Link to Page 3338

 

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

ê2007 Statutes of Nevada, Page 3339 (Chapter 536, AB 161)ê

 

      (b) Notify the Commissioner and the Administrator of the termination or cancellation of the membership of any member of the association within 10 days after the termination or cancellation; and

      (c) At the expense of the member whose membership is terminated or cancelled, maintain coverage for that member for [30] 60 days after notice is given pursuant to paragraph (b), unless the association first receives notice from the Administrator that the member has:

             (1) Been certified as a self-insured employer pursuant to NRS 616B.312;

             (2) Become a member of another association of self-insured public or private employers; or

             (3) Become insured by a private carrier.

      11.  If a member of an association changes his name or form of organization, the member remains liable for any obligations incurred or any responsibilities imposed pursuant to chapters 616A to 617, inclusive, of NRS under his former name or form of organization.

      12.  An association is liable for the payment of any compensation required to be paid by a member of the association pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS during his period of membership. The insolvency or bankruptcy of a member does not relieve the association of liability for the payment of the compensation.

      Sec. 30.3.  NRS 616B.425 is hereby amended to read as follows:

      616B.425  1.  The Commissioner may issue an order requiring an association of self-insured public or private employers or a member of the association to cease and desist from engaging in any act or practice found to be in violation of any provision of NRS 616B.350 to 616B.446, inclusive, and section 29.5 of this act, or any regulation adopted pursuant thereto.

      2.  If the Commissioner determines that an association or a member of the association has violated an order to cease and desist, the Commissioner may impose an administrative fine of not more than $10,000 for each violation of the order, not to exceed an aggregate amount of $100,000, or withdraw the certificate of the association, or both.

      Sec. 30.5.  NRS 616B.428 is hereby amended to read as follows:

      616B.428  1.  The Commissioner may impose an administrative fine for each violation of any provision of NRS 616B.350 to 616B.446, inclusive, and section 29.5 of this act, or any regulation adopted pursuant thereto. Except as otherwise provided in those sections, the amount of the fine may not exceed $1,000 for each violation or an aggregate amount of $10,000.

      2.  The Commissioner may withdraw the certificate of an association of self-insured public or private employers if:

      (a) The association’s certificate was obtained by fraud;

      (b) The application for certification contained a material misrepresentation;

      (c) The association is found to be insolvent;

      (d) The association fails to have five or more members;

      (e) The association fails to pay the costs of any examination or any penalty, fee or assessment required by the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS;

      (f) The association fails to comply with any of the provisions of this chapter or chapter 616A, 616C, 616D or 617 of NRS, or any regulation adopted pursuant thereto;

 


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

ê2007 Statutes of Nevada, Page 3340 (Chapter 536, AB 161)ê

 

      (g) The association fails to comply with any order of the Commissioner within the time prescribed by the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or in the order of the Commissioner; or

      (h) The association or its third-party administrator misappropriates, converts, illegally withholds or refuses to pay any money to which a person is entitled and that was entrusted to the association in its fiduciary capacity.

      3.  If the Commissioner withdraws the certification of an association of self-insured public or private employers, each employer who is a member of the association remains liable for his obligations incurred before and after the order of withdrawal.

      4.  Any employer who is a member of an association whose certification is withdrawn shall, on the effective date of the withdrawal, qualify as an employer pursuant to NRS 616B.650.

      Sec. 30.7.  NRS 616B.446 is hereby amended to read as follows:

      616B.446  The Commissioner may adopt such regulations as are necessary to carry out the provisions of NRS 616B.350 to 616B.446, inclusive [.] , and section 29.5 of this act.

      Sec. 30.8.  NRS 616B.691 is hereby amended to read as follows:

      616B.691  1.  For the purposes of chapters 612 and 616A to 617, inclusive, of NRS, an employee leasing company which complies with the provisions of NRS 616B.670 to 616B.697, inclusive, shall be deemed to be the employer of the employees it leases to a client company.

      2.  [An] If an employee leasing company complies with the provisions of subsection 3, the employee leasing company shall be deemed to be the employer of its leased employees for the purposes of sponsoring and maintaining any benefit plans [.] , including, without limitation, for the purposes of the Employee Retirement Income Security Act of 1974.

      3.  An employee leasing company shall not offer its employees any self-funded industrial insurance program. An employee leasing company shall not act as a self-insured employer or be a member of an association of self-insured public or private employers pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS . [or pursuant to title 57 of NRS.]

      4.  If an employee leasing company fails to:

      (a) Pay any contributions, premiums, forfeits or interest due; or

      (b) Submit any reports or other information required,

Ê pursuant to this chapter or chapter 612, 616A, 616C, 616D or 617 of NRS, the client company is jointly and severally liable for the contributions, premiums, forfeits or interest attributable to the wages of the employees leased to it by the employee leasing company.

      Sec. 31.  NRS 232.825 is hereby amended to read as follows:

      232.825  The Commissioner:

      1.  May appoint [two] three deputies. The deputies are in the unclassified service of the State. Except as otherwise provided in NRS 284.143, each deputy shall devote his entire time and attention to the business of his office and shall not pursue any other business or occupation or hold any other office of profit.

      2.  Is responsible for the administration of the provisions of title 57 of NRS, and all other provisions of law relating to the functions of the Division.   3.  May employ such staff as is necessary for the performance of his duties.

      4.  Has such other powers and duties as are provided by law.

      Sec. 32.  NRS 689A.735 and 694C.260 are hereby repealed.

 


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

ê2007 Statutes of Nevada, Page 3341 (Chapter 536, AB 161)ê

 

      Sec. 33.  1.  This section and section 1 of this act become effective on July 1, 2007.

      2.  Sections 1.03 to 32, inclusive, of this act become effective on October 1, 2007.

________

 

CHAPTER 537, AB 496

Assembly Bill No. 496–Committee on Commerce and Labor

 

CHAPTER 537

 

AN ACT relating to workers’ compensation; revising provisions governing employee leasing companies; revising various duties of employers, insurers and claimants under the workers’ compensation system; revising certain procedures for accepting and denying workers’ compensation claims; prohibiting certain acts by vocational rehabilitation counselors; declaring void certain limiting provisions in an employer’s policy of uninsured or underinsured vehicle coverage; providing for the creation of a code of conduct for hearing officers and appeals officers; revising provisions governing the provision of vocational rehabilitation services; revising certain provisions relating to occupational diseases; and providing other matters properly relating thereto.

 

[Approved: June 15, 2007]

 

Legislative Counsel’s Digest:

      Existing law provides for the payment of workers’ compensation if, during the course of employment, an employee is injured or killed by a workplace accident or occupational disease. (Chapters 616A-617 of NRS) Existing law authorizes an employer, after a workplace accident, to furnish the injured employee with the name of at least one physician or chiropractor qualified to examine the employee, but the employer may not require the employee to select any particular physician or chiropractor for the examination. The examining physician or chiropractor must report to the employer regarding the character and extent of the injury, but the employer may not require or permit the disclosure of any other information concerning the employee’s physical condition. (NRS 616C.010)

      This bill makes various changes to the law governing workers’ compensation. Section 1 of this bill requires employee leasing companies to maintain certain records relating to workers’ compensation insurance. Section 1.2 of this bill provides for the recalculation of the average monthly wage of an injured employee. Section 1.25 of this bill authorizes an insurer to deny compensation to an injured employee based on his discharge from employment for misconduct. Section 1.3 of this bill prohibits a vocational rehabilitation counselor from engaging in certain acts, and section 19 of this bill provides for the imposition of an administrative fine for a violation of that prohibition. Section 1.35 of this bill regulates the payment of compensation to an injured employee in a lump sum. Section 1.4 of this bill requires an employer to furnish an injured employee with the names of at least two physicians or chiropractors who are qualified to examine the employee. Sections 1.5, 3 and 5 of this bill revise provisions governing claims for compensation. Section 4 of this bill provides that certain provisions in an employer’s policy of uninsured or underinsured vehicle coverage that limit certain rights of injured employees or insurers are void. Section 6 of this bill provides for the creation of a code of conduct for hearing officers and appeals officers who conduct hearings relating to workers’ compensation, and for the establishment of standards for the initial training and continuing education of such persons.

 


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

ê2007 Statutes of Nevada, Page 3342 (Chapter 537, AB 496)ê

 

continuing education of such persons. Sections 7-11 of this bill revise certain provisions governing hearings and appeals in workers’ compensation cases. Sections 12-15 of this bill revise certain provisions governing the payment of compensation for injuries or death. Sections 16-18 of this bill revise certain provisions governing the provision of vocational rehabilitation services. Section 19 of this bill reduces the amount of certain benefit penalties that may be imposed for certain violations.

      Existing law establishes certain general requirements which are used to determine whether a disease is compensable as an occupational disease. (NRS 617.440) However, existing law also provides that for some specific diseases, such as certain cancers, lung diseases, heart diseases and contagious diseases, there is a legal presumption that those diseases are compensable under the workers’ compensation system when contracted under certain specific circumstances, such as when contracted by firefighters, police officers and emergency medical attendants. (NRS 617.453, 617.455, 617.457, 617.485, 617.487) Section 21 of this bill provides that the general requirements of NRS 617.440 do not apply to the specific provisions of existing law which create such legal presumptions.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 616B.682 is hereby amended to read as follows:

      616B.682  Each employee leasing company operating in this State shall [maintain] :

      1.  Maintain an office or similar site in this State for retaining, reviewing and auditing its payroll records and written agreements with client companies.

      2.  Maintain at that office or similar site in this State records establishing that the employee leasing company maintains current policies of workers’ compensation insurance providing coverage for each employee it leases to each client company.

      3.  Keep the records described in subsection 2 open for inspection and copying, during its regular business hours, by:

      (a) Each employee it leases to each client company and any representative of each such employee; and

      (b) The public.

      Sec. 1.1.  Chapter 616C of NRS is hereby amended by adding thereto the provisions set forth as sections 1.2 to 1.35, inclusive, of this act.

      Sec. 1.2.  1.  Notwithstanding the provisions of subsection 3 of NRS 616C.315 and except as otherwise provided in this section, if an injured employee is receiving compensation based on a calculation of his average monthly wage as determined pursuant to the regulations adopted by the Administrator pursuant to NRS 616C.420, the injured employee or the employer may request a hearing before a hearing officer pursuant to the provisions of NRS 616C.315 to 616C.385, inclusive, asking for a recalculation of the average monthly wage of the injured employee.

      2.  The injured employee is entitled to have his average monthly wage recalculated if he proves by a preponderance of the evidence that the insurer calculated his average monthly wage improperly or incorrectly as a result of:

      (a) The use of any improper or incorrect information or methodology;

      (b) The failure to use any proper or correct information or methodology;

      (c) Any error of law or fact; or

      (d) Any other error, omission, neglect or wrongful act.

 


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

ê2007 Statutes of Nevada, Page 3343 (Chapter 537, AB 496)ê

 

      3.  If the injured employee proves that the insurer calculated his average monthly wage improperly or incorrectly, resulting in an underpayment of compensation:

      (a) The insurer shall:

             (1) Increase the injured employee’s future compensation based on the correct average monthly wage; and

             (2) Pay the injured employee a lump sum in an amount equal to the underpayment of compensation for the period during which the insurer was using the incorrect average monthly wage; and

      (b) The remedy provided in paragraph (a) is the sole remedy for the underpayment and the insurer is not subject to the imposition of any fine or benefit penalty therefor.

      4.  If the hearing officer determines that the calculation of the average monthly wage resulted in an overpayment of compensation, the insurer may require the injured employee to repay to the insurer an amount equal to the overpayment received by the injured employee during any one 30-day period.

      5.  The average monthly wage of an injured employee may not be challenged by the insurer, the employer or the injured employee after the date on which any portion of an award for permanent partial disability is paid or the claim closes, whichever occurs first.

      6.  The provisions of this section do not apply if the issue of the average monthly wage of the injured employee was previously adjudicated to a final decision in:

      (a) A hearing before a hearing officer or appeals officer pursuant to the provisions of NRS 616C.315 to 616C.385, inclusive; or

      (b) Any proceedings for judicial review.

      Sec. 1.25.  1.  If an injured employee is discharged from his employment as a result of misconduct, an insurer may deny compensation to the injured employee because of that discharge for misconduct only if the insurer proves by a preponderance of the evidence that:

      (a) The injured employee was discharged from his employment solely for his misconduct and not for any reason relating to his claim for compensation; and

      (b) It is the injured employee’s discharge from his employment for misconduct, and not his injury, that is the sole cause for the injured employee’s inability to return to work with the preinjury employer.

      2.  An insurer waives its rights under subsection 1 if the insurer does not make a determination to deny or suspend compensation to the injured employee within 70 days after the date on which the insurer learns that the injured employee has been discharged for misconduct.

      Sec. 1.3.  A vocational rehabilitation counselor shall not:

      1.  Offer payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services to an injured employee:

      (a) Without providing written notice of the offer to the attorney for the injured employee; or

      (b) If the injured employee is not represented by an attorney, without providing a written notice to the employee which satisfies the requirements of the notice required by paragraph (c) of subsection 3 of NRS 616C.595;

      2.  Offer any monetary payment to an injured employee in an amount that is less than the amount authorized by the insurer;

 


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

ê2007 Statutes of Nevada, Page 3344 (Chapter 537, AB 496)ê

 

      3.  Make any false statement or implication that an injured employee must make a decision regarding vocational rehabilitation within a certain period of time;

      4.  Advise an insured or claimant not to seek legal counsel; or

      5.  Provide legal advice to a claimant.

      Sec. 1.35.  1.  Except as otherwise provided in subsection 2, an insurer shall, within 30 days after receiving a written request from an injured employee for payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services, respond in writing to the request and, if the insurer agrees to the request, include in the response:

      (a) The amount of the lump sum that the insurer is offering to pay;

      (b) A statement that the injured employee has 30 days after the date of the written response to accept or reject the lump-sum offer; and

      (c) A statement indicating that, if the injured employee rejects the lump-sum offer, he must continue working with his vocational rehabilitation counselor in accordance with the provisions of this chapter and the regulations adopted pursuant thereto.

      2.  An insurer need only respond to a written request from an injured employee for payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services if the injured employee is eligible for vocational rehabilitation services.

      Sec. 1.4.  NRS 616C.010 is hereby amended to read as follows:

      616C.010  1.  Whenever any accident occurs to any employee, he shall forthwith report the accident and the injury resulting therefrom to his employer.

      2.  When an employer learns of an accident, whether or not it is reported, the employer may direct the employee to submit to, or the employee may request, an examination by a physician or chiropractor, in order to ascertain the character and extent of the injury and render medical attention which is required immediately. The employer [may] shall:

      (a) If the employer’s insurer has entered into a contract with an organization for managed care or with providers of health care pursuant to NRS 616B.527, furnish the names, addresses and telephone numbers of [one] :

             (1) Two or more physicians or chiropractors [,] who are qualified to conduct the examination and who are available pursuant to the terms of the contract, if there are two or more such physicians or chiropractors within 30 miles of the employee’s place of employment; or

             (2) One or more physicians or chiropractors who are qualified to conduct the examination and who are available pursuant to the terms of the contract, if there are not two or more such physicians or chiropractors within 30 miles of the employee’s place of employment.

      (b) If the employer’s insurer has not entered into a contract with an organization for managed care or with providers of health care pursuant to NRS 616B.527, furnish the names, addresses and telephone numbers of:

             (1) Two or more physicians or chiropractors who are qualified to conduct the examination, if there are two or more such physicians or chiropractors within 30 miles of the employee’s place of employment; or

             (2) One or more physicians or chiropractors who are qualified to conduct the examination, if there are not two or more such physicians or chiropractors within 30 miles of the employee’s place of employment.

      3.  From among the names furnished by the employer pursuant to subsection 2, the employee shall select one of those physicians or chiropractors to conduct the examination, but [may] the employer shall not require the employee to select [any] a particular physician or chiropractor [.]

 


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

ê2007 Statutes of Nevada, Page 3345 (Chapter 537, AB 496)ê

 

chiropractors to conduct the examination, but [may] the employer shall not require the employee to select [any] a particular physician or chiropractor [.] from among the names furnished by the employer. Thereupon, the examining physician or chiropractor shall report forthwith to the employer and to the insurer the character and extent of the injury. The employer shall not require the employee to disclose or permit the disclosure of any other information concerning his physical condition [.] except as required by NRS 616C.177.

      [3.] 4.  Further medical attention, except as otherwise provided in NRS 616C.265, must be authorized by the insurer.

      [4.] 5.  This section does not prohibit an employer from requiring the employee to submit to an examination by a physician or chiropractor specified by the employer at any convenient time after medical attention which is required immediately has been completed.

      Sec. 1.5.  NRS 616C.065 is hereby amended to read as follows:

      616C.065  1.  Except as otherwise provided in NRS 616C.136, within 30 days after the insurer has been notified of an industrial accident, every insurer shall:

      (a) [Commence payment of] Accept a claim for compensation [;] , notify the claimant or the person acting on behalf of the claimant that the claim has been accepted and commence payment of the claim; or

      (b) Deny the claim and notify the claimant or the person acting on behalf of the claimant and the Administrator that the claim has been denied.

[Ê]

      2.  Payments made by an insurer pursuant to this section are not an admission of liability for the claim or any portion of the claim.

      [2.] 3.  Except as otherwise provided in this subsection, if an insurer unreasonably delays or refuses to pay the claim within 30 days after the insurer has been notified of an industrial accident, the insurer shall pay upon order of the Administrator an additional amount equal to three times the amount specified in the order as refused or unreasonably delayed. This payment is for the benefit of the claimant and must be paid to him with the compensation assessed pursuant to chapters 616A to 617, inclusive, of NRS. The provisions of this section do not apply to the payment of a bill for accident benefits that is governed by the provisions of NRS 616C.136.

      4.  The insurer shall notify the claimant or the person acting on behalf of the claimant that a claim has been accepted or denied pursuant to subsection 1 by:

      (a) Mailing its written determination to the claimant or the person acting on behalf of the claimant; and

      (b) If the claim has been denied, in whole or in part, obtaining a certificate of mailing.

      5.  The failure of the insurer to obtain a certificate of mailing as required by paragraph (b) of subsection 4 shall be deemed to be a failure of the insurer to mail the written determination of the denial of a claim as required by this section.

      6.  Upon request, the insurer shall provide a copy of the certificate of mailing, if any, to the claimant or the person acting on behalf of the claimant.

      7.  For the purposes of this section, the insurer shall mail the written determination to:

 


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

ê2007 Statutes of Nevada, Page 3346 (Chapter 537, AB 496)ê

 

      (a) The mailing address of the claimant or the person acting on behalf of the claimant that is provided on the form prescribed by the Administrator for filing the claim; or

      (b) Another mailing address if the claimant or the person acting on behalf of the claimant provides to the insurer written notice of another mailing address.

      8.  As used in this section, “certificate of mailing” means a receipt that provides evidence of the date on which the insurer presented its written determination to the United States Postal Service for mailing.

      Sec. 2.  (Deleted by amendment.)

      Sec. 3.  NRS 616C.070 is hereby amended to read as follows:

      616C.070  1.  A person is conclusively presumed to be totally dependent upon an injured or deceased employee if [the] :

      (a) The person is a natural, posthumous or adopted child, whether legitimate or illegitimate, under the age of 18 years [, or over that age if] ; or

      (b) The person is a natural, posthumous or adopted child, there is no surviving parent and the person is:

             (1) Over the age of 18 years and physically or mentally incapacitated from wage earning [, and there is no surviving parent.] ; or

             (2) Over the age of 18 years but under the age of 22 years and enrolled as a full-time student in an accredited vocational or educational institution.

      2.  Stepparents may be regarded in chapters 616A to 616D, inclusive, or chapter 617 of NRS as parents if the fact of dependency is shown, and a stepchild or stepchildren may be regarded in chapters 616A to 616D, inclusive, or chapter 617 of NRS as a natural child or children if the existence and fact of dependency are shown.

      [2.] 3.  Except as otherwise provided in subsection [13] 14 of NRS 616C.505, questions as to who constitute dependents and the extent of their dependency must be determined as of the date of the accident or injury to the employee, and their right to any benefit becomes fixed at that time, irrespective of any subsequent change in conditions, and the benefits are directly recoverable by and payable to the dependent or dependents entitled thereto or to their legal guardians or trustees.

      [3.] 4.  The presumptions of this section do not apply in favor of aliens who are nonresidents of the United States at the time of the accident, injury to, or death of the employee.

      Sec. 4.  NRS 616C.215 is hereby amended to read as follows:

      616C.215  1.  If an injured employee or, in the event of his death, his dependents, bring an action in tort against his employer to recover payment for an injury which is compensable pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS and, notwithstanding the provisions of NRS 616A.020, receive payment from the employer for that injury:

      (a) The amount of compensation the injured employee or his dependents are entitled to receive pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, including any future compensation, must be reduced by the amount paid by the employer.

      (b) The insurer, or in the case of claims involving the uninsured employer’s claim account or a subsequent injury account the Administrator, has a lien upon the total amount paid by the employer if the injured employee or his dependents receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS.

 


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

ê2007 Statutes of Nevada, Page 3347 (Chapter 537, AB 496)ê

 

employee or his dependents receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS.

Ê This subsection is applicable whether the money paid to the employee or his dependents by the employer is classified as a gift, a settlement or otherwise. The provisions of this subsection do not grant to an injured employee any right of action in tort to recover damages from his employer for his injury.

      2.  When an employee receives an injury for which compensation is payable pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS and which was caused under circumstances creating a legal liability in some person, other than the employer or a person in the same employ, to pay damages in respect thereof:

      (a) The injured employee, or in case of death his dependents, may take proceedings against that person to recover damages, but the amount of the compensation the injured employee or his dependents are entitled to receive pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, including any future compensation, must be reduced by the amount of the damages recovered, notwithstanding any act or omission of the employer or a person in the same employ which was a direct or proximate cause of the employee’s injury.

      (b) If the injured employee, or in case of death his dependents, receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, the insurer, or in case of claims involving the uninsured employers’ claim account or a subsequent injury account the Administrator, has a right of action against the person so liable to pay damages and is subrogated to the rights of the injured employee or of his dependents to recover therefor.

      3.  When an injured employee incurs an injury for which compensation is payable pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS and which was caused under circumstances entitling him, or in the case of death his dependents, to receive proceeds under his employer’s policy of uninsured or underinsured vehicle coverage:

      (a) The injured employee, or in the case of death his dependents, may take proceedings to recover those proceeds, but the amount of compensation the injured employee or his dependents are entitled to receive pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, including any future compensation, must be reduced by the amount of proceeds received.

      (b) If an injured employee, or in the case of death his dependents, receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, the insurer, or in the case of claims involving the uninsured employers’ claim account or a subsequent injury account the Administrator, is subrogated to the rights of the injured employee or his dependents to recover proceeds under the employer’s policy of uninsured or underinsured vehicle coverage. The insurer and the Administrator are not subrogated to the rights of an injured employee or his dependents under a policy of uninsured or underinsured vehicle coverage purchased by the employee.

      (c) Any provision in the employer’s policy of uninsured or underinsured vehicle coverage which has the effect of:

 


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

ê2007 Statutes of Nevada, Page 3348 (Chapter 537, AB 496)ê

 

             (1) Limiting the rights of the injured employee or his dependents to recover proceeds under the policy because of the receipt of any compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS;

             (2) Limiting the rights of subrogation of the insurer or Administrator provided by paragraph (b); or

             (3) Excluding coverage which inures to the direct or indirect benefit of the insurer or Administrator,

Ê is void.

      4.  In any action or proceedings taken by the insurer or the Administrator pursuant to this section, evidence of the amount of compensation, accident benefits and other expenditures which the insurer, the uninsured employers’ claim account or a subsequent injury account have paid or become obligated to pay by reason of the injury or death of the employee is admissible. If in such action or proceedings the insurer or the Administrator recovers more than those amounts, the excess must be paid to the injured employee or his dependents.

      5.  In any case where the insurer or the Administrator is subrogated to the rights of the injured employee or of his dependents as provided in subsection 2 or 3, the insurer or the Administrator has a lien upon the total proceeds of any recovery from some person other than the employer, whether the proceeds of such recovery are by way of judgment, settlement or otherwise. The injured employee, or in the case of his death his dependents, are not entitled to double recovery for the same injury, notwithstanding any act or omission of the employer or a person in the same employ which was a direct or proximate cause of the employee’s injury.

      6.  The lien provided for pursuant to subsection 1 or 5 includes the total compensation expenditure incurred by the insurer, the uninsured employers’ claim account or a subsequent injury account for the injured employee and his dependents.

      7.  An injured employee, or in the case of death his dependents, or the attorney or representative of the injured employee or his dependents, shall notify the insurer, or in the case of claims involving the uninsured employers’ claim account or a subsequent injury account the Administrator, in writing before initiating a proceeding or action pursuant to this section.

      8.  Within 15 days after the date of recovery by way of actual receipt of the proceeds of the judgment, settlement or otherwise:

      (a) The injured employee or his dependents, or the attorney or representative of the injured employee or his dependents; and

      (b) The third-party insurer,

Ê shall notify the insurer, or in the case of claims involving the uninsured employers’ claim account or a subsequent injury account the Administrator, of the recovery and pay to the insurer or the Administrator, respectively, the amount due pursuant to this section together with an itemized statement showing the distribution of the total recovery. The attorney or representative of the injured employee or his dependents and the third-party insurer are jointly and severally liable for any amount to which an insurer is entitled pursuant to this section if the attorney, representative or third-party insurer has knowledge of the lien provided for in this section.

      9.  An insurer shall not sell its lien to a third-party insurer unless the injured employee or his dependents, or the attorney or representative of the injured employee or his dependents, refuses to provide to the insurer information concerning the action against the third party.

 


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

ê2007 Statutes of Nevada, Page 3349 (Chapter 537, AB 496)ê

 

injured employee or his dependents, refuses to provide to the insurer information concerning the action against the third party.

      10.  In any trial of an action by the injured employee, or in the case of his death by his dependents, against a person other than the employer or a person in the same employ, the jury must receive proof of the amount of all payments made or to be made by the insurer or the Administrator. The court shall instruct the jury substantially as follows:

 

      Payment of workmen’s compensation benefits by the insurer, or in the case of claims involving the uninsured employers’ claim account or a subsequent injury account the Administrator, is based upon the fact that a compensable industrial accident occurred, and does not depend upon blame or fault. If the plaintiff does not obtain a judgment in his favor in this case, he is not required to repay his employer, the insurer or the Administrator any amount paid to him or paid on his behalf by his employer, the insurer or the Administrator.

      If you decide that the plaintiff is entitled to judgment against the defendant, you shall find his damages in accordance with the court’s instructions on damages and return your verdict in the plaintiff’s favor in the amount so found without deducting the amount of any compensation benefits paid to or for the plaintiff. The law provides a means by which any compensation benefits will be repaid from your award.

 

      11.  To calculate an employer’s premium, the employer’s account with the private carrier must be credited with an amount equal to that recovered by the private carrier from a third party pursuant to this section, less the private carrier’s share of the expenses of litigation incurred in obtaining the recovery, except that the total credit must not exceed the amount of compensation actually paid or reserved by the private carrier on the injured employee’s claim.

      12.  As used in this section, “third-party insurer” means an insurer that issued to a third party who is liable for damages pursuant to subsection 2, a policy of liability insurance the proceeds of which are recoverable pursuant to this section. The term includes an insurer that issued to an employer a policy of uninsured or underinsured vehicle coverage.

      Sec. 5.  NRS 616C.235 is hereby amended to read as follows:

      616C.235  1.  Except as otherwise provided in subsections 2, 3 and 4:

      (a) When the insurer determines that a claim should be closed before all benefits to which the claimant may be entitled have been paid, the insurer shall send a written notice of its intention to close the claim to the claimant by first-class mail addressed to the last known address of the claimant [.] and, if the insurer has been notified that the claimant is represented by an attorney, to the attorney for the claimant by first-class mail addressed to the last known address of the attorney. The notice must include , on a separate page, a statement describing the effects of closing a claim pursuant to this section and a statement that if the claimant does not agree with the determination, he has a right to request a resolution of the dispute pursuant to NRS 616C.305 and 616C.315 to 616C.385, inclusive [.] , including, without limitation, a statement which prominently displays the limit on the time that the claimant has to request a resolution of the dispute as set forth in NRS 616C.315. A suitable form for requesting a resolution of the dispute must be enclosed with the notice.

 


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

ê2007 Statutes of Nevada, Page 3350 (Chapter 537, AB 496)ê

 

the dispute must be enclosed with the notice. The closure of a claim pursuant to this subsection is not effective unless notice is given as required by this subsection.

      (b) If the insurer does not receive a request for the resolution of the dispute, it may close the claim.

      (c) Notwithstanding the provisions of NRS 233B.125, if a hearing is conducted to resolve the dispute, the decision of the hearing officer may be served by first-class mail.

      2.  If, during the first 12 months after a claim is opened, the medical benefits required to be paid for a claim are less than $300, the insurer may close the claim at any time after he sends, by first-class mail addressed to the last known address of the claimant, written notice that includes a statement which prominently displays that:

      (a) The claim is being closed pursuant to this subsection;

      (b) The injured employee may appeal the closure of the claim pursuant to the provisions of NRS 616C. 305 and 616C.315 to 616C.385, inclusive; and

      (c) If the injured employee does not appeal the closure of the claim or appeals the closure of the claim but is not successful, the claim cannot be reopened.

      3.  In addition to the notice described in subsection 2, an insurer shall send to each claimant who receives less than $300 in medical benefits within 6 months after the claim is opened a written notice that explains the circumstances under which a claim may be closed pursuant to subsection 2. The written notice provided pursuant to this subsection does not create any right to appeal the contents of that notice. The written notice must be:

      (a) Sent by first-class mail addressed to the last known address of the claimant; and

      (b) A document that is separate from any other document or form that is used by the insurer.

      4.  The closure of a claim pursuant to subsection 2 is not effective unless notice is given as required by subsections 2 and 3.

