AB621_EN

Assembly Bill No. 621–Committee on Commerce and Labor

CHAPTER..........

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:

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

new section to read as follows:

The expiration or revocation of a license, permit or registration by

operation of law or by order or decision of the commission or a court of

competent jurisdiction, or the voluntary surrender of a license, permit or

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

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

1. Prohibit the administrator, commission or division from initiating

or continuing an investigation of, or action or disciplinary proceeding

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

salesman, property manager or owner-developer as authorized pursuant

to the provisions of this chapter or the regulations adopted pursuant

thereto; or

2. Prevent the imposition or collection of any fine or penalty

authorized pursuant to the provisions of this chapter or the regulations

adopted pursuant thereto against the real estate broker, real estate

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

-developer.

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

645.630 The commission may require a licensee , property manager

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

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

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

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

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

representation, obtained a license , permit or registration, or the licensee ,

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

found guilty of:

1. Making any material misrepresentation.

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

persuade or induce.

3. Accepting a commission or valuable consideration as a real estate

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

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

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

owner-developer by whom he is employed.

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

than the broker with whom he is associated, without the express

knowledge and consent of the broker with whom he is associated.

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

brokerage agreement governed by the provisions of this chapter and

entered into by the licensee.

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

money which comes into his possession and which belongs to others.

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

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

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

account as required in NRS 645.310.

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

own or converting the money of others to his own use.

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

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

any deposit or other money or consideration entrusted to him by any

person dealing with him as the representative of his licensed broker.

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

communicated to the owner before his acceptance of the offer to purchase

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

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

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

the next banking day unless otherwise provided in the purchase agreement.

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

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

lease with the same or another party if the inducement to make the

substitution is offered to secure personal gain to the licensee or owner

-developer.

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

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

recovered by the board.

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

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

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

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

associated with the licensee, unless it appears to the satisfaction of the

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

course of dealing shown to have been persistently and consistently

followed by any licensee constitutes prima facie evidence of such

knowledge upon the part of the associate.

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

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

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

employment, the commission may suspend , [or] revoke or deny the

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

$5,000.

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

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

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

adequate supervision of a salesman or broker-salesman associated with

him and that person commits any unlawful act or violates any of the

provisions of this chapter.

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

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

must be followed before the [revocation or suspension] commission

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

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

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

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

hearing before the commission, and the licensee , permit or owner

-developer is entitled to be heard thereon in person or by counsel.

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

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

continued upon the motion of the commission or at the discretion of the

commission, upon the written request of the licensee , permittee or owner

-developer or of the division for good cause shown.

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

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

hearing together with a copy of the complaint and copies of all

communications, reports, affidavits or depositions in possession of the

division relevant to the complaint. The division may present evidence

obtained after the notice only if the division shows that the evidence was

not available after diligent investigation before the time notice was given

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

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

immediately after it was obtained.

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

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

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

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

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

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

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

broker’s last known address.

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

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

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

service of the notice and other documents described in subsection 4 of

NRS 645.680. The answer must contain an admission or denial of the

allegations contained in the complaint and any defenses upon which the

licensee , permittee or owner-developer will rely. If no answer is filed

within the time limit described in this subsection, the division may, after

notice to the licensee , permittee or owner-developer served in the manner

authorized in subsection 5 of NRS 645.680, move the commission for the

entry of a default against the licensee[.] , permittee or owner-developer.

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

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

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

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

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

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

act charged, whether of commission or omission, except:

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

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

do or should lead to the discovery of the misrepresentation or failure to

disclose; and

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

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

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

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

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

chapter to suspend , [or] revoke or deny the renewal of the license ,

permit or registration is suspended during the pendency of the action or

proceeding.

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

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

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

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

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

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

[licensee’s] principal place of business of the licensee, permittee or

owner-developer is situated.

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

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

proceedings desiring a transcript must be furnished with a copy upon

payment to the division of the reasonable cost of transcription.

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

645.990 1. A person who:

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

means of intentional misrepresentation, deceit or fraud; or

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

means of intentional misrepresentation, deceit or fraud,

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

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

to pay restitution.

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

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

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

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

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

company, partnership, association or corporation, shall be punished by a

fine of not more than $2,500.

4. Any officer or agent of a corporation, or member or agent of a

limited-liability company, partnership or association, who personally

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

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

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

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

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

the general laws of this state.

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

645.230 before any court of competent jurisdiction and may take the

necessary legal steps through the proper legal officers of this state to

enforce the provisions thereof.

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

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

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

provided in this section.

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

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

recovered by the administrator.

