Nevada 2017 Regular Session Status: Enacted

AB 262 — Revises provisions relating to contracts for the sale of vehicles. (BDR 52-937)

Last action — Approved by the Governor. Chapter 169.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 07, 2017. Enacted.

Prognosis

Advancing 50% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

390 added · 419 removed

Plain-language change summary

The updated version of Assembly Bill No. 262 introduces new rules that make it unlawful for sellers to engage in deceptive practices when selling vehicles, including repossessing a vehicle from a buyer who has not defaulted on their payment. Additionally, it changes the requirements for surety bonds, mandating that these bonds now need to be filed with the Department of Motor Vehicles and that the surety must appoint the Commissioner of the Department as the agent for any legal notices. These changes aim to provide better protection for consumers against unfair practices in the vehicle sales industry.

→
Previous
Latest
(Reprinted with amendments adopted on April 24, 2017) FIRST REPRINT A.B.
Assembly Bill No.
262 A SSEMBLY B ILLN O.
262–Assemblyman Carrillo CHAPTER..........
262–A SSEMBLYMAN C ARRILLO M ARCH 7, 2017 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to contracts for the sale of vehicles.
(BDR 52-937) FISCAL NOTE:
Effect on Local Government:
No.
Effect on the State:
No.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
Existing law defines certain conduct by a person who is engaging in his or her business or occupation as a deceptive trade practice.
business or occupation as a deceptive trade practice.
(NRS 598.092) Section 3 of this bill adds to the list of conduct that is considered a deceptive trade practice a any act against a consumer who contracted with the person for the sale of a vehicle which entitles the consumer to certain remedies provided in law pursuant to the Uniform Commercial Code.
(NRS 598.092) Section 3 ofer this bill adds to the list of conduct that is considered a deceptive trade practice a person:
(NRS 104.9625) Existing law requires certain brokers, dealers, special dealers, rebuilders, distributors and manufacturers of vehicles and dealers, lessors and manufacturers of off-highway vehicles to procure and file with the Department of Motor Vehicles a bond, which is a prerequisite to licensure by the Department.
(1) repossessing a vehicle from a debtor before default;
The surety issuing the notice or process in any action upon the bond.
or (2) committing any act against a consumer who contracted with the person for the sale of a vehicle which entitles the consumer to certain remedies provided in law pursuant to the Uniform Commercial Code.
(NRS 482.3333, 482.345, 490.278)ce of Sections 7-9 of this bill instead require the surety to appoint the Commissioner of Insurance as its agent.
(NRS 104.9625) distributors and manufacturers of vehicles and dealers, lessors and manufacturers of off-highway vehicles to procure and file with the Department of Motor Vehicles a bond, which is a prerequisite to licensure by the Department.
Sections 7-9 also add to the description of the uses of the bond by a consumer to include violations of the chapters of NRS governing:
The surety issuing the bond is required to appoint the Secretary of State as its agent to accept service of notice or process in any action upon the bond.
(1) particular cases concerning persons, including, without limitation, certain acts of fraud against a consumer;
(NRS 482.3333, 482.345, 490.278) Sections 7-9 of this bill instead require the surety to appoint the Commissioner of bond by a consumer to include violations of the chapters of NRS governing:es of the (1) particular cases concerning persons, including, without limitation, certain acts of fraud against a consumer;
(3) practices.
(3) the Uniform Commercial Code, as adopted in NRS;
Section 7 also adds to the list of the uses of the bond by a consumer - *AB262_R1* – 2 – against a broker to include conversion, negligent misrepresentation and abuse of process by the broker.
and (4) deceptive trade practices.
Section 7 also adds to the list of the uses of the bond by a consumer process by the broker.clude conversion, negligent misrepresentation and abuse of EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
Section 1.
Sections 1 and 2.
2.
(Deleted by amendment.) Sec.
2.
- 79th Session (2017) – 2 – 2.
3.
are needed when no such services, replacement parts or repairs arers actually needed.
