SB 398 (2017) — blockchain recognized under UETA; local governments barred from taxing/restricting blockchain use, enrolled
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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
Senate Bill No. 398–Senator Kieckhefer
CHAPTER..........
AN ACT relating to electronic transactions; recognizing blockchain
technology as a type of electronic record for the purposes of
the Uniform Electronic Transactions Act; prohibiting a local
government from taxing or imposing restrictions upon the
use of a blockchain; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law gives legal recognition to electronic records, signatures and
contracts that comply with certain requirements and allows an electronic record or
signature to satisfy a requirement for a written record or signature in certain
circumstances. (NRS 719.240-719.350) Section 1 of this bill defines the term
“blockchain,” and section 3 of this bill includes blockchain within the definition of
electronic record for similar purposes. Sections 4 and 6 of this bill prohibit a local
government from: (1) imposing a tax or fee on the use of a blockchain; (2)
requiring a certificate, license or permit to use a blockchain; and (3) imposing any
other requirement relating to the use of a blockchain.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 719 of NRS is hereby amended by adding
thereto a new section to read as follows:
“Blockchain” means an electronic record of transactions or
other data which is:
1. Uniformly ordered;
2. Redundantly maintained or processed by one or more
computers or machines to guarantee the consistency or
nonrepudiation of the recorded transactions or other data; and
3. Validated by the use of cryptography.
Sec. 2. NRS 719.020 is hereby amended to read as follows:
719.020 As used in this chapter, unless the context otherwise
requires, the words and terms defined in NRS 719.030 to 719.180,
inclusive, and section 1 of this act have the meanings ascribed to
them in those sections.
Sec. 3. NRS 719.090 is hereby amended to read as follows:
719.090 “Electronic record” means a record created, generated,
sent, communicated, received or stored by electronic means. The
term includes, without limitation, a blockchain.
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Sec. 4. Chapter 244 of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A board of county commissioners shall not:
(a) Impose any tax or fee on the use of a blockchain by any
person or entity;
(b) Require any person or entity to obtain from the board of
county commissioners any certificate, license or permit to use a
blockchain; or
(c) Impose any other requirement relating to the use of a
blockchain by any person or entity.
2. Nothing in this section prohibits a county from using a
blockchain in the performance of its powers or duties in a manner
not inconsistent with the provisions of chapter 719 of NRS.
3. As used in this section, “blockchain” has the meaning
ascribed to it in section 1 of this act.
Sec. 5. NRS 244.335 is hereby amended to read as follows:
244.335 1. Except as otherwise provided in subsections 2, 3
and 4, and NRS 244.33501, and section 4 of this act, a board of
county commissioners may:
(a) Except as otherwise provided in NRS 244.331 to 244.3345,
inclusive, 598D.150 and 640C.100, regulate all character of lawful
trades, callings, industries, occupations, professions and business
conducted in its county outside of the limits of incorporated cities
and towns.
(b) Except as otherwise provided in NRS 244.3359 and 576.128,
fix, impose and collect a license tax for revenue or for regulation, or
for both revenue and regulation, on such trades, callings, industries,
occupations, professions and business.
2. The county license boards have the exclusive power in their
respective counties to regulate entertainers employed by an
entertainment by referral service and the business of conducting a
dancing hall, escort service, entertainment by referral service or
gambling game or device permitted by law, outside of an
incorporated city. The county license boards may fix, impose and
collect license taxes for revenue or for regulation, or for both
revenue and regulation, on such employment and businesses.
3. A board of county commissioners shall not require that a
person who is licensed as a contractor pursuant to chapter 624 of
NRS obtain more than one license to engage in the business of
contracting or pay more than one license tax related to engaging in
the business of contracting, regardless of the number of
classifications or subclassifications of licensing for which the person
is licensed pursuant to chapter 624 of NRS.
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–3–
4. The board of county commissioners or county license board
shall not require a person to obtain a license or pay a license tax on
the sole basis that the person is a professional. As used in this
subsection, “professional” means a person who:
(a) Holds a license, certificate, registration, permit or similar
type of authorization issued by a regulatory body as defined in NRS
622.060 or who is regulated pursuant to the Nevada Supreme Court
Rules; and
(b) Practices his or her profession for any type of compensation
as an employee.
5. The county license board shall provide upon request an
application for a state business registration pursuant to chapter 76 of
NRS. No license to engage in any type of business may be granted
unless the applicant for the license:
(a) Signs an affidavit affirming that the business has complied
with the provisions of chapter 76 of NRS; or
(b) Provides to the county license board the business
identification number of the applicant assigned by the Secretary of
State pursuant to NRS 225.082 which the county may use to
validate that the applicant is currently in good standing with the
State and has complied with the provisions of chapter 76 of NRS.
