Senate Bill No. 34–Committee on Judiciary

 

CHAPTER..........

 

AN ACT relating to civil practice; revising the provisions relating to the appointment of temporary guardians; expanding the methods of investing the proceeds of a compromise from a legal dispute for a minor; 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 159 of NRS is hereby amended by adding thereto

1-2   the provisions set forth as sections 2 and 3 of this act.

1-3    Sec. 2.  1.  A petitioner may request the court to appoint a

1-4   temporary guardian for a ward who is an adult and who is unable to

1-5   respond to a substantial and immediate risk of physical harm or to a

1-6   need for immediate medical attention. To support the request, the

1-7   petitioner must set forth in a petition and present to the court under

1-8   oath:

1-9    (a) Facts which show that the proposed ward:

1-10      (1) Faces a substantial and immediate risk of physical harm or

1-11   needs immediate medical attention; and

1-12      (2) Lacks capacity to respond to the risk of harm or to obtain the

1-13   necessary medical attention; and

1-14    (b) Facts which show that:

1-15      (1) The petitioner has tried in good faith to notify the persons

1-16   entitled to notice pursuant to NRS 159.047;

1-17      (2) The proposed ward would be exposed to an immediate risk of

1-18   physical harm if the petitioner were to provide notice to the persons

1-19   entitled to notice pursuant to NRS 159.047 before the court determines

1-20   whether to appoint a temporary guardian; or

1-21      (3) Giving notice to the persons entitled to notice pursuant to NRS

1-22   159.047 is not feasible under the circumstances.

1-23    2.  The court may appoint a temporary guardian to serve for 10 days

1-24   if the court:

1-25    (a) Finds reasonable cause to believe that the proposed ward is unable

1-26   to respond to a substantial and immediate risk of physical harm or to a

1-27   need for immediate medical attention;

1-28    (b) Is satisfied that the petitioner has tried in good faith to notify the

1-29   persons entitled to notice pursuant to NRS 159.047 or that giving notice

1-30   to those persons is not feasible under the circumstances, or determines

1-31   that such notice is not required pursuant to subparagraph (2) of

1-32   paragraph (b) of subsection 1; and

1-33    (c) Finds that the petition required pursuant to subsection 1 is

1-34   accompanied by:

1-35      (1) A certificate signed by a physician who is licensed to practice in

1-36   this state which states that the proposed ward is unable to respond to a

1-37   substantial and immediate risk of physical harm or to a need for

1-38   immediate medical attention; or

1-39      (2) The affidavit of the petitioner which explains the reasons why

1-40   the certificate described in subparagraph (1) is not immediately

1-41   obtainable.


2-1    3.  Except as otherwise provided in subsection 4, after the

2-2  appointment of a temporary guardian, the petitioner shall attempt in

2-3   good faith to notify the persons entitled to notice pursuant to NRS

2-4   159.047. If the petitioner fails to make such an effort, the court may

2-5   terminate the temporary guardianship.

2-6    4.  If, before the appointment of a temporary guardian, the court

2-7   determined that advance notice was not required pursuant to

2-8   subparagraph (2) of paragraph (b) of subsection 1, the petitioner shall

2-9   notify the persons entitled to notice pursuant to NRS 159.047 without

2-10   undue delay, but not later than 48 hours after the appointment of the

2-11   temporary guardian or not later than 48 hours after he discovers the

2-12   existence, identity and location of the persons entitled to notice pursuant

2-13   to that section. If the petitioner fails to provide such notice, the court

2-14   may terminate the temporary guardianship.

2-15    5.  Within 10 days after the appointment of a temporary guardian

2-16   pursuant to subsection 2, the court shall hold a hearing to determine the

2-17   need to extend the temporary guardianship. Except as otherwise

2-18   provided in subsection 7, the court may extend the temporary

2-19   guardianship until a general or special guardian is appointed, but not

2-20   for more than 30 days, if:

2-21    (a) The certificate required by subsection 2 has been filed and the

2-22   court finds by clear and convincing evidence that the proposed ward is

2-23   unable to respond to a substantial and immediate risk of physical harm

2-24   or to a need for immediate medical attention; or

2-25    (b) The certificate required by subsection 2 has not been filed and the

2-26   court finds by clear and convincing evidence that:

2-27      (1) The proposed ward is unable to respond to a substantial and

2-28   immediate risk of physical harm or to a need for immediate medical

2-29   attention;

2-30      (2) Circumstances have prevented the petitioner or temporary

2-31   guardian from obtaining the certificate required pursuant to subsection

2-32   2; and

2-33      (3) The extension of the temporary guardianship is necessary and

2-34   in the best interests of the proposed ward.

