Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Consumer Protection Securities topic
No spam. Unsubscribe anytime.
Senate panel creates victims’ securities‑fraud restitution account, removes automatic diversion of civil penalties
Summary
The Senate Finance Committee approved a revised Senate Bill 76 to create a Victims of Securities Fraud Restitution Fund but removed an automatic diversion of civil penalties as the bill’s funding source; the committee left the account able to accept gifts and grants and moved the funding decision to a later session.
The Nevada Senate Finance Committee on May 21 approved a change to Senate Bill 76 that creates a Victims of Securities Fraud Restitution Fund but removes an automatic funding diversion of civil penalties to pay victims.
The bill, presented by Gabriel Dicara of the Secretary of State’s office, would create an account to allow the office to provide compensation to victims after a judgment requires payment but before the perpetrator pays. The bill originally proposed diverting a portion of civil penalties collected by the Secretary of State’s securities division — capped at $500,000 — into the new fund. Dicara told the committee those civil penalties are irregular, and the office sent a conceptual amendment moving the effective date of the funding diversion to July 1, 2027, while allowing the account to be created immediately so it could accept gifts and grants.
Members questioned the choice to adopt a delayed funding mechanism versus asking the legislature for an appropriation later. Senator Sandra Cannizzaro asked whether the change effectively removes the fiscal note and whether the program could operate in the current biennium if private grants or donations are secured. Dicara and Deputy/Assistant presenters said the account could accept gifts and grants and that those contributions might enable some payouts before any state diversion began.
During the committee’s work session, LCB fiscal staff summarized the conceptual amendment discussed at the hearing and said members had the option to remove the statutory diversion and keep only the account-creation language. Senator Nicole Cannizzaro moved to amend by removing the funding diversion while retaining the account-authorizing language; Senator Wynne moved the committee action and Senator Cannizzaro seconded; Senators Titus, Stone and Buck recorded no votes on the motion. The committee adopted the amendment and passed the bill out of committee.
No public testimony was received in person or by phone during the hearing.
The change leaves the Victims of Securities Fraud Restitution Fund in statute but without the automatic funding mechanism; committee discussion and the conceptual amendment open the possibility the Legislature could consider a separate appropriation or revisit diversion language in the 2027 session if needed.
Votes at work session: The committee amended SB76 to remove the funding diversion and passed the bill out of committee. The motion was seconded by Senator Cannizzaro; Senators Titus, Stone and Buck were recorded as opposed.
