Assembly Bill No. 77–Committee on Government Affairs

 

February 9, 2001

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Revises provisions governing unclaimed property. (BDR 10‑410)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: Yes.

 

~

 

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).

 

AN ACT relating to unclaimed property; revising provisions governing when unclaimed property is presumed abandoned; providing for a limited exemption from interest penalties for the late payment or delivery of abandoned property under certain circumstances; 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.  NRS 120A.160 is hereby amended to read as follows:

1-2    120A.160  The following property held or owing by a banking or

1-3  financial organization or by a business association is presumed abandoned:

1-4    1.  Any demand, savings or matured time deposit or other certificate of

1-5  deposit with a banking organization, together with any interest or dividend

1-6  thereon, excluding any charges that may lawfully be withheld, including a

1-7  deposit that is automatically renewable, and any money paid toward the

1-8  purchase of a share, a mutual investment certificate or any other interest in

1-9  a banking or financial organization, unless the owner has within [5] 3

1-10  years:

1-11    (a) In the case of a deposit, increased or decreased the amount of the

1-12  deposit, or presented the passbook or other similar evidence of the deposit

1-13  for the crediting of interest;

1-14    (b) Communicated in writing with the banking organization concerning

1-15  the property;

1-16    (c) Otherwise indicated an interest in the property as evidenced by a

1-17  memorandum or other record on file prepared by an employee of the

1-18  banking or financial organization;

1-19    (d) Owned other property to which paragraph (a), (b) or (c) applies and

1-20  if the banking or financial organization communicates in writing with the

1-21  owner with regard to the property that would otherwise be presumed

1-22  abandoned under this subsection at the address to which communications

1-23  regarding the other property regularly are sent; or


2-1    (e) Had another relationship with the banking or financial organization

2-2  concerning which the owner has:

2-3       (1) Communicated in writing with the banking or financial

2-4  organization; or

2-5       (2) Otherwise indicated an interest as evidenced by a memorandum

2-6  or other record on file prepared by an employee of the banking or financial

2-7  organization and if the banking or financial organization communicates in

2-8  writing with the owner with regard to the property that would otherwise be

2-9  abandoned under this subsection at the address to which communications

2-10  regarding the other relationship regularly are sent.

2-11  For the purposes of this subsection, “property” includes interest and

2-12  dividends.

2-13    2.  Any property described in subsection 1 that is automatically

2-14  renewable is matured for purposes of subsection 1 upon the expiration of

2-15  its initial time period, but in the case of any renewal to which the owner

2-16  consents at or about the time of renewal by communicating in writing with

2-17  the banking or financial organization or otherwise indicating consent as

2-18  evidenced by a memorandum or other record on file prepared by an

2-19  employee of the organization, the property is matured upon the expiration

2-20  of the last time period for which consent was given. If, at the time provided

2-21  for delivery in NRS 120A.320, a penalty or forfeiture in the payment of

2-22  interest would result from the delivery of the property, the time for delivery

2-23  is extended until the time when no penalty or forfeiture would result.

2-24    3.  Any sum payable on a check certified in this state or on a written

2-25  instrument issued in this state on which a banking or financial organization

2-26  or business association is directly liable, including any draft or cashier’s

2-27  check, which has been outstanding for more than [5] 3 years after the date

2-28  it was payable, or after the date of its issuance if payable on demand, or

2-29  any sum payable on a money order which has been outstanding for more

2-30  than [7] 5 years after its issuance, or any sum payable on a traveler’s check

2-31  which has been outstanding for more than [15] 9 years after the date of its

2-32  issuance, unless the owner has within the specified period corresponded in

2-33  writing with the banking or financial organization or business association

2-34  concerning it, or otherwise indicated an interest as evidenced by a

2-35  memorandum on file with the banking or financial organization or business

2-36  association.