      Sec. 6.  NRS 616C.295 is hereby amended to read as follows:

      616C.295  1.  The Chief of the Hearings Division shall adopt regulations establishing:

      (a) A code of conduct for hearing officers who conduct hearings in contested cases for compensation under chapters 616A to 617, inclusive, of NRS; and

      (b) A code of conduct for appeals officers who conduct hearings and appeals as required pursuant to chapters 616A to 617, inclusive, of NRS.

      2.  The codes of conduct established pursuant to subsection 1 must be designed to ensure fairness and impartiality, and to avoid the appearance of impropriety.

      3.  The Chief of the Hearings Division shall adopt regulations establishing:

      (a) Standards for the initial training and continuing education of hearing officers who conduct hearings in contested cases for compensation under chapters 616A to 617, inclusive, of NRS; and

      (b) Standards for the initial training and continuing education of appeals officers who conduct hearings and appeals as required pursuant to chapters 616A to 617, inclusive, of NRS.

 


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

ê2007 Statutes of Nevada, Page 3351 (Chapter 537, AB 496)ê

 

      4.  The standards established pursuant to subsection 3 must, without limitation, include training and continuing education in:

      (a) The provisions of chapters 616A to 617, inclusive, of NRS;

      (b) Dispute resolution; and

      (c) Mediation.

      5.  The Chief of the Hearings Division shall:

      (a) Prescribe by regulation the qualifications [and training] required before a person may, pursuant to chapters 616A to [616D, inclusive, or chapter] 617 , inclusive, of NRS, serve as a hearing officer. [Training for a hearing officer must include techniques of mediation.]

      (b) Provide for the expediting of the hearing of cases that involve the termination or denial of compensation.

      [2.] 6.  From the cases heard each year by hearing officers and appeals officers regarding claims for benefits by injured employees, the Chief of the Hearings Division shall prepare an annual report which itemizes, on the basis of each insurer and third-party administrator, the number of cases affirmed, reversed, remanded and resolved by other disposition involving that insurer or third-party administrator, including a breakdown of that information by the type of benefits denied by the insurer or third-party administrator.

      [3.] 7.  As used in this section, “Chief of the Hearings Division” means the Chief of the Hearings Division of the Department of Administration.

      Sec. 7.  NRS 616C.315 is hereby amended to read as follows:

      616C.315  1.  Any person who is subject to the jurisdiction of the hearing officers pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS may request a hearing before a hearing officer of any matter within the hearing officer’s authority. The insurer shall provide, without cost, the forms necessary to request a hearing to any person who requests them.

      2.  A hearing must not be scheduled until the following information is provided to the hearing officer:

      (a) The name of:

             (1) The claimant;

             (2) The employer; and

             (3) The insurer or third-party administrator;

      (b) The number of the claim; and

      (c) If applicable, a copy of the letter of determination being appealed or, if such a copy is unavailable, the date of the determination and the issues stated in the determination.

      3.  Except as otherwise provided in NRS 616B.772, 616B.775, 616B.787 and 616C.305, and section 1.2 of this act, a person who is aggrieved by:

      (a) A written determination of an insurer; or

      (b) The failure of an insurer to respond within 30 days to a written request mailed to the insurer by the person who is aggrieved,

Ê may appeal from the determination or failure to respond by filing a request for a hearing before a hearing officer. Such a request must include the information required pursuant to subsection 2 and , except as otherwise provided in subsections 4 and 5, must be filed within 70 days after the date on which the notice of the insurer’s determination was mailed by the insurer or the unanswered written request was mailed to the insurer, as applicable. The failure of an insurer to respond to a written request for a determination within 30 days after receipt of such a request shall be deemed by the hearing officer to be a denial of the request.

 


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

ê2007 Statutes of Nevada, Page 3352 (Chapter 537, AB 496)ê

 

      4.  The period specified in subsection 3 within which a request for a hearing must be filed may be extended for an additional 90 days if the person aggrieved shows by a preponderance of the evidence that he was diagnosed with a terminal illness or was informed of the death or diagnosis of a terminal illness of his spouse, parent or child.

      5.  Failure to file a request for a hearing within the period specified in subsection 3 may be excused if the person aggrieved shows by a preponderance of the evidence that he did not receive the notice of the determination and the forms necessary to request a hearing. The claimant or employer shall notify the insurer of a change of address.

      [5.] 6.  The hearing before the hearing officer must be conducted as expeditiously and informally as is practicable.

      [6.] 7.  The parties to a contested claim may, if the claimant is represented by legal counsel, agree to forego a hearing before a hearing officer and submit the contested claim directly to an appeals officer.

      Sec. 8.  NRS 616C.330 is hereby amended to read as follows:

      616C.330  1.  The hearing officer shall:

      (a) Except as otherwise provided in subsection 2 of NRS 616C.315, within 5 days after receiving a request for a hearing, set the hearing for a date and time within 30 days after his receipt of the request at a place in Carson City, Nevada, or Las Vegas, Nevada, or upon agreement of one or more of the parties to pay all additional costs directly related to an alternative location, at any other place of convenience to the parties, at the discretion of the hearing officer;

      (b) Give notice by mail or by personal service to all interested parties to the hearing at least 15 days before the date and time scheduled; and

      (c) Conduct hearings expeditiously and informally.

      2.  The notice must include a statement that the injured employee may be represented by a private attorney or seek assistance and advice from the Nevada Attorney for Injured Workers.

      3.  If necessary to resolve a medical question concerning an injured employee’s condition or to determine the necessity of treatment for which authorization for payment has been denied, the hearing officer may order an independent medical examination, which must not involve treatment, and refer the employee to a physician or chiropractor of his choice who has demonstrated special competence to treat the particular medical condition of the employee [.] , whether or not the physician or chiropractor is on the insurer’s panel of providers of health care. If the medical question concerns the rating of a permanent disability, the hearing officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians and chiropractors maintained by the Administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any medical examination requested by the hearing officer.

      4.  If an injured employee has requested payment for the cost of obtaining a second determination of his percentage of disability pursuant to NRS 616C.100, the hearing officer shall decide whether the determination of the higher percentage of disability made pursuant to NRS 616C.100 is appropriate and, if so, may order the insurer to pay to the employee an amount equal to the maximum allowable fee established by the Administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

 


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

ê2007 Statutes of Nevada, Page 3353 (Chapter 537, AB 496)ê

 

Administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

      5.  The hearing officer shall order an insurer, organization for managed care or employer who provides accident benefits for injured employees pursuant to NRS 616C.265 to pay to the appropriate person the charges of a provider of health care if the conditions of NRS 616C.138 are satisfied.

      6.  The hearing officer may allow or forbid the presence of a court reporter and the use of a tape recorder in a hearing.

      7.  The hearing officer shall render his decision within 15 days after:

      (a) The hearing; or

      (b) He receives a copy of the report from the medical examination he requested.

      8.  The hearing officer shall render his decision in the most efficient format developed by the Chief of the Hearings Division of the Department of Administration.

      9.  The hearing officer shall give notice of his decision to each party by mail. He shall include with the notice of his decision the necessary forms for appealing from the decision.

      10.  Except as otherwise provided in NRS 616C.380, the decision of the hearing officer is not stayed if an appeal from that decision is taken unless an application for a stay is submitted by a party. If such an application is submitted, the decision is automatically stayed until a determination is made on the application. A determination on the application must be made within 30 days after the filing of the application. If, after reviewing the application, a stay is not granted by the hearing officer or an appeals officer, the decision must be complied with within 10 days after the refusal to grant a stay.

      Sec. 9.  NRS 616C.340 is hereby amended to read as follows:

      616C.340  1.  The Governor shall appoint one or more appeals officers to conduct hearings and appeals as required pursuant to chapters 616A to 617, inclusive, of NRS. Each appeals officer shall hold office for 2 years after the date of his appointment and until his successor is appointed and has qualified. Each appeals officer is entitled to receive an annual salary in an amount provided by law and is in the unclassified service of the State.

      2.  Each appeals officer must be an attorney who has been licensed to practice law before all the courts of this State for at least 2 years. Except as otherwise provided in NRS 7.065, an appeals officer shall not engage in the private practice of law.

      3.  If an appeals officer determines that he has a personal interest or a conflict of interest, directly or indirectly, in any case which is before him, he shall disqualify himself from hearing the case.

      4.  The Governor may appoint one or more special appeals officers to conduct hearings and appeals as required pursuant to chapters 616A to 617, inclusive, of NRS. The Governor shall not appoint an attorney who represents persons in actions related to claims for compensation to serve as a special appeals officer.

      5.  A special appeals officer appointed pursuant to subsection 4 is vested with the same powers as a regular appeals officer. A special appeals officer may hear any case in which a regular appeals officer has a conflict, or any case assigned to him by the senior appeals officer to assist with a backlog of cases. A special appeals officer is entitled to be paid at an hourly rate, as determined by the Department of Administration.

 


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

ê2007 Statutes of Nevada, Page 3354 (Chapter 537, AB 496)ê

 

      6.  The decision of an appeals officer is the final and binding administrative [determination of] decision on a claim for compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS, and the whole record consists of all evidence taken at the hearing before the appeals officer and any findings of fact and conclusions of law based thereon.

      Sec. 10.  NRS 616C.345 is hereby amended to read as follows:

      616C.345  1.  Any party aggrieved by a decision of the hearing officer relating to a claim for compensation may appeal from the decision by , except as otherwise provided in subsections 8 and 9, filing a notice of appeal with an appeals officer within 30 days after the date of the decision.

      2.  A hearing must not be scheduled until the following information is provided to the appeals officer:

      (a) The name of:

             (1) The claimant;

             (2) The employer; and

             (3) The insurer or third-party administrator;

      (b) The number of the claim; and

      (c) If applicable, a copy of the letter of determination being appealed or, if such a copy is unavailable, the date of the determination and the issues stated in the determination.

      3.  If a dispute is required to be submitted to a procedure for resolving complaints pursuant to NRS 616C.305 and:

      (a) A final determination was rendered pursuant to that procedure; or

      (b) The dispute was not resolved pursuant to that procedure within 14 days after it was submitted,

Ê any party to the dispute may , except as otherwise provided in subsections 8 and 9, file a notice of appeal within 70 days after the date on which the final determination was mailed to the employee, or his dependent, or the unanswered request for resolution was submitted. Failure to render a written determination within 30 days after receipt of such a request shall be deemed by the appeals officer to be a denial of the request.

      4.  Except as otherwise provided in NRS 616C.380, the filing of a notice of appeal does not automatically stay the enforcement of the decision of a hearing officer or a determination rendered pursuant to NRS 616C.305. The appeals officer may order a stay, when appropriate, upon the application of a party. If such an application is submitted, the decision is automatically stayed until a determination is made concerning the application. A determination on the application must be made within 30 days after the filing of the application. If a stay is not granted by the officer after reviewing the application, the decision must be complied with within 10 days after the date of the refusal to grant a stay.

      5.  Except as otherwise provided in subsections 2 and 6, within 10 days after receiving a notice of appeal pursuant to this section or NRS 616C.220, 616D.140 or 617.401, or within 10 days after receiving a notice of a contested claim pursuant to subsection [6] 7 of NRS 616C.315, the appeals officer shall:

      (a) Schedule a hearing on the merits of the appeal or contested claim for a date and time within 90 days after his receipt of the notice at a place in Carson City, Nevada, or Las Vegas, Nevada, or upon agreement of one or more of the parties to pay all additional costs directly related to an alternative location, at any other place of convenience to the parties, at the discretion of the appeals officer; and

 


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

ê2007 Statutes of Nevada, Page 3355 (Chapter 537, AB 496)ê

 

      (b) Give notice by mail or by personal service to all parties to the matter and their attorneys or agents at least 30 days before the date and time scheduled.

      6.  A request to schedule the hearing for a date and time which is:

      (a) Within 60 days after the receipt of the notice of appeal or contested claim; or

      (b) More than 90 days after the receipt of the notice or claim,

Ê may be submitted to the appeals officer only if all parties to the appeal or contested claim agree to the request.

      7.  An appeal or contested claim may be continued upon written stipulation of all parties, or upon good cause shown.

      8.  The period specified in subsection 1 or 3 within which a notice of appeal must be filed may be extended for an additional 90 days if the person aggrieved shows by a preponderance of the evidence that he was diagnosed with a terminal illness or was informed of the death or diagnosis of a terminal illness of his spouse, parent or child.

      9.  Failure to file a notice of appeal within the period specified in subsection 1 or 3 may be excused if the party aggrieved shows by a preponderance of the evidence that he did not receive the notice of the determination and the forms necessary to appeal the determination. The claimant, employer or insurer shall notify the hearing officer of a change of address.

      Sec. 11.  NRS 616C.360 is hereby amended to read as follows:

      616C.360  1.  A stenographic or electronic record must be kept of the hearing before the appeals officer and the rules of evidence applicable to contested cases under chapter 233B of NRS apply to the hearing.

      2.  The appeals officer must hear any matter raised before him on its merits, including new evidence bearing on the matter.

      3.  If there is a medical question or dispute concerning an injured employee’s condition or concerning the necessity of treatment for which authorization for payment has been denied, the appeals officer may:

      (a) [Refer] Order an independent medical examination and refer the employee to a physician or chiropractor of his choice who has demonstrated special competence to treat the particular medical condition of the employee [.] , whether or not the physician or chiropractor is on the insurer’s panel of providers of health care. If the medical question concerns the rating of a permanent disability, the appeals officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians or chiropractors maintained by the Administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and the injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any examination requested by the appeals officer.

      (b) If the medical question or dispute is relevant to an issue involved in the matter before the appeals officer and all parties agree to the submission of the matter to an external review organization, submit the matter to an external review organization in accordance with NRS 616C.363 and any regulations adopted by the Commissioner.

      4.  If an injured employee has requested payment for the cost of obtaining a second determination of his percentage of disability pursuant to NRS 616C.100, the appeals officer shall decide whether the determination of the higher percentage of disability made pursuant to NRS 616C.100 is appropriate and, if so, may order the insurer to pay to the employee an amount equal to the maximum allowable fee established by the Administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

 


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

ê2007 Statutes of Nevada, Page 3356 (Chapter 537, AB 496)ê

 

appropriate and, if so, may order the insurer to pay to the employee an amount equal to the maximum allowable fee established by the Administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

      5.  The appeals officer shall order an insurer, organization for managed care or employer who provides accident benefits for injured employees pursuant to NRS 616C.265 to pay to the appropriate person the charges of a provider of health care if the conditions of NRS 616C.138 are satisfied.

      6.  Any party to the appeal or the appeals officer may order a transcript of the record of the hearing at any time before the seventh day after the hearing. The transcript must be filed within 30 days after the date of the order unless the appeals officer otherwise orders.

      7.  The appeals officer shall render his decision:

      (a) If a transcript is ordered within 7 days after the hearing, within 30 days after the transcript is filed; or

      (b) If a transcript has not been ordered, within 30 days after the date of the hearing.

      8.  The appeals officer may affirm, modify or reverse any decision made by the hearing officer and issue any necessary and proper order to give effect to his decision.

      Sec. 12.  NRS 616C.410 is hereby amended to read as follows:

      616C.410  Except as otherwise provided by NRS 616C.380, 616C.495, 616C.505, 616C.580 and 616C.595, and section 1.2 of this act, the insurer shall not make or allow any lump-sum settlements.

      Sec. 13.  NRS 616C.453 is hereby amended to read as follows:

      616C.453  1.  If a claimant or a dependent of a claimant is entitled to receive compensation pursuant to chapters 616A to 617, inclusive, of NRS for a permanent total disability and the claimant or dependent is not entitled to an annual increase in that compensation pursuant to NRS 616C.473, the claimant or dependent is entitled to an annual payment for that permanent total disability in an amount determined by the Administrator pursuant to subsection 3, but such annual payments may not exceed $1,200 per claimant or dependent. [The] Except as otherwise provided in subsection 5, the total payments made pursuant to this section may not exceed $500,000 per year.

      2.  Each year, the Administrator shall withdraw from the Uninsured Employers’ Claim Account established pursuant to NRS 616A.430 an amount of the income realized from the investment of the assets in the Account that is necessary to fund the payments calculated pursuant to subsection 3.

      3.  The Administrator shall adopt regulations establishing a method for the equitable distribution of the money withdrawn from the Account pursuant to subsection 2. The regulations must provide for payments that result in the largest proportional share of the money being paid to claimants and dependents who receive the lowest amount of compensation pursuant to chapters 616A to 617, inclusive, of NRS for the permanent total disability. The Administrator may adopt any other regulations that are necessary to carry out the provisions of this section.

      4.  [The] Except as otherwise provided in subsection 5, the Administrator shall make the payment required by this section to each claimant and dependent of the claimant who is entitled to the payment not later than October 1 of each year. Any payment received by the claimant or dependent of the claimant pursuant to this section is in addition to any compensation to which the claimant or dependent of the claimant is otherwise entitled by law.

 


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

ê2007 Statutes of Nevada, Page 3357 (Chapter 537, AB 496)ê

 

dependent of the claimant pursuant to this section is in addition to any compensation to which the claimant or dependent of the claimant is otherwise entitled by law.

      5.  The Administrator may make a payment from the Account to a claimant or a dependent of a claimant that would have been payable in a prior year pursuant to subsection 3 if the Administrator determines that the claimant or dependent was entitled to the payment pursuant to subsection 1.

      Sec. 14.  NRS 616C.495 is hereby amended to read as follows:

      616C.495  1.  Except as otherwise provided in NRS 616C.380, an award for a permanent partial disability may be paid in a lump sum under the following conditions:

      (a) A claimant injured on or after July 1, 1973, and before July 1, 1981, who incurs a disability that does not exceed 12 percent may elect to receive his compensation in a lump sum. A claimant injured on or after July 1, 1981, and before July 1, 1995, who incurs a disability that does not exceed 25 percent may elect to receive his compensation in a lump sum.

      (b) The spouse, or in the absence of a spouse, any dependent child of a deceased claimant injured on or after July 1, 1973, who is not entitled to compensation in accordance with NRS 616C.505, is entitled to a lump sum equal to the present value of the deceased claimant’s undisbursed award for a permanent partial disability.

      (c) Any claimant injured on or after July 1, 1981, and before July 1, 1995, who incurs a disability that exceeds 25 percent may elect to receive his compensation in a lump sum equal to the present value of an award for a disability of 25 percent. If the claimant elects to receive compensation pursuant to this paragraph, the insurer shall pay in installments to the claimant that portion of the claimant’s disability in excess of 25 percent.

      (d) Any claimant injured on or after July 1, 1995, may elect to receive his compensation in a lump sum in accordance with regulations adopted by the Administrator and approved by the Governor. The Administrator shall adopt regulations for determining the eligibility of such a claimant to receive all or any portion of his compensation in a lump sum. Such regulations may include the manner in which an award for a permanent partial disability may be paid to such a claimant in installments. Notwithstanding the provisions of NRS 233B.070, any regulation adopted pursuant to this paragraph does not become effective unless it is first approved by the Governor.

      2.  If the claimant elects to receive his payment for a permanent partial disability in a lump sum pursuant to subsection 1, all of his benefits for compensation terminate. His acceptance of that payment constitutes a final settlement of all factual and legal issues in the case. By so accepting he waives all of his rights regarding the claim, including the right to appeal from the closure of the case or the percentage of his disability, except:

      (a) His right to:

             (1) Reopen his claim in accordance with the provisions of NRS 616C.390; or

             (2) Have his claim considered by his insurer pursuant to NRS 616C.392;

      (b) Any counseling, training or other rehabilitative services provided by the insurer; and

      (c) His right to receive a benefit penalty in accordance with NRS 616D.120.

 


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

ê2007 Statutes of Nevada, Page 3358 (Chapter 537, AB 496)ê

 

Ê The claimant , when he demands his payment in a lump sum, must be [advised in writing of the provisions of this subsection when he demands his payment in a lump sum,] provided with a written notice which prominently displays a statement describing the effects of accepting payment in a lump sum of an entire permanent partial disability award, any portion of such an award or any uncontested portion of such an award, and that he has 20 days after the mailing or personal delivery of the notice within which to retract or reaffirm his demand, before payment may be made and his election becomes final.

      3.  Any lump-sum payment which has been paid on a claim incurred on or after July 1, 1973, must be supplemented if necessary to conform to the provisions of this section.

      4.  Except as otherwise provided in this subsection, the total lump-sum payment for disablement must not be less than one-half the product of the average monthly wage multiplied by the percentage of disability. If the claimant received compensation in installment payments for his permanent partial disability before electing to receive his payment for that disability in a lump sum, the lump-sum payment must be calculated for the remaining payment of compensation.

      5.  The lump sum payable must be equal to the present value of the compensation awarded, less any advance payment or lump sum previously paid. The present value must be calculated using monthly payments in the amounts prescribed in subsection 7 of NRS 616C.490 and actuarial annuity tables adopted by the Division. The tables must be reviewed annually by a consulting actuary.

      6.  If a claimant would receive more money by electing to receive compensation in a lump sum than he would if he receives installment payments, he may elect to receive the lump-sum payment.

      Sec. 15.  NRS 616C.505 is hereby amended to read as follows:

      616C.505  If an injury by accident arising out of and in the course of employment causes the death of an employee in the employ of an employer, within the provisions of chapters 616A to 616D, inclusive, of NRS, the compensation is known as a death benefit, and is payable as follows:

      1.  In addition to any other compensation payable pursuant to chapters 616A to 616D, inclusive, of NRS, burial expenses are payable in an amount not to exceed $5,000. When the remains of the deceased employee and the person accompanying the remains are to be transported to a mortuary or mortuaries, the charge of transportation must be borne by the insurer.

      2.  [To] Except as otherwise provided in subsection 3, to the surviving spouse of the deceased employee, 66 2/3 percent of the average monthly wage is payable until his death or remarriage, with 2 years’ compensation payable in one lump sum upon remarriage.

      3.  If there is a surviving spouse and any surviving children of the deceased employee who are not the children of the surviving spouse, the compensation otherwise payable pursuant to subsection 2 must be paid as follows until the entitlement of all children of the deceased employee to receive compensation pursuant to this subsection ceases:

      (a) To the surviving spouse, 50 percent of the death benefit is payable until his death or remarriage, with 2 years’ compensation payable in one lump sum upon remarriage; and

      (b) To each child of the deceased employee, regardless of whether the child is the child of the surviving spouse, his proportionate share of 50 percent of the death benefit and, except as otherwise provided in subsection 12, if the child has a guardian, the compensation he is entitled to receive may be paid to the guardian.

 


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

ê2007 Statutes of Nevada, Page 3359 (Chapter 537, AB 496)ê

 

percent of the death benefit and, except as otherwise provided in subsection 12, if the child has a guardian, the compensation he is entitled to receive may be paid to the guardian.

      4.  In the event of the subsequent death of the surviving spouse:

      (a) Each surviving child of the deceased employee , in addition to any amount the child may be entitled to pursuant to subsection 3, must share equally the compensation theretofore paid to the surviving spouse but not in excess thereof, and it is payable until the youngest child reaches the age of 18 years.

      (b) Except as otherwise provided in subsection [11,] 12, if the children have a guardian, the compensation they are entitled to receive may be paid to the guardian.

      [4.] 5.  Upon the remarriage of a surviving spouse with children:

      (a) The surviving spouse must be paid 2 years’ compensation in one lump sum and further benefits must cease; and

      (b) Each child must be paid 15 percent of the average monthly wage, up to a maximum family benefit of 66 2/3 percent of the average monthly wage.

      [5.] 6.  If there are any surviving children of the deceased employee under the age of 18 years, but no surviving spouse, then each such child is entitled to his proportionate share of 66 2/3 percent of the average monthly wage for his support.

      [6.] 7.  Except as otherwise provided in subsection [7,] 8, if there is no surviving spouse or child under the age of 18 years, there must be paid:

      (a) To a parent, if wholly dependent for support upon the deceased employee at the time of the injury causing his death, 33 1/3 percent of the average monthly wage.

      (b) To both parents, if wholly dependent for support upon the deceased employee at the time of the injury causing his death, 66 2/3 percent of the average monthly wage.

      (c) To each brother or sister until he or she reaches the age of 18 years, if wholly dependent for support upon the deceased employee at the time of the injury causing his death, his proportionate share of 66 2/3 percent of the average monthly wage.

      [7.] 8.  The aggregate compensation payable pursuant to subsection [6] 7 must not exceed 66 2/3 percent of the average monthly wage.

      [8.] 9.  In all other cases involving a question of total or partial dependency:

      (a) The extent of the dependency must be determined in accordance with the facts existing at the time of the injury.

      (b) If the deceased employee leaves dependents only partially dependent upon his earnings for support at the time of the injury causing his death, the monthly compensation to be paid must be equal to the same proportion of the monthly payments for the benefit of persons totally dependent as the amount contributed by the deceased employee to the partial dependents bears to the average monthly wage of the deceased employee at the time of the injury resulting in his death.

      (c) The duration of compensation to partial dependents must be fixed in accordance with the facts shown, but may not exceed compensation for 100 months.

      [9.] 10.  Compensation payable to a surviving spouse is for the use and benefit of the surviving spouse and the dependent children, and the insurer may, from time to time, apportion such compensation between them in such a way as it deems best for the interest of all dependents.

 


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

ê2007 Statutes of Nevada, Page 3360 (Chapter 537, AB 496)ê

 

may, from time to time, apportion such compensation between them in such a way as it deems best for the interest of all dependents.

      [10.] 11.  In the event of the death of any dependent specified in this section before the expiration of the time during which compensation is payable to him, funeral expenses are payable in an amount not to exceed $5,000.

      [11.] 12.  If a dependent is entitled to receive a death benefit pursuant to this section and is less than 18 years of age or incompetent, the legal representative of the dependent shall petition for a guardian to be appointed for that dependent pursuant to NRS 159.044. An insurer shall not pay any compensation in excess of $3,000, other than burial expenses, to the dependent until a guardian is appointed and legally qualified. Upon receipt of a certified letter of guardianship, the insurer shall make all payments required by this section to the guardian of the dependent until the dependent is emancipated, the guardianship terminates or the dependent reaches the age of 18 years, whichever occurs first, unless paragraph (a) of subsection [12] 13 is applicable. The fees and costs related to the guardianship must be paid from the estate of the dependent. A guardianship established pursuant to this subsection must be administered in accordance with chapter 159 of NRS, except that after the first annual review required pursuant to NRS 159.176, a court may elect not to review the guardianship annually. The court shall review the guardianship at least once every 3 years. As used in this subsection, “incompetent” has the meaning ascribed to it in NRS 159.019.

      [12.] 13.  Except as otherwise provided in paragraphs (a) and (b), the entitlement of any child to receive his proportionate share of compensation pursuant to this section ceases when he dies, marries or reaches the age of 18 years. A child is entitled to continue to receive compensation pursuant to this section if he is:

      (a) Over 18 years of age and incapable of supporting himself, until such time as he becomes capable of supporting himself; or

      (b) Over 18 years of age and enrolled as a full-time student in an accredited vocational or educational institution, until he reaches the age of 22 years.

      [13.] 14.  As used in this section, “surviving spouse” means a surviving husband or wife who was married to the employee at the time of the employee’s death.

      Sec. 16.  NRS 616C.560 is hereby amended to read as follows:

      616C.560  1.  A program for vocational rehabilitation developed pursuant to subsection 3 of NRS 616C.555 may be extended:

      (a) Without condition or limitation, by the insurer at his sole discretion; or

      (b) In accordance with this section if:

             (1) The injured employee makes a written request to extend the program [within] not later than 30 days after [he receives written notification that he is eligible] the program for vocational rehabilitation services [;] has been completed; and

             (2) There are exceptional circumstances which make it unlikely that the injured employee will obtain suitable gainful employment as a result of vocational rehabilitation which is limited to the period for which he is eligible.

Ê An insurer’s determination to grant or deny an extension pursuant to paragraph (a) may not be appealed.

 


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

ê2007 Statutes of Nevada, Page 3361 (Chapter 537, AB 496)ê

 

      2.  If an injured employee has incurred a permanent physical impairment of less than 11 percent:

      (a) The total length of the program, including any extension, must not exceed 2 years.

      (b) “Exceptional circumstances” shall be deemed to exist for the purposes of paragraph (b) of subsection 1, if:

             (1) The injured employee lacks work experience, training, education or other transferable skills for an occupation which he is physically capable of performing; or

             (2) Severe physical restrictions as a result of the industrial injury have been imposed by a physician which significantly limit the employee’s occupational opportunities.

      3.  If an injured employee has incurred a permanent physical impairment of 11 percent or more:

      (a) The total length of the program, including any extension, must not exceed 2 1/2 years.

      (b) “Exceptional circumstances” shall be deemed to exist for the purposes of paragraph (b) of subsection 1, if the injured employee has suffered:

             (1) The total and permanent loss of sight of both eyes;

             (2) The loss by separation of a leg at or above the knee;

             (3) The loss by separation of a hand at or above the wrist;

             (4) An injury to the head or spine which results in permanent and complete paralysis of both legs, both arms or a leg and an arm;

             (5) An injury to the head which results in a severe cognitive functional impairment which may be established by a nationally recognized form of objective psychological testing;

             (6) The loss by separation of an arm at or above the elbow and the loss by separation of a leg at or above the knee;

             (7) An injury consisting of second or third degree burns on 50 percent or more of the body, both hands or the face;

             (8) A total bilateral loss of hearing;

             (9) The total loss or significant and permanent impairment of speech; or

             (10) A permanent physical impairment of 50 percent or more determined pursuant to NRS 616C.490, if the severity of the impairment limits the injured employee’s gainful employment to vocations that are primarily intellectual and require a longer program of education.

      4.  The insurer shall deliver a copy of its decision granting or denying an extension to the injured employee and the employer. Except as otherwise provided in this section, the decision shall be deemed to be a final determination of the insurer for the purposes of NRS 616C.315.

      Sec. 17.  NRS 616C.580 is hereby amended to read as follows:

      616C.580  1.  Except as otherwise provided in this section, vocational rehabilitation services must not be provided outside of this State.