2-35    6.  If the court appoints a temporary guardian or extends the

2-36   temporary guardianship pursuant to this section, the court shall limit the

2-37   powers of the temporary guardian to those necessary to respond to the

2-38   substantial and immediate risk of physical harm or to a need for

2-39   immediate medical attention.

2-40    7.  The court may not extend a temporary guardianship pursuant to

2-41   subsection 5 beyond the initial period of 10 days unless the petitioner

2-42   demonstrates that:

2-43    (a) The provisions of NRS 159.0475 have been satisfied; or

2-44    (b) Notice by publication pursuant to N.R.C.P. 4(e) is currently being

2-45   undertaken.

2-46    Sec. 3.  1.  A petitioner may request the court to appoint a

2-47   temporary guardian for a ward who is unable to respond to a substantial

2-48   and immediate risk of financial loss. To support the request, the

2-49   petitioner must set forth in a petition and present to the court under

2-50   oath:

2-51    (a) Facts which show that the proposed ward:


3-1       (1) Faces a substantial and immediate risk of financial loss; and

3-2       (2) Lacks capacity to respond to the risk of loss; and

3-3    (b) Facts which show that:

3-4       (1) The petitioner has tried in good faith to notify the persons

3-5   entitled to notice pursuant to NRS 159.047;

3-6       (2) The proposed ward would be exposed to an immediate risk of

3-7   financial loss if the petitioner were to provide notice to the persons

3-8   entitled to notice pursuant to NRS 159.047 before the court determines

3-9   whether to appoint a temporary guardian; or

3-10      (3) Giving notice to the persons entitled to notice pursuant to NRS

3-11   159.047 is not feasible under the circumstances.

3-12    2.  The court may appoint a temporary guardian to serve for 10 days

3-13   if the court:

3-14    (a) Finds reasonable cause to believe that the proposed ward is unable

3-15   to respond to a substantial and immediate risk of financial loss;

3-16    (b) Is satisfied that the petitioner has tried in good faith to notify the

3-17   persons entitled to notice pursuant to NRS 159.047 or that giving notice

3-18   to those persons is not feasible under the circumstances, or determines

3-19   that such notice is not required pursuant to subparagraph (2) of

3-20   paragraph (b) of subsection 1; and

3-21    (c) For a proposed ward who is an adult, finds that the petition

3-22   required pursuant to subsection 1 is accompanied by:

3-23      (1) A certificate signed by a physician who is licensed to practice in

3-24   this state which states that the proposed ward is unable to respond to a

3-25   substantial and immediate risk of financial loss; or

3-26      (2) The affidavit of the petitioner which explains the reasons why

3-27   the certificate described in subparagraph (1) is not immediately

3-28   obtainable.

3-29    3.  Except as otherwise provided in subsection 4, after the

3-30   appointment of a temporary guardian, the petitioner shall attempt in

3-31   good faith to notify the persons entitled to notice pursuant to NRS

3-32   159.047. If the petitioner fails to make such an effort, the court may

3-33   terminate the temporary guardianship.

3-34    4.  If, before the appointment of a temporary guardian, the court

3-35   determined that advance notice was not required pursuant to

3-36   subparagraph (2) of paragraph (b) of subsection 1, the petitioner shall

3-37   notify the persons entitled to notice pursuant to NRS 159.047 without

3-38   undue delay, but not later than 48 hours after the appointment of the

3-39   temporary guardian or not later than 48 hours after he discovers the

3-40   existence, identity and location of the persons entitled to notice pursuant

3-41   to that section. If the petitioner fails to provide such notice, the court

3-42   may terminate the temporary guardianship.

