AB264 - 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 - *AB264_R1* ASSEMBLY BILL NO. 264–ASSEMBLYMEMBER MILLER FEBRUARY 20, 2025 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to the issuance of certain professional and occupational licenses. (BDR 54-926) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to professional licensing; establishing procedures by which an applicant for certain professional or occupational licenses may obtain judicial review of the decision of a regulatory body denying the application of the applicant on the basis of the moral character or criminal history of the applicant; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law provides for the licensure and regulation of certain professions and 1 occupations in this State. (Title 54 of NRS) Existing law, in general, designates 2 various state agencies, boards and commissions that are authorized to license and 3 regulate those professions and occupations as “regulatory bodies.” (NRS 622.060) 4 Existing law authorizes or requires various regulatory bodies to deny an application 5 for the issuance of a professional or occupational license based on the moral 6 character or criminal history of the applicant. For example, existing law authorizes 7 the Nevada State Board of Accountancy to refuse to grant a certificate of certified 8 public accountant to an applicant if he or she has been convicted of a felony in this 9 State. (NRS 628.190) Similarly, existing law requires an applicant for a license as 10 an athletic trainer to be of good moral character. (NRS 640B.310) This bill sets 11 forth procedures by which an applicant for the issuance of a “license,” which 12 existing law defines to mean any license, certificate, registration, permit or other 13 similar type of authorization issued by a regulatory body, may obtain judicial 14 review of a final decision of the regulatory body denying the application of the 15 applicant on the basis of the moral character or criminal history of the applicant. 16 (NRS 622.030) 17 This bill requires a regulatory body that denies an application for the issuance 18 of a license on the basis of the moral character or criminal history of the applicant 19 to, before issuing a final decision on the matter, advise the applicant of the 20 – 2 – - *AB264_R1* administrative remedies available for challenging the denial, if any, and the 21 applicable timelines for pursuing such remedies. If the regulatory body issues a 22 final decision denying the application of the applicant on the basis of the moral 23 character or criminal history of the applicant, this bill requires the regulatory body 24 to provide written notice to the applicant within 10 days after the issuance of the 25 final decision. This bill authorizes the applicant to file a petition in the district court 26 seeking review of the decision within 30 days after receipt of the notice. Under this 27 bill, the regulatory body is required to prove by a preponderance of the evidence at 28 the hearing on the petition that the issuance of the license to the applicant would 29 pose a direct, substantial and unmitigatable risk to public health or safety based on 30 the duties and responsibilities of the profession or occupation in which the 31 applicant wishes to engage. If the court determines that the regulatory body has met 32 that burden of proof, this bill requires the court to issue an order affirming the 33 decision of the regulatory body. If the court determines that the regulatory body has 34 not met that burden of proof, this bill requires the court to order the regulatory body 35 to issue the applicant the license. Under this bill, the regulatory body is required to 36 comply with the order, notwithstanding any other provision of existing law. 37 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 622 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. If a regulatory body denies an application for the issuance 3 of a license on the basis of the moral character or criminal history 4 of the applicant, the regulatory body shall, before issuing a final 5 decision on the matter, advise the applicant of the administrative 6 remedies available for challenging the denial, if any, and the 7 applicable timelines for pursuing such remedies. The regulatory 8 body shall, within 10 days after issuing a final decision denying 9 the application of the applicant on the basis of the moral character 10 or criminal history of the applicant, provide to the applicant 11 written notice of the final decision. The notice must set forth the 12 basis for the final decision of the regulatory body. 13 2. An applicant who receives a notice of a final decision 14 provided pursuant to subsection 1 may, within 30 days after 15 receipt of the notice, file a petition in the district court seeking 16 review of the decision of the regulatory body. 17 3. Upon the filing of a petition pursuant to subsection 2, the 18 court shall set a time for a hearing on the petition and provide 19 notice of the hearing to the applicant and regulatory body. At the 20 hearing, the regulatory body has the burden of proof of 21 establishing by a preponderance of the evidence that the issuance 22 to the applicant of the license for which the applicant applied 23 would pose a direct, substantial and unmitigatable risk to public 24 health or safety based on the duties and responsibilities of the 25 profession or occupation in which the applicant wishes to engage. 26 – 3 – - *AB264_R1* The regulatory body may present the court with any relevant 1 evidence showing how it reached its decision on the matter. 2 Evidence of any prior arrests of the applicant is not sufficient in 3 itself to meet the burden of proof imposed on the regulatory body 4 pursuant to this subsection. 5 4. If the court determines that the licensing agency has met 6 the burden of proof required by subsection 3, the court shall issue 7 an order affirming the decision of the regulatory body. The order 8 must contain specific findings of fact and conclusions of law 9 supporting the decision of the court. The court may also order the 10 regulatory body to meet and confer with the applicant concerning 11 any necessary actions that the applicant must take for the 12 regulatory body to not deny the applicant a license based on the 13 moral character or criminal history of the applicant. 14 5. If the court determines that the regulatory body has failed 15 to meet the burden of proof required by subsection 3, the court 16 shall issue an order requiring the regulatory body to issue the 17 license to the applicant. Notwithstanding any other provision of 18 law, the regulatory body shall comply with the order and issue the 19 license to the applicant. 20 6. The provisions of this section do not apply to an applicant 21 for the issuance of a license issued by the State Contractors’ 22 Board pursuant to chapter 624 of NRS. 23 7. As used in this section, “applicant” means a natural 24 person who applies for a license. 25 H