AJR8 - Proposes to amend the Nevada Constitution to provide for the establishment of a business court. (BDR C-668)

- 83rd Session (2025) Assembly Joint Resolution No. 8–Assemblymembers Dalia and Backus FILE NUMBER.......... ASSEMBLY JOINT RESOLUTION—Proposing to amend the Nevada Constitution to authorize the Legislature, to the extent money is available, to provide by law for the establishment of a business court. Legislative Counsel’s Digest: This resolution proposes an amendment to the Nevada Constitution to authorize the Legislature, to the extent money is available, to provide by law for the establishment of a business court which, if established, will have exclusive original jurisdiction to hear disputes involving shareholder rights, mergers and acquisitions, fiduciary duties, receiverships involving business entities and other commercial or contractual disputes between business entities and any other business disputes of a similar nature in which equitable or declaratory relief is sought. If the Legislature establishes a business court, the constitutional amendment proposed by this resolution requires the Legislature to: (1) establish by law a Special Nominating Commission for the selection of nominees for the office of business court judge; (2) provide by law for the appointment of business court judges by the Governor from among three nominees for each seat chosen by the Commission; (3) prescribe by law the powers, duties and responsibilities of any such judges; and (4) fix by law the terms of any such judges. The constitutional amendment proposed by this resolution also provides that if the Legislature establishes a business court, the Supreme Court will have exclusive appellate jurisdiction of cases within the original jurisdiction of the business court. Finally, the constitutional amendment proposed by this resolution makes various conforming changes to provisions in the Nevada Constitution relating to the business court. EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. RESOLVED BY THE ASSEMBLY AND SENATE OF THE STATE OF NEVADA, JOINTLY, That a new section, designated Section 3B, be added to Article 6 of the Nevada Constitution to read as follows: Sec. 3B. 1. The Legislature may, to the extent money is available, provide by law for the establishment of a business court consisting of three judges or such greater number as the Legislature may provide by law pursuant to subsection 9. 2. If the Legislature provides by law for the establishment of a business court pursuant to subsection 1, the business court shall have exclusive original jurisdiction to hear disputes involving shareholder rights, mergers and acquisitions, fiduciary duties, receiverships involving business entities and other commercial or contractual disputes between business entities and any other business – 2 – - 83rd Session (2025) disputes of a similar nature in which equitable or declaratory relief is sought. Upon receipt of a petition, the chief judge of the business court may, in his or her reasonable discretion, order the transfer of a dispute presented to the business court to the appropriate district court if the chief judge finds that the dispute would be more appropriately adjudicated in the district court. 3. If the Legislature provides by law for the establishment of a business court pursuant to subsection 1, the Legislature shall: (a) Establish by law a Special Nominating Commission for the selection of nominees for the office of business court judge and prescribe by law the composition of the Commission in accordance with subsection 5; (b) Prescribe by law the procedures governing the nomination process of the Special Nominating Commission; (c) Provide for the appointment of: (1) Business court judges by the Governor in accordance with subsection 4; and (2) A chief judge of the business court by the Chief Justice of the Supreme Court; (d) Prescribe by law the powers, duties and responsibilities of business court judges in accordance with subsection 6; and (e) Fix by law the: (1) Terms of office of business court judges in accordance with subsection 7; and (2) Term of a chief judge of the business court in accordance with subsection 8. 4. The judges of the business court must be appointed by the Governor from among three nominees selected for each individual seat by the Special Nominating Commission established pursuant to paragraph (a) of subsection 3. A nominee selected by the Commission must, as determined in the reasonable discretion of the Commission, have substantial experience as a practitioner or judge in one or more areas of law within the jurisdiction of the business court. 5. The Special Nominating Commission must be composed of the following members, or their respective designees: (a) The Speaker of the Assembly; (b) The Majority Leader of the Senate; – 3 – - 83rd Session (2025) (c) The Chief Justice of the Supreme Court of Nevada; (d) The Chief Judges of the two most populous judicial districts; (e) A district judge from a judicial district other than the two most populous judicial districts; and (f) Such additional members as the Legislature may prescribe by law. 6. A business court judge must, for matters within the jurisdiction of the business court, have the same powers and duties and be subject to the same limitations and restrictions that are applicable to a district judge. 7. Except for the business court judges initially appointed, the term of office of each business court judge must be 6 years. Each business court judge who desires to succeed himself or herself must, on or before July 1 next preceding the expiration of his or her term of office, declare his or her candidacy in the manner provided by law. With respect to each business court judge who so declares, the question must be presented at the next general election, in a form provided by law, whether that business court judge shall succeed himself or herself. If 55 percent or more of the votes cast on the question are in favor of the business court judge succeeding himself or herself, the business court judge shall succeed himself or herself. The term of office of each business court judge who succeeds himself or herself is 6 years, and that term begins on the first Monday of January next following the general election at which the business court judge was chosen to succeed himself or herself. If a judge does not declare his or her candidacy or if less than 55 percent of the votes cast on the question are cast in favor of the business court judge succeeding himself or herself, a vacancy is created at the expiration of his or her term which must be filled by appointment pursuant to subsection 4. 8. Except for the initial chief judge of the business court, the chief judge serves a term of 6 years. The chief judge may: (a) Succeed himself or herself. (b) Resign the position of chief judge without resigning from the business court. 9. If the Legislature provides by law for the establishment of a business court pursuant to subsection 1, the Legislature may, as the caseload of the business court – 4 – - 83rd Session (2025) may require and to the extent that money is available therefor, provide by law for an increase or decrease in the number of business court judges or divisions of the business court as may be necessary for the proper and timely administration of the business court docket. 