Existing law provides for the licensure and regulation of various types of financial institutions, including, without limitation, depository institutions, by the Commissioner of Financial Institutions. (Title 55 of NRS) Existing law requires the Commissioner, during the process for the organization and licensing of a banking corporation or company, to examine all the facts connected with the formation of the proposed banking corporation or company, including its location. (NRS 659.045) Similarly, existing law requires a person who desires to organize a savings bank to submit to the Commissioner an application that contains, among other things, the location of the proposed main office of the savings bank. (NRS 673.080) Section 1 of this bill prohibits the Commissioner from requiring an applicant for a license to establish a new depository institution to identify in the application for the license the physical address where the main office of the proposed depository institution will be located. Section 1 authorizes the Commissioner to require such an applicant to: (1) identify the location of the proposed main office, described in general terms, in the application; and (2) provide the physical address of the proposed main office before the depository institution commences business. Section 2 of this bill makes a conforming change to indicate the proper placement of section 1 in the Nevada Revised Statutes. Existing law prohibits a person from engaging in the business of lending in this State without having first obtained a license from the Commissioner for each office or other place of business in which the person engages in the business of lending. (NRS 675.060) Section 5 of this bill authorizes an employee of a licensee to engage in the business of lending in this State at a remote location if authorized by the licensee. Section 5 requires a licensee: (1) to enter into a written agreement with an employee before authorizing the employee to work at a remote location; and (2) to ensure that the employee and the remote location meet certain requirements. Section 6 of this bill requires a licensee who authorizes an employee to engage in the business of lending in this State at a remote location to develop and adhere to a written data security policy meeting certain requirements. Section 7 of this bill sets forth certain prohibited acts with respect to an employee who engages in the business of lending in this State at a remote location. Section 8 of this bill requires a licensee who authorizes any employee to engage in the business of lending in this State at a remote location to conduct an annual review and evaluation of the operations of the licensee which are conducted by employees working at remote locations. Section 11 of this bill defines words and terms for the purposes of this bill. Sections 12-16 of this bill make certain changes to provisions governing the licensing of persons engaged in the business of lending to account for the provisions of sections 5-8 which authorize an employee of a licensee to engage in the business of lending in this State at a remote location. Existing law requires a data collector that owns, licenses or maintains computerized data which includes personal information to, after discovery or notification of a breach of security in which personal information maintained by the data collector was, or is reasonably believed to have been, acquired by an unauthorized person, notify each affected resident of this State and certain other persons. (NRS 603A.220) Section 17 of this bill exempts a person licensed to engage in the business of lending in this State from those requirements. Section 9 of this bill instead sets forth similar provisions which require a licensee, after discovery or notification of a breach of security in which personal information maintained by the licensee was, or is reasonably believed to have been, acquired by an unauthorized person, to notify each affected resident if the breach is reasonably likely to subject the resident to a risk of harm and certain other conditions are met. Section 9 sets forth certain requirements for such a notification. Section 10 of this bill requires a licensee who is required to notify more than 500 residents of this State pursuant to section 9 as the result of a single breach also to notify the Attorney General. Existing law requires certain financial institutions to designate a person to whom an officer or employee of the financial institution must report known or suspected exploitation of an older person or vulnerable person. (NRS 657.290) Section 3 of this bill authorizes a designated reporter to delay a requested disbursement or transaction involving an older person or vulnerable person if the designated reporter knows or has reasonable cause to believe that the older person or vulnerable person has been exploited. Section 3 sets forth procedures and requirements for the imposition of such a delay. Additionally, section 3 provides that a financial institution and its officers, employees and designated reporters are immune from criminal, civil and administrative liability for: (1) making a report concerning the known or suspected exploitation of an older person or vulnerable person; (2) delaying a requested disbursement or transaction involving such exploitation pursuant to section 3; and (3) taking certain other actions relating to known or suspected exploitation of an older person or vulnerable person. Under existing law, a person who refuses to accept an acknowledged power of attorney, with certain exceptions, is subject to: (1) a court order mandating acceptance of the power of attorney; and (2) liability for reasonable attorney's fees and costs incurred in any action or proceeding that confirms the validity of the power of attorney or mandates acceptance of the power of attorney. (NRS 162A.370) Section 16.5 of this bill provides that a designated reporter who delays a requested disbursement or transaction pursuant to section 3 or certain other persons who make a report concerning the exploitation of an older person or vulnerable person are not required to accept an acknowledged power of attorney under certain circumstances. Section 16.3 of this bill prohibits a service provider from entering into or recording a service agreement with an owner of residential property that provides for the performance of the agreement more than 1 year from the