1. If the Commission on Special License Plates determines that a charitable organization has failed to comply with one or more of the provisions of NRS 482.38277 or if, in a report provided to the Commission by the Legislative Auditor pursuant to NRS 482.38278 or 482.382785, the Legislative Auditor determines that a charitable organization has committed improper practices of financial administration, has filed with the Commission or the Department forms or records that are inadequate or inaccurate, or has failed to use adequate methods and procedures to ensure that all money received in the form of additional fees is expended solely for the benefit of the intended recipient, the Commission shall notify the charitable organization of that determination.

2. A charitable organization may request in writing a hearing, within 20 days after receiving notification pursuant to subsection 1, to respond to the determinations of the Commission or Legislative Auditor. The hearing must be held not later than 30 days after the receipt of the request for a hearing unless the parties, by written stipulation, agree to extend the time.

3. The Commission shall issue a decision on whether to uphold the original determination of the Commission or the Legislative Auditor or to overturn that determination. The decision required pursuant to this subsection must be issued:

(a) Immediately after the hearing, if a hearing was requested; or

(b) Within 30 days after the expiration of the 20-day period within which a hearing may be requested, if a hearing was not requested.

4. If the Commission decides to uphold its own determination that a charitable organization has failed to comply with one or more of the provisions of NRS 482.38277 or decides to uphold the determination of the Legislative Auditor that the organization has committed improper practices of financial administration, has filed with the Commission or the Department forms or records that are inadequate or inaccurate, or has failed to use adequate methods and procedures to ensure that all money received in the form of additional fees is expended solely for the benefit of the intended recipient, the Commission shall issue its decision in writing and may recommend that the Department:

(a) Terminate production and distribution of the particular design of the special license plate and collection of all additional fees collected on behalf of the charitable organization, and allow any holder of the special license plate to continue to renew the plate without paying the additional fee;

(b) Suspend the production and distribution of the particular design of special license plates and collection of all additional fees collected on behalf of the charitable organization, if the Department is still producing that design and allow any holder of the special license plate to renew the plate without paying the additional fee; or

(c) Suspend the distribution of all additional fees collected on behalf of the charitable organization for a specified period and allow the production and distribution of the special license plate and the collection of additional fees to continue if the Department is still producing that design, and allow holders of the special license plates to renew the plate with the payment of the additional fees.

5. If the Commission recommends that the Department take the action described in paragraph (c) of subsection 4, the Department, in consultation with the Commission, shall inform the charitable organization in writing of the corrective actions that must be taken and upon conclusion of the suspension determine whether the charitable organization completed the corrective actions. If the Department, in consultation with the Commission, determines that the charitable organization:

(a) Completed the corrective actions, the Department, in consultation with the Commission, may terminate the suspension and forward to the charitable organization any additional fees collected on behalf of the charitable organization during the suspension.

(b) Has not completed the corrective actions, the Department, in consultation with the Commission, may:

(1) Extend the period of the suspension, but not more than one time;

(2) Terminate production and distribution of the special license plate and collection of all additional fees on behalf of the charitable organization, allow any holders of the special license plate to renew the plate without paying the additional fee and distribute all fees collected during the suspension in a manner determined by the Department, in consultation with the Commission; or

(3) Continue production and distribution of the special license plate and, in consultation with the Commission, distribute all additional fees collected, including any fees held during the suspension, to another charitable organization that:

(I) Submits an application to the Department on a form prescribed and furnished by the Department;

(II) Meets all applicable requirements of subsection 1 of NRS 482.367002 for a charitable organization seeking to receive financial support from a special license plate; and

(III) Provides evidence satisfactory to the Department, in consultation with the Commission, that the additional fees collected on behalf of the charitable organization will be used for a purpose similar to the purpose for which the additional fees were intended to be used by the initial charitable organization.

6. If, in accordance with subsection 4 or paragraph (b) of subsection 5, the Commission recommends that the Department take adverse action against a charitable organization, the Commission shall notify the charitable organization, in writing, of that fact within 30 days after making the recommendation and include a description of any necessary corrective action that must be taken by the charitable organization, if applicable. A charitable organization aggrieved by a recommendation of the Commission may, within 30 days after the date on which it received notice of the recommendation, submit to the Department any facts, evidence or other information that it believes is relevant to the propriety of the Commission’s recommendation. Within 30 days after receiving all facts, evidence and other relevant information submitted to the Department by the aggrieved charitable organization, the Department shall render a decision, in writing, as to whether the Department accepts or rejects the Commission’s recommendation. The decision of the Department is a final decision for the purpose of judicial review.

(Added to NRS by 2007, 818; A 2009, 20; 2013, 1482; 2015, 1000; 2019, 206)