      2.  An injured employee who:

      (a) Resides outside of this State, within 50 miles from any border of this State, on the date of injury; or

      (b) Was injured while temporarily employed in this State by an employer subject to the provisions of chapters 616A to 617, inclusive, of NRS who can demonstrate that, on the date of injury, his permanent residence was outside of this State,

 


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

ê2007 Statutes of Nevada, Page 3362 (Chapter 537, AB 496)ê

 

Ê may receive vocational rehabilitation services at a location within 50 miles from his residence if such services are available at such a location.

      3.  An injured employee who:

      (a) Is eligible for vocational rehabilitation services pursuant to NRS 616C.590; and

      (b) Resides outside of this State but does not qualify to receive vocational rehabilitation services outside of this State pursuant to subsection 2,

Ê may execute a written agreement with the insurer which provides for the payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services pursuant to NRS 616C.595. The amount of the lump sum must not exceed $20,000.

      4.  An injured employee who resides outside of this State but does not qualify to receive vocational rehabilitation services outside of this State pursuant to subsection 2 may receive the vocational rehabilitation services to which he is entitled pursuant to NRS 616C.545 to 616C.575, inclusive, and 616C.590 if he relocates to:

      (a) This State; or

      (b) A location within 50 miles from any border of this State,

Ê at his own expense, if such services are available at such a location.

      5.  An injured employee who resides in this State may receive vocational rehabilitation services outside of this State at a location within 50 miles from his residence if such services are available at such a location. An insurer may not unreasonably deny a request made by an injured employee pursuant to this subsection to receive vocational rehabilitation services outside of this State.

      6.  An injured employee may receive vocational rehabilitation services in any state that borders this State if the injured employee demonstrates that the services are available in a more cost effective manner than are available in this State. Any vocational rehabilitation services provided pursuant to this subsection must be monitored by a vocational rehabilitation counselor in this State.

      Sec. 18.  NRS 616C.595 is hereby amended to read as follows:

      616C.595  1.  If an injured employee is eligible for vocational rehabilitation services pursuant to NRS 616C.590, the insurer and the injured employee may, at any time during the employee’s eligibility for such services, execute a written agreement providing for the payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services. An insurer’s refusal to execute such an agreement may not be appealed.

      2.  If the insurer and the injured employee execute an agreement pursuant to subsection 1, the acceptance of the payment of compensation in a lump sum by the injured employee extinguishes his right to receive vocational rehabilitation services under his claim. Except as otherwise required by federal law, an injured employee shall not receive vocational rehabilitation services from any state agency after he accepts payment of compensation in a lump sum pursuant to this section.

      3.  Before executing an agreement pursuant to subsection 1, an insurer shall:

      (a) Order an assessment of and counseling concerning the vocational skills of the injured employee, unless the provisions of subsection 3 of NRS 616C.580 are applicable;

      (b) Consult with the employer of the injured employee; and

 


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

ê2007 Statutes of Nevada, Page 3363 (Chapter 537, AB 496)ê

 

      (c) Provide a written notice to the injured employee that contains the following statements:

             (1) That the injured employee is urged to seek assistance and advice from the Nevada Attorney for Injured Workers or to consult with a private attorney before signing the agreement.

             (2) That the injured employee may rescind the agreement within 20 days after he signs it.

             (3) That the 20-day period pursuant to subparagraph (2) may not be waived.

             (4) That acceptance by the injured employee of payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services extinguishes his right to receive such services.

      4.  Except as otherwise provided in NRS 616C.580, any payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services must not be less than 40 percent of the maximum amount of vocational rehabilitation maintenance due to the injured employee pursuant to NRS 616C.555.

      5.  No payment of compensation in a lump sum may be made pursuant to this section until the 20-day period provided for the rescission of the agreement has expired.

      Sec. 19.  NRS 616D.120 is hereby amended to read as follows:

      616D.120  1.  Except as otherwise provided in this section, if the Administrator determines that an insurer, organization for managed care, health care provider, third-party administrator or employer has:

      (a) Induced a claimant to fail to report an accidental injury or occupational disease;

      (b) Without justification, persuaded a claimant to:

             (1) Settle for an amount which is less than reasonable;

             (2) Settle for an amount which is less than reasonable while a hearing or an appeal is pending; or

             (3) Accept less than the compensation found to be due him by a hearing officer, appeals officer, court of competent jurisdiction, written settlement agreement, written stipulation or the Division when carrying out its duties pursuant to chapters 616A to 617, inclusive, of NRS;

      (c) Refused to pay or unreasonably delayed payment to a claimant of compensation or other relief found to be due him by a hearing officer, appeals officer, court of competent jurisdiction, written settlement agreement, written stipulation or the Division when carrying out its duties pursuant to chapters 616A to 616D, inclusive, 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 the 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 the Division has been lifted;

      (d) Refused to process a claim for compensation pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS;

      (e) Made it necessary for a claimant to initiate proceedings pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS for compensation or other relief found to be due him by a hearing officer, appeals officer, court of competent jurisdiction, written settlement agreement, written stipulation or the Division when carrying out its duties pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS;

 


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

ê2007 Statutes of Nevada, Page 3364 (Chapter 537, AB 496)ê

 

of competent jurisdiction, written settlement agreement, written stipulation or the Division when carrying out its duties pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS;

      (f) Failed to comply with the Division’s regulations covering the payment of an assessment relating to the funding of costs of administration of chapters 616A to 617, inclusive, of NRS;

      (g) Failed to provide or unreasonably delayed payment to an injured employee or reimbursement to an insurer pursuant to NRS 616C.165; or

      (h) Intentionally failed to comply with any provision of, or regulation adopted pursuant to, this chapter or chapter 616A, 616B, 616C or 617 of NRS,

Ê the Administrator shall impose an administrative fine of $1,500 for each initial violation, or a fine of $15,000 for a second or subsequent violation.

      2.  Except as otherwise provided in chapters 616A to 616D, inclusive, 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 616A, 616B, 616C or 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 616A, 616B, 616C or 617 of NRS, or any regulation adopted pursuant thereto.

Ê The notice of correction must set forth with particularity the violation committed and the manner in which the violation may be corrected. The provisions of this section do not authorize 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:

             (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 616A, 616B, 616C or 617 of NRS, or any regulation adopted pursuant thereto, for which a notice of correction may not be issued pursuant to paragraph (a).

Ê The fine imposed must not be greater than $375 for an initial violation, or more than $1,500 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 (e), inclusive, or (h) 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 :

      (a) Except as otherwise provided in paragraph (b), in an amount that is not less than $5,000 and not greater than $37,500 [.] ; or

 


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

ê2007 Statutes of Nevada, Page 3365 (Chapter 537, AB 496)ê

 

      (b) Of $3,000 if the violation involves a late payment of compensation or other relief to a claimant in an amount which is less than $500 or which is not more than 14 days late.

      4.  To determine the amount of the benefit penalty, the Administrator shall consider the degree of physical harm suffered by the injured employee or his dependents as a result of the violation of paragraph (a), (b), (c), (d), (e) or (h) of subsection 1, the amount of compensation found to be due the claimant and the number of fines and benefit penalties , other than a benefit penalty described in paragraph (b) of subsection 3, previously imposed against the insurer, organization for managed care, health care provider, third-party administrator or employer pursuant to this section. If this is the third violation within 5 years for which a benefit penalty , other than a benefit penalty described in paragraph (b) of subsection 3, has been imposed against the insurer, organization for managed care, health care provider, third-party administrator or employer, the Administrator shall also consider the degree of economic harm suffered by the injured employee or his dependents as a result of the violation of paragraph (a), (b), (c), (d), (e) or (h) of subsection 1. Except as otherwise provided in this section, 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. If the claimant is the injured employee and he dies before the benefit penalty is paid to him, the benefit penalty must be paid to his estate. 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 616D.140. Any compensation to which the claimant may otherwise be entitled pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS must not be reduced by the amount of any benefit penalty received pursuant to this subsection.

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

      [5.] 6.  If:

      (a) The Administrator determines that a person has violated any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310 or 616D.350 to 616D.440, inclusive; and

      (b) The Fraud Control Unit for Industrial Insurance of the Office of the Attorney General established pursuant to NRS 228.420 notifies the Administrator that the Unit will not prosecute the person for that violation,

Ê the Administrator shall impose an administrative fine of not more than $15,000.

      [6.] 7.  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) 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.] 8.  The Commissioner may, without complying with the provisions of NRS 616B.327 or 616B.431, withdraw the certification of a self-insured employer, association of self-insured public or private employers or third-party administrator if, after a hearing, it is shown that the self-insured employer, association of self-insured public or private employers or third-party administrator violated any provision of subsection 1.

 


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

ê2007 Statutes of Nevada, Page 3366 (Chapter 537, AB 496)ê

 

third-party administrator if, after a hearing, it is shown that the self-insured employer, association of self-insured public or private employers or third-party administrator violated any provision of subsection 1.

      9.  If the Administrator determines that a vocational rehabilitation counselor has violated the provisions of section 1.3 of this act, the Administrator may impose an administrative fine on the vocational rehabilitation counselor of not more than $250 for a first violation, $500 for a second violation and $1,000 for a third or subsequent violation.

      Sec. 20.  NRS 617.356 is hereby amended to read as follows:

      617.356  1.  An insurer shall accept or deny [responsibility] a claim for compensation under this chapter and notify the claimant or the person acting on behalf of the claimant pursuant to NRS 617.344 that the claim has been accepted or denied within 30 working days after [claims] the forms for filing the claim for compensation are received pursuant to both NRS 617.344 and 617.352.

      2.  The insurer shall notify the claimant or the person acting on behalf of the claimant that a claim has been accepted or denied pursuant to subsection 1 by:

      (a) Mailing its written determination to the claimant or the person acting on behalf of the claimant; and

      (b) If the claim has been denied, in whole or in part, obtaining a certificate of mailing.

      3.  The failure of the insurer to obtain a certificate of mailing as required by paragraph (b) of subsection 2 shall be deemed to be a failure of the insurer to mail the written determination of the denial of a claim as required by this section.

      4.  Upon request, the insurer shall provide a copy of the certificate of mailing, if any, to the claimant or the person acting on behalf of the claimant.

      5.  For the purposes of this section, the insurer shall mail the written determination to:

      (a) The mailing address of the claimant or the person acting on behalf of the claimant that is provided on the form prescribed by the Administrator for filing the claim; or

      (b) Another mailing address if the claimant or the person acting on behalf of the claimant provides to the insurer written notice of another mailing address.

      6.  As used in this section, “certificate of mailing” means a receipt that provides evidence of the date on which the insurer presented its written determination to the United States Postal Service for mailing.

      Sec. 21.  NRS 617.440 is hereby amended to read as follows:

      617.440  1.  An occupational disease defined in this chapter shall be deemed to arise out of and in the course of the employment if:

      (a) There is a direct causal connection between the conditions under which the work is performed and the occupational disease;

      (b) It can be seen to have followed as a natural incident of the work as a result of the exposure occasioned by the nature of the employment;

      (c) It can be fairly traced to the employment as the proximate cause; and

      (d) It does not come from a hazard to which workmen would have been equally exposed outside of the employment.

      2.  The disease must be incidental to the character of the business and not independent of the relation of the employer and employee.

 


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

ê2007 Statutes of Nevada, Page 3367 (Chapter 537, AB 496)ê

 

      3.  The disease need not have been foreseen or expected, but after its contraction must appear to have had its origin in a risk connected with the employment, and to have flowed from that source as a natural consequence.

      4.  In cases of disability resulting from radium poisoning or exposure to radioactive properties or substances, or to roentgen rays (X rays) or ionizing radiation, the poisoning or illness resulting in disability must have been contracted in the State of Nevada.

      5.  The requirements set forth in this section do not apply to claims filed pursuant to NRS 617.453, 617.455, 617.457, 617.485 or 617.487.

      Sec. 22.  With respect to the regulations required to be adopted pursuant to NRS 616C.295, as amended by section 6 of this act, the Chief of the Hearings Division of the Department of Administration shall:

      1.  Hold the first workshop concerning the regulations on or before December 31, 2007; and

      2.  Adopt the regulations on or before June 30, 2008.

      Sec. 23.  This act becomes effective on July 1, 2007.

________

 

CHAPTER 538, SB 425

Senate Bill No. 425–Senators Titus, Wiener, Horsford, Care, Coffin, Lee, Schneider and Woodhouse

 

CHAPTER 538

 

AN ACT relating to campaign practices; requiring a person administering a legal defense fund to report the creation of, contributions received by and expenditures from the fund; prohibiting contributions over a certain amount to a legal defense fund; providing that a “political purpose” includes a legal defense fund for purposes of the provisions prohibiting the solicitation or acceptance of monetary contributions by certain persons during a specified period; providing a penalty; and providing other matters properly relating thereto.

 

[Approved: June 15, 2007]

 

Legislative Counsel’s Digest:

      Section 1.7 of this bill requires a person administering a legal defense fund, which is defined in section 1.5 of this bill, to report the creation of the fund and any contributions received by and expenditures made from the fund. Section 1.8 of this bill limits contributions to a legal defense fund by a person to $10,000 during a specified period.

      Existing law prohibits a member of the Legislature, the Lieutenant Governor, the Lieutenant Governor-Elect, the Governor or the Governor-Elect from soliciting or accepting monetary contributions for any political purpose during a certain period before and after a legislative session. (NRS 294A.300) Section 2 of this bill provides that a “political purpose” includes a legal defense fund.

 


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

ê2007 Statutes of Nevada, Page 3368 (Chapter 538, SB 425)ê

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  (Deleted by amendment.)

      Sec. 1.1.  NRS 293.4687 is hereby amended to read as follows:

      293.4687  1.  The Secretary of State shall maintain a website on the Internet for public information maintained, collected or compiled by the Secretary of State that relates to elections, which must include, without limitation:

      (a) The Voters’ Bill of Rights required to be posted on his Internet website pursuant to the provisions of NRS 293.2549;

      (b) The abstract of votes required to be posted on a website pursuant to the provisions of NRS 293.388; and

      (c) All reports on campaign contributions and expenditures submitted to the Secretary of State pursuant to the provisions of NRS 294A.120, 294A.125, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280, 294A.360 and 294A.362 [.] and all reports on contributions received by and expenditures made from a legal defense fund submitted to the Secretary of State pursuant to section 1.7 of this act.

      2.  The abstract of votes required to be maintained on the website pursuant to paragraph (b) of subsection 1 must be maintained in such a format as to permit the searching of the abstract of votes for specific information.

      3.  If the information required to be maintained by the Secretary of State pursuant to subsection 1 may be obtained by the public from a website on the Internet maintained by a county clerk or city clerk, the Secretary of State may provide a hyperlink to that website to comply with the provisions of subsection 1 with regard to that information.

      Sec. 1.3.  Chapter 294A of NRS is hereby amended by adding thereto the provisions set forth as sections 1.5, 1.7 and 1.8 of this act.

      Sec. 1.5.  “Legal defense fund” means an account established to defray attorney’s fees or other legal costs incurred by a candidate or public officer if such a candidate or public officer becomes subject to any civil, criminal or administrative claim or proceeding arising from a campaign, the electoral process or the performance of his official duties.

      Sec. 1.7.  1.  A person who administers a legal defense fund shall:

      (a) Within 5 days after the creation of the legal defense fund, notify the Secretary of State of the creation of the fund on a form provided by the Secretary of State; and

      (b) For the same period covered by the report filed pursuant to NRS 294A.120, 294A.200 or 294A.360, report any contribution received by or expenditure made from the legal defense fund.

      2.  The reports required by paragraph (b) of subsection 1 must be submitted on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. Each form must be signed by the administrator of the legal defense fund under penalty of perjury.

      3.  The reports required by paragraph (b) of subsection 1 must be filed in the same manner and at the same time as the report filed pursuant to NRS 294A.120, 294A.200 or 294A.360.

      Sec. 1.8.  1.  A person shall not make a contribution or contributions to the legal defense fund of a candidate or public officer in an amount which exceeds $10,000 during the applicable period prescribed in NRS 294A.100 pertaining to the office the candidate is seeking or that the public officer holds.

 


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

ê2007 Statutes of Nevada, Page 3369 (Chapter 538, SB 425)ê

 

which exceeds $10,000 during the applicable period prescribed in NRS 294A.100 pertaining to the office the candidate is seeking or that the public officer holds.

      2.  A candidate or public officer shall not accept a contribution to his legal defense fund that is made in violation of subsection 1.

      3.  A person who willfully violates any provision of this section is guilty of a category E felony and shall be punished as provided in NRS 193.130.

      Sec. 1.9.  NRS 294A.002 is hereby amended to read as follows:

      294A.002  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 294A.004 to 294A.009, inclusive, and section 1.5 of this act have the meanings ascribed to them in those sections.

      Sec. 2.  NRS 294A.300 is hereby amended to read as follows:

      294A.300  1.  It is unlawful for a member of the Legislature, the Lieutenant Governor, the Lieutenant Governor-Elect, the Governor or the Governor-Elect to solicit or accept any monetary contribution, or solicit or accept a commitment to make such a contribution for any political purpose during the period beginning:

      (a) Thirty days before a regular session of the Legislature and ending 30 days after the final adjournment of a regular session of the Legislature;

      (b) Fifteen days before a special session of the Legislature is set to commence and ending 15 days after the final adjournment of a special session of the Legislature, if the Governor sets a specific date for the commencement of the special session that is more than 15 days after the Governor issues the proclamation calling for the special session; or

      (c) The day after the Governor issues a proclamation calling for a special session of the Legislature and ending 15 days after the final adjournment of a special session of the Legislature if the Governor sets a specific date for the commencement of the special session that is 15 or fewer days after the Governor issues the proclamation calling for the special session.

      2.  This section does not prohibit the payment of a salary or other compensation or income to a member of the Legislature, the Lieutenant Governor or the Governor during a session of the Legislature if it is made for services provided as a part of his regular employment or is additional income to which he is entitled.

      3.  As used in this section, “political purpose” includes, without limitation, the establishment of, or the addition of money to, a legal defense fund.

      Sec. 2.3.  NRS 294A.350 is hereby amended to read as follows:

      294A.350  1.  Every candidate for state, district, county, municipal or township office shall file the reports of campaign contributions and expenses required by NRS 294A.120, 294A.128, 294A.200 and 294A.360 [,] and reports of contributions received by and expenditures made from a legal defense fund required by section 1.7 of this act, even though he:

      (a) Withdraws his candidacy;

      (b) Receives no campaign contributions;

      (c) Has no campaign expenses;

      (d) Is removed from the ballot by court order; or

      (e) Is the subject of a petition to recall and the special election is not held.

 


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

ê2007 Statutes of Nevada, Page 3370 (Chapter 538, SB 425)ê

 

      2.  A candidate who withdraws his candidacy pursuant to NRS 293.202 may file simultaneously all the reports of campaign contributions and expenses required by NRS 294A.120, 294A.128, 294A.200 and 294A.360 [,] and the report of contributions received by and expenditures made from a legal defense fund required by section 1.7 of this act, so long as each report is filed on or before the last day for filing the respective report pursuant to NRS 294A.120, 294A.200 or 294A.360.

      Sec. 2.5.  NRS 294A.373 is hereby amended to read as follows:

      294A.373  1.  The Secretary of State shall design a single form to be used for all reports of campaign contributions and expenses or expenditures that are required to be filed pursuant to NRS 294A.120, 294A.125, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280, 294A.360 and 294A.362 [.] and reports of contributions received by and expenditures made from a legal defense fund that are required to be filed pursuant to section 1.7 of this act.

      2.  The form designed by the Secretary of State pursuant to this section must only request information specifically required by statute.

      3.  Upon request, the Secretary of State shall provide a copy of the form designed pursuant to this section to each person, committee, political party and group that is required to file a report described in subsection 1.

      4.  The Secretary of State must obtain the advice and consent of the Legislative Commission before providing a copy of a form designed or revised by the Secretary of State pursuant to this section to a person, committee, political party or group that is required to use the form.

      Sec. 2.7.  NRS 294A.390 is hereby amended to read as follows:

      294A.390  The officer from whom a candidate or entity requests a form for:

      1.  A declaration of candidacy;

      2.  An acceptance of candidacy;

      3.  The registration of a committee for political action pursuant to NRS 294A.230 or a committee for the recall of a public officer pursuant to NRS 294A.250; [or]

      4.  The reporting of the creation of a legal defense fund pursuant to section 1.7 of this act; or

      5.  The reporting of campaign contributions, expenses or expenditures pursuant to NRS 294A.120, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280 or 294A.360 [,] and the reporting of contributions received by and expenditures made from a legal defense fund pursuant to section 1.7 of this act,

Ê shall furnish the candidate with the necessary forms for reporting and copies of the regulations adopted by the Secretary of State pursuant to this chapter. An explanation of the applicable provisions of NRS 294A.100, 294A.120, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280 or 294A.360 relating to the making, accepting or reporting of campaign contributions, expenses or expenditures and the penalties for a violation of those provisions as set forth in NRS 294A.100 or 294A.420 , and an explanation of sections 1.7 and 1.8 of this act relating to the accepting or reporting of contributions received by and expenditures made from a legal defense fund and the penalties for a violation of those provisions as set forth in section 1.8 of this act and NRS 294A.420, must be developed by the Secretary of State and provided upon request. The candidate or entity shall acknowledge receipt of the material.

 


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

ê2007 Statutes of Nevada, Page 3371 (Chapter 538, SB 425)ê

 

      Sec. 3.  (Deleted by amendment.)

      Sec. 3.3.  NRS 294A.400 is hereby amended to read as follows:

      294A.400  The Secretary of State shall, within 30 days after receipt of the reports required by NRS 294A.120, 294A.125, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270 and 294A.280 [,] and section 1.7 of this act, prepare and make available for public inspection a compilation of:

      1.  The total campaign contributions, the contributions which are in excess of $100 and the total campaign expenses of each of the candidates from whom reports of those contributions and expenses are required.

      2.  The total amount of loans to a candidate guaranteed by a third party, the total amount of loans made to a candidate that have been forgiven and the total amount of written commitments for contributions received by a candidate.

      3.  The contributions made to a committee for the recall of a public officer in excess of $100.

      4.  The expenditures exceeding $100 made by a:

      (a) Person on behalf of a candidate other than himself.

      (b) Person or group of persons on behalf of or against a question or group of questions on the ballot.

      (c) Group of persons advocating the election or defeat of a candidate.

      (d) Committee for the recall of a public officer.

      5.  The contributions in excess of $100 made to:

      (a) A person who is not under the direction or control of a candidate or group of candidates or of any person involved in the campaign of the candidate or group who makes an expenditure on behalf of the candidate or group which is not solicited or approved by the candidate or group.

      (b) A person or group of persons organized formally or informally who advocates the passage or defeat of a question or group of questions on the ballot.

      (c) A committee for political action, political party or committee sponsored by a political party which makes an expenditure on behalf of a candidate or group of candidates.

      6.  The total contributions received by and expenditures made from a legal defense fund.

      Sec. 3.6.  NRS 294A.420 is hereby amended to read as follows:

      294A.420  1.  If the Secretary of State receives information that a person or entity that is subject to the provisions of NRS 294A.120, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.230, 294A.270, 294A.280 or 294A.360 or section 1.7 of this act has not filed a report or form for registration pursuant to the applicable provisions of those sections, the Secretary of State may, after giving notice to that person or entity, cause the appropriate proceedings to be instituted in the First Judicial District Court.

      2.  Except as otherwise provided in this section, a person or entity that violates an applicable provision of NRS 294A.112, 294A.120, 294A.128, 294A.130, 294A.140, 294A.150, 294A.160, 294A.200, 294A.210, 294A.220, 294A.230, 294A.270, 294A.280, 294A.300, 294A.310, 294A.320 or 294A.360 or section 1.7 of this act is subject to a civil penalty of not more than $5,000 for each violation and payment of court costs and attorney’s fees. The civil penalty must be recovered in a civil action brought in the name of the State of Nevada by the Secretary of State in the First Judicial District Court and deposited by the Secretary of State for credit to the State General Fund in the bank designated by the State Treasurer.

 


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

ê2007 Statutes of Nevada, Page 3372 (Chapter 538, SB 425)ê

 

District Court and deposited by the Secretary of State for credit to the State General Fund in the bank designated by the State Treasurer.

      3.  If a civil penalty is imposed because a person or entity has reported its contributions, expenses or expenditures after the date the report is due, except as otherwise provided in this subsection, the amount of the civil penalty is:

      (a) If the report is not more than 7 days late, $25 for each day the report is late.

      (b) If the report is more than 7 days late but not more than 15 days late, $50 for each day the report is late.

      (c) If the report is more than 15 days late, $100 for each day the report is late.

Ê A civil penalty imposed pursuant to this subsection against a public officer who by law is not entitled to receive compensation for his office or a candidate for such an office must not exceed a total of $100 if the public officer or candidate received no contributions and made no expenditures during the relevant reporting periods.

      4.  For good cause shown, the Secretary of State may waive a civil penalty that would otherwise be imposed pursuant to this section. If the Secretary of State waives a civil penalty pursuant to this subsection, the Secretary of State shall:

      (a) Create a record which sets forth that the civil penalty has been waived and describes the circumstances that constitute the good cause shown; and

      (b) Ensure that the record created pursuant to paragraph (a) is available for review by the general public.

      Sec. 3.8.  NRS 281.501 is hereby amended to read as follows:

      281.501  1.  Except as otherwise provided in subsection 2, 3 or 4, a public officer may vote upon a matter if the benefit or detriment accruing to him as a result of the decision either individually or in a representative capacity as a member of a general business, profession, occupation or group is not greater than that accruing to any other member of the general business, profession, occupation or group.

      2.  Except as otherwise provided in subsection 3, in addition to the requirements of the code of ethical standards, a public officer shall not vote upon or advocate the passage or failure of, but may otherwise participate in the consideration of, a matter with respect to which the independence of judgment of a reasonable person in his situation would be materially affected by:

      (a) His acceptance of a gift or loan;

      (b) His pecuniary interest; or

      (c) His commitment in a private capacity to the interests of others.

Ê It must be presumed that the independence of judgment of a reasonable person would not be materially affected by his pecuniary interest or his commitment in a private capacity to the interests of others where the resulting benefit or detriment accruing to him or to the other persons whose interests to which the member is committed in a private capacity is not greater than that accruing to any other member of the general business, profession, occupation or group. The presumption set forth in this subsection does not affect the applicability of the requirements set forth in subsection 4 relating to the disclosure of the pecuniary interest or commitment in a private capacity to the interests of others.

 


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

ê2007 Statutes of Nevada, Page 3373 (Chapter 538, SB 425)ê

 

      3.  In a county whose population is 400,000 or more, a member of a county or city planning commission shall not vote upon or advocate the passage or failure of, but may otherwise participate in the consideration of, a matter with respect to which the independence of judgment of a reasonable person in his situation would be materially affected by:

      (a) His acceptance of a gift or loan;

      (b) His direct pecuniary interest; or

      (c) His commitment to a member of his household or a person who is related to him by blood, adoption or marriage within the third degree of consanguinity or affinity.

Ê It must be presumed that the independence of judgment of a reasonable person would not be materially affected by his direct pecuniary interest or his commitment described in paragraph (c) where the resulting benefit or detriment accruing to him or to the other persons whose interests to which the member is committed is not greater than that accruing to any other member of the general business, profession, occupation or group. The presumption set forth in this subsection does not affect the applicability of the requirements set forth in subsection 4 relating to the disclosure of the direct pecuniary interest or commitment.

      4.  A public officer or employee shall not approve, disapprove, vote, abstain from voting or otherwise act upon any matter:

      (a) Regarding which he has accepted a gift or loan;

      (b) Which would reasonably be affected by his commitment in a private capacity to the interest of others; or

      (c) In which he has a pecuniary interest,

Ê without disclosing sufficient information concerning the gift, loan, commitment or interest to inform the public of the potential effect of the action or abstention upon the person who provided the gift or loan, upon the person to whom he has a commitment, or upon his interest. Except as otherwise provided in subsection 6, such a disclosure must be made at the time the matter is considered. If the officer or employee is a member of a body which makes decisions, he shall make the disclosure in public to the Chairman and other members of the body. If the officer or employee is not a member of such a body and holds an appointive office, he shall make the disclosure to the supervisory head of his organization or, if he holds an elective office, to the general public in the area from which he is elected. This subsection does not require a public officer to disclose any campaign contributions that the public officer reported pursuant to NRS 294A.120 or 294A.125 or any contributions to a legal defense fund that the public officer reported pursuant to section 1.7 of this act in a timely manner.

      5.  Except as otherwise provided in NRS 241.0355, if a public officer declares to the body or committee in which the vote is to be taken that he will abstain from voting because of the requirements of this section, the necessary quorum to act upon and the number of votes necessary to act upon the matter, as fixed by any statute, ordinance or rule, is reduced as though the member abstaining were not a member of the body or committee.

      6.  After a member of the Legislature makes a disclosure pursuant to subsection 4, he may file with the Director of the Legislative Counsel Bureau a written statement of his disclosure. The written statement must designate the matter to which the disclosure applies. After a Legislator files a written statement pursuant to this subsection, he is not required to disclose orally his interest when the matter is further considered by the Legislature or any committee thereof.

 


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

ê2007 Statutes of Nevada, Page 3374 (Chapter 538, SB 425)ê

 

committee thereof. A written statement of disclosure is a public record and must be made available for inspection by the public during the regular office hours of the Legislative Counsel Bureau.

      7.  The provisions of this section do not, under any circumstances:

      (a) Prohibit a member of the Legislative Branch from requesting or introducing a legislative measure; or

      (b) Require a member of the Legislative Branch to take any particular action before or while requesting or introducing a legislative measure.

      8.  As used in this section, “commitment in a private capacity to the interests of others” means a commitment to a person:

      (a) Who is a member of his household;

      (b) Who is related to him by blood, adoption or marriage within the third degree of consanguinity or affinity;

      (c) Who employs him or a member of his household;

      (d) With whom he has a substantial and continuing business relationship; or

      (e) Any other commitment or relationship that is substantially similar to a commitment or relationship described in this subsection.

