Assembly Bill No. 621–Committee on Commerce and Labor

 

(On Behalf of Department of Business and
Industry—Real Estate Division)

 

March 26, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions relating to real estate. (BDR 54‑552)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to real estate; clarifying the authority of the real estate commission, real estate administrator and real estate division of the department of business and industry to impose a fine or penalty or to initiate or continue an investigation, action or disciplinary proceeding against a person whose license or permit is surrendered, suspended or expired and against certain other persons; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. Chapter 645 of NRS is hereby amended by adding thereto a

1-2  new section to read as follows:

1-3    The expiration or revocation of a license, permit or registration by

1-4  operation of law or by order or decision of the commission or a court of

1-5  competent jurisdiction, or the voluntary surrender of a license, permit or

1-6  registration by a real estate broker, real estate broker-salesman, real

1-7  estate salesman, property manager or owner-developer does not:

1-8    1.  Prohibit the administrator, commission or division from initiating

1-9  or continuing an investigation of, or action or disciplinary proceeding

1-10  against, the real estate broker, real estate broker-salesman, real estate

1-11  salesman, property manager or owner-developer as authorized pursuant

1-12  to the provisions of this chapter or the regulations adopted pursuant

1-13  thereto; or

1-14    2.  Prevent the imposition or collection of any fine or penalty

1-15  authorized pursuant to the provisions of this chapter or the regulations

1-16  adopted pursuant thereto against the real estate broker, real estate

2-1  broker-salesman, real estate salesman, property manager or owner-

2-2  developer.

2-3    Sec. 2.  NRS 645.630 is hereby amended to read as follows:

2-4    645.630  The commission may require a licensee , property manager

2-5  or owner-developer to pay an administrative fine of not more than $5,000

2-6  for each violation he commits or suspend, revoke , deny the renewal of or

2-7  place conditions upon his license , permit or registration, or [do both,]

2-8  impose any combination of those actions, at any time if the licensee ,

2-9  property-manager or owner-developer has, by false or fraudulent

2-10  representation, obtained a license , permit or registration, or the licensee ,

2-11  property manager or owner-developer, whether or not acting as such, is

2-12  found guilty of:

2-13    1.  Making any material misrepresentation.

2-14    2.  Making any false promises of a character likely to influence,

2-15  persuade or induce.

2-16    3.  Accepting a commission or valuable consideration as a real estate

2-17  broker-salesman or salesman for the performance of any of the acts

2-18  specified in this chapter or chapter 119 or 119A of NRS from any person

2-19  except the licensed real estate broker with whom he is associated or the

2-20  owner-developer by whom he is employed.

2-21    4.  Representing or attempting to represent a real estate broker other

2-22  than the broker with whom he is associated, without the express knowledge

2-23  and consent of the broker with whom he is associated.

2-24    5.  Failing to maintain, for review and audit by the division, each

2-25  brokerage agreement governed by the provisions of this chapter and

2-26  entered into by the licensee.

2-27    6.  Failing, within a reasonable time, to account for or to remit any

2-28  money which comes into his possession and which belongs to others.

2-29    7.  If he is required to maintain a trust account:

2-30    (a) Failing to balance the trust account at least monthly; and

2-31    (b) Failing to submit to the division an annual accounting of the trust

2-32  account as required in NRS 645.310.

2-33    8.  Commingling the money or other property of his clients with his

2-34  own or converting the money of others to his own use.

2-35    9.  In the case of a broker-salesman or salesman, failing to place in the

2-36  custody of his licensed broker or owner-developer, as soon as possible, any

2-37  deposit or other money or consideration entrusted to him by any person

2-38  dealing with him as the representative of his licensed broker.

2-39    10.  Accepting other than cash as earnest money unless that fact is

2-40  communicated to the owner before his acceptance of the offer to purchase

2-41  and that fact is shown in the receipt for the earnest money.

2-42    11.  Upon acceptance of an agreement, in the case of a broker, failing

2-43  to deposit any check or cash received as earnest money before the end of

2-44  the next banking day unless otherwise provided in the purchase agreement.

2-45    12.  Inducing any party to a brokerage agreement, sale or lease to break

2-46  it in order to substitute a new brokerage agreement, agreement of sale or

2-47  lease with the same or another party if the inducement to make the

2-48  substitution is offered to secure personal gain to the licensee or owner-

2-49  developer.

3-1  If discipline is imposed pursuant to this section, the costs of the

3-2  proceeding, including investigative costs and attorney’s fees, may be

3-3  recovered by the board.

