NRS639.515. Bond or other form of security required; exceptions.

      1.  Except as otherwise provided in this subsection, before the Board issues a license to engage in the wholesale distribution of prescription drugs, the applicant shall file with the Board a bond in an amount not less than $25,000 and not more than $100,000, as determined by the Board, executed by the applicant as principal, and by a corporation qualified under the laws of this State as surety, payable to this State and conditioned upon the compliance with the requirements of this chapter applicable to wholesalers. An applicant that is a publicly traded corporation is not required to file a bond or other security pursuant to this section.

      2.  In lieu of the bond required pursuant to subsection 1, an applicant may deposit with the Board a like amount of lawful money of the United States or any other form of security authorized by NRS 100.065. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the certificate must state that the amount is not available for withdrawal except upon order of the Board.

      3.  The Board may, by agreement with a wholesaler who has been licensed with the Board for 5 consecutive years or more, allow a reduction in the amount of the bond or other security as provided in subsections 1 and 2, if the wholesaler has conducted business in accordance with the applicable provisions of this chapter for the immediately preceding 5 years, but no bond may be in an amount less than $5,000. The Board may at any time thereafter require the licensee to increase the amount of the bond or other security if evidence is presented to the Board supporting this requirement.

      4.  The purpose of the bond and other security required by this section is to secure payment of any fines imposed by the Board pursuant to NRS 639.255 and any costs incurred by the Board regarding the license of a wholesaler that are imposed pursuant to NRS 622.400 or 622.410 which the licensee fails to pay within 30 days after the fines or costs become due and payable. The Board may make a claim against a bond or other security pursuant to this subsection until 1 year after the license ceases to be valid or until 60 days after any administrative proceeding against the licensee conducted pursuant to NRS 639.241 to 639.2576, inclusive, is concluded.

      5.  Except as otherwise provided in this subsection, before renewing a license to engage in wholesale distribution, the Board shall require the licensee to file with the Board satisfactory evidence that the surety bond or other security is in full force. A licensee that is a publicly traded corporation is not required to maintain a bond or other security.

      6.  Failure of an applicant or licensee to file or maintain in full force the required bond or other security constitutes cause for the Board to deny, revoke, suspend or refuse to renew a license to engage in wholesale distribution.

      7.  All money received by the Board pursuant to this section must be deposited in accordance with NRS 639.081.

      (Added to NRS by 2005, 1610)