Knowingly states that services, replacement parts or repairs are needed when no such services, replacement parts or repairs are actually needed.
or (g) Represents that he or she is licensed by an agency of the State to sell or offer for sale investments or services for investments if he or she is not so licensed.
or (g) Represents that he or she is licensed by an agency of the State to sell or offer for sale investments or services for investments if 6.
6.
orCharges a fee for advice with respect to investment of money and fails to disclose:
Charges a fee for advice with respect to investment of money and fails to disclose:
(a) That he or she is selling or offering to lease goods or services and, if he or she is, their identity;
- *AB262_R1* – 3 – (a) That he or she is selling or offering to lease goods or services and, if he or she is, their identity;
9.
- 79th Session (2017) – 3 – 9.
Fails, in a consumer transaction that is rescinded, cancelled or otherwise terminated in accordance with the terms of an agreement, advertisement, representation or provision of law, to promptly restore to a person entitled to it a deposit, down payment or other payment or, in the case of property traded in but not available, the agreed value of the property or fails to cancel within a specified time or an otherwise reasonable time an acquired security interest.
Fails, in a consumer transaction that is rescinded, cancelled or otherwise terminated in accordance with the terms of an agreement, advertisement, representation or provision of law, to promptly restore to a person entitled to it a deposit, down payment available, the agreed value of the property or fails to cancel within a specified time or an otherwise reasonable time an acquired security interest.
or (c) Posting in an open and conspicuous place a sign at least 8 by 10 inches in size with boldface letters, ¬ specifying that no refunds or exchanges are allowed.
or (c) Posting in an open and conspicuous place a sign at least 8 by inches in size with boldface letters, ¬ specifying that no refunds or exchanges are allowed.
[12.] 14.
inability reasonably to protect his or her own rights or interests in a consumer transaction when such an inability is due to illiteracy, or to a mental or physical infirmity or another similar condition which manifests itself as an incapability to understand the language or terms of any agreement.
Knowingly takes advantage of another person’s inability reasonably to protect his or her own rights or interests in a consumer transaction when such an inability is due to illiteracy, or to a mental or physical infirmity or another similar condition which - *AB262_R1* – 4 – manifests itself as an incapability to understand the language or terms of any agreement.
Secs.
Sec.
4-6.
4.
5.
(Deleted by amendment.) Sec.
Show all 75 changed rows (35 more)
Previous
Latest
6.
(Deleted by amendment.) Sec.
Before a person may be licensed as a broker, the person must procure and file with the Department a good and sufficient bond in the amount of $100,000 with a corporate surety thereon licensed to do business within the State of Nevada, approved as to form by the Attorney General, and conditioned that the applicant shall conduct business as a broker without breaching a consumer contract or engaging in a deceptive trade practice, fraud or fraudulent representation, and without violation of the provisions of this chapter.
Before a person may be licensed as a broker, the person must procure and file with the Department a good and sufficient bond in the amount of $100,000 with a corporate surety thereon licensed to do business within the State of Nevada, approved as to form by the Attorney General, and conditioned that the applicant shall conduct business as a broker without breaching a consumer contract or engaging in a deceptive trade practice, fraud or - 79th Session (2017) – 4 – fraudulent representation, and without violation of the provisions of this chapter.
The Department may allow a broker who provides services for more than one category of vehicle described in subsection 1 of NRS 482.345 at a principal place of business or at any branch location within the same county as the principal place of business to provide a good and sufficient bond for a single category of vehicle and may consider that single bond sufficient coverage to include all other categories of vehicles.
The Department may allow a broker who provides services for more than one category of vehicle described in subsection 1 of location within the same county as the principal place of business to provide a good and sufficient bond for a single category of vehicle and may consider that single bond sufficient coverage to include all other categories of vehicles.
¬ The surety issuing the bond shall appoint the [Secretary of State] Commissioner of Insurance as its agent to accept service of notice or process for the surety in any action upon the bond brought in a court of competent jurisdiction or brought before the Director.
