2005 Nevada Revised Statutes - Chapter 599B — Solicitation by Telephone

CHAPTER 599B - SOLICITATION BY TELEPHONE

GENERAL PROVISIONS

NRS 599B.005 Legislativefindings and declarations.

NRS 599B.010 Definitions.

NRS 599B.015 Dutiesof Attorney General and Commissioner.

NRS 599B.025 Regulations;rules of practice.

NRS 599B.030 Remedies,duties and prohibitions not exclusive.

REGISTRATION

NRS 599B.080 Registrationrequired.

NRS 599B.090 Registrationof seller: Application; confidentiality of certain information; security; fee.

NRS 599B.100 Registrationof seller: Form and amount of security; release of security.

NRS 599B.105 Rightsand remedies of injured consumer; resolution by Division of claims againstsecurity; regulations.

NRS 599B.110 Registrationof seller: Disclosure of certain convictions, judgments and orders concerningresponsible persons.

NRS 599B.115 Registrationof seller: Work card required for applicant and certain other persons;exceptions; issuance and renewal of work card; fingerprints.

NRS 599B.120 Registrationof salesman: Application; statement of seller; fee. [Effective until the dateof the repeal of the federal law requiring each state to establish proceduresfor withholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

NRS 599B.120 Registrationof salesman: Application; statement of seller; fee. [Effective on the date ofthe repeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

NRS 599B.125 Statementregarding payment of child support by applicant for registration certificate; groundsfor denial of registration certificate; duty of Division. [Expires bylimitation on the date of the repeal of the federal law requiring each state toestablish procedures for withholding, suspending and restricting theprofessional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings.]

NRS 599B.130 Issuanceand display of registration certificate.

NRS 599B.140 Renewalof registration.

NRS 599B.143 Suspensionof registration certificate for failure to pay child support or comply withcertain subpoenas or warrants; reinstatement of registration certificate.[Expires by limitation on the date of the repeal of the federal law requiringeach state to establish procedures for withholding, suspending and restrictingthe professional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings.]

NRS 599B.145 Paymentand refund of fees for registration.

PRACTICE

NRS 599B.150 Associationof salesman with more than one seller prohibited; seller to cooperate ininvestigations.

NRS 599B.160 Submissionto Division of change in material or presentation used in solicitation.

NRS 599B.170 Requireddisclosures by salesman; restrictions on representations regarding premiums.

NRS 599B.180 Solicitationinvolving representation that consumer is or may be eligible to receive premium.

NRS 599B.185 Requireddisclosures when registrant solicits sale of investments.

NRS 599B.187 Requirementsfor use of chance promotion.

NRS 599B.190 Issuanceof refund or replacement of goods or services; notice to consumer.

NRS 599B.195 Deliveryof goods or services must be accompanied by form.

NRS 599B.197 Recoveryservice: Performance required before charging or receiving money from consumer.

NRS 599B.200 Disclosureof purchaser prohibited; exceptions.

ENFORCEMENT

NRS 599B.210 Appointmentof Secretary of State as agent for service of process; procedure for and effectof service; fee.

NRS 599B.213 Jurisdictionand authority of Attorney General.

NRS 599B.215 Actionby Attorney General.

NRS 599B.225 AttorneyGeneral may apply for equitable relief.

NRS 599B.235 AttorneyGeneral may accept assurance of discontinuance of violation; proof of violationof assurance is prima facie evidence of violation of applicable law in civilaction.

NRS 599B.245 AttorneyGeneral may institute legal proceeding against person believed to have violatedprovisions of this chapter; remedies; civil penalty for violation of courtorder or injunction.

NRS 599B.255 Willfulviolations: Prosecution; criminal penalties; forfeitures.

NRS 599B.260 Depositand use of money collected pursuant to this chapter.

SOLICITATION OF ELDERLY OR DISABLED PERSON

NRS 599B.270 Definitions.

NRS 599B.280 Additionalpenalty.

NRS 599B.290 Depositand use of money collected from civil penalties imposed in action brought bydistrict attorney.

NRS 599B.300 Civilaction.

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GENERAL PROVISIONS

NRS 599B.005 Legislativefindings and declarations.

1. The Legislature finds and declares that:

(a) The sale of goods or services or the solicitationof donations by telephone has a significant impact upon the economy and wellbeing of this state and its local communities.

(b) Many legitimate solicitors by telephone meritcertain protections pursuant to the laws of this state.

(c) Certain unscrupulous practices by personssoliciting donations or the sale of goods or services by telephone are contraryto good business practices and have caused consumers to suffer substantiallosses because of misrepresentation, the lack of complete information relatingto goods, services and the persons initiating or causing the solicitation bytelephone, and the lack of delivery of the goods and services purchased.

2. It is the intent of the Legislature to:

(a) Provide each consumer with information necessary tomake an intelligent decision relating to donations or offers of sale;

(b) Educate and assist the public to distinguishbetween honest and dishonest practices of solicitation by telephone;

(c) Safeguard the public against deceptive practicesand financial hardship;

(d) Prohibit representations that tend to bemisleading;

(e) Ensure, foster and encourage competition and fairdealings among sellers by requiring sellers to disclose certain informationadequately; and

(f) Protect the integrity of the industry relating tosolicitation by telephone.

3. As the provisions of this chapter are necessary toprotect the public welfare, it is also the intent of the Legislature that theprovisions of this chapter be liberally construed to effectuate its purposes.

(Added to NRS by 1993, 2095; A 1995, 931)

NRS 599B.010 Definitions. As used in this chapter, unless the context otherwiserequires:

1. Chance promotion means any plan in which premiumsare distributed by random or chance selection.

2. Commissioner means the Commissioner of ConsumerAffairs.

3. Consumer means a person who is solicited by aseller or salesman.

4. Division means the Consumer Affairs Division ofthe Department of Business and Industry.

5. Donation means a promise, grant or pledge ofmoney, credit, property, financial assistance or other thing of value given inresponse to a solicitation by telephone, including, but not limited to, apayment or promise to pay in consideration for a performance, event or sale ofgoods or services. The term does not include volunteer services, governmentgrants or contracts or a payment by members of any organization of membershipfees, dues, fines or assessments or for services rendered by the organizationto those persons, if:

(a) The fees, dues, fines, assessments or servicesconfer a bona fide right, privilege, professional standing, honor or otherdirect benefit upon the member; and

(b) Membership in the organization is not conferredsolely in consideration for making a donation in response to a solicitation.

6. Goods or services means any property, tangible orintangible, real, personal or mixed, and any other article, commodity or thingof value.

7. Premium includes any prize, bonus, award, gift orany other similar inducement or incentive to purchase.

8. Recovery service means a business or otherpractice whereby a person represents or implies that he will, for a fee,recover any amount of money that a consumer has provided to a seller orsalesman pursuant to a solicitation governed by the provisions of this chapter.

9. Salesman means any person:

(a) Employed or authorized by a seller to sell, or toattempt to sell, goods or services by telephone;

(b) Retained by a seller to provide consulting servicesrelating to the management or operation of the sellers business; or

(c) Who communicates on behalf of a seller with aconsumer:

(1) In the course of a solicitation bytelephone; or

(2) For the purpose of verifying, changing orconfirming an order,

except thata person is not a salesman if his only function is to identify a consumer byname only and he immediately refers the consumer to a salesman.

