Senate Bill No. 39–Senator Amodei

CHAPTER........

Section 1. NRS 673.276 is hereby amended to read as follows:

673.276 An association may invest in:

1. Without limit, obligations of, or obligations guaranteed as to

principal and interest by, the United States or any state.

2. Obligations of the United States Postal Service, whether or not

guaranteed as to principal and interest by the United States.

3. Stock of a Federal Home Loan Bank of which the association is

eligible to be a member.

4. Any obligations or consolidated obligations of any Federal Home

Loan Bank or Banks.

5. Stock or obligations of the Federal Deposit Insurance Corporation.

6. Stock or obligations of a national mortgage association or any

successor or successors thereto, including the Federal National Mortgage

Association.

trust company whose deposits are insured by the Federal Deposit Insurance

8. Stock or obligations of any corporation or agency of the United

States or any state, or in deposits therewith to the extent that such a

corporation or agency assists in furthering or facilitating the association's

purposes or powers.

9. Savings accounts of any insured association licensed by the state and

of any federal savings and loan association, if the accounts of the savings

and loan association are insured by the Federal Deposit Insurance

Corporation.

10. Bonds, notes or other evidences of indebtedness which are general

obligations of any city, town, county, school district or other municipal

corporation or political subdivision of any state.

11. Capital stock and other securities of:

(a) A state development corporation organized under the provisions of

chapter 670 of NRS. (b) A corporation for economic revitalization and diversification

organized under the provisions of chapter 670A of NRS, if the association is

a member of the corporation, and to the extent of its loan limit established

under NRS 670A.200.

12. Any other investment at the discretion of the association's directors

if, after the investment is made, the association's accounts remain insurable

by the Federal Deposit Insurance Corporation.

Sec. 2. NRS 673.377 is hereby amended to read as follows:

673.377 1. Every association shall have on hand at all times in

United States Government bonds, certificates of insured savings and loan

associations, Federal Home Loan Bank evidences of indebtedness, time

instrumentality which is by statute fully guaranteed, a sum not less than 5

percent of the aggregate of savings accounts and investment certificates to

enable it to pay withdrawals in excess of receipts and to meet accruing

expenses. The commissioner may prescribe from time to time different

amounts required for liquidity purposes, but the amounts must not be less

than 4 percent or more than 8 percent.

the possession of appropriate supervisory authority must not be considered

as cash. Except for deposits in a Federal Home Loan Bank, a time deposit

established hereafter, whether or not time deposit-open account or deposit

evidenced by a certificate of deposit, must not be considered as cash for

such purposes unless:

(a) The member itself made the deposit in question;

(b) The deposit, together with all other time deposits of the association in

(c) No consideration was received from a third party in connection with

the making of the deposit.

3. An association must not make or purchase any loan, other than

advances on the sole security of its savings accounts, at any time when its

liquidity drops below the required level. For the purpose of this section, a

loan is deemed to have been made as of the date the borrower executed the

security instrument, and a loan is deemed to have been purchased as of the

date of the payment therefor.

Sec. 3. NRS 676.220 is hereby amended to read as follows:

676.220 Each licensee shall:

all payments to creditors must be disbursed from, this account.

2. Keep and use such books and accounting records as are in accord

with sound and accepted accounting practices.

3. Maintain a separate record or ledger card for the account of each

debtor, showing the amount of money received from and disbursed on

behalf of each debtor.

4. Maintain a separate record, in a form approved by the commissioner,

or ledger card for each creditor, identifying the particular debtor-source of

money and showing the amount of money disbursed in accordance with the

appropriate debt-adjustment contract.

5. Preserve all books and accounting records for at least 7 years after

making the final entry therein.

Sec. 4. NRS 677.230 is hereby amended to read as follows:

677.230 1. Except as otherwise provided in subsection 2, the

commissioner may establish the basis upon which reasonable and adequate

reserves must be created and maintained, which must be no less than 3

For the purposes of this subsection, "short-term" means having a maturity of

2 years or less.

2. The commissioner shall require a licensee who is insured by the

Federal Deposit Insurance Corporation to comply with the reserve

requirements established by that insurer.

Sec. 5. NRS 677.570 is hereby amended to read as follows:

677.570 When the commissioner takes possession of the property and

business of any company for the purpose of liquidation or conservation, he

may liquidate or conserve the company. In such a liquidation or

conservation the commissioner has the same authority with reference to

licensees as are vested in the commissioner by Title 55 of NRS with

reference to banks and in addition may deposit money coming into his

Sec. 6. NRS 677.600 is hereby amended to read as follows:

677.600 A licensee shall not deposit any of its money with any other

moneyed corporation, unless that corporation has been designated as a

depository by a majority vote of the directors or the executive committee,

exclusive of any director who is an officer, director or trustee of thedepository so designated. Such a depository must be a federally insured

Sec. 7. NRS 677.610 is hereby amended to read as follows:

677.610 A licensee shall not invest any of its money, except:

1. As authorized in this chapter;

or

3. To the extent of 5 percent or less of its total assets, in preferred stock

of corporations which have been given a rating of "A" or better by a

national rating service and which are not in default in the payment of

dividends.

Sec. 8. NRS 678.260 is hereby amended to read as follows:

678.260 The commissioner shall:

1. Adopt a regulation establishing the minimum surety bond required of

credit unions in relation to the amount of property under their control.

permanent file.

with the division of financial institutions.

deposit all fees, charges for expenses, assessments and other money which

is collected pursuant to the provisions of this chapter or any regulation

adopted thereunder, in the state treasury for credit to the state general fund.

with the provisions of this chapter which may be used by persons interested

in organizing a credit union.

Sec. 9. NRS 678.490 is hereby amended to read as follows:

678.490 A credit union may:

1. Hold membership in other credit unions organized under this chapter,

in the Nevada Credit Union League and in other organizations composed of

credit unions;

2. Perform such tasks and missions as may be requested by the Federal

Government, the State of Nevada or any agency or political subdivision

when approved by the board of directors and not inconsistent with the

provisions of this chapter;

3. Act as fiscal agent for and receive deposits from the Federal

4. Perform trust services for its members, including the trust estates of

deceased members, and act as a custodian of qualified pension funds of self-

employed individuals under the provisions of 26 U.S.C. §§ 861 et seq. Sec. 10. NRS 678.690 is hereby amended to read as follows:

678.690 For the purpose of establishing the reserves required by NRS

678.670 and 678.680, all assets except the following are considered risk

assets:

1. Cash on hand;

2. Deposits or shares in federal or state banks, savings and loan

associations and credit unions;

3. Assets which are insured by, fully guaranteed as to principal and

the Federal National Mortgage Association or the Government National

Mortgage Association;

4. Loans to other credit unions;

5. Loans to members of the credit union which are fully secured by the

shares of the member applying therefor;

6. Loans to students insured under the provisions of the Higher

insurance programs;

8. Shares or deposits in central credit unions organized under the

provisions of NRS 678.850, or of any other state law or the Federal Credit

9. Common trust investments which deal in investments authorized by

this chapter;

10. Prepaid expenses;

11. Accrued interest on nonrisk investments;

Sec. 11. NRS 678.730 is hereby amended to read as follows:

678.730 1. A credit union may make loans to its directors and to

members of its committees, except that any loan or aggregate of loans to any

2. A credit union may permit its directors and members of its

committees to act as guarantor or endorser of loans to other members,

except that when such a loan standing alone or when added to any

of the board is required.

Sec. 12. NRS 678.760 is hereby amended to read as follows:

678.760 Money not used in loans to members may be invested in:

1. Securities, obligations, participations or other instruments of or

issued by or fully guaranteed as to principal and interest by the United

States of America or any agency thereof or in any trust or trusts established

3. Certificates of deposit or passbook type accounts issued by a state or

national bank, mutual savings bank or savings and loan association;

4. Loans to or shares or deposits of other credit unions as permitted by

the bylaws;

5. Capital shares, obligations or preferred stock issues of any agency or

association organized either as a stock company, mutual association or

membership corporation if the membership or stockholdings, as the case

may be, of the agency or association are confined or restricted to credit

unions or organizations of credit unions, and the purposes for which the

agency or association is organized are designed to service or otherwise

assist credit union operations;

6. Shares of a cooperative society organized under the laws of this state

or the United States in a total amount not exceeding 10 percent of the

shares, deposits and surplus of the credit union;

7. Capital stock and other securities of a corporation for economic

revitalization and diversification organized under the provisions of chapter

670A of NRS, if the credit union is a member of the corporation, and to the

extent of its loan limit established under NRS 670A.200;

8. Stocks and bonds of United States corporations to a maximum of 5

percent of unallocated reserves, except that such an investment must be

limited to stocks or bonds yielding income which are approved by the

9. Loans to any credit union association, national or state, of which the

credit union is a member, except that such an investment must be limited to

1 percent of the shares, capital deposits and unimpaired surplus of the credit

Sec. 13. NRS 11.290 is hereby amended to read as follows:

11.290 Except as otherwise provided in subsection 5 of NRS 104.3118,

to actions brought to recover money or other property deposited with any

is no limitation.

Sec. 14. NRS 31.291 is hereby amended to read as follows:

31.291 1. Debts and credits, due or to become due, from a bank

incorporated under the laws of the State of Nevada or the laws of the United

States of America, or other personal property held by the bank must be

garnished by serving a copy of the writ of garnishment on one of the

following officers of the bank:

(a) If the bank has no branches, trust department or military facility, on

the president, vice president, assistant vice president, cashier, assistant

cashier, manager or other managing officer in charge of the bank owing the

debts, or having in its possession or under its control the credits or other

personal property. (b) If the bank has branches or military facilities owing the debts or

having in its possession or under its control the credits or other personal

property, on the vice president, assistant vice president, assistant cashier,

manager or other managing officer in charge of the branch or in charge of

the military facility. Service on that officer or agent constitutes a valid levy

on any debt, credit or other personal property owing by any branch or

military facility of the bank.

(c) If the bank has a trust department owing the debts or having in its

possession or under its control the credits or other personal property, on the

vice president and trust officer, trust officer, assistant trust officer or other

managing officer of the trust department.

Nevada or the laws of the United States of America or other personal

association must be garnished by serving the writ of garnishment in the

same manner as upon banks pursuant to subsection 1.

3. A garnishment pursuant to this section creates a lien only upon the

amounts in the accounts or to the credit of the debtor at the time of service

of the writ of garnishment. An item in the process of collection is included

in the amount of an account unless the item is returned unpaid. Money in the

accounts that the garnishee has declared under oath and in answers to

interrogatories to be exempt from execution is not included in the amount of

the account.

4. No garnishment may occur until the defendant has been served with

the notice of execution in substantially the form prescribed in NRS 31.045

and in the manner prescribed in NRS 21.076.

Sec. 15. NRS 80.015 is hereby amended to read as follows:

80.015 1. For the purposes of this chapter, the following activities do

not constitute doing business in this state:

(a) Maintaining, defending or settling any proceeding;

(b) Holding meetings of the board of directors or stockholders or

carrying on other activities concerning internal corporate affairs;

(d) Maintaining offices or agencies for the transfer, exchange and

registration of the corporation's own securities or maintaining trustees or

depositaries with respect to those securities;

(e) Making sales through independent contractors;

(f) Soliciting or receiving orders outside of this state through or in

response to letters, circulars, catalogs or other forms of advertising,

accepting those orders outside of this state and filling them by shipping

goods into this state;

(g) Creating or acquiring indebtedness, mortgages and security interests

in real or personal property;

(h) Securing or collecting debts or enforcing mortgages and security

interests in property securing the debts; (i) Owning, without more, real or personal property;

(j) Isolated transactions completed within 30 days and not a part of a

series of similar transactions;

(k) The production of motion pictures as defined in NRS 231.020;

(l) Transacting business as an out-of-state depository institution pursuant

to the provisions of Title 55 of NRS; and

(m) Transacting business in interstate commerce.

2. The list of activities in subsection 1 is not exhaustive.

3. A person who is not doing business in this state within the meaning

of this section need not qualify or comply with any provision of NRS

Title 55 or 56 of NRS unless he:

(a) Maintains an office in this state for the transaction of business; or

(b) Solicits or accepts deposits in the state, except pursuant to the

provisions of chapter 666 or 666A of NRS.

Sec. 16. NRS 91.110 is hereby amended to read as follows:

institution or trust company organized under, or supervised pursuant to, the

laws of the United States or of any state.

Sec. 17. NRS 100.060 is hereby amended to read as follows:

undertaking or other obligation is required, to agree with his surety or

safekeeping thereof, and in such manner as to prevent the withdrawal of

manner release from or change the liability of the principal or sureties as

established by the terms of the bond.

Sec. 18. NRS 100.065 is hereby amended to read as follows:

100.065 1. In lieu of any cash payment or surety bond required as

protection for the State of Nevada, the person required to provide the cash

payment or surety bond may deposit with the state treasurer, unless a

different custodian is named by specific statute:

(a) Bonds of the United States or of the State of Nevada of an actual

market value of not less than the amount of the required cash payment or

surety bond;

and loan association situated in Nevada, which meets the requirements set

for that purpose by the state treasurer; or (c) A savings certificate, certificate of deposit or investment certificate of

in Nevada, which must indicate an account of an amount not less than the

amount of the required cash payment or surety bond and, except as

otherwise provided by specific statute, that the amount is not available for

withdrawal except by direct order of the state treasurer.

2. Whenever a savings certificate, certificate of deposit or investment

certificate is deposited as provided in this section, interest earned on the

certificate accrues to the account of the depositor.

3. If a surety bond is provided as protection for the State of Nevada, the

bond must be issued by an insurer who is authorized or otherwise allowed

under Title 57 of NRS to issue such a bond pursuant to Title 57 of NRS.

Sec. 19. NRS 117.065 is hereby amended to read as follows:

117.065 Any person who receives fees from a purchaser of a

condominium for the maintenance of the project shall:

recognized depositary in this state.

Sec. 20. NRS 142.020 is hereby amended to read as follows:

requirement of a bond of an executor, administrator or successor executor or

administrator is discretionary with the court. Whether a bond is expressly

required by the will or not, the court may:

(a) Require a bond if it determines a bond is desirable; or

(b) Dispense with the requirement of a bond if it determines a bond is

unnecessary.

2. The bond must be conditioned that the executor or administrator will

faithfully execute the duties of the trust according to law, and the bond must

be recorded by the clerk.

3. Personal assets of an estate may be deposited with a domestic

prescribed by order of the court having jurisdiction of the estate. The

deposit is subject to the further order of the court. The bond of the executor

or administrator may be reduced accordingly.

4. During the pendency of the administration, any person, including a

creditor, having an interest in the estate whose value exceeds $10,000 may

make a written demand that the executor, administrator or any successor

submit a bond. Upon receipt of the demand, the executor, administrator or

any successor shall refrain from exercising any powers, except those

necessary to preserve the estate, until the bond is filed. The executor,

administrator or any successor is not required to file a bond in an amount

which is greater than the amount of the claim of the person having an

interest in the estate. The court may, upon the petition of the executor,

administrator or any successor, dispense with the requirement of a bond. 5. The amount of the bond is the estimated value of all personal

property plus income for 1 year from both real and personal property, unless

the amount of the bond is expressly mentioned in the will, changed by the

court, or required pursuant to subsection 4.

6. If a banking corporation, as defined in NRS 657.016, or trust

company, as defined in NRS 669.070, doing business in this state is

appointed executor or administrator of the estate of a deceased, no bond is

required of the executor or administrator, unless otherwise specifically

required by the court.

Sec. 21. NRS 143.175 is hereby amended to read as follows:

143.175 Executors and administrators may, without court approval,

1. United States treasury notes, bills or bonds;

2. Negotiable commercial paper, not exceeding 180 days maturity, of

prime quality as defined by a nationally recognized organization which rates

such securities;

3. Bankers' acceptances;

4. Savings accounts or certificates of deposit in national banks, banks

savings and loan associations chartered by the State of Nevada; or

5. Any other investment in which an executor or administrator is

control.

Sec. 22. NRS 144.020 is hereby amended to read as follows:

144.020 1. The executor or administrator may engage a qualified and

disinterested appraiser to ascertain the fair market value, as of the

decedent's death, of any asset the value of which is subject to reasonable

doubt. Different persons may be engaged to appraise different kinds of

assets included in the estate.

2. Any such appraiser is entitled to a reasonable compensation for his

appraisal and may be paid the compensation by the executor or

administrator out of the estate at any time after completion of the appraisal.

3. Where there is no reasonable doubt as to the value of assets, such as

shall file a verified record of value in lieu of the appraisement.

Sec. 23. NRS 159.117 is hereby amended to read as follows:

159.117 1. Upon approval of the court by order, a guardian of the

estate may:

(a) Invest the property of the ward, make loans and accept security

therefor, in the manner and to the extent authorized by the court.

