SB 355 — Revises provisions relating to commerce. (BDR 55-59)

(2) allows for the assignment of the right to provide service without requiring notice to and the agreement of the owner;

or (3) purports to create a security interest in residential property.

Section 16.3 provides that such a service agreement is void and unenforceable.

Section 16.3 also:

(1) provides that a county recorder may refuse to record such an agreement;

(2) provides that any person who attempts to record such an agreement is guilty of a misdemeanor;

and (3) authorizes a person with an interest in residential property subject to such a service agreement to bring a civil action.

Additionally, section 16.3 requires a service provider that has entered into a service agreement on or before the passage recorder of the county in which the real property that is subject to the serviceounty agreement is located.

Finally, section 16.3 provides that a service provider who enters into or records a service agreement prohibited by section 16.3 is engaged in a deceptive trade practice.

Existing law authorizes a person licensed as a real estate broker, real estate broker-salesperson or real estate salesperson to apply to the Real Estate Division of the Department of Business and Industry for a permit to engage in property management.

(NRS 645.6052) A real estate broker who holds a permit to engage in property management is prohibited from acting as a property manager unless the broker has first obtained a property management agreement signed by the broker and the client for whom the broker will manage the property.

(NRS 645.6056) Section 18 of this bill sets forth certain duties of a person who acts as a property manager when entering into a property management agreement and performing his or her duties pursuant to such agreement.

Section 22 of this bill prohibits a property manager from waiving any of those duties.

Section 23 of this bill authorizes a person who has suffered damages as the proximate result of a property manager’s failure to perform any of those duties to bring an action against the property manaSection 19 of this bill revises the definition of the term “agency” to include a relationship arising out of a property management agreement.

Section 20 of this bill requires the Division to prepare and distribute certain forms to property managers.

Existing law provides that if a real estate broker assigns different licensees affiliated with his or her brokerage to separate parties to a real estate transaction, the licensees are not required to obtain the written consent of each party to the transaction.

(NRS 645.252, 645.253) Section 21 of this bill provides that property managers affiliated with a brokerage who are assigned to separate parties to a property management agreement are also not required to obtain such written consent.

- 82nd Session (2023) – 4 – in the application:

(1) for an applicant who is not a wholesale lender, the location of each principal office and branch office at which the mortgage company will conduct business in this State;

and (2) the location of any principal office, office or other place of business located outside this State from which the mortgage company will conduct business in this State.

Existing law also requires a mortgage company that will conduct business at one or more branch offices to apply for a license for each branch office.

(NRS 645B.020) Section 24 of this bill authorizes an employee of a mortgage company, with the mortgage company, to conduct the business of the mortgage company at aated remote location if authorized by the mortgage company.

Section 24 defines “remote location” to mean, in general, any location, including the residence of an employee, that is not a location for which a license as a mortgage company has been issued.

Section 24 sets forth certain requirements for a mortgage company to authorize an employee to conduct the business of the mortgage company at a remote location.

Additionally, section 24 prohibits:

(1) an employee from interacting with a customer in person at the residence of the employee;

and (2) the maintenance of physical records at a remote location.

Finally, section 24 requires:

at a remote location at its principal office or a branch office;

and (2) theucted Commissioner of Mortgage Lending to adopt regulations governing the conducting of the business of a mortgage company at a remote location.

Existing law requires each mortgage company to keep and maintain at each location where the mortgage company conducts business in this State records of all mortgage transactions made by the mortgage company at that location.

(NRS 645B.080) Section 25 of this bill exempts a remote location from that requirement and instead requires a mortgage company to keep and maintain records of all mortgage transactions made by an employee at a remote location in accordance regulation.quirements established by the Commissioner of Mortgage Lending by Existing law requires a collection agency, not less than 60 days before taking any action to collect a medical debt, to send by registered or certified mail to the medical debtor written notification setting forth certain information.

(NRS 649.366) Section 26 of this bill removes the requirement that the written notification be sent by mail that is registered or certified.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

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

- 82nd Session (2023) – 5 – (a) Identify in the application for the license the location, described in general terms, where the main office of the proposed depository institution will be located;

and (b) Provide to the Commissioner the physical address of the main office of the proposed depository institution commences business.titution before the depositorySec. institution commences business.

