[Rev. 1/16/2013 4:33:32 PM]

Link to Page 1600

 

…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1601 (Chapter 491, AB 709)ê

 

      (b) Regulations governing the licensing of such facilities and programs.

      (c) Regulations governing the procedure and standards for granting an extension of the time for which a natural person may provide certain care in his home without being considered a residential facility for groups pursuant to NRS 449.017. The regulations must require that such grants are effective only if made in writing.

      (d) Any other regulations as it deems necessary or convenient to carry out the provisions of NRS 449.001 to 449.240, inclusive.

      2.  The board shall adopt separate regulations governing the licensing and operation of:

      (a) Facilities for the care of adults during the day; and

      (b) Residential facilities for groups,

which provide care to persons with Alzheimer’s disease.

      3.  The board shall adopt separate regulations for the licensure of rural hospitals which take into consideration the unique problems of operating such a facility in a rural area.

      4.  The board shall require that the practices and policies of each medical facility or facility for the dependent provide adequately for the protection of the health, safety and physical, moral and mental well-being of each person accommodated in the facility.

      5.  The board shall establish minimum qualifications for administrators and employees of residential facilities for groups. In establishing the qualifications, the board shall consider the related standards set by nationally recognized organizations which accredit such facilities.

      6.  The board shall adopt separate regulations regarding the assistance which may be given pursuant to NRS 453.375 and 454.213 to an ultimate user of controlled substances or dangerous drugs by employees of residential facilities for groups. The regulations must require at least the following conditions before such assistance may be given:

      (a) The ultimate user’s physical and mental condition is stable and is following a predictable course.

      (b) The amount of the medication prescribed is at a maintenance level and does not require a daily assessment.

      (c) A written plan of care by a physician or registered nurse has been established that:

             (1) Addresses possession and assistance in the administration of the medication; and

             (2) Includes a plan, which has been prepared under the supervision of a registered nurse or licensed pharmacist, for emergency intervention if an adverse condition results.

      (d) The prescribed medication is not administered by injection or intravenously.

      (e) The employee has successfully completed training and examination approved by the health division regarding the authorized manner of assistance.

      [7.  As used in this section, “rural hospital” means a hospital with 85 or fewer beds which is:

      (a) The sole institutional provider of health care located within a county whose population is less than 100,000;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1602 (Chapter 491, AB 709)ê

 

      (b) The sole institutional provider of health care located within a city whose population is less than 20,000; or

      (c) Maintained and governed pursuant to NRS 450.550 to 450.700, inclusive.]

      Sec. 7.  NRS 449.195 is hereby amended to read as follows:

      449.195  A [hospital] medical facility shall not waive a deductible or copayment if:

      1.  The [hospital] medical facility is not a preferred provider of health care; and

      2.  The waiver would reduce the financial effect of a preferred provider’s incentive or disincentive to its insureds.

      Sec. 8.  Chapter 652 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A licensed laboratory may release the results of tests performed at the laboratory regarding a patient of a rural hospital only to:

      (a) The patient;

      (b) The physician who ordered the tests; and

      (c) A provider of health care who is currently treating or providing assistance in the treatment of the patient.

      2.  As used in this section:

      (a) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      (b) “Rural hospital” has the meaning ascribed to it in section 3 of this act.

      Sec. 9.  NRS 652.190 is hereby amended to read as follows:

      652.190  1.  A laboratory may examine specimens only at the request of:

      (a) A licensed physician;

      (b) Any other person authorized by law to use the findings of laboratory tests and examinations; or

      (c) If the examination can be made with a testing device or kit which is approved by the Food and Drug Administration for use in the home and which is available to the public without a prescription, any person.

      2.  Except as otherwise provided in NRS 441A.150 [,] and section 8 of this act, the laboratory [shall] may report the results of the examination only to the person requesting the test or procedure [.] and to the patient for whom the testing or procedure was performed. The laboratory report must contain the name of the laboratory and of the laboratory director.

      3.  If a specimen is accepted by a laboratory and is referred to another laboratory, the name and address of the other laboratory and its director must be clearly shown by the referring laboratory on the report to the person requesting the test or procedure.

      4.  Whenever an examination is made pursuant to paragraph (c) of subsection 1, the laboratory report must contain a provision which recommends that the results of the examination be reviewed and interpreted by a physician or other licensed provider of health care.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1603ê

 

CHAPTER 492, AB 696

Assembly Bill No. 696–Committee on Government Affairs

CHAPTER 492

AN ACT relating to taxation; requiring certain cities and counties to continue to levy and collect certain license taxes which are pledged for the payment of certain bonds and other obligations and transmit those taxes to the county fair and recreation board; requiring a newly incorporated city or town to collect certain license taxes levied by the county which are pledged for the payment of certain bonds and other obligations issued after the incorporation of the city or town; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 268 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Any license tax:

      (a) Which is levied by a city located in a county whose population is 400,000 or more against any lawful trade, calling, industry, occupation, profession or business conducted in that city;

      (b) Whose proceeds are pledged for the payment of any bonds or other obligations issued pursuant to the provisions of NRS 244A.597 to 244A.655, inclusive; and

      (c) Which is being collected by the city on January 1, 1995,

must continue to be levied, collected and transmitted to the county fair and recreation board created pursuant to NRS 244A.599 as long as any of the bonds or other obligations issued pursuant to the provisions of NRS 244A.597 to 244A.655, inclusive, remain outstanding and unpaid.

      2.  The proceeds of the license tax must be used by the county fair and recreation board for the purposes set forth in NRS 244A.597 to 244A.655, inclusive, including the payment of any bonds or other obligations issued pursuant to those provisions, and may be irrevocably pledged by the county fair and recreation board to the payment of bonds or other obligations issued pursuant to those provisions.

      Sec. 2.  NRS 268.460 is hereby amended to read as follows:

      268.460  Any license tax levied by any county against any lawful trade, calling, industry, occupation, profession or business conducted in the county and located in an unincorporated area therein, the proceeds of which [have been pledged] are pledged before or after the incorporation of the area as a city or town for the payment of any bonds or other obligations issued pursuant to the provisions of NRS 244.3358 or 244A.597 to 244A.655, inclusive, must, upon the incorporation of the area as a city or town, continue to be levied and must be collected by the officer of the newly incorporated city or town charged by law with the collection of its license taxes. The proceeds must be transmitted to the county officer required by law to collect such a county license tax, so long as any of the bonds or other obligations [so additionally secured and issued before the incorporation of the area] remain outstanding and unpaid, both as to principal and interest.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1604 (Chapter 492, AB 696)ê

 

      Sec. 3.  Chapter 244 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Any license tax:

      (a) Which is levied by a county whose population is 400,000 or more against any lawful trade, calling, industry, occupation, profession or business conducted in the county and located in an unincorporated area within the county;

      (b) Whose proceeds are pledged for the payment of any bonds or other obligations issued pursuant to the provisions of NRS 244A.597 to 244A.655, inclusive; and

      (c) Which is being collected by the county on January 1, 1995,

must continue to be levied, collected and transmitted to the county fair and recreation board created pursuant to NRS 244A.599 as long as any of the bonds or other obligations issued pursuant to the provisions of NRS 244A.597 to 244A.655, inclusive, remain outstanding and unpaid.

      2.  The proceeds of the license tax must be used by the county fair and recreation board for the purposes set forth in NRS 244A.597 to 244A.655, inclusive, including the payment of any bonds or other obligations issued pursuant to those provisions, and may be irrevocably pledged by the county fair and recreation board to the payment of bonds or other obligations issued pursuant to those provisions.

      Sec. 4.  This act becomes effective upon passage and approval.

 

________

 

 

CHAPTER 493, AB 658

Assembly Bill No. 658–Committee on Government Affairs

 

(Requested by Assemblyman Segerblom)

CHAPTER 493

AN ACT relating to local government; adding bridges to the projects eligible for certain funding; authorizing a public agency to advance money for a joint undertaking in contemplation of later repayment; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 244.33512 is hereby amended to read as follows:

      244.33512  In a county in which a tax has been imposed pursuant to paragraph (a) of subsection 1 of NRS 244.3351:

      1.  The proceeds of the tax and any applicable penalty or interest must be:

      (a) Remitted to the appropriate city if collected in the incorporated area of any city and not within any transportation district created by the county, or if collected in any transportation district created by a city; or

      (b) Retained by the county if collected elsewhere, and used as provided in this section.

      2.  Except as otherwise provided in subsection 3, if the county has created one or more transportation districts, it shall use any part of the money retained which is collected within the boundaries of a transportation district to pay the cost of:

 


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1605 (Chapter 493, AB 658)ê

 

retained which is collected within the boundaries of a transportation district to pay the cost of:

      (a) Projects related to the construction and maintenance of sidewalks, streets, avenues, boulevards, highways , bridges and other public rights of way used primarily for vehicular traffic, including, without limitation, overpass projects, street projects and underpass projects, as defined in NRS 244A.037, 244A.053 and 244A.055, within the boundaries of the district or within 1 mile outside those boundaries if the governing body finds that such projects outside the boundaries of the district will facilitate transportation within the district;

      (b) Payment of principal and interest on notes, bonds or other obligations issued by the county to fund projects described in paragraph (a); or

      (c) Any combination of those uses.

      3.  In addition to those uses set forth in subsection 2, if a county has created one or more transportation districts and all or any portion of those districts are located in an area that is governed by an interstate compact entered into by this state and a state that borders this state, the county may use any part of the money retained which is collected within the boundaries of a transportation district to pay the cost of establishing, operating and maintaining a public transit system within the boundaries of the district, or outside those boundaries if the governing body finds that such a system outside the boundaries of the district will facilitate transportation within the district, or both.

      4.  If the county has entered into an agreement pursuant to NRS 277.080 to 277.170, inclusive, which contemplates later payment by the other party of a portion of the cost of a project which may be funded pursuant to subsection 2, the county may pay from retained proceeds the principal and interest on notes, bonds or other obligations issued in anticipation of that payment.

      5.  Any part of the money retained which is collected in the unincorporated area of the county and not within any transportation district created by the county or a city must be used for the same purposes within the unincorporated area of the county or within 1 mile outside that area if the board of county commissioners finds that such projects outside that area will facilitate transportation within that area.

      [5.] 6.  As used in this section, “public transit system” means a system employing motor buses, rails or any other means of conveyance, by whatever type of power, that is operated for the conveyance of members of the general public.

      Sec. 2.  NRS 277.170 is hereby amended to read as follows:

      277.170  [Any]

      1.  A public agency which has entered into an agreement pursuant to NRS 277.080 to 277.170, inclusive, may support the administrative joint board or other legal or administrative entity created to operate the joint or cooperative undertaking, to the extent that funds for such operation are not made available through grant, gift or other source, in any one or more of the following ways:

      [1.] (a) By appropriating funds;

      [2.] (b) By selling, leasing, giving or otherwise supplying property; or

      [3.] (c) By providing such personnel or services as may be within its legal power to furnish.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1606 (Chapter 493, AB 658)ê

 

      2.  A public agency may also support a joint or cooperative undertaking by issuing its own securities to defray costs ultimately to be borne by the other party, in contemplation of later repayment.

      Sec. 3.  1.  This section and section 2 of this act become effective on July 1, 1995.

      2.  Section 1 of this act becomes effective at 12:01 a.m. on July 1, 1995.

 

________

 

 

CHAPTER 494, AB 625

Assembly Bill No. 625–Assemblymen Buckley, Sandoval, Giunchigliani, Bache, Segerblom, Neighbors, de Braga, Evans, Brower, Spitler, Chowning, Humke, Anderson, Allard, Ernaut, Perkins, Williams and Price

CHAPTER 494

AN ACT relating to vehicles; authorizing the owner of a towed vehicle to file a civil action in justice’s court to determine whether the towing was lawful; requiring the justice’s court to schedule a hearing on the action within a certain period; requiring a person who authorizes the unlawful towing of a vehicle to pay the cost of towing and storing the vehicle; authorizing the owner or person in lawful possession of residential real property to remove vehicles from that property without posting a sign prohibiting public parking, under certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 487 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  If the owner of a vehicle which is towed from private property upon the request of the owner of the private property or a person in lawful possession of that property believes that the vehicle was unlawfully towed, he may file a civil action pursuant to paragraph (b) of subsection 1 of NRS 4.370 in the justice’s court of the township where the private property is located, on a form provided by the court, to determine whether the towing of the vehicle was lawful.

      2.  An action may be filed pursuant to this section only if the cost of towing and storing the vehicle does not exceed $7,500.

      3.  Upon the filing of a civil action pursuant to subsection 1, the court shall schedule a date for a hearing. The hearing must be held not later than 7 days after the action is filed. The court shall affix the date of the hearing to the form and order a copy served by the sheriff, constable or other process server upon the person who authorized the towing of the vehicle.

      4.  The court shall:

      (a) If it determines that the vehicle was:

             (1) Lawfully towed, order the owner of the vehicle to pay the cost of towing and storing the vehicle and order the person who is storing the vehicle to release the vehicle to the owner upon payment of that cost; or


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1607 (Chapter 494, AB 625)ê

 

             (2) Unlawfully towed, order the person who authorized the towing to pay the cost of towing and storing the vehicle and order the person who is storing the vehicle to release the vehicle to the owner immediately; and

      (b) Determine the actual cost incurred in towing and storing the vehicle.

      5.  The operator of any facility or other location where vehicles which are towed from private property are stored shall display conspicuously at that facility or location a sign which sets forth the provisions of this section.

      Sec. 2.  NRS 487.038 is hereby amended to read as follows:

      487.038  1.  Except as otherwise provided in [subsection 3,] subsections 3 and 4, the owner or person in lawful possession of any real property may, after giving notice [as provided in] pursuant to subsection 2, utilize the services of any tow car operator subject to the jurisdiction of the public service commission of Nevada to remove any vehicle parked in an unauthorized manner on that property to the nearest public garage or storage yard if:

      (a) A sign is displayed in plain view on the property declaring public parking to be prohibited or restricted in a certain manner; and

      (b) The sign shows the telephone number of the police department or sheriff’s office.

      2.  Oral notice must be given to the police department or sheriff’s office whichever is appropriate, indicating:

      (a) The time the vehicle was removed;

      (b) The location from which the vehicle was removed; and

      (c) The location to which the vehicle was taken.

      3.  Any vehicle which is parked in a space designated for the handicapped and is not properly marked for such parking may be removed if notice is given to the police department or sheriff’s office pursuant to subsection 2, whether or not a sign is displayed pursuant to subsection 1.

      4.  The owner or person in lawful possession of residential real property upon which a single-family dwelling is located may, after giving notice pursuant to subsection 2, utilize the services of any tow car operator subject to the jurisdiction of the public service commission of Nevada to remove any vehicle parked in an unauthorized manner on that property to the nearest public garage or storage yard, whether or not a sign is displayed pursuant to subsection 1.

      5.  All costs incurred, under the provisions of this section, for towing and storage must be borne by the owner of the vehicle, as that term is defined in NRS 484.091.

      [5.] 6.  The provisions of this section do not limit or affect any rights or remedies which the owner or person in lawful possession of [such] real property may have by virtue of other provisions of the law authorizing the removal of a vehicle parked on [such] that property.

      Sec. 3.  The provisions of this act apply to a vehicle which is towed pursuant to NRS 487.037 or 487.038 on or after October 1, 1995.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1608ê

 

CHAPTER 495, AB 602

Assembly Bill No. 602–Assemblyman Price

CHAPTER 495

AN ACT relating to meetings of public bodies; defining “action” for purposes of the provisions governing such meetings; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 241.015 is hereby amended to read as follows:

      241.015  As used in this chapter [:

      1.] , unless the context otherwise requires:

      1.  “Action” means:

      (a) A decision made by a majority of the members present during a meeting of a public body;

      (b) A commitment or promise made by a majority of the members present during a meeting of a public body; or

      (c) A vote taken by a majority of the members present during a meeting of a public body.

      2.  “Meeting” means the gathering of members of a public body at which a quorum is present to deliberate toward a decision or to [make a decision] take action on any matter over which the public body has supervision, control, jurisdiction or advisory power.

      [2.] 3.  Except as otherwise provided in this subsection, “public body” means any administrative, advisory, executive or legislative body of the state or a local government which expends or disburses or is supported in whole or in part by tax revenue or which advises or makes recommendations to any entity which expends or disburses or is supported in whole or in part by tax revenue, including , but not limited to , any board, commission, committee, subcommittee or other subsidiary thereof and includes an educational foundation as defined in subsection 3 of NRS 388.750 and a university foundation as defined in subsection 3 of NRS 396.405. “Public body” does not include the legislature of the State of Nevada.

      [3.] 4.  “Quorum” means a simple majority of the constituent membership of a public body or another proportion established by law.

      Sec. 2.  NRS 241.020 is hereby amended to read as follows:

      241.020  1.  Except as otherwise [specifically] provided by specific statute, all meetings of public bodies must be open and public, and all persons must be permitted to attend any meeting of these bodies. Public officers and employees responsible for these meetings shall make reasonable efforts to assist and accommodate physically handicapped persons desiring to attend.

      2.  Except in an emergency, written notice of all meetings must be given at least 3 working days before the meeting. The notice must include:

      (a) The time, place and location of the meeting.

      (b) A list of the locations where the notice has been posted.

      (c) An agenda consisting of:

             (1) A clear and complete statement of the topics scheduled to be considered during the meeting.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1609 (Chapter 495, AB 602)ê

 

             (2) A list [and description of] describing the items [to be voted on during the meeting which must be clearly denoted as items] on which action [will] may be taken [.] and clearly denoting that action may be taken on those items.

             (3) A period devoted to comments by the general public, if any, and discussion of those comments. No action may be taken upon a matter raised under this item of the agenda until the matter itself has been specifically included on an agenda as an item upon which action [will] may be taken pursuant to subparagraph (2).

      3.  Minimum public notice is:

      (a) [A] Posting a copy of the notice [posted] at the principal office of the public body, or if there is no principal office, at the building in which the meeting is to be held, and at [least] not less than three other separate, prominent places within the jurisdiction of the public body not later than 9 a.m. [3 working days] of the third working day before the meeting; and

      (b) Mailing a copy of the notice to any person who has requested notice of the meetings of the body in the same manner in which notice is required to be mailed to a member of the body. A request for notice lapses 6 months after it is made. The public body shall inform the requester of this fact by enclosure with or notation upon the first notice sent. The notice must be delivered to the postal service used by the body not later than 9 a.m. [3 working days] of the third working day before the meeting.

      4.  Upon any request, a public body shall provide, at no charge, at least one copy of:

      (a) An agenda for a public meeting;

      (b) A proposed ordinance or regulation which will be discussed at the public meeting; and

      (c) Any other supporting material provided to the members of the body for an item on the agenda, except materials:

             (1) Submitted to the public body pursuant to a nondisclosure or confidentiality agreement;

             (2) Pertaining to the closed portion of such a meeting of the public body; or

             (3) Declared confidential by law.

      5.  As used in this section, “emergency” means an unforeseen circumstance which requires immediate action and includes, but is not limited to:

      (a) Disasters caused by fire, flood, earthquake or other natural causes; or

      (b) Any impairment of the health and safety of the public.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1610ê

 

CHAPTER 496, AB 475

Assembly Bill No. 475–Committee on Commerce

CHAPTER 496

AN ACT relating to insurance; providing for the regulation of insurance consultants; making various other changes to the provisions governing insurance; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Title 57 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 11, inclusive, of this act.

      Sec. 2.  As used in sections 2 to 11, inclusive, of this act, unless the context otherwise requires, “insurance consultant” means a person who, for a fee, holds himself out to the public as engaged in the business of offering advice, counsel, opinion or service with respect to the benefits, advantages or disadvantages promised pursuant to any policy of insurance that could be issued in this state.

      Sec. 3.  1.  Except as otherwise provided in subsection 2, no person may engage in the business of an insurance consultant unless a license has been issued to him by the commissioner.

      2.  An insurance consultant’s license is not required for:

      (a) An attorney licensed to practice law in this state who is acting in his professional capacity;

      (b) A licensed insurance agent, broker or surplus lines broker;

      (c) A trust officer of a bank who is acting in the normal course of his employment; or

      (d) An actuary or a certified public accountant who provides information, recommendations, advice or services in his professional capacity.

      Sec. 4.  1.  An application for a license to act as an insurance consultant must be made to the commissioner on forms prescribed by the commissioner and be accompanied by a license fee of $78 and an additional fee of $15 which must be deposited in the insurance recovery account created pursuant to NRS 679B.305.

      2.  An applicant for an insurance consultant’s license must successfully complete an examination and a course of instruction which the commissioner shall establish by regulation.

      3.  Each license issued pursuant to this chapter is valid for 3 years from the date of issuance, or until it is suspended, revoked or otherwise terminated.

      Sec. 5.  A license may be renewed for additional 3-year periods by submitting to the commissioner an application for renewal and:

      1.  If the application is made:

      (a) On or before the expiration date of the license, a renewal fee of $78 and an additional fee of $15 for deposit in the insurance recovery account; or

      (b) Not more than 30 days after the expiration date of the license, a renewal fee of $117 and an additional fee of $15 for deposit in the insurance recovery account; and


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1611 (Chapter 496, AB 475)ê

 

      2.  Proof of the successful completion of appropriate courses of study required for renewal, as established by the commissioner by regulation.

      Sec. 6.  A partnership or corporation licensed as an insurance consultant must require a license of each natural person who is authorized to act for the corporation or partnership. Each natural person must be named in the partnership’s or corporation’s license and qualify as an individual licensee.

      Sec. 7.  In advance of rendering any service, a written agreement on a form approved by the commissioner must be prepared by the insurance consultant and must be signed by both the consultant and the client. The agreement must outline the professional services to be provided by the consultant and state his fee for those services. The consultant shall retain a copy of the agreement for not less than 3 years after completion of the services. A copy of the agreement must be made available to the commissioner upon request.

      Sec. 8.  No person licensed pursuant to this chapter may concurrently hold an insurance agent’s license, broker’s license or surplus lines broker’s license in any line.

      Sec. 9.  No licensed insurance consultant may employ, be employed by or be in partnership with, or receive any remuneration arising out of his activities as an insurance consultant from, any licensed insurance agent, broker or surplus lines broker or insurer.

      Sec. 10.  The qualifications required for the licensing of a natural person pursuant to subsection 1 of NRS 683A.130 also apply to an insurance consultant.

      Sec. 11.  An insurance consultant is obligated under his license to:

      1.  Serve with objectivity and complete loyalty the interests of his client; and

      2.  Render to his client information, counsel and service which, to the best of the consultant’s knowledge, understanding and opinion, best serves the client’s insurance needs and interests.

      Sec. 12.  Chapter 679B of NRS is hereby amended by adding thereto a new section to read as follows:

      The commissioner has 7 years in which to begin proceedings to collect the premium tax and associated penalties and fines imposed pursuant to NRS 680B.027, 680B.039, 680B.040, 685A.180, 685A.190 and 685B.035, where the tax has been unreported or has been concealed by error or omission, and where the amount of the tax is known or through reasonable diligence should have been known.

      Sec. 13.  NRS 679B.190 is hereby amended to read as follows:

      679B.190  1.  The commissioner shall carefully preserve in the division and in permanent form all papers and records relating to the business and transactions of the division and shall hand them over to his successor in office.

      2.  Except as otherwise provided by subsections [3 and 5] 3, 5 and 6 and other provisions of this code, the papers and records must be open to public inspection.

      3.  Any records or information related to the investigation of a fraudulent claim by the commissioner [are] is confidential unless:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1612 (Chapter 496, AB 475)ê

 

      (a) The commissioner releases the records or information for public inspection after determining that the release of the records or information will not harm his investigation or the person who is being investigated; or

      (b) A court orders the release of the records or information after determining that the production of the records or information will not damage any investigation being conducted by the commissioner.

      4.  The commissioner may destroy unneeded or obsolete records and filings in the division in accordance with provisions and procedures applicable in general to administrative agencies of this state.

      5.  The commissioner may classify as confidential certain records and information obtained from a governmental agency or other sources upon the express condition that they remain confidential . [, or be deemed confidential by the commissioner.] No filing required to be made with the commissioner under this code shall be deemed confidential unless expressly provided by law.

      6.  All information and documents in the possession of the division or any of its employees which are related to cases or matters under investigation or examination by the commissioner or his staff are confidential for the entire period of the investigation or examination and may not be made public unless the commissioner finds the existence of an imminent threat of harm to the safety or welfare of the policyholder, shareholders or the public and determines that the interests of the policyholder, shareholders or the public will be served by publication thereof, in which event he may make a record public or publish all or any part of the record in any manner he deems appropriate.

      Sec. 14.  NRS 679B.290 is hereby amended to read as follows:

      679B.290  1.  Except as otherwise provided in subsection 2:

      (a) The expense of examination of an insurer, or of any person referred to in [subsection 2 (management or control of an insurer under contract) or subsection 5 (promotion or financing of an insurer)] subsection 1, 2 or 5 of NRS 679B.240, [shall] must be borne by the person examined. Such expense [shall include] includes only the reasonable and proper hotel and travel expenses of the commissioner and his examiners and assistants, including expert assistance, reasonable compensation as to such examiners and assistants and incidental expenses as necessarily incurred in the examination. As to expense and compensation involved in any such examination the commissioner shall give due consideration to scales and limitations recommended by the National Association of Insurance Commissioners and outlined in the examination manual sponsored by that association.

      [2.  Such]

      (b) The person examined shall promptly pay to the commissioner the expenses of the examination upon presentation by the commissioner of a reasonably detailed written statement thereof.

      2.  The commissioner may bill an insurer for the examination of any person referred to in subsection 1 of NRS 679B.240 and shall adopt regulations governing such billings.

      Sec. 15.  NRS 680A.155 is hereby amended to read as follows:

      680A.155  An insurer which has transacted insurance in this state without a certificate of authority must not be granted a certificate of authority unless it pays the tax imposed by NRS 680B.027 and the penalties provided by NRS 685B.190 for the [3] 5 years immediately preceding the date upon which it applies for a certificate of authority.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1613 (Chapter 496, AB 475)ê

 

685B.190 for the [3] 5 years immediately preceding the date upon which it applies for a certificate of authority.

      Sec. 16.  NRS 680A.200 is hereby amended to read as follows:

      680A.200  1.  The commissioner may refuse to continue or may suspend, limit or revoke an insurer’s certificate of authority if he finds after a hearing thereon, or upon waiver of hearing by the insurer, that the insurer has:

      (a) Violated or failed to comply with any lawful order of the commissioner;

      (b) Conducted his business in an unsuitable manner;

      (c) Willfully violated or willfully failed to comply with any lawful regulation of the commissioner; or

      (d) Violated any provision of this code other than one for violation of which suspension or revocation is mandatory.

In lieu of such a suspension or revocation, the commissioner may levy upon the insurer, and the insurer shall pay forthwith, an administrative fine of not more than $2,000 [.] for each act or violation.

      2.  The commissioner shall suspend or revoke an insurer’s certificate of authority on any of the following grounds if he finds after a hearing thereon that the insurer:

      (a) Is in unsound condition, is being fraudulently conducted, or is in such a condition or is using such methods and practices in the conduct of its business as to render its further transaction of insurance in this state currently or prospectively hazardous or injurious to policyholders or to the public.

      (b) With such frequency as to indicate its general business practice in this state:

             (1) Has without just cause failed to pay, or delayed payment of, claims arising under its policies, whether the claims are in favor of an insured or in favor of a third person with respect to the liability of an insured to the third person; or

             (2) Without just cause compels insureds or claimants to accept less than the amount due them or to employ attorneys or to bring suit against the insurer or such an insured to secure full payment or settlement of such claims.

      (c) Refuses to be examined, or its directors, officers, employees or representatives refuse to submit to examination relative to its affairs, or to produce its books, papers, records, contracts, correspondence or other documents for examination by the commissioner when required, or refuse to perform any legal obligation relative to the examination.

      (d) Except as otherwise provided in NRS 681A.110, has reinsured all its risks in their entirety in another insurer.

      (e) Has failed to pay any final judgment rendered against it in this state upon any policy, bond, recognizance or undertaking as issued or guaranteed by it, within 30 days after the judgment became final or within 30 days after dismissal of an appeal before final determination, whichever date is the later.

      3.  The commissioner may, without advance notice or a hearing thereon, immediately suspend the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation or other delinquency proceedings have been commenced in any state by the public officer who supervises insurance for that state.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1614 (Chapter 496, AB 475)ê

 

      4.  No proceeding to suspend, limit or revoke a certificate of authority pursuant to this section may be maintained unless it is commenced by the giving of notice to the insurer within 5 years after the occurrence of the charged act or omission. This limitation does not apply if the commissioner finds fraudulent or willful evasion of taxes.

      Sec. 17.  NRS 683A.110 is hereby amended to read as follows:

      683A.110  1.  For the purposes of this section:

      (a) “Bank” means any institution that accepts deposits that the depositor has a legal right to withdraw on demand.

      (b) “Bank holding company,” “company,” “parent,” “subsidiary,” “affiliate” and related terms must be defined by the commissioner [in order] to effectuate the purposes of this section, which are to help maintain the separation between banking and the insurance business and to minimize the possibilities of unfair competitive activities by banks against insurance companies, agents and brokers.

      2.  A bank or bank holding company or its parent, subsidiaries or affiliates must not directly or indirectly be licensed to sell insurance in this state except as to credit insurance, as defined in NRS 690A.015, and credit property insurance, or be licensed or admitted as an insurer.

      3.  The provisions of subsection 2 do not prohibit the licensing of a bank or a bank holding company, or a parent, subsidiary or affiliate of a bank by the commissioner of insurance to sell annuities. As used in this subsection, “annuity” has the meaning ascribed to it in NRS 688A.020.

      Sec. 18.  NRS 683A.120 is hereby amended to read as follows:

      683A.120  The commissioner shall prescribe [and furnish] all forms in connection with licensing and appointments required under this code.

      Sec. 19.  NRS 683A.260 is hereby amended to read as follows:

      683A.260  1.  The commissioner may issue a limited agent’s license to an applicant qualified under this chapter:

      (a) Who represents public carriers and in the course of his representation solicits or sells insurance incidentally to the transportation of persons or to the storage or transportation of property; or

      (b) Whose insurance activities are limited to the solicitation and sale of:

             (1) Credit insurance, as defined in NRS 690A.015, and credit property and casualty insurance; or

             (2) Fixed annuities.

      2.  The commissioner may adopt regulations which require the applicant to pass an appropriate examination before the issuance of a license pursuant to this section.

      3.  [A] Except for a bank or a bank holding company, or a parent, subsidiary or affiliate of a bank that may be licensed to sell fixed and variable annuities, and credit insurance as defined in NRS 690A.015, a person to whom a license is issued pursuant to this section may not concurrently hold any other license authorized by this chapter.

      Sec. 20.  NRS 683A.280 is hereby amended to read as follows:

      683A.280  1.  [Each] Except as otherwise provided in this chapter, each insurer appointing an agent, resident or nonresident, in this state shall [file with] report to the commissioner [a written appointment specifying the kinds of insurance to be transacted by the agent for the insurer, and pay the] annually on January 1 the name, license number, effective date, termination date, reason for termination and kinds of insurance transacted for each agent with whom the insurer has contracted.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1615 (Chapter 496, AB 475)ê

 

annually on January 1 the name, license number, effective date, termination date, reason for termination and kinds of insurance transacted for each agent with whom the insurer has contracted. The annual report must be accompanied by the appointment fee [or license fee] specified in NRS 680B.010 [.

      2.  Each appointment becomes effective upon filing with the commissioner and] for each new agent appointed during the calendar year.

      2.  The appointment of an agent remains in effect until the agent’s license is revoked or otherwise terminated, or there is an earlier termination of the appointment.

      Sec. 21.  NRS 683A.290 is hereby amended to read as follows:

      683A.290  1.  Subject to an agent’s contract rights, if any, an insurer may terminate the agent’s appointment, resident or nonresident, at any time. The insurer shall promptly give written notice of any termination [and] for cause, the effective date thereof and the reason for termination to the commissioner, on forms [furnished] prescribed by the commissioner, and to the agent if reasonably possible. The commissioner may require of the insurer reasonable proof that the insurer has also given such a notice to the agent if reasonably possible.

      [2.  Accompanying the notice of termination given the commissioner, the insurer shall, upon written request of the commissioner, file with him a statement of the cause, if any, for each termination.] Any information or document so disclosed or furnished to the commissioner shall be deemed a qualifiedly privileged communication and is not admissible as evidence in any action or proceeding unless so permitted by the insurer in writing.

      [3.] 2.  An agent or broker terminating the employment and license of a solicitor shall promptly give [like] written notice of termination and such proof as required pursuant to subsection 1 to the commissioner [, like information as] , together with all information related to the reasons for termination . [, with like status as] Such information shall be deemed a privileged communication unless the privilege is waived in writing by the agent or broker.

      [4.] 3.  No agreement between an insurer and agent, or between an employing agent or broker and a licensed solicitor, affects the commissioner’s termination of the appointment or license if so requested by the insurer or by the agent or broker, as the case may be.

      Sec. 22.  NRS 684A.020 is hereby amended to read as follows:

      684A.020  1.  As used in this code, “adjuster” means any person who, for compensation as an independent contractor or for a fee or commission, investigates and settles, and reports to his principal relative to, claims:

      (a) Arising under insurance contracts for property, casualty or surety coverage, on behalf solely of the insurer or the insured; or

      (b) Against a self-insurer who is providing similar coverage, unless the coverage provided relates to a claim for industrial insurance.

      2.  [Except as otherwise provided in subsection 3:] For the purposes of this chapter:

      (a) An associate adjuster, as defined in NRS 684A.030;

      (b) An attorney at law who adjusts insurance losses from time to time incidental to the practice of his profession;

      (c) An adjuster of ocean marine losses;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1616 (Chapter 496, AB 475)ê

 

      (d) A salaried employee of an insurer; or

      (e) A salaried employee of a managing general agent maintaining an underwriting office in this state,

is not considered an adjuster . [for the purposes of this chapter.

      3.  For any insurer who sells to natural persons liability insurance covering motor vehicles, “adjuster” includes a salaried employee of the insurer and a salaried employee of a managing general agency maintaining an underwriting office in this state.]

      Sec. 23.  Chapter 685A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A nonprofit organization of surplus lines brokers may be formed to:

      (a) Facilitate and encourage compliance by its members with the laws of this state and the rules and regulations of the commissioner concerning surplus lines insurance;

      (b) Provide a means for the review of all surplus lines coverage written in this state;

      (c) Communicate with organizations of admitted insurers with respect to the proper use of the surplus lines market;

      (d) Receive and disseminate to brokers information relative to surplus lines coverages; and

      (e) Charge members a filing fee, approved by the commissioner, for the review of surplus lines coverages.

      2.  Every such organization shall exercise its powers through a board of directors and shall file with the commissioner:

      (a) A copy of its constitution, articles of agreement or association or certificate of incorporation;

      (b) A copy of its bylaws, rules and regulations governing its activities;

      (c) A copy of its plan of operations established and approved by the commissioner;

      (d) A current list of its members;

      (e) The name and address of a resident of this state upon whom notices or orders of the commissioner or processes issued at his direction may be served; and

      (f) An agreement that the commissioner may examine the organization in accordance with the provisions of this section.

      3.  The commissioner shall make an examination of the affairs, transactions, accounts, records and assets of such an organization and any of its members as often as he deems necessary for the protection of the interests of the people of this state, but no less frequently than once every 3 years. The officers, managers, agents and employees of such an organization may be examined at any time, under oath, and shall provide to the commissioner all books, records, accounts, documents or agreements governing its method of operation. The commissioner shall furnish two copies of his examination report to the organization examined and shall notify the organization that it may, within 20 days thereof, request a hearing on the report or on any facts or recommendations set forth therein. If the commissioner finds such an organization or any member thereof to be in violation of this chapter, he may, in addition to any administration fine or penalty imposed pursuant to this code, issue an order requiring the discontinuance of such violations.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1617 (Chapter 496, AB 475)ê

 

      4.  The board of directors of such an organization must consist of not fewer than five persons. The members of the board must be appointed by the commissioner and serve at his pleasure.

      5.  A broker must be a member of such an organization as a condition of continued licensure under this chapter.

      Sec. 24.  NRS 685A.120 is hereby amended to read as follows:

      685A.120  1.  No person in this state may act as, hold himself out as, or be a surplus lines broker with respect to subjects of insurance resident, located or to be performed in this state or elsewhere unless he is licensed as such by the commissioner pursuant to this chapter.

      2.  Any person who has been licensed by this state as a resident broker for general lines for at least 6 months or has been licensed in another state as a surplus lines broker for at least 1 year and who is deemed by the commissioner to be competent and trustworthy with respect to the handling of surplus lines may be licensed as a surplus lines broker upon:

      (a) Application for a license and payment of the applicable fee for a license and a fee of $15 for the recovery fund; and

      (b) Passing any examination prescribed by the commissioner on the subject of surplus lines.

      3.  Application for the license must be made to the commissioner on forms designated and furnished by him.

      4.  A license issued pursuant to this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. The license may be renewed by payment of the applicable fee for renewal and a fee of $15 for the recovery fund to the commissioner on or before the last day of the month in which the license is renewable.

      5.  A license which is not renewed expires at midnight on the last day specified for its renewal. The commissioner may accept a request for renewal received by him within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of the fee otherwise required and a fee of $15 for the recovery fund.

      Sec. 25.  NRS 685A.175 is hereby amended to read as follows:

      685A.175  Within 45 days after the end of each calendar quarter, a broker who has written coverage which will require him to pay more than $1,000 in taxes for coverage written in that calendar quarter shall pay the tax for the quarter to the commissioner and shall file with the commissioner , or with a nonprofit organization of brokers in accordance with regulations adopted by the commissioner pursuant to NRS 685A.210, a copy of a quarterly report [and shall pay the tax for the quarter. The report must include] which includes an accounting of:

      1.  The aggregate gross premiums for the quarter;

      2.  The aggregate of the return premiums received; [and]

      3.  The amount of tax remitted [.] to the commissioner; and

      4.  The amount of aggregate tax remitted to each other state for which an allocation is made pursuant to NRS 680B.030.

The report must be on a form [prescribed] approved by the commissioner.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1618 (Chapter 496, AB 475)ê

 

      Sec. 26.  NRS 685A.180 is hereby amended to read as follows:

      685A.180  1.  On or before March 1 of each year each broker shall pay to the commissioner a tax on surplus lines coverages written by him in unauthorized insurers during the preceding calendar year at the same rate of tax as imposed by law on the premiums of [like] similar coverages written by authorized insurers. If a broker has paid any taxes pursuant to NRS 685A.175, he shall deduct the total paid from the tax due and pay the remainder, if any.

      2.  For the purposes of this section, the “premium” on surplus lines coverages includes [only the] :

      (a) The gross amount charged by the insurer for the insurance, [and] less any return premium;

      (b) Any fee allowed by NRS 685A.155;

      (c) Any policy fee;

      (d) Any membership fee; and

      (e) Any other fees or assessments charged by the insurer as consideration for the insurance.

Premium does not include any additional amount charged for state or federal tax, filing affidavits or reports of coverage, inspection fee or the communication expenses of the broker.

      3.  If a contract for surplus lines insurance covers risks or exposures only partially in this state, the tax so payable must be computed on that portion of the premium properly allocable to the risks or exposures located in this state. The commissioner may adopt regulations which establish standards for allocating premiums for risks located in this state in the same manner as premiums are allocated pursuant to NRS 680B.030.

      4.  The commissioner shall promptly deposit all taxes collected by him pursuant to this section with the state treasurer, to the credit of the state general fund.

      5.  A broker who receives a credit for tax paid shall refund to each insured the amount of the credit attributable to the insured when the insurer pays a return premium or within 30 days, whichever is earlier.

      Sec. 27.  NRS 685A.190 is hereby amended to read as follows:

      685A.190  1.  Every broker who fails to make and file the annual statement as required under NRS 685A.170 [, or fails to pay the tax required by NRS 685A.180,] before April 1 after the due date of the statement , [or tax,] is liable for a penalty [in the first year of delinquency] of $25 for each day of delinquency, beginning with April 1, but not to exceed in the aggregate $500 . [or an amount equal to the amount of the delinquent tax, whichever is the larger. If the broker fails to file the statement or pay the tax and penalty within 1 year after they are due, the broker is liable for a separate penalty for each subsequent year of delinquency equal to the sum of all unpaid taxes and penalties for each previous year.]

      2.  Every broker who fails to pay the tax required by NRS 685A.180 before April 1 after the date upon which the tax is due is liable for a penalty in the first year of delinquency in the amount of $500 or the amount of the delinquent tax, whichever is larger. If the broker fails to pay the tax and penalty within 1 year after they are due, the broker is liable for a separate penalty for each subsequent year of delinquency equal to the sum of all unpaid taxes and penalties for each previous year.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1619 (Chapter 496, AB 475)ê

 

each subsequent year of delinquency equal to the sum of all unpaid taxes and penalties for each previous year.

      3.  The tax may be collected by distraint, or the tax and fine may be recovered by an action instituted by the commissioner, in the name of the state, the attorney general representing him, in any court of competent jurisdiction. The fine, when so collected, must be paid to the state treasurer for credit to the state general fund.

      4.  No proceeding to recover taxes, penalties or fines pursuant to this section may be maintained unless it is commenced by the giving of notice to the person against whom the proceeding is brought within 5 years after the occurrence of the charged act or omission. This limitation does not apply if the commissioner finds fraudulent or willful evasion of taxes.

      Sec. 28.  NRS 685A.200 is hereby amended to read as follows:

      685A.200  1.  An unauthorized insurer effecting insurance under the provisions of the Surplus Lines Law shall be deemed to be transacting insurance in this state as an unlicensed insurer, and may be sued in a district court of this state upon any cause of action arising against it in this state under any insurance contract entered into by it under this chapter.

      2.  Service of legal process against the insurer may be made in any such action by service of two copies thereof upon the commissioner [,] or his authorized representative, and payment of the fee specified in NRS 680B.010. The commissioner or his authorized representative shall forthwith mail a copy of the process served to the person designated by the insurer in the policy for the purpose, by prepaid registered or certified mail with return receipt requested. If no such person is so designated in the policy, the commissioner or his authorized representative shall in like manner mail a copy of the process to the broker through whom the insurance was procured, or to the insurer at its principal place of business, addressed to the address of the broker or insurer, as the case may be, last of record with the commissioner. Upon service of process upon the commissioner or his authorized representative and its mailing in accordance with this subsection, the court shall be deemed to have jurisdiction in personam of the insurer.

      3.  The defendant insurer has 40 days from the date of service of the summons and complaint upon the commissioner or his authorized representative within which to plead, answer or defend any such suit.

      4.  An unauthorized insurer entering into such an insurance contract shall be deemed thereby to have authorized service of process against it in the manner and to the effect provided in this section. Any such contract, if issued, must contain a provision stating the substance of this section, and designating the person to whom the commissioner or his authorized representative shall mail process as provided in subsection 2.

      5.  For the purposes of this section, “process” includes only a summons or the initial documents served in an action. The commissioner or his authorized representative is not required to serve any documents after the initial service of process.

      Sec. 29.  NRS 685A.210 is hereby amended to read as follows:

      685A.210  1.  The commissioner may adopt reasonable regulations, consistent with the [Surplus Lines Law,] provisions of this chapter, for any of the following purposes:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1620 (Chapter 496, AB 475)ê

 

      (a) Effectuation of the law; [and]

      (b) Establishment of procedures through which determination is to be made as to the eligibility of particular proposed coverages for export [.] ; and

      (c) Establishment of procedures for the operation of a nonprofit organization of brokers designed to assist brokers in complying with the provisions of this chapter.

      2.  Such regulations carry the penalty provided by NRS 679B.130.

      Sec. 30.  NRS 685B.035 is hereby amended to read as follows:

      685B.035  1.  If the commissioner has reason to believe that an insurer has committed or engaged in, is committing or engaging in, or is about to commit or engage in any practice, transaction or act prohibited by NRS 685B.030, he may:

      (a) Apply to the district court for injunctive relief pursuant to NRS 685B.040 and for an order imposing an administrative fine pursuant to NRS 685B.080;

      (b) Issue a statement of charges and a notice of an administrative hearing to be held before the commissioner on those charges and serve the statement and notice upon the person so charged; or

      (c) Issue a cease and desist order if the commissioner deems, in his discretion, that the insurer’s conduct is injurious to the rights and interests of the public or policyholders in this state and that emergency action is imperatively required. If the commissioner issues a cease and desist order pursuant to this paragraph, he [must] shall hold a hearing within 30 days after a request by the insurer in accordance with the provisions of NRS 679B.310.

      2.  Any statement of charges and notice of an administrative hearing pursuant to this section must be:

      (a) Issued as provided in NRS 679B.320; and

      (b) Served personally or by certified or registered mail.

      3.  After the commissioner conducts a hearing pursuant to this section, he shall issue an order pursuant to NRS 679B.360. If the commissioner determines that the person being charged has engaged in a practice prohibited by this Title, the commissioner:

      (a) Shall order the person to cease and desist from that practice; [and]

      (b) May order the person to pay an administrative fine pursuant to NRS 685B.080 [.] ; and

      (c) Shall order the person to pay premium taxes at the same rate of tax as imposed by law on the premiums of similar coverages written by authorized insurers. If the person fails to pay premium taxes on or before March 1 of the year in which the taxes are due, the person is liable for the penalties set for in NRS 685A.190.

      4.  The commissioner may modify or set aside, in whole or in part, any order issued by him pursuant to this section, but any such action must be made before the expiration of the time for taking an appeal or before the official record of the proceeding has been filed with the court.

      5.  An order issued pursuant to this section:

      (a) May be reviewed pursuant to NRS 679B.370.

      (b) Becomes final:

             (1) Upon the expiration of the time for taking an appeal, if no petition for judicial review has been filed; or


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1621 (Chapter 496, AB 475)ê

 

             (2) Upon the final decision of the court.

      6.  If a person violates an order issued pursuant to this section, the commissioner may, after notice and a hearing, impose an administrative fine of not more than $5,000 for each violation.

      7.  The commissioner shall not, sooner than 1 year after the date on which an order pursuant to this section has been issued, grant an authorization as a surplus lines insurer or issue any license pursuant to Title 57 of NRS to the violator.

      Sec. 31.  Chapter 686A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A company is subject to the provisions of chapter 696B of NRS.

      2.  For the purposes of chapter 696B of NRS, a company shall be deemed to be an insurer.

      Sec. 32.  NRS 686A.225 is hereby amended to read as follows:

      686A.225  1.  Except as otherwise provided in NRS 684A.060, any insurer who [sells liability insurance covering motor vehicles to natural persons] :

      (a) Transacts property, casualty or surety insurance in this state; and

      (b) Retains an adjuster to investigate and settle any claim arising under an insurance contract,

shall retain an adjuster who [is licensed] resides in this state.

      2.  As used in this section, “adjuster” has the meaning ascribed to it in NRS 684A.020.

      Sec. 33.  NRS 686A.230 is hereby amended to read as follows:

      686A.230  1.  A person shall not willfully collect any sum as a premium or charge for insurance which is not then provided or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as authorized by this code.

      2.  Except as otherwise provided in subsection 3, a person shall not willfully collect as a premium or charge for insurance any sum in excess of the premium or charge applicable to the insurance and as specified in the policy, in accordance with the applicable classifications and rates as filed with and approved by the commissioner. In cases where classifications, premiums or rates are not required by this code to be so filed and approved, the premiums and charges must not be in excess of those specified in the policy and as fixed by the insurer. This subsection does not prohibit:

      (a) The charging and collection [,] by surplus lines brokers licensed under chapter 685A of NRS [,] of the amount [of applicable state and federal taxes and nominal service charge to cover expenses for communication, in addition to the premium required by the insurer.] permitted by chapter 685A of NRS and regulations adopted by the commissioner.

      (b) The charging and collection [,] by a life insurer [,] of amounts actually to be expended for the medical examination of any applicant for life insurance or for reinstatement of a life insurance policy.

      3.  The commissioner may adopt regulations to allow the charging and collection of a fee by an insurance broker, consultant or financial planner:

      (a) In lieu of any other charge or commission for solicitation, negotiation or procurement of a policy of insurance which covers commercial or business risks;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1622 (Chapter 496, AB 475)ê

 

      (b) For consultation or any related advice on the insuring of commercial or business risks which does not result in the procurement of a policy of insurance; and

      (c) For consultation or related advice on the purchase of life of health insurance or an annuity, whether or not it results in the purchase of a policy of insurance or annuity. In such a case, the fee must be set forth in a written contract signed by the client before the consultation begins.

      4.  An agent or broker who provides consultation or related advice pursuant to this section [must] shall do so pursuant to a written contract specifying the compensation he will receive. The compensation may be in addition to or in lieu of a commission and is not a premium as defined in NRS 679A.115.

      Sec. 34.  NRS 686A.330 is hereby amended to read as follows:

      686A.330  As used in NRS 686A.330 to 686A.520, inclusive, and section 31 of this act, unless the context otherwise requires:

      1.  “Agreement” means a contract between a person and an insured or prospective insured under which the person agrees to pay a premium in advance on behalf of the insured or prospective insured in exchange for repayment of the amount advanced with interest or for some other consideration.

      2.  “Company” means a person engaged in the business of entering into agreements or purchasing agreements. The term does not include a person who finances a premium in connection with the sale of a motor vehicle upon which he holds a lien.

      Sec. 35.  NRS 686A.470 is hereby amended to read as follows:

      686A.470  1.  When an insurance policy is canceled pursuant to NRS 686A.460, the insurer shall return the unearned premium to the company for credit to the account of the insured. The premium must be mailed to the company:

      (a) Within 45 days after receipt of the notice of cancellation; or

      (b) Immediately following an audit performed to determine the amount of the premium. If such an audit is performed, it must be completed within 60 days after receipt of the notice of cancellation.

      2.  If the returned portion of the premium exceeds the insured’s obligation to the company, the company shall pay the excess to the insured within 30 days after receipt, except that no refund is required if the excess is less than $1.

      3.  If the returned portion of the premium is less than the insured’s obligation to the company, the company shall notify the insured within 15 days making a demand for payment, except that the company shall not make a demand for payment if the obligation is less than $1.

      4.  The company shall notify the agent who submitted the agreement of any refund paid directly to the insured pursuant to subsection 2 at the time the refund is paid. Within 15 days after receipt of this notice, the agent shall refund to the insured any unearned commissions which are owed to the insured as a result of the cancellation.

      5.  The company shall notify the agent who submitted the agreement of any deficiency. Within [30] 15 days after receipt of the notice, the agent shall refund to the insured any unearned commissions which are owed to the insured as a result of the cancellation.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1623 (Chapter 496, AB 475)ê

 

      Sec. 36.  NRS 686B.115 is hereby amended to read as follows:

      686B.115  1.  Any hearing held by the commissioner to determine whether rates comply with the provisions of NRS 686B.010 to 686B.175, inclusive, must be open to members of the public.

      2.  All costs for transcripts prepared pursuant to such a hearing must be paid by the insurer requesting the hearing.

      Sec. 37.  NRS 686C.035 is hereby amended to read as follows:

      686C.035  1.  This chapter does not provide coverage for:

      (a) Any portion of a policy or contract not guaranteed by the insurer, or under which the risk is borne by the policyholder.

      (b) Any policy or contract of reinsurance unless assumption certificates have been issued.

      (c) Any portion of a policy or contract to the extent that the rate of interest on which it is based:

             (1) When averaged over the 4 years before the date that the association becomes obligated with respect to the policy or contract, or averaged for the period since the policy or contract was issued if it was issued less than 4 years before the association became obligated, exceeds the rate of interest determined by subtracting 2 percentage points from Moody’s Corporate Bond Yield Average averaged for the same period; and

             (2) On or after the date on which the association becomes obligated with respect to the policy or contract, exceeds the rate of interest determined by subtracting 3 percentage points from the most recent Moody’s Corporate Bond Yield Average.

      (d) Any plan or program of an employer, association or similar entity to provide life or health benefits or annuities to its employees or members to the extent that the plan or program is self-funded or uninsured, including, but not limited to, benefits payable by an employer, association or similar entity under:

             (1) A Multiple Employer Welfare Arrangement as defined in 29 U.S.C. § [144;] 1002;

             (2) A minimum-premium group insurance plan;

             (3) A stop-loss group insurance plan; or

             (4) A contract for administrative services only.

      (e) Any portion of a policy or contract to the extent that it provides dividends, credits for experience, or payment to any person, including the policyholder, for services or administration connected with the policy or contract.

      (f) Any policy or contract issued in this state by a member insurer at a time when the member insurer was not authorized to issue the policy or contract.

      (g) Any certificate for an annuity or group annuity which is not issued to or owned by a natural person, except to the extent of any annuity guaranteed to a natural person by an insurer under the contract or certificate except that annuities issued in connection with and for the purpose of funding structured settlements of liability are covered policies.

      (h) Any health or life insurance policy purchased by the Federal Government, if no premium taxes are paid on such policies.

