AB 112 — Revises provisions relating to compromised claims of a minor. (BDR 3-806)

A.B.Assembly Bill No.

112112–Assemblymen AMarzola SSEMBLYand BILLYeager NCHAPTER.......... O.

112–ASSEMBLYMEN M ARZOLA AND Y EAGER FEBRUARY 11, 2021 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to compromised claims of a minor.

(BDR 3-806) 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.

LegExistingLegislative lawCounsel’s providesDigest: that if an unemancipated minor has a disputed claim for money against a third person, the parent or guardian of the minor has the right to compromise the claim by filing a verified petition in writing with the appropriate district court.

TheExisting petitionlaw mustprovides providethat if an apportionmentunemancipated ofminor has a disputed claim for money against a third person, the totalparent proceedsor guardian of the proposedminor compromise,has includingthe allright feesto andcompromise expensesthe owedclaim fromby filing a verified petition in writing with the totalappropriate proceeds.district court.

IfThe the petition ismust approvedprovide byan theapportionment district court, with the proceeds of the fortotal theproceeds benefit of theproceeds. minor, which means a savings account, a certificate of deposit, a United States savings bond, a fixed or variable annuity contract, or another reliable investment that is approved by the court.

(NRSIf 41.200)the Thispetition billis providesapproved that:by the district court, with the proceeds of the compromise, the parent or guardian must establish a blocked financial investment for the benefit of the minor, which means a savings account, a certificate of deposit, a United States savings bond, a fixed or variable annuity contract, or another reliable investment that is approved by the court.

(1)(NRS if41.200) the net proceeds of the compromise are $2,500 or less, according to the required apportionment of fees and expenses in the petition,petition,r the parent or guardian is not required to establish a blocked financial investment and may use the proceeds at his or her discretion for the benefit of the minor, in compliance with any terms or conditions ordered by the court;

and (2) the court in may, at its discretion, close the case.

This bill also revises the definition of the term “blocked financial investment”institution, as opposed to allowonly a savingsdepository accountinstitution.ablished to be established in any financialEXPLANATION institution,– asMatter opposedin tobolded onlyitalics ais depositorynew; institution.

-matter *AB112*between –brackets 2[omitted –material] THEis PEOPLEmaterial OFto THEbe STATEomitted. OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

(b)- The81st factsSession which(2021) – 2 – section, including:ich bring the minor within the purview of this section,(1) including:The circumstances which make it a disputed claim for money;

(1) The circumstances which make it a disputed claim for money;

(e) The name and residence of the petitioner and the relationship of (f) The total amount of the proceedspetitioner ofto the proposedminor; compromise and the apportionment of those proceeds, including the amount to be used for:

(f) The total amount of the proceeds of the proposed compromise and the apportionment of those proceeds, including the amount (1) Attorney’s fees and whether the attorney’s fees are fixed or contingent fees, and if the attorney’s fees are contingent fees the percentage of the proceeds to be paid as attorney’s fees;

and - *AB112* – 3 – (h) That the petitioner has been advised and understands that acceptance of the compromise will bar the minor from seeking further relief from the third person offering the compromise.

The records must includeinc(a) documentationThe of:injury, prognosis, treatment and progress of recovery of the minor;

(a) The injury, prognosis, treatment and progress of recovery of the minor;

If the court approves the compromise of the claim of the minor, the court must direct the money to be paid to a parent or guardian- of81st theSession minor,(2021) with– or3 without– the filing of any bond, or it must require a general guardian or guardian ad litem to be appointed and the money to be paid to the guardian or guardian ad litem, with or without a bond, as the court, in its discretion, deems to be in the best interests of the minor.

Within 30 days after receiving the proceeds of the compromise, the parent or guardian shall file with the court proof that the blocked financial investment has been established.

If the balance of the investment is more than $10,000, the parent, guardian or person in charge of managing the investment shall annually file with the court a verified report detailing the activities of the investment during the previous 12 months.

- *AB112* – 4 – (b) If the net proceeds of the compromise are $2,500 or less, the parent or guardian to whom the proceeds of the compromise are ordered to be paid may use the proceeds at his or her discretion for the benefit of the minor, in compliance with any terms or conditions ordered by the court.

The court may, at its discretion,dis6. close the case.

6.

or (b) By certification of the court which held the compromise hearing that the beneficiary has reached the age of 18 years, at which time control of the investment must be transferred to thetthe beneficiary or the investment must be closed and the money distributed to the beneficiary.

7.- 81st Session (2021) – 4 – filing a petition for leave to compromise or for placing the petition upon the calendar to be heard by the court.

The clerk of the district court shall not charge any fee for filing a petition for leave to compromise or for placing the petition upon the calendar to be heard by the court.

H~~~~~ 21 - *AB112*81st Session (2021)