A.B. 407 Assembly Bill No. 407--Committee on Government Affai rs March 28, 1995 _____________ Referred to Committee on Government Affairs SUMMARY--Makes various changes concerning state treasurer. (BDR 31-826) 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 the state treasurer; authorizing the state treasurer to negotiate the payment of compensation for certain banking services; transferring the duties of the division of unclaimed property of the department of business and industry to the state treasurer; authorizing the state treasurer to appoint and employ certain deputies and assistants; including the state treasurer as a member of the public employees' retirement board; 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. NRS 356.010 is hereby amended to read as follows: 356.010 [1.] All money under the control of the state treasurer belonging to the state must be deposited in any state or national banks, any insured credit [union] \unions\\ or in any insured savings and loan associations in this state, or in any banks \, insured credit unions \\or insured savings and loan associations outside of this state as provided in NRS 356.100. The depository banks \, credit unions\\ or savings and loan associations [shall handle, collect and pay] \may, if authorized by a contract negotiated with the state treasurer, receive compensation for handling, collecting and paying\\ all checks, drafts and other exchange \.\\ [without cost to the state. 2. Any sums so deposited are deemed to be in the state treasury if the banks, credit unions or savings and loan associations in which the money is deposited furnish, before or simultaneously with the making of the deposits, security as provided in NRS 356.010 to 356.110, inclusive.] \The compensation may be provided through the use of a compensating balance or a fixed-rate fee, or any combination thereof.\\ Sec. 2. NRS 356.100 is hereby amended to read as follows: 356.100 If deposits in depositories within this state are at or near the limit of deposits allowable under the value of bonds or securities pledged by such banks, insured credit unions or insured savings and loan associations, or as otherwise limited by NRS 356.010 to 356.110, inclusive, and an excess of money has accumulated in the state treasury, the state treasurer may: 1. Subject to the provisions of NRS 356.010 to 356.110, inclusive, with the written consent and approval of the state board of finance, deposit such amounts of money as may be advisable in banks \, insured credit unions\\ or insured savings and loan associations situated outside of this state; and 2. By check or order signed by the state treasurer and countersigned by at least two members of the state board of finance, withdraw the deposits as needed. Sec. 3. NRS 120A.025 is hereby amended to read as follows: 120A.025 "Administrator" means the [chief of the division] \state treasurer, in his capacity as the administrator\\ of unclaimed property. Sec. 4. NRS 120A.145 is hereby amended to read as follows: 120A.145 The administrator or any officer, agent or employee of the [division] \administrator\\ shall not use or disclose any information received by the administrator in the course of carrying out the provisions of this chapter which is confidential or which is provided to the [division] \administrator\\ on the basis that the information is to remain confidential, unless the use or disclosure of the information is necessary to locate the owner of unclaimed or abandoned property. Sec. 5. NRS 120A.250 is hereby amended to read as follows: 120A.250 1. Every person holding money or other property presumed abandoned [under] \pursuant to \\this chapter shall make a verified report to the [division] \administrator\\ with respect to the property. 2. The report must include: (a) Except with respect to traveler's checks and money orders, the name, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of any property of the value of $50 or more presumed abandoned [under] \pursuant to\\ this chapter. (b) In case of unclaimed money held by an insurance company, the full name of the insured or annuitant and his last known address according to the corporation's records. (c) The nature and identifying number, if any, or description of the property and the amount appearing from the records to be due, except that items of value under $50 each may be reported in the aggregate. (d) The date when the property became payable, demandable or returnable and the date of the last transaction with the owner with respect to the property. (e) Other information which the administrator prescribes by regulation as necessary for the administration of this chapter. 3. If the person holding property presumed abandoned is a successor to other persons who previously held the property for the owner, or if the holder has changed his name while holding the property, he shall file with his report all prior known names and addresses of each holder of the property. 4. The report must be filed before November 1 of each year for the preceding fiscal year ending June 30 except that the report of an insurance company must be filed before May 1 of each year for the preceding calendar year. The administrator may, in writing, postpone the reporting date upon written request by any person required to file a report. 5. Verification of the report, if made by: (a) A partnership, must be executed by a partner. (b) An unincorporated association or private corporation, must be executed by an officer. (c) A public entity or corporation, must be executed by its chief fiscal officer. Sec. 6. NRS 120A.280 is hereby amended to read as follows: 120A.280 1. Within 180 days after the filing of the report required by NRS 120A.250, the administrator shall cause notice to be published at least once each week for 2 successive weeks in a newspaper of general circulation in the county in this state in which is located the last known address of any person to be named in the notice. If no address is listed or if the address is outside this state, the notice must be published in the county in which the holder of the abandoned property has his principal place of business within this state. 