2-37    4.  Any money or other personal property, tangible or intangible,

2-38  removed from a safe-deposit box or any other safekeeping repository on

2-39  which the lease or rental period has expired because of nonpayment of

2-40  rental charges or other reason, or any surplus amounts arising from the sale

2-41  thereof pursuant to law, that have been unclaimed by the owner for more

2-42  than [5] 3 years from the date on which the lease or rental period expired.

2-43  A safe-deposit box for which no rent is charged or which is provided to the

2-44  user because of a specific amount deposited with a banking or financial

2-45  organization or business association is presumed abandoned at the same

2-46  time as the account for which it was given.

2-47    Sec. 2.  NRS 120A.170 is hereby amended to read as follows:

2-48    120A.170  1.  Unclaimed money held and owing by an insurance

2-49  company is presumed abandoned if the last known address, according to


3-1  the records of the company, of the person entitled to the money is within

3-2  this state. If a person other than the insured or annuitant is entitled to the

3-3  money and no address of such person is known to the company or if it is

3-4  not definite and certain from the records of the company what person is

3-5  entitled to the money, it is presumed that the last known address of the

3-6  person entitled to the money is the same as the last known address of the

3-7  insured or annuitant according to the records of the company.

3-8    2.  “Unclaimed money,” as used in this section, means all money held

3-9  and owing by any insurance company unclaimed and unpaid for more than

3-10  [5] 3 years after the money became due and payable as established from

3-11  the records of the company under any life or endowment insurance policy

3-12  or annuity contract which has matured or terminated. A life insurance

3-13  policy not matured by actual proof of the death of the insured shall be

3-14  deemed matured and the proceeds thereof deemed due if the policy was in

3-15  force when the insured attained the limiting age under the mortality table

3-16  on which the reserve is based, unless the person appearing entitled thereto

3-17  has within the preceding [5] 3 years:

3-18    (a) Assigned, readjusted or paid premiums on the policy or subjected

3-19  the policy to loan; or

3-20    (b) Corresponded in writing with the insurance company concerning the

3-21  policy.

3-22    3.  Money otherwise payable according to the records of the company

3-23  shall be deemed due although the policy or contract has not been

3-24  surrendered as required.

3-25    Sec. 3.  NRS 120A.190 is hereby amended to read as follows:

3-26    120A.190  1.  Any stock or other intangible interest, or any dividend,

3-27  profit, distribution, interest, payment on principal or other sum held or

3-28  owing by a business association is presumed abandoned if, within [5] 3

3-29  years after the date prescribed for payment or delivery the shareholder,

3-30  certificate holder, member, bondholder, other security holder or the

3-31  participating patron of a cooperative has not claimed the property,

3-32  corresponded in writing with the business association or otherwise

3-33  indicated an interest in the property as evidenced by a memorandum or

3-34  other record on file with the association. As to that property, the business

3-35  association shall be deemed to be the holder.

3-36    2.  Any dividend, profit, interest or other distributions held for or owing

3-37  to a person at the time the stock or other property to which they attach are

3-38  presumed to be abandoned shall be deemed to be abandoned at the same

3-39  time as the stock or other property.

3-40    3.  This section does not apply to any stock or other intangible interest

3-41  enrolled in a plan that provides for the automatic reinvestment of

3-42  dividends, distributions, or other sums payable as a result of the interest

3-43  unless the records available to the administrator of the plan show, with

3-44  respect to any intangible interest not enrolled in the reinvestment plan, that

3-45  the owner has not within [5] 3 years communicated in any manner

3-46  described in subsection 1.

3-47    Sec. 4.  NRS 120A.210 is hereby amended to read as follows:

3-48    120A.210  All intangible personal property and any income or

3-49  increment thereon held in a fiduciary capacity for the benefit of another


4-1  person is presumed abandoned unless the owner has, within [5] 3 years

4-2  after it becomes payable or distributable, increased or decreased the

4-3  principal, accepted payment of principal or income, corresponded in

4-4  writing concerning the property or otherwise indicated an interest as

4-5  evidenced by a memorandum on file with the fiduciary:

4-6    1.  If the property is held by a banking organization or a financial

4-7  organization or by a business association organized under the laws of or

4-8  created in this state;

4-9    2.  If it is held by a business association doing business in this state but

4-10  not organized under the laws of or created in this state and the records of

4-11  the business association indicate that the last known address of the person

4-12  entitled thereto is in this state; or

4-13    3.  If it is held in this state by any other person.