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

new section to read as follows:

The expiration or revocation of a certificate, license or registration

card by operation of law or by order or decision of the commission or a

court of competent jurisdiction, or the voluntary surrender of a

certificate, license or registration card by a certified or licensed

appraiser or registered intern does not:

1. Prohibit the commission or division from initiating or continuing

an investigation of, or action or disciplinary proceeding against, the

certified or licensed appraiser or registered intern as authorized

pursuant to the provisions of this chapter or the regulations adopted

pursuant thereto; or

2. Prevent the imposition or collection of any fine or penalty

authorized pursuant to the provisions of this chapter or the regulations

adopted pursuant thereto against the certified or licensed appraiser or

registered intern.

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

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

licensed appraiser or registered intern include:

(a) Unprofessional conduct;

(b) Professional incompetence;

turpitude; and

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

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

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

the commission may do one or more of the following:

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

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

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

pursuant to this section.

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

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

commission, another certificate, license or registration card must not be

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

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

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

requirements for an original certificate, license or registration card.

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

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

recovered by the commission.

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

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

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

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

suspends or denies the renewal of a certificate, license or registration

card.

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

the matter for a hearing and schedule a date for the hearing before the

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

person and to be represented by counsel.

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

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

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

commission upon the written request of the division, appraiser or intern,

for good cause shown.

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

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

communications, reports, affidavits or depositions in the possession of the

division relevant to the complaint, to the appraiser or intern not less than

30 days before the hearing. The division may present evidence it obtains

after the notice was given only if it shows that the evidence was not

available upon diligent investigation before the notice was given and that

the evidence was given or communicated to the appraiser or intern

immediately after it was obtained.

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

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

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

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

statement of the charges, and the date, time and place of the hearing, by

certified mail to the last known address of the appraiser.

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

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

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

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

contain an admission or denial of the allegations contained in the

complaint and any defenses upon which the appraiser or intern will rely. If

no answer is filed within the period described in this subsection, the

division may, after notice to the appraiser or intern given in the manner

provided in subsection 5 of NRS 645C.500, move the commission for the

entry of a default against the appraiser or intern.

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

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

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

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

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

intern within 3 years after the commission or omission of the alleged

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

renewal of the certificate, license or registration, except that:

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

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

do or should lead to the discovery of the misrepresentation or failure to

disclose; and

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

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

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

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

the renewal of the certificate, license or registration are related.

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

new section to read as follows:

The expiration or revocation of a certificate by operation of law or by

order or decision of a hearing officer or court of competent jurisdiction,

or the voluntary surrender of a certificate by a certified inspector does

not:

1. Prohibit the division from initiating or continuing an investigation

of, or action or disciplinary proceeding against, the certified inspector as

authorized pursuant to the provisions of this chapter or the regulations

adopted pursuant thereto; or

2. Prevent the imposition or collection of any fine or penalty

authorized pursuant to the provisions of this chapter or the regulations

adopted pursuant thereto against the certified inspector.

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

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

inspector are:

(a) Unprofessional conduct;

(b) Professional incompetence; and

turpitude.

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

the division may, after providing the inspector with notice and an

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

(a) Revoke or suspend his certificate.

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

certificate revoked pursuant to this section.

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

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

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

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

administrator, and then only if the inspector satisfies the requirements for

an original certificate.

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

new section to read as follows:

The expiration or revocation of a certificate for the management of a

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

of the real estate commission or a court of competent jurisdiction, or the

voluntary surrender of such a certificate by the holder of the certificate

does not:

1. Prohibit the real estate division of the department of business and

industry or real estate commission from initiating or continuing an

investigation of, or action or disciplinary proceeding against, the holder

of the certificate as authorized pursuant to the provisions of this chapter

or the regulations adopted pursuant thereto; or

2. Prevent the imposition or collection of any fine or penalty

authorized pursuant to the provisions of this chapter or the regulations

adopted pursuant thereto against the holder of the certificate.

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

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

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

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

and 116.1107 unless the declaration provides that this entire chapter is

applicable.

2. Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138,

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

116.110305 to 116.110393, inclusive, to the extent necessary in construing

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

more than six units.

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

new section to read as follows:

The expiration or revocation of a property report, permit, partial

registration, exemption, license or registration by operation of law or by

order or decision of the administrator, a hearing officer or a court of

competent jurisdiction, or the voluntary surrender of a property report,

permit, partial registration, exemption, license or registration by a

developer, broker, real estate salesman or registered representative does

not:

1. Prohibit the administrator or division from initiating or

continuing an investigation of, or action or disciplinary proceeding

against, the developer, broker, real estate salesman or registered

representative as authorized pursuant to the provisions of this chapter or

the regulations adopted pursuant thereto; or

2. Prevent the imposition or collection of any fine or penalty

authorized pursuant to the provisions of this chapter or the regulations

adopted pursuant thereto against the developer, broker, real estate

salesman or registered representative.

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

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

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

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

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

must include any change that has occurred in the information previously

provided to the administrator or in a property report provided to a

prospective purchaser pursuant to the provisions of NRS 119.182.