10. Except as otherwise provided in subsection 11,seller means any person who, on his own behalf, causes or attempts to cause asolicitation by telephone to be made through the use of one or more salesmen orany automated dialing announcing device under any of the followingcircumstances:

(a) The person initiates contact by telephone with aconsumer and represents or implies:

(1) That a consumer who buys one or more goodsor services will receive additional goods or services, whether or not of thesame type as purchased, without further cost, except for actual postage orcommon carrier charges;

(2) That a consumer will or has a chance oropportunity to receive a premium;

(3) That the items for sale are gold, silver orother precious metals, diamonds, rubies, sapphires or other precious stones, orany interest in oil, gas or mineral fields, wells or exploration sites or anyother investment opportunity;

(4) That the product offered for sale isinformation or opinions relating to sporting events;

(5) That the product offered for sale is theservices of a recovery service; or

(6) That the consumer will receive a premium orgoods or services if he makes a donation;

(b) The solicitation by telephone is made by the personin response to inquiries from a consumer generated by a notification orcommunication sent or delivered to the consumer that represents or implies:

(1) That the consumer has been in any mannerspecially selected to receive the notification or communication or the offercontained in the notification or communication;

(2) That the consumer will receive a premium ifthe recipient calls the person;

(3) That if the consumer buys one or more goodsor services from the person, the consumer will also receive additional or othergoods or services, whether or not the same type as purchased, without furthercost or at a cost that the person represents or implies is less than theregular price of the goods or services;

(4) That the product offered for sale is theservices of a recovery service; or

(5) That the consumer will receive a premium orgoods or services if he makes a donation; or

(c) The solicitation by telephone is made by the personin response to inquiries generated by advertisements that represent or implythat the person is offering to sell any:

(1) Gold, silver or other metals, includingcoins, diamonds, rubies, sapphires or other stones, coal or other minerals orany interest in oil, gas or other mineral fields, wells or exploration sites,or any other investment opportunity;

(2) Information or opinions relating to sportingevents; or

(3) Services of a recovery service.

11. Seller does not include:

(a) A person licensed pursuant to chapter 90 of NRS when soliciting offers, salesor purchases within the scope of his license.

(b) A person licensed pursuant to chapter 119A, 119B,624, 645 or 696A of NRS when soliciting sales within thescope of his license.

(c) A person licensed as an insurance broker, agent orsolicitor when soliciting sales within the scope of his license.

(d) Any solicitation of sales made by the publisher ofa newspaper or magazine or by an agent of the publisher pursuant to a writtenagreement between the agent and publisher.

(e) A broadcaster soliciting sales who is licensed byany state or federal authority, if the solicitation is within the scope of thebroadcasters license.

(f) A person who solicits a donation from a consumerwhen:

(1) The person represents or implies that theconsumer will receive a premium or goods or services with an aggregated fairmarket value of 2 percent of the donation or $50, whichever is less; or

(2) The consumer provides a donation of $50 orless in response to the solicitation.

(g) A charitable organization which is registered orapproved to conduct a lottery pursuant to chapter462 of NRS.

(h) A public utility or motor carrier which is regulatedpursuant to chapter 704 or 706 of NRS, or by an affiliate of such a utilityor motor carrier, if the solicitation is within the scope of its certificate orlicense.

(i) A utility which is regulated pursuant to chapter 710 of NRS, or by an affiliate of such autility.

(j) A person soliciting the sale of books, recordings,video cassettes, software for computer systems or similar items through:

(1) An organization whose method of sales isgoverned by the provisions of Part 425 of Title 16 of the Code of FederalRegulations relating to the use of negative option plans by sellers incommerce;

(2) The use of continuity plans, subscriptionarrangements, arrangements for standing orders, supplements, and seriesarrangements pursuant to which the person periodically ships merchandise to aconsumer who has consented in advance to receive the merchandise on a periodic basisand has the opportunity to review the merchandise for at least 10 days andreturn it for a full refund within 30 days after it is received; or

(3) An arrangement pursuant to which the personships merchandise to a consumer who has consented in advance to receive themerchandise and has the opportunity to review the merchandise for at least 10days and return it for a full refund within 30 days after it is received.

(k) A person who solicits sales by periodicallypublishing and delivering a catalog to consumers if the catalog:

(1) Contains a written description orillustration of each item offered for sale and the price of each item;

(2) Includes the business address of the person;

(3) Includes at least 24 pages of writtenmaterial and illustrations;

(4) Is distributed in more than one state; and

(5) Has an annual circulation by mailing of notless than 250,000.

(l) A person soliciting without the intent to completeand who does not complete, the sales transaction by telephone but completes thesales transaction at a later face-to-face meeting between the solicitor and theconsumer, if the person, after soliciting a sale by telephone, does not causeanother person to collect the payment from or deliver any goods or servicespurchased to the consumer.

(m) Any commercial bank, bank holding company,subsidiary or affiliate of a bank holding company, trust company, savings andloan association, credit union, industrial loan company, personal propertybroker, consumer finance lender, commercial finance lender, or insurer subjectto regulation by an official or agency of this state or of the United States,if the solicitation is within the scope of the certificate or license held bythe entity.

(n) A person holding a certificate of authority issuedpursuant to chapter 452 of NRS when solicitingsales within the scope of the certificate.

(o) A person licensed pursuant to chapter 689 of NRS when soliciting sales withinthe scope of his license.

(p) A person soliciting the sale of services providedby a community antenna television company subject to regulation pursuant to chapter 711 of NRS.

(q) A person soliciting the sale of agriculturalproducts, if the solicitation is not intended to and does not result in a saleof more than $100 that is to be delivered to one address. As used in thisparagraph, agricultural products has the meaning ascribed to it in NRS 587.290.

(r) A person who has been operating, for at least 2years, a retail business establishment under the same name as that used inconnection with the solicitation of sales by telephone if, on a continuingbasis:

(1) Goods are displayed and offered for sale orservices are offered for sale and provided at the persons businessestablishment; and

(2) At least 50 percent of the persons businessinvolves the buyer obtaining such goods or services at the persons businessestablishment.

(s) A person soliciting only the sale of telephoneanswering services to be provided by the person or his employer.

(t) A person soliciting a transaction regulated by theCommodity Futures Trading Commission, if:

(1) The person is registered with or temporarilylicensed by the Commission to conduct that activity pursuant to the CommodityExchange Act (7 U.S.C. 1 et seq.); and

(2) The registration or license has not expiredor been suspended or revoked.

(u) A person who contracts for the maintenance orrepair of goods previously purchased from the person:

(1) Making the solicitation; or

(2) On whose behalf the solicitation is made.

(v) A person to whom a license to operate aninformation service or a nonrestricted gaming license, which is current andvalid, has been issued pursuant to chapter 463of NRS when soliciting sales within the scope of his license.

(w) A person who solicits a previous customer of thebusiness on whose behalf the call is made if the person making the call:

(1) Does not offer the customer any premium inconnection with the sale;

(2) Is not selling an investment or anopportunity for an investment that is not registered with any state or federalauthority; and

(3) Is not regularly engaged in telephone sales.

(x) A person who solicits the sale of livestock.