Commissioner of Insurance as its agent to accept service of noticee] or process for the surety in any action upon the bond brought in a court of competent jurisdiction or brought before the Director.
- *AB262_R1* – 5 – 6.
6.
(b) Apply to the Director, for good cause shown, for compensation from the bond.
- 79th Session (2017) – 5 – (b) Apply to the Director, for good cause shown, for compensation from the bond.
(c) Settle the matter with the broker or employee.
settlement is made, the settlement must be reduced to writing,a signed by both parties and acknowledged before any person authorized to take acknowledgments in this State, and submitted to the Director with a request for compensation from the bond.
If such a settlement is made, the settlement must be reduced to writing, signed by both parties and acknowledged before any person authorized to take acknowledgments in this State, and submitted to the Director with a request for compensation from the bond.
Before any dealer’s license, dealer’s plate, special dealer’s plate, rebuilder’s license or rebuilder’s plate, distributor’s license or distributor’s plate or manufacturer’s license or manufacturer’s plate is furnished to a manufacturer, distributor, dealer or rebuilder as provided in this chapter, the Department shall require that the applicant make an application for such a license and plate upon a form to be furnished by the Department, and the applicant shall furnish such information as the Department requires, including proof that the applicant has an established place of business in this State, procure and file with the Department a good and sufficient bond with a corporate surety thereon, duly licensed to - *AB262_R1* – 6 – do business within the State of Nevada, approved as to form by the Attorney General, and conditioned that the applicant or any employee who acts on behalf of the applicant within the scope of his or her employment shall conduct business as a dealer, distributor, manufacturer or rebuilder without breaching a consumer contract or engaging in a deceptive trade practice, fraud or fraudulent representation, and without violation of the provisions of this chapter.
Before any dealer’s license, dealer’s plate, special dealer’s plate, rebuilder’s license or rebuilder’s plate, distributor’s license or distributor’s plate or manufacturer’s license or manufacturer’s plate is furnished to a manufacturer, distributor, dealer or rebuilder as provided in this chapter, the Department shall plate upon a form to be furnished by the Department, and thecense and applicant shall furnish such information as the Department requires, including proof that the applicant has an established place of business in this State, procure and file with the Department a good and sufficient bond with a corporate surety thereon, duly licensed to do business within the State of Nevada, approved as to form by the Attorney General, and conditioned that the applicant or any employee who acts on behalf of the applicant within the scope of his or her employment shall conduct business as a dealer, distributor, manufacturer or rebuilder without breaching a consumer contract or engaging in a deceptive trade practice, fraud or fraudulent representation, and without violation of the provisions of this chapter.
(a) For a manufacturer, distributor, rebuilder or dealer who manufactures, distributes or sells motorcycles, $50,000.
- 79th Session (2017) – 6 – (a) For a manufacturer, distributor, rebuilder or dealer who manufactures, distributes or sells motorcycles, $50,000.
(c) For a manufacturer, distributor, rebuilder or dealer who sells travel trailers or other dual purpose trailers that include living quarters in their design, $100,000.
travel trailers or other dual purpose trailers that include livinglls quarters in their design, $100,000.
4.
aggregate liability on the bond must be limited to the payment of the total amount of the bond.
The bond must be continuous in form, and the total aggregate liability on the bond must be limited to the payment of the total amount of the bond.
The undertaking on the bond is for the use and benefit of the consumer and includes any breach of a consumer contract, deceptive trade practice, fraud, fraudulent representation or violation of any of the provisions of this chapter or chapter 41, 97, 104, 104A or 598 of NRS by the representative of any licensed distributor or the salesperson of any licensed dealer, manufacturer or rebuilder who - *AB262_R1* – 7 – acts for the dealer, distributor, manufacturer or rebuilder on his or her behalf and within the scope of the employment of the representative or salesperson.
