(Reprinted with amendments adopted on April 15, 2025) FIRST REPRINT A.J.R. 8 - *AJR8_R1* ASSEMBLY JOINT RESOLUTION NO. 8–ASSEMBLYMEMBERS DALIA AND BACKUS FEBRUARY 19, 2025 ____________ Referred to Committee on Judiciary SUMMARY—Proposes to amend the Nevada Constitution to provide for the establishment of a business court. (BDR C-668) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. ASSEMBLY JOINT RESOLUTION—Proposing to amend the Nevada Constitution to require the Legislature, to the extent money is available, to provide by law for the establishment of a business court. Legislative Counsel’s Digest: This resolution proposes an amendment to the Nevada Constitution to require 1 the Legislature, to the extent money is available, to provide by law for the 2 establishment of a business court which, if established, will have exclusive original 3 jurisdiction to hear disputes involving shareholder rights, mergers and acquisitions, 4 fiduciary duties, receiverships involving business entities and other commercial or 5 contractual disputes between business entities and any other business disputes of a 6 similar nature in which equitable or declaratory relief is sought. If the Legislature 7 establishes a business court, the constitutional amendment proposed by this 8 resolution requires the Legislature to: (1) establish by law a Special Nominating 9 Commission for the selection of nominees for the office of business court judge; (2) 10 provide by law for the appointment of business court judges by the Governor from 11 among three nominees for each seat chosen by the Commission; (3) prescribe by 12 law the powers, duties and responsibilities of any such judges; and (4) fix by law 13 the terms of any such judges. The constitutional amendment proposed by this 14 resolution also provides that if the Legislature establishes a business court, the 15 Supreme Court will have exclusive appellate jurisdiction of cases within the 16 original jurisdiction of the business court. Finally, the constitutional amendment 17 proposed by this resolution makes various conforming changes to provisions in the 18 Nevada Constitution relating to the business court. 19 – 2 – - *AJR8_R1* RESOLVED BY THE ASSEMBLY AND SENATE OF THE STATE OF 1 NEVADA, JOINTLY, That a new section, designated Section 3B, be 2 added to Article 6 of the Nevada Constitution to read as follows: 3 Sec. 3B. 1. The Legislature shall, to the extent 4 money is available, provide by law for the establishment of a 5 business court consisting of three judges or such greater 6 number as the Legislature may provide by law pursuant to 7 subsection 9. 8 2. If the Legislature provides by law for the 9 establishment of a business court pursuant to subsection 1, 10 the business court shall have exclusive original jurisdiction 11 to hear disputes involving shareholder rights, mergers and 12 acquisitions, fiduciary duties, receiverships involving 13 business entities and other commercial or contractual 14 disputes between business entities and any other business 15 disputes of a similar nature in which equitable or 16 declaratory relief is sought. Upon receipt of a petition, the 17 chief judge of the business court may, in his or her 18 reasonable discretion, order the transfer of a dispute 19 presented to the business court to the appropriate district 20 court if the chief judge finds that the dispute would be more 21 appropriately adjudicated in the district court. 22 3. If the Legislature provides by law for the 23 establishment of a business court pursuant to subsection 1, 24 the Legislature shall: 25 (a) Establish by law a Special Nominating Commission 26 for the selection of nominees for the office of business court 27 judge and prescribe by law the composition of the 28 Commission in accordance with subsection 5; 29 (b) Prescribe by law the procedures governing the 30 nomination process of the Special Nominating Commission; 31 (c) Provide for the appointment of: 32 (1) Business court judges by the Governor in 33 accordance with subsection 4; and 34 (2) A chief judge of the business court by the Chief 35 Justice of the Supreme Court; 36 (d) Prescribe by law the powers, duties and 37 responsibilities of business court judges in accordance with 38 subsection 6; and 39 (e) Fix by law the: 40 (1) Terms of office of business court judges in 41 accordance with subsection 7; and 42 (2) Term of a chief judge of the business court in 43 accordance with subsection 8. 44 – 3 – - *AJR8_R1* 4. The judges of the business court must be appointed 1 by the Governor from among three nominees selected for 2 each individual seat by the Special Nominating Commission 3 established pursuant to paragraph (a) of subsection 3. A 4 nominee selected by the Commission must, as determined in 5 the reasonable discretion of the Commission, have 6 substantial experience as a practitioner or judge in one or 7 more areas of law within the jurisdiction of the business 8 court. 