      (i) Any annuity issued pursuant to subsection 8 of NRS 680A.070.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1624 (Chapter 496, AB 475)ê

 

      2.  As used in this section, “Moody’s Corporate Bond Yield Average” means the monthly average for corporate bonds published by Moody’s Investors Service, Inc., or any successor average.

      Sec. 38.  NRS 687B.120 is hereby amended to read as follows:

      687B.120  1.  No life or health insurance policy or contract, annuity contract form, policy form, health care plan or plan for dental care, whether individual, group or blanket, including those to be issued by a health maintenance organization, organization for dental care or prepaid limited health service organization, or application form where a written application is required and is to be made a part of the policy or contract, or printed rider or endorsement form or form of renewal certificate, or form of individual certificate or statement of coverage to be issued under group or blanket contracts, or by a health maintenance organization, organization for dental care or prepaid limited health service organization, may be delivered or issued for delivery in this state, unless the form has been filed with and approved by the commissioner. This subsection does not apply to any special rider or endorsement which relates to the manner of distribution of benefits or to the reservation of rights and benefits under life or health insurance policies, which special riders or endorsements are used at the request of the individual policyholder, contract holder or certificate holder. As to group insurance policies effectuated and delivered outside this state but covering persons resident in this state, the group certificates to be delivered or issued for delivery in this state must be filed, for informational purposes only, with the commissioner at his request.

      2.  Every such filing must be made not less than [30] 45 days in advance of any such delivery. At the expiration of [30] 45 days the form so filed shall be deemed approved unless prior thereto it has been affirmatively approved or disapproved by order of the commissioner. Approval of any such form by the commissioner constitutes a waiver of any unexpired portion of such waiting period. The commissioner may extend by not more than an additional 30 days the period within which he may so affirmatively approve or disapprove any such form, by giving notice to the insurer of the extension before expiration of the initial [30-day] 45-day period. At the expiration of any such period as so extended, and in the absence of prior affirmative approval or disapproval, any such form shall be deemed approved. The commissioner may at any time, after notice and for cause shown, withdraw any such approval.

      3.  Any order of the commissioner disapproving any such form or withdrawing a previous approval must state the grounds therefor and the particulars thereof in such detail as reasonably to inform the insurer thereof. Any such withdrawal of a previously approved form is effective at the expiration of such a period, not less than 30 days after the giving of notice of withdrawal, as the commissioner in such notice prescribes.

      4.  The commissioner may, by order, exempt from the requirements of this section for so long as he deems proper any insurance document or form or type thereof specified in the order, to which, in his opinion, this section may not practicably be applied, or the filing and approval of which are, in his opinion, not desirable or necessary for the protection of the public.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1625 (Chapter 496, AB 475)ê

 

      5.  Appeals from orders of the commissioner disapproving any such form or withdrawing a previous approval may be taken as provided in NRS 679B.310 to 679B.370, inclusive.

      Sec. 39.  NRS 688A.325 is hereby amended to read as follows:

      688A.325  1.  This section applies to all policies issued by an insurer on or after the operative date of this section as it relates to that insurer. Except as otherwise provided in subsection 7, the adjusted premiums for any policy must be calculated on an annual basis and be the uniform percentage of the respective premium specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments or special hazards and any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits. The present value, at the date of issue of the policy, of all adjusted premiums must be equal to the sum of:

      (a) The value of the future guaranteed benefits provided for by the policy;

      (b) One percent of the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first 10 policy years; and

      (c) One hundred twenty-five percent of the nonforfeiture net level premium. In applying the percentage specified in paragraph (c), no nonforfeiture net level premium may be deemed to exceed 4 percent of the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first 10 policy years. The date of issue of a policy for the purpose of this section must be the date as of which the rated age of the insured is determined.

      2.  The nonforfeiture net level premium must be equal to the present value, at the date of issue of the policy, of the guaranteed benefits provided for by the policy divided by the present value, at the date of issue of the policy, of an annuity of one per annum payable on the date of issue of the policy and on each anniversary of the policy on which a premium falls due.

      3.  In the case of policies which cause unscheduled changes in benefits or premiums on a basis guaranteed in the policy, or which provide an option for changes in benefits or premiums other than a change to a new policy, the adjusted premiums and present values must initially be calculated on the assumption that future benefits and premiums do not change from those stipulated at the date of issue of the policy. At the time of any change in the benefits or premiums, the future adjusted premiums, nonforfeiture net level premiums and present values must be recalculated on the assumption that future benefits and premiums do not change from those stipulated by the policy immediately after the change.

      4.  Except as otherwise provided in subsection 7, the recalculated future adjusted premiums for any such policy must be a uniform percentage of the respective future premiums specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments and special hazards and any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, which results in the present value, at the time of change to the newly defined benefits or premiums, of all future adjusted premiums being equal to the excess of the sum of the present value of the future guaranteed benefits provided for by the policy and the additional expense allowance, if any, over the cash surrender value, if any, or present value of any paid-up nonforfeiture benefit under the policy.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1626 (Chapter 496, AB 475)ê

 

the present value of the future guaranteed benefits provided for by the policy and the additional expense allowance, if any, over the cash surrender value, if any, or present value of any paid-up nonforfeiture benefit under the policy.

      5.  The additional expense allowance, at the time of the change to the newly defined benefits or premiums, must be the sum of:

      (a) One percent of the excess, if positive, of the average amount of insurance at the beginning of each of the first 10 policy years after the change, over the average amount of insurance before the change at the beginning of each of the first 10 policy years after the most recent previous change, or, if there has been no previous change, the date of issue of the policy; and

      (b) One hundred twenty-five percent of the increase, if positive, in the nonforfeiture net level premium.

      6.  The recalculated nonforfeiture net level premium must be equal to the result obtained by dividing amount “A” by amount “B” where:

      (a) “A” equals the sum of:

             (1) The nonforfeiture net level premium applicable before the change, multiplied by the present value of an annuity of one per annum payable on each anniversary of the policy on or after the date of the change on which a premium would have fallen due if the change had not occurred; and

             (2) The present value of the increase in future guaranteed benefits provided for by the policy.

      (b) “B” equals the present value of an annuity of one per annum payable on each anniversary of the policy on or after the date of change on which a premium falls due.

      7.  In the case of a policy issued on a substandard basis which provides reduced graded amounts of insurance so that, in each policy year, the policy has the same tabular mortality cost as an otherwise similar policy issued on the standard basis which provides higher uniform amounts of insurance, adjusted premiums and present values for the substandard policy may be calculated as if it were issued to provide the higher uniform amounts of insurance on the standard basis.

      8.  All adjusted premiums and present values referred to in NRS 688A.290 to 688A.360, inclusive, must be calculated for all policies of ordinary insurance on the basis of the Commissioners 1980 Standard Ordinary Mortality Table or, at the election of the insurer for any one or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; all policies of industrial insurance must be calculated on the basis of the Commissioners 1961 Standard Industrial Mortality Table; and all policies issued in a particular calendar year must be calculated on the basis of a rate of interest not exceeding the nonforfeiture interest rate established in this section for policies issued in that calendar year, except as follows:

      (a) At the option of the insurer, calculations for all policies issued in a particular calendar year may be made on the basis of a rate of interest not exceeding the nonforfeiture interest rate, established in this section, for policies issued in the immediately preceding calendar year.

      (b) Under any paid-up nonforfeiture benefit, including any paid-up dividend additions, any cash surrender value available, whether or not required by NRS 688A.290, must be calculated on the basis of the mortality table and rate of interest used in determining the amount of the paid-up nonforfeiture benefit and paid-up dividend additions, if any.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1627 (Chapter 496, AB 475)ê

 

rate of interest used in determining the amount of the paid-up nonforfeiture benefit and paid-up dividend additions, if any.

      (c) An insurer may calculate the amount of any guaranteed paid-up nonforfeiture benefit including any paid-up additions under the policy on the basis of an interest rate which is not lower than that specified in the policy for calculating cash surrender values.

      (d) In calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1980 Extended Term Insurance Table for policies of ordinary insurance and not more than the Commissioners 1961 Industrial Extended Term Insurance Table for policies of industrial insurance.

      (e) For insurance issued on a substandard basis [,] or a special underwriting basis, the calculation of any adjusted premiums and present values may be based on appropriate modifications of the tables specified in this subsection.

      (f) Any ordinary mortality tables which are adopted after 1980 by the National Association of Insurance Commissioners and are approved by a regulation adopted by the commissioner for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table.

      (g) Any industrial mortality tables which are adopted after 1980 by the National Association of Insurance Commissioners and are approved by a regulation adopted by the commissioner for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table.

      9.  The nonforfeiture interest rate for any policy issued in a particular calendar year must be equal to 125 percent of the calendar year statutory valuation interest rate for the policy as defined in the Standard Valuation Law, rounded to the nearer one-fourth of 1 percent.

      10.  Any refiling of nonforfeiture values or their methods of computation for any previously approved policy form which involves only a change in the interest rate or mortality table used to compute nonforfeiture values does not require refiling of any other provisions of that policy form.

      11.  After July 1, 1983, any insurer may file with the commissioner a written notice of its election to comply with the provision of this section after a specified date before January 1, 1989. A date so specified is the operative date of this section for that insurer. If an insurer makes no election, the operative date of this section for that insurer is January 1, 1989.

      Sec. 40.  NRS 688A.330 is hereby amended to read as follows:

      688A.330  1.  In the case of industrial policies issued on or after the operative date of this section, as provided in subsection 2, all adjusted premiums and present values referred to in NRS 688A.290 to 688A.360, inclusive, must be calculated on the basis of the Commissioners 1961 Standard Industrial Mortality Table and the rate of interest specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits, but that rate of interest must not exceed 3.5 percent per annum, or 4 percent per annum for policies issued on or after July 1, 1973, and before July 1, 1977, and a rate of interest not exceeding 5.5 percent per annum may be used for policies issued on or after July 1, 1977, other than single premium whole life or endowment insurance policies, and for the latter policies a rate of interest not exceeding 6.5 percent per annum may be used, except that:

 


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1628 (Chapter 496, AB 475)ê

 

annum for policies issued on or after July 1, 1973, and before July 1, 1977, and a rate of interest not exceeding 5.5 percent per annum may be used for policies issued on or after July 1, 1977, other than single premium whole life or endowment insurance policies, and for the latter policies a rate of interest not exceeding 6.5 percent per annum may be used, except that:

      (a) In calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1961 Industrial Extended Term Insurance Table.

      (b) For insurance issued on a substandard basis [,] or a special underwriting basis, the calculations of any such adjusted premiums and present values may be based on such other table of mortality as may be specified by the insurer and approved by the commissioner.

      2.  After July 1, 1963, any insurer may file with the commissioner a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1968. After the filing of a notice, upon the specified date, this section is operative with respect to the industrial policies thereafter issued by the insurer. If an insurer makes no such election, the operative date of this section for the insurer is January 1, 1968.

      3.  This section does not apply to policies issued on or after the operative date of NRS 688A.325.

      Sec. 41.  NRS 689B.026 is hereby amended to read as follows:

      689B.026  1.  Except as otherwise provided in this section, no policy of group health insurance may be delivered or issued for delivery in this state to a group which was formed for the purpose of purchasing one or more policies of group health insurance.

      2.  A policy of group health insurance may be delivered to a group described in subsection 1 if the commissioner approves the issuance. The commissioner [must] shall not grant his approval unless he finds that:

      (a) The benefits of the policy are reasonable in relation to the premiums charged; and

      (b) The group to which the policy is issued is organized and operated in a fiscally sound manner.

      3.  [An] Upon approval by the commissioner, an insurer may exclude or limit the coverage in a policy issued pursuant to this section of any person as to whom evidence of insurability is not satisfactory to the insurer.

      4.  The provisions of this section apply to the offering in this state of a policy issued in another state.

      Sec. 42.  NRS 689B.034 is hereby amended to read as follows:

      689B.034  1.  Every policy of group health insurance must contain a provision which reduces the insurer’s liability because of benefits under other valid group coverage. To the extent authorized by the commissioner, such a provision may include subrogation.

      2.  A provision for subrogation may include a lien upon any recovery by an insured from a third person for the cost of medical benefits paid by the insurer for injuries incurred as a result of the actions of the third person. The lien may not exceed the amount paid by the insurer.

      3.  An insurer may not deny payment for services because of the inclusion of a provision required by this section.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1629 (Chapter 496, AB 475)ê

 

      Sec. 43.  NRS 689B.061 is hereby amended to read as follows:

      689B.061  A policy of group health insurance which offers a difference of payment between preferred providers of health care and providers of health care who are not preferred:

      1.  May not require a deductible of more than $600 difference per admission to a facility for inpatient treatment which is not a preferred provider of health care.

      2.  May not require a deductible of more than $500 difference per treatment, other than inpatient treatment at a hospital, by a provider which is not preferred.

      3.  May not require an insured, another insurer who issues policies of group health insurance, a nonprofit medical service corporation or a health maintenance organization to pay any amount in excess of the deductible or coinsurance due from the insured based on the rates agreed upon with a provider.

      4.  May not provide for a difference in percentage rates of payment for coinsurance of more than 30 percentage points between the payment for coinsurance required to be paid by the insured to a preferred provider of health care and the payment for coinsurance required to be paid by the insured to a provider of health care who is not preferred.

      [4.] 5.  Must require that the deductible and payment for coinsurance paid by the insured to a preferred provider of health care be applied to the negotiated reduced rates of that provider.

      [5.] 6.  Must include for providers of health care who are not preferred a provision establishing the point at which an insured’s payment for coinsurance is no longer required to be paid if such a provision is included for preferred providers of health care. Such provisions must be based on a calendar year. The point at which an insured’s payment for coinsurance is no longer required to be paid for providers of health care who are not preferred must not be greater than twice the amount for preferred providers of health care, regardless of the method of payment.

      [6.] 7.  Must provide that if there is a particular service which a preferred provider of health care does not provide and the provider of health care who is treating the insured requests the service and the insurer determines that the use of the service is necessary for the health of the insured, the service shall be deemed to be provided by the preferred provider of health care.

      [7.] 8.  Must require the insurer to process a claim of a provider of health care who is not preferred not later than 30 working days after the date on which proof of the claim is received.

      Sec. 44.  NRS 689B.063 is hereby amended to read as follows:

      689B.063  1.  When a policy of group insurance is primary, its benefits are determined before those of another policy and the benefits of another policy are not considered. When a policy of group insurance is secondary, its benefits are determined after those of another policy. Secondary benefits may not be reduced because of benefits under the primary policy. When there are more than two policies, a policy may be primary as to one and may be secondary as to another.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1630 (Chapter 496, AB 475)ê

 

      2.  The benefits payable under a policy of group health insurance may not be reduced because of any benefits payable under an individual health insurance policy, health insurance on a franchise plan or first party coverage under an automobile insurance policy.

      3.  As used in this section, “a policy of group insurance” includes Medicare.

      Sec. 45.  Chapter 690B of NRS is hereby amended by adding thereto a new section to read as follows:

      The commissioner may adopt regulations:

      1.  Defining administrative expenses for insurers who issue policies of insurance for home protection, and setting limitations on the amounts of such expenses as a percentage of total premiums; and

      2.  Defining accounting standards to be used for such insurers.

      Sec. 46.  NRS 690B.100 is hereby amended to read as follows:

      690B.100  As used in NRS 690B.100 to 690B.180, inclusive, and section 45 of this act, unless the context otherwise requires:

      1.  “Home” means a structure used primarily for residential purposes and includes a single-family dwelling, a unit in a multiple-family structure and a mobile home.

      2.  “Insurance for home protection” means a contract of insurance, which affords coverage over a specified term for a predetermined fee, under which a person, other than the manufacturer, builder, seller or lessor of the home, agrees to repair, replace or indemnify from the cost of repair or replacement based upon the failure of any structure, component, system or appliance of the home. The term does not include a contract which insures against any consequential losses caused by the defects or failures.

      Sec. 47.  NRS 690B.130 is hereby amended to read as follows:

      690B.130  1.  Except as otherwise provided in subsection 2, an insurer who issues policies of insurance for home protection, other than casualty insurance, shall deposit, in accordance with chapter 682B of NRS, securities having a market value of not less than [$20,000,] $50,000, unless he furnishes evidence satisfactory to the commissioner of maintaining a deposit of not less than that amount which complies with the requirements of his state of domicile and is held for the protection of all holders of insurance contracts.

      2.  In lieu of the deposit of securities, the insurer may post with the commissioner a surety bond of not less than [$20,000] $50,000 executed by an insurer who has a valid certificate of authority issued by the commissioner.

      3.  The insurer shall maintain:

      (a) Unimpaired paid-in capital stock or unimpaired basic surplus, or a combination thereof, in an amount not less than 10 percent of the amount charged as premiums for insurance currently in effect, but not less than [$20,000,] $50,000, nor more than is required by NRS 680A.120 for a certificate of authority.

      (b) Unearned premium reserves as required by NRS 681B.060.

      (c) Losses and loss expense reserves [in an amount not less than 60 percent of the amount] as required by subsection 1 of NRS 681B.050.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1631 (Chapter 496, AB 475)ê

 

      Sec. 48.  NRS 695B.185 is hereby amended to read as follows:

      695B.185  A group contract for hospital, medical or dental services which offers a difference of payment between preferred providers of health care and providers of health care who are not preferred:

      1.  May not require a deductible of more than $600 difference per admission to a facility for inpatient treatment which is not a preferred provider of health care.

      2.  May not require a deductible of more than $500 difference per treatment, other than inpatient treatment at a hospital, by a provider which is not preferred.

      3.  May not require an insured, another insurer who issues policies of group health insurance, a nonprofit medical service corporation or a health maintenance organization to pay any amount in excess of the deductible or coinsurance due from the insured based on the rates agreed upon with a provider.

      4.  May not provide for a difference in percentage rates of payment for coinsurance of more than 30 percentage points between the copayment required to be paid by the insured to a preferred provider of health care and the copayment required to be paid by the insured to a provider of health care who is not preferred.

      [4.] 5.  Must require that the deductible and payment for coinsurance paid by the insured to a preferred provider of health care be applied to the negotiated reduced rates of that provider.

      [5.] 6.  Must include for providers of health care who are not preferred a provision establishing the point at which an insured’s payment for coinsurance is no longer required to be paid if such a provision is included for preferred providers of health care. Such provisions must be based on a calendar year. The point at which an insured’s payment for coinsurance is no longer required to be paid for providers of health care who are not preferred must not be greater than twice the amount for preferred providers of health care, regardless of the method of payment.

      [6.] 7.  Must provide that if there is a particular service which a preferred provider of health care does not provide and the provider of health care who is treating the insured determines that the use of the service is necessary for the health of the insured, the service shall be deemed to be provided by the preferred provider of health care.

      [7.] 8.  Must require the corporation to process a claim of a provider of health care who is not preferred not later than 30 working days after the date on which proof of the claim is received.

      Sec. 49.  NRS 695B.320 is hereby amended to read as follows:

      695B.320  Nonprofit hospital and medical or dental service corporations are subject to the provisions of this chapter, and to the [following] provisions of [this code,] chapters 679A and 679B of NRS, NRS 686A.010 to 686A.315, inclusive, and chapters 692C and 696B of NRS, to the extent applicable and not in conflict with the express provisions of this chapter . [:

      1.  Chapter 679A (scope and definitions);

      2.  Chapter 679B (commissioner of insurance);

      3.  NRS 686A.010 to 686A.310, inclusive, (trade practices and frauds); and


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1632 (Chapter 496, AB 475)ê

 

      4.  Chapter 696B (delinquent insurers: conservation, rehabilitation and liquidation).]

      Sec. 50.  NRS 695C.140 is hereby amended to read as follows:

      695C.140  1.  A health maintenance organization shall, unless otherwise provided for in this chapter, file notice with the commissioner [prior to] and the state board of health before any material modification of the operations described in the information required by NRS 695C.070. If the commissioner does not disapprove within [30 days of filing, it] 90 days after the filing of the notice, the modification is deemed approved.

      2.  The commissioner may [promulgate rules or regulations.] adopt regulations to carry out the provisions of this section.

      Sec. 51.  NRS 695C.210 is hereby amended to read as follows:

      695C.210  1.  Every health maintenance organization shall file with the commissioner on or before March 1 of each year a report showing its financial condition on the last day of the preceding calendar year. The report must be verified by at least two principal officers of the organization. The organization shall file a copy of the report with the state board of health.

      2.  The report must be on forms prescribed by the commissioner and must include:

      (a) A financial statement of the organization, including its balance sheet and receipts and disbursements for the preceding calendar year;

      (b) Any material changes in the information submitted pursuant to NRS 695C.070;

      (c) The number of persons enrolled during the year, the number of enrollees as of the end of the year, the number of enrollments terminated during the year and, if requested by the commissioner, a compilation of the reasons for such terminations;

      (d) The number and amount of malpractice claims initiated against the health maintenance organization and any of the providers used by it during the year broken down into claims with and without form of legal process, and the disposition, if any, of each such claim, if requested by the commissioner;

      (e) A summary of information compiled pursuant to paragraph (c) of subsection 2 of NRS 695C.080 in such form as required by the state board of health; and

      (f) Such other information relating to the performance of the health maintenance organization as is necessary to enable the commissioner to carry out his duties pursuant to this chapter.

      3.  Every health maintenance organization shall file with the commissioner annually [a] an audited financial statement of the organization [certified] prepared by an independent certified public accountant. The statement must cover the preceding 12-month period and must be filed with the commissioner within 90 days after the end of the organization’s fiscal year. Upon written request, the commissioner may grant a 30-day extension.

      4.  If an organization fails to file timely the report or financial statement required by this section, it shall pay an administrative penalty of $100 per day until the report or statement is filed, except that the total penalty must not exceed $3,000. The attorney general shall recover the penalty in the name of the State of Nevada.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1633 (Chapter 496, AB 475)ê

 

      5.  The commissioner may grant a reasonable extension of time for filing the report or financial statement required by this section, if the request for an extension is submitted in writing and shows good cause.

      Sec. 52.  NRS 695D.260 is hereby amended to read as follows:

      695D.260  1.  Every organization for dental care shall file with the commissioner on or before March 1 of each year a report covering its activities for the preceding calendar year. The report must be verified by at least two officers of the organization.

      2.  The report must be on a form prescribed by the commissioner and must include:

      (a) A financial statement of the organization, including its balance sheet and receipts and disbursements for the preceding calendar year.

      (b) Any material changes in the information given in the previous report.

      (c) The number of members enrolled in that year, the number of members whose coverage has been terminated in that year and the total number of members at the end of the year.

      (d) The costs of all goods, services and dental care provided that year.

      (e) Any other information relating to the plan for dental care requested by the commissioner.

      3.  Every organization for dental care shall file with the commissioner [on or before June 1 of each year a financial statement of the organization certified by an independent public accountant.] annually an audited financial statement prepared by an independent certified public accountant. The statement must cover the most recent fiscal year of the organization and must be filed with the commissioner within 90 days after the end of that fiscal year.

      4.  If an organization fails to file timely the report or financial statement required by this section, it shall pay an administrative penalty of $100 per day until the report or statement is filed, except that the total penalty must not exceed $3,000. The attorney general shall recover the penalty in the name of the State of Nevada.

      5.  The commissioner may grant a reasonable extension of time for filing the report or financial statement required by this section, if the request for an extension is submitted in writing and shows good cause.

      6.  The organization shall pay the department of taxation the annual tax, any penalty for nonpayment or delinquent payment of the tax imposed in chapter 680B of NRS, and a filing fee of $25 to the commissioner, at the time the annual report is filed.

      Sec. 53.  NRS 695E.170 is hereby amended to read as follows:

      695E.170  1.  A risk retention group and its agents and representatives are subject to the provisions of NRS 686A.010 to 686A.310, inclusive. Any injunction obtained pursuant to those sections must be obtained from a court of competent jurisdiction.

      2.  All premiums paid for coverages within this state to a risk retention group are subject to the provisions of chapter 680B of NRS . [and NRS 685A.180.] Each risk retention group shall report all premiums paid to it [for risks insured within the state, and to the extent that agents or brokers are not utilized or do not pay the taxes, each risk retention group] and shall pay the taxes on premiums and any related fines or penalties for risks [insured within] resident, located or to be performed in the state. [To the extent that agents or brokers are utilized, they shall report and pay the taxes on the premiums for risks that they have placed with or on behalf of a risk retention group not chartered in this state.]

 


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1634 (Chapter 496, AB 475)ê

 

agents or brokers are utilized, they shall report and pay the taxes on the premiums for risks that they have placed with or on behalf of a risk retention group not chartered in this state.]

      Sec. 54.  NRS 695F.320 is hereby amended to read as follows:

      695F.320  1.  Each prepaid limited health service organization shall file with the commissioner annually, on or before March 1, a report [concerning] showing its financial condition on the last day of the preceding calendar year. The report must be verified by at least two principal officers of the organization.

      2.  The report must be on a form prescribed by the commissioner and include:

      (a) A financial statement of the organization, including its balance sheet [, income statement and statement of changes in its financial position for the preceding year and certified by an independent public accountant or a consolidated audited financial statement of its parent company certified by an independent public accountant, and the consolidating financial statements of the prepaid limited health service organization;] and receipts and disbursements for the preceding calendar year;

      (b) The number of subscribers at the beginning and the end of the year and the number of enrollments terminated during the year; and

      (c) Such other information as the commissioner may prescribe.

      3.  Each prepaid limited health service organization shall file with the commissioner annually an audited financial statement prepared by an independent certified public accountant. The statement must cover the most recent fiscal year of the organization and must be filed with the commissioner within 90 days after the end of that fiscal year.

      4.  The commissioner may require more frequent reports containing such information as is necessary to enable him to carry out his duties pursuant to this chapter.

      [4.] 5.  The commissioner may:

      (a) Assess a fine of not more than $100 per day for each day [a] the report or financial statement required pursuant to this section is not filed after the report or financial statement is due, but the fine must not exceed $3,000; and

      (b) Suspend the organization’s certificate of authority until the organization files the report.

      Sec. 55.  Chapter 696B of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The commissioner, as receiver, rehabilitator or liquidator, may appoint one or more special deputies who have all the powers and responsibilities of a receiver, rehabilitator or liquidator, and the commissioner may employ such counsels, clerks and assistants as he considers necessary. The compensation of such special deputies, counsels, clerks and assistants and all expenses of taking possession of the insurer and of conducting the proceedings must be fixed by the commissioner with the approval of the court, and paid out of the money or other assets of the insurer. The persons appointed pursuant to this section serve at the pleasure of the commissioner. The commissioner, as receiver, rehabilitator or liquidator, may, with the approval of the court, appoint an advisory committee of policyholders, claimants or other creditors, including guaranty associations, if he considers such a committee necessary.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1635 (Chapter 496, AB 475)ê

 

The committee serves at the pleasure of the commissioner and serves without compensation other than reimbursement for reasonable travel and other expenses. No other committee of any nature may be appointed by the commissioner or the court in proceedings for receivership, rehabilitation or liquidation conducted pursuant to this chapter.

      2.  If the property of the insurer does not contain sufficient cash or liquid assets to defray the costs incurred, the commissioner may advance the costs so incurred out of any appropriation for the maintenance of the division. Any amounts so advanced for expenses of administration must be repaid to the commissioner out of the first available money of the insurer.

      Sec. 56.  NRS 696B.190 is hereby amended to read as follows:

      696B.190  1.  The district court shall have original jurisdiction of delinquency proceedings under NRS 696B.010 to 696B.560, inclusive, and section 55 of this act, and any court with jurisdiction is authorized to make all necessary or proper orders to carry out the purposes of [such] those sections.

      2.  The venue of delinquency proceedings against a domestic insurer [shall] must be in the county in this state of the insurer’s principal place of business or, if the principal place of business is located in another state, in any county in this state selected by the commissioner for the purpose. The venue of proceedings against foreign insurers [shall] must be in any county in this state selected by the commissioner for the purpose.

      3.  At any time after commencement of a proceeding, the commissioner or any other party may apply to the court for an order changing the venue of, and removing, the proceeding to any other county of this state in which the proceeding may most conveniently, economically and efficiently be conducted.

      4.  No court [shall have] has jurisdiction to entertain, hear or determine any petition or complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation or receivership of any insurer, or for an injunction or restraining order or other relief preliminary, incidental or relating to such proceedings, other than in accordance with NRS 696B.010 to 696B.560, inclusive.

      5.  An appeal [shall lie] to the supreme court may be taken from any court granting or refusing rehabilitation, liquidation, conservation or receivership, and from every order in delinquency proceedings having the character of a final order as to the particular portion of the proceedings embraced therein.

      Sec. 57.  NRS 628A.010 is hereby amended to read as follows:

      628A.010  As used in this chapter, unless the context otherwise requires:

      1.  “Client” means a person who receives advice from a financial planner.

      2.  “Compensation” means a fee for services provided by a financial planner to a client or a commission or other remuneration derived by a financial planner from a person other than the client as the result of the purchase of a good or service by the client.

      3.  “Financial planner” means a person who for compensation advises others upon the investment of money or upon provision for income to be needed in the future, or who holds himself out as qualified to perform either of these functions, but does not include:

      (a) An attorney and counselor at law admitted by the supreme court of this state;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1636 (Chapter 496, AB 475)ê

 

      (b) A certified public accountant or a public accountant licensed pursuant to NRS 628.190 to 628.310, inclusive, or 628.350;

      (c) An investment adviser licensed pursuant to NRS 90.330 or exempt under NRS 90.340; or

      (d) An insurance agent or broker licensed pursuant to NRS 683A.090 to 683A.350, inclusive, or an insurance consultant licensed pursuant to sections 2 to 11, inclusive, of this act,

whose advice upon investment or provision of future income is incidental to the practice of his profession or business.

      Sec. 57.5.  Section 34 of Assembly Bill No. 299 of this session is hereby amended to read as follows:

       Sec. 34.  NRS 695B.320 is hereby amended to read as follows:

       695B.320  Nonprofit hospital and medical or dental service corporations are subject to the provisions of this chapter, and to the provisions of chapters 679A and 679B of NRS, NRS 686A.010 to 686A.315, inclusive, and chapters 692C and 696B of NRS, and sections 2 to 33, inclusive, of this act, to the extent applicable and not in conflict with the express provisions of this chapter.

      Sec. 58.  NRS 458.216 and 458.218 are hereby repealed.

      Sec. 59.  1.  Notwithstanding the provisions of NRS 690B.130, as amended by section 47 of this act, an insurer who is otherwise subject to the provisions of NRS 690B.130 and who is licensed in this state before October 1, 1995, has until October 1, 1998, to comply fully with the increased monetary requirements established in section 47 of this act concerning the deposit of securities, the posting of a surety bond, and the maintenance of unimpaired paid-in capital stock or unimpaired basic surplus.

      2.  Subject to any exceptions provided in NRS 690B.130, the increased monetary requirements that apply to such an insurer are as follows:

      (a) From October 1, 1995, through September 30, 1996, $20,000.

      (b) From October 1, 1996, through September 30, 1997, $30,000.

      (c) From October 1, 1997, through September 30, 1998, $40,000.

      Sec. 60.  1.  This section and sections 12 to 59, inclusive, of this act become effective on October 1, 1995.

      2.  Sections 1 to 11, inclusive, of this act become effective on January 1, 1996.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1637ê

 

CHAPTER 497, AB 61

Assembly Bill No. 61–Committee on Labor and Management

CHAPTER 497

AN ACT relating to labor; revising the administrative penalties that may be imposed for violations of the provisions governing industrial injuries and occupational diseases; expanding the authority of the division of industrial relations of the department of business and industry to impose an administrative fine for a violation of certain provisions governing the control of asbestos; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 616 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

      Sec. 2.  “Benefit penalty” means an additional amount of money that is payable to a claimant if the administrator has determined that a violation of subsection 1 of NRS 616.647 has occurred.

      Sec. 3.  1.  Upon receipt of a complaint for a violation of subsection 1 of NRS 616.647, or if the administrator has reason to believe that such a violation has occurred, the administrator shall cause to be conducted an investigation of the alleged violation. Except as otherwise provided in subsection 2, the administrator shall, within 30 days after initiating the investigation:

      (a) Render a determination. The determination must include his findings of fact and, if he determines that a violation has occurred, one or more of the following:

             (1) The amount of any fine required to be paid pursuant to NRS 616.647.

             (2) The amount of any benefit penalty required to be paid to a claimant pursuant to NRS 616.647.

             (3) A plan of corrective action to be taken by the insurer, organization for managed care, health care provider, third-party administrator or employer, including the manner and time within which the violation must be corrected.

             (4) A requirement that notice of the violation be given to the appropriate agency that regulates the activities of the violator.

      (b) Notify the commissioner if he determines that a violation was committed by a self-insured employer, association of self-insured public or private employers or third-party administrator.

      2.  Upon receipt of a complaint for any violation of paragraph (a) or (c) of subsection 1 of NRS 616.647, or if the administrator has reason to believe that such a violation has occurred, the administrator shall complete the investigation required by subsection 1 within 120 days and, within 30 days after the completion of the investigation, render a determination and notify the commissioner if he determines that a violation was committed by a self-insured employer, association of self-insured public or private employers or third-party administrator.

      3.  If, based upon the administrator’s findings of fact, he determines that a violation has not occurred, he shall issue a determination to that effect.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1638 (Chapter 497, AB 61)ê

 

      Sec. 4.  NRS 616.015 is hereby amended to read as follows:

      616.015  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 616.020 to 616.123, inclusive, and section 2 of this act, have the meanings ascribed to them in those sections.

      Sec. 5.  NRS 616.027 is hereby amended to read as follows:

      616.027  1.  Except as otherwise provided in subsection 3, “average monthly wage” means the lesser of:

      (a) The monthly wage actually received or deemed to have been received by the employee on the date of the accident or injury to the employee, excluding remuneration from employment:

             (1) Not subject to the Nevada Industrial Insurance Act or the Nevada Occupational Diseases Act; and

             (2) For which coverage is elective, but has not been elected; or

      (b) One hundred fifty percent of the state average weekly wage as most recently computed by the employment security division of the department of employment, training and rehabilitation during the fiscal year preceding the date of the injury or accident, multiplied by 4.33.

      2.  For the purposes of subsection 1:

      (a) The date of the accident or injury to the employee must be determined pursuant to NRS 616.625.

      (b) “Wage”:

             (1) Does not include any amount paid by an employer for health insurance that covers an employee or his dependents, or both.

             (2) Is increased by the amount of tips reported by an employee to his employer pursuant to 26 U.S.C. § 6053(a), except:

             (I) Tips in a form other than cash; and

             (II) Tips in cash which total less than $20 per month.

      3.  For the purpose of increasing compensation for permanent total disability pursuant to NRS 616.6262 or increasing death benefits pursuant to NRS 616.6282, “average monthly wage” has the meaning shown in the following schedule:

 

                                                                                                      Average Monthly Wage

             Effective Date                                                                     for Prior Fiscal Year

 

July 1, 1973......................................................................            $688.60

July 1, 1974......................................................................              727.48

July 1, 1975........................................................ [761.47]        1,142.21

July 1, 1976........................................................ [807.33]        1,211.00

July 1, 1977........................................................ [858.29]        1,287.44

July 1, 1978........................................................ [918.05]        1,377.08

July 1, 1979........................................................ [992.31]        1,488.46

July 1, 1980..................................................... [1,061.24]        1,591.86

      Sec. 6.  NRS 616.182 is hereby amended to read as follows:

      616.182  1.  Except as otherwise provided in this section, the division shall regulate insurers under this chapter and chapter 617 of NRS and investigate insurers regarding compliance with statutes and the division’s regulations.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1639 (Chapter 497, AB 61)ê

 

      2.  The commissioner is responsible for reviewing rates, investigating the solvency of insurers and certifying self-insured employers, associations of self-insured public or private employers and third-party administrators pursuant to NRS 616.291 to 616.298, inclusive, 616.338, 616.3791 to 616.37997, inclusive, and chapter 683A of NRS.

      3.  The department of administration is responsible for contested claims relating to workers’ compensation pursuant to NRS 616.5395 to 616.544, inclusive. The system is responsible for administrative appeals pursuant to NRS 616.392.

      4.  The Nevada attorney for injured workers is responsible for legal representation of claimants pursuant to NRS 616.253 to 616.2539, inclusive, [.] , and 616.647.

      5.  The division is responsible for the investigation of complaints. If a complaint is filed with the division , [by an employee of a self-insured employer or of an employer who is a member of an association of self-insured public or private employers, or by a third-party administrator or provider of medical care regarding compliance with statutes or the division’s regulations,] the administrator shall cause to be conducted an investigation which includes a review of relevant records and interviews of affected persons.

      [6.  If an investigation conducted pursuant to subsection 5 indicates that a self-insured employer or an association of self-insured public or private employers has failed to comply with a statute or regulation, the administrator may order that an evidentiary hearing take place. Upon a finding that intentional or repeated noncompliance has occurred, the administrator shall impose an administrative fine of not more than $250 for each initial noncompliance which was not intentional, or a fine of not more than $1,000 for each intentional or repeated noncompliance. Two or more findings of material noncompliance within a 12-month period constitute grounds for the suspension of the self-insured employer’s or association’s certification by the commissioner.] If the administrator determines that a violation may have occurred. the administrator shall proceed in accordance with the provisions of NRS 616.647 and section 3 of this act.

      Sec. 7.  NRS 616.2207 is hereby amended to read as follows:

      616.2207  1.  If a person wishes to contest a decision of the administrator to impose an administrative fine [imposed by the administrator] or benefit penalty pursuant to this chapter or chapter 617 of NRS, he must file a notice of appeal with the division within [30] 10 days after [the fine is imposed,] receipt of the administrator’s decision, showing why the proposed fine or benefit penalty should not be imposed . [against him.]

      2.  If a notice of appeal is filed as required by subsection 1, [the administrator shall issue a complaint setting forth the factual basis for his determination that a violation has occurred. The person against whom a complaint is issued shall file an answer to the complaint within 30 days after the complaint is issued. If the person desires a hearing on the matter, by a request for hearing. If an answer and a request for hearing are filed as required by this subsection,] the administrator shall [set] , in accordance with the provisions of NRS 233B.121, issue a notice of hearing that must include a date for a hearing on the matter, which must be no sooner than 30 days after the [answer and request for hearing are] notice of appeal is filed.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1640 (Chapter 497, AB 61)ê

 

[answer and request for hearing are] notice of appeal is filed. The administrator may grant a continuance of the hearing upon a showing of good cause.

      3.  If a notice of appeal [or an answer] is not filed as required by this section, the imposition of the fine or benefit penalty shall be deemed a final order and is not subject to review by any court or agency.

      4.  Except as otherwise provided in NRS 616.425, a hearing held pursuant to this section must be conducted by the administrator or a person designated by him. A record of the hearing must be kept but it need not be transcribed unless it is requested by the person against whom the order or notice of violation has been issued and that person pays the cost of transcription. [A] The administrator shall render a written decision [affirming or reversing the imposition of the fine must be rendered.] on the appeal.

      5.  An administrative fine imposed pursuant to this chapter or chapter 617 of NRS must be paid to the division. If the violation for which the fine is levied was committed by a person while acting within the course and scope of his agency or employment, the fine must be paid by his principal or employer. The fine may be recovered in a civil action brought in the name of the division in a court of competent jurisdiction in the county in which the violation occurred or in which the person against whom the fine is levied has his principal place of business.

      6.  A benefit penalty imposed pursuant to NRS 616.647 must be paid to the claimant on whose behalf it is imposed. If such payment is not made within the period required by NRS 616.647, the benefit penalty may be recovered in a civil action brought by the administrator on behalf of the claimant in a court of competent jurisdiction in the county in which the claimant resides, in which the violation occurred or in which the person who is required to pay the benefit penalty has his principal place of business.

      7.  Any party aggrieved by a decision of the administrator rendered pursuant to this section may appeal the decision directly to the district court.

      Sec. 8.  NRS 616.221 is hereby amended to read as follows:

      616.221  Except as otherwise provided in NRS 616.2207, 616.377 and 617.275, any party who is aggrieved by a decision of the administrator may appeal that decision directly to the district court.

      Sec. 9.  NRS 616.293 is hereby amended to read as follows:

      616.293  1.  Upon determining that an employer is qualified as a self-insured employer, the commissioner shall issue a certificate to that effect to the employer and the administrator. No certificate may be issued to any employer who, within the 2 years immediately preceding his application, has had his certification as a self-insured employer involuntarily withdrawn by the commissioner.

      2.  Except as otherwise provided in NRS 616.2935 and 616.294, certificates issued pursuant to this section remain in effect until withdrawn by the commissioner or canceled by the employer. Coverage for employers qualifying under NRS 616.272 becomes effective on the date of certification or the date specified in the certificate.

      Sec. 10.  NRS 616.296 is hereby amended to read as follows:

      616.296  1.  [Before] Except as otherwise provided in NRS 616.647, before any action may be taken pursuant to subsection 2, the commissioner of insurance shall arrange an informal meeting with the self-insured employer to discuss and seek correction of any conduct which would be grounds for withdrawal of the self-insured employer’s certificate of self-insurance.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1641 (Chapter 497, AB 61)ê

 

discuss and seek correction of any conduct which would be grounds for withdrawal of the self-insured employer’s certificate of self-insurance.

      2.  [Before] Except as otherwise provided in NRS 616.647, before the withdrawal of the certification of any self-insured employer, the commissioner of insurance shall give written notice to that employer by certified mail that his certification will be withdrawn 10 days after receipt of the notice unless, within that time, the employer corrects the conduct set forth in the notice as the reason for the withdrawal or submits a written request for a hearing to the commissioner of insurance. Before requesting a hearing the employer must make the deposit required by NRS 616.291.

      3.  If the employer requests a hearing:

      (a) The commissioner of insurance shall set a date for a hearing within 20 days after receiving the appeal request, and shall give the employer at least 10 business days’ notice of the time and place of the hearing.

      (b) A record of the hearing must be kept but it need not be transcribed unless requested by the employer with the cost of transcription to be charged to the employer.

      (c) Within 5 business days after the hearing, the commissioner of insurance shall either affirm or disaffirm the withdrawal and give the employer written notice thereof by certified mail. If withdrawal of certification is affirmed, the withdrawal becomes effective 10 business days after the employer receives notice of the affirmance unless within that period of time the employer corrects the conduct which was ground for the withdrawal or petitions for judicial review of the affirmance.

      4.  If the withdrawal of certification is affirmed following judicial review, the withdrawal becomes effective 5 days after entry of the final decree of affirmance.

      Sec. 11.  NRS 616.37917 is hereby amended to read as follows:

      616.37917  1.  The commissioner shall grant or deny an application for certification as an association of self-insured public or private employers with 60 days after receiving the application. If the commissioner is unable to act upon the application within this 60-day period, he may extend the period for granting or denying the application, but for not longer than an additional 90 days.

      2.  Upon determining that an association is qualified as an association of self-insured public or private employers, the commissioner shall issue a certificate to that effect to the association and the administrator. No certificate may be issued to an association that, within the 2 years immediately preceding its application, has had its certification as an association of self-insured public or private employers involuntarily withdrawn by the commissioner.

      3.  A certificate issued under this section remains in effect until withdrawn by the commissioner or canceled at the request of the association. Coverage for an association granted a certificate becomes effective on the date of certification or the date specified in the certificate.

      4.  The commissioner shall not grant a request to cancel a certificate unless the association has insured or reinsured all incurred obligations with an insurer authorized to do business in this state pursuant to an agreement filed with and approved by the commissioner.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1642 (Chapter 497, AB 61)ê

 

with and approved by the commissioner. The agreement must include coverage for actual claims and claims filed with the association but not reported, and the expenses associated with those claims.

      Sec. 12.  NRS 616.3798 is hereby amended to read as follows:

      616.3798  1.  [Before] Except as otherwise provided in NRS 616.647, before any action may be taken pursuant to subsection 2, the commissioner shall arrange an informal meeting with an association of self-insured public or private employers to discuss and seek correction of any conduct which would be grounds for withdrawal of the certificate of the association.

      2.  [Before] Except as otherwise provided in NRS 616.647, before the withdrawal of the certificate of any association of self-insured public or private employers, the commissioner shall give written notice to the association by certified mail that its certificate will be withdrawn 10 days after receipt of the notice unless, within that time, the association corrects the conduct set forth in the notice as the reason for the withdrawal or submits a written request for a hearing to the commissioner.

      3.  If the association requests a hearing:

      (a) The commissioner shall set a date for a hearing within 20 days after receiving the request and give the association at least 10 business days’ notice of the time and place of the hearing.

      (b) A record of the hearing must be kept, but it need not be transcribed unless requested by the association with the cost of transcription to be charged to the association.

      (c) Within 5 business days after the hearing, the commissioner shall either affirm or disaffirm the withdrawal and give the association written notice thereof by certified mail. If withdrawal of certification is affirmed, the withdrawal becomes effective 10 business days after the association receives notice of the affirmance unless within that period the association corrects the conduct which was grounds for the withdrawal or petitions for judicial review of the affirmance.

      4.  If the withdrawal of certification is affirmed following judicial review, the withdrawal becomes effective 5 days after entry of the final decree of affirmance.

      Sec. 13.  NRS 616.647 is hereby amended to read as follows:

      616.647  1.  Except as otherwise provided in [subsection 2,] this section, if the administrator determines that an insurer, organization for managed care, health care provider, third-party administrator or employer has:

      (a) Through fraud, coercion, duress or undue influence:

             (1) Induced a claimant [for compensation] to fail to report an accidental injury or occupational disease;

      [(b)] (2) Persuaded a claimant to settle for an amount which is less than reasonable;

      [(c)] (3) Persuaded a claimant to settle for an amount which is less than reasonable while a hearing or an appeal is pending; or

      [(d)] (4) Persuaded a claimant to accept less than the compensation found to be due him by a hearing officer , [or] appeals officer [;

      (e)] , court of competent jurisdiction, written settlement agreement, written stipulation or the division when carrying out its duties pursuant to this chapter and chapter 617 of NRS;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1643 (Chapter 497, AB 61)ê

 

      (b) Refused to pay or unreasonably delayed payment to a claimant of compensation found to be due him by a hearing officer , [or] appeals officer [;

      (f)] , court of competent jurisdiction, written settlement agreement, written stipulation or the division when carrying out its duties pursuant to this chapter or chapter 617 of NRS, if the refusal or delay occurs:

             (1) Later than 10 days after the date of the settlement agreement or stipulation;

             (2) Later than 30 days after the date of the decision of a court, hearing officer, appeals officer or division, unless a stay has been granted; or

             (3) Later than 10 days after a stay of the decision of a court, hearing officer, appeals officer or division has been lifted;

      (c) Refused to process a claim for compensation pursuant to this chapter or chapter 617 of NRS;

      (d) Made it necessary for a claimant to [resort to proceedings against the employer or insurer] initiate proceedings pursuant to this chapter or chapter 617 of NRS for compensation found to be due him by a hearing officer , [or] appeals officer [;

      (g)] , court of competent jurisdiction, written settlement agreement, written stipulation or the division when carrying out its duties pursuant to this chapter or chapter 617 of NRS;

      (e) Failed to comply with the division’s regulations covering the payment of an assessment relating to the funding of costs of administration of this chapter and chapter 617 of NRS; or

      [(h) Intentionally or repeatedly]

      (f) Intentionally failed to comply with any provision of, or regulation adopted pursuant to, this chapter or chapter 617 of NRS,

the administrator shall impose an administrative fine of [not more than $250] $1,000 for each initial violation , [which was not intentional,] or a fine of [not more than $1,000 for each intentional or repeated] $10,000 for a second or subsequent violation.

      2.  Except as otherwise provided in this chapter or chapter 617 of NRS, if the administrator determines that an insurer, organization for managed care, health care provider, third-party administrator or employer has failed to comply with any provision of this chapter or chapter 617 of NRS, or any regulation adopted pursuant thereto, the administrator may take any of the following actions:

      (a) Issue a notice of correction for:

             (1) A minor violation, as defined by regulations adopted by the division; or

             (2) A violation involving the payment of compensation in an amount which is greater than that required by any provision of this chapter or chapter 617 of NRS, or any regulation adopted pursuant thereto.

The notice of correction must set forth with particularity the violation committed and the manner in which the violation may be corrected. Nothing in this section authorizes the administrator to modify or negate in any manner a determination or any portion of a determination made by a hearing officer, appeals officer or court of competent jurisdiction or a provision contained in a written settlement agreement or written stipulation.

      (b) Impose an administrative fine for:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1644 (Chapter 497, AB 61)ê

 

             (1) A second or subsequent violation for which a notice of correction has been issued pursuant to paragraph (a); or

             (2) Any other violation of this chapter or chapter 617 of NRS, or any regulation adopted pursuant thereto, for which a notice of correction may not be issued pursuant to paragraph (a).

The fine imposed may not be greater than $250 for an initial violation, or more than $1,000 for any second or subsequent violation.

      (c) Order a plan of corrective action to be submitted to the administrator within 30 days after the date of the order.

      3.  If the administrator determines that a violation of any of the provisions of paragraphs (a) to (d), inclusive, of subsection 1 has occurred, the administrator shall order the insurer, organization for managed care, health care provider, third-party administrator or employer to pay to the claimant a benefit penalty in an amount equal to 50 percent of the compensation due or $10,000, whichever is less. In no event may a benefit penalty be less than $500. The benefit penalty is for the benefit of the claimant and must be paid directly to him within 10 days after the date of the administrator’s determination. Proof of the payment of the benefit penalty must be submitted to the administrator within 10 days after the date of his determination unless an appeal is filed pursuant to NRS 616.2207. Any compensation to which the claimant may otherwise be entitled pursuant to this chapter or chapter 617 of NRS must not be reduced by the amount of any benefit penalty received pursuant to this subsection.

      4.  In addition to any fine or benefit penalty imposed pursuant to [subsection 1,] this section, the administrator may assess against an insurer who violates any regulation concerning the reporting of claims expenditures used to calculate an assessment an administrative penalty of up to twice the amount of any underpaid assessment.

      [3.]5.  If the administrator determines that a person has violated any of the provisions of NRS 616.630, 616.635, 616.640 or 616.675 to 616.700, inclusive, the administrator shall impose an administrative fine of not more than $10,000.

      [4.]6.  Two or more fines of $1,000 or more imposed in 1 year for acts enumerated in subsection 1 must be considered by the commissioner as evidence for the withdrawal of [a certificate of self-insurance to act as a self-insured employer or an association of self-insured public or private employers.

      5.]:

      (a) A certificate to act as a self-insured employer.

      (b) A certificate to act as an association of self-insured public or private employers.

      (c) A certificate of registration as a third-party administrator.

      7.  The commissioner may , without complying with the provisions of NRS 616.296 or 616.3798, withdraw the certification of a self-insured employer , [or an] association of self-insured public or private employers or third-party administrator if, after a hearing, it is shown that the self-insured employer , [or] association of self-insured public or private employers or third-party administrator violated any provision of subsection 1.

      Sec. 14.  NRS 618.835 is hereby amended to read as follows:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1645 (Chapter 497, AB 61)ê

 

      618.835  1.  If the division finds that a person, other than a worker, [who is licensed pursuant to NRS 618.795] has violated any of the provisions of NRS 618.780, 618.790, 618.820 or 618.825, or the standards or regulations adopted pursuant to NRS 618.750 to 618.850, inclusive, it may:

      (a) Upon the first violation, impose upon him an administrative fine of not more than $15,000.

      (b) Upon the second and subsequent violations:

             (1) Impose upon [the licensee] him an administrative fine of not more than $25,000; and

             (2) [Revoke] If he is licensed pursuant to NRS 618.795, revoke his license [; and

             (3) Require] and require him to fulfill certain training or educational requirements to have his license reinstated.

Any penalty imposed pursuant to this section does not relieve the [licensee] person from criminal prosecution for engaging in the control of asbestos without a license, nor from the imposition of a penalty pursuant to NRS 445.601.

      2.  If the license of a contractor for projects for the control of asbestos is revoked pursuant to this section and the owner of a building or structure upon which the contractor is engaged in a project employs another licensed contractor to complete the project, the original contractor may not bring an action against the owner of the building or structure for breach of contract or damages based on the employment of another contractor.

      Sec. 15.  1.  This section and sections 1 to 5, inclusive, 7 to 10, inclusive, and 14 of this act become effective on July 1, 1995.

      2.  Sections 6, 11, 12 and 13 of this act become effective at 12:01 a.m. on July 1, 1995.

 

________

 

 

CHAPTER 498, AB 582

Assembly Bill No. 582–Committee on Commerce

CHAPTER 498

AN ACT relating to the right of publicity; allowing certain governmental agencies to use, without obtaining consent, the name, likeness or other personal characteristic of a person for the purpose of promoting tourism or commemorating a historical figure or event in this state; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 597.770 is hereby amended to read as follows:

      597.770  As used in NRS 597.770 to 597.810, inclusive:

      1.  “Commercial use” includes the use of the name, voice, signature, photograph or likeness of a person on or in any product, merchandise or goods or for the purposes of advertising, selling or soliciting the purchase of any product, merchandise, goods or service.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1646 (Chapter 498, AB 582)ê

 

      2.  “Governmental agency” means the commission on tourism and a governmental entity in a county whose population is 100,000 or more that has as a statutory purpose, power or duty the promotion of travel or tourism in this state and that employs photographers full time or by contract to take pictures to promote travel and tourism, portray historical events or commemorate persons or physical sites that are significant in the history of the state.

