[Rev. 3/18/2013 2:44:43 PM]

Link to Page 2798

 

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

ê1997 Statutes of Nevada, Page 2799 (Chapter 571, AB 415)ê

 

take the person arrested before a proper magistrate without unnecessary delay; or

      (c) The person in charge of the vehicle is unable to provide for its custody or removal within:

             (1) Twenty-four hours after abandoning the vehicle on any freeway, United States highway or other primary arterial highway.

             (2) Seventy-two hours after abandoning the vehicle on any other highway.

________

 

CHAPTER 572, AB 436

Assembly Bill No. 436–Committee on Government Affairs

CHAPTER 572

AN ACT relating to water; requiring the Southern Nevada Water Authority to establish a program for the management of the ground water in the Las Vegas Valley Ground Water Basin; authorizing the Southern Nevada Water Authority to assess fees to fund certain activities related to the program; providing for the preparation of certain reports relating to the program; creating an advisory committee and defining its duties; requiring the submission of biennial reports to the Legislature; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  As used in sections 2 to 16, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 2 to 6, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 2.  “Advisory committee” means the Advisory Committee for the Management of Ground Water in the Las Vegas Valley Ground Water Basin.

      Sec. 3.  “Basin” means the Las Vegas Valley Ground Water Basin.

      Sec. 4.  “Board of directors” means the board of directors of the Southern Nevada Water Authority.

      Sec. 5.  “Management program” means the program for the management of ground water in the Las Vegas Valley Ground Water Basin.

      Sec. 6.  “Southern Nevada Water Authority” means the political subdivision of the State of Nevada created on July 25, 1991, by a cooperative agreement entered into on that date pursuant to the provisions of NRS 277.080 to 277.180, inclusive.

      Sec. 7.  1.  The Southern Nevada Water Authority shall establish a program for the management of ground water in the Las Vegas Valley Ground Water Basin.

      2.  The management program must provide for:

      (a) The oversight, protection and stabilization of the supply of ground water in the basin; and

      (b) The prevention of contamination and long-term depletion of ground water in the basin.

      3.  The board of directors shall administer the management program.


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

ê1997 Statutes of Nevada, Page 2800 (Chapter 572, AB 436)ê

 

      Sec. 8.  1.  The Advisory Committee for the Management of Ground Water in the Las Vegas Valley Ground Water Basin is hereby created. The advisory committee consists of:

      (a) Seven members to be appointed by the board of directors, including:

             (1) Two persons who own and operate domestic wells located in the basin;

             (2) One representative of an organization that owns and operates a quasi-municipal well located in the basin;

             (3) One representative of an industrial or commercial user of ground water which is located in the basin;

             (4) One representative of a private water company which operates in the basin;

             (5) One consumer whose water service is provided entirely by a municipal water purveyor which is located in the basin; and

             (6) One representative of a municipal water purveyor that owns and operates wells located in the basin;

      (b) The State Engineer, or his designated representative, who is an ex officio nonvoting member of the advisory committee; and

      (c) The Administrator of the Division of Environmental Protection of the State Department of Conservation and Natural Resources, or his designated representative, who is an ex officio nonvoting member of the advisory committee.

      2.  Members of the advisory committee serve without compensation, except that while engaged in the business of the advisory committee, each member is entitled to the per diem allowance and travel expenses provided for state officers and employees generally, to be paid by the Southern Nevada Water Authority.

      3.  After the initial term, the term of each appointed member is 2 years. Members may be reappointed. At the expiration of the term of a member, or if a member resigns or is otherwise unable to complete his term, the board of directors shall, not later than 90 days after the vacancy occurs, appoint a person pursuant to subsection 4 to fill the vacancy.

      4.  In replacing a member described in:

      (a) Subparagraph (1), (2) or (3) of paragraph (a) of subsection 1, the board of directors shall consider recommendations solicited from a representative sampling of owners of domestic wells, persons and organizations associated with quasi-municipal wells, and industrial and commercial users of ground water, respectively.

      (b) Subparagraph (4), (5) or (6) of paragraph (a) of subsection 1, the board of directors shall consider recommendations solicited from the various entities that comprise the Southern Nevada Water Authority.

      Sec. 9.  1.  The advisory committee shall meet at least once every 3 months.

      2.  The advisory committee shall elect from its members a chairman who shall serve for a term of 2 years. Any vacancy occurring in the chairmanship must be filled by majority vote of the members of the advisory committee for the remainder of the unexpired term.


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

ê1997 Statutes of Nevada, Page 2801 (Chapter 572, AB 436)ê

 

      Sec. 10.  The advisory committee:

      1.  Shall discuss issues related to the basin and the management program.

      2.  Shall advise the board of directors concerning the progress, activities and general direction of the management program.

      3.  May provide written recommendations to the board of directors regarding the Southern Nevada Water Authority’s management of the basin and the Southern Nevada Water Authority’s exercise of its powers related thereto. Any such recommendation may be made only by a majority vote of all of the voting members of the advisory committee, and each dissenting opinion to the recommendation must be fully documented and included with the recommendation.

      Sec. 11.  1.  At least once each calendar year, the advisory committee and the Southern Nevada Water Authority shall conduct a joint workshop to discuss issues related to the basin and the management program. The Southern Nevada Water Authority shall give public notice of the workshop in accordance with NRS 241.020. Members of the general public, owners of wells and other interested persons must be encouraged to attend the joint workshop.

      2.  The issues and concerns expressed on the record by persons attending the joint workshop must be recorded in writing and appended to the summary and joint reports prepared pursuant to section 12 of this act.

      Sec. 12.  1.  On or before December 31 of each year, the Southern Nevada Water Authority shall prepare a summary report which describes the activities of the management program and the advisory committee during the preceding calendar year.

      2.  On or before December 31 of each even-numbered year, the Southern Nevada Water Authority and the advisory committee shall prepare a joint report and submit the report to the Director of the Legislative Counsel Bureau for transmittal to the Nevada Legislature. The joint report must include, without limitation:

      (a) A summary of all of the activities, studies and research conducted on behalf of the management program during the previous 2 calendar years;

      (b) A detailed assessment of the joint public workshops conducted by the Southern Nevada Water Authority and the advisory committee during the previous 2 calendar years, including documentation of the comments made on the record by the members of the general public who attended the workshops;

      (c) A statement of income and expenditures related to the management program; and

      (d) An assessment from the advisory committee concerning the status of the ground water in the basin and the activities related to the management of the basin, including any recommendations concerning:

             (1) Whether activities, fees and other aspects of the management program should be continued, modified or terminated; and

             (2) Plans for additional activities for the management of ground water in the basin, and for the protection of the aquifer in which the basin is located.


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

ê1997 Statutes of Nevada, Page 2802 (Chapter 572, AB 436)ê

 

      Sec. 13.  1.  The Southern Nevada Water Authority may establish and collect each calendar year a fee to be assessed on users of ground water in the basin. Money raised from the fees must be used as provided in section 14 of this act.

      2.  Except as otherwise provided in this section:

      (a) Users of ground water, other than owners of domestic wells, may be assessed a fee each calendar year of not more than $10 per acre-foot, or its equivalent, of ground water in the basin to which they have a water right in that year.

      (b) Owners of domestic wells may be assessed a flat fee each calendar year of not more than $10.

      3.  The maximum fees specified in subsection 2 may be adjusted once each year for inflation. The maximum amount of the adjustment must be determined by multiplying the respective amounts of the fees by the percentage of inflation, if any. The Consumer Price Index published by the United States Department of Labor for July preceding the year for which the adjustment is made must be used in determining the percentage of inflation.

      4.  The maximum fees may be increased by an amount which is greater than the amount of the adjustment for inflation as calculated pursuant to subsection 3 only if:

      (a) A majority of all of the voting members of the advisory committee recommends the change;

      (b) The board of directors approves the recommendation; and

      (c) The increase is approved by the Legislature.

      5.  As used in this section, “water right” means the legal right to use water that has been appropriated pursuant to chapters 533 and 534 of NRS by means of application, permit, certificate, decree or claim of vested right.

      Sec. 14.  Money collected pursuant to section 13 of this act must be used to:

      1.  Develop and distribute information promoting education and the conservation of ground water in the basin.

      2.  Perform such comprehensive inventories of wells of all types located within the basin as may be needed. Such inventories must be done in conjunction with the State Engineer.

      3.  Prepare, for use by the advisory committee, such cost-benefit analyses relating to the recharge of the ground water in the basin as may be needed.

      4.  Develop recommendations for additional activities for the management of the basin and the protection of the aquifer in which the basin is located.

      5.  Perform such other duties as are necessary for the Southern Nevada Water Authority and the advisory committee to carry out the provisions of this act related to the management program.

      Sec. 15.  The board of directors may conduct such investigations as are necessary to carry out the provisions of this act. To carry out the management program, the board of directors shall regularly consult with the State Engineer and the Division of Environmental Protection of the State Department of Conservation and Natural Resources.