2. The published notice must be entitled "Notice of Names of Persons Appearing To Be Owners of Abandoned Property," and must contain: (a) The names in alphabetical order and last known addresses, if any, of persons listed in the report and entitled to notice within the county. (b) A statement that information concerning the amount or description of the property and the name and address of the holder may be obtained by any person possessing an interest in the property by addressing an inquiry to the [division.] \administrator.\\ (c) A statement of the provisions of subsection 3. 3. If proof of the claim is not presented by the owner to the holder and if the owner's right to receive the property is not established to the holder's satisfaction within 60 days after the date of the second published notice, the abandoned property will be placed not later than 80 days after the publication date in the custody of the [division,] \administrator,\\ to which all further claims must thereafter be directed. 4. The administrator is not required to publish in the notice any item valued at less than $50 unless he deems the publication to be in the public interest. Sec. 7. NRS 120A.290 is hereby amended to read as follows: 120A.290 1. Within 180 days after receiving the report required by NRS 120A.250, the administrator shall mail a notice to each person having an address listed therein who appears to be entitled to property of the value of $50 or more presumed abandoned [under] \pursuant to\\ this chapter. 2. The mailed notice must contain: (a) A statement that, according to a report filed with the [division,] \administrator,\\ property is being held to which the addressee appears entitled. (b) The name and address of the person holding the property and any necessary information regarding changes of name and address of the holder. (c) A statement that if satisfactory proof of claim is not presented by the owner to the holder by the date specified in the published notice, the property will be placed in the custody of the [division,] \administrator,\\ to which all further claims must be directed. 3. This section is not applicable to sums payable on traveler's checks or money orders presumed abandoned [under] \pursuant to\\ NRS 120A.160. Sec. 8. NRS 120A.310 is hereby amended to read as follows: 120A.310 No service, handling, maintenance or other charge or fee may be deducted or withheld from any property subject to this chapter if, under the holder's policy or practice, the holder would not have excluded, withheld or deducted such a charge or fee if the property had been claimed by the owner before it was paid or delivered to the [division.] \administrator.\\ Sec. 9. NRS 120A.320 is hereby amended to read as follows: 120A.320 1. Except as otherwise provided in subsections 2 and 4, every person who has filed a report [under] \pursuant to\\ NRS 120A.250 shall, within 20 days after the time specified in NRS 120A.280 for claiming the property from the holder or in the case of sums payable on traveler's checks or money orders presumed abandoned [under] \pursuant to\\ NRS 120A.160, within 20 days after the filing of the report, pay or deliver to the [division] \administrator\\ all abandoned property specified in this report. 2. If an owner has established his right to receive any of the abandoned property to the holder's satisfaction within the time specified in NRS 120A.280 or if it appears to the holder that for some other reason the presumption of abandonment is erroneous, the property will no longer be presumed abandoned and the holder need not pay or deliver it to the [division,] \administrator,\\ but shall file a verified written explanation of the proof of claim or of the error in the presumption of abandonment. 3. The holder of an interest [under] \pursuant to\\ NRS 120A.190 shall deliver a duplicate certificate or other evidence of ownership if the holder does not issue certificates of ownership to the [division.] \administrator.\\ Upon delivery of a duplicate certificate to the administrator, the holder and any transfer agent, registrar, or other person acting for or on behalf of a holder in executing or delivering the duplicate certificate is relieved of all liability to every person, including any person acquiring the original certificate or the duplicate of the certificate issued to the [division,] \administrator,\\ for any losses or damages resulting to any person by the issuance and delivery to the [division] \administrator\\ of the duplicate certificate. 4. Property which in all probability will be presumed abandoned pursuant to NRS 120A.200 may, upon approval of the administrator, be reported and delivered by the holder to the [division] \administrator\\ before the date it is statutorily presumed abandoned. Sec. 10. NRS 120A.330 is hereby amended to read as follows: 120A.330 After the administrator has received reports of property presumed abandoned, he may decline to receive any of the reported property which he deems to have a value less than the cost of giving notice and holding a sale, or he may, if he deems it desirable because of the small sum involved, postpone taking possession until a sufficient sum accumulates. Unless [it] \the administrator\\ gives notice to the contrary, within 180 days after the holder has filed his report, the [division] \administrator\\ shall be deemed to have elected to receive the custody of the property. Sec. 11. NRS 120A.340 is hereby amended to read as follows: 120A.340 1. Upon the payment or delivery to [it] \him\\ of abandoned property, the [division] \administrator\\ shall assume custody of the property and is thereafter responsible for its safekeeping. 