(y) An issuer which has a class of securities that islisted on the New York Stock Exchange, the American Stock Exchange or theNational Market System of the National Association of Securities DealersAutomated Quotation System.

(z) A subsidiary of an issuer that qualifies forexemption pursuant to paragraph (y) if at least 60 percent of the voting powerof the shares of the subsidiary is owned by the issuer.

(Added to NRS by 1989, 1379; A 1991, 2039; 1993,1802, 2100; 1995, 579, 932; 1997, 1119, 3202, 3208)

NRS 599B.015 Dutiesof Attorney General and Commissioner.

1. The Attorney General shall provide opinions for theDivision on all questions of law relating to the construction, interpretationor administration of this chapter.

2. The Commissioner shall determine whether a personis required to register pursuant to the provisions of this chapter. In makingthat determination, the Commissioner shall consider the definitions, intent,findings and declarations set forth in this chapter.

(Added to NRS by 1993, 2096; A 1997, 2018; 2001, 361)

NRS 599B.025 Regulations;rules of practice.

1. The Attorney General may adopt regulationsestablishing standards of conduct for registrants and any other regulationsnecessary to exercise the powers and carry out the duties of the AttorneyGeneral as set forth in this chapter.

2. The Commissioner and the Attorney General shalljointly adopt rules of practice establishing a procedure for processingcomplaints received concerning sellers and salesmen, whether or not the sellersand salesmen are registered pursuant to this chapter. The rules of practice:

(a) Must provide for the sharing of information and forthe initial review of complaints by the Attorney General before mediation bythe Commissioner; and

(b) May provide procedures for mediation by the Commissionerafter initial review by the Attorney General.

3. The Commissioner may adopt rules of practicenecessary to administer and carry out the provisions of this chapter pertainingto the registration of sellers and salesmen. The rules of practice must notrestrict the powers and duties of the Attorney General as set forth in thischapter.

(Added to NRS by 1993, 2100)

NRS 599B.030 Remedies,duties and prohibitions not exclusive. Theremedies, duties and prohibitions of this chapter are not exclusive and are inaddition to any other remedies provided by law.

(Added to NRS by 1989, 1389)

REGISTRATION

NRS 599B.080 Registrationrequired. It is unlawful for any person to dobusiness as a seller or salesman in this State without being registered withthe Division pursuant to the provisions of this chapter. For the purposes ofthis section, a person does business as a seller or salesman in this State ifhe solicits or causes to be solicited a sale of goods or services or a donationfrom a location in this State or solicits persons in this State from a locationoutside this State.

(Added to NRS by 1989, 1382; A 1993, 2104; 1995, 936)

NRS 599B.090 Registrationof seller: Application; confidentiality of certain information; security; fee.

1. An applicant for registration as a seller mustsubmit to the Division, in such form as it prescribes, a written applicationfor registration. The application must:

(a) Set forth the name of the applicant, including eachname under which he intends to do business;

(b) Set forth the name of any parent or affiliatedentity that:

(1) Will engage in a business or othertransaction with the consumer relating to any sale or donation solicited by theapplicant; or

(2) Accepts responsibility for any statement oract of the applicant relating to any sale or donation solicited by theapplicant;

(c) Set forth the complete street address of eachlocation, designating the principal location, from which the applicant will bedoing business;

(d) Contain a list of all telephone numbers to be usedby the applicant, with the address where each telephone using these numberswill be located;

(e) Set forth the name and address of each:

(1) Principal officer, director, trustee,shareholder, owner or partner of the applicant, and of each other personresponsible for the management of the business of the applicant;

(2) Person responsible for a location from whichthe applicant will do business; and

(3) Salesman to be employed by or otherwiseassociated with the applicant;

(f) Be accompanied by a copy of any:

(1) Script, outline or presentation theapplicant will require a salesman to use when soliciting or, if no suchdocument is used, a statement to that effect;

(2) Sales or donation information or literatureto be provided by the applicant to a salesman, or of which the applicant willinform the salesman; and

(3) Sales or donation information or literature tobe provided by the applicant to a consumer in connection with any solicitation;

(g) If the applicant is a corporation, be signed by anofficer of the corporation; and

(h) If the applicant is a natural person, be completedpersonally by the applicant.

2. Any material submitted pursuant to paragraph (f) ofsubsection 1 is submitted for the records of the Division and not for theapproval of the Division.

3. The information provided pursuant to paragraph (f)of subsection 1 by an applicant for registration as a seller is confidentialand may only be released to a law enforcement agency, to a court of competentjurisdiction or by order of a court of competent jurisdiction.

4. If the applicant is other than a natural person, orif any parent or affiliated entity is identified pursuant to paragraph (b) ofsubsection 1, the applicant must, for itself and any such entity, identify itsplace of organization and:

(a) In the case of a partnership, provide a copy of anywritten partnership agreement; or

(b) In the case of a corporation, provide a copy of itsarticles of incorporation and bylaws.

5. An application filed pursuant to this section mustbe verified and accompanied by:

(a) A bond, letter of credit or certificate of depositsatisfying the requirements of NRS599B.100;

(b) A fee for registration in the amount of $6,000;

(c) If subsection 6 applies, the additional bond,letter of credit or certificate of deposit and the additional fee required bythat subsection; and

(d) A copy of:

(1) The work card issued to the seller pursuantto subsection 1 of NRS 599B.115, ifthe seller is required to obtain a work card; and

(2) The work cards of any other personsassociated with the seller who are required to obtain work cards pursuant tosubsection 2 of NRS 599B.115.

6. If an applicant intends to do business under anyassumed or fictitious name, he must, for each such name:

(a) File an additional bond, letter of credit orcertificate of deposit satisfying the requirements of NRS 599B.100; and

(b) Pay an additional fee for registration in theamount of $6,000.

(Added to NRS by 1989, 1382; A 1991, 984; 1993, 2104;1995, 936; 1997, 3206; 1999,1904)

NRS 599B.100 Registrationof seller: Form and amount of security; release of security.

1. An application filed pursuant to NRS 599B.090 must be accompanied by:

(a) A bond executed by a corporate surety approved bythe Commissioner and licensed to do business in this state;

(b) An irrevocable letter of credit issued for thebenefit of the applicant by a bank whose deposits are insured by an agency ofthe Federal Government; or

(c) A certificate of deposit in a financial institutioninsured by an agency of the Federal Government or by a private insurer approvedpursuant to NRS 678.755. The certificateof deposit may be withdrawn only on the order of the Commissioner, except thatthe interest may accrue to the applicant.

2. The amount of the bond, letter of credit orcertificate of deposit must be $50,000, and the bond, letter of credit orcertificate of deposit must be conditioned upon compliance by the applicantwith the provisions of this chapter.

3. The amount of the security required to be filed bythe seller may be increased to not more than $250,000 as part of an assuranceof discontinuance accepted by the Attorney General pursuant to NRS 599B.235.

4. If, after a registration certificate is issued, theamount of the bond, letter of credit or certificate of deposit which securesthe registration falls below the amount that is required by subsection 2 or theamount determined by the Commissioner pursuant to subsection 3, the sellershall be deemed not to be registered pursuant to this chapter for the purposesof NRS 599B.080.

5. The term of any bond, letter of credit orcertificate of deposit, or any renewal thereof, must not be less than 1 year.