      3.  “Person” means a natural person.

      Sec. 2.  NRS 597.790 is hereby amended to read as follows:

      597.790  1.  There is a right of publicity in the name, voice, signature, photograph or likeness of every person. The right endures for a term consisting of the life of the person and 50 years after his death, regardless of whether the person commercially exploits the right during his lifetime.

      2.  Any commercial use by another of the name, voice, signature, photograph or likeness of a person requires the written consent of that person or his successor in interest unless:

      (a) The use is contained in material which is commercially sponsored but the use is not directly connected with the commercial sponsorship;

      (b) The use is an attempt to portray, imitate, simulate or impersonate a person in a live performance;

      (c) The use is in connection with a news, public affairs or sports broadcast or publication;

      (d) The use is an attempt to portray, imitate, simulate or impersonate a person in a play, book, magazine article, newspaper article, musical composition, film, or a radio, television or other audio or visual program, except where the use is directly connected with commercial sponsorship;

      (e) The use is in connection with an original work of art except that multiple editions of such a work of art require consent; [or]

      (f) The use is in connection with an advertisement or commercial announcement for a use permitted by this subsection [.] ; or

      (g) The use is in connection with the efforts of a governmental agency to promote travel and tourism in this state, portray historical events or commemorate persons or physical sites that are significant in the history of this state, except where the use is directly connected with commercial sponsorship.

For the purposes of this subsection, the issue of whether a use is directly connected with commercial sponsorship is a question of fact, to be determined by the trier of fact in an action brought pursuant to NRS 597.810.

      3.  If a governmental agency intends to have photographs taken at a public event for use pursuant to paragraph (g) of subsection 2, the governmental agency shall, if practicable, announce or otherwise inform the public, or request the sponsor of the event to announce or otherwise inform the public, that photographs may be taken that can be used in materials for the promotion of travel and tourism in this state without permission from the person photographed.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1647ê

 

CHAPTER 499, AB 566

Assembly Bill No. 566–Assemblymen Anderson, Schneider, Goldwater, Buckley, Spitler, Bache, Monaghan, Manendo, Ohrenschall, Tripple, Williams, Segerblom, de Braga and Neighbors

CHAPTER 499

AN ACT relating to public employees; extending the period during which the committee on benefits shall review the history of claims paid from the state’s group insurance for certain public officers and employees; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Section 3 of chapter 603, Statutes of Nevada 1993, at page 2510, is hereby amended to read as follows:

       Sec. 3.  1.  On or before September 1, [1994,] 1996, the committee on benefits shall, for the fiscal year ending June 30, 1994, and the fiscal year ending June 30, 1996, review the cumulative history of claims paid for officers and employees, other than retired employees, who participate in the state’s program of group insurance pursuant to subsection 2 of NRS 287.043.

       2.  Based on the review, the committee shall, on or before October 1, [1994,] 1996, determine the actuarially appropriate rates to be paid for those officers and employees as a condition of their participation in the program. Upon making the determination, the committee shall compare the rates so determined with the rates established by the committee for state employees.

       3.  On or before October 15, [1994,] 1996, the committee shall publicly announce the difference, if any, between the rates determined pursuant to subsection 2 and the rates established by the committee for state employees.

      Sec. 2.  This act becomes effective upon passage and approval.

 

________

 

 

CHAPTER 500, AB 562

Assembly Bill No. 562–Committee on Elections and Procedures

CHAPTER 500

AN ACT relating to elections; removing the limitation on the cost of printing ballots for elections; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 293.443 is hereby amended to read as follows:

      293.443  1.  Except as otherwise provided in subsection [4,] 3, the expense of providing all ballots, forms and other supplies to be used at any election regulated by this chapter and all expenses necessarily incurred in the preparation for, or the conduct of, any such election is a charge upon the municipality, county, district or state, as the case may be.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1648 (Chapter 500, AB 562)ê

 

election regulated by this chapter and all expenses necessarily incurred in the preparation for, or the conduct of, any such election is a charge upon the municipality, county, district or state, as the case may be.

      2.  [The cost of printing ballots must not exceed the sum of $100 per thousand or fraction thereof for the first two thousand ballots printed and $50 for each additional thousand printed.

      3.] The county or city clerk may submit such printing for competitive bidding.

      [4.] 3.  If a political party or other entity requests more than 50 applications to register to vote by mail, the clerk may assess a charge, not to exceed the actual cost of printing the applications, for each application requested in excess of 50.

      Sec. 2.  Notwithstanding the provisions of subsection 1 of NRS 354.599, each local government shall pay any additional expenses related to the provisions of this act from existing revenues of that local government.

 

________

 

 

CHAPTER 501, AB 545

Assembly Bill No. 545–Committee on Commerce

 

(Requested by Nevada Rural Hospital Project)

CHAPTER 501

AN ACT relating to nursing; authorizing the issuance of citations for the unauthorized practice of nursing; authorizing the state board of nursing to place any condition, limitation or restriction on a license or certificate under certain conditions; authorizing the board to appoint advisory committees; revising the provisions governing the appointment of the members of the board; requiring the reporting of certain conduct of a licensee or holder of a certificate to the board; requiring certain records of criminal history to be disseminated to the board; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 632 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive, of this act.

      Sec. 2.  The legislature hereby declares that the practice of nursing is a learned profession affecting the safety, health and welfare of the public and is subject to regulation to protect the public from the practice of nursing by unqualified and unlicensed persons and from unprofessional conduct by persons licensed to practice nursing. The legislature further declares that the purpose of the state board of nursing is to regulate the practice of nursing and to enforce the provisions of this chapter.

      Sec. 3.  In addition to any other penalty:

      1.  The board may issue a citation to a person who violates the provisions of NRS 632.130.

      2.  A citation issued pursuant to subsection 1 must be in writing and describe with particularity the nature of the violation. The citation also must inform the person of the provisions of subsection 5.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1649 (Chapter 501, AB 545)ê

 

inform the person of the provisions of subsection 5. A separate citation must be issued for each violation.

      3.  If appropriate, the citation must contain an order of abatement of the violation.

      4.  The board shall assess an administrative fine of:

      (a) For the first violation, $500.

      (b) For the second violation, $1,000.

      (c) For the third or subsequent violation, $1,500.

      5.  To appeal the finding of a violation of NRS 632.130, the person must request a hearing by written notice of appeal to the board within 30 days after the date of issuance of the citation.

      Sec. 4.  1.  In addition to the advisory committee on nursing assistants created by NRS 632.072, the board may appoint such other advisory committees as it deems appropriate.

      2.  The members of any advisory committee appointed pursuant to subsection 1 are not entitled to be paid a salary or to receive per diem allowances for conducting the business of the advisory committee, but the board may authorize reimbursement for the actual expenses incurred by a member for traveling to and from a meeting of the advisory committee.

      Sec. 5.  1.  The board may place any condition, limitation or restriction on any license or certificate issued pursuant to this chapter if the board determines that such action is necessary to protect the public health, safety or welfare.

      2.  The board shall not report any condition, limitation or restriction placed on a license or certificate issued pursuant to this section to the National Council of State Boards of Nursing Disciplinary Data Bank or any other repository which records disciplinary action taken against licensees or holders of certificates, unless the licensee or holder of the certificate fails to comply with the condition, limitation or restriction placed on the license or certificate. The board may, upon request, report any such information to an agency of another state which regulates the practice of nursing.

      3.  The board may modify any condition, limitation or restriction placed on a license or certificate issued pursuant to this section if the board determines it is necessary to protect the public health, safety or welfare.

      4.  Any condition, limitation or restriction placed on a license or certificate issued pursuant to this section shall not be deemed to be disciplinary action taken pursuant to NRS 632.325.

      Sec. 6.  An applicant for a license or certificate shall submit to the board a complete set of his fingerprints and written permission authorizing the board to forward those fingerprints to the central repository for Nevada records of criminal history for submission to the Federal Bureau of Investigation for its report.

      Sec. 7.  NRS 632.030 is hereby amended to read as follows:

      632.030  1.  The governor shall appoint:

      (a) Four registered nurses who are graduates of an accredited school of nursing, are licensed as professional nurses in the State of Nevada and have been actively engaged in nursing for at least 5 years preceding the appointment.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1650 (Chapter 501, AB 545)ê

 

      (b) [Two practical nurses who are graduates] One practical nurse who is a graduate of an accredited school of practical nursing, [are] is licensed as a practical [nurses] nurse in this state and [have] has been actively engaged in nursing for at least 5 years preceding the appointment.

      (c) One nursing assistant who is certified pursuant to the provisions of this chapter.

      (d) One member who is a representative of the general public.

      2.  Each member of the board must be:

      (a) A citizen of the United States; and

      (b) A resident of the State of Nevada [.] who has resided in this state for not less than 2 years.

      3.  A representative of the general public may not:

      (a) Have a fiduciary obligation to a hospital or other health agency;

      (b) Have a material financial interest in the rendering of health services; or

      (c) Be employed in the administration of health activities or the performance of health services.

      4.  The members appointed to the board pursuant to paragraphs (a) and (b) of subsection 1 must be selected to provide the broadest representation of the various activities, responsibilities and types of service within the practice of nursing and related areas, which may include, without limitation, experience:

      (a) In administration.

      (b) In education.

      (c) As an advanced practitioner of nursing.

      (d) In an agency or clinic whose primary purpose is to provide medical assistance to persons of low and moderate incomes.

      (e) In a licensed medical facility.

      5.  Each member of the board shall serve a term of 4 years. If a vacancy occurs during a member’s term, the governor shall appoint a person qualified under this section to replace that member for the remainder of the unexpired term.

      6.  No member of the board may serve more than two consecutive terms. For the purposes of this subsection, service of 2 or more years in filling an unexpired term constitutes a term.

      Sec. 8.  NRS 632.130 is hereby amended to read as follows:

      632.130  1.  For the purposes of safeguarding life and health and maintaining high professional standards among [professional] nurses in this state, any person who for compensation practices or offers to practice [professional] nursing in this state [shall hereafter be required to] must submit evidence that he is qualified [so] to practice and [shall] must be licensed as provided in this chapter.

      2.  [It is unlawful for any person:

      (a) To practice or to offer] Any person who:

      (a) Practices or offers to practice [professional] nursing in this state or [to use] uses any title, abbreviation, sign, card or device to indicate that he is practicing [professional] nursing in this state unless [such] that person has been [duly licensed under] licensed pursuant to the provisions of this chapter [.

      (b) Who does] ; or


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1651 (Chapter 501, AB 545)ê

 

      (b) Does not hold a valid and subsisting license to practice [as a professional nurse] nursing issued pursuant to the provisions of this chapter [to practice or offer] who practices or offers to practice in this state as a registered nurse, licensed practical nurse, graduate nurse, [a] trained nurse, [a] certified nurse or under any other title or designation suggesting [professional] that he possesses qualifications and skill in the field or nursing [.] , is guilty of a misdemeanor.

      3.  The executive director may, on behalf of the board, issue an order to cease and desist to any person who is practicing nursing without a license issued pursuant to the provisions of this chapter.

      4.  The executive director shall forward to the appropriate law enforcement agency any information submitted to the board concerning a person who is practicing nursing without a license issued pursuant to the provisions of this chapter.

      Sec. 9.  NRS 632.2862 is hereby amended to read as follows:

      632.2862  1.  The following persons shall report in writing to the executive director of the board any conduct [by a nursing assistant which constitutes grounds for the denial, suspension or revocation of a certificate:

      (a) Every] of a licensee or holder of a certificate which constitutes a violation of the provisions of this chapter:

      (a) Any physician, dentist, dental hygienist, chiropractor, optometrist, podiatric physician, medical examiner, resident, intern, professional or practical nurse, nursing assistant, physician’s assistant, psychiatrist, psychologist, marriage and family therapist, alcohol or drug abuse counselor, driver of an ambulance, advanced emergency medical technician or other person providing medical services licensed or certified to practice in this state.

      (b) Any personnel of a medical facility or facility for the dependent engaged in the admission, examination, care or treatment of persons or an administrator, manager or other person in charge of a medical facility or facility for the dependent upon notification by a member of the staff of the facility.

      (c) A coroner.

      (d) [Every clergyman, unless he acquired the knowledge of the conduct from the offender during a confession.

      (e) Every] Any person who maintains or is employed by an agency to provide nursing in the home.

      [(f) Every attorney, unless he has acquired the knowledge of the conduct from a client who has been or may be accused of the conduct.

      (g)] (e) Any employee of the [welfare or aging services division of the] department of human resources.

      [(h)] (f) Any employee of a law enforcement agency or a county’s office for protective services or an adult or juvenile probation officer.

      [(i)] (g) Any person who maintains or is employed by a facility or establishment that provides care for older persons.

      [(j)] (h) Any person who maintains, is employed by or serves as a volunteer for an agency or service which advises persons regarding the abuse, neglect or exploitation of an older person and refers them to persons and agencies where their requests and needs can be met.

      [(k) Every]


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1652 (Chapter 501, AB 545)ê

 

      (i) Any social worker.

      2.  Every physician who, as a member of the staff of a medical facility or facility for the dependent, has reason to believe that a nursing assistant has engaged in conduct which constitutes grounds for the denial, suspension or revocation of a certificate shall notify the superintendent, manager or other person in charge of the facility. The superintendent, manager or other person in charge shall make a report as required in subsection 1.

      3.  A report may be filed by any other person.

      4.  Any person who in good faith reports any violation of the provisions of this chapter to the executive director of the board pursuant to this section is immune from civil liability for reporting the violation.

      Sec. 10.  NRS 632.310 is hereby amended to read as follows:

      632.310  1.  The board may, upon its own motion, and shall, upon the verified complaint in writing of any person, if the complaint alone or together with evidence, documentary or otherwise, presented in connection therewith, [makes out a prima facie case,] is sufficient to require an investigation, investigate the actions of any licensee or holder of a certificate or any person who assumes to act as a licensee or holder of a certificate within the State of Nevada.

      2.  The executive director may, upon receipt of information from a governmental agency, conduct an investigation to determine whether the information [represents a prima facie case] is sufficient to require an investigation for referral to the board for its consideration.

      Sec. 11.  NRS 632.320 is hereby amended to read as follows:

      632.320  The board may deny, revoke or suspend any license or certificate applied for or issued pursuant to this chapter, or take other disciplinary action against a licensee [,] or holder of a certificate, upon determining that he:

      1.  Is guilty of fraud or deceit in procuring or attempting to procure a license or certificate pursuant to this chapter.

      2.  Is guilty of a felony or any offense [involving] :

      (a) Involving moral turpitude [,] ; or

      (b) Related to the qualifications, functions or duties of a licensee or holder of a certificate,

in which case the record of conviction is conclusive evidence thereof.

      3.  Has been convicted of violating any of the provisions of NRS 616.630, 616.635, 616.640 or 616.675 to 616.700, inclusive.

      4.  Is unfit or incompetent by reason of gross negligence or recklessness in carrying out usual nursing functions.

      5.  [Is habitually intemperate or is addicted to the use of any controlled substance.] Uses any controlled substance, dangerous drug as defined in chapter 454 of NRS, or intoxicating liquor to an extent or in a manner which is dangerous or injurious to any other person or which impairs his ability to conduct the practice authorized by his license or certificate.

      6.  Is mentally incompetent.

      7.  Is guilty of unprofessional conduct, which includes , but is not limited to , the following:

      (a) Conviction of practicing medicine without a license in violation of chapter 630 of NRS, in which case the record of conviction is conclusive evidence thereof.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1653 (Chapter 501, AB 545)ê

 

      (b) [Procuring, or aiding, abetting, attempting, agreeing or offering to procure or assist at, a criminal abortion.

      (c)] Impersonating any applicant or acting as proxy for an applicant in any examination required pursuant to this chapter for the issuance of a license [.

      (d)] or certificate.

      (c) Impersonating another licensed practitioner [.

      (e)] or holder of a certificate.

      (d) Permitting or allowing another person to use his license or certificate [for the purposes of nursing the sick or afflicted.

      (f)] to practice as a licensed practical nurse, registered nurse or nursing assistant.

      (e) Repeated malpractice, which may be evidenced by claims of malpractice settled against him.

      (f) Physical, verbal or psychological abuse of a patient.

      (g) Conviction for the use or unlawful possession of a controlled substance or dangerous drug as defined in chapter 454 of NRS.

      8.  Has willfully or repeatedly violated the provisions of this chapter. The voluntary surrender of a license or certificate issued pursuant to this chapter is prima facie evidence that the licensee or certificate holder has committed or expects to commit a violation of this chapter.

      9.  Is guilty of aiding or abetting [anyone] any person in a violation of this chapter.

      10.  Has falsified an entry on a patient’s medical chart concerning a controlled substance.

      11.  Has falsified information which was given to a physician, pharmacist , podiatric physician or dentist to obtain a controlled substance.

      12.  Has [had] been disciplined in another state in connection with a license to practice nursing [suspended or revoked in another jurisdiction. A certified copy of the order of suspension or revocation is prima facie evidence of the suspension or revocation.] or a certificate to practice as a nursing assistant or has committed an act in another state which would constitute a violation of this chapter.

      13.  Has engaged in conduct likely to deceive, defraud or endanger a patient or the general public.

      14.  Has willfully failed to comply with a regulation, subpoena or order of the board.

For the purposes of this section, a plea or verdict of guilty or a plea of nolo contendere constitutes a conviction of an offense. The board may take disciplinary action pending the appeal of a conviction and regardless of any other order entered pursuant to NRS 176.225 dismissing an indictment or information.

      Sec. 12.  NRS 632.325 is hereby amended to read as follows:

      632.325  1.  If the board determines that a licensee or holder of a certificate has committed any of the acts set forth in NRS 632.320, it may take any one or more of the following disciplinary actions:

      (a) [Deny, suspend or revoke his license.

      (b)] Place conditions, limitations or restrictions on his license [.

      (c)] or certificate.

      (b) Impose and collect an administrative fine of not more than $5,000.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1654 (Chapter 501, AB 545)ê

 

      [(d)] (c) Require the licensee or holder of a certificate to pay all costs incurred by the board relating to the discipline of the licensee [.] or holder of a certificate.

      (d) Reprimand the licensee or holder of a certificate.

      (e) Accept the voluntary surrender of a license or certificate in lieu of imposing any other disciplinary action set forth in this subsection.

      2.  If the board determines that:

      (a) A person whose license or certificate is suspended or voluntarily surrendered, or has been placed on an inactive list pursuant to NRS 632.341, has committed, during the period his license or certificate was valid, inactive or would have been valid if not for the suspension or surrender; or

      (b) An applicant for the renewal or reinstatement of a license or certificate has committed, at any time after the most recent renewal of his license or certificate or the issuance of his original license or certificate if it has not been renewed,

any of the acts set forth in NRS 632.320, the board may take any one or more of the disciplinary actions set forth in subsection 1.

      Sec. 13.  NRS 632.330 is hereby amended to read as follows:

      632.330  [After the revocation of any license by the board as provided in this chapter, no new license may be issued to the same licensee within a period of 1 year from and after the date of revocation, nor at any time thereafter except in the sole discretion of the board.] The board may adopt regulations which prescribe the period during which a licensee or holder of a certificate may not apply for the reissuance of his license or certificate after that license or certificate is revoked.

      Sec. 14.  NRS 632.340 is hereby amended to read as follows:

      632.340  [None of the provisions of NRS 632.130 or 632.260 may be construed as prohibiting:] The provisions of NRS 632.130 do not prohibit:

      1.  Gratuitous nursing by friends or by members of the family of a patient.

      2.  The incidental care of the sick by domestic servants or persons primarily employed as housekeepers as long as they do not practice nursing within the meaning of this chapter.

      3.  Nursing assistance in the case of an emergency.

      4.  The practice of nursing by students enrolled in accredited schools of [professional or practical nursing,] nursing or by graduates of [such] those schools or courses pending the results of the first licensing examination scheduled by the board following graduation. A student or graduate may not work as a nursing assistant unless he is certified to practice as a nursing assistant pursuant to the provisions of this chapter.

      5.  The practice of nursing in this state by any legally qualified nurse or nursing assistant of another state whose engagement requires him to accompany and care for a patient temporarily residing in this state during the period of one such engagement, not to exceed 6 months [in length, provided] , if the person does not represent or hold himself out as a nurse licensed to practice in this state [.] or as a nursing assistant who holds a certificate to practice in this state.

      6.  The practice of any legally qualified nurse of another state who is employed by the United States Government or any bureau, division or agency thereof, while in the discharge of his official duties in this state.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1655 (Chapter 501, AB 545)ê

 

      7.  Nonmedical nursing for the care of the sick, with or without compensation, [when] if done by the adherents of, or in connection with, the practice of the religious tenets of any well-recognized church or religious denomination, [so long as such] if that nursing does not amount to the practice of practical or professional nursing as defined in NRS 632.017 and 632.018, respectively.

      8.  A personal assistant from performing services for a person with a physical disability pursuant to section 1 of [this act.] Assembly Bill No. 645 of this session.

      Sec. 15.  NRS 632.3425 is hereby amended to read as follows:

      632.3425  A suspended license or certificate is subject to expiration and must be renewed as provided in NRS 632.342. Renewal does not entitle the licensee or nursing assistant to engage in activity which requires licensure or certification until the completion of the suspension.

      Sec. 16.  NRS 632.355 is hereby amended to read as follows:

      632.355  The board may delegate its authority to conduct hearings pursuant to NRS 632.350 concerning the discipline of a licensee or holder of a certificate to a hearing officer. The hearing officer has the powers of the board in connection with the hearings, and shall report [back] to the board with findings of fact and conclusions of law within 30 days after the final hearing on the matter. The board may take action based upon the report of the hearing officer, refer the matter [back] to the hearing officer for further hearings [,] or conduct its own hearings on the matter.

      Sec. 17.  NRS 632.360 is hereby amended to read as follows:

      632.360  1.  The board or any [member thereof] person designated by the board may certify to all official acts and issue subpoenas for attendance of witnesses and the production of books and papers [.] relating to any investigation or hearing conducted by the board.

      2.  In any investigation or hearing in any part of the state the process issued by the board extends to all parts of the state and may be served by any person authorized to serve process of courts of record [.] or by certified mail to the last known address of the witness.

      3.  The person serving the process is entitled to receive the compensation allowed by the board, which must not exceed the fees prescribed by law for similar services. [Fees must be paid in the same manner as provided in this chapter for the payment of the fees of witnesses.]

      Sec. 18.  NRS 632.400 is hereby amended to read as follows:

      632.400  1.  The board shall render a decision on any complaint within 60 days after the final hearing thereon. For the purposes of this subsection, the final hearing on a matter delegated to a hearing officer pursuant to NRS 632.355 is the final hearing conducted by the hearing officer unless the board conducts a hearing with regard to the complaint.

      2.  The board shall [give immediate notice in writing of the ruling or decision to:

      (a) The applicant, licensee or holder of the certificate affected thereby.

      (b) The party or parties by whom the complaint was made where the investigation or hearing was instituted by a complaint.

Written notice must be given by registered or certified mail addressed to the last known address of the applicant, licensee or holder of the certificate and party by whom the complaint was made.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1656 (Chapter 501, AB 545)ê

 

      3.  If the ruling is to the prejudice of, or injuriously affects, the licensee or holder of the certificate, the board shall also state in the notice the date upon which the ruling or the decision becomes effective, which date must not be less than 30 days from and after the date of the notice.

      4.  The decision of the board does not take effect until 30 days after its date, and if notice of appeal and a demand for the transcript are served upon the board in accordance with the provisions of this chapter, then the stay remains in force and effect until the decision of the district court after hearing the appeal. If the aggrieved party fails to perfect his appeal, the stay automatically terminates.] notify the person of its decision in writing by certified mail, return receipt requested. The decision of the board becomes effective on the date the person receives the notice or on the date the board receives a return by the United States Postal Service stating that the person refused to accept delivery or could not be located.

      Sec. 19.  NRS 632.490 is hereby amended to read as follows:

      632.490  1.  The board shall cause the prosecution of all persons violating the provisions of this chapter.

      2.  The board, or any [member thereof,] person designated by the board, may prefer a complaint for violation of NRS 632.130 [or 632.260] before any court of competent jurisdiction, and it may take the necessary legal steps through the proper legal officers of this state to enforce the provisions thereof.

      Sec. 20.  NRS 632.500 is hereby amended to read as follows:

      632.500  1.  [Any] Unless a greater penalty is provided by a specific statute, any person violating any of the provisions of this chapter is guilty of a misdemeanor.

      2.  A court of competent jurisdiction has full power to try any violations of this chapter, and upon conviction may, at its discretion, revoke the license or certificate of the person so convicted, in addition to imposing the other penalties provided in this chapter.

      Sec. 21.  NRS 179A.100 is hereby amended to read as follows:

      179A.100  1.  The following records of criminal history may be disseminated by an agency of criminal justice without any restriction pursuant to this chapter:

      (a) Any which reflect records of conviction only; and

      (b) Any which pertain to an incident for which a person is currently within the system of criminal justice, including parole or probation.

      2.  Without any restriction pursuant to this chapter, a record of criminal history or the absence of such a record may be:

      (a) Disclosed among agencies which maintain a system for the mutual exchange of criminal records.

      (b) Furnished by one agency to another to administer the system of criminal justice, including the furnishing of information by a police department to a district attorney.

      (c) Reported to the central repository.

      3.  An agency of criminal justice shall disseminate to a prospective employer, upon request, records of criminal history concerning a prospective employee or volunteer which:

      (a) Reflect convictions only; or


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1657 (Chapter 501, AB 545)ê

 

      (b) Pertain to an incident for which the prospective employee or volunteer is currently within the system of criminal justice, including parole or probation.

      4.  The central repository shall disseminate to a prospective or current employer, upon request, information relating to sexual offenses concerning an employee, prospective employee, volunteer or prospective volunteer who gives his written consent to the release of that information.

      5.  Records of criminal history must be disseminated by an agency of criminal justice upon request, to the following persons or governmental entities:

      (a) The person who is the subject of the record of criminal history for the purposes of NRS 179A.150.

      (b) The person who is the subject of the record of criminal history or his attorney of record when the subject is a party in a judicial, administrative, licensing, disciplinary or other proceeding to which the information is relevant.

      (c) The state gaming control board.

      (d) The state board of nursing.

      (e) The private investigator’s licensing board to investigate an applicant for a license.

      [(e)] (f) A public administrator to carry out his duties as prescribed in chapter 253 of NRS.

      [(f)] (g) A public guardian to investigate a ward or proposed ward or persons who may have knowledge of assets belonging to a ward or proposed ward.

      [(g)] (h) Any agency of criminal justice of the United States or of another state or the District of Columbia.

      [(h)] (i) Any public utility subject to the jurisdiction of the public service commission of Nevada when the information is necessary to conduct a security investigation of an employee or prospective employee, or to protect the public health, safety or welfare.

      [(i)] (j) Persons and agencies authorized by statute, ordinance, executive order, court rule, court decision or court order as construed by appropriate state or local officers or agencies.

      [(j)] (k) Any person or governmental entity which has entered into a contract to provide services to an agency of criminal justice relating to the administration of criminal justice, if authorized by the contract, and if the contract also specifies that the information will be used only for stated purposes and that it will be otherwise confidential in accordance with state and federal law and regulation.

      [(k)] (l) Any reporter for the electronic or printed media in his professional capacity for communication to the public.

      [(l)] (m) Prospective employers if the person who is the subject of the information has given written consent to the release of that information by the agency which maintains it.

      [(m)] (n) For the express purpose of research, evaluative or statistical programs pursuant to an agreement with an agency of criminal justice.

      [(n)] (o) The division of child and family services of the department of human resources and any county agency that is operated pursuant to NRS 432B.325 or authorized by a court of competent jurisdiction to receive and investigate reports of abuse or neglect of children and which provides or arranges for protective services for such children.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1658 (Chapter 501, AB 545)ê

 

432B.325 or authorized by a court of competent jurisdiction to receive and investigate reports of abuse or neglect of children and which provides or arranges for protective services for such children.

      6.  Agencies of criminal justice in this state which receive information from sources outside the state concerning transactions involving criminal justice which occur outside Nevada shall treat the information as confidentially as is required by the provisions of this chapter.

      Sec. 22.  NRS 632.075, 632.260, 632.323, 632.370 and 632.420 are hereby repealed.

      Sec. 23.  1.  Notwithstanding the amendatory provisions of section 7 of this act, the terms of the members of the state board of nursing who are incumbent on October 1, 1995, continue until the expiration of the terms for which they were appointed.

      2.  The governor shall comply with NRS 632.030, as amended by this act in filling all vacancies which occur on or after October 1, 1995, and all appointments to the state board of nursing made after that date must be for terms of 4 years.

      Sec. 24.  The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government which are related to the provisions of this act.

      Sec. 25.  Sections 14 and 21 of this act become effective at 12:01 a.m. on October 1, 1995.

 

________

 

 

CHAPTER 502, AB 452

Assembly Bill No. 452–Assemblymen Chowning, Segerblom, Goldwater, Anderson, Humke, Krenzer, Bache, Neighbors, Tripple, Monaghan, Schneider, Ohrenschall, Manendo, Carpenter, Stroth, de Braga, Braunlin, Close, Sandoval, Allard, Tiffany, Batten, Spitler, Lambert, Giunchigliani, Marvel, Arberry, Nolan, Freeman, Fettic, Steel, Harrington, Williams, Price, Ernaut, Hettrick, Brower, Buckley and Bennett

CHAPTER 502

AN ACT relating to motor vehicles; providing for the issuance of special license plates for the support of the education of children in the arts under certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 482 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in this subsection, the department shall, in cooperation with the state council on the arts, design, prepare and issue license plates for the support of the education of children in the arts, using any colors and designs which the department deems appropriate. The department shall not design, prepare or issue the license plates unless it receives at least 250 applications for the issuance of those plates.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1659 (Chapter 502, AB 452)ê

 

      2.  The department may issue license plates for the support of the education of children in the arts for any passenger car or light commercial vehicle upon application by any person who is entitled to license plates pursuant to NRS 482.265 and who otherwise complies with the requirements for registration and licensing pursuant to this chapter. A person may request that personalized prestige license plates issued pursuant to NRS 482.3667 be combined with license plates for the support of the education of children in the arts if that person pays the fee for the personalized prestige licensed plates in addition to the fees for the license plates for the support of the education of children in the arts pursuant to subsections 3 and 4.

      3.  The fee for license plates for the support of the education of children in the arts is $35, in addition to all other applicable registration and license fees and motor vehicle taxes. The license plates are renewable upon the payment of $10.

      4.  In addition to all fees for the license, registration and privilege taxes, a person who requests a set of license plates for the support of the education of children in the arts must pay for the initial issuance of the plates an additional fee of $15 and for each renewal of the plates an additional fee of $10 to finance programs which promote the education of children in the arts.

      5.  The department shall deposit the fees collected pursuant to subsection 4 with the state treasurer for credit to the account for license plates for the support of the education of children in the arts created pursuant to section 3 of this act.

      6.  If, during a registration year, the holder of license plates issued pursuant to the provisions of this section disposes of the vehicle to which the plates are affixed, he may retain the plates and:

      (a) Affix them to another vehicle which meets the requirements of this section if the transfer and registration fees are paid as set out in this chapter; or

      (b) Within 30 days after removing the plates from the vehicle, return them to the department.

      Sec. 2.  NRS 482.270 is hereby amended to read as follows:

      482.270  1.  Except as otherwise provided in NRS 482.3747, 482.3775, 482.379 or 482.384, or section 1 of this act, the director shall order the preparation of motor vehicle license plates with no other colors than blue and silver. The director may substitute white in place of silver when no suitable material is available.

      2.  The director may determine and vary the size, shape and form and the material of which license plates are made, but each license plate must be of sufficient size to be plainly readable from a distance of 100 feet during daylight. All license plates must be treated to reflect light and to be at least 100 times brighter than conventional painted number plates. When properly mounted on an unlighted vehicle, the license plates, when viewed from a vehicle equipped with standard headlights, must be visible for a distance of not less than 1,500 feet and readable for a distance of not less than 110 feet.

      3.  Every license plate must have displayed upon it:

      (a) The registration number, or combination of letters and numbers, assigned to the vehicle and to the owner thereof;

      (b) The name of the state, which may be abbreviated;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1660 (Chapter 502, AB 452)ê

 

      (c) If issued for a calendar year, the year; and

      (d) If issued for a registration period other than a calendar year, the month and year the registration expires.

      4.  The letters I and Q must not be used in the designation.

      5.  Except as otherwise provided [by] in NRS 482.379, all letters and numbers must be of the same size.

      Sec. 3.  Chapter 233C of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The account for license plates for the support of the education of children in the arts is hereby created in the state general fund. The director of the council shall administer the account.

      2.  The money in the account does not lapse to the state general fund at the end of any fiscal year.

      3.  The money in the account must be used only for the support of programs for the education of children in the arts and must not be used to replace or supplant funding available from other sources.

 

________

 

 

CHAPTER 503, AB 412

Assembly Bill No. 412–Assemblymen Buckley, Anderson, Giunchigliani, Evans, Spitler, Manendo, Segerblom, Bache, Dini, Williams, Perkins, Freeman, Ohrenschall, Krenzer, Goldwater, Arberry, Sandoval, Ernaut, Price, Schneider, Steel, Close, Monaghan, Lambert, Fettic, Stroth and Carpenter

CHAPTER 503

AN ACT relating to contests of election; requiring that certain candidates whose elections have been contested be seated until the election contests are decided; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 293.397 is hereby amended to read as follows:

      293.397  [Except as provided in NRS 293.425, no certificate may] A certificate of election or commission must not be withheld from the person having the highest number of votes for the office because of any contest of election filed in the election or any defect or informality in the returns of any election, if it can be ascertained with reasonable certainty from [such] the returns what office is intended and who is entitled to [such certificate, nor may any commission be withheld by the governor or the county clerk because of any such defect or informality.] the certificate or commission.

      Sec. 2.  NRS 293.425 is hereby amended to read as follows:

      293.425  [1.] If the contest is of the general election for the office of assemblyman or state senator, a statement of contest, prepared as provided in NRS 293.407, and all depositions, ballots and other documents relating to the contest must be filed with the secretary of state within the time provided for the filing of statements of contests with the clerk of the district court.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1661 (Chapter 503, AB 412)ê

 

      [2.  When a statement of contest is filed with the secretary of state he shall immediately notify the governor, who shall withhold issuing a certificate of election. If the governor has issued a certificate of election prior to receipt of notice from the secretary of state the certificate is void.]

      Sec. 3.  NRS 293.427 is hereby amended to read as follows:

      293.427  1.  The secretary of state shall deliver the statement of contest filed pursuant to NRS 293.425 and all other documents to the presiding officer of the appropriate house of the legislature [to which the candidates were declared to be elected] on the day of the organization of the legislature.

      2.  Until the contest has been decided, the candidate who received the highest number of votes for the office in the contested election must be seated as a member of the appropriate house.

      3.  If, before the contest has been decided, a contestant gives written notice to the secretary of state that he wishes to withdraw his statement of contest, the secretary of state shall dismiss the contest.

      [3.] 4.  The contest, if not dismissed, must be heard and decided as prescribed by the standing or special rules of the house in which the contest is to be tried.

      [4.  A certificate of election must be executed by the governor and delivered to the person declared elected by the house.] If after hearing the contest, the house decides to declare the contestant elected, the governor shall execute a certificate of election and deliver it to the contestant. The certificate of election issued to the other candidate is thereafter void.

      Sec. 4.  NRS 293.430 is hereby amended to read as follows:

      293.430  1.  If the contest is of the general election for the office of governor, lieutenant governor or justice of the supreme court, the statement of contest and all depositions, ballots and other documents relating to the contest must be filed with the secretary of state within the time provided for filing statements of contests with the clerk of the district court.

      2.  Until the contest is decided, the candidate who received the highest number of votes for the office in the contested election must be seated and commence the duties of his office.

      3.  The secretary of state shall deliver the statement of contest and all other papers and documents to the speaker of the assembly on the day of the organization of the legislature.

      [3.] 4.  A joint session of both houses must be convened as soon thereafter as the business of both houses permits, but not later than 10 days after receipt of statement of contest.

      [4.] 5.  If, before the contest has been decided, a contestant gives written notice to the secretary of state that he wishes to withdraw his statement of contest, the secretary of state shall dismiss the contest.

      Sec. 5.  NRS 293.435 is hereby amended to read as follows:

      293.435  1.  After both houses sitting in joint session have decided an election contest, the secretary of state shall execute and deliver a certificate of election to the person declared elected [.] , unless such a certificate was already issued to him.

      2.  If a certificate of election to the same office has been issued to any person other than the one declared to have been elected, [such] that certificate is void.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1662 (Chapter 503, AB 412)ê

 

      Sec. 6.  NRS 218.100 is hereby amended to read as follows:

      218.100  1.  [Prior to] Before the meeting of the assembly of each session of the legislature, the secretary of state shall make out a roll [of the members-elect, as shall appear by] from the returns on file in his office [. Only such] of the persons who received the highest number of votes for the offices of assemblyman and state senator in each district in the election. The members whose names [shall] appear upon the roll [shall] must be allowed to participate in the organization of the assembly.

      2.  On the [1st] first day of each session of the legislature at 12 m., the secretary of state shall call the assembly to order, and shall preside over the assembly until a presiding officer shall be elected.

 

________

 

 

CHAPTER 504, AB 153

Assembly Bill No. 153–Assemblymen Anderson, Bache, Ohrenschall, Manendo, Segerblom, de Braga, Monaghan, Harrington, Buckley, Humke, Allard, Sandoval, Carpenter, Brower, Spitler, Lambert, Batten and Chowning

CHAPTER 504

AN ACT relating to motor vehicles; providing for the issuance of special license plates which express support for the program for drug abuse resistance education under certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 482 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in this subsection, the department, in cooperation with the sheriffs and chiefs of police in this state, shall design, prepare and issue license plates which express support for the program for drug abuse resistance education using any colors and designs which the department deems appropriate. The department shall not design, prepare or issue the license plates unless it receives at least 250 applications for the issuance of those plates.

      2.  The department may issue license plates which express support for the program for drug abuse resistance education for any passenger car or light commercial vehicle upon application by any person who is entitled to license plates pursuant to NRS 482.265 and who otherwise complies with the requirements for registration and licensing pursuant to this chapter. A person may request that personalized prestige license plates issued pursuant to NRS 482.3667 be combined with license plates which express support for the program for drug abuse resistance education if that person pays the fees for the personalized prestige license plates in addition to the fees for the license plates which express support for the program for drug abuse resistance education pursuant to subsections 3 and 4.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1663 (Chapter 504, AB 153)ê

 

      3.  The fee for license plates which express support for the program for drug abuse resistance education is $35, in addition to all other applicable registration and license fees and motor vehicle privilege taxes. The license plates are renewable upon the payment of $10.

      4.  In addition to all fees for the license, registration and privilege taxes, a person who requests a set of license plates which expresses support for the program for drug abuse resistance education must pay for the initial issuance of the plates an additional fee of $25 and for each renewal of the plates an additional fee of $20 to finance the program for drug abuse resistance education.

      5.  The department shall deposit the fees collected pursuant to subsection 4 with the state treasurer for credit to the account for license plates which express support for the program for drug abuse resistance education which is hereby created in the state general fund. The fees must be accompanied by a report which sets forth the number of vehicles in each county which have been issued license plates pursuant to this section. The state controller shall distribute the money deposited in that account to the general fund of each county in the proportion that the number of vehicles issued license plates pursuant to this section in that county bears to the total number of vehicles issued license plates pursuant to this section for all counties in this state.

      6.  The money a county receives pursuant to subsection 5 must only be used to finance the program for drug abuse resistance education in that county.

      7.  If, during a registration year, the holder of license plates issued pursuant to the provisions of this section disposes of the vehicle to which the plates are affixed, he may retain the plates and:

      (a) Affix them to another vehicle which meets the requirements of this section if the transfer and registration fees are paid as set out in this chapter; or

      (b) Within 30 days after removing the plates from the vehicle, return them to the department.

      Sec. 2.  NRS 482.206 is hereby amended to read as follows:

      482.206  1.  Except as otherwise provided in this section, every vehicle, except one which is registered pursuant to the provisions of NRS 706.801 to 706.861, inclusive, or which is a motor vehicle with a declared gross weight in excess of 26,000 pounds, must be registered for a period of 12 consecutive months beginning the day after the first registration by the owner in this state.

      2.  Every vehicle registered by an agent of the department must be registered for 12 consecutive months beginning the first day of the month after the first registration by the owner in this state.

      3.  Upon the application of the owner of a fleet of vehicles, the director may permit him to register his fleet on the basis of a calendar year.

      4.  When the registration of any vehicle is transferred pursuant to the provisions of NRS 482.3667, 482.379 or 482.399, the expiration date of a regular license plate or plates, collegiate license plate or plates, commemorative license plate or plates, license plate or plates which express support for the program for drug abuse resistance education, special license plate or plates or substitute decal must, at the time of the transfer of registration, be advanced for a period of 12 consecutive months beginning:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1664 (Chapter 504, AB 153)ê

 

      (a) The first day of the month after the transfer, if the vehicle is transferred by an agent of the department; or

      (b) The day after the transfer in all other cases,

and a credit on the portion of the fee for registration and privilege tax attributable to the remainder of the current period of registration allowed according to the applicable provisions of NRS 482.3667, 482.379 and 482.399.

      Sec. 3.  NRS 482.270 is hereby amended to read as follows:

      482.270  1.  Except as otherwise provided in NRS 482.3747, 482.3775, 482.379 [or 482.384,] 482.384 or section 1 of this act, the director shall order the preparation of motor vehicle license plates with no other colors than blue and silver. The director may substitute white in place of silver when no suitable material is available.

      2.  The director may determine and vary the size, shape and form and the material of which license plates are made, but each license plate must be of sufficient size to be plainly readable from a distance of 100 feet during daylight. All license plates must be treated to reflect light and to be at least 100 times brighter than conventional painted number plates. When properly mounted on an unlighted vehicle, the license plates, when viewed from a vehicle equipped with standard headlights, must be visible for a distance of not less than 1,500 feet and readable for a distance of not less than 110 feet.

      3.  Every license plate must have displayed upon it:

      (a) The registration number, or combination of letters and numbers, assigned to the vehicle and to the owner thereof;

      (b) The name of the state, which may be abbreviated;

      (c) If issued for a calendar year, the year; and

      (d) If issued for a registration period other than a calendar year, the month and year the registration expires.

      4.  The letters I and Q must not be used in the designation.

      5.  Except as otherwise provided by NRS 482.379, all letters and numbers must be of the same size.

 

________

 

 

CHAPTER 505, AB 118

Assembly Bill No. 118–Assemblyman Spitler

CHAPTER 505

AN ACT relating to motor vehicles; providing for the issuance of special license plates for the support of missing or exploited children under certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 482 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in this subsection, the department, in cooperation with the director of the clearinghouse established pursuant to NRS 432.170, shall design, prepare and issue license plates for the support of missing or exploited children.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1665 (Chapter 505, AB 118)ê

 

NRS 432.170, shall design, prepare and issue license plates for the support of missing or exploited children. The license plates must be inscribed with a hand. The department may designate any appropriate colors for the license plates. The department shall not design, prepare or issue the license plates unless it receives at least 250 applications for the issuance of those plates.

      2.  The department may issue license plates for the support of missing or exploited children for any passenger car or light commercial vehicle upon application by any person who is entitled to license plates pursuant to NRS 482.265 and who otherwise complies with the requirements for registration and licensing pursuant to this chapter. A person may request that personalized prestige license plates issued pursuant to NRS 482.3667 be combined with license plates for the support of missing or exploited children if that person pays the fees for the personalized prestige license plates in addition to the fees for the license plates for the support of missing or exploited children pursuant to subsections 3 and 4.

      3.  The fee for license plates for the support of missing or exploited children is $35, in addition to all other applicable registration and license fees and motor vehicle privilege taxes. The license plates are renewable upon the payment of $10.

      4.  In addition to all fees for the license, registration and privilege taxes, a person who requests a set of license plates for the support of missing or exploited children must pay for the initial issuance of the plates an additional fee of $15 and for each renewal of the plates an additional fee of $10 to carry out the provisions of NRS 432.150 to 432.220, inclusive.

      5.  The department shall deposit the fees collected pursuant to subsection 4 with the state treasurer for credit to the account for license plates for the support of missing or exploited children created pursuant to section 3 of this act.

      6.  If, during a registration year, the holder of license plates issued pursuant to the provisions of this section disposes of the vehicle to which the plates are affixed, he may retain the plates and:

      (a) Affix them to another vehicle which meets the requirements of this section if the transfer and registration fees are paid as set out in this chapter; or

      (b) Within 30 days after removing the plates from the vehicle, return them to the department.

      Sec. 2.  NRS 482.270 is hereby amended to read as follows:

      482.270  1.  Except as otherwise provided in NRS 482.3747, 482.3775, 482.379 or 482.384, or section 1 of this act, the director shall order the preparation of motor vehicle license plates with no other colors than blue and silver. The director may substitute white in place of silver when no suitable material is available.

      2.  The director may determine and vary the size, shape and form and the material of which license plates are made, but each license plate must be of sufficient size to be plainly readable from a distance of 100 feet during daylight. All license plates must be treated to reflect light and to be at least 100 times brighter than conventional painted number plates. When properly mounted on an unlighted vehicle, the license plates, when viewed from a vehicle equipped with standard headlights, must be visible for a distance of not less than 1,500 feet and readable for a distance of not less than 110 feet.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1666 (Chapter 505, AB 118)ê

 

vehicle equipped with standard headlights, must be visible for a distance of not less than 1,500 feet and readable for a distance of not less than 110 feet.

      3.  Every license plate must have displayed upon it:

      (a) The registration number, or combination of letters and numbers, assigned to the vehicle and to the owner thereof;

      (b) The name of the state, which may be abbreviated;

      (c) If issued for a calendar year, the year; and

      (d) If issued for a registration period other than a calendar year, the month and year the registration expires.

      4.  The letters I and Q must not be used in the designation.

      5.  Except as otherwise provided by NRS 482.379, all letters and numbers must be of the same size.

      Sec. 3.  Chapter 432 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The account for license plates for the support of missing or exploited children is hereby created in the state general fund. The director shall administer the account.

      2.  The money in the account does not lapse to the state general fund at the end of any fiscal year.

      3.  The money in the account must only be used to carry out the provisions of NRS 432.150 to 432.220, inclusive.

      Sec. 4.  NRS 432.150 is hereby amended to read as follows:

      432.150  As used in NRS 432.150 to 432.220, inclusive, and section 3 of this act, unless the context otherwise requires:

      1.  “Clearinghouse” means the program established by the attorney general pursuant to NRS 432.170.

      2.  “Director” means the director of the clearinghouse.

      3.  “Exploited child” means a person under the age of 18 years who has been:

      (a) Used in the production of pornography in violation of the provisions of NRS 200.710;

      (b) Subjected to sexual exploitation as defined in NRS 432B.110; or

      (c) Employed or exhibited in any injurious, immoral or dangerous business or occupation in violation of the provisions of NRS 609.210.

      4.  “Missing child” means a person under the age of 18 years who has run away or is otherwise missing from the lawful care, custody and control of his parent or guardian.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1667ê

 

CHAPTER 506, AB 258

Assembly Bill No. 258–Assemblymen Arberry, Dini, Bache, Krenzer, Williams, Price, Buckley, de Braga, Marvel, Tiffany, Hettrick, Evans, Fettic, Chowning, Close, Giunchigliani, Manendo, Brower, Nolan, Humke, Ernaut, Anderson, Neighbors, Carpenter, Segerblom, Steel, Braunlin, Schneider, Harrington, Sandoval, Stroth, Freeman and Batten

CHAPTER 506

AN ACT relating to motor vehicles; providing for the issuance of special license plates to retired members of the Armed Forces of the United States for the support of veterans’ cemeteries in this state under certain circumstances; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 482 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in this subsection, the director shall order the preparation of special license plates for the support of veterans’ cemeteries in this state and establish the procedure for the application for and issuance of the plates. The director shall not order the preparation of the special license plates unless he receives at least 250 applications for the issuance of those plates.

      2.  The department shall, upon application therefor and payment of the prescribed fees, issue special license plates for the support of the veterans’ cemeteries in this state to any person who is a retired member of the Armed Forces of the United States. The plates must be inscribed with the words ARMED FORCES RETIRED and four consecutive numbers, and except as otherwise provided in subsections 3 and 4, with the seal of the branch of the Armed Forces of the United States requested by the applicant.

      3.  Except as otherwise provided in subsection 4, the department shall, upon the request of an applicant, substitute for the seal of the branch of the Armed Forces of the United States the emblem or other insigne of the specific military unit to which the applicant was assigned if:

      (a) The military unit is a recognized unit within the particular branch of the Armed Forces of the United States; and

      (b) At least 250 applicants request the substitution of that emblem or insigne.

      4.  The director may use or imitate a seal, emblem or other insigne of a branch, or unit within that branch, of the Armed Forces of the United States only if that use or imitation complies with the provisions of 10 U.S.C. § 1057, as that section existed on October 1, 1995.

      5.  In addition to all other applicable registration and license fees and privilege taxes, the fee for the initial issuance of the special license plates is $35. The annual renewal fee is $10.

      6.  In addition to all other applicable registration and license fees and privilege taxes, a person who requests special license plates issued pursuant to this section shall pay:

      (a) A fee of $25 for the initial issuance of the plates; and


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1668 (Chapter 506, AB 258)ê

 

      (b) A fee of $20 for the annual renewal of the plates,

for the support of veterans’ cemeteries in this state.

      7.  The department shall deposit the fees collected pursuant to subsection 6 with the state treasurer for credit to:

      (a) The account for a veterans’ cemetery in northern Nevada created pursuant to NRS 417.220, if the plates were issued for a vehicle registered in the counties of Washoe, Storey, Douglas, Lyon, Churchill, Pershing, Humboldt, Lander, Elko, Eureka, Mineral, White Pine or Carson City; or

      (b) The account for a veterans’ cemetery in southern Nevada created pursuant to NRS 417.220, if the plates were issued for a vehicle registered in the counties of Lincoln, Nye, Esmeralda or Clark.

      8.  If during a registration year, the holder of special plates issued pursuant to this section disposes of the vehicle to which the plates are affixed, he shall retain the plates and:

      (a) Affix them to another vehicle which meets the requirements of this section and report the change to the department in accordance with the procedure set forth for other transfers; or

      (b) Within 30 days after removing the plates from the vehicle, return them to the department.

      9.  If the special plates issued pursuant to this section are lost, stolen or mutilated, the owner of the vehicle may obtain a set of replacement license plates from the department for a fee of $10.

      Sec. 2.  NRS 482.270 is hereby amended to read as follows:

      482.270  1.  Except as otherwise provided in NRS 482.3747, 482.3775, 482.379 or 482.384, or section 1 of this act, the director shall order the preparation of motor vehicle license plates with no other colors than blue and silver. The director may substitute white in place of silver when no suitable material is available.

      2.  The director may determine and vary the size, shape and form and the material of which license plates are made, but each license plate must be of sufficient size to be plainly readable from a distance of 100 feet during daylight. All license plates must be treated to reflect light and to be at least 100 times brighter than conventional painted number plates. When property mounted on an unlighted vehicle, the license plates, when viewed from a vehicle equipped with standard headlights, must be visible for a distance of not less than 1,500 feet and readable for a distance of not less than 110 feet.

      3.  Every license plate must have displayed upon it:

      (a) The registration number, or combination of letters and numbers, assigned to the vehicle and to the owner thereof;

      (b) The name of the state, which may be abbreviated;

      (c) If issued for a calendar year, the year; and

      (d) If issued for a registration period other than a calendar year, the month and year the registration expires.

      4.  The letters I and Q must not be used in the designation.

      5.  Except as otherwise provided by NRS 482.379, all letters and numbers must be of the same size.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1669ê

 

CHAPTER 507, AB 192

Assembly Bill No. 192–Committee on Commerce

CHAPTER 507

AN ACT relating to hearing aid specialists; prohibiting a hearing aid specialist whose license has been revoked from being involved in a business which sells or dispenses hearing aids; authorizing hearing aid specialists to sell hearing aids by catalog or mail to certain persons; providing a penalty; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 637A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.

      Sec. 2.  “Incompetence” means a lack of ability safely and skillfully to practice as a hearing aid specialist or apprentice to a hearing aid specialist arising from:

      1.  Lack of knowledge or training; or

      2.  Impaired physical or mental capability, including the habitual abuse of alcohol or addiction to any illegally obtained controlled substance.

      Sec. 3.  “Negligence” means a deviation from the normal standard of professional care exercised by hearing aid specialists or apprentices to hearing aid specialists.

      Sec. 4.  A hearing aid specialist whose license has been revoked may not be an active participant in the fitting or dispensing of a hearing aid to any person.