2. Any person who pays or delivers abandoned property to the [division under] \administrator pursuant to\\ this chapter is relieved of all liability to the extent of the value of the property so paid or delivered for any claim which then exists or which thereafter may arise or be made in respect to the property. 3. Any holder who has paid money to the [division] \administrator\\ pursuant to this chapter may make payment to any person appearing to the holder to be entitled thereto, and if the holder files with the [division] \administrator\\ proof of such payment and proof that the payee was entitled thereto, the [division] \administrator\\ shall forthwith reimburse the holder for the payment, without charge. Where reimbursement is sought for a payment made on a negotiable instrument \, \\[(] including a traveler's check or money order [), the division] \, the administrator\\ shall reimburse the holder upon his filing proof that the instrument was presented to him and that payment was made thereon to a person who appeared to the holder to be entitled to payment. 4. If the holder pays or delivers property to the [division] \administrator\\ in accordance with this chapter and thereafter any person claims the property from the holder, or another state claims the property from the holder [under] \pursuant to\\ that state's laws, the attorney general shall, upon written request of the holder, defend him against the claim and the administrator shall indemnify him against any liability on the claim. 5. Property removed from a safe-deposit box or other safekeeping repository is received by the administrator subject to the holder's right to be reimbursed for the actual cost of the opening and to any valid lien or contract providing for the holder to be reimbursed for unpaid rent or storage charges. The administrator shall reimburse or pay the holder out of the proceeds remaining after deducting the administrator's selling cost. Sec. 12. NRS 120A.350 is hereby amended to read as follows: 120A.350 When property other than money is paid or delivered to the [division under] \administrator pursuant to\\ this chapter, the owner is entitled to receive from the [division] \administrator\\ any dividends, interest or other increments realized or accruing on the property at or before liquidation or conversion thereof into money. Sec. 13. NRS 120A.360 is hereby amended to read as follows: 120A.360 1. Except as otherwise provided in subsections 4 and 5, all abandoned property other than money delivered to the [division under] \administrator pursuant to\\ this chapter must, within 1 year after the delivery, be sold by the administrator to the highest bidder at public sale in whatever city in the state affords in his judgment the most favorable market for the property involved. The administrator may decline the highest bid and reoffer the property for sale if he considers the price bid insufficient. 2. Any sale held [under] \pursuant to\\ this section must be preceded by a single publication of notice thereof at least 2 weeks in advance of sale in a newspaper of general circulation in the county where the property is to be sold. 3. The purchaser at any sale conducted by the administrator pursuant to this chapter is vested with title to the property purchased, free from all claims of the owner or prior holder and of all persons claiming through or under them. The administrator shall execute all documents necessary to complete the transfer of title. 4. The administrator need not offer any property for sale if in his opinion the probable cost of sale exceeds the value of the property. The administrator may destroy or otherwise dispose of such property or may transfer it to: (a) The Nevada museum and historical society, the Nevada state museum or the Nevada historical society, upon its written request, if the property has, in the opinion of the requesting institution, historical, artistic or literary value and is worthy of preservation; or (b) A genealogical library, upon its written request, if the property has genealogical value and is not wanted by the Nevada museum and historical society, the Nevada state museum or the Nevada historical society. An action may not be maintained by any person against the holder of the property because of that transfer, disposal or destruction. 5. Securities listed on an established stock exchange must be sold at the prevailing price for that security on the exchange at the time of sale. Other securities not listed on an established stock exchange may be sold: (a) Over the counter at the prevailing price for that security at the time of sale; or (b) By any other method the administrator deems acceptable. Sec. 14. NRS 120A.370 is hereby amended to read as follows: 120A.370 1. There is hereby created in the state treasury the abandoned property trust fund. 2. All money received by the [division under] \administrator pursuant to\\ this chapter, including the proceeds from the sale of abandoned property, must be deposited by the administrator in the state treasury for credit to the abandoned property trust fund. 3. Before making a deposit, the administrator shall record the name and last known address of each person appearing from the holders' reports to be entitled to the abandoned property and of the name and last known address of each insured person or annuitant, and with respect to each policy or contract listed in the report of an insurance company, its number, the name of the company and the amount due. The record must be available for public inspection at all reasonable business hours. 