10. The Supreme Court has exclusive appellate jurisdiction in all cases arising in a business court. And be it further RESOLVED, That Section 1 of Article 6 of the Nevada Constitution be amended to read as follows: Section 1. 1. The judicial power of this State is vested in a court system, comprising a Supreme Court, a court of appeals, a business court, if the Legislature establishes such a court pursuant to Section 3B of this Article, district courts and justices of the peace. 2. The Legislature may also establish, as part of the system, courts for municipal purposes only in incorporated cities and towns. And be it further RESOLVED, That Section 7 of Article 6 of the Nevada Constitution be amended to read as follows: Sec. 7. The times of holding the Supreme Court, the court of appeals , the business court, if the Legislature establishes such a court pursuant to Section 3B of this Article, and the district courts must be as fixed by law. The terms of the Supreme Court must be held at the seat of government unless the Legislature otherwise provides by law, except that the Supreme Court may hear oral argument at other places in the State. The terms of the court of appeals and the business court, if the Legislature establishes such a court pursuant to Section 3B of this Article, must be held at the place provided by law. The terms of the district courts must be held at the county seats of their respective counties unless the Legislature otherwise provides by law. And be it further RESOLVED, That Section 8 of Article 6 of the Nevada Constitution be amended to read as follows: Sec. 8. 1. The Legislature shall determine the number of justices of the peace to be elected in each city and township of the State and shall fix by law their qualifications, their terms of office and the limits of their civil and criminal jurisdiction, according to the amount in controversy, the – 5 – - 83rd Session (2025) nature of the case, the penalty provided or any combination of these. 2. The provisions of this section affecting the number, qualifications, terms of office and jurisdiction of justices of the peace become effective on the first Monday of January, 1979. 3. The Legislature shall also prescribe by law the manner, and determine the cases, in which appeals may be taken from justices and other courts. The Supreme Court, the court of appeals, the business court, if the Legislature establishes such a court pursuant to Section 3B of this Article, the district courts and such other courts as the Legislature designates are courts of record. And be it further RESOLVED, That Section 11 of Article 6 of the Nevada Constitution be amended to read as follows: Sec. 11. The justices of the Supreme Court, the judges of the court of appeals , the business court judges, if the Legislature establishes such a court pursuant to Section 3B of this Article, and the district judges are ineligible to any office, other than a judicial office, during the term for which they have been elected or appointed. All elections or appointments of any such judges by the people, Legislature or otherwise during said period to any office other than judicial are void. And be it further RESOLVED, That Section 15 of Article 6 of the Nevada Constitution be amended to read as follows: Sec. 15. The justices of the Supreme Court, the judges of the court of appeals, the business court judges, if the Legislature establishes a business court pursuant to Section 3B of this Article, and the district judges are each entitled to receive for their services a compensation to be fixed by law and paid in the manner provided by law, which must not be increased or diminished during the term for which they have been elected [,] or appointed, unless a vacancy occurs, in which case the successor of the former incumbent is entitled to receive only such salary as may be provided by law at the time of his election or appointment. A provision must be made by law for setting apart from each year’s revenue a sufficient amount of money to pay such compensation. And be it further – 6 – - 83rd Session (2025) RESOLVED, That Section 20 of Article 6 of the Nevada Constitution be amended to read as follows: Sec. 20. 1. When a vacancy occurs before the expiration of any term of office in the Supreme Court , [or] the court of appeals or the business court, if the Legislature establishes such a court pursuant to Section 3B of this Article, or among the district judges, the Governor shall appoint a justice or judge from among three nominees selected for such individual vacancy by the Commission on Judicial Selection or the Special Nominating Commission, as applicable. 2. [The] Except as otherwise provided in this subsection, the term of office of any justice or judge so appointed expires on the first Monday of January following the next general election. Any business court judge who is appointed to fill a vacancy before the end of a term shall serve the remainder of the unexpired term. 3. Each nomination for the Supreme Court or the court of appeals must be made by the permanent Commission, composed of: (a) The Chief Justice or an associate justice designated by him; (b) Three members of the State Bar of Nevada, a public corporation created by statute, appointed by its Board of Governors; and (c) Three persons, not members of the legal profession, appointed by the Governor. 4. Each nomination for the district court must be made by a temporary commission composed of: (a) The permanent Commission; (b) A member of the State Bar of Nevada resident in the judicial district in which the vacancy occurs, appointed by the Board of Governors of the State Bar of Nevada; and (c) A resident of such judicial district, not a member of the legal profession, appointed by the Governor. 5. If at any time the State Bar of Nevada ceases to exist as a public corporation or ceases to include all attorneys admitted to practice before the courts of this State, the Legislature shall provide by law, or if it fails to do so the Supreme Court shall provide by rule, for the appointment of attorneys at law to the positions designated in this Section to be occupied by members of the State Bar of Nevada. – 7 – - 83rd Session (2025) 6. The term of office of each appointive member of the permanent Commission, except the first members, is 4 years. Each appointing authority shall appoint one of the members first appointed for a term of 2 years. If a vacancy occurs, the appointing authority shall fill the vacancy for the unexpired term. The additional members of a temporary commission must be appointed when a vacancy occurs, and their terms expire when the nominations for such vacancy have been transmitted to the Governor. 7. An appointing authority shall not appoint to the permanent Commission more than: (a) One resident of any county. (b) Two members of the same political party.  No member of the permanent Commission may be a member of the Commission on Judicial Discipline. 8. After the expiration of 30 days from the date on which the Commission on Judicial Selection has delivered to him its list of nominees for any v [Text truncated for display. Full text available on LegiScan.]