A.B. 343


   Assembly Bill No. 343--Committee on Commerce

                  March 16, 1995
                 _____________


         Referred to Committee on Commerce


SUMMARY--Revises provisions governing certain conduct 
          of developers of subdivided land. 
          (BDR 10-1767)

FISCAL NOTE:  Effect on Local Government: No.
              Effect on the State or on Industrial Insurance: No.



EXPLANATION--Matter in italics is new; matter in bra
ckets [ ] is material to be omitted.

AN ACT relating to subdivided land; authorizing the administrator of 
        the real estate division of the department of business and 
        industry to impose a fine or suspend, revoke or place 
        conditions upon the permit of a developer for engaging in 
        certain conduct; authorizing the administrator to enter into 
        an agreement with a developer to discontinue activities not in 
        compliance with certain laws in lieu of issuing an order to 
        cease and desist; and providing other matters properly 
        relating thereto.

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



  Section 1.  Chapter 119 of NRS is hereby 
amended by adding thereto a new section to read as 
follows:\
  The administrator may impose a fine or suspend, revoke or 
place conditions upon the property report, permit, partial 
registration or license of a developer at any time if:
  1.  The developer obtained the property report, 
permit, partial registration or license by false or 
fraudulent representation; or
  2.  The developer violates any of the terms or conditions 
of the property report, permit, partial registration or 
license, the provisions of this chapter or the regulations 
adopted pursuant thereto.\\
  Sec. 2.  NRS 119.190 is hereby amended to read 
as follows:
  119.190  Any broker, real estate salesman [, developer] or 
registered representative violating any provision of this 
chapter shall, in addition to any other penalty imposed by 
this chapter, have his license or registration suspended or 
revoked by the division for such time as in the 
circumstances it considers justified.
  Sec. 3.  NRS 119.260 is hereby amended to read 
as follows:
  119.260  1.  The administrator may issue orders directing 
persons to desist and refrain from engaging in activities 
for which they are not licensed under this chapter or 
conducting activities in a manner not in compliance with the 
provisions of this chapter.
  2.  A person who has violated any of the provisions of 
this chapter shall not engage in any activity for which a 
license issued pursuant to this chapter is required after 
receiving an order in writing from the administrator 
directing him to desist and refrain from so doing.
  3.  Within 30 days after the receipt of such an order, the 
person may file a verified petition with the administrator 
for a hearing.
  4.  The administrator shall hold a hearing within 30 days 
after the petition has been filed. If the administrator 
fails to hold a hearing within 30 days, or does not render a 
written decision within 45 days after the final hearing, the 
cease and desist order is rescinded.
  5.  If the decision of the administrator after a hearing 
is against the person ordered to cease and desist, he may 
appeal that decision by filing, within 30 days after the 
date on which the decision was issued, a petition in the 
district court for the county in which he conducted the 
activity. The burden of proof in the appeal is on the 
appellant. The court shall consider the decision of the 
administrator for which the appeal is taken and is limited 
solely to a consideration and determination of the question 
of whether there has been an abuse of discretion on the part 
of the administrator in making the decision.\
  6.  In lieu of issuing an order to cease and desist, if 
the developer is conducting activities in a manner not in 
compliance with the provisions of this chapter, the 
administrator may enter into an agreement with the developer 
in which the developer agrees to:
  (a) Discontinue the activities that are not in compliance 
with this chapter;
  (b) Pay all costs incurred by the division in 
investigating the developer's activities and conducting any 
necessary hearing; and
  (c) Return to the purchasers any money or property which 
he acquired through such activities.
The terms of such an agreement are confidential unless 
violated by the developer.\\
  Sec. 4.  This act becomes effective on July 1, 
1995.

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