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

________

 

CHAPTER 539, AB 621

Assembly Bill No. 621–Committee on Commerce and Labor

 

CHAPTER 539

 

AN ACT relating to energy; making various changes relating to the application procedures for and the provision of tax abatements and exemptions based upon the use of energy; repealing certain prospective energy requirements for public buildings; and providing other matters properly relating thereto.

 

[Approved: June 15, 2007]

 

Legislative Counsel’s Digest:

      Sections 2 and 3 of this bill require the Director of the Office of Energy to adopt a system for rating buildings based upon the Leadership in Energy and Environmental Design Green Building Rating System, and authorize the Director to grant, under certain conditions, a partial abatement of property taxes for certain buildings based upon the rating of the building.

      Existing law authorizes the Commission on Economic Development to approve, under certain conditions, a partial abatement of certain taxes for a person who intends to locate or expand a business in this State. (NRS 360.750) Existing law prescribes the terms of such a partial abatement of property taxes for certain businesses that conserve energy or fossil sources of energy through recycling, for certain facilities that generate electrical energy from renewable energy and for facilities that produce certain devices for the storage of electrical energy. (NRS 361.0685, 361.0687) Sections 4, 5, 8 and 16 of this bill repeal those terms and prescribe substantially identical terms.

      Existing law provides an exemption from property taxes for any value added to the assessed value of a building by certain qualified systems that provide heating, cooling or electricity. (NRS 361.079) Sections 6 and 16 of this bill repeal that exemption and provide a substantially similar exemption.

 


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

ê2007 Statutes of Nevada, Page 3375 (Chapter 539, AB 621)ê

 

      Existing law prescribes the terms of a partial abatement of certain sales and use taxes, if approved by the Commission on Economic Development, for certain facilities that generate electricity from renewable energy or produce certain devices for the storage of electrical energy. (NRS 374.357) Sections 7 and 11 of this bill repeal those terms and prescribe substantially identical terms.

      Sections 12 and 16 of this bill repeal certain energy requirements for public buildings which otherwise would have become effective on July 1, 2007.

      Existing law requires an analysis of the cost of operating and maintaining certain public buildings prior to their construction or renovation. (NRS 338.190) Section 16 of this bill repeals those requirements.

      Existing law requires the Director of the Office of Energy to adopt a system for rating buildings for the purposes of certain tax exemptions and the construction of certain public buildings. (NRS 701.217) Section 16 of this bill repeals those requirements.

      Existing law authorizes the Commission on Economic Development to grant a partial abatement of property taxes for certain structures that use resources efficiently. (NRS 361.0775) Section 16 of this bill repeals that authority.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Title 58 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 7, inclusive, of this act.

      Sec. 2.  1.  The Director of the Office of Energy shall adopt a Green Building Rating System for the purposes of determining the eligibility of a building or other structure for a tax abatement pursuant to section 3 of this act.

      2.  The Green Building Rating System must include standards and ratings equivalent to the standards and ratings provided pursuant to the Leadership in Energy and Environmental Design Green Building Rating System, except that the standards adopted by the Director:

      (a) Except as otherwise provided in paragraphs (b) and (c), must not include:

            (1) Any standard that has not been included in the Leadership in Energy and Environmental Design Green Building Rating System for at least 2 years; or

             (2) Standards for homes;

      (b) Must provide reasonable exceptions based on the size of the area occupied by the building or other structure; and

      (c) Must require a building or other structure to obtain:

             (1) At least 3 points of credit for energy conservation to meet the equivalent of the silver level;

             (2) At least 5 points of credit for energy conservation to meet the equivalent of the gold level; and

             (3) At least 8 points of credit for energy conservation to meet the equivalent of the platinum level.

      3.  As used in this section, “home” means a building or other structure for which the principal use is as a residential dwelling for not more than four families.

      Sec. 3.  1.  Except as otherwise provided in this section, the Director shall grant a partial abatement from the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, on a building or other structure that is determined to meet the equivalent of the silver level or higher by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to section 2 of this act, if:

 


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

ê2007 Statutes of Nevada, Page 3376 (Chapter 539, AB 621)ê

 

equivalent of the silver level or higher by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to section 2 of this act, if:

      (a) No funding is provided by any governmental entity in this State for the acquisition, design or construction of the building or other structure or for the acquisition of any land therefor. For the purposes of this paragraph:

             (1) Private activity bonds must not be considered funding provided by a governmental entity.

             (2) The term “private activity bond” has the meaning ascribed to it in 26 U.S.C. § 141.

      (b) The owner of the property:

             (1) Submits an application for the partial abatement to the Director. If such an application is submitted for a project that has not been completed on the date of that submission and there is a significant change in the scope of the project after that date, the application must be amended to include the change or changes.

             (2) Except as otherwise provided in this subparagraph, provides to the Director, within 48 months after applying for the partial abatement, proof that the building or other structure meets the equivalent of the silver level or higher, as determined by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to section 2 of this act. The Director may, for good cause shown, extend the period for providing such proof.

      2.  As soon as practicable after the Director receives:

      (a) The application required by subsection 1, the Director shall forward a copy of that application to the:

             (1) Chief of the Budget Division of the Department of Administration;

             (2) Department of Taxation;

             (3) County assessor;

             (4) County treasurer; and

             (5) Commission on Economic Development.

      (b) The application and proof required by subsection 1, the Director shall determine whether the building or other structure is eligible for the abatement and, if so, forward a certificate of eligibility for the abatement to the:

             (1) Department of Taxation;

             (2) County assessor;

             (3) County treasurer; and

             (4) Commission on Economic Development.

      3.  As soon as practicable after receiving a copy of:

      (a) An application pursuant to paragraph (a) of subsection 2:

             (1) The Chief of the Budget Division shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State; and

             (2) The Department of Taxation shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on each affected local government, and forward a copy of the fiscal note to each affected local government.

 


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

ê2007 Statutes of Nevada, Page 3377 (Chapter 539, AB 621)ê

 

      (b) A certificate of eligibility pursuant to paragraph (b) of subsection 2, the Department of Taxation shall forward a copy of the certificate to each affected local government.

      4.  The partial abatement:

      (a) Must be for a duration of not more than 10 years and in an annual amount that equals, for a building or other structure that meets the equivalent of:

             (1) The silver level, 25 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land;

             (2) The gold level, 30 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land; or

             (3) The platinum level, 35 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land.

      (b) Does not apply during any period in which the owner of the building or other structure is receiving another abatement or exemption pursuant to this chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed pursuant to chapter 361 of NRS.

      (c) Terminates upon any determination by the Director that the building or other structure has ceased to meet the equivalent of the silver level or higher. The Director shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the building or other structure has ceased to meet that standard. The Director shall immediately provide notice of each determination of termination to the:

             (1) Department of Taxation, who shall immediately notify each affected local government of the determination;

             (2) County assessor;

             (3) County treasurer; and

             (4) Commission on Economic Development.

      5.  The Director shall adopt regulations:

      (a) Establishing the qualifications and methods to determine eligibility for the abatement;

      (b) Prescribing such forms as will ensure that all information and other documentation necessary to make an appropriate determination is filed with the Director; and

      (c) Prescribing the criteria for determining when there is a significant change in the scope of a project for the purposes of subparagraph (1) of paragraph (b) of subsection 1,

Ê and the Department of Taxation shall adopt such additional regulations as it determines to be appropriate to carry out the provisions of this section.

      6.  As used in this section:

      (a) “Building or other structure” does not include any building or other structure for which the principal use is as a residential dwelling for not more than four families.

      (b) “Director” means the Director of the Office of Energy appointed pursuant to NRS 701.150.

 


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

ê2007 Statutes of Nevada, Page 3378 (Chapter 539, AB 621)ê

 

      (c) “Taxes imposed for public education” means:

             (1) Any ad valorem tax authorized or required by chapter 387 of NRS;

             (2) Any ad valorem tax authorized or required by chapter 350 of NRS for the obligations of a school district, including, without limitation, any ad valorem tax necessary to carry out the provisions of subsection 5 of NRS 350.020; and

             (3) Any other ad valorem tax for which the proceeds thereof are dedicated to the public education of pupils in kindergarten through grade 12.

      Sec. 4.  1.  Except as otherwise provided in this section, if a:

      (a) Business that engages in the primary trade of preparing, fabricating, manufacturing or otherwise processing raw material or an intermediate product through a process in which at least 50 percent of the material or product is recycled on-site; or

      (b) Business that includes as a primary component a facility for the generation of electricity from recycled material,

Ê is found by the Commission on Economic Development to have as a primary purpose the conservation of energy or the substitution of other sources of energy for fossil sources of energy and obtains certification from the Commission on Economic Development pursuant to NRS 360.750, the Commission may, if the business additionally satisfies the requirements set forth in subsection 2 of NRS 361.0687, grant to the business a partial abatement from the taxes imposed on real property pursuant to chapter 361 of NRS.

      2.  If a partial abatement from the taxes imposed on real property pursuant to chapter 361 of NRS is approved by the Commission on Economic Development pursuant to NRS 360.750 for a business described in subsection 1:

      (a) The partial abatement must:

             (1) Be for a duration of at least 1 year but not more than 10 years;

             (2) Not exceed 50 percent of the taxes on real property payable by the business each year; and

             (3) Be administered and carried out in the manner set forth in NRS 360.750.

      (b) The Executive Director of the Commission on Economic Development shall notify the county assessor of the county in which the business is located of the approval of the partial abatement, including, without limitation, the duration and percentage of the partial abatement that the Commission granted. The Executive Director shall, on or before April 15 of each year, advise the county assessor of each county in which a business qualifies for a partial abatement during the current fiscal year as to whether the business is still eligible for the partial abatement in the next succeeding fiscal year.

      3.  The partial abatement provided in this section applies only to the business for which certification was granted pursuant to NRS 360.750 and the property used in connection with that business. The exemption does not apply to property in this State that is not related to the business for which the certification was granted pursuant to NRS 360.750 or to property in existence and subject to taxation before the certification was granted.

      4.  As used in this section, “facility for the generation of electricity from recycled material” means a facility for the generation of electricity that uses recycled material as its primary fuel, including material from:

 


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

ê2007 Statutes of Nevada, Page 3379 (Chapter 539, AB 621)ê

 

      (a) Industrial or domestic waste, other than hazardous waste, even though it includes a product made from oil, natural gas or coal, such as plastics, asphalt shingles or tires;

      (b) Agricultural crops, whether terrestrial or aquatic, and agricultural waste, such as manure and residue from crops; and

      (c) Municipal waste, such as sewage and sludge.

Ê The term includes all the equipment in the facility used to process and convert into electricity the energy derived from a recycled material fuel.

      Sec. 5.  1.  If a partial abatement from the taxes imposed pursuant to chapter 361 of NRS is approved by the Commission on Economic Development pursuant to NRS 360.750 for a facility for the generation of electricity from renewable energy or a facility for the production of an energy storage device:

      (a) The partial abatement must be:

             (1) For a duration of 10 years;

             (2) Equal to 50 percent of the taxes on real and personal property payable by the facility each year; and

             (3) Administered and carried out in the manner set forth in NRS 360.750.

      (b) The Executive Director of the Commission on Economic Development shall:

             (1) Notify the county assessor of the county in which the facility is located of the approval of the partial abatement; and

             (2) Advise the county assessor of the county in which the facility is located as to the dates on which the partial abatement will begin and end.

      2.  As used in this section:

      (a) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

             (1) Agricultural crops and agricultural wastes and residues;

             (2) Wood and wood wastes and residues;

             (3) Animal wastes;

             (4) Municipal wastes; and

             (5) Aquatic plants.

      (b) “Energy storage device” means a device for use and storage of electrical energy that alleviates the consumption of fossil fuel and does not produce fossil fuel emissions.

      (c) “Facility for the generation of electricity from renewable energy” means a facility for the generation of electricity that:

             (1) Uses renewable energy as its primary source of energy; and

             (2) Has a generating capacity of at least 10 kilowatts.

Ê The term includes all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity. The term does not include a facility that is located on residential property.

      (d) “Renewable energy” means:

             (1) Biomass;

             (2) Solar energy; or

             (3) Wind.

Ê The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

      Sec. 6.  1.  For purposes of the assessment of property pursuant to chapter 361 of NRS:

 


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

ê2007 Statutes of Nevada, Page 3380 (Chapter 539, AB 621)ê

 

      (a) Except as otherwise provided in paragraph (b), the value of a qualified system must not be included in the assessed value of a building.

      (b) Any value added by a qualified system must be included in the assessed value of a commercial or industrial building during any period in which the business that owns the commercial or industrial building is receiving another abatement or exemption pursuant to this chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed pursuant to chapter 361 of NRS.

      2.  The Department of Taxation shall adopt such regulations as it determines to be necessary for the administration of this section.

      3.  As used in this section, “qualified system” means any system, method, construction, installation, machinery, equipment, device or appliance which is designed, constructed or installed in a residential, commercial or industrial building to heat or cool the building or water used in the building, or to provide electricity used in the building, by using:

      (a) Energy from the wind or from solar devices not thermally insulated from the area where the energy is used;

      (b) Geothermal resources;

      (c) Energy derived from conversion of solid wastes; or

      (d) Waterpower,

Ê which conforms to standards established by regulation of the Department of Taxation.

      Sec. 7.  If an application for an abatement from taxes pursuant to NRS 374.357 is approved pursuant to NRS 360.750 for a facility for the generation of electricity from renewable energy or a facility for the production of an energy storage device:

      1.  The taxpayer is eligible for the abatement for 2 years.

      2.  The abatement must be administered and carried out in the manner set forth in NRS 360.750.

      3.  For the purposes of this section and the abatement, unless the context otherwise requires:

      (a) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

             (1) Agricultural crops and agricultural wastes and residues;

             (2) Wood and wood wastes and residues;

             (3) Animal wastes;

             (4) Municipal wastes; and

             (5) Aquatic plants.

      (b) “Eligible machinery or equipment” means:

             (1) If the business that qualifies for the abatement is a facility for the production of an energy storage device, machinery or equipment which is leased or purchased and for which a deduction is authorized pursuant to 26 U.S.C. § 179. The term does not include:

                   (I) Buildings or the structural components of buildings;

                   (II) Equipment used by a public utility;

                   (III) Equipment used for medical treatment;

                   (IV) Machinery or equipment used in mining;

                   (V) Machinery or equipment used in gaming; or

                   (VI) Aircraft.

             (2) If the business that qualifies for the abatement is a facility for the generation of electricity from renewable energy, all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity.

 


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

ê2007 Statutes of Nevada, Page 3381 (Chapter 539, AB 621)ê

 

equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity.

      (c) “Energy storage device” means a device for use and storage of electrical energy that alleviates the consumption of fossil fuel and does not produce fossil fuel emissions.

      (d) “Facility for the generation of electricity from renewable energy” means a facility for the generation of electricity that:

             (1) Uses renewable energy as its primary source of energy; and

             (2) Has a generating capacity of at least 10 kilowatts.

Ê The term includes all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity. The term does not include a facility that is located on residential property.

      (e) “Fuel cell” means a device or contrivance which, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

      (f) “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

             (1) Biomass;

             (2) Fuel cells;

             (3) Geothermal energy;

             (4) Solar energy;

             (5) Waterpower; and

             (6) Wind.

Ê The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

      Sec. 8.  NRS 361.0687 is hereby amended to read as follows:

      361.0687  1.  A person who intends to locate or expand a business in this State may, pursuant to NRS 360.750, apply to the Commission on Economic Development for a partial abatement from the taxes imposed by this chapter.

      2.  For a business to qualify pursuant to NRS 360.750 for a partial abatement from the taxes imposed by this chapter, the Commission on Economic Development must determine that, in addition to meeting the other requirements set forth in subsection 2 of that section:

      (a) If the business is a new business in a county whose population is 100,000 or more or a city whose population is 60,000 or more:

             (1) The business will make a capital investment in the county of at least $50,000,000 if the business is an industrial or manufacturing business or at least $2,000,000 if the business is not an industrial or manufacturing business; and

             (2) The average hourly wage that will be paid by the new business to its employees in this State is at least 100 percent of the average statewide hourly wage as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

      (b) If the business is a new business in a county whose population is less than 100,000 or a city whose population is less than 60,000:

             (1) The business will make a capital investment in the county of at least $500,000; and

             (2) The average hourly wage that will be paid by the new business to its employees in this State is at least 100 percent of the average statewide hourly wage or the average countywide hourly wage, whichever is less, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

 


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

ê2007 Statutes of Nevada, Page 3382 (Chapter 539, AB 621)ê

 

hourly wage or the average countywide hourly wage, whichever is less, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

      3.  Except as otherwise provided in [NRS 361.0685 and subsection 4,] sections 4 and 5 of this act, if a partial abatement from the taxes imposed by this chapter is approved by the Commission on Economic Development pursuant to NRS 360.750:

      (a) The partial abatement must:

             (1) Be for a duration of at least 1 year but not more than 10 years;

             (2) Not exceed 50 percent of the taxes on personal property payable by a business each year pursuant to this chapter; and

             (3) Be administered and carried out in the manner set forth in NRS 360.750.

      (b) The Executive Director of the Commission on Economic Development shall notify the county assessor of the county in which the business is located of the approval of the partial abatement, including, without limitation, the duration and percentage of the partial abatement that the Commission granted. The Executive Director shall, on or before April 15 of each year, advise the county assessor of each county in which a business qualifies for a partial abatement during the current fiscal year as to whether the business is still eligible for the partial abatement in the next succeeding fiscal year.

      4.  [If a partial abatement from the taxes imposed by this chapter is approved by the Commission on Economic Development pursuant to NRS 360.750 for a facility for the generation of electricity from renewable energy or a facility for the production of an energy storage device:

      (a) The partial abatement must be:

             (1) For a duration of 10 years;

             (2) Equal to 50 percent of the taxes on real and personal property payable by the facility each year pursuant to this chapter; and

             (3) Administered and carried out in the manner set forth in NRS 360.750.

      (b) The Executive Director of the Commission on Economic Development shall:

             (1) Notify the county assessor of the county in which the facility is located of the approval of the partial abatement; and

             (2) Advise the county assessor of the county in which the facility is located as to the dates on which the partial abatement will begin and end.

      5.]  As used in this section [:

      (a) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

             (1) Agricultural crops and agricultural wastes and residues;

             (2) Wood and wood wastes and residues;

             (3) Animal wastes;

             (4) Municipal wastes; and

             (5) Aquatic plants.

      (b) “Energy storage device” means a device for use and storage of electrical energy that alleviates the consumption of fossil fuel and does not produce fossil fuel emissions.

      (c) “Facility for the generation of electricity from renewable energy” means a facility for the generation of electricity that:

 


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

ê2007 Statutes of Nevada, Page 3383 (Chapter 539, AB 621)ê

 

             (1) Uses renewable energy as its primary source of energy; and

             (2) Has a generating capacity of at least 10 kilowatts.

Ê The term includes all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity. The term does not include a facility that is located on residential property.

      (d) “Industrial] , “industrial or manufacturing business” does not include a facility for the generation of electricity from renewable energy [.

      (e) “Renewable energy” means:

             (1) Biomass;

             (2) Solar energy; or

             (3) Wind.

Ê The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.] , as that term is defined in section 5 of this act.

      Sec. 9.  NRS 361.0687 is hereby amended to read as follows:

      361.0687  1.  A person who intends to locate or expand a business in this State may, pursuant to NRS 360.750, apply to the Commission on Economic Development for a partial abatement from the taxes imposed by this chapter.

      2.  For a business to qualify pursuant to NRS 360.750 for a partial abatement from the taxes imposed by this chapter, the Commission on Economic Development must determine that, in addition to meeting the other requirements set forth in subsection 2 of that section:

      (a) If the business is a new business in a county whose population is 100,000 or more or a city whose population is 60,000 or more:

             (1) The business will make a capital investment in the county of at least $50,000,000 if the business is an industrial or manufacturing business or at least $5,000,000 if the business is not an industrial or manufacturing business; and

             (2) The average hourly wage that will be paid by the new business to its employees in this State is at least 100 percent of the average statewide hourly wage as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

      (b) If the business is a new business in a county whose population is less than 100,000 or a city whose population is less than 60,000:

             (1) The business will make a capital investment in the county of at least $5,000,000 if the business is an industrial or manufacturing business or at least $500,000 if the business is not an industrial or manufacturing business; and

             (2) The average hourly wage that will be paid by the new business to its employees in this State is at least 100 percent of the average statewide hourly wage or the average countywide hourly wage, whichever is less, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

      3.  Except as otherwise provided in [NRS 361.0685,] section 4 of this act, if a partial abatement from the taxes imposed by this chapter is approved by the Commission on Economic Development pursuant to NRS 360.750:

 


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

ê2007 Statutes of Nevada, Page 3384 (Chapter 539, AB 621)ê

 

      (a) The partial abatement must:

             (1) Be for a duration of at least 1 year but not more than 10 years;

             (2) Not exceed 50 percent of the taxes on personal property payable by a business each year pursuant to this chapter; and

             (3) Be administered and carried out in the manner set forth in NRS 360.750.

      (b) The Executive Director of the Commission on Economic Development shall notify the county assessor of the county in which the business is located of the approval of the partial abatement, including, without limitation, the duration and percentage of the partial abatement that the Commission granted. The Executive Director shall, on or before April 15 of each year, advise the county assessor of each county in which a business qualifies for a partial abatement during the current fiscal year as to whether the business is still eligible for the partial abatement in the next succeeding fiscal year.

      Sec. 10.  NRS 361.777 is hereby amended to read as follows:

      361.777  Any partial abatements and partial exemptions [from taxation] to which a person may be entitled from the taxes imposed pursuant to this chapter must be applied in the following order of priority:

      1.  Any partial abatement to which the person is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724.

      2.  Any partial exemptions to which the person is entitled . [pursuant to this chapter.]

      3.  Any partial abatements to which the person is entitled [pursuant to this chapter] other than a partial abatement described in subsection 1.

      Sec. 11.  NRS 374.357 is hereby amended to read as follows:

      374.357  1.  A person who maintains a business or intends to locate a business in this State may, pursuant to NRS 360.750, apply to the Commission on Economic Development for an abatement from the taxes imposed by this chapter on the gross receipts from the sale, and the storage, use or other consumption, of eligible machinery or equipment for use by a business which has been approved for an abatement pursuant to NRS 360.750.

      2.  Except as otherwise provided in [subsection 3,] section 7 of this act, if an application for an abatement is approved pursuant to NRS 360.750:

      (a) The taxpayer is eligible for an abatement from the tax imposed by this chapter for not more than 2 years for machinery or equipment which is leased or purchased. In the case of machinery or equipment that is leased, the lessee is the taxpayer who is eligible for an abatement.

      (b) The abatement must be administered and carried out in the manner set forth in NRS 360.750.

      3.  [If an application for an abatement is approved pursuant to NRS 360.750 for a facility for the generation of electricity from renewable energy or a facility for the production of an energy storage device:

      (a) The taxpayer is eligible for an abatement from the tax imposed by this chapter for 2 years.

      (b) The abatement must be administered and carried out in the manner set forth in NRS 360.750.

      4.  As used in] For the purposes of this section, except as otherwise provided in section 7 of this act or unless the context otherwise requires [:

      (a) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

 


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

ê2007 Statutes of Nevada, Page 3385 (Chapter 539, AB 621)ê

 

             (1) Agricultural crops and agricultural wastes and residues;

             (2) Wood and wood wastes and residues;

             (3) Animal wastes;

             (4) Municipal wastes; and

             (5) Aquatic plants.

      (b) “Eligible] , “eligible machinery or equipment” means [:

             (1) If the business that qualifies for the abatement is not a facility for the generation of electricity from renewable energy,] machinery or equipment which is leased or purchased and for which a deduction is authorized pursuant to 26 U.S.C. § 179. The term does not include:

                   [(I)] (a) Buildings or the structural components of buildings;

                   [(II)] (b) Equipment used by a public utility;

                   [(III)] (c) Equipment used for medical treatment;

                   [(IV)] (d) Machinery or equipment used in mining;

                   [(V)] (e) Machinery or equipment used in gaming; or

                   [(VI)] (f) Aircraft.

             [(2) If the business that qualifies for the abatement is a facility for the generation of electricity from renewable energy, all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity.

      (c) “Energy storage device” means a device for use and storage of electrical energy that alleviates the consumption of fossil fuel and does not produce fossil fuel emissions.

      (d) “Facility for the generation of electricity from renewable energy” means a facility for the generation of electricity that:

             (1) Uses renewable energy as its primary source of energy; and

             (2) Has a generating capacity of at least 10 kilowatts.

Ê The term includes all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity. The term does not include a facility that is located on residential property.

      (e) “Fuel cell” means a device or contrivance which, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

      (f) “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

             (1) Biomass;

             (2) Fuel cells;

             (3) Geothermal energy;

             (4) Solar energy;

             (5) Waterpower; and

             (6) Wind.

Ê The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.]

      Sec. 12.  Section 42 of chapter 2, Statutes of Nevada 2005, 22nd Special Session, at page 90, is hereby amended to read as follows:

      Sec. 42.  1.  This section and sections 14 to 37, inclusive, 39, 40 and 41 of this act become effective upon passage and approval.

      2.  Section 38 of this act becomes effective on June 1, 2005.

      3.  Sections 1, 2, 4, 6, 7, 8 and 9 to 13, inclusive, of this act become effective:

 


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

ê2007 Statutes of Nevada, Page 3386 (Chapter 539, AB 621)ê

 

      (a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

      (b) On October 1, 2005, for all other purposes.

      4.  Section 5 of this act becomes effective on October 1, 2005, and applies to the construction or renovation of a public building, the designing of which begins on or after that date.

      5.  Sections 8.1 to 8.8, inclusive, of this act become effective:

      (a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

      (b) On July 1, 2006, for all other purposes.

      6.  [Section 3 of this act becomes effective on July 1, 2007, and applies to the construction of a public building, the designing of which begins on or after that date.

      7.]  Sections 8.55 and 8.6 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

      (a) Have failed to comply with a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or

      (b) Are in arrears in the payment for the support of one or more children,

Ê are repealed by the Congress of the United States.

      Sec. 13.  (Deleted by amendment.)

      Sec. 14.  1.  The Director of the Office of Energy shall, not later than September 1, 2007, adopt:

      (a) The Green Building Rating System required by section 2 of this act; and

      (b) The regulations required by section 3 of this act.

      2.  The Department of Taxation shall, not later than September 1, 2007, adopt the regulations required by section 3 of this act.

      3.  The Director of the Office of Energy shall provide an expedited procedure to carry out the provisions of section 3 of this act which allows for the consideration as soon as practicable for that purpose of applications filed before the effective date of this section with the Commission on Economic Development for a partial abatement of taxes pursuant to NRS 361.0775.

      Sec. 15.  1.  The provisions of section 4 of this act shall be deemed to apply to any partial abatement of taxes granted pursuant to NRS 361.0685 before the effective date of this section.

      2.  The provisions of section 5 of this act shall be deemed to apply to any partial abatement of taxes to which subsection 4 of NRS 361.0687 applied before the effective date of this section.

      3.  The provisions of section 7 of this act shall be deemed to apply to any partial abatement of taxes to which subsection 3 of NRS 374.357 applied before the effective date of this section.

      4.  The Commission on Economic Development shall not grant any partial abatement of taxes pursuant to NRS 361.0775 on or after the effective date of this section. The provisions of this act do not affect the terms of any partial abatement of taxes granted by the Commission on Economic Development pursuant to NRS 361.0775 before the effective date of this section.

 


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

ê2007 Statutes of Nevada, Page 3387 (Chapter 539, AB 621)ê

 

partial abatement of taxes granted by the Commission on Economic Development pursuant to NRS 361.0775 before the effective date of this section.

      5.  The tax exemption provided pursuant to paragraph (d) of subsection 1 of NRS 374.307, as amended by chapter 2, Statutes of Nevada 2005, 22nd Special Session, at page 71, shall be deemed to apply to products and materials purchased on or after October 1, 2005, and on or before December 31, 2010, that are used in the construction of a building:

      (a) Which is constructed:

             (1) Pursuant to a preconstruction or construction contract executed on or before December 31, 2005; and

             (2) As part of a construction project registered with the Office of Energy for the purpose of obtaining that tax exemption;

      (b) For which an opinion letter was issued by the Department of Taxation before February 1, 2007, stating that the project will qualify for a partial sales and use tax exemption under Assembly Bill No. 3 (Special Session 2005) if certain conditions are met; and

      (c) Which is certified at or meets the equivalent of the silver level or higher by an independent contractor authorized to grant such certification in accordance with the Green Building Rating System adopted by the Director of the Office of Energy pursuant to the former provisions of NRS 701.217.

      Sec. 15.5.  1.  Except as otherwise provided in this section, the Director shall grant a partial abatement from the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, on a building or other structure:

      (a) Which is constructed:

             (1) Pursuant to a preconstruction or construction contract executed on or before December 31, 2005; and

             (2) As part of a construction project registered with the Office of Energy for the purpose of obtaining the partial abatement of taxes provided pursuant to the former provisions of NRS 361.0775;

      (b) For which an opinion letter was issued by the Department of Taxation before February 1, 2007, stating that the project will qualify for a partial sales and use tax exemption under Assembly Bill No. 3 (Special Session 2005) if certain conditions are met; and

      (c) Which is certified at or meets the equivalent of the silver level or higher by an independent contractor authorized to grant such certification in accordance with the Green Building Rating System adopted by the Director of the Office of Energy pursuant to the former provisions of NRS 701.217.

      2.  The Director shall not grant the partial abatement if any funding is provided by any governmental entity in this State for the acquisition, design or construction of the building or other structure or for the acquisition of any land therefor. For the purposes of this subsection:

      (a) Private activity bonds must not be considered funding provided by a governmental entity.