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

ê1997 Statutes of Nevada, Page 2803 (Chapter 572, AB 436)ê

 

      Sec. 16.  Nothing in this act supersedes the authority granted to:

      1.  The State Engineer in chapters 532, 533 and 534 of NRS.

      2.  The State Environmental Commission and the Division of Environmental Protection of the State Department of Conservation and Natural Resources in chapters 444, 445A, 445B, 459, 486A, 519A and 590 of NRS.

      Sec. 17.  1.  For the initial term of the members of the Advisory Committee for the Management of Ground Water in the Las Vegas Valley Ground Water Basin described in paragraph (a) of subsection 1 of section 8 of this act, the board of directors shall appoint:

      (a) Four of the members to 3-year terms; and

      (b) Three of the members to 2-year terms.

      2.  In making the initial appointment to the advisory committee for those members described in subparagraphs (1), (2) and (3) of paragraph (a) of subsection 1 of section 8 of this act, the board of directors shall take into consideration recommendations by the citizens advisory group of the Southern Nevada Water Authority. Such recommendations by the citizens advisory group must be submitted by the citizens advisory group to the board of directors not later than 60 days after the effective date of this act.

      Sec. 18.  If, on or before December 31, 1998, the Advisory Committee for the Management of Ground Water in the Las Vegas Valley Ground Water Basin determines by majority vote of all of the voting members of the advisory committee that the program for the management of ground water in the Las Vegas Valley Ground Water Basin established by the Southern Nevada Water Authority is not working as intended, the advisory committee shall include in the joint report submitted to the 70th session of the Nevada Legislature the advisory committee’s recommendation that the management program be terminated.

      Sec. 19.  The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

      Sec. 20.  1.  This act becomes effective upon passage and approval.

      2.  If the Advisory Committee for the Management of Ground Water in the Las Vegas Valley Ground Water Basin pursuant to section 18 of this act includes in the joint report to the 70th session of the Nevada Legislature the advisory committee’s recommendation that the management program be terminated, this act expires by limitation 90 days after the date on which the report is submitted to the Director of the Legislative Counsel Bureau pursuant to section 12 of this act.

________

 


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

ê1997 Statutes of Nevada, Page 2804ê

 

CHAPTER 573, AB 437

Assembly Bill No. 437–Committee on Government Affairs

CHAPTER 573

AN ACT relating to the secretary of state; requiring the refund of a fee paid to file a document if the document is not processed in a timely manner; creating petty cash accounts; repealing the revolving account for the office of the secretary of state; eliminating the duty of the secretary of state to maintain custody of the deeds and conveyances of the state; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 225 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.

      Sec. 2.  1.  The secretary of state shall:

      (a) Establish the time within which the various documents required to be filed with the secretary of state must be processed by the employees of his office. The times must be established in such a manner as is necessary to increase or maintain the efficiency of the office, giving consideration to the appropriate performance of the duties of the secretary of state.

      (b) Post the times established pursuant to paragraph (a) in each office of the secretary of state in a location that is clearly visible to members of the general public.

      2.  If a document required to be filed with the secretary of state is not processed within the time established pursuant to subsection 1, the secretary of state shall refund the fee required to be paid to file the document.

      Sec. 3.  1.  A petty cash account of the secretary of state is hereby created for each building in which offices of employees of the secretary of state are located in the sum of $500 each.

      2.  The state board of examiners shall:

      (a) Define the purposes for which the petty cash accounts may be used; and

      (b) Provide that replenishment claims must be paid from the budgeted resources of the office of the secretary of state and processed as other claims against the state are paid.

      Sec. 4.  A record shall be deemed to be filed with the secretary of state if it is placed in the care, custody and control of the office of the secretary of state. Such a record may be disposed of only in accordance with a schedule for retention and disposition approved by the committee to approve schedules for the retention and disposition of official state records pursuant to procedures set forth in NRS 239.080.

      Sec. 5.  NRS 225.070 is hereby amended to read as follows:

      225.070  [1.]  The secretary of state has custody of and shall carefully preserve in the division of state library and archives of the department of museums, library and arts or in his office [:

      (a) All deeds and conveyances belonging to the state.

      (b) All] all written contracts to which the state is a party, except those required to be deposited elsewhere.


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

ê1997 Statutes of Nevada, Page 2805 (Chapter 573, AB 437)ê

 

      [2.  The deeds and conveyances must be recorded in well-bound books, and the original papers must not be permitted to be taken out of the office unless in the possession of the secretary of state or his deputy.]

      Sec. 6.  NRS 225.080 is hereby amended to read as follows:

      225.080  The secretary of state shall:

      1.  [Keep a fair register and also attest] Attest all the official acts and proceedings of the governor, and affix the seal of the state, with proper attestations, to all commissions, pardons and other public instruments to which the signature of the governor is required. A copy of these instruments must be filed in the office of the secretary of state.

      2.  Lay all papers, minutes and vouchers relative to the official acts and proceedings of the governor before either house of the legislature when required by [such] that house.

      3.  Keep the official bond of the treasurer, while the bond is in force.

      4.  Permit all the records and transactions of his office to be open at all times to the inspection and examination of any committee of either [branch] house of the legislature.

      5.  Furnish information, in writing, upon any subject relating to the duties of his office to the governor, whenever required.

      6.  Deliver , [up,] in good order and condition, to his successor, all records, books, papers and other things belonging to his office.

      Sec. 7.  NRS 225.105 is hereby amended to read as follows:

      225.105  The secretary of state [is authorized to] may prescribe standards for appropriate forms to be used pursuant to NRS 104.9403 to 104.9407, inclusive, which [shall] must be accepted by the county recorder of every county of this state at the lower rate prescribed by [such] those sections. The secretary of state may, by regulation, establish the fees that must be paid to obtain copies of these forms.

      Sec. 8.  NRS 225.140 is hereby amended to read as follows:

      225.140  1.  [In] Except as otherwise provided in subsection 2, in addition to other fees authorized by law, the secretary of state shall charge and collect the following fees:

 

For a copy of any law, joint resolution, transcript of record, or other paper on file or of record in his office, other than a document required to be filed pursuant to Title 24 of NRS, per page ...................................................................            $1.00

For a copy of any document required to be filed pursuant to Title 24 of NRS, per page.......................................................................................................                .50

For certifying to any such copy and use of the state seal, for each impression         [$5.00

For registering a mark, insigne or name..................................................            50.00

For the delivery of an attested certificate of the record of the registration of a mark, insigne or name]..................................................................................            10.00

For each passport or other document signed by the governor and attested by the secretary of state.................................................................................            10.00

For a negotiable instrument returned unpaid........................................            10.00

 


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

ê1997 Statutes of Nevada, Page 2806 (Chapter 573, AB 437)ê

 

      2.  The secretary of state:

      (a) Shall charge a reasonable fee for searching records and documents kept in his office.

      (b) May charge or collect any filing or other fees for services rendered by him to the State of Nevada, any local governmental agency or agency of the Federal Government, or any officer thereof in his official capacity or respecting his office or official duties.

      (c) May not charge or collect a filing or other fee for:

             (1) Attesting extradition papers or executive warrants for other states.

             (2) Any commission or appointment issued or made by the governor, either for the use of the state seal or otherwise.

      (d) May charge a reasonable fee, not to exceed $100, for providing special services including, but not limited to, providing service on the day it is requested or within 24 hours, accepting documents filed by [telecopier,] facsimile machine, and other use of new technology.

      (e) Shall charge a fee, not to exceed the actual cost to the secretary of state, for providing:

             (1) A copy of any record kept in his office that is stored on a computer or on microfilm if the copy is provided on a tape, disk or other medium used for the storage of information by a computer or on duplicate film.

             (2) Access to his computer data base on which records are stored.

      3.  [All] Except as otherwise provided in section 2 of this act, all fees collected pursuant to paragraph (d) of subsection 2 must be deposited with the state treasurer for credit to the account for special services of the secretary of state in the state general fund. Any amount remaining in the account at the end of a fiscal year in excess of $2,000,000 must be transferred to the state general fund. Money in the account may be transferred to the secretary of state’s operating general fund budget account and must only be used to create and maintain the capability of the office of the secretary of state to provide special services, including, but not limited to, providing service:

      (a) On the day it is requested or within 24 hours; or

      (b) Necessary to increase or maintain the efficiency of the office.

Any transfer of money from the account for expenditure by the secretary of state must be approved by the interim finance committee.

      Sec. 9.  NRS 225.155 is hereby amended to read as follows:

      225.155  1.  [If] Except as otherwise provided in section 2 of this act, if any money is paid to the secretary of state which exceeds by less than $15 the amount required by law to be paid, the secretary of state shall deposit the excess payment with the state treasurer for credit to the state general fund.

      2.  If a payment exceeds the amount required by law to be paid by $15 or more, the secretary of state shall, if practicable, refund the excess. If the secretary of state cannot make the refund, he shall deposit the excess payment with the state treasurer for credit to the state general fund.

      3.  Any person who claims a refund of an excess payment which is not refunded pursuant to subsection 2 must, within 30 days after the date of the payment, make a claim for a refund to the state board of examiners.