date of the execution of the agreement if the service agreement: (1) purports to run with the land or bind future owners; (2) allows for the assignment of the right to provide service without requiring notice to and the agreement of the owner; or (3) purports to create a security interest in residential property. Section 16.3 provides that such a service agreement is void and unenforceable. Section 16.3 also: (1) provides that a county recorder may refuse to record such an agreement; (2) provides that any person who attempts to record such an agreement is guilty of a misdemeanor; and (3) authorizes a person with an interest in residential property subject to such a service agreement to bring a civil action. Additionally, section 16.3 requires a service provider that has entered into a service agreement on or before the passage and approval of this bill to record a notice of the service agreement with the county recorder of the county in which the real property that is subject to the service agreement is located. Finally, section 16.3 provides that a service provider who enters into or records a service agreement prohibited by section 16.3 is engaged in a deceptive trade practice. Existing law authorizes a person licensed as a real estate broker, real estate broker-salesperson or real estate salesperson to apply to the Real Estate Division of the Department of Business and Industry for a permit to engage in property management. (NRS 645.6052) A real estate broker who holds a permit to engage in property management is prohibited from acting as a property manager unless the broker has first obtained a property management agreement signed by the broker and the client for whom the broker will manage the property. (NRS 645.6056) Section 18 of this bill sets forth certain duties of a person who acts as a property manager when entering into a property management agreement and performing his or her duties pursuant to such agreement. Section 22 of this bill prohibits a property manager from waiving any of those duties. Section 23 of this bill authorizes a person who has suffered damages as the proximate result of a property manager's failure to perform any of those duties to bring an action against the property manager. Section 19 of this bill revises the definition of the term “agency” to include a relationship arising out of a property management agreement. Section 20 of this bill requires the Division to prepare and distribute certain forms to property managers. Existing law provides that if a real estate broker assigns different licensees affiliated with his or her brokerage to separate parties to a real estate transaction, the licensees are not required to obtain the written consent of each party to the transaction. (NRS 645.252, 645.253) Section 21 of this bill provides that property managers affiliated with a brokerage who are assigned to separate parties to a property management agreement are also not required to obtain such written consent. Existing law requires an applicant for a license as a mortgage company to state in the application: (1) for an applicant who is not a wholesale lender, the location of each principal office and branch office at which the mortgage company will conduct business in this State; and (2) the location of any principal office, office or other place of business located outside this State from which the mortgage company will conduct business in this State. Existing law also requires a mortgage company that will conduct business at one or more branch offices to apply for a license for each branch office. (NRS 645B.020) Section 24 of this bill authorizes an employee of a mortgage company, including, without limitation, a mortgage loan originator employed by or associated with the mortgage company, to conduct the business of the mortgage company at a remote location if authorized by the mortgage company. Section 24 defines “remote location” to mean, in general, any location, including the residence of an employee, that is not a location for which a license as a mortgage company has been issued. Section 24 sets forth certain requirements for a mortgage company to authorize an employee to conduct the business of the mortgage company at a remote location. Additionally, section 24 prohibits: (1) an employee from interacting with a customer in person at the residence of the employee; and (2) the maintenance of physical records at a remote location. Finally, section 24 requires: (1) a mortgage company to maintain certain records relating to business conducted at a remote location at its principal office or a branch office; and (2) the Commissioner of Mortgage Lending to adopt regulations governing the conducting of the business of a mortgage company at a remote location. Existing law requires each mortgage company to keep and maintain at each location where the mortgage company conducts business in this State records of all mortgage transactions made by the mortgage company at that location. (NRS 645B.080) Section 25 of this bill exempts a remote location from that requirement and instead requires a mortgage company to keep and maintain records of all mortgage transactions made by an employee at a remote location in accordance with the requirements established by the Commissioner of Mortgage Lending by regulation. Existing law requires a collection agency, not less than 60 days before taking any action to collect a medical debt, to send by registered or certified mail to the medical debtor written notification setting forth certain information. (NRS 649.366) Section 26 of this bill removes the requirement that the written notification be sent by mail that is registered or certified.

Statutes affected:
As Introduced: 657.150, 657.290, 675.020, 675.060, 675.120, 675.130, 675.210, 675.240, 603A.220
Reprint 1: 657.150, 657.290, 675.020, 675.060, 675.120, 675.130, 675.210, 675.240, 162A.370, 603A.220
Reprint 2: 657.150, 657.290, 675.020, 675.060, 675.120, 675.130, 675.210, 675.240, 162A.370, 603A.220
Reprint 3: 657.150, 657.290, 675.020, 675.060, 675.120, 675.130, 675.210, 675.240, 162A.370, 603A.220, 645.0045, 645.193, 645.253, 645.255, 645.257, 645B.080, 649.366
As Enrolled: 657.150, 657.290, 675.020, 675.060, 675.120, 675.130, 675.210, 675.240, 162A.370, 603A.220, 645.0045, 645.193, 645.253, 645.255, 645.257, 645B.080, 649.366
BDR: 657.150, 657.290, 675.020, 675.060, 675.120, 675.130, 675.210, 675.240, 603A.220