4-14    Sec. 5.  NRS 120A.220 is hereby amended to read as follows:

4-15    120A.220  All intangible personal property held for the owner by any

4-16  court, public corporation, public authority or public officer, an appointee

4-17  thereof, a federal or state governmental entity or a political subdivision

4-18  thereof, that has remained unclaimed by the owner for more than [5] 3

4-19  years after it became payable or distributable is presumed abandoned and

4-20  subject to the provisions of this chapter if:

4-21    1.  The last known address or residence of the owner of the property is

4-22  in this state; or

4-23    2.  The property is otherwise abandoned in this state.

4-24  This section does not apply to refunds held by the public utilities

4-25  commission of Nevada pursuant to NRS 703.375.

4-26    Sec. 6.  NRS 120A.230 is hereby amended to read as follows:

4-27    120A.230  All intangible personal property not otherwise covered by

4-28  this chapter, including any income or increment thereon and deducting any

4-29  lawful charges, that is held or owing in this state in the ordinary course of

4-30  the holder’s business and has remained unclaimed by the owner for more

4-31  than [5] 3 years after it became payable or distributable is presumed

4-32  abandoned.

4-33    Sec. 7.  NRS 120A.270 is hereby amended to read as follows:

4-34    120A.270  Any banking or financial organization or business

4-35  association which holds property for another, if it does not hold property

4-36  presumed to be abandoned, shall file a report with the administrator, on or

4-37  before November 1 of each [5] 3-year period after November 1, [1984,]

4-38  1999, which indicates that it is not a holder of any property presumed to be

4-39  abandoned during that period. The reports of an insurance company under

4-40  this section must be filed before May 1 of each year for the preceding

4-41  calendar years.

4-42    Sec. 8.  NRS 32.020 is hereby amended to read as follows:

4-43    32.020  1.  In any receivership proceeding instituted in which a

4-44  dividend has been declared and ordered paid to creditors, any dividend

4-45  which remains unclaimed for [5] 3 years reverts to the general fund of the

4-46  estate and must be applied as follows:

4-47    (a) To the payment of costs and expenses of the administration of the

4-48  estate and receivership.


5-1    (b) To a new dividend distributed to creditors whose claims have been

5-2  allowed but not paid in full. After those claims have been paid in full the

5-3  balance is presumed abandoned under NRS 120A.210.

5-4    2.  This section applies to any receivership proceeding which may be

5-5  brought, and includes any bank, banking corporation, corporation,

5-6  copartnership, company, association or natural person.

5-7    Sec. 9.  NRS 381.009 is hereby amended to read as follows:

5-8    381.009  1.  Any property held by an institution of the division for

5-9  [10] 3 years or more, to which no person has made claim, shall be deemed

5-10  to be abandoned and becomes the property of the institution if the

5-11  institution complies with the provisions of subsection 2.

5-12    2.  The institution shall cause to be published in at least one newspaper

5-13  of general circulation in the county in which the institution is located at

5-14  least once a week for 2 consecutive weeks a notice and listing of the

5-15  property. The notice must contain:

5-16    (a) The name and last known address, if any, of the last known owner of

5-17  the property;

5-18    (b) A description of the property; and

5-19    (c) A statement that if proof of a claim is not presented by the owner to

5-20  the institution and if the owner’s right to receive the property is not

5-21  established to the institution’s satisfaction within 60 days after the date of

5-22  the second published notice, the property will be considered abandoned

5-23  and become the property of the institution.