6. No license to engage in business as a seller of tangible
personal property may be granted unless the applicant for the
license:
(a) Presents written evidence that:
(1) The Department of Taxation has issued or will issue a
permit for this activity, and this evidence clearly identifies the
business by name; or
(2) Another regulatory agency of the State has issued or will
issue a license required for this activity; or
(b) Provides to the county license board the business
identification number of the applicant assigned by the Secretary of
State pursuant to NRS 225.082 which the county may use to
validate that the applicant is currently in good standing with the
State and has complied with the provisions of paragraph (a).
7. Any license tax levied for the purposes of NRS 244.3358 or
244A.597 to 244A.655, inclusive, constitutes a lien upon the real
and personal property of the business upon which the tax was levied
until the tax is paid. The lien has the same priority as a lien for
general taxes. The lien must be enforced:
(a) By recording in the office of the county recorder, within 6
months after the date on which the tax became delinquent or was
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otherwise determined to be due and owing, a notice of the tax lien
containing the following:
(1) The amount of tax due and the appropriate year;
(2) The name of the record owner of the property;
(3) A description of the property sufficient for identification;
and
(4) A verification by the oath of any member of the board of
county commissioners or the county fair and recreation board; and
(b) By an action for foreclosure against the property in the same
manner as an action for foreclosure of any other lien, commenced
within 2 years after the date of recording of the notice of the tax
lien, and accompanied by appropriate notice to other lienholders.
8. The board of county commissioners may delegate the
authority to enforce liens from taxes levied for the purposes of NRS
244A.597 to 244A.655, inclusive, to the county fair and recreation
board. If the authority is so delegated, the board of county
commissioners shall revoke or suspend the license of a business
upon certification by the county fair and recreation board that the
license tax has become delinquent, and shall not reinstate the license
until the tax is paid. Except as otherwise provided in NRS 239.0115
and 244.3357, all information concerning license taxes levied by an
ordinance authorized by this section or other information concerning
the business affairs or operation of any licensee obtained as a result
of the payment of such license taxes or as the result of any audit or
examination of the books by any authorized employee of a county
fair and recreation board of the county for any license tax levied for
the purpose of NRS 244A.597 to 244A.655, inclusive, is
confidential and must not be disclosed by any member, officer or
employee of the county fair and recreation board or the county
imposing the license tax unless the disclosure is authorized by the
affirmative action of a majority of the members of the appropriate
county fair and recreation board. Continuing disclosure may be so
authorized under an agreement with the Department of Taxation or
Secretary of State for the exchange of information concerning
taxpayers.
Sec. 6. Chapter 268 of NRS is hereby amended by adding
thereto a new section to read as follows:
1. The city council or other governing body of an
incorporated city, whether organized under general law or special
charter, shall not:
(a) Impose any tax or fee on the use of a blockchain by any
person or entity;
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(b) Require any person or entity to obtain from the
incorporated city any certificate, license or permit to use a
blockchain; or
(c) Impose any other requirement relating to the use of a
blockchain by any person or entity.
2. Nothing in this section prohibits an incorporated city from
using a blockchain in the performance of its powers or duties in a
manner not inconsistent with the provisions of chapter 719 of
NRS.
3. As used in this section, “blockchain” has the meaning
ascribed to it in section 1 of this act.
Sec. 7. NRS 268.095 is hereby amended to read as follows:
268.095 1. Except as otherwise provided in subsection 4 and
NRS 268.0951, and section 6 of this act, the city council or other
governing body of each incorporated city in this State, whether
organized under general law or special charter, may:
(a) Except as otherwise provided in subsection 2 and NRS
268.0968 and 576.128, fix, impose and collect for revenues or for
regulation, or both, a license tax on all character of lawful trades,
callings, industries, occupations, professions and businesses
conducted within its corporate limits.
(b) Assign the proceeds of any one or more of such license taxes
to the county within which the city is situated for the purpose or
purposes of making the proceeds available to the county:
(1) As a pledge as additional security for the payment of any
general obligation bonds issued pursuant to NRS 244A.597 to
244A.655, inclusive;
(2) For redeeming any general obligation bonds issued
pursuant to NRS 244A.597 to 244A.655, inclusive;
(3) For defraying the costs of collecting or otherwise
administering any such license tax so assigned, of the county fair
and recreation board and of officers, agents and employees hired
thereby, and of incidentals incurred thereby;
(4) For operating and maintaining recreational facilities
under the jurisdiction of the county fair and recreation board;
(5) For improving, extending and bettering recreational
facilities authorized by NRS 244A.597 to 244A.655, inclusive; and
(6) For constructing, purchasing or otherwise acquiring such
recreational facilities.