      Sec. 5.  1.  A hearing aid specialist licensed pursuant to this chapter may sell hearing aids by catalog or mail if:

      (a) He has received a written statement signed by a physician licensed pursuant to chapter 630 of NRS, an advanced practitioner of nursing licensed pursuant to chapter 632 of NRS, an audiologist licensed pursuant to chapter 637B of NRS or a hearing aid specialist licensed pursuant to this chapter which verifies that he has performed an otoscopic examination of that person and that the results of the examination indicate that the person may benefit from the use of a hearing aid;

      (b) He has received a written statement signed by a physician licensed pursuant to chapter 630 of NRS, audiologist licensed pursuant to chapter 637B of NRS or a hearing aid specialist licensed pursuant to this chapter which verifies that he has performed an audiometric examination of that person in compliance with regulations adopted by the board and that the results of the examination indicate that the person may benefit from the use of a hearing aid;

      (c) He has received a written statement signed by a hearing aid specialist licensed pursuant to this chapter which verifies that an ear impression has been taken; and

      (d) The person has signed a statement acknowledging that the licensee is selling him the hearing aid by catalog or mail based upon the information submitted by the person in accordance with this section.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1670 (Chapter 507, AB 192)ê

 

      2.  A hearing aid specialist who sells hearing aids by catalog or mail shall maintain a record of each sale of a hearing aid made pursuant to this section for not less than 5 years.

      3.  The board may adopt regulations to carry out the provisions of this section, including, without limitation, the information which must be included in each record required to be maintained pursuant to subsection 2.

      Sec. 6.  NRS 637A.020 is hereby amended to read as follows:

      637A.020  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 637A.021 to 637A.024, inclusive, [having] and sections 2 and 3 of this act, have the meanings ascribed to them in those sections.

      Sec. 7.  (Deleted by amendment.)

      Sec. 8.  NRS 637A.110 is hereby amended to read as follows:

      637A.110  The board may:

      1.  Appoint a technical, clerical and operational staff as may be required. The number of the staff appointed must be limited by the money available for that purpose in the hearing aid licensing fund.

      2.  Grant or refuse licenses [and revoke or suspend them] for any of the causes specified in this chapter.

      3.  Take disciplinary action against a licensee.

      4.  Take depositions and issue subpoenas for the purpose of any hearing authorized by this chapter.

      [4.] 5.  Establish reasonable educational requirements for applicants and apprentices and reasonable requirements for the continuing education of hearing aid specialists and apprentices.

      Sec. 9.  NRS 637A.130 is hereby amended to read as follows:

      637A.130  An application for an examination must be filed in writing with the board at least [90] 60 days before the meeting of the board immediately preceding the examination, and be accompanied by the application fee prescribed in NRS 637A.210.

      Sec. 10.  NRS 637A.190 is hereby amended to read as follows:

      637A.190  Every licensee shall display his license [in a conspicuous place in his principal place of business.] conspicuously in each place where he conducts business as a hearing aid specialist or as an apprentice to a hearing aid specialist.

      Sec. 11.  NRS 637A.205 is hereby amended to read as follows:

      637A.205  [1.  Except as otherwise provided in this section, upon] Upon written request to the board and payment of the applicable fee, a licensee in good standing may have his name and license transferred to an inactive list. Such a licensee shall not engage in the business of hearing aid specialist or apprentice to a hearing aid specialist during the time the license is inactive. If an inactive licensee desires to resume [the business of] business as a hearing aid specialist [,] or as an apprentice to a hearing aid specialist, the board shall reactivate the license upon the:

      [(a)] 1.  Demonstration, if deemed necessary by the board, that the licensee is [then] qualified and competent to practice;

      [(b)] 2.  Completion of an application for reinstatement; and

      [(c)] 3.  Payment of the [current] fee for renewal of the license.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1671 (Chapter 507, AB 192)ê

 

Payment of the lapsed renewal fee and the renewal fee for any year while the license was inactive is not required.

      [2.  The board shall not transfer the license of an apprentice to a hearing aid specialist to an inactive list.]

      Sec. 12.  NRS 637A.210 is hereby amended to read as follows:

      637A.210  The board shall charge fees which must not be greater than the following:

 

For a license as a hearing aid specialist:

 

Application fee .............................................................................           $250

Examination fee ............................................................................             200

Initial licensee fee ........................................................................             100

Annual license fee .......................................................................             200

[Application fee for a temporary license....................................               50

Temporary license fee .................................................................            100]

Duplicate license fee ..................................................................               20

Inactive status fee .......................................................................             100

 

For a license as an apprentice to a hearing aid specialist:

 

Application fee .............................................................................             250

Annual license fee .......................................................................             100

Inactive status fee .......................................................................            100

 

For all licenses issued by the board:

 

Lapsed renewal fee per year for each year, or fraction thereof, that the annual license fee has not been paid ..............................................             100

Reinstatement fee ........................................................................             100

      Sec. 13.  NRS 637A.240 is hereby amended to read as follows:

      637A.240  1.  No person may serve as an apprentice to a hearing aid specialist for more than [2] 3 years without passing the examination required by this chapter.

      2.  For the purposes of subsection 1, the calculation of the time a person has served as an apprentice to a hearing aid specialist must not include any period during which the license of the apprentice to a hearing aid specialist was on inactive status.

      Sec. 14.  NRS 637A.250 is hereby amended to read as follows:

      637A.250  The board may [revoke or suspend a license] take disciplinary action against a licensee after a hearing which discloses that the licensee:

      1.  Has been convicted of a felony.

      2.  Has been convicted of violating any of the provisions of NRS 616.630, 616.635, 616.640 or 616.675 to 616.700, inclusive.

      3.  Obtained the license by fraud or misrepresentation.

      4.  [Obtained any fee by fraud or misrepresentation.

      5.] Has made any false or fraudulent statements concerning hearing aids [.

      6.] or the business of hearing aid specialist.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1672 (Chapter 507, AB 192)ê

 

      5.  Has been guilty of negligence, incompetence or [misconduct in the fitting or dispensing of any hearing aid,

      7.] unprofessional conduct in his practice as a hearing aid specialist. As used in this subsection, “unprofessional conduct” includes, without limitation:

      (a) Conduct which is intended to deceive or which the board by specific regulation has determined is unethical;

      (b) Conduct which is harmful to the public or any conduct detrimental to the public health or safety;

      (c) Conduct for which disciplinary action was taken by an agency of another state which is authorized to regulate the practice of hearing aid specialists; and

      (d) Knowingly employing, directly or indirectly, any person who is not licensed to fit or dispense hearing aids or whose license to fit or dispense hearing aids has been suspended or revoked.

      6.  Has loaned or transferred his license to another person.

      [8.] 7.  Willfully violated any law of this state or any provision of this chapter regulating hearing aid specialists or the operation of an office, store or other location for dispensing hearing aids.

      [9.  Is habitually intemperate.]

      Sec. 15.  NRS 637A.260 is hereby amended to read as follows:

      637A.260  1.  The board, any of its members or any other person who believes that a licensee or other person has violated a provision of this chapter may file a complaint specifying the relevant facts with the board. The board may amend any such complaint to include additional allegations if it becomes aware of any additional information concerning a further violation of the provisions of this chapter.

      2.  A complaint made against any licensee charging one or more of the causes for which his license may be revoked or suspended must be made with such particularity as to enable the licensee to prepare a defense thereto.

      [2.] 3.  The complaint must be made in writing and be signed and verified by the person making it.

      4.  The board, on its own motion, may investigate the activities of an applicant for or a holder of a license issued pursuant to this chapter at any time.

      Sec. 16.  NRS 637A.270 is hereby amended to read as follows:

      637A.270  As soon as practicable after the filing of a complaint the board [shall] may, if the board determines that further action is required, fix a date for the hearing thereof, which date must not be less than 20 days thereafter. If the board receives a report pursuant to subsection 5 of NRS 228.420, a hearing must be held within 30 days after receiving the report. The secretary shall immediately mail, by registered or certified mail, to the defendant licensee, a copy of the complaint and a notice showing the date and place fixed for the hearing.

      Sec. 17.  NRS 637A.290 is hereby amended to read as follows:

      637A.290  1.  The holder of any license issued by the board whose default has been entered or who has been heard by the board and found guilty of the violation alleged in the complaint may be disciplined by the board by one or more of the following methods:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1673 (Chapter 507, AB 192)ê

 

      (a) Placing the licensee on probation for a period not to exceed [1 year;] 2 years;

      (b) Suspending the right of the licensee to practice, or the right to use a license, for a period not to exceed 3 years;

      (c) Revoking the license;

      (d) Public or private reprimand; [or]

      (e) Imposition of [a penalty] an administrative fine not to exceed [$2,000.] $5,000 upon a finding by the board of more than one violation;

      (f) Requiring the licensee to pay the costs incurred by the board in investigating and disciplining the licensee;

      (g) Requiring the licensee to pay restitution to any person who has suffered an economic loss as a result of a violation of the provisions of this chapter or any regulation adopted by the board pursuant thereto; or

      (h) Requiring the licensee to retake and pass the examination or otherwise demonstrate that he is qualified and competent to practice.

      2.  If a license is suspended, it must be surrendered to the board and returned to the licensee upon termination of the [suspension period.] period of suspension.

      Sec. 18.  NRS 637A.165 is hereby repealed.

 

________

 

 

CHAPTER 508, AB 181

Assembly Bill No. 181–Committee on Ways and Means

CHAPTER 508

AN ACT making an appropriation to the University and Community College System of Nevada for the support of the health service corps; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  There is hereby appropriated from the state general fund to the University and Community College System of Nevada for the support of the health service corps:

For the fiscal year 1995-96................................................................ $166,500

For the fiscal year 1996-97................................................................ $229,000

      Sec. 2.  Any balance of the sums appropriated by section 1 of this act remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 3.  This act becomes effective on July 1, 1995.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1674ê

 

CHAPTER 509, AB 176

Assembly Bill No. 176–Assemblymen Bache, Anderson, Evans, Manendo, Buckley, Monaghan, Tiffany, Giunchigliani, Perkins, Lambert, Price, Arberry, de Braga, Steel, Sandoval, Krenzer, Segerblom, Ohrenschall, Carpenter, Braunlin, Goldwater, Nolan, Chowning, Williams, Spitler, Neighbors, Dini, Schneider, Marvel, Humke and Ernaut

CHAPTER 509

AN ACT relating to education; adopting a formula to determine the mobility of pupils; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 392 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  In determining the mobility of pupils in a school, for any purpose, the department shall divide the sum of the following numbers by the cumulative enrollment in the school:

      (a) The number of late entries or transfers into a school from another school, school district or state, after the beginning of the school year;

      (b) The number of pupils reentering the school after having withdrawn from the same school; and

      (c) The number of pupils who withdraw for any reason or who are dropped for nonattendance.

      2.  To determine the cumulative enrollment of the school pursuant to subsection 1, the department shall add the total number of pupils enrolled in programs of instruction in the school who are included in the count for apportionment purposes pursuant to paragraphs (a), (b) and (c) of subsection 1 of NRS 387.123 and the number of pupils included in paragraphs (a) and (b) of subsection 1.

      3.  The department shall develop and distribute to the county school districts a form upon which the information necessary to the formula may be submitted by the individual schools.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1675ê

 

CHAPTER 510, SB 536

Senate Bill No. 536–Senator Titus

CHAPTER 510

AN ACT relating to veterinarians; making various changes concerning the licensure and regulation of veterinarians; providing a penalty; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 638 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.

      Sec. 2.  “Agency” means:

      1.  A law enforcement agency;

      2.  An animal control agency; or

      3.  A society for the prevention of cruelty to animals which is in compliance with the provisions of chapter 574 of NRS.

      Sec. 3.  The board shall adopt regulations which prescribe the requirements for the licensure of a facility in which veterinary medicine is practiced, including, without limitation, the fee for the issuance and renewal of a license.

      Sec. 4.  1.  Each licensed veterinarian to whom an animal is brought for treatment shall recommend to the owner of the animal or to the person delivering the animal for treatment that the animal receive the vaccinations for zoonotic diseases that are recommended by the Centers for Disease Control and Prevention of the Department of Health and Human Services. The vaccinations must be administered by a licensed veterinarian or under the direct supervision of a licensed veterinarian. The board may adopt regulations to ensure compliance with the provisions of this subsection.

      2.  A licensed veterinarian who agrees to perform veterinary services on an animal shall provide the services at the level of quality required by this chapter regardless of the fee, if any, which the veterinarian charges for his services. A violation of this subsection is a ground for disciplinary action.

      Sec. 5.  1.  Except as otherwise provided in NRS 41.500, a person licensed pursuant to the provisions of this chapter shall not provide medical assistance, treatment or counsel to a human being. Such conduct is a ground for disciplinary action.

      2.  The board shall immediately suspend the license of a person who violates the provisions of this section.

      3.  Any person who violates the provisions of this section is guilty of a felony and shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $10,000, or by both fine and imprisonment.

      4.  The board may report an alleged violation of this section to the attorney general or any district attorney. Upon receiving a report from the board, the attorney general or district attorney shall institute necessary proceedings in a court of competent jurisdiction against the person responsible for the alleged violation of this section.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1676 (Chapter 510, SB 536)ê

 

      Sec. 6.  NRS 638.001 is hereby amended to read as follows:

      638.001  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 638.002 to 638.012, inclusive, and section 2 of this act, have the meanings ascribed to them in those sections.

      Sec. 7.  NRS 638.002 is hereby amended to read as follows:

      638.002  “Animal” excludes [man] a human being and includes any mammal, amphibian, fowl, [birds, fish and reptiles,] bird, fish or reptile, wild or domestic, living or dead.

      Sec. 8.  NRS 638.003 is hereby amended to read as follows:

      638.003  [“Animal] “Veterinary technician” means a person who is formally trained for the specific purpose of assisting a licensed veterinarian in the performance of professional or technical services in the field of veterinary medicine.

      Sec. 9.  NRS 638.007 is hereby amended to read as follows:

      638.007  “Licensed veterinarian” means a person who is [validly and currently] licensed by the board and is on active status to practice veterinary medicine in this state.

      Sec. 10.  NRS 638.008 is hereby amended to read as follows:

      638.008  “Practice of veterinary medicine” means:

      1.  To diagnose, treat, correct, change, relieve or prevent animal disease, deformity, defect, injury or other physical or mental conditions, including [the] , but not limited to:

      (a) The prescription or the administration of any drug, medicine, biologic, apparatus, application, anesthetic or other therapeutic or diagnostic substance or technique [, and including testing] ;

      (b) The collection of embryos;

      (c) Testing for pregnancy or for correcting sterility or infertility [, or to render] ;

      (d) Acupuncture;

      (e) Dentistry;

      (f) Chiropractic procedures;

      (g) Surgery, including cosmetic surgery; or

      (h) Rendering advice or recommendation with regard to any of these.

      2.  To represent, directly or indirectly, publicly or privately, an ability and willingness to do any act described in subsection 1.

      3.  To use any title, words, abbreviation or letters in a manner or under circumstances which induce the belief that the person using them is qualified to do any act described in subsection 1, except [where] if the person is a veterinarian.

      Sec. 11.  NRS 638.015 is hereby amended to read as follows:

      638.015  Nothing in this chapter [shall be construed to apply:] applies:

      1.  To the gratuitous castrating, dehorning or vaccinating of domesticated animals nor to the gratuitous treatment of diseased animals by friends or neighbors of the owner thereof [.] , except that all vaccinations for zoonotic diseases must be administered by a licensed veterinarian or a person under the direct supervision of a licensed veterinarian.

      2.  To debar any veterinarian in the employ of the United States Government or the State of Nevada from performing official duties necessary for the conduct of the business of the United States Government or the State of Nevada, or a political subdivision thereof, upon which he is assigned.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1677 (Chapter 510, SB 536)ê

 

conduct of the business of the United States Government or the State of Nevada, or a political subdivision thereof, upon which he is assigned.

      3.  To any [veterinarian who shall be] person who is a diplomate from an approved speciality board of the American Veterinary Medical Association who is called into the state for consultation by a person licensed to practice under this chapter [, or to locum tenens] for a period not to exceed [90] 30 days in any 12-month period [.] if he practices under the auspices of a licensed veterinarian.

      4.  To the giving of advice with respect to or the performance of acts which the board by rule has prescribed as accepted livestock management practices.

      5.  To the owner of an animal or full-time regular employee of the owner who is caring for and treating an animal which belongs to [such owner, except where] the owner unless the ownership of the animal is transferred for the purposes of circumventing this chapter [.] , except that all vaccinations for zoonotic diseases must be administered by a licensed veterinarian or a person under the direct supervision of a licensed veterinarian.

      6.  To any person or agency that performs humane services for wildlife animals without charge.

      7.  To any person, other than a veterinarian, who renders aid, assistance or relief to an animal in an emergency without charge if he does not represent himself as holding a license to practice veterinary medicine or as holding a degree in veterinary medicine or other related field.

      8.  To any person, other than a veterinarian, who renders emergency paramedical services to an animal without charge during the transportation of the animal to a veterinary facility.

      Sec. 12.  NRS 638.017 is hereby amended to read as follows:

      638.017  1.  Service of process made pursuant to and all notices required by this chapter must be either personal or by registered or certified mail with return receipt requested, addressed to the veterinarian, [animal] veterinary technician or applicant for a license, at his last known address, as indicated on the records of the board. If personal service cannot be made and if notice by mail is returned undelivered, the executive [secretary] director of the board shall cause a notice of the hearing or action to be published once a week for 4 consecutive weeks in a newspaper published in the county of that person’s last known address or, if no newspaper is published in that county, then in a newspaper widely distributed in that county.

      2.  Proof of service of process or publication of notice made pursuant to this chapter must be filed with the executive [secretary] director and recorded in the minutes of the board.

      Sec. 13.  NRS 638.050 is hereby amended to read as follows:

      638.050  1.  The board shall elect from its appointed members a president and vice president [. The officers] , who serve at the pleasure of the board.

      2.  The board may [maintain offices in as many localities in the state as it finds necessary to carry out the provisions of this chapter.] elect from its appointed members at least one member to act as a representative of the board at any meeting held within the state or outside the state when the board considers such representation beneficial.

      3.  The board shall [employ] :


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1678 (Chapter 510, SB 536)ê

 

      (a) Employ an executive [secretary] director, who shall maintain a copy of all correspondence [.] ;

      (b) Adopt regulations concerning the duties and qualifications of the executive director; and

      (c) At least annually, review the performance of the executive director.

      Sec. 14.  NRS 638.070 is hereby amended to read as follows:

      638.070  1.  The board [may:

      1.  Adopt regulations:] shall adopt regulations providing an administrative fine in an amount not to exceed $500 if an applicant for a license or the renewal of a license:

      (a) Intentionally or knowingly makes a false or misleading statement on his application;

      (b) Knowingly fails to submit a notarized application; or

      (c) Fails to inform the board of any change of information which was contained in his application.

      2.  The board may adopt regulations:

      (a) Necessary to carry out the provisions of this chapter;

      (b) Concerning the rights and responsibilities of veterinary interns and externs and graduates of schools of veterinary medicine located outside the United States or Canada;

      (c) Concerning the rights and responsibilities of a veterinarian’s employees who are not licensed nor working towards obtaining a license pursuant to this chapter and whose duties require them to spend a substantial portion of their time in direct contact with animals;

      (d) Concerning requirements for continuing education;

      (e) Establishing procedures to approve schools which confer the degree of [animal] veterinary technician or its equivalent;

      (f) Concerning the disposition of animals which are abandoned or left unclaimed at the office of a veterinarian; and

      (g) Establishing sanitary requirements for facilities in which veterinary medicine is practiced, including, but not limited to, precautions to be taken to prevent the creation or spread of any infectious or contagious disease.

      [2.] (h) Concerning alternative veterinary medicine, including, but not limited to, acupuncture, chiropractic procedures, dentistry, cosmetic surgery, holistic medicine, and the provision of such services by a licensed provider of health care under the direction of a licensed veterinarian.

      3.  The board may:

      (a) Employ attorneys, investigators, hearing officers for disciplinary hearings, and other professional consultants and clerical personnel necessary to the discharge of its duties [.

      3.  Take] ;

      (b) Conduct investigations and take and record evidence as to any matter cognizable by it [.] ;

      (c) Maintain offices in as many localities in the state as it considers necessary to carry out the provisions of this chapter; and

      (d) Purchase or rent any office space, equipment and supplies that it considers necessary to carry out the provisions of this chapter.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1679 (Chapter 510, SB 536)ê

 

      Sec. 15.  NRS 638.080 is hereby amended to read as follows:

      638.080  1.  The executive [secretary] director is the custodian of all the records and money of the board, and shall deposit all money received by the board pursuant to the provisions of this chapter, except fines imposed by the board, in banks or savings and loan associations in the State of Nevada. The money must be used to meet the expenses of the board.

      2.  Payment of money must be made upon the written order of the president of the board countersigned by the executive [secretary.] director.

      Sec. 16.  NRS 638.090 is hereby amended to read as follows:

      638.090  It [shall be] is unlawful for any person to practice veterinary medicine, surgery, obstetrics or dentistry within the State of Nevada without [first obtaining] a license [so to do as provided in] issued pursuant to the provisions of this chapter.

      Sec. 17.  NRS 638.100 is hereby amended to read as follows:

      638.100  1.  Any person who desires to secure a license to practice veterinary medicine, surgery, obstetrics or dentistry in the State of Nevada must make written application to the executive [secretary] director of the board.

      2.  The application must include any information required by the board and must be accompanied by satisfactory proof that the applicant:

      (a) Is of good moral character [.

      (b) Has] ;

      (b) Except as otherwise provided in subsection 3, has received a diploma conferring the degree of doctor of veterinary medicine or its equivalent from a school of veterinary medicine within the United States or Canada or, if the applicant is a graduate of a school of veterinary medicine located outside the United States or Canada, that he has received an educational certificate issued after December 31, 1972, by the Educational Committee on Foreign Veterinary Graduates of the American Veterinary Medical Association [.] ;

      (c) Has passed each examination required by the board pursuant to NRS 638.110; and

      (d) Is a citizen of the United States or is lawfully entitled to remain and work in the United States.

      3.  A veterinary student in his final year at a school accredited by the American Veterinarian Medical Association may submit an application to the board and take the state examination administered by the board, but the board may not issue him a license until he has complied with the requirements of subsection 2.

      4.  The application must [also] be signed by the applicant, notarized and accompanied by a fee set by the board, not to exceed [$200.

      4.] $500.

      5.  The board may refuse to issue a license upon satisfactory proof that the applicant has committed an act which would be [grounds] a ground for disciplinary action if the applicant were a licensee.

      6.  If an applicant brings a civil action against the board for denial of a license and the decision of the board is upheld, the board may recover all administrative expenses and attorney’s fees and costs incurred by the board in defending the action brought against it.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1680 (Chapter 510, SB 536)ê

 

      Sec. 18.  NRS 638.105 is hereby amended to read as follows:

      638.105  1.  The board may in its discretion license an applicant solely on the basis of oral interviews and practical demonstrations upon sufficient proof that the applicant has, within the previous 5 years, successfully passed the clinical competency examination [administered by the National Board of Veterinary Medical Examiners.] and the national board examination.

      2.  The board may, upon payment of the fee prescribed under NRS 638.100, license without examination any person who is a diplomate from an approved specialty board of the American Veterinary Medical Association. The veterinary practice of any person who is licensed pursuant to this subsection [,] is limited to the specialty in which the person is certified. If an applicant for a license under this section is denied a license, any fee or fees tendered by him may be returned to him [in] at the discretion of the board.

      Sec. 19.  NRS 638.110 is hereby amended to read as follows:

      638.110  1.  Except as otherwise provided by NRS 638.105, [the board shall examine an applicant for a license in order to determine his qualifications, and may issue or deny a license on the basis of the examination prepared by the board or the National Board of Veterinary Medical Examiners. All applicants shall be tested by a written examination which] each applicant for an initial license must pass the state examination administered by the board, the clinical competency examination and the national board examination. The board may require the applicant to complete any other examination approved by the board or the American Veterinary Medical Association.

      2.  The board shall adopt regulations prescribing the requirements for the examination of an applicant.

      3.  The written examination required of an applicant may be supplemented by oral interviews and practical demonstrations as the board [deems necessary.

      2.  If an applicant shall be denied a license as a result of such an examination, the fee tendered shall not be returned to the applicant.] considers necessary.

      4.  If the board denies an applicant a license because the applicant did not comply with the requirements of this section, the board is not required to return the fee submitted with his application.

      Sec. 20.  NRS 638.116 is hereby amended to read as follows:

      638.116  1.  Any person who desires to secure a license as a euthanasia technician must make written application to the executive [secretary] director of the board.

      2.  The application must be accompanied by satisfactory proof that the applicant:

      (a) Is of good moral character.

      (b) Is a citizen of the United States or is lawfully entitled to remain and work in the United States.

      (c) Is employed by a law enforcement agency, an animal control agency, or by a society for the prevention of cruelty to animals that is in compliance with the provisions of chapter 574 of NRS.

      (d) Has not been convicted of a felony.

      (e) Has furnished any other information required by the board.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1681 (Chapter 510, SB 536)ê

 

      3.  The application must be accompanied by a fee to be set by the board in an amount not to exceed [$200.] $500.

      Sec. 21.  NRS 638.117 is hereby amended to read as follows:

      638.117.  1.  The board shall examine every applicant for a license as a euthanasia technician in order to determine his qualifications, and may issue or deny a license on the basis of the examination. All examinees must be tested by a written examination which may be supplemented by oral interviews and practical demonstrations as the board [deems] considers necessary.

      2.  The board may waive the practical examination requirements of subsection 1 if an applicant submits to the board proof that he is licensed by an agency which the board determines has substantially equivalent examination requirements as the practical examination requirements of the board.

      Sec. 22.  NRS 638.122 is hereby amended to read as follows:

      638.122  1.  Any person who desires to secure a license as [an animal] a veterinary technician must make written application to the executive [secretary] director of the board.

      2.  The application must be accompanied by satisfactory proof that the applicant:

      (a) Is of good moral character.

      (b) [Except as provided in subsection 4, has] Has received a diploma conferring the degree of [animal technician,] veterinary technician or its equivalent after having completed a college level course at a school approved by the board.

      (c) Is a citizen of the United States or is lawfully entitled to remain and work in the United States.

      (d) Has furnished any other information required by the board.

      3.  The application must be accompanied by a fee to be set by the board in an amount not to exceed [$200.

      4.  Any person who for a period of 5 full calendar years before July 1, 1976, has been an employee of a veterinarian licensed to practice in this state may, upon presentation to the board of a certificate of the veterinarian with whom he worked certifying as to the applicant’s experience, substitute this experience for the educational requirement of paragraph (b) of subsection 2. Any person who qualifies for an examination to be certified as an animal technician who does not successfully pass the required examination or re-examination must then comply with the specified educational requirements.] $500.

      Sec. 23.  NRS 638.123 is hereby amended to read as follows:

      638.123  [The board shall examine every]

      1.  Each applicant for a license as [an animal technician in order to determine his qualifications, and may issue or deny a license on the basis of such examination. All examinees shall be tested by a written examination which may be supplemented by] a veterinary technician must pass:

      (a) The state examination administered by the board;

      (b) The national veterinary technician examination administered by the American Veterinary Medical Association; and

      (c) Any other examination required by the board which has been approved by the board or the American Veterinary Medical Association.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1682 (Chapter 510, SB 536)ê

 

      2.  The board may supplement the written examination required by this section with oral interviews and practical demonstrations as the board [deems] considers necessary.

      3.  The board shall adopt regulations prescribing the requirements for examination.

      Sec. 24.  NRS 638.124 is hereby amended to read as follows:

      638.124  1.  The board shall adopt regulations pertaining to and limiting the activities of [animal] veterinary technicians.

      2.  Regulations adopted by the board pursuant to this section do not reduce the responsibility of the licensed veterinarian for acts performed by the [animal] veterinary technician on his behalf and under his supervision and control.

      Sec. 25.  NRS 638.127 is hereby amended to read as follows:

      638.127  1.  On or before [January 1] November 15 of each year, the executive [secretary] director shall mail to each person licensed under the provisions of this chapter an application form for the renewal of his license.

      2.  Each applicant for renewal must complete the form and return it to the executive [secretary,] director, accompanied by the renewal fee and full payment of all fines which he owes to the board, on or before [March] January 1 of each year. Each application for renewal must be signed by the applicant and notarized. The renewal fee for [active] licensees and [licensees] persons on inactive status must be in an amount determined by the board.

      3.  Upon receipt of the application and payment of the renewal fee and all fines owed, the board shall issue to that person a certificate of renewal.

      4.  Any person who fails to renew his license on or before [May] March 1 of each year forfeits his license.

      5.  When a person has forfeited his license in the manner provided in subsection 4, the board may reinstate the license and issue a certificate of renewal upon payment of [the] :

      (a) The renewal fee [, all] ;

      (b) All fines owed ; and [a]

      (c) A delinquency penalty of [$10] $50 for each month or fraction thereof the license was not renewed after [March] January 1.

      6.  If a licensee does not practice for more than 12 consecutive months, the board may require him to take an examination to determine his competency before renewing his license.

      7.  If a licensee does not renew his license and he is licensed to practice in another state or territory of the United States, the board may not issue him a license to practice in the state by reciprocity. Such a licensee must reinstate his license in the manner prescribed by the board.

      Sec. 26.  NRS 638.128 is hereby amended to read as follows:

      638.128  1.  A licensed veterinarian may apply to the board to be placed on inactive status. The board may grant the application if the applicant has:

      (a) A medical disability as determined by the board;

      (b) Changed the location of his practice of veterinary medicine from this state to another state or country;

      (c) Never engaged in the practice of veterinary medicine in this state after licensure; or


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1683 (Chapter 510, SB 536)ê

 

      (d) Ceased to engage in the practice of veterinary medicine in this state for 12 consecutive months,

and, as of the date of the application, has met all requirements for the issuance or renewal of a license to practice veterinary medicine.

      2.  If the application is granted, the applicant shall not engage in the practice of veterinary medicine in this state unless he is returned to active status.

      3.  A [licensed veterinarian] person whose license has been placed on inactive status pursuant to this section is exempt from any requirements for continuing education.

      4.  The board shall adopt regulations [concerning] prescribing the:

      (a) Procedures for making an application pursuant to this section; [and]

      (b) Procedures and terms upon which a [licensed veterinarian] person whose license has been placed on inactive status may resume the practice of veterinary medicine [.] ; and

      (c) Fees for renewal of inactive status.

      Sec. 27.  NRS 638.133 is hereby amended to read as follows:

      638.133  Every veterinarian or [animal] veterinary technician licensed pursuant to this chapter shall report to the board any claim for malpractice or negligence filed against him and its disposition within 90 days after the claim is filed and after its disposition.

      Sec. 28.  NRS 638.140 is hereby amended to read as follows:

      638.140  The following acts, among others, are grounds for disciplinary action:

      1.  Violation of a regulation adopted by the state board of pharmacy or the Nevada state board of veterinary medical examiners;

      2.  Habitual drunkenness;

      3.  Addiction to the use of a controlled substance;

      4.  Conviction of or a plea of nolo contendere to a felony, or any offense involving moral turpitude;

      5.  Incompetence, gross negligence [,] or other malpractice pertaining to veterinary medicine as evidenced by [a claim of malpractice settled against] an action for malpractice in which the holder of a license [;] is found liable for damages;

      6.  Conviction of a violation of any law concerning the possession, distribution or use of a controlled substance or a dangerous drug as defined in chapter 454 of NRS; [or]

      7.  Willful failure to comply with any provision of this chapter, a regulation, subpoena or order of the board, the standard of care established by the American Veterinary Medical Association, or an order of a court [.] ;

      8.  Prescribing, administering or dispensing a controlled substance to an animal to influence the outcome of a competitive event in which the animal is a competitor;

      9.  Willful failure to comply with a request by the board for medical records within 14 days after receipt of a demand letter issued by the board;

      10.  Willful failure to accept service by mail or in person from the board;

      11.  Failure of a supervising veterinarian to provide immediate or direct supervision to licensed or unlicensed personnel if the failure results in malpractice or the death of an animal; and


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1684 (Chapter 510, SB 536)ê

 

      12.  Failure of a supervising veterinarian to ensure that a licensed veterinarian is on the premises of a facility or agency when medical treatment is administered to an animal if the treatment requires direct or immediate supervision by a licensed veterinarian.

      Sec. 29.  NRS 638.1402 is hereby amended to read as follows:

      638.1402  The following acts, among others, are grounds for disciplinary action:

      1.  Fraud or misrepresentation to secure a license;

      2.  Conspiring to commit fraud, forgery or deception in connection with an examination for a license;

      3.  Swearing falsely in any testimony or affidavit relating to or in the course of the practice of veterinary medicine; and

      4.  Engaging in any [professional] conduct likely to deceive, defraud or harm the public [.] , including the dissemination of information by a veterinarian, licensee of a facility or agency or an employee of either, concerning the services of the licensee which is false or misleading and which the person knew or should have known was false or misleading.

      Sec. 30.  NRS 638.1404 is hereby amended to read as follows:

      638.1404  The following acts, among others, are grounds for disciplinary action:

      1.  Claiming or implying professional superiority over other licensees;

      2.  Accepting money to cure permanently a manifestly incurable disease; and

      3.  [Sharing fees for services with any person except a licensed veterinarian; and

      4.  Soliciting patronage directly or by employing solicitors.] Participating in an agreement with other veterinarians or licensees of a facility or agency if:

      (a) The agreement is to split fees or provide rebates in connection with the referral of a client; and

      (b) The client has not been informed of the agreement.

      Sec. 31.  NRS 638.1406 is hereby amended to read as follows:

      638.1406  The following acts, among others, are grounds for disciplinary action:

      1.  Allowing one’s name to be used as a veterinarian or as [an animal] a veterinary technician by another person who is not licensed or permitted to practice in this state;

      2.  Having professional association with or employing any person claiming to be a veterinarian or [animal] veterinary technician unlawfully; and

      3.  Failure to report, within 30 days, the revocation of a license to practice veterinary medicine or as [an animal] a veterinary technician in another state, territory or district of the United States on grounds other than nonpayment of a fee.

      Sec. 32.  NRS 638.1413 is hereby amended to read as follows:

      638.1413  1.  The board or any of its members who becomes aware of any fact which may be any one or a combination of the grounds for initiating disciplinary action shall, and any other person who is so aware may, file with the board a verified written complaint specifying the relevant facts.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1685 (Chapter 510, SB 536)ê

 

      2.  The board may, upon its own motion, and shall, upon receipt of such a complaint, investigate the actions of any applicant for a license or any holder of a license issued pursuant to the provisions of this chapter.

      3.  The executive director shall send written notice by certified mail with return receipt requested to the person being investigated. The notice must contain the name of the person who filed the complaint against the licensee, the nature of the complaint and a request for any medical records the licensee may have relating to the complaint.

      Sec. 33.  NRS 638.1419 is hereby amended to read as follows:

      638.1419  1.  The board shall appoint one of its members to conduct the investigation of a complaint. The member conducting the investigation may request assistance from the attorney general or the executive [secretary] director of the board, and may employ investigators, professional consultants, and any other personnel necessary to conduct the investigation.

      2.  Immediately after his appointment, the member conducting the investigation shall notify the person being investigated [. The notice must] by telephone or by certified mail with return receipt requested. The member conducting the investigation shall describe the reasons for the investigation.

      Sec. 34.  NRS 638.142 is hereby amended to read as follows:

      638.142  1.  If the board has reason to believe that the conduct of any veterinarian or [animal] veterinary technician has raised a reasonable question as to his competence to practice veterinary medicine or to act as [an animal] a veterinary technician with reasonable skill and safety to animals, it may order that person to undergo a mental or physical examination or an examination testing his competence to practice veterinary medicine or to act as [an animal] a veterinary technician. The examination must be conducted by physicians or other persons designated by the board to assist it in determining the fitness of that person to practice veterinary medicine or to act as [an animal] a veterinary technician.

      2.  Every veterinarian or [animal] veterinary technician who accepts a license issued pursuant to this chapter shall be deemed to have given his consent to submit to a mental or physical examination or an examination testing his competence when directed to do so in writing by the board.

      3.  If the board directs a licensee to submit to a mental or physical examination or an examination testing his competence, the examination must be held and the results returned to the board not later than 60 days after the board issues the order.

      4.  The testimony or reports of the examining physicians or other persons designated by the board are privileged communication, except as to proceedings conducted pursuant to this chapter.

      5.  Except in extraordinary circumstances, as determined by the board, the failure of a person licensed under this chapter to submit to an examination when directed as provided in this section constitutes [grounds] a ground for the immediate suspension of his license.

      Sec. 35.  NRS 638.1423 is hereby amended to read as follows:

      638.1423  1.  If the board receives information that a veterinarian or [animal] veterinary technician is causing, allowing or maintaining any condition or activity which is an immediate threat to the welfare of an animal, it may, without a hearing, suspend his license or prohibit the use of certain procedures or any dangerous activity.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1686 (Chapter 510, SB 536)ê

 

procedures or any dangerous activity. The board shall notify the veterinarian or [animal] veterinary technician within 2 days after taking the action.

      2.  The board shall, within 14 days after notifying the veterinarian or [animal] veterinary technician, hold an informal hearing to determine if cause exists to extend the order. The veterinarian or [animal] veterinary technician may present evidence at that hearing. After the hearing the board may extend the order for no more than 60 days.

      3.  The issuance or extension of the order is not an adjudication on the merits. During the period of suspension, the board shall investigate further and if it decides it is necessary, hold a formal hearing which must take priority over any other proceeding before the board. If the board finds, after the formal hearing, that the licensee is causing, allowing or maintaining any condition or activity which is an immediate threat to the welfare of an animal, it shall issue an order stating its findings and the action taken.

      Sec. 36.  NRS 638.1426 is hereby amended to read as follows:

      638.1426  If the board issues an order summarily suspending the license of a veterinarian or [an animal] veterinary technician pending proceedings for disciplinary action, the court shall not stay that order unless the board fails to institute and determine such proceedings as promptly as practicable.

      Sec. 37.  NRS 638.1429 is hereby amended to read as follows:

      638.1429  1.  If the member of the board conducting the investigation determines that there is a reasonable basis for the complaint, he shall submit to the board a written statement of his findings.

      2.  If the member conducing the investigation determines that there is a reasonable basis for the complaint, he may:

      [1.  Prepare and sign a statement of findings and recommend]

      (a) Recommend a formal hearing. If the board agrees with [the] this recommendation it shall, by motion, fix a time and place for a hearing and so notify the person at least 20 days before the date of the hearing. The notice must include a copy of the statement of findings . [;

      2.] (b) Recommend that the board conduct an informal hearing based on the allegations in the verified complaint and the results of the investigation . [; or

      3.] (c) Submit his statement of findings to the person under investigation. If he agrees in writing to the findings of the member conducting the investigation, the board may adopt that report and take such disciplinary action as is necessary without conducting a hearing.

      Sec. 38.  NRS 638.147 is hereby amended to read as follows:

      638.147  [1.] If the board determines that any applicant for a license or any person licensed pursuant to this chapter has committed any of the acts which are grounds for disciplinary action, the board may:

      [(a)] 1.  Refuse to issue a license.

      [(b)] 2.  Refuse to renew a license.

      [(c)] 3.  Revoke a license.

      [(d)] 4.  Suspend a license for a definite period or until further order of the board.

      [(e)] 5.  Impose a fine in an amount not to exceed [$5,000] $10,000 for each act which constitutes a ground for disciplinary action.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1687 (Chapter 510, SB 536)ê

 

      [(f)] 6.  Place a licensee on probation subject to any reasonable conditions imposed by the board, including requiring courses in continuing education or a periodic or continuous review of his practice.

      [(g)] 7.  Administer a public or private reprimand.

      [(h) Limit his]

      8.  Limit the practice of the licensee to specified branches of veterinary medicine.

      [(i) Require him]

      9.  Require the licensee to take a competency examination or a mental or physical examination.

      [2.  Any money collected by the board pursuant to this section must be deposited with the state treasurer for credit to the state general fund.]

      10.  Require the licensee to pay all costs incurred by the board in taking disciplinary action against the licensee.

      Sec. 39.  NRS 638.1471 is hereby amended to read as follows:

      638.1471  1.  The board may issue to a licensee a citation which may contain an order of abatement or an order to pay an administrative fine assessed by the board when the licensee is in violation of any provision of this chapter or any regulation adopted by the board.

      2.  A citation must be in writing and describe with particularity the nature of the violation, including specific reference to the provision of law or the regulation determined to have been violated, and the amount of the fine, if any. A citation must be issued for each violation of this chapter or any regulation adopted by the board.

      3.  Where appropriate, the citation must contain an order of abatement fixing a reasonable time for abatement of the violation.

      4.  The administrative fine assessed by the board must not exceed [$2,500] $5,000 for each violation. In assessing a fine the board shall give consideration to the appropriateness of the amount of the fine with respect to such factors as the gravity of the violation, the good faith of the licensee and the history of previous violations.

      5.  A citation must inform the licensee that if he desires a hearing to contest the finding of a violation or the amount of the fine assessed, the hearing must be requested by written notice to the board within 30 days after the date of issuance of the citation. If a hearing is not requested pursuant to this section, [payment of any fine] a settlement does not constitute an admission of the violation charged [.] unless the settlement agreement stipulates to such an admission.

      6.  Failure of a licensee to pay a fine within 30 days after the date of assessment, unless the citation is being appealed, may result in disciplinary action being taken by the board. Where a citation is not contested and a fine is not paid, the full amount of the fine that is assessed must be added to the fee for renewal of the license. A license must not be renewed without payment of the renewal fee and fine.

      7.  Notwithstanding any other provision of law, where a fine is paid to satisfy an assessment based on the finding of a violation, payment of the fine constitutes a satisfactory resolution of the matter for purposes of public disclosure of the disposition of the violation.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1688 (Chapter 510, SB 536)ê

 

      8.  [Administrative fines collected pursuant to this section must be deposited with the state treasurer for credit to the state general fund.

      9.] The board may adopt regulations to carry out this section. It may also adopt regulations to establish similar provisions for the issuance of a citation to a person who is practicing veterinary medicine without a license.

      Sec. 40.  NRS 638.1473 is hereby amended to read as follows:

      638.1473  1.  Except as otherwise provided in subsection 4, all reasonable expenses incurred by the board in carrying out the provisions of this chapter must be paid from the money which it receives. No part of the salaries or expenses of the board may be paid out of the state general fund.

      2.  Except as otherwise provided in this section, all money collected by the board from the imposition of fines must be deposited with the state treasurer for credit to the state general fund. All other money received by the board must be deposited in qualified banks or savings and loan associations in this state and paid out on its order for its expenses.

      3.  The board may delegate to a hearing officer or panel its authority to take any disciplinary action pursuant to this chapter, impose and collect fines therefor and deposit the money therefrom in banks or savings and loan associations in this state.

      [2.] 4.  If a hearing officer or panel is not authorized to take disciplinary action pursuant to subsection [1] 3 and the board deposits the money collected from the imposition of fines with the state treasurer for credit to the state general fund, it may present a claim to the state board of examiners for recommendation to the interim finance committee if money is needed to pay attorney’s fees or the costs of an investigation, or both.

      Sec. 41.  NRS 638.1479 is hereby amended to read as follows:

      638.1479  If a veterinarian or [animal] veterinary technician does not agree with an order of the board imposing a sanction against him, or the information upon which the order is based, he shall submit a written statement to the board giving his position in detail, within 30 days after service of the order. The board shall review the statement, issue its decision and notify the licensee within 120 days after it receives the statement.

      Sec. 42.  NRS 638.148 is hereby amended to read as follows:

      638.148  1.  Any person against whom disciplinary action has been taken by the board is entitled to judicial review of the board’s order.

      2.  Every order of the board imposing a sanction pursuant to NRS 638.147 is effective from the date the president and executive [secretary] director certify the order until the date the order is modified or reversed by a final judgment of the court.

      3.  The district court shall give priority to a petition for judicial review of the board’s order [priority] over other civil matters which are not expressly given priority by law.

      Sec. 43.  NRS 638.1515 is hereby amended to read as follows:

      638.1515  In any proceeding before the board:

      1.  Proof of actual injury need not be established where the statement of findings charges deceptive or unethical professional conduct.

      2.  A certified copy of the record of a court or a licensing agency showing a conviction or the suspension, limitation, modification, denial or revocation of a license of a veterinarian or [animal] veterinary technician is conclusive evidence of its occurrence.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1689 (Chapter 510, SB 536)ê

 

evidence of its occurrence. A plea of nolo contendere is a conviction for the purpose of this section.

      Sec. 44.  NRS 638.152 is hereby amended to read as follows:

      638.152  The board, a veterinary society, or any person who or other organization which initiates or assists in any lawful investigation or proceeding concerning a veterinarian or [animal] veterinary technician, is immune from any civil action for that initiation or assistance or any consequential damages, if the person or organization acted without malicious intent.

      Sec. 45.  NRS 638.1551 is hereby amended to read as follows:

      638.1551  1.  In addition to any other remedy provided by law, the board, through its president or the attorney general, may apply to a court to enjoin any unprofessional conduct of a veterinarian or [animal] veterinary technician, or to limit his practice or suspend his license.

      2.  The court may issue a temporary restraining order or a preliminary injunction for such purposes:

      (a) Without proof of actual damage sustained by any person, this provision being a preventive as well as punitive measure; and

      (b) Pending proceedings for disciplinary action by the board. Such proceedings must be instituted and determined as promptly as practicable.

      Sec. 46.  NRS 638.1555 is hereby amended to read as follows:

      638.1555  Any person seeking to enjoin another person from acting as a veterinarian or [animal] veterinary technician without a license [,] need allege only that [he] the other person did, on a specified date in this state, so act without having a license.

      Sec. 47.  NRS 638.170 is hereby amended to read as follows:

      638.170  1.  Except as otherwise provided in subsections 2 and 3 [,] of this section and section 5 of this act, any person who violates any of the provisions of this chapter is guilty of a misdemeanor.

      2.  Any person who practices veterinary medicine [,] without a license issued pursuant to the provisions of this chapter [,] shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.

      3.  Any person who practices as [an animal] a veterinary technician, without a license issued pursuant to the provisions of this chapter, shall be punished by imprisonment in the county jail for not more than 1 year, or by a fine of not more than $2,000, or by both fine and imprisonment.

      Sec. 48.  (Deleted by amendment.)

      Sec. 49.  NRS 453.375 is hereby amended to read as follows:

      453.375  A controlled substance may be possessed and administered by the following persons:

      1.  A practitioner.

      2.  A physician’s assistant at the direction of his supervising physician.

      3.  A registered nurse licensed to practice professional nursing or licensed practical nurse, at the direction of a physician, dentist, podiatric physician or advanced practitioner of nursing, or pursuant to a chart order, for administration to a patient at another location.

      4.  An advanced emergency medical technician:

      (a) As authorized by regulation of:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1690 (Chapter 510, SB 536)ê

 

             (1) The state board of health in a county whose population is less than 100,000; or

             (2) A county or district board of health in a county whose population is 100,000 or more; and

      (b) In accordance with any applicable regulations of:

             (1) The state board of health in a county whose population is less than 100,000;

             (2) A county board of health in a county whose population is 100,000 or more; or

             (3) A district board of health created pursuant to NRS 439.370 in any county.

      5.  A respiratory therapist, at the direction of a physician.

      6.  A medical student or student nurse in the course of his studies at an approved college of medicine or school of professional or practical nursing, at the direction of a physician and:

      (a) In the presence of a physician or a registered nurse; or

      (b) Under the supervision of a physician or a registered nurse if the student is authorized by the college or school to administer the substance outside the presence of a physician or nurse.

A medical student or student nurse may administer a controlled substance in the presence or under the supervision of a registered nurse alone only if the circumstances are such that the registered nurse would be authorized to administer it personally.

      7.  An ultimate user or any person whom the ultimate user designates pursuant to a written agreement.

      8.  Any person designated by the head of a correctional institution.

      9.  [An animal] A veterinary technician at the direction of his supervising veterinarian.

      10.  In accordance with applicable regulations of the state board of health, an employee of a residential facility for groups, as defined in NRS 449.017, pursuant to a written agreement entered into by the ultimate user.

      Sec. 50.  NRS 453.381 is hereby amended to read as follows:

      453.381  1.  In addition to the limitations imposed by NRS 453.256, a physician, dentist or podiatric physician may prescribe or administer controlled substances only for a legitimate medical purpose and in the usual course of his professional practice, and he shall not prescribe, administer or dispense a controlled substance listed in schedule II for himself, his spouse or his children except in cases of emergency.

      2.  A veterinarian, in the course of his professional practice only, and not for use by a human being, may prescribe, possess and administer controlled substances, and he may cause them to be administered by [an animal] a veterinary technician under his direction and supervision.

      3.  A euthanasia technician, within the scope of his license, and not for use by a human being, may possess and administer sodium pentobarbital.

      4.  A pharmacist shall not fill an order which purports to be a prescription if he has reason to believe that it was not issued in the usual course of the professional practice of a physician, dentist, podiatric physician or veterinarian.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1691 (Chapter 510, SB 536)ê

 

      5.  Any person who has obtained from a physician, dentist, podiatric physician or veterinarian any controlled substance for administration to a patient during the absence of the physician, dentist, podiatric physician or veterinarian shall return to him any unused portion of the substance when it is no longer required by the patient.

      6.  A manufacturer, wholesale supplier or other person legally able to furnish or sell any controlled substance listed in schedule II shall not provide samples of such a controlled substance to registrants.

      7.  A salesman of any manufacturer or wholesaler of pharmaceuticals shall not possess, transport or furnish any controlled substance listed in schedule II.

      8.  A person shall not dispense a controlled substance in violation of a regulation adopted by the board.

      Sec. 51.  NRS 454.213 is hereby amended to read as follows:

      454.213  A drug or medicine referred to in NRS 454.181 to 454.371, inclusive, may be possessed and administered by:

      1.  A practitioner.

      2.  A physician’s assistant at the direction of his supervising physician or a licensed dental hygienist acting in the office of and under the supervision of a dentist.

      3.  A registered nurse licensed to practice professional nursing or licensed practical nurse, at the direction of a prescribing physician, dentist, podiatric physician or advanced practitioner of nursing, or pursuant to a chart order, for administration to a patient at another location.

      4.  An intermediate emergency medical technician or an advanced emergency medical technician, as authorized by regulation of the state board of pharmacy and in accordance with any applicable regulations of:

      (a) The state board of health in a county whose population is less than 100,000;

      (b) A county board of health in a county whose population is 100,000 or more; or

      (c) A district board of health created pursuant to NRS 439.370 in any county.

      5.  A respiratory therapist employed in a health care facility. The therapist may possess and administer respiratory products only at the direction of a physician.

      6.  A dialysis technician, under the direction or supervision of a physician or registered nurse only if the drug or medicine is used for the process of renal dialysis.

      7.  A medical student or student nurse in the course of his studies at an approved college of medicine or school of professional or practical nursing, at the direction of a physician and:

      (a) In the presence of a physician or a registered nurse; or

      (b) Under the supervision of a physician or a registered nurse if the student is authorized by the college or school to administer the drug or medicine outside the presence of a physician or nurse.

A medical student or student nurse may administer a dangerous drug in the presence or under the supervision of a registered nurse alone only if the circumstances are such that the registered nurse would be authorized to administer it personally.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1692 (Chapter 510, SB 536)ê

 

circumstances are such that the registered nurse would be authorized to administer it personally.

      8.  Any person designated by the head of a correctional institution.

      9.  An ultimate user or any person designated by the ultimate user pursuant to a written agreement.

      10.  A nuclear medicine technologist, at the direction of a physician and in accordance with any conditions established by regulation of the board.

      11.  A radiologic technologist, at the direction of a physician and in accordance with any conditions established by regulation of the board.

      12.  A chiropractic physician, but only if the drug or medicine is a topical drug used for cooling and stretching external tissue during therapeutic treatments.

      13.  A physical therapist, but only if the drug or medicine is a topical drug which is:

      (a) Used for cooling and stretching external tissue during therapeutic treatments; and

      (b) Prescribed by a licensed physician for:

             (1) Iontophoresis; or

             (2) The transmission of drugs through the skin using ultrasound.

      14.  In accordance with applicable regulations of the state board of health, an employee of a residential facility for groups, as defined in NRS 449.017, pursuant to a written agreement entered into by the ultimate user.

      15.  [An animal] A veterinary technician at the direction of his supervising veterinarian.

      Sec. 52.  1.  This section becomes effective upon passage and approval.

      2.  Sections 3, 13, 14, 19 and 23 of this act become effective upon passage and approval for the purpose of adopting regulations, and on January 1, 1996, for all other purposes.

      3.  Sections 1, 2, 4, 5 to 12, inclusive, 15 to 18, inclusive, 20, 21, 22 and 24 to 51, inclusive, of this act become effective on July 1, 1995.

 

________

 

 

CHAPTER 511, SB 531

Senate Bill No. 531–Committee on Judiciary

CHAPTER 511

AN ACT relating to evidence; providing a privilege for certain medical review committees; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 49 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.

