REGULATORY EXPERIMENTATION PROGRAM FOR PRODUCT INNOVATION

Nev. Rev. Stat. 657A
in effect

Nev. Rev. Stat. § 657A.100 Definitions.

As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 657A.110 to 657A.180, inclusive, have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 657A.110 “Applicable regulator” defined.

“Applicable regulator” means the Commissioner of Mortgage Lending, the Division of Mortgage Lending of the Department of Business and Industry, the Commissioner of Financial Institutions or the Division of Financial Institutions of the Department of Business and Industry, as applicable, responsible for regulating a financial product or service.

Nev. Rev. Stat. § 657A.120 “Consumer” defined.

“Consumer” means any person who purchases or otherwise enters into a transaction or agreement to receive a financial product or service.

Nev. Rev. Stat. § 657A.140 “Financial product or service” or “product or service” defined.

“Financial product or service” or “product or service” means any product, service, activity, business model, mechanism for delivery or element of any of these that: 1. Includes an innovation; and 2. But for the provisions of this chapter, is governed by the provisions of this title, chapter 645A , 645B , 645F or 645G of NRS or any regulation adopted pursuant thereto.

Nev. Rev. Stat. § 657A.150 “Innovation” defined.

“Innovation” means any use of a new or emerging technology, or any novel use of an existing technology, to address a problem, provide a benefit or otherwise offer or provide a financial product or service that is determined by the Director not to be widely available in this State.

Nev. Rev. Stat. § 657A.160 “Participant” defined.

“Participant” means a person whose application to participate in the Program has been approved by the Director pursuant to NRS 657A.420.

Nev. Rev. Stat. § 657A.170 “Program” defined.

“Program” means the Regulatory Experimentation Program for Product Innovation established and administered by the Director pursuant to this chapter.

Nev. Rev. Stat. § 657A.200 Establishment of Program.

In consultation with each applicable regulator, the Director shall establish and administer the Regulatory Experimentation Program for Product Innovation to enable a person to obtain limited access to markets in this State to test a financial product or service without: 1. Applying for or obtaining any license or other authorization otherwise required by any provision of this title, chapter 645A , 645B , 645F or 645G of NRS or any regulation adopted pursuant thereto; or 2. Otherwise complying with any provision of this title, chapter 645A , 645B , 645F or 645G of NRS or any regulation adopted pursuant thereto, except as otherwise required by the Director pursuant to NRS 657A.430 or 657A.620 .

Nev. Rev. Stat. § 657A.210 Regulations.

1. The Director shall, in consultation with the Consumer’s Advocate of the Bureau of Consumer Protection in the Office of the Attorney General and the applicable regulator, adopt regulations that establish protections for consumers of financial products or services provided through the Program. 2. The Director may adopt such other regulations as he or she deems necessary to carry out the provisions of this chapter.

Nev. Rev. Stat. § 657A.220 License or authorization from other jurisdiction; Director may enter into agreements concerning license or authorization.

1. Nothing contained in this chapter shall be deemed to prohibit a participant who holds a license or other authorization in another jurisdiction from acting in accordance with that license or authorization. 2. The Director may enter into an agreement with any governmental agency or official of any other jurisdiction to authorize: (a) A participant to operate in such a jurisdiction; or (b) A person who is authorized to operate in such a jurisdiction to be a participant.

Nev. Rev. Stat. § 657A.230 Participant deemed to hold a license or other authorization.

For the purposes of any federal statute or regulation requiring a participant to hold a license or other authorization from this State in connection with a financial product or service, a participant shall be deemed to hold such a license or other authorization.

Nev. Rev. Stat. § 657A.300 Financial product or service provided within Program: Requirements and limitations.