Sec.

657.150 As used in NRS 657.150 to 657.290, inclusive, and section 1 of this act, unless the context otherwise requires, the - *SB355_R1* – 4 – words and terms defined in NRS 657.160 and 657.170 have the meanings ascribed to them in those sections.

(2) A police department or sheriff’s office;

(I) Provides written notification of the delay and the reason for the delay to all parties authorized to transact business - 82nd Session (2023) – 6 – on the account, except a party who is reasonably believed to have engaged in the suspected exploitation;

and (II) Notifies the local office of the Aging and Disability Services Division of the Department of Health and Human Service(2) Notifies the local office of the Aging and Disability Services Division of the Department of Health and aHuman Services and the appropriate local law enforcement agency of any new information that is relevant to the delay;delay within a reasonable time after becoming aware of the information.

and3. (2) Notifies the local office of the Aging and Disability Services Division of the Department of Health and Human Services and the appropriate local law enforcement agency of any new information that is relevant to the delay within a reasonable time after becoming aware of the information.

- *SB355_R1* – 5 – 3.

and (b) Provide any financial records or other documentation relatingrel5.ing[An toofficer, theemployee] exploitationA offinancial theinstitution olderand personany orof vulnerableits. person.

5.officers, employees and [the] designated [reporter] reporters are [entitled to the immunity] immune from civil, criminal and administrative liability [set forth in NRS 200.5096 for making a report in good faith.] arising from:

[An officer, employee] A financial institution and any of its officers, employees and [the] designated [reporter] reporters are [entitled to the immunity] immune from civil, criminal and administrative liability [set forth in NRS 200.5096 for making a report in good faith.] arising from:

(b) Delaying or not delaying a requested disbursement or transaction involving the known or suspected exploitation of an older person or vulnerable person pursuant to this section;

6.- 82nd Session (2023) – 7 – subsections 7 and 8, a delay in a requested disbursement or transaction authorized by paragraph (c) of subsection 2 expires 15 business days after the date on which the requested disbursement or transaction was delayed.

Except as otherwise provided in this subsection and subsections 7 and 8, a delay in a requested disbursement or transaction authorized by paragraph (c) of subsection 2 expires 15 business days after the date on which the requested disbursement or transaction was delayed.

or (b) Upon the written request of the local office of the Aging and Disability Services Division of the Department of Health and - *SB355_R1* – 6 – Human Services or the local law enforcement agency that requested the extension of the delay or upon the order of a court of competent jurisdiction.

A delay in a requested disbursement or transaction authorized by paragraph (c) of subsection 2 may expire before the period set forth in subsection 6 and the designated reporter maymaye proceed with the requested disbursement or transaction if the designated reporter reasonably believes that the requested disbursement or transaction will not result in exploitation of the older person or vulnerable person.

(a) A requested disbursement from, or a requested transaction involving, an account of an older person or vulnerable person or an account to which an older person or vulnerable person is a beneficiary that the older person or vulnerable person cannot explain;

and (2)- With82nd apparentSession disregard(2023) for– any8 penalty– associated with closing the certificate of deposit before the date of maturity of the certificate of deposit;

- *SB355_R1* – 7 – (g) A suspicious alteration in a power of attorney relating to an older person or a vulnerable person;

and (h) A person attempting to initiate a financial transaction on behalf of an older person or vulnerable person without properpropern on documentation.

(1) Maintain the confidentiality of data concerning borrowers and potential borrowers while working at the remote location;

and potential borrowers while working at the remote (2) Maintain all data of the licensee electronically while working at the remote location;

- 82nd Session (2023) – 9 – (1) Print or otherwise reproduce physical documents containing any data of the licensee at the remote location;

(2) Except as authorized by section 7 of this act, disclose to a borrower or potential borrower that the employee is working at a remote(3) Convey to a borrower or potential borrower that the remote location;location at which the licensee is working is the place of business of the licensee;

(3) Convey to a borrower or potential borrower that the remote location at which the licensee is working is the place of business of the licensee;

and - *SB355_R1* – 8 – (c) Contains all the equipment necessary for the employee to perform his or her work for the licensee, which must:

and (2) Require the employee to enter unique credentials, passwords or similar information to access the computerized data system of the licensee andto otherconduct business.her computer systems used by the licensee4. to conduct business.