      Sec. 2.  As used in sections 2 to 5, inclusive, of this act, unless the context otherwise requires, “review committee” means:

      1.  An organized committee of:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1693 (Chapter 511, SB 531)ê

 

      (a) A hospital;

      (b) An ambulatory surgical center;

      (c) A health maintenance organization;

      (d) An organization that provides emergency medical services pursuant to the provisions of chapter 450B of NRS; or

      (e) A medical facility as defined in NRS 449.0151,

which has the responsibility of evaluating and improving the quality of care rendered by the parent organization; or

      2.  A peer review committee of a medical or dental society.

      Sec. 3.  A review committee has a privilege to refuse to disclose and to prevent any other person from disclosing its proceedings and records and testimony given before it.

      Sec. 4.  1.  The privilege may be claimed by any member of the review committee, any person whose work has been reviewed by the committee or any person who has offered testimony, an opinion or documentary evidence before the committee.

      2.  The privilege is presumed to be claimed as to a particular matter unless a written waiver is signed by all persons entitled to claim the privilege as to that matter.

      3.  The privilege is not waived or lost if a person discloses information which is otherwise privileged to a governmental or regulatory agency of this state or the United States.

      Sec. 5.  There is no privilege under section 3 or 4 of this act as to:

      1.  A statement made by an applicant for staff privileges at a hospital; or

      2.  Any information available from a record required to be made available pursuant to the provisions of NRS 629.061.

      Sec. 6.  A review committee or member of a review committee may not claim the privilege created pursuant to the provisions of sections 2 to 5, inclusive, of this act in a claim of medical malpractice which was filed with a screening panel pursuant to NRS 41A.039 before October 1, 1995.

 

________

 

 

CHAPTER 512, SB 506

Senate Bill No. 506–Committee on Commerce and Labor

CHAPTER 512

AN ACT relating to interior design; regulating the practice of interior design; revising the powers and duties of the state board of architecture; changing the membership of the board; providing for the registration of registered interior designers; providing a penalty; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 623 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 9, inclusive, of this act.

      Sec. 2.  “Partition” means a wall which does not:

      1.  Support a vertical load of a structure other than its own weight;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1694 (Chapter 512, SB 506)ê

 

      2.  Separate interior areas of a structure which are designed for different uses;

      3.  Support a structure; and

      4.  Extend further than from the floor of an interior area of a structure designed for human habitation or occupancy to the ceiling of that structure.

      Sec. 3.  “Practice of interior design” means the rendering of services to enhance the quality and function of an interior area of a structure designed for human habitation or occupancy. The term includes:

      1.  An analysis of:

      (a) A client’s needs and goals for an interior area of a structure designed for human habitation or occupancy; and

      (b) The requirements for safety relating to that area;

      2.  The formulation of preliminary designs for an interior area designed for human habitation or occupancy that are appropriate, functional and esthetic;

      3.  The development and presentation of final designs that are appropriate for the alteration or construction of an interior area of a structure designed for human habitation or occupancy;

      4.  The preparation of contract documents for the alteration or construction of an interior area of a structure designed for human habitation or occupancy, including specifications for partitions, materials, finishes, furniture, fixtures and equipment;

      5.  The collaboration in the completion of a project for the alteration or construction of an interior area of a structure designed for human habitation or occupancy with professional engineers or architects registered pursuant to the provisions of Title 54 of NRS;

      6.  The preparation and administration of bids or contracts as the agent of a client; and

      7.  The review and evaluation of problems relating to the design of a project for the alteration or construction of an area designed for human habitation or occupancy during the alteration or construction and upon completion of the alteration or construction.

      Sec. 4.  “Registered interior designer” means any person who engages in the practice of interior design and holds a certificate of registration issued by the board.

      Sec. 5.  A registered interior designer may collaborate in the completion of a project for the alteration or construction of an interior area of a structure designed for human habitation or occupancy with members of not more than two of the following professions or disciplines of professional engineering:

      1.  Architecture, as that profession is regulated pursuant to the provisions of chapter 623 of NRS;

      2.  Electrical engineering, as that discipline is regulated pursuant to the provisions of chapter 625 of NRS;

      3.  Mechanical engineering, as that discipline is regulated pursuant to the provisions of chapter 625 of NRS; and

      4.  Structural engineering, as that discipline is regulated pursuant to the provisions of chapter 625 of NRS.

      Sec. 6.  An architect or a residential designer who is registered pursuant to the provisions of this chapter is not required to obtain a certificate of registration to practice interior design.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1695 (Chapter 512, SB 506)ê

 

      Sec. 7.  1.  Any person who furnishes information concerning an applicant for registration or a holder of a certificate of registration in good faith and without malicious intent is immune from any civil action for furnishing that information.

      2.  The board, any member, employee or committee of the board, counsel, investigator, expert, hearing officer, registrant or other person who assists the board in the investigation or prosecution of an alleged violation of a provision of this chapter, a proceeding concerning licensure or reissuance of a license or a criminal prosecution is immune from any civil liability for:

      (a) Any decision or action taken in good faith and without malicious intent in response to information acquired by the board.

      (b) Disseminating information concerning an applicant for registration or a registrant to any other licensing board, national association of registered boards, an agency of the Federal Government or of the state, the attorney general or any law enforcement agency.

      Sec. 8.  In addition to any other civil penalty provided by law, a person who violates any provision of this chapter or any regulation adopted by the board is subject to a civil penalty of not more than $10,000 for each violation. Any such penalty must be imposed by the board at a hearing for which notice has been given pursuant to NRS 623.280.

      Sec. 9.  1.  An applicant for a certificate of registration to practice interior design must be of good moral character and submit to the board:

      (a) An application on a form provided by the board;

      (b) The fees required pursuant to NRS 623.310;

      (c) Proof which is satisfactory to the board that he has completed:

             (1) At least 5 years of education in a program of interior design or an equivalent number of credits and at least 1 year of experience in interior design;

             (2) At least 4 years of education in a program of interior design or an equivalent number of credits and at least 2 years of experience in interior design;

             (3) At least 3 years of education in a program of interior design or an equivalent number of credits and at least 3 years of experience in interior design;

             (4) At least 2 years of education in a program of interior design or an equivalent number of credits and at least 4 years of experience in interior design; or

             (5) At least 6 consecutive years of experience in the practice of interior design; and

      (d) A certificate issued by the National Council for Interior Design Qualification as proof that he has passed the examination prepared and administered by that organization.

      2.  Each program of interior design must be accredited by the Foundation for Interior Design Education Research or approved by the board.

      3.  The board shall, by regulation, adopt the standards of the National Council for Interior Design Qualification for the experience and equivalent credits required pursuant to subsection 1 as those standards exist on the date of the adoption of the regulation.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1696 (Chapter 512, SB 506)ê

 

      4.  Any application submitted to the board may be denied for any violation of the provisions of this chapter.

      Sec. 10.  NRS 623.015 is hereby amended to read as follows:

      623.015  An used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 623.017 to 623.027, inclusive, and sections 2, 3 and 4 of this act have the meanings ascribed to them in those sections.

      Sec. 11.  NRS 623.019 is hereby amended to read as follows:

      623.019  “Board” means the state board of architecture [.] , interior design and residential design.

      Sec. 12.  NRS 623.021 is hereby amended to read as follows:

      623.021  “Certificate of registration” means the certificate of registration issued by the board to [an] :

      1.  An architect [or to a] ;

      2.  A registered interior designer; or

      3.  A residential designer.

      Sec. 13.  NRS 623.023 is hereby amended to read as follows:

      623.023  The “practice of architecture” consists of [holding out to the public, and rendering or offering to render,] rendering services embracing the scientific, esthetic and orderly coordination of processes which enter into the production of a completed structure which has as its principal purpose human habitation or occupancy, [and] or the utilization of space within and surrounding the structure, performed through the medium of plans, specifications, administration of construction, preliminary studies, consultations, evaluations, investigations, contract documents and advice and direction.

      Sec. 14.  NRS 623.025 is hereby amended to read as follows:

      623.025  The “practice of residential design” consists of [holding out to the public, or rendering or offering to render,] rendering services embracing the scientific, esthetic or orderly coordination of processes which enter into the production of completed single-family dwelling units and multifamily dwelling structures [not exceeding] that do not exceed two stories in height [,] and are composed of not more than four units in each structure, [and] or the utilization of space within and surrounding [such] those units or structures, performed through the medium of plans, specifications, administration of construction, preliminary studies, consultations, evaluations, investigations, contract documents and advice and direction.

      Sec. 15.  NRS 623.050 is hereby amended to read as follows:

      623.050  1.  The state board of architecture, interior design and residential design, consisting of [seven] nine members appointed by the governor, is hereby created.

      2.  The governor shall appoint:

      (a) Five members who are registered architects and have been in the active practice of architecture in the State of Nevada for not less than 3 years preceding their appointment.

      (b) One member who is a registered residential designer.

      (c) Two members who are registered interior designers and who are not registered architects or residential designers.

      (d) One member who is a representative of the general public.

      3.  Members of the board must have been residents of the state for not less than 2 years preceding their appointment.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1697 (Chapter 512, SB 506)ê

 

      4.  The governor may, upon bona fide complaint, and for good cause shown, after 10 days’ notice to any member against whom charges may be filed, and after opportunity for hearing, remove the member for inefficiency, neglect of duty or malfeasance in office.

      5.  The member who is a residential designer shall not participate in the investigation or acceptance of his application or in the grading or certification of his examination.

      6.  The members who are registered interior designers shall not participate in the investigation or acceptance of their applications or in the grading or certification of their examinations.

      Sec. 16.  NRS 623.100 is hereby amended to read as follows:

      623.100  1.  The board shall appoint one of its members as chairman, who shall serve without additional pay, and one of its members as secretary and treasurer. The chairman and secretary shall each serve 1 year.

      2.  Five members of the board constitute a quorum , [for consideration of architectural matters,] but action shall not be deemed to have been taken upon any question [relating to architectural matters] unless there are at least [3] 4 votes in accord.

      [3.  Four members, one of whom is a residential designer, constitute a quorum for consideration of matters relating to residential design, but action shall not be deemed to have been taken upon any question relating thereto unless there are at least 3 votes in accord.]

      Sec. 17.  NRS 623.131 is hereby amended to read as follows:

      623.121  1.  Except as otherwise provided in [subsection 2,] subsections 2, 3 and 4, the records of the board which relate to:

      (a) An employee of the board;

      (b) An examination given by the board; or

      (c) Complaints and charges filed with the board and the material compiled as a result of its investigation of those complaints and charges,

are confidential.

      2.  The records described in subsection 1 may be disclosed, pursuant to procedures established by regulation of the board, to a court or an agency of the Federal Government, any state, any political subdivision of this state or any other related professional board or organization.

      3.  Upon completion of an investigation by the board, any records of the board described in paragraph (c) of subsection 1 are public records only if:

      (a) Disciplinary action is imposed by the board as a result of the investigation; or

      (b) The person regarding whom the investigation was made submits a written request to the board requesting that the records be made public records.

      4.  The board may report to other related professional boards and organizations an applicant’s score on an examination given by the board.

      Sec. 18.  NRS 623.135 is hereby amended to read as follows:

      623.135  The board may employ an executive director, legal counsel, investigators, professional consultants and other employees necessary to the discharge of its duties, and may fix the compensation therefor.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1698 (Chapter 512, SB 506)ê

 

      Sec. 19.  NRS 623.145 is hereby amended to read as follows:

      623.145  1.  Subject to the limitations imposed by subsections 2 [and 3,] , 3 and 4, the board shall adopt codes of ethics consistent with the constitution and laws of this state binding upon persons registered pursuant to the provisions of this chapter. Such codes of ethics must have as their only purpose the maintenance of a high standard of integrity, dignity and professional responsibility by members of the profession.

      2.  The board shall prepare the code of ethics for architects. Before the adoption of the code, a copy must be sent to every [resident] registered architect [. The] in this state. Those architects may vote on each item in the proposed code. The board may adopt each item unless 25 percent or more of the [resident] registered architects in this state vote against that item.

      3.  The board shall prepare the code of ethics for residential designers. Before the adoption of the code, a copy must be sent to every [resident] registered residential designer [. The] in this state. Those residential designers may vote on each item in the proposed code. The board may adopt each item unless 25 percent or more of the [resident] registered residential designers in this state vote against that item.

      4.  The board shall prepare the code of ethics for registered interior designers. Before the adoption of the code, a copy must be sent to each registered interior designer in this state. Those registered interior designers may vote on each item in the proposed code. The board may adopt each item unless 25 percent or more of the registered interior designers in this state vote against that item.

      Sec. 20.  NRS 623.170 is hereby amended to read as follows:

      623.170  All expenses incurred by the board must be paid on claims signed by [the secretary] :

      1.  Two members of the board; or

      2.  The executive director and one other member of the board.

      Sec. 21.  NRS 623.180 is hereby amended to read as follows:

      623.180  1.  No person may practice [architecture,] :

      (a) Architecture or use the title of architect [, or practice residential] ;

      (b) Residential design [,] or use the title of residential designer [,] ; or

      (c) Interior design or use the title of registered interior designer,

in this state without having a [current] certificate of registration issued to him [under] pursuant to the provisions of this chapter.

      2.  Whenever the requirements for registration [under] pursuant to the provisions of this chapter have been fully complied with and fulfilled by an applicant, the board shall issue to the successful applicant a certificate as a registered architect , registered interior designer or residential designer. If the certificate [is to] will be issued after the beginning of a biennium, the applicant shall pay the full fee which is prescribed.

      3.  The certificate is synonymous with registration with a serial number and seal. Any person who is issued a certificate may practice architecture , interior design or residential design in this state, subject to the provisions of this chapter and the regulations of the board.

      4.  The unauthorized use or display of a certificate of registration is unlawful.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1699 (Chapter 512, SB 506)ê

 

      Sec. 22.  NRS 623.182 is hereby amended to read as follows:

      623.182  1.  A person who is not registered to practice architecture in this state may hold himself out as an architect for the purposes of presenting a proposal for professional services or his qualifications as an architect in this state if:

      (a) He is requested to do so by a client or a prospective client in this state;

      (b) He holds a certificate issued by the National Council of Architectural Registration Boards; and

      (c) He has been issued a temporary certificate of registration.

      2.  Upon receiving from a client or prospective client a request that he present a proposal for professional services or his qualifications as an architect, a person who is not registered to practice architecture in this state shall immediately send written notification to the client or prospective client explaining that he is not registered as an architect in this state and that he is unable to ensure that the board will issue to him a certificate of registration to practice architecture in this state.

      3.  To apply for a temporary certificate of registration, a person must submit to the board:

      (a) An application, in such form and content as the board may prescribe;

      (b) A copy of a letter from the client or prospective client requesting that the person present a proposal for professional services or his qualifications as an architect;

      (c) The fee for a temporary certificate of registration required by the board pursuant to NRS 623.310; and

      (d) A copy of the written notification required pursuant to subsection 2.

      4.  The board may issue a temporary certificate if at least one member of the board approves the application for that certificate.

      5.  The board shall not issue more than three temporary certificates of registration to the same person.

      [5.] 6.  A temporary certificate of registration expires 90 days after it has been issued.

      Sec. 23.  NRS 623.185 is hereby amended to read as follows:

      623.185  1.  Upon being issued a certificate of registration, each registered architect , registered interior designer or residential designer shall obtain a seal of the design authorized by the board, bearing the architect’s [or] , registered interior designer’s or residential designer’s name, the number of his certificate of registration, and the legend “Registered [Architect”] Architect,” “Registered Interior Designer” or “Residential Designer.”

      2.  Plans, specifications, reports and other documents issued by a registered architect , registered interior designer or residential designer for official use must be signed, sealed and dated on the title page by the architect or designer.

      3.  It is unlawful for a person to stamp or seal any plans, specifications, reports or other documents with the seal after the certificate of registration of the architect , registered interior designer or residential designer, named therein, has expired or has been suspended or revoked, unless the certificate has been renewed or reissued.

      4.  Any plan, drawing, specification or other document prepared by a registered interior designer must contain a statement that the plan, study, drawing, specification or other document was prepared by a registered interior designer registered pursuant to the provisions of this chapter.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1700 (Chapter 512, SB 506)ê

 

drawing, specification or other document was prepared by a registered interior designer registered pursuant to the provisions of this chapter.

      Sec. 24.  NRS 623.200 is hereby amended to read as follows:

      623.200  1.  Upon complying with the requirements set forth in NRS 623.190 and before receiving a certificate or being registered as an architect, the applicant shall pass an examination in such technical and professional courses as may be established by the board, unless the applicant has applied for the certificate and registration without examination as provided in this chapter.

      2.  Upon complying with the applicable requirements of this chapter and passing the examination, an applicant is entitled to be registered as a residential designer and receive a certificate of registration. A person may not be simultaneously registered as an architect and residential designer.

      3.  Upon complying with the requirements set forth in section 9 of this act and before receiving a certificate or being registered as a registered interior designer, the applicant shall pass an examination in such technical and professional courses as may be established by the board.

      4.  The board shall give examinations at least once each year, unless no applications for examinations are pending with the board.

      Sec. 25.  NRS 623.210 is hereby amended to read as follows:

      623.210  The board may, in lieu of all examinations [,] for a certificate of registration to practice architecture or residential design, accept satisfactory evidence of registration [and certification] as an architect in another jurisdiction where the qualifications required are equal to those required in this chapter at the date of application. The board may require, as satisfactory evidence of [such registration and certification,] that registration, a certificate of the National Council of Architectural Registration Boards.

      Sec. 26.  NRS 623.220 is hereby amended to read as follows:

      623.220  1.  The board shall issue a certificate of registration as an architect or a residential designer upon payment of a registration fee [, as provided for in this chapter,] pursuant to NRS 623.310 to any applicant who complies with the provisions of NRS 623.190 and passes the examinations, or in lieu thereof brings himself within the provisions of NRS 623.210.

      2.  The board shall issue a certificate of registration to practice interior design upon payment of a registration fee pursuant to NRS 623.310 to any applicant who complies with the provisions of NRS 623.200 and section 9 of this act.

      3.  Certificates of registration must show the full name of the registrant, have a serial number, and be signed by the chairman and the secretary of the board under seal of the board. The issuance of a certificate of registration by the board is evidence that the person named therein is entitled to all the rights and privileges of [a registered professional architect or] an architect, registered interior designer or residential designer while the certificate remains unsuspended, unrevoked and unexpired.

      Sec. 27.  NRS 623.230 is hereby amended to read as follows:

      623.230  The secretary of the board shall keep an official register of all certificates of registration to practice architecture , interior design or residential design issued [under] and renewed pursuant to the provisions of this chapter . [, and of the renewals of the same as provided for in this chapter.]


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1701 (Chapter 512, SB 506)ê

 

The register [shall] must be properly indexed and [shall be] open for public inspection and information.

      Sec. 28.  NRS 623.250 is hereby amended to read as follows:

      623.250  1.  Each architect , registered interior designer or residential designer [holding] who holds a certificate of registration [under] pursuant to the provisions of this chapter shall, before or during the month of December of each year preceding a biennium during which he desires to continue the practice of architecture , interior design or residential design, submit a renewal fee [provided for by] pursuant to the provisions of this chapter, for a renewal of the certificate.

      2.  Upon receipt of the renewal fee, the secretary of the board shall execute and issue a certificate renewal card to the applicant, certifying that his certificate of registration is renewed for the term of a biennium. The certificate renewal card must bear a serial number and the signature or a facsimile thereof of the secretary of the board or the executive director and must [be sealed with] bear the seal of the board.

      3.  The renewal must be recorded, together with its serial number, by the secretary of the board in the official register of the board [as provided for in] pursuant to NRS 623.230.

      Sec. 29.  NRS 623.270 is hereby amended to read as follows:

      623.270  1.  The board may place the holder of any certificate of registration issued pursuant to this chapter on probation, reprimand him, fine him not more than $10,000, suspend or revoke his license, impose the costs of investigation and prosecution upon him or take any combination of these disciplinary actions, if proof satisfactory to the board is presented that:

      (a) The certificate was obtained by fraud or concealment of a material fact.

      (b) The holder of the certificate has been found guilty by the board or by a court of justice of any fraud, deceit or concealment of a material fact in his professional practice, or has been convicted by a court of justice of a crime involving moral turpitude.

      (c) The holder of the certificate has been found guilty by the board of incompetency, negligence or gross negligence in the practice of architecture , interior design or residential design.

      (d) The holder of a certificate has affixed his signature or seal to plans, drawings, specifications or other instruments of service which have not been prepared by him or in his office, or under his direct supervision, or has permitted the use of his name to assist any person who is not a registered architect , registered interior designer or residential designer to evade any provision of this chapter.

      (e) The holder of a certificate has aided or abetted any unauthorized person to practice architecture , interior design or residential design.

      (f) The holder of the certificate has violated any law, regulation or [rule] code of ethics pertaining to the practice of architecture , interior design or residential design.

      (g) The holder of a certificate has failed to comply with an order issued by the board [.] or has failed to cooperate with an investigation conducted by the board.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1702 (Chapter 512, SB 506)ê

 

If discipline is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorney’s fees, may be recovered by the board.

      2.  [Conditions] The conditions for probation imposed pursuant to subsection 1 may include, but are not limited to:

      (a) Restriction on the scope of professional practice.

      (b) Peer review.

      (c) Required education or counseling.

      (d) Payment of restitution to all parties who suffered harm or loss.

      (e) Payment of all costs of the administrative investigation and prosecution.

      3.  As used in this section:

      (a) “Gross negligence” means [the intentional failure to perform a duty in] conduct which demonstrates a reckless disregard of the consequences affecting the life or property of another person.

      (b) “Incompetency” means conduct which, in the practice [of the profession] of architecture , interior design or residential design, demonstrates a significant lack of ability, knowledge or fitness to discharge a professional obligation.

      (c) “Negligence” means a deviation from the normal standard of professional care exercised generally by other members of the [profession.] professions of architecture, interior design or residential design.

      Sec. 30.  NRS 623.280 is hereby amended to read as follows:

      623.280  Proceedings for the revocation of a certificate of registration to practice architecture , interior design or residential design must be preceded by a 30-day written notice of the charges filed with the board. The board shall file a written report of its findings in the record of its proceedings and a copy of the report must be sent to the accused.

      Sec. 31.  NRS 623.290 is hereby amended to read as follows:

      623.290  If the guilt of the accused is established in the opinion of the majority of the board, the secretary shall make proper entry in the record of its proceedings, stating the findings of the board and the penalty, if any. If the registration of an architect , registered interior designer or residential designer is suspended or revoked, or he is given a written reprimand, notation of the penalty must be entered in the register of architects , register of registered interior designers or register of residential designers and in his personnel file. Notification of the suspension, revocation or written reprimand must be sent to the National Council of Architectural Registration Boards [.] or the National Council for Interior Design Qualification, as appropriate. The secretary shall give notice in writing of the decision and penalty to the holder of the certificate.

      Sec. 32.  NRS 623.330 is hereby amended to read as follows:

      623.330  1.  The following persons are exempt from the provisions of this chapter:

      (a) A person engaging in architectural work as an employee of a registered architect or residential designer, if the work does not include responsible charge of design or supervision, or a consultant retained by a registered architect or residential designer.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1703 (Chapter 512, SB 506)ê

 

      (b) A person hired by the Federal Government to practice architecture on federal land.

      (c) A professional engineer registered [under] pursuant to the provisions of chapter 625 of NRS who designs buildings as permitted by chapter 625 of NRS.

      (d) A contractor licensed [under] pursuant to the provisions of chapter 624 of NRS who provides his own drawings for his own construction activities.

      (e) Any person who prepares plans, drawings or specifications for:

             (1) Buildings for his own private residential use; or

             (2) Farm or ranch buildings used as such.

      (f) A person engaging in work related to interior design as an employee of a registered interior designer, if the work does not include responsible charge of interior design or supervision, or a consultant retained by a registered interior designer.

      (g) Any person who prepares drawings of the layout of materials or furnishings used in interior design or provides assistance in the selection of materials or furnishings used in interior design, including, without limitation:

             (1) Decorative accessories;

             (2) Wallpaper, wallcoverings or paint;

             (3) Linoleum, tile, carpeting or floor coverings;

             (4) Draperies, blinds or window coverings;

             (5) Lighting which is not part of a structure;

             (6) Plumbing fixtures which are not part of a structure; and

             (7) Furniture or equipment,

if the preparation or implementation of those drawings or the installation of those materials or furnishings is not regulated by any building code or other law, ordinance, rule or regulation governing the alteration or construction of a structure.

      2.  Any person exempted by the provisions of this section is not thereby absolved from any civil or criminal liability that might otherwise accrue.

      3.  The exemptions provided by this section do not entitle any person who does not hold a [current] certificate of registration to hold himself out to the public or advertise himself as an architect , registered interior designer or residential designer.

      Sec. 33.  NRS 623.350 is hereby amended to read as follows:

      623.350  1.  [Nothing in this chapter prevents] This chapter does not prevent firms, partnerships, corporations or associations of architects, registered interior designers, professional engineers and landscape architects, or any combination thereof, from practicing as such, if each director, stockholder and officer of the corporation and each partner or associate of the firm, partnership or association is registered [under] pursuant to the applicable provisions of this chapter, chapter 623A or chapter 625 of NRS.

      2.  Every office or place of business of any firm, partnership, corporation or association engaged in the practice of architecture must have an architect who is a resident of this state and holds a certificate of registration issued pursuant to this chapter regularly working in the office or place of business and directly responsible for the administration of the architectural work conducted in the office or place of business.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1704 (Chapter 512, SB 506)ê

 

      3.  The provisions of subsection 2 do not apply to firms, partnerships, corporations or associations engaged in the practice of architecture at offices established for construction administration.

      Sec. 34.  NRS 623.360 is hereby amended to read as follows:

      623.360  1.  It is unlawful for any person to:

      (a) Hold himself out to the public or to solicit business as an architect , registered interior designer or residential designer in this state without having a certificate of registration or temporary certificate issued by the board;

      (b) Advertise or put out any sign, card or other device which indicates to the public that he is an architect , registered interior designer or residential designer or that he is otherwise qualified to engage in the practice of architecture , interior design or residential design without having a certificate of registration issued by the board;

      (c) Engage in the practice of architecture , interior design or residential design without a certificate of registration issued by the board; or

      (d) Violate any other provision of this chapter.

      2.  Any person who violates any of the provisions of subsection 1:

      (a) For the first violation, is guilty of a misdemeanor and shall be punished by a fine of not less than $500 nor more than $1,000, and may be further punished by imprisonment in the county jail for not more than 6 months.

      (b) For the second or any subsequent violation, is guilty of a gross misdemeanor and shall be punished by a fine of not less than $1,000 nor more than $2,000, and may be further punished by imprisonment in the county jail for not more than 1 year.

      3.  If any person has engaged or is about to engage in any acts or practices which constitute or will constitute an offense against this chapter, the district court of any county, on application of the board, may issue an injunction or other appropriate order restraining such conduct. Proceedings pursuant to this subsection are governed by Rule 65 of the Nevada Rules of Civil Procedure, except that no bond or undertaking is required in any action commenced by the board.

      Sec. 35.  NRS 89.050 is hereby amended to read as follows:

      89.050  1.  Except as otherwise provided in subsection 2, a professional corporation may be organized only for the purpose of rendering one specific type of professional service and may not engage in any business other than rendering the professional service for which it was organized and services reasonably related thereto, except that a professional corporation may own real and personal property appropriate to its business and may invest its funds in any form of real property, securities or any other type of investment.

      2.  A professional corporation may be organized to render a professional service relating to:

      (a) Architecture, interior design, engineering and landscape architecture, or any combination thereof, and may be composed of persons engaged in the practice of architecture or interior design as provided in chapter 623 of NRS, persons engaged in the practice of landscape architecture as provided in chapter 623A of NRS and persons engaged in the practice of professional engineering as provided in chapter 625 of NRS.

      (b) Medicine, homeopathy and osteopathy, and may be composed of persons engaged in the practice of medicine as provided in chapter 630 of NRS, persons engaged in the practice of osteopathic medicine as provided in chapter 633 of NRS.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1705 (Chapter 512, SB 506)ê

 

persons engaged in the practice of osteopathic medicine as provided in chapter 633 of NRS. Such a professional corporation may market and manage additional professional corporations which are organized to render a professional service relating to medicine, homeopathy and osteopathy.

      3.  A professional corporation may render a professional service only through its officers and employees, all of whom must be authorized to render that professional service.

      Sec. 36.  Section 9 of this act is hereby amended to read as follows:

       Sec. 9.  1.  An applicant for a certificate of registration to practice interior design must be of good moral character and submit to the board:

       (a) An application on a form provided by the board;

       (b) The fees required pursuant to NRS 623.310;

       (c) Proof which is satisfactory to the board that he has completed:

             (1) At least 5 years of education in a program of interior design or an equivalent number of credits and at least 1 year of experience in interior design or residential interior design; or

             (2) At least 4 years of education in a program of interior design or an equivalent number of credits and at least 2 years of experience in interior design or residential interior design;

             [(3) At least 3 years of education in a program of interior design or an equivalent number of credits and at least 3 years of experience in interior design or residential interior design;

             (4) At least 2 years of education in a program of interior design or an equivalent number of credits and at least 4 years of experience in interior design or residential interior design; or

             (5) At least 6 consecutive years of experience in the practice of interior design or residential interior design;] and

       (d) A certificate issued by the National Council for Interior Design Qualification as proof that he has passed the examination prepared and administered by that organization.

       2.  Each program of interior design must be accredited by the Foundation for Interior Design Education Research or approved by the board.

       3.  The board shall, by regulation, adopt the standards of the National Council for Interior Design Qualification for the experience and equivalent credits required pursuant to subsection 1 as those standards exist on the date of the adoption of the regulation.

       4.  Any application submitted to the board may be denied for any violation of the provisions of this chapter.

      Sec. 37.  NRS 623.110 and 623.295 are hereby repealed.

      Sec. 38.  Notwithstanding the amendatory provisions of NRS 623.360, a person who engages in the practice of interior design is not required to hold a certificate of registration to practice interior design pursuant to the provisions of this act before January 1, 1998.

      Sec. 39.  The state board of architecture, interior design and residential design shall issue a certificate of registration to practice interior design to any person who:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1706 (Chapter 512, SB 506)ê

 

      1.  Submits to the board, not later than December 31, 1999, a form prescribed by the board declaring his intention to apply for a certificate of registration to practice interior design;

      2.  Is of good moral character and submits to the board, not later than December 31, 2004:

      (a) An application on a form provided by the board;

      (b) The fees required pursuant to NRS 623.310;

      (c) Proof which is satisfactory to the board that he has completed at least 2 years of education in a program of interior design or an equivalent number of credits and at least 4 years of experience in interior design or residential interior design; and

      (d) A certificate issued by the National Council for Interior Design Qualification as proof that he has passed the examination prepared and administered by that organization; and

      3.  Complies with the requirements of subsection 3 of NRS 623.200 not later than December 31, 2004.

      Sec. 40.  As soon as practicable after July 1, 1995, the governor shall appoint to the state board of architecture, interior design and residential design:

      1.  One member who is eligible for registration to practice interior design whose term begins on October 1, 1995, and expires on September 30, 1997.

      2.  One member who is eligible for registration to practice interior design whose term begins on October 1, 1995, and expires on September 30, 1998.

      Sec. 41.  1.  This section and section 40 of this act become effective on July 1, 1995.

      2.  Sections 1 to 14, inclusive, 17 and 18, 20 to 34, inclusive, and 37, 38, 39 and 42 of this act become effective on October 1, 1995.

      3.  Sections 15, 16, 19 and 35 of this act become effective at 12:01 a.m. on October 1, 1995.

      4.  Section 36 of this act becomes effective on January 1, 2000.

      Sec. 42.  The legislative counsel shall:

      1.  In preparing the reprint and supplements to the Nevada Revised Statutes, with respect to any section which is not amended by this act or is further amended by another act, appropriately change any reference to the “state board of architecture” to the “state board of architecture, interior design and residential design.”

      2.  In preparing supplements to the Nevada Administrative Code, appropriately change any reference to the “state board of architecture” to the “state board of architecture, interior design and residential design.”

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1707ê

 

CHAPTER 513, SB 482

Senate Bill No. 482–Committee on Judiciary

CHAPTER 513

AN ACT relating to attorneys; authorizing a court to require an attorney to pay the additional costs, expenses and fees that are reasonably incurred as a result of certain actions taken by the attorney in a civil action or proceeding; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 7 of NRS is hereby amended by adding thereto a new section to read as follows:

      If a court finds that an attorney has:

      1.  Filed, maintained or defended a civil action or proceeding in any court in this state and such action or defense is not well-grounded in fact or is not warranted by existing law or by an argument for changing the existing law that is made in good faith; or

      2.  Unreasonably and vexatiously extended a civil action or proceeding before any court in this state,

the court may require the attorney personally to pay the additional costs, expenses and attorney’s fees reasonably incurred because of such conduct.

      Sec. 2.  The amendatory provisions of this act apply to any civil action or proceeding filed on or after October 1, 1995.

 

________

 

 

CHAPTER 514, SB 468

Senate Bill No. 468–Committee on Finance

CHAPTER 514

AN ACT relating to the judiciary; providing for certain post-retirement increases in the benefits of surviving spouses of supreme court justices and district court judges; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 2.070 is hereby amended to read as follows:

      2.070  1.  If a justice of the supreme court at the time of his death had retired and was then receiving a pension under the provisions of NRS 2.060, or if at the time of his death the justice had not retired but had performed sufficient service for retirement under the provisions of NRS 2.060, the surviving spouse, if the spouse has attained the age of 60 years, is entitled, until his death or remarriage, to receive monthly payments of $2,000 per month.

      2.  If a surviving spouse of a justice is not eligible to receive benefits pursuant to subsection 1, he is entitled, until his death or remarriage or until he becomes eligible to receive those benefits, to receive payments equal in amount to the payment provided in subsection 1 of NRS 286.674 for the spouse of a deceased member of the public employees’ retirement system.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1708 (Chapter 514, SB 468)ê

 

he becomes eligible to receive those benefits, to receive payments equal in amount to the payment provided in subsection 1 of NRS 286.674 for the spouse of a deceased member of the public employees’ retirement system.

      3.  To obtain these benefits, the surviving spouse must make application to the board, commission or authority entrusted with the administration of the judges’ pensions and furnish such information as may be required pursuant to reasonable regulations adopted for the purpose of carrying out the intent of this section.

      4.  Any person receiving a benefit pursuant to the provisions of this section is entitled to receive post-retirement increases equal to those provided for persons retired under the public employees’ retirement system.

      5.  It is the intent of this section that no special fund be created for the purpose of paying these benefits, and all payments made under the provisions of this section are to be made out of and charged to any fund created for the purpose of paying pension benefits to justices of the supreme court.

      Sec. 2.  NRS 3.095 is hereby amended to read as follows:

      3.095  1.  If a district judge at the time of his death had retired and was then receiving a pension under the provisions of NRS 3.090, or if at the time of his death the judge had not retired but had performed sufficient service for retirement under the provisions of NRS 3.090, the surviving spouse, if the spouse has attained the age of 60 years, is entitled, until his death or remarriage, to receive monthly payments of $2,000 per month.

      2.  If a surviving spouse of a judge is not eligible to receive benefits pursuant to subsection 1, he is entitled, until his death or remarriage or until he becomes eligible to receive those benefits, to receive payments equal in amount to the payment provided in subsection 1 of NRS 286.674 for the spouse of a deceased member of the public employees’ retirement system.

      3.  To obtain these benefits, the surviving spouse must make application to the board, commission or authority entrusted with the administration of the judges’ pensions and furnish such information as may be required pursuant to reasonable regulations adopted for the purpose of carrying out the intent of this section.

      4.  Any person receiving a benefit pursuant to the provisions of this section is entitled to receive post-retirement increases equal to those provided for persons retired under the public employees’ retirement system.

      5.  It is the intent of this section that no special fund be created for the purpose of paying these benefits, and all payments made under the provisions of this section are to be made out of and charged to any fund created for the purpose of paying pension benefits to district judges.

      Sec. 3.  The amendatory provisions of this act, which provide for certain post-retirement increases in the benefits of surviving spouses of supreme court justices and district court judges, apply only to payments of benefits made on or after July 1, 1995.

      Sec. 4.  This act becomes effective on July 1, 1995.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1709ê

 

CHAPTER 515, SB 463

Senate Bill No. 463–Committee on Judiciary

CHAPTER 515

AN ACT relating to local facilities for detention; requiring notice to an operator of a jail and the opportunity to be heard before the issuance of a court order affecting the conditions of confinement of a prisoner; requiring a prisoner to cooperate with officers attempting to collect costs incurred for the prisoner’s medical care; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 211.140 is hereby amended to read as follows:

      211.140  1.  The sheriff of each county has charge and control over all prisoners committed to his care in the respective county jails, and the chiefs of police and town marshals in the several cities and towns throughout this state have charge and control over all prisoners committed to their respective city and town jails and detention facilities.

      2.  A court shall not, at the request of any prisoner in a county, city or town jail, issue an order which affects the conditions of confinement of the prisoner unless, except as otherwise provided in this subsection, the court provides the sheriff, chief of police or town marshal having control over the prisoner with:

      (a) Sufficient prior notice of the court’s intention to enter the order. Notice by the court is not necessary if the prisoner has filed an action with the court challenging his conditions of confinement and has served a copy of the action on the sheriff, chief of policy or town marshal.

      (b) An opportunity to be heard on the issue.

As used in this subsection, “conditions of confinement” includes, but is not limited to, a prisoner’s access to the law library, privileges regarding visitation and the use of the telephone, the type of meals provided to the prisoner and the provision of medical care in situations which are not emergencies.

      3.  The sheriffs, chiefs of police and town marshals shall see that the prisoners under their care are kept at labor for reasonable amounts of time within the jail or detention facility, on public works in the county, city or town, or as part of a program of release for work established pursuant to NRS 211.120 or 211.171 to 211.200, inclusive.

      [3.] 4.  The sheriff, chief of police or town marshal shall arrange for the administration of medical care required by prisoners [committed to] while in his custody. The county, city or town shall pay the cost of appropriate medical:

      (a) Treatment provided to a prisoner while in custody for injuries incurred by a prisoner while he is in custody and for injuries incurred during his arrest for commission of a public offense if he is not convicted of that offense;

      (b) Treatment provided to a prisoner while in custody for any infectious, contagious or communicable disease which the prisoner contracts while he is in custody; and

      (c) Examinations required by law or by court order conducted while the prisoner is in custody unless the order otherwise provides.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1710 (Chapter 515, SB 463)ê

 

      [4.] 5.  A prisoner shall pay the cost of medical treatment for:

      (a) Injuries incurred by the prisoner during his commission of a public offense or for injuries incurred during his arrest for commission of a public offense if he is convicted of that offense;

      (b) Injuries or illnesses which existed before the prisoner was taken into custody;

      (c) Self-inflicted injuries; and

      (d) Except treatment provided pursuant to subsection [3,] 4, and other injury or illness incurred by the prisoner.

      [5.] 6.  A medical facility furnishing treatment pursuant to subsection [4] 5 shall attempt to collect the cost of the treatment from the prisoner or his insurance carrier. If the facility is unable to collect the cost and certifies to the appropriate board of county commissioners that it is unable to collect the cost of the medical treatment, the board of county commissioners shall pay the cost of the medical treatment.

      7.  A sheriff, chief of police or town marshal who arranges for the administration of medical care pursuant to this section may attempt to collect from the prisoner or the insurance carrier of the prisoner the cost of arranging for the administration of medical care including the cost of any transportation of the prisoner for the purpose of medical care. The prisoner shall obey the requests of, and fully cooperate with the sheriff, chief of police or town marshal in collecting the costs from the prisoner or his insurance carrier.

      Sec. 2.  NRS 211.160 is hereby amended to read as follows:

      211.160  1.  Except in accordance with criteria established pursuant to subsection 2 or as otherwise provided in NRS 211.250 to 211.300, inclusive, no prisoner or prisoners may be allowed to go from the walls of the prison without a sufficient guard.

      2.  The responsible sheriff, chief of police or town marshal shall establish criteria for determining whether, and to what extent, supervision is required for a prisoner who is assigned to work pursuant to subsection [2] 3 of NRS 211.140 or to NRS 211.171 to 211.200, inclusive. He shall, with the consent of the administrator of the medical facility, establish criteria for such a determination regarding a prisoner who is incapacitated and is admitted to a medical facility for medical treatment.

      Sec. 3.  Notwithstanding the provisions of subsection 1 of NRS 354.599, each local government shall pay any additional expenses related to the provisions of this act from existing revenues of that local government.

      Sec. 4.  Section 1 of this act becomes effective at 12:01 a.m. on October 1, 1995.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1711ê

 

CHAPTER 516, SB 389

Senate Bill No. 389–Senators Titus and Townsend

CHAPTER 516

AN ACT relating to physicians’ assistants; authorizing a physician’s assistant to prescribe controlled substances; authorizing certain persons to possess and administer a controlled substance at the direction of a physician’s assistant; providing penalties; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 630.271 is hereby amended to read as follows:

      630.271  1.  A physician’s assistant may perform such medical services as he is authorized to perform [under] pursuant to the terms of a certificate issued to him by the board, if [such] those services are rendered under the supervision and control of a supervising physician.

      2.  The board shall limit the authority of a physician’s assistant to prescribe controlled substances to those schedules of controlled substances which his supervising physician is authorized to prescribe pursuant to state and federal law.

      Sec. 2.  NRS 633.461 is hereby amended to read as follows:

      633.461  1.  An osteopathic physician’s assistant may perform such medical services as the board has authorized, if [such] those services are performed under the supervision of an employing osteopathic physician. The services authorized [shall] must pertain to the practice of osteopathic medicine and not to the practice of any other healing art regulated in this state or to the business of selling and fitting hearing aids.

      2.  The board shall limit the authority of an osteopathic physician’s assistant to prescribe controlled substances to those schedules of controlled substances which his supervising osteopathic physician is authorized to prescribe pursuant to state and federal law.

      3.  NRS 633.741 does not prevent the service of an osteopathic physician’s assistant when his service is approved as provided in this chapter.

      Sec. 3.  NRS 639.0125 is hereby amended to read as follows:

      639.0125  “Practitioner” means:

      1.  A physician, dentist, veterinarian or podiatric physician who holds a valid license to practice his profession in this state;

      2.  A hospital, pharmacy or other institution licensed, registered or otherwise permitted to distribute, dispense, conduct research with respect to or administer drugs in the course of professional practice or research in this state; [or]

      3.  An advanced practitioner of nursing who has been authorized to prescribe poisons, dangerous drugs and devices [.] ; or

      4.  A physician’s assistant who:

      (a) Holds a certificate issued by the board of medical examiners or the state board of osteopathic medicine; and


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1712 (Chapter 516, SB 389)ê

 

      (b) Is authorized by the board to possess, administer, prescribe or dispense controlled substances, poisons, dangerous drugs or devices under the supervision of a physician or osteopathic physician as required by chapter 630 or 633 of NRS.

      Sec. 4.  NRS 639.1373 is hereby amended to read as follows:

      639.1373  1.  A physician’s assistant may, if authorized by the board, possess, administer , prescribe or dispense controlled substances, or possess, administer, prescribe or dispense poisons, dangerous drugs or devices in or out of the presence of his supervising physician only to the extent and subject to the limitations specified in the physician’s assistant’s certificate as issued by the board.

      2.  Each physician’s assistant who is authorized by his physician’s assistant’s certificate issued by the board of medical examiners or the state board of osteopathic medicine to possess, administer , prescribe or dispense controlled substances, or to possess, administer, prescribe or dispense poisons, dangerous drugs or devices must apply for and obtain a registration certificate from the board, pay a fee to be set by regulations adopted by the board and pass an examination administered by the board on the law relating to pharmacy before he can possess, administer , prescribe or dispense controlled substances, or possess, administer, prescribe or dispense poisons, dangerous drugs or devices.

      3.  The board shall consider each application separately and may, even though the physician’s assistant’s certificate issued by the board of medical examiners or the state board of osteopathic medicine authorizes the physician’s assistant to possess, administer , prescribe or dispense controlled substances, or to possess, administer, prescribe or dispense poisons, dangerous drugs and devices:

      (a) Refuse to issue a registration certificate;

      (b) Issue a registration certificate limiting the physician’s assistant’s authority to possess, administer, prescribe or dispense controlled substances, or to possess, administer, prescribe or dispense poisons, dangerous drugs or devices, the area in which the physician’s assistant may possess controlled substances, poisons, dangerous drugs and devices, or the kind and amount of controlled substances, poisons, dangerous drugs and devices; or

      (c) Issue a registration certificate imposing other limitations or restrictions which the board feels are necessary and required to protect the health, safety and welfare of the public.

      4.  If the registration of the physician’s assistant is suspended or revoked, the physician’s controlled substance registration may also be suspended or revoked.

      5.  The board shall adopt regulations controlling the maximum amount to be administered, possessed and dispensed, and the storage, security, recordkeeping and transportation of controlled substances and the maximum amount to be administered, possessed, prescribed and dispensed and the storage, security, recordkeeping and transportation of poisons, dangerous drugs and devices by physicians’ assistants. In the adoption of [such] those regulations, the board shall consider, but is not limited to, the following:

      (a) The area in which the physician’s assistant is to operate;

      (b) The population of that area;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1713 (Chapter 516, SB 389)ê

 

      (c) The experience and training of the physician’s assistant;

      (d) The distance to the nearest hospital and physician; and

      (e) The effect on the health, safety and welfare of the public.

      6.  For the purposes of this section, the term “physician’s assistant” includes an osteopathic physician’s assistant and the term “supervising physician” includes an employing osteopathic physician as defined in chapter 633 of NRS.

      Sec. 5.  NRS 639.210 is hereby amended to read as follows:

      639.210  The board may suspend or revoke any certificate, license, registration or permit issued pursuant to this chapter, and deny the application of any person for a certificate, license, registration or permit, if the holder or applicant:

      1.  Is not of good moral character;

      2.  Is guilty of habitual intemperance;

      3.  Becomes or is intoxicated or under the influence of liquor, any depressant drug or a controlled substance, unless taken pursuant to a [physician’s] lawfully issued prescription, while on duty in any establishment licensed by the board;

      4.  Is guilty of unprofessional conduct or conduct contrary to the public interest;

      5.  Is addicted to the use of any controlled substance;

      6.  Has been convicted of a violation of any law or regulation of the Federal Government or of this or any other state related to controlled substances, dangerous drugs, drug samples, or the wholesale or retail distribution of drugs;

      7.  Has been convicted of a felony or other crime involving moral turpitude, dishonesty or corruption;

      8.  Has been convicted of violating any of the provisions of NRS 616.630, 616.635, 616.640 or 616.675 to 616.700, inclusive;

      9.  Has willfully made to the board or its authorized representative any false statement which is material to the administration or enforcement of any of the provisions of this chapter;

      10.  Has obtained any certificate, certification, license or permit by the filing of an application, or any record, affidavit or other information in support thereof, which is false or fraudulent;

      11.  Has violated any provision of the Federal Food, Drug and Cosmetic Act or any other federal law or regulation relating to prescription drugs;

      12.  Has violated, attempted to violate, assisted or abetted in the violation of or conspired to violate any of the provisions of this chapter or any law or regulation relating to drugs, the manufacture or distribution of drugs or the practice of pharmacy, or has knowingly permitted, allowed, condoned or failed to report a violation of any of the provisions of this chapter or any law or regulation relating to drugs, the manufacture or distribution of drugs or the practice of pharmacy committed by the holder of a certificate, license, registration or permit;

      13.  Has failed to renew his certificate, license or permit by failing to submit the application for renewal or pay the renewal fee therefor;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1714 (Chapter 516, SB 389)ê

 

      14.  Has had his certificate, license or permit suspended or revoked in another state on grounds which would cause suspension or revocation of a certificate, license or permit in this state;

      15.  Has, as a managing pharmacist, violated any provision of law or regulation concerning recordkeeping or inventory in a store over which he presides, or has knowingly allowed a violation of any provision of this chapter or other state or federal laws or regulations relating to the practice of pharmacy by personnel of the pharmacy under his supervision;

      16.  Has repeatedly been negligent, which may be evidenced by claims of malpractice settled against him; or

      17.  Has failed to maintain and make available to a state or federal officer any records in accordance with the provisions of this chapter or chapter 453 or 454 of NRS.

      Sec. 6.  NRS 639.283 is hereby amended to read as follows:

      639.283  Any person who sells, dispenses or compounds any prescription, or sells any drug or poison while under the influence of intoxicating liquor or any depressant drug or controlled substance, unless taken pursuant to a [physician’s] lawfully issued prescription, is guilty of a misdemeanor.

      Sec. 7.  NRS 284.4062 is hereby amended to read as follows:

      284.4062  1.  Except as otherwise provided in subsection 3, an employee who:

      (a) Consumes or is under the influence of alcohol while on duty, unless the alcohol is an integral part of a commonly recognized medication which the employee consumes pursuant to the manufacturer’s instructions or [as prescribed by a licensed physician;] in accordance with a lawfully issued prescription;

      (b) Possesses, consumes or is under the influence of a controlled substance while on duty, at a work site or on state property, except [as prescribed by a licensed physician;] in accordance with a lawfully issued prescription; or

      (c) Consumes or is under the influence of any other drug which could interfere with the safe and efficient performance of his duties, unless the drug in an integral part of a commonly recognized medication which the employee consumes pursuant to the manufacturer’s instructions or [as prescribed by a licensed physician,] in accordance with a lawfully issued prescription,

is subject to disciplinary action. An appointing authority may summarily discharge an employee who, within a period of 5 years, commits a second act which would subject him to disciplinary action pursuant to this subsection.

      2.  A state agency shall refer an employee who:

      (a) Tests positive for the first time in a screening test; and

      (b) Has committed no other acts for which he is subject to termination during the course of conduct giving rise to the screening test,

to an employee assistance program. An employee who fails to accept such a referral or fails to complete such a program successfully is subject to further disciplinary action.

      3.  Subsection 1 does not apply to:

      (a) An employee who consumes alcohol in the course of his employment while hosting or attending a special event.

      (b) A peace officer who possesses a controlled substance or consumes alcohol within the scope of his duties.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1715 (Chapter 516, SB 389)ê

 

      Sec. 8.  NRS 432A.530 is hereby amended to read as follows:

      432A.530  A field administrator shall ensure that:

      1.  A client receives any necessary:

      (a) Medication;

      (b) First aid, including treatment for injury, disease and venomous bites; and

      (c) Medical treatment from qualified medical personnel,

as promptly as the circumstances and location of the client allows.

      2.  A first-aid kit is immediately accessible at all activities conducted pursuant to the program, and that the kit contains supplies appropriate to the location, environment and type of activity.

      3.  Equipment is readily available for the emergency medical evacuation of persons participating in the program.

      4.  Controlled substances are given to clients only as authorized [and directed by a licensed physician.] pursuant to a lawfully issued prescription.

      5.  All medications, whether sold by prescription or over the counter, are kept in the possession of a member of the staff and provided to clients as needed.

      6.  A member of the staff:

      (a) Supervises the ingestion or other use of any medication by a client; and

      (b) Maintains a record, including the time, dosage and effect, of any medication ingested or otherwise used by a client.

      Sec. 9.  NRS 433.554 is hereby amended to read as follows:

      433.554  1.  Any employee of a public or private mental health facility or any other person, except a client, who:

      (a) Has reason to believe that a client of the division or of a private facility offering mental health services has been or is being abused or neglected and fails to report it;

      (b) Brings intoxicating beverages or a controlled substance into any division facility occupied by clients unless specifically authorized to do so by the administrative officer or a staff physician of the facility;

      (c) Is under the influence of liquor or a controlled substance while employed in contact with clients, unless in accordance with a lawfully issued prescription ; [issued by a physician, podiatric physician or dentist;]

      (d) Enters into any transaction with a client involving the transfer of money or property for personal use or gain at the expense of the client; or

      (e) Contrives the escape, elopement or absence of a client,

is guilty of a misdemeanor, in addition to any other penalties provided by law.

      2.  In addition to any other penalties provided by law, any employee of a public or private mental health facility or any other person, except a client, who willfully abuses or neglects any client:

      (a) If no substantial bodily harm to the client results, is guilty of a gross misdemeanor.

      (b) If substantial bodily harm to the client results, shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1716 (Chapter 516, SB 389)ê

 

      3.  Any person who is convicted pursuant to this section is ineligible for 5 years for appointment to or employment in a position in the state service and, if he is an officer or employee of the state, he forfeits his office or position.

      4.  For the purposes of this section:

      (a) “Abuse” means any willful and unjustified infliction of pain, injury or mental anguish upon a client, including, but not limited to:

             (1) The rape, sexual assault or sexual exploitation of the client;

             (2) Striking the client;

             (3) Verbal intimidation or coercion of the client without a redeeming purpose;

             (4) The use of excessive force when placing the client in physical restraints; and

             (5) The use of physical or chemical restraints in violation of state or federal law.

Any act which meets the standard of practice for care and treatment does not constitute abuse.