Any financial product or service provided within the scope of the Program is subject to the following requirements and limitations: 1. Any consumer of the product or service must be a resident of this State on the date that the product or service is first provided to the consumer. 2. Except as otherwise provided in subsection 3, not more than 5,000 consumers may be provided a given product or service by a participant during the period of testing. 3. If the Director approves a request for relief by a participant pursuant to NRS 657A.320 , not more than 7,500 consumers may be provided a given product or service by the participant during the period of testing.

Nev. Rev. Stat. § 657A.310 Limitations on transactions.

1. Except as otherwise provided in subsection 2, in addition to complying with any other applicable requirements and limitations, a participant who is testing a financial product or service within the scope of the Program for which a license is otherwise required pursuant to chapter 671 of NRS shall not receive for transmission or transmit during the period of testing: (a) More than $2,500 in any single transaction for a consumer. (b) More than $25,000 in any series of transactions for a consumer. 2. If the Director approves a request for relief by a participant pursuant to NRS 657A.320 , the participant shall not receive for transmission or transmit during the period of testing: (a) More than $15,000 in any single transaction for a consumer. (b) More than $50,000 in any series of transactions for a consumer.

Nev. Rev. Stat. § 657A.320 Request for relief from certain limitations; approval, denial, rescission or modification of request.

1. At any time during the period of testing a financial product or service, a participant may submit to the Director a written request for relief from the limitations of subsection 2 of NRS 657A.300 or subsection 1 of NRS 657A.310 , or both, as they otherwise apply to the participant. 2. In accordance with any regulations adopted pursuant to NRS 657A.210 , the Director may: (a) Approve a request for relief if the Director determines that the participant has adequate capitalization and satisfactory procedures and processes in place for the oversight of its operations and the management of risk. (b) Rescind or modify at any time his or her approval of a request for relief. 3. The approval, denial, rescission or modification of approval of a request for relief is final and not subject to administrative or judicial review.

Nev. Rev. Stat. § 657A.330 Required disclosures.

1. Before providing any financial product or service to a consumer, a participant shall disclose to the consumer: (a) The name and contact information of the participant; (b) The registration number applicable to the product or service, as issued by the Director pursuant to NRS 657A.430 ; (c) The fact that the product or service is generally exempt from any provisions of this title, chapter 645A , 645B , 645F or 645G of NRS or any regulation adopted pursuant thereto, except as otherwise required by the Director pursuant to NRS 657A.430 or 657A.620 ; (d) If applicable, the fact that the participant is not the holder of a license or other authorization in this State to provide any product or service outside the scope of the Program; (e) The fact that the participant has been approved to provide the product or service pursuant to this chapter, but that the product or service is not endorsed or recommended by the Director or any governmental agency; (f) The fact that the product or service is provided as part of a test and may be discontinued at or before the end of the test, with the date on which the test is expected to end; and (g) The fact that the consumer may submit a complaint to the Director relating to the product or service, with the telephone number and Internet address of the Internet website maintained by the Director pursuant to NRS 657A.600 . 2. The Director may condition approval of an application to participate in the Program on, or require at any time thereafter, the disclosure by a participant of information relating to a product or service in addition to the disclosures required by subsection 1. The Director shall give written notice to the participant of any additional disclosures required pursuant to this subsection. 3. The disclosures required by subsections 1 and 2, as applicable, must be clear and conspicuous and must be provided in English and Spanish. If a product or service is provided through an Internet website or mobile application, the consumer must acknowledge receipt of the disclosures before the completion of any transaction.

Nev. Rev. Stat. § 657A.340 Period of testing.

Unless a timely request for an extension of the period of testing is made and approved pursuant to NRS 657A.350: 1. The period of testing for a financial product or service ends 2 years after the date of the notice given pursuant to NRS 657A.420 . 2. Except as otherwise provided in this subsection, the participant shall, within 60 days after the end of the period of testing, wind down the test and cease offering or providing the product or service. If the product or service entails the performance of any ongoing duty or function, such as the servicing of a loan, the participant shall continue to perform or contract with another person for the continued performance of the duty or function.