4. The administrator may pay from money available in the abandoned property trust fund: (a) Any costs in connection with the sale of abandoned property. (b) Any costs of mailing and publication in connection with any abandoned property. (c) Reasonable service charges. (d) Any costs incurred in examining the records of a holder and in collecting the abandoned property. (e) Any valid claims filed pursuant to this chapter. 5. At the end of each fiscal year the amount of the balance in the fund in excess of $100,500 must be [deposited with the state treasurer for credit] \transferred\\ to the state general fund but remains subject to the valid claims of holders pursuant to NRS 120A.340 or owners pursuant to NRS 120A.380. 6. If there is an insufficient amount of money in the abandoned property trust fund to pay any cost or charge pursuant to subsection 4, the state board of examiners may, upon the application of the administrator, authorize a temporary transfer from the state general fund to the abandoned property trust fund of an amount necessary to pay those costs or charges. The administrator shall repay the amount of the transfer as soon as sufficient money is available in the abandoned property trust fund. Sec. 15. NRS 120A.400 is hereby amended to read as follows: 120A.400 Any person aggrieved by a decision of the administrator, or as to whose claim the administrator has failed to render a decision within 90 days after the filing of the claim, may [do either of the following, or both: 1. Request the director of the department of business and industry to review the administrative record. The request must be made in writing and must be filed with the director within 90 days after the decision of the administrator or within 180 days after the filing of the claim. The decision of the director constitutes the final decision in a contested case. 2. Commence] \commence \\an action in the district court to establish his claim. The proceeding must be brought within 90 days after the decision of the administrator or within 180 days after the filing of the claim if the administrator has failed to render a decision. The action must be tried without a jury in cases where the administrator has failed to render a decision. Sec. 16. NRS 120A.405 is hereby amended to read as follows: 120A.405 1. Any agreement to locate, deliver, recover or assist in the recovery of property presumed abandoned which is entered into by or on behalf of the owner of the property must: (a) Be in writing. (b) Be signed by the owner. (c) Include a description of the property. (d) Include the value of the property. (e) Include the name and address of the person in possession of the property, if known. 2. No such agreement is valid unless it is executed: (a) Before the date on which the property is reported to the [division] \administrator\\ pursuant to NRS 120A.250; or (b) Two years after the property has been paid or delivered to the [division.] \administrator.\\ 3. No fee charged for the location, delivery, recovery or assistance in the recovery of property presumed abandoned may be more than 10 percent of the total value of the property. Sec. 17. NRS 120A.420 is hereby amended to read as follows: 120A.420 1. The [chief of the division of unclaimed property] \administrator\\ may at reasonable times and upon reasonable notice examine the records of any person if he has reason to believe that the person has failed to report property which should have been reported pursuant to this chapter. 2. To determine compliance with this chapter, the commissioner of financial institutions may examine the records of any banking organization and any savings and loan association doing business within this state but not organized [under] \pursuant to \\the laws of or created in this state. 3. When requested by the [chief of the division of unclaimed property,] \administrator,\\ any licensing or regulating agency otherwise empowered by the laws of this state to examine the records of the holder shall include in its examination a determination whether the holder has complied with this chapter. Sec. 18. NRS 120A.430 is hereby amended to read as follows: 120A.430 If any person refuses to pay or deliver property to the [division] \administrator\\ as required [under] \pursuant to\\ this chapter, the attorney general, upon request of the administrator, may bring an action in a court of competent jurisdiction to enforce the payment or delivery. Sec. 19. NRS 120A.440 is hereby amended to read as follows: 120A.440 1. Any person who willfully fails to make any report or perform any other duty required [under] \pursuant to\\ this chapter is guilty of a misdemeanor. Each day such a report is withheld constitutes a separate offense. 2. Any person who willfully refuses to pay or deliver abandoned property to the [division] \administrator\\ as required [under] \pursuant to \\this chapter is guilty of a gross misdemeanor. Sec. 20. NRS 120A.450 is hereby amended to read as follows: 120A.450 1. Except as otherwise provided in subsection 2, in addition to any penalties for which he may be liable, any person who fails to report or to pay or deliver abandoned property within the time prescribed by this chapter shall pay to the [division] \administrator\\ interest at the rate of 18 percent per annum on the money or the value of other property from the date on which the property should have been paid or delivered. 2. The administrator may waive any right to the payment of interest pursuant to this section if: (a) The person otherwise obligated to make payment files with the [division] \administrator\\ a verified statement of the facts, showing that his failure to report or to make payment or delivery was not willful or negligent but occurred because of circumstances beyond his control; and (b) The administrator so finds. Sec. 21. NRS 226.100 is hereby amended to read as follows: 226.100 1. The state treasurer may appoint and employ a chief deputy [and a deputy cashier] \, a deputy of operations, a deputy of investments, a deputy of cash management, a deputy administrator of unclaimed property and an assistant to the treasurer,\\ in the unclassified service of the state. 