REQUIRES TWO THIRDS MAJORITY VOTE (§ 3)
(REPRINTED WITH ADOPTED AMENDMENTS)
FIRST REPRINTA.B. 439
Assembly Bill No. 439–Assemblyman Brower
March 19, 2001
____________
Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions relating to deceptive trade practices. (BDR 52‑1263)
FISCAL NOTE: Effect on Local Government: No.
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EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 598 of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 to 9, inclusive, of this act.
1-3 Sec. 2. As used in sections 2 to 9, inclusive, of this act, unless the
1-4 context otherwise requires, “commissioner” means the commissioner of
1-5 consumer affairs.
1-6 Sec. 3. 1. The commissioner shall establish and maintain or cause
1-7 to be established and maintained, a registry that includes the telephone
1-8 numbers of persons in this state who do not wish to receive unsolicited
1-9 telephone calls for the sale of goods or services. The commissioner may
1-10 contract for the establishment and maintenance of the registry. The
1-11 registry must be available to a telephone solicitor for a fee established by
1-12 the commissioner. The fee must not exceed $500 annually for each
1-13 telephone solicitor.
1-14 2. The commissioner shall provide to persons in this state:
1-15 (a) Information concerning the establishment and maintenance of the
1-16 registry, including:
1-17 (1) The procedure for requesting the inclusion of a telephone
1-18 number in the registry;
1-19 (2) A statement indicating that the registry will be revised and
1-20 published at least once every 6 months pursuant to subsection 4; and
2-1 (3) A statement indicating that all telephone numbers and any other
2-2 information included in the registry will be deleted on January 1 of each
2-3 year pursuant to subsection 4; and
2-4 (b) The procedure for the inclusion of a telephone number in the
2-5 registry.
2-6 3. A person who wishes to be included in the registry may notify the
2-7 commissioner by a toll-free telephone number provided by the
2-8 commissioner or any other method authorized by the commissioner. A
2-9 person who wishes to have his name removed from the registry must
2-10 submit a written request to the commissioner.
2-11 4. The commissioner shall:
2-12 (a) Revise the telephone numbers and any other information included
2-13 in the registry and publish the revised registry at least once every 6
2-14 months; and
2-15 (b) Delete all telephone numbers and any other information included
2-16 in the registry on January 1 of each year.
2-17 Sec. 4. A person who publishes telephone directories for distribution
2-18 to the general public in this state shall ensure that each telephone
2-19 directory includes a statement of the provisions of sections 2 to 9,
2-20 inclusive, of this act.
2-21 Sec. 5. 1. Except as otherwise provided in subsection 2, a
2-22 telephone solicitor shall not intentionally make an unsolicited telephone
2-23 call for the sale of goods or services to a person whose telephone number
2-24 has been included for at least 30 days in the most recently published
2-25 registry.
2-26 2. The provisions of subsection 1 do not apply to a telephone call
2-27 made:
2-28 (a) By or on behalf of a public utility or community antenna television
2-29 company that is regulated pursuant to chapter 704 or 711 of NRS, or by
2-30 an affiliate of the public utility or community antenna television
2-31 company, if the making of the telephone call is authorized by the terms
2-32 and conditions of the certificate of public convenience and necessity or
2-33 franchise of the public utility or community antenna television company;
2-34 (b) By or on behalf of a company that provides television services by
2-35 satellite; or
2-36 (c) To a person:
2-37 (1) With whom the caller or an entity on whose behalf the call is
2-38 made, or its affiliate, has a business relationship; or
2-39 (2) Who had a business relationship with the caller or entity on
2-40 whose behalf the call is made, or its affiliate, if the telephone call is made
2-41 within 12 months after:
2-42 (I) The business relationship was terminated; or
2-43 (II) The date on which the person last purchased any goods or
2-44 services from the caller or entity.
2-45 Sec. 6. 1. If the commissioner finds that a telephone solicitor has
2-46 violated a provision of section 5 of this act, the commissioner may, in lieu
2-47 of taking any action against the telephone solicitor pursuant to NRS
2-48 598.0903 to 598.0999, inclusive, for the first offense, issue a notice of
3-1 violation to the telephone solicitor if the telephone solicitor submits proof
3-2 to the commissioner that he has:
3-3 (a) Obtained a copy of the registry and has established written policies
3-4 and procedures concerning the provisions of sections 2 to 9, inclusive, of
3-5 this act;
3-6 (b) Provided training to each person who makes telephone calls for
3-7 the telephone solicitor concerning the provisions of sections 2 to 9,
3-8 inclusive, of this act; and
3-9 (c) Maintained records evidencing compliance with the provisions of
3-10 paragraphs (a) and (b).