Nev. Rev. Stat. § 657A.350 Request for extension of period of testing: Procedure; requirements; approval or denial by Director; report on extension.

1. A participant may request an extension of the period of testing to apply for any license or other authorization required for the financial product or service by any statute or regulation of this State. A participant who desires such an extension must submit a written request to the Director not less than 30 days before the end of the period of testing. 2. The Director shall: (a) Approve or deny the requested extension before the end of the prescribed period of testing; and (b) Give written notice of the approval or denial as provided in NRS 657A.420 . 3. Only one extension of the period of testing may be granted pursuant to this section. Any such extension must not exceed 1 year in duration. 4. A participant who obtains an extension shall report periodically to the Director, in writing, on the status of the efforts of the participant to obtain a license or other authorization. The first such report must be submitted within 90 days after the date of the notice described in subsection 2, and subsequent reports must be submitted at intervals of not more than 90 days until the application of the participant for a license or other authorization is finally approved or finally denied by the applicable regulator.

Nev. Rev. Stat. § 657A.400 Application to participate; requirements for application; fee.

1. A person who desires to participate in the Program to test a financial product or service must submit a written application in accordance with this section, in the form prescribed by the Director. A separate application must be filed for each product or service proposed for testing. 2. The application must show that the applicant will at all times during the test: (a) Be subject to the exercise of personal jurisdiction by the courts of this State; and (b) Establish and maintain a physical or virtual location that is reasonably accessible to the Director, from which testing will occur and at which all records, documents and data required by this chapter will be maintained. 3. The application must include: (a) A description of the product or service proposed for testing and an explanation of: (1) The innovation included in the product or service; (2) The regulatory scheme otherwise applicable to the product or service outside the Program; (3) Any benefit of the product or service to consumers; (4) Any risk of financial loss or other harm to consumers associated with the product or service; (5) The nature or features of the product or service that distinguish it from any similar product or service available in this State; and (6) The manner in which participation in the Program will facilitate a successful test of the product or service; (b) A statement of the proposed plan for testing the product or service, including: (1) An estimate of the dates or periods of time anticipated for entry into and exit from the relevant market in this State; (2) Measures to protect consumers from financial loss or other harm caused by a failure of the test; and (3) The plan to wind up and terminate the test; (c) The full legal name, address, telephone number, electronic mail address and website address of the applicant and, if the applicant is not a natural person, each officer, director or other principal of the applicant; (d) A description of any criminal conviction and any final administrative suspension, revocation or termination of a professional or occupational license of the applicant and any other person described in paragraph (c) if such a conviction or suspension, revocation or termination occurred in this State or another jurisdiction within the 5 years immediately preceding the date of the application; (e) The consent of the applicant to the provisions for choice of law and provisions for the selection of a forum as prescribed by the Director; and (f) Any other information deemed necessary by the Director. 4. The application must be submitted to the Director and be accompanied by a nonrefundable fee of not more than $1,000. The Director shall account separately for the money received from fees collected pursuant to this section and use that money solely to pay the expenses of administering the Program.

Nev. Rev. Stat. § 657A.410 Director may refuse incomplete application; applicant required to provide additional information upon request; Director required to consult with certain regulators; timeline to approve or deny application.

1. The Director may refuse to consider any application submitted pursuant to NRS 657A.400 if the application does not include the information required by NRS 657A.400 or any other information deemed necessary by the Director. The applicant shall provide, within the period directed by the Director, any additional information required in connection with the application. If the required information is not provided, the application may be denied by the Director as incomplete. 2. Upon receipt of a completed application and payment of the required fee, the Director shall identify and consult with each applicable regulator having an interest in the subject of the application. The consultation is advisory only and not binding on the Director. The consultation may relate to any matter deemed by the Director to be relevant to the application, including, without limitation: (a) Any license or other authorization previously issued by the applicable regulator, or the corresponding regulator in another jurisdiction, to the applicant or any other person described in paragraph (c) of subsection 3 of NRS 657A.400 ; (b) Any criminal, civil, administrative or other proceeding previously brought by or on behalf of the applicable regulator, or the corresponding regulator in any other jurisdiction, against the applicant or any other person described in paragraph (c) of subsection 3 of NRS 657A.400 ; and (c) The ability of the applicant or any other person described in paragraph (c) of subsection 3 of NRS 657A.400 to qualify for a license or other authorization from the applicable regulator upon the completion of testing. 3. Unless the Director and the applicant mutually agree to extend this period, the Director shall approve or deny an application within 90 days after the completed application is received.