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

application unless the administrator:

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

reason; or

(b) Approves the renewal on an earlier date.

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

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

chapter, the division:

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

estate salesman or registered representative [violating] who violates any

provision of this chapter [shall, in addition to any other penalty imposed

by this chapter, have his license or registration suspended or revoked by

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

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

real estate salesman or registered representative who violates any

provision of this chapter.

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

119.325 The administrator may impose a fine or suspend, revoke ,

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

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

a developer at any time if:

1. The developer obtained the property report, permit, partial

registration, exemption or license by false or fraudulent representation; or

2. The developer violates any of the terms or conditions of the

property report, permit, partial registration, exemption or license, the

provisions of this chapter or the regulations adopted pursuant thereto.

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

this section.

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

new section to read as follows:

The expiration or revocation of a license or permit by operation of law

or by order or decision of a hearing officer or a court of competent

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

agent, project broker or developer does not:

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

initiating or continuing an investigation of, or action or disciplinary

proceeding against, the sales agent, project broker or developer; or

2. Prevent the imposition or collection of any fine or penalty

authorized pursuant to the provisions of this chapter against the sales

agent, project broker or developer.

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

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

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

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

the sales agent has, by false or fraudulent application or representation,

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

of:

(a) Making any material misrepresentation;

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

persuade or induce;

techniques or tactics;

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

for the performance of any of the acts specified in this chapter from any

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

associated or the developer by whom he is employed;

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

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

which belongs to others;

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

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

aiding or abetting another to do so; or

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

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

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

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

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

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

filing an application with and paying the fee for renewal to the

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

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

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

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

in the information previously provided to the administrator or in a

statement of disclosure provided to a prospective purchaser pursuant to the

provisions of NRS 119A.400.

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

application unless the administrator:

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

reason; or

(b) Approves the renewal on an earlier date.

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

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

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

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

hearing officer from the staff of the department of business and industry

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

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

administrator shall appoint a hearing officer to conduct a hearing to

impose a fine or revoke , [or] suspend or deny the renewal of a license[.]

or permit.

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

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

transactions, records of trusts and relevant accounts of all project brokers

and developers.

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

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

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

project broker or developer [who fails to allow or cooperate fully with

such an inspection.] ; or

(b) Deny the renewal of the license of the project broker.

3. The division shall adopt regulations specifying the procedure for

such inspections.

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

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

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

any time if the developer:

1. Obtained the permit by false or fraudulent representation; or

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

of this chapter or the regulations adopted pursuant thereto.

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

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

before the [imposition of a fine or revocation or suspension of]

administrator or division imposes a fine or revokes, suspends or denies

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

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

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

hearing before the hearing officer, and the licensee or permittee is entitled

to be heard thereon in person or by counsel.

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

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

continued at the discretion of the hearing officer, upon the written request

of the licensee or permittee or of the administrator for good cause shown.

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

writing by the administrator of the date, time and place of the hearing

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

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

the complaint. The administrator may present evidence obtained after the

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

investigation before the time notice was given to the licensee or permittee

and that the evidence was given or communicated to the licensee or

permittee immediately after it was obtained.

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

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

the licensee[.] or permittee. If the licensee is a sales agent, the

administrator shall also notify the broker with whom he is associated, or

the developer by whom he is employed, by mailing an exact statement of

the charges and the date, time and place of the hearing by certified mail to

the developer’s or broker’s last known address.

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

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

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

The answer must contain an admission or denial of the allegations

contained in the complaint and any defenses upon which the licensee or

permittee will rely.

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

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

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

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

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

of notice to the licensee or permittee within 3 years after the time of the

act charged, whether of commission or omission, except:

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

misrepresentation, the period does not commence until the discovery of

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

misrepresentation; and

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

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

conduct of the licensee or permittee in the transaction with which the

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

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

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

during the pendency of the action or proceeding.

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

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

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

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

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

the person to whom the notice is sent.

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

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

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

the date of the notice.

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

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

permittee, notice to the division of the motion and opportunity for the

division to be heard.

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

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

renewal of a license or permit does not stay the order of the hearing

officer unless the district or appellate court upon petition of the licensee or

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

a bond for costs in the amount of $1,000.

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

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

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

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

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

appeal therefrom to the district court for the county in which the party

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

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

upon the administrator personally or by certified mail a notice of the

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

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

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

Thereupon, the division shall, within 30 days, make and certify the

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

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

any ground for the appeal, including any errors which the licensee or

permittee contends that the hearing officer committed at the hearing.

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

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

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

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

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

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

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

extension for good cause shown.

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

consider the action of the administrator upon which the decision of the

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

determination of the question of whether there has been an abuse of

discretion on the part of the administrator in making that decision.

Sec. 30. This act becomes effective upon passage and approval.

²⁰~~~~~⁰¹