a letter13-19
issued by the district attorney or other public agency pursuant to NRS13-20
425.550 to the licensee stating that the licensee has complied with the13-21
subpoena or warrant or has satisfied the arrearage pursuant to NRS13-22
425.560. Sec. 39. In addition to any penalty that the board may impose13-24
pursuant to section 33 of this act, the board may suspend any of the13-25
provisions of an order issued pursuant to that section and place the13-26
licensee on probation, subject to the limitations and conditions specified13-27
by the board.13-28
Sec. 40. 1. A licensee may request that his license be placed on13-29
inactive status by submitting an application to the board.13-30
2. A licensee whose license is placed on inactive status shall not13-31
engage in the practice of management consulting during the time his13-32
license is inactive.13-33
3. The board shall reactivate a license if the person requesting such13-34
action submits to the board:13-35
(a) A completed application; and13-36
(b) A fee of $50.13-37
Sec. 41. After giving notice and conducting a hearing, the board:13-38
1. Shall revoke the registration of a partnership, corporation or13-39
limited-liability company if at any time it fails to comply with the13-40
qualifications prescribed by this chapter pursuant to which it qualified13-41
for registration.14-1
2. May revoke or suspend the registration of a partnership,14-2
corporation or limited-liability company, or may administer a public or14-3
private reprimand to the partnership, corporation or limited-liability14-4
company, or impose a penalty authorized by section 33 of this act, for14-5
any of the reasons set forth in section 33 of this act, or for any of the14-6
following reasons:14-7
(a) The revocation or suspension of the license, or the refusal to14-8
renew the license to practice of any partner, shareholder or member who14-9
is personally engaged in the practice of management consulting in this14-10
state, whether or not he holds a certificate.14-11
(b) The cancellation, revocation, suspension or refusal to renew the14-12
right of the partnership, corporation or limited-liability company, or any14-13
partner, shareholder or member thereof, to engage in the practice of14-14
management consulting in another state, a territory or possession of the14-15
United States or the District of Columbia for any cause other than the14-16
failure to pay an annual fee or comply with the requirements for14-17
continuing education or a review of its practice in that jurisdiction.14-18
Sec. 42. 1. The board or any of its members who become aware of14-19
any ground for initiating disciplinary action against a licensee or14-20
registrant shall, and any other person who is so aware may file a written14-21
complaint specifying the relevant facts with the board. The complaint14-22
must specifically charge one or more of the grounds for initiating14-23
disciplinary action.14-24
2. As soon as practicable after the filing of the complaint, the board14-25
shall fix a date for a hearing thereon. The date must not be earlier than14-26
30 days after the complaint is filed, except that the date may be changed14-27
upon the agreement of both parties. The board shall serve a notice of14-28
hearing upon the licensee or registrant not less than 30 days before the14-29
date of the hearing, either personally or by mailing a copy thereof by14-30
registered or certified mail to the last known address of the licensee or14-31
registrant as indicated in the records of the board. A copy of the14-32
complaint must be attached to the notice.14-33
3. The licensee or registrant may provide a written response to the14-34
complaint within 20 days after the licensee or registrant receives the14-35
notice of hearing.14-36
4. If the licensee or registrant fails to appear at the hearing, the14-37
board may proceed to hear evidence and may enter such order as is14-38
justified by the evidence. The order is final unless the licensee or14-39
registrant petitions for a review of the order. Within 30 days after the14-40
date of any order, upon a showing of good cause for failing to appear,14-41
the board may reopen the proceedings and allow the licensee or14-42
registrant to submit evidence on his behalf.15-1
5. A licensee or registrant may be represented before the board by15-2
counsel and is entitled, on application to the board, to the issuance of15-3
subpoenas to compel the attendance of witnesses or the production of15-4
documents on his behalf.15-5
Sec. 43. All statements, records, schedules, working papers and15-6
memoranda made by a licensee or registrant in the course of15-7
professional service to clients, except reports submitted by a licensee or15-8