(b) Exercise options of the ward to purchase or exchange securities or

other property. 2. A guardian of the estate may, without securing the prior approval of

the court, invest the property of the ward in the following:

(b) Interest-bearing obligations of or fully guaranteed by the United

States.

(c) Interest-bearing obligations of the United States Postal Service.

(d) Interest-bearing obligations of the Federal National Mortgage

Association.

(e) Interest-bearing general obligations of this state.

(f) Interest-bearing general obligations of any county, city or school

district of this state.

(g) Money market mutual funds which are invested only in those

instruments listed in paragraphs (a) to (f), inclusive.

3. A guardian of the estate for two or more wards may invest the

property of two or more of the wards in property in which each ward whose

property is so invested has an undivided interest. The guardian shall keep a

separate record showing the interest of each ward in the investment and in

the income, profits or proceeds therefrom.

Sec. 24. NRS 163.150 is hereby amended to read as follows:

163.150 Where a person who is a trustee of two or more trusts has

investment, and a withdrawal is made therefrom by the trustee for his own

benefit, or for the benefit of a third person not a beneficiary or creditor of

other property of the trustee in the mingled fund, if any, and after the

exhaustion of the trustee's cash, credit, or other property, then to the

other property at the time of the withdrawal.

Sec. 25. NRS 209.201 is hereby amended to read as follows:

209.201 1. The prison revolving account in the sum of $10,000 is

hereby created, and may be used for the payment of bills requiring

immediate payment and for the issuance of money to assist newly released

or paroled offenders, and for no other purposes.

2. The director may deposit the prison revolving account in one or more

3. Payments made from the prison revolving account must be promptly

reimbursed from appropriated money of the department on claims as other

claims against the state are paid.

Sec. 26. NRS 209.248 is hereby amended to read as follows:

209.248 1. The department of prisons shall establish in any insured

state an account for disbursements to offenders. The balance in the account

must not exceed $600,000. Money in the account may be expended only for

the payment of transactions involving offenders' trust funds.

2. Payments made from the account for disbursements to offenders must

be promptly reimbursed from money in the appropriate fund on deposit with

the state treasurer.

Sec. 27. NRS 210.160 is hereby amended to read as follows:

210.160 1. The superintendent may accept money and other valuables

of inmates for safekeeping pending their discharges, and shall deposit any

or savings and loan association qualified to receive deposits of public

money. He shall keep a full account of any such money and valuables, and

shall submit reports to the administrator relative to them as may be required

from time to time.

2. The superintendent may transfer the amount of any uncashed check

issued by the school to an inmate to the youth training center's gift account

after 1 year from the date the check was issued. Each check so issued must

be stamped "void after 1 year from date of issue."

Sec. 28. NRS 210.170 is hereby amended to read as follows:

210.170 1. The superintendent, subject to the approval of the

administrator, may establish an inmates' commissary or store for the benefit

and use of the inmates. So far as practicable, sales of supplies and materials

to the inmates must be at cost. The superintendent shall keep, or cause to be

kept, a record of all transactions of the commissary.

2. The youth training center commissary fund is hereby created, and

must be used to purchase supplies and materials for resale to the inmates, to

provide money for needy inmates, and for other incidentals as may be

deemed necessary by the superintendent. All money drawn from the fund

must be repaid wherever possible.

3. The superintendent shall deposit any money received for the fund in

and maintain a small sum as petty cash at the commissary.

Sec. 29. NRS 210.540 is hereby amended to read as follows:

appropriation from the general fund.

other claims against the state are paid.

signed by the superintendent or by a deputy designated by him for the

purpose. Sec. 30. NRS 210.560 is hereby amended to read as follows:

210.560 1. The superintendent may accept money and other valuables

of inmates for safekeeping pending their discharges, and shall deposit any

money. The superintendent shall keep a full account of any such money and

valuables, and shall submit reports to the administrator relative to them as

may be required from time to time.

2. The superintendent may transfer the amount of any uncashed check

issued by the school to an inmate to the Caliente youth center's gift account

after 1 year from the date the check was issued. Each check so issued must

be stamped "void after 1 year from date of issue."

Sec. 31. NRS 210.570 is hereby amended to read as follows:

210.570 1. The superintendent, subject to the approval of the

administrator, may establish an inmates' commissary or store for the benefit

and use of the inmates. So far as practicable, sales of supplies and materials

to the inmates must be at cost. The superintendent shall keep, or cause to be

kept, a record of all transactions of the commissary.

2. The Caliente youth center commissary fund is hereby created, and

must be used to purchase supplies and materials for resale to the inmates, to

deemed necessary by the superintendent. All money from the fund must be

repaid wherever possible.

3. The superintendent shall deposit any money received for the fund in

association qualified to receive deposits of public money under the

provisions of chapter 356 of NRS, and the deposit must be secured by a

depository bond satisfactory to the state board of examiners.

4. The superintendent may maintain a small sum as petty cash at the

commissary.

Sec. 32. NRS 210.750 is hereby amended to read as follows:

210.750 1. Each person who is paroled from the Nevada youth

training center or the Caliente youth center must be placed in a reputable

home and in either an educational or work program or both. The chief of the

youth parole bureau may pay the expenses incurred in providing alternative

placements for residential programs and for structured nonresidential

programs from money appropriated to the bureau for that purpose.

2. The chief may accept money of parolees for safekeeping pending

account of the money, and shall submit such reports concerning the

accounts to the administrator of the division of child and family services of

the department of human resources as the administrator may require. 3. When any person so paroled has proven his ability to make an

acceptable adjustment outside the center or, in the opinion of the chief, is no

longer amenable to treatment as a juvenile, the chief shall apply to the

committing court for a dismissal of all proceedings and accusations pending

against the person.

4. Before the chief recommends that the committing court revoke a

person's parole, he shall ascertain from the superintendent of the

appropriate center whether adequate facilities remain available at the center

to provide the necessary care for the person. If the superintendent advises

that there are not such facilities available, that there is not enough money

available for support of the person at the center or that the person is not

suitable for admission to the center, the chief shall report that fact to the

administrator of the division of child and family services, who shall

recommend a suitable alternative to the court.

Sec. 33. NRS 211.380 is hereby amended to read as follows:

211.380 1. The sheriff of each county may accept money and

valuables in the physical possession of a prisoner at the time he is taken into

custody. The sheriff shall account separately for all money so accepted and

money. During the time of the prisoner's incarceration, the sheriff may also

accept and deposit in the trust fund money belonging to the prisoner which

is intended for use by the prisoner to purchase items at the commissary.

2. The sheriff:

(a) Shall keep, or cause to be kept, a full and accurate account of the

money and valuables, and shall submit reports to the board of county

commissioners relating to the money and valuables as may be required from

time to time.

(b) May permit withdrawals for immediate expenditure by a prisoner for

personal needs, for payment to a person who is not incarcerated in the jail or

for payment required of a prisoner pursuant to NRS 211.241 to 211.249,

inclusive.

(c) Shall, upon the release of each prisoner, return his valuables and pay

over to the prisoner any remaining balance in his individual account.

3. The interest and income earned on the money in the fund, after

deducting any applicable charges, must be credited to the account

established for the commissary pursuant to NRS 211.360. If a commissary

has not been established, the interest and income earned must be deposited

with the county treasurer for credit to the county general fund.

Sec. 34. NRS 218.644 is hereby amended to read as follows:

218.644 1. The legislative counsel bureau shall maintain a checking

advance money and reimbursement to legislators and employees for travel

expenses, paying the salaries of persons on the payroll of the legislative

branch of government, related payroll costs and any other expenses directed

by the legislative commission. The account must be secured by a depositorybond to the extent the account is not insured by the Federal Deposit

written on this account must be signed by the chairman of the legislative

commission and the director of the legislative counsel bureau or his

designee, except that during a regular session of the legislature, the majority

leader of the senate and the speaker of the assembly shall sign the checks.

2. A request for advance money for travel constitutes a lien in favor of

the legislative fund upon the accrued salary, subsistence allowance and

travel expenses of the legislator or employee in an amount equal to the sum

advanced.

3. The legislator or employee is entitled to receive upon request any

authorized travel expenses in excess of the amount advanced. The legislator

or employee shall reimburse the legislative fund any amount advanced that

is not used for reimbursable travel expenses.

Sec. 35. NRS 228.099 is hereby amended to read as follows:

228.099 1. There is hereby created a revolving account for the office

of attorney general in the sum of $5,000, which must be used for payment of

expenses related to litigation which are unexpected and require prompt

payment and for no other purposes.

2. The attorney general shall deposit the money in the revolving

depository bond satisfactory to the state board of examiners.

3. The attorney general or his designee may sign all checks drawn upon

the revolving account.

4. Payments made from the revolving account must be promptly

reimbursed from the legislative appropriation, if any, to the attorney general

for special litigation expenses. The claim for reimbursement must be

processed and paid as other claims against the state are paid.

Sec. 36. NRS 244.207 is hereby amended to read as follows:

244.207 1. Notwithstanding any other provision of law, the boards of

county commissioners in their respective counties may establish by

ordinance central receiving and disbursing systems for the handling of

county money and money held in trust by the county or by any of its elected

or appointed officers. Such systems may include, but are not limited to, the

following:

(a) The commingling of all the money from any source if the accounting

system employed supplies full information concerning the sources of the

money.

accounts maintained by the county treasurer.

treasurer.

(d) The centralization of all disbursing of all money, including trust

money, if the accounting system employed supplies full information

concerning the disposition of the money.

(e) The centralization of part or all of billing and collection aspects of

business licenses, personal property and any other activity of any of the

offices of the county that involves billing for services, taxes or fees imposed

by statute or ordinance, or the collection of money in payment of such

billings.

(f) In a county whose population is 100,000 or more, the centralization

forfeiture imposed by a court and any payment ordered by a court pursuant

to NRS 178.3975.

credited to the general fund of the county if other provisions of law or

appointed officials relating to the receipt and disposition of money.

354.474, but not including a county, whose money is held in trust by the

county to direct the receipt, disbursement and investment of its money

independent direction is otherwise authorized by law.

Sec. 37. NRS 244A.721 is hereby amended to read as follows:

244A.721 1. The county may provide that proceeds from the sale of

bonds and special funds from the revenues of the project must be invested

and reinvested in such securities and other investments, whether or not any

such investment or reinvestment is authorized under any other law of this

state, as may be provided in the proceedings under which the bonds are

authorized to be issued, including, but not limited to:

(a) Bonds or other obligations of the United States of America.

(b) Bonds or other obligations, the payment of the principal and interest

of which is unconditionally guaranteed by the United States of America.

(c) Obligations issued or guaranteed as to principal and interest by any

agency or person controlled or supervised by and acting as an

instrumentality of the United States of America pursuant to authority

granted by the Congress of the United States of America.

(d) Obligations issued or guaranteed by any state of the United States of

America, or any political subdivision of any such state.

(e) Prime commercial paper.

(f) Prime finance company paper

. (g) Bankers' acceptances drawn on and accepted by commercial banks.

(h) Repurchase agreements fully secured by obligations issued or

guaranteed as to principal and interest by the United States of America or by

any person controlled or supervised by and acting as an instrumentality of

the United States of America pursuant to authority granted by the Congress

of the United States of America.

including banks domiciled outside of the United States of America.

(j) Money market mutual funds that:

(1) Are registered with the Securities and Exchange Commission;

(2) Are rated by a nationally recognized rating service as "AAA" or its

equivalent; and

(3) Invest only in securities issued or guaranteed as to payment of

principal and interest by the Federal Government, or its agencies or

instrumentalities, or in repurchase agreements that are fully collateralized by

2. The county may also provide that such proceeds or funds or

investments and the payments payable under the lease, the agreement of sale

or the financing agreement must be received, held and disbursed by one or

state.

Sec. 38. NRS 266.515 is hereby amended to read as follows:

266.515 1. The treasurer, or the county treasurer when acting as ex

officio city treasurer, shall keep all money belonging to the city separate

from all other money held by him for any other purpose or fund and may,

loan associations are located in the city, deposit, with unanimous consent of

State of Nevada in demand or time accounts.

2. The accounts must be kept in the name of the city in such manner as

the governing board of the city may prescribe and under such terms and

conditions for the protection of the money as the governing board may

determine, not inconsistent with other laws of the State of Nevada regulating

the deposit of public money.

associations, as certified to by the proper officer thereof, and by the oath of

the city treasurer, may be counted as cash.

Sec. 39. NRS 268.025 is hereby amended to read as follows:

268.025 Any incorporated city or other local government may deposit

any money under the control of its treasurer in any insured state or national

has an office within the State of Nevada. Sec. 40. NRS 268.540 is hereby amended to read as follows:

268.540 1. Unless prohibited by its charter, the city may provide that

proceeds from the sale of bonds and special funds from the revenues of the

project be invested and reinvested in such securities and other investments,

whether or not any such investment or reinvestment is authorized under any

other law of this state, as provided in the proceedings under which the

(a) Bonds or other obligations of the United States of America.

(b) Bonds or other obligations, the payment of the principal and interest

of which is unconditionally guaranteed by the United States of America.

(c) Obligations issued or guaranteed as to principal and interest by any

agency or person controlled or supervised by and acting as an

instrumentality of the United States of America pursuant to authority

granted by the Congress of the United States of America.

(d) Obligations issued or guaranteed by any state of the United States of

America, or any political subdivision of any such state.

(e) Prime commercial paper.

(f) Prime finance company paper.

(g) Bankers' acceptances drawn on and accepted by commercial banks.

(h) Repurchase agreements fully secured by obligations issued or

guaranteed as to principal and interest by the United States of America or by

any person controlled or supervised by and acting as an instrumentality of

the United States of America pursuant to authority granted by the Congress

of the United States of America.

including banks domiciled outside of the United States of America.

(j) Money market mutual funds that:

(1) Are registered with the Securities and Exchange Commission;

(2) Are rated by a nationally recognized rating service as "AAA" or its

equivalent; and

(3) Invest only in securities issued or guaranteed as to payment of

principal and interest by the Federal Government, or its agencies or

instrumentalities, or in repurchase agreements that are fully collateralized by

2. The city may also provide that such proceeds or funds or investments

and the payments payable under the lease, the agreement of sale or the

Sec. 41. NRS 281.171 is hereby amended to read as follows:

281.171 1. The account for travel advances is hereby created. Money

travel expenses and subsistence allowances.

2. The state treasurer shall deposit the money in the account in a bank

examiners.

3. The state treasurer or any of his officers or employees whom he has

upon the account.

Sec. 42. NRS 286.220 is hereby amended to read as follows:

286.220 1. The board shall establish a fund known as the public

employees' retirement fund.

2. It is hereby declared to be the policy of the legislature that the public

employees' retirement fund is a trust fund established to afford a degree of

security to long-time public employees of the state and its political

subdivisions. The money in the fund must not be used or appropriated for

any purpose incompatible with the policy of the public employees'

retirement system, as expressed in NRS 286.015. The fund must be invested

and administered to assure the highest return consistent with safety in

accordance with accepted investment practices.

3. The interest and income earned on the money in the public

employees' retirement fund, after deducting any applicable charges, must be

credited to the fund.

4. Money in the public employees' retirement fund must be expended

by the board for the purpose of paying:

(a) Service retirement allowances;

(b) Disability retirement allowances;

(c) Post-retirement allowances;

(d) Benefits for survivors;

(e) Authorized refunds to members and their beneficiaries;

(f) Amounts equivalent to disability retirement allowances to be used by

employers for rehabilitation; and

(g) Allowances to beneficiaries,

and for the payment of expenses authorized by law to be paid from the fund.

5. Contributions from members and from participating public

employers to the public employees' retirement fund must be deposited in a

deposits must be secured in a manner satisfactory to the board.

6. All checks drawn upon the public employees' retirement fund must

be signed by two persons designated by the board.

Sec. 43. NRS 286.680 is hereby amended to read as follows:

286.680 1. In addition to the provisions of chapter 355 of NRS, the

board may invest and reinvest the money in its funds as provided in this

section and NRS 286.682 and may employ investment counsel for that

purpose. The board may also employ investment supervisory services, trust

audit services and other related investment services which it deems

necessary to invest effectively and safeguard the money in the system's

funds.

2. No person engaged in business as a broker or dealer in securities or

who has a direct pecuniary interest in any such business who receivescommissions for transactions performed as agent for the board is eligible for

employment as investment counsel for the board.

3. The board shall not engage investment counsel unless:

(a) The principal business of the person selected by the board consists of

giving continuous advice as to the investment of money on the basis of the

individual needs of each client;

(b) The person and his predecessors have been continuously engaged in

such a business for a period of 5 or more years;

(c) The person is registered as an investment adviser under the laws of

the United States as from time to time in effect, or is a bank or an

investment management subsidiary of a bank; and

(d) The contract between the board and the investment counsel is of no

specific duration and is voidable at any time by either party.