4.

- 82nd Session (2023) – 10 – 5.

A licensee who authorizes any employee to engage in the business of lending in this State at a remote location shall develop and adhere to a written data security policy.

The datadatall security policy must set forth procedures and requirements to ensure that:

and - *SB355_R1* – 9 – (b) Uses data encryption;

All data of the licensee is stored in a safe and secure manner and the computerized data system of the licensee is capable of being modified to accommodate the storage of data necessary for an employee working at a remote location to performper5.rmEach hisremote location at which an employee works contains computers or herother work;electronic devices which make use of reasonable security measures, such as antivirus software and firewalls;

5.

Each remote location at which an employee works contains computers or other electronic devices which make use of reasonable security measures, such as antivirus software and firewalls;

8.- 82nd Session (2023) – 11 – subsection 7, the data security policy is updated to correct any deficiencies identified in the risk assessment;

After the performance of a risk assessment pursuant to subsection 7, the data security policy is updated to correct any deficiencies identified in the risk assessment;

The licensee is able, without the licensee or an agent of the licensee being physically present at a remote location, to disconnect any computer or device provided to an employee at a remote location from the computerized data system of the licensee or other computer systems of the licensee and disable and erase any data from such a computer or device upon termination of the employee’s employment with the licensee.

An employee who engages in the business of lending in this State at a remote location shall not print or store - *SB355_R1* – 10 – physical records containing any data of the licensee at the remote location.

(a) Advertising in any form the address of the remote location wherefacsimile number associated with the employeeremote workslocation;er or (b) Meeting a personalborrower telephoneor numberpotential borrower at, or facsimileinviting numbera associatedborrower withor potential borrower to, the remote location;

(b) Meeting a borrower or potential borrower at, or inviting a borrower or potential borrower to, the remote location;

- 82nd Session (2023) – 12 – 3.

As used in this section, “place of business” has the meaningmeaSec. ascribed to it in section 5 of this act.

Sec.8.criA licensee who authorizes any employee to engage in the business of lending in this State at a remote location shall, at least once each year, conduct a review and evaluation of the operations of the licensee which are conducted by employees working at remote locations to determine whether such operations comply with the provisions of sections 5 to 8, inclusive, of this act.

8.

A licensee who authorizes any employee to engage in the business of lending in this State at a remote location shall, at least once each year, conduct a review and evaluation of the operations of the licensee which are conducted by employees working at remote locations to determine whether such operations comply with the provisions of sections 5 to 8, inclusive, of this act.

or (2) The breach resulted in, or is reasonably believed to have resulted in, an unauthorized person acquiring an encryption key - *SB355_R1* – 11 – or other means of converting encrypted personal information acquired by the person into an unencrypted or otherwiseotherwisetion intelligible form.

Except as otherwise provided in subsection 4, a licensee that maintains data which includes personal information that the licensee does not own shall notify the owner of the information of - 82nd Session (2023) – 13 – any breach of the security of the computerized data system of the licensee immediately following discovery if the personal information was, or is reasonably believed to have been, acquired by an unauthorized person.

4.law enforcement agency determines that the notification willed if a impede a criminal investigation.

A notification required by this section may be delayed if a law enforcement agency determines that the notification will impede a criminal investigation.

6.credentials to an electronic mail account furnished by the licensee, the licensee shall not provide the notification required pursuant to this section to that electronic mail account.

If a breach involves a username, password or other login credentials to an electronic mail account furnished by the licensee, - *SB355_R1* – 12 – the licensee shall not provide the notification required pursuant to this section to that electronic mail account.

