Nevada 2021 Regular Session Status: Passed Senate

SB 381 — Revises provisions relating to service contracts. (BDR 57-1009)

Last action — (Pursuant to Joint Standing Rule No. 14.3.3, no further action allowed.)

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

This bill died with 2021 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

740 added · 665 removed

740 line(s) added, 665 removed.

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(Reprinted with amendments adopted on April 20, 2021) SECOND REPRINT S.B.
(Reprinted with amendments adopted on April 19, 2021) FIRST REPRINT S.B.
381 S ENATE B ILLN O.
381 S ENATE BILL NO .
381–C OMMITTEE ON C OMMERCE AND L ABOR M ARCH 26, 2021 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to service contracts.
381–COMMITTEE ON COMMERCE AND L ABOR M ARCH 26, 2021 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to certain businesses.
(BDR 57-1009) FISCAL NOTE:
(BDR 52-1009) FISCAL NOTE:
AN ACT relating to service contracts;
AN ACT relating to businesses;
exempting certain creditors from provisions governing deferred deposit loans, high-interest loans and title loans under certain circumstances;
Existing law provides for the registration and regulation of providers of service Existing law defines “service contract” to generally mean a contract pursuant to which a provider is obligated for a specified period to a holder to repair, replace or perform maintenance on, or indemnify or reimburse the holder for the costs of repairing, replacing or performing maintenance on, goods that are described in the service contract.
Existing law exempts from provisions governing the licensure and regulation of providers of deferred deposit loans, high-interest loans and title loans a person who business, commercial or agricultural purpose that is located outside of this State.y (NRS 604A.250) Section 1 of this bill revises this exemption to apply to a person who exclusively extends credit in an amount of $50,000 or more to any person for any business, commercial or agricultural purpose, regardless of any personal guarantee or collateral and regardless of whether the debtor is a resident of this State or the purpose is located in this State.
(NRS 690C.080) Sections 11 and 12 of this bill, respectively, revise the definitions of “provider” and “service contract” to, among other things, under a service contract.a good as a service for which a provider may be obligated Section 12 also revises the definition of “service contract” to include a “home service contract,” which is defined in section 4 of this bill to generally mean a service contract that covers goods which are household appliances, systems or components.
contracts in this State by the Commissioner of Insurance.
(Chapter 690C of NRS)ervice Existing law defines “service contract” to generally mean a contract pursuant to which a provider is obligated for a specified period to a holder to repair, replace or perform maintenance on, or indemnify or reimburse the holder for the costs of repairing, replacing or performing maintenance on, goods that are described in the service contract.
(NRS 690C.080) Sections 11 and 12 of this bill, respectively, - *SB381_R1* – 2 – include the servicing of a good as a service for which a provider may be obligated, under a service contract.
Section 12 also revises the definition of “service contract” to include a “home service contract,” which is defined in section 4 of this bill to generally mean a service contract that covers goods which are household appliances, systems or components.
Section 5 of this contract relating to claims for services under the contract.
Section 5 of this bill imposes certain requirements on a provider who issues or sells a home service prohibits certain practices by providers who have issued or sold a home servicebill contract.
Section 6 of this bill - *SB381_R2* – 2 – contract.
Section 3.5 of this bill defines “emergency service contract” to mean a home service contract whereby the provider agrees to provide repairs on an expedited basis and within a specified period of time.
certain practices by providers who have issued or sold a home service Section 3.5 of this bill defines “emergency service contract” to mean a home service contract whereby the provider agrees to provide repairs on an expedited basis and within a specified period of time.
Section 9 of this bill makes a conforming change to indicate the proper placement of new provisions in the Nevada Revised Statutes.
- *SB381_R1* – 3 – Section 9 of this bill makes a conforming change to indicate the proper placement of new provisions in the Nevada Revised Statutes.
- *SB381_R2* – 3 – THE PEOPLE OF THE STATE 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:
(Deleted by amendment.) Sec.
NRS 604A.250 is hereby amended to read as follows:
604A.250 The provisions of this chapter do not apply to:
1.
Except as otherwise provided in NRS 604A.200, a person doing business pursuant to the authority of any law of this State or of the United States relating to banks, national banking associations, savings banks, trust companies, savings and loan associations, credit unions, mortgage companies, thrift companies or insurance companies, including, without limitation, any affiliate or subsidiary of such a person regardless of whether the affiliate or subsidiary is a bank.
A person who is primarily engaged in the retail sale of goods or services who:
(a) As an incident to or independently of a retail sale or service, from time to time cashes checks for a fee or other consideration of not more than $2;
and (b) Does not hold himself or herself out as a check-cashing service.
3.
A person while performing any act authorized by a license issued pursuant to chapter 671 of NRS.
4.
A person who holds a nonrestricted gaming license issued pursuant to chapter 463 of NRS while performing any act in the course of that licensed operation.
5.
A person who is exclusively engaged in a check-cashing service relating to out-of-state checks.
6.
A corporation organized pursuant to the laws of this State that has been continuously and exclusively engaged in a check- cashing service in this State since July 1, 1973.