9 5. The Special Nominating Commission must be 10 composed of: 11 (a) The Speaker of the Assembly; 12 (b) The Majority Leader of the Senate; 13 (c) The Chief Justice of the Supreme Court of Nevada; 14 (d) The Chief Judges of the two most populous judicial 15 districts; 16 (e) A district judge from a judicial district other than the 17 two most populous judicial districts; and 18 (f) Such additional members as the Legislature may 19 prescribe by law. 20 6. A business court judge must, for matters within the 21 jurisdiction of the business court, have the same powers and 22 duties and be subject to the same limitations and restrictions 23 that are applicable to a district judge. 24 7. Except for the business court judges initially 25 appointed, the term of office of each business court judge 26 must be 6 years. Each business court judge who desires to 27 succeed himself or herself must, on or before July 1 next 28 preceding the expiration of his or her term of office, declare 29 his or her candidacy in the manner provided by law. With 30 respect to each business court judge who so declares, the 31 question must be presented at the next general election, in a 32 form provided by law, whether that business court judge 33 shall succeed himself or herself. If 55 percent or more of 34 the votes cast on the question are in favor of the business 35 court judge succeeding himself or herself, the business 36 court judge shall succeed himself or herself. The term of 37 office of each business court judge who succeeds himself or 38 herself is 6 years, and that term begins on the first Monday 39 of January next following the general election at which the 40 business court judge was chosen to succeed himself or 41 herself. If a judge does not declare his or her candidacy or 42 if less than 55 percent of the votes cast on the question are 43 cast in favor of the business court judge succeeding himself 44 or herself, a vacancy is created at the expiration of his or 45 – 4 – - *AJR8_R1* her term which must be filled by appointment pursuant to 1 subsection 4. 2 8. Except for the initial chief judge of the business 3 court, the chief judge serves a term of 6 years. The chief 4 judge may: 5 (a) Succeed himself or herself. 6 (b) Resign the position of chief judge without resigning 7 from the business court. 8 9. If the Legislature provides by law for the 9 establishment of a business court pursuant to subsection 1, 10 the Legislature may, as the caseload of the business court 11 may require and to the extent that money is available 12 therefor, provide by law for an increase or decrease in the 13 number of business court judges or divisions of the business 14 court as may be necessary for the proper and timely 15 administration of the business court docket. 16 10. The Supreme Court has exclusive appellate 17 jurisdiction in all cases arising in a business court. 18 And be it further 19 RESOLVED, That Section 1 of Article 6 of the Nevada 20 Constitution be amended to read as follows: 21 Section 1. 1. The judicial power of this State is vested 22 in a court system, comprising a Supreme Court, a court of 23 appeals, a business court, if the Legislature establishes such 24 a court pursuant to Section 3B of this Article, district courts 25 and justices of the peace. 26 2. The Legislature may also establish, as part of the 27 system, courts for municipal purposes only in incorporated 28 cities and towns. 29 And be it further 30 RESOLVED, That Section 7 of Article 6 of the Nevada 31 Constitution be amended to read as follows: 32 Sec. 7. The times of holding the Supreme Court, the 33 court of appeals , the business court, if the Legislature 34 establishes such a court pursuant to Section 3B of this 35 Article, and the district courts must be as fixed by law. The 36 terms of the Supreme Court must be held at the seat of 37 government unless the Legislature otherwise provides by law, 38 except that the Supreme Court may hear oral argument at 39 other places in the State. The terms of the court of appeals 40 and the business court, if the Legislature establishes such a 41 court pursuant to Section 3B of this Article, must be held at 42 the place provided by law. The terms of the district courts 43 must be held at the county seats of their respective counties 44 unless the Legislature otherwise provides by law. 45 – 5 – - *AJR8_R1* And be it further 1 RESOLVED, That Section 8 of Article 6 of the Nevada 2 Constitution be amended to read as follows: 3 Sec. 8. 