6. The Commissioner may reject any bond, letter ofcredit or certificate of deposit which fails to conform to the requirements ofthis section.

7. A seller may change the form of the security. If aseller changes the form of the security, the Commissioner may retain for notmore than 1 year all or a portion of the security previously filed by theseller as security for claims arising at the time the security was in effect.

8. If no claims have been filed against the bond,letter of credit or certificate of deposit within 6 months after the registrantceases to operate or his registration expires, whichever occurs later, theCommissioner shall release the bond, letter of credit or certificate of depositto the registrant and shall not audit any claims filed thereafter by consumers.If one or more claims have been filed against the bond, letter of credit orcertificate of deposit within 6 months after the registrant ceases to operateor his registration expires, whichever occurs later, the proceeds must not bereleased to the registrant or distributed to any consumer earlier than 1 yearafter the registrant ceases to operate or his registration expires, whicheveroccurs later. The Division shall not audit any claims which are filed pursuantto NRS 599B.105 more than 1 year afterthe registrant ceases to operate or his registration expires, whichever occurslater. For the purposes of this subsection, the Commissioner shall determinethe date on which a registrant ceases to operate.

(Added to NRS by 1989, 1383; A 1993, 2105; 1995, 937;1999, 1519)

NRS 599B.105 Rightsand remedies of injured consumer; resolution by Division of claims againstsecurity; regulations.

1. The bond, letter of credit or certificate ofdeposit filed pursuant to NRS 599B.100must be held in trust for consumers injured by the seller.

2. Any consumer who is injured by the bankruptcy ofthe seller or his breach of any agreement entered into in his capacity as aregistrant may bring and maintain an action to recover against the bond, letterof credit or certificate of deposit.

3. In addition to the remedy provided by subsection 2,a consumer may file with the Division a claim against a bond, letter of creditor certificate of deposit filed pursuant to NRS599B.100 if he:

(a) Has purchased or received goods or services from aregistrant;

(b) Was harmed by that registrants breach of anyagreement entered into in his capacity as a registrant; and

(c) Can show that he is entitled to a refund pursuantto subsection 1 of NRS 599B.190.

No otherperson is entitled to bring an action against the bond, letter of credit orcertificate of deposit pursuant to this subsection.

4. The Division shall audit each claim to determinewhether the consumer is entitled to receive a refund pursuant to subsection 1of NRS 599B.190. The Division mayrequest the consumer and the registrant, or either of them, to provide informationto assist in the audit.

5. After the Division has completed its audit, itshall schedule a hearing and notify the registrant and the consumer of its intentto take action or to decline to take action. If the Division decides that itwill take action against the bond, letter of credit or certificate of deposit,it shall notify the registrant not less than 10 days before the date set forthe hearing to appear and show cause why the Division should not take theintended action. If the Division decides that it will not take action againstthe bond, letter of credit or certificate of deposit of a registrant on behalfof the consumer, the Division shall notify the consumer not less than 10 daysbefore the date set for the hearing to appear and show cause why the Divisionshould not decline to take action.

6. If, upon hearing, the Commissioner determines thatthere are sufficient grounds to take the intended action against the bond,letter of credit or certificate of deposit, or if the registrant or theconsumer fails to appear and show cause why the Division should not take theintended action, the Commissioner shall take the action provided for in theDivisions notice of intended action.

7. The Division shall not distribute or cause to bedistributed to the consumer more than the actual amount of money that theconsumer paid for the product, service or premium. The Division shall notdistribute or cause to be distributed to the consumer the value of a premium ifthe value exceeds the amount paid by the consumer.

8. Except as otherwise provided in subsection 10, ifthe total amount of money awarded to consumers against a bond does not exceedthe amount of that bond, the surety on the bond shall distribute the money fromthe bond to the consumers according to the terms of the order of theCommissioner and is thereby relieved of all liability pursuant to the bond.

9. If the total amount of money awarded to consumersagainst a bond exceeds the amount of that bond, or if the security is held inthe form of a letter of credit or a certificate of deposit, the surety on thebond or the issuer of the letter of credit or certificate of deposit shalldeposit the amount of the security with the Division and is thereby relieved ofall liability pursuant thereto. Except as otherwise provided in subsection 10,the Division shall distribute to each consumer his pro rata share of theproceeds of the bond, letter of credit or certificate of deposit.

10. Before distributing the proceeds of the bond,letter of credit or certificate of deposit to the consumer, the Division:

(a) Shall allow the registrant a reasonable amount oftime within which to resolve the claims.

(b) Is entitled to deduct from the proceeds of thebond, letter of credit or certificate of deposit the Divisions orCommissioners costs of hearing, auditing and determining the claim, includingattorneys fees.

11. A consumer who receives less than a full refundmay bring an action in a court of competent jurisdiction against the registrantto recover the unpaid balance.

12. The Commissioner may adopt regulations regardingthe distribution of the money to claimants pursuant to this section, includingthe conduct of hearings relating to such distributions.

(Added to NRS by 1993, 2096; A 1995, 938)

NRS 599B.110 Registrationof seller: Disclosure of certain convictions, judgments and orders concerningresponsible persons.

1. With respect to any person identified pursuant tosubparagraph (1) or (2) of paragraph (e) of subsection 1 of NRS 599B.090, an applicant forregistration as a seller must state in his application the identity of anyperson who:

(a) Has been convicted of racketeering or any offenseinvolving fraud, theft, embezzlement, fraudulent conversion or misappropriationof property;

(b) Has had entered against him a final judgment ororder, including a stipulated judgment or order, in any civil or administrativeaction involving racketeering, fraud, theft, embezzlement, fraudulentconversion or misappropriation of property, the use of any untrue or misleadingrepresentation in an attempt to sell or dispose of real or personal property,or the use of any unfair, unlawful or deceptive trade practice;

(c) Is subject to any currently effective injunction orrestrictive court order relating to a business activity as the result of anyaction brought by a federal, state or local agency, including any actionaffecting any license or registration authorizing him to do business orpractice an occupation or trade;

(d) Has at any time during the previous 7 years filedin bankruptcy, been adjudged bankrupt or been reorganized because ofinsolvency; or

(e) Has been a principal, director, officer or trusteeof, or a general or limited partner in, or had responsibilities as a managerin, any corporation, partnership, joint venture or other entity that filed inbankruptcy, was adjudged bankrupt or was reorganized because of insolvencywithin 1 year after the person held that position.

2. For any person described in subsection 1, theapplicant must:

(a) Identify the court or administrative agencyrendering the conviction, judgment or order against the person;

(b) Provide the docket number of the matter, the dateof the conviction, judgment or order and the name of the governmental agency,if any, that brought the action resulting in the conviction, judgment or order;and

(c) For any person described in paragraph (e) of thatsubsection, provide the name and address of the person filing in bankruptcy,adjudged bankrupt or reorganized because of insolvency, the date of the action,the court which exercised jurisdiction and the docket number of the matter.

(Added to NRS by 1989, 1384; A 1993, 2106)

NRS 599B.115 Registrationof seller: Work card required for applicant and certain other persons;exceptions; issuance and renewal of work card; fingerprints.

1. Except asotherwise provided in subsection 5, each applicant for registration as a sellermust obtain a work card issued pursuant to subsection 3 by the sheriff of thecounty in which the business of the applicant is located.