7.
A pawnbroker, unless the pawnbroker operates a check- cashing service, deferred deposit loan service, high-interest loan service or title loan service.
8.
A real estate investment trust, as defined in 26 U.S.C.
§ 856.
9.
An employee benefit plan, as defined in 29 U.S.C.
§ 1002(3), if the loan is made directly from money in the plan by the plan’s trustee.
10.
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An attorney at law rendering services in the performance of his or her duties as an attorney at law if the loan is secured by real property.
- *SB381_R1* – 4 – 11.
A real estate broker rendering services in the performance of his or her duties as a real estate broker if the loan is secured by real property.
12.
Any firm or corporation:
(a) Whose principal purpose or activity is lending money on real property which is secured by a mortgage;
(b) Approved by the Federal National Mortgage Association as a seller or servicer;
and (c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.
13.
A person who provides money for investment in loans secured by a lien on real property, on his or her own account.
14.
A seller of real property who offers credit secured by a mortgage of the property sold.
15.
A person who makes a refund anticipation loan, unless the person operates a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service.
16.
A person who exclusively extends credit to any person [who is not a resident of this State] in an amount of $50,000 or more for any business, commercial or agricultural purpose [.
that is located outside of this State.] , regardless of any personal guarantee or collateral.
Sec.
2.
(a) Associations of self-insured private employers, as defined in NRS 616A.050:
- *SB381_R1* – 5 – (a) Associations of self-insured private employers, as defined in NRS 616A.050:
(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 defined in NRS 616A.055:elf-insured public employers, as (1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (c) Independent review organizations, as provided for in NRS 616A.469 or 683A.3715, or both:
(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (b) Associations of self-insured public employers, as defined in NRS 616A.055:
(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (c) Independent review organizations, as provided for in NRS 616A.469 or 683A.3715, or both:
- *SB381_R2* – 4 – (1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (f) Intermediaries, as defined in NRS 681A.330:
(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (f) Intermediaries, as defined in NRS 681A.330:
(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (m) Public adjusters, as defined in NRS 684A.030:
(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 - *SB381_R1* – 6 – (m) Public adjusters, as defined in NRS 684A.030:
(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 - *SB381_R2* – 5 – (r) Brokers of viatical settlements, as defined in NRS 688C.030:
(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (r) Brokers of viatical settlements, as defined in NRS 688C.030:
(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (z) Title agents, as defined in NRS 692A.060:
- *SB381_R1* – 7 – (1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (z) Title agents, as defined in NRS 692A.060:
- *SB381_R2* – 6 – (1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (ee) Club agents, as defined in NRS 696A.040:
(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (ee) Club agents, as defined in NRS 696A.040:
(a) Insurer who is authorized to transact casualty insurance, as defined in NRS 681A.020;
- *SB381_R1* – 8 – (a) Insurer who is authorized to transact casualty insurance, as defined in NRS 681A.020;
- *SB381_R2* – 7 – 6.
6.
A provider who has issued or sold a home service contract shall conduct and diligently pursue a thorough, fair and objective investigation relating to each claim for services under the contract and shall not persist in seeking information that is not reasonably required for or material to the resolution of a claim.
A provider who has issued or sold a home service contract shall conduct and diligently pursue a thorough, fair and - *SB381_R1* – 9 – objective investigation relating to each claim for services under the contract and shall not persist in seeking information that is not reasonably required for or material to the resolution of a claim.
If a provider who has issued or sold a home service contract denies a claim for services, in whole or in part, the provider shall communicate the denial to the holder by mail, - *SB381_R2* – 8 – electronic mail or in any other manner established by the home service contract that is written and reproducible.
If a provider who has issued or sold a home service contract denies a claim for services, in whole or in part, the provider shall communicate the denial to the holder by mail, electronic mail or in any other manner established by the home service contract that is written and reproducible.
If a provider or an agent of a provider uses advertising, sales, marketing or other promotional materials to offer a home service contract that is not an emergency service contract, the materials must contain a statement to the effect that the home service contract being offered is not an emergency service contract and that services under the contract will be provided as soon as commercially and practically feasible.
If a provider or an agent of a provider uses advertising, sales, marketing or other promotional materials to offer a home service contract that is not an emergency service contract, the materials must contain a statement to the effect that - *SB381_R1* – 10 – the home service contract being offered is not an emergency service contract and that services under the contract will be provided as soon as commercially and practically feasible.
- *SB381_R2* – 9 – (b) Any claims paid by the provider during the contract year in which the holder requests the cancellation of the service contract;
(b) Any claims paid by the provider during the contract year in which the holder requests the cancellation of the service contract;
Sec.
- *SB381_R1* – 11 – Sec.
and - *SB381_R2* – 10 – (c) A home service contract.