      (b) The term “private activity bond” has the meaning ascribed to it in 26 U.S.C. § 141.

      3.  To obtain the partial abatement, the owner of the property must:

      (a) Submit an application for the partial abatement to the Director. If such an application is submitted for a project that has not been completed on the date of that submission and there is a significant change in the scope of the project after that date, the application must be amended to include the change or changes.

 


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

ê2007 Statutes of Nevada, Page 3388 (Chapter 539, AB 621)ê

 

the date of that submission and there is a significant change in the scope of the project after that date, the application must be amended to include the change or changes.

      (b) Except as otherwise provided in this paragraph, provide to the Director, within 48 months after applying for the partial abatement, proof that the building or other structure is certified at or meets the equivalent of the silver level or higher by an independent contractor authorized to grant such certification in accordance with the Green Building Rating System adopted by the Director pursuant to the former provisions of NRS 701.217. The Director may, for good cause shown, extend the period for providing such proof.

      4.  As soon as practicable after the Director receives:

      (a) The application required by subsection 3, the Director shall forward a copy of that application to the:

             (1) Chief of the Budget Division of the Department of Administration;

             (2) Department of Taxation;

             (3) County assessor;

             (4) County treasurer; and

             (5) Commission on Economic Development.

      (b) The application and proof required by subsection 3, the Director shall determine whether the building or other structure is eligible for the abatement and, if so, forward a certificate of eligibility for the abatement to the:

             (1) Department of Taxation;

             (2) County assessor;

             (3) County treasurer; and

             (4) Commission on Economic Development.

      5.  As soon as practicable after receiving a copy of:

      (a) An application pursuant to paragraph (a) of subsection 4:

             (1) The Chief of the Budget Division shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State; and

             (2) The Department of Taxation shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on each affected local government, and forward a copy of the fiscal note to each affected local government.

      (b) A certificate of eligibility pursuant to paragraph (b) of subsection 4, the Department of Taxation shall forward a copy of the certificate to each affected local government.

      6.  The partial abatement:

      (a) Must be for a duration of 10 years, unless earlier terminated pursuant to paragraph (c), and in an annual amount that equals 35 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land.

      (b) Does not apply during any period in which the owner of the building or other structure is receiving another abatement or exemption from the taxes imposed pursuant to chapter 361 of NRS, other than any partial abatement to which the owner is entitled pursuant to NRS 361.471 to 361.4735, inclusive.

      (c) Terminates upon any determination by the Director that the building or other structure has ceased to meet the equivalent of the silver level or higher.

 


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

ê2007 Statutes of Nevada, Page 3389 (Chapter 539, AB 621)ê

 

higher. The Director shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the building or other structure has ceased to meet that standard. The Director shall immediately provide notice of each determination of termination to the:

             (1) Department of Taxation, who shall immediately notify each affected local government of the determination;

             (2) County assessor;

             (3) County treasurer; and

             (4) Commission on Economic Development.

      7.  The Director shall:

      (a) Adopt regulations:

             (1) Establishing the qualifications and methods to determine eligibility for the abatement;

             (2) Prescribing such forms as will ensure that all information and other documentation necessary to make an appropriate determination is filed with the Director; and

             (3) Prescribing the criteria for determining when there is a significant change in the scope of a project for the purposes of paragraph (a) of subsection 3,

Ê and the Department of Taxation shall adopt such additional regulations as it determines to be appropriate to carry out the provisions of this section.

      (b) Provide an expedited procedure to carry out the provisions of this section which allows for the consideration as soon as practicable for that purpose of applications filed before the effective date of this section with the Commission on Economic Development for a partial abatement of taxes pursuant to NRS 361.0775.

      8.  As used in this section:

      (a) “Building or other structure” does not include any building or other structure for which the principal use is as a residential dwelling for not more than four families.

      (b) “Director” means the Director of the Office of Energy appointed pursuant to NRS 701.150.

      (c) “Taxes imposed for public education” means:

             (1) Any ad valorem tax authorized or required by chapter 387 of NRS;

             (2) Any ad valorem tax authorized or required by chapter 350 of NRS for the obligations of a school district, including, without limitation, any ad valorem tax necessary to carry out the provisions of subsection 5 of NRS 350.020; and

             (3) Any other ad valorem tax for which the proceeds thereof are dedicated to the public education of pupils in kindergarten through grade 12.

      Sec. 16.  1.  NRS 338.190, 361.0685, 361.0775, 361.079 and 701.217 are hereby repealed.

      2.  Section 3 of chapter 2, Statutes of Nevada 2005, 22nd Special Session, at page 69, is hereby repealed.

      Sec. 17.  1.  This section and sections 1, 4 to 8, inclusive, and 10 to 16, inclusive, of this act become effective upon passage and approval.

      2.  Sections 2 and 3 of this act become effective:

      (a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

 


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

ê2007 Statutes of Nevada, Page 3390 (Chapter 539, AB 621)ê

 

      (b) On July 1, 2007, for all other purposes.

      3.  Sections 5, 7, 8 and 11 of this act expire by limitation on June 30, 2009.

      4.  Section 9 of this act becomes effective on July 1, 2009.

________

 

CHAPTER 540, SB 131

Senate Bill No. 131–Committee on Judiciary

 

CHAPTER 540

 

AN ACT relating to governmental administration; authorizing each county clerk to charge and collect an additional fee to pay for the acquisition and improvement of technology used in the office of the county clerk; and providing other matters properly relating thereto.

 

[Approved: June 18, 2007]

 

Legislative Counsel’s Digest:

      Existing law requires each county clerk to charge and collect certain fees relating to certain civil actions and proceedings in district court. (NRS 19.013-19.0335) Section 2 of this bill authorizes each county clerk to charge and collect an additional fee not to exceed $5 for filing and recording a bond of a notary public, per name. The additional fee, if charged and collected, must be credited to an account described in section 1 of this bill. (NRS 19.013) Section 1 provides that if a county clerk charges and collects an additional fee for filing and recording a bond of a notary public, the proceeds must be accounted for separately in the county general fund and the money in the account must be used only to acquire technology for or to improve technology used in the office of the county clerk.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 19 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  If a county clerk imposes an additional fee pursuant to subsection 2 of NRS 19.013, the proceeds collected from such a fee must be accounted for separately in the county general fund. Any interest earned on money in the account, after deducting any applicable charges, must be credited to the account. Money that remains in the account at the end of a fiscal year does not revert to the county general fund, and the balance in the account must be carried forward to the next fiscal year.

      2.  The money in the account must be used only to acquire technology for or to improve technology used in the office of the county clerk, including, without limitation, costs related to acquiring or improving technology for converting and archiving records, purchasing hardware and software, maintaining the technology, training employees in the operation of the technology and contracting for professional services relating to the technology.

      Sec. 2.  NRS 19.013 is hereby amended to read as follows:

      19.013  1.  Except as otherwise provided by specific statute, each county clerk shall charge and collect the following fees:

 


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

ê2007 Statutes of Nevada, Page 3391 (Chapter 540, SB 131)ê

 

On the commencement of any action or proceeding in the district court, or on the transfer of any action or proceeding from a district court of another county, except probate or guardianship proceedings, to be paid by the party commencing the action, proceeding or transfer................................................................................................................................................ $56

On an appeal to the district court of any case from a justice court or a municipal court, or on the transfer of any case from a justice court or a municipal court.................................................. 42

On the filing of a petition for letters testamentary, letters of administration, setting aside an estate without administration, or a guardianship, which fee includes the court fee prescribed by NRS 19.020, to be paid by the petitioner:

Where the stated value of the estate is more than $2,500.................................................... 72

Where the stated value of the estate is $2,500 or less, no fee may be charged or collected.

On the filing of a petition to contest any will or codicil, to be paid by the petitioner.................... 44

On the filing of an objection or cross-petition to the appointment of an executor, administrator or guardian, or an objection to the settlement of account or any answer in an estate or guardianship matter............................................................................................................................ 44

On the appearance of any defendant or any number of defendants answering jointly, to be paid upon the filing of the first paper in the action by him or them................................................... 44

For filing a notice of appeal..................................................................................................................... 24

For issuing a transcript of judgment and certifying thereto.................................................................. 3

For preparing any copy of any record, proceeding or paper, for each page..................................... 1

For each certificate of the clerk, under the seal of the court................................................................ 3

For examining and certifying to a copy of any paper, record or proceeding prepared by another and presented for his certificate.......................................................................................................... 5

For filing all papers not otherwise provided for, other than papers filed in actions and proceedings in court and papers filed by public officers in their official capacity.................... 5

For issuing any certificate under seal, not otherwise provided for...................................................... 6

For searching records or files in his office, for each year...................................................................... 1

For filing and recording a bond of a notary public, per name........................................................... 15

For entering the name of a firm or corporation in the register of the county clerk........................ 20

 

      2.  A county clerk may charge and collect, in addition to any fee that a county clerk is otherwise authorized to charge and collect, an additional fee not to exceed $5 for filing and recording a bond of a notary public, per name. On or before the fifth day of each month, the county clerk shall pay to the county treasurer the amount of fees collected by him pursuant to this subsection for credit to the account established pursuant to section 1 of this act.

 


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

ê2007 Statutes of Nevada, Page 3392 (Chapter 540, SB 131)ê

 

      3.  Except as otherwise provided by specific statute, all fees prescribed in this section are payable in advance if demanded by the county clerk.

      [3.] 4.  The fees set forth in subsection 1 are payment in full for all services rendered by the county clerk in the case for which the fees are paid, including the preparation of the judgment roll, but the fees do not include payment for typing, copying, certifying or exemplifying or authenticating copies.

      [4.] 5.  No fee may be charged to any attorney at law admitted to practice in this State for searching records or files in the office of the clerk. No fee may be charged for any services rendered to a defendant or his attorney in any criminal case or in habeas corpus proceedings.

      [5.] 6.  Each county clerk shall, on or before the fifth day of each month, account for and pay to the county treasurer all fees collected during the preceding month.

      Sec. 3.  (Deleted by amendment.)

      Sec. 4.  This act becomes effective on July 1, 2007 and expires by limitation on July 1, 2013.

________

 

CHAPTER 541, SB 154

Senate Bill No. 154–Committee on Taxation

 

CHAPTER 541

 

AN ACT relating to taxation; clarifying the applicability of an exemption from the taxes on transfers of real property for transfers relating to changes in identity, form or place of organization; contingently allowing the imposition in Washoe County of additional taxes to fund capital projects for the county school district; and providing other matters properly relating thereto.

 

[Approved: June 18, 2007]

 

Legislative Counsel’s Digest:

      Existing law provides for the imposition of taxes on transfers of real property. (NRS 375.020, 375.023, 375.026)

      Existing law also provides that certain transfers are exempt from such taxes. (NRS 375.090) Section 3 of this bill revises an exemption for transfers relating to a change in identity, form or place of organization to clarify that the exemption applies to the reorganization of any business entity.

      Sections 10.1-10.4 of this bill create the Washoe County Schools Construction and Revitalization Advisory Committee, require the Advisory Committee to prepare recommendations for the imposition of taxes to fund capital projects for the Washoe County School District, require the Board of County Commissioners to impose the taxes only if the voters of the County approve of the imposition of those taxes at the 2008 General Election, and require the Committee on Local Government Finance to adopt regulations prescribing the contents of any ordinance imposing those taxes.

 


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

ê2007 Statutes of Nevada, Page 3393 (Chapter 541, SB 154)ê

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Sections 1 and 2.  (Deleted by amendment.)

      Sec. 3.  NRS 375.090 is hereby amended to read as follows:

      375.090  The taxes imposed by NRS 375.020, 375.023 and 375.026 do not apply to:

      1.  A mere change in identity, form or place of organization, such as a transfer between a [corporation] business entity and its parent [corporation, a] , its subsidiary or an affiliated [corporation] business entity if the affiliated [corporation] business entity has identical common ownership.

      2.  A transfer of title to the United States, any territory or state or any agency, department, instrumentality or political subdivision thereof.

      3.  A transfer of title recognizing the true status of ownership of the real property.

      4.  A transfer of title without consideration from one joint tenant or tenant in common to one or more remaining joint tenants or tenants in common.

      5.  A transfer, assignment or other conveyance of real property if the owner of the property is related to the person to whom it is conveyed within the first degree of lineal consanguinity or affinity.

      6.  A transfer of title between former spouses in compliance with a decree of divorce.

      7.  A transfer of title to or from a trust without consideration if a certificate of trust is presented at the time of transfer.

      8.  Transfers, assignments or conveyances of unpatented mines or mining claims.

      9.  A transfer, assignment or other conveyance of real property to a corporation or other business organization if the person conveying the property owns 100 percent of the corporation or organization to which the conveyance is made.

      10.  A conveyance of real property by deed which becomes effective upon the death of the grantor pursuant to NRS 111.109.

      11.  The making, delivery or filing of conveyances of real property to make effective any plan of reorganization or adjustment:

      (a) Confirmed under the Bankruptcy Act, as amended, 11 U.S.C. §§ 101 et seq.;

      (b) Approved in an equity receivership proceeding involving a railroad, as defined in the Bankruptcy Act; or

      (c) Approved in an equity receivership proceeding involving a corporation, as defined in the Bankruptcy Act,

Ê if the making, delivery or filing of instruments of transfer or conveyance occurs within 5 years after the date of the confirmation, approval or change.

      12.  The making or delivery of conveyances of real property to make effective any order of the Securities and Exchange Commission if:

      (a) The order of the Securities and Exchange Commission in obedience to which the transfer or conveyance is made recites that the transfer or conveyance is necessary or appropriate to effectuate the provisions of section 11 of the Public Utility Holding Company Act of 1935, 15 U.S.C. § 79k;

      (b) The order specifies and itemizes the property which is ordered to be transferred or conveyed; and

      (c) The transfer or conveyance is made in obedience to the order.

 


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

ê2007 Statutes of Nevada, Page 3394 (Chapter 541, SB 154)ê

 

      13.  A transfer to an educational foundation. As used in this subsection, “educational foundation” has the meaning ascribed to it in subsection 3 of NRS 388.750.

      14.  A transfer to a university foundation. As used in this subsection, “university foundation” has the meaning ascribed to it in subsection 3 of NRS 396.405.

      Secs. 4-10.  (Deleted by amendment.)

      Sec. 10.1.  1.  The Washoe County Schools Construction and Revitalization Advisory Committee is hereby created. The Advisory Committee consists of the Superintendent of Schools of the Washoe County School District and 14 additional members who must be appointed as follows:

      (a) Two members of the Senate who are representative of Washoe County, appointed by the Majority Leader of the Senate. Each of the members appointed pursuant to this paragraph must be a member of a different major political party.

      (b) Two members of the Assembly who are representative of Washoe County, appointed by the Speaker of the Assembly. Each of the members appointed pursuant to this paragraph must be a member of a different major political party.

      (c) One member who is a representative of gaming, appointed by the association of gaming establishments whose membership collectively paid the most gross revenue fees to the State pursuant to NRS 463.370 in the county in the preceding year.

      (d) One member who is a representative of business or commercial interests other than gaming, appointed by the Reno-Sparks Chamber of Commerce.

      (e) One member who is a representative of the Nevada Association of Realtors, appointed by the Nevada Association of Realtors.

      (f) One member whose is a representative of the association of homebuilders with the largest membership in the county, appointed by that association.

      (g) One member who is a representative of the county fair and recreation board, appointed by that board.

      (h) One member who is a representative of the largest publicly-traded electric utility in the county, appointed by that utility.

      (i) One member who is a representative of a labor organization, appointed by the State of Nevada AFL-CIO.

      (j) One member who is a representative of the largest organization of educators in the county, appointed by that organization.

      (k) One member who is a representative of the general public, appointed by the parent-teacher association with the largest membership in the county.

      (l) One member who is a representative of the general public, appointed by the Governor. The member appointed pursuant to this paragraph must be a registered voter in the county.

      2.  Each of the members appointed pursuant to paragraphs (c) to (i), inclusive, of subsection 1 must be a member of the governing board or an executive officer of the entity entitled to appoint the member.

      3.  The Legislative Commission shall appoint the Chairman of the Advisory Committee from among the members appointed pursuant to paragraphs (a) and (b) of subsection 1.

 


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

ê2007 Statutes of Nevada, Page 3395 (Chapter 541, SB 154)ê

 

      4.  Any vacancy occurring on the Advisory Committee must be filled by the person or entity entitled to appoint the member whose position is vacant.

      5.  The members of the Advisory Committee who are not Legislators shall serve without salary, but they are entitled to receive out of the Legislative Fund the per diem expense allowances and travel expenses provided for state officers and employees generally. Except during a regular or special session of the Legislature, members of the Advisory Committee who are Legislators are entitled to receive out of the Legislative Fund the compensation provided for a majority of the members of the Legislature during the first 60 days of the preceding session for each day or portion of a day of attendance, and the per diem expense allowances provided for state officers and employees generally and the travel expenses provided pursuant to NRS 218.2207.

      6.  The Superintendent of Schools of the Washoe County School District shall provide such staff and other support as is necessary for the Advisory Committee to perform its duty.

      Sec. 10.2.  1.  The Washoe County Schools Construction and Revitalization Advisory Committee shall, not later than May 1, 2008:

      (a) Prepare recommendations for the imposition of one or more taxes in the county to provide funding for the Washoe County School District for the purposes set forth in subsection 1 of NRS 387.335; and

      (b) Submit the recommendations to the Board of Trustees of the Washoe County School District.

      2.  Each recommendation submitted to the Board of Trustees pursuant to subsection 1 must be approved by at least 10 members of the Advisory Committee.

      3.  The Board of Trustees shall adopt and transmit to the Board of County Commissioners of Washoe County a resolution requesting the Board of County Commissioners to adopt an ordinance imposing any tax or taxes recommended by the Advisory Committee and submitted to the Board of Trustees pursuant to this section. The Board of County Commissioners shall:

      (a) At the general election on November 4, 2008, submit a question to the voters of the county asking whether the recommended tax or taxes should be imposed in the county; and

      (b) If a majority of the voters voting on the question vote affirmatively on the question, adopt an ordinance imposing the recommended tax or taxes. The tax or taxes may be imposed notwithstanding the provisions of any specific statute to the contrary.

      Sec. 10.3.  1.  The Committee on Local Government Finance shall, not later than November 1, 2008, adopt regulations prescribing the contents of any ordinance which may be adopted pursuant to section 10.2 of this act. The regulations:

      (a) Must:

             (1) Prescribe procedures for the administration and enforcement of any tax or taxes imposed; and

             (2) Prohibit the collection before January 1, 2009, of any tax or taxes imposed; and

      (b) May include such other matters as the Committee deems to be appropriate.

      2.  Any regulations adopted by the Committee on Local Government Finance pursuant to this section must be adopted in the manner prescribed for state agencies in chapter 233B of NRS.

 


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

ê2007 Statutes of Nevada, Page 3396 (Chapter 541, SB 154)ê

 

      Sec. 10.4.  The proceeds of any tax or taxes imposed under an ordinance adopted pursuant to section 10.2 of this act:

      1.  Must be deposited in the county school district’s fund for capital projects established pursuant to NRS 387.328, to be held and expended in the same manner as other money deposited in that fund; and

      2.  Must not be:

      (a) Considered in any negotiations between a recognized organization of employees of a school district and the school district; or

      (b) Used to reduce or supplant the amount of any money which would otherwise be made available for the purposes described in subsection 1 of NRS 387.335.

      Sec. 11.  1.  This act becomes effective on July 1, 2007.

      2.   Section 10.1 of this act expires by limitation on May 1, 2008.

________

 

CHAPTER 542, SB 222

Senate Bill No. 222–Committee on Natural Resources

 

CHAPTER 542

 

AN ACT relating to water; creating the Nye County Water District; providing for the acquisition, storage, sale and distribution of water by the District; conferring other powers on the District; providing for the membership of the Governing Board of the District; setting forth the duties of the Board; authorizing the Board to levy and collect certain taxes; exempting the District from regulation by the Public Utilities Commission of Nevada; and providing other matters properly relating thereto.

 

[Approved: June 18, 2007]

 

Legislative Counsel’s Digest:

      The Nevada State Legislature has enacted several laws that create water districts. For example, in 1947, the Legislature created the Las Vegas Valley Water District by a special act. (Chapter 164, Statutes of Nevada 1947, p. 534) In 2003, the Legislature created the Lincoln County Water District by a special act. (Chapter 474, Statutes of Nevada 2003, p. 2985) A water district is generally created to provide for the storage, conservation, distribution and sale of water within or outside of the district. (Chapter 100, Statutes of Nevada 1993, p. 159)

      Sections 1-12 of this bill create the Nye County Water District by a special act similar to that which created the Lincoln County Water District.

      Section 6 of this bill specifies that the jurisdiction and service area of the District consists of all the land within the boundaries of Nye County, Nevada.

      Section 7 of this bill states that the powers, duties and privileges of the District must be exercised by the Governing Board of the District, and that the membership of the Board must consist of seven members appointed by the Board of County Commissioners of Nye County.

      Section 8 of this bill sets forth an extensive list of powers conferred upon the District, including, without limitation: (1) the power to incur indebtedness and issue bonds; (2) the power to acquire land and water rights to carry out the purposes of the District; (3) the power to construct any work for the development, importation or distribution of the water of the District; and (4) the power to levy and collect taxes to assist in the operational expenses of the District.

 


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

ê2007 Statutes of Nevada, Page 3397 (Chapter 542, SB 222)ê

 

      Section 9 of this bill sets forth the duties of the Board, including, without limitation: (1) the duty to choose a Chairman and prescribe the powers and duties of the Chairman; (2) the duty to fix the principal place of business of the District; (3) the duty to appoint a General Manager; and (4) the duty to prescribe the powers, duties, compensation and benefits of all officers and employees of the District. Section 9 further states that, except as to the exercise of the power of eminent domain, the disposal of water rights, applications to the State Engineer for certain permits and the adoption and amendment of bylaws for which a supermajority vote of the Board is required, a simple majority of the members of the Board constitutes a quorum and a quorum may exercise all the powers and duties of the Board.

      Section 10 of this bill authorizes the Board to levy and collect taxes on all taxable property within the District to make payment of principal and interest on its general obligations.

      Section 11 of this bill exempts the District from regulation by the Public Utilities Commission of Nevada.

      Section 13 of this bill requires the Board of County Commissioners to stagger the initial terms of the members of the Governing Board of the District.

 

 

      Whereas, Adequate and efficient water service is vital to the economic development and well-being of the residents of Nye County; and

      Whereas, The well-being of the residents of Nye County, the long-term economic development of Nye County and the protection of the environment of Nye County could best be served by the creation of a single governmental entity, the purpose of which is to secure and develop sustainable sources of water; and

      Whereas, The provisions of this act do not express any preference for whether water service is provided to the residents of Nye County by a governmental entity or by a private utility regulated by the Public Utilities Commission of Nevada; now, therefore,

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  As used in sections 1 to 12, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 2 to 5, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 2.  (Deleted by amendment.)

      Sec. 3.  “Board” means the Governing Board of the District.

      Sec. 4.  “Commission” means the Board of County Commissioners of Nye County.

      Sec. 4.5.  “District” means the Nye County Water District created pursuant to section 6 of this act.

      Sec. 5.  “Service area” means the service area of the District described in section 6 of this act.

      Sec. 6.  There is hereby created a political subdivision of this State to be known as the Nye County Water District. The jurisdiction and service area of the District are all that real property within the boundaries of Nye County, Nevada, as described in NRS 243.275 to 243.315, inclusive.

      Sec. 7.  1.  All powers, duties and privileges of the District must be exercised and performed by the Board.

      2.  The Board must be composed of the following seven members as appointed by the Commission:

 


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

ê2007 Statutes of Nevada, Page 3398 (Chapter 542, SB 222)ê

 

      (a) One member who is a resident of Beatty or the Amargosa area;

      (b) One member who is a resident of the Tonopah area;

      (c) Three members who are residents of the Pahrump Valley;

      (d) One member who is a resident of the area in Nye County known as Currant Creek or the area known as Smoky Valley; and

      (e) In addition to the members appointed pursuant to paragraphs (a), (b) and (d), one member who is a resident of an area in Nye County other than the Pahrump Valley.

      3.  A member of the Board or any person related to a member of the Board within the third degree of consanguinity or affinity must not be affiliated with a private utility that is regulated by the Public Utilities Commission of Nevada.

      4.  Except as otherwise provided in subsection 5, after the initial terms, each member of the Board serves for a term of 2 years. A vacancy on the Board must be filled in the same manner as the original appointment. A member may be reappointed.

      5.  Members of the Board serve at the pleasure of the Commission and may be recalled by a simple majority vote of all the members of the Commission.

      Sec. 8.  1.  The District has the following powers:

      (a) To have perpetual succession.

      (b) To sue and be sued in the name of the District in all courts or tribunals of competent jurisdiction.

      (c) To adopt a seal and alter it at the pleasure of the District.

      (d) To enter into contracts, and employ and fix the compensation of staff and professional advisers.

      (e) To incur indebtedness pursuant to chapters 271 and 318 of NRS and to issue bonds and provide for medium-term obligations pursuant to chapter 350 of NRS, to pay, in whole or in part, the costs of acquiring, constructing and operating any lands, easements, water rights, water, waterworks or projects, conduits, pipelines, wells, reservoirs, structures, machinery and other property or equipment useful or necessary to store, convey, supply or otherwise deal with water, and otherwise to carry out the powers set forth in this section. For the purposes of NRS 350.572, sections 1 to 12, inclusive, of this act do not expressly or impliedly require an election before the issuance of a security or indebtedness pursuant to NRS 350.500 to 350.720, inclusive, if the obligation is payable solely from pledged revenues, but an election must be held before incurring a general obligation.

      (f) To acquire, by purchase, grant, gift, devise, lease, construction, contract or otherwise, lands, rights-of-way, easements, privileges, water and water rights, and property of every kind, whether real or personal, to construct, maintain and operate, within or without the District, all works and improvements necessary or proper to carry out any of the objects or purposes of sections 1 to 12, inclusive, of this act, and to complete, extend, add to, repair or otherwise improve any works, improvements or property acquired by the District as authorized by sections 1 to 12, inclusive, of this act.

      (g) To sell, lease, encumber, hypothecate or otherwise dispose of property, whether real or personal, including, without limitation, water and water rights, as is necessary or convenient to the full exercise of the powers of the District. Any sale, lease, encumbrance, hypothecation or other disposal of water rights pursuant to this paragraph must be first approved by a supermajority vote of the Board and a simple majority vote of all the members of the Commission.

 


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

ê2007 Statutes of Nevada, Page 3399 (Chapter 542, SB 222)ê

 

of water rights pursuant to this paragraph must be first approved by a supermajority vote of the Board and a simple majority vote of all the members of the Commission.

      (h) To develop and adopt, subject to approval by the Commission, ordinances, rules, regulations and bylaws necessary for the exercise of the powers and conduct of the affairs of the Board and District. All bylaws adopted or amended must also be approved by a supermajority vote of the members of the Board.

      (i) Except as otherwise provided in this paragraph, to exercise the power of eminent domain in the manner prescribed by law, if the action is first approved by a supermajority vote of the Board and a simple majority vote of all the members of the Commission. The District may exercise the power of eminent domain within or without the service area, to take any property, including, without limitation, the property specified in paragraph (f) and any water or water right specified in paragraph (o), necessary for the exercise of the powers of the District or for the provision of adequate water service to the service area. The District shall not exercise the power of eminent domain to acquire any portion of water rights or waterworks facilities owned or used by a public utility that has been issued a certificate of public convenience and necessity pursuant to NRS 704.330 to provide water in a service area unless it also acquires all the real property, water rights, waterworks facilities, equipment and any other private property owned or used by the public utility in connection with providing a service regulated by the Public Utilities Commission of Nevada in a service territory located within or adjacent to the District.

      (j) To enter upon any land, to make surveys and locate any necessary improvements, including, without limitation, lines for channels, conduits, canals, pipelines, roadways and other rights-of-way, to acquire property necessary or convenient for the construction, use, supply, maintenance, repair and improvement of such improvements, including, without limitation, works constructed and being constructed by private owners, lands for reservoirs for the storage of necessary water, and all necessary appurtenances, and, where necessary and for the purposes and uses set forth in this section, to acquire and hold the stock of corporations, domestic or foreign, owning water or water rights, canals, waterworks, franchises, concessions or other rights.

      (k) To enter into and do any acts necessary or proper for the performance of any agreement with the United States, or any state, county or district of any kind, public or private corporation, association, firm or natural person, or any number of them, for the joint acquisition, construction, leasing, ownership, disposition, use, management, maintenance, repair or operation of any rights, works or other property of a kind which may be lawfully acquired or owned by the District.

      (l) To acquire the right to store water in any reservoirs, or to carry water through any canal, ditch or conduit not owned or controlled by the District, and to grant to any owner or lessee the right to the use of any water or right to store such water in any reservoir of the District, or to carry such water through any tunnel, canal, ditch or conduit of the District.

      (m) To enter into and do any acts necessary or proper for the performance of any agreement with any district of any kind, public or private corporation, association, firm or natural person, or any number of them, for the transfer or delivery to any district, corporation, association, firm or natural person of any water right or water pumped, stored, appropriated or otherwise acquired or secured for the use of the District, or for the purpose of exchanging the water or water right for any other water, water right or water supply to be delivered to the District by the other party to the agreement.

 


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

ê2007 Statutes of Nevada, Page 3400 (Chapter 542, SB 222)ê

 

natural person of any water right or water pumped, stored, appropriated or otherwise acquired or secured for the use of the District, or for the purpose of exchanging the water or water right for any other water, water right or water supply to be delivered to the District by the other party to the agreement.

      (n) To cooperate and act in conjunction with the State of Nevada or any of its engineers, officers, boards, commissions, departments or agencies, with the Government of the United States or any of its engineers, officers, boards, commissions, departments or agencies, or with any public or private corporation, to construct any work for the development, importation or distribution of water of the District, for the protection of life or property therein, or for the conservation of its water for beneficial use within the District, or to carry out any other works, acts or purposes provided for in sections 1 to 12, inclusive, of this act, and to adopt and carry out any definite plan or system of work for any of the purposes described in sections 1 to 12, inclusive, of this act.