The undertaking on the bond is for the use and benefit of the consumer and includes any breach of a consumer contract, deceptive trade practice, fraud, fraudulent representation or violation of any of the provisions of this chapter or chapter 41, 97, 104, 104A or 598 of NRS by the representative of any licensed distributor or the salesperson of any licensed dealer, manufacturer or rebuilder who acts for the dealer, distributor, manufacturer or rebuilder on his or her behalf and within the scope of the employment of the representative or salesperson.
The bond must provide that it is for the use and benefit of any consumer of the dealer, distributor, rebuilder, manufacturer, representative or salesperson for any loss or damage established, including, without limitation:
The bond must provide that it is for the use and benefit of any consumer of the dealer, distributor, rebuilder, manufacturer, - 79th Session (2017) – 7 – representative or salesperson for any loss or damage established, including, without limitation:
(c) Incidental damages;
(d) Statutory damages;;
(d) Statutory damages;
(b) Apply to the Director, for good cause shown, for compensation from the bond.
(b) Apply to the Director, for good cause shown, for amount of compensation and the consumer to whom it is to be paid.
The Director may determine the amount of compensation and the consumer to whom it is to be paid.
If the Director determines that the settlement was reached in good faith and there is no evidence of collusion or fraud between the parties in reaching the - *AB262_R1* – 8 – settlement, the surety shall make the payment to the consumer in the amount agreed upon in the settlement.
If the Director determines that the settlement was reached in good faith and there is no evidence of collusion or fraud between the parties in reaching the settlement, the surety shall make the payment to the consumer in the amount agreed upon in the settlement.
Any judgment entered by a court in favor of a consumer and against a dealer, distributor, rebuilder, manufacturer, representative or salesperson may be executed through a writ of attachment, garnishment, execution or other legal process, or the consumer in whose favor the judgment was entered may apply to the Director for compensation from the bond of the dealer, distributor, rebuilder, manufacturer, representative or salesperson.
Any judgment entered by a court in favor of a consumer and against a dealer, distributor, rebuilder, manufacturer, representative - 79th Session (2017) – 8 – or salesperson may be executed through a writ of attachment, garnishment, execution or other legal process, or the consumer in whose favor the judgment was entered may apply to the Director for compensation from the bond of the dealer, distributor, rebuilder, man9.actThe Department shall not issue a license or plate pursuant to subsection 1 to a manufacturer, distributor, rebuilder or dealer who does not have and maintain an established place of business in this State.
9.
The Department shall not issue a license or plate pursuant to subsection 1 to a manufacturer, distributor, rebuilder or dealer who does not have and maintain an established place of business in this State.
The Department may, pursuant to a written agreement with any off-highway vehicle dealer, long-term or short-term lessor or manufacturer who has been licensed to do business in this State for at least 5 years, allow a reduction in the amount of the bond of the off-highway vehicle dealer, lessor or manufacturer if such business has been conducted in a manner satisfactory to the Department for the preceding 5 years.
The Department may, pursuant to a written agreement with manufacturer who has been licensed to do business in this State for at least 5 years, allow a reduction in the amount of the bond of the off-highway vehicle dealer, lessor or manufacturer if such business has been conducted in a manner satisfactory to the Department for the preceding 5 years.
The undertaking on the bond includes any breach of a consumer contract, deceptive trade practice, fraud, fraudulent representation or violation of any of the provisions of this chapter or - *AB262_R1* – 9 – chapter 41, 97, 104, 104A or 598 of NRS by the representative or off-highway vehicle salesperson of any licensed off-highway vehicle dealer, long-term or short-term lessor or manufacturer who acts on behalf of the off-highway vehicle dealer, lessor or manufacturer and within the scope of the employment of the representative or off-highway vehicle salesperson.
The undertaking on the bond includes any breach of a consumer contract, deceptive trade practice, fraud, fraudulent representation or violation of any of the provisions of this chapter or chapter 41, 97, 104, 104A or 598 of NRS by the representative or off-highway vehicle salesperson of any licensed off-highway - 79th Session (2017) – 9 – vehicle dealer, long-term or short-term lessor or manufacturer who acts on behalf of the off-highway vehicle dealer, lessor or manufacturer and within the scope of the employment of the representative or off-highway vehicle salesperson.