2. Except asotherwise provided in subsection 5, each principal officer, director, trustee,shareholder, owner, partner and employee of a seller, and each salesman associatedwith a seller who is not an employee of the seller, must obtain a work cardissued pursuant to subsection 3 by the sheriff of the county in which thebusiness of the seller is located that authorizes his association with theseller.

3. The sheriffof a county shall issue a work card to each person who is required by thissection to obtain a work card and who complies with the requirementsestablished by the sheriff for the issuance of such a card. A work card issuedpursuant to this section must be renewed each year.

4. If the sheriff of a county requires an applicantfor a work card to be investigated, the applicant must submit with hisapplication a complete set of his fingerprints which the sheriff may forward tothe Central Repository for Nevada Records of Criminal History for submission tothe Federal Bureau of Investigation to determine the criminal history of theapplicant.

5. A person who is licensed or registered pursuant to chapter 119A or 645of NRS is not required to obtain a work card pursuant to this section.

(Added to NRS by 1997, 3202; A 1999, 1905; 2003, 2859)

NRS 599B.120 Registrationof salesman: Application; statement of seller; fee. [Effective until the dateof the repeal of the federal law requiring each state to establish proceduresfor withholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

1. An applicant for registration as a salesman mustsubmit to the Division, in such form as it prescribes, a written applicationfor registration. The application must set forth the following information:

(a) The name, age and address of the applicant.

(b) If the applicant is a natural person, the socialsecurity number of the applicant.

(c) Each business or occupation engaged in by theapplicant during the 2 years immediately preceding the date of the application,and the location thereof.

(d) The previous experience of the applicant as asalesman.

(e) Whether the applicant has previously been arrestedfor, convicted of or is under indictment for a felony and, if so, the nature ofthe felony.

(f) Whether the applicant has previously been convictedof or is under indictment for forgery, embezzlement, obtaining money underfalse pretenses, larceny, extortion, conspiracy to defraud or any other crimeinvolving moral turpitude.

(g) Whether the applicant has previously been convictedof acting as a salesman without registration or a license, or whether such aregistration or license has previously been refused, revoked or suspended inany jurisdiction.

2. Except as otherwise provided in this subsection, anapplication filed pursuant to this section must be verified and be accompaniedby:

(a) A verified statement of the seller with whom thesalesman will be associated, expressing the intention of the seller toassociate the salesman with him and to be responsible for the activities of thesalesman as a registrant;

(b) If the applicant is a natural person, the statementrequired pursuant to NRS 599B.125; and

(c) A fee for registration in the amount of $100.

The fee maybe paid after the application is filed, but must be paid within 14 days afterthe applicant begins work as a salesman.

3. Any application for registration made by a naturalperson must be completed personally by the applicant. An application made by acorporation must be signed by an officer of the corporation.

(Added to NRS by 1989, 1384; A 1993, 2107; 1997,2104)

NRS 599B.120 Registration of salesman:Application; statement of seller; fee. [Effective on the date of the repeal ofthe federal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

1. An applicant for registration as a salesman mustsubmit to the Division, in such form as it prescribes, a written applicationfor registration. The application must set forth the following information:

(a) The name, age and address of the applicant.

(b) Each business or occupation engaged in by theapplicant during the 2 years immediately preceding the date of the application,and the location thereof.

(c) The previous experience of the applicant as asalesman.

(d) Whether the applicant has previously been arrestedfor, convicted of or is under indictment for a felony and, if so, the nature ofthe felony.

(e) Whether the applicant has previously been convictedof or is under indictment for forgery, embezzlement, obtaining money underfalse pretenses, larceny, extortion, conspiracy to defraud or any other crimeinvolving moral turpitude.

(f) Whether the applicant has previously been convictedof acting as a salesman without registration or a license, or whether such aregistration or license has previously been refused, revoked or suspended inany jurisdiction.

2. Except as otherwise provided in this subsection, anapplication filed pursuant to this section must be verified and be accompaniedby:

(a) A verified statement of the seller with whom thesalesman will be associated, expressing the intention of the seller toassociate the salesman with him and to be responsible for the activities of thesalesman as a registrant; and

(b) A fee for registration in the amount of $100.

The fee maybe paid after the application is filed, but must be paid within 14 days afterthe applicant begins work as a salesman.

3. Any application for registration made by a naturalperson must be completed personally by the applicant. An application made by acorporation must be signed by an officer of the corporation.

(Added to NRS by 1989, 1384; A 1993, 2107; 1997,2104, effective on the date of the repeal of the federal law requiring eachstate to establish procedures for withholding, suspending and restricting theprofessional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings)

NRS 599B.125 Statementregarding payment of child support by applicant for registration certificate;grounds for denial of registration certificate; duty of Division. [Expires bylimitation on the date of the repeal of the federal law requiring each state toestablish procedures for withholding, suspending and restricting theprofessional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings.]

1. A natural person who applies for the issuance orrenewal of a registration certificate as a salesman for a seller shall submitto the Division the statement prescribed by the Division of Welfare andSupportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completedand signed by the applicant.

2. The Division shall include the statement requiredpursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of the registration certificate; or

(b) A separate form prescribed by the Division.

3. A registration certificate as a salesman for aseller may not be issued or renewed by the Division if the applicant is anatural person who:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant to subsection1 that he is subject to a court order for the support of a child and is not incompliance with the order or a plan approved by the district attorney or otherpublic agency enforcing the order for the repayment of the amount owed pursuantto the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Division shall advisethe applicant to contact the district attorney or other public agency enforcingthe order to determine the actions that the applicant may take to satisfy thearrearage.

(Added to NRS by 1997, 2103)

NRS 599B.130 Issuanceand display of registration certificate.

1. The Division shall issue to each registrant aregistration certificate in such form and size as is prescribed by the Divisionand, in the case of a seller, shall issue a registration certificate for eachlocation at which the seller proposes to do business. Each registrationcertificate must show the name and address of the registrant and, in the caseof a salesmans registration certificate, must set forth the name of the sellerwith whom the salesman will be associated.

2. Each registrant shall prominently display hisregistration certificate at the location where he does business.

(Added to NRS by 1989, 1385; A 1993, 2108)

NRS 599B.140 Renewalof registration.

1. Each person registered pursuant to the provisionsof this chapter must renew his registration annually by:

(a) Paying the fee for registration;

(b) Submitting to the Division the application requiredby NRS 599B.090 or 599B.120, whichever applies; and

(c) If the person is a seller, submitting to theDivision:

(1) A copy of the work card obtained by:

(I) The seller pursuant to subsection 1 ofNRS 599B.115; and

(II) Each principal officer, director,trustee, shareholder, owner, partner and employee of the seller, and eachsalesman associated with the seller who is not an employee of the seller,pursuant to subsection 2 of NRS 599B.115;and

(2) If applicable, a statement listing eachperson who, pursuant to subsection 5 of NRS599B.115, is not required to obtain a work card.

2. Registration expires on the anniversary of theissuance of the registration. A registrant who wishes to renew his registrationmust do so on or before the date his registration expires.

3. For the purposes of NRS 599B.080, a person who fails to renewhis registration within the time required by this section is not registeredpursuant to this chapter.

4. Except as otherwise provided in NRS 599B.160, if any material change inthe information submitted for registration occurs before the date for renewal,a registrant shall submit that information to the Division within 10 days afterthe registrant obtains knowledge of the change.