1. The Legislature shall determine the number 4 of justices of the peace to be elected in each city and 5 township of the State and shall fix by law their qualifications, 6 their terms of office and the limits of their civil and criminal 7 jurisdiction, according to the amount in controversy, the 8 nature of the case, the penalty provided or any combination of 9 these. 10 2. The provisions of this section affecting the number, 11 qualifications, terms of office and jurisdiction of justices of 12 the peace become effective on the first Monday of January, 13 1979. 14 3. The Legislature shall also prescribe by law the 15 manner, and determine the cases, in which appeals may be 16 taken from justices and other courts. The Supreme Court, the 17 court of appeals, the business court, if the Legislature 18 establishes such a court pursuant to Section 3B of this 19 Article, the district courts and such other courts as the 20 Legislature designates are courts of record. 21 And be it further 22 RESOLVED, That Section 11 of Article 6 of the Nevada 23 Constitution be amended to read as follows: 24 Sec. 11. The justices of the Supreme Court, the judges 25 of the court of appeals , the business court judges, if the 26 Legislature establishes such a court pursuant to Section 3B 27 of this Article, and the district judges are ineligible to any 28 office, other than a judicial office, during the term for which 29 they have been elected or appointed. All elections or 30 appointments of any such judges by the people, Legislature or 31 otherwise during said period to any office other than judicial 32 are void. 33 And be it further 34 RESOLVED, That Section 15 of Article 6 of the Nevada 35 Constitution be amended to read as follows: 36 Sec. 15. The justices of the Supreme Court, the judges 37 of the court of appeals, the business court judges, if the 38 Legislature establishes a business court pursuant to Section 39 3B of this Article, and the district judges are each entitled to 40 receive for their services a compensation to be fixed by law 41 and paid in the manner provided by law, which must not be 42 increased or diminished during the term for which they have 43 been elected [,] or appointed, unless a vacancy occurs, in 44 which case the successor of the former incumbent is entitled 45 – 6 – - *AJR8_R1* to receive only such salary as may be provided by law at the 1 time of his election or appointment. A provision must be 2 made by law for setting apart from each year’s revenue a 3 sufficient amount of money to pay such compensation. 4 And be it further 5 RESOLVED, That Section 20 of Article 6 of the Nevada 6 Constitution be amended to read as follows: 7 Sec. 20. 1. When a vacancy occurs before the 8 expiration of any term of office in the Supreme Court , [or] 9 the court of appeals or the business court, if the Legislature 10 establishes such a court pursuant to Section 3B of this 11 Article, or among the district judges, the Governor shall 12 appoint a justice or judge from among three nominees 13 selected for such individual vacancy by the Commission on 14 Judicial Selection or the Special Nominating Commission, 15 as applicable. 16 2. [The] Except as otherwise provided in this 17 subsection, the term of office of any justice or judge so 18 appointed expires on the first Monday of January following 19 the next general election. Any business court judge who is 20 appointed to fill a vacancy before the end of a term shall 21 serve the remainder of the unexpired term. 22 3. Each nomination for the Supreme Court or the court 23 of appeals must be made by the permanent Commission, 24 composed of: 25 (a) The Chief Justice or an associate justice designated by 26 him; 27 (b) Three members of the State Bar of Nevada, a public 28 corporation created by statute, appointed by its Board of 29 Governors; and 30 (c) Three persons, not members of the legal profession, 31 appointed by the Governor. 32 4. Each nomination for the district court must be made 33 by a temporary commission composed of: 34 (a) The permanent Commission; 35 (b) A member of the State Bar of Nevada resident in the 36 judicial district in which the vacancy occurs, appointed by the 37 Board of Governors of the State Bar of Nevada; and 38 (c) A resident of such judicial district, not a member of 39 the legal profession, appointed by the Governor. 40 5. If at any time the State Bar of Nevada ceases to exist 41 as a public corporation or ceases to include all attorneys 42 admitted to practice before the courts of this State, the 43 Legislature shall provide by law, or if it fails to do so the 44 Supreme Court shall provide by rule, for the appointment of 45 – 7 – - *AJR8_R1* attorneys at law to the positions designated in this Section to 1 be occupied by members of the State Bar of Nevada. 