(d)- The82nd toll-freeSession telephone(2023) numbers– and14 addresses– of the major credit reporting agencies;

andrs and addresses of the (e) If the breach involved personal information that includes a username, password or other login credentials to an online account, an advisement to the person whose personal information was, or is reasonably believed to have been, acquired by an unauthorized person to promptly change any relevant passwords or security questions or answers associated with the online account and to take any other appropriate steps to protect the online account and any other online account for which the person uses any of the same information to access.

A licensee who maintains his or her own notification procedures as part of a data security policy for the treatment of personal information that are otherwise consistent with the timing requirements of this section shall be deemed to be in compliance with the notification requirements of this section if the licensee notifies subject persons in accordance with its policies and procedurescomputerized indata thesystem event of a breach of the licensee.e security of the computerizedSec. data system of the licensee.

Sec.

A licensee who is required to notify more than 500 residents of this State pursuant to section 9 of this act as the result of a single breach shall notify the Attorney General of the breach not more than 30 days after the date on which the licensee discovered or was notified of the breach.

(c) The period of time, if known, in which personal information was potentially subject to acquisition by unauthorized persons as a result of the breach, including, without limitation, the - *SB355_R1* – 13 – date of the breach and the date upon which the licensee discovered or was(d) notifiedA summary of the actions taken to contain the breach.

(d) A summary of the actions taken to contain the breach.

- 82nd Session (2023) – 15 – Sec.

“Amount of cash advance” means the amount of cash or its equivalentdirection actuallyor receivedon byhis aor borrowerher behalf.borrower or paid out at his or her direction2. or on his or her behalf.

2.

“Commissioner” means the Commissioner of Financial Institutions.Ins[4.] 6.ns.“Community” means a contiguous area of the same economic unit or metropolitan area as determined by the Commissioner, and may include all or part of a city or several towns or cities.

[4.][5.] 6.7.

“Community” means a contiguous area of the same economic unit or metropolitan area as determined by the Commissioner, and may include all or part of a city or several towns or cities.

- *SB355_R1* – 14 – [5.] 7.

- 82nd Session (2023) – 16 – [6.] 9.

[8.]business 11.loans exclusively through the Internet.

“Internet business lender” means a person who makes business[9.] loans12. exclusively through the Internet.

[9.] 12.

1.this State as a deferred deposit loan service, high-interest loanin service or title loan service, as those terms are defined in chapter 604A of NRS, the person must obtain a license from the Commissioner pursuant to chapter 604A of NRS before the person may engage in any such business.

If2. a person intends to engage in the business of lending in this State as a deferred deposit loan service, high-interest loan service or title loan service, as those terms are defined in chapter 604A of NRS, the person must obtain a license from the Commissioner pursuant to chapter 604A of NRS before the person may engage in any such business.

- *SB355_R1* – 15 – 2.

or (b) Is located in this State and solicits loans outside of this State or makes loans to persons located outside of this State, unless these are isolated, incidental or occasional transactions.] An employee of a licensee may engage in the business of lending in this State at a - 82nd Session (2023) – 17 – remote location in accordance with sections 5 to 8, inclusive, of this act.

1.general fitness of the applicant are such as to command theter and confidence of the public and to warrant belief that the business will be operated lawfully, honestly, fairly and efficiently, within the purposes of this chapter;

That the financial responsibility, experience, character and general fitness of the applicant are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honestly, fairly and efficiently, within the purposes of this chapter;

The Commissioner may issue additional licenses to the same licensee for other business locations upon compliance with all the provisions of this chapter governinggoverningions issuance of a single license.

- *SB355_R1* – 16 – Sec.

or 2.- 82nd Session (2023) – 18 – business of lending in this State at a remote location inin the accordance with sections 5 to 8, inclusive, of this act.

A licensee from authorizing an employee to engage in the business of lending in this State at a remote location in accordance with sections 5 to 8, inclusive, of this act.

16.3.

Chapter 111 of NRS is hereby amended by adding thereto a new section to read as follows:

1.

A service provider shall not enter into or record a service agreement with an owner of residential property that provides for performance of the service agreement more than 1 year from the date of execution of the service agreement if the service agreement:

(a) Purports to run with the land or bind future owners of interests in the residential property;

(b) Allows for the assignment of the right to provide service without requiring notice to and agreement of the owner of the residential property;

or (c) Purports to create a security interest in the residential property, including, without limitation, a lien or encumbrance.