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

ê1997 Statutes of Nevada, Page 2807 (Chapter 573, AB 437)ê

 

      Sec. 10.  NRS 225.165 is hereby amended to read as follows:

      225.165  1.  The secretary of state may establish a trust account, designated the secretary of state’s trust account for advance fees, with the state treasurer in which persons who require the services of the secretary of state may deposit advance fees for payment of those services. Unless the appropriate fee accompanies the request for service, upon providing the service, the secretary of state shall cause the account to be debited.

      2.  The secretary of state shall prescribe, by regulation [, the] :

      (a) The services for which advance fees may be deposited with the state treasurer and paid for upon providing the service [.] ; and

      (b) The minimum amount of advance fees each person must maintain in the trust account.

      3.  The state treasurer, upon consultation with the secretary of state and the state controller, shall prescribe the procedure for the deposit and withdrawal of money from the trust account.

      Sec. 11.  Chapter 78 of NRS is hereby amended by adding thereto a new section to read as follows:

      An incorporator or officer of a corporation may authorize the secretary of state in writing to replace any page of a document submitted for filing on an expedited basis, before the actual filing, and to accept the page as if it were part of the originally signed filing. The signed authorization of the incorporator or officer to the secretary of state permits, but does not require, the secretary of state to alter the original document as requested.

      Sec. 12.  NRS 78.039 is hereby amended to read as follows:

      78.039  1.  The [secretary of state shall refuse to accept for filing the articles of incorporation of any corporation whose name is the same as or deceptively similar to the name of a corporation, limited partnership or limited-liability company existing under the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state, or a name to which the exclusive right is, at the time, reserved in the manner provided under the laws of this state,] name proposed for a corporation must be distinguishable from the names of all other artificial persons organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names are on file in the office of the secretary of state. If a proposed name is not so distinguishable, the secretary of state shall return the articles of incorporation containing the proposed name to the incorporator, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

      2.  For the purposes of this section [,] and NRS 78.040, a proposed name is not distinguished from a registered or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name or any combination of these.

      3.  The name of a corporation whose charter has been revoked, whose existence has terminated, which has merged and is not the surviving corporation, or which for any other reason is no longer in good standing in this state is available for use by any other artificial person.


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

ê1997 Statutes of Nevada, Page 2808 (Chapter 573, AB 437)ê

 

      Sec. 13.  NRS 78.150 is hereby amended to read as follows:

      78.150  1.  [Each] A corporation organized under the laws of this state shall, [within 60 days] on or before the first day of the second month after the filing of its articles of incorporation with the secretary of state, [and annually thereafter on or before the last day of the month in which the anniversary date of its incorporation occurs in each year,] file with the secretary of state a list [of its president, secretary and treasurer and all of its directors and a designation of its resident agent in this state, signed by an officer of the corporation.

      2.  Upon filing the list of officers and directors and designation of resident agent,] , on a form furnished by him, containing:

      (a) The name of the corporation;

      (b) The file number of the corporation, if known;

      (c) The names and titles of all of its required officers and the names of all of its directors;

      (d) The mailing or street address, either residence or business, of each officer and director listed, following the name of the officer or director; and

      (e) The signature of an officer of the corporation certifying that the list is true, complete and accurate.

      2.  The corporation shall annually thereafter, on or before the last day of the month in which the anniversary date of incorporation occurs in each year, file with the secretary of state, on a form furnished by him, an amended list containing all of the information required in subsection 1. If the corporation has had no changes in its required officers and directors since its previous list was filed, no amended list need be filed if an officer of the corporation certifies to the secretary of state as a true and accurate statement that no changes in the required officers or directors has occurred.

      3.  Upon filing a list of officers and directors, or certifying that no changes have occurred, the corporation shall pay to the secretary of state a fee of $85.

      [3.]4.  The secretary of state shall, 60 days before the last day for filing the annual list required by subsection [1,] 2, cause to be mailed to each corporation which is required to comply with the provisions of NRS 78.150 to 78.185, inclusive, and which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due pursuant to subsection 3 and a reminder to file a list of officers and directors or a certification of no change. Failure of any corporation to receive [the forms] a notice or form does not excuse it from the penalty imposed by law.

      [4.]5.  If the list to be filed pursuant to the provisions of subsection 1 or 2 is defective in any respect or the fee required by subsection 3 is not paid, the secretary of state may return the list for correction or payment.

      6.  An annual list for a corporation not in default which is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year.

      Sec. 14.  NRS 78.180 is hereby amended to read as follows:

      78.180  1.  Except as otherwise provided in subsections 3 and 4, the secretary of state shall reinstate a corporation which has forfeited its right to transact business under the provisions of this chapter and restore to the corporation its right to carry on business in this state, and to exercise its corporate privileges and immunities, if it:

 


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

ê1997 Statutes of Nevada, Page 2809 (Chapter 573, AB 437)ê

 

corporation its right to carry on business in this state, and to exercise its corporate privileges and immunities, if it:

      (a) Files with the secretary of state the list [and designation] required by NRS 78.150; and

      (b) Pays to the secretary of state:

             (1) The annual filing fee and penalty set forth in NRS 78.150 and 78.170 for each year or portion thereof during which its charter was revoked; and

             (2) A fee of $50 for reinstatement.

      2.  When the secretary of state reinstates the corporation, he shall:

      (a) Immediately issue and deliver to the corporation a certificate of reinstatement authorizing it to transact business as if the filing fee had been paid when due; and

      (b) Upon demand, issue to the corporation one or more certified copies of the certificate of reinstatement.

      3.  The secretary of state shall not order a reinstatement unless all delinquent fees and penalties have been paid, and the revocation of the charter occurred only by reason of failure to pay the fees and penalties.

      4.  If a corporate charter has been revoked pursuant to the provisions of this chapter and has remained revoked for a period of 5 consecutive years, the charter must not be reinstated.

      Sec. 15.  NRS 78.185 is hereby amended to read as follows:

      78.185  1.  Except as otherwise provided in subsection 2, if a [corporation’s charter is revoked under the provisions of this chapter or any previous act of the legislature of Nevada and the name of the corporation, or one deceptively similar to it,] corporation applies to reinstate or revive its charter but its name has been legally acquired by another corporation [, a limited partnership or a limited-liability company existing under the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state, or is a name, the exclusive right to which has been reserved in the manner provided under the laws of this state, before the application of the defaulting corporation for reinstatement, the defaulting] or other artificial person organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose name is on file and in good standing with the secretary of state, the corporation shall in its application for reinstatement submit in writing to the secretary of state some other name under which it desires its corporate existence to be reinstated [.] or revived. If that name is [sufficiently distinctive and different from any name] distinguishable from

all other names reserved or otherwise [in use,] on file and in good standing, the secretary of state shall issue to the [defaulting] applying corporation a certificate of reinstatement or revival under that new name.

      2.  If the [defaulting] applying corporation submits the written acknowledged consent of the [corporation, limited partnership or limited-liability company using a] artificial person having a name, or the person who has reserved a name, which is [the same as or similar to the defaulting corporation’s] not distinguishable from the old name of the applying corporation or a new name it has submitted, it may be reinstated or revived under that name.


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

ê1997 Statutes of Nevada, Page 2810 (Chapter 573, AB 437)ê

 

      3.  For the purposes of this section, a proposed name is not distinguished from a name used or reserved solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name or any combination of those.

      Sec. 16.  NRS 78.755 is hereby amended to read as follows:

      78.755  1.  The secretary of state, for services relating to his official duties and the records of his office, shall charge and collect the fees designated in NRS 78.760 to 78.785, inclusive.

      2.  The secretary of state may accept the filing of documents by [telecopier] facsimile machine and employ new technology, as it is developed, to aid in the performance of all duties required by law. The secretary of state may establish rules, fee schedules and regulations not inconsistent with law, for filing documents by [telecopier] facsimile machine and for the adoption, employment and use of new technology in the performance of his duties.

      Sec. 17.  Chapter 82 of NRS is hereby amended by adding thereto a new section to read as follows:

      An incorporator or officer of a corporation may authorize the secretary of state in writing to replace any page of a document submitted for filing on an expedited basis, before the actual filing, and to accept the page as if it were part of the originally signed filing. The signed authorization of the incorporator or officer to the secretary of state permits, but does not require, the secretary of state to alter the original document as requested.

      Sec. 18.  NRS 82.096 is hereby amended to read as follows:

      82.096  1.  The [secretary of state shall refuse to accept for filing the articles of any corporation whose name is the same as or deceptively similar to the name of a for-profit or nonprofit corporation, limited partnership or limited-liability company existing under the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state or a name to which the exclusive right is, at the time, reserved in the manner provided under the laws of this state,] name of a corporation must be distinguishable from the names of all other artificial persons organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names are on file in the office of the secretary of state. If a proposed name is not so distinguishable, the secretary of state shall return the articles of incorporation containing it to

the incorporator, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

      2.  For the purposes of this section [,] and NRS 82.101, a proposed name is not distinguished from a registered or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination of these.

      3.  The name of a corporation whose charter has been revoked, whose existence has terminated, which has merged and is not the surviving corporation, or which for any other reason is no longer in good standing in this state is available for use by any other artificial person.


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

ê1997 Statutes of Nevada, Page 2811 (Chapter 573, AB 437)ê

 

      Sec. 19.  NRS 82.141 is hereby amended to read as follows:

      82.141  1.  [Every corporation must] A corporation shall have a resident agent in the manner provided in NRS 78.090, 78.095, [subsections 1 to 4, inclusive, of NRS 78.097 and NRS] 78.097 and 78.110. The resident agent and the corporation shall comply with the provisions of those sections.

      2.  A corporation [that fails to file a certificate of acceptance executed by the new resident agent within 30 days after the death, resignation or removal of its former resident agent shall be deemed in default and is subject to the provisions of NRS 82.161 and 82.166.] is subject to the provisions of NRS 78.150 to 78.185, inclusive, except that:

      (a) The fee for filing a list is $15;

      (b) The penalty added for default is $5; and

      (c) The fee for reinstatement is $25.

      Sec. 20.  NRS 82.531 is hereby amended to read as follows:

      82.531  1.  The fee for filing articles of incorporation, amendments to or restatements of articles of incorporation, certificates pursuant to NRS 82.061 and section 24 of [this act;] Senate Bill No. 297 of this session and documents for dissolution is $25 for each document.

      2.  Except as otherwise provided in NRS [82.146 and 82.171] 82.141 and subsection 1, the fees for filing documents are those set forth in NRS 78.765 to 78.785, inclusive.

      Sec. 21.  NRS 82.546 is hereby amended to read as follows:

      82.546  1.  Any corporation which did exist or is existing pursuant to the laws of this state may, upon complying with the provisions of NRS [82.171,] 78.150 and 82.141, procure a renewal or revival of its charter for any period, together with all the rights, franchises, privileges and immunities, and subject to all its existing and preexisting debts, duties and liabilities secured or imposed by its original charter and amendments thereto, or its existing charter, by filing:

      (a) A certificate with the secretary of state, which must set forth:

             (1) The name of the corporation, which must be the name of the corporation at the time of the renewal or revival, or its name at the time its original charter expired.

             (2) The name and street address of the resident agent of the filing corporation, and his mailing address if different from his street address.

             (3) The date when the renewal or revival of the charter is to commence or be effective, which may be, in cases of a revival, before the date of the certificate.

             (4) Whether or not the renewal or revival is to be perpetual, and, if not perpetual, the time for which the renewal or revival is to continue.

             (5) That the corporation desiring to renew or revive its charter is, or has been, organized and carrying on the business authorized by its existing or original charter and amendments thereto, and desires to renew or continue through revival its existence pursuant to and subject to the provisions of this chapter.

      (b) A list of its president, secretary and treasurer and all of its directors and their post office box and street addresses, either residence or business.


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

ê1997 Statutes of Nevada, Page 2812 (Chapter 573, AB 437)ê

 

      2.  A corporation whose charter has not expired and is being renewed shall cause the certificate to be signed by its president or vice president and secretary or assistant secretary, and acknowledged by those officers before any person authorized by law to administer oaths or affirmations. The certificate must be approved by a majority of the last-appointed surviving directors.

      3.  A corporation seeking to revive its original or amended charter shall cause the certificate to be signed by its president or vice president and secretary or assistant secretary, and acknowledged by those officers before any person authorized by law to administer oaths or affirmations. The execution and filing of the certificate must be approved unanimously by the last-appointed surviving directors of the corporation and must contain a recital that unanimous consent was secured. The corporation shall pay to the secretary of state the fee required to establish a new corporation pursuant to the provisions of this chapter.

      4.  The filed certificate, or a copy thereof which has been certified under the hand and seal of the secretary of state, must be received in all courts and places as prima facie evidence of the facts therein stated and of the existence and incorporation of the corporation named therein.

      Sec. 22.  Chapter 86 of NRS is hereby amended by adding thereto a new section to read as follows:

      An organizer, manager or managing member of a limited-liability company may authorize the secretary of state in writing to replace any page of a document submitted for filing on an expedited basis, before the actual filing, and to accept the page as if it were part of the originally signed filing. The signed authorization of the organizer, manager or managing member to the secretary of state permits, but does not require, the secretary of state to alter the original document as requested.

      Sec. 23.  NRS 86.171 is hereby amended to read as follows:

      86.171  1.  The name of a limited-liability company formed under the provisions of this chapter must contain the words “Limited-Liability Company,” “Limited Company,” or “Limited” or the abbreviations “Ltd.,” “L.L.C.,” “L.C.,” “LLC” or “LC.” The word “Company” may be abbreviated as “Co.”

      2.  The name [of the company may not be the same as, or deceptively similar to the name of a limited-liability company, limited partnership or corporation existing under the laws of this state or a foreign limited-liability company, foreign limited partnership or foreign corporation authorized to transact business in this state, or a name the exclusive right to which is, at the time, reserved in the manner provided under the laws of this state,] proposed for a limited-liability company must be distinguishable from the names of all other artificial persons organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names are on file in the office of the secretary of state. If a proposed name is not so distinguishable, the secretary of state shall return the articles of organization to the organizer, unless the written acknowledged consent of the holder of the registered [or reserved] name to use the same name or the requested similar name accompanies the articles of organization.


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

ê1997 Statutes of Nevada, Page 2813 (Chapter 573, AB 437)ê

 

      3.  For the purposes of this section and NRS 86.176, a proposed name is not distinguished from a registered or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination of these.

      4.  The name of a limited-liability company whose charter has been revoked, whose existence has terminated, which has merged and is not the surviving company, or which for any other reason is no longer in good standing is available for use by any other artificial person.

      Sec. 24.  NRS 86.263 is hereby amended to read as follows:

      86.263  1.  [Each] A limited-liability company shall, on or before the last day of the month in which the anniversary date of its formation occurs , [in each year,] file with the secretary of state , on a form furnished by him, a list [of its managers or, if none, its members, and a designation of its resident agent, signed by a manager or, if there is no manager, by a member of the company.

      2.  Upon filing the list of managers or members and designation of resident agent,] containing:

      (a) The name of the limited-liability company;

      (b) The file number of the limited-liability company, if known;

      (c) The names and titles of all of its managers or, if there is no manager, all of its managing members;

      (d) The mailing or street address, either residence or business, of each manager or managing member listed, following the name of the manager or managing member; and

      (e) The signature of a manager or managing member of the limited-liability company certifying that the list is true, complete and accurate.

      2.  The limited-liability company shall annually thereafter, on or before the last day of the month in which the anniversary date of organization occurs, file with the secretary of state, on a form furnished by him, an amended list containing all of the information required in subsection 1. If the limited-liability company has had no changes in its managers or, if there is no manager, its managing members, since its previous list was filed, no amended list need be filed if a manager or managing member of the limited-liability company certifies to the secretary of state as a true and accurate statement that no changes in the managers or managing members have occurred.

      3.  Upon filing the list of managers or managing members, or certifying that no changes have occurred, the limited-liability company shall pay to the secretary of state a fee of $85.

      [3.]4.  The secretary of state shall, 60 days before the last day for filing the list required by subsection 1, cause to be mailed to each limited-liability company required to comply with the provisions of this section, which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due under subsection 3 and a reminder to file a list of managers or managing members or a certification of no change. Failure of any company to receive [the forms] a notice or form does not excuse it from the penalty imposed by law.


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

ê1997 Statutes of Nevada, Page 2814 (Chapter 573, AB 437)ê

 

      [4.]5.  If the list to be filed pursuant to the provisions of subsection 1 or 2 is defective or the fee required by subsection 3 is not paid, the secretary of state may return the list for correction or payment.

      6.  An annual list [of managers or members and designation of resident agent] for a limited-liability company not in default received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year.

      Sec. 25.  NRS 86.276 is hereby amended to read as follows:

      86.276  1.  Except as otherwise provided in subsections 3 and 4, the secretary of state shall reinstate any limited-liability company which has forfeited its right to transact business under the provisions of this chapter and restore to the company its right to carry on business in this state, and to exercise its privileges and immunities, if it:

      (a) Files with the secretary of state the list [and designation] required by NRS 86.263; and

      (b) Pays to the secretary of state:

             (1) The annual filing fee and penalty set forth in NRS 86.263 and 86.272 for each year or portion thereof during which its charter has been revoked; and

             (2) A fee of $50 for reinstatement.

      2.  When the secretary of state reinstates the limited-liability company, he shall:

      (a) Immediately issue and deliver to the company a certificate of reinstatement authorizing it to transact business as if the filing fee had been paid when due; and

      (b) Upon demand, issue to the company one or more certified copies of the certificate of reinstatement.

      3.  The secretary of state shall not order a reinstatement unless all delinquent fees and penalties have been paid, and the revocation of the charter occurred only by reason of failure to pay the fees and penalties.

      4.  If a company’s charter has been revoked pursuant to the provisions of this chapter and has remained revoked for a period of 5 consecutive years, the charter must not be reinstated.

      Sec. 26.  NRS 86.278 is hereby amended to read as follows:

      86.278  1.  Except as otherwise provided in subsection 2, if a limited-liability [company’s charter is revoked under the provisions of this chapter and the name of the limited-liability company, or one deceptively similar to it,] company applies to reinstate its charter but its name has been legally acquired or reserved by another limited-liability company [, a limited partnership or a corporation existing under the laws of this state or foreign limited-liability company, foreign limited partnership or foreign corporation authorized to transact business in this state, or is a name the exclusive right to which has been reserved in the manner provided under the laws of this state, before the application of the defaulting limited-liability company for reinstatement, the defaulting company shall in its application for reinstatement] or other artificial person organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose name is on file and in good standing with the secretary of state, the company shall submit in writing to the secretary of state some other name under which it desires its existence to be reinstated.


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

ê1997 Statutes of Nevada, Page 2815 (Chapter 573, AB 437)ê

 

desires its existence to be reinstated. If that name is [sufficiently distinctive and different from any name] distinguishable from all other names reserved or otherwise [in use,] on file and in good standing, the secretary of state shall issue to the [defaulting] applying limited-liability company a certificate of reinstatement under that new name.

      2.  If the [defaulting] applying limited-liability company submits the written acknowledged consent of the [limited-liability company, corporation or limited partnership using a] artificial person having the name, or the person reserving [a] the name, which is [the same as or similar to the defaulting limited-liability company’s] not distinguishable from the old name of the applying company or a new name it has submitted, it may be reinstated under that name.

      3.  For the purposes of this section, a proposed name is not distinguished from a name used or reserved solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name or any combination of those.

      Sec. 27.  Chapter 87 of NRS is hereby amended by adding thereto the provisions set forth as sections 28 and 29 of this act.

      Sec. 28.  A managing partner of a registered limited-liability partnership may authorize the secretary of state in writing to replace any page of a document submitted for filing on an expedited basis, before the actual filing, and to accept the page as if it were part of the originally signed filing. The signed authorization of the managing partner to the secretary of state permits, but does not require, the secretary of state to alter the original document as requested.

      Sec. 29.  1.  Except as otherwise provided in subsection 2, if a registered limited-liability partnership applies to reinstate its right to transact business but its name has been legally acquired by another registered limited-liability partnership or any other artificial person organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose name is on file and in good standing with the secretary of state, the applying registered limited-liability partnership shall submit in writing to the secretary of state some other name under which it desires its right to transact business to be reinstated. If that name is distinguishable from all other names reserved or otherwise on file and in good standing, the secretary of state shall issue to the applying registered limited-liability partnership a certificate of reinstatement under that new name.

      2.  If the applying registered limited-liability partnership submits the written acknowledged consent of the artificial person having the name, or the person who has reserved the name, that is not distinguishable from the old name of the applying registered limited-liability partnership or a new name it has submitted, it may be reinstated under that name.

      3.  For the purposes of this section, a proposed name is not distinguished from a name used or reserved solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination thereof.

      Sec. 30.  NRS 87.450 is hereby amended to read as follows:

      87.450  1.  The name of a registered limited-liability partnership must contain the words “Limited-Liability Partnership” or “Registered Limited-Liability Partnership” or the abbreviation “L.L.P.” or “LLP” as the last words or letters of the name [.]


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

ê1997 Statutes of Nevada, Page 2816 (Chapter 573, AB 437)ê

 

Liability Partnership” or the abbreviation “L.L.P.” or “LLP” as the last words or letters of the name [.] and must be distinguishable from the names of all other artificial persons organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names are on file in the office of the secretary of state. If the name of the registered limited-liability partnership on a certificate of registration of limited-liability partnership submitted to the secretary of state is not distinguishable from a name on file, the secretary of state shall return the certificate to the person who signed it unless the written acknowledged consent of the holder of the registered name or reserved name to use the name accompanies the certificate.

      2.  For the purposes of this section, a proposed name is not distinguished from a registered or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination of these.

      3.  The name of a registered limited-liability partnership whose right to transact business has been forfeited, whose existence has terminated, which has merged and is not the surviving partnership, or which for any other reason is no longer in good standing in this state is available for use by any other registered limited-liability partnership or other artificial person.

      Sec. 31.  NRS 87.510 is hereby amended to read as follows:

      87.510  1.  A registered limited-liability partnership shall annually, [not more than 60 days] on or before the last day of the month in which the anniversary date of [its registration occurs, file with the secretary of state a list of the names and business addresses of its managing partners in this state and a designation of its resident agent in this state. The information must be submitted on a form prescribed by the secretary of state and signed by a managing partner of the registered limited-liability partnership. The form must be accompanied by] the filing of its certificate of registration of limited partnership or certificate of continuance with the secretary of state occurs, file with the secretary of state, on a form furnished by him, a list containing:

      (a) The name of the registered limited-liability partnership;

      (b) The file number of the registered limited-liability partnership, if known;

      (c) The names of all of its managing partners;

      (d) The mailing or street address, either residence or business, of each managing partner; and

      (e) The signature of a managing partner of the registered limited-liability partnership certifying that the list is true, complete and accurate.

      2.  If the registered limited-liability partnership has had no changes in its managing partners since its previous list was filed, no annual list need be filed if a managing partner certifies to the secretary of state as a true and accurate statement that no changes in the managing partners have occurred.

      3.  Upon filing the list of managing partners, or certifying that no changes have occurred, the registered limited-liability partnership shall pay to the secretary of state a fee of $85.


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

ê1997 Statutes of Nevada, Page 2817 (Chapter 573, AB 437)ê

 

      [2.]4.  The secretary of state shall, at least 60 days before the last day for filing the annual list required by subsection 1, cause to be mailed to the registered limited-liability partnership [the form required to be completed and filed with the secretary of state pursuant to this section.] a notice of the fee due pursuant to subsection 3 and a reminder to file the annual list of managing partners or a certification of no change. The failure of any registered limited-liability partnership to receive [the] a notice or form does not excuse it from complying with the provisions of this section.

      [3.]5.  If the list to be filed pursuant to the provisions of subsection 1 is defective, or the fee required by subsection 3 is not paid, the secretary of state may return the list for correction or payment.

      6.  An annual list that is filed by a registered limited-liability partnership which is not in default more than 60 days before it is due shall be deemed an amended list for the previous year.

      Sec. 32.  Chapter 88 of NRS is hereby amended by adding thereto the provisions set forth as sections 33 and 34 of this act.

      Sec. 33.  A general partner of a limited partnership may authorize the secretary of state in writing to replace any page of a document submitted for filing on an expedited basis, before the actual filing, and to accept the page as if it were part of the originally signed filing. The signed authorization of the general partner to the secretary of state permits, but does not require, the secretary of state to alter the original document as requested.

      Sec. 34.  1.  Except as otherwise provided in subsection 2, if a limited partnership applies to reinstate its right to transact business but its name has been legally acquired by another limited partnership or any other artificial person organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose name is on file and in good standing with the secretary of state, the applying limited partnership shall submit in writing to the secretary of state some other name under which it desires its right to be reinstated. If that name is distinguishable from all other names reserved or otherwise on file and in good standing, the secretary of state shall issue to the applying limited partnership a certificate of reinstatement under that new name.

      2.  If the applying limited partnership submits the written acknowledged consent of the limited partnership or other artificial person having the name, or the person who has reserved the name, that is not distinguishable from the old name of the applying limited partnership or a new name it has submitted, it may be reinstated under that name.

      3.  For the purposes of this section, a proposed name is not distinguished from a name used or reserved solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination thereof.

      Sec. 35.  NRS 88.320 is hereby amended to read as follows:

      88.320  1.  The name of [each] a limited partnership as set forth in its certificate of limited partnership:

      [1.](a) Must contain without abbreviation the words “limited partnership”;

      [2.](b) May not contain the name of a limited partner unless:


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

ê1997 Statutes of Nevada, Page 2818 (Chapter 573, AB 437)ê

 

      [(a)](1) It is also the name of a general partner or the corporate name of a corporate general partner; or

      [(b)](2) The business of the limited partnership had been carried on under that name before the admission of that limited partner;

      [3.  May not be deceptively similar to, the name reserved or otherwise in use by any corporation, limited partnership or limited-liability company organized under the laws of this state or contemplated to be organized in this state, unless the corporation, limited partnership or limited-liability company already bearing or reserving that name files with the secretary of state its written consent to the use of the similar name by the limited partnership whose certificate is offered for filing;

      4.  May not be the same as the name reserved or otherwise in use by any corporation or limited partnership organized under the laws of this state or contemplated to be organized in this state; and

      5.  May not be the same as or deceptively similar to the name reserved or otherwise in use by any foreign corporation, foreign limited partnership or foreign limited-liability company unless the foreign corporation, foreign limited partnership or foreign limited-liability company already bearing or reserving that name files with the secretary of state its] and

      (c) Must be distinguishable from the names of all other artificial persons organized or registered under chapter 78, 78A, 80, 81, 82, 84, 86, 87, 88 or 89 of NRS whose names are on file in the office of the secretary of state. If the name on the certificate of limited partnership submitted to the secretary of state is not distinguishable from any name on file, the secretary of state shall return the certificate to the filer, unless the written acknowledged consent to the use of the same or the requested similar name [by the limited partnership whose certificate is offered for filing.] of the holder of the registered or reserved name accompanies the certificate of limited partnership.

      2.  For the purposes of this section, a proposed name is not distinguished from a registered or reserved name solely because one or the other contains distinctive lettering, a distinctive mark, a trade-mark or a trade name, or any combination thereof.

      3.  The name of a limited partnership whose right to transact business has been forfeited, whose existence has terminated, which has merged and is not the surviving limited partnership, or which for any other reason is no longer in good standing in this state is available for use by any other limited partnership or other artificial person.

      Sec. 36.  NRS 88.395 is hereby amended to read as follows:

      88.395  1.  [Each] A limited partnership shall [,] annually, on or before the last day of the month in which the anniversary date of the filing of its certificate of limited partnership occurs , [in each year,] file with the secretary of state , on a form furnished by him, a list [of its general partners and a designation of its resident agent in this state, signed by a general partner of the limited partnership. The list must, after the name of each general partner listed thereon, set forth his post office box or street address.] containing:

      (a) The name of the limited partnership;

      (b) The file number of the limited partnership, if known;


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

ê1997 Statutes of Nevada, Page 2819 (Chapter 573, AB 437)ê

 

      (c) The names of all of its general partners;

      (d) The mailing or street address, either residence or business, of each general partner; and

      (e) The signature of a general partner of the limited partnership certifying that the list is true, complete and accurate.

      2.  If [addresses are not thus stated for all listed partners on any list offered for filing, the secretary of state may refuse to file it, and] the limited partnership [for which the list has been offered for filing is subject to all the provisions relating to failure to file such a list within or at the times specified, unless such a list is subsequently submitted for filing conformably to the provisions of NRS 88.400.] has had no changes in its general partners since its previous list was filed, no amended list need be filed if a general partner certifies to the secretary of state as a true and accurate statement that no changes in the general partners have occurred.

      3.  Upon filing the list of general partners, or certifying that no changes have occurred, the limited partnership shall pay to the secretary of state a fee of $85.

      4.  The secretary of state shall, 60 days before the last day for filing the list required by subsection 1, cause to be mailed to each limited partnership required to comply with the provisions of this section which has not become delinquent [the blank forms to be completed and filed with the secretary of state.] a notice of the fee due pursuant to the provisions of subsection 3 and a reminder to file the annual list or a certificate of no change. Failure of any limited partnership to receive [the forms] a notice or form does not excuse it from the penalty imposed by NRS 88.400.

      5.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the secretary of state may return the list for correction or payment.

      6.  An annual list for a limited partnership not in default that is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year.

      Sec. 37.  NRS 88.410 is hereby amended to read as follows:

      88.410  1.  Except as otherwise provided in subsections 3 and 4, the secretary of state may:

      (a) Reinstate any limited partnership which has forfeited its right to transact business; and

      (b) Restore to the limited partnership its right to carry on business in this state, and to exercise its privileges and immunities,

upon the filing with the secretary of state of the list [and designation] required pursuant to NRS 88.395, and upon payment to the secretary of state of the annual filing fee and penalty set forth in NRS 88.395 and 88.400 for each year or portion thereof during which the certificate has been revoked, and a fee of $50 for reinstatement.

      2.  When payment is made and the secretary of state reinstates the limited partnership to its former rights he shall:

      (a) Immediately issue and deliver to the limited partnership a certificate of reinstatement authorizing it to transact business as if the filing fee had been paid when due; and


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

ê1997 Statutes of Nevada, Page 2820 (Chapter 573, AB 437)ê

 

      (b) Upon demand, issue to the limited partnership one or more certified copies of the certificate of reinstatement.

      3.  The secretary of state shall not order a reinstatement unless all delinquent fees and penalties have been paid, and the revocation occurred only by reason of failure to pay the fees and penalties.

      4.  If a limited partnership’s certificate has been revoked pursuant to the provisions of this chapter and has remained revoked for a period of 5 years, the certificate must not be reinstated.

      Sec. 38.  NRS 88.430 is hereby amended to read as follows:

      88.430  1.  Except as provided in subsection 4, a limited partner is not liable for the obligations of a limited partnership unless he is also a general partner or, in addition to the exercise of his rights and powers as a limited partner, he participates in the control of the business. However, if the limited partner participates in the control of the business, he is liable only to persons who transact business with the limited partnership reasonably believing, based upon the limited partner’s conduct, that he is a general partner.

      2.  A limited partner does not participate in the control of the business within the meaning of subsection 1 solely by doing one or more of the following:

      (a) Being a contractor for or an agent or employee of the limited partnership or of a general partner or being an officer, director or shareholder of a general partner that is a corporation;

      (b) Consulting with and advising a general partner with respect to the business of the limited partnership;

      (c) Acting as surety for the limited partnership guaranteeing or assuming one or more specific obligations of the limited partnership;

      (d) Taking any action required or permitted by law to bring or pursue a derivative action in the right of the limited partnership;

      (e) Requesting or attending a meeting of partners;

      (f) Proposing, approving or disapproving, by voting or otherwise, one or more of the following matters:

             (1) The dissolution and winding up of the limited partnership;

             (2) The sale, exchange, lease, mortgage, pledge or other transfer of all or substantially all of the assets of the limited partnership;

             (3) The incurrence of indebtedness by the limited partnership other than in the ordinary course of its business;

             (4) A change in the nature of the business;

             (5) The admission or removal of a general partner;

             (6) The admission or removal of a limited partner;

             (7) A transaction involving an actual or potential conflict of interest between a general partner and the limited partnership or the limited partners;

             (8) An amendment to the partnership agreement or certificate of limited partnership; or

             (9) Matters related to the business of the limited partnership not otherwise enumerated in this subsection, which the partnership agreement states in writing may be subject to the approval or disapproval of limited partners;


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

ê1997 Statutes of Nevada, Page 2821 (Chapter 573, AB 437)ê

 

      (g) Winding up the limited partnership pursuant to NRS 88.560; or

      (h) Exercising any right or power permitted to limited partners under this chapter and not specifically enumerated in this subsection.

      3.  The enumeration in subsection 2 does not mean that the possession or exercise of any other powers by a limited partner constitutes participation by him in the business of the limited partnership.

      4.  A limited partner who knowingly permits his name to be used in the name of the limited partnership, except under circumstances permitted by paragraph (b) of subsection [2] 1 of NRS 88.320, is liable to creditors who extend credit to the limited partnership without actual knowledge that the limited partner is not a general partner.

      Sec. 39.  1.  NRS 82.146, 82.151, 82.156, 82.161, 82.166, 82.171 and 82.176 are hereby repealed.

      2.  NRS 225.160 is hereby repealed.

      Sec. 40.  At the end of the 1996-1997 fiscal year, the state controller shall transfer the assets and liabilities, to the extent the assets are not encumbered for the 1996-1997 fiscal year, of the revolving account for the office of the secretary of state that is abolished pursuant to subsection 2 of sec. 39 of this act to the state general fund.

      Sec. 41.  1.  This section, section 3, subsection 2 of section 39 and section 40 of this act become effective on July 1, 1997.

      2.  Sections 1, 4 to 38, inclusive, and subsection 1 of section 39 of this act become effective on October 1, 1997.

      3.  Section 2 of this act becomes effective on October 1, 1997, and expires by limitation on July 1, 1999.

________

 

CHAPTER 574, AB 447

Assembly Bill No. 447–Committee on Ways and Means

CHAPTER 574

AN ACT relating to state financial administration; extending the prospective reversion date for the appropriation previously made for perinatal care; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Section 3 of chapter 629, Statutes of Nevada 1995, at page 2385, is hereby amended to read as follows:

       Sec. 3.  1.  There is hereby appropriated from the state general fund to the health division of the department of human resources the sum of $100,000 for the establishment of the perinatal care and obstetrical access pilot program.

       2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, [1997,] 1999, and reverts to the state general fund as soon as all payments of money committed have been made.


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

ê1997 Statutes of Nevada, Page 2822 (Chapter 574, AB 447)ê

 

      Sec. 2.  1.  Any money remaining, after June 30, 1997, from the appropriation for which the prospective reversion was extended by section 1 of this act must be expended solely for direct client service and related programs. The money must not be expended to pay for any administrative cost.

      2.  The health division of the department of human resources shall, on or before January 15, 1999, submit a written report to the director of the legislative counsel bureau for transmittal to the legislature that contains information which assesses and measures whether the pilot program supported by the appropriation was successful.

      Sec. 3.  This act becomes effective upon passage and approval or on June 30, 1997, whichever occurs earlier.

________

 

CHAPTER 575, AB 451

Assembly Bill No. 451–Assemblymen Manendo, Chowning, Segerblom, Bache, Ohrenschall, Freeman, Price, Herrera, Neighbors, Amodei, Von Tobel, Hickey, Williams, Sandoval, Buckley, Berman, Nolan, Koivisto, Gustavson, Collins, Anderson, Lambert, Cegavske, Goldwater, de Braga, Marvel, Dini, Krenzer, Mortenson, Lee, Braunlin, Parks, Evans, Close, Giunchigliani, Arberry, Humke and Tiffany

CHAPTER 575

AN ACT relating to motor vehicles; providing for the issuance of special license plates for the support of public education; imposing a fee for the issuance or renewal of such license plates; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 482 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in this subsection, the department, in cooperation with the department of education, shall design, prepare and issue license plates for the support of public education using any colors that the department deems appropriate. The department shall not design, prepare or issue the license plates unless it receives at least 250 applications for the issuance of those plates.

      2.  The department may issue license plates for the support of public education for a passenger car or light commercial vehicle upon application by a person who is entitled to license plates pursuant to NRS 482.265 and who otherwise complies with the requirements for registration and licensing pursuant to this chapter. A person may request that personalized prestige license plates issued pursuant to NRS 482.3667 be combined with license plates for the support of public education if that person pays the fees for the personalized prestige license plates in addition to the fees for the license plates for the support of public education pursuant to subsections 3 and 4.


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

ê1997 Statutes of Nevada, Page 2823 (Chapter 575, AB 451)ê

 

      3.  The fee for license plates for the support of public education is $35, in addition to all other applicable registration and license fees and motor vehicle privilege taxes. The license plates are renewable upon the payment of $10.

      4.  In addition to all fees for the license, registration and privilege taxes, a person who requests a set of license plates for the support of public education must pay for the initial issuance of the plates an additional fee of $25 and for each renewal of the plates an additional fee of $20 to be used to purchase textbooks and laboratory equipment and pay for field trips for the benefit of pupils in this state.

      5.  The department shall deposit the fees collected pursuant to subsection 4 with the state treasurer for credit to the fund for public education created pursuant to section 5 of this act.

      6.  If, during a registration year, the holder of license plates issued pursuant to the provisions of this section disposes of the vehicle to which the plates are affixed, he may retain the plates and:

      (a) Affix them to another vehicle that meets the requirements of this section if the transfer and registration fees are paid as set out in this chapter; or

      (b) Within 30 days after removing the plates from the vehicle, return them to the department.

      Sec. 2.  (Deleted by amendment.)

      Sec. 3.  NRS 482.2703 is hereby amended to read as follows:

      482.2703  1.  The director may order the preparation of sample license plates which must be of the same design and size as regular license plates or license plates issued pursuant to NRS 482.384. The director shall ensure that:

      (a) Each license plate issued pursuant to this subsection, regardless of its design, is inscribed with the word SAMPLE and an identical designation which consists of the same group of three numerals followed by the same group of three letters; and

      (b) The designation of numerals and letters assigned pursuant to paragraph (a) is not assigned to a vehicle registered pursuant to this chapter or chapter 706 of NRS.

      2.  The director may order the preparation of sample license plates which must be of the same design and size as any of the special license plates issued pursuant to NRS 482.3667 to 482.3823, inclusive, section 1 of Assembly Bill No. 32 of this session and section 1 of [this act.] Assembly Bill No. 589 of this session and section 1 of this act. The director shall ensure that:

      (a) Each license plate issued pursuant to this subsection, regardless of its design, is inscribed with the word SAMPLE and the number zero in the location where any other numerals would normally be displayed on a license plate of that design; and

      (b) The number assigned pursuant to paragraph (a) is not assigned to a vehicle registered pursuant to this chapter or chapter 706 of NRS.

      3.  The director may establish a fee for the issuance of sample license plates of not more than $15 for each license plate.


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

ê1997 Statutes of Nevada, Page 2824 (Chapter 575, AB 451)ê

 

      4.  A decal issued pursuant to NRS 482.271 may be displayed on a sample license plate issued pursuant to this section.

      5.  All money collected from the issuance of sample license plates must be deposited in the state treasury for credit to the motor vehicle fund.

      6.  A person shall not affix a sample license plate issued pursuant to this section to a vehicle. A person who violates the provisions of this subsection is guilty of a misdemeanor.

      Sec. 4.  NRS 482.500 is hereby amended to read as follows:

      482.500  1.  Except as otherwise provided in subsection 2, whenever upon application any duplicate or substitute certificate of registration, decal or number plate is issued, the following fees must be paid:

 

For a certificate of registration............................................................................ $5.00

For every substitute number plate or set of plates............................................ 5.00

For every duplicate number plate or set of plates............................................ 10.00

For every decal displaying a county name........................................................... .50

For every other decal (license plate sticker or tab)............................................ 5.00

 

      2.  The following fees must be paid for any replacement plate or set of plates issued for the following special license plates:

      (a) For any special plate issued pursuant to NRS 482.3667, 482.3672, 482.3675, 482.370 to 482.376, inclusive, or 482.379 to 482.3816, inclusive, section 1 of Assembly Bill No. 32 of this session and section 1 of [this act,] Assembly Bill No. 589 of this session and section 1 of this act, a fee of $10.

      (b) For any special plate issued pursuant to NRS 482.368, 482.3765, 482.377 or 482.378, a fee of $5.

      (c) For any souvenir license plate issued pursuant to NRS 482.3825 or sample license plate issued pursuant to NRS 482.2703, a fee equal to that established by the director for the issuance of those plates.

      3.  The fees which are paid for duplicate number plates and decals displaying county names must be deposited with the state treasurer for credit to the motor vehicle fund and allocated to the department to defray the costs of duplicating the plates and manufacturing the decals.

      4.  As used in this section:

      (a) “Duplicate number plate” means a license plate or a set of license plates issued to a registered owner which repeat the code of a plate or set of plates previously issued to the owner to maintain his registration using the same code.

      (b) “Substitute number plate” means a license plate or a set of license plates issued in place of a previously issued and unexpired plate or set of plates. The plate or set of plates does not repeat the code of the previously issued plate or set.

      Sec. 5.  Chapter 386 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Money received by the state board pursuant to section 1 of this act must be deposited in the fund for public education which is hereby created as a special revenue fund in the state treasury. Money in the fund must not be commingled with money from other sources. The state board shall disburse the money in the fund to schools in this state, upon the request of the school or the board of trustees of the school district in which the school is located, giving preference to those schools that the state board or the board of trustees of the school district in which the school is located has classified as serving a significant proportion of pupils who are economically disadvantaged.


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

ê1997 Statutes of Nevada, Page 2825 (Chapter 575, AB 451)ê

 

disburse the money in the fund to schools in this state, upon the request of the school or the board of trustees of the school district in which the school is located, giving preference to those schools that the state board or the board of trustees of the school district in which the school is located has classified as serving a significant proportion of pupils who are economically disadvantaged.

      2.  A school that receives money pursuant to this section may expend the money only to purchase textbooks and laboratory equipment and to pay for field trips for pupils.

      Sec. 6.  Sections 3 and 4 of this act become effective at 12:02 a.m. on October 1, 1997.

      Sec. 7.  The amendatory provisions of this act expire by limitation on October 1, 2001, if on that date the department of motor vehicles and public safety has received fewer than 250 applications for the issuance of a license plate pursuant to section 1 of this act.

________

 

CHAPTER 576, AB 453

Assembly Bill No. 453–Assemblyman Neighbors

CHAPTER 576

AN ACT relating to education; revising the provisions governing the adjustment of apportionments from the distributive school account to compensate for delinquent taxes on certain property; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 387.1243 is hereby amended to read as follows:

      387.1243  1.  The first apportionment based on an estimated number of pupils and special education program units and succeeding apportionments are subject to adjustment from time to time as the need therefor may appear.

      2.  The apportionments to a school district may be adjusted during a fiscal year by the department of education, upon approval by the board of examiners and the interim finance committee, if the department of taxation and the county assessor in the county in which the school district is located certify to the department of education that the school district will not receive the tax levied pursuant to subsection 1 of NRS 387.195 on property of the Federal Government located within the county if:

      (a) The leasehold interest, possessory interest, beneficial interest or beneficial use of the property is subject to taxation pursuant to NRS 361.157 and 361.159 and one or more lessees or users of the property are delinquent in paying the tax; and

      (b) The total amount of tax owed but not paid for the fiscal year by any such lessees and users is at least 5 percent of the proceeds that the school district would have received from the tax levied pursuant to subsection 1 of NRS 387.195.


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

ê1997 Statutes of Nevada, Page 2826 (Chapter 576, AB 453)ê

 

If a lessee or user pays the tax owed after the school district’s apportionment has been increased in accordance with the provisions of this subsection to compensate for the tax owed, the school district shall repay to the distributive school account in the state general fund an amount equal to the tax received from the lessee or user for the year in which the school district received an increased apportionment, not to exceed the increase in apportionments made to the school district pursuant to this subsection.

      3.  A final adjustment must be computed as soon as practicable following the close of the school year, but not later than August 25. The final computation must be based upon the actual counts of pupils required to be made for the computation of basic support and the limits upon the support of special education programs, except that for any year when the total enrollment of pupils and children described in paragraphs (a), (b), (c) and (d) of subsection 1 of NRS 387.123 is greater on the last day of any school month after the second school month and the increase in enrollment shows at least:

      (a) A 3 percent gain, basic support as computed from first month enrollment must be increased by 2 percent.

      (b) A 6 percent gain, basic support as computed from first month enrollment must be increased by an additional 2 percent.