5-24    3.  If no claim has been made to the property within 60 days after the

5-25  date of the second published notice, title, including literary rights, to the

5-26  property vests in the institution, free from all claims of the owner and of all

5-27  persons claiming through or under him.

5-28    Sec. 10.  NRS 463.635 is hereby amended to read as follows:

5-29    463.635  1.  If a corporation, partnership, limited partnership, limited-

5-30  liability company or other business organization applying for or holding a

5-31  state gaming license is or becomes owned in whole or in part or controlled

5-32  by a publicly traded corporation, or if a publicly traded corporation applies

5-33  for or holds a state gaming license, the publicly traded corporation shall:

5-34    (a) Maintain a ledger in the principal office of its subsidiary which is

5-35  licensed to conduct gaming in this state, which must:

5-36      (1) Reflect the ownership of record of each outstanding share of any

5-37  class of equity security issued by the publicly traded corporation. The

5-38  ledger may initially consist of a copy of its latest list of equity security

5-39  holders and thereafter be maintained by adding a copy of such material as

5-40  it regularly receives from the transfer agent for its equity securities of any

5-41  class which are outstanding.

5-42      (2) Be available for inspection by the board and the commission and

5-43  their authorized agents at all reasonable times without notice.

5-44    (b) Register with the commission and provide the following information

5-45  to the board:

5-46      (1) The organization, financial structure and nature of the business of

5-47  the publicly traded corporation, including the names of all officers,

5-48  directors and any employees actively and directly engaged in the

5-49  administration or supervision of the activities of the gaming licensee, and


6-1  the names, addresses and number of shares held of record by holders of its

6-2  equity securities.

6-3       (2) The rights and privileges accorded the holders of different classes

6-4  of its authorized equity securities.

6-5       (3) The terms on which its equity securities are to be, and during the

6-6  preceding 3 years have been, offered by the corporation to the public or

6-7  otherwise initially issued by it.

6-8       (4) The terms and conditions of all its outstanding loans, mortgages,

6-9  trust deeds, pledges or any other indebtedness or security device, directly

6-10  relating to the gaming activities of the gaming licensee.

6-11      (5) The extent of the equity security holdings of record in the publicly

6-12  traded corporation of all officers, directors, underwriters and persons

6-13  owning of record equity securities of any class of the publicly traded

6-14  corporation, and any payment received by any such person from the

6-15  publicly traded corporation for each of its 3 preceding fiscal years for any

6-16  reason [whatsoever.] whatever.

6-17      (6) Remuneration exceeding $40,000 per annum to persons other than

6-18  directors and officers who are actively and directly engaged in the

6-19  administration or supervision of the gaming activities of the gaming

6-20  licensee.

6-21      (7) Bonus and profit-sharing arrangements of the publicly traded

6-22  corporation directly or indirectly relating to the gaming activities of the

6-23  gaming licensee.

6-24      (8) Management and service contracts of the publicly traded

6-25  corporation directly or indirectly relating to the gaming activities of the

6-26  gaming licensee.

6-27      (9) Options existing or from time to time created in respect of its

6-28  equity securities.

6-29      (10) Balance sheets, certified by independent public accountants, for

6-30  at least the 3 preceding fiscal years, or if the publicly traded corporation

6-31  has not been incorporated for a period of 3 years, balance sheets from the

6-32  time of its incorporation. These balance sheets may be those filed by it with

6-33  or furnished by it to the Securities and Exchange Commission.

6-34      (11) Profit and loss statements, certified by independent certified

6-35  public accountants, for at least the 3 preceding fiscal years, or, if the

6-36  publicly traded corporation has not been incorporated for a period of 3

6-37  years, profit and loss statements from the time of its incorporation. These

6-38  profit and loss statements may be those filed by it with or furnished by it to

6-39  the Securities and Exchange Commission.

