Existing law provides for the regulation of structured settlement purchase companies by the Consumer Affairs Unit of the Department of Business and Industry. (NRS 42.200-42.400) Section 1 of this bill authorizes the Commissioner of Consumer Affairs of the Unit, in consultation with the Director of the Department, to adopt regulations relating to structured settlement purchase companies. Existing law requires a structured settlement purchase company that wishes to do business in this State to: (1) register with the Unit; and (2) include in its application for registration a sworn certification that the structured settlement purchase company has secured a surety bond, has been issued a letter of credit or has posted a cash bond in the amount of $50,000 which relates to its business as a structured settlement purchase company in this State and which is intended to protect payees who do business with the structured settlement purchase company. (NRS 42.340) Section 3 of this bill requires: (1) an applicant for registration as a structured settlement purchase company to pay a nonrefundable application fee of $250 for its initial registration; (2) a registrant to pay a nonrefundable renewal fee of $250 for the timely renewal of its registration; and (3) a registrant who fails to timely renew its registration before expiration to pay a nonrefundable renewal fee of $375 if the registration is renewed within 60 days after expiration or, if the registrant fails to renew its registration more than 60 days after expiration, to pay a nonrefundable reinstatement fee of $500. Section 3 also provides that all fees received by the Unit must be used only to acquire technology for, or improve technology used by, the Unit to carry out its duties. Finally, section 3 eliminates the authorization for a structured settlement purchase company to post a cash bond as an option to protect payees who do business with the structured settlement purchase company, which means that the structured settlement purchase company must instead secure a surety bond or have been issued a letter of credit. Section 2 of this bill makes a conforming change to indicate the proper placement of section 1 in the Nevada Revised Statutes. Section 4 of this bill makes a conforming change to reflect that a structured settlement purchase company is no longer authorized to post a cash bond pursuant to section 3.

Statutes affected:
As Introduced: 42.200, 42.340, 42.360
As Enrolled: 42.200, 42.340, 42.360
BDR: 42.200, 42.340, 42.360