3-43    5.  Within 10 days after the appointment of a temporary guardian

3-44   pursuant to subsection 2, the court shall hold a hearing to determine the

3-45   need to extend the temporary guardianship. Except as otherwise

3-46   provided in subsection 7, if the proposed ward is a minor and the court

3-47   finds by clear and convincing evidence that the proposed ward is unable

3-48   to respond to a substantial and immediate risk of financial loss, the

3-49   court may extend the temporary guardianship until a general or special

3-50   guardian is appointed, but not for more than 30 days. Except as


4-1  otherwise provided in subsection 7, if the proposed ward is an adult, the

4-2  court may extend the temporary guardianship until a general or special

4-3   guardian is appointed, but not for more than 30 days, if:

4-4    (a) The certificate required by subsection 2 has been filed and the

4-5   court finds by clear and convincing evidence that the proposed ward is

4-6   unable to respond to a substantial and immediate risk of financial loss;

4-7   or

4-8    (b) The certificate required by subsection 2 has not been filed and the

4-9   court finds by clear and convincing evidence that:

4-10      (1) The proposed ward is unable to respond to a substantial and

4-11   immediate risk of financial loss;

4-12      (2) Circumstances have prevented the petitioner or temporary

4-13   guardian from obtaining the certificate required pursuant to subsection

4-14   2; and

4-15      (3) The extension of the temporary guardianship is necessary and

4-16   in the best interests of the proposed ward.

4-17    6.  If the court appoints a temporary guardian or extends the

4-18   temporary guardianship pursuant to this section, the court shall limit the

4-19   powers of the temporary guardian to those necessary to respond to the

4-20   substantial and immediate risk of financial loss.

4-21    7.  The court may not extend a temporary guardianship pursuant to

4-22   subsection 5 beyond the initial period of 10 days unless the petitioner

4-23   demonstrates that:

4-24    (a) The provisions of NRS 159.0475 have been satisfied; or

4-25    (b) Notice by publication pursuant to N.R.C.P. 4(e) is currently being

4-26   undertaken.

4-27    Sec. 4.  NRS 159.047 is hereby amended to read as follows:

4-28    159.047  1.  Except as otherwise provided in NRS 159.0475, 159.049

4-29   and 159.052, and sections 2 and 3 of this act, the court, upon the filing of

4-30   a petition under NRS 159.044, shall direct the clerk to issue a citation

4-31   setting forth a time and place for the hearing and directing the persons or

4-32   institutions referred to in subsection 2 to appear and show cause why a

4-33   guardian should not be appointed for the proposed ward.

4-34    2.  A citation issued under subsection 1 must be served:

4-35    (a) If the proposed ward is an incompetent or a person of limited

4-36   capacity:

4-37      (1) Upon the spouse and adult children of the incompetent or person

4-38   of limited capacity who are known to exist, or, if there are none, upon any

4-39   parent, brother or sister of the incompetent or person of limited capacity;

4-40      (2) Upon any person or officer of an institution having the care,

4-41   custody or control of the incompetent or person of limited capacity; and

4-42      (3) Upon the incompetent or person of limited capacity.

4-43    (b) If the proposed ward is a minor:

4-44      (1) Upon the parents of the minor;

4-45      (2) Upon any person or officer of an institution having care, custody

4-46   or control of the minor; and

4-47      (3) If the minor is 14 years of age or older, upon the minor.

4-48    Sec. 5.  NRS 159.052 is hereby amended to read as follows:

4-49    159.052  1.  A petitioner may request the court to appoint a temporary

4-50   guardian [.] for a ward who is a minor and who is unable to respond to a


5-1  substantial and immediate risk of physical harm or to a need for

5-2  immediate medical attention. To support the request, the petitioner must

5-3   set forth in a petition and present to the court under oath:

5-4    (a) Facts which show that the proposed ward:

5-5       (1) Faces a substantial and immediate risk of [financial loss or]

5-6   physical harm or needs immediate medical attention; and

5-7       (2) Lacks capacity to respond to the risk of [loss or] harm or to obtain

5-8   the necessary medical attention; and

5-9    (b) Facts which show that:

5-10      (1) The petitioner has tried in good faith to notify the persons entitled

5-11   to notice pursuant to NRS 159.047;

5-12      (2) The proposed ward would be exposed to an immediate risk of

5-13   [financial loss or] physical harm if the petitioner were to provide notice to

5-14   the persons entitled to notice pursuant to NRS 159.047 before the court

5-15   determines whether to appoint a temporary guardian; or

5-16      (3) Giving notice to the persons entitled to notice pursuant to NRS

5-17   159.047 is not feasible under the circumstances.