3-11 2. A notice of violation issued pursuant to subsection 1 must set forth
3-12 with particularity the violation alleged by the commissioner and specify
3-13 the corrective action that the telephone solicitor must take and the period
3-14 within which that corrective action must be taken. If a telephone solicitor
3-15 to whom a notice of violation is issued fails to take the corrective action
3-16 specified in the notice of violation, the commissioner may:
3-17 (a) Extend the period for taking corrective action; or
3-18 (b) Proceed against the telephone solicitor in accordance with the
3-19 provisions of NRS 598.0903 to 598.0999, inclusive.
3-20 Sec. 7. A violation of a provision of section 5 of this act constitutes a
3-21 deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
3-22 inclusive.
3-23 Sec. 8. 1. The revolving account for the commissioner is hereby
3-24 created, which must be used only for the payment of expenses to carry
3-25 out the provisions of sections 2 to 9, inclusive, of this act.
3-26 2. The commissioner shall deposit the fees collected pursuant to
3-27 section 3 of this act in the revolving account in a bank or credit union
3-28 that is qualified to receive deposits of public money as provided by law.
3-29 The deposit must be secured by a depository bond satisfactory to the state
3-30 board of examiners.
3-31 3. The commissioner or his designee may:
3-32 (a) Sign all checks drawn upon the revolving account; and
3-33 (b) Make withdrawals of cash from the revolving account.
3-34 4. Payments made from the revolving account must be promptly
3-35 reimbursed from the legislative appropriation, if any, made to the
3-36 commissioner for the expenses to carry out the provisions of sections 2 to
3-37 9, inclusive, of this act. The claim for reimbursement must be paid as
3-38 other claims against the state are paid.
3-39 5. The commissioner shall:
3-40 (a) Approve any disbursement from the revolving account; and
3-41 (b) Maintain a record of each disbursement.
3-42 Sec. 9. The commissioner shall adopt regulations to carry out the
3-43 provisions of sections 2 to 9, inclusive, of this act.
3-44 Sec. 10. NRS 598.0999 is hereby amended to read as follows:
3-45 598.0999 1. A person who violates a court order or injunction issued
3-46 pursuant to NRS 598.0903 to [598.0997,] 598.0999, inclusive, upon a
3-47 complaint brought by the commissioner, the director, the district attorney
3-48 of any county of this state or the attorney general shall forfeit and pay to
3-49 the state general fund a civil penalty of not more than $10,000 for each
4-1 violation. For the purpose of this section, the court issuing the order or
4-2 injunction retains jurisdiction over the action or proceeding. Such civil
4-3 penalties are in addition to any other penalty or remedy available for the
4-4 enforcement of the provisions of NRS 598.0903 to [598.0997,] 598.0999,
4-5 inclusive.
4-6 2. In any action brought pursuant to NRS 598.0903 to 598.0999,
4-7 inclusive, if the court finds that a person has willfully engaged in a
4-8 deceptive trade practice, the commissioner, the director, the district
4-9 attorney of any county in this state or the attorney general bringing the
4-10 action may recover a civil penalty not to exceed $2,500 for each violation.
4-11 3. A natural person, firm, or any officer or managing agent of any
4-12 corporation or association who knowingly and willfully engages in a
4-13 deceptive trade practice, other than a deceptive trade practice described in
4-14 NRS 598.992:
4-15 (a) For the first offense, is guilty of a misdemeanor.
4-16 (b) For the second offense, is guilty of a gross misdemeanor.
4-17 (c) For the third and all subsequent offenses, is guilty of a category D
4-18 felony and shall be punished as provided in NRS 193.130.
4-19 4. Any offense which occurred within 10 years immediately preceding
4-20 the date of the principal offense or after the principal offense constitutes a
4-21 prior offense for the purposes of subsection 3 when evidenced by a
4-22 conviction, without regard to the sequence of the offenses and convictions.
4-23 5. If a person violates any provision of NRS 598.0903 to 598.0999,
4-24 inclusive, 598.100 to 598.2801, inclusive, 598.281 to 598.289, inclusive,
4-25 598.840 to 598.966, inclusive, [or 598.992,] 598.992 or section 5 of this
4-26 act, fails to comply with a judgment or order of any court in this state
4-27 concerning a violation of such a provision, or fails to comply with an
4-28 assurance of discontinuance or other agreement concerning an alleged
4-29 violation of such a provision, the commissioner or the district attorney of
4-30 any county may bring an action in the name of the State of Nevada
4-31 seeking:
4-32 (a) The suspension of the person’s privilege to conduct business within
4-33 this state; or
4-34 (b) If the defendant is a corporation, dissolution of the
4-35 corporation.
4-36 The court may grant or deny the relief sought or may order any other
4-37 appropriate relief.
4-38 Sec. 11. The amendatory provisions of this act do not apply to
4-39 offenses committed before January 1, 2002.
4-40 Sec. 12. This act becomes effective upon passage and approval for the
4-41 purpose of adopting regulations and on January 1, 2002, for all other
4-42 purposes.
4-43 H