(c) Pledge the proceeds of any tax imposed on the revenues from
the rental of transient lodging pursuant to this section for the
payment of any general or special obligations issued by the city for
a purpose authorized by the laws of this State.
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(d) Use the proceeds of any tax imposed pursuant to this section
on the revenues from the rental of transient lodging:
(1) To pay the principal, interest or any other indebtedness
on any general or special obligations issued by the city pursuant to
the laws of this State;
(2) For the expense of operating or maintaining, or both, any
facilities of the city; and
(3) For any other purpose for which other money of the city
may be used.
2. The city council or other governing body of an incorporated
city shall not require that a person who is licensed as a contractor
pursuant to chapter 624 of NRS obtain more than one license to
engage in the business of contracting or pay more than one license
tax related to engaging in the business of contracting, regardless of
the number of classifications or subclassifications of licensing for
which the person is licensed pursuant to chapter 624 of NRS.
3. The proceeds of any tax imposed pursuant to this section
that are pledged for the repayment of general obligations may be
treated as “pledged revenues” for the purposes of NRS 350.020.
4. The city council or other governing body of an incorporated
city shall not require a person to obtain a license or pay a license tax
on the sole basis that the person is a professional. As used in this
subsection, “professional” means a person who:
(a) Holds a license, certificate, registration, permit or similar
type of authorization issued by a regulatory body as defined in NRS
622.060 or who is regulated pursuant to the Nevada Supreme Court
Rules; and
(b) Practices his or her profession for any type of compensation
as an employee.
5. The city licensing agency shall provide upon request an
application for a state business registration pursuant to chapter 76 of
NRS. No license to engage in any type of business may be granted
unless the applicant for the license:
(a) Signs an affidavit affirming that the business has complied
with the provisions of chapter 76 of NRS; or
(b) Provides to the city licensing agency the business
identification number of the applicant assigned by the Secretary of
State pursuant to NRS 225.082 which the city may use to validate
that the applicant is currently in good standing with the State and
has complied with the provisions of chapter 76 of NRS.
6. No license to engage in business as a seller of tangible
personal property may be granted unless the applicant for the
license:
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–7–
(a) Presents written evidence that:
(1) The Department of Taxation has issued or will issue a
permit for this activity, and this evidence clearly identifies the
business by name; or
(2) Another regulatory agency of the State has issued or will
issue a license required for this activity; or
(b) Provides to the city licensing agency the business
identification number of the applicant assigned by the Secretary of
State pursuant to NRS 225.082 which the city may use to validate
that the applicant is currently in good standing with the State and
has complied with the provisions of paragraph (a).
7. Any license tax levied under the provisions of this section
constitutes a lien upon the real and personal property of the business
upon which the tax was levied until the tax is paid. The lien has the
same priority as a lien for general taxes. The lien must be enforced:
(a) By recording in the office of the county recorder, within 6
months following the date on which the tax became delinquent or
was otherwise determined to be due and owing, a notice of the tax
lien containing the following:
(1) The amount of tax due and the appropriate year;
(2) The name of the record owner of the property;
(3) A description of the property sufficient for identification;
and
(4) A verification by the oath of any member of the board of
county commissioners or the county fair and recreation board; and
(b) By an action for foreclosure against such property in the
same manner as an action for foreclosure of any other lien,
commenced within 2 years after the date of recording of the notice
of the tax lien, and accompanied by appropriate notice to other
lienholders.
8. The city council or other governing body of each
incorporated city may delegate the power and authority to enforce
such liens to the county fair and recreation board. If the authority is
so delegated, the governing body shall revoke or suspend the license
of a business upon certification by the board that the license tax has
become delinquent, and shall not reinstate the license until the tax is
paid. Except as otherwise provided in NRS 239.0115 and 268.0966,
all information concerning license taxes levied by an ordinance
authorized by this section or other information concerning the
business affairs or operation of any licensee obtained as a result of
the payment of those license taxes or as the result of any audit or
examination of the books of the city by any authorized employee of
a county fair and recreation board for any license tax levied for the
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purpose of NRS 244A.597 to 244A.655, inclusive, is confidential
and must not be disclosed by any member, official or employee of
the county fair and recreation board or the city imposing the license
tax unless the disclosure is authorized by the affirmative action of a
majority of the members of the appropriate county fair and
recreation board. Continuing disclosure may be so authorized under
an agreement with the Department of Taxation or the Secretary of
State for the exchange of information concerning taxpayers.
9. The powers conferred by this section are in addition and
supplemental to, and not in substitution for, and the limitations
imposed by this section do not affect the powers conferred by, any
other law. No part of this section repeals or affects any other law or
any part thereof, it being intended that this section provide a
separate method of accomplishing its objectives, and not an
exclusive one.
Sec. 8. This act becomes effective upon passage and approval.
20 ~~~~~ 17
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