5-18    2.  [If] The court may appoint a temporary guardian to serve for 10

5-19   days if the court:

5-20    (a) Finds reasonable cause to believe that the proposed ward is unable to

5-21   respond to a substantial and immediate risk of [financial loss or] physical

5-22   harm or to a need for immediate medical attention; and

5-23    (b) Is satisfied that the petitioner has tried in good faith to notify the

5-24   persons entitled to notice pursuant to NRS 159.047 or that giving notice to

5-25   those persons is not feasible under the circumstances, or determines that

5-26   such notice is not required pursuant to subparagraph (2) of paragraph (b)

5-27   of subsection 1 . [. ,

5-28  the court may appoint a temporary guardian to serve for 10 days. The court

5-29   shall limit the temporary guardian’s powers to those necessary to assist in

5-30   the emergency.]

5-31    3.  Except as otherwise provided in subsection 4, after the appointment

5-32   of a temporary guardian, the petitioner shall attempt in good faith to notify

5-33   the persons entitled to notice pursuant to NRS 159.047. If the petitioner

5-34   fails to make such an effort, the court may terminate the temporary

5-35   guardianship.

5-36    4.  If, before the appointment of a temporary guardian, the court

5-37   determined that advance notice was not required pursuant to subparagraph

5-38   (2) of paragraph (b) of subsection 1, the petitioner shall notify the persons

5-39   entitled to notice pursuant to NRS 159.047 without undue delay, but not

5-40   later than 48 hours after the appointment of the temporary guardian or not

5-41   later than 48 hours after he discovers the existence, identity and location of

5-42   the persons entitled to notice pursuant to that section. If the petitioner fails

5-43   to provide such notice, the court may terminate the temporary

5-44   guardianship.

5-45    5.  Within 10 days after the appointment of a temporary guardian

5-46   pursuant to subsection 2, the court shall hold a hearing to determine the

5-47   need to extend the temporary guardianship. Except as otherwise provided

5-48   in subsection [6,] 7, if the court finds by clear and convincing evidence

5-49   that the proposed ward is unable to respond to a substantial and immediate

5-50   risk of [financial loss or] physical harm or to a need for immediate medical


6-1  attention, the court may extend the temporary guardianship until a general

6-2  or special guardian is appointed, but not for more than 30 days. [The]

6-3    6.  If the court appoints a temporary guardian or extends the

6-4   temporary guardianship pursuant to this section, the court shall limit the

6-5   [temporary guardian’s] powers of the temporary guardian to those

6-6   necessary to [assist in the emergency.

6-7    6.] respond to the substantial and immediate risk of physical harm or

6-8   to a need for immediate medical attention.

6-9    7.  The court may not extend a temporary guardianship pursuant to

6-10   subsection 5 beyond the initial period of 10 days unless the petitioner

6-11   demonstrates that:

6-12    (a) The provisions of NRS 159.0475 have been satisfied; or

6-13    (b) Notice by publication pursuant to N.R.C.P. 4(e) is currently being

6-14   undertaken.

6-15    Sec. 6. NRS 41.200 is hereby amended to read as follows:

6-16    41.200  1.  If an unemancipated minor has a disputed claim for money

6-17   against a third person, either parent, or if the parents of the minor are

6-18   living separate and apart, then the custodial parent, or if no custody award

6-19   has been made, the parent with whom the minor is living, or if a general

6-20   guardian or guardian of the estate of the minor has been appointed, then

6-21   that guardian, has the right to compromise the claim. Such a compromise

6-22   is not effective until it is approved by the district court of the county where

6-23   the minor resides, or if the minor is not a resident of the State of Nevada,

6-24   then by the district court of the county where the claim was incurred, upon

6-25   a verified petition in writing, regularly filed with the court.