3-4    Sec. 3.  NRS 645.660 is hereby amended to read as follows:

3-5    645.660  1.  Any unlawful act or violation of any of the provisions of

3-6  this chapter by any licensee is not cause [for the suspension or revocation

3-7  of a] to suspend, revoke or deny the renewal of the license of any person

3-8  associated with the licensee, unless it appears to the satisfaction of the

3-9  commission that the associate knew or should have known thereof. A

3-10  course of dealing shown to have been persistently and consistently

3-11  followed by any licensee constitutes prima facie evidence of such

3-12  knowledge upon the part of the associate.

3-13    2.  If it appears that a registered owner-developer knew or should have

3-14  known of any unlawful act or violation on the part of a real estate broker,

3-15  broker-salesman or salesman employed by him, in the course of his

3-16  employment, the commission may suspend , [or] revoke or deny the

3-17  renewal of his registration and may assess a civil penalty of not more than

3-18  $5,000.

3-19    3.  The commission may suspend , [or] revoke or deny the renewal of

3-20  the license of a real estate broker and may assess a civil penalty of not

3-21  more than $5,000 against him if it appears he has failed to maintain

3-22  adequate supervision of a salesman or broker-salesman associated with him

3-23  and that person commits any unlawful act or violates any of the provisions

3-24  of this chapter.

3-25    Sec. 4.  NRS 645.680 is hereby amended to read as follows:

3-26    645.680  1.  The procedure set forth in this section and NRS 645.690

3-27  must be followed before the [revocation or suspension] commission

3-28  revokes, suspends or denies the renewal of any license[.] , permit or

3-29  registration of an owner-developer issued pursuant to this chapter.

3-30    2.  Upon the initiation of a complaint by the administrator, the matter

3-31  must be set for a hearing by the administrator, who shall schedule a hearing

3-32  before the commission, and the licensee , permit or owner-developer is

3-33  entitled to be heard thereon in person or by counsel.

3-34    3.  The commission shall hold the hearing within 90 days after the

3-35  filing of a complaint by the administrator. The time of the hearing may be

3-36  continued upon the motion of the commission or at the discretion of the

3-37  commission, upon the written request of the licensee , permittee or owner-

3-38  developer or of the division for good cause shown.

3-39    4.  The licensee , permittee or owner-developer must be given at least

3-40  30 days’ notice in writing by the division of the date, time and place of the

3-41  hearing together with a copy of the complaint and copies of all

3-42  communications, reports, affidavits or depositions in possession of the

3-43  division relevant to the complaint. The division may present evidence

3-44  obtained after the notice only if the division shows that the evidence was

3-45  not available after diligent investigation before the time notice was given to

3-46  the licensee , permittee or owner-developer and that the evidence was

3-47  given or communicated to the licensee , permittee or owner-developer

3-48  immediately after it was obtained.

4-1    5.  Notice is complete upon delivery personally to the licensee,

4-2  permittee or owner-developer or by mailing by certified mail to the last

4-3  known address of the licensee[.] , permittee or owner-developer. If the

4-4  licensee is a broker-salesman or salesman, the division shall also notify the

4-5  broker with whom he is associated, or the owner-developer by whom he is

4-6  employed, by mailing an exact statement of the charges and the date, time

4-7  and place of the hearing by certified mail to the owner-developer or

4-8  broker’s last known address.

4-9    Sec. 5.  NRS 645.685 is hereby amended to read as follows:

4-10    645.685  1.  The licensee , permittee or owner-developer shall file an

4-11  answer to the charges with the commission no later than 30 days after

4-12  service of the notice and other documents described in subsection 4 of NRS

4-13  645.680. The answer must contain an admission or denial of the allegations

4-14  contained in the complaint and any defenses upon which the licensee ,

4-15  permittee or owner-developer will rely. If no answer is filed within the

4-16  time limit described in this subsection, the division may, after notice to the

4-17  licensee , permittee or owner-developer served in the manner authorized in

4-18  subsection 5 of NRS 645.680, move the commission for the entry of a

4-19  default against the licensee[.] , permittee or owner-developer.

4-20    2.  The answer may be served by delivery to the commission, or by

4-21  mailing the answer by certified mail to the principal office of the division.

4-22    3.  No proceeding [for the suspension or revocation] to suspend, revoke

4-23  or deny the renewal of any license or registration of an owner-developer

4-24  may be maintained unless it is commenced by the giving of notice to the

4-25  licensee , permittee or owner-developer within 3 years of the time of the

4-26  act charged, whether of commission or omission, except:

4-27    (a) If the charges are based upon a misrepresentation, or failure to

4-28  disclose, the period does not commence until the discovery of facts which

4-29  do or should lead to the discovery of the misrepresentation or failure to

4-30  disclose; and

4-31    (b) Whenever any action or proceeding is instituted to which the

4-32  division , [or the] licensee , permittee or owner-developer is a party and

4-33  which involves the conduct of the licensee , permittee or owner-developer

4-34  in the transaction with which the charges are related, the running of the 3-

4-35  year period with respect to the institution of a proceeding pursuant to this

4-36  chapter to suspend , [or] revoke or deny the renewal of the license , permit

4-37  or registration is suspended during the pendency of the action or

4-38  proceeding.