2 6. The term of office of each appointive member of the 3 permanent Commission, except the first members, is 4 years. 4 Each appointing authority shall appoint one of the members 5 first appointed for a term of 2 years. If a vacancy occurs, the 6 appointing authority shall fill the vacancy for the unexpired 7 term. The additional members of a temporary commission 8 must be appointed when a vacancy occurs, and their terms 9 expire when the nominations for such vacancy have been 10 transmitted to the Governor. 11 7. An appointing authority shall not appoint to the 12 permanent Commission more than: 13 (a) One resident of any county. 14 (b) Two members of the same political party. 15 No member of the permanent Commission may be a 16 member of the Commission on Judicial Discipline. 17 8. After the expiration of 30 days from the date on which 18 the Commission on Judicial Selection has delivered to him its 19 list of nominees for any vacancy, if the Governor has not 20 made the appointment required by this Section, he shall make 21 no other appointment to any public office until he has 22 appointed a justice or judge from the list submitted. 23 And be it further 24 RESOLVED, That Section 21 of Article 6 of the Nevada 25 Constitution be amended to read as follows: 26 Sec. 21. 1. A justice of the Supreme Court, a judge of 27 the court of appeals, a business court judge, if the 28 Legislature establishes such a court pursuant to Section 3B 29 of this Article, a district judge, a justice of the peace or a 30 municipal judge may, in addition to the provision of Article 7 31 for impeachment, be censured, retired, removed or otherwise 32 disciplined by the Commission on Judicial Discipline. 33 Pursuant to rules governing appeals adopted by the Supreme 34 Court, a justice or judge may appeal from the action of the 35 Commission to the Supreme Court, which may reverse such 36 action or take any alternative action provided in this 37 subsection. 38 2. The Commission is composed of: 39 (a) Two justices or judges appointed by the Supreme 40 Court; 41 (b) Two members of the State Bar of Nevada, a public 42 corporation created by statute, appointed by its Board of 43 Governors; and 44 – 8 – - *AJR8_R1* (c) Three persons, not members of the legal profession, 1 appointed by the Governor. 2 The Commission shall elect a Chairman from among its 3 three lay members. 4 3. If at any time the State Bar of Nevada ceases to exist 5 as a public corporation or ceases to include all attorneys 6 admitted to practice before the courts of this State, the 7 Legislature shall provide by law, or if it fails to do so the 8 Supreme Court shall provide by rule, for the appointment of 9 attorneys at law to the positions designated in this Section to 10 be occupied by members of the State Bar of Nevada. 11 4. The term of office of each appointive member of the 12 Commission, except the first members, is 4 years. Each 13 appointing authority shall appoint one of the members first 14 appointed for a term of 2 years. If a vacancy occurs, the 15 appointing authority shall fill the vacancy for the unexpired 16 term. An appointing authority shall not appoint more than one 17 resident of any county. The Governor shall not appoint more 18 than two members of the same political party. No member 19 may be a member of a commission on judicial selection. 20 5. The Legislature shall establish: 21 (a) In addition to censure, retirement and removal, the 22 other forms of disciplinary action that the Commission may 23 impose; 24 (b) The grounds for censure and other disciplinary action 25 that the Commission may impose, including, but not limited 26 to, violations of the provisions of the Code of Judicial 27 Conduct; 28 (c) The standards for the investigation of matters relating 29 to the fitness of a justice or judge; and 30 (d) The confidentiality or nonconfidentiality, as 31 appropriate, of proceedings before the Commission, except 32 that, in any event, a decision to censure, retire or remove a 33 justice or judge must be made public. 34 6. The Supreme Court shall adopt a Code of Judicial 35 Conduct. 36 7. The Commission shall adopt rules of procedure for 37 the conduct of its hearings and any other procedural rules it 38 deems necessary to carry out its duties. 39 8. No justice or judge may by virtue of this Section be: 40 (a) Removed except for willful misconduct, willful or 41 persistent failure to perform the duties of his office or 42 habitual intemperance; or 43 (b) Retired except for advanced age which interferes with 44 the proper performance of his judicial duties, or for mental or 45 – 9 – - *AJR8_R1* physical disability which prevents the proper performance of 1 his judicial duties and which is likely to be permanent in 2 nature. 