(a) A home warranty or similar product that covers the cost of maintenance of a major housing system, including, without limitation, a plumbing or electrical system, for a set period of time;

(b) An insurance contract;

(c) An option to purchase or right of refusal;

(d) A maintenance or repair agreement entered into by a homeowners’ association in a common interest community;

(e) A mechanic’s lien;

(f) A mortgage loan or a commitment to make or receive a mortgage loan;

(g) A security agreement relating to the sale or rental of personal property or fixtures;

(h) Any utility service provided by a public utility, including, without limitation, water, sewer, electrical, telephone or cable;

or (i) A declaration created in the formation of a common- int3.esA service agreement prohibited pursuant to this section that is recorded on or after the effective date of this act is void and unenforceable.

A county recorder may refuse to record any written instrument that contains a service agreement that is prohibited pursuant to this section.

A person who submits a written instrument for recordation to the county recorder that contains such a service agreement is guilty of a misdemeanor.

- 82nd Session (2023) – 19 – 4.

The recording of a service agreement prohibited pursuant to this section does not provide actual or constructive notice to a bona fide purchaser or creditor of residential property.

5.

A violation of subsection 1 constitutes a deceptive trade Any person with an interest in a residential property for which a service agreement prohibited pursuant to this section is recorded may bring a civil action in any court of competent jurisdiction for such a violation.

If a person brings such an action, the court may award the person:

(a) Any equitable relief that the court deems appropriate;

(b) Actual damages;

and (c) Actual costs and attorney’s fees.

6.

On or before July 31, 2023, a service provider that has entered into a service agreement on or before the effective date of this act shall record a notice of service agreement with the county recorder of the county in which the real property that is the subject of the service agreement is located, which must include, without limitation:

(a) The title “Notice of Service Agreement” in not less than 14-point boldface type;

(b) A legal description of the real property;

(c) The amount of the fee provided in the service agreement or the method by which the fee must be calculated;

(d) The date or circumstances under which the obligation set forth in the service agreement expires;

(e) The name, address and telephone number of the service pro(f) If the service provider is:

(1) A natural person, the notarized signature of the service provider;

or (2) A business entity, the notarized signature of an authorized officer or employee of the business entity.

7.

If a service provider fails to record the notice required pursuant to subsection 6 on or before July 31, 2023, the service agreement is hereby declared void and unenforceable and any interest in the real property that is subject to the service agreement may be conveyed free and clear of the service agreement.

8.

As used in this section:

(a) “Residential property” means any land in this State which is primarily used for personal, family or household purposes to which is affixed not less than one nor more than four dwelling units.

- 82nd Session (2023) – 20 – person agrees to provide services in connection with thea maintenance, purchase or sale of residential property.

(c) “Service provider” means a person who provides services to another party.

Sec.

and (c) A person may not require an additional or different form of powerpresented.ttorney of attorney for authority granted in the power of attorney presented.2.

2.

(e) The person in good faith believes that the power is not valid or that the agent does not have the authority to perform the act requested, whether or not a certification, a translation or an opinion of counsel has been requested or provided pursuant to NRS 162A.360;

[or] been requested or provided pursuant to NRS (f) The person makes, or has actual knowledge that another person has made, a report pursuant to NRS 200.5093 stating a good faith belief that the principal may be subject to abuse, neglect, - *SB355_R1* – 17 – exploitation, isolation or abandonment by the agent or a person acting for or with the agent [.] ;

(1) Makes, or has actual knowledge that another person has made, a report pursuant to NRS 657.290 of the known or - 82nd Session (2023) – 21 – suspected exploitation by the agent, or a person acting for or with the agent, of the principal who is an older person or vulnerable person;

or (2) Is a designated reporter of a financial institution who, pursuant to NRS 657.290, delays a requested disbursement or transaction involving a principal who is an older person or vulnerable person whom the designated reporter knows or has reasonable cause to believe is being exploited.