6-40      (12) Any further information within the knowledge or control of the

6-41  publicly traded corporation which either the board or the commission may

6-42  deem necessary or appropriate for the protection of this state, or licensed

6-43  gambling, or both. The board or the commission may make such

6-44  investigation of the publicly traded corporation or any of its officers,

6-45  directors, security holders or other persons associated therewith as it deems

6-46  necessary.

6-47    (c) Apply for an order of registration from the commission which must

6-48  set forth a description of the publicly traded corporation’s affiliated

6-49  companies and intermediary companies, and the various gaming licenses


7-1  and approvals obtained by those entities. The commission may issue an

7-2  order of registration upon receipt of a proper application. If the information

7-3  set forth in an order of registration changes, the publicly traded corporation

7-4  shall apply for and the commission may issue amendments to and revisions

7-5  of the order of registration to reflect the changes.

7-6    (d) If the publicly traded corporation is a foreign corporation, qualify to

7-7  do business in this state.

7-8    2.  If the board determines that a publicly traded corporation registered

7-9  with the commission, or any of its affiliates or intermediary companies,

7-10  have ceased engaging in gaming activities in Nevada, the board may, upon

7-11  its own motion, recommend that the commission deregister the publicly

7-12  traded corporation. Before making such a recommendation for

7-13  deregistration, the board shall provide at least 30 days’ notice to the

7-14  publicly traded corporation that it intends to move for deregistration. If the

7-15  board is unable to confirm that notice has been received by the publicly

7-16  traded corporation, the board shall provide notice to the last known address

7-17  of the registered agent of the publicly traded corporation. If the

7-18  commission issues an order deregistering the publicly traded corporation, a

7-19  copy of the order must be provided to the publicly traded corporation

7-20  together with a notice that the publicly traded corporation must apply,

7-21  within [5] 3 years after the date of the order of deregistration, to the

7-22  commission for a refund of any money of the publicly traded corporation

7-23  held by the board. If the commission is unable to confirm that the publicly

7-24  traded corporation has received the order, the commission shall provide the

7-25  order to the last known address of the registered agent of the publicly

7-26  traded corporation. The publicly traded corporation must apply to the board

7-27  for a refund of any investigative or other money of the publicly traded

7-28  corporation held by the board within [5] 3 years after the date of

7-29  deregistration. The money of the publicly traded corporation for which a

7-30  refund is not requested within [5] 3 years after the date of deregistration is

7-31  presumed abandoned and is subject to the provisions of chapter 120A of

7-32  NRS.

7-33    3.  The commission may adopt regulations that generally or selectively

7-34  impose on any publicly traded corporation any requirement not

7-35  inconsistent with law which it may deem necessary in the public interest.

7-36  Without limiting the generality of the preceding sentence, any such

7-37  requirement may deal with the same subject matter as, but be more

7-38  stringent than, the requirements imposed by NRS 463.482 to 463.645,

7-39  inclusive.

7-40    Sec. 11.  NRS 607.170 is hereby amended to read as follows:

7-41    607.170  1.  When the labor commissioner deems it necessary, he may

7-42  take an assignment of a claim for wages and commissions and prosecute an

7-43  action for collection of wages, commissions and other demands of any

7-44  person who is financially unable to employ counsel in a case in which, in

7-45  the judgment of the labor commissioner, the claim for wages or

7-46  commissions is valid and enforceable in the courts.

7-47    2.  In all matters relating to wages or commissions and before taking

7-48  any assignment, the labor commissioner may summon to appear before

7-49  him, at a suitable place in the county of the claimant, his employer and all


8-1  other necessary persons for the purpose of adjusting and settling claims for

8-2  wages or commissions before bringing suit therefor, and the labor

8-3  commissioner may effect reasonable compromises of those claims.

8-4    3.  The labor commissioner or his deputy may maintain a commercial

8-5  account with any bank or credit union within this state for the deposit of

8-6  money collected for claims for wages or commissions. The money must be

8-7  promptly paid to the person entitled thereto. At the end of each calendar

8-8  year, any unclaimed money in the commercial account which has been a

8-9  part of the account for [5] 3 years or more is presumed abandoned under

8-10  NRS 120A.220.