6-26    2.  The petition must set forth:

6-27    (a) The name, age and residence of the minor;

6-28    (b) The facts which bring the minor within the purview of this section,

6-29   including:

6-30      (1) The circumstances which make it a disputed claim for money;

6-31      (2) The name of the third person against whom the claim is made;

6-32   and

6-33      (3) If the claim is the result of an accident, the date, place and facts of

6-34   the accident;

6-35    (c) The names and residence of the parents or the legal guardian of the

6-36   minor;

6-37    (d) The name and residence of the person or persons having physical

6-38   custody or control of the minor;

6-39    (e) The name and residence of the petitioner and the relationship of the

6-40   petitioner to the minor;

6-41    (f) The total amount of the proceeds of the proposed compromise and

6-42   the apportionment of those proceeds, including the amount to be used for:

6-43      (1) Attorney’s fees and whether the attorney’s fees are fixed or

6-44   contingent fees, and if the attorney’s fees are contingent fees the

6-45   percentage of the proceeds to be paid as attorney’s fees;

6-46      (2) Medical expenses; and

6-47      (3) Other expenses,

6-48  and whether these fees and expenses are to be deducted before or after the

6-49   calculation of any contingency fee;


7-1    (g) Whether the petitioner believes the acceptance of this compromise is

7-2  in the best interest of the minor; and

7-3    (h) That the petitioner has been advised and understands that acceptance

7-4   of the compromise will bar the minor from seeking further relief from the

7-5   third person offering the compromise.

7-6    3.  If the claim involves a personal injury suffered by the minor, the

7-7   petitioner must submit all relevant medical and health care records to the

7-8   court at the compromise hearing. The records must include documentation

7-9   of:

7-10    (a) The injury, prognosis, treatment and progress of recovery of the

7-11   minor; and

7-12    (b) The amount of medical expenses incurred to date, the nature and

7-13   amount of medical expenses which have been paid and by whom, any

7-14   amount owing for medical expenses and an estimate of the amount of

7-15   medical expenses which may be incurred in the future.

7-16    4.  If the court approves the compromise of the claim of the minor, the

7-17   court must direct the money to be paid to the father, mother or guardian of

7-18   the minor, with or without the filing of any bond, or it must require a

7-19   general guardian or guardian ad litem to be appointed and the money to be

7-20   paid to the guardian or guardian ad litem, with or without a bond, as the

7-21   court, in its discretion, deems to be in the best interests of the minor.

7-22    5.  Upon receiving the proceeds of the compromise, the parent or

7-23   guardian to whom the proceeds of the compromise are ordered to be paid,

7-24   shall establish a blocked [trust account] financial investment for the

7-25   benefit of the minor with the proceeds of the compromise. Money may be

7-26   obtained from the blocked financial investment only pursuant to

7-27   subsection 6. Within 30 days after receiving the proceeds of the

7-28   compromise, the parent or guardian shall file with the court proof that the

7-29   blocked [trust account] financial investment has been established. If the

7-30   balance [in the account] of the investment is more than $10,000, the

7-31   parent, [trustee or] guardian or person in charge of managing the

7-32   investment shall annually file with the court a verified report detailing the

7-33   activities of the [account] investment during the previous 12 months. If the

7-34   balance [in the account] of the investment is $10,000 or less, the court

7-35   may order the parent, [trustee or] guardian or person in charge of

7-36   managing the investment to file such periodic verified reports as the court

7-37   deems appropriate. The court may hold a hearing on a verified report only

7-38   if it deems a hearing necessary to receive an explanation of the activities

7-39   of the [account.] investment.Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

7-40    6.  The beneficiary of a block financial investment may obtain control

7-41   of or money from the investment:

7-42    (a) By an order of the court which held the compromise hearing; or

7-43    (b) By certification of the court which held the compromise hearing

7-44   that the beneficiary has reached the age of 18 years, at which time

7-45   control of the investment must be transferred to the beneficiary or the

7-46   investment must be closed and the money distributed to the beneficiary.

7-47    7.  The clerk of the district court shall not charge any fee for filing a

7-48   petition for leave to compromise or for placing the petition upon the

7-49   calendar to be heard by the court.


8-1    [7.] 8.  As used in this section, the term “blocked [trust account”

8-2  means an] financial investment” means a savings account established in a

8-3   depository institution in this state [for the benefit of the minor with

8-4   restrictions that the money cannot be withdrawn, except:

8-5    (a) By an order of the court which held the compromise hearing; or

8-6    (b) By certification of the court which held the compromise hearing that

8-7   the beneficiary has reached the age of 18 years, at which time the account

8-8   must be closed and the money distributed to the beneficiary.] , a

8-9   certificate of deposit, a United States savings bond, a fixed or variable

8-10   annuity contract, or another reliable investment that is approved by the

8-11   court.

 

8-12  20~~~~~01