[Any] Except as otherwise provided in subsection 7, a data collector that owns or licenses computerized data which includes personal information shall disclose any breach of the security of the system data following discovery or notification of the breach to any resident of this State whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person.

- *SB355_R1* – 18 – 3.

The notification required by this section - 82nd Session (2023) – 22 – must be made after the law enforcement agency determines that the notification will not compromise the investigation.

For purposes of this section, except as otherwise provided in subsection 5, the notification required by this section may be providedpro(a) byWritten onenotification.wing of the following methods:

(a) Written notification.

(a) Maintains its own notification policies and procedures as part of an information security policy for the treatment of personal information that is otherwise consistent with the timing requirements of this section shall be deemed to be in compliance with the notification requirements of this section if the data collector notifies subject persons in accordance with its policies and proceduresdata.dures in the event of a breach of the security of the system data.(b) Is subject to and complies with the privacy and security provisions of the Gramm-Leach-Bliley Act, 15 U.S.C.

(b) Is subject to and complies with the privacy and security provisions of the Gramm-Leach-Bliley Act, 15 U.S.C.

- *SB355_R1*82nd Session (2023) – 1923 – Sec.thereto a new section to read as follows:amended by adding A person who holds a permit to engage in property management when entering into a property management agreement and performing his or her duties pursuant to such property management agreement, as applicable:

18.

ThisShall sectiondisclose becomesto effectiveeach uponparty passageto andthe approval.property management agreement as soon as practicable:

(a) Any material and relevant facts, data or information which the property manager knows, or which by the exercise of reasonable care and diligence should have known, relating to the property which is the subject of the property management agreement.

(b) Each source from which the property manager will receive compensation as a result of the agreement.

(c) That the property manager is a principal to the agreement or has an interest in a principal to the agreement.

party to the agreement.

If a property manager makes such ane disclosure, he or she must obtain the written consent of each party to the agreement for whom the property manager is acting before he or she may continue to act in his or her capacity as an agent.

The written consent must include:

(1) A description of the property management agreement.

(2) A statement that the property manager is acting for two or more parties to the agreement who have an adverse interest and that in acting for these parties, the property manager has a conflict of interest.

(3) A statement that the property manager will not disclose any confidential information for 1 year after the revocation or termination of any property management agreement entered into with a party to the agreement, unless he or she is required to do so by a court of competent jurisdiction or is given written permission to do (4) A statement that a party is not required to consent to the property manager acting on behalf of the party.

(5) A statement that the party is giving consent without coercion and understands the terms of the consent given.

(6) Any changes in the property manager’s relationship to a party to the agreement or activity.

SectionsShall 1exercise reasonable skill and care with respect to 17,all inclusive,parties to the property management agreement in carrying out the - 82nd Session (2023) – 24 – terms of thisthe actproperty becomemanagement effective:agreement and performing his or her duties.

(a)3. Upon passage and approval for the purpose of adopting any tasks that are necessary to carry out the provisions of this act;

Shall provide the appropriate form prepared by the Division pursuant to NRS 645.193 to:

property manager in the property management agreement;

andas a (b) Each unrepresented party to the property management agreement, if any.

4.

Shall seek a rental or lease of real property at the price and terms stated in the property management agreement or at a price acceptable to the client.

5.

Shall advise the client to obtain advice from an expert relating to matters which are beyond the expertise of the property manager.

6.

Shall account for all money and property the property manager receives in which the client may have an interest as soon as is practicable.

7.

Unless otherwise agreed upon in writing, owes no duty to:

(a) Independently verify the accuracy of a statement made by an inspector certified pursuant to chapter 645D of NRS or another appropriate licensed or certified expert.

(b) Conduct an independent inspection of the financial condition of a party to the property management agreement.

(c) Conduct an investigation of the condition of the property which is the subject of the property management agreement.

Sec.

19.

NRS 645.0045 is hereby amended to read as follows:

645.0045 1.

“Agency” means a relationship between a property management agreement whereby the agent is engaged tor do certain acts on behalf of the principal in dealings with a third party.

2.

The term does not include a relationship arising solely from negotiations or communications with a client of another broker with the written permission of the broker in accordance with the provisions of subsection 2 of NRS 645.635.