8-11    Sec. 12.  NRS 663.085 is hereby amended to read as follows:

8-12    663.085  1.  If the rental due on a safe-deposit box has not been paid

8-13  for 90 days, the lessor may send a notice by registered or certified mail to

8-14  the last known address of the lessee stating that the safe-deposit box will be

8-15  opened and its contents stored at the expense of the lessee unless payment

8-16  of the rental is made within 30 days. If the rental is not paid within 30 days

8-17  from the mailing of the notice, the box may be opened in the presence of

8-18  any officer of the lessor and a notary public. The contents must be sealed in

8-19  a package by the notary public, who shall write on the outside the name of

8-20  the lessee and the date of the opening in the presence of the officer. The

8-21  notary public and the officer shall execute a certificate reciting the name of

8-22  the lessee, the date of the opening of the box and a list of its contents. The

8-23  certificate must be included in the package and a copy of the certificate

8-24  must be sent by registered or certified mail to the last known address of the

8-25  lessee. If the contents of the safe-deposit box have been unclaimed by the

8-26  owner for [5] 3 years or less, the package must then be placed in the

8-27  general vaults of the lessor at a rental not exceeding the rental previously

8-28  charged for the box, until such time that the contents will have been

8-29  unclaimed by the owner for more than [5] 3 years, at which time the lessor

8-30  shall deliver the package to the division of unclaimed property of the

8-31  department of business and industry pursuant to the provisions of chapter

8-32  120A of NRS.

8-33    2.  If the contents of a safe-deposit box that has been opened pursuant

8-34  to subsection 1 have been unclaimed by the owner for more than [5] 3

8-35  years, the lessor shall deliver the package to the division of unclaimed

8-36  property of the department of business and industry pursuant to the

8-37  provisions of chapter 120A of NRS.

8-38    Sec. 13.  NRS 673.373 is hereby amended to read as follows:

8-39    673.373  1.  If the rental due on a safe-deposit box has not been paid

8-40  for 90 days, the lessor may send a notice by registered or certified mail to

8-41  the last known address of the lessee stating that the safe-deposit box will be

8-42  opened and its contents stored at the expense of the lessee unless payment

8-43  of the rental is made within 30 days. If the rental is not paid within 30 days

8-44  from the mailing of the notice, the box may be opened in the presence of

8-45  any officer of the lessor and a notary public. The contents must be sealed in

8-46  a package by the notary public, who shall write on the outside the name of

8-47  the lessee and the date of the opening in the presence of the officer. The

8-48  notary public and the officer shall execute a certificate reciting the name of

8-49  the lessee, the date of the opening of the box and a list of its contents. The


9-1  certificate must be included in the package and a copy of the certificate

9-2  must be sent by registered or certified mail to the last known address of the

9-3  lessee. If the contents of the safe-deposit box have been unclaimed by the

9-4  owner for [5] 3 years or less, the package must then be placed in the

9-5  general vaults of the lessor at a rental not exceeding the rental previously

9-6  charged for the box, until such time that the contents will have been

9-7  unclaimed by the owner for more than [5] 3 years, at which time the lessor

9-8  shall deliver the package to the division of unclaimed property of the

9-9  department of business and industry pursuant to the provisions of chapter

9-10  120A of NRS.

9-11    2.  If the contents of a safe-deposit box that has been opened pursuant

9-12  to subsection 1 have been unclaimed by the owner for more than [5] 3

9-13  years, the lessor shall deliver the package to the division of unclaimed

9-14  property of the department of business and industry pursuant to the

9-15  provisions of chapter 120A of NRS.

9-16    Sec. 14.  For purposes of sections 1 to 13, inclusive, of this act:

9-17    1.  Except as otherwise provided in subsection 2, property that has been

9-18  abandoned for the period established pursuant to the amendatory

9-19  provisions of this act as of the effective date of this act shall be deemed to

9-20  be abandoned property for purposes of chapter 120A of NRS.