      (b) “Client” includes any person who seeks, on his own or others’ initiative, and can benefit from care treatment and training in a public or private institution or facility offering mental health services. The term does not include a client of the division of child and family services of the department.

      (c) “Neglect” means any omission to act which causes injury to a client or which places the client at risk of injury, including, but not limited to, the failure to follow:

             (1) An appropriate plan of treatment to which the client has consented; and

             (2) The policies of the facility for the care and treatment of clients.

Any omission to act which meets the standard of practice for care and treatment does not constitute neglect.

      (d) “Standard of practice” means the skill and care ordinarily exercised by prudent professional personnel engaged in health care.

      Sec. 10.  NRS 433B.340 is hereby amended to read as follows:

      433B.340  1.  Any employee of the division or other person who:

      (a) Has reason to believe that a client has been or is being abused or neglected and fails to report it;

      (b) Brings intoxicating beverages or a controlled substance into any building occupied by clients unless specifically authorized to do so by the administrative officer or a staff physician of the facility;

      (c) Is under the influence of liquor or a controlled substance while employed in contact with clients, unless in accordance with a lawfully issued prescription ; [issued by a physician, podiatric physician or dentist;]

      (d) Enters into any transaction with a client involving the transfer of money or property for personal use or gain at the expense of the client; or

      (e) Contrives the escape, elopement or absence of a client,

is guilty of a misdemeanor

      2.  Any employee of the division or other person who willfully abuses or neglects any client:

      (a) If no substantial bodily harm to the client results, is guilty of a gross misdemeanor.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1717 (Chapter 516, SB 389)ê

 

      (b) If substantial bodily harm to the client results, shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.

      3.  Any person who is convicted pursuant to this section is ineligible for 5 years for appointment to or employment in a position in the state service and, if he is an officer or employee of the state, he forfeits his office or position.

      4.  For the purposes of this section:

      (a) “Abuse” means any willful or reckless act or omission to act which causes physical or mental injury to a client, including, but not limited to:

             (1) The rape, sexual assault or sexual exploitation of the client;

             (2) Striking the client;

             (3) The use of excessive force when placing the client in physical restraints; and

             (4) The use of physical or chemical restraints in violation of state or federal law.

Any act or omission to act which meets the standard practice for care and treatment does not constitute abuse.

      (b) “Neglect” means any act or omission to act which causes injury to a client or which places the client at risk of injury, including, but not limited to, the failure to:

             (1) Establish or carry out an appropriate plan of treatment for the client;

             (2) Provide the client with adequate nutrition, clothing or health care; and

             (3) Provide a safe environment for the client.

Any act or omission to act which meets the standard practice for care and treatment does not constitute neglect.

      (c) “Standard practice” is the skill and care ordinarily exercised by prudent medical personnel.

      Sec. 11.  NRS 453.038 is hereby amended to read as follows:

      453.038  “Chart order” means an order entered on the chart of a patient:

      1.  In a hospital, facility for intermediate care or facility for skilled nursing which is licensed as such by the health division of the department; or

      2.  Under emergency treatment in a hospital by a physician, dentist or podiatric physician, or on the written or oral order of a physician, physician’s assistant, dentist or podiatric physician authorizing the administration of a drug to the patient.

      Sec. 12.  NRS 453.091 is hereby amended to read as follows:

      453.091  1.  “Manufacture” means the production, preparation, propagation, compounding, conversion or processing of a substance, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container.

      2.  “Manufacture” does not include the preparation or compounding of a substance by a person for his own use or the preparation, compounding, packaging or labeling of a substance by a physician, physician’s assistant, dentist or podiatric physician or veterinarian:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1718 (Chapter 516, SB 389)ê

 

      (a) As an incident to his administering or dispensing of a substance in the course of his professional practice; or

      (b) By his authorized agent under his supervision, for the purpose of, or as an incident to, research, teaching or chemical analysis and not for sale.

      Sec. 13.  NRS 453.126 is hereby amended to read as follows:

      453.126  “Practitioner” means:

      1.  A physician, dentist, veterinarian or podiatric physician who holds a valid license to practice his profession in this state and is registered pursuant to this chapter.

      2.  An advanced practitioner of nursing who holds a certificate from the state board of nursing and a certificate from the state board of pharmacy permitting him to dispense controlled substances.

      3.  A scientific investigator or a pharmacy, hospital or other institution licensed, registered or otherwise permitted by this state to distribute, dispense, conduct research with respect to, to administer, or use in teaching or chemical analysis, a controlled substance in the course of professional practice or research.

      4.  A euthanasia technician who is licensed by the Nevada state board of veterinary medical examiners and registered pursuant to this chapter, when he possesses or administers sodium pentobarbital pursuant to his license and registration.

      5.  A physician’s assistant who:

      (a) Holds a certificate from the board of medical examiners or the state board of osteopathic medicine; and

      (b) Is authorized by the board to possess, administer, prescribe or dispense controlled substances under the supervision of a physician or osteopathic physician as required by chapter 630 or 633 of NRS.

      Sec. 14.  NRS 453.128 is hereby amended to read as follows:

      453.128  1.  “Prescription” means:

      (a) An order given individually for the person for whom prescribed, directly from a physician, physician’s assistant, dentist, podiatric physician or veterinarian, or his agent, to a pharmacist or indirectly by means of an order signed by the practitioner or an electronic transmission from the practitioner to a pharmacist.

      (b) A chart order written for an inpatient specifying drugs which he is to take home upon his discharge.

      2.  “Prescription” does not include a chart order written for an inpatient for use while he is an inpatient.

      Sec. 15.  NRS 453.226 is hereby amended to read as follows:

      453.226  1.  Every practitioner or other person who dispenses any controlled substance within this state or who proposes to engage in the dispensing of any controlled substance within this state shall obtain biennially a registration issued by the board in accordance with its regulations.

      2.  A person registered by the board in accordance with the provisions of NRS 453.011 to 453.552, inclusive, to dispense or conduct research with controlled substances may possess, dispense or conduct research with those substances to the extent authorized by the registration and in conformity with the other provisions of those sections.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1719 (Chapter 516, SB 389)ê

 

      3.  The following persons are not required to register and may lawfully possess and distribute controlled substances pursuant to the provisions of NRS 453.011 to 453.552, inclusive:

      (a) An agent or employee of a registered dispenser of a controlled substance if he is acting in the usual course of his business or employment;

      (b) A common or contract carrier or warehouseman, or an employee thereof, whose possession of any controlled substance is in the usual course of business or employment;

      (c) An ultimate user or a person in possession of any controlled substance pursuant to a lawful order of a physician, physician’s assistant, dentist, podiatric physician or veterinarian or in lawful possession of a schedule V substance; or

      (d) A physician who:

             (1) Holds a locum tenens license issued by the board of medical examiners or a temporary license issued by the state board of osteopathic medicine; and

             (2) Is registered with the Drug Enforcement Administration at a location outside this state.

      4.  The board may waive the requirement for registration of certain dispensers if it finds it consistent with the public health and safety.

      5.  A separate registration is required at each principal place of business or professional practice where the applicant dispenses controlled substances.

      6.  The board may inspect the establishment of a registrant or applicant for registration in accordance with the board’s regulations

      Sec. 16.  NRS 453.336 is hereby amended to read as follows:

      453.336  1.  It is unlawful for any person knowingly or intentionally to possess a controlled substance unless the substance was obtained directly from, or pursuant to, a valid prescription or order of a physician, physician’s assistant, dentist, podiatric physician or veterinarian while acting in the course of his professional practice, or except as otherwise authorized by the provisions of NRS 453.011 to 453.552, inclusive.

      2.  Except as otherwise provided in subsections 3 and 4 and in NRS 453.3363, and unless a greater penalty is provided in NRS 453.3385, 453.339 or 453.3395, any person who violates this section shall be punished:

      (a) For the first offense, if the controlled substance is listed in schedule I, II, III or IV, by imprisonment in the state prison for not less than 1 year nor more than 6 years, and may be further punished by a fine of not more than $5,000.

      (b) For a second offense, if the controlled substance is listed in schedule I, II, III or IV, or if, in case of a first conviction of violation of this section, the offender has previously been convicted of any violation of the laws of the United States or of any state, territory or district relating to a controlled substance, the offender shall be punished by imprisonment in the state prison for not less than 1 year nor more than 10 years and may be further punished by a fine of not more than $10,000.

      (c) For a third or subsequent offense, if the controlled substance is listed in schedule, I, II, III or IV, or if the offender has previously been convicted two or more times in the aggregate of any violation of the law of the United States or of any state, territory or district relating to a controlled substance, the offender shall be punished by imprisonment in the state prison for not less than 1 year nor more than 20 years and may be further punished by a fine of not more than $20,000.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1720 (Chapter 516, SB 389)ê

 

offender shall be punished by imprisonment in the state prison for not less than 1 year nor more than 20 years and may be further punished by a fine of not more than $20,000.

      (d) For the first offense, if the controlled substance is listed in schedule V, by imprisonment in the county jail for not more than 1 year, and may be further punished by a fine of not more than $1,000.

      (e) For a second or subsequent offense, if the controlled substance is listed in schedule V, by imprisonment in the state prison for not less than 1 year nor more than 6 years, and may be further punished by a fine of not more than $5,000.

      3.  Any person who is under 21 years of age and is convicted of the possession of less than 1 ounce of marihuana:

      (a) For the first offense:

             (1) Shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, and may be further punished by a fine of not more than $2,000; or

             (2) Shall be punished by imprisonment in the county jail for not more than 1 year, and may be further punished by a fine of not more than $1,000, and may have his driver’s license suspended for not more than 6 months.

      (b) For the second offense shall be punished in the manner prescribed by subsection 2 for a first offense.

      (c) For a third or subsequent offense, shall be punished in the manner prescribed by subsection 2 for a second offense.

      4.  Before sentencing under the provisions of subsection 3 for a first offense, the court shall require the parole and probation officer to submit a presentencing report on the person convicted in accordance with the provisions of NRS 176.195. After the report is received but before sentence is pronounced the court shall:

      (a) Interview the person convicted and make a determination as to the possibility of his rehabilitation; and

      (b) Conduct a hearing at which evidence may be presented as to the possibility of rehabilitation and any other relevant information received as to whether the person convicted of the offense shall be adjudged to have committed a felony or to have committed a gross misdemeanor.

      Sec. 17.  NRS 453.371 is hereby amended to read as follows:

      453.371  As used in NRS 453.371 to 453.552, inclusive:

      1.  “Medical intern” means a medical graduate acting as an assistant in a hospital for the purpose of clinical training.

      2.  “Physician,” “physician’s assistant,” “dentist,” “podiatric physician,” “veterinarian,” “pharmacist” and “euthanasia technician” mean persons authorized by a valid license to practice their respective professions in this state who are registered with the board.

      Sec. 18.  NRS 453.375 is hereby amended to read as follows:

      453.375  A controlled substance may be possessed and administered by the following persons:

      1.  A practitioner.

      2.  [A physician’s assistant at the direction of his supervising physician.

      3.] A registered nurse licensed to practice professional nursing or licensed practical nurse, at the direction of a physician, physician’s assistant, dentist, podiatric physician or advanced practitioner of nursing, or pursuant to a chart order, for administration to a patient at another location.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1721 (Chapter 516, SB 389)ê

 

podiatric physician or advanced practitioner of nursing, or pursuant to a chart order, for administration to a patient at another location.

      [4.] 3.  An advanced emergency medical technician:

      (a) As authorized by regulation of:

             (1) The state board of health in a county whose population is less than 100,000; or

             (2) A county or district board of health in a county whose population is 100,000 or more; and

      (b) In accordance with any applicable regulations of:

             (1) The state board of health in a county whose population is less than 100,000;

             (2) A county board of health in a county whose population is 100,000 or more; or

             (3) A district board of health created pursuant to NRS 439.370 in any county.

      [5.] 4.  A respiratory therapist, at the direction of a physician [.

      6.] or physician’s assistant.

      5.  A medical student , student in training to become a physician’s assistant or student nurse in the course of his studies at an approved college of medicine or school of professional or practical nursing, at the direction of a physician or physician’s assistant and:

      (a) In the presence of a physician , physician’s assistant or a registered nurse; or

      (b) Under the supervision of a physician , physician’s assistant or a registered nurse if the student is authorized by the college or school to administer the substance outside the presence of a physician , physician’s assistant or nurse.

A medical student or student nurse may administer a controlled substance in the presence or under the supervision of a registered nurse alone only if the circumstances are such that the registered nurse would be authorized to administer it personally.

      [7.] 6.  An ultimate user or any person whom the ultimate user designates pursuant to a written agreement.

      [8.] 7.  Any person designated by the head of a correctional institution.

      [9.] 8.  An animal technician at the direction of his supervising veterinarian.

      [10.] 9.  In accordance with applicable regulations of the state board of health, an employee of a residential facility for groups, as defined in NRS 449.017, pursuant to a written agreement entered into by the ultimate user.

      Sec. 19.  NRS 453.377 is hereby amended to read as follows:

      453.377  A controlled substance may be dispensed by:

      1.  A registered pharmacist upon a legal prescription from a practitioner or to a pharmacy in a correctional institution upon the written order of the prescribing practitioner in charge.

      2.  A pharmacy in a correctional institution, in case of emergency, upon a written order signed by the chief medical officer.

      3.  A practitioner . [or a physician’s assistant if authorized by the board.]

      4.  A registered nurse, when the state, county, city or district health officer has declared a state of emergency.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1722 (Chapter 516, SB 389)ê

 

      5.  A medical intern in the course of his internship.

      6.  An advanced practitioner of nursing who holds a certificate from the state board of nursing and a certificate from the state board of pharmacy permitting him to dispense controlled substances.

      7.  A pharmacy in an institution of the department of prisons to a person designated by the director of the department of prisons to administer a lethal injection to a person who has been sentenced to death.

      8.  A registered pharmacist from an institutional pharmacy, pursuant to regulations adopted by the board.

      Sec. 20.  NRS 453.381 is hereby amended to read as follows:

      453.381  1.  In addition to the limitations imposed by NRS 453.256, a physician, physician’s assistant, dentist or podiatric physician may prescribe or administer controlled substances only for a legitimate medical purpose and in the usual course of his professional practice, and he shall not prescribe, administer or dispense a controlled substance listed in schedule II for himself, his spouse or his children except in cases of emergency.

      2.  A veterinarian, in the course of his professional practice only, and not for use by a human being, may prescribe, possess and administer controlled substances, and he may cause them to be administered by an animal technician under his direction and supervision.

      3.  A euthanasia technician, within the scope of his license, and not for use by a human being, may possess and administer sodium pentobarbital.

      4.  A pharmacist shall not fill an order which purports to be a prescription if he has reason to believe that it was not issued in the usual course of the professional practice of a physician, physician’s assistant, dentist, podiatric physician or veterinarian.

      5.  Any person who has obtained from a physician, physician’s assistant, dentist, podiatric physician or veterinarian any controlled substance for administration to a patient during the absence of the physician, physician’s assistant, dentist, podiatric physician or veterinarian shall return to him any unused portion of the substance when it is no longer required by the patient.

      6.  A manufacturer, wholesale supplier or other person legally able to furnish or sell any controlled substance listed in schedule II shall not provide samples of such a controlled substance to registrants.

      7.  A salesman of any manufacturer or wholesaler of pharmaceuticals shall not possess, transport or furnish any controlled substance listed in schedule II.

      8.  A person shall not dispense a controlled substance in violation of a regulation adopted by the board.

      Sec. 21.  NRS 453.391 is hereby amended to read as follows:

      453.391  A person shall not:

      1.  Unlawfully take, obtain or attempt to take or obtain a controlled substance or a prescription for a controlled substance from a manufacturer, wholesaler, pharmacist, physician, physician’s assistant, dentist, veterinarian or any other person authorized to administer, dispense or possess controlled substances.

      2.  While undergoing treatment and being supplied with any controlled substance or a prescription for any controlled substance from one practitioner, knowingly obtain any controlled substance or a prescription for a controlled substance from another practitioner without disclosing this fact to the second practitioner.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1723 (Chapter 516, SB 389)ê

 

controlled substance from another practitioner without disclosing this fact to the second practitioner.

      Sec. 22.  NRS 453.411 is hereby amended to read as follows:

      453.411  1.  It is unlawful for any person knowingly to use or be under the influence of a controlled substance except in accordance with a lawfully issued prescription . [issued to such person by a physician, podiatric physician or dentist.]

      2.  It is unlawful for any person knowingly to use or be under the influence of a controlled substance except when administered to such person at a rehabilitation clinic established or licensed by the health division of the department of human resources, or a hospital certified by the department.

      3.  Any person who violates this section shall be punished:

      (a) If the controlled substance is listed in schedule I, II, III [,] or IV, by imprisonment in the state prison for not less than 1 year nor more than 6 years, and may be further punished by a fine of not more than $5,000.

      (b) If the controlled substance is listed in schedule V, by imprisonment in the county jail for not more than 1 year, and may be further punished by a fine of not more than $1,000.

      Sec. 23.  NRS 455A.170 is hereby amended to read as follows:

      455A.170  1.  A skier shall not ski, or embark on a ski lift that is proceeding predominantly uphill, while intoxicated or under the influence of a controlled substance as defined in chapter 453 of NRS, unless in accordance with a lawfully issued prescription . [issued to the person by a physician, podiatric physician or dentist.]

      2.  A skier who is involved in a collision in which another person is injured shall provide his name and current address to the injured person, the skiing operator or a member of the ski patrol:

      (a) Before he leaves the vicinity of the collision; or

      (b) As soon as reasonably possible after leaving the vicinity of the collision to secure aid for the injured person.

      3.  A person who violates a provision of this section is guilty of a misdemeanor.

      Sec. 24.  NRS 488.205 is hereby amended to read as follows:

      488.205  1.  A person shall not operate any motorboat or vessel, or manipulate any water skis, surfboard or similar device in a reckless or negligent manner so as to endanger the life or property of any person.

      2.  A person shall not operate any motorboat or vessel, or manipulate any water skis, surfboard or similar device while intoxicated or under the influence of any controlled substance, unless in accordance with a lawfully issued prescription . [issued to him by a physician, podiatric physician or dentist.]

      Sec. 25.  NRS 493.130 is hereby amended to read as follows:

      493.130  Any person operating an aircraft in the air, or on the ground or water:

      1.  While under the influence of intoxicating liquor or a controlled substance, unless in accordance with a lawfully issued prescription ; [issued to him by a physician, podiatric physician or dentist;] or

      2.  In a careless or reckless manner so as to endanger the life or property of another,

is guilty of a gross misdemeanor.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1724 (Chapter 516, SB 389)ê

 

      Sec. 26.  NRS 706.8849 is hereby amended to read as follows:

      706.8849  1.  A taxicab driver shall:

      (a) [Assure] Ensure that the fare indicator on the taximeter of his taxicab reads zero before the time that the taxicab is engaged.

      (b) [Assure] Ensure that the taximeter of his taxicab is engaged while the taxicab is on hire.

      (c) Not make any charge for the transportation of a passenger other than the charge shown on the taximeter.

      (d) Not alter, manipulate, tamper with or disconnect a sealed taximeter or its attachments nor make any change in the mechanical condition of the wheels, tires or gears of a taxicab with intent to cause false registration on the taximeter of the passenger fare.

      (e) Not remove or alter fare schedules which have been posted in his taxicab by the certificate holder.

      (f) Not permit any person or persons other than the person who has engaged the taxicab to ride therein unless the person who has engaged the taxicab requests that the other person or persons ride in the taxicab. If more than one person is loaded by the taxicab driver as set forth in this paragraph, the driver shall, when one of the persons leaves the taxicab, charge that person the fare on the meter and reset the taximeter.

      (g) Not drive a taxicab or go on duty while under the influence of, or impaired by, any controlled substance, dangerous drug, or intoxicating liquor or drink intoxicating liquor while on duty.

      (h) Not use or consume controlled substances or dangerous drugs which impair a person’s ability to operate a motor vehicle at any time, or use or consume any other controlled substances or dangerous drugs at any time except [with a prescription from a physician who is licensed to practice medicine in the State of Nevada.] in accordance with a lawfully issued prescription.

      (i) Not operate a taxicab without a valid driver’s permit issued pursuant to NRS 706.8841 and a valid driver’s license issued pursuant to NRS 483.325 in his possession.

      (j) Obey all provisions and restrictions of his employer’s certificate of public convenience and necessity.

      2.  If a driver violates any provision of subsection 1, the administrator may, after a hearing, impose the following sanctions:

      (a) For a first offense, 1 to 5 days’ suspension of a driver’s permit or a fine of not more than $100, or both suspension and fine.

      (b) For a second offense, 6 to 20 days’ suspension of a driver’s permit or a fine of not more than $300, or both suspension and fine.

      (c) For a third offense, a fine of not more than $500.

In addition to the other penalties set forth in this subsection, the administrator may revoke a driver’s permit for any violation of a provision of paragraph (g) of subsection 1.

      3.  Only violations occurring in the 12 months immediately preceding the most current violation may be considered for the purposes of subsection 2.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1725 (Chapter 516, SB 389)ê

 

The administrator shall inspect the driver’s record for that period to compute the number of offenses committed.

      Sec. 27.  Section 15 of this act becomes effective at 12:01 a.m. on October 1, 1995.

 

________

 

 

CHAPTER 517, SB 371

Senate Bill No. 371–Committee on Judiciary

CHAPTER 517

AN ACT relating to crimes; expanding the circumstances under which a person fleeing from or otherwise attempting to elude a peace officer in a motor vehicle is guilty of a felony; expanding the circumstances under which a motor vehicle used to flee from or elude a peace officer is subject to forfeiture; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 484.348 is hereby amended to read as follows:

      484.348  1.  [Any] Except as otherwise provided in this section, the driver of a motor vehicle who willfully fails or refuses to bring his vehicle to a stop, or who otherwise flees or attempts to elude a peace officer in a readily identifiable vehicle of any police department or regulatory agency, when given a signal to bring his vehicle to a stop is guilty of a misdemeanor.

      2.  The signal by the peace officer described in subsection 1 must be by flashing red lamp and siren.

      3.  Except [under the circumstances] as otherwise provided in subsection 2 of NRS 484.377, if [a violation of this section is the proximate cause of the death of or substantial bodily harm to any person other than himself,] , while violating the provisions of subsection 1, the driver of the motor vehicle:

      (a) Is the proximate cause of the death of or bodily harm to any person other than himself or damage to the property of a person other than himself; or

      (b) Operates the motor vehicle in a manner which endangers or is likely to endanger any person other than himself or the property of any person other than himself,

the driver shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.

      Sec. 2.  NRS 200.040 is hereby amended to read as follows:

      200.040  1.  Manslaughter [:

      (a) Is] is the unlawful killing of a human being, without malice express or implied, and without any mixture of deliberation . [; or

      (b) Results from the accidental death of another human being as a result of a violation of NRS 484.348.]

      2.  Manslaughter must be voluntary, upon a sudden heat of passion, caused by a provocation apparently sufficient to make the passion irresistible , [;] or, involuntary, in the commission of an unlawful act, or a lawful act without due caution or circumspection.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1726 (Chapter 517, SB 371)ê

 

involuntary, in the commission of an unlawful act, or a lawful act without due caution or circumspection.

      Sec. 3.  NRS 200.070 is hereby amended to read as follows:

      200.070  Except under the circumstances provided in NRS 484.348 and 484.377 [:

      1.  Involuntary] , involuntary manslaughter is the killing of a human being, without any intent to do so, in the commission of an unlawful act, or a lawful act which probably might produce such a consequence in an unlawful manner , [;] but where the involuntary killing occurs in the commission of an unlawful act, which, in its consequences, naturally tends to destroy the life of a human being, or is committed in the prosecution of a felonious intent, the offense is murder.

      [2.  If a person dies otherwise than of natural causes as a result of a violation of NRS 484.348, and no person intentionally caused his death, the driver is guilty of involuntary manslaughter.]

      Sec. 4.  The amendatory provisions of this act do not apply to offenses committed before October 1, 1995.

 

________

 

 

CHAPTER 518, SB 358

Senate Bill No. 358–Committee on Judiciary

CHAPTER 518

AN ACT relating to evidence; revising the provisions regarding the establishment of the authenticity of records of a regularly conducted activity by an affidavit; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 51.135 is hereby amended to read as follows:

      51.135  [1.]  A memorandum, report, record or compilation of data, in any form, of acts, events, conditions, opinions or diagnoses, made at or near the time by, or from information transmitted by, a person with knowledge, all in the course of a regularly conducted activity, as shown by the testimony or affidavit of the custodian or other qualified [witness,] person, is not inadmissible under the hearsay rule unless the source of information or the method or circumstances of preparation indicate lack of trustworthiness.

      [2.  An affidavit signed by a custodian of medical records verifying that the copy of medical records is a true and complete reproduction of the original medical records is not inadmissible under the hearsay rule and must be accepted by the court in lieu of testimony.

      3.  An affidavit signed by a custodian of the records of a casino or hotel, verifying that a copy of a record of a casino or hotel is a true and complete reproduction of the original record is not inadmissible under the hearsay rule and must be accepted by the court in lieu of testimony. As used in this subsection, the terms “custodian of the records of a casino or hotel” and “record of a casino or hotel” have the meanings ascribed to them by NRS 52.405.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1727 (Chapter 518, SB 358)ê

 

“record of a casino or hotel” have the meanings ascribed to them by NRS 52.405.

      4.  An affidavit signed by a custodian of the records of a banking or financial institution, verifying that a copy of a record of a banking or financial institution is a true and complete reproduction of the original record is not inadmissible under the hearsay rule and must be accepted by the court in lieu of testimony. As used in this subsection, the terms “custodian of the records of a banking or financial institution” and “record of a banking or financial institution” have the meanings ascribed to them by NRS 52.450.]

      Sec. 2.  Chapter 52 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The contents of a record made in the course of a regularly conducted activity in accordance with NRS 51.135, if otherwise admissible, may be proved by the original or a copy of the record which is authenticated by a custodian of the record or another qualified person in a signed affidavit.

      2.  The custodian of the record or other qualified person must verify in the affidavit that the record was made:

      (a) At or near the time of the act, event, condition, opinion or diagnosis concerning which the information was recorded, by or from information transmitted by a person with knowledge of the act or event; and

      (b) In the course of the regularly conducted activity.

      3.  The affidavit required by subsection 2 must be in substantially the following form:

 

CERTIFICATE OF CUSTODIAN OF RECORDS

 

State of Nevada                                   }

                                                                } ss.

County of............................................. }

 

      NOW COMES ................................, who after first being duly sworn deposes and says:

      1.  That the deponent is the ................ (position or title) ................ of ................ (name of employer) ................ and in his capacity as ................ (position or title) ................ is a custodian of the records of ............ (name of employer) ................

      2.  That ................ (name of employer) ............... is licensed to do business as a ............... in the State of ...............

      3.  That on the ........... day of ..............., 19..., the deponent was served with a subpoena in connection with the above-entitled cause, calling for the production of records pertaining to ...........................................................................................

..........................................................................................................................................................................................................................................................................................................................................................................................................

      4.  That the deponent has examined the original of those records and has made or caused to be made a true and exact copy of them and that the reproduction of them attached hereto is true and complete.

      5.  That the original of those records was made at or near the time of the act, event, condition, opinion or diagnosis recited therein by or from information transmitted by a person with knowledge, in the course of a regularly conducted activity of the deponent or ...............


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1728 (Chapter 518, SB 358)ê

 

conducted activity of the deponent or ............... (name of employer) ...............

 

                                                        .................................................................................

 

Subscribed and sworn to before me, a Notary Public, on this ............... day of ..............., 19....

...............................................................................

Notary Public .................. County, Nevada

My appointment expires:................................

 

      4.  A party intending to offer an affidavit pursuant to this section must serve on the other parties a notice of the intent and make available for inspection or copying the records of the regularly conducted activity at least 10 days before the records are to be introduced at a hearing, unless the court shortens this time for good cause shown.

      5.  If during a trial or a proceeding for discovery, the authenticity of a record of a regularly conducted activity is reasonably questioned or if an interpretation of handwriting is in question, the court may order the personal attendance of the custodian of the record or other qualified person and may order that the original records be produced.

      6.  For the purposes of this section:

      (a) “Custodian of the records” means an employee or agent of an employer who has the care, custody and control of the records of the regularly conducted activity of the employer.

      (b) “Employer” means:

             (1) The State of Nevada, any state agency, county, city, town, school district or other unit of local government;

             (2) Any public or quasi-public corporation; or

             (3) Any other person, firm, corporation, partnership or association.

      (c) “Records” means memoranda, reports, records or compilations of data in any form which are kept in the course of an activity which is regularly conducted by an employer.

      Sec. 3.  NRS 52.325 is hereby amended to read as follows:

      52.325  1.  A custodian of medical records sufficiently complies with a subpoena calling for the production of medical records in his custody if he delivers, at or before the time set for the return of the subpoena, either personally or by mail, to the clerk of the court issuing the subpoena a true and exact photographic, electrostatic or other acceptable copy of the original record authenticated as provided in this section. This section does not apply to X-ray films or to any other portion of a medical record which is not susceptible to photostatic reproduction.

      2.  The copy must be authenticated by an affidavit signed by the custodian of the medical records verifying that it is a true and complete reproduction of the original medical record and that the original record was made at or near the time of the act, event, condition, opinion or diagnosis by or from information transmitted by a person with knowledge in the course of a regularly conducted activity.

      3.  If the court quashes or suppresses a subpoena for medical records, it may order the subpoenaed record to be returned to the submitting custodian.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1729 (Chapter 518, SB 358)ê

 

      4.  The affidavit required by subsection 2 must be substantially in the [following form:

 

CERTIFICATE OF CUSTODIAN OF MEDICAL RECORDS

 

State of Nevada                                    }

                                                                } ss.

County of............................................. }

 

      NOW COMES ................................, who after first being duly sworn deposes and says:

      1.  That the deponent is the ................ of the ................ and in such capacity is the custodian of the medical records of the office or institution.

      2.  That on the ................ day of ..............., 19..., the deponent was served with a subpoena in connection with the above entitled cause, calling for the production of medical records pertaining to ....................................................................

..........................................................................................................................................................................................................................................................................................................................................................................................................

      3.  That the deponent has examined the original of those medical records and has made a true and exact copy of them and that the reproduction of them attached hereto is true and complete.

      4.  That the original of those medical records was made at or near the time of the acts, events, conditions, opinions or diagnoses recited therein by or from information transmitted by a person with knowledge in the course of a regularly conducted activity of the deponent or the office or institution in which the deponent is engaged.

 

                                                        .................................................................................

 

Subscribed and sworn to before me, a Notary Public, on this ............... day of ..............., 19....

...................................

Notary Public .................. County, Nevada

My appointment expires:

................................] form prescribed in subsection 3 of section 2 of this act.

      Sec. 4.  NRS 52.415 is hereby amended to read as follows:

      52.415  The content of records of a casino or hotel, if otherwise admissible, may be proved by a copy of the record which is authenticated by a custodian of the records of a casino or hotel in a signed affidavit. The custodian must verify in the affidavit that the copy is a true and complete reproduction of the original record of a hotel or casino and that the original record was made at or near the time of the act or event concerning which information was recorded, by or from information transmitted by a person with knowledge of the act or event, and in the course of a regularly conducted activity. The affidavit required by this section must be substantially in the form prescribed in subsection 3 of section 2 of this act.

      Sec. 5.  NRS 52.460 is hereby amended to read as follows:

      52.460  1.  The content of records of a banking or financial institution, if otherwise admissible, may be proved by a copy of the record which is authenticated by a custodian of the records of a banking or financial institution in a signed affidavit.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1730 (Chapter 518, SB 358)ê

 

authenticated by a custodian of the records of a banking or financial institution in a signed affidavit. The custodian must verify in the affidavit that the copy is a true and complete reproduction of the original record and that the original record was made at or near the time of the act or event concerning which information was recorded, by or from information transmitted by a person with knowledge of the act or event, and in the course of a regularly conducted activity.

      2.  The affidavit required by subsection 1 must be substantially in the [following form:

 

CERTIFICATE OF CUSTODIAN OF RECORDS

 

State of Nevada                                    }

                                                                } ss.

County of............................................. }

 

      NOW COMES ................................, who after first being duly sworn deposes and says:

      1.  That the deponent is the ................ of the ................ and in such capacity is a custodian of the records of the institution.

      2.  That the institution is licensed to do business as a ................ in the State of ................

      3.  That on the ................ day of ..............., 19..., the deponent was served with a subpoena in connection with the above entitled cause, calling for the production of records pertaining to ..................................................................................

..........................................................................................................................................................................................................................................................................................................................................................................................................

      4.  That the deponent has examined the original of those records and has made a true and exact copy of them and that the reproduction of them attached hereto is true and complete.

      5.  That the original of those records was made at or near the time of the acts, events, conditions or opinions recited therein by or from information transmitted by a person with knowledge in the course of a regularly conducted activity of the deponent or the office or institution in which the deponent is engaged.

 

                                                        .................................................................................

 

Subscribed and sworn to before me, a Notary Public, on this ............... day of ..............., 19....

...................................

Notary Public .................. County, Nevada

My appointment expires:

................................] form prescribed in subsection 3 of section 2 of this act.

 


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1731ê

 

CHAPTER 519, SB 303

Senate Bill No. 303–Committee on Government Affairs

CHAPTER 519

AN ACT relating to government purchasing; providing that proprietary information regarding trade secrets is confidential; providing when such information may be disclosed; authorizing certain nonprofit corporations to obtain supplies, materials and equipment from certain local governments; prohibiting certain acts which may influence a purchasing officer; providing a penalty; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 332 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.

      Sec. 2.  1.  Except as otherwise provided in subsection 2, proprietary information regarding a trade secret does not constitute public information and is confidential.

      2.  A person shall not disclose proprietary information regarding a trade secret unless the disclosure is made for the purpose of a civil, administrative or criminal investigation or proceeding, and the person receiving the information represents in writing that protections exist under applicable law to preserve the integrity, confidentiality and security of the information.

      Sec. 3.  1.  Before a contract is awarded, a person who has bid on the contract or an officer, employee, representative, agent or consultant of such a person shall not:

      (a) Make an offer or promise of future employment or business opportunity to, or engage in a discussion of future employment or business opportunity with, a purchasing officer or member of the governing body offering the contract;

      (b) Offer, give or promise to offer or give money, a gratuity or any other thing of value to a purchasing officer or member of the governing body offering the contract; or

      (c) Solicit or obtain from an officer, employee or member of the governing body offering the contract, any proprietary information regarding the contract.

      2.  A person who violates any of the provisions of subsection 1 is guilty of a gross misdemeanor and shall be punished by imprisonment in the county jail for not more than 1 year, or by a fine of not less than $2,000 nor more than $50,000, or by both fine and imprisonment.

      Sec. 4.  A nonprofit corporation that provides ambulance services pursuant to a franchise agreement with a local government may obtain supplies, materials and equipment on a voluntary basis through the facilities of the local government.

      Sec. 5.  NRS 332.025 is hereby amended to read as follows:

      332.025  As used in this chapter, unless the context otherwise requires:

      1.  “Authorized representative” means the person responsible for the proper administration of all purchases and contracts, or either of them, under this chapter.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1732 (Chapter 519, SB 303)ê

 

      2.  “Chief administrative officer” means the person directly responsible to the governing body for the administration of that particular entity.

      3.  “Governing body” means the board, council, commission or other body in which the general legislative and fiscal powers of the local government are vested.

      4.  “Proprietary information” means:

      (a) Any trade secret or confidential business information that is contained in a bid submitted to a governing body or its authorized representative on a particular contract; or

      (b) Any other trade secret or confidential business information submitted to a governing body or its authorized representative by a bidder and designated as proprietary by the governing body or its authorized representative.

As used in this subsection, “confidential business information” means any information relating to the amount or source of any income, profits, losses or expenditures of a person, including data relating to cost or price submitted in support of a bid. The term does not include the amount of a bid submitted to a governing body or its authorized representative.

      5.  “Purchasing officer” means an authorized representative, officer, employee, representative, agent, consultant or member of a governing body who has participated in:

      (a) The evaluation of bids;

      (b) Negotiations concerning purchasing by a local government; or

      (c) The review or approval of the award, modification or extension of a contract.

      6.  “Trade secret” has the meaning ascribed to it in NRS 600A.030.

      Sec. 6.  Chapter 333 of NRS is hereby amended by adding thereto the provisions set forth as sections 7 and 8 of this act.

      Sec. 7.  1.  Except as otherwise provided in subsection 2, proprietary information regarding a trade secret does not constitute public information and is confidential.

      2.  A person shall not disclose proprietary information regarding a trade secret unless the disclosure is made for the purpose of a civil, administrative or criminal investigation or proceeding, and the person receiving the information represents in writing that protections exist under applicable law to preserve the integrity, confidentiality and security of the information.

      Sec. 8.  1.  Before a contract is awarded, a person who has provided a bid or proposal on the contract or an officer, employee, representative, agent or consultant of such a person shall not:

      (a) Make an offer or promise of future employment or business opportunity to, or engage in a discussion of future employment or business opportunity with, the chief, a purchasing officer or an employee of the using agency for which the contract is being offered;

      (b) Offer, give or promise to offer or give money, a gratuity or any other thing of value to the chief, a purchasing officer or an employee of the using agency for which the contract is being offered; or

      (c) Solicit or obtain any proprietary information regarding the contract from the chief, a purchasing officer or an employee of the using agency for which the contract is being offered.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1733 (Chapter 519, SB 303)ê

 

      2.  A person who violates any of the provisions of subsection 1 is guilty of a gross misdemeanor and shall be punished by imprisonment in the county jail for not more than 1 year, or by a fine of not less than $2,000 nor more than $50,000, or by both fine and imprisonment.

      Sec. 9.  NRS 333.020 is hereby amended to read as follows:

      333.020  As used in this chapter, unless the context otherwise requires:

      1.  “Chief” means the chief of the purchasing division.

      2.  “Director” means the director of the department of administration.

      3.  “Proprietary information” means:

      (a) Any trade secret or confidential business information that is contained in a bid submitted on a particular contract; or

      (b) Any other trade secret or confidential business information submitted by a bidder and designated as proprietary by the chief.

As used in this subsection, “confidential business information” means any information relating to the amount or source of any income, profits, losses or expenditures of a person, including data relating to cost or price submitted in support of a bid or proposal. The term does not include the amount of a bid or proposal.

      4.  “Purchasing division” means the purchasing division of the department of administration.

      [4.] 5.  “Purchasing officer” means a person who is authorized by the chief or a using agency to participate in:

      (a) The evaluation of bids or proposals for a contract;

      (b) Any negotiations concerning a contract; or

      (c) The development, review or approval of a contract.

      6.  “Request for a proposal” means a statement which sets forth the requirements and specifications of a contract to be awarded by competitive selection.

      [5.] 7.  “Trade secret” has the meaning ascribed to it in NRS 600A.030.

      8.  “Using agencies” means all officers, departments, institutions, boards, commissions and other agencies in the executive department of the state government which derive their support from public money in whole or in part, whether the money is provided by the State of Nevada, received from the Federal Government or any branch, bureau or agency thereof, or derived from private or other sources, excepting the Nevada rural housing authority, local governments as defined in NRS 354.474, conservation districts, irrigation districts and the University and Community College System of Nevada.

      [6.] 9.  “Volunteer fire department” means a volunteer fire department which pays industrial insurance premiums pursuant to the provisions of chapter 616 of NRS.

      Sec. 10.  Section 9 of this act becomes effective at 12:01 a.m. on October 1, 1995.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1734ê

 

CHAPTER 520, SB 298

Senate Bill No. 298–Senator Augustine

CHAPTER 520

AN ACT relating to physicians; prohibiting disciplinary action against a physician or an osteopathic physician for prescribing or administering certain controlled substances for the treatment of intractable pain; revising the definition of “practice of medicine”; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 630 of NRS is hereby amended by adding thereto a new section to read as follows:

      The board shall by regulation define the term “intractable pain” for the purposes of NRS 630.3066 and 633.521.

      Sec. 2.  NRS 630.020 is hereby amended to read as follows:

      630.020  “Practice of medicine” means:

      1.  To diagnose, treat, correct, prevent or prescribe for any human disease, ailment, injury, infirmity, deformity or other condition, physical or mental, by any means or instrumentality.

      2.  To apply principles or techniques of medical science in the diagnosis or the prevention of any such conditions.

      3.  To perform any of the acts described in subsections 1 and 2 by using equipment that transfers information concerning the medical condition of the patient electronically, telephonically or by fiber optics.

      4.  To offer, undertake, attempt to do or hold oneself out as able to do any of the acts described in subsections 1 and 2.

      [4.] 5.  To use in connection with a person’s name the words or letters “M.D.,” or any other title, word, letter or other designation intended to imply or designate him as a practitioner of medicine in any of its branches, except in the manner authorized by NRS 630A.220.

      Sec. 3.  NRS 630.3066 is hereby amended to read as follows:

      630.3066  A physician is not subject to disciplinary action solely for prescribing or administering to a patient under his care:

      1.  Amygdalin (laetrile), if the patient has consented in writing to the use of the substance.

      2.  Procaine hydrochloride with preservatives and stabilizers (Gerovital H3).

      3.  A controlled substance which is listed in schedule II, III, IV or V by the state board of pharmacy pursuant to NRS 453.146, if the controlled substance is lawfully prescribed or administered for the treatment of intractable pain in accordance with accepted standards for the practice of medicine.

      Sec. 4.  NRS 633.521 is hereby amended to read as follows:

      633.521  An osteopathic physician is not subject to disciplinary action solely for prescribing or administering to a patient under his care:

      1.  Amygdalin (laetrile), if the patient has consented to the use of the substance.

      2.  Procaine hydrochloride with preservatives and stabilizers (Gerovital H3).


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1735 (Chapter 520, SB 298)ê

 

      3.  A controlled substance which is listed in schedule II, III, IV or V by the state board of pharmacy pursuant to NRS 453.146, if the controlled substance is lawfully prescribed or administered for the treatment of intractable pain in accordance with accepted standards for the practice of osteopathic medicine.

 

________

 

 

CHAPTER 521, SB 283

Senate Bill No. 283–Committee on Human Resources and Facilities

CHAPTER 521

AN ACT relating to the commission on mental health and mental retardation; providing an exception to the requirement for open and public meetings for certain meetings of the commission; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 433.534 is hereby amended to read as follows:

      433.534  1.  The rights of a client enumerated in this chapter must not be denied except to protect the client’s health and safety or to protect the health and safety of others, or both. Any denial of those rights in any facility must be entered in the client’s record of treatment, and notice of the denial must be forwarded to the administrative officer of the facility. Failure to report denial of rights by an employee may be grounds for dismissal.

      2.  If the administrative officer of a facility receives notice of a denial of rights as provided in subsection 1, he shall cause a full report to be prepared which must set forth in detail the factual circumstances surrounding the denial. Such a report is confidential and must not be disclosed. A copy of the report must be sent to the commission.

      3.  The commission:

      (a) Shall receive reports of and may investigate apparent violations of the rights guaranteed by this chapter;

      (b) May act to resolve disputes relating to apparent violations;

      (c) May act on behalf of clients to obtain remedies for any apparent violations; and

      (d) Shall otherwise endeavor to safeguard the rights guaranteed by this chapter.

      4.  Pursuant to NRS 241.030, the commission may close any portion of a meeting in which it considers the character, alleged misconduct or professional competence of a person in relation to:

      (a) The denial of the rights of a client; or

      (b) The care and treatment of a client.

The provisions of this subsection do not require a meeting of the commission to be closed to the public.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1736ê

 

CHAPTER 522, SB 246

Senate Bill No. 246–Committee on Legislative Affairs and Operations

CHAPTER 522

AN ACT relating to the prefiling of legislative measures; expanding the persons who may request that measures be prefiled; clarifying that prefiled measures must be disclosed to the public; revising provisions regarding the delivery of prefiled measures; prohibiting the prefiling of a concurrent resolution and a resolution of one house; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 218.277 is hereby amended to read as follows:

      218.277  1.  [On and after November 15 of each year in which a general election is held, members] Any member of the next succeeding regular session of the legislature [who have received their certificates of election and holdover members of the senate are authorized to prefile legislative bills and resolutions with the legislative counsel for introduction in the next succeeding regular session of the legislature.] and any entity that is authorized to request the preparation of a legislative measure may request the legislative counsel to prefile any legislative bill or joint resolution that was requested by that legislator or entity for introduction in the next succeeding regular session of the legislature.

      2.  Such bills and joint resolutions [shall] must be in such final and correct form for introduction in the legislature as required by the constitution and this chapter.

      3.  The legislative counsel shall not prefile a bill or joint resolution requested by:

      (a) A member of the legislature who is not a candidate for reelection or any entity that is authorized to request the preparation of a legislative measure until after the general election immediately preceding the regular session of the legislature.

      (b) A member of the legislature who is elected or reelected to his office at the general election immediately preceding the regular session of the legislature until he is determined to have received the highest number of votes pursuant to the canvass of votes required by NRS 293.395.

      Sec. 2.  NRS 218.278 is hereby amended to read as follows:

      218.278  1.  The legislative counsel shall, upon receipt of requests for prefiling bills and joint resolutions , [for prefiling,] transmit those bills and resolutions that may be prefiled to the secretary of the senate or the chief clerk of the assembly, as appropriate. The secretary or chief clerk shall number the bills and joint resolutions consecutively in the same manner as during regular sessions of the legislature and is responsible for the safekeeping of such bills and joint resolutions.

      2.  After a bill or joint resolution has been properly numbered , the legislative counsel shall deliver a copy to the superintendent of the state printing and micrographics division of the department of administration. The superintendent shall print the copy in the same manner as during regular sessions of the legislature.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1737 (Chapter 522, SB 246)ê

 

legislature. The bill or joint resolution must contain [the introducer’s name, the date of the convening of the next succeeding regular session of the legislature and the standing committee to which the introducer proposes to refer the prefiled bill, except that any bill for an appropriation other than for the immediate expense of the legislature must bear a date 10 days after the convening of the session.] :

      (a) The name of the introducer;

      (b) The date on which it was prefiled;

      (c) If it was not requested by a member of the legislature, the name of the entity that requested the preparation of the bill or joint resolution; and

      (d) The standing committee of the senate or assembly to which the bill or joint resolution is proposed to be referred. The standing committee must be determined pursuant to the rules or recommendations for the referral of bills and joint resolutions adopted by the appropriate house during the preceding regular session of the legislature.

      3.  The number of copies to be printed must be determined by the legislative counsel, and the expenses of printing and mailing must be paid from the legislative fund.

      4.  [Unless authorized by the introducer, the] The legislative counsel shall [not] release copies of a prefiled bill or joint resolution to [other members of the legislature or to] the public.

      Sec. 3.  NRS 218.279 is hereby amended to read as follows:

      218.279  [Immediately upon] Upon the convening of the next succeeding regular session of the legislature , [the legislative counsel shall deliver] all prefiled bills and joint resolutions [to the persons who requested such bills or resolutions.] must be introduced and referred to a standing committee in the order in which they are numbered.

 

________

 

 

CHAPTER 523, SB 243

Senate Bill No. 243–Committee on Finance

CHAPTER 523

AN ACT relating to school districts; requiring the board of trustees of a school district to prescribe procedures for the approval of orders for the payment of money belonging to the school district; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 387.310 is hereby amended to read as follows:

      387.310  1.  Except as otherwise provided by the board of trustees, the clerk of the board shall draw all orders for the payment of money belonging to the school district.

      [2.] The orders must be listed on cumulative voucher sheets . [and a copy presented to each of the members of the board of trustees present at a meeting and mailed to any absent member.]


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1738 (Chapter 523, SB 243)ê

 

      2.  The board of trustees shall prescribe the procedures by which the orders must be approved and the cumulative voucher sheets signed. The procedures must provide:

      (a) That the approval of the board of trustees is required before orders are paid unless a payment must be expedited for the school district to:

             (1) Receive a discount or other savings which is related to the timeliness of payment;

             (2) Avoid a service charge or other cost which is related to the timeliness of payment; or

             (3) Abide by a purchase order, contract or other order for payment which has been approved by the board of trustees at a public meeting.

      (b) For ratification by the board of trustees at its next regularly scheduled meeting of any payment that is made without the approval of the board pursuant to an exception set forth in paragraph (a).

      3.  When the orders have been approved [by a majority of the board of trustees,] and the cumulative voucher sheets have been signed [by the president and the clerk of the board of trustees, or by a majority of the members of the board of trustees,] in accordance with such procedures, the orders are valid vouchers in the hands of the county auditor for him to issue warrants on the county treasurer to be paid out of money belonging to the school district.

      [3.] 4.  No order in favor of the board of trustees or any member thereof, except for salaries as authorized by NRS 386.320, authorized travel expenses and subsistence of trustees or for services of any trustee as clerk of the board, may be drawn.

      [4.] 5.  No order for salary for any teacher may be drawn unless the teacher is included in the directory of teachers supplied to the clerk of the board of trustees pursuant to the provisions of NRS 391.045.

      [5.] 6.  An order drawn by a clerk of a board of trustees pursuant to subsection 1 is void if not presented for payment within 1 year after the date of issuance.

      [6.] 7.  Any order remaining unpaid after the expiration of 1 year, whether outstanding or uncalled for in the office of the county auditor, must be canceled by the county auditor, who shall immediately notify the county treasurer of the cancellation. The county treasurer shall not pay a warrant presented for payment more than 1 year after the date of issuance of such an order. This subsection does not apply if the board of trustees establishes and administers a separate account pursuant to NRS 354.603.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1739ê

 

CHAPTER 524, SB 571

Senate Bill No. 571–Committee on Finance

CHAPTER 524

AN ACT relating to unemployment compensation; revising the provisions governing the allocation of the money in the unemployment compensation administration fund; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 612.605 is hereby amended to read as follows:

      612.605  1.  There is hereby created the unemployment compensation administration fund as a special revenue fund.

      2.  All money which is deposited or paid into this fund is hereby appropriated to the administrator.

      3.  All money in the fund may be expended solely for the purpose of defraying the cost of the administration of this chapter.

      4.  All money received from the Department of Labor for the fund pursuant to Section 302 of the Social Security Act (42 U.S.C. § 502) may be expended solely for the purposes and in the amounts found necessary by the Department of Labor for the proper and efficient administration of this chapter.

      5.  In addition to money deposited pursuant to NRS 612.617, the fund consists of:

      (a) All money appropriated by this state.

      (b) All money received from the United States of America or any agency thereof, including the Department of Labor, the Railroad Retirement Board, and the United States Employment Service.

      (c) All money received from any other source, for such purpose.

      6.  Money received from the Railroad Retirement Board as compensation for services or facilities supplied to the board must be paid into the fund.

      7.  [Any] Except as otherwise provided in NRS 612.607, any balances in the fund do not lapse at any time [, but] and are continuously available to the administrator for expenditure consistent with this chapter.

      8.  Money in the fund must not be commingled with other state money, but must be maintained in a separate account on the books of the depositary. The account must be secured by the depositary in which it is held to the same extent and in the same manner as required by the general depositary laws of the state, and collateral pledged must be maintained in a separate custody account.

      9.  All sums recovered on any official bond for losses sustained by the unemployment compensation administration fund must be deposited in the unemployment compensation administration fund.

      10.  All money requisitioned and deposited in the fund pursuant to NRS 612.617 must be used in accordance with the conditions specified in NRS 612.617.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1740 (Chapter 524, SB 571)ê

 

      Sec. 2.  NRS 612.606 is hereby amended to read as follows:

      612.606  1.  Except as otherwise provided in subsection 4, in addition to any other contribution required by this chapter, each employer shall make payments into the unemployment compensation administration fund for the program for the employment of claimants and other unemployed persons at the rate of .05 percent of the wages he pays.

      2.  The interest and forfeit provisions of NRS 612.620 and 612.740, respectively, are inapplicable to the payments required by this section.

      3.  In determining unemployment compensation contribution rates assigned to employers pursuant to this chapter, payments paid into the unemployment compensation administration fund for the program for the employment of claimants and other unemployed persons pursuant to this section must remain separate from any other contribution paid pursuant to this chapter and must not be included in any manner in computing the contribution rates to be assigned to employers under NRS 612.550.

      4.  The provisions of this section do not apply to an employer:

      (a) Who has been assigned a contribution rate of 5.4 percent pursuant to subsection 6 of NRS 612.550; or

      (b) Who has elected to make reimbursement in lieu of contributions pursuant to NRS 612.553.

      Sec. 3.  NRS 612.607 is hereby amended to read as follows:

      612.607  1.  All payments collected pursuant to NRS 612.606 must be deposited in the unemployment compensation administration fund. At the end of each fiscal year, the state controller shall transfer to the clearing account in the unemployment compensation fund the amount by which the unencumbered balance of the money deposited in the unemployment compensation administration fund pursuant to this subsection exceeds the amount of that money which the legislature has authorized for expenditure during the first 90 days of the succeeding fiscal year.

      2.  [The] Except for money transferred from the unemployment compensation administration fund pursuant to subsection 1, the administrator may only expend the money collected for the employment of claimants and other unemployed persons to:

      (a) Establish and administer an employment training program which must foster job creation, minimize unemployment costs of employers and meet the needs of employers for skilled workers by providing training to unemployment compensation claimants [;] and other unemployed persons; and

      (b) Pay the costs of the collection of payments required pursuant to NRS 612.606.