4. The board and its individual members are not liable for investment

decisions made by investment counsel if they obtain qualified investment

counsel, establish proper objectives and policies for investments, and issue

appropriate interim directives. Investment counsel is liable for any

investment decision that is not made in accordance with the objectives and

policies established by the board and any applicable interim directives.

5. The expenses incurred in obtaining and reviewing services pursuant

to the provisions of this section and the reimbursements to employees for

their expenses incurred in connection with investment decisions must be

paid out of the public employees' retirement fund and the police and

firemen's retirement fund in proportion to their respective assets.

commercial banking and trust services, consider proposals submitted by

commercial banking and trust services at least every 5 years.

Sec. 44. NRS 287.010 is hereby amended to read as follows:

287.010 1. The governing body of any county, school district,

municipal corporation, political subdivision, public corporation or other

public agency of the State of Nevada may:

(a) Adopt and carry into effect a system of group life, accident or health

insurance, or any combination thereof, for the benefit of its officers and

employees, and the dependents of officers and employees who elect to

accept the insurance and who, where necessary, have authorized the

governing body to make deductions from their compensation for the

payment of premiums on the insurance.

(b) Purchase group policies of life, accident or health insurance, or any

combination thereof, for the benefit of such officers and employees, and the

dependents of such officers and employees, as have authorized the purchase,

from insurance companies authorized to transact the business of such

insurance in the State of Nevada, and, where necessary, deduct from the

compensation of officers and employees the premiums upon insurance and

pay the deductions upon the premiums. (c) Provide group life, accident or health coverage through a self-

insurance reserve fund and, where necessary, deduct contributions to the

maintenance of the fund from the compensation of officers and employees

and pay the deductions into the fund. The money accumulated for this

purpose through deductions from the compensation of officers and

employees and contributions of the governing body must be maintained as

an internal service fund as defined by NRS 354.543. The money must be

business in the State of Nevada. Any independent administrator of a fund

created under this section is subject to the licensing requirements of chapter

683A of NRS, and must be a resident of this state. Any contract with an

independent administrator must be approved by the commissioner of

insurance as to the reasonableness of administrative charges in relation to

contributions collected and benefits provided. The provisions of NRS

689B.030 to 689B.050, inclusive, apply to coverage provided pursuant to

this paragraph.

(d) Defray part or all of the cost of maintenance of a self-insurance fund

or of the premiums upon insurance. The money for contributions must be

budgeted for in accordance with the laws governing the county, school

district, municipal corporation, political subdivision, public corporation or

other public agency of the State of Nevada.

2. If a school district offers group insurance to its officers and

employees pursuant to this section, members of the board of trustees of the

school district must not be excluded from participating in the group

insurance. If the amount of the deductions from compensation required to

pay for the group insurance exceeds the compensation to which a trustee is

entitled, the difference must be paid by the trustee.

Sec. 45. NRS 315.400 is hereby amended to read as follows:

315.400 1. A commissioner or employee of the authority shall not

voluntarily acquire any interest, direct or indirect, except as a residential

tenant, in any housing project or in any property included or planned to be

included in any housing project, or in any contract or proposed contract in

connection with any housing project. Where the acquisition is not voluntary,

the commissioner or employee shall immediately disclose the interest in

writing to the authority and the disclosure must be entered upon the minutes

of the authority. Upon disclosure the commissioner or employee shall not

participate in any action by the authority involving the housing project,

property or contract. If any commissioner or employee of the authority

previously owned or controlled an interest, direct or indirect, in any housing

project or in any property included or planned to be included in any housing

project, or in any contract or proposed contract in connection with any

housing project, he shall immediately disclose the interest in writing to the

authority and the disclosure must be entered upon the minutes of the

authority. Upon disclosure the commissioner or employee shall not

participate in any action by the authority involving the housing project,

property or contract. 2. Any violation of this section constitutes misconduct in office.

3. This section is not applicable to the acquisition of any interest in

notes or bonds of the authority issued in connection with any housing

project or to act as trustee under any trust indenture.

Sec. 46. NRS 315.981 is hereby amended to read as follows:

315.981 1. A commissioner or employee of the authority shall not

voluntarily acquire any interest, direct or indirect, except as a residential

tenant, in any housing project or in any property included or planned to be

included in any housing project, or in any contract or proposed contract in

connection with any housing project. Where the acquisition is not voluntary,

the commissioner or employee shall immediately disclose the interest in

writing to the authority and the disclosure must be entered upon the minutes

of the authority. Upon disclosure the commissioner or employee shall not

participate in any action by the authority involving the housing project,

property or contract. If any commissioner or employee of the authority

previously owned or controlled an interest, direct or indirect, in any housing

project or in any property included or planned to be included in any housing

project, or in any contract or proposed contract in connection with any

housing project, he shall immediately disclose the interest in writing to the

authority and the disclosure must be entered upon the minutes of the

authority. Upon disclosure the commissioner or employee shall not

participate in any action by the authority involving the housing project,

property or contract.

2. A violation of any provision of this section constitutes malfeasance in

office.

3. This section is not applicable to the acquisition of any interest in

notes or bonds of the authority issued in connection with any housing

project or to act as trustee under any trust indenture.

Sec. 47. NRS 349.160 is hereby amended to read as follows:

Sec. 48. NRS 349.208 is hereby amended to read as follows:

Sec. 49. NRS 349.450 is hereby amended to read as follows:

349.450 "Expense of operation and maintenance" means any

reasonable and necessary current expense of the state for the operation,

maintenance or administration of a project or of the collection and

administration of revenues from a project. The term includes, among other

expenses:

1. Expenses for engineering, auditing, reporting, legal services and

other expenses of the director which are directly related to the

administration of projects.

2. Premiums for fidelity bonds and policies of property and liability

insurance pertaining to projects, and shares of the premiums of blanket

bonds and policies which may be reasonably allocated to the state.

3. Payments to pension, retirement, health insurance and other

insurance funds.

4. Reasonable charges made by any paying agent, commercial bank,

bonds.

5. Services rendered under the terms of contracts, services of

professionally qualified persons, salaries, administrative expenses and the

cost of materials, supplies and labor pertaining to the issuance of any bonds,

including the expenses of any trustee, receiver or other fiduciary.

6. Costs incurred in the collection and any refund of revenues from the

project, including the amount of the refund.

Sec. 50. NRS 349.630 is hereby amended to read as follows:

349.630 The director shall adopt regulations for:

1. Investment and reinvestment of the proceeds from the sale of bonds,

including, but not limited to:

(a) Bonds or other obligations of the United States of America.

(b) Bonds or other obligations, the payment of the principal and interest

of which is unconditionally guaranteed by the United States of America.

(c) Obligations issued or guaranteed as to principal and interest by any

agency or person controlled or supervised by and acting as an

instrumentality of the United States of America pursuant to authority

granted by the Congress of the United States of America.

(d) Obligations issued or guaranteed by any state of the United States of

America, or any political subdivision of any state.

(e) Prime commercial paper.

(f) Prime finance company paper.

(g) Bankers' acceptances drawn on and accepted by commercial banks.

(h) Repurchase agreements fully secured by obligations issued or

guaranteed as to principal and interest by the United States of America or by

any person controlled or supervised by and acting as an instrumentality ofthe United States of America pursuant to authority granted by the Congress

of the United States of America.

(j) Money market mutual funds that:

(1) Are registered with the Securities and Exchange Commission;

(2) Are rated by a nationally recognized rating service as "AAA" or its

equivalent; and

(3) Invest only in securities issued or guaranteed as to payment of

principal and interest by the Federal Government, or its agencies or

instrumentalities, or in repurchase agreements that are fully collateralized by

such securities.

2. Receiving, holding and disbursing of proceeds of the sale of bonds

out of this state.

Sec. 51. NRS 349.907 is hereby amended to read as follows:

349.907 "Expense of operation and maintenance" means any

reasonable and necessary current expense of the state for the operation,

maintenance or administration of the financing or of the collection and

administration of revenues from the financing, and includes, but is not

limited to:

1. Expenses for engineering, auditing, reporting or legal services and

any other expense incurred by the director which are directly related to the

administration of the financing;

2. Premiums for fidelity bonds and policies of property and liability

insurance pertaining to the financing;

3. Premiums for blanket bonds and policies, or any portion of, which

may be reasonably allocated to the state;

4. Payments to pension, retirement and health insurance and other

insurance funds;

6. Salaries or fees paid pursuant to any contract for professional

services;

7. Cost of materials, supplies and labor pertaining to the issuance of any

bonds, including the expenses of any trustee, receiver or other fiduciary; and

8. Costs incurred in the collection and any refund of revenues pursuant

to the financing.

Sec. 52. NRS 349.924 is hereby amended to read as follows:

349.924 The director shall adopt regulations for:

1. Investment and reinvestment of the proceeds designated for the

account for venture capital from the sale of bonds, including, but not limited

to:

(a) Bonds or other obligations of the United States.

(b) Bonds or other obligations, the payment of the principal and interest

of which is unconditionally guaranteed by the United States. (c) Obligations issued or guaranteed as to principal and interest by any

agency or person controlled or supervised by and acting as an

instrumentality of the United States pursuant to authority granted by the

Congress of the United States.

(d) Obligations issued or guaranteed by any state of the United States, or

any political subdivision of any state.

(e) Prime commercial paper.

(f) Prime finance company paper.

(g) Bankers' acceptances drawn on and accepted by commercial banks.

(h) Repurchase agreements fully secured by obligations issued or

guaranteed as to principal and interest by the United States or by any person

controlled or supervised by and acting as an instrumentality of the United

States pursuant to authority granted by the Congress of the United States.

including banks domiciled outside of the United States.

(j) Money market mutual funds that:

(1) Are registered with the Securities and Exchange Commission;

(2) Are rated by a nationally recognized rating service as "AAA" or its

equivalent; and

(3) Invest only in securities issued or guaranteed as to payment of

principal and interest by the Federal Government, or its agencies or

instrumentalities, or in repurchase agreements that are fully collateralized by

such securities.

2. Receiving, holding and disbursing of proceeds of the sale of bonds

by one or more banks or trust companies located within or outside of this

state.

This section does not expand the authority for investing the proceeds of

bonds placed in the fund for the retirement of bonds.

Sec. 53. NRS 349.939 is hereby amended to read as follows:

349.939 "Expense of operation and maintenance" means any

reasonable and necessary current expense of the state for the operation,

maintenance or administration of a water project or of the collection and

administration of revenues from a water project. The term includes, among

other expenses:

1. Expenses for engineering, auditing, reporting, legal services and

other expenses of the director which are directly related to the

administration of water projects.

2. Premiums for fidelity bonds and policies of property and liability

insurance pertaining to water projects, and shares of the premiums of

blanket bonds and policies which may be reasonably allocated to the state.

3. Payments to pension, retirement, health insurance and other

insurance funds.

4. Reasonable charges made by any paying agent, commercial bank,

bonds. 5. Services rendered under the terms of contracts, services of

professionally qualified persons, salaries, administrative expenses and the

cost of materials, supplies and labor pertaining to the issuance of any bonds,

including the expenses of any trustee, receiver or other fiduciary.

6. Costs incurred in the collection and any refund of revenues from the

water project, including the amount of the refund.

Sec. 54. NRS 350.512 is hereby amended to read as follows:

Sec. 55. NRS 350.564 is hereby amended to read as follows:

Sec. 56. NRS 350A.040 is hereby amended to read as follows:

350A.040 "Cost of a lending project" means all or any designated part

of the cost of any lending project, including any incidental cost pertaining to

such a project. The cost of a lending project may include, without limitation,

the costs of:

1. Surveys, audits, preliminary plans, other plans, specifications,

estimates and other costs of preparations.

2. Appraising, printing, estimating, advice, services of engineers,

architects, financial consultants, attorneys, clerical personnel and other

agents and employees.

3. Publishing, posting, mailing and otherwise giving notice, filing or

4. Establishment of a reserve for contingencies.

5. Interest on state securities for any time which does not exceed 3

years, discounts on such state securities, reserves for the payment of the

principal of and interest on such securities, replacement expenses and other

costs of issuing such securities.

6. Amending any resolution or other instrument authorizing the

issuance of, or otherwise relating to, state securities for any lending project.

7. Funding medium-term obligations.

8. Financing the issuance of state securities and any other expenses

necessary in connection with a lending project, as determined by the board. Sec. 57. NRS 350A.050 is hereby amended to read as follows:

350A.050 "Expense of operation and maintenance" means any

reasonable and necessary current expense of the state for the operation,

maintenance or administration of a lending project or of the collection and

administration of revenues therefrom. The term includes, without limitation:

1. Expenses for engineering, auditing, reporting, legal services and

other expenses of the state treasurer which are directly related to the

administration of lending projects.

2. Premiums for fidelity bonds and policies of property and liability

insurance pertaining to lending projects, and shares of the premiums of

blanket bonds and policies which may be reasonably allocated to lending

projects.

3. Payments to pension, retirement, health insurance and other

insurance funds.

4. Reasonable charges made by any paying agent, commercial bank,

securities.

5. Services rendered under the terms of contracts, services of

professionally qualified persons, salaries, administrative expenses and the

cost of materials, supplies and labor pertaining to the issuance of any state

securities, including the expenses of any trustee, receiver or other fiduciary.

6. Costs incurred in the collection and any refund of revenues from a

lending project, including the amount of the refund.

Sec. 58. NRS 354.603 is hereby amended to read as follows:

354.603 1. The board of trustees of any county school district, the

board of hospital trustees of any county hospital or the board of trustees of

any consolidated library district or district library may establish and

Insurance Corporation, or the legal successor of the Federal Deposit

Insurance Corporation,

for money deposited by the county treasurer which is by law to be

administered and expended by those boards.

(a) The board of trustees of the county school district, the board of

hospital trustees of the county hospital or the board of trustees of the

consolidated library district or district library adopts a resolution declaring

an intention to establish and administer a separate account in accordance

with the provisions of this section. (b) The board of trustees of the county school district, the board of

hospital trustees of the county hospital or the board of trustees of the

consolidated library district or district library sends a certificate to the

county treasurer, the county auditor, the board of county commissioners

and, in the case of the board of trustees of the county school district, to the

department of education, attested by the secretary of the board, declaring

the intention of the board to establish and administer a separate account in

accordance with the provisions of this section.

(c) The board of hospital trustees of the county hospital or the board of

trustees of the consolidated library district or district library submits

monthly reports, listing all transactions involving the separate account, to

the county treasurer, the county auditor and the board of county

commissioners. The reports must be certified by the secretary of the board.

In addition, the board shall give a full account and record of all money in

such an account upon request of the board of county commissioners.

school district established under the provisions of this section must be

composed of:

(a) The county school district fund; and

(b) The county school district building and sites fund.

trustees is designated the county hospital fund.

library district or district library established under the provisions of this

section must be composed of:

(a) The fund for the consolidated library or district library, as

appropriate; and

(b) The fund for capital projects of the consolidated library or district

library, as appropriate.

balance of the account.

to the purpose of the fund, excluding direct payments of principal and

interest on general obligation bonds, and including, but not limited to, debt

service, capital projects, capital outlay and operating expenses.

clear evidence of misuse or mismanagement of money in any separate

account, may order the closing of the account and the return of the money to

the county treasury to be administered in accordance with existing

provisions of law. The board of trustees of the county school district, the

board of hospital trustees of the county hospital or the board of trustees of

the consolidated library district or district library is entitled to a hearing

before the board of county commissioners.

Sec. 59. NRS 354.609 is hereby amended to read as follows:

354.609 1. The governing body of any local government may, by

authorized by law to engage.

detail, set forth the following:

account.

(d) The maximum dollar amount of any single expenditure.

3. Payments made out of any such accounts in accordance with the

establishing resolution may be made directly without approval of the

governing body of any local government.

approved by the governing body in the same manner as other claims against

Sec. 60. NRS 354.695 is hereby amended to read as follows:

354.695 1. As soon as practicable after taking over the management

of a local government, the department shall, with the approval of the

committee:

(a) Establish and implement a management policy and a financing plan

for the local government;

(b) Provide for the appointment of a financial manager for the local

government who is qualified to manage the fiscal affairs of the local

government;

(c) Provide for the appointment of any other persons necessary to enable

the local government to provide the basic services for which it was created

in the most economical and efficient manner possible;

money and assets of the local government;

(e) Impose such hiring restrictions as deemed necessary after considering

the recommendations of the financial manager;

(f) Negotiate and approve all contracts entered into by or on behalf of the

local government before execution and enter into such contracts on behalf

of the local government as the department deems necessary;

(g) Negotiate and approve all collective bargaining contracts to be

entered into by the local government, except issues submitted to a factfinder

whose findings and recommendations are final and binding pursuant to the

provisions of the Local Government Employee-Management Relations Act;

(h) Approve all expenditures of money from any fund or account and all

transfers of money from one fund to another; (i) Employ such technicians as are necessary for the improvement of the

financial condition of the local government;

(j) Meet with the creditors of the local government and formulate a debt

liquidation program;

(k) Approve the issuance of bonds or other forms of indebtedness by the

local government;

(l) Discharge any of the outstanding debts and obligations of the local

government; and

(m) Take any other actions necessary to ensure that the local government

provides the basic services for which it was created in the most economical

and efficient manner possible.