(Added to NRS by 1989, 1385; A 1993, 2108; 1997,3208; 1999, 1906)

NRS 599B.143 Suspensionof registration certificate for failure to pay child support or comply withcertain subpoenas or warrants; reinstatement of registration certificate.[Expires by limitation on the date of the repeal of the federal law requiringeach state to establish procedures for withholding, suspending and restrictingthe professional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings.]

1. If the Division receives a copy of a court orderissued pursuant to NRS 425.540 thatprovides for the suspension of all professional, occupational and recreationallicenses, certificates and permits issued to a person who has been registeredby the Division as a salesman of a seller, the Division shall deem the personsregistration to be suspended at the end of the 30th day after the date on whichthe court order was issued unless the Division receives a letter issued by thedistrict attorney or other public agency pursuant to NRS 425.550 to the person who has beenregistered stating that the person has complied with the subpoena or warrant orhas satisfied the arrearage pursuant to NRS425.560.

2. The Division shall reinstate a registration certificateas a salesman for a seller that has been suspended by a district court pursuantto NRS 425.540 if the Division receivesa letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whoseregistration was suspended stating that the person whose registration wassuspended has complied with the subpoena or warrant or has satisfied thearrearage pursuant to NRS 425.560.

(Added to NRS by 1997, 2103)

NRS 599B.145 Paymentand refund of fees for registration.

1. The fees for registration required by NRS 599B.090, 599B.120 and 599B.140 must be paid in cash or bycertified check or money order.

2. A fee for registration must not be refunded, exceptthat all or part of the fee may be refunded if the Commissioner rejects anapplication for registration because the application is incomplete.

(Added to NRS by 1993, 2096)

PRACTICE

NRS 599B.150 Associationof salesman with more than one seller prohibited; seller to cooperate ininvestigations.

1. No salesman may be associated with or employed bymore than one seller at the same time.

2. A seller shall cooperate fully with theCommissioner in any investigation made by him concerning an alleged violationof the provisions of this chapter by a salesman.

(Added to NRS by 1989, 1385)

NRS 599B.160 Submissionto Division of change in material or presentation used in solicitation. If any change is made to any script, outline, presentationor sales or donation information or literature used by a registrant inconnection with any solicitation, the new or revised material must be submittedby the registrant to the Division before such material is used.

(Added to NRS by 1989, 1385; A 1993, 2108; 1995, 939)

NRS 599B.170 Requireddisclosures by salesman; restrictions on representations regarding premiums.

1. During any solicitation or sales presentation madeby him, or in any correspondence written in connection with a sale, a salesmanshall:

(a) Identify himself by stating his true name;

(b) Identify the seller by whom he is employed; and

(c) State the purpose of his call.

2. During any solicitation or sales presentation madeby him, or in any correspondence written in connection with a registrant, aregistrant shall disclose to a consumer:

(a) Any charge, including the amount associated withthe use of any premium being offered;

(b) Any material restriction, requirement, condition,limitation or exception which is associated with the use of the premium; and

(c) Any charge connected with the sale of any goods orservices.

3. A registrant shall not characterize a premium as aprize unless the consumer may receive the premium free of charge and withoutmaking any purchase.

4. A registrant shall inform each consumer of the timewithin which any premium will be delivered.

5. A registrant shall not make any representation ofthe number of premiums to be awarded in a sales promotion unless therepresentation accurately reflects the actual number of premiums that will beawarded.

(Added to NRS by 1989, 1385; A 1993, 2108; 1995, 939)

NRS 599B.180 Solicitationinvolving representation that consumer is or may be eligible to receivepremium. If a seller expresslyor impliedly represents to any consumer,directly or through a salesman, that the consumeris or may be eligible to receive any gift, premium, bonus or prize, howeverdenominated, the seller shall:

1. Submit to the Division a statement setting forth,for each item mentioned:

(a) A description of the item.

(b) The value or worth of the item and the basis forthe valuation.

(c) All terms and conditions a consumer must satisfy inorder to receive the item. The statement must be accompanied by a copy of thewritten statement of terms and conditions provided to consumers pursuant tosubsection 3.

(d) If they are ascertainable, the odds, for a givenconsumer, of receiving the item.

(e) If a consumer is to receive fewer than all theitems described by the seller:

(1) The manner in which the seller decides whichitem a given consumer is to receive.

(2) If they are ascertainable, the odds, for agiven consumer, of receiving each item described.

(3) The name and address of each person who has,during the preceding 12 months or any portion thereof in which the seller hasdone business, received the item having the greatest value and the item withthe smallest odds of being received.

2. Provide the following information to the consumerat the time of the solicitation:

(a) The complete address of the location and thetelephone number from which the consumer is being called and, if different, thecomplete address of the principal location at which the seller does business.

(b) The information required by paragraphs (a) and (c)of subsection 1.

(c) If the seller elects to inform the consumer of thevalue or worth of the item, the information must be identical to that submittedpursuant to paragraph (b) of subsection 1, in exactly the form submitted.

(d) If the consumer is to receive fewer than all theitems described by the seller, the information required by subparagraph (1) ofparagraph (e) of subsection 1.

3. Advise the consumer, at the time of thesolicitation, that he may obtain, without cost, a written statement of theterms and conditions he must satisfy in order to receive the item. If theconsumer so requests, the seller shall send him such a statement, by mail,without cost to the consumer.

(Added to NRS by 1989, 1385; A 1995, 940)

NRS 599B.185 Requireddisclosures when registrant solicits sale of investments. If a registrant solicits the sale of investments oropportunities for investment, he shall, during the oral sales presentation andin writing, inform the prospective consumer:

1. Of the manner in which the price of the offereditem is determined;

2. Whether the registrant or his employer receives anyfinancial advantage other than an agents or brokerage fee; and

3. Of the amount of any agents or brokerage fee.

(Added to NRS by 1993, 2098; A 1995, 941)

NRS 599B.187 Requirementsfor use of chance promotion.

1. A registrant shall not use a chance promotionunless each consumer is entitled to participate in the promotion without chargeor payment of any kind.

2. A registrant shall, before describing any itemoffered in a chance promotion, inform each consumer that he may participate inthe promotion without any obligation to purchase any goods or services.

3. If a consumer specifically requests the informationand the odds are ascertainable, the registrant shall orally disclose the oddsof receiving each item offered in the chance promotion. If such a request ismade but the odds are not ascertainable, the registrant shall disclose themanner in which the items offered in the promotion are awarded.

4. A registrant shall not require or request thepayment of any money as a condition of obtaining any premium offered in achance promotion.

5. A registrant shall not require a person to performany action or to supply any information to participate in a chance promotion,except that the registrant may require the person to submit a written requestsent by first-class mail. A registrant may not require the person to supply anyinformation other than his name, address and a list of the premiums availablein the chance promotion.

6. If a premium is offered in a chance promotion, theregistrant shall provide any such premium to each person who does not purchasegoods or services from the registrant upon the same terms, including time ofdelivery, as are provided to the persons who do purchase goods or services fromthe registrant.

7. If requested, a registrant shall inform each personwho does not purchase goods or services from the registrant of the manner inwhich the person can participate in the chance promotion.