4-39    Sec. 6.  NRS 645.690 is hereby amended to read as follows:

4-40    645.690  1.  The hearing on the charges must be held at such time and

4-41  place as the commission prescribes. The hearing may be held by the

4-42  commission or a majority thereof, and the hearing must be held, if the

4-43  licensee , permittee or owner-developer so requests in writing, within the

4-44  northern or southern district, as set forth in NRS 645.100, within which the

4-45  [licensee’s] principal place of business of the licensee, permittee or owner-

4-46  developer is situated.

4-47    2.  At the hearing, a stenographic transcript of the proceedings must be

4-48  made if requested or required for judicial review. Any party to the

5-1  proceedings desiring a transcript must be furnished with a copy upon

5-2  payment to the division of the reasonable cost of transcription.

5-3    Sec. 7.  NRS 645.990 is hereby amended to read as follows:

5-4    645.990  1.  A person who:

5-5    (a) Obtains or attempts to obtain a license pursuant to this chapter by

5-6  means of intentional misrepresentation, deceit or fraud; or

5-7    (b) Sells or attempts to sell in this state any interest in real property by

5-8  means of intentional misrepresentation, deceit or fraud,

5-9  is guilty of a category D felony and shall be punished as provided in NRS

5-10  193.130. In addition to any other penalty, the court shall order the person to

5-11  pay restitution.

5-12    2.  Any licensee , permittee or owner-developer who commits an act

5-13  described in NRS 645.630, 645.633 or 645.635 shall be punished by a fine

5-14  of not more than $5,000 for each offense.

5-15    3.  A person who violates any other provision of this chapter, if a

5-16  natural person, is guilty of a gross misdemeanor, and if a limited-liability

5-17  company, partnership, association or corporation, shall be punished by a

5-18  fine of not more than $2,500.

5-19    4.  Any officer or agent of a corporation, or member or agent of a

5-20  limited-liability company, partnership or association, who personally

5-21  participates in or is an accessory to any violation of this chapter by the

5-22  limited-liability company, partnership, association or corporation, is

5-23  subject to the penalties prescribed in this section for natural persons.

5-24    5.  [Nothing in this section releases] The provisions of this section do

5-25  not release a person from civil liability or criminal prosecution pursuant to

5-26  the general laws of this state.

5-27    6.  The administrator may prefer a complaint for violation of NRS

5-28  645.230 before any court of competent jurisdiction and may take the

5-29  necessary legal steps through the proper legal officers of this state to

5-30  enforce the provisions thereof.

5-31    7.  Any court of competent jurisdiction may try any violation of this

5-32  chapter, and upon conviction the court may revoke or suspend the license

5-33  of the person so convicted, in addition to imposing the other penalties

5-34  provided in this section.

5-35    8.  If discipline is imposed pursuant to this section, the costs of the

5-36  proceeding, including investigative costs and attorney’s fees, may be

5-37  recovered by the administrator.

5-38    Sec. 8.  Chapter 645C of NRS is hereby amended by adding thereto a

5-39  new section to read as follows:

5-40    The expiration or revocation of a certificate, license or registration

5-41  card by operation of law or by order or decision of the commission or a

5-42  court of competent jurisdiction, or the voluntary surrender of a

5-43  certificate, license or registration card by a certified or licensed appraiser

5-44  or registered intern does not:

5-45    1.  Prohibit the commission or division from initiating or continuing

5-46  an investigation of, or action or disciplinary proceeding against, the

5-47  certified or licensed appraiser or registered intern as authorized pursuant

5-48  to the provisions of this chapter or the regulations adopted pursuant

5-49  thereto; or

6-1    2.  Prevent the imposition or collection of any fine or penalty

6-2  authorized pursuant to the provisions of this chapter or the regulations

6-3  adopted pursuant thereto against the certified or licensed appraiser or

6-4  registered intern.

6-5    Sec. 9.  NRS 645C.460 is hereby amended to read as follows:

6-6    645C.460  1.  Grounds for disciplinary action against a certified or

6-7  licensed appraiser or registered intern include:

6-8    (a) Unprofessional conduct;

6-9    (b) Professional incompetence;

6-10    (c) A criminal conviction for a felony or any offense involving moral

6-11  turpitude; and

6-12    (d) The suspension or revocation of a registration card, certificate,

6-13  license or permit to act as an appraiser in any other jurisdiction.