2. The department may provide for reimbursement from the local

government for the expenses it incurs in managing the local government. If

such reimbursement is not possible, the department may request an

allocation by the interim finance committee from the contingency fund

pursuant to NRS 353.266, 353.268 and 353.269.

3. The governing body of a local government which is being managed

by the department pursuant to this section may make recommendations to

the department or the financial manager concerning the management of the

local government.

4. Each state agency, board, department, commission, committee or

other entity of the state shall provide such technical assistance concerning

the management of the local government as is requested by the department.

5. The department may delegate any of the powers and duties imposed

by this section to the financial manager appointed pursuant to paragraph (b)

of subsection 1.

a local government pursuant to the provisions of subsection 1, that

management may only be terminated pursuant to NRS 354.725.

Sec. 61. NRS 355.140 is hereby amended to read as follows:

355.140 1. In addition to other investments provided for by a specific

statute, the following bonds and other securities are proper and lawful

investments of any of the money of this state, of its various departments,

institutions and agencies, and of the state insurance fund:

(a) Bonds and certificates of the United States;

(b) Bonds, notes, debentures and loans if they are underwritten by or

their payment is guaranteed by the United States;

(c) Obligations or certificates of the United States Postal Service, the

Federal National Mortgage Association, the Government National Mortgage

Association, the Federal Home Loan Banks, the Federal Home Loan

Mortgage Corporation or the Student Loan Marketing Association, whether

or not guaranteed by the United States;

(d) Bonds of this state or other states of the Union;

(e) Bonds of any county of this state or of other states

; (f) Bonds of incorporated cities in this state or in other states of the

Union, including special assessment district bonds if those bonds provide

that any deficiencies in the proceeds to pay the bonds are to be paid from

the general fund of the incorporated city;

(g) General obligation bonds of irrigation districts and drainage districts

in this state which are liens upon the property within those districts, if the

value of the property is found by the board or commission making the

investments to render the bonds financially sound over all other obligations

of the districts;

(h) Bonds of school districts within this state;

(i) Bonds of any general improvement district whose population is

200,000 or more and which is situated in two or more counties of this state

or of any other state, if:

(1) The bonds are general obligation bonds and constitute a lien upon

the property within the district which is subject to taxation; and

(2) That property is of an assessed valuation of not less than five times

the amount of the bonded indebtedness of the district;

(j) Medium-term obligations for counties, cities and school districts

authorized pursuant to chapter 350 of NRS;

(k) Loans bearing interest at a rate determined by the state board of

finance when secured by first mortgages on agricultural lands in this state of

not less than three times the value of the amount loaned, exclusive of

perishable improvements, and of unexceptional title and free from all

encumbrances;

(l) Farm loan bonds, consolidated farm loan bonds, debentures,

consolidated debentures and other obligations issued by federal land banks

and federal intermediate credit banks under the authority of the Federal

Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021

to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to

2259, inclusive, and bonds, debentures, consolidated debentures and other

obligations issued by banks for cooperatives under the authority of the Farm

Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the

Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, excluding

such money thereof as has been received or which may be received

hereafter from the Federal Government or received pursuant to some federal

law which governs the investment thereof;

(n) Bankers' acceptances of the kind and maturities made eligible by law

for rediscount with Federal Reserve banks or trust companies which are

members of the Federal Reserve System, except that acceptances may not

exceed 180 days' maturity, and may not, in aggregate value, exceed 20

percent of the total par value of the portfolio as determined on the date of

purchase; (o) Commercial paper issued by a corporation organized and operating in

the United States or by a depository institution licensed by the United States

or any state and operating in the United States that:

(1) At the time of purchase has a remaining term to maturity of no

more than 270 days; and

(2) Is rated by a nationally recognized rating service as "A-1," "P-1"

or its equivalent, or better,

except that investments pursuant to this paragraph may not, in aggregate

value, exceed 20 percent of the total par value of the portfolio as determined

on the date of purchase, and if the rating of an obligation is reduced to a

level that does not meet the requirements of this paragraph, it must be sold

as soon as possible;

(p) Notes, bonds and other unconditional obligations for the payment of

money, except certificates of deposit that do not qualify pursuant to

paragraph (m), issued by corporations organized and operating in the United

States or by depository institutions licensed by the United States or any state

and operating in the United States that:

(1) Are purchased from a registered broker-dealer;

(2) At the time of purchase have a remaining term to maturity of no

more than 5 years; and

(3) Are rated by a nationally recognized rating service as "A" or its

equivalent, or better,

except that investments pursuant to this paragraph may not, in aggregate

value, exceed 20 percent of the total par value of the portfolio, and if the

rating of an obligation is reduced to a level that does not meet the

requirements of this paragraph, it must be sold as soon as possible;

(q) Money market mutual funds which:

(1) Are registered with the Securities and Exchange Commission;

(2) Are rated by a nationally recognized rating service as "AAA" or its

equivalent; and

(3) Invest only in securities issued by the Federal Government or

agencies of the Federal Government or in repurchase agreements fully

collateralized by such securities;

(r) Collateralized mortgage obligations that are rated by a nationally

recognized rating service as "AAA" or its equivalent; and

rating service as "AAA" or its equivalent.

2. Repurchase agreements are proper and lawful investments of money

of the state and the state insurance fund for the purchase or sale of securities

which are negotiable and of the types listed in subsection 1 if made in

accordance with the following conditions:

(a) The state treasurer shall designate in advance and thereafter maintain

a list of qualified counterparties which:

(1) Regularly provide audited and, if available, unaudited financial

statements to the state treasurer; (2) The state treasurer has determined to have adequate capitalization

and earnings and appropriate assets to be highly credit worthy; and

(3) Have executed a written master repurchase agreement in a form

satisfactory to the state treasurer and the state board of finance pursuant to

which all repurchase agreements are entered into. The master repurchase

agreement must require the prompt delivery to the state treasurer and the

appointed custodian of written confirmations of all transactions conducted

thereunder, and must be developed giving consideration to the Federal

Bankruptcy Act.

(b) In all repurchase agreements:

(1) At or before the time money to pay the purchase price is

transferred, title to the purchased securities must be recorded in the name of

the appointed custodian, or the purchased securities must be delivered with

all appropriate, executed transfer instruments by physical delivery to the

custodian;

(2) The state must enter into a written contract with the custodian

appointed pursuant to subparagraph (1) which requires the custodian to:

(I) Disburse cash for repurchase agreements only upon receipt of

the underlying securities;

(II) Notify the state when the securities are marked to the market if

the required margin on the agreement is not maintained;

(III) Hold the securities separate from the assets of the custodian;

and

(IV) Report periodically to the state concerning the market value of

the securities;

(3) The market value of the purchased securities must exceed 102

percent of the repurchase price to be paid by the counterparty and the value

of the purchased securities must be marked to the market weekly;

(4) The date on which the securities are to be repurchased must not be

more than 90 days after the date of purchase; and

(5) The purchased securities must not have a term to maturity at the

time of purchase in excess of 10 years.

3. As used in subsection 2:

(a) "Counterparty" means a bank organized and operating or licensed to

operate in the United States pursuant to federal or state law or a securities

dealer which is:

(1) A registered broker-dealer;

(2) Designated by the Federal Reserve Bank of New York as a

"primary" dealer in United States government securities; and

(3) In full compliance with all applicable capital requirements.

(b) "Repurchase agreement" means a purchase of securities by the state

or state insurance fund from a counterparty which commits to repurchase

those securities or securities of the same issuer, description, issue date and

maturity on or before a specified date for a specified price. 4. No money of this state may be invested pursuant to a reverse-

repurchase agreement, except money invested pursuant to chapter 286 or

chapters 616A to 616D, inclusive, of NRS.

Sec. 62. NRS 355.165 is hereby amended to read as follows:

355.165 1. The local government pooled long-term investment

account is hereby created. The account must be administered by the state

treasurer.

2. All of the provisions of NRS 355.167 apply to the local government

pooled long-term investment account.

3. In addition to the investments which are permissible pursuant to

subsection 3 of NRS 355.167, the treasurer may invest the money in the

local government pooled long-term investment account in:

(a) Mutual funds which:

(1) Are registered with the Securities and Exchange Commission;

(2) Are rated in the highest rating category by at least one nationally

recognized rating service; and

(3) Invest only in securities issued by the Federal Government or

agencies of the Federal Government or in repurchase agreements fully

collateralized by such securities.

(b) An investment contract that is collateralized with securities issued by

the Federal Government or agencies of the Federal Government if:

(1) The collateral has a market value of at least 102 percent of the

amount invested and any accrued unpaid interest thereon;

(2) The treasurer receives a security interest in the collateral that is

fully perfected and the collateral is held in custody for the state by a third-

party agent of the state which is a commercial bank authorized to exercise

trust powers;

(3) The market value of the collateral is determined not less frequently

than weekly and, if the ratio required by subparagraph (1) is not met,

sufficient additional collateral is deposited with the agent of this state to

meet that ratio within 2 business days after the determination; and

(4) The party with whom the investment contract is executed is a

performance of that party is:

(I) An insurance company which has a rating on its ability to pay

claims of not less than "Aa2" by Moody's Investors Service, Inc., or "AA"

by Standard and Poor's Ratings Services, or their equivalent; or

(II) An entity which has a credit rating on its outstanding long-term

debt of not less than "A2" by Moody's Investors Service, Inc., or "A" by

Standard and Poor's Ratings Services, or their equivalent.

4. In addition to the reasonable charges against the account which the

state treasurer may assess pursuant to subsection 7 of NRS 355.167, the

state treasurer may, in the case of a local government pooled long-term

investment account, assess the costs:

(a) Associated with a calculation of any rebate of arbitrage profits which

is required to be paid to the Federal Government by 26 U.S.C. § 148; and (b) Of contracting with qualified persons to assist in the:

(1) Calculation of any rebate of arbitrage profits which is required to

be paid to the Federal Government by 26 U.S.C. § 148; and

(2) Administration of the account.

5. In addition to the quarterly computations of interest to be reinvested

for or paid to each participating local government pursuant to subsection 8

of NRS 355.167, the state treasurer may, in the case of a local government

pooled long-term investment account, compute and reinvest or pay the

interest more frequently. He may also base his computations on the amount

of interest accrued rather than the amount received.

6. The treasurer may establish one or more separate subaccounts in the

local government pooled long-term investment account for identified

investments that are made for and allocated to specific participating local

governments.

Sec. 63. NRS 355.169 is hereby amended to read as follows:

355.169 1. If an investment of the money of a county or other local

government is made by the county treasurer, whether separately or through a

pooling arrangement as provided in NRS 355.168, the county may, on

behalf of that local government, take any lawful action necessary to recover

the money invested if:

(a) The principal of and interest on any investment is not received when

due; or

whom the investment is made becomes insolvent or bankrupt or is placed in

receivership.

2. The expenses of any action taken pursuant to this section must be

paid from the money recovered and allocated among the funds from which

the investment is made in the same manner as any loss on an investment is

allocated. If the total amount of money recovered is insufficient to pay those

expenses, the excess amount is a charge against the county.

Sec. 64. NRS 355.170 is hereby amended to read as follows:

355.170 1. Except as otherwise provided in this section and in NRS

354.750, a board of county commissioners, a board of trustees of a county

school district or the governing body of an incorporated city may purchase

for investment the following securities and no others:

(a) Bonds and debentures of the United States, the maturity dates of

(b) Farm loan bonds, consolidated farm loan bonds, debentures,

consolidated debentures and other obligations issued by federal land banks

and federal intermediate credit banks under the authority of the Federal

Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021

to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to

2259, inclusive, and bonds, debentures, consolidated debentures and other

obligations issued by banks for cooperatives under the authority of the Farm

Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the

Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive. (c) Bills and notes of the United States Treasury, the maturity date of

(d) Obligations of an agency or instrumentality of the United States of

America or a corporation sponsored by the government, the maturity date of

(f) Securities which have been expressly authorized as investments for

local governments or agencies, as defined in NRS 354.474, by any

provision of Nevada Revised Statutes or by any special law.

(g) Subject to the limitations contained in NRS 355.177, negotiable notes

or short-time negotiable bonds issued by local governments of the State of

Nevada pursuant to NRS 350.091.

(h) Bankers' acceptances of the kind and maturities made eligible by law

for rediscount with Federal Reserve Banks, and generally accepted by banks

or trust companies which are members of the Federal Reserve System.

Eligible bankers' acceptances may not exceed 180 days' maturity.

Purchases of bankers' acceptances may not exceed 20 percent of the money

available to a local government for investment as determined on the date of

purchase.

(i) Obligations of state and local governments if:

(1) The interest on the obligation is exempt from gross income for

federal income tax purposes; and

(2) The obligation has been rated "A" or higher by one or more

nationally recognized bond credit rating agencies.

(j) Commercial paper issued by a corporation organized and operating in

the United States or by a depository institution licensed by the United States

or any state and operating in the United States that:

(1) Is purchased from a registered broker-dealer;

(2) At the time of purchase has a remaining term to maturity of no

more than 270 days; and

(3) Is rated by a nationally recognized rating service as "A-1," "P-1"

or its equivalent, or better,

except that investments pursuant to this paragraph may not, in aggregate

value, exceed 20 percent of the total portfolio as determined on the date of

purchase, and if the rating of an obligation is reduced to a level that does not

meet the requirements of this paragraph, it must be sold as soon as possible.

(k) Money market mutual funds which:

(1) Are registered with the Securities and Exchange Commission;

(2) Are rated by a nationally recognized rating service as "AAA" or its

equivalent; and

(3) Invest only in securities issued by the Federal Government or

agencies of the Federal Government or in repurchase agreements fully

collateralized by such securities.

2. Repurchase agreements are proper and lawful investments of money

of a board of county commissioners, a board of trustees of a county schooldistrict or a governing body of an incorporated city for the purchase or sale

of securities which are negotiable and of the types listed in subsection 1 if

made in accordance with the following conditions:

(a) The board of county commissioners, the board of trustees of the

school district or the governing body of the city shall designate in advance

and thereafter maintain a list of qualified counterparties which:

(1) Regularly provide audited and, if available, unaudited financial

statements;

(2) The board of county commissioners, the board of trustees of the

school district or the governing body of the city has determined to have

adequate capitalization and earnings and appropriate assets to be highly

credit worthy; and

(3) Have executed a written master repurchase agreement in a form

satisfactory to the board of county commissioners, the board of trustees of

the school district or the governing body of the city pursuant to which all

repurchase agreements are entered into. The master repurchase agreement

must require the prompt delivery to the board of county commissioners, the

board of trustees of the school district or the governing body of the city and

the appointed custodian of written confirmations of all transactions

conducted thereunder, and must be developed giving consideration to the

Federal Bankruptcy Act.

(b) In all repurchase agreements:

(1) At or before the time money to pay the purchase price is

transferred, title to the purchased securities must be recorded in the name of

the appointed custodian, or the purchased securities must be delivered with

all appropriate, executed transfer instruments by physical delivery to the

custodian;

(2) The board of county commissioners, the board of trustees of the

school district or the governing body of the city must enter a written

contract with the custodian appointed pursuant to subparagraph (1) which

requires the custodian to:

(I) Disburse cash for repurchase agreements only upon receipt of

the underlying securities;

(II) Notify the board of county commissioners, the board of trustees

of the school district or the governing body of the city when the securities

are marked to the market if the required margin on the agreement is not

maintained;

(III) Hold the securities separate from the assets of the custodian;

and

(IV) Report periodically to the board of county commissioners, the

board of trustees of the school district or the governing body of the city

concerning the market value of the securities;

(3) The market value of the purchased securities must exceed 102

percent of the repurchase price to be paid by the counterparty and the value

of the purchased securities must be marked to the market weekly; (4) The date on which the securities are to be repurchased must not be

more than 90 days after the date of purchase; and

(5) The purchased securities must not have a term to maturity at the

time of purchase in excess of 10 years.

3. The securities described in paragraphs (a), (b) and (c) of subsection 1

and the repurchase agreements described in subsection 2 may be purchased

when, in the opinion of the board of county commissioners, the board of

trustees of a county school district or the governing body of the city, there is

sufficient money in any fund of the county, the school district or city to

purchase those securities and the purchase will not result in the impairment

of the fund for the purposes for which it was created.

