AB 305 — Revises provisions relating to certain financial transactions. (BDR 56-1060)

and- *AB305_R1* – 4 – (b) SuchAn open-end account must be established for the consumer and the amount of each cash advance made to the consumer and any interest, charges and other informationcosts asmust be debited to that account and any payments on the Commissionerloan mayor requireother bycredits regulation.must be credited to that account;

3.(c) The interest and other charges must be computed periodically on the unpaid balance in the consumer’s account;

Eachand applicant(d) forThe initialconsumer registrationmay aspay a presettlement funding provider shall submit with the application a complete set of his or her fingerprintsaccount andin writtenfull permissionat authorizingany thetime Departmentwithout ofa Financialpenalty Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevadaprepayment. Records of Criminal History for submission to the Federal Bureau of Investigation for its report.

4.2.

RegistrationThe as a presettlement funding providercontract expiresmust oncontain Decembera 31statement of eachthe yearmaximum andamount the consumer may be renewedobligated uponto submissionpay ofunder an application for renewal containing such information as the Commissionerpresettlement mayfunding requirecontract. by regulation.

- *AB305* – 4 – 5.

The Commissioner shall establish by regulation fees for the issuance and renewal of registration as a presettlement funding provider in an amount necessary to cover the costs of carrying out sections 2 to 15, inclusive, of this act.

13.11.3.

InA additionlicensee towho theis requirementsa setpresettlement forthfunding inprovider sectionshall 12not ofenter thisinto act, a naturalpresettlement personfunding whotransaction applieswith fora registrationconsumer orif the renewalannual ofpercentage registrationrate ascharged aby the presettlement funding provider shall:is more than 40 percent.

(a) Include the social security number of the applicant in the application submitted to the Commissioner;

and (b) Submit to the Commissioner the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520.

The statement must be completed and signed by the applicant.

The Commissionerinterest shallcharged includein a presettlement funding transaction must be calculated in the statementmanner requiredset pursuantforth toin paragraph (a) or (b) of subsection 1 in:of NRS 675.363.

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

or (b) A separate form prescribed by the Commissioner.

RegistrationIf, aspursuant to a presettlement funding providercontract: may not be issued or renewed by the Commissioner if the applicant:

(a) FailsThe toconsumer submitreceives cash advances in periodic installments or the statementpresettlement requiredfunding pursuantprovider topays subsectionout 1;money the billing cycle must be monthly.his or her behalf periodically, (b) The consumer receives a cash advance in a single lump consumer’s direction or on his or her behalf in a single lump sum, the billing cycle must be at least annually.

or (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a enforcing the order for the repayment of the amount owedgency pursuant to the order.

IfAll anaspects applicantof indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a courtpresettlement orderfunding fortransaction, theincluding, supportwithout oflimitation, ainterest childcalculations, andmust iscomply not in compliance with the orderTruth orin aLending planAct approvedand byRegulation theZ. district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

14.11.4.

In addition to the interest allowed pursuant to section 11.3 of this act, a licensee who is a presettlement funding provider may, pursuant to the presettlement funding contract, receive from the consumer or add to the unpaid balance in that consumer’s account any applicable fee or charge set forth in NRS 675.365.

Sec.

11.5.

If the Commissioneraccount receivesof a copyconsumer ofon a courtpresettlement orderfunding issuedtransaction pursuantshows toa NRSbalance 425.540due thator providesif forany thedebits suspensionor ofcredits allwere professional,entered occupationalon andthat recreationalaccount licenses,during certificates and permits issued to a personbilling whocycle, is registered as a presettlement funding provider, the Commissionerlicensee shall deemfurnish the registration issued to that person to be suspended at the endconsumer, ofwithin thea 30threasonable daytime after the dateend onof which the courtbilling ordercycle, was - *AB305* – 5 – issued unless the Commissioner receives a letterwritten issuedstatement tosetting theforth: registrant by the district attorney or other public agency pursuant to NRS 425.550 stating that the registrant has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

- *AB305_R1* – 5 – (a) The total amount borrowed on his or her account at the beginning of the billing cycle;

(b) The date and amount of any advances made on the account during the billing cycle;

(c) Any payments or other credits made or received on the account during the billing cycle, if any;

(d) The amount of interest and other charges, if any, made on the account during the billing cycle;

(e) The amount of the installment due and the date on which that payment must be received;

and (f) The total amount remaining unpaid in the account at the end of that billing cycle.