8. Any registrant who uses a chance promotion shall:

(a) Furnish to the Division information establishingthe financial ability of the registrant to award all premiums to be given in thepromotion.

(b) Award all premiums included in the promotion tobona fide recipients within 12 months after the promotion begins.

(c) Deliver the premiums to bona fide recipients withina reasonable time.

(Added to NRS by 1993, 2098; A 1995, 941)

NRS 599B.190 Issuanceof refund or replacement of goods or services; notice to consumer.

1. Except as otherwise provided in subsection 3, aperson who purchases goods or services or makes a donation pursuant to asolicitation governed by this chapter must be given a refund or replacement, athis option, if:

(a) The goods or services are defective, are not asrepresented or if any item described pursuant to NRS 599B.180 is not received as promised;and

(b) He returns the unused goods, if any, or makes awritten request for the refund or replacement within 30 days after he receives:

(1) The goods or services; or

(2) Any item described pursuant to NRS 599B.180,

whichever isreceived later. A return or request is timely if shipment is made or therequest is postmarked, properly addressed and postage prepaid, within the timeprovided by this paragraph.

2. A registrant who receives a written request for arefund or replacement shall not require prior authorization for a return ofgoods and shall give a refund or replacement within 14 days after receipt ofthe request.

3. If a consumer of goods returns only a portion of thegoods, the refund or replacement required by subsection 1 may be proratedaccordingly.

4. The refund or replacement required by subsection 1must be given by the seller, regardless of whether payment for the goods orservices is made to the seller or some other person.

5. Except for any proration permitted by subsection 3,a registrant shall not impose any charge in connection with a return of goodsor a request for a refund or replacement.

6. If a registrant receives payment by credit card, hemay issue a refund in the form of a credit to the credit card account of theconsumer in lieu of a cash refund.

7. Within 3 days after any purchase of goods orservices or upon delivery of the goods or services, whichever is later, orwithin 3 days after receiving a donation, the seller shall provide the consumerwith a written summary of the provisions of this section. The summary must:

(a) Be made in a form prescribed by the Division.

(b) Include the address to which returned goods or arequest for refund may be sent.

(c) Be accompanied by a statement containing theinformation required by paragraph (e) of subsection 1 of NRS 599B.180, if the provisions of thatsection apply.

(d) If the provisions of paragraph (c) of subsection 2of NRS 599B.180 apply, be accompaniedby a statement concerning the number of persons who have, during the 12 monthspreceding the solicitation or any portion thereof in which the seller has donebusiness, received the item having the greatest value and the item with thesmallest odds of being received.

A summary istimely if it is postmarked, properly addressed and postage prepaid, within thetime provided by this subsection.

(Added to NRS by 1989, 1386; A 1993, 2109; 1995, 942)

NRS 599B.195 Deliveryof goods or services must be accompanied by form. Eachdelivery of goods or services by a registrant must be accompanied by the formprescribed by the Division pursuant to subsection 7 of NRS 599B.190.

(Added to NRS by 1993, 2098)

NRS 599B.197 Recoveryservice: Performance required before charging or receiving money from consumer. A seller or salesman engaged in a recovery service shallnot charge or receive any money or other valuable consideration from a consumerbefore full and complete performance of the service which the seller orsalesman has agreed to perform for or on behalf of the consumer.

(Added to NRS by 1995, 931)

NRS 599B.200 Disclosureof purchaser prohibited; exceptions. A salesmanor seller shall not disclose the name or address of any person who purchasesgoods or services pursuant to a solicitation governed by this chapter. Nothingin this section prohibits the disclosure of this information to:

1. Any person employed by or associated with theseller;

2. The Commissioner or any employee of the Division;or

3. Any law enforcement officer or agency that requiresthe information for investigative purposes.

(Added to NRS by 1989, 1387; A 1993, 2110)

ENFORCEMENT

NRS 599B.210 Appointmentof Secretary of State as agent for service of process; procedure for and effectof service; fee.

1. Every registrant, other than a registrantincorporated in this state, shall file with the Secretary of State anirrevocable consent appointing the Secretary of State as his agent to receiveservice of any lawful process in any action or proceeding against him arising pursuantto this chapter. Any lawful process against the registrant served upon theSecretary of State as provided in subsection 2 has the same force and validityas if served upon the registrant personally.

2. Service of process authorized by subsection 1 mustbe made by filing with the Secretary of State:

(a) Two copies of the process. The copies must includea specific citation to the provisions of this section. The Secretary of Statemay refuse to accept such service if the proper citation is not included ineach copy.

(b) A fee of $10.

TheSecretary of State shall forthwith forward one copy of the process by registeredor certified mail prepaid to the registrant, or in the case of a registrantorganized under the laws of a foreign government, to the United States manageror last appointed United States general agent of the registrant, giving the dayand the hour of the service.

3. Service of process is not complete until the copythereof has been mailed and received by the registrant, and the receipt of theaddressee is prima facie evidence of the completion of the service.

4. If service of summons is made upon the Secretary ofState in accordance with the provisions of this section, the time within whichthe registrant is required to appear is extended 10 days.

(Added to NRS by 1989, 1389; A 1991, 1317; 1993,2110; 1997, 475)

NRS 599B.213 Jurisdictionand authority of Attorney General.

1. The Attorney General has primary jurisdiction toinvestigate and prosecute violations of this chapter and any fraud involvingsolicitation by telephone.

2. When acting pursuant to this section, the AttorneyGeneral may commence his investigation and file a criminal action without leaveof court, and he has exclusive charge of the conduct of the prosecution.

(Added to NRS by 1995, 931)

NRS 599B.215 Actionby Attorney General.

1. The Attorney General may conduct an investigationto determine whether a person, either directly or indirectly, has violated, isviolating or is about to violate any of the provisions of this chapter or anyregulation adopted pursuant thereto.

2. If the Attorney General has reason to believe thatany person, either directly or indirectly, has violated, is violating or isabout to violate any of the provisions of this chapter or any regulationadopted pursuant thereto, the Attorney General may:

(a) Issue a subpoena to require the testimony of anyperson;

(b) Issue a subpoena to require the production of anydocuments; or

(c) Administer an oath or affirmation to any personproviding testimony pursuant to a subpoena.

3. A subpoena issued pursuant to subsection 2 must beserved in the manner provided in the Nevada Rules of Civil Procedure.

(Added to NRS by 1993, 2099)

NRS 599B.225 AttorneyGeneral may apply for equitable relief. If anyperson fails to cooperate with an investigation conducted by the AttorneyGeneral or to obey a subpoena issued by the Attorney General pursuant to NRS 599B.215, the Attorney General mayapply to any district court for equitable relief. The court may:

1. Order the person to testify or to produce therequested documents pursuant to the subpoena; and

2. Grant other relief necessary to compel complianceby the person.

(Added to NRS by 1993, 2099)

NRS 599B.235 AttorneyGeneral may accept assurance of discontinuance of violation; proof of violationof assurance is prima facie evidence of violation of applicable law in civilaction.

1. The Attorney General may accept an assurance ofdiscontinuance of any violation of the provisions of this chapter or anyregulation adopted pursuant thereto. The assurance may include a stipulationfor the payment of money to this state by the alleged violator, including butnot limited to, payment for the costs of investigation, for the costs ofinstituting the action or proceeding and for the restitution of any money orproperty acquired as a result of the violation.