5.
of the off-highway vehicle dealer, long-term or short-term lessor,n manufacturer, representative or off-highway vehicle salesperson in violation of any provision of this chapter may apply to the Director, for good cause shown, for compensation from the bond.
The bond must provide that any person injured by the action of the off-highway vehicle dealer, long-term or short-term lessor, manufacturer, representative or off-highway vehicle salesperson in violation of any provision of this chapter may apply to the Director, for good cause shown, for compensation from the bond.
(2) A judgment other than on the merits against the off- highway vehicle dealer, lessor, manufacturer, representative or off- highway vehicle salesperson, including, without limitation, a default judgment, the judgment is binding on the surety only if the surety was given notice and an opportunity to defend at least 20 days before the date on which the judgment was entered against the off- highway vehicle dealer, lessor, manufacturer, representative or off- highway vehicle salesperson.
(2) A judgment other than on the merits against the off- highway vehicle dealer, lessor, manufacturer, representative or off- highway vehicle salesperson, including, without limitation, a default judgment, the judgment is binding on the surety only if the surety was given notice and an opportunity to defend at least 20 days before the date on which the judgment was entered against the off- highway vehicle dealer, lessor, manufacturer, representative or off- hig(b) Apply to the Director, for good cause shown, for compensation from the bond.
(b) Apply to the Director, for good cause shown, for compensation from the bond.
- *AB262_R1* – 10 – 7.
- 79th Session (2017) – 10 – 7.
Any judgment entered by a court against an off-highway vehicle dealer, long-term or short-term lessor, manufacturer, representative or off-highway vehicle salesperson may be executed through a writ of attachment, garnishment, execution or other legal process, or the person in whose favor the judgment was entered may apply to the Director for compensation from the bond of the off- highway vehicle dealer, lessor, manufacturer, representative or off- highway vehicle salesperson.
Any judgment entered by a court against an off-highway vehicle dealer, long-term or short-term lessor, manufacturer, representative or off-highway vehicle salesperson may be executed through a writ of attachment, garnishment, execution or other legal apply to the Director for compensation from the bond of the off-ay highway vehicle dealer, lessor, manufacturer, representative or off- highway vehicle salesperson.
The Department shall not issue a license pursuant to subsection 1 to an off-highway vehicle dealer, long-term or short- established place of business in this State.e and maintain an 9.
The Department shall not issue a license pursuant to subsection 1 to an off-highway vehicle dealer, long-term or short- term lessor or manufacturer who does not have and maintain an established place of business in this State.
9.
H - *AB262_R1*
~~~~~ 17 - 79th Session (2017)
⬇ Download PDF
View plain text versions (3)

Action History

  1. Approved by the Governor. Chapter 169.

  2. Enrolled and delivered to Governor.

  3. In Assembly. To enrollment.

  4. Read third time. Passed. Title approved. (Yeas: 21, Nays: None.) To Assembly.

  5. Read second time.

  6. Placed on Second Reading File.

  7. From committee: Do pass.

  8. Read first time. Referred to Committee on Commerce, Labor and Energy. To committee.

  9. In Senate.

  10. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 42, Nays: None.) To Senate.

  11. From printer. To engrossment. Engrossed. First reprint .

  12. Read second time. Amended. (Amend. No. 554.) To printer.

  13. Placed on Second Reading File.

  14. From committee: Amend, and do pass as amended.

  15. From printer. To committee.

  16. Read first time. Referred to Committee on Commerce and Labor. To printer.

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 66 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

Show all 66 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

transportation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors AB 262?
AB 262 is sponsored by Richard Carrillo.
What is the current status of AB 262?
This bill has been enacted into law. Introduced March 07, 2017. Enacted.
Where can I track AB 262?
Track AB 262 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on AB 262

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of AB 262

Last checked for changes 2 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →