AB 264 — Revises provisions relating to the issuance of certain professional and occupational licenses. (BDR 54-926)

EXEMPT (Reprinted with amendments adopted on April 21, 2025) FIRST REPRINT A.B.

264–ASSEMBLYMEMBER M ILLER FEBRUARY 20, 2025 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to the issuance of certain professional and occupational licenses.

(BDR 19-926)54-926) FISCAL NOTE:

establishing procedures by which an applicant for acertain professional or occupational licenselicenses may obtain judicial review of the decision of a licensingregulatory agencybody denying the application of the applicant on the basis of the moral character or criminal history of the applicant;

Existing law provides for the licensure and regulation of certain professions and various state agencies, boards and commissions that are authorized to license and regulate those professions and occupations as “regulatory bodies.” (NRS 622.060) Existing law authorizes or requires various entitiesregulatory thatbodies issueto deny an application for the issuance of a professional or occupational license based on the moral character or criminal history of the applicant.

For example, existingsedexisting law authorizes the Nevada State Board of Accountancy to refuse to grant a certificate of certified public accountant to an applicant if he or she has been convicted of a felony in this State.

(NRS prohibited,640B.310) withThis certainbill exceptions,sets fromforth issuingprocedures by which an applicant for the issuance of a cannabis“license,” establishmentwhich agentexisting registrationlaw carddefines to mean any license, certificate, registration, permit or other similar type of authorization issued by a personregulatory whobody, hasmay beenobtain convictedjudicial applicant on the basis of certainthe felonymoral offenses.character or criminal history of the applicant.

(NRS 678B.340)622.030) This bill setsrequires fortha proceduresregulatory bybody whichthat denies an applicantapplication for the issuance of anya license,license certification,on registration,the permitbasis orof otherthe authorizationmoral thatcharacter grantsor acriminal personhistory of the authorityapplicant toto, engagebefore inissuing a professionfinal ordecision occupationon inthe thismatter, Stateadvise thatthe isapplicant issuedof bythe any- officer,*AB264_R1* agency,– board2 or– commissionadministrative ofremedies thisavailable Statefor orchallenging any the applicationdenial, ofif theany, applicantand on the basisapplicable oftimelines thefor moralpursuing charactersuch orremedies. criminalying history of the applicant.

ThisIf billthe requiresregulatory abody licensingissues agencya thatfinal deniesdecision andenying application for the issuanceapplication of athe licenseapplicant on the basis of the moral character or criminal history of the applicant to provide written notice to the applicant within 10 days after the denial.issuance of theody final decision.

This bill - *AB264* – 2 – authorizes the applicant to file a petition in the district court seeking review of the decision within 30 days after receipt of the notice.

Under this bill, the licensingregulatory agencybody is required to prove by cleara andpreponderance convincingof the evidence at the hearing on the substantialpetition andthat unmitigatablethe riskissuance toof publicthe healthlicense orto safetythe basedapplicant onwould the duties and responsibilities of the profession or occupation in which the based on applicant wishes to engage.

If the court determines that the licensingregulatory agencybody has met that burden of proof, this bill requires the court to issue an order affirming the decision of the licensingregulatory agency.body.

If the court determines that the licensingregulatory agencybody has not met that applicantburden of proof, this bill requires the license.court to order the regulatory body comply with the order, notwithstanding any other provision of existing law.

Underrequired thisto bill,THE thePEOPLE licensingOF agencyTHE isSTATE requiredOF toNEVADA, complyueREPRESENTED theIN withSENATE theAND order,ASSEMBLY, notwithstandingDO anyENACT otherAS provisionFOLLOWS: of existing law.

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

Chapter 237622 of NRS is hereby amended by adding thereto a new section to read as follows:

If a licensingregulatory agencybody denies an application for the issuance of a license on the basis of the moral character or criminal history of the applicant, the licensingregulatory agencybody shallshall, providebefore toissuing a final decision on the matter, advise the applicant writtenof noticethe withinadministrative 10remedies daysavailable afterfor challenging the denial.denial, if any, and the applicable timelines for pursuing such remedies.

The noticeregulatory mustbody setshall, forthwithin the10 basisdays forafter theissuing a final decision denying the application of the licensingapplicant agencyon andthe containbasis anof explanationthe moral character or criminal history of the provisionsapplicant, provide to the applicant written notice of thisthe section.final decision.

The notice must set forth the basis for the final decision of the regulatory body.

An applicant who receives a notice of a final decision provided pursuant to subsection 1 may, within 30 days after receipt of the notice, file a petition in the district court seeking review of the decision of the licensingregulatory agency.body.

Upon the filing of a petition pursuant to subsection 2, the court shall set a time for a hearing on the petition and provide notice of the hearing to the applicant and licensingregulatory agency.body.

At the hearing, the licensingregulatory agencybody has the burden of proof of establishing by cleara andpreponderance convincingof the evidence that the issuance to the applicant of the license for which the applicant applied would pose a direct, substantial and unmitigatable risk to public health or safety based on the duties and responsibilities of the profession or occupation in which the applicant wishes to engage.

- *AB264_R1* – 3 – The regulatory body may present the court with any relevant evidence showing how it reached its decision on the matter.

Evidence of any prior arrests of the applicant is not sufficient in itself to meet the burden of proof imposed on the regulatory body pursuant to this subsection.

If the court determines that the licensing agency has met the burden of proof required by subsection 3, the court shall issue an order affirming the decision of the licensingregulatory agency.body.

The order must contain specific findings of fact and conclusions of law supporting the decision of the courtcourt. and specific recommendations to improve the possibility of being granted the license the next time the applicant applies for the license.

The court may also order the regulatory body to meet and confer with the applicant concerning regulatory body to not deny the applicant a license based on the moral character or criminal history of the applicant.

If the court determines that the licensingregulatory agencybody has failed to meet the burden of proof required by subsection 3, the court - *AB264* – 3 – shall issue an order requiring the licensingregulatory agencybody to issue the license to the applicant.

Notwithstanding any other provision of law, the licensingregulatory agencybody shall comply with the order and issue the license to the applicant.

AsThe usedprovisions inof this section:section do not apply to an applicant for the issuance of a license issued by the State Contractors’ Board pursuant to chapter 624 of NRS.

(a)7. “License” means a license, certification, registration, permit or other authorization that grants a person the authority to engage in a profession or occupation in this State.

(b)As “Licensingused agency”in means any officer, agency, board or commission of this Statesection, or“applicant” anymeans politicala subdivisionnatural ofperson thiswho Stateapplies thatfor issues a license.

H - *AB264**AB264_R1*