3 9. Any matter relating to the fitness of a justice or judge 4 may be brought to the attention of the Commission by any 5 person or on the motion of the Commission. The Commission 6 shall, after preliminary investigation, dismiss the matter or 7 order a hearing to be held before it. If a hearing is ordered, a 8 statement of the matter must be served upon the justice or 9 judge against whom the proceeding is brought. The 10 Commission in its discretion may suspend a justice or judge 11 from the exercise of his office pending the determination of 12 the proceedings before the Commission. Any justice or judge 13 whose removal is sought is liable to indictment and 14 punishment according to law. A justice or judge retired for 15 disability in accordance with this Section is entitled thereafter 16 to receive such compensation as the Legislature may provide. 17 10. If a proceeding is brought against a justice of the 18 Supreme Court, no justice of the Supreme Court may sit on 19 the Commission for that proceeding. If a proceeding is 20 brought against a judge of the court of appeals, no judge of 21 the court of appeals may sit on the Commission for that 22 proceeding. If a proceeding is brought against a business 23 court judge, if the Legislature establishes such a court 24 pursuant to section 3B of this Article, no judge of the 25 business court may sit on the Commission for that 26 proceeding. If a proceeding is brought against a district 27 judge, no district judge from the same judicial district may sit 28 on the Commission for that proceeding. If a proceeding is 29 brought against a justice of the peace, no justice of the peace 30 from the same township may sit on the Commission for that 31 proceeding. If a proceeding is brought against a municipal 32 judge, no municipal judge from the same city may sit on the 33 Commission for that proceeding. If an appeal is taken from an 34 action of the Commission to the Supreme Court, any justice 35 who sat on the Commission for that proceeding is disqualified 36 from participating in the consideration or decision of the 37 appeal. When any member of the Commission is disqualified 38 by this subsection, the Supreme Court shall appoint a 39 substitute from among the eligible judges. 40 11. The Commission may: 41 (a) Designate for each hearing an attorney or attorneys at 42 law to act as counsel to conduct the proceeding; 43 – 10 – - *AJR8_R1* (b) Summon witnesses to appear and testify under oath 1 and compel the production of books, papers, documents and 2 records; 3 (c) Grant immunity from prosecution or punishment when 4 the Commission deems it necessary and proper in order to 5 compel the giving of testimony under oath and the production 6 of books, papers, documents and records; and 7 (d) Exercise such further powers as the Legislature may 8 from time to time confer upon it. 9 And be it further 10 RESOLVED, That Section 3 of Article 7 of the Nevada 11 Constitution be amended to read as follows: 12 Sec. 3. For any reasonable cause to be entered on the 13 journals of each House, which may or may not be sufficient 14 grounds for impeachment, the justices of the Supreme Court, 15 the judges of the court of appeals , the judges of the business 16 court, if the Legislature establishes such a court pursuant to 17 Section 3B of Article 6 of this Constitution, and the judges of 18 the district courts must be removed from office on the vote of 19 two thirds of the members elected to each branch of the 20 Legislature. The justice or judge complained of must be 21 served with a copy of the complaint against him, and have an 22 opportunity of being heard in person or by counsel in his 23 defense. No member of either branch of the Legislature is 24 eligible to fill the vacancy occasioned by such removal. 25 And be it further 26 RESOLVED, That Section 8 of Article 15 of the Nevada 27 Constitution be amended to read as follows: 28 Sec. 8. The Legislature shall provide for the speedy 29 publication of all statute laws of a general nature and such 30 decisions of the Supreme Court , [and] the court of appeals 31 and the business court, if the Legislature establishes such a 32 court pursuant to Section 3B of Article 6 of this 33 Constitution, as it may deem expedient. All laws and judicial 34 decisions must be free for publication by any person. No 35 judgment of the Supreme Court , [or] the court of appeals or 36 the business court, if the Legislature establishes such a 37 court pursuant to Section 3B of Article 6 of this 38 Constitution, shall take effect and be operative until the 39 opinion of the court in such case is filed with the clerk of said 40 court. 41 And be it further 42 – 11 – - *AJR8_R1* RESOLVED, That this resolution becomes effective upon 1 passage. 2 H