AB 150 — Revises provisions governing private professional guardians. (BDR 13-808)

- 79th Session (2017) – 5 – 3.

It is the purpose of this chapter to bring under public supervision [persons who] entities that are engaged in or [who] desire to engage in the business of a private professional guardian and to ensure that there is established in this State an adequate, efficient and competitive private professional guardian service available to the courts and the public at large.large.uardian service Sec.

Sec.

For the purposes of this chapter, the term does not include a [natural person or] business entity which engages in the business of a private professional guardian but which is exempt pursuant to NRS 159.0595 or 628B.110 from the requirement to have a license issued pursuant to this chapter.

- *AB150_R2* – 6 – Sec.

[A person wishing] An applicant for a license to engage in the business of a private professional guardian in this State must file with the Commissioner an application on a form - 79th Session (2017) – 6 – prescribed by the Commissioner, which must contain or be accompanied by such information as is required.

The applicant must also pay such reasonable additionalCommissioner expensesdeems incurrednecessary.in in the process of investigation as the Commissioner3. deems necessary.

3.

4.financial statement showing the assets, liabilities and net worth of the applicant [.] and each person who will be employed by the applicant as a private professional guardian pursuant to paragraph (a) of subsection 1 of NRS 159.0595.

Each5. application for a license must have attached to it a financial statement showing the assets, liabilities and net worth of the applicant [.] and each person who will be employed by the applicant as a private professional guardian pursuant to paragraph (a) of subsection 1 of NRS 159.0595.

- *AB150_R2* – 7 – 5.

- 79th Session (2017) – 7 – 6.

(a) The name adopted by the private professional guardian company, which must distinguish it from any other private professional guardian company formed or incorporated in this State or engaged in the business of a private professional guardian in this State;

Within 90 days after the application for a license is filed, the Commissioner shall investigate the facts of the application and the other requirements of this chapter to determine:

(a) That each person who will serve as a sole proprietor, partner of a partnership, member of a limited-liability company or director or officer of a corporation, [and] any person acting in a managerial [or case manager] capacity [,] or in a capacity in which he or she is authorized to make discretionary decisions on behalf of the applicant and any person who will be employed by the applicant as - *AB150_R2* – 8 – a private professional guardian pursuant to paragraph (a) of subsection 1 of NRS 159.0595, as applicable:

The applicant must submit satisfactory proof of those qualifications, including, without - 79th Session (2017) – 8 – limitation, evidence that the applicant has passed an examination for privateprivate(2) professionalHas guardiansnot specifiedbeen byconvicted theof, Commissioner.or entered a plea of guilty or nolo contendere to, a felony or any crime involving fraud, misrepresentation, material omission, misappropriation, conversion or moral turpitude.

(2) Has not been convicted of, or entered a plea of guilty or nolo contendere to, a felony or any crime involving fraud, misrepresentation, material omission, misappropriation, conversion or moral turpitude.

(4) Has not been a sole proprietor or an officer or member of the board of directors for an entity whose license issued pursuant to the provisions of this chapter was suspended or revoked within the 10 years immediately preceding the date of the application if, in the reasonable judgment of the Commissioner, there is evidence that the sole proprietor, officer or member materially contributed to the actions resulting in the suspension or revocation of the license.

(5) Has not been a sole proprietor or an officer or member of the board of directors for an entity whose license as a private professional guardian company which was issued by any other state, district or territory of the United States or any foreign country was suspended or revoked within the 10 years immediately preceding the date of the application if, in the reasonable judgment of theg the Commissioner, there is evidence that the sole proprietor, officer or member materially contributed to the actions resulting in the suspension or revocation of the license.

- *AB150_R2* – 9 – (d) That, except as otherwise provided in NRS 628B.540, the initialNRS surety159.065.ty bond is not less than the amount required by NRS2. 159.065.

2.

- 79th Session (2017) – 9 – (a) The proposed markets to be served and, if they extend outside this State, any exceptional risk, examination or supervision concerns associated with those markets;

(b) Whether the proposed organizational and equity structure and the amount of initial equity or fidelity and surety bonds of the applicant appear adequate in relation to the proposed business andandhe markets, including, without limitation, the average level of assets under guardianship projected for each of the first 3 years of operation;

A private professional guardian company shall, within 5 business days after a change occurs in the chief executive officer, managing member , [or] a majority of the directors or managingmanagingicer, directors of the company [occurs,] or the employment of any private professional guardian, report the change to the Commissioner.

- *AB150_R2* – 10 – 4.

The application must be submitted on a form - 79th Session (2017) – 10 – prescribed by the Commissioner.

The Commissioner shall conduct an investigation pursuant to NRS 628B.330 to determine whether the person has a good reputation for honesty, trustworthiness and integrity and is competent to control the private professional guardiangeneral companypublic.y in a manner which protects the interests of the general5. public.

5.

(b) Have available at the office a private professional guardian who meets the requirements set forth in paragraph (a) ofofal guardian subsection 1 of NRS 159.0595 and is [licensed pursuant to this chapter,] a permanent resident of this State and at least 21 years of age;

- *AB150_R2*79th Session (2017) – 11 – (f) Have available all services to residents of this State which are consistent with the business plan of the private professional guardian company included with the application for a license;

and (g) Comply with any other requirements specified by the Commissioner.ComSec.

Sec.13.r.

13.

For each branch location of a private professional guardian company organized under the laws of this State, and every branch location in this State of a foreign private professional guardian company authorized to do business in this State, a request for approval and licensing must be filed with the Commissioner on formsmore prescribedthan $500, as provided by the Commissioner.Commissioner, must accompanyt each request.

A nonrefundable fee of not more than $500, as provided by the Commissioner, must accompany each request.