4. When the board of county commissioners, the board of trustees of a

county school district or governing body of the city has determined that

there is available money in any fund or funds for the purchase of bonds as

set out in subsection 1 or 2, those purchases may be made and the bonds

paid for out of any one or more of the funds, but the bonds must be credited

to the funds in the amounts purchased, and the money received from the

redemption of the bonds, as and when redeemed, must go back into the fund

or funds from which the purchase money was taken originally.

5. Any interest earned on money invested pursuant to subsection 3,

may, at the discretion of the board of county commissioners, the board of

trustees of a county school district or governing body of the city, be credited

to the fund from which the principal was taken or to the general fund of the

county, school district or incorporated city.

6. The board of county commissioners, the board of trustees of a county

school district or governing body of an incorporated city may invest any

money apportioned into funds and not invested pursuant to subsection 3 and

any money not apportioned into funds in bills and notes of the United States

Treasury, the maturity date of which is not more than 1 year after the date of

investment. These investments must be considered as cash for accounting

purposes, and all the interest earned on them must be credited to the general

fund of the county, school district or incorporated city.

7. This section does not authorize the investment of money

administered pursuant to a contract, debenture agreement or grant in a

manner not authorized by the terms of the contract, agreement or grant.

8. As used in this section:

(a) "Counterparty" means a bank organized and operating or licensed to

operate in the United States pursuant to federal or state law or a securities

dealer which is:

(1) A registered broker-dealer;

(2) Designated by the Federal Reserve Bank of New York as a

"primary" dealer in United States government securities; and

(3) In full compliance with all applicable capital requirements.

(b) "Repurchase agreement" means a purchase of securities by a board of

county commissioners, the board of trustees of a county school district or

the governing body of an incorporated city from a counterparty whichcommits to repurchase those securities or securities of the same issuer,

description, issue date and maturity on or before a specified date for a

specified price.

Sec. 65. NRS 355.210 is hereby amended to read as follows:

355.210 1. When any money has been deposited in any court pursuant

deposit will not be required for 90 days or more, the clerk or the judge, as

the case may be, may invest the money so deposited, either alone or by

2. The investment may be made:

State of Nevada; or

(b) In bills, bonds, debentures, notes or other securities whose purchase

by a board of county commissioners is authorized by NRS 355.170.

3. The interest earned from any investment of money pursuant to this

section shall be deposited to the credit of the general fund of the political

subdivision or municipality which supports the court.

4. The requirements of this section may be modified by an ordinance

adopted pursuant to the provisions of NRS 244.207.

Sec. 66. NRS 356.015 is hereby amended to read as follows:

356.015 1. The state treasurer shall establish the rate of interest to be

paid on the maturity of each time certificate of deposit.

2. The state treasurer shall make all such deposits through warrants of

the state controller.

3. The state controller shall maintain accurate records of inactive

constitute inactive deposits.

Sec. 67. NRS 356.025 is hereby amended to read as follows:

356.025 1. To be accepted as collateral for a deposit of money by the

state treasurer, first mortgages or first deeds of trust must be on real

property which is located in this state and is used for residences of single

families.

2. Each such first mortgage or first deed of trust must be accompanied

by the promissory note which it secures.

3. No first mortgage or first deed of trust may be accepted for such

collateral if:

(a) Any payment on the related promissory note is more than 30 days

past due;

(b) A prior lien is on the mortgage or deed;

(c) In the case of a mortgage, an action to foreclose has been commenced

or, in the case of a deed of trust, a notice of default and election to sell has

been recorded; (d) In the case of a loan which is not insured or guaranteed by the

Federal Government, the initial amount lent was greater than 80 percent of

the appraised value of the real property at the time the loan was made;

(e) The loan has been outstanding for less than 1 year;

(f) The grantor of the property resides on the property; or

(g) The loan does not meet the requirements for eligibility of the Federal

Home Loan Mortgage Corporation, the Federal National Mortgage

although it is not necessary that any of those agencies have participated in

4. If any collateral consisting of a promissory note with a mortgage or

deed of trust is found not to meet the requirements of this section, the

substitute a note of equal or greater value which does meet the

requirements.

5. The financial institution shall assign the pledged mortgages and

deeds of trust to the depositor and deliver them with their promissory notes

to the trust company. The assignment must be recorded when the financial

institution fails to pay any part of the deposit for which the security is

pledged.

Sec. 68. NRS 356.050 is hereby amended to read as follows:

356.050 1. Where the state treasurer, in accordance with the terms

and provisions of NRS 356.010 to 356.110, inclusive, has deposited and

kept on deposit any public money in depositories so designated, he is not

liable personally or upon his official bond for any public money that may be

lost by reason of the failure or insolvency of any such depository; but the

state treasurer is chargeable with the safekeeping, management and

disbursement of the bonds deposited with him as security for deposits of

state money and with interest thereon, and with the proceeds of any sale

under the provisions of NRS 356.010 to 356.110, inclusive.

2. The state treasurer may deposit for safekeeping with any insured

company within or without this state any securities or bonds pledged with

him, as state treasurer, as collateral or as security for any purpose, but the

securities or bonds may only be so deposited by him with the joint consent

and approval, in writing, of the pledgor thereof and the state board of

finance. Any bonds or securities so deposited by him must be deposited

under a written deposit agreement between the pledgor and the state

treasurer, to be held and released only upon a written order of the state

treasurer or his deputy, and signed by the governor or acting governor and

by one additional member of the state board of finance.

Secs. 69 and 70. (Deleted by amendment.)

Sec. 71. NRS 356.130 is hereby amended to read as follows:

356.130 Whenever the written consent of any bondsman or bondsmen

released from all responsibility on the bond of the county treasurer.

Secs. 72-75. (Deleted by amendment.)

Sec. 76. NRS 356.180 is hereby amended to read as follows:

356.180 If a warrant of the county auditor is presented to the county

treasurer for payment, the warrant becomes a check or order of the county

where payable, and a number, as provided in NRS 356.170, and

countersigns his name thereto as county treasurer.

Sec. 77. NRS 356.200 is hereby amended to read as follows:

356.200 1. With unanimous consent of his bondsmen, a county

officer, other than a county treasurer, may deposit county money received

by the office of the county officer in an insured bank, insured credit union

or insured savings and loan association located in the State of Nevada.

2. If the written consent of any bondsman to such a deposit has not been

obtained, the bondsman must, upon giving notice as required by law, be

released from all responsibility on the bond of the officer.

3. The accounts must be kept in the name of the county in such manner

as the board of county commissioners may prescribe.

4. The balance in each such account, as certified by the proper officer

of the bank, credit union or savings and loan association in which the money

is deposited, and by oath of the county treasurer, may be accounted for by

the county as cash.

5. All money deposited in any depository bank, credit union or savings

and loan association by such a county officer may be drawn out by him on

check or order payable only to the county treasurer or his order, but every

county assessor may also withdraw money received in payment for license

fees for motor vehicles by check or order payable to the department of

motor vehicles and public safety, and may also withdraw money received in

payment for use taxes for motor vehicles by check or order payable to the

department of taxation.

6. The county officer shall keep a register which shows the amount of

county money on deposit and lists every check or order drawn upon the

depository bank, credit union or savings and loan association, numbering

the items consecutively.

not later than the first Monday of each month and whenever the deposit

exceeds $100 for the full amount of county money deposited therein, a

withdrawal to be by check or order payable to the county treasurer, and

shall thereupon deliver the withdrawal to the county treasurer.

8. This section does not apply to any deposit made by the clerk of any

court pursuant to NRS 355.210.

Sec. 78. NRS 360.278 is hereby amended to read as follows:

360.278 The department and the state board of finance may enter into

contracts for armored car service or engage such service where necessary

Sec. 79. NRS 360.510 is hereby amended to read as follows:

360.510 1. If any person is delinquent in the payment of any tax or

fee administered by the department or if a determination has been made

against him which remains unpaid, the department may:

(a) Not later than 3 years after the payment became delinquent or the

determination became final; or

(b) Not later than 5 years after the last recording of an abstract of

judgment or of a certificate constituting a lien for tax owed,

give a notice of the delinquency and a demand to transmit personally or by

registered or certified mail to any person, including, without limitation, any

officer or department of the state or any political subdivision or agency of

the state, who has in his possession or under his control any credits or other

personal property belonging to the delinquent, or owing any debts to the

delinquent or person against whom a determination has been made which

remains unpaid, or owing any debts to the delinquent or that person. In the

case of any state officer, department or agency, the notice must be given to

the officer, department or agency before it presents the claim of the

delinquent taxpayer to the state controller.

2. A state officer, department or agency which receives such a notice

may satisfy any debt owed to it by that person before it honors the

department's notice.

3. After receiving the demand to transmit, the persons so notified may

not transfer or otherwise dispose of the credits, other personal property, or

debts in their possession or under their control at the time they received the

notice until the department consents to a transfer or other disposition.

4. All persons so notified shall, within 10 days after receipt of the

demand to transmit, inform the department of, and transmit to the

department all such credits, other personal property, or debts in their

possession, under their control or owing by them within the time and in the

manner requested by the department. Except as otherwise provided in

subsection 5, no further notice is required to be served to those persons.

5. If the property of the delinquent taxpayer consists of a series of

payments owed to him, the person who owes or controls the payments shall

transmit the payments to the department until otherwise notified by the

department. If the debt of the delinquent taxpayer is not paid within 1 year

after the department issued the original demand to transmit, it shall issue

another demand to transmit to the person responsible for making the

payments informing him to continue to transmit payments to the department

or that his duty to transmit the payments to the department has ceased.

6. If the notice of the delinquency seeks to prevent the transfer or other

institution at which the deposit is carried or at which the credits or personal

property is held.

7. If any person so notified makes any transfer or other disposition of

the property or debts required to be withheld or transmitted, to the extent of

the value of the property or the amount of the debts thus transferred or paid,

he is liable to the state for any indebtedness due pursuant to NRS 482.313,

this chapter or chapter 362, 364A, 365, 369, 370, 372, 372A, 373, 374, 377,

377A, 444A, 585, 590 or 680B of NRS from the person with respect to

whose obligation the notice was given if solely by reason of the transfer or

other disposition the state is unable to recover the indebtedness of the

person with respect to whose obligation the notice was given.

Sec. 80. NRS 364A.140 is hereby amended to read as follows:

364A.140 1. A tax is hereby imposed upon the privilege of

conducting business in this state. The tax for each calendar quarter is due on

the last day of the quarter and must be paid on or before the last day of the

month immediately following the quarter on the basis of the total number of

equivalent full-time employees employed by the business in the quarter.

2. The total number of equivalent full-time employees employed by the

business in the quarter must be calculated pursuant to NRS 364A.150.

3. Except as otherwise provided in NRS 364A.152 and 364A.170, the

amount of tax due per quarter for a business is $25 for each equivalent full-

time employee employed by the business in the quarter.

4. Each business shall file a return on a form prescribed by the

department with each remittance of the tax. If the payment due is greater

requirement pursuant to regulations adopted by the commission. The return

must include a statement of the number of equivalent full-time employees

employed by the business in the preceding quarter and any other

information the department determines is necessary.

5. The commission shall adopt regulations concerning the payment of

the tax imposed pursuant to this section by direct deposit.

Sec. 81. NRS 387.090 is hereby amended to read as follows:

387.090 The board of trustees of each school district and the governing

body of each charter school may:

1. Operate or provide for the operation of programs of nutrition in the

public schools under their jurisdiction.

2. Use therefor money disbursed to them pursuant to the provisions of

NRS 387.070 to 387.105, inclusive, gifts, donations and other money

received from the sale of food under those programs.

facilities for the operation of the programs.

Sec. 82. NRS 394.271 is hereby amended to read as follows:

394.271 1. Except as otherwise provided in this section, at the time

application is made for an agent's permit, a license to operate or a license

renewal, the superintendent shall require the elementary or secondary

educational institution making the application to file a good and sufficient

surety bond in the sum of not less than $5,000. The bond must be executed

by the applicant as principal and by a surety company qualified and

authorized to do business in this state. The bond must be made payable to

the State of Nevada and be conditioned to provide indemnification to any

pupil, enrollee or his parent or guardian determined to have suffered

damage as a result of any act by any elementary or secondary educational

institution or its agent which is a violation of any provision of NRS 394.201

to 394.351, inclusive, and the bonding company shall pay any final,

nonappealable judgment of any court of this state that has jurisdiction, upon

receipt of written notice of final judgment. The bond may be continuous but,

regardless of the duration of the bond, the aggregate liability of the surety

does not exceed the penal sum of the bond.

2. The surety bond must cover the period of the license or the agent's

permit, as appropriate, except when a surety is released.

3. A surety on any bond filed pursuant to this section may be released

after the surety gives 30 days' written notice to the superintendent, but the

release does not discharge or otherwise affect any claim filed by a pupil,

enrollee or his parent or guardian for damage resulting from any act of the

elementary or secondary educational institution or agent which is alleged to

have occurred while the bond was in effect, nor for an institution's closing

operations during the term for which tuition had been paid while the bond

was in force.

4. In lieu of the bond otherwise required by this section, an institution

may purchase a certificate of deposit in an amount of not less than $5,000

may be withdrawn only on the order of the superintendent, except that the

interest may accrue to the institution. Any pupil, enrollee or his parent or

guardian who suffers damage as the result of an act described in subsection

1 may bring and maintain an action to recover against the certificate of

deposit.

5. A license or an agent's permit is suspended by operation of law when

the institution or agent is no longer covered by a surety bond as required by

this section and no deposit has been made pursuant to subsection 4 or the

deposit has been withdrawn. If a bond has been filed, the superintendent

shall give the institution or agent, or both, at least 30 days' written notice

before the release of the surety that the license or permit will be suspended

by operation of law until another surety bond is filed in the same manner

and amount as the bond being terminated. Sec. 83. NRS 396.383 is hereby amended to read as follows:

396.383 1. The University and Community College System of

Nevada accounts payable revolving fund is hereby created. The board of

2. The chief business officer of each business center of the system shall:

(a) Pay from the fund such operating expenses of the system as the board

of regents may by rule prescribe.

(b) Submit claims to the state board of examiners for money of the

system on deposit in the state treasury or elsewhere to replace money paid

from the University and Community College System of Nevada accounts

payable revolving fund.

Sec. 84. NRS 396.7954 is hereby amended to read as follows:

behalf of the desert research institute pursuant to NRS 396.7952, may be

deposited by the board of regents to the credit of the desert research institute

the State of Nevada. Such deposits may be either time deposits or on open

account subject to check without notice. The board of regents may act

through any authorized agent or agents in depositing or withdrawing any

Sec. 85. NRS 396.7974 is hereby amended to read as follows:

396.7974 Any money received by the board of regents on behalf of the

ethics institute pursuant to NRS 396.7972, may be deposited by the board of

may act through any authorized agent in depositing or withdrawing any

money in such an account.

Sec. 86. NRS 396.815 is hereby amended to read as follows:

Sec. 87. NRS 396.836 is hereby amended to read as follows:

Sec. 89. NRS 408.240 is hereby amended to read as follows:

408.240 1. The state highway revolving account is hereby established

in an amount not to exceed $500,000. The money in the account may be

used by the department to provide advances to employees of the department

for travel expenses and subsistence allowances and for paying travel

expenses and subsistence allowances and other charges and obligations

requiring prompt payment, and for no other purposes.

2. The state controller shall draw his warrant to establish an amount of

$125,000 in the account. Thereafter, upon written request of the board, as it

deems increases in the account to be necessary, the controller shall draw

additional warrants. Upon presentation of such a warrant to the state

treasurer, the state treasurer shall pay it.

3. All money paid by the department from the state highway revolving

account must, after payment thereof, be passed upon by the state board of

examiners in the same manner as other claims against the state. When

approved by the state board of examiners, the state controller shall draw his

warrant for the amount of the money paid in favor of the state highway

revolving account to be paid to the order of the director, and the state

treasurer shall pay the warrant.

4. The director shall deposit the state highway revolving account in one

by a depositary bond satisfactory to the state board of examiners.

5. A least once each calendar quarter, the director shall transfer any

interest and other income earned on the money in the state highway

revolving account to the state highway fund.

Sec. 90. NRS 408.383 is hereby amended to read as follows:

408.383 1. Except as otherwise provided in subsections 2 and 11, the

director may pay at the end of each calendar month, or as soon thereafter as

practicable, to any contractor satisfactorily performing any highway

improvement or construction as the work progresses in full for the work as

completed but not more than 95 percent of the entire contract price. The

progress estimates must be based upon materials in place, or on the job site,

or at a location approved by the director, and invoiced, and labor expended

thereon. The remaining 5 percent, but not more than $50,000, must be

retained until the entire contract is completed satisfactorily and accepted by

the director.

2. If the work in progress is being performed on a satisfactory basis, the

director may reduce the percentage retained if he finds that sufficient

reasons exist for additional payment and has obtained written approval from

every surety furnishing bonds for the work. Any remaining money must be

retained until the entire contract is completed satisfactorily and accepted by

the director.