registrant to a client, are the property of the licensee or registrant, in the15-9
absence of a written agreement between the licensee or registrant, and15-10
the client to the contrary. No such statement, record, schedule, working15-11
paper or memorandum may be sold, transferred or bequeathed, without15-12
the consent of the client or his personal representative or assignee, to any15-13
person other than one or more surviving partners or new partners of the15-14
professional management consultant or to his corporation.15-15
Sec. 44. The provisions of this chapter do not prohibit a person from15-16
serving as an employee of, or an assistant to, a licensee or registrant if15-17
the employee or assistant does not engage in the practice of management15-18
consulting.15-19
Sec. 45. 1. The board may adopt regulations that prescribe the15-20
requirements for the issuance of a temporary license to a person who15-21
does not hold a license and does not have a registered office or residence15-22
in this state, or to a partnership, corporation or limited-liability company15-23
that is not registered and does not have a registered office in this state, to15-24
allow that person, partnership, corporation or limited-liability company15-25
to carry out a specific engagement or employment in this state. A15-26
temporary license:15-27
(a) Is valid for not more than 6 months;15-28
(b) Is limited to one engagement or employment; and15-29
(c) May not be issued to a person unless he is licensed, certified or15-30
registered to engage in the practice of management consulting in another15-31
state, territory or possession of the United States or the District of15-32
Columbia, or to any partnership, corporation or limited-liability company15-33
unless all the partners, shareholders or members thereof are licensed,15-34
certified or registered to engage in the practice of management15-35
consulting in another state, territory or possession of the United States or15-36
the District of Columbia.15-37
2. Each person, partnership, corporation and limited-liability15-38
company that applies for a temporary license must file with the board a15-39
designation and acceptance of a resident agent for service of legal15-40
process and pay a fee established by the board before beginning work for15-41
a client.16-1
3. The person, partner, shareholder or member who is responsible16-2
for supervising the conduct of the engagement or employment must16-3
comply with the requirements set forth in section 20 of this act.16-4
4. A person who holds a temporary license is subject to the provisions16-5
of this chapter relating to discipline.16-6
5. The board may refuse to act upon an application for a temporary16-7
license for a period established by the board, or may refuse to issue a16-8
temporary license to any person, partnership, corporation or limited-16-9
liability company if disciplinary proceedings involving that person,16-10
partnership, corporation or company are pending in any state, territory16-11
or possession of the United States or the District of Columbia. Sec. 46. A natural person shall not assume or use the title or16-13
designation "certified professional consultant to management," the16-14
abbreviation "C.P.C.M." or "CPCM," or any other title, designation,16-15
words, letters, abbreviation, sign, card or device tending to indicate that16-16
he is a certified professional consultant to management, unless he has16-17
received a certificate as a certified professional consultant to16-18
management issued by the National Bureau of Certified Consultants.16-19
Sec. 47. A partnership, corporation or limited-liability company16-20
shall not assume or use the title or designation "certified professional16-21
consultant to management," the abbreviation "C.P.C.M." or "CPCM,"16-22
or any other title, designation, words, letters, abbreviation, sign, card or16-23
device tending to indicate that the partnership, corporation or limited-16-24
liability company consists of certified professional consultants to16-25
management unless the partnership, corporation or limited-liability16-26
company is registered as a partnership, corporation or limited-liability16-27
company of certified professional consultants to management with the16-28
National Bureau of Certified Consultants.16-29
Sec. 48. A natural person shall not assume or use the title or16-30
designation "certified management consultant," the abbreviation16-31
"C.M.C." or "CMC," or any other title, designation, words, letters,16-32
abbreviation, sign, card or device tending to indicate that he is a certified16-33
management consultant, unless he has received a certificate as a certified16-34
management consultant issued by the Institute of Management16-35
Consultants.16-36
Sec. 49. A partnership, corporation or limited-liability company16-37
shall not assume or use the title or designation "certified management16-38
consultant," the abbreviation "C.M.C." or "CMC," or any other title,16-39
designation, words, letters, abbreviation, sign, card or device tending to16-40
indicate that the partnership, corporation or limited-liability company17-1
consists of certified management consultants, unless the partnership,17-2
corporation or limited-liability company is registered as a partnership,17-3
corporation or limited-liability company of certified management17-4
consultants with the Institute of Management Consultants.17-5
Sec. 50. A natural person shall not assume or use the title or17-6
designation "licensed professional management consultant," the17-7
abbreviation "L.P.M.C." or "LPMC," or any other title, designation,17-8
words, letters, abbreviation, sign, card or device tending to indicate that17-9
he is a licensed professional management consultant unless he is17-10
licensed by the board.17-11
Sec. 51. A partnership, corporation or limited-liability company17-12
shall not assume or use the title or designation "licensed professional17-13
management consultant," the abbreviation "L.P.M.C." or "LPMC," or17-14
any other title, designation, words, letters, abbreviation, sign, card or17-15
device tending to indicate that the partnership, corporation or limited-17-16
liability company consists of licensed professional management17-17
consultants, unless the partnership, corporation or limited-liability17-18
company is registered with the board. Sec. 52. A natural person, partnership, corporation or limited-17-20
liability company that is not licensed or registered in this state to engage17-21
in the practice of management consulting shall not assume or use a title17-22
or designation likely to be confused with "licensed professional17-23
management consultant" or "registered professional management17-24
consultant."17-25
Sec. 53. A natural person, partnership, corporation or limited-17-26
liability company shall not assume or use the title or designation17-27
"certified professional consultant to management," or any other title or17-28
designation likely to be confused with "certified professional consultant17-29
to management," or the abbreviation "C.P.C.M." or "CPCM," or a17-30
similar abbreviation likely to be confused with "C.P.C.M." or "CPCM,"17-31
unless the natural person, partnership, corporation or limited-liability17-32
company is certified or registered by the National Bureau of Certified17-33
Consultants.17-34
Sec. 54. A natural person, partnership, corporation or limited-17-35
liability company shall not assume or use the title or designation17-36
"certified management consultant," or any other title or designation17-37
likely to be confused with "certified management consultant," or the17-38
abbreviation "C.M.C." or "CMC," or a similar abbreviation likely to be17-39
confused with "C.M.C." or "CMC," unless the natural person,17-40
partnership, corporation or limited-liability company is certified or17-41
registered by the Institute of Management Consultants.18-1
Sec. 55. 1. Except as otherwise provided in subsection 2, a person18-2
shall not sign or affix to any document his name or the name of a18-3
partnership, corporation or limited-liability company, or any trade or18-4
assumed name used by him or by the partnership, corporation or limited-18-5
liability company in business, with any wording indicating that he is a18-6
licensed professional management consultant, or that the partnership,18-7
corporation or limited-liability company is authorized to engage in the18-8
practice of management consulting or with any wording indicating that18-9
he or the partnership, corporation or limited-liability company has expert18-10
knowledge in the practice of management consulting unless he is a18-11
licensee or registrant.18-12
2. The provisions of subsection 1 do not prohibit:18-13
(a) Any officer, employee, partner, principal or member of any18-14
organization from affixing his signature to any statement or report in18-15
reference to the financial affairs of that organization with any wording18-16
designating the position, title or office which he holds in the18-17
organization; or18-18
(b) Any act of a public officer or public employee in the performance18-19
of his duties as such.18-20
Sec. 56. A natural person shall not sign or affix to any document the18-21
name of a partnership, corporation or limited-liability company, with any18-22
wording indicating that it is a partnership, corporation or limited-liability18-23
company consisting of licensees unless the partnership, corporation or18-24
limited-liability company is a registrant.18-25
Sec. 57. 1. Except as otherwise provided in subsection 2, a natural18-26
person, partnership, corporation or limited-liability company shall not18-27
engage in the practice of management consulting or hold itself out to the18-28
public as a "consultant" by use of that word, or by use of the word18-29
"consulting," or any sign, card, letterhead or in any advertisement or18-30
directory unless, if a natural person, he is a licensee, or if a partnership,18-31
corporation or limited-liability company, it is a registrant.18-32
2. The provisions of subsection 1 do not prohibit:18-33
(a) Any officer, employee, partner, shareholder, principal or member18-34
of any organization from describing himself by the position, title or office18-35
he holds in that organization; or18-36
(b) Any act of a public officer or public employee in the performance18-37
of his duties as such.18-38
Sec. 58. 1. A person shall not assume or use the title or18-39
designation "licensed professional management consultant," "certified18-40
professional consultant to management" or "certified management18-41
consultant" in conjunction with names indicating or implying that there19-1
is a partnership, corporation or limited-liability company, or in19-2
conjunction with the designation "and Company" or "and Co." or a19-3
similar designation if there is no partnership, corporation or limited-19-4
liability company registered pursuant to this chapter.19-5
2. A natural person, partnership, corporation or limited-liability19-6
company shall not engage in the practice of management consulting19-7
under any name that is misleading with respect to:19-8
(a) The legal form of the firm;19-9
(b) The persons who are partners, officers, shareholders or members;19-10
or19-11
(c) Any other matter.19-12
The names of former partners, shareholders or members may be19-13
included in the name of a firm or its successors.19-14
Sec. 59. 1. The display or uttering by a person of a card, sign,19-15
advertisement or other printed, engraved or written instrument or device,19-16
bearing a person’s name in conjunction with the words "licensed19-17
professional management consultant" or any abbreviation thereof, or19-18
"certified professional consultant to management" or any abbreviation19-19
thereof, or "certified management consultant" or any abbreviation19-20
thereof, is prima facie evidence in any action brought pursuant to19-21
sections 46 to 60, inclusive, of this act that the person whose name is so19-22
displayed caused or procured the display or uttering of the card, sign,19-23
advertisement or other printed, engraved or written instrument or device,19-24
and that the person is holding himself out to be a licensee, certified19-25
professional consultant to management or certified management19-26
consultant.19-27
2. In any such action, evidence of the commission of a single act19-28
prohibited by this chapter is sufficient to justify an injunction or a19-29
conviction without evidence of a general course of conduct.19-30
Sec. 60. If, in the judgment of the board, a person has engaged, or is19-31
about to engage, in an act or practice that constitutes, or will constitute, a19-32
violation of the provisions of sections 46 to 60, inclusive, of this act, the19-33
board may make application to an appropriate court for an order19-34
enjoining the act or practice, and upon a showing by the board that the19-35
person has engaged, or is about to engage, in that act or practice, an19-36
injunction, restraining order or such order as may be appropriate must19-37
be granted by that court without bond.19-38
Sec. 61. 1. A person who violates any provision of this chapter is19-39
guilty of a misdemeanor.19-40
2. If the board has reason to believe that a person is liable to19-41
punishment pursuant to this section, the board may certify the facts to19-42
the attorney general or other appropriate law enforcement officer, who19-43
may cause appropriate proceedings to be brought.20-1
Sec. 62. NRS 218.825 is hereby amended to read as follows:20-2
218.825 1. Each of the boards and commissions created by the20-3
provisions of chapters 623 to 625A, inclusive, chapters 628 to 644,20-4
inclusive, and chapters 654 and 656 of NRS and sections 2 to 61,20-5
inclusive, of this act shall engage the services of a certified public20-6
accountant or public accountant, or firm of either of such accountants, to20-7
audit all20-8
or once every other year for the 2 preceding fiscal years. The cost of the20-9
audit must be paid by the board or commission audited.20-10
2. A report of each such audit must be filed by the board or20-11
commission with the legislative auditor and the director of the budget on or20-12
before December 1 of each year in which an audit is conducted. All audits20-13
must be conducted in accordance with generally accepted auditing20-14
standards and all financial statements must be prepared in accordance with20-15
generally accepted principles of accounting for special revenue funds.20-16
3. The legislative auditor shall audit the fiscal records of any such20-17
board or commission whenever directed to do so by the legislative20-18
commission. When the legislative commission directs such an audit, it shall20-19
also determine who is to pay the cost of the audit.20-20
Sec. 63. NRS 284.013 is hereby amended to read as follows: 284.013 1. Except as otherwise provided in subsection 4, this chapter20-22
does not apply to:20-23
(a) Agencies, bureaus, commissions, officers or personnel in the20-24
legislative department or the judicial department of state government,20-25
including the commission on judicial discipline;20-26
(b) Any person who is employed by a board, commission, committee or20-27
council created in chapters 590, 623 to 625A, inclusive, 628, 630 to 644,20-28
inclusive, 648, 652, 654 and 656 of NRS20-29
inclusive, of this act; or20-30
(c) Officers or employees of any agency of the executive department of20-31
the state government who are exempted by specific statute.20-32
2. Except as otherwise provided in subsection 3, the terms and20-33
conditions of employment of all persons referred to in subsection 1,20-34
including salaries not prescribed by law and leaves of absence, including,20-35
without limitation, annual leave and sick and disability leave, must be fixed20-36
by the appointing or employing authority within the limits of legislative20-37
appropriations or authorizations.20-38
3. Except as otherwise provided in this subsection, leaves of absence20-39
prescribed pursuant to subsection 2 must not be of lesser duration than20-40
those provided for other state officers and employees pursuant to the20-41
provisions of this chapter. The provisions of this subsection do not govern20-42
the legislative commission with respect to the personnel of the legislative20-43
counsel bureau.21-1
4. Any board, commission, committee or council created in chapters21-2
590, 623 to 625A, inclusive, 628, 630 to 644, inclusive, 648, 652, 654 and21-3
656 of NRS and sections 2 to 61, inclusive, of this act which contracts for21-4
the services of a person, shall require the contract for those services to be in21-5
writing. The contract must be approved by the state board of examiners21-6
before those services may be provided.21-7
Sec. 64. NRS 353A.010 is hereby amended to read as follows: 353A.010 As used in this chapter, unless the context otherwise21-9
requires:21-10
1. "Agency" means every agency, department, division, board,21-11
commission or similar body, or elected officer, of the executive branch of21-12
the state, except:21-13
(a) A board or commission created by the provisions of chapters 623 to21-14
625, inclusive, 628 to 644, inclusive, 654 and 656 of NRS21-15
2 to 61, inclusive, of this act.21-16
(b) The University and Community College System of Nevada.21-17
(c) The public employees’ retirement system.21-18
(d) The state industrial insurance system.21-19
(e) The housing division of the department of business and industry.21-20
(f) The Colorado River commission.21-21
2. "Director" means the director of the department of administration.21-22
3. "Internal accounting and administrative control" means a method21-23
through which agencies can safeguard assets, check the accuracy and21-24
reliability of their accounting information, promote efficient operations and21-25
encourage adherence to prescribed managerial policies.21-26
Sec. 65. NRS 608.0116 is hereby amended to read as follows: 608.0116 "Professional" means pertaining to an employee who is21-28
licensed or certified by the State of Nevada for and engaged in the practice21-29
of law or any of the professions regulated by chapters 623 to 645, inclusive,21-30
of NRS21-31
Sec. 66. Section 26 of this act is hereby amended to read as follows:21-32
Sec. 26. 1. A license issued pursuant to the provisions of this21-33
chapter expires 1 year after the date of issuance. A license may be21-34
renewed before it expires upon21-35
21-36
21-37
21-38
2. A license that is not renewed by the expiration date is21-39
delinquent. A delinquent license may be reinstated upon the21-40
payment of the annual renewal fee and an additional fee for21-41
delinquency of $50.22-1
Sec. 67. 1. Notwithstanding the provisions of sections 2 to 61,22-2
inclusive, of this act, the board of professional management consultants22-3
shall issue a license to engage in the practice of management consulting22-4