Sec.

20.

NRS 645.193 is hereby amended to read as follows:

645.193 The Division shall prepare and distribute to licensees [:] and property managers:

1.

A form which sets forth the duties owed by a licensee or property manager who is acting for only one party to a real estate transaction [.] or property management agreement, as applicable.

2.

A form which sets forth the duties owed by a licensee or property manager who is acting for more than one party to a real - 82nd Session (2023) – 25 – estate transaction [.] or property management agreement, as applicable.

3.

A form which sets forth the duties owed by a real estate broker who assigns different licensees or property managers transaction [.] or property management agreement, as applicable.al estate Sec.

21.

NRS 645.253 is hereby amended to read as follows:

645.253 If a real estate broker assigns different [licensees] :

1.

Licensees affiliated with his or her brokerage to separate parties to a real estate transaction, the licensees are not required to obtain the written consent required pursuant to paragraph (d) of subsection 1 of NRS 645.252.

Each licensee shall not disclose, except to the real estate broker, confidential information relating to a client in violation of NRS 645.254.

2.

Licensees affiliated with his or her brokerage who hold permits to engage in property management to separate parties to a property management agreement, the property managers are not required to obtain the written consent required pursuant to paragraph (d) of subsection 1 of section 18 of this act.

Each property manager shall not disclose, except to the real estate broker, confidential information relating to a client in violation of section 18 of this act.

Sec.

22.

NRS 645.255 is hereby amended to read as follows:

645.255 Except as otherwise provided in subsection 4 of NRS 645.254, no duty of a licensee set forth in NRS 645.252 or 645.254 or a property manager set forth in section 18 of this act may be waived.

645.257 1.RS 64A person who has suffered damages as thews:

proximate result of a licensee’s or property manager’s failure to perform any duties required by NRS 645.252, 645.253 or 645.254 or section 18 of this act or the regulations adopted to carry out those sections may bring an action against the licensee or property manager for the recovery of the person’s actual damages.

2.

In such an action, any knowledge of the client [of] :

(a) Of the licensee of material facts, data or information relating to the real property which is the subject of the real estate transaction may not be imputed to the licensee [.] ;

and (b) Of the property manager of material facts, data or information relating to the real property which is the subject of the property management agreement may not be imputed to the property manager.

- 82nd Session (2023) – 26 – 3.

In an action brought by a person [against a licensee] pursuant to subsection 1 [, the] :

(a) The standard of care owed by a licensee is the degree of care that a reasonably prudent real estate licensee would exercise and is real estate licensee pursuant to NRS 645.343 and 645.345 [.] ;

and (b) The standard of care owed by a property manager is the degree of care that a reasonably prudent property manager would exercise and is measured by the degree of knowledge required to be obtained by a permit to engage in property management pursuant to NRS 645.6052.

Sec.

24.

Chapter 645B of NRS is hereby amended by adding thereto a new section to read as follows:

1.

An employee of a mortgage company may conduct the business of the mortgage company at a remote location if authorized by the mortgage company.

2.

A mortgage company may authorize an employee to conduct the business of the mortgage company at a remote location if the mortgage company:

(a) Has adopted written policies and procedures for the supervision of employees working at a remote location to ensure that:

(1) Each employee working from a remote location complies with the provisions of this section and the regulations adopted pursuant thereto;

and (2) The mortgage company exercises reasonable supervision and control over the activities of his or her mortgage loa(b) Has adopted a comprehensive written plan for the security of the information systems of the mortgage company and any customer information collected and maintained by the mortgage company, which must contain specific provisions regarding cybersecurity and the use of a virtual private network or other secure connection at the remote location that requires:

(1) Multifactor authentication;

(2) A backup system and data recovery system;

and (3) Protocols in the event of a cybersecurity incident;

and (c) Ensures that the information systems of the mortgage company and any customer information collected and maintained by the mortgage company are accessed by employees working at a remote location only in accordance with the security plan adopted pursuant to paragraph (b).

- 82nd Session (2023) – 27 – 3.