      (o) To store water in surface or underground reservoirs within or without the District for the common benefit of the District, to conserve and reclaim water for present and future use within the District, to appropriate and acquire water and water rights and import water into the District for any useful purpose to the District, and to commence, maintain, intervene in and compromise in the name of the District, or otherwise, and assume the costs and expenses of any action or proceeding involving or affecting:

             (1) The ownership or use of water or water rights within or without the District used or useful for any purpose of the District or of common benefit to any land situated therein. A supermajority vote of the Board and a simple majority vote of all the members of the Commission is required before the District may apply to the State Engineer for a permit to:

                   (I) Appropriate water where the point of diversion is within a hydrographic basin located in Nye County and the place of use is a location outside of the same hydrographic basin; or

                   (II) Change the place of use of water already appropriated from any point within a hydrographic basin located in Nye County to a location outside the same hydrographic basin.

             (2) The wasteful use of water within the District.

             (3) The interference with or diminution of water or water rights within the District.

             (4) The contamination or pollution of the surface or subsurface water used in the District or any other act that otherwise renders such water unfit for beneficial use.

             (5) The interference with this water that may endanger or damage the residents, lands or use of water in the District.

      (p) To sell and distribute water under the control of the District, without preference, to any natural person, firm, corporation, association, district, agency or inhabitant, public or private, for use within the service area, to fix, establish and adjust rates, classes of rates, terms and conditions for the sale and use of such water, and to sell water for use outside the service area upon a finding by the Board that there is a surplus of water above that amount required to serve customers within the service area.

      (q) To cause taxes to be levied and collected for the purposes prescribed in sections 1 to 12, inclusive, of this act, including, without limitation, the payment of any obligation of the District during its organizational state and thereafter, and necessary engineering costs, and to assist in the operational expenses of the District, until such taxes are no longer required.

 


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

ê2007 Statutes of Nevada, Page 3401 (Chapter 542, SB 222)ê

 

thereafter, and necessary engineering costs, and to assist in the operational expenses of the District, until such taxes are no longer required.

      (r) To supplement the surface and groundwater resources of Nye County by the importation and use of water from other sources for industrial, irrigation, municipal and domestic uses.

      (s) To restrict the use of water of the District during any emergency caused by drought or other threatened or existing water shortage, and to prohibit the waste of water of the District at any time through the adoption of ordinances, rules or regulations and the imposition of fines for violations of those ordinances, rules and regulations.

      (t) To supply water under a contract or agreement, or in any other manner, to the United States or any department or agency thereof, the State of Nevada, Nye County, and any city, town, corporation, association, partnership or natural person situated in Nye County, for an appropriate charge, consideration or exchange made thereof, when such supply is available or can be developed as an incident of or in connection with the primary functions and operations of the District.

      (u) To create assessment districts to extend mains, improve distribution systems and acquire presently operating private water companies and mutual water distribution systems.

      (v) To accept from the Government of the United States or any of its agencies financial assistance or participation in the form of grants-in-aid or any other form in connection with any of the functions of the District.

      (w) To do all acts and things reasonably implied from and necessary for the full exercise of all powers of the District granted by sections 1 to 12, inclusive, of this act.

      2.  As used in this section, “supermajority” means an affirmative vote of not less than five of the seven members of the Board.

      Sec. 9.  1.  The Board shall:

      (a) Choose one of its members to be Chairman, and prescribe the term of that office and the powers and duties thereof.

      (b) Fix the time and place at which its regular meetings will be held and provide for the calling and conduct of special meetings.

      (c) Fix the location of the principal place of business of the District.

      (d) Elect a Secretary-Treasurer of the Board and the District, who may or may not be a member of the Board.

      (e) Appoint a General Manager who must not be a member of the Board.

      (f) Delegate and redelegate to officers of the District the power to employ necessary executives, clerical workers, engineering assistants and laborers, and to retain legal, accounting or engineering services, subject to such conditions and restrictions as may be imposed by the Board.

      (g) Prescribe the powers, duties, compensation and benefits of all officers and employees of the District, and require all bonds necessary to protect the money and property of the District.

      (h) Take all actions and do all things reasonably and lawfully necessary to conduct the business of the District and achieve the purposes of sections 1 to 12, inclusive, of this act.

      2.  A simple majority of the members of the Board constitutes a quorum. Except as otherwise provided in section 8 of this act, a quorum may exercise all the power and authority conferred on the Board.

      3.  Any person who is aggrieved by any decision of the Board pursuant to sections 1 to 12, inclusive, of this act may appeal to the Commission within 30 days after the decision of the Board.

 


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

ê2007 Statutes of Nevada, Page 3402 (Chapter 542, SB 222)ê

 

within 30 days after the decision of the Board. The Commission may affirm, modify or reverse the decision of the Board.

      4.  Members of the Board are entitled to receive reasonable compensation and travel expenses, as set by the Commission, for their attendance at meetings and conduct of other business of the District.

      Sec. 10.  1.  The Board may levy and collect general ad valorem taxes on all taxable property within the District, but only for the payment of principal and interest on its general obligations. Such a levy and collection must be made in conjunction with Nye County in the manner prescribed in this section.

      2.  The Board shall determine the amount of money necessary to be raised by taxation for a particular year in addition to other sources of revenue of the District. The Board then shall fix a rate of levy which, when applied to the assessed valuation of all taxable property within the District, will produce an amount, when combined with other revenues of the District, sufficient to pay, when due, all principal of and interest on general obligations of the District and any defaults or deficiencies relating thereto.

      3.  In accordance with and in the same manner required by the law applicable to incorporated cities, the Board shall certify the rate of levy fixed pursuant to subsection 2 for levy upon all taxable property within the District in accordance with such rate at the time and in the manner required by law for levying of taxes for county purposes.

      4.  The proper officer or authority of Nye County, upon behalf of the District, shall levy and collect the tax for the District specified in subsection 3. Such a tax must be collected in the same manner, including, without limitation, interest and penalties, as other taxes collected by the County. When collected, the tax must be paid to the District in monthly installments for deposit in the appropriate depository of the District.

      5.  If the taxes levied are not paid, the property subject to the tax lien must be sold and the proceeds of the sale paid to the District in accordance with the law applicable to tax sales and redemptions.

      Sec. 11.  The District is exempt from regulation by the Public Utilities Commission of Nevada.

      Sec. 12.  If any provision of sections 1 to 12, inclusive, of this act or the application thereof to any person, thing or circumstance is held invalid, such invalidity does not affect the provisions or application of sections 1 to 12, inclusive, of this act that can be given effect without the invalid provision or application, and to this end the provisions of sections 1 to 12, inclusive, of this act are declared to be severable.

      Sec. 13.  As soon as practicable after July 1, 2007, the Board of County Commissioners of Nye County shall appoint the members of the Governing Board of the Nye County Water District created pursuant to section 6 of this act to initial terms as follows:

      1.  Three members to terms that expire on July 1, 2008; and

      2.  Four members to terms that expire on July 1, 2009.

      Sec. 14.  This act becomes effective on July 1, 2007.

________

 


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

ê2007 Statutes of Nevada, Page 3403ê

 

CHAPTER 543, AB 196

Assembly Bill No. 196–Assemblymen Marvel, Mabey, Arberry and Settelmeyer

 

CHAPTER 543

 

AN ACT relating to state financial administration; exempting from the limitation on the proposed expenditures of the Executive Department of the State Government any expenditures for the purpose of reducing an unfunded accrued liability of the State Retirees’ Health and Welfare Benefits Fund; and providing other matters properly relating thereto.

 

[Approved: June 18, 2007]

 

Legislative Counsel’s Digest:

      Existing law requires the Chief of the Budget Division of the Department of Administration to prepare a proposed budget for the Executive Department of the State Government. (NRS 353.185) Under existing law, the proposed total expenditures in this proposed budget, excluding proposed expenditures for construction, cannot exceed a certain amount. (NRS 353.213) This bill provides that expenditures to reduce any unfunded accrued liability of the State Retirees’ Health and Welfare Benefits Fund are excluded from the limitation on proposed total expenditures.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 353.213 is hereby amended to read as follows:

      353.213  1.  In preparing the proposed budget for the Executive Department of the State Government for each biennium, the Chief shall not exceed the limit upon total proposed expenditures for purposes other than construction and reducing any unfunded accrued liability of the State Retirees’ Health and Welfare Benefits Fund created by section 4 of Senate Bill No. 547 of the 74th Session of the Nevada Legislature from the State General Fund calculated pursuant to this section. The base for each biennium is the total expenditure, for the purposes limited, from the State General Fund appropriated and authorized by the Legislature for the biennium beginning on July 1, 1975.

      2.  The limit for each biennium is calculated as follows:

      (a) The amount of expenditure constituting the base is multiplied by the percentage of change in population for the current biennium from the population on July 1, 1974, and this product is added to or subtracted from the amount of expenditure constituting the base.

      (b) The amount calculated pursuant to paragraph (a) is multiplied by the percentage of inflation or deflation, and this product is added to or subtracted from the amount calculated pursuant to paragraph (a).

      (c) Subject to the limitations of this paragraph:

             (1) If the amount resulting from the calculations pursuant to paragraphs (a) and (b) represents a net increase over the base biennium, the Chief may increase the proposed expenditure accordingly.

             (2) If the amount represents a net decrease, the Chief shall decrease the proposed expenditure accordingly.

 


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

ê2007 Statutes of Nevada, Page 3404 (Chapter 543, AB 196)ê

 

             (3) If the amount is the same as in the base biennium, that amount is the limit of permissible proposed expenditure.

Ê The proposed budget for each fiscal year of the biennium must provide for a reserve of not less than 5 percent nor more than 10 percent of the total of all proposed appropriations from the State General Fund for the operation of all departments, institutions and agencies of the State Government and authorized expenditures from the State General Fund for the regulation of gaming for that fiscal year.

      3.  The revised estimate of population for the State issued by the United States Department of Commerce as of July 1, 1974, must be used, and the Governor shall certify the percentage of increase or decrease in population for each succeeding biennium. The Consumer Price Index published by the United States Department of Labor for July preceding each biennium must be used in determining the percentage of inflation or deflation.

      4.  The Chief may exceed the limit to the extent necessary to meet situations in which there is a threat to life or property.

      5.  As used in this section, “unfunded accrued liability” means a liability with an actuarially determined value which exceeds the value of the assets in the fund from which payments are made to discharge the liability.

________

 

CHAPTER 544, AB 393

Assembly Bill No. 393–Assemblywoman Buckley

 

CHAPTER 544

 

AN ACT relating to motor vehicles; amending provisions relating to the wrecking and salvaging of vehicles; requiring that a transferor of an interest in a motor vehicle indicate if the vehicle is a rebuilt vehicle or a reconstructed vehicle; providing that a person shall be deemed to be engaged in a deceptive trade practice for certain activities involving the repair of a motor vehicle under certain circumstances; creating a revolving account for the Bureau of Consumer Protection in the Office of the Attorney General; authorizing the Commissioner of Consumer Affairs or the Director of the Department of Motor Vehicles to request an undercover investigation of a person for allegedly engaging in certain deceptive trade practices or violating certain provisions governing garages; providing a penalty; and providing other matters properly relating thereto.

 

[Approved: June 18, 2007]

 

Legislative Counsel’s Digest:

      Section 3 of this bill sets forth the conditions under which an automobile wrecker, operator of a salvage pool, garageman or owner of a body shop is unfit to hold a license or registration, as applicable.

      Section 4 of this bill set forth the conditions under which a salvage vehicle is considered to be in its entirety as opposed to when it is considered to be in parts.

      Section 37 of this bill requires that a transferor of an interest in a motor vehicle indicate if the motor vehicle is a rebuilt or reconstructed motor vehicle.

 


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

ê2007 Statutes of Nevada, Page 3405 (Chapter 544, AB 393)ê

 

      Existing law provides for regulation of garages and garagemen by the Commissioner of Consumer Affairs and their registration with the Department of Motor Vehicles. (NRS 487.530-487.570, 597.480-597.590) Sections 39-44 of this bill make certain provisions concerning deceptive trade practices applicable to garages and garagemen. Section 41 of this bill authorizes the Commissioner or the Director of the Department to request an undercover investigation of a person by the Bureau of Consumer Protection in the Office of the Attorney General for alleged violations of those provisions. Section 31 of this bill authorizes the Director to suspend, revoke or refuse to renew a registration to operate a garage if he determines that the garage has engaged in a deceptive trade practice or violated certain provisions governing garages. Section 44 of this bill requires the Commissioner to prepare an annual report concerning garages and garagemen.

 

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 the provisions set forth as sections 2 to 19, inclusive, of this act.

      Sec. 2.  As used in this section, NRS 487.050 to 487.200, inclusive, and sections 3 and 4 of this act, unless the context otherwise requires, “automobile wrecker” or “wrecker” means a person who obtains a license to dismantle, scrap, process or wreck any vehicle, including, without limitation, wrecked, salvage, nonrepairable, abandoned and junk vehicles, which includes, without limitation, removing or selling an individual part or parts of such a vehicle or crushing, shredding or dismantling such a vehicle to be disposed of as scrap metal.

      Sec. 3.  Evidence of unfitness of an applicant, registrant or licensee for purposes of denial, suspension or revocation of or failure to renew a license or registration as an automobile wrecker, operator of a salvage pool, garageman or owner of a body shop may consist of, but is not limited to, the applicant, registrant or licensee:

      1.  Purchasing, selling, dismantling, disposing of or having in his possession any vehicle which he knows, or a reasonable person should know, is stolen or otherwise illegally appropriated.

      2.  Being the former holder of, or being a partner, officer, director, owner or manager involved in management decisions of, an automobile wrecker that held a license issued pursuant to this chapter which was revoked for cause and never reissued or was suspended upon terms which were never fulfilled.

      3.  Defrauding or attempting to defraud the State or a political subdivision of the State of any taxes or fees in connection with the sale or transfer of a vehicle.

      4.  Forging the signature of the registered or legal owner of an abandoned vehicle on any document that releases the interest of the owner in the abandoned vehicle.

      5.  Forging the signature of the registered or legal owner of a vehicle on a certificate of title or other document to obtain or transfer ownership in that vehicle.

      6.  Willfully failing to deliver to a purchaser a salvage title to a vehicle that the applicant, registrant or licensee has sold.

      7.  Refusing to allow any peace officer or agent of the state agency to inspect, during normal business hours, all books, records and files of the applicant, registrant or licensee which are maintained within the State.

 


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

ê2007 Statutes of Nevada, Page 3406 (Chapter 544, AB 393)ê

 

      8.  Committing any fraud which includes, without limitation:

      (a) Misrepresenting in any manner, whether intentional or grossly negligent, a material fact.

      (b) Intentionally failing to disclose a material fact.

      9.  Willfully failing to comply with any regulation adopted by the Department.

      Sec. 4.  1.  Whenever an entire salvage vehicle is sold to any person by a licensed automobile wrecker, the automobile wrecker shall deliver a properly endorsed salvage title to the buyer for such an entire salvage vehicle.

      2.  A salvage vehicle shall be deemed an entire salvage vehicle:

      (a) If all the following essential components are included and identifiable as coming from the same salvage vehicle:

             (1) The cowl assembly;

             (2) The floor pan assembly;

             (3) The passenger compartment;

             (4) The rear clip assembly; and

             (5) The roof assembly; and

      (b) In addition to the essential components required pursuant to paragraph (a):

             (1) If the salvage vehicle was manufactured with a conventional frame, the conventional frame is included and identifiable as coming from the same salvage vehicle;

             (2) If the salvage vehicle was manufactured with a unibody, the complete front inner structure is included and identifiable as coming from the same salvage vehicle;

             (3) If the salvage vehicle is a truck which was manufactured with a conventional frame, the conventional frame and the truck cab assembly are included and identifiable as coming from the same salvage vehicle; and

             (4) If the salvage vehicle is a truck which was manufactured with a unibody, the complete front inner structure and the truck cab assembly are included and identifiable as coming from the same salvage vehicle.

      3.  A salvage vehicle that does not satisfy the requirements of subsection 2 is deemed a part or parts of an entire salvage vehicle.

      Secs. 5-20.  (Deleted by amendment.)

      Sec. 21.  NRS 487.001 is hereby amended to read as follows:

      487.001  1.  The provisions of this chapter, except NRS [487.035 and] 487.290, apply to mobile homes although not licensed or registered.

      2.  As used in this section, “mobile home” means a vehicular structure, built on a chassis or frame, which is designed to be used with or without a permanent foundation and is capable of being drawn by a motor vehicle. The term does not include a recreational park trailer as defined in NRS 482.1005.

      Sec. 22.  NRS 487.160 is hereby amended to read as follows:

      487.160  1.  The Department [, after notice and hearing,] may suspend, revoke or refuse to renew a license of an automobile wrecker upon determining that the automobile wrecker:

      (a) Is not lawfully entitled thereto;

      (b) Has made, or knowingly or negligently permitted, any illegal use of that license;

      (c) Has failed to return a salvage title to the state agency when and as required of him by NRS 487.710 to 487.890, inclusive; or

 


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

ê2007 Statutes of Nevada, Page 3407 (Chapter 544, AB 393)ê

 

      (d) Has failed to surrender to the state agency certificates of title for vehicles before beginning to dismantle or wreck the vehicles.

      2.  The applicant or licensee may, within 30 days after receipt of the notice of refusal, suspension or revocation, petition the Department in writing for a hearing.

      3.  Hearings under this section and appeals therefrom must be conducted in the manner prescribed in NRS 482.353 and 482.354.

      4.  The Department may suspend, revoke or refuse to renew a license of an automobile wrecker, or may deny a license to an applicant therefor, for any reason determined by the Director to be in the best interest of the public, or if the licensee or applicant:

      (a) Does not have or maintain an established place of business in this State.

      (b) Made a material misstatement in any application.

      (c) Willfully fails to comply with any applicable provision of this chapter.

      (d) Fails to furnish and keep in force any bond required by NRS 487.050 to 487.200, inclusive.

      (e) Fails to discharge any final judgment entered against him when the judgment arises out of any misrepresentation of a vehicle, trailer or semitrailer.

      (f) Fails to maintain any license or bond required by a political subdivision of this State.

      (g) Has been convicted of a felony.

      (h) Has been convicted of a misdemeanor or gross misdemeanor for a violation of a provision of this chapter.

      (i) Fails or refuses to provide to the Department an authorization for the disclosure of financial records for the business as required pursuant to subsection 7.

      (j) Knowingly submits or causes to be submitted any false, forged or otherwise fraudulent document to the Department to obtain a lien, title, salvage title or certificate of ownership, or any duplicate thereof, for a vehicle.

      (k) Knowingly causes or allows a false, forged or otherwise fraudulent document to be maintained as a record of his business.

      (l) Interferes with or refuses to allow an agent of the Department or any peace officer access to and, upon demand, the opportunity to examine any record held in conjunction with the operation of the wrecker.

      (m) Displays evidence of unfitness for a license pursuant to section 3 of this act.

      5.  If an application for a license as an automobile wrecker is denied, the applicant may not submit another application for at least 6 months after the date of the denial.

      6.  The Department may refuse to review a subsequent application for licensing submitted by any person who violates any provision of this chapter.

      7.  Upon the receipt of any report or complaint alleging that an applicant or a licensee has engaged in financial misconduct or has failed to satisfy any financial obligation related to the business of dismantling, scrapping, processing or wrecking of vehicles, the Department may require the applicant or licensee to submit to the Department an authorization for the disclosure of financial records for the business as provided in NRS 239A.090. The Department may use any information obtained pursuant to such an authorization only to determine the suitability of the applicant or licensee for initial or continued licensure.

 


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

ê2007 Statutes of Nevada, Page 3408 (Chapter 544, AB 393)ê

 

such an authorization only to determine the suitability of the applicant or licensee for initial or continued licensure. Information obtained pursuant to such an authorization may be disclosed only to those employees of the Department who are authorized to issue a license to an applicant pursuant to NRS 487.050 to 487.200, inclusive, and sections 2, 3 and 4 of this act or to determine the suitability of an applicant or a licensee for such licensure.

      8.  For the purposes of this section, failure to adhere to the directives of the state agency advising the licensee of his noncompliance with any provision of NRS 487.050 to 487.200, inclusive, and sections 2, 3 and 4 of this act or NRS 487.710 to 487.890, inclusive, or regulations of the state agency, within 10 days after the receipt of those directives, is prima facie evidence of willful failure to comply.

      Sec. 23.  NRS 487.170 is hereby amended to read as follows:

      487.170  Every licensed automobile wrecker, rebuilder or scrap processor shall maintain a record of all vehicles acquired and processed, junked, dismantled [or wrecked, which contains the name and] , wrecked, sold as a part or parts or disposed of as scrap metal. The records must be open to inspection during business hours by any peace officer or investigator of the state agency. Every vehicle record must contain:

      1.  The name, address and original signature of the person from whom the vehicle was [purchased or acquired and the date thereof, the] acquired, until such time as the original signature is submitted to the Department, at which time the record must contain a duplicate of the signature;

      2.  The date the vehicle was acquired;

      3.  The manner in which the vehicle was acquired by the wrecker, rebuilder or scrap processor;

      4.  The registration number last assigned to the vehicle ; and [a]

      5.  A brief description of the vehicle, including, insofar as the data may exist with respect to a given vehicle, the make, type, serial number and motor number, or any other number of the vehicle. [The record must be open to inspection during business hours by any peace officer or investigator of the state agency.]

      Sec. 24.  NRS 487.200 is hereby amended to read as follows:

      487.200  Any person who violates any of the provisions of NRS 487.050 to 487.200, inclusive, and sections 2, 3 and 4 of this act is guilty of a misdemeanor.

      Sec. 25.  NRS 487.260 is hereby amended to read as follows:

      487.260  1.  If the vehicle is appraised at a value of more than $500 , the state agency or political subdivision shall dispose of it as provided in NRS 487.270.

      2.  If the vehicle is appraised as a junk vehicle, the Department may issue a junk certificate to the automobile wrecker or tow operator who removed the vehicle.

      3.  An automobile wrecker who possesses a junk certificate for a junk vehicle may dismantle, scrap, crush or otherwise destroy the vehicle.

      4.  A vehicle for which a junk certificate has been issued may be sold to an automobile wrecker by the person to whom the junk certificate was issued by the seller’s endorsement on the certificate. An automobile wrecker who purchases a vehicle for which a junk certificate has been issued shall immediately affix the business name of the automobile wrecker as purchaser to the first available space provided on the reverse side of the certificate.

 


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

ê2007 Statutes of Nevada, Page 3409 (Chapter 544, AB 393)ê

 

certificate. For the purposes of this subsection, such an automobile wrecker is the owner of the junk vehicle.

      5.  If insufficient space exists on the reverse side of a junk certificate to transfer the vehicle pursuant to subsection 4, an automobile wrecker who purchases a junk vehicle for which a junk certificate has been previously issued shall, within 10 days after purchase, apply to the Department for a new junk certificate and surrender the original certificate.

      [5.] 6.  A person who sells, dismantles, scraps, crushes or otherwise destroys a junk vehicle shall maintain, for at least 2 years, a copy of the junk certificate and a record of the name and address of the person from whom the vehicle was acquired and the date thereof. He shall allow any peace officer or any investigator employed by a state agency to inspect the records during business hours.

      [6.] 7.  As used in this section, “junk vehicle” means a vehicle, including component parts, which:

      (a) Has been discarded or abandoned;

      (b) Has been ruined, wrecked, dismantled or rendered inoperative;

      (c) Is unfit for further use in accordance with the original purpose for which it was constructed;

      (d) Is not registered with the Department or has not been reclaimed by the registered owner or a person having a security interest in the vehicle within 15 days after notification pursuant to NRS 487.250; and

      (e) Has value principally as scrap which does not exceed $200.

      Sec. 26.  NRS 487.490 is hereby amended to read as follows:

      487.490  1.  The Department may refuse to issue a license or [, after notice and hearing,] may suspend, revoke or refuse to renew a license of an operator of a salvage pool upon determining that the operator:

      (a) Is not lawfully entitled to the license;

      (b) Has made, or knowingly or negligently permitted, any illegal use of that license;

      (c) Made a material misstatement in any application;

      (d) Willfully fails to comply with any provision of NRS 487.400 to 487.510, inclusive;

      (e) Fails to discharge any final judgment entered against him when the judgment arises out of any misrepresentation regarding a vehicle;

      (f) Fails to maintain any license or bond required by a political subdivision of this State;

      (g) Has been convicted of a felony;

      (h) Has been convicted of a misdemeanor or gross misdemeanor for a violation of a provision of this chapter; [or]

      (i) Fails or refuses to provide to the Department an authorization for the disclosure of financial records for the business as required pursuant to subsection 6 [.] ;or

      (j) Displays evidence of unfitness for a license pursuant to section 3 of this act.

      2.  The applicant or licensee may, within 30 days after receipt of the notice of refusal to grant or renew or the suspension or revocation of a license, petition the Department in writing for a hearing.

      3.  Hearings under this section and appeals therefrom must be conducted in the manner prescribed in NRS 482.353 and 482.354.

 


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

ê2007 Statutes of Nevada, Page 3410 (Chapter 544, AB 393)ê

 

      4.  If an application for a license as an operator of a salvage pool is denied, the applicant may not submit another application for at least 6 months after the date of the denial.

      5.  The Department may refuse to review a subsequent application for licensing submitted by any person who violates any provision of NRS 487.400 to 487.510, inclusive.

      6.  Upon the receipt of any report or complaint that an applicant or a licensee has engaged in financial misconduct or has failed to satisfy financial obligations related to the operation of a salvage pool, the Department may require the applicant or licensee to submit to the Department an authorization for the disclosure of financial records for the business as provided in NRS 239A.090. The Department may use any information obtained pursuant to such an authorization only to determine the suitability of the applicant or licensee for initial or continued licensure. Information obtained pursuant to such an authorization may be disclosed only to those employees of the Department who are authorized to issue a license to an applicant pursuant to NRS 487.400 to 487.510, inclusive, or to determine the suitability of an applicant or a licensee for such licensure.

      7.  For the purposes of this section, the failure to adhere to the directives of the Department advising the licensee of his noncompliance with any provision of NRS 487.400 to 487.510, inclusive, or regulations of the Department, within 10 days after the receipt of those directives, is prima facie evidence of willful failure to comply.

      Secs. 27 and 28.  (Deleted by amendment.)

      Sec. 29.  NRS 487.560 is hereby amended to read as follows:

      487.560  1.  On and after January 1, 1998, a garageman shall register with the Department for authorization to operate a garage.

      2.  An application for registration must be on a form provided by the Department. The application must include:

      (a) The name of the applicant, including each name under which he intends to do business;

      (b) The complete street address of each location from which the applicant will be conducting business, including a designation of the location that will be his principal place of business;

      (c) A copy of the business license for each garage operated by the applicant if the county or city in which the applicant operates a garage requires such a license;

      (d) The type of repair work offered at each garage operated by the applicant;

      (e) The number of mechanics employed at each garage operated by the applicant; and

      (f) [The statement required by NRS 487.563; and

      (g)] Any other information required by the Department.

      3.  Except as otherwise provided in this subsection, for each garage operated by an applicant, the Department shall charge a fee of $25 for the issuance or renewal of registration. If an applicant operates more than one garage, he may file one application if he clearly indicates on the application the location of each garage operated by the applicant and each person responsible for the management of each garage. The Department shall waive the fee for the issuance or renewal of registration for a person that is licensed as:

 


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

ê2007 Statutes of Nevada, Page 3411 (Chapter 544, AB 393)ê

 

      (a) An authorized inspection station, authorized maintenance station or authorized station pursuant to chapter 445B of NRS;

      (b) A manufacturer, distributor, dealer or rebuilder pursuant to chapter 482 of NRS; or

      (c) An automobile wrecker, salvage pool or body shop pursuant to chapter 487 of NRS.

      4.  All fees collected pursuant to this section must be deposited with the State Treasurer to the credit of the Account for Regulation of Salvage Pools, Automobile Wreckers, Body Shops and Garages.

      5.  An applicant for registration or renewal of registration shall notify the Department of any material change in the information contained in his application for registration or renewal within 10 days after his knowledge of the change.

      Sec. 30.  NRS 487.563 is hereby amended to read as follows:

      487.563  1.  Each person who submits an application for registration pursuant to the provisions of NRS 487.560 [must include in the application a written statement to the Department that specifies whether he agrees to submit to binding arbitration any claims against him arising out of a contract for repairs made by him to a motor vehicle. If the person fails to submit the statement to the Department or specifies in the statement that he does not agree to arbitrate those claims, the person] shall file with the Department a bond in the amount of $5,000, with a corporate surety for the bond that is licensed to do business in this State. The form of the bond must be approved by the Attorney General and be conditioned upon whether the applicant conducts his business as an owner or operator of a garage without fraud or fraudulent representation and in compliance with the provisions of NRS [487.035,] 487.530 to 487.570, inclusive, and 597.480 to 597.590, inclusive [.] , and sections 39 to 44, inclusive, of this act.

      2.  The bond must be continuous in form and the total aggregate liability on the bond must be limited to the payment of the total amount of the bond.

      3.  The bond must provide that any person injured by the action of the garageman may:

      (a) Apply to the Director for compensation from the bond. The Director, for good cause shown and after notice and opportunity for hearing, may determine the amount of compensation and the person to whom it is to be paid. The surety shall then make payment.

      (b) Present to the Director an order of a court requiring the Director to pay to the person an amount of compensation from the bond. The Director shall inform the surety, and the surety shall then make payment.

      4.  In lieu of a bond required to be filed pursuant to the provisions of subsection 1, a person may deposit with the Department, pursuant to the terms prescribed by the Department:

      (a) A like amount of money or bonds of the United States or of the State of Nevada of an actual market value of not less than the amount fixed by the Department; or

      (b) A savings certificate of a bank or savings and loan association located in this State, which must indicate an account of an amount equal to the amount of the bond that would otherwise be required pursuant to this section and that the amount is unavailable for withdrawal except upon order of the Department. Interest earned on the certificate accrues to the account of the applicant.