      3.  The money used for the program for the employment of claimants and other unemployed persons must supplement and not displace money available through existing employment training programs conducted by any employer or public agency and must not replace, parallel, supplant, compete with or duplicate in any way existing apprenticeship programs approved by the state apprenticeship council.

      Sec. 4.  This act becomes effective on July 1, 1995.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1741ê

 

CHAPTER 525, SB 386

Senate Bill No. 386–Committee on Finance

CHAPTER 525

AN ACT relating to education; revising provisions governing the program of accountability of public schools; removing the prospective expiration of certain of such provisions; revising provisions governing the administration of statewide achievement and proficiency examinations; making an appropriation; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 385.347 is hereby amended to read as follows:

      385.347  1.  The board of trustees of each school district in this state, in cooperation with associations recognized by the state board as representing licensed personnel in education in the district, shall adopt a program providing for the accountability of the school district to the residents of the district and to the state board for the quality of the schools and the educational achievement of the pupils in the district.

      2.  The board of trustees of each school district [must report during] shall, on or before March 31 of each year , report to the residents of the district concerning:

      (a) The educational goals and objectives of the school district . [;

      (b) A comparison of pupil achievement]

      (b) Pupil achievement for grades 4, 8 and 11 for each school in the district and the district as a whole . [at each age and grade level for the current school year with that of previous school years;] Unless otherwise directed by the department, the board of trustees of the district shall base its report on the results of the examinations administered pursuant to NRS 389.015 and shall compare the results of those examinations for the current school year with those of previous school years. In addition, the board shall also report the results of other examinations of pupil achievement administered to each pupil in the school district in grades other than 4, 8 and 11. The results of these examinations for the current school year must be compared with those of previous school years.

      (c) The ratio of pupils to teachers in kindergarten and at each grade level for each elementary school in the district and the district as a whole , the average class size for each required course of study for each secondary school in the district and the district as a whole, and other data concerning licensed and unlicensed employees of the school district . [;]

      (d) A comparison of the types of classes that each teacher has been assigned to teach with the qualifications and licensure of the teacher, for each school in the district and the district as a whole . [;]

      (e) The total expenditure per pupil [, set forth individually for each source of funding,] for each school in the district and the district as a whole . [;]

      (f) The curriculum used by the school district, including any special programs for pupils at an individual school . [;]


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1742 (Chapter 525, SB 386)ê

 

      (g) Records of the attendance and [advancement] truancy of pupils in all grades, for each school in the district and the district as a whole . [, and of graduation rates for pupils in each high school in the district;]

      (h) The annual rate of pupils who drop out of school in grades 9 to 12, inclusive, for each such grade, for each school in the district and for the district as a whole.

      (i) Efforts made by the school district and by each school in the district to increase communication with the parents of pupils in the district . [; and

      (i)] (j) Records of incidents involving weapons or violence for each school in the district.

      (k) Records of the suspension and expulsion of pupils required or authorized pursuant to NRS 392.466 and 392.467.

      (l) The transiency rate of pupils for each school in the district and the district as a whole.

      (m) Each source of funding for the school district.

      (n) Such other information as is directed by the superintendent of public instruction.

      3.  The superintendent of public instruction shall:

      (a) Prescribe forms for the reports required pursuant to subsection 2 and provide the forms to the respective school districts.

      (b) Provide statistical information and technical assistance to the school districts to ensure that the reports provide comparable information with respect to each school in each district and among the districts.

      (c) Consult with a representative of:

             (1) The Nevada State Education Association;

             (2) The Nevada Association of School Boards;

             (3) The Nevada Association of School Administrators; and

             (4) The Nevada Parent Teachers Association,

concerning the program and consider any advice or recommendations submitted by the representatives with respect to the program.

      4.  On or before April 15 of each year, the board of trustees of each school district shall submit to the state board the report made pursuant to subsection 2. On or before June 15 of each year, the board of trustees of each school district shall submit to the state board:

      (a) A separate report summarizing the effectiveness of the district’s program of accountability during the school year; and

      (b) A description of the efforts the district has made to correct deficiencies identified in the report submitted pursuant to paragraph (a).

      5.  On or before February 1 of each year, the superintendent of public instruction shall analyze the information submitted to the state board and report to the legislature concerning the effectiveness of the programs of accountability adopted pursuant to this section. In even-numbered years, the report must be submitted to the legislative commission.

      Sec. 2.  NRS 389.015 is hereby amended to read as follows:

      389.015  1.  The board of trustees of each school district shall administer examinations in all public schools within its district to determine the achievement and proficiency of pupils in:

      (a) Reading;

      (b) Writing; and


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1743 (Chapter 525, SB 386)ê

 

      (c) Mathematics.

      2.  The examinations required by subsection 1 must be administered [before] :

      (a) Before the completion of grades 4, 8 and 11.

      [2.] (b) In each school district at the same time. The time for the administration of the examinations must be prescribed by the state board.

      3.  Different standards of proficiency may be adopted for pupils with diagnosed learning disabilities.

      [3.] 4.  If a pupil fails to demonstrate adequate achievement on the examination administered before the completion of grade 4 or 8, he may be promoted to the next higher grade, but the results of his examination must be evaluated to determine what remedial study is appropriate. If a pupil fails to pass the proficiency examination administered before the completion of grade 11, he must not be graduated until he is able, through remedial study, to pass the proficiency examination, but he may be given a certificate of attendance, in place of a diploma, if he has reached the age of 17 years.

      [4.] 5.  The state board shall prescribe standard examinations of achievement and proficiency to be administered pursuant to subsection 1. The examinations on reading and mathematics prescribed for grades 4 and 8 must be selected from examinations created by private entities and administered to a national reference group, and must allow for a comparison of the achievement and proficiency of pupils in grades 4 and 8 in this state to that of a national reference group of pupils in grades 4 and 8. The questions contained in the examinations and the approved answers used for grading them are confidential, and disclosure is unlawful except:

      (a) To the extent necessary for administering and evaluating the examinations.

      (b) That a disclosure may be made to a state officer who is a member of the executive or legislative branch to the extent that it is related to the performance of that officer’s duties.

      Sec. 3.  NRS 389.015 is hereby amended to read as follows:

      389.015  1.  The board of trustees of each school district shall administer examinations in all public schools within its district to determine the achievement and proficiency of pupils in:

      (a) Reading;

      (b) Writing; and

      (c) Mathematics.

      2.  The examinations required by subsection 1 must be [administered:

      (a) Before] :

      (a) Administered before the completion of grades 4, 8 and 11.

      (b) [In] Administered in each school district at the same time. The time for the administration of the examinations must be prescribed by the state board.

      (c) Scored by a single private entity that has contracted with the state board to score the examinations. The entity shall report the results of the examinations in the form required by the department.

      3.  Different standards of proficiency may be adopted for pupils with diagnosed learning disabilities.

      4.  If a pupil fails to demonstrate adequate achievement on the examination administered before the completion of grade 4 or 8, he may be promoted to the next higher grade, but the results of his examination must be evaluated to determine what remedial study is appropriate.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1744 (Chapter 525, SB 386)ê

 

the next higher grade, but the results of his examination must be evaluated to determine what remedial study is appropriate. If a pupil fails to pass the proficiency examination administered before the completion of grade 11, he must not be graduated until he is able, through remedial study, to pass the proficiency examination, but he may be given a certificate of attendance, in place of a diploma, if he has reached the age of 17 years.

      5.  The state board shall prescribe standard examinations of achievement and proficiency to be administered pursuant to subsection 1. The examinations on reading and mathematics prescribed for grades 4 and 8 must be selected from examinations created by private entities and administered to a national reference group, and must allow for a comparison of the achievement and proficiency of pupils in grades 4 and 8 in this state to that of a national reference group of pupils in grades 4 and 8. The questions contained in the examinations and the approved answers used for grading them are confidential, and disclosure is unlawful except:

      (a) To the extent necessary for administering and evaluating the examinations.

      (b) That a disclosure may be made to a state officer who is a member of the executive or legislative branch to the extent that it is related to the performance of that officer’s duties.

      (c) That specific questions and answers may be disclosed if the superintendent of public instruction determines that the content of the questions and answers is not being used in a current examination and making the content available to the public poses no threat to the security of the current examination process.

      Sec. 4.  Section 2 of chapter 644, Statutes of Nevada 1993, at page 2746, is hereby amended to read as follows:

       Sec. 2.  This act becomes effective on July 1, 1993 . [, and expires by limitation on July 1, 1997.]

      Sec. 5.  Section 1 of Senate Bill No. 59 of this session is hereby amended to read as follows:

       Section 1.  NRS 389.015 is hereby amended to read as follows:

       389.015  1.  The board of trustees of each school district shall administer examinations in all public schools within its district to determine the achievement and proficiency of pupils in:

       (a) Reading;

       (b) Writing; and

       (c) Mathematics.

       2.  The examinations required by subsection 1 must be administered:

       (a) Before the completion of grades 4, 8 and 11.

       (b) In each school district at the same time. The time for the administration of the examinations must be prescribed by the state board.

       3.  Different standards of proficiency may be adopted for pupils with diagnosed learning disabilities.

       4.  If a pupil fails to demonstrate adequate achievement on the examination administered before the completion of grade 4 or 8, he may be promoted to the next higher grade, but the results of his examination must be evaluated to determine what remedial study is appropriate. If a pupil fails to pass the proficiency examination administered before the completion of grade 11, he must not be graduated until he is able, through remedial study, to pass the proficiency examination, but he may be given a certificate of attendance, in place of a diploma, if he has reached the age of 17 years.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1745 (Chapter 525, SB 386)ê

 

through remedial study, to pass the proficiency examination, but he may be given a certificate of attendance, in place of a diploma, if he has reached the age of 17 years.

       5.  The state board shall prescribe standard examinations of achievement and proficiency to be administered pursuant to subsection 1. The examinations on reading and mathematics prescribed for grades 4 and 8 must be selected from examinations created by private entities and administered to a national reference group, and must allow for a comparison of the achievement and proficiency of pupils in grades 4 and 8 in this state to that of a national reference group of pupils in grades 4 and 8. The questions contained in the examinations and the approved answers used for grading them are confidential, and disclosure is unlawful except:

       (a) To the extent necessary for administering and evaluating the examinations.

       (b) That a disclosure may be made to a state officer who is a member of the executive or legislative branch to the extent that it is related to the performance of that officer’s duties.

       (c) That specific questions and answers may be disclosed if the superintendent of public instruction determines that the content of the questions and answers is not being used in a current examination and making the content available to the public poses no threat to the security of the current examination process.

      Sec. 6.  1.  There is hereby appropriated from the state general fund to the department of education the sum of $670,030 to pay for costs incurred by the department during the fiscal years 1995-97 relating to the standard examinations of achievement and proficiency of pupils administered pursuant to NRS 389.015.

      2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 1997, and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 7.  1.  This section and section 6 of this act become effective upon passage and approval or upon June 30, 1995, whichever occurs earlier.

      2.  Sections 1, 2, 4 and 5 of this act become effective on July 1, 1995.

      3.  Section 3 of this act becomes effective on July 1, 1996.

 

________


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1746ê

 

CHAPTER 526, SB 300

Senate Bill No. 300–Committee on Commerce and Labor

CHAPTER 526

AN ACT relating to insurance; revising the provisions relating to the approval of rates by the commissioner of insurance; authorizing certain insurers annually to review with policyholders the coverage and benefits provided in their policies of insurance; requiring the disclosure of certain information by claimants under certain policies of motor vehicle insurance; providing that courses in automobile driver education must include instruction in motor vehicle insurance; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 686B.110 is hereby amended to read as follows:

      686B.110  1.  The commissioner shall consider each proposed increase or decrease in the rate of any kind or line of insurance or subdivision thereof filed with him pursuant to NRS 686B.070. If the commissioner finds that [the] a proposed increase will result in a rate which is not in compliance with NRS 686B.050, he shall disapprove the proposal. The commissioner shall approve or disapprove each proposal no later than 60 days after it is [filed with him, unless additional time is required to allow the intervention or participation of the advocate for insurance customers. In no event may this period of review be extended more than 60 additional days.] determined by him to be complete pursuant to subsection 4. If the commissioner fails to approve or disapprove the proposal within that period, the proposal shall be deemed approved.

      2.  Whenever an insurer has no legally effective rates as a result of the commissioner’s disapproval of rates or other act, the commissioner shall on request specify interim rates for the insurer that are high enough to protect the interests of all parties and may order that a specified portion of the premiums be placed in an escrow account approved by him. When new rates become legally effective, the commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are de minimis must not be required.

      3.  If the commissioner disapproves a proposed rate and an insurer requests a hearing to determine the validity of his action, the insurer has the burden of showing compliance with the applicable standards for rates established in NRS 686B.010 to 686B.175, inclusive. Any such hearing [may] must be held [before the date the rates are intended to become effective.] :

      (a) Within 30 days after the request for a hearing has been submitted to the commissioner; or

      (b) Within a period agreed upon by the insurer and the commissioner.

If the hearing is not held within the period specified in paragraph (a) or (b), or if the commissioner fails to issue an order concerning the proposed rate for which the hearing is held within 45 days after the hearing, the proposed rate shall be deemed approved.

      4.  The commissioner shall by regulation specify the documents or any other information which must be included in a proposal to increase or decrease a rate submitted to him pursuant to subsection 1.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1747 (Chapter 526, SB 300)ê

 

decrease a rate submitted to him pursuant to subsection 1. Each such proposal shall be deemed complete upon its filing with the commissioner, unless the commissioner, within 15 business days after the proposal is filed with him, determines that the proposal is incomplete because the proposal does not comply with the regulations adopted by him pursuant to this subsection.

      Sec. 2.  Chapter 687B of NRS is hereby amended by adding thereto a new section to read as follows:

      Each insurer who delivers a policy in this state which is effective for 1 year or more may, for the period in which the policy is effective, review annually with the policyholder to whom the policy is delivered the coverage and benefits provided in the policy.

      Sec. 3.  NRS 687B.350 is hereby amended to read as follows:

      687B.350  An insurer shall not renew a policy on different terms, including different rates, unless the insurer notifies the insured in writing of the different terms or rates at least 30 days before those terms or rates become effective. If the insurer offers or purports to renew the policy but on different terms, including different rates, the policyholder [shall,] may, for 30 days after he receives notice [calling his attention to] of the changes in the policy, [have the option of canceling it.] cancel the policy. If he elects to cancel, the insurer shall refund to him the excess of the premium paid by him above the pro rata premium for the expired portion of the new term.

      Sec. 4.  Chapter 690B of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in subsection 2, any party against whom a claim is asserted for compensation or damages for personal injury under a policy of motor vehicle insurance covering a private passenger car may require any attorney representing the claimant to provide to the party and his insurer or attorney, not more than once every 90 days, all medical reports or bills concerning the claim.

      2.  In lieu of providing medical reports or bills pursuant to subsection 1, the claimant or any attorney representing the claimant may authorize in writing any provider of health care to provide to the party and his insurer or attorney photocopies of the medical reports or bills.

      3.  Upon receipt of any photocopies of medical reports or bills or a written authorization pursuant to subsection 2, the insurer who issued the policy specified in subsection 1 shall, upon request, immediately disclose to the insured or the claimant all pertinent facts or provisions of the policy relating to any coverage at issue.

      Sec. 5.  NRS 389.090 is hereby amended to read as follows:

      389.090  1.  The state board of education shall adopt regulations governing the establishment, conduct and scope of automobile driver education in the public schools of this state.

      2.  The aims and purposes of automobile driver education are to develop the knowledge, attitudes, habits and skills necessary for the safe operation of motor vehicles.

      3.  The board of trustees of a school district may establish and maintain automobile driver education classes during regular semesters and summer sessions and during the regular school day and at times other than during the regular school day for:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1748 (Chapter 526, SB 300)ê

 

      (a) Pupils enrolled in the regular full-time day high schools in the school district.

      (b) Pupils enrolled in summer classes conducted in high schools in the school district.

      4.  A board of trustees maintaining courses in automobile driver education shall insure against any liability arising out of the use of motor vehicles in connection with [such] those courses. The cost of [such insurance shall] the insurance must be paid from available school district funds.

      5.  Automobile driver education [shall] must be provided by boards of trustees of school districts in accordance with regulations of the state board of education and may not be duplicated by any other agency, department, commission or officer of the State of Nevada.

      6.  Each course in automobile driver education provided by a board of trustees of a school district must include, without limitation, instruction in motor vehicle insurance.

      Sec. 6.  Chapter 483 of NRS is hereby amended by adding thereto a new section to read as follows:

      Each course of training provided by a school for training drivers licensed pursuant to NRS 483.700 to 483.780, inclusive, must include, without limitation, instruction in motor vehicle insurance.

      Sec. 7.  As soon as practicable after October 1, 1995, but not later than April 1, 1996, the commissioner of insurance shall adopt the regulations required pursuant to section 1 of this act.

 

________

 

 

CHAPTER 527, SB 505

Senate Bill No. 505–Committee on Commerce and Labor

CHAPTER 527

AN ACT relating to insurance; adding provisions concerning reinsurance, regulation of capital according to risk and actuarial evaluation of reserves; making various other changes relating to insurance; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 679B of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.

      Sec. 2.  1.  No cause of action arises, nor may any liability be imposed against any person for the act of communicating or delivering information or data to the commissioner or his authorized representative or examiner pursuant to an examination made under this chapter, if the act of communication or delivery was performed in good faith and without fraudulent intent, the intent to deceive or gross negligence.

      2.  The commissioner, his authorized representative or any examiner appointed by him is entitled to an award of attorney’s fees and costs if he is the prevailing party in a civil cause of action for libel, slander or any other relevant tort arising out of activities in carrying out the provisions of NRS 679B.230 to 679B.300, inclusive, and the party bringing the action was not substantially justified in doing so.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1749 (Chapter 527, SB 505)ê

 

679B.230 to 679B.300, inclusive, and the party bringing the action was not substantially justified in doing so. For the purposes of this subsection, an action is “substantially justified” if it had a reasonable basis in law or fact at the time that it was brought.

      Sec. 3.  1.  If requested by the person examined, within the period allowed under subsection 1 of NRS 679B.280, or if ordered pursuant to subsection 2 of that section, the commissioner shall hold a hearing relative to the report and shall not file the report in the division for public inspection until after the hearing and his order thereon.

      2.  If no hearing has been requested or ordered, the examination report, with such modifications, if any, thereof as the commissioner deems proper, must be filed in the division for public inspection within 30 days after the expiration of the period allowed for review by the person examined. Otherwise the report must be so filed within 30 days after final hearing thereon, except that the commissioner may withhold from public inspection any report for so long as he deems such withholding to be necessary for the protection of the person examined against unwarranted injury or to be in the public interest.

      3.  The commissioner shall forward to the person examined a copy of the examination report as filed, together with any recommendations or statements relating thereto which he deems proper.

      4.  If the report concerns the examination of a domestic insurer, a copy of the report, or a summary thereof approved by the commissioner must be presented by the insurer’s chief executive officer to the insurer’s board of directors or similar governing body at its next regular board meeting. A copy of the report must also be furnished by the secretary of the insurer, if incorporated, or by the attorney-in-fact if a reciprocal insurer, within 30 days after receipt of the report in final form by the insurer, to each member of the insurer’s board of directors or board of governors, if a reciprocal insurer, and the certificate of the secretary or attorney-in-fact that a copy of the examination report has been so furnished shall be deemed to constitute knowledge of the contents of the report by each such member.

      Sec. 4.  1.  The commissioner may disclose the content of a report, preliminary report, or the results of an examination, or any matter relating thereto, to the division or any agency of any other state or country that regulates insurance, or to law enforcement officers of this or any other state, or to an agency of the Federal Government at any time, if the agency or office receiving the report or matter relating thereto agrees in writing to hold it confidential in a manner consistent with this chapter. Access may also be granted to the National Association of Insurance Commissioners.

      2.  All working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this chapter are confidential, are not subject to subpoena, and may not be made public by the commissioner or any other person, except as necessary for a hearing or as provided in this section and subsection 4 of section 3 of this act. A person to whom information is given must agree in writing before receiving the information to provide to it the same confidential treatment as required by this section, unless the prior written consent of the insurer to which it pertains has been obtained.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1750 (Chapter 527, SB 505)ê

 

section, unless the prior written consent of the insurer to which it pertains has been obtained.

      Sec. 5.  NRS 679B.230 is hereby amended to read as follows:

      679B.230  1.  For the purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with law, the commissioner shall, as often as he deems advisable, examine the affairs, transactions, accounts, records and assets of each authorized insurer, and of any person as to any matter relevant to the financial affairs of the insurer or to the examination. Except as otherwise expressly provided [,] in this Title, he shall so examine each [domestic] authorized insurer not less frequently than every [3] 5 years. Examination of an alien insurer [shall] must be limited to its insurance transactions, assets, trust deposits and affairs in the United States , [of America,] except as otherwise required by the commissioner.

      2.  The commissioner shall in like manner examine each insurer applying for an initial certificate of authority to transact insurance in this state.

      3.  In lieu of [making his own examination,] an examination under this chapter, the commissioner may [, in his discretion,] accept a [full] report of the [last recent] examination of a foreign or alien insurer [, certified to by the insurance supervisory officer of another state.] prepared by the division for a foreign insurer’s state of domicile or an alien insurer’s state of entry into the United States.

      4.  As far as practical the examination of a foreign or alien insurer [shall] must be made in cooperation with the insurance supervisory officers of other states in which the insurer transacts business.

      Sec. 6.  NRS 679B.250 is hereby amended to read as follows:

      679B.250  1.  [Whenever] When the commissioner determines to examine the affairs of any person, he shall designate one or more examiners and instruct them as to the scope of the examination. The examiner shall, upon demand, exhibit his official credentials to the person under examination.

      2.  The commissioner shall conduct each examination in an expeditious, fair and impartial manner.

      3.  Upon any such examination the commissioner, or the examiner if specifically so authorized in writing by the commissioner, [shall have power to] may administer oaths, and [to] examine under oath any [individual] person as to any matter relevant to the affairs under examination or relevant to the examination.

      4.  Every person being examined, its officers, attorneys, employees, agents and representatives shall make freely available to the commissioner or his examiners the accounts, records, documents, files, information, assets and matters of [such] the person examined in his possession or control relating to the subject of the examination and shall facilitate the examination.

      5.  If the commissioner or examiner finds any accounts or records to be inadequate, or inadequately kept or posted, he may employ experts to reconstruct, rewrite, post or balance them at the expense of the person being examined if [such] that person has failed to maintain, complete or correct [such] the records or accounting after the commissioner or examiner has given him written notice and a reasonable opportunity to do so.

      6.  Neither the commissioner nor any examiner [shall] may remove any record, account, document, file or other property of the person being examined from the offices or place of [such] the person examined except with [the] his written consent [of such person in advance of such] before removal or pursuant to an order of court duly obtained.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1751 (Chapter 527, SB 505)ê

 

examined from the offices or place of [such] the person examined except with [the] his written consent [of such person in advance of such] before removal or pursuant to an order of court duly obtained. This provision [shall not be deemed to] does not affect the making and removal of copies or abstracts of any such record, account, document or file.

      7.  Any [individual] person who refuses without just cause to be examined under oath or who willfully obstructs or interferes with the examiners in the exercise of their authority pursuant to this section is guilty of a misdemeanor.

      8.  This chapter does not limit the commissioner’s authority:

      (a) To terminate or suspend an examination in order to pursue other legal or regulatory action.

      (b) During any hearing or any legal action, to use and, if so ordered by a court, to make public a final or preliminary report of an examination, working papers or other documents of an examiner or insurer, or any other information discovered or developed during the course of an examination. Such documents must be given their appropriate evidentiary weight and must not be accepted as prima facie evidence of the facts contained therein.

      Sec. 7.  NRS 679B.270 is hereby amended to read as follows:

      679B.270  1.  [Upon] No later than 60 days after the completion of an examination, the examiner designated by the commissioner shall make a true report thereof which [shall] must comprise only facts appearing upon the books, records or other documents of the person examined, or as ascertained from the sworn testimony of [its] the officers or agents or other [individuals] persons examined concerning its affairs, and such conclusions and recommendations as may reasonably be warranted from [such] the facts. The report of examination [shall] must be verified by the oath of the examiner making the report.

      2.  Such a report of examination of an insurer so verified [shall be] is prima facie evidence in any action or proceeding for the receivership, conservation or liquidation of the insurer brought in the name of the state against the insurer, its officers or agents upon the facts stated therein.

      Sec. 8.  NRS 679B.280 is hereby amended to read as follows:

      679B.280  1.  [The] Upon receipt of the verified report of the examination, the commissioner shall deliver a copy of the [examination] report to the person examined, together with a notice affording [the person] him 10 days or such additional reasonable period as the commissioner for good cause may allow within which to review the report and [recommend changes therein.

      2.  If so requested by the person examined, within the period allowed under subsection 1, or if deemed advisable by the commissioner without such request, the commissioner shall hold a hearing relative to the report and shall not file the report in the division for public inspection until after such hearing and his order thereon.

      3.  If no such hearing has been requested or held, the examination report, with such modifications, if any, thereof as the commissioner deems proper, must be accepted by the commissioner and filed in the division for public inspection upon expiration of the review period provided for in subsection 1. The report must in any event be so accepted and filed within 6 months after final hearing thereon, except that the commissioner may withhold from public inspection any examination report for so long as he deems such withholding to be necessary for the protection of the person examined against unwarranted injury or to be in the public interest.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1752 (Chapter 527, SB 505)ê

 

to be necessary for the protection of the person examined against unwarranted injury or to be in the public interest.

      4.  The commissioner shall forward to the person examined a copy of the examination report as filed for public inspection, together with any recommendations or statements relating thereto which he deems proper.

      5.  If the report concerns the examination of a domestic insurer, a copy of the report, or a summary thereof approved by the commissioner, when filed for public inspection, or if withheld from public inspection under subsection 3, together with the recommendations or statements of the commissioner or his examiner, must be presented by the insurer’s chief executive officer to the insurer’s board of directors or similar governing body at a meeting thereof which must be held within 30 days next following receipt of the report in final form by the insurer. A copy of the report must also be furnished by the secretary of the insurer, if incorporated, or by the attorney-in-fact if a reciprocal insurer, to each member of the insurer’s board of directors or board of governors, if a reciprocal insurer, and the certificate of the secretary or attorney-in-fact that a copy of the examination report has been so furnished shall be deemed to constitute knowledge of the contents of the report by each such member.] make a written submission or rebuttal with respect to recommended changes or any matters contained in the report.

      2.  Within 30 days after the end of the period allowed for the receipt of written submissions or rebuttals, the commissioner shall fully consider and review the report, together with any written submissions or rebuttals and any relevant portions of the examiner’s working papers and enter an order:

      (a) Adopting the report as filed or with modification or corrections;

      (b) Rejecting the report with directions to the examiner to reopen the examination for purposes of obtaining additional data, documentation or information, and requiring the refiling of the report pursuant to subsection 1 of NRS 679B.270; or

      (c) For an investigatory hearing for purposes of obtaining additional documentation, data, information and testimony.

      3.  If the report reveals that the insurer is operating in violation of any law, regulation or previous order of the commissioner, the commissioner may order the insurer to take any action the commissioner considers necessary or appropriate to cure the violation.

      Sec. 9.  Chapter 680A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The commissioner may adopt regulations to define when an insurer is considered to be in a hazardous financial condition and to set forth the standards to be considered by the commissioner in determining whether the continued operation of an insurer transacting business in this state may be considered to be hazardous to its policyholders or creditors or to the general public.

      2.  If the commissioner determines after a hearing that any insurer is in a hazardous financial condition, he may, instead of suspending or revoking the insurer’s certificate of authority, limit the insurer’s certificate of authority as he deems reasonably necessary to correct, eliminate or remedy any conduct, condition or ground that is deemed to be a cause of the hazardous financial condition.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1753 (Chapter 527, SB 505)ê

 

      3.  An order or decision of the commissioner under this section is subject to review in accordance with NRS 679B.310 to 679B.370, inclusive, at the request of any party to the proceedings whose interests are substantially affected.

      Sec. 10.  NRS 680A.150 is hereby amended to read as follows:

      680A.150  To apply for an original certificate of authority an insurer shall file with the commissioner its written application therefor on forms as prescribed and furnished by the commissioner, accompanied by the applicable fees specified in NRS 680B.010 , [(fee schedule),] stating under the oath of the president or vice president or other chief officer and the secretary of the insurer, or of the attorney-in-fact [(] if a reciprocal insurer , [),] the insurer’s name, location of its home office , or principal office in the United States [(] if an alien insurer , [),] the kinds of insurance to be transacted, date of organization or incorporation, form of organization, state or country of domicile, and such additional information as the commissioner may reasonably require, together with the following documents, as applicable:

      1.  If a corporation, a copy of its charter or certificate or articles of incorporation, together with all amendments thereto, or as restated and amended under the laws of its state or country of domicile, currently certified by the public officer with whom the originals are on file in [such] that state or country.

      2.  If a domestic incorporated insurer or a mutual insurer, a copy of its bylaws, certified by the insurer’s corporate secretary.

      3.  If a reciprocal insurer, a copy of the power of attorney of its attorney-in-fact, certified by the attorney-in-fact; and if a domestic reciprocal insurer, the declaration provided for in NRS 694B.060.

      4.  A complete copy of its financial statement as of not earlier than the December 31 next preceding in form as customarily used in the United States [of America] by like insurers, sworn to by at least two executive officers of the insurer or certified by the public insurance supervisory officer of the insurer’s state of domicile, or of entry into the United States [of America(] if an alien insurer . [).]

      5.  A copy of the report of last examination made of the insurer within not more than [3] 5 years next preceding, certified by the public insurance supervisory officer of the insurer’s state of domicile, or of entry into the United States [of America(] if an alien insurer . [).]

      6.  The appointment of the commissioner pursuant to NRS 680A.250 as its attorney to receive service of legal process.

      7.  If a foreign or alien insurer, a certificate of the public insurance supervisory officer of its state or country of domicile showing that it is authorized or qualified for authority to transact in such state or country the kinds of insurance proposed to be transacted in this state.

      8.  If a foreign insurer, a certificate as to a deposit if it is to be tendered pursuant to NRS 680A.140.

      9.  A copy of the insurer’s rate book and of each form of policy currently proposed to be issued in this state, and of the form of application therefor.

      10.  If an alien insurer, a copy of the appointment and authority of its United States manager, certified by its officer having custody of its records.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1754 (Chapter 527, SB 505)ê

 

      11.  Designation by the insurer of its officer or representative authorized to appoint and remove its agents in this state.

      Sec. 11.  NRS 680A.200 is hereby amended to read as follows:

      680A.200  1.  The commissioner may refuse to continue or may suspend, limit or revoke an insurer’s certificate of authority if he finds after a hearing thereon, or upon waiver of hearing by the insurer, that the insurer has:

      (a) Violated or failed to comply with any lawful order of the commissioner;

      (b) Conducted his business in an unsuitable manner;

      (c) Willfully violated or willfully failed to comply with any lawful regulation of the commissioner; or

      (d) Violated any provision of this code other than one for violation of which suspension or revocation is mandatory.

In lieu of such a suspension or revocation, the commissioner may levy upon the insurer, and the insurer shall pay forthwith, an administrative fine of not more than $2,000 [.

      2.  The] for each act or violation.

      2.  Except as otherwise provided in chapter 696B of NRS, the commissioner shall suspend or revoke an insurer’s certificate of authority on any of the following grounds if he finds after a hearing thereon that the insurer:

      (a) Is in unsound condition, is being fraudulently conducted, or is in such a condition or is using such methods and practices in the conduct of its business as to render its further transaction of insurance in this state currently or prospectively hazardous or injurious to policyholders or to the public.

      (b) With such frequency as to indicate its general business practice in this state:

             (1) Has without just cause failed to pay, or delayed payment of, claims arising under its policies, whether the claims are in favor of an insured or in favor of a third person with respect to the liability of an insured to the third person; or

             (2) Without just cause compels insureds or claimants to accept less than the amount due them or to employ attorneys or to bring suit against the insurer or such an insured to secure full payment or settlement of such claims.

      (c) Refuses to be examined, or its directors, officers, employees or representatives refuse to submit to examination relative to its affairs, or to produce its books, papers, records, contracts, correspondence or other documents for examination by the commissioner when required, or refuse to perform any legal obligation relative to the examination.

      (d) Except as otherwise provided in NRS 681A.110, has reinsured all its risks in their entirety in another insurer.

      (e) Has failed to pay any final judgment rendered against it in this state upon any policy, bond, recognizance or undertaking as issued or guaranteed by it, within 30 days after the judgment became final or within 30 days after dismissal of an appeal before final determination, whichever date is the later.

      3.  The commissioner may, without advance notice or a hearing thereon, immediately suspend the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation or other delinquency proceedings have been commenced in any state by the public officer who supervises insurance for that state.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1755 (Chapter 527, SB 505)ê

 

proceedings for receivership, conservatorship, rehabilitation or other delinquency proceedings have been commenced in any state by the public officer who supervises insurance for that state.

      Sec. 12.  NRS 680A.265 is hereby amended to read as follows:

      680A.265  1.  Except as otherwise provided in subsection 5, every:

      (a) Domestic insurer;

      (b) Fraternal benefit society authorized to do business in this state pursuant to chapter 695A of NRS; and

      (c) Corporation subject to the provisions of chapter 695B of NRS,

shall file with the commissioner, on or before June 1 of each year, a financial statement as of December 31 of the preceding calendar year that is certified by a certified public accountant who is not an employee of the insurer. The commissioner may request a financial statement from a foreign or alien insurer.

      2.  [A] If a certified public accountant [shall immediately report to the commissioner] finds any violation of the laws of this state [found] during any audit he conducts pursuant to subsection 1 [.] , he shall, if the commissioner has adopted regulations pursuant to subsection 6 pertaining to the reporting of a violation found during an audit, report the violation in accordance with those regulations.

      3.  An insurer who does not file a report pursuant to subsection 1 on or before June 1 of each year is subject to the penalty imposed pursuant to NRS 680A.280.

      4.  A statement filed with the commissioner must not be a consolidated report with any other subsidiary, affiliate or parent company.

      5.  The provisions of this section do not apply to a domestic insurer who:

      (a) Is not licensed or authorized to do business in any state other than Nevada; or

      (b) Is exempted from the requirements of this section by order of the commissioner for good cause shown.

      6.  The commissioner may adopt reasonable regulations relating to annual audited financial reports to administer the provisions of this section.

      Sec. 13.  NRS 680A.270 is hereby amended to read as follows:

      680A.270  1.  Each authorized insurer shall annually on or before March 1, or within any reasonable extension of time therefor which the commissioner for good cause may have granted on or before [such] that date, file with the commissioner a full and true statement of its financial condition, transactions and affairs as of December 31 preceding. The statement [shall] must be in the general form and context of, and require information as called for by, the form of annual statement as currently in general and customary use in the United States [of America] for the type of insurer and kinds of insurance to be reported upon, with any useful or necessary modification or adaptation thereof, supplemented by additional information required by the commissioner. The statement [shall] must be verified by the oath of the insurer’s president or vice president and secretary or actuary, as applicable, or, in the absence of the foregoing, by two other principal officers , [;] or if a reciprocal insurer, by the oath of the attorney-in-fact, or its like officers if a corporation.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1756 (Chapter 527, SB 505)ê

 

      2.  The statement of an alien insurer [shall] must be verified by its United States manager or other officer duly authorized, and [shall] may relate only to the insurer’s transactions and affairs in the United States [of America] unless the commissioner requires otherwise. If the commissioner requires a statement as to such an insurer’s affairs throughout the world, the insurer shall file [such] the statement with the commissioner as soon as reasonably possible.

      3.  The commissioner may refuse to continue, or may suspend or revoke, the certificate of authority of any insurer failing to file its annual statement when due.

      4.  At the time of filing, the insurer shall pay the fee for filing its annual statement as prescribed by NRS 680B.010 . [(fee schedule).]

      5.  The commissioner may adopt regulations requiring each domestic, foreign and alien insurer which is authorized to transact insurance in this state to file the insurer’s annual statement with the National Association of Insurance Commissioners or its successor organization.

      6.  All ratios of financial analyses and synopses of examinations concerning insurers that are submitted to the division by the National Association of Insurance Commissioners’ Insurance Regulatory Information System are confidential and may not be disclosed by the division.

      Sec. 14.  Chapter 681A of NRS is hereby amended by adding thereto the provisions set forth as sections 15 to 61, inclusive, of this act.

      Sec. 15.  As used in NRS 681A.110 and sections 15 to 27, inclusive, of this act, “qualified financial institution in the United States” means an institution that:

      1.  Is organized, or in the case of a branch or agency of a foreign banking organization in the United States licensed, under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers; and

      2.  Is regulated, supervised and examined by federal or state authorities having regulatory authority over banks and trust companies.

      Sec. 16.  No credit may be taken as an asset or as a deduction from liability on account of reinsurance unless the reinsurer is authorized to transact insurance or reinsurance in this state or the requirements of section 17, 18, 19 or 20 of this act, and in any of these cases the requirements of sections 21 and 22 of this act also, are met.

      Sec. 17.  1.  Except as otherwise provided in subsection 2, credit must be allowed if reinsurance is ceded to an assuming insurer which is accredited as a reinsurer in this state. An accredited reinsurer is one which:

      (a) Files with the commissioner evidence of its submission to this state’s jurisdiction;

      (b) Submits to this state’s authority to examine its books and records;

      (c) Is licensed to transact insurance or reinsurance in at least one state, or in the case of a branch in the United States of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance in at least one state;

      (d) Files annually with the commissioner a copy of its annual statement filed with the division of its state of domicile or entry and a copy of its most recent audited financial statement; and


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1757 (Chapter 527, SB 505)ê

 

      (e) Maintains a surplus as regards policyholders in an amount which is not less than $20,000,000 and whose accreditation:

             (1) Has not been denied by the commissioner within 90 days after its submission; or

             (2) Has been approved by the commissioner.

      2.  No credit may be allowed a domestic ceding insurer if the assuming insurer’s accreditation has been revoked by the commissioner after notice and hearing.

      Sec. 18.  1.  Except as otherwise provided in subsection 2, credit must be allowed if reinsurance is ceded to an assuming insurer which is domiciled and licensed in, or in the case of a branch in the United States of an alien assuming insurer is entered through, a state which employs standards regarding credit for reinsurance substantially similar to those applicable under this chapter and the assuming insurer or branch in the United States of an alien assuming insurer:

      (a) Maintains a surplus as regards policyholders in an amount not less than $20,000,000; and

      (b) Submits to the authority of this state to examine its books and records.

      2.  The requirement of paragraph (a) of subsection 1 does not apply to reinsurance ceded and assumed pursuant to pooling among insurers affiliated with the same holding company.

      Sec. 19.  1.  Credit must be allowed if reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified financial institution in the United States for the payment of the valid claims of its policyholders and ceding insurers in the United States, their assigns and successors in interest. The assuming insurer shall report annually to the commissioner information substantially the same as that required to be reported on the National Association of Insurance Commissioners’ form of annual statement by licensed insurers to enable the commissioner to determine the sufficiency of the trust fund.

      2.  In the case of a single assuming insurer, the trust must consist of an account in trust equal to the assuming insurer’s liabilities attributable to business written in the United States and the assuming insurer shall maintain a surplus in trust of not less than $20,000,000.

      3.  In the case of a group of incorporated and individual unincorporated underwriters, the trust must consist of an account in trust equal to the group’s liabilities attributable to business written in the United States and the group shall maintain a surplus in trust of which $100,000,000 must be held jointly for the benefit of ceding insurers in the United States to any member of the group, and the group shall make available to the commissioner an annual certification of the solvency of each underwriter by the group’s domiciliary regulator and its independent public accountants.

      Sec. 20.  1.  Credit must be allowed if reinsurance is ceded to a group of incorporated insurers under common administration which:

      (a) Reports annually to the commissioner the information required by subsection 1 of section 19 of this act;

      (b) Has continuously transacted insurance outside the United States for at least 3 years immediately before making application for accreditation;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1758 (Chapter 527, SB 505)ê

 

      (c) Submits to this state’s authority to examine its books and records and bears the expense of the examination;

      (d) Has aggregate policyholders’ surplus of $10,000,000,000; and

      (e) Maintains a trust pursuant to subsection 2.

      2.  The trust must be in an amount equal to the group’s several liabilities attributable to business ceded by ceding insurers in the United States to any member of the group pursuant to contracts of reinsurance issued in the name of the group, and the group shall maintain a joint surplus in trust of which $100,000,000 must be held jointly for the benefit of ceding insurers in the United States to any member of the group as additional security for any such liabilities.

      3.  Each member of the group shall make available to the commissioner an annual certification of the member’s solvency by the member’s domiciliary regulator and its independent public accountant.

      Sec. 21.  1.  A trust for the purposes of section 19 or 20 of this act must be established in a form approved by the commissioner. The trust instrument must provide that contested claims become valid and enforceable upon the final order of any court of competent jurisdiction in the United States. The trust must vest legal title to its assets in the trustees of the trust for its policyholders and ceding insurers in the United States, their assigns and successors in interest. The trust and the assuming insurer are subject to examination as determined by the commissioner. The trust must remain in effect for as long as the assuming insurer has outstanding obligations due under the agreements for reinsurance subject to the trust.

      2.  No later than February 28 of each year the trustees of the trust shall report to the commissioner in writing setting forth the balance of the trust and listing the trust’s investments at the end of the preceding year and shall certify the date of termination of the trust, if so planned, or certify that the trust will not expire before the next following December 31.

      Sec. 22.  1.  Except as otherwise provided in subsection 2, if the assuming insurer is not licensed or accredited to transact insurance or reinsurance in this state, the credit permitted by section 18 or 19 of this act must not be allowed unless the assuming insurer agrees in the agreements for reinsurance:

      (a) That in the event of the failure of the assuming insurer to perform its obligations under the terms of the agreement, the assuming insurer, at the request of the ceding insurer, will submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, will comply with all requirements necessary to give the court jurisdiction, and will abide by the final decision of the court or of any appellate court in the event of an appeal; and

      (b) To designate the commissioner or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in an action, suit or proceeding instituted by or on behalf of the ceding company.

      2.  This section does not conflict with or override the obligation of the parties to an agreement for reinsurance to arbitrate their disputes, if such an obligation is created in the agreement.

      Sec. 23.  Credit must be allowed if reinsurance is ceded to an assuming insurer not meeting the requirements of NRS 681A.110 or section 16, 17, 18, 19 or 20 of this act, but only with respect to the insurance of risks located in jurisdictions where such reinsurance is required by applicable law or regulation of that jurisdiction.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1759 (Chapter 527, SB 505)ê

 

19 or 20 of this act, but only with respect to the insurance of risks located in jurisdictions where such reinsurance is required by applicable law or regulation of that jurisdiction.

      Sec. 24.  Credit must be allowed as an asset or as a deduction from liability to any ceding insurer for reinsurance lawfully ceded to an assuming insurer qualified therefor under NRS 681A.110 or section 16, 17, 18, 19 or 20 of this act, but no such credit may be allowed unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contracts reinsured without diminution because of insolvency of the ceding insurer.

      Sec. 25.  A reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of NRS 681A.110 or the regulations of the commissioner concerning risk-based capital must be allowed in an amount not exceeding the liabilities carried by the ceding insurer and the reduction must be in the amount of assets held by or on behalf of the ceding insurer, including assets held in trust for the ceding insurer, under a contract of reinsurance with the assuming insurer as security for the payment of obligations thereunder, if the security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer, or, in the case of a trust, held in a qualified financial institution in the United States. The security may be in any of the following forms:

      1.  Cash.

      2.  Securities listed by the Securities Valuation Office of the National Association of Insurance Commissioners and qualifying as admitted assets.

      3.  Irrevocable, unconditional letters of credit, each issued or confirmed by a qualified financial institution in the United States which has been determined by the commissioner, or the Securities Valuation Office of the National Association of Insurance Commissioners, to meet such standards of financial condition and standing as are considered necessary or appropriate to regulate the quality of financial institutions whose letters of credit are acceptable to the commissioner, no later than December 31 of the year for which filing is made, and in the possession of the ceding company on or before the date of filing its annual statement. A letter of credit meeting applicable standards of acceptability of its issuer as of the date of its issuance or confirmation, notwithstanding the issuing or confirming institution’s subsequent failure to meet applicable standards of acceptability, continues to be acceptable as security until its expiration, extension, renewal, modification or amendment, whichever first occurs.

      4.  Any other form of security acceptable to the commissioner.

      Sec. 26.  An insurer shall promptly inform the commissioner in writing of the cancellation or any other material change in any of its treaties or arrangements for reinsurance.

      Sec. 27.  The commissioner may adopt regulations to carry out the provisions of NRS 681A.110 and sections 15 to 59, inclusive, of this act.

      Sec. 28.  As used in sections 28 to 61, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 29 to 44, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 29.  “Actuary” means a person who is a member in good standing of the American Academy of Actuaries or its successor organization.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1760 (Chapter 527, SB 505)ê

 

      Sec. 30.  “Automatic agreement” means an agreement between a reinsured and reinsurer whereby the ceding company is obligated to cede certain risks as provided in the agreement and the reinsurer is obligated to accept.

      Sec. 31.  “Broker for reinsurance” means a person who negotiates a contract of reinsurance between a reinsured and reinsurer on behalf of the reinsured and who receives a commission for placement and other services rendered. The term does not include the ceding insurer.

      Sec. 32  “Cede” means to pass on to another insurer, who is designated the reinsurer, all or part of the insurance written by an insurer with the object of reducing the possible liability of the ceding insurer.

      Sec. 33.  “Cession” means the unit of insurance passed to a reinsurer by a primary company which issued a policy to the original insured.

      Sec. 34.  “Controlling person” means a person who directly or indirectly has the power to direct, or cause to be directed, the management, control or activities of an intermediary.

      Sec. 35.  A submission is “facultative” if both the primary insurer and the reinsurer have the choice to accept or reject the submission.

      Sec. 36.  “Intermediary” includes a broker for reinsurance or a manager for reinsurance.

      Sec. 37.  “Licensed producer” means an agent, broker or intermediary licensed pursuant to this Title.

      Sec. 38.  “Manager for reinsurance” means a person who has authority to bind or manage all or part of the assumed reinsurance of a reinsurer and acts as an agent for the reinsurer whether known as a manager or other similar term. The term includes the manager of a separate division, department or underwriting office who acts as an agent for a reinsurer. For the purposes of sections 28 to 61, inclusive, of this act, the following persons are not managers with respect to a reinsurer:

      1.  An employee of the reinsurer;

      2.  A manager of a branch of an alien reinsurer located in the United States;

      3.  An underwriting manager who, pursuant to a contract, manages all or part of the reinsurance of the reinsurer, is under common control with the reinsurer within the meaning of chapter 692C of NRS, and whose compensation is not based on the volume of premiums written; or

      4.  The manager of a group, association, pool or organization of insurers who engage in joint underwriting or joint reinsurance and who are subject to examination by the commissioner of the state in which the principal business office of the manager is located.

      Sec. 39.  “Reinsured” means an insurer that has placed risks with a reinsurer in the process of buying reinsurance. The term includes a ceding insurer.

      Sec. 40.  “Reinsurer” means a person licensed in this state as an insurer with the authority to assume the liability of another by reinsurance.

      Sec. 41.  “Retrocession” means a transaction whereby a reinsurer cedes to another reinsurer all or part of the reinsurance it has previously assumed.

      Sec. 42.  “Retrocessionaire” means the assuming reinsurer in a retrocession.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1761 (Chapter 527, SB 505)ê

 

      Sec. 43.  “Syndicate” means a joint underwriting operation of insurance or reinsurance in which the participants assume a predetermined and fixed interest in the insurance written and the members share equally in the premiums.

      Sec. 44.  “Violation” by an intermediary, insurer or reinsurer for whom the intermediary was acting means failure to comply substantially with the provisions of sections 28 to 61, inclusive, of this act.

      Sec. 45.  1.  A person shall not act as a broker for reinsurance if he maintains an office, directly or as a member or employee of a firm or association or as an officer, director or employee of a corporation:

      (a) In this state, unless he is a licensed producer in this state; or

      (b) In another state, unless he is a licensed producer in this state or in another state having a law substantially similar to this Title or he is licensed in this state as a nonresident intermediary.

      2.  A person shall not act as a manager for reinsurance:

      (a) For a reinsurer domiciled in this state, unless he is a licensed producer in this state;

      (b) In this state, if he maintains an office individually or as a member or employee of a firm or association or as an officer, director or employee of a corporation in this state, unless he is a licensed producer in this state; or

      (c) In another state for a foreign insurer, unless he is a licensed producer in this state or in another state having a law substantially similar to this Title or he is licensed in this state as a nonresident intermediary.

      3.  A manager for reinsurance shall:

      (a) File a bond from an insurer in an amount that is acceptable to the commissioner for the protection of the reinsurer; and

      (b) Maintain a policy covering errors and omissions in an amount that is acceptable to the commissioner.

      Sec. 46.  1.  The commissioner may issue a license to act as an intermediary to any person who has complied with the requirements of sections 28 to 61, inclusive, of this act. A license issued to a firm or association authorizes all the members of the firm or association and any designated employees to act as intermediaries. All those persons must be named in the application and any supplements thereto. A license issued to a corporation authorizes all of officers and any designated employees and directors of the corporation to act as intermediaries on behalf of the corporation. All those persons must be named in the application and in any supplements thereto.

      2.  If an applicant for a license to act as an intermediary is a nonresident, he shall:

      (a) Designate the commissioner as agent for service of process;

      (b) Furnish the commissioner with the name and address of a resident of Nevada upon whom notices or orders of the commissioner or process affecting the nonresident reinsurance intermediary may be served; and

      (c) Promptly notify the commissioner in writing of every change in his designated agent for service of process. The change is not effective until acknowledged by the commissioner.

      Sec. 47.  1.  The commissioner may refuse to issue a license to act as an intermediary if, in his judgment:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1762 (Chapter 527, SB 505)ê

 

      (a) The applicant, anyone named on the application, or any member, principal, officer or director of the applicant, is not trustworthy to act as an intermediary;

      (b) Any controlling person of the applicant is not trustworthy to act as an intermediary;

      (c) The applicant, a person named on the application, any member, principal, officer or director of the applicant or any controlling person of the applicant has given cause for the revocation or suspension of a license to act as an intermediary; or

      (d) The applicant, a person named on the application, any member, principal, officer or director of the applicant or any controlling person of the applicant has failed to comply with any prerequisite for the issuance of a license to act as an intermediary.

      2.  Upon receipt of a written request, the commissioner shall furnish a summary of the basis for his refusal to issue a license to act as an intermediary. The summary is confidential.

      Sec. 48.  When acting in his professional capacity, an attorney at law who is licensed in this state need not be licensed as an intermediary.

      Sec. 49.  1.  A transaction between a broker for reinsurance and the insurer he represents may only be entered into by written agreement. The agreement must specify the responsibilities of each party.

      2.  The insurer may terminate the authority of the broker for reinsurance at any time.

      3.  The broker for reinsurance shall:

      (a) Render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by or owing to the broker for reinsurance; and

      (b) Remit all money due to the insurer within 30 days after receipt.

      4.  All money collected for the account of the insurer must be held by the broker for reinsurance in a fiduciary capacity in a bank which is a qualified financial institution.

      5.  The broker for reinsurance shall comply with the written standards established by the insurer for the cession or retrocession of all risks.

      6.  The broker for reinsurance shall disclose to the insurer any relationship with any reinsurer to which insurance will be ceded or retroceded.

      Sec. 50.  1.  For 10 years after expiration of each contract of reinsurance transacted by the broker for reinsurance, he shall keep a complete record for each transaction, including evidence of:

      (a) The type of contract, limits, underwriting restrictions, classes or risks and territory;

      (b) The period of coverage, including effective and expiration dates and the provisions concerning cancellation and notice of cancellation;

      (c) The requirements for reporting and settling balances;

      (d) The rate used to compute the reinsurance premium;

      (e) The names and addresses of assuming reinsurers;

      (f) The rates of all commissions for reinsurance, including the commissions on any retrocessions handled by the broker for reinsurance;

      (g) Any related correspondence and memoranda;

      (h) Proof of placement;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1763 (Chapter 527, SB 505)ê

 

      (i) Details regarding retrocessions handled by the broker for reinsurance, including the identity of retrocessionaires and the percentage of each contract assumed or ceded;

      (j) Financial records, including accounts of premium and loss; and

      (k) If the broker for reinsurance procures a contract of reinsurance on behalf of a licensed ceding insurer:

             (1) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or

             (2) Through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.

      2.  A broker for reinsurance shall allow an insurer to have access to and to copy and audit all accounts and records maintained by him related to its contract.

      Sec. 51.  1.  An insurer shall not engage the services of any person to act as a broker for reinsurance on its behalf unless he is licensed pursuant to section 46 of this act.

