SB 449 — Revises provisions governing structured settlement purchase companies. (BDR 3-1074)

REQUIRESSenate TWO-THIRDSBill MAJORITYNo. VOTE (§ 3) EXEMPT S.B.

449449–Committee SENATEon BILLNFinance OCHAPTER.......... .

449–COMMITTEE ON F INANCE (O NB EHALF OF THE OFFICE OF FINANCE IN THE OFFICE OF THE G OVERNOR ) APRIL 6, 2023 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions governing structured settlement purchase companies.

(BDR 3-1074) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Executive Budget.

~ EXPLANATION – Matter in bolded italics is new;

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

Existing law provides for the regulation of structured settlement purchase companies by the Consumer Affairs Unit of the Department of Business and Industry.

(NRS 42.200-42.400) Section 1 of this bill authorizes the Commissioner of Consumer Affairs of the Unit, in consultation with the Director of the companies.,Department, to adopt regulations relating to structured settlement purchase Existingcompanies. law requires a structured settlement purchase company that wishes to do business in this State to:

Existing law requires a structured settlement purchase company that wishes to do business in this State to:

and (2) include in its application for registration a sworn certification that the structured settlement purchase company has secured a surety bond, has been issued a letter of credit or has posted a cash bond in the amount of $50,000 which relates to its business as a - *SB449* – 2 – structured settlement purchase company in this State and which is intended to protect payees who do business with the structured settlement purchase company.

(1) an applicant for registration as a structured settlement purchase company to pay a nonrefundable application fee of $250 for its initial registration;

and (3) a registrant who fails to timely renew its registration before expiration to pay a nonrefundable renewal fee of $375 if the registration is renewed within 60 days after expiration or, if the registrant fails to renew its registration more than 60 days after expiration, to pay a nonrefundable reinstatement fee of $500.

Section 3 also provides that all fees received by the Unit must be used only to acquire technology for, or improve technology used by, the Unit to carry out its duties.

Finally, section 3 eliminates the authorization for a structured settlement purchase company to post a cash bond as an option to protect payees who do business with the structured settlement purchase company, which means that the structured settlement purchase company must instead secure a surety bondbondSection or2 haveof beenthis issuedbill makes a letterconforming change to indicate the proper placement of credit.section 1 in the Nevada Revised Statutes.

Section 24 of this bill makes a conforming change to indicate the proper a conforming change to reflect that a structured settlement purchase company is nosno longer authorized to post a cash bond pursuant to section 3.

- 82nd Session (2023) – 2 – EXPLANATION – Matter in bolded italics is new;

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

42.340acquire 1.structured settlement payment rights through a transfer from a payee who resides in this State or file a structured settlement transfer proceeding in this State unless the person is registered with the Unit to do business in this State as a structured settlement purchase company.

A person shall not act as a transferee, attempt to acquire structured settlement payment rights through a transfer from a payee who resides in this State or file a structured settlement transfer proceeding in this State unless the person is registered with the Unit to do business in this State as a structured settlement purchase company.

An initial or renewed - *SB449* – 3 – registration expires 1 year after it is issued and may be renewed by the registrant on or before the renewal date for additional 1-year periods.

(b) Reinstate its registration if, more than 60 days after the expiration of its registration, the registrant submits its application for reinstatement of its registration accompanied by all required information and a nonrefundable reinstatement fee of $500.$500.equired 3.

3.The application must contain a sworn certification by an owner, officer, director or manager of the applicant, if the applicant - 82nd Session (2023) – 3 – natural person, certifying that:he applicant if the applicant is a (a) The applicant has secured a surety bond [,] or has been issued a letter of credit [or has posted a cash bond] in the amount of $50,000 which relates to its business as a structured settlement purchase company in this State;

The application must contain a sworn certification by an owner, officer, director or manager of the applicant, if the applicant is not a natural person, or by the applicant if the applicant is a natural person, certifying that:

(a) The applicant has secured a surety bond [,] or has been issued a letter of credit [or has posted a cash bond] in the amount of $50,000 which relates to its business as a structured settlement purchase company in this State;

The applicant must submit to the Unit with each initial and renewal application a copy of the surety bond [,] or letter of credit [or cash bond] obtained by the applicant for the purposes ofofof credit subsection 3.

The surety bond [,] or letter of credit [or cash bond] must be renewed each year as needed to keep it continuously in effect when the registration of the applicant is renewed unless the applicant obtains alternative security described in paragraph (a) of - *SB449* – 4 – subsection 3 which complies with all applicable provisions of NRS 42.200 to 42.400, inclusive [.] , and section 1 of this act.

A surety bond [,] or letter of credit [or cash bond] obtained forfor(a) theEnsure purposesthat ofthe subsectionstructured 3settlement must:purchase company:

(a) Ensure that the structured settlement purchase company:

- 82nd Session (2023) – 4 – 8.

All fees received by the Unit pursuant to this section must be deposited in the Department of Business and Industry budget account and used only to acquire technology for, or improve technology used by, the Unit to carry out its duties pursuant to NRSNRSSec. 42.200 to 42.400, inclusive, and section 1 of this act.

Sec.

NRStoNRS 42.360 is hereby amended to read as follows:

If a surety bond used by a structured settlement purchase company to satisfy the requirements of NRS 42.340 is modified so as to make the surety bond not comply with any provision of NRS 42.200 to 42.400, inclusive, and section 1 of this act or the surety bond is cancelled, the registration of the structured settlement purchase company automatically expires on the effective date of the modification or cancellation unless a new surety bond [,] or letter of credit [or cash bond] which complies with NRS 42.200 to 42.400, inclusive, and section 1 of this act is filed with the Unit on or before the effective date of the modification or cancellation.

- *SB449* – 5 – 4.

and - 82nd Session (2023) – 5 – (b) On October 1, 2023, for all other purposes.

H~~~~~ 23 - *SB449*82nd Session (2023)