An employee of a mortgage company shall not interact with a customer of the mortgage company in person at the residence of the employee unless a license has been issued for that residence pursuant to NRS 645B.020.

maintained at a remote location.

Any underlying originationbe records obtained through the conduct of the business of a mortgage company at a remote location must be maintained at the principal office or a branch office of the mortgage company.

5.

The Commissioner shall adopt regulations governing the conducting of the business of a mortgage company at a remote location.

The regulations:

(a) Must include, without limitation, requirements for the keeping and maintenance of complete and suitable records of all mortgage transactions made by an employee of a mortgage company at a remote location;

and (b) May include, without limitation, any additional requirements for an employee of a mortgage company to conduct the business of a mortgage company from a remote location.

6.

As used in this section:

(a) “Business of a mortgage company” includes, without limitation, any activity for which a license is required pursuant to this chapter that is conducted by an employee who is a mortgage loan originator employed by or associated with a mortgage company.

(b) “Employee” includes, without limitation, a mortgage loan originator who is employed by or associated with a mortgage com(c) “Remote location” means a location, other than a principal office, branch office or other office or place of business for which a license has been issued pursuant to NRS 645B.020, at which an employee of a mortgage company conducts the business of the mortgage company pursuant to this section.

The term includes, without limitation, the residence of an employee.

Sec.

25.

NRS 645B.080 is hereby amended to read as follows:

645B.080 1.

Each mortgage company shall keep and maintain at all times at each location , other than a remote location, where the mortgage company conducts business in this state complete and suitable records of all mortgage transactions made by the mortgage company at that location.

Each mortgage company shall also keep and maintain at all times at each such location all original books, papers and data, or copies thereof, clearly reflecting the financial condition of the business of the mortgage company.

- 82nd Session (2023) – 28 – Each mortgage company shall keep and maintain complete and suitable records of all mortgage transactions made by an employee of the mortgage company at a remote location in accordance with the requirements established by the Commissioner by regulation pur2.antExcept as otherwise provided in subsection 3, each mortgage company shall submit to the Commissioner each month a report of the mortgage company’s activity for the previous month.

The report must:

(a) Specify the volume of loans arranged and loans made by the mortgage company for the month or state that no loans were arranged or made in that month;

(b) Include any information required pursuant to NRS 645B.260 or pursuant to the regulations adopted by the Commissioner;

and (c) Be submitted to the Commissioner by the 15th day of the month following the month for which the report is made.

3.

The Commissioner may waive the requirement to submit a report pursuant to subsection 2 if substantially similar information is available to the Commissioner from another source.

4.

The Commissioner may adopt regulations prescribing accounting procedures for mortgage companies handling trust accounts and the requirements for keeping records relating to such accounts.

5.

Each mortgage company who is required to register or voluntarily registers with the Registry shall submit to the Registry and the Commissioner a report of condition or any other report required by the Registry in the form and at the time required by the Reg6.tryAs used in this section, “remote location” has the meaning ascribed to it in section 24 of this act.

Sec.

26.

NRS 649.366 is hereby amended to read as follows:

649.366 1.

Not less than 60 days before taking any action to collect a medical debt, a collection agency shall send by [registered or certified] mail to the medical debtor written notification that sets forth:

(a) The name of the medical facility, provider of health care or provider of emergency medical services that provided the goods or services for which the medical debt is owed;

(b) The date on which those goods or services were provided;

and (c) The principal amount of the medical debt.

2.

The written notification required by subsection 1 must:

(a) Identify the name of the collection agency;

and - 82nd Session (2023) – 29 – (b) Inform the medical debtor that, as applicable:

(1) The medical debt has been assigned to the collection agency for collection;

or (2) The collection agency has otherwise obtained the medical debSec.

27.

1.

This section and section 16.3 of this act become effective upon passage and approval.

2.

Sections 1 to 16, inclusive, 16.5 to 23, inclusive, and 26 of this act become effective:

(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act;

H3. - *SB355_R1*

Sections 24 and 25 of this act become effective:

(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act;

and (b) On January 1, 2024, for all other purposes.

~~~~~ 23 - 82nd Session (2023)