3. If it becomes necessary for the department to take over the

completion of any highway contract or contracts, all of the amounts owing

the contractor, including the withheld percentage, must first be appliedtoward the cost of completion of the contract or contracts. Any balance

remaining in the retained percentage after completion by the department is

payable to the contractor or the contractor's creditors.

4. Such retained percentage as may be due any contractor is due and

payable at the expiration of the 30-day period as provided in NRS 408.363

for filing of creditors' claims, and this retained percentage is due and

payable to the contractor at that time without regard to creditors' claims

filed with the department.

5. The contractor under any contract made or awarded by the

department, including any contract for the construction, improvement,

maintenance or repair of any road or highway or the appurtenances thereto,

may, from time to time, withdraw the whole or any portion of the sums

otherwise due to the contractor under the contract which are retained by the

department, pursuant to the terms of the contract, if the contractor deposits

with the director:

(a) United States treasury bonds, United States treasury notes, United

States treasury certificates of indebtedness or United States treasury bills;

(b) Bonds or notes of the State of Nevada; or

(c) General obligation bonds of any political subdivision of the State of

Nevada.

Certificates of deposit must be of a market value not exceeding par, at the

time of deposit, but at least equal in value to the amount so withdrawn from

payments retained under the contract.

6. The director has the power to enter into a contract or agreement with

company located in the State of Nevada, designated by the contractor after

notice to the owner and surety, to provide for the custodial care and

servicing of any obligations deposited with him pursuant to this section.

Such services include the safekeeping of the obligations and the rendering

of all services required to effectuate the purposes of this section.

company or safe deposit company located in the State of Nevada,

designated by the contractor to serve as custodian for the obligations

pursuant to subsection 6, shall collect all interest or income when due on the

obligations so deposited and shall pay them, when and as collected, to the

contractor who deposited the obligation. If the deposit is in the form of

coupon bonds, the director shall deliver each coupon as it matures to the

contractor.

8. Any amount deducted by the State of Nevada, or pursuant to the

terms of a contract, from the retained payments otherwise due to the

contractor thereunder, must be deducted first from that portion of the

retained payments for which no obligation has been substituted, then from

the proceeds of any deposited obligation. In the latter case, the contractor is

entitled to receive the interest, coupons or income only from those

obligations which remain on deposit after that amount has been deducted. 9. A contractor shall disburse money paid to him pursuant to this

section, including any interest that the contractor receives, to his

subcontractors and suppliers within 15 days after he receives the money in

the proportion that the value of the work performed by each subcontractor

or the materials furnished by each supplier bears to the total amount of the

contract between the principal contractor and the department.

10. Money payable to a subcontractor or supplier accrues interest at a

rate equal to the lowest daily prime rate at the three largest banks in the

United States on the date the subcontract or order for supplies was executed

plus 2 percent, from 15 days after the money was received by the principal

contractor until the date of payment.

11. If a contractor withholds more than 10 percent of a payment

required by subsection 9, the subcontractor or supplier may inform the

director in writing of the amount due. The director shall attempt to resolve

the dispute between the contractor and the subcontractor or supplier within

20 working days after the date that the director receives notice of the

amount due. If the dispute is not resolved within 20 working days after the

date that the director receives notice of the amount due, the contractor shall

deposit the disputed amount in an escrow account that bears interest. The

contractor, subcontractor or supplier may pursue any legal or equitable

remedy to resolve the dispute over the amount due. The director may not be

made a party to any legal or equitable action brought by the contractor,

subcontractor or supplier.

Sec. 91. NRS 417.130 is hereby amended to read as follows:

417.130 1. Notwithstanding the provisions of subsection 2 of NRS

417.110, the executive director may receive a fee, in an amount set by the

court, for his guardianship services in any estate where the ward dies

leaving no will or heirs.

for veterans' relief.

Sec. 92. NRS 417.140 is hereby amended to read as follows:

417.140 1. The money in the account for veterans' relief must, in the

discretion of the executive director, be used to aid destitute veterans and

their dependents.

2. The executive director shall deposit the money in the account in:

3. The executive director shall keep an accurate record of any receipt or

deposit, and of any withdrawal from any account provided in subsection 2.

Any record of withdrawal must contain the following information:

(a) The date of the withdrawal.

(b) The name of the payee.

(c) The purpose of the expenditure.

Sec. 93. NRS 423.085 is hereby amended to read as follows:

423.085 Each superintendent may establish a savings account with a

that was not appropriated by the State of Nevada but which is held for the

benefit of the children in:

1. The children's home; or

2. Any other home or structure in which shelter and care is provided to

the children under a contract entered into pursuant to NRS 423.147.

Sec. 94. NRS 423.135 is hereby amended to read as follows:

423.135 1. The Nevada children's gift revolving account is hereby

created. All money in the Nevada children's gift revolving account must be

deposited in a financial institution qualified to receive deposits of public

money and must be secured with a depository bond that is satisfactory to the

state board of examiners, unless it is otherwise secured by the Federal

2. The money in the Nevada children's gift revolving account may be

distributed by the division to foster parents, upon request, on the basis of

need, to pay the costs associated with participation by a child in foster care

in intramural, recreational, social, school and sports-related activities,

including, but not limited to, uniforms and equipment, the rental of musical

instruments, registration fees and art lessons.

3. All requests for distributions of money from the Nevada children's

gift revolving account must be made to the division in writing. The person

making the request must demonstrate that all other resources for money to

pay for the activity have been exhausted.

4. The division shall develop policies for the administration of this

section.

5. Purchases made by the division pursuant to this section are exempt

from the provisions of the State Purchasing Act.

6. The balance in the Nevada children's gift revolving account must be

carried forward at the end of each fiscal year.

Sec. 95. NRS 426.565 is hereby amended to read as follows:

426.565 1. There is hereby created the services to the blind revolving

account, in the amount of $25,000, which must be used by the chief for the

purposes of:

(a) Providing inventories of tools, aids, appliances, supplies and other

accessories used by the blind; and

(b) Payment of the claims of applicants for or recipients of services of

the bureau and vendors providing services to those applicants or recipients,

including maintenance and transportation.

The chief shall sell tools, aids, appliances, supplies and other accessories

used by the blind at cost or at cost plus the costs of administration and

receipts must be deposited forthwith in the services to the blind revolving

account.

2. The chief shall deposit the money in the services to the blind

public money. The deposit must be secured by a depository bondsatisfactory to the state board of examiners, unless otherwise secured by the

3. Purchases made for the purpose of providing and maintaining the

inventories authorized by subsection 1 are exempt from the provisions of

the State Purchasing Act at the discretion of the chief of the purchasing

division of the department of administration or his designated

representative.

4. The bureau shall:

(a) Maintain current inventory records of all merchandise charged to the

services to the blind revolving account;

(b) Conduct a periodic physical count of all the merchandise; and

(c) Reconcile the results of the periodic physical count with all assets and

liabilities of the account.

The balance in the revolving account must equal $25,000 after subtracting

the accounts payable from the total of the cash, inventories and receivables.

5. After expenditure of money for payment of the claims of applicants

for or recipients of services from the bureau and vendors providing services

to those applicants or recipients, including maintenance and transportation,

from the services to the blind revolving account, the chief shall present a

claim to the state board of examiners. When approved by the state board of

examiners, the state controller shall draw his warrant in the amount of the

claim in favor of the services to the blind revolving account and the state

treasurer shall pay it. The receipt must be deposited forthwith in the services

to the blind revolving account.

Sec. 96. NRS 426.677 is hereby amended to read as follows:

426.677 1. The bureau may, in interim periods when no blind licensee

is available to operate a vending facility and its continuous operation is

qualified to receive deposits of public money pursuant to chapter 356 of

NRS. All money received from the vending facility during the interim

period must be deposited to the account and all expenses necessary to

maintain the interim operation of the facility must be paid from the account.

2. If the blind licensee who operated the facility returns after a

temporary disability, the bureau shall prepare a financial report and close

the checking account by making a check in the amount of any balance

remaining in the account payable to the licensee.

3. If a blind licensee other than the one who previously operated the

facility is permanently assigned to it, the bureau shall prepare a financial

report and close the checking account by making a check in the amount of

any balance remaining in the account payable to the business enterprise

account for the blind.

Sec. 97. NRS 432.038 is hereby amended to read as follows:

432.038 Subject to the approval and regulations of the state board of

other case-work functions of the division pursuant to NRS 432.010 to

432.085, inclusive.

Sec. 98. NRS 432.095 is hereby amended to read as follows:

432.095 1. There is hereby created the placement prevention

revolving account in the amount of $25,000 to be used for the payment of

claims of recipients of goods or services from the division and vendors

providing goods or services to those recipients pursuant to procedures

established by the division.

2. Upon written request from the administrator, the state controller shall

draw his warrant from money already authorized for the use of the division

in the sum of $25,000. When the warrant is paid, the administrator shall

deposit the money in a financial institution qualified to receive deposits of

public money. All money deposited in the placement prevention revolving

account pursuant to this section must be secured with a depository bond that

is satisfactory to the state board of examiners, unless it is otherwise secured

3. After an expenditure of money from the placement prevention

revolving account, the administrator shall present a claim to the state board

of examiners to maintain a balance of $25,000. If the claim is approved by

the state board of examiners, the state controller shall draw his warrant from

money already authorized for the use of the division in the amount of the

claim in favor of the placement prevention revolving account, and the state

treasurer shall pay the warrant.

4. Money in the placement prevention revolving account does not revert

to the state general fund at the end of the fiscal year, and the balance in the

account must be carried forward.

5. Purchases made by the division pursuant to this section are exempt

from the State Purchasing Act.

Sec. 99. NRS 433.424 is hereby amended to read as follows:

433.424 A mental health and mental retardation center revolving

account up to the amount of $5,000 is hereby created for each division

mental health and mental retardation center, and may be used for the

payment of mental health or mental retardation center bills requiring

immediate payment and for no other purposes. The respective

administrative officers shall deposit the money for the respective revolving

Payments made from each account must be promptly reimbursed from

appropriated money of the respective mental health or mental retardation

centers on claims as other claims against the state are paid.

Sec. 100. NRS 433.539 is hereby amended to read as follows:

433.539 1. There may be maintained as a trust fund at each division

facility a clients' personal deposit fund. 2. Money coming into the possession of the administrative officer of a

division facility which belongs to a client must be credited in the fund in the

name of that client.

3. When practicable, individual credits in the fund must not exceed the

sum of $300.

4. Any amounts to the credit of a client may be used for purchasing

personal necessities, for expenses of burial or may be turned over to the

client upon his demand, except that when the client is adjudicated mentally

incompetent the guardian of his estate has the right to demand and receive

the money.

5. An amount accepted for the benefit of a client for a special purpose

must be reserved for that purpose regardless of the total amount to the credit

of the client.

officers shall deposit any money received for the funds of their respective

of reputable standing. When deposits in a commercial account exceed

$15,000, the administrative officer may deposit the excess in a savings

account paying interest in any reputable commercial bank, or in any

name of the fund. Interest paid on deposits in the savings account may be

used for recreational purposes at the division facility.

7. The administrative officers may maintain at their respective division

facilities petty cash of not more than $400 of the money in the clients'

personal deposit fund to enable clients to withdraw small sums from their

accounts.

Sec. 101. NRS 433A.090 is hereby amended to read as follows:

433A.090 There is hereby created a revolving account for the mental

health institute in the sum of $7,500, which may be used for the payment of

bills of the institute requiring immediate payment and for no other purpose.

The administrative officer for the institute shall deposit the revolving

Payments made from the revolving account must be promptly reimbursed

from appropriated money of the institute as other claims against the state are

paid.

Sec. 102. NRS 433B.270 is hereby amended to read as follows:

433B.270 A revolving account of not more than $5,000 is hereby

created for each division facility. Money in the respective revolving

accounts may be expended only for the payment of bills of the respective

division facilities requiring immediate payment. The respective

administrative officers shall deposit the money for the respective revolving

Payments made from each account must be promptly reimbursed fromappropriated money of the respective division facilities on claims as other

claims against the state are paid.

Sec. 103. NRS 435.390 is hereby amended to read as follows:

435.390 1. The administrative officer of any division facility where

mentally retarded persons reside may establish a canteen operated for the

benefit of clients and employees of the facility. The administrative officer

shall keep a record of transactions in the operation of the canteen.

2. Each canteen must be self-supporting. No money provided by the

state may be used for its operation.

3. The respective administrative officers shall deposit the money used

reputable standing, except that an appropriate sum may be maintained as

petty cash at each canteen.

Sec. 104. NRS 440.690 is hereby amended to read as follows:

440.690 1. The state registrar shall keep a true and correct account of

all fees received under this chapter.

2. The money collected pursuant to subsection 2 of NRS 440.700 must

be remitted by the state registrar to the state treasurer for credit to the

children's trust account, and any other proceeds accruing to the State of

Nevada under the provisions of this chapter must be forwarded to the state

treasurer for deposit in the state general fund.

3. Upon the approval of the state board of examiners and pursuant to its

for vital statistics.

Sec. 105. NRS 452.160 is hereby amended to read as follows:

452.160 1. Endowment care funds must not be used for any purpose

other than to provide, through income only, for the reserves authorized by

law and for the endowment care of the cemetery in accordance with the

resolutions, bylaws, rules and regulations or other actions or instruments of

the cemetery authority.

2. The funds must be invested and reinvested in:

(a) Bonds of the United States;

(b) Bonds of this state or the bonds of other states;

(c) Bonds of counties or municipalities of any state;

(d) With the approval of the administrator, first mortgages or first trust

deeds on improved real estate;

(f) With the written approval of the administrator, any investment which

would be proper under the provisions of NRS 164.050.

Pending investment as provided in this subsection, such funds may be

3. Each cemetery authority operating an endowment care cemetery shall

submit to the administrator annually, on a form prescribed and adopted by

the administrator, a financial statement of the condition of its endowment

care fund. The statement must be accompanied by a fee of $10. If the

statement is not received by the administrator he may, after giving 10 days'

notice, revoke the cemetery authority's certificate of authority.

Sec. 106. NRS 452.720 is hereby amended to read as follows:

452.720 1. Money held in trust for the endowment care of a cemetery

for pets must not be used for any purpose other than to provide, through

income only, for the reserves authorized by law and for the endowment care

of the cemetery in accordance with the resolutions, bylaws, rules and

regulations or other actions or instruments of the cemetery authority.

2. The money must be invested and reinvested in:

(a) Bonds of the United States;

(b) Bonds of this state or the bonds of other states;

(c) Bonds of counties or municipalities of any state;

(d) With the approval of the administrator, first mortgages or first trust

deeds on improved real estate;

(f) With the written approval of the administrator, any investment which

would be proper under the provisions of NRS 164.050.

Pending investment as provided in this subsection, such money may be

3. Each cemetery authority shall annually submit to the administrator,

on a form prescribed and adopted by the administrator, a financial statement

of the condition of its trust fund for the endowment care of the cemetery.

The statement must be accompanied by a fee of $10. If the statement is not

received by the administrator he may, after giving 10 days' notice, revoke

the cemetery authority's certificate of authority.

Sec. 107. NRS 463.330 is hereby amended to read as follows:

463.330 1. Costs of administration of this chapter incurred by the

commission and the gaming control board must be paid from the state

general fund on claims presented by the commission and the board,

respectively, and approved and paid as other claims against the state are

paid. The commission and the board shall comply with the provisions of the

State Budget Act in order that legislative authorization for budgeted

expenditures may be provided.

2. In order to facilitate the confidential investigation of violations of

revolving account. Upon the written request of the chairman of the board,

the state controller shall draw his warrant in favor of the chairman in the

amount of $10,000, and upon presentation of the warrant to the state

treasurer, he shall pay it. When the warrant is paid, the chairman shall

the state board of examiners.

3. The chairman of the board may use the revolving account to pay the

reasonable expenses of agents and employees of the board engaged in

confidential investigations concerning the enforcement of this chapter,

including the prepayment of expenses where necessary, whether such

expenses are incurred for investigation of known or suspected violations. In

allowing such expenses the chairman is not limited or bound by the

provisions of NRS 281.160.

4. After the expenditure of money from the revolving account, the

chairman of the board shall present a claim to the state board of examiners

for the amount of the expenditure to be replaced in the revolving account.

The claim must be audited, allowed and paid as are other claims against the

state, but the claim must not detail the investigation made as to the agent or

employee making the investigation or the person or persons investigated. If

the state board of examiners is not satisfied with the claim, the members

thereof may orally examine the chairman concerning the claim.

5. Expenditures from the revolving account may not exceed the amount

Sec. 108. NRS 463.368 is hereby amended to read as follows:

463.368 1. A credit instrument accepted on or after June 1, 1983, and

the debt that the credit instrument represents are valid and may be enforced

by legal process.

2. A licensee or a person acting on behalf of a licensee may accept an

incomplete credit instrument which:

(a) Is signed by a patron; and

(b) States the amount of the debt in figures,

and may complete the instrument as is necessary for the instrument to be

presented for payment.

3. A licensee or person acting on behalf of a licensee:

(a) May accept a credit instrument that is payable to an affiliated

company or may complete a credit instrument in the name of an affiliated

company as payee if the credit instrument otherwise complies with this

subsection and the records of the affiliated company pertaining to the credit

instrument are made available to agents of the board upon request.

the patron incurs the debt. The credit instrument and the debt that the credit

instrument represents are enforceable without regard to whether the credit

instrument was accepted before, at the time or after the debt is incurred. 4. This section does not prohibit the establishment of an account by a

deposit of cash, recognized traveler's check, or any other instrument which

is equivalent to cash.

5. If a credit instrument is lost or destroyed, the debt represented by the

credit instrument may be enforced if the licensee or person if acting on

behalf of the licensee can prove the existence of the credit instrument.

6. A patron's claim of having a mental or behavioral disorder involving

gambling:

(a) Is not a defense in any action by a licensee or a person acting on

behalf of a licensee to enforce a credit instrument or the debt that the credit

instrument represents.

(b) Is not a valid counterclaim to such an action.

7. Any person who violates the provisions of this section is subject only

to the penalties provided in NRS 463.310 to 463.318, inclusive. The failure

of a person to comply with the provisions of this section or the regulations

of the commission does not invalidate a credit instrument or affect the

ability to enforce the credit instrument or the debt that the credit instrument

represents.

8. The commission may adopt regulations prescribing the conditions

Sec. 109. NRS 481.260 is hereby amended to read as follows:

481.260 1. The director may expend money appropriated for that

purpose, as he determines necessary, to assist local law enforcement

agencies or the investigation division in the purchase of evidence and in

employing persons other than peace officers to obtain evidence.

2. Upon receiving a written request from the director for money

appropriated pursuant to this section, the state controller shall draw his

warrant, payable to the director, in an amount which does not exceed any

limit set by the legislature in the appropriation.

3. The director may keep money which he has drawn pursuant to this

cash.

Sec. 110. NRS 482.3337 is hereby amended to read as follows:

482.3337 1. Each broker shall open and maintain a separate trust

deposit on a vehicle. A broker shall not:

(a) Commingle the money in the trust account with any money that is not

a deposit on a vehicle.

(b) Use any money in the trust account to pay his operational expenses.

2. A broker shall not require the buyer of a vehicle to pay a deposit on a

vehicle in an amount that exceeds 10 percent of the purchase price of the

vehicle. Sec. 111. NRS 482.346 is hereby amended to read as follows:

482.346 1. In lieu of a bond an applicant may deposit with the

department, under terms prescribed by the department:

(a) A like amount of lawful money of the United States or bonds of the

United States or of the State of Nevada of an actual market value of not less

than the amount fixed by the department; or

association situated in Nevada, which must indicate an account of an

amount equal to the amount of the bond which would otherwise be required

by NRS 482.345 and that this amount is unavailable for withdrawal except

upon order of the department. Interest earned on the amount accrues to the

account of the applicant.

2. A deposit made pursuant to subsection 1 may be disbursed by the

director, for good cause shown and after notice and opportunity for hearing,

in an amount determined by him to compensate a person injured by an

action of the licensee, or released upon receipt of:

(a) A court order requiring the director to release all or a specified

portion of the deposit; or

(b) A statement signed by the person or persons under whose name the

deposit is made and acknowledged before any person authorized to take

acknowledgments in this state, requesting the director to release the deposit,

or a specified portion thereof, and stating the purpose for which the release

is requested.

3. When a deposit is made pursuant to subsection 1, liability under the

deposit is in the amount prescribed by the department. If the amount of the

deposit is reduced or there is an outstanding court judgment for which the

licensee is liable under the deposit, the license is automatically suspended.

The license must be reinstated if the licensee:

(a) Files an additional bond pursuant to subsection 1 of NRS 482.345;

(b) Restores the deposit with the department to the original amount

required under this section; or

(c) Satisfies the outstanding judgment for which he is liable under the

deposit.

4. A deposit made pursuant to subsection 1 may be refunded:

director is satisfied that there are no outstanding claims against the deposit;

or

department, upon evidence satisfactory to the court that there are no

outstanding claims against the deposit.

5. Any money received by the department pursuant to subsection 1 must

be deposited with the state treasurer for credit to the motor vehicle fund.

Sec. 112. NRS 487.060 is hereby amended to read as follows:

487.060 1. No license may be issued to an automobile wrecker until

he has procured and filed with the department a good and sufficient bond in

the amount of $50,000, with a corporate surety thereon licensed to do

business in the State of Nevada, approved as to form by the attorney

general, and conditioned that the applicant conducts his business as a

wrecker without fraud or fraudulent representation, and without violation of

department may, by agreement with any automobile wrecker who has been

licensed for 5 years or more by the department or a department of motor

vehicles in another state, reduce the amount of the bond of the wrecker, if

the business of that wrecker has been conducted satisfactorily for the

preceding 5 years, but no bond may be in an amount less than $5,000. The

department shall make the necessary investigation to determine whether a

wrecker licensed in another state has conducted its business satisfactorily.

2. The bond may be continuous in form and the total aggregate liability

on the bond must be limited to the payment of the total amount of the bond.

3. The bond must provide that any person injured by the action of the

automobile wrecker in violation of any of the provisions of NRS 487.045 to

487.160, inclusive, may apply to the director for compensation from the

bond. The director, for good cause shown and after notice and opportunity

for hearing, may determine the amount of compensation and the person to

whom it is to be paid. The surety shall then make the payment.

4. In lieu of a bond an automobile wrecker may deposit with the

department, under the terms prescribed by the department:

(a) A like amount of money or bonds of the United States or of the State

of Nevada of an actual market value of not less than the amount fixed by the

department; or

association situated in Nevada, which must indicate an account of an

amount equal to the amount of the bond which would otherwise be required

by this section and that this amount is unavailable for withdrawal except

upon order of the department. Interest earned on the certificate accrues to

the account of the applicant.

5. A deposit made pursuant to subsection 4 may be disbursed by the

director, for good cause shown and after notice and opportunity for hearing,

in an amount determined by him to compensate a person injured by an

action of the licensee, or released upon receipt of:

(a) A court order requiring the director to release all or a specified

portion of the deposit; or

(b) A statement signed by the person in whose name the deposit is made

and acknowledged before any person authorized to take acknowledgments

in this state, requesting the director to release the deposit, or a specified

portion thereof, and stating the purpose for which the release is requested.

6. When a deposit is made pursuant to subsection 4, liability under the

deposit is in the amount prescribed by the department. If the amount of thedeposit is reduced or there is an outstanding judgment for which the licensee

is liable under the deposit, the license is automatically suspended. The

license must be reinstated if the licensee:

(a) Files an additional bond pursuant to subsection 1;

(b) Restores the deposit with the department to the original amount

required under this section; or

(c) Satisfies the outstanding judgment for which he is liable under the

deposit.

7. A deposit made pursuant to subsection 4 may be refunded:

(a) By order of the director, 3 years after the date the licensee ceases to

be licensed by the department, if the director is satisfied that there are no

outstanding claims against the deposit; or

(b) By order of court, at any time within 3 years after the date the

licensee ceases to be licensed by the department, upon evidence satisfactory

to the court that there are no outstanding claims against the deposit.

8. Any money received by the department pursuant to subsection 4 must

be deposited with the state treasurer for credit to the motor vehicle fund.

Sec. 113. NRS 487.420 is hereby amended to read as follows:

487.420 1. No applicant may be granted a license to operate a salvage

pool until he has procured and filed with the department a good and

sufficient bond in the amount of $50,000, with a corporate surety thereon

licensed to do business in the State of Nevada, approved as to form by the

attorney general, and conditioned that the applicant conducts his business as

an operator of a salvage pool without fraud or fraudulent representation, and

without violation of the provisions of NRS 487.400 to 487.510, inclusive.

The department may, by agreement with any operator of a salvage pool who

has been licensed by the department for 5 years or more, allow a reduction

in the amount of his bond, if his business has been conducted satisfactorily

for the preceding 5 years, but no bond may be in an amount less than

$5,000.

2. The bond may be continuous in form and the total aggregate liability

on the bond must be limited to the payment of the total amount of the bond.

3. The bond must provide that any person injured by the action of the

operator of the salvage pool in violation of any of the provisions of NRS

487.400 to 487.510, inclusive, may apply to the director for compensation

from the bond. The director, for good cause shown and after notice and

opportunity for hearing, may determine the amount of compensation and the

person to whom it is to be paid. The surety shall then make the payment.

4. In lieu of a bond an operator of a salvage pool may deposit with the

department, under the terms prescribed by the department:

(a) A like amount of money or bonds of the United States or of the State

of Nevada of an actual market value of not less than the amount fixed by the

department; or

association situated in Nevada, which must indicate an account of an

amount equal to the amount of the bond which would otherwise be requiredby this section and that this amount is unavailable for withdrawal except

upon order of the department. Interest earned on the certificate accrues to

the account of the applicant.

5. A deposit made pursuant to subsection 4 may be disbursed by the

director, for good cause shown and after notice and opportunity for hearing,

in an amount determined by him to compensate a person injured by an

action of the licensee, or released upon receipt of:

(a) A court order requiring the director to release all or a specified

portion of the deposit; or

(b) A statement signed by the person under whose name the deposit is

made and acknowledged before any person authorized to take

acknowledgments in this state, requesting the director to release the deposit,

or a specified portion thereof, and stating the purpose for which the release

is requested.

6. When a deposit is made pursuant to subsection 4, liability under the

deposit is in the amount prescribed by the department. If the amount of the

deposit is reduced or there is an outstanding judgment of a court for which

the licensee is liable under the deposit, the license is automatically

suspended. The license must be reinstated if the licensee:

(a) Files an additional bond pursuant to subsection 1;

(b) Restores the deposit with the department to the original amount

required under this section; or

(c) Satisfies the outstanding judgment for which he is liable under the

deposit.

7. A deposit made pursuant to subsection 4 may be refunded:

(a) By order of the director, 3 years after the date the licensee ceases to

be licensed by the department, if the director is satisfied that there are no

outstanding claims against the deposit; or

(b) By order of court, at any time within 3 years after the date the licensee

ceases to be licensed by the department, upon evidence satisfactory to the

court that there are no outstanding claims against the deposit.

8. Any money received by the department pursuant to subsection 4 must

be deposited with the state treasurer for credit to the motor vehicle fund.

Sec. 114. NRS 487.640 is hereby amended to read as follows:

487.640 1. No license may be issued to an operator of a body shop

until he procures and files with the department a good and sufficient bond in

the amount of $10,000, with a corporate surety thereon licensed to do

business in the State of Nevada, approved as to form by the attorney

general, and conditioned that the applicant shall conduct his business as an

operator of a body shop without fraud or fraudulent representation, and in

487.690, inclusive, and 597.480 to 597.590, inclusive. The department may,

by agreement with any operator of a body shop who has been licensed by

the department for 5 years or more, allow a reduction in the amount of the

bond of the operator, if the business of the operator has been conductedsatisfactorily for the preceding 5 years, but no bond may be in an amount

less than $1,000.

2. The bond may be continuous in form and the total aggregate liability

on the bond must be limited to the payment of the total amount of the bond.

3. The bond must provide that any person injured by the action of the

operator of the body shop in violation of any of the provisions of NRS

inclusive, may apply to the director for compensation from the bond. The

director, for good cause shown and after notice and opportunity for hearing,

may determine the amount of compensation and the person to whom it is to

be paid. The surety shall then make the payment.

4. In lieu of a bond an operator of a body shop may deposit with the

department, under the terms prescribed by the department:

(a) A like amount of money or bonds of the United States or of the State

of Nevada of an actual market value of not less than the amount fixed by the

department; or

association situated in Nevada, which must indicate an account of an

amount equal to the amount of the bond which would otherwise be required

by this section and that this amount is unavailable for withdrawal except

upon order of the department. Interest earned on the certificate accrues to

the account of the applicant.

5. A deposit made pursuant to subsection 4 may be disbursed by the

director, for good cause shown and after notice and opportunity for hearing,

in an amount determined by him to compensate a person injured by an

action of the licensee, or released upon receipt of:

(a) An order of a court requiring the director to release all or a specified

portion of the deposit; or

(b) A statement signed by the person under whose name the deposit is

made and acknowledged before any person authorized to take

acknowledgments in this state, requesting the director to release the deposit,

or a specified portion thereof, and stating the purpose for which the release

is requested.

6. When a deposit is made pursuant to subsection 4, liability under the

deposit is in the amount prescribed by the department. If the amount of the

deposit is reduced or there is an outstanding judgment of a court for which

the licensee is liable under the deposit, the license is automatically

suspended. The license must be reinstated if the licensee:

(a) Files an additional bond pursuant to subsection 1;

(b) Restores the deposit with the department to the original amount

required under this section; or

(c) Satisfies the outstanding judgment for which he is liable under the

deposit.

7. A deposit made pursuant to subsection 4 may be refunded

: (a) By order of the director, 3 years after the date the licensee ceases to

be licensed by the department, if the director is satisfied that there are no

outstanding claims against the deposit; or

(b) By order of court, at any time within 3 years after the date the

licensee ceases to be licensed by the department, upon evidence satisfactory

to the court that there are no outstanding claims against the deposit.

8. Any money received by the department pursuant to subsection 4 must

be deposited with the state treasurer for credit to the motor vehicle fund.

Sec. 115. NRS 489.724 is hereby amended to read as follows:

489.724 1. All down payments, deposits of earnest money, proceeds

of loans or other money which a dealer receives, on behalf of his principal

or any other person, must be deposited in a separate checking account,

which must be designated a trust account, in a financial institution in this

2. Every dealer required to maintain a separate or trust account shall

keep records of all money deposited therein. The records must clearly

indicate the date and from whom he received money, the date deposited, the

dates of withdrawals, and other pertinent information concerning the

transaction, and must show clearly for whose account the money is

deposited and to whom the money belongs. All such records and money are

subject to inspection and audit by the division and its authorized

representatives. All such separate trust accounts must designate the dealer as

trustee and provide for the withdrawal of money without previous notice.

3. All money deposited in a separate trust account from down

payments, deposits of earnest money, proceeds of loans or other money

received by a dealer from a person pursuant to a written contract signed by

the dealer and that person must not be withdrawn from the account except to

pay specific expenses as authorized by the written contract.

4. Each dealer shall notify the division of the names of the financial

institutions in which he maintains trust accounts and specify the names of

the accounts on forms provided by the division.

Sec. 116. NRS 501.359 is hereby amended to read as follows:

501.359 1. The wildlife imprest account in the amount of $15,000 is

hereby created for the use of the division, subject to the following

conditions:

receive deposits of public money, except that $500 must be kept in the

custody of an employee designated by the administrator for immediate use

for purposes set forth in this section.

(b) The account must be replenished periodically from the wildlife

account in the state general fund upon approval of expenditures as required

by law and submission of vouchers or other documents to indicate payment

as may be prescribed. 2. The wildlife imprest account may be used to pay for postage, C.O.D.

packages, travel or other minor expenses which are proper as claims for

payment from the wildlife account in the state general fund.

3. The wildlife imprest account may be used to provide money to

employees of the division for travel expenses and subsistence allowances

arising out of their official duties or employment. All advances constitute a

lien in favor of the division upon the accrued wages of the requesting

employee in an amount equal to the money advanced, but the administrator

may advance more than the amount of the accrued wages of the employee.

Upon the return of the employee, he is entitled to receive money for any

authorized expenses and subsistence in excess of the amount advanced.

Sec. 117. NRS 522.113 is hereby amended to read as follows:

522.113 1. The owner, lessee, operator or other person who is liable

for payment of the money derived from the sale of the production from an

(a) Pay the money directly to each person identified as being legally

entitled thereto not later than:

(1) Six months after the first day of the month following the date of

the first sale of the production, and thereafter not later than 60 days after the

end of the month within which subsequent production is sold; or

(2) Twelve months after the first day of the month following the date

of the first sale of the production, and every 12 months thereafter, if the

amount owed is $25 or less.

(b) If unable to pay timely any portion of the money because of inability

to locate a person entitled to receive the money or for any other reason,

a standard escrow document form approved by the attorney general of

offered by that institution for similar deposits. The escrow agent may

commingle money so received into escrow from any one source. The escrow

agent shall pay the appropriate amount of principal and accrued interest

from such an account to a person legally entitled thereto within 30 days after

the date of receipt by the escrow agent of a final legal determination of

entitlement thereto. Applicable escrow fees must be deducted from the

payment.