6-14    2.  If grounds for disciplinary action against an appraiser or intern exist,

6-15  the commission may do one or more of the following:

6-16    (a) Revoke or suspend his certificate, license or registration card.

6-17    (b) Place conditions upon his certificate, license or registration card, or

6-18  upon the reissuance of a certificate, license or registration card revoked

6-19  pursuant to this section.

6-20    (c) Deny the renewal of his certificate, license or registration card.

6-21    (d) Impose a fine of not more than $1,000 for each violation.

6-22    3.  If a certificate, license or registration card is revoked by the

6-23  commission, another certificate, license or registration card must not be

6-24  issued to the same appraiser or intern for at least [one] 1 year after the date

6-25  of the revocation, or at any time thereafter except in the sole discretion of

6-26  the administrator, and then only if the appraiser or intern satisfies all the

6-27  requirements for an original certificate, license or registration card.

6-28    4.  If discipline is imposed pursuant to this section, the costs of the

6-29  proceeding, including investigative costs and attorney’s fees, may be

6-30  recovered by the commission.

6-31    Sec. 10.  NRS 645C.500 is hereby amended to read as follows:

6-32    645C.500  1.  Except as otherwise provided in NRS 425.540, the

6-33  procedure set forth in this section and NRS 645C.510 and 645C.520 must

6-34  be followed before the [revocation or suspension] commission revokes,

6-35  suspends or denies the renewal of a certificate, license or registration card.

6-36    2.  Upon the initiation of a complaint by the administrator, he shall set

6-37  the matter for a hearing and schedule a date for the hearing before the

6-38  commission. The appraiser or intern is entitled to appear at the hearing in

6-39  person and to be represented by counsel.

6-40    3.  The commission shall hold the hearing within 90 days after the

6-41  filing of a complaint by the administrator. The hearing may be continued

6-42  by the commission upon its own motion, or at the discretion of the

6-43  commission upon the written request of the division, appraiser or intern,

6-44  for good cause shown.

6-45    4.  The division shall give written notice of the date, time and place of

6-46  the hearing, together with a copy of the complaint and copies of all

6-47  communications, reports, affidavits or depositions in the possession of the

6-48  division relevant to the complaint, to the appraiser or intern not less than 30

6-49  days before the hearing. The division may present evidence it obtains after

7-1  the notice was given only if it shows that the evidence was not available

7-2  upon diligent investigation before the notice was given and that the

7-3  evidence was given or communicated to the appraiser or intern

7-4  immediately after it was obtained.

7-5    5.  Notice pursuant to this section is deemed to be given upon personal

7-6  delivery to the appraiser or intern, or upon mailing by certified mail to his

7-7  last known address. If the complaint is against an intern, the division shall

7-8  also notify the appraiser with whom he is associated by mailing an exact

7-9  statement of the charges, and the date, time and place of the hearing, by

7-10  certified mail to the last known address of the appraiser.

7-11    Sec. 11.  NRS 645C.510 is hereby amended to read as follows:

7-12    645C.510  1.  The appraiser or intern must file an answer to the

7-13  charges with the commission not later than 30 days after service of the

7-14  notice and other documents described in NRS 645C.500. The answer must

7-15  contain an admission or denial of the allegations contained in the complaint

7-16  and any defenses upon which the appraiser or intern will rely. If no answer

7-17  is filed within the period described in this subsection, the division may,

7-18  after notice to the appraiser or intern given in the manner provided in

7-19  subsection 5 of NRS 645C.500, move the commission for the entry of a

7-20  default against the appraiser or intern.

7-21    2.  The answer may be served by delivery to the commission, or by

7-22  mailing the answer by certified mail to the principal office of the division.

7-23    3.  No proceeding [for the suspension or revocation] to suspend, revoke

7-24  or deny the renewal of a certificate, license or registration card may be

7-25  maintained unless it is commenced by giving notice to the appraiser or

7-26  intern within 3 years after the commission or omission of the alleged

7-27  grounds [for suspension or revocation,] to suspend, revoke or deny the

7-28  renewal of the certificate, license or registration, except that:

7-29    (a) If the charges are based upon a misrepresentation or failure to

7-30  disclose, the period does not commence until the discovery of facts which

7-31  do or should lead to the discovery of the misrepresentation or failure to

7-32  disclose; and

7-33    (b) The period is suspended during the pendency of any action or

7-34  proceeding, to which the division, appraiser or intern is a party, which

7-35  involves the conduct of the appraiser or intern in a transaction to which the

7-36  alleged grounds [for suspension or revocation] to suspend, revoke or deny

7-37  the renewal of the certificate, license or registration are related.