Nev. Rev. Stat. § 657A.420 Approval or denial of application; notice of approval or denial.

1. Except as otherwise provided in this subsection, the Director may approve or deny any application or request submitted pursuant to this chapter. The Director may not approve an application or request if provision of the relevant financial product or service to consumers in this State would exceed the applicable limitation provided by subsection 2 or 3 of NRS 657A.300 . 2. The Director shall give the applicant or participant written notice of the approval or denial of the application or request within 5 business days after the date of approval or denial. 3. The approval or denial of an application or request is final and not subject to administrative or judicial review.

Nev. Rev. Stat. § 657A.430 Issuance of registration upon approval of application; conditional approval of application.

1. If the Director approves an application to participate in the Program: (a) The applicant shall be deemed a participant. (b) The Director shall issue a registration number unique to the approval. (c) Except as otherwise required by the Director pursuant to subsection 2 or NRS 657A.620 , a product or service offered or provided within the scope of the Program is exempt from any provision of this title, chapter 645A , 645B , 645F or 645G of NRS or any regulation adopted pursuant thereto. 2. In addition to any other requirements or limitations of NRS 657A.300 or 657A.310 that apply to a product or service, the Director may condition approval of an application upon compliance by the participant with one or more provisions of this title, chapter 645A , 645B , 645F or 645G of NRS or any regulation adopted pursuant thereto. 3. A notice of approval of an application given pursuant to NRS 657A.420 must be accompanied by a copy of the provisions of this chapter and any applicable regulations of the Director then in effect, and set forth: (a) The registration number applicable to the approval; (b) The period of testing prescribed by NRS 657A.340 ; (c) The general limitations of NRS 657A.300 , any additional requirements or limitations applicable specifically to the product or service pursuant to NRS 657A.310 and any conditions imposed pursuant to subsection 2 or NRS 657A.620 ; and (d) Any additional information required by the Director to be disclosed to consumers pursuant to subsection 2 of NRS 657A.330 .

Nev. Rev. Stat. § 657A.500 Regulations concerning reporting; required records and reporting; participant to notify Director of failed product or service or unauthorized acquisition of computerized data.

1. The Director may establish by regulation periodic reporting requirements for participants in the Program. 2. On request by the Director, a participant shall make any requested record, information or data available for inspection and copying by the Director. 3. Each participant shall retain, for not less than 2 years after the end of the prescribed period of testing or for such longer period as the Director requires by order or regulation, all records and data produced in the ordinary course of business relating to a financial product or service tested in the Program. 4. If a product or service fails before the end of the period of testing, the participant shall: (a) Give written notice of the failure to the Director. (b) Include in the notice a description of any action taken by the participant to protect consumers from financial loss or other harm caused by the failure. 5. In addition to providing any other disclosure or notice of the unauthorized acquisition of computerized data required by any applicable statute or regulation, a participant shall promptly notify the Director of any unauthorized acquisition of computerized data constituting a breach of the security of the system data as that term is defined in NRS 603A.020 .

Nev. Rev. Stat. § 657A.510 Confidentiality of records and information; immunity from liability for Director and applicable regulators concerning disclosure of certain records and information; admissibility of certain records and information.