The Commissionertotal shallamount reinstateremaining theunpaid registrationin ofthe aaccount presettlementat fundingthe providerend thatof hasthe beenbilling suspendedcycle bymust anot districtat courtany pursuanttime toexceed NRS 425.540 if the Commissionermaximum receivesamount a letter issued by the districtconsumer attorneymay orbe otherobligated public agency pursuant to NRSpay 425.550under to the personpresettlement whosefunding registrationcontract wasless suspendedany statingand thatall thepayments personand whoseother registrationcredits wasreceived suspendedon has complied with the subpoenaaccount. or warrant or has satisfied the arrearage pursuant to NRS 425.560.

15.11.6.

A licensee who is a presettlement funding provider shall not:

APay presettlementa fundingcommission provideror shallother notform enterof intoconsideration ato presettlementan fundingattorney transactionor withmedical aprovider consumerfor ifreferring thea annualconsumer percentageto rate charged by the presettlement funding providerprovider; is more than 40 percent.

ForRefer thea purposesconsumer ofto thisengage section,a thespecific annualattorney percentageor ratemedical chargedpro3.derKnowingly byprovide thepresettlement funding to a consumer who has previously entered into a presettlement funding providertra4.actInfluence mustor beattempt calculatedto ininfluence accordanceany decisions with therespect Truthto inthe Lendinglegal Actaction andof Regulationthe Z.consumer;

3.5.

AEnter into a presettlement funding contract enteredin intowhich inthe violationamount ofto thisbe sectionpaid to the presettlement funding provider is void.determined as a percentage of the recovery of the legal claim of a consumer;

or 6.

Refinance, roll over or extend a presettlement funding contract if such action results in compounding interest or interest exceeding an annual percentage rate of 40 percent.

11.7.

In addition to any other remedy or penalty, if a licensee who is a presettlement funding provider willfully:

1.

Enters into a presettlement funding contract for an amount of interest or any other charge or fee that violates the provisions of sections 2 to 11.7 of this act or any regulation adopted pursuant thereto;

2.

Demands, collects or receives an amount of interest or any other charge or fee that violates the provisions of sections 2 to 11.7 of this act or any regulation adopted pursuant thereto;

or - *AB305_R1* – 6 – 3.

Commits any other act or omission that violates the provisions of sections 2 to 11.7 of this act or any regulations adopted pursuant thereto,  the presettlement funding contract is void and the licensee is not entitled to collect, receive or retain any interest or other charges or fees with respect to the presettlement funding contract other than the return of the principal.

Sec.

11.8.

NRS 675.330 is hereby amended to read as follows:

675.330 The payment of money, credit, goods or things in action, as consideration for any sale, assignment or order for the payment of wages, salary, commissions or other compensation for services earned or to be earned [,] or as consideration for an assignment or conveyance of the contingent right to receive the potential proceeds or part thereof of a settlement, insurance payment or award of damages obtained in a legal action, shall, for the purposes of regulation under this chapter, be deemed a loan of money secured by the sale, assignment or order.

The amount by which the compensation so sold, assigned or ordered paid exceeds the amount of the consideration actually paid shall, for the purposes of regulation under this chapter, be deemed interest or charges on the loan from the date of the payment to the date the compensation is payable.

Such a transaction is subject to the provisions of this chapter.

Sec.

12.

(Deleted by amendment.) Sec.

13.

(Deleted by amendment.) Sec.

14.

(Deleted by amendment.) Sec.

15.

(Deleted by amendment.) Sec.

2.c.SectionsSec. 13 and 14 of this act expire by limitation on the date on which the provisions of 42 U.S.C.

§17. 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

(a)(Deleted Haveby failedamendment.) toH comply- with*AB305_R1* a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child;

or (b) Are in arrears in the payment for the support of one or more children,  are repealed by the Congress of the United States.

H - *AB305*