2. Any person who violates the provisions of subsection 1 is liable to

each person legally entitled thereto for the unpaid amounts of money,

together with interest at the rate of 18 percent per annum on the unpaid

balance from the date the payment was due pursuant to paragraph (a) of

subsection 1.

3. This section does not apply to payments from an owner, lessee,

operator or other person who is liable for payment of the money derived

from the sale of the production from an oil or gas well located in this stateto a person identified as being legally entitled to such a payment if those

persons have agreed in writing to some other period of payment for the first

payment or for subsequent payments.

Sec. 118. NRS 533.435 is hereby amended to read as follows:

533.435 1. The state engineer shall collect the following fees:

2. When fees are not specified in subsection 1 for work required of his

office, the state engineer shall collect the actual cost of the work.

3. Except as otherwise provided in this subsection, all fees collected by

the state engineer under the provisions of this section must be deposited in

the state treasury for credit to the general fund. All fees received for

blueprint copies of any drawing or map must be kept by him and used only

to pay the costs of printing, replacement and maintenance of printing

equipment. Any publication fees received which are not used by him for

publication expenses must be returned to the persons who paid the fees. If,

after exercising due diligence, the state engineer is unable to make the

refunds, he shall deposit the fees in the state treasury for credit to the

general fund. The state engineer may maintain, with the approval of the state

qualified to handle state money to carry out the provisions of this

satisfactory to the state board of examiners to the extent the account is not

irrigation district within this state, or of the treasurer or other officer thereof,

for the safekeeping thereof, and shall be subject to withdrawal at any time

on demand of the treasurer or other authorized officer.

Sec. 120. NRS 539.537 is hereby amended to read as follows:

539.537 1. For the security of such deposits there shall be delivered to

the treasurer of the irrigation district a bond or bonds of a corporate surety

qualified to act as sole surety on bonds or undertakings required by the laws

of this state, and approved by the commissioner of insurance as a company

possessing the qualifications required for the purpose of transacting a surety

business within this state. The penal amount of such bond or bonds shall at

no time be less than the amount of money deposited by the irrigation district

with such depositary. The bond or bonds shall secure and guarantee the full

and complete repayment to the irrigation district or the payment to its order

premium for such corporate surety bond or bonds, in the discretion of the

2. The depositary may, in lieu of the corporate surety bond or bonds,

deposit with the treasurer of the irrigation district treasury notes or United

States bonds, or other securities which are legal investments for savings

security, and such securities shall be placed by the treasurer in escrow in

of the district. In the event of the failure of the depositary to repay such

securities so placed in escrow shall be redelivered to the treasurer and may

be sold by him with or without notice, and the proceeds thereof used to

reimburse the district.

Sec. 121. NRS 539.6135 is hereby amended to read as follows:

539.6135 1. Except as otherwise provided in this chapter, the

proceeds of refunding bonds must be immediately applied to the retirement

of the bonds to be refunded or be placed in escrow or trust in any trust

state to be applied to the payment of the refunded bonds or the refunding

bonds, or both, upon their presentation therefor to the extent, in the priority

and otherwise in the manner which the board may determine.

2. The incidental costs of refunding bonds may be paid by the purchaser

of the refunding bonds or be defrayed from any money of the district,

subject to appropriations therefor as otherwise provided by statute, or other

available revenues of the district under the control of the board, from theproceeds of the refunding bonds, from the interest or other yield derived

from the investment of any proceeds of the refunding bonds or other money

in escrow or trust, or from any other sources legally available therefor, or

any combination thereof, as the board may determine.

Sec. 122. NRS 539.6137 is hereby amended to read as follows:

539.6137 1. Any escrow or trust provided pursuant to NRS 539.6135

is not necessarily limited to the proceeds of refunding bonds but may

include other money available for its purpose. Any proceeds in escrow or

trust, pending their use, may only be invested or reinvested in securities

which are direct obligations of or which the principal of and interest on are

unconditionally guaranteed by the Federal Government.

placed in escrow or trust and not so invested or reinvested in federal

securities in an amount which is at all times at least equal to the total

uninvested amount of the money accounted for in the escrow or trust.

3. The proceeds and investments in escrow or trust, together with any

interest or other gain to be derived from any such investment, must be in an

amount at all times at least sufficient to pay the principal of, interest on and

any prior redemption premiums due, any charges of the escrow agent or

trustee and any other incidental expenses payable therefrom, except to the

extent provision may have been previously otherwise made therefor, as

those obligations become due at their respective maturities or due at the

designated prior redemption dates in connection with which the board has

exercised or is obligated to exercise a prior redemption option on behalf of

the district.

4. The computations made in determining that sufficiency must be

verified by a certified public accountant licensed to practice in this state or

in any other state.

Sec. 123. NRS 539.633 is hereby amended to read as follows:

539.633 The principal and interest shall be payable at the place

designated in the bonds, which may be at any place within or outside of this

of the principal or interest on such bonds at the place or places at which the

same are payable, or for any other lawful purpose.

Sec. 124. NRS 539.655 is hereby amended to read as follows:

539.655 1. Whenever any bond of an irrigation district organized and

existing under and pursuant to the laws of the State of Nevada, including

any bond authorized in any such district but not sold, which is eligible to

certification by the state controller under NRS 539.647, is presented to the

state controller, he shall attach a certificate in substantially the following

form:

Carson City, Nevada (insert date).

I, ........................, state controller of the State of Nevada, do hereby

certify that the within bond, No. ..... of issue No. ........ of the ................

Irrigation District, issued ................ (insert date), is, in accordance with

NRS 539.640 to 539.665, inclusive, a legal investment for all trust funds

and it may be deposited as security for the performance of any act whenever

the bonds of any county, city or school district may be so deposited, it being

entitled to such privileges by virtue of an examination by the department of

taxation in pursuance of NRS 539.640 to 539.665, inclusive. The within

State Controller of the State of Nevada

2. In case of a change in the constitution or any of the laws of this state

relating to the bonds of irrigation districts, the state controller shall, if

necessary, modify the above certificate so that it conforms to the facts.

3. A facsimile of the state controller's signature, printed or otherwise,

impressed upon the certificate is a sufficient signing thereof.

Sec. 125. NRS 539.660 is hereby amended to read as follows:

539.660 1. All bonds certified in accordance with the terms of NRS

539.640 to 539.665, inclusive, are legal investments for all trust funds, and

enacted, be invested in bonds of cities, counties, school districts or

invested in the bonds of irrigation districts, and whenever bonds of cities,

counties, school districts or municipalities may by any law now or hereafter

enacted be used as security for the performance of any act, bonds of

irrigation districts under the limitations in NRS 539.640 to 539.665,

Sec. 126. NRS 561.335 is hereby amended to read as follows:

561.335 1. The revolving account for agriculture working capital in

the amount of $10,000 is hereby created for the use of the division.

2. The account must be used specifically for carrying out the provisions

inclusive.

3. The account may be used for:

(a) Paying the expenses of all programs and laws administered by the

division, except expenses related to estrays which are required to be paid

pursuant to NRS 569.090. The account must be reimbursed promptly fromthe proper funds in the state treasury by claims paid as other claims against

the state are paid for any expenses paid pursuant to this paragraph.

(b) Providing advance money to officers and employees of the division

for travel expenses and subsistence allowances arising out of their official

duties or employment. Such an advance constitutes a lien in favor of the

division upon the accrued wages of the requesting officer or employee in an

amount equal to the sum advanced, but the administrator may advance more

than the amount of the accrued wages of the officer or employee. Upon the

return of the officer or employee, he is entitled to receive any authorized

expenses and subsistence in excess of the amount advanced, and a sum

equal to the advance must be paid into the revolving account for agriculture

working capital.

(c) Making grants and loans for any purpose authorized by subsection 2

of NRS 561.445. Any loan or grant made pursuant to this paragraph must be

reimbursed promptly, as other claims against the state are paid, from the

money deposited in the state treasury pursuant to subsection 1 of NRS

561.445.

4. The revolving account for agriculture working capital must be

money and the deposit must be secured by a depository bond satisfactory to

the state board of examiners.

Sec. 127. NRS 569.090 is hereby amended to read as follows:

569.090 1. Except as otherwise provided pursuant to a cooperative

agreement established pursuant to NRS 569.031, the division shall:

(a) Pay the reasonable expenses incurred in taking up, holding,

advertising and selling the estray, and any damages for trespass allowed

pursuant to NRS 569.440, out of the proceeds of the sale of the estray and

from the sale and any interest on those proceeds, which are not claimed

pursuant to subsection 2 within 1 year after the sale, must be deposited in

the state treasury for credit to the livestock inspection account.

(b) Make a complete record of the transaction, including the marks and

brands and other means of identification of the estray, and shall keep the

record open to the inspection of the public.

2. If the lawful owner of the estray is found within 1 year after its sale

and proves ownership to the satisfaction of the division, the net amount

received from the sale must be paid to the owner.

sale is denied, the proceeds and any interest thereon must be deposited in

the livestock inspection account.

Sec. 128. NRS 573.020 is hereby amended to read as follows:

573.020 1. A person shall not hold, operate, conduct or carry on a

public livestock auction in this state without first securing a license therefor

from the division. 2. The application for a license must be on forms prescribed and

furnished by the division and set forth:

(a) The name of the operator of the public livestock auction.

(b) The location of the establishment or premises where the public

livestock auction is to be conducted.

(c) The type or kinds of livestock to be handled, sold or exchanged.

(d) A description of the facilities to be used in conducting the public

livestock auction.

(e) The weekly or monthly sales day or days on which the applicant

proposes to operate his public livestock auction.

account for consignors' proceeds will be established and maintained by the

operator of the public livestock auction in compliance with the provisions of

NRS 573.104.

(g) Such other information as the division reasonably may require,

including, without limitation, proof that at the time of application the

State of Nevada in an amount at least equal to the estimated average weekly

gross sales receipts of the public livestock auction to be conducted by him.

3. The application must be accompanied by a bond or deposit receipt

and the required fee as provided in this chapter.

Sec. 129. NRS 573.037 is hereby amended to read as follows:

573.037 1. As authorized by subsection 3 of NRS 573.030, in lieu of

filing the bond described in NRS 573.033 or 573.035, the applicant may

the owner thereof and of a market value equal at least to the required

principal amount of the bond, such cash or securities to be deposited in

escrow under an agreement conditioned as in the case of a bond. A receipt

must be accompanied by evidence that there are no unsatisfied judgments

against the applicant of record in the county where the applicant resides.

2. An action for recovery against any such deposit may be brought in

the same manner as in the case of an action for recovery on a bond filed

under the provisions of this chapter.

3. If any licensed operator of a public livestock auction for any reason

ceases to operate such auction, the amount of money or securities deposited

action has been commenced to recover against such money or securities, the

amount thereof must be delivered to the owner thereof. If a legal action has

been commenced within such time, all such money and securities must be

held by the administrator subject to the order of a court of competent

jurisdiction.

Sec. 130. NRS 573.104 is hereby amended to read as follows:

573.104 1. Each licensee shall deposit the gross proceeds received by

him from the sale of livestock handled on a commission or agency basis in a

account must be designated a "custodial account for consignors' proceeds."

2. The custodial account for consignors' proceeds may be drawn on

only:

(a) For the payment of net proceeds to the consignor, or any other person

or persons of whom the licensee has knowledge who is entitled to those

proceeds;

(b) To obtain the sums due the licensee as compensation for his services;

and

(c) For such sums as are necessary to pay all legal charges against the

consignment of livestock which the licensee in his capacity as agent is

required to pay for and on behalf of the consignor.

3. The licensee shall:

(a) In each case keep such accounts and records as will at all times

disclose the names of the consignors and the amount due to each from the

money in the custodial account for consignors' proceeds.

(b) Maintain the custodial account for consignors' proceeds in a manner

that will expedite examination by the administrator and reflect compliance

with the requirements of this section.

Sec. 131. NRS 573.105 is hereby amended to read as follows:

573.105 The administrator shall ascertain, at least quarterly, the

continued existence and amount of the line of credit shown pursuant to

paragraph (g) of subsection 2 of NRS 573.020, or its replacement by a line

amount of the replacement. If the line of credit is so replaced, the custodial

of credit. If a line of credit in the amount required is not maintained, the

administrator shall suspend the operator's license.

Sec. 132. NRS 573.183 is hereby amended to read as follows:

573.183 When the administrator determines, on the basis of any

verified complaint or of any inspection or investigation made by him

pursuant to this chapter, that any operator of a public livestock auction is

violating or is about to violate any provision of this chapter for the

protection of consignor creditors, he may order:

1. The operator to cease and desist from:

(a) Receiving or selling any livestock;

(b) Receiving or disbursing any money; or

(c) Any practice which violates any provision of this chapter or any other

operator, as required by NRS 573.104, to refrain from paying out any

money from the account.

The order ceases to be effective upon the expiration of 3 days, exclusive of

issuance unless a court has, pursuant to NRS 573.185, issued an order which

continues the restraint.

Sec. 133. NRS 576.040 is hereby amended to read as follows:

576.040 1. Each applicant to whom a license to act as a dealer, broker

or commission merchant is issued shall:

(a) File one of the following:

(1) A bond of a surety company authorized to do business in this state.

(2) A bond with individual sureties owning unencumbered real

property within this state subject to execution and worth, above all

exemptions, double the amount of the bond.

(3) A personal bond secured by a first deed of trust on real property

within this state which is subject to execution and worth, above all

exemptions, double the amount of the bond. When the applicant files the

bond with the division he shall also file a policy of title insurance on the real

property from a title insurance company licensed in this state which states

that the property is free and clear of all encumbrances and liens other than

the first deed of trust. The applicant shall certify under oath that the

property is worth at least twice the amount of the bond and that it is

unencumbered. The certificate must be approved by the division.

The bond must be in the form prescribed by, and to the satisfaction of, the

division, conditioned for the payment of a judgment against the applicant

and arising out of the failure of the applicant or his agent to conduct his

business in accordance with the provisions of this chapter, or for

nonpayment of obligations in connection with the purchase and sale of

livestock or farm products. The bond must provide that the surety company,

if any, will notify the division before the end of the second business day

after any claim or judgment has been made against the bond. The aggregate

liability of any surety to all claimants is limited to the amount of the bond

for each licensing period.

(b) File a copy of the bond required by the United States pursuant to the

(c) Furnish other security in the amount required by this section which is

acceptable to the division.

2. In lieu of complying with one of the alternatives provided in

subsection 1, the dealer, broker or commission merchant may deliver to the

or of securities endorsed in blank by the owner thereof and of a market

value equal at least to the required principal amount of the bond. The cash

or securities must be deposited in escrow under an agreement conditioned as

in the case of a bond. Any receipt must be accompanied by evidence thatthere are no unsatisfied judgments against the dealer, broker or commission

merchant of record in the county or counties in which he is doing business

or resides. An action for recovery against any such deposit may be brought

in the same manner as in the case of an action for recovery on a bond filed

under the provisions of NRS 576.042.

3. The amount of the bond, other security or deposit must be:

(a) Based on the applicant's annual volume of purchases, according to a

schedule adopted by the division; and

(b) Not less than $5,000 nor more than $100,000.

4. All bonds must be renewed or continued in accordance with

regulations adopted by the division.

5. Any licensed dealer, broker or commission merchant who knowingly

sells or otherwise encumbers real property which is the security for a bond

under subsection 1, after a policy of title insurance on that property has been

issued and while the bond is in force, is guilty of a gross misdemeanor.

Sec. 134. NRS 598.0966 is hereby amended to read as follows:

598.0966 1. There is hereby created a revolving account for the

consumer affairs division of the department of business and industry in the

sum of $7,500, which must be used for the payment of expenses related to

conducting an undercover investigation of a person who is allegedly

engaging in a deceptive trade practice.

2. The commissioner shall deposit the money in the revolving account

bond satisfactory to the state board of examiners.

3. The commissioner or his designee may:

(a) Sign all checks drawn upon the revolving account; and

(b) Make withdrawals of cash from the revolving account.

4. Payments made from the revolving account must be promptly

reimbursed from the legislative appropriation, if any, to the consumer affairs

division for the expenses related to conducting an undercover investigation

of a person who is allegedly engaging in a deceptive trade practice. The

claim for reimbursement must be processed and paid as other claims against

the state are paid.

5. The commissioner shall:

(a) Approve any disbursement from the revolving account; and

(b) Maintain records of any such disbursement.

Sec. 135. NRS 598.2807 is hereby amended to read as follows:

598.2807 1. Each registrant shall deposit with the division:

(a) A bond executed by a corporate surety approved by the commissioner

and licensed to do business in this state;

(b) An irrevocable letter of credit for which the registrant is the obligor,

issued by a bank whose deposits are federally insured; or

commissioner, except that the interest may accrue to the registrant.

2. The term of the bond, letter of credit or certificate of deposit, or any

renewal thereof, must be not less than 1 year.

3. If the registrant deposits a bond, the registrant shall keep accurate