1. Any record or information in a record submitted to or obtained by the Director or an applicable regulator pursuant to this chapter: (a) Except as otherwise provided in this section, is confidential and not a public book or record within the meaning of NRS 239.010 . (b) May be disclosed by the Director or an applicable regulator to: (1) Any governmental agency or official; or (2) A federal, state or county grand jury in response to a lawful subpoena. 2. Any disclosure pursuant to subsection 1 of a complaint relating to a financial product or service or the results of an examination, inquiry or investigation relating to a participant or product or service does not make the relevant record or information in a record a public record within the meaning of NRS 239.010 , and a participant shall not disclose any such record or information to the general public except in connection with any disclosure required by law. A participant shall not disclose, use or refer to any comments, conclusions or results of an examination, inquiry or investigation in any communication to a consumer or potential consumer. 3. The Director and any applicable regulator are immune from civil liability for any damages sustained because of a disclosure of any record or information in a record that is received or obtained pursuant to this chapter. 4. Nothing contained in this section shall be deemed to preclude the disclosure of any record or information in a record that is admissible in evidence in any civil or criminal proceeding brought by a state or federal law enforcement agency to enforce or prosecute a civil or criminal violation of any law.

Nev. Rev. Stat. § 657A.520 Electronic form of certain information; substitution of certain information.

Any information, writing, signature, record or disclosure required by the provisions of this chapter or any regulation adopted pursuant thereto, may: 1. Be obtained, recorded, provided or maintained by a participant in electronic form. 2. With the approval of the Director, be substituted by a participant with any substantially equivalent information, writing, signature, record or disclosure.

Nev. Rev. Stat. § 657A.530 Report by Director to Legislature.

1. On or before March 1 of each year, the Director of the Department of Business and Industry shall prepare and submit to the Director of the Legislative Counsel Bureau, for transmittal to the Legislature, a report on the operation and status of the Program. 2. The report must include, for the immediately preceding calendar year: (a) The number of applications submitted to participate in the Program, and the number of applications that were approved or denied; (b) With respect to the applications that were denied, a description of the reasons for denial; and (c) With respect to the applications that were approved: (1) A description of each financial product or service provided by each participant in the Program; (2) A statement of the number of participants providing each product or service; and (3) An estimate of the number of consumers using each product or service. 3. The report may include any recommendations for legislation relating to the Program and any other information that the Director of the Department of Business and Industry deems relevant.

Nev. Rev. Stat. § 657A.600 Establishment of toll-free telephone number and Internet website for complaints.

The Director shall establish and maintain a toll-free telephone number and Internet website through which a consumer may submit a complaint relating to any financial product or service provided by a participant.

Nev. Rev. Stat. § 657A.610 Powers of Director to enforce chapter.

1. If the Director has reasonable cause to believe that a participant has engaged in, is engaging in or threatens to engage in any act or omission in violation of any provision of this chapter or any other applicable statute or regulation for which a civil or criminal penalty is prescribed, the Director may: (a) Request that the Attorney General bring an action in any court of competent jurisdiction to enjoin the violation; (b) Remove the participant from the Program or order the participant to exit the Program; or (c) Take any combination of those actions. 2. A removal of or compelled exit of a participant from the Program is final and not subject to administrative or judicial review.

Nev. Rev. Stat. § 657A.620 Powers of Director to take action relating to certain acts or omissions of participants.

1. If the Director has reasonable cause to believe that a participant has engaged in, is engaging in or threatens to engage in any act or omission that the Director determines is inconsistent with the health, safety or welfare of consumers or the public generally, the Director may: (a) Proceed to adopt a regulation to address the issue pursuant to NRS 657A.210 ; (b) Require the participant to comply with one or more provisions of this title, chapter 645A , 645B , 645F or 645G of NRS or any regulation adopted pursuant thereto; (c) Remove the participant from the Program or order the participant to exit the Program; or (d) Take any combination of those actions. 2. Any action taken by the Director pursuant to this section is final and not subject to judicial or administrative review.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-657A.htmlFetched: 10/4/2026