7-38    Sec. 12.  Chapter 645D of NRS is hereby amended by adding thereto a

7-39  new section to read as follows:

7-40    The expiration or revocation of a certificate by operation of law or by

7-41  order or decision of a hearing officer or court of competent jurisdiction,

7-42  or the voluntary surrender of a certificate by a certified inspector does

7-43  not:

7-44    1.  Prohibit the division from initiating or continuing an investigation

7-45  of, or action or disciplinary proceeding against, the certified inspector as

7-46  authorized pursuant to the provisions of this chapter or the regulations

7-47  adopted pursuant thereto; or

8-1    2.  Prevent the imposition or collection of any fine or penalty

8-2  authorized pursuant to the provisions of this chapter or the regulations

8-3  adopted pursuant thereto against the certified inspector.

8-4    Sec. 13.  NRS 645D.700 is hereby amended to read as follows:

8-5    645D.700  1.  Grounds for disciplinary action against a certified

8-6  inspector are:

8-7    (a) Unprofessional conduct;

8-8    (b) Professional incompetence; and

8-9    (c) A criminal conviction for a felony or any offense involving moral

8-10  turpitude.

8-11    2.  If grounds for disciplinary action against a certified inspector exist,

8-12  the division may, after providing the inspector with notice and an

8-13  opportunity for a hearing, do one or more of the following:

8-14    (a) Revoke or suspend his certificate.

8-15    (b) Place conditions upon his certificate or upon the reissuance of a

8-16  certificate revoked pursuant to this section.

8-17    (c) Deny the renewal of his certificate.

8-18    (d) Impose a fine of not more than $1,000 for each violation.

8-19    3.  If a certificate is revoked by the division, another certificate must

8-20  not be issued to the same inspector for at least 1 year after the date of the

8-21  revocation, or at any time thereafter except in the sole discretion of the

8-22  administrator, and then only if the inspector satisfies the requirements for

8-23  an original certificate.

8-24    Sec. 14.  Chapter 116 of NRS is hereby amended by adding thereto a

8-25  new section to read as follows:

8-26    The expiration or revocation of a certificate for the management of a

8-27  common-interest community by operation of law or by order or decision

8-28  of the real estate commission or a court of competent jurisdiction, or the

8-29  voluntary surrender of such a certificate by the holder of the certificate

8-30  does not:

8-31    1.  Prohibit the real estate division of the department of business and

8-32  industry or real estate commission from initiating or continuing an

8-33  investigation of, or action or disciplinary proceeding against, the holder

8-34  of the certificate as authorized pursuant to the provisions of this chapter

8-35  or the regulations adopted pursuant thereto; or

8-36    2.  Prevent the imposition or collection of any fine or penalty

8-37  authorized pursuant to the provisions of this chapter or the regulations

8-38  adopted pursuant thereto against the holder of the certificate.

8-39    Sec. 15.  NRS 116.1203 is hereby amended to read as follows:

8-40    116.1203  1.  Except as otherwise provided in subsection 2, if a

8-41  planned community contains no more than 12 units and is not subject to

8-42  any developmental rights, it is subject only to NRS 116.1105, 116.1106

8-43  and 116.1107 unless the declaration provides that this entire chapter is

8-44  applicable.

8-45    2.  Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138,

8-46  NRS 116.3101 to 116.3119, inclusive, and section 14 of this act, and

8-47  116.110305 to 116.110393, inclusive, to the extent necessary in construing

8-48  any of those sections, apply to a residential planned community containing

8-49  more than six units.

9-1    Sec. 16.  Chapter 119 of NRS is hereby amended by adding thereto a

9-2  new section to read as follows:

9-3    The expiration or revocation of a property report, permit, partial

9-4  registration, exemption, license or registration by operation of law or by

9-5  order or decision of the administrator, a hearing officer or a court of

9-6  competent jurisdiction, or the voluntary surrender of a property report,

9-7  permit, partial registration, exemption, license or registration by a

9-8  developer, broker, real estate salesman or registered representative does

9-9  not:

9-10    1.  Prohibit the administrator or division from initiating or

9-11  continuing an investigation of, or action or disciplinary proceeding

9-12  against, the developer, broker, real estate salesman or registered

9-13  representative as authorized pursuant to the provisions of this chapter or

9-14  the regulations adopted pursuant thereto; or

9-15    2.  Prevent the imposition or collection of any fine or penalty

9-16  authorized pursuant to the provisions of this chapter or the regulations

9-17  adopted pursuant thereto against the developer, broker, real estate

9-18  salesman or registered representative.