 


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

ê2007 Statutes of Nevada, Page 3412 (Chapter 544, AB 393)ê

 

      [4.  If a claim is arbitrated pursuant to the provisions of this section, the proceedings for arbitration must be conducted in accordance with the provisions of NRS 38.206 to 38.248, inclusive.

      5.  If a person:

      (a) Submits the statement to the Department specifying that he agrees to arbitrate a claim pursuant to the provisions of subsection 1; and

      (b) Fails to submit to binding arbitration any claim specified in that subsection,

Ê the person asserting the claim may notify the Department of that fact. Upon receipt of the notice, the Department shall, after notice and hearing, revoke or refuse to renew the certificate of registration of the person who failed to submit the claim to arbitration.

      6.]  5.  A deposit made pursuant to subsection 4 may be disbursed by the Director, for good cause shown and after notice and opportunity for hearing, in an amount determined by him to compensate a person injured by an action of the garageman or released upon receipt of:

      (a) An order of a court requiring the Director to release all or a specified portion of the deposit; or

      (b) A statement signed by the person under whose name the deposit is made and acknowledged before any person authorized to take acknowledgments in this State, requesting that the Director release the deposit, or a specified portion thereof, and stating the purpose for which the release is requested.

      6.  If a person fails to comply with an order of a court that relates to the repair of a motor vehicle, or fails to pay or otherwise discharge any final judgment rendered and entered against him or any court order issued and arising out of the repair of a motor vehicle in the operation of a garage, the Department shall [, after notice and hearing,] revoke or refuse to renew the certificate of registration of the person who failed to comply with the order [.] or satisfy the judgment.

      7.  The Department may reinstate or renew a certificate of registration that is [:

      (a) Revoked pursuant to the provisions of subsection 5 if the person whose certificate of registration is revoked:

             (1) Submits the claim to arbitration pursuant to the provisions of subsection 4 and notifies the Department of that fact; or

             (2) Files a bond or makes a deposit with the Department pursuant to the provisions of this section.

      (b) Revoked] revoked pursuant to the provisions of subsection 6 if the person whose certificate of registration is revoked complies with the order of the court.

      8.  A garageman whose registration has been revoked pursuant to the provisions of subsection 6 shall furnish to the Department a bond in the amount specified in subsection 1 before the reinstatement of his registration.

      Sec. 31.  NRS 487.564 is hereby amended to read as follows:

      487.564  1.  The Department may refuse to issue a registration or [, after notice and hearing,] may suspend, revoke or refuse to renew a registration to operate a garage upon any of the following grounds:

      (a) A false statement of a material fact in a certification for a salvage vehicle required pursuant to NRS 487.800.

 


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

ê2007 Statutes of Nevada, Page 3413 (Chapter 544, AB 393)ê

 

      (b) A false statement or certification for an inspection pursuant to NRS 487.800 which attests to the mechanical fitness or safety of a salvage vehicle.

      (c) The Director determines that the garage or garageman has engaged in a deceptive trade practice or violated the provisions of NRS 597.480 to 597.590, inclusive, and sections 39 to 44, inclusive, of this act.

      (d) Evidence of unfitness of the applicant or registrant pursuant to section 3 of this act.

      (e) A violation of any regulation adopted by the Department governing the operation of a garage.

      (f) A violation of any statute or regulation that constitutes fraud in conjunction with the repair of a motor vehicle or operation of a garage.

      2.  A person for whom a certificate of registration has been suspended or revoked pursuant to the provisions of this section, subsection 6 of NRS 487.563 or similar provisions of the laws of any other state or territory of the United States shall not be employed by, or in any manner affiliated with, the operation of a garage subject to registration in this State.

      3.  As used in this section, “salvage vehicle” has the meaning ascribed to it in NRS 487.770.

      Sec. 32.  NRS 487.565 is hereby amended to read as follows:

      487.565  1.  If the Department receives an application for registration that contains the information required by NRS 487.560, it shall issue to the applicant a certificate of registration for each garage operated by the applicant. The certificate must contain the name of the applicant, the name under which his business will be conducted, the address of his business and the registration number for the garage.

      2.  A certificate of registration is valid for 1 year after the date of issuance. A garageman may renew his registration by submitting to the Department:

      (a) An application for renewal on a form provided by the Department; and

      (b) Except as otherwise provided in NRS 487.560, the fee for renewal set forth in that section.

[Ê The application must include the statement required by NRS 487.563.]

      Sec. 33.  (Deleted by amendment.)

      Sec. 34.  NRS 487.570 is hereby amended to read as follows:

      487.570  A garageman shall comply with the provisions of NRS 597.480 to 597.590, inclusive [.] and sections 39 to 44, inclusive, of this act.

      Sec. 35.  NRS 487.640 is hereby amended to read as follows:

      487.640  1.  No license may be issued to an operator of a body shop until he procures and files with the Department a good and sufficient bond in the amount of $10,000, with a corporate surety thereon licensed to do business in the State of Nevada, approved as to form by the Attorney General, and conditioned that the applicant shall conduct his business as an operator of a body shop without fraud or fraudulent representation, and in compliance with the provisions of NRS [487.035,] 487.600 to 487.690, inclusive, and 597.480 to 597.590, inclusive [.] , and sections 39 to 44, inclusive, of this act. The Department may, by agreement with any operator of a body shop who has been licensed by the Department for 5 years or more, allow a reduction in the amount of the bond of the operator, if the business of the operator has been conducted satisfactorily for the preceding 5 years, but no bond may be in an amount less than $1,000.

 


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

ê2007 Statutes of Nevada, Page 3414 (Chapter 544, AB 393)ê

 

      2.  The bond may be continuous in form and the total aggregate liability on the bond must be limited to the payment of the total amount of the bond.

      3.  The bond must provide that any person injured by the action of the operator of the body shop in violation of any of the provisions of NRS [487.035,] 487.600 to 487.690, inclusive, and 597.480 to 597.590, inclusive, and sections 39 to 44, inclusive, of this act, may apply to the Director for compensation from the bond. The Director, for good cause shown and after notice and opportunity for hearing, may determine the amount of compensation and the person to whom it is to be paid. The surety shall then make the payment.

      4.  In lieu of a bond an operator of a body shop may deposit with the Department, under the terms prescribed by the Department:

      (a) A like amount of money or bonds of the United States or of the State of Nevada of an actual market value of not less than the amount fixed by the Department; or

      (b) A savings certificate of a bank, credit union or savings and loan association situated in Nevada, which must indicate an account of an amount equal to the amount of the bond which would otherwise be required by this section and that this amount is unavailable for withdrawal except upon order of the Department. Interest earned on the certificate accrues to the account of the applicant.

      5.  A deposit made pursuant to subsection 4 may be disbursed by the Director, for good cause shown and after notice and opportunity for hearing, in an amount determined by him to compensate a person injured by an action of the licensee, or released upon receipt of:

      (a) An order of a court requiring the Director to release all or a specified portion of the deposit; or

      (b) A statement signed by the person under whose name the deposit is made and acknowledged before any person authorized to take acknowledgments in this State, requesting the Director to release the deposit, or a specified portion thereof, and stating the purpose for which the release is requested.

      6.  When a deposit is made pursuant to subsection 4, liability under the deposit is in the amount prescribed by the Department. If the amount of the deposit is reduced or there is an outstanding judgment of a court for which the licensee is liable under the deposit, the license is automatically suspended. The license must be reinstated if the licensee:

      (a) Files an additional bond pursuant to subsection 1;

      (b) Restores the deposit with the Department to the original amount required under this section; or

      (c) Satisfies the outstanding judgment for which he is liable under the deposit.

      7.  A deposit made pursuant to subsection 4 may be refunded:

      (a) By order of the Director, 3 years after the date the licensee ceases to be licensed by the Department, if the Director is satisfied that there are no outstanding claims against the deposit; or

      (b) By order of court, at any time within 3 years after the date the licensee ceases to be licensed by the Department, upon evidence satisfactory to the court that there are no outstanding claims against the deposit.

      8.  Any money received by the Department pursuant to subsection 4 must be deposited with the State Treasurer for credit to the Motor Vehicle Fund.

 


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

ê2007 Statutes of Nevada, Page 3415 (Chapter 544, AB 393)ê

 

      Sec. 36.  NRS 487.650 is hereby amended to read as follows:

      487.650  1.  The Department may refuse to issue a license or [, after notice and hearing,] may suspend, revoke or refuse to renew a license to operate a body shop upon any of the following grounds:

      (a) Failure of the applicant or licensee to have or maintain an established place of business in this State.

      (b) Conviction of the applicant or licensee or an employee of the applicant or licensee of a felony, or of a misdemeanor or gross misdemeanor for a violation of a provision of this chapter.

      (c) Any material misstatement in the application for the license.

      (d) Willful failure of the applicant or licensee to comply with the motor vehicle laws of this State and NRS [487.035,] 487.610 to 487.690, inclusive, or 597.480 to 597.590, inclusive [.] and sections 39 to 44, inclusive, of this act.

      (e) Failure or refusal by the licensee to pay or otherwise discharge any final judgment against him arising out of the operation of the body shop.

      (f) Failure or refusal to provide to the Department an authorization for the disclosure of financial records for the business as required pursuant to subsection 2.

      (g) A finding of guilt by a court of competent jurisdiction in a case involving a fraudulent inspection, purchase, sale or transfer of a salvage vehicle by the applicant or licensee or an employee of the applicant or licensee.

      (h) An improper, careless or negligent inspection of a salvage vehicle pursuant to NRS 487.800 by the applicant or licensee or an employee of the applicant or licensee.

      (i) A false statement of material fact in a certification of a salvage vehicle pursuant to NRS 487.800 or a record regarding a salvage vehicle by the applicant or licensee or an employee of the applicant or licensee.

      (j) The display of evidence of unfitness for a license pursuant to section 3 of this act.

      2.  Upon the receipt of any report or complaint alleging that an applicant or a licensee has engaged in financial misconduct or has failed to satisfy financial obligations related to the operation of a body shop, the Department may require the applicant or licensee to submit to the Department an authorization for the disclosure of financial records for the business as provided in NRS 239A.090. The Department may use any information obtained pursuant to such an authorization only to determine the suitability of the applicant or licensee for initial or continued licensure. Information obtained pursuant to such an authorization may be disclosed only to those employees of the Department who are authorized to issue a license to an applicant pursuant to NRS 487.610 to 487.690, inclusive, or to determine the suitability of an applicant or a licensee for such licensure.

      3.  As used in this section, “salvage vehicle” has the meaning ascribed to it in NRS 487.770.

      Sec. 37.  NRS 487.830 is hereby amended to read as follows:

      487.830  1.  Any person who transfers an interest in a motor vehicle in this State shall, before the transfer, disclose in writing to the transferee any information that the transferor knows or reasonably should know concerning whether the vehicle is a salvage vehicle [.] , a rebuilt vehicle or a reconstructed vehicle, as that term is defined in NRS 482.100.

 


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

ê2007 Statutes of Nevada, Page 3416 (Chapter 544, AB 393)ê

 

      2.  If the transferor is subject to any of the provisions of NRS 482.423 to 482.4245, inclusive, the transferor shall:

      (a) Make the disclosure required by subsection 1 before executing a contract of sale or a long-term lease;

      (b) Provide a copy of the disclosure to the transferee; and

      (c) Retain the written disclosure in his records for the period specified in NRS 482.3263.

      3.  A person who violates subsection 1 is guilty of obtaining property by false pretenses as provided in NRS 205.380.

      Sec. 38.  Chapter 597 of NRS is hereby amended by adding thereto the provisions set forth as sections 39 to 44, inclusive, of this act.

      Sec. 39.  A person shall be deemed to be engaged in a “deceptive trade practice” if, in the course of his business or occupation, he:

      1.  Engages in any deceptive trade practice, as defined in NRS 598.0915 to 598.0925, inclusive, that involves the repair of a motor vehicle; or

      2.  Engages in any other acts prescribed by the Commissioner by regulation as a deceptive trade practice.

      Sec. 40.  1.  There is hereby created a revolving account for the Bureau of Consumer Protection in the Office of the Attorney General in the sum of $7,500, which must be used for the payment of expenses relating to conducting an undercover investigation of a person who is allegedly engaging in a deceptive trade practice or violating the provisions of NRS 597.480 to 597.590, inclusive, and sections 39 to 44, inclusive, of this act.

      2.  The Consumer’s Advocate appointed pursuant to NRS 228.320 shall deposit the money in the revolving account in a bank or credit union qualified to receive deposits of public money as provided by law, and the deposit must be secured by a depository bond satisfactory to the State Board of Examiners.

      3.  The Consumer’s Advocate or his designee may:

      (a) Sign all checks drawn upon the revolving account; and

      (b) Make withdrawals of cash from the revolving account.

      4.  Payments made from the revolving account must be promptly reimbursed from the legislative appropriation, if any, to the Consumer’s Advocate for the expenses relating to conducting an undercover investigation of a person who is allegedly engaging in a deceptive trade practice or violating the provisions of NRS 597.480 to 597.590, inclusive, and sections 39 to 44, inclusive, of this act. The claim for reimbursement must be processed and paid as other claims against the State are paid.

      5.  The Consumer’s Advocate shall:

      (a) Approve any disbursement from the revolving account; and

      (b) Maintain records of any such disbursement.

      Sec. 41.  1.  The Commissioner or the Director of the Department of Motor Vehicles may request an undercover investigation of a person who is allegedly engaging in a deceptive trade practice or violating the provisions of NRS 597.480 to 597.590, inclusive, and sections 39 to 44, inclusive, of this act.

      2.  The Bureau of Consumer Protection in the Office of the Attorney General may conduct an undercover investigation of a person who is allegedly engaging in a deceptive trade practice or violating the provisions of NRS 597.480 to 597.590, inclusive, and sections 39 to 44, inclusive, of this act on its own motion or upon a request received pursuant to subsection 1.

 


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

ê2007 Statutes of Nevada, Page 3417 (Chapter 544, AB 393)ê

 

this act on its own motion or upon a request received pursuant to subsection 1. Nothing in this subsection requires the Bureau to conduct an undercover investigation.

      Sec. 42.  1.  In addition to any other penalty, the Commissioner may impose an administrative fine of not more than $10,000 against any person who engages in a deceptive trade practice. The Commissioner shall provide to any person so fined an opportunity for a hearing pursuant to the provisions of NRS 233B.121.

      2.  The Commissioner may negotiate the recovery of losses by a person aggrieved by a deceptive trade practice from the garageman who or body shop that engaged in the practice in lieu of imposing an administrative fine, and may mediate any disputes between customers and garagemen or body shops.

      3.  All administrative fines collected by the Commissioner pursuant to this section must be deposited with the State Treasurer to the credit of the State Highway Fund.

      4.  Except as otherwise provided in this subsection, the administrative remedy provided in this section is not exclusive and is intended to supplement existing law. The Commissioner may not impose a fine pursuant to this section against any person who engages in a deceptive trade practice if a fine has previously been imposed against that person pursuant to NRS 598.0903 to 598.0999, inclusive, for the same act. The provisions of this section do not deprive a person injured by a deceptive trade practice from resorting to any other legal remedy.

      Sec. 43.  1.  If charges are made for the repair of a motor vehicle, the garageman or body shop making the charges shall present to the person authorizing repairs or the person entitled to possession of the motor vehicle a statement of the charges setting forth the following information:

      (a) The name and signature of the person authorizing repairs;

      (b) A statement of the total charges;

      (c) An itemization and description of all parts used to repair the motor vehicle indicating the charges made for labor; and

      (d) A description of all other charges.

      2.  Any person violating this section is guilty of a misdemeanor.

      3.  In the case of a motor vehicle registered in this State, no lien for labor or materials provided under NRS 108.265 to 108.360, inclusive, may be enforced by sale or otherwise unless a statement as described in subsection 1 has been given by delivery in person or by certified mail to the last known address of the registered and the legal owner of the motor vehicle. In all other cases, the notice must be made to the last known address of the registered owner and any other person known to have or to claim an interest in the motor vehicle.

      Sec. 44.  1.  On or before January 1 of each year, the Commissioner shall prepare a report concerning garages, garagemen and body shops. The report must include:

      (a) The number of complaints relating to garages, garagemen and body shops:

             (1) Made to and acted upon by the Consumer Affairs Division during the year for which the report is prepared; and

 


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

ê2007 Statutes of Nevada, Page 3418 (Chapter 544, AB 393)ê

 

             (2) Provided to the Department of Motor Vehicles from the Consumer Affairs Division for the year for which the report is prepared and the number of those complaints acted upon by the Department of Motor Vehicles during that year;

      (b) The number of investigations conducted during that year by the Consumer Affairs Division and the Department of Motor Vehicles relating to garages, garagemen and body shops;

      (c) The outcome of each investigation specified in paragraph (b) and the extent to which any information relating to each investigation is subject to disclosure to the members of the public;

      (d) A discussion of the progress made during that year concerning the joint efforts of the Consumer Affairs Division and the Department of Motor Vehicles relating to the complaints and investigations included in the report pursuant to paragraphs (a) and (b); and

      (e) A discussion of the progress made by the Consumer Affairs Division in enhancing its electronic communications with the Department of Motor Vehicles.

      2.  On or before January 1 of each even-numbered year, the Commissioner shall submit the report required pursuant to subsection 1 to the Legislative Commission. On or before January 1 of each odd-numbered year, the Commissioner shall submit the report to the Director of the Legislative Counsel Bureau for transmittal to:

      (a) The Senate Standing Committee on Transportation and Homeland Security; and

      (b) The Assembly Standing Committee on Transportation.

      3.  As used in this section, “Consumer Affairs Division” means the Consumer Affairs Division of the Department of Business and Industry.

      Sec. 45.  NRS 597.480 is hereby amended to read as follows:

      597.480  As used in NRS 597.480 to 597.590, inclusive, and sections 39 to 44, inclusive, of this act, unless the context otherwise requires:

      1.  “Commissioner” means the Commissioner of Consumer Affairs.

      2.  “Garage” has the meaning ascribed to it in NRS 487.540.

      [2.] 3.  “Garageman” has the meaning ascribed to it in NRS 487.545.

      [3.] 4.  “Motor vehicle” means:

      (a) A motorcycle as defined in NRS 482.070;

      (b) A motortruck as defined in NRS 482.073 if the gross weight of the vehicle does not exceed 10,000 pounds;

      (c) A passenger car as defined in NRS 482.087;

      (d) A mini motor home as defined in NRS 482.066;

      (e) A motor home as defined in NRS 482.071; and

      (f) A recreational vehicle as defined in NRS 482.101.

      [4.] 5.  “Person authorizing repairs” means a person who uses the services of a garage. The term includes an insurance company, its agents or representatives, authorizing repairs to motor vehicles under a policy of insurance.

      Sec. 46.  NRS 597.490 is hereby amended to read as follows:

      597.490  1.  Each garageman shall display conspicuously in those areas of his place of business frequented by persons seeking repairs on motor vehicles a sign, not less than 22 inches by 28 inches in size, setting forth in boldface letters the following:

 


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

ê2007 Statutes of Nevada, Page 3419 (Chapter 544, AB 393)ê

 

STATE OF NEVADA

 

REGISTERED GARAGE

 

THIS GARAGE IS REGISTERED WITH THE DEPARTMENT OF MOTOR VEHICLES

 

NEVADA AUTOMOTIVE REPAIR CUSTOMER BILL OF RIGHTS

 

AS A CUSTOMER IN NEVADA:

 

YOU have the right to receive repairs from a business that is REGISTERED with the Department of Motor Vehicles that will ensure the proper repair of your vehicle. (NRS 597.490)

 

YOU have the right to receive a WRITTEN ESTIMATE of charges for repairs made to your vehicle which exceed $50. (NRS 597.510)

 

YOU have the right to read and understand all documents and warranties BEFORE YOU SIGN THEM. (NRS 597.490)

 

YOU have the right to INSPECT ALL REPLACED PARTS and accessories that are covered by a warranty and for which a charge is made. (NRS 597.550)

 

YOU have the right to request that all replaced parts and accessories that are not covered by a warranty BE RETURNED TO YOU AT THE TIME OF SERVICE. (NRS 597.550)

 

YOU have the right to require authorization BEFORE any additional repairs are made to your vehicle if the charges for those repairs exceed 20% of the original estimate or $100, whichever is less. (NRS 597.520)

 

YOU have the right to receive a COMPLETED STATEMENT OF CHARGES for repairs made to your vehicle. [(NRS 487.035)] (Section 43 of this act)

 

YOU have the right to a FAIR RESOLUTION of any dispute that develops concerning the repair of your vehicle. (NRS 597.490)

 

FOR MORE INFORMATION PLEASE CONTACT:

 

THE DEPARTMENT OF BUSINESS AND INDUSTRY

 

CONSUMER AFFAIRS DIVISION

 

IN CLARK COUNTY: (702) 486-7355

 

ALL OTHER AREAS TOLL-FREE: 1-800-326-5202

 

      2.  The sign required pursuant to the provisions of subsection 1 must include a replica of the great seal of the State of Nevada. The seal must be 2 inches in diameter and be centered on the face of the sign directly above the words “STATE OF NEVADA.”

 


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

ê2007 Statutes of Nevada, Page 3420 (Chapter 544, AB 393)ê

 

2 inches in diameter and be centered on the face of the sign directly above the words “STATE OF NEVADA.”

      3.  Any person who violates the provisions of this section is guilty of a misdemeanor.

      Sec. 47.  NRS 597.500 is hereby amended to read as follows:

      597.500  Whenever any garageman accepts or assumes control of a motor vehicle for the purpose of making or completing any repair, he shall comply with the provisions of NRS 597.510 to 597.570, inclusive [.] , and sections 39 to 44, inclusive, of this act.

      Sec. 48.  NRS 597.560 is hereby amended to read as follows:

      597.560  The garageman shall retain copies of any estimate, statement or waiver required by NRS 597.510 to 597.550, inclusive, and sections 39 to 44, inclusive, of this act as an ordinary business record of the garage, for a period of not less than 1 year [from] after the date [such] the estimate, statement or waiver is signed.

      Sec. 49.  NRS 597.570 is hereby amended to read as follows:

      597.570  In every instance where charges are made for the repair of a motor vehicle, the garageman making the repairs shall comply with the provisions of NRS [487.035 as well as the provisions of NRS] 597.510 to 597.550, inclusive [.] , and sections 39 to 44, inclusive, of this act. He is not entitled to detain a motor vehicle by virtue of any common law or statutory lien, or otherwise enforce such lien, nor shall he have the right to sue on any contract for repairs made by him, unless he has complied with the requirements of NRS 597.510 to 597.550, inclusive, and sections 39 to 44, inclusive, of this act, in addition to those of NRS 487.035.

      Sec. 50.  NRS 597.580 is hereby amended to read as follows:

      597.580  The Attorney General or any district attorney may bring an action in any court of competent jurisdiction in the name of the State of Nevada on the complaint of the Commissioner [of Consumer Affairs] or of any person allegedly aggrieved by such violation to enjoin any violation of the provisions of NRS 597.510 to 597.570, inclusive [.] , and sections 39 to 44, inclusive, of this act.

      Sec. 51.  NRS 597.590 is hereby amended to read as follows:

      597.590  [Any] Except as otherwise provided in section 42 of this act, any person who knowingly violates any provision of NRS 597.500 to 597.570, inclusive, and sections 39 to 44, inclusive, of this act, is liable, in addition to any other penalty or remedy which may be provided by law, to a civil penalty of not more than $500 for each offense, which may be recovered by civil action on complaint of the Commissioner , [of Consumer Affairs] the Director of the Department of Business and Industry or the district attorney.

      Sec. 52.  NRS 598.985 is hereby amended to read as follows:

      598.985  1.  The Division and the Department shall cooperate to enhance the protection of persons who authorize the repair of motor vehicles by a garage that is registered with the Department pursuant to the provisions of NRS 487.530 to 487.570, inclusive.

      2.  The Commissioner of Consumer Affairs may provide to the Department a copy of any complaint filed with the Division that alleges a deceptive trade practice pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive, or a violation of the provisions of NRS 597.480 to 597.590, inclusive, or sections 39 to 44, inclusive, of this act by a garage or garageman registered pursuant to the provisions of NRS 487.530 to 487.570, inclusive.

 


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

ê2007 Statutes of Nevada, Page 3421 (Chapter 544, AB 393)ê

 

inclusive. If the Commissioner provides the Department with a copy of a complaint, the Department is subject to the provisions of NRS 598.098 with respect to the complaint.

      3.  The Department may provide assistance to the Division in carrying out the provisions of NRS 598.990.

      Sec. 53.  NRS 598.990 is hereby amended to read as follows:

      598.990  The Division shall:

      1.  Establish and maintain a toll-free telephone number for persons to report to the Division information concerning alleged violations of NRS [487.035,] 487.530 to 487.570, inclusive, 597.480 to 597.590, inclusive, and sections 39 to 44, inclusive, of this act, and 598.0903 to 598.0999, inclusive.

      2.  Develop a program to provide information to the public concerning:

      (a) The duties imposed on a garageman by the provisions of NRS 487.035, 487.530 to 487.570, inclusive, and 597.480 to 597.590, inclusive [;] , and sections 39 to 44, inclusive, of this act;

      (b) The rights and protections established for a person who uses the services of a garage [;] or body shop;

      (c) The repair of motor vehicles; and

      (d) Deceptive trade practices relating to the repair of motor vehicles by a garage [.] or body shop.

      Sec. 54.  NRS 686A.300 is hereby amended to read as follows:

      686A.300  1.  An insurer who issues insurance covering damage to a motor vehicle shall not delay making payment for any claim involving damage to a motor vehicle after receiving a statement of charges, pursuant to the provisions of [NRS 487.035,] section 43 of this act, from any garage or licensed body shop previously authorized by the insured to perform the repairs required by that claim.

      2.  A delay, within the meaning of this section, is failure to issue a check or draft, payable to the garage or licensed body shop or jointly to the insured and the garage or licensed body shop, within 30 days after the insurer’s receipt of the statement of charges for repairs which have been satisfactorily completed.

      3.  If the damaged vehicle is subject to a security interest or the legal owner of the damaged vehicle is different from the registered owner, the vehicle must be repaired by a garage or licensed body shop unless:

      (a) The insurer has declared the vehicle a total loss; or

      (b) The total charge for the repair of the vehicle, as set forth in the statement of charges presented pursuant to [NRS 487.035,] section 43 of this act, is $300 or less.

      4.  Except as otherwise provided in subsection 3, nothing in this section shall be deemed to prohibit an insurer and insured from settling a claim involving damage to a motor vehicle without providing for the repair of the vehicle.

      5.  As used in this section, “licensed body shop” means a body shop for which a license has been issued pursuant to chapter 487 of NRS.

      Sec. 55.  NRS 487.035 is hereby repealed.

      Sec. 56.  (Deleted by amendment.)

________

 


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

ê2007 Statutes of Nevada, Page 3422ê

 

CHAPTER 545, AB 461

Assembly Bill No. 461–Assemblymen Parks, Kirkpatrick, Koivisto, McClain, Pierce, Anderson, Arberry, Atkinson, Buckley, Claborn, Conklin, Denis, Gerhardt, Hardy, Hogan, Horne, Kihuen, Leslie, Manendo, Mortenson, Oceguera, Ohrenschall and Womack

 

CHAPTER 545

 

AN ACT relating to taxation; providing for certain reporting requirements and the review of certain expenditures relating to the Clark County Sales and Use Tax Act of 2005; authorizing the Board of County Commissioners of Nye County to increase the sales and use tax to support public safety services in Nye County; and providing other matters properly relating thereto.

 

[Approved: June 18, 2007]

 

Legislative Counsel’s Digest:

      The Clark County Sales and Use Tax Act of 2005 authorized the Board of County Commissioners of Clark County to impose up to one-half of 1 percent sales and use tax to employ and equip additional police officers for various police departments in Clark County. Section 1 of this bill adds a requirement that any governmental entity that authorizes expenditures from the tax revenues for a police department must submit periodic reports to the Legislature concerning the use of that money, and authorizes the Legislative Commission to review and investigate those expenditures.

      Sections 3-22 of this bill are modeled on the provisions of the Clark County Sales and Use Tax Act of 2005, and authorize the Board of County Commissioners of Nye County to impose an additional sales tax of up to one-half of 1 percent for the purposes of recruiting, employing and equipping additional firefighters, deputy sheriffs and other public safety personnel and constructing, improving and equipping public safety facilities in Nye County. Any proposed change in the use of the proceeds of the tax must be submitted to the voters and be approved by the Legislature. Section 17.5 of this bill contains requirements identical to those in section 1 of this bill concerning reporting of expenditures of the tax revenues and the review and investigation of those expenditures.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  The Clark County Sales and Use Tax Act of 2005, being chapter 249, Statutes of Nevada 2005, at page 912, is hereby amended by adding thereto a new section to be designated as section 13.5, immediately following section 13, to read as follows:

      Sec. 13.5.  1.  Any governing body that has approved expenditures pursuant to section 13 of this Act shall submit to the Director of the Legislative Counsel Bureau for transmittal to the members of the Legislature or the Legislative Commission when the Legislature is not in regular session, the periodic reports required pursuant to this section and such other information relating to the provisions of this Act as may be requested by the Director of the Legislative Counsel Bureau.

      2.  The reports required pursuant to this section must be submitted:

 


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

ê2007 Statutes of Nevada, Page 3423 (Chapter 545, AB 461)ê

 

      (a) On or before:

             (1) February 15 for the 3-month period ending on the immediately preceding December 31;

             (2) May 15 for the 3-month period ending on the immediately preceding March 31;

             (3) August 15 for the 3-month period ending on the immediately preceding June 30; and

             (4) November 15 for the 3-month period ending on the immediately preceding September 30; and

      (b) On or before August 15 for the 12-month period ending on the immediately preceding June 30.