2. Proof by a preponderance of evidence of a violationof an assurance given pursuant to subsection 1 constitutes prima facie evidenceof a violation of the applicable statutes or regulations for the purpose of anycivil action or proceeding brought thereafter by the Attorney General, whetherthe action or proceeding is a new action or a subsequent motion or petition ina pending action or proceeding.

(Added to NRS by 1993, 2099)

NRS 599B.245 AttorneyGeneral may institute legal proceeding against person believed to have violatedprovisions of this chapter; remedies; civil penalty for violation of courtorder or injunction.

1. If the Attorney General has reason to believe thata person, either directly or indirectly, has violated, is violating or is aboutto violate any of the provisions of this chapter or any regulation adopted pursuantthereto, he may institute an appropriate legal proceeding against the person.The district court, upon a showing that the person, either directly orindirectly, has violated, is violating or is about to violate any of theprovisions of this chapter or any regulation adopted pursuant thereto, maygrant the following remedies, as appropriate:

(a) Issue a temporary or permanent injunction;

(b) Impose a civil penalty not to exceed $5,000 foreach violation;

(c) Issue a declaratory judgment;

(d) Order restitution for consumers;

(e) Provide for the appointment of a receiver;

(f) Order the payment of attorneys fees and costs; and

(g) Order such other relief as the court deems just.

2. Any person who violates a court order or injunctionissued pursuant to subsection 1 shall, upon a complaint brought by the AttorneyGeneral, pay a civil penalty of not more than $50,000 for each violation.

(Added to NRS by 1993, 2099; A 1995, 943)

NRS 599B.255 Willfulviolations: Prosecution; criminal penalties; forfeitures.

1. Except as otherwise provided in NRS 599B.213, the Attorney General or thedistrict attorney of any county in this state may prosecute a person whowillfully violates, either directly or indirectly, the provisions of thischapter. Except as otherwise provided in subsection 3, such a person:

(a) For the first offense within 10 years, is guilty ofa misdemeanor.

(b) For the second offense within 10 years, is guiltyof a gross misdemeanor.

(c) For the third and all subsequent offenses within 10years, is guilty of a category D felony and shall be punished as provided in NRS 193.130, or by a fine of not more than$50,000, or by both fine and the punishment provided in NRS 193.130.

2. Any offense which occurs within 10 yearsimmediately preceding the date of the principal offense or after the principaloffense constitutes a prior offense for the purposes of subsection 1 whenevidenced by a conviction, without regard to the sequence of the offenses andconvictions.

3. A person who violates any provision of NRS 599B.080 is guilty of a category Dfelony and shall be punished as provided in NRS193.130, or by a fine of not more than $50,000, or by both fine and thepunishment provided in NRS 193.130.

4. Property or proceeds attributable to any violationpursuant to the provisions of this section are subject to forfeiture in themanner provided by NRS 179.1156 to 179.121, inclusive.

(Added to NRS by 1993, 2100; A 1995, 943, 1307)

NRS 599B.260 Depositand use of money collected pursuant to this chapter.

1. Except as otherwise provided in subsection 2, allfees, civil penalties and any other money collected pursuant to this chapter inan action brought by the Attorney General must be deposited in the StateGeneral Fund and may only be used to defray the costs of:

(a) Administering and enforcing the provisions of thischapter.

(b) Enforcing the provisions of chapter 598 of NRS as they relate to the conductof sellers and salesmen, whether or not the sellers and salesmen are registeredpursuant to this chapter.

2. The provisions of this section do not apply to:

(a) Criminal fines imposed pursuant to the provisionsof this chapter; or

(b) Restitution ordered in an action brought by theAttorney General pursuant to the provisions of this chapter. Money collectedfor restitution ordered in such an action must be deposited by the AttorneyGeneral and credited to the appropriate account of the Division or the AttorneyGeneral for distribution to the person for whom the restitution was ordered.

(Added to NRS by 1993, 2096; A 1995, 944; 2001, 2928)

SOLICITATION OF ELDERLY OR DISABLED PERSON

NRS 599B.270 Definitions. As used in NRS599B.270 to 599B.300, inclusive,unless the context otherwise requires:

1. Disabled person means a person who:

(a) Has a physical or mental impairment thatsubstantially limits one or more of the major life activities of the person;

(b) Has a record of such an impairment; or

(c) Is regarded as having such an impairment.

2. Elderly person means a person who is 60 years ofage or older.

(Added to NRS by 1993, 1979; A 2003, 2569)

NRS 599B.280 Additionalpenalty.

1. In any action brought pursuant to NRS 599B.213, 599B.245 or 599B.255, if the court finds that aperson has engaged in an unlawful solicitation by telephone directed toward anelderly or disabled person, the court may, in addition to any other civil orcriminal penalty, impose a civil penalty of not more than $10,000 for each violation.

2. In determining whether to impose a civil penaltypursuant to subsection 1, the court shall consider whether:

(a) The conduct of the person was in disregard of therights of the elderly or disabled person;

(b) The person knew or should have known that hisconduct was directed toward an elderly or disabled person;

(c) The elderly or disabled person was more vulnerableto the conduct of the person because of the age, health, infirmity, impairedunderstanding, restricted mobility or disability of the elderly or disabledperson;

(d) The conduct of the person caused the elderly ordisabled person to suffer actual and substantial physical, emotional oreconomic damage;

(e) The conduct of the person caused the elderly ordisabled person to suffer:

(1) Mental or emotional anguish;

(2) The loss of the primary residence of theelderly or disabled person;

(3) The loss of the principal employment orsource of income of the elderly or disabled person;

(4) The loss of money received from a pension,retirement plan or governmental program;

(5) The loss of property that had been set asidefor retirement or for personal or family care and maintenance;

(6) The loss of assets which are essential tothe health and welfare of the elderly or disabled person; or

(7) Any other interference with the economicwell-being of the elderly or disabled person, including the encumbrance of hisprimary residence or principal source of income; or

(f) Any other factors that the court deems to beappropriate.

(Added to NRS by 1993, 1979; A 1995, 944)

NRS 599B.290 Depositand use of money collected from civil penalties imposed in action brought bydistrict attorney.

1. Money collected from civil penalties imposedpursuant to NRS 599B.280 in an actionbrought by the district attorney of a county, must be deposited with the countytreasurer of that county and accounted for separately in the county generalfund.

2. Money in the account created pursuant to subsection1 must be used by the district attorney of the county for:

(a) The investigation and prosecution of acts ofunlawful solicitation by telephone against elderly or disabled persons; and

(b) Programs for the education of consumers which aredirected toward elderly or disabled persons, law enforcement officers, membersof the judicial system, persons who provide social services and the generalpublic.

(Added to NRS by 1993, 1980; A 1995, 945)

NRS 599B.300 Civilaction. If an elderly or disabled personsuffers damage or injury as a result of an unlawful solicitation by telephone,he or his legal representative, if any, may commence a civil action against anyperson who engaged in the solicitation to recover the actual damages sufferedby the elderly or disabled person, punitive damages, if appropriate, andreasonable attorneys fees. The collection of any restitution awarded pursuantto this section has a priority over the collection of any civil penalty imposedpursuant to NRS 599B.280.

(Added to NRS by 1993, 1980)

 

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