9-19    Sec. 17.  NRS 119.165 is hereby amended to read as follows:

9-20    119.165  1.  A developer’s permit must be renewed annually by the

9-21  developer by filing an application with and paying the fee for renewal to

9-22  the administrator. The application must be filed and the fee paid not later

9-23  than 30 days before the date on which the permit expires. The application

9-24  must include any change that has occurred in the information previously

9-25  provided to the administrator or in a property report provided to a

9-26  prospective purchaser pursuant to the provisions of NRS 119.182.

9-27    2.  The renewal is effective on the 30th day after the filing of the

9-28  application unless the administrator:

9-29    (a) Denies the renewal[;] pursuant to NRS 119.325 or for any other

9-30  reason; or

9-31    (b) Approves the renewal on an earlier date.

9-32    Sec. 18.  NRS 119.190 is hereby amended to read as follows:

9-33    119.190  [Any] In addition to any other penalty imposed by this

9-34  chapter, the division:

9-35    1.  Shall suspend or revoke the license or registration of a broker, real

9-36  estate salesman or registered representative [violating] who violates any

9-37  provision of this chapter [shall, in addition to any other penalty imposed by

9-38  this chapter, have his license or registration suspended or revoked by the

9-39  division] for such time as in the circumstances it considers justified.

9-40    2.  May deny the renewal of the license or registration of a broker,

9-41  real estate salesman or registered representative who violates any

9-42  provision of this chapter.

9-43    Sec. 19.  NRS 119.325 is hereby amended to read as follows:

9-44    119.325  The administrator may impose a fine or suspend, revoke ,

9-45  deny the renewal of or place conditions upon the property report, permit,

9-46  partial registration, exemption or license issued pursuant to this chapter of

9-47  a developer at any time if:

9-48    1.  The developer obtained the property report, permit, partial

9-49  registration, exemption or license by false or fraudulent representation; or

10-1    2.  The developer violates any of the terms or conditions of the

10-2  property report, permit, partial registration, exemption or license, the

10-3  provisions of this chapter or the regulations adopted pursuant thereto.

10-4  The administrator shall not impose a fine of more than $5,000 pursuant to

10-5  this section.

10-6    Sec. 20.  Chapter 119A of NRS is hereby amended by adding thereto a

10-7  new section to read as follows:

10-8    The expiration or revocation of a license or permit by operation of law

10-9  or by order or decision of a hearing officer or a court of competent

10-10  jurisdiction, or the voluntary surrender of a license or permit by a sales

10-11  agent, project broker or developer does not:

10-12  1.  Prohibit the administrator, division or real estate commission from

10-13  initiating or continuing an investigation of, or action or disciplinary

10-14  proceeding against, the sales agent, project broker or developer; or

10-15  2.  Prevent the imposition or collection of any fine or penalty

10-16  authorized pursuant to the provisions of this chapter against the sales

10-17  agent, project broker or developer.

10-18  Sec. 21.  NRS 119A.230 is hereby amended to read as follows:

10-19  119A.230  1.  The administrator may impose a fine or suspend, revoke

10-20  , [or] reissue, subject to conditions, or deny the renewal of any sales

10-21  agent’s license issued under the provisions of this chapter at any time if the

10-22  sales agent has, by false or fraudulent application or representation,

10-23  obtained a license or, whether or not acting as a sales agent, is found guilty

10-24  of:

10-25  (a) Making any material misrepresentation;

10-26  (b) Making any false promises of a character likely to influence,

10-27  persuade or induce;

10-28  (c) Engaging in any fraudulent, misleading or oppressive sales

10-29  techniques or tactics;

10-30  (d) Accepting a commission or valuable consideration as a sales agent

10-31  for the performance of any of the acts specified in this chapter from any

10-32  person except a licensed project broker with whom the sales agent is

10-33  associated or the developer by whom he is employed;

10-34  (e) Failing, within a reasonable time, to account for or remit or turn over

10-35  to the project broker any money which comes into his possession and

10-36  which belongs to others;

10-37  (f) Violating any of the provisions of this chapter or chapter 119B of

10-38  NRS or of any regulation adopted pursuant to either chapter, or willfully

10-39  aiding or abetting another to do so; or

10-40  (g) A felony or other crime of moral turpitude or has entered a plea of

10-41  nolo contendere to a felony or other crime of moral turpitude.

10-42  2.  The administrator may investigate the actions of any sales agent or

10-43  any person who acts in such a capacity within the State of Nevada.