      3.  Each report must be submitted on a form provided by the Director of the Legislative Counsel Bureau and include, with respect to the period covered by the report:

      (a) The total proceeds received by the respective police department from the sales and use tax imposed pursuant to this Act;

      (b) A detailed description of the use of the proceeds, including, without limitation:

             (1) The total expenditures made by the respective police department from the sales and use tax imposed pursuant to this Act;

             (2) The total number of police officers hired by the police department and the number of those officers that are filling authorized, funded positions for new officers; and

             (3) A detailed analysis of the manner in which each expenditure:

                   (I) Conforms to all provisions of this Act; and

                   (II) Does not replace or supplant funding which existed before October 1, 2005, for the police department; and

      (c) Any other information required to complete the form for the report.

      4.  The Legislative Commission may review and investigate the reports submitted pursuant to this section and the expenditure of any proceeds pursuant to section 13 of this Act.

      Sec. 2.  Notwithstanding the provisions of section 1 of this act, the report submitted pursuant to section 1 of this act by a governing body to the Director of the Legislative Counsel Bureau on or before November 15, 2007, must separately cover:

      1.  The period beginning on October 1, 2005, and ending on September 30, 2007; and

      2.  The period beginning on July 1, 2006, and ending on June 30, 2007.

      Sec. 3.  Sections 3 to 22, inclusive, of this act may be cited as the Nye County Sales and Use Tax Act of 2007.

      Sec. 4.  The Legislature hereby finds and declares that:

      1.  Nye County has experienced and continues to experience substantial growth, growing from a population of 32,485 residents in 2000 to a projected population of over 44,580 residents in 2006;

      2.  Nye County is the third largest county in terms of geographic area in the United States and the growth in Nye County has occurred over this wide geographical area;

      3.  The increase in the number of public safety personnel and facilities to protect the residents of Nye County has not kept pace with this growth;

 


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

ê2007 Statutes of Nevada, Page 3424 (Chapter 545, AB 461)ê

 

      4.  The danger from fire and crime is increasing in Nye County, and so is the time it takes for public safety personnel to respond when a resident reports a fire or crime;

      5.  It is intended that the Board of County Commissioners of Nye County establish a program that promotes community participation in protecting the residents of the community that includes, without limitation:

      (a) A written policy on providing public safety services oriented toward the involvement of residents of the community;

      (b) The provision of training for all public safety personnel employed in the County that includes, without limitation, training relating to:

             (1) Methods that may be used to analyze, respond to and solve problems commonly confronted by public safety personnel in the community;

             (2) The cultural and racial diversity of the residents of the community;

             (3) The proper utilization of community resources, such as local housing authorities, public utilities and local public officials, that are available to assist in providing public safety services; and

             (4) Issues concerning not only the prevention of fires and crime, but also improving the quality of life for the residents of the community; and

      (c) The formation of partnerships with the residents of the community and public and private agencies and organizations to address mutual concerns relating to the provision of public safety services;

      6.  A general law cannot be made applicable to the purposes, objects, powers, rights, privileges, immunities, liabilities, duties and disabilities provided in this act because of the demographic, economic and geographic diversity of the local governments of this State, the unique growth patterns occurring in Nye County and the special financial conditions experienced in the County relating to the need to recruit, employ and equip more public safety personnel and to construct, improve and equip public safety facilities; and

      7.  The powers, rights, privileges, immunities, liabilities, duties and disabilities provided in this act comply in all respects with any requirement or limitation pertaining thereto and imposed by any constitutional provisions.

      Sec. 5.  Except as otherwise provided in this act or unless the context otherwise requires, the terms used or referred to in this act have the meanings ascribed to them in chapter 374 of NRS, as from time to time amended, but the definitions in sections 6 to 13, inclusive, of this act, unless the context otherwise requires, govern the construction of this act.

      Sec. 6.  “Act” means the Nye County Sales and Use Tax Act of 2007.

      Sec. 7.  “Board” means the Board of County Commissioners of Nye County.

      Sec. 8.  “County” means Nye County.

      Sec. 9.  “County Treasurer” means the County Treasurer of Nye County.

      Sec. 10.  “Department” means the Department of Taxation created pursuant to NRS 360.120.

      Sec. 11.  “Employ” means making an expenditure for the purpose of providing employment, including, without limitation, paying wages and benefits.

      Sec. 12.  “Recruit” means making an expenditure for the purpose of attracting applicants for employment or persuading an applicant to accept employment, including, without limitation, providing materials and services relating to recruitment, paying signing bonuses, paying expenses relating to relocation and providing assistance with the purchase of a house.

 


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

ê2007 Statutes of Nevada, Page 3425 (Chapter 545, AB 461)ê

 

employment, including, without limitation, providing materials and services relating to recruitment, paying signing bonuses, paying expenses relating to relocation and providing assistance with the purchase of a house.

      Sec. 13.  “Sheriff” means the Sheriff of Nye County.

      Sec. 14.  1.  The Board may enact an ordinance imposing a local sales and use tax to:

      (a) Recruit, employ and equip additional firefighters, deputy sheriffs to the Sheriff and other public safety personnel;

      (b) Improve and equip existing public safety facilities; and

      (c) Construct and equip new public safety facilities.

      2.  Before enacting such an ordinance, the Board shall hold a public hearing to present its plan for implementing the local sales and use tax.

      3.  The proceeds from the tax authorized pursuant to this section, including interest and other income earned thereon, must be:

      (a) Allocated for expenditure:

             (1) In the areas of Pahrump, Amargosa Valley, Beatty, Tonopah, Round Mountain, Manhattan, Gabbs and any other town or city created in Nye County after October 1, 2007, and in the remaining unincorporated area of Nye County on a pro rata basis in each of those areas based upon the ratio of the population of that area to the total population of Nye County; or

             (2) In any other manner that the Board and the governing body of each of those areas agree to be appropriate to carry out the purposes set forth in subsection 1 in accordance with the provisions of section 17 of this act.

Ê As used in this paragraph, “population” means the estimated annual population determined pursuant to NRS 360.283.

      (b) Used only as approved pursuant to section 17 of this act and only for the purposes set forth in subsection 1 unless the Legislature changes the use. The Board shall, before submitting to the Legislature any request to change the uses for the proceeds from the tax, submit an advisory question to the voters of the County pursuant to NRS 293.482, asking whether the uses for the proceeds from the tax should be so changed. The Board shall not submit such a request to the Legislature if a majority of the voters in the County disapprove the proposed change.

      Sec. 15.  An ordinance enacted pursuant to this act must include provisions in substance as follows:

      1.  A provision imposing a tax on the gross receipts of any retailer from the sale of all tangible personal property sold at retail or stored, used or otherwise consumed in the County, including incorporated cities in the County, at a rate that does not exceed one-half of 1 percent.

      2.  Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

      3.  A provision that an amendment to chapter 374 of NRS enacted after the effective date of the ordinance, not inconsistent with this act, automatically becomes part of the ordinance imposing the tax.

      4.  A provision that the Board shall contract with the Department, before the effective date of the ordinance, to perform all the functions incident to the administration or operation of the tax in the County.

      5.  A provision that a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed on the sale of, and the storage, use or other consumption in the County, including incorporated cities in the County, of, tangible personal property used for the performance of a written contract for the construction of an improvement to real property:

 


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

ê2007 Statutes of Nevada, Page 3426 (Chapter 545, AB 461)ê

 

incorporated cities in the County, of, tangible personal property used for the performance of a written contract for the construction of an improvement to real property:

      (a) That was entered into on or before the effective date of the tax; or

      (b) For which a binding bid was submitted before that date if the bid was afterward accepted, and pursuant to the terms of the contract or bid, the contract price or bid amount may not be adjusted to reflect the imposition of the tax.

      6.  A provision that specifies the date on which the tax must first be imposed, which must not be earlier than the first day of the second calendar month following the effective date of the ordinance.

      Sec. 16.  An ordinance amending an ordinance enacted pursuant to this act, except an ordinance authorizing the issuance of bonds or other securities, must include a provision in substance that the Board shall amend a contract made pursuant to subsection 4 of section 15 of this act by a contract made between the Board and the Department before the effective date of the amendatory ordinance, unless the Board determines with the written concurrence of the Department that no such amendment of the contract is needed.

      Sec. 17.  1.  The proceeds received from any sales and use tax imposed pursuant to this act must be expended in each of the areas to which those proceeds are allocated for expenditure pursuant to section 14 of this act in such a manner that half of those proceeds are expended for the support of the services provided by local fire departments in that area and the remaining half of those proceeds are expended for the support of the services provided by the Sheriff in that area.

      2.  No expenditure of those proceeds may be made unless the expenditure has been approved by the governing body of the area to which those proceeds have been allocated for expenditure. The governing body must approve the expenditure of the proceeds if it determines that:

      (a) The proposed use of the money conforms to all provisions of this act; and

      (b) The proposed use will not replace or supplant existing funding for the purposes set forth in subsection 1 of section 14 of this act for the support of the services provided by local fire departments and the Sheriff in that area.

      3.  In determining whether a proposed use meets the requirement set forth in paragraph (b) of subsection 2, the governing body shall determine whether the amount approved for expenditure for the fiscal year for the purposes set forth in subsection 1 of section 14 of this act for the support of the services of local fire departments and the Sheriff in that area, not including any money received or expended pursuant to this act, is equal to or greater than the amount approved for expenditure in the immediately preceding fiscal year for the purposes set forth in subsection 1 of section 14 of this act for the support of the services of local fire departments and the Sheriff in that area.

      Sec. 17.5.  1.  Any governing body of an area that has approved expenditures pursuant to section 17 of this act shall submit to the Director of the Legislative Counsel Bureau for transmittal to the members of the Legislature, or the Legislative Commission when the Legislature is not in regular session, the periodic reports required pursuant to this section and such other information relating to the provisions of this act as may be requested by the Director of the Legislative Counsel Bureau.

 


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

ê2007 Statutes of Nevada, Page 3427 (Chapter 545, AB 461)ê

 

      2.  The reports required pursuant to this section must be submitted:

      (a) On or before:

             (1) February 15 for the 3-month period ending on the immediately preceding December 31;

             (2) May 15 for the 3-month period ending on the immediately preceding March 31;

             (3) August 15 for the 3-month period ending on the immediately preceding June 30; and

             (4) November 15 for the 3-month period ending on the immediately preceding September 30; and

      (b) On or before August 15 for the 12-month period ending on the immediately preceding June 30.

      3.  Each report must be submitted on a form provided by the Director of the Legislative Counsel Bureau and include, with respect to the period covered by the report:

      (a) The total proceeds received by the respective local fire departments and the Sheriff from the sales and use tax imposed pursuant to this act;

      (b) A detailed description of the use of the proceeds, including, without limitation:

             (1) The total expenditures made by the respective local fire departments and the Sheriff for the purposes set forth in subsection 1 of section 14 of this act for the support of the services provided by the respective local fire departments and the Sheriff in each applicable area from the sales and use tax imposed pursuant to this act;

             (2) The total number of firefighters, deputy sheriffs and other public safety personnel hired by local fire departments or the Sheriff, as applicable, and the number of those employees that are filling authorized, funded positions for new employees; and

             (3) A detailed analysis of the manner in which each expenditure:

                   (I) Conforms to all provisions of this act; and

                   (II) Does not replace or supplant funding which existed before October 1, 2007, for the purposes set forth in subsection 1 of section 14 of this act for the support of the services provided by local fire departments and the Sheriff in each applicable area; and

      (c) Any other information required to complete the form for the report.

      4.  The Legislative Commission may review and investigate the reports submitted pursuant to this section and the expenditure of any proceeds pursuant to section 17 of this act.

      Sec. 18.  1.  All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to the County pursuant to this act must be paid to the Department in the form of remittances payable to the Department.

      2.  The Department shall deposit the payments with the State Treasurer for credit to the Sales and Use Tax Account in the State General Fund.

      3.  The State Controller, acting upon the collection data furnished by the Department, shall monthly:

      (a) Transfer from the Sales and Use Tax Account to the appropriate account in the State General Fund a percentage of all fees, taxes, interest and penalties collected pursuant to this act during the preceding month as compensation to the State for the cost of collecting the tax. The percentage to be transferred pursuant to this paragraph must be the same percentage as the percentage of proceeds transferred pursuant to paragraph (a) of subsection 3 of NRS 374.785, but the percentage must be applied to the proceeds collected pursuant to this act only.

 


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

ê2007 Statutes of Nevada, Page 3428 (Chapter 545, AB 461)ê

 

percentage of proceeds transferred pursuant to paragraph (a) of subsection 3 of NRS 374.785, but the percentage must be applied to the proceeds collected pursuant to this act only.

      (b) Determine the amount equal to all fees, taxes, interest and penalties collected in or for the County pursuant to this act during the preceding month, less the amount transferred to the State General Fund pursuant to paragraph (a).

      (c) Transfer the amount determined pursuant to paragraph (b) to the Intergovernmental Fund and remit the money to the County Treasurer.

      Sec. 19.  The Department may redistribute any proceeds from the taxes, interest or penalties collected pursuant to this act which is determined to be improperly distributed, but no such redistribution may be made as to amounts originally distributed more than 6 months before the date on which the Department obtains knowledge of the improper distribution.

      Sec. 20.  1.  The County Treasurer shall:

      (a) Deposit money received from the State Controller pursuant to paragraph (c) of subsection 3 of section 18 of this act into the County Treasury for credit to a special revenue fund created for the use of the proceeds from the tax authorized by this act; and

      (b) Allocate that money into separate accounts within that fund as appropriate to carry out the provisions of paragraph (a) of subsection 3 of section 14 of this act.

      2.  The special revenue fund of the County created for the use of the proceeds from the tax authorized by this act must be accounted for as a separate fund and not as a part of any other fund.

      3.  Interest earned on the special revenue fund created pursuant to subsection 1 must be credited to the fund. The money in each such fund must remain in the fund and must not revert to the County Treasury at the end of any fiscal year.

      Sec. 21.  In a proceeding arising from an ordinance imposing a tax pursuant to this act, the Department may act for and on behalf of the County.

      Sec. 22.  1.  The powers conferred by this act are in addition and supplemental to, and not in substitution for, the powers conferred by any other law and the limitations imposed by this act do not affect the powers conferred by any other law.

      2.  This act must not be construed to prevent the exercise of any power granted by any other law to the County or any officer, agent or employee of the County.

      3.  This act must not be construed to repeal or otherwise affect any other law or part thereof.

      4.  This act is intended to provide a separate method of accomplishing the objectives of the act, but not an exclusive method.

      5.  If any provision of this act, or application thereof to any person, thing or circumstance, is held invalid, the invalidity shall not affect the provisions or application of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

      Sec. 23.  1.  This section and sections 3 to 22, inclusive, of this act become effective:

      (a) Upon passage and approval for the purposes of enacting ordinances and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

 


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

ê2007 Statutes of Nevada, Page 3429 (Chapter 545, AB 461)ê

 

      (b) On October 1, 2007, for all other purposes.

      2.  Sections 1 and 2 of this act become effective on October 1, 2007, and expire by limitation on October 1, 2025.

      3.  Sections 3 to 22, inclusive, of this act expire by limitation on October 1, 2027.

________

 

CHAPTER 546, AB 594

Assembly Bill No. 594–Committee on Transportation

 

CHAPTER 546

 

AN ACT relating to body shops; creating a Class A certification designation for body shops that meet certain criteria; and providing other matters properly relating thereto.

 

[Approved: June 18, 2007]

 

Legislative Counsel’s Digest:

      Existing law requires body shops to submit an application to the Department of Motor Vehicles for a license to operate and file with the Department a bond in the amount of $10,000 before doing business in the State. (NRS 487.630, 487.640) Sections 3, 4, 6 and 7 of this bill create a Class A certification for a body shop that demonstrates compliance with certain criteria. Section 8 of this bill establishes the process for applying for and renewing a Class A certification. Section 11 of this bill provides for the suspension or revocation of a Class A certification under certain circumstances. (NRS 487.660)

 

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 the provisions set forth as sections 2 to 8, inclusive, of this act.

      Sec. 2.  “Body shop” means any place where the body of a motor vehicle is painted, fixed, repaired or replaced for compensation.

      Sec. 3.  “Class A certificate” means a certificate issued to a licensed body shop that has been granted Class A certification status with the Department pursuant to section 6 of this act.

      Sec. 4.  “Class A certification” means a designation granted to a licensed body shop by the Department indicating that the body shop meets the criteria set forth in section 6 of this act and any criteria established in regulations adopted pursuant to section 7 of this act.

      Sec. 5.  “Garagekeepers’ insurance” means insurance which protects an operator of a body shop against liability for damage to a vehicle in the care, custody or control of the body shop.

      Sec. 6.  To be eligible for Class A certification, a licensed body shop must:

      1.  Comply with local zoning laws and possess all required local, state and federal licenses and permits.

      2.  Possess garagekeepers’ and workers’ compensation insurance.

      3.  Provide employees with continuing education and training in subjects and for periods of time as prescribed by regulation.

      4.  Have the ability to:

 


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

ê2007 Statutes of Nevada, Page 3430 (Chapter 546, AB 594)ê

 

      (a) Obtain proper specifications for each vehicle being repaired;

      (b) Make three dimensional measurements that are verified by a computer of each vehicle being repaired; and

      (c) Hoist a vehicle for inspection.

      5.  Perform a wide range of services for vehicles being repaired, including, without limitation:

      (a) Alignment of the wheels of a vehicle that is verified by a computer;

      (b) Stabilization of a vehicle through the use of a four-point anchoring system;

      (c) Simultaneous adjustment of the exterior and undercarriage of a vehicle;

      (d) Removal and reinstallation of a frame, suspension, engine or a drivetrain component;

      (e) Painting the exterior of a vehicle with a system for applying paint that provides a finish similar to the finish applied by the manufacturer;

      (f) Inspection of airbags and other occupant restraint devices to the specifications of the manufacturer; and

      (g) Welding, by a certified technician, with a gas metal arc welder or an inverter welder, as appropriate.

      6.  Adhere to current federal, state and local safety requirements by:

      (a) Performing repairs on an air-conditioning system using equipment approved by the United States Environmental Protection Agency;

      (b) Performing repairs with emission-reducing equipment, as prescribed by regulation;

      (c) Performing repairs with equipment that meets all safety requirements as prescribed by regulation; and

      (d) Disposing of hazardous waste as prescribed by regulation.

      7.  Ensure customer satisfaction by providing to each customer:

      (a) A computer-generated estimate of repairs; and

      (b) A written, limited lifetime warranty that is valid against workmanship defects.

      8.  Have a system for documenting and maintaining customer complaints and responses to service.

      Sec. 7.  1.  The Department shall adopt regulations establishing the requirements for continuing education and training required by subsection 3 of section 6 of this act.

      2.  The Department may adopt such regulations as it deems necessary to carry out the provisions of sections 2 to 8, inclusive, of this act.

      Sec. 8.  1.  An application for a Class A certification or for the renewal of such a certification must be filed with the Department upon forms supplied by the Department. The application must be accompanied by such proof as the Department requires to demonstrate that the applicant is in compliance with all criteria set forth in section 6 of this act and any regulations adopted pursuant thereto.

      2.  Before a Class A certificate is issued to a licensed body shop, the Department must inspect the body shop to ensure that the body shop meets or exceeds the requirements set forth in section 6 of this act and any regulations adopted pursuant thereto.

      3.  The Department shall notify a licensed body shop at least 72 hours before an inspection is performed pursuant to subsection 2.

      4.  The Department shall charge an application fee of $300 for the issuance or renewal of a Class A certificate which must be submitted with the application.

 


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

ê2007 Statutes of Nevada, Page 3431 (Chapter 546, AB 594)ê

 

the application. Fees collected by the Department pursuant to this subsection must be deposited with the State Treasurer to the credit of the Account for Regulation of Salvage Pools, Automobile Wreckers, Body Shops and Garages.

      5.  Upon receipt of the application and the required fee, and when satisfied that the applicant meets or exceeds the requirements set forth in section 6 of this act and any regulations adopted pursuant thereto, the Department must issue to the licensed body shop a Class A certificate or renew such certification. The certificate must contain the name and the address of the licensed body shop and the name of the operator of the licensed body shop.

      6.  A Class A certificate expires on April 30 of each year.

      Sec. 9.  NRS 487.600 is hereby amended to read as follows:

      487.600  As used in NRS [487.610] 487.600 to 487.690, inclusive, [“body shop” means any place where the body of a motor vehicle is painted, fixed, repaired or replaced for compensation.] and sections 2 to 8, inclusive, of this act, the words and terms defined in sections 2 to 5, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 10.  NRS 487.650 is hereby amended to read as follows:

      487.650  1.  The Department may refuse to issue a license or, after notice and hearing, may suspend, revoke or refuse to renew a license to operate a body shop upon any of the following grounds:

      (a) Failure of the applicant or licensee to have or maintain an established place of business in this State.

      (b) Conviction of the applicant or licensee or an employee of the applicant or licensee of a felony, or of a misdemeanor or gross misdemeanor for a violation of a provision of this chapter.

      (c) Any material misstatement in the application for the license.

      (d) Willful failure of the applicant or licensee to comply with the motor vehicle laws of this State and NRS 487.035, [487.610] 487.600 to 487.690, inclusive, and sections 2 to 8, inclusive, of this act, or 597.480 to 597.590, inclusive.

      (e) Failure or refusal by the licensee to pay or otherwise discharge any final judgment against him arising out of the operation of the body shop.

      (f) Failure or refusal to provide to the Department an authorization for the disclosure of financial records for the business as required pursuant to subsection 2.

      (g) A finding of guilt by a court of competent jurisdiction in a case involving a fraudulent inspection, purchase, sale or transfer of a salvage vehicle by the applicant or licensee or an employee of the applicant or licensee.

      (h) An improper, careless or negligent inspection of a salvage vehicle pursuant to NRS 487.800 by the applicant or licensee or an employee of the applicant or licensee.

      (i) A false statement of material fact in a certification of a salvage vehicle pursuant to NRS 487.800 or a record regarding a salvage vehicle by the applicant or licensee or an employee of the applicant or licensee.

      2.  Upon the receipt of any report or complaint alleging that an applicant or a licensee has engaged in financial misconduct or has failed to satisfy financial obligations related to the operation of a body shop, the Department may require the applicant or licensee to submit to the Department an authorization for the disclosure of financial records for the business as provided in NRS 239A.090.

 


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

ê2007 Statutes of Nevada, Page 3432 (Chapter 546, AB 594)ê

 

provided in NRS 239A.090. The Department may use any information obtained pursuant to such an authorization only to determine the suitability of the applicant or licensee for initial or continued licensure. Information obtained pursuant to such an authorization may be disclosed only to those employees of the Department who are authorized to issue a license to an applicant pursuant to NRS [487.610] 487.600 to 487.690, inclusive, and sections 2 to 8, inclusive, of this act, or to determine the suitability of an applicant or a licensee for such licensure.

      3.  As used in this section, “salvage vehicle” has the meaning ascribed to it in NRS 487.770.

      Sec. 11.  NRS 487.660 is hereby amended to read as follows:

      487.660  1.  If the Director finds that the action is necessary in the public interest, upon notice to the licensee, he may [temporarily] :

      (a) Temporarily suspend or refuse to renew the license to operate a body shop for not more than 30 days.

      (b) Temporarily suspend or refuse to renew a Class A certificate of a licensed body shop for not more than 30 days.

      2.  The Department shall conduct a hearing and issue a final decision on the matter within 30 days after it sends notice [to the licensee] of the temporary suspension [.] of a license or a Class A certificate, or both.

      3.  The Department shall adopt regulations:

      (a) Prescribing the circumstances under which the Department may suspend or refuse to renew a Class A certificate; and

      (b) Providing an appeals process for an operator of a licensed body shop whose Class A certificate has been suspended or has not been renewed.

      4.  A Class A certificate must be automatically revoked by the Department if the license to operate the body shop is suspended or revoked pursuant to NRS 487.650.

      Sec. 12.  NRS 487.690 is hereby amended to read as follows:

      487.690  Any person who violates any of the provisions of NRS [487.610] 487.600 to 487.680, inclusive, and sections 2 to 8, inclusive, of this act is guilty of a misdemeanor.

________

 


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

ê2007 Statutes of Nevada, Page 3433ê

 

CHAPTER 547, AB 487

Assembly Bill No. 487–Committee on Taxation

 

CHAPTER 547

 

AN ACT relating to taxation; exempting certain professional minor league baseball events from the state tax on live entertainment; and providing other matters properly relating thereto.

 

[Approved: June 25, 2007]

 

Legislative Counsel’s Digest:

      Existing law provides for the imposition of a state excise tax on admission to facilities where live entertainment is provided. (NRS 368A.200) Section 1 of this bill provides an exemption from that tax for professional minor league baseball events conducted at a stadium.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 368A.200 is hereby amended to read as follows:

      368A.200  1.  Except as otherwise provided in this section, there is hereby imposed an excise tax on admission to any facility in this State where live entertainment is provided. If the live entertainment is provided at a facility with a maximum occupancy of:

      (a) Less than 7,500 persons, the rate of the tax is 10 percent of the admission charge to the facility plus 10 percent of any amounts paid for food, refreshments and merchandise purchased at the facility.

      (b) At least 7,500 persons, the rate of the tax is 5 percent of the admission charge to the facility.

      2.  Amounts paid for:

      (a) Admission charges collected and retained by a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c), or by a nonprofit corporation organized or existing under the provisions of chapter 82 of NRS, are not taxable pursuant to this section.

      (b) Gratuities directly or indirectly remitted to persons employed at a facility where live entertainment is provided or for service charges, including those imposed in connection with the use of credit cards or debit cards, which are collected and retained by persons other than the taxpayer are not taxable pursuant to this section.

      3.  A business entity that collects any amount that is taxable pursuant to subsection 1 is liable for the tax imposed, but is entitled to collect reimbursement from any person paying that amount.

      4.  Any ticket for live entertainment must state whether the tax imposed by this section is included in the price of the ticket. If the ticket does not include such a statement, the taxpayer shall pay the tax based on the face amount of the ticket.

      5.  The tax imposed by subsection 1 does not apply to:

      (a) Live entertainment that this State is prohibited from taxing under the Constitution, laws or treaties of the United States or the Nevada Constitution.

      (b) Live entertainment that is provided by or entirely for the benefit of a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c), or a nonprofit corporation organized or existing under the provisions of chapter 82 of NRS.

 


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

ê2007 Statutes of Nevada, Page 3434 (Chapter 547, AB 487)ê

 

a tax-exempt organization pursuant to 26 U.S.C. § 501(c), or a nonprofit corporation organized or existing under the provisions of chapter 82 of NRS.

      (c) Any boxing contest or exhibition governed by the provisions of chapter 467 of NRS.

      (d) Live entertainment that is not provided at a licensed gaming establishment if the facility in which the live entertainment is provided has a maximum occupancy of less than 200 persons.

      (e) Live entertainment that is provided at a licensed gaming establishment that is licensed for less than 51 slot machines, less than 6 games, or any combination of slot machines and games within those respective limits, if the facility in which the live entertainment is provided has a maximum occupancy of less than 200 persons.

      (f) Merchandise sold outside the facility in which the live entertainment is provided, unless the purchase of the merchandise entitles the purchaser to admission to the entertainment.

      (g) Live entertainment that is provided at a trade show.

      (h) Music performed by musicians who move constantly through the audience if no other form of live entertainment is afforded to the patrons.

      (i) Live entertainment that is provided at a licensed gaming establishment at private meetings or dinners attended by members of a particular organization or by a casual assemblage if the purpose of the event is not primarily for entertainment.

      (j) Live entertainment that is provided in the common area of a shopping mall, unless the entertainment is provided in a facility located within the mall.

      (k) Food and product demonstrations provided at a shopping mall, a craft show or an establishment that sells grocery products, housewares, hardware or other supplies for the home.

      (l) Live entertainment that is incidental to an amusement ride, a motion simulator or a similar digital, electronic, mechanical or electromechanical attraction. For the purposes of this paragraph, live entertainment shall be deemed to be incidental to an amusement ride, a motion simulator or a similar digital, electronic, mechanical or electromechanical attraction if the live entertainment is:

             (1) Not the predominant element of the attraction; and

             (2) Not the primary purpose for which the public rides, attends or otherwise participates in the attraction.

      (m) Live entertainment that is provided to the public in an outdoor area, without any requirements for the payment of an admission charge or the purchase of any food, refreshments or merchandise.

      (n) An outdoor concert, unless the concert is provided on the premises of a licensed gaming establishment.

      (o) Beginning July 1, 2007, race events scheduled at a race track in this State as a part of the National Association for Stock Car Auto Racing Nextel Cup Series, or its successor racing series, and all races associated therewith.

      (p) Beginning July 1, 2007, a baseball contest, event or exhibition conducted by professional minor league baseball players at a stadium in this State.

      (q) Live entertainment provided in a restaurant which is incidental to any other activities conducted in the restaurant or which only serves as ambience so long as there is no charge to the patrons for that entertainment.

 


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

ê2007 Statutes of Nevada, Page 3435 (Chapter 547, AB 487)ê

 

      6.  The Commission may adopt regulations establishing a procedure whereby a taxpayer that is a licensed gaming establishment may request an exemption from the tax pursuant to paragraph [(p)] (q) of subsection 5. The regulations must require the taxpayer to seek an administrative ruling from the Chairman of the Board, provide a procedure for appealing that ruling to the Commission and further describe the forms of incidental or ambient entertainment exempted pursuant to that paragraph.

      7.  As used in this section, “maximum occupancy” means, in the following order of priority:

      (a) The maximum occupancy of the facility in which live entertainment is provided, as determined by the State Fire Marshal or the local governmental agency that has the authority to determine the maximum occupancy of the facility;

      (b) If such a maximum occupancy has not been determined, the maximum occupancy of the facility designated in any permit required to be obtained in order to provide the live entertainment; or

      (c) If such a permit does not designate the maximum occupancy of the facility, the actual seating capacity of the facility in which the live entertainment is provided.

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

________