      [3.] 4.  If the final computation of apportionment for any school district exceeds the actual amount paid to the school district during the school year, the additional amount due must be paid before September 1. If the final computation of apportionment for any school district is less than the actual amount paid to the school district during the school year, the difference must be repaid to the state distributive school account in the state general fund by the school district before September 25.

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

________

 

CHAPTER 577, AB 454

Assembly Bill No. 454–Assemblymen Humke, Close, Lee, Mortenson, Parks, Amodei, Neighbors, Segerblom, Marvel, Hettrick, Herrera and Carpenter

CHAPTER 577

AN ACT relating to municipal obligations; eliminating the authority of a municipality to propose the issuance or incurrence of general obligation bonds at a primary municipal election or a primary general election; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 350.020 is hereby amended to read as follows:

      350.020  1.  Except as otherwise [permitted] provided by subsection 3, [when any] if a municipality proposes to issue or incur general obligations, the proposal must be submitted to the electors of the municipality at a special election called for that purpose or the next [primary or] general municipal election or [primary or] general state election.


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

ê1997 Statutes of Nevada, Page 2827 (Chapter 577, AB 454)ê

 

special election called for that purpose or the next [primary or] general municipal election or [primary or] general state election.

      2.  A special election may be held only if the governing body of the municipality determines, by a unanimous vote, that an emergency exists. The determination made by the governing body is conclusive unless it is shown that the governing body acted with fraud or a gross abuse of discretion. An action to challenge the determination made by the governing body must be commenced within 15 days after the governing body’s determination is final. As used in this subsection, “emergency” means any [unexpected] occurrence or combination of occurrences which requires immediate action by the governing body of the municipality to prevent or mitigate a substantial financial loss to the municipality or to enable the governing body to provide an essential service to the residents of the municipality.

      3.  If payment of a general obligation of the municipality is additionally secured by a pledge of gross or net revenue of a project to be financed by its issue, and the governing body determines, by an affirmative vote of two-thirds of the members elected to the governing body, that the pledged revenue will at least equal the amount required in each year for the payment of interest and principal, without regard to any option reserved by the municipality for early redemption, the municipality may, after a public hearing, incur this general obligation without an election unless, within 60 days after publication of a resolution of intent to issue the bonds, a petition is presented to the governing body signed by not less than 5 percent of the registered voters of the municipality who together with any corporate petitioners own not less than 2 percent in assessed value of the taxable property of the municipality. Any member elected to the governing body whose authority to vote is limited by charter, statute or otherwise may vote on the determination required to be made by the governing body pursuant to this subsection. The determination by the governing body becomes conclusive on the last day for filing the petition. For the purpose of this subsection, the number of registered voters must be determined as of the close of registration for the last preceding general election and assessed values must be determined from the next preceding final assessment roll. An authorized corporate officer may sign such a petition whether or not he is a registered voter. The resolution of intent need not be published in full, but the publication must include the amount of the obligation and the purpose for which it is to be incurred. Notice of the public hearing must be published at least 10 days before the day of the hearing. The publications must be made once in a newspaper of general circulation in the municipality. When published, the notice of the public hearing must be at least as large as 5 inches high by 4 inches wide.

      4.  A municipality may issue special or medium-term obligations without an election.

________

 


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

ê1997 Statutes of Nevada, Page 2828ê

 

CHAPTER 578, AB 455

Assembly Bill No. 455–Assemblymen Humke, Evans, Lambert, Hettrick, Von Tobel, Gustavson, Segerblom, Collins, Parks, Herrera, Koivisto, Lee, Manendo, Giunchigliani, Anderson, Buckley, Marvel, Williams, Goldwater, Braunlin, Close, Mortenson, Neighbors, Tiffany, Amodei, Bache, Chowning, Arberry, Carpenter and Sandoval

CHAPTER 578

AN ACT relating to roads; urging a regional transportation commission or local government that is considering the placement of a new road within its jurisdiction to advertise the location of the proposed new road; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  1.  The Legislature of the State of Nevada hereby urges a regional transportation commission created pursuant to chapter 373 of NRS or a local government that is considering the placement of a new road within its jurisdiction to advertise the location of the proposed new road by radio, television and newspaper advertisements and any other methods necessary to ensure that the residents of all real property that is located within 300 feet from the proposed new road are notified of its location at least 10 days before the regional transportation commission or local government renders a decision regarding the placement of the proposed new road.

      2.  As used in this section, “local government” has the meaning ascribed to it in NRS 354.474.

________

 

CHAPTER 579, AB 464

Assembly Bill No. 464–Committee on Ways and Means

CHAPTER 579

AN ACT making various appropriations for certain facilities for children; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  1.  There is hereby appropriated from the state general fund to Clark County for the demolition of certain old structures and the construction and expansion of the facilities at the Spring Mountain Youth Camp the sum of $3,250,000 for the fiscal year 1997-1998.

      2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2001, and reverts to the state general fund as soon as all payments of money committed have been made.


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

ê1997 Statutes of Nevada, Page 2829 (Chapter 579, AB 464)ê

 

the state general fund as soon as all payments of money committed have been made.

      Sec. 2.  1.  There is hereby appropriated from the state general fund to Clark County for the demolition of certain old structures and the construction and expansion of the facilities at the Spring Mountain Youth Camp the sum of $3,250,000 for the fiscal year 1998-1999.

      2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2001, and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 3.  1.  There is hereby appropriated from the state general fund to Humboldt County the sum of $750,000 for the construction of a juvenile detention facility.

      2.  Humboldt County may use the money appropriated by subsection 1 only if matching money is provided by Humboldt, Lander and Pershing counties from sources other than the appropriation in subsection 1.

      3.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2001, and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 4.  1.  There is hereby appropriated from the state general fund to Lyon County the sum of $1,250,000 for the construction of a regional facility for children for Carson City and Churchill, Douglas, Lyon and Storey counties.

      2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2001, and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 5.  1.  This section and sections 1, 3 and 4 of this act become effective on July 1, 1997.

      2.  Section 2 of this act becomes effective on July 1, 1998.

________

 

CHAPTER 580, AB 465

Assembly Bill No. 465–Committee on Ways and Means

CHAPTER 580

AN ACT relating to state financial administration; extending the prospective date for the reversion of certain previously appropriated money for the California-Nevada Super Speed Ground Transportation Commission; making an appropriation; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  1.  There is hereby appropriated from the state general fund to the City of Las Vegas the sum of $100,000 for funding of the activities of the California-Nevada Super Speed Ground Transportation Commission.


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

ê1997 Statutes of Nevada, Page 2830 (Chapter 580, AB 465)ê

 

      2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 1999, and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 2.  Section 2 of chapter 678, Statutes of Nevada 1995, at page 2590, is hereby amended to read as follows:

       Sec. 2.  Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, [1997,] 1999, and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 3.  This act becomes effective upon passage and approval or on June 29, 1997, whichever occurs earlier.

________

 

CHAPTER 581, AB 474

Assembly Bill No. 474–Committee on Ways and Means

CHAPTER 581

AN ACT making appropriations to Storey County to repair the damage resulting from the vandalism of the Virginia City Cemetery and to Lyon County for the costs related to building a fence around the Stockton Wells Station; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  There is hereby appropriated from the state general fund to Storey County the sum of $25,000 to repair the damage resulting from the vandalism of the Virginia City Cemetery.

      Sec. 2.  Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after the project is completed, and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 3.  1.  There is hereby appropriated from the state general fund to Lyon County the sum of $11,720 for the costs related to building a fence around Stockton Wells Station.

      2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 1999, and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 4.  This act becomes effective upon passage and approval or on June 30, 1997, whichever occurs earlier.

________

 


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

ê1997 Statutes of Nevada, Page 2831ê

 

CHAPTER 582, AB 482

Assembly Bill No. 482–Committee on Taxation

CHAPTER 582

AN ACT relating to special fuel; authorizing the operation or maintenance of certain motor vehicles on the highways of this state which are propelled by special fuel that is dyed and exempt from the tax imposed on that fuel; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 366.203 is hereby amended to read as follows:

      366.203  1.  Special fuel which is exempt from the tax pursuant to [subsection 1 of] NRS 366.200 must be dyed before it is removed for distribution from a rack. The dye added to the exempt special fuel must be of the color and concentration required by the regulations adopted by the Secretary of the Treasury pursuant to 26 U.S.C. § 4082.

      2.  [A] Except as otherwise provided in subsection 3, a person shall not operate or maintain on any highway in this state a motor vehicle which contains in the fuel tank of that vehicle special fuel which has been dyed.

      3.  A person who, pursuant to subsection 2, 3 or 4 of NRS 366.200 is exempt from the tax imposed by this chapter, may operate or maintain a motor vehicle on a highway in this state which contains in the fuel tank of that vehicle special fuel which has been dyed.

      4.  There is a rebuttable presumption that all special fuel which has not been dyed and which is sold or distributed in this state is for the purpose of propelling a motor vehicle.

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

________

 


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

ê1997 Statutes of Nevada, Page 2832ê

 

CHAPTER 583, AB 486

Assembly Bill