2. The chief deputy [state treasurer and deputy cashier] shall devote [their] \his\\ entire time and attention to the business of [their offices] \his office\\ and shall not pursue any other [businesses or occupations] \business or occupation\\ or hold any other [offices] \office\\ of profit. Sec. 22. NRS 226.110 is hereby amended to read as follows: 226.110 The state treasurer shall: 1. Receive and keep all money of the state which is not expressly required by law to be received and kept by some other person. 2. Receipt to the state controller for all money received, from whatever source, at the time of receiving it. 3. Establish the policies to be followed in the investment of money of the state, subject to the periodic review and approval or disapproval of those policies by the state board of finance. 4. Disburse the public money upon warrants drawn upon the treasury by the state controller, and not otherwise. The warrants must be registered, and paid in the order of their registry. 5. Keep a just, true and comprehensive account of all money received and disbursed. 6. Deliver in good order to his successor in office all money, records, books, papers and other things belonging to his office. 7. Fix, charge and collect reasonable fees for: (a) Investing the money in any fund or account which is credited for interest earned on money deposited in it; and (b) Special services rendered to other state agencies which increase the cost of operating his office. \8. Serve as the administrator of unclaimed property.\\ Sec. 23. NRS 232.510 is hereby amended to read as follows: 232.510 1. The department of business and industry is hereby created. 2. The department consists of a director and the following: (a) Consumer affairs division. (b) Division of financial institutions. (c) Housing division. (d) Manufactured housing division. (e) Real estate division. (f) [Division of unclaimed property. (g)] Division of agriculture. [(h)] \(g)\\ Division of minerals. [(i)] \(h)\\ Division of insurance. [(j)] \(i)\\ Division of industrial relations. [(k)] \(j)\\ Office of labor commissioner. [(l)] \(k)\\ Commission on postsecondary education. [(m)] \(l)\\ Taxicab authority. Sec. 24. NRS 232.520 is hereby amended to read as follows: 232.520 The director: T~1. Shall appoint a chief of each of the divisions of the department. In making the appointments, the director may obtain lists of qualified persons from professional organizations, associations or other groups recognized by the department, if any. The chief of the consumer affairs division is the commissioner of consumer affairs, the chief of the division of financial institutions is the commissioner of financial institutions, the chief of the housing division is the administrator of the housing division, the chief of the manufactured housing division is the administrator of the manufactured housing division [,] \and\\ the chief of the real estate division is the real estate administrator \.\\ [and the chief of the division of unclaimed property is the administrator of unclaimed property.] 2. Is responsible for the administration of all provisions of law relating to the jurisdiction, duties and functions of the department. The director may, if he deems it necessary to carry out his administrative responsibilities, be considered as a member of the staff of any division of the department for the purpose of budget administration or for the performance of any duty or the exercise of any power with respect to the division. 3. May, within the limits of the financial resources made available to him, promote, participate in the operation of, and create or cause to be created, any nonprofit corporation, pursuant to chapter 82 of NRS, which he determines is necessary or convenient for the exercise of the powers and duties of the department. The purposes, powers and operation of the corporation must be consistent with the purposes, powers and duties of the department. 4. For any bonds which he is otherwise authorized to issue, may issue bonds the interest on which is not exempt from federal income tax or excluded from gross revenue for the purposes of federal income tax. 5. May, except as otherwise provided by specific statute, adopt by regulation a schedule of fees and deposits to be charged in connection with the programs administered by him pursuant to chapters 348A and 349 of NRS. Except as so provided, the amount of any such fee or deposit must not exceed 2 percent of the principal amount of the financing. 6. May designate any person within the department to perform any of the duties or responsibilities, or exercise any of the authority, of the director on his behalf. Sec. 25. NRS 286.120 is hereby amended to read as follows: 286.120 1. The governing authority of the system [shall be] \is\\ a board of [seven] \eight\\ persons \, consisting of the state treasurer and seven members \\appointed by the governor. 2. The name of the board [shall be] \is\\ the public employees' retirement board. 3. The governor shall review periodically the broad administrative policies and performance standards as they are being administered by the board. 4. The governor may remove and replace any board member \appointed by him\\ for cause shown. Sec. 26. NRS 120A.050 is hereby repealed. Sec. 27. This act becomes effective on July 1, 1995. "T T" TEXT OF REPEALED SECTION "T T" 120A.050 "Division" defined. "Division" means the division of unclaimed property in the department of business and industry. -30-