The Commissioner may require a private professional guardian company to maintain equity, fidelity and surety bonds in amounts that are more than the minimum required - 79th Session (2017) – 12 – initially or at any subsequent time based on the Commissioner’s assessment of the risks associated with the business plan of the - *AB150_R2* – 12 – private professional guardian or other information contained in the application, the Commissioner’s investigation of the application or any examination of or filing by the private professional guardian company thereafter, including, without limitation, any examination before the opening of the business.

(i) The reasonableness of business plans for retaining or acquiringacq(j) The adequacy of fidelity and surety bonds and any additional equityinsurance capital;proposed to be obtained by the private professional guardian company for the purpose of protecting its fiduciary assets;

(j) The adequacy of fidelity and surety bonds and any additional insurance proposed to be obtained by the private professional guardian company for the purpose of protecting its fiduciary assets;

[The director or manager of a] A private professional guardian company shall require fidelity bonds in the amount of at least $25,000 on [the sole proprietor or each active officer, manager, member acting in a managerial or case manager capacity and - 79th Session (2017) – 13 – employee,] each natural person who acts in any capacity within the private professional guardian company [regardless of whether the person receives a salary or other compensation from the private professional guardian company,] to indemnify the company against - *AB150_R2* – 13 – loss due to any dishonest, fraudulent or criminal act or omission by a person upon whom a bond is required pursuant to this section whowhoby acts alone or in combination with any other person.

7.professional guardian company during the term of the license or a renewal thereof.

The bond must cover all matters placed with the private professional guardian company during the term of the license or a renewal thereof.

- 79th Session (2017) – 14 – 2.

(b)pecuniary Acquireinterest anadverse ownership,to possessory,the ward., security or other pecuniary(c) interestBe adverseknowingly todesignated as a beneficiary on any life insurance policy or pension or benefit plan of the ward.ward unless such designation was validly made by the ward before the adjudication of the person’s incapacity.

- *AB150_R2* – 14 – (c) Be knowingly designated as a beneficiary on any life insurance policy or pension or benefit plan of the ward unless such designation was validly made by the ward before the adjudication of the person’s incapacity.

If a private professional guardian does not [hold a current license,] meet the requirements set forth in NRS 159.0595, the court must replace the guardian until such time as the private professional guardianguardiane the [obtains the necessary license.] meets such requirements.

Each guardianship account must be maintained in an insured bank or credit union located in this State, be held in a name which is - 79th Session (2017) – 15 – sufficient to distinguish it from the personal or general checking account of the [licensee] private professional guardian company and be designated as a guardianship account.

Each guardianship account must at all times account for all money received for the benefit of the ward and account for all money dispersed for the benefit of the ward, and no disbursement may be made from the account except as authorized under chapter 159 of NRS or as authorized by court order.

- *AB150_R2* – 15 – 2.

5.company has violated a provision of this chapter, the Commissioner or his or her designee may conduct additional examinations to determine whether a violation has occurred.

If there is evidence that a private professional guardian company has violated a provision of this chapter, the Commissioner or his or her designee may conduct additional examinations to determine whether a violation has occurred.

If the Commissioner determines that the records of a [licensee] private professional guardian company are not maintained in accordance with subsections 1 and 2, the Commissioner may require the [licensee] private professional guardian company to submit, within 60 days, an audited financial statement prepared from the records of the [licensee] private professional guardian company by a certified public accountant - 79th Session (2017) – 16 – who holds a certificate to engage in the practice of public accounting in this State.

8.professional guardian company must provide to the Divisionvate copies of any documents reviewed during an examination conducted by the Commissioner or his or her designee pursuant to subsection 4, 5 or 6.

Upon the request of the Division, a [licensee] private professional guardian company must provide to the Division copies of any documents reviewed during an examination conducted by the Commissioner or his or her designee pursuant to subsection 4, 5 or 6.

- *AB150_R2* – 16 – 9.

2.

At the conclusion of a hearing, the Commissioner shall:

- 79th Session (2017) – 17 – 3.

(b) The [licensee] private professional guardian company has violated any provision of this chapter or any regulation adopted pursuant thereto or any lawful order of the Commissioner;

or - *AB150_R2* – 17 – (e) The [licensee:] private professional guardian company:

An order suspending or revoking a license becomes effective 5 days after being entered unless the order specifies otherwise or a stay is granted.

Use the term “private professional guardian” or “guardianshipbusiness services”name.services” as a part of [his or her] the person’s business2. name.

2.

If the Commissioner determines that [an unlicensed] a person who does not meet the requirements set forth in NRS 159.0595 is engaged in [an] any activity [for which a license is - 79th Session (2017) – 18 – required pursuant to this chapter,] relating to service as a private professional guardian, the Commissioner shall:

If a person upon whom an order to cease and desist is served pursuant to subsection 2 does not comply with the order within 30 days after the service of the order, the Commissioner shall, after providingpro(a) toImpose upon the person notice and an opportunityadministrative forfine aof hearing:$10,000;

(a)or Impose(b) Enter into a written agreement with the person pursuant to which the person agrees to cease and desist from engaging in any activity in this State [for which a license is required] relating to [the business of] service as a private professional guardian and impose upon the person an administrative fine of $10,000;not less than $5,000 and not more than $10,000.

or (b) Enter into a written agreement with the person pursuant to which the person agrees to cease and desist from engaging in any activity in this State [for which a license is required] relating to [the - *AB150_R2* – 18 – business of] service as a private professional guardian and impose upon the person an administrative fine of not less than $5,000 and not more than $10,000.

The Commissioner shall bring suit in the name and on behalf of the State of Nevada against a person upon whom an administrative fine is imposed pursuant to subsection 3 to recover the amount of the administrative fine if:

(Deleted by amendment.) H~~~~~ 17 - *AB150_R2*79th Session (2017)