10-44  Sec. 22.  NRS 119A.355 is hereby amended to read as follows:

10-45  119A.355  1.  A permit must be renewed annually by the developer by

10-46  filing an application with and paying the fee for renewal to the

10-47  administrator. The application must be filed and the fee paid not later than

10-48  30 days before the date on which the permit expires. The application must

10-49  include the budget of the association of time-share owners or the budget of

11-1  the developer, if there is no association, and any change that has occurred

11-2  in the information previously provided to the administrator or in a

11-3  statement of disclosure provided to a prospective purchaser pursuant to the

11-4  provisions of NRS 119A.400.

11-5    2.  The renewal is effective on the 30th day after the filing of the

11-6  application unless the administrator:

11-7    (a) Denies the renewal[;] pursuant to NRS 119A.654 or for any other

11-8  reason; or

11-9    (b) Approves the renewal on an earlier date.

11-10  Sec. 23.  NRS 119A.630 is hereby amended to read as follows:

11-11  119A.630  For any proceeding held pursuant to a provision of this

11-12  chapter, except a hearing to impose a fine or revoke , [or] suspend or deny

11-13  the renewal of a license[,] or permit, the administrator may appoint a

11-14  hearing officer from the staff of the department of business and industry

11-15  who shall act as his agent and conduct any hearing or investigation which

11-16  may be conducted by the administrator pursuant to this chapter. The

11-17  administrator shall appoint a hearing officer to conduct a hearing to impose

11-18  a fine or revoke , [or] suspend or deny the renewal of a license[.] or

11-19  permit.

11-20  Sec. 24.  NRS 119A.652 is hereby amended to read as follows:

11-21  119A.652  1.  The division shall regularly inspect the files of

11-22  transactions, records of trusts and relevant accounts of all project brokers

11-23  and developers.

11-24  2.  [The] If a project broker or developer fails to allow or cooperate

11-25  fully with such an inspection, the division may [impose] :

11-26  (a) Impose a fine or suspend or revoke the license or permit of [any] the

11-27  project broker or developer [who fails to allow or cooperate fully with such

11-28  an inspection.] ; or

11-29  (b) Deny the renewal of the license of the project broker.

11-30  3.  The division shall adopt regulations specifying the procedure for

11-31  such inspections.

11-32  Sec. 25.  NRS 119A.654 is hereby amended to read as follows:

11-33  119A.654  The administrator may impose a fine or suspend, revoke ,

11-34  deny the renewal of or place conditions upon the permit of a developer at

11-35  any time if the developer:

11-36  1.  Obtained the permit by false or fraudulent representation; or

11-37  2.  Violates any of the terms or conditions of the permit, the provisions

11-38  of this chapter or the regulations adopted pursuant thereto.

11-39  Sec. 26.  NRS 119A.655 is hereby amended to read as follows:

11-40  119A.655  1.  The procedure set forth in this section must be followed

11-41  before the [imposition of a fine or revocation or suspension of]

11-42  administrator or division imposes a fine or revokes, suspends or denies

11-43  the renewal of any license or permit[.] issued pursuant to this chapter.

11-44  2.  Upon the initiation of a complaint by the administrator, the matter

11-45  must be set for a hearing by the administrator, who shall schedule a hearing

11-46  before the hearing officer, and the licensee or permittee is entitled to be

11-47  heard thereon in person or by counsel.

11-48  3.  The hearing officer shall hold the hearing within 90 days after the

11-49  filing of a complaint by the administrator. The time of the hearing may be

12-1  continued at the discretion of the hearing officer, upon the written request

12-2  of the licensee or permittee or of the administrator for good cause shown.

12-3    4.  The licensee or permittee must be given at least 30 days’ notice in

12-4  writing by the administrator of the date, time and place of the hearing

12-5  together with a copy of the complaint and copies of all communications,

12-6  reports, affidavits or depositions in possession of the division relevant to

12-7  the complaint. The administrator may present evidence obtained after the

12-8  notice only if he shows that the evidence was not available after diligent

12-9  investigation before the time notice was given to the licensee or permittee

12-10  and that the evidence was given or communicated to the licensee or

12-11  permittee immediately after it was obtained.

12-12  5.  Notice is complete upon delivery personally to the licensee[,] or

12-13  permittee or upon mailing by certified mail to the last known address of the

12-14  licensee[.] or permittee. If the licensee is a sales agent, the administrator

12-15  shall also notify the broker with whom he is associated, or the developer by

12-16  whom he is employed, by mailing an exact statement of the charges and the

12-17  date, time and place of the hearing by certified mail to the developer’s or

12-18  broker’s last known address.

12-19  Sec. 27.  NRS 119A.656 is hereby amended to read as follows:

12-20  119A.656  1.  Within 20 days after service of the notice upon him, the

12-21  licensee or permittee shall file an answer to the charges with the division.