      2.  An insurer may not employ a person who is employed by a broker for reinsurance with whom it transacts business, unless the broker for reinsurance is under common control with the insurer within the meaning of chapter 692C of NRS.

      3.  The insurer shall annually obtain a copy of statements of the financial condition of each broker for reinsurance with which it transacts business.

      Sec. 52.  1.  Transactions between a manager for reinsurance and the reinsurer he represents must only be entered into pursuant to a written contract which specifies the responsibilities of each party and is approved by the board of directors of the reinsurer. At least 30 days before a reinsurer assumes or cedes insurance, a copy of the contract must be filed with the commissioner for approval.

      2.  The reinsurer may terminate the contract for cause upon written notice to the manager for reinsurance and the reinsurer may suspend the authority of the manager for reinsurance to assume or cede insurance during the pendency of any dispute regarding the cause for termination.

      3.  The manager for reinsurance shall:

      (a) Render accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by or owing to him; and

      (b) Remit all money due pursuant to the contract to the reinsurer monthly.

      4.  All money collected for the account of the reinsurer must be held by the manager for reinsurance, in a fiduciary capacity, in a bank which is a qualified financial institution. The manager for reinsurance may retain no more than the total of 3 months’ estimated payments on claims and allocated expenses of adjusting losses. The manager for reinsurance shall maintain a separate bank account for each reinsurer that he represents.

      5.  The contract must not be assigned in whole or in part by the manager for reinsurance.

      Sec. 53.  1.  A manager for reinsurance shall comply with the written underwriting and rating standards established by the insurer he represents for the acceptance, rejection or cession of all risks.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1764 (Chapter 527, SB 505)ê

 

      2.  The contract must set forth the rates, terms and purposes of commissions, charges and other fees which the manager for reinsurance may levy against the reinsurer.

      3.  The manager for reinsurance shall annually provide the reinsurer with a statement of his financial condition prepared by an independent certified public accountant.

      4.  The reinsurer shall conduct a review of underwriting and the handling of claims by the manager for reinsurance at the location of his operations at least twice each calendar year.

      5.  The manager for reinsurance shall disclose to the reinsurer any relationship he has with an insurer before ceding or assuming insurance to or from the insurer pursuant to the contract.

      6.  The acts of the manager for reinsurance shall be deemed to be the acts of the reinsurer on whose behalf he is acting.

      Sec. 54.  1.  If a contract between a manager for reinsurance and the reinsurer he represents permits him to settle claims on behalf of the reinsurer:

      (a) All claims must be reported to the reinsurer in a timely manner; and

      (b) A copy of the claim file must be sent to the reinsurer at its request or as soon as it becomes known that the claim:

             (1) Potentially exceeds the amount determined by the commissioner or the limit set by the reinsurer, whichever is the lesser amount;

             (2) Involves a dispute over coverage;

             (3) May exceed the authority of the manager for reinsurance to settle claims;

             (4) Has been open for more than 6 months; or

             (5) Is closed by payment of the lesser of an amount set by the commissioner or an amount set by the reinsurer.

      2.  All claims files are the joint property of the reinsurer and the manager for reinsurance. Upon an order of liquidation of the reinsurer, the files become the sole property of the reinsurer or its estate. The reinsurer or its estate shall allow the manager for reinsurance to have reasonable access to and to copy the files on a timely basis.

      3.  The reinsurer may terminate any authority to make settlements granted to the manager for reinsurance for cause upon written notice to him or upon the termination of the contract. The reinsurer may suspend the authority of the manager for reinsurance to make settlements during the pendency of the dispute regarding the cause of termination.

      Sec. 55.  If a contract between a manager for reinsurance and the reinsurer he represents provides for a sharing of interim profits by the manager for reinsurance, the interim profits must not be paid until 1 year after the end of each underwriting period for property insurance and 5 years after the end of each underwriting period for casualty insurance, and not until the adequacy of reserves on remaining claims has been verified pursuant to section 58 of this act.

      Sec. 56.  1.  For at least 10 years after expiration of each contract of reinsurance transacted by a manager for reinsurance, he shall keep a complete record for each transaction, including evidence of:

      (a) The type of contract, limits, underwriting restrictions, classes or risks and territory;


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1765 (Chapter 527, SB 505)ê

 

      (b) The period of coverage, including effective and expiration dates, provisions concerning cancellation and notice of cancellation, and disposition of outstanding reserves on covered risks;

      (c) The requirements for reporting and settling balances;

      (d) The rate used to compute the reinsurance premium;

      (e) The names and addresses of reinsurers;

      (f) The rates of all commissions for reinsurance, including the commissions on any retrocessions handled by the manager for reinsurance;

      (g) Any related correspondence and memoranda;

      (h) Proof of placement;

      (i) Any details regarding retrocessions handled by the manager for reinsurance, including the identity of retrocessionaires and percentage of each contract assumed or ceded;

      (j) Financial records, including accounts of premium and loss; and

      (k) If the manager for reinsurance places a contract of reinsurance on behalf of a ceding insurer:

             (1) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or

             (2) Through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.

      2.  The manager for reinsurance shall allow a reinsurer to have access and to copy all accounts and records maintained by him related to its business in a form usable by the reinsurer.

      Sec. 57.  A manager for reinsurance shall not:

      1.  Except as otherwise provided in this section, bind retrocessions on behalf of the reinsurer. A manager for reinsurance may bind facultative retrocessions pursuant to facultative agreements if the contract with the reinsurer contains guidelines for underwriting the retrocessions. The guidelines must include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.

      2.  Commit the reinsurer to participate in syndicates for reinsurance.

      3.  Appoint any producer without verifying that the producer is licensed to transact the type of reinsurance for which he is appointed.

      4.  Without approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1 percent of the policyholder’s surplus of the reinsurer as of December 31 of the last complete calendar year.

      5.  Collect any payment from a retrocessionaire or commit the reinsurer to any settlement of a claim with a retrocessionaire, without the approval of the reinsurer. If approval is given, the manager for reinsurance shall promptly forward a report to the reinsurer.

      6.  Employ a person who is employed by the reinsurer unless the manager for reinsurance is under common control with the reinsurer within the meaning of chapter 692C of NRS.

      7.  Appoint another person to act as a manager for reinsurance.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1766 (Chapter 527, SB 505)ê

 

      Sec. 58.  1.  A reinsurer shall not engage the services of any person to act as a manager for reinsurance on its behalf unless he is licensed as required by section 46 of this act.

      2.  A reinsurer shall annually obtain a copy of statements of the financial condition of each manager for reinsurance whom the reinsurer has engaged. The statements must be prepared by an independent certified public accountant in a form approved by the commissioner.

      3.  If a manager for reinsurance establishes reserves for losses, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of reserves established for losses incurred and outstanding on the business produced by the manager for reinsurance. The opinion of the actuary must be in addition to any other required certification.

      4.  An officer of the reinsurer must have authority to bind a reinsurer for all retrocessional contracts and for participation in syndicates for reinsurance. The officer must not be affiliated with the manager for reinsurance.

      5.  At least 30 days before termination of a contract with a manager for reinsurance, the reinsurer shall provide written notification of the termination to the commissioner.

      6.  Except as otherwise provided in chapter 692C of NRS, a reinsurer shall not appoint to its board of directors any officer, director, employee, controlling shareholder or subproducer of its manager for reinsurance.

      Sec. 59.  1.  An intermediary is subject to examination by the commissioner. The intermediary shall allow the commissioner to have access to all of his books, bank accounts and records in a form usable to the commissioner.

      2.  A manager for reinsurance may be examined as if he were the reinsurer.

      Sec. 60.  1.  If the commissioner believes that the reinsurance intermediary or any other person has not materially complied with sections 28 to 59, inclusive, of this act, or any regulation adopted or order issued pursuant thereto, the commissioner may, after a hearing conducted in accordance with NRS 679B.310 to 679B.370, inclusive, order:

      (a) For each separate violation, the payment of a penalty in an amount not exceeding $5,000; and

      (b) The revocation or suspension of the license of the reinsurance intermediary.

      2.  If the commissioner finds that the noncompliance of the reinsurance intermediary has caused the insurer any loss or damage, the commissioner may initiate a civil action against the intermediary on behalf of the insurer to recover compensatory damages or other appropriate relief.

      3.  If an order of rehabilitation or liquidation of the insurer has been entered and the receiver appointed by that order determines that:

      (a) The reinsurance intermediary or any other person has not materially complied with sections 28 to 59, inclusive, of this act, or any regulation adopted or order issued pursuant thereto; and

      (b) The insurer has suffered any loss or damage as a result of that noncompliance,

the receiver may bring a civil action for the recovery of damages or for any other appropriate sanctions on behalf of the insurer.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1767 (Chapter 527, SB 505)ê

 

      Sec. 61.  Sections 28 to 61, inclusive, of this act do not limit or restrict the rights of policyholders, claimants, creditors or other third parties or confer any rights on such persons.

      Sec. 62.  NRS 681A.100 is hereby amended to read as follows:

      681A.100  1.  [An] Except as otherwise provided for domestic mutual insurers in NRS 692B.200, an insurer shall not retain any risk on any one subject of insurance, whether located or to be performed in this state or elsewhere, in an amount exceeding 10 percent of its surplus to policyholders.

      2.  A “subject of insurance” for the purposes of this section, as to insurance against fire and hazard other than windstorm, earthquake and other catastrophic hazards, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of any other hazard insured against.

      3.  Reinsurance ceded as authorized by NRS 681A.110 [shall] must be deducted in determining the risk retained [; but] except that as to surety risks, reinsurance [shall] must be allowed as a deduction only if [such] the reinsurance is with an insurer authorized to transact such insurance in this state, and is in such form as to enable the obligee or beneficiary to maintain an action thereon against the reinsured jointly with the reinsurer, and upon recovering judgment against the reinsured to have recovery against the reinsurer for payment to the extent [in] to which it may be liable under [such] the reinsurance and in discharge thereof. As to surety risks, deduction [shall] must also be made of the amount assumed by any authorized cosurety and the value of any security deposited, pledged or held subject to the surety’s consent and for the surety’s protection.

      4.  As to alien insurers, this section relates only to risks and surplus to policyholders of the insurer’s [United States branch.] branch in the United States.

      5.  “Surplus to policyholders” for the purposes of this section, in addition to the insurer’s capital and surplus, includes any voluntary reserves which are not required pursuant to law, and [shall] must be determined from the last sworn statement of the insurer on file with the commissioner, or by the last report of examination of the insurer, whichever is the more recent at time of assumption of risk.

      6.  This section does not apply to life or health insurance, annuities, title insurance, insurance of wet marine and transportation risks, workmen’s compensation insurance, [employers’ liability coverages, liability insurance,] surety , financial guaranty insurance, or to any policy or type of coverage as to which the maximum possible loss to the insurer is not readily ascertainable on issuance of the policy.

      [7.  Limits of risk as to newly formed domestic mutual insurers shall be as provided in NRS 692B.200.]

      Sec. 63.  NRS 681A.110 is hereby amended to read as follows:

      681A.110  [1.] An insurer may reinsure all or any part of an individual risk or of a particular class of risks in any other insurer or, with the approval of the commissioner, all its risks in an authorized insurer, or may accept such reinsurance from any other insurer. No domestic insurer may reinsure with an insurer which is not authorized to transact insurance or reinsurance unless:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1768 (Chapter 527, SB 505)ê

 

      [(a)]1.  The domestic insurer has the commissioner’s written approval; or

      [(b)]2.  The insurer accepting the reinsurance [is a group of insurers which includes individual, unincorporated insurers, having assets held in trust for the benefit of its United States policyholders in a sum not less than $50,000,000 and is authorized to transact insurance in at least one state.

If reinsurance is authorized pursuant to this section, a domestic insurer may reinsure all or substantially all its risks as provided in NRS 693A.370.

      2.  No credit may be taken for the reserve or unearned premium liability on account of any such reinsurance unless:

      (a) The insurer accepting the reinsurance is authorized to transact insurance in this state or in another state conforming to the same standards of solvency as would be required of it if, at the time the reinsurance is effected, it were so authorized in this state; or

      (b) The insurer accepting the reinsurance is a group of insurers which includes individual, unincorporated insurers, having assets held in trust for the benefit of its United States policyholders in a sum not less than $50,000,000 and is authorized to transact insurance in at least one state.

      3.  Credit must be allowed as an asset or as a deduction from liability to any ceding insurer for reinsurance lawfully ceded to an assuming insurer qualified therefor under subsection 2, but no such credit may be allowed unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contracts reinsured without diminution because of the insolvency of the ceding insurer.

      4.  Upon request of the commissioner an insurer shall promptly inform him in writing of the cancellation or any other material change in any of its reinsurance treaties or arrangements.

      5.  This section does not apply to wet marine and transportation insurance.] meets the requirements for credit provided in sections 16 to 20, inclusive, of this act.

      Sec. 64.  NRS 681B of NRS is hereby amended by adding thereto the provisions set forth as sections 65 to 74, inclusive, of this act.

      Sec. 65.  As used in sections 65 to 72, inclusive, of this act, “qualified actuary” means a member in good standing of the American Academy of Actuaries, or a successor organization approved by the commissioner who meets the requirements set forth in the organization’s regulations.

      Sec. 66.  Every insurer offering life insurance doing business in this state shall annually submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the commissioner by regulation are computed appropriately, are based on assumptions which satisfy contractual provisions, are consistent with prior reported amounts, and company with applicable laws of this state. The commissioner by regulation may further define or enlarge the scope of this opinion.

      Sec. 67.  1.  Every such insurer, unless exempted by or pursuant to regulation, shall also annually submit an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the commissioner by regulation, when considered in light of the assets held by the insurer with respect to the reserves and related actuarial items, including the earnings on the assets invested and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the insurer’s obligations under the policies and contracts, including the benefits under and expenses associated with the policies and contracts.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1769 (Chapter 527, SB 505)ê

 

considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the insurer’s obligations under the policies and contracts, including the benefits under and expenses associated with the policies and contracts.

      2.  The commissioner may provide by regulation for a period of transition for establishing any higher reserves which the qualified actuary may deem necessary in order to render the opinion required by this section and section 66 of this act.

      3.  The holding of additional reserves determined by a qualified actuary to be necessary to render the opinion required by this section or section 66 of this act, shall not be deemed to be the adoption of a higher standard of valuation for the purposes of NRS 681B.120 or 681B.140.

      Sec. 68.  1.  Each opinion required by section 67 of this act must be supported by memorandum, in form and substance acceptable to the commissioner as specified by regulation.

      2.  If an insurer fails to provide a supporting memorandum at the request of the commissioner within a period specified by regulation, or the commissioner determines that the supporting memorandum provided by the insurer fails to meet the standards prescribed by the regulations or is otherwise unacceptable to him, he may engage a qualified actuary at the expense of the insurer to review the opinion and the basis for the opinion and prepare such supporting memorandum as is required by the commissioner.

      Sec. 69.  1.  Every opinion must:

      (a) Be submitted with the annual statement reflecting the valuation of reserve liabilities for each year ending on or before December 31, 1996.

      (b) Apply to all business in force including individual and group health insurance plans, in form and substance acceptable to the commissioner as specified by regulation.

      (c) Be based on standards adopted from time to time by the Actuarial Standards Board or a successor organization approved by the commissioner and on such additional standards as the commissioner may by regulation prescribe.

      2.  In the case of an opinion required to be submitted by a foreign or alien company, the commissioner may accept the opinion filed by that company with the commissioner of insurance of another state if he determines that the opinion reasonably meets the requirements applicable to an insurer domiciled in this state.

      Sec. 70.  1.  Except in a case of fraud or willful misconduct, a qualified actuary is not liable for damages to any person other than an affected insurer or the commissioner for any act, error, omission, decision or conduct with respect to the actuary’s opinion.

      2.  Disciplinary action by the commissioner against an actuary must be prescribed by regulation by the commissioner.

      Sec. 71.  1.  Except as otherwise provided in this section, an opinion, and any other material provided by an insurer to the commissioner in connection therewith, must be kept confidential by the commissioner, is not open to the public, and is not subject to subpoena, except for the purpose of defending an action seeking damages from any person by reason of any action required by sections 65 to 71, inclusive, of this act or by regulation adopted under those sections.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1770 (Chapter 527, SB 505)ê

 

sections 65 to 71, inclusive, of this act or by regulation adopted under those sections.

      2.  A memorandum or other material may be released by the commissioner with the written consent of the insurer or to the American Academy of Actuaries or its successor organization upon request stating that the memorandum or other material is required for the purpose of professional disciplinary proceedings and setting forth procedures satisfactory to the commissioner for preserving the confidentiality of the memorandum or other material.

      3.  If any portion of a confidential memorandum is cited by the insurer in its marketing or is cited before any governmental agency other than a state commissioner of insurance or is released by an insurer to the public, all portions of the memorandum are no longer confidential.

      Sec. 72.  The commissioner shall adopt by regulation minimum standards for the valuation of reserves of other insurers offering health insurance of any kind, corporations for hospital, medical and dental service, health maintenance organizations, and plans for dental care.

      Sec. 73.  Each insurer shall report to the commissioner every material acquisition or disposition of assets within 15 days after the end of the month in which the transaction occurs. The commissioner shall define by regulation what transactions are material, prescribe what information must be reported and specify any person to whom a copy must be sent. Such a report is confidential and is not subject to subpoena.

      Sec. 74.  (Deleted by amendment.)

      Sec. 75.  NRS 681B.130 is hereby amended to read as follows:

      681B.130  1.  Except as otherwise provided in subsection 4 and in NRS 681B.150, reserves, according to the [Commissioners] commissioners’ reserve valuation method, for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and requiring the payment of uniform premiums must be the excess, if any, of the present value, at the date of valuation, of the future guaranteed benefits provided for by the policies over the then present value of any future modified net premiums therefor. The modified net premiums for the policy must be such a uniform percentage of the respective contract premiums for those benefits that the present value, at the date of issue of the policy, of all the modified net premiums are equal to the sum of the then present value of the benefits provided for by the policy and the excess of the premium set forth in paragraph (a) over that set forth in paragraph (b), as follows:

      (a) A net level annual premium equal to the present value, at the date of issue, of such benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of such policy on which a premium falls due. The net level annual premium must not exceed the net level annual premium on the 19-year premium whole life plan for insurance of the same amount at an age 1 year higher than the age at the time the policy is issued.

      (b) A net 1-year term premium for such benefits provided for in the first policy year.

      2.  If any life insurance policy issued on or after January 1, 1987, for which the contract premium in the first policy year exceeds that of the second year, and for which no comparable additional benefit is provided in the first year in return for the excess premium and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than the excess premium, the reserve according to the [Commissioners] commissioners’ reserve valuation method as of any policy anniversary occurring on or before the assumed ending date, which is the first policy anniversary on which the sum of any endowment benefit and any cash surrender value then available is greater than the excess premium, must, except as otherwise provided in NRS 681B.150, be the greater of:

 


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1771 (Chapter 527, SB 505)ê

 

year, and for which no comparable additional benefit is provided in the first year in return for the excess premium and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than the excess premium, the reserve according to the [Commissioners] commissioners’ reserve valuation method as of any policy anniversary occurring on or before the assumed ending date, which is the first policy anniversary on which the sum of any endowment benefit and any cash surrender value then available is greater than the excess premium, must, except as otherwise provided in NRS 681B.150, be the greater of:

      (a) The reserve as of the policy anniversary calculated as described in subsection 1; and

      (b) The reserve as of the policy anniversary calculated as described in subsection 1, but with:

             (1) The value defined in paragraph (a) of subsection 1 being reduced by 15 percent of the amount of the excess first-year premium;

             (2) All present values of benefits and premiums being determined without reference to premiums or benefits provided for by the policy after the assumed ending date;

             (3) The policy being assumed to mature on such date as an endowment; and

             (4) The cash surrender value provided on that date being considered as an endowment benefit. In making the above comparison, the mortality and interest bases stated in NRS 681B.120 and 681B.125 must be used.

      3.  Reserves according to the [Commissioners] commissioners’ reserve valuation method for:

      (a) Life insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums;

      (b) Group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer (including a partnership or sole proprietorship), by an employee organization or by both , other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue Code, as amended;

      (c) Disability and accidental death benefits in all policies and contracts; and

      (d) All other benefits, except life insurance and endowment benefits in life insurance policies and benefits provided by all other annuity and pure endowment contracts,

must be calculated by a method consistent with the principles of subsection 1 and this subsection, except that any extra premiums charged because of impairments or special hazards must be disregarded in the determination of modified net premiums.

      4.  This subsection applies to all annuity and pure endowment contracts except those group annuity and pure endowment contracts for which reserves according to the [Commissioners] commissioners’ reserve valuation method are to be calculated by a method consistent with the principles of subsections 1, 2 and 3. Reserves according to the [Commissioners] commissioners’ annuity reserve method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in those contracts must be the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by those contracts at the end of each respective contract year, over the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations, required by the terms of the contract, which become payable before the end of such respective contract year.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1772 (Chapter 527, SB 505)ê

 

date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by those contracts at the end of each respective contract year, over the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations, required by the terms of the contract, which become payable before the end of such respective contract year. The future guaranteed benefits must be determined by using the mortality table, if any, and the interest rate or rates specified in such contracts for determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of the contracts to determine nonforfeiture values.

      5.  An insurer’s aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after January 1, 1972, must not be less than the aggregate reserves calculated in accordance with the methods set forth in this section, NRS 681B.145 and 681B.150, and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for those policies.

      6.  An insurer’s aggregate reserves for all policies, contracts and benefits must not be less than the aggregate reserves determined by a qualified actuary to be necessary for a favorable opinion under sections 66 and 67 of this act.

      Sec. 76.  NRS 681B.140 is hereby amended to read as follows:

      681B.140  1.  Reserves for any category of policies, contracts or benefits as established by the commissioner, issued on or after January 1, 1972, may be calculated, at the option of the insurer, according to any standards which produce greater aggregate reserves for the category than those calculated according to the minimum standards provided by subsections 2 and 3 of NRS 681B.120 and 681B.125, but the rate or rates of interest used for policies and contracts other than the annuity and pure endowment contracts must not be higher than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided for in such policies.

      2.  Any insurer which has adopted a standard of valuation producing greater aggregate reserves as described in subsection 1 may, with the approval of the commissioner, adopt a lower standard of valuation, but not lower than the minimum described in subsection 1.

      Sec. 77.  NRS 681B.180 is hereby amended to read as follows:

      681B.180  1.  Real property acquired pursuant to a mortgage loan or contract for sale, in the absence of a recent appraisal deemed by the commissioner to be reliable, [shall] must not be valued at an amount greater than the unpaid principal of the defaulted loan or contract plus interest due and accrued at the date of [such] acquisition, together with any taxes and expenses paid or incurred in connection with [such] the acquisition, and the cost of improvements thereafter made by the insurer and any amounts thereafter paid by the insurer on assessments levied for improvements in connection with the property.

      2.  Other real property held by an insurer [shall] must not be valued at an amount in excess of the lesser of the fair value as determined by recent appraisal [.] or the actual cost, plus capitalized improvements, less normal depreciation. If valuation is based on an appraisal more than 3 years old, the commissioner may, at his discretion, call for and require a new appraisal in order to determine fair value.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1773 (Chapter 527, SB 505)ê

 

      Sec. 78.  NRS 686A.410 is hereby amended to read as follows:

      686A.410  The commissioner may conduct an examination of a company at any time in accordance with NRS 679B.250 to 679B.280, inclusive [.] , and sections 2, 3 and 4 of this act. The expense of the examination must be borne by the company in accordance with NRS 679B.290 as if the company [was] were an insurer.

      Sec. 79.  NRS 687A.020 is hereby amended to read as follows:

      687A.020  Except as otherwise provided in subsection [4] 5 of NRS 695E.200, this chapter applies to all direct insurance, except:

      1.  Life, annuity, health or disability insurance;

      2.  Mortgage guaranty, financial guaranty or other forms of insurance offering protection against investment risks;

      3.  Fidelity or surety bonds or any other bonding obligations;

      4.  Credit insurance as defined in NRS 690A.015;

      5.  Insurance of warranties or service contracts;

      6.  Title insurance;

      7.  Ocean marine insurance;

      8.  Any transaction or combination of transactions between a person, including affiliates of the person, and an insurer, including affiliates of the insurer, which involves the transfer of investment or credit risk unaccompanied by transfer of insurance risk; or

      9.  Any insurance provided by or guaranteed by a governmental entity.

      Sec. 80.  Chapter 692C of NRS is hereby amended by adding thereto the provisions set forth as sections 81 to 84, inclusive, of this act.

      Sec. 81.  1.  A domestic insurer shall not enter into any of the following transactions with an affiliate unless the insurer has notified the commissioner in writing of its intention to enter into the transaction at least 30 days previously, or such shorter period as the commissioner may permit, and the commissioner has not disapproved it within that period:

      (a) A sale, purchase, exchange, loan or extension of credit, guaranty or investment if the transaction equals at least:

             (1) With respect to an insurer other than a life insurer, the greater of 5 percent of the insurer’s admitted assets or 25 percent of surplus as regards policyholders; or

             (2) With respect to a life insurer, 5 percent of the insurer’s admitted assets,

computed as of December 31 next preceding the transaction.

      (b) A loan or extension of credit to any person who is not an affiliate, if the insurer makes the loan or extension of credit with the agreement or understanding that the proceeds of the transaction, in whole or in substantial part, are to be used to make loans or extensions of credit to, to purchase assets of, or to make investments in, any affiliate of the insurer if the transaction equals at least:

             (1) With respect to insurers other than life insurers, the greater of 5 percent of the insurer’s admitted assets or 25 percent of surplus as regards policyholders; or

             (2) With respect to life insurers, 5 percent of the insurer’s admitted assets,

computed as of December 31 next preceding the transaction.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1774 (Chapter 527, SB 505)ê

 

      (c) An agreement for reinsurance or a modification thereto in which the premium for reinsurance or a change in the insurer’s liabilities equals at least 5 percent of the insurer’s surplus as regards policyholders as of December 31 next preceding the transaction, including an agreement which requires as consideration the transfer of assets from an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and nonaffiliate that any portion of those assets will be transferred to an affiliate of the insurer.

      (d) An agreement for management.

      (e) A material transaction, specified by regulation, which the commissioner determines may adversely affect the interest of the insurer’s policyholders.

      2.  This section does not authorize or permit any transaction which, in the case of an insurer not an affiliate, would be contrary to law.

      Sec. 82.  1.  A domestic insurer may not intentionally enter into transactions which are part of a plan or series of like transactions with affiliates if the purpose of those separate transactions is to avoid the threshold provided in section 81 of this act and thus avoid the review that would otherwise occur. If the commissioner determines that such separate transactions were entered into over any 12-month period for that purpose, he may exercise his authority pursuant to NRS 692C.410 to 692C.490, inclusive.

      2.  The commissioner, in reviewing transactions pursuant to this section and section 81 of this act, shall consider whether the transactions comply with the standards set forth in NRS 692C.360 and 692C.370 and whether the transactions may adversely affect the interests of policyholders.

      3.  A domestic insurer shall notify the commissioner within 30 days after it makes an investment in any corporation if the total investment in that corporation by it and its affiliates exceeds 10 percent of the corporation’s voting securities.

      Sec. 83.  1.  If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the order may recover on behalf of the insurer:

      (a) From any parent corporation or holding company, or person or affiliate who otherwise controlled the insurer, the amount of distributions, other than distributions of shares of the same class of stock, paid by the insurer on its capital stock; or

      (b) Any payment in the form of a bonus, settlement on termination, or extraordinary adjustment of salary in a lump sum made by the insurer or a subsidiary to a director, officer or employee,

if the distribution or payment is made at any time during the year preceding the petition for liquidation, conservation or rehabilitation, as the case may be, subject to the limitations of subsection 2 and of section 84 of this act.

      2.  Such a distribution is not recoverable if the parent or affiliate shows that, when paid, the distribution was lawful and reasonable, and that the insurer did not know and could not reasonably have known that the distribution might adversely affect its ability to fulfill its contractual obligations.

      Sec. 84.  1.  A person who was a parent corporation or holding company, or a person who otherwise controlled the insurer or affiliate, at the time the distributions were paid is liable up to the amount of distributions or payments he received. Any person who otherwise controlled the insurer at the time the distributions were declared is liable up to the amount of distributions he would have received if they had been paid immediately.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1775 (Chapter 527, SB 505)ê

 

would have received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they are jointly and severally liable.

      2.  The maximum amount recoverable under this section and section 83 of this act is the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.

      3.  To the extent that any person liable under this section is insolvent or otherwise fails to pay claims due from it pursuant to this section, its parent corporation or holding company, or person who otherwise controlled it, at the time the distribution was paid is jointly and severally liable for any resulting deficiency in the amount recovered from the parent corporation or holding company, or person who otherwise controlled the insurer.

      Sec. 85.  NRS 692C.210 is hereby amended to read as follows:

      692C.210  1.  The commissioner shall approve any merger or other acquisition of control referred to in NRS 692C.180 unless, after a public hearing thereon, he finds that:

      (a) After the change of control the domestic insurer referred to in NRS 692C.180 would not be able to satisfy the requirements for the issuance of a license to write the line or lines of insurance for which it is presently licensed;

      (b) The effect of the merger or other acquisition of control would be substantially to lessen competition in insurance in this state or tend to create a monopoly therein;

      (c) The financial condition of any acquiring party is such as might jeopardize the financial stability of the insurer, or prejudice the interest of its policyholders or buyers of insurance, or the interests of any remaining security holders who are unaffiliated with the acquiring party;

      (d) The terms of the offer, request, invitation, agreement or acquisition referred to in NRS 692C.180 are unfair and unreasonable to the security holders of the insurer;

      (e) The plans or proposals which the acquiring party has to liquidate the insurer, sell its assets or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer and not in the public interest; or

      (f) The competence, experience and integrity of those persons who would control the operation of the insurer are such that it would not be in the interest of policyholders of the insurer and of the public to permit the merger or other acquisition of control.

      2.  The public hearing referred to in subsection 1 must be held within a reasonable time after the statement required by NRS 692C.180 has been filed, and at least 20 days’ notice thereof must be given by the commissioner to the person filing the statement. Not less than 7 days’ notice of the public hearing must be given by the person filing the statement to the insurer and to such other persons as may be designated by the commissioner. The insurer shall give such notice to its security holders. The commissioner shall make a determination within 30 days after the conclusion of the hearing. At the hearing, the person filing the statement, the insurer, any person to whom notice of hearing was sent, and any other person whose interests may be affected thereby may present evidence, examine and cross-examine witnesses, and offer oral and written arguments and in connection therewith may conduct discovery proceedings in the same manner as is presently allowed in the district court of this state.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1776 (Chapter 527, SB 505)ê

 

notice of hearing was sent, and any other person whose interests may be affected thereby may present evidence, examine and cross-examine witnesses, and offer oral and written arguments and in connection therewith may conduct discovery proceedings in the same manner as is presently allowed in the district court of this state. All discovery proceedings must be concluded not later than 3 days before the commencement of the public hearing.

      3.  The commissioner may retain at the acquiring party’s expense attorneys, actuaries, accountants and other experts not otherwise a part of his staff as may be reasonably necessary to assist him in reviewing the proposed acquisition of control.

      Sec. 86.  NRS 692C.230 is hereby amended to read as follows:

      692C.230  The provisions of NRS 692C.180 to 692C.250, inclusive, [shall] do not apply to:

      1.  [Any offers, requests, invitations, agreements or acquisitions by the person referred to in NRS 692C.180, of any voting security referred to in such section which, immediately prior to the consummation of such offer, request, invitation, agreement or acquisition, was not issued and outstanding.

      2.  Any] A transaction which is subject to the provisions of NRS 693A.290 to 693A.370, inclusive, dealing with the merger or consolidation of two or more insurers.

      [3.  Any]

      2.  An offer, request, invitation, agreement or acquisition which the commissioner by order [shall exempt] exempts therefrom as not having been made or entered into for the purpose and not having the effect of changing or influencing the control of a domestic insurer, or as otherwise not comprehended within the purposes of NRS 692C.180 to 692C.250, inclusive.

      Sec. 87.  NRS 692C.290 is hereby amended to read as follows:

      692C.290  Each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions on [amendment] forms provided by the commissioner within 15 days after the end of the month in which it learns of each such change or addition, and not less often than annually, except that, subject to the provisions of NRS 692C.390, each registered insurer shall report all dividends and other distributions to shareholders within [2] 5 business days following the declaration [thereof.] and 10 days before payment.

      Sec. 88.  NRS 692C.360 is hereby amended to read as follows:

      692C.360  Material transactions by registered insurers with their affiliates [shall be] are subject to all of the following standards:

      1.  The terms [shall] must be fair and reasonable.

      2.  Charges or fees for services performed must be reasonable.

      3.  Expenses incurred and payment received must be allocated to the insurer in conformity with customary accounting practices concerning insurance consistently applied.

      4.  The books, accounts and records of each party [shall] must be so maintained as to disclose clearly and accurately [disclose] the precise nature and details of the transactions.

      [3.] 5.  The insurer’s surplus as regards policyholders following any dividends or distributions to shareholder affiliates [shall] must be reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1777 (Chapter 527, SB 505)ê

 

relation to the insurer’s outstanding liabilities and adequate to its financial needs.

      Sec. 89.  NRS 692C.370 is hereby amended to read as follows:

      692C.370  For the purposes of this chapter, in determining whether or not an insurer’s surplus as regards policyholders is reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs, the following factors among others [shall] must be considered:

      1.  The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force and other appropriate criteria.

      2.  The extent to which the insurer’s business is diversified among the several lines of insurance.

      3.  The number and size of risks insured in each line of business.

      4.  The extent of the geographical dispersion of the insurer’s insured risks.

      5.  The nature and extent of the insurer’s reinsurance program.

      6.  The quality, diversification and liquidity of the insurer’s investment portfolio.

      7.  The recent past and projected future trend in the size of the insurer’s surplus as regards policyholders.

      8.  The surplus as regards policyholders maintained by other comparable insurers.

      9.  The adequacy of the insurer’s reserves.

      10.  The quality and liquidity of investments in subsidiaries made pursuant to NRS 692C.180 to 692C.250, inclusive. The commissioner may treat any such investment as a disallowed asset for purposes of determining the adequacy of surplus as regards policyholders whenever in his judgment such investment so warrants.

      11.  The quality of the insurer’s earnings and the extent to which the reported earnings of the insurer include extraordinary items. As used in this subsection, the term “extraordinary item” means a nonrecurring occurrence or event.

      Sec. 90.  NRS 692C.380 is hereby amended to read as follows:

      692C.380  For purposes of NRS 692C.360 to 692C.400, inclusive, an extraordinary dividend or distribution includes any dividend or distribution of cash or other property, whose fair market value together with that of other dividends or distributions made within the preceding 12 months exceeds the greater of:

      1.  Ten percent of [such] the insurer’s surplus as regards policyholders as of [the 31st of] December 31 next preceding [;] the dividend or distribution; or

      2.  The net gain from operations of [such] the insurer, if [such] the insurer is a life insurer, or the net [investment] income, including unrealized capital gains if [such] the insurer is not a life insurer, for the 12-month period ending [the 31st of] December 31 next preceding [, but shall] the dividend or distribution,

but does not include pro rata distributions of any class of the insurer’s own securities.

      Sec. 91.  NRS 693A.110 is hereby amended to read as follows:

      693A.110  1.  After January 1, 1972, [no] a domestic insurer shall not make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the material exclusion of its board of directors or to have the controlling or preemptive right to produce substantially all insurance business for the insurer, or, if an officer, director or otherwise part of the insurer’s management, is to receive any commission, bonus or compensation based upon the volume of the insurer’s business or transactions, unless the contract is filed with and not disapproved by the commissioner.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1778 (Chapter 527, SB 505)ê

 

management of the insurer to the material exclusion of its board of directors or to have the controlling or preemptive right to produce substantially all insurance business for the insurer, or, if an officer, director or otherwise part of the insurer’s management, is to receive any commission, bonus or compensation based upon the volume of the insurer’s business or transactions, unless the contract is filed with and not disapproved by the commissioner. The contract [shall] must become effective in accordance with its terms unless disapproved by the commissioner within 20 days after the date of filing, subject to such reasonable extension of time as the commissioner may require by notice given within such 20 days. Any disapproval [shall] must be delivered to the insurer in writing stating the grounds therefor.

      2.  Any such contract [shall] must provide that any such manager, producer of its business or contract holder shall within 90 days after expiration of each calendar year furnish the insurer’s board of directors a written statement of amounts received under or on account of the contract and amounts expended thereunder during [such] the previous calendar year, with specification of the emoluments received therefrom by the respective directors, officers and other principal management personnel of the manager or producer, and with such classification of items and further detail as the insurer’s board of directors may reasonably require.

      3.  The commissioner shall disapprove any such contract if he finds that it:

      (a) Subjects the insurer to excessive charges;

      (b) Is to extend for an unreasonable length of time;

      (c) Does not contain fair and adequate standards of performance; or

      (d) Contains other inequitable provision or provisions which impair the proper interests of stockholders or members of the insurer.

      4.  The commissioner may, after a hearing held thereon, disapprove any such contract theretofore permitted to become effective, if he finds that the contract should be disapproved on any of the grounds specified in subsection 3.

      5.  This section does not apply to contracts entered into [prior to] before January 1, 1972, or to extensions or amendments of such contracts.

      6.  The commissioner may adopt regulations governing the management and agency contracts of insurers.

      Sec. 92.  NRS 693A.140 is hereby amended to read as follows:

      693A.140  1.  A domestic stock insurer shall not pay any cash dividend to stockholders except out of that part of its available and accumulated surplus [funds] money otherwise unrestricted and derived from realized net operating profits and realized and unrealized capital gains.

      2.  [A cash dividend otherwise lawful may be so paid out of the insurer’s earned surplus even though its total surplus is then less than the aggregate of its past contributed or paid-in surplus.

      3.] A stock dividend may be paid out of any available surplus. Upon payment of such a dividend the insurer shall transfer to its paid-in capital stock accounts [funds] money equal to the aggregate of the par values of the shares so distributed.

      3.  A domestic stock insurer may declare and distribute a dividend otherwise prohibited by this section if:


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1779 (Chapter 527, SB 505)ê

 

      (a) Following the payment of the dividend, the insurer’s surplus as regards policyholders is reasonable in relation to its outstanding liabilities and adequate to its financial needs, as determined pursuant to NRS 692C.370; and

      (b) The commissioner approves the dividend before its payment.

      Sec. 93.  NRS 693A.320 is hereby amended to read as follows:

      693A.320  1.  Any person proposing to acquire the controlling capital stock of any domestic stock insurer and thereby to change the control of the insurer, other than through merger or consolidation or affiliation as provided for in NRS 693A.310 and 693A.330, [shall] must first apply to the commissioner in writing for approval of such proposed change of control. The application [shall] must state the names and addresses of the proposed new owners of the controlling stock and contain such additional information as the commissioner may reasonably require.

      2.  The commissioner shall not approve the proposed change of control if he finds that:

      (a) The proposed new owners are not qualified by character, experience and financial responsibility to control and operate the insurer, or cause the insurer to be operated, in a lawful and proper manner;

      (b) As a result of the proposed change of control the insurer may not be qualified for a certificate of authority under the provisions of NRS 680A.090 ; [(ownership, management);]

      (c) The interests of the insurer or other stockholders of the insurer or policyholder would be materially harmed through the proposed change of control; or

      (d) The proposed change of control would tend materially to lessen competition, or to create any monopoly, in a business of insurance in this state or elsewhere.

      3.  If the commissioner does not by affirmative action approve or disapprove the proposed change of control within 30 days after the date [such] the application was so filed with him, the proposed change may be made without [such approval;] his approval, but if the commissioner gives notice to the parties of a hearing to be held by him with respect to the proposed change of control, and the hearing is held within [such] the 30 days or on a date mutually acceptable to the commissioner and the parties, the commissioner [shall have] has 10 days after the conclusion of the hearing within which to so approve or disapprove the proposed change. If not so approved or disapproved, the change may thereafter be made without the commissioner’s approval.

      4.  If the commissioner disapproves the proposed change he shall give written notice thereof to the parties, setting forth in detail the reasons for disapproval.

      5.  The commissioner shall suspend or revoke the certificate of authority of any insurer the control of which has been changed in violation of this section.

      6.  The commissioner may retain at the acquiring party’s expense attorneys, actuaries, accountants and other experts not otherwise a part of his staff as may be necessary only for the review of the proposed acquisition of control. Such a review may be conducted only if the parties fail to provide sufficient information to the commissioner. Expenses chargeable to the acquiring party pursuant to this subsection must not exceed 1 percent of the acquired insurer’s net revenue during the year immediately preceding the year in which the application for change of control is filed with the commissioner pursuant to subsection 1.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1780 (Chapter 527, SB 505)ê

 

acquired insurer’s net revenue during the year immediately preceding the year in which the application for change of control is filed with the commissioner pursuant to subsection 1.

      Sec. 94.  Chapter 695E of NRS is hereby amended by adding thereto the provisions set forth as sections 95 and 96 of this act.

      Sec. 95.  A purchasing group shall notify the commissioner of any change in any of the information required pursuant to subsection 1 of NRS 695E.120, within 10 days after the information ceases to be accurate.

      Sec. 96.  All premiums paid by a purchasing group or any member of the purchasing group for insurance on risks resident, located or to be performed in this state are subject to the payment of premium taxes and any related fines or penalties pursuant to chapters 680A, 680B and 685A of NRS. To the extent that premiums are paid by a purchasing group or any member of the purchasing group:

      1.  To an authorized insurer, the insurer shall pay the premium taxes and any related fines or penalties pursuant to chapters 680A and 680B of NRS;

      2.  To a surplus lines broker for insurance procured as surplus lines coverage, the surplus lines broker shall pay the premium taxes and any related fines or penalties pursuant to chapter 685A of NRS; or

      3.  To an unauthorized insurer for insurance independently procured by the purchasing group or any member of the group, premium taxes and any related fines and penalties are payable first by the purchasing group, and if not paid by the purchasing group, then by each of its members, pursuant to NRS 680B.040.

      Sec. 97.  NRS 695E.110 is hereby amended to read as follows:

      695E.110  “Risk retention group” means any corporation or association with limited liability that is formed under the laws of any state, Bermuda or the Cayman Islands:

      1.  Whose primary activity consists of assuming and spreading all or any portion of the [liability] exposure of its members [;] to liability;

      2.  Which is organized primarily to conduct the activity described in subsection 1;

      3.  Which:

      (a) Is chartered and licensed as a liability insurer and authorized to transact insurance under the laws of any state; or

      (b) Before January 1, 1985, was chartered or licensed and authorized to transact insurance under the laws of Bermuda or the Cayman Islands and, before that date, had certified to the commissioner of insurance of at least one state that it satisfied the state’s requirements for capitalization, except that such a group is considered to be a risk retention group only if it has been engaged in business continuously since that date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability;

      4.  Which does not exclude any person from membership in the group solely to provide for members of the group a competitive advantage over an excluded person;

      5.  Which has as its:

      (a) Members only persons who have an ownership interest in the group and who are provided insurance by the risk retention group; or


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1781 (Chapter 527, SB 505)ê

 

      (b) Sole [member and sole] owner an organization which [is owned by persons who are provided insurance by the risk retention group;] has as its:

             (1) Members only persons who comprise the membership of the risk retention group; and

             (2) Owners only persons who comprise the membership of the risk retention group and who are provided insurance by the group;

      6.  Whose members are engaged in businesses or activities similar or related with respect to the liability to which they are exposed by virtue of any related, similar or common business, trade, product, services, premises or operations;

      7.  Whose activities do not include the provision of insurance other than:

      (a) Liability insurance for assuming and spreading all or any portion of the liability of the members of the group; and

      (b) Reinsurance with respect to the liability of any other risk retention group, or any member of such a group, that is engaged in a business or activity such that the other group or member meets the requirements of subsection 6 for membership in the risk retention group that provides reinsurance; and

      8.  The name of which includes the phrase “risk retention group.”

      Sec. 98.  NRS 695E.120 is hereby amended to read as follows:

      695E.120  A purchasing group that intends to conduct business in this state shall [:] register with the commissioner and:

      1.  Furnish notice to the commissioner that:

      (a) Identifies the state in which the group is domiciled;

      (b) Specifies the lines and classifications of liability insurance that the purchasing group intends to purchase;

      (c) Identifies the insurer from which the group intends to purchase its insurance and the domicile of the insurer;

      (d) Identifies the principal place of business of the group; [and]

      (e) Identifies all other states in which the group intends to do business; and

      (f) Provides such other information as the commissioner requires to verify [its] and determine:

             (1) Its qualification as a purchasing group;

             (2) Where the purchasing group is located; and

             (3) The appropriate tax treatment of the purchasing group; and

      2.  Appoint the commissioner as its agent solely to receive service of legal process, and pay the fee for filing a power of attorney required by subsection 4 of NRS 680B.010, except that this subsection does not apply to a purchasing group that:

      (a) Was domiciled before April 1, 1986, and on and after October 27, 1986, in any state;

      (b) Before and after October 27, 1986, purchased its insurance from an insurer licensed in any state;

      (c) Was a purchasing group under the requirements of the Product Liability Risk Retention Act of 1981 before October 27, 1986; and

      (d) Does not purchase insurance that was not authorized for an exemption under that act, as in effect before October 27, 1986.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1782 (Chapter 527, SB 505)ê

 

      Sec. 99.  NRS 695E.130 is hereby amended to read as follows:

      695E.130  1.  Except as otherwise provided in chapter 685A of NRS, a purchasing group shall not purchase insurance from an unauthorized insurer or a risk retention group that is not chartered or registered in this state.

      2.  A purchasing group is exempt from any law of this state that relates to the formation or prohibition of groups for the purchase of insurance, and any law that would discriminate against a purchasing group or its members.

      3.  An insurer is exempt from any law of this state that prohibits providing, or offering to provide, to a purchasing group or its members advantages based on their loss and expense experiences not afforded to other persons with respect to rates, policy forms, coverages or other matters.

      4.  A purchasing group and its insurer are exempt from any law of this state which requires that an insurance policy issued to a purchasing group or any of its members be countersigned by an insurance agent residing in this state.

      5.  A purchasing group that obtains liability insurance from a surplus lines insurer or a risk retention group shall inform each of the members of the purchasing group which have a risk resident or located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state, and that the risk retention group or insurer may not be subject to all insurance laws and regulations of this state.

      6.  No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole, but the coverage may provide for a deductible or self-insured retention applicable to individual members of the group.

      7.  Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits which are applicable to all purchases of group insurance.

      Sec. 100.  NRS 695E.140 is hereby amended to read as follows:

      695E.140  1.  A risk retention group seeking to be chartered in this state must obtain a certificate of authority pursuant to chapter 680A of NRS to transact liability insurance and, except as otherwise provided in this chapter, must comply with:

      (a) All of the laws, regulations and requirements applicable to liability insurers in this state; and

      (b) The provisions of NRS 695E.150 to 695E.210, inclusive, to the extent that those provisions do not limit or conflict with the provisions with which the group is required to comply pursuant to paragraph (a).

      2.  Before it may transact insurance in any state, the risk retention group [shall] must submit to the commissioner for his approval a plan of operation . [, and any revisions of the plan if the group intends to offer any additional lines of liability insurance.

      2.] The risk retention group shall submit an appropriate revision in the event of any subsequent material change in any item of the plan of operation within 10 days after the change. The group shall not offer any additional kinds of liability insurance, in this state or in any other state, until a revision of the plan is approved by the commissioner.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1783 (Chapter 527, SB 505)ê

 

      3.  A risk retention group chartered in a state other than Nevada that is seeking to transact insurance as a risk retention group in this state must comply with the provisions of NRS 695E.150 to 695E.210, inclusive.

      Sec. 101.  NRS 695E.150 is hereby amended to read as follows:

      695E.150  Before transacting insurance in this state, a risk retention group [shall] must submit to the commissioner:

      1.  A statement of registration identifying:

      (a) Each state in which the risk retention group is chartered or licensed as a liability insurer;

      (b) The date of its charter;

      (c) Its principal place of business; and

      (d) Such other information, including information concerning its membership, as the commissioner requires to verify its qualification as a risk retention group;

      2.  A copy of its plan of operation and any revisions of the plan submitted to its state of domicile, except with respect to any line or classification of liability that was:

      (a) Defined in the Product Liability Risk Retention Act of 1981 before October 27, 1986; and

      (b) Offered before that date by a risk retention group that had been chartered and operating for not less than 3 years before that date; and

      3.  A statement appointing the commissioner as its agent for service of process pursuant to NRS 680A.250 [.] , together with the fee for filing a power of attorney required by subsection 4 of NRS 680B.010.

      Sec. 102.  NRS 695E.170 is hereby amended to read as follows:

      695E.170  1.  A risk retention group and its agents and representatives are subject to the provisions of NRS 686A.010 to 686A.310, inclusive. Any injunction obtained pursuant to those sections must be obtained from a court of competent jurisdiction.

      2.  All premiums paid for coverages within this state to a risk retention group are subject to the provisions of chapter 680B of NRS . [and NRS 685A.180.] Each risk retention group shall report all premiums paid to it [for risks insured within the state, and to the extent that agents or brokers are not utilized or do not pay the taxes, each risk retention group] and shall pay the taxes on premiums and any related fines or penalties for risks [insured within] resident, located or to be performed in the state. [To the extent that agents or brokers are utilized, they shall report and pay the taxes on the premiums for risks that they have placed with or on behalf of a risk retention group not chartered in this state.]

      Sec. 103.  NRS 695E.200 is hereby amended to read as follows:

      695E.200  A risk retention group shall not:

      1.  Transact insurance with any person who is not eligible for membership in the risk retention group;

      2.  Conduct any business in this state if an insurer is directly or indirectly a member or owner of the group, unless all the members of the group are insurers;

      3.  Transact insurance or otherwise operate while financially impaired or in a hazardous financial condition; [or]


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1784 (Chapter 527, SB 505)ê

 

      4.  Issue any insurance policy with terms providing, or which have been construed as providing, coverage prohibited by a specific statute of this state or declared unlawful by the highest court of this state which has rendered a judgment concerning the legality of that coverage; or

      5.  Join or contribute financially to the Nevada insurance guaranty association, or to any similar organization or fund in this state, and the provisions of chapter 687A of NRS do not apply to a risk retention group. A risk retention group and its insureds shall not accept any benefit from such an organization or fund for claims arising out of the operation of the risk retention group.

      Sec. 104.  NRS 695E.210 is hereby amended to read as follows:

      695E.210  1.  Any person acting, or offering to act, as an agent or broker for a purchasing group , a member of a purchasing group under the group policy, or a risk retention group transacting insurance in this state is subject to the provisions of [chapter] chapters 683A and 685A of NRS.

      2.  Except as otherwise provided in this chapter, the provisions of chapter 679B of NRS apply to purchasing groups and risk retention groups, and to the provisions of this chapter, to the extent that the provisions of chapter 679B of NRS are not specifically preempted by the Product Liability Risk Retention Act of 1981, as amended by the Risk Retention Amendments of 1986.

      3.  A risk retention group that violates any provision of this chapter is subject to the fines and penalties, including revocation of its right to do business in this state, applicable to licensed insurers under this Title.

      Sec. 105.  1.  This section and sections 1 to 13, inclusive, 28 to 62, inclusive, and 64 to 104, inclusive, of this act become effective on October 1, 1995.

      2.  Sections 14 to 27, inclusive, and section 63 of this act become effective on October 1, 1995, for the adoption of regulations by the commissioner of insurance and on April 1, 1996, for all other purposes.

 

________

 

 

CHAPTER 528, SB 541

Senate Bill No. 541–Committee on Commerce and Labor

CHAPTER 528

AN ACT relating to financial institutions; providing for the confidentiality of documents prepared for or created by a committee established to review compliance with certain regulatory requirements; and providing other matters properly relating thereto.

 

[Approved July 2, 1995]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 657 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  As used in this section, unless the context otherwise requires:

      (a) “Committee to review compliance” means one or more persons assigned or engaged by a financial institution to test, review or evaluate its conduct, transactions or potential transactions, policies or procedures for the purpose of monitoring and improving or enforcing compliance with state and federal statutes and regulations requiring safe, sound and fair lending practices, including, without limitation, acts concerning equal credit opportunity, fair housing, fair lending, flood zone protection, housing and financial discrimination, truth in lending and financial reporting to federal or state regulatory agencies.


…………………………………………………………………………………………………………………

ê1995 Statutes of Nevada, Page 1785 (Chapter 528, SB 541)ê

 

federal statutes and regulations requiring safe, sound and fair lending practices, including, without limitation, acts concerning equal credit opportunity, fair housing, fair lending, flood zone protection, housing and financial discrimination, truth in lending and financial reporting to federal or state regulatory agencies.

      (b) “Financial institution” means an institution licensed pursuant to the provisions of this Title or Title 56 or chapter 645B of NRS, or a similar institution chartered or licensed pursuant to federal law and includes a holding company, affiliate or subsidiary of such an institution.

      2.  Except as otherwise voluntarily authorized by the financial institution:

      (a) A document prepared for or created by a committee to review compliance is