9-21    2.  Any notice required by a specific statute must be given before

9-22  property may be deemed abandoned pursuant to subsection 1.

9-23    Sec. 15.  1.  Notwithstanding the provisions of NRS 120A.450,

9-24  interest may not be imposed upon any abandoned property paid or

9-25  delivered to the division before July 1, 2002, if:

9-26    (a) On July 1, 2001, with regard to the abandoned property, the holder

9-27  of the abandoned property is not:

9-28      (1) The subject of an investigation or prosecution;

9-29      (2) The subject of an audit; or

9-30      (3) A party to litigation pursuant to NRS 120A.430;

9-31    (b) The abandoned property was required to be reported before July 1,

9-32  2001, pursuant to NRS 120A.250 or 120A.270;

9-33    (c) The abandoned property is paid or delivered directly to the division

9-34  or its authorized agent, together with a report that includes:

9-35      (1) Except with respect to traveler’s checks and money orders, the

9-36  name, if known, and last known address, if any, of each person appearing

9-37  from the records of the holder to be the owner of any property of the value

9-38  of $50 or more presumed abandoned pursuant to this chapter;

9-39      (2) In case of unclaimed money held by an insurance company, the

9-40  full name of the insured or annuitant and his last known address according

9-41  to the records of the corporation;

9-42      (3) The nature and identifying number, if any, or description of the

9-43  property and the amount appearing from the records to be due, except that

9-44  items of value under $50 each may be reported in the aggregate;

9-45      (4) The date when the property became payable, demandable or

9-46  returnable and the date of the last transaction with the owner with respect

9-47  to the property; and

9-48      (5) Any other information that the administrator prescribes by

9-49  regulation as necessary for the administration of this section;


10-1    (d) Abandoned property that includes securities is remitted as set forth

10-2  in NRS 120A.320; and

10-3    (e) The records of the holder are maintained in a manner, satisfactory to

10-4  the administrator, that permits verification of compliance with this section.

10-5    2.  All abandoned property reported on or after July 1, 2001, must be

10-6  reported separately from abandoned property reported before July 1, 2001,

10-7  and may not be reported with abandoned property that is not eligible for

10-8  exemption from NRS 120A.450 pursuant to this section.

10-9    3.  The administrator shall:

10-10  (a) Provide information to the public concerning the provisions of this

10-11  section; and

10-12  (b) Submit a report to the legislature on or before January 15, 2003, that

10-13  includes a full accounting of all abandoned property surrendered pursuant

10-14  to this section, the date abandoned property was surrendered and the

10-15  identities of the holders of the surrendered property.

10-16  4.  This section does not:

10-17  (a) Create an entitlement to a refund of interest or penalties paid to the

10-18  division before July 1, 2001, pursuant to NRS 120A.450;

10-19  (b) Prohibit civil liability for false claims pursuant to NRS 357.040;

10-20  (c) Prevent prosecution of a person who violates NRS 120A.440; or

10-21  (d) Provide for the granting of an extension for filing a report required

10-22  by NRS 120A.250.

10-23  5.  As used in this section:

10-24  (a) “Audit” includes, without limitation, an audit or examination of

10-25  records of a holder conducted by the administrator or commissioner of

10-26  financial institutions pursuant to NRS 120A.420 or any other law

10-27  authorizing an audit or examination of the records of a holder.

10-28  (b) “Investigation or prosecution” includes, without limitation:

10-29     (1) Any investigation conducted by the attorney general pursuant to

10-30  NRS 357.070 or any other law authorizing investigation; or

10-31     (2) Any prosecution conducted by the attorney general or a district

10-32  attorney pursuant to NRS 120A.440 or any other law authorizing

10-33  prosecution,

10-34  of a holder for a violation of chapter 120A of NRS.

10-35  Sec. 16.  This act becomes effective upon passage and approval.

 

10-36  H