without examination to any person who complies with the provisions of22-5
subsection 2 and:22-6
(a) Is:22-7
(1) A professional consultant to management who is certified by the22-8
National Bureau of Certified Consultants;22-9
(2) A management consultant who is certified by the Institute of22-10
Management Consultants;22-11
(3) A management accountant who is certified by the Institute of22-12
Certified Management Accountants;22-13
(4) A certified public accountant who is certified in any state, territory22-14
or possession of the United States or the District of Columbia;22-15
(5) A business counselor who is certified by the Institute of Certified22-16
Business Counselors;22-17
(6) A professional engineer who is licensed or certified in any state,22-18
territory or possession of the United States or the District of Columbia;22-19
(7) An internal auditor who is certified by the Institute of Internal22-20
Auditors;22-21
(8) A data processor who is certified by the Association of22-22
Information Technology Professionals; or22-23
(9) An attorney who is licensed in any state, territory or possession of22-24
the United States or the District of Columbia; or22-25
(b) Has:22-26
(1) Five years of full-time experience in the practice of management22-27
consulting; or22-28
(2) Ten years of part-time experience in the practice of management22-29
consulting.22-30
2. A person who applies for a license issued by the board pursuant to22-31
subsection 1 must submit to the board before January 1, 2000:22-32
(a) Proof of his compliance with the requirements set forth in subsection22-33
1;22-34
(b) The fees required pursuant to section 22 of this act;22-35
(c) A completed application; and22-36
(d) The statement required pursuant to section 24 of this act unless after22-37
July 1, 1999, the provisions of 42 U.S.C. § 666 requiring each state to22-38
establish procedures under which the state has authority to withhold or22-39
suspend, or to restrict the use of professional, occupational and recreational22-40
licenses of persons who:22-41
(1) Have failed to comply with a subpoena or warrant relating to a22-42
procedure to determine the paternity of a child or to establish or enforce an22-43
obligation for the support of a child; or23-1
(2) Are in arrears in the payment for the support of one or more23-2
children,23-3
are repealed by the Congress of the United States.23-4
3. As used in this section, "practice of management consulting" has the23-5
meaning ascribed to it in section 7 of this act.23-6
Sec. 68. As soon as practicable after July 1, 1999, the governor shall23-7
appoint to the board of professional management consultants:23-8
1. One member whose term expires on September 30, 2000.23-9
2. Two members whose terms expire on September 30, 2001.23-10
3. Two members whose terms expire on September 30, 2002.23-11
Sec. 69. Notwithstanding the provisions of section 19 of this act, a23-12
person who engages in the practice of management consulting is not23-13
required to register with or obtain a license from the board pursuant to the23-14
provisions of this act before July 1, 2000.23-15
Sec. 70. The amendatory provisions of this act do not apply to23-16
offenses that were committed before July 1, 1999.23-17
Sec. 71. 1. This section, sections 1 to 65, inclusive, and 67 to 70,23-18
inclusive, of this act become effective on July 1, 1999.23-19
2. Section 66 of this act becomes effective on the date on which the23-20
provisions of 42 U.S.C. § 666 requiring each state to establish procedures23-21
under which the state has authority to withhold or suspend, or to restrict the23-22
use of professional, occupational and recreational licenses of persons who:23-23
(a) Have failed to comply with a subpoena or warrant relating to a23-24
procedure to determine the paternity of a child or to establish or enforce an23-25
obligation for the support of a child; or23-26
(b) Are in arrears in the payment for the support of one or more23-27
children,23-28
are repealed by the Congress of the United States.23-29
3. Sections 23, 24 and 38 of this act expire by limitation on the date on23-30
which the provisions of 42 U.S.C. § 666 requiring each state to establish23-31
procedures under which the state has authority to withhold or suspend, or to23-32
restrict the use of professional, occupational and recreational licenses of23-33
persons who:23-34
(a) Have failed to comply with a subpoena or warrant relating to a23-35
procedure to determine the paternity of a child or to establish or enforce an23-36
obligation for the support of a child; or23-37
(b) Are in arrears in the payment for the support of one or more23-38
children,23-39
are repealed by the Congress of the United States.~