and (c) A home service contract.
2.
- *SB381_R1* – 12 – 2.
- *SB381_R2* – 11 – (a) A registration application on a form prescribed by the Commissioner;
(a) A registration application on a form prescribed by the Commissioner;
3.
- *SB381_R1* – 13 – 3.
- *SB381_R2* – 12 – 6.
6.
Any such termination shall not reduce the responsibility of the insurer for service contracts issued by the provider prior to the effective date of termination.
Any such termination shall not reduce the - *SB381_R1* – 14 – responsibility of the insurer for service contracts issued by the provider prior to the effective date of termination.
The reserve account must contain at all times an amount of money equal to at least 40 percent of the [unearned] gross consideration received by the provider, less claims paid, for any unexpired service contracts [.] which are sold and cover goods in this State.
The reserve account must contain at all times an amount of money equal to at least 40 percent of the [unearned] gross consideration received by the provider , less claims paid, for any unexpired service contracts [.] which are sold and cover goods in this State.
The provider shall also deposit with the Commissioner security in an amount that is equal to $25,000 or 10 percent of the [unearned] gross consideration received by the provider, less claims paid, for any unexpired service contracts [,] which are sold and cover goods in this State, whichever is greater.
The provider shall also deposit with the Commissioner security in an amount that is equal to $25,000 or 10 percent of the [unearned] gross consideration received by the provider , less claims paid, for any unexpired service contracts [,] which are sold and cover goods in this State, whichever is greater.
- *SB381_R2* – 13 – (2) Securities of the type eligible for deposit pursuant to NRS 682B.030;
(2) Securities of the type eligible for deposit pursuant to NRS 682B.030;
(a) The provider ceases doing business in this State;
- *SB381_R1* – 15 – (a) The provider ceases doing business in this State;
- *SB381_R2* – 14 – (b) Within 10 days after the purchaser receives a copy of the service contract if the provider furnishes the holder with the copy at the time the contract is purchased;
(b) Within 10 days after the purchaser receives a copy of the service contract if the provider furnishes the holder with the copy at the time the contract is purchased;
(c) Include the amount of any deductible or fee for services that the holder is required to pay.
- *SB381_R1* – 16 – (c) Include the amount of any deductible or fee for services that the holder is required to pay.
- *SB381_R2* – 15 – (h) If the service contract covers a motor vehicle, indicate whether replacement parts that are not made for or by the original manufacturer of the motor vehicle may be used to comply with the terms of the service contract.
(h) If the service contract covers a motor vehicle, indicate whether replacement parts that are not made for or by the original manufacturer of the motor vehicle may be used to comply with the terms of the service contract.
(o) If the service contract requires the holder to obtain prior approval before the provision of services, include a procedure for obtaining such approval, which must include, without limitation, a toll-free telephone number through which the holder may obtain such approval.
(o) If the service contract requires the holder to obtain prior approval before the provision of services, include a procedure for obtaining such approval, which must include, without limitation, a - *SB381_R1* – 17 – toll-free telephone number through which the holder may obtain such approval.
No service contract that has been in effect for at least 70 days may be cancelled by the provider before the expiration - *SB381_R2* – 16 – of the agreed term or 1 year after the effective date of the service contract, whichever occurs first, except on any of the following grounds:
No service contract that has been in effect for at least 70 days may be cancelled by the provider before the expiration of the agreed term or 1 year after the effective date of the service contract, whichever occurs first, except on any of the following grounds:
or contract, A violation by the holder of any condition of the service which occurred after the effective date of the service contract and which substantially and materially increases the service required under the service contract;
or (2) A violation by the holder of any condition of the service contract, which occurred after the effective date of the service contract and which substantially and materially increases the service required under the service contract;
H - *SB381_R2*
H - *SB381_R1*
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Amendments

2 amendments

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Action History

  1. (Pursuant to Joint Standing Rule No. 14.3.3, no further action allowed.)

  2. In Assembly. Read first time. Referred to Committee on Commerce and Labor. To committee.

  3. From printer. To re-engrossment. Re-engrossed. Second reprint. To Assembly.

  4. From printer. To engrossment. Engrossed. First reprint. Read third time. Amended. (Amend. No. 480.) Reprinting dispensed with. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 21, Nays: None.) To printer.

  5. From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 423.) To printer.

  6. From printer. To committee.

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

Sponsors

  • Senate Committee on Commerce and Labor · Primary

Sponsorship breakdown

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

Sponsors (1)

  • Senate Committee on Commerce and Labor

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

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"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

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Frequently asked questions

Who sponsors SB 381?
SB 381 is sponsored by Senate Committee on Commerce and Labor.
What is the current status of SB 381?
This bill died with 2021 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 381?
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