12-22  The answer must contain an admission or denial of the allegations

12-23  contained in the complaint and any defenses upon which the licensee or

12-24  permittee will rely.

12-25  2.  The answer may be served by delivery to the administrator, or by

12-26  mailing the answer by certified mail to the principal office of the division.

12-27  3.  No proceeding [for the imposition of] to impose a fine or [the

12-28  suspension or revocation] suspend, revoke or deny the renewal of any

12-29  license or permit may be maintained unless it is commenced by the giving

12-30  of notice to the licensee or permittee within 3 years after the time of the act

12-31  charged, whether of commission or omission, except:

12-32  (a) If the charges are based upon a failure to disclose or

12-33  misrepresentation, the period does not commence until the discovery of

12-34  facts which do or should lead to the discovery of the failure to disclose or

12-35  misrepresentation; and

12-36  (b) Whenever any action or proceeding is instituted to which the

12-37  division , [or the] licensee or permittee is a party and which involves the

12-38  conduct of the licensee or permittee in the transaction with which the

12-39  charges are related, the running of the 3-year period with respect to the

12-40  institution of a proceeding under this chapter to impose a fine or suspend ,

12-41  [or] revoke or deny the renewal of the license or permit is suspended

12-42  during the pendency of the action or proceeding.

12-43  Sec. 28.  NRS 119A.657 is hereby amended to read as follows:

12-44  119A.657  1.  The hearing officer shall render a decision on any

12-45  complaint within 60 days after the final hearing thereon and shall give

12-46  notice in writing of the ruling or decision to the applicant , [or] licensee or

12-47  permittee affected thereby by certified mail to the last known address of

12-48  the person to whom the notice is sent.

13-1    2.  If the ruling is adverse to the licensee[,] or permittee, the hearing

13-2  officer shall also state in the notice the date upon which the ruling or

13-3  decision becomes effective, which date must not be less than 30 days after

13-4  the date of the notice.

13-5    3.  The decision of the hearing officer may not be stayed by any appeal

13-6  unless the district court so orders upon motion of the licensee[,] or

13-7  permittee, notice to the division of the motion and opportunity for the

13-8  division to be heard.

13-9    4.  An appeal from a decision of the district court affirming the

13-10  imposition of a fine or the revocation , [or] suspension or denial of the

13-11  renewal of a license or permit does not stay the order of the hearing officer

13-12  unless the district or appellate court upon petition of the licensee or

13-13  permittee after notice and hearing orders such stay, and upon the filing of a

13-14  bond for costs in the amount of $1,000.

13-15  Sec. 29.  NRS 119A.658 is hereby amended to read as follows:

13-16  119A.658  1.  A ruling or decision of the hearing officer in any

13-17  disciplinary action is final when in favor of the licensee[.] or permittee.

13-18  2.  If a ruling or decision is against the licensee[,] or permittee, the

13-19  licensee or permittee may within 30 days after the date of the decision

13-20  appeal therefrom to the district court for the county in which the party

13-21  adversely affected by the decision resides or has his place of business

13-22  under the terms of this chapter, by filing in the district court and serving

13-23  upon the administrator personally or by certified mail a notice of the

13-24  appeal, a written petition for review and a demand in writing for a certified

13-25  transcript and copies of all the papers on file in the office of the division

13-26  affecting or relating to the decision and the evidence taken at the hearing.

13-27  Thereupon, the division shall, within 30 days, make and certify the

13-28  transcript and the copies and file them with the clerk of the court. The

13-29  petition for review need not be verified but must set forth in specific detail

13-30  any ground for the appeal, including any errors which the licensee or

13-31  permittee contends that the hearing officer committed at the hearing.

13-32  3.  The appellant’s opening brief must be filed in the district court

13-33  within 30 days after the date on which the transcript is filed with the court.

13-34  The respondent’s answering brief must be filed within 30 days after the

13-35  appellant’s opening brief is filed. If the appellant chooses to file a reply

13-36  brief, it must be filed within 10 days after the respondent’s answering brief

13-37  is filed. Failure to file a brief within the time prescribed in this section

13-38  constitutes a waiver of the right to file that brief, unless the court grants an

13-39  extension for good cause shown.

13-40  4.  The burden of proof in the appeal is on the appellant. The court shall

13-41  consider the action of the administrator upon which the decision of the

13-42  hearing officer was based, and is limited solely to a consideration and

13-43  determination of the question of whether there has been an abuse of

13-44  discretion on the part of the administrator in making that decision.

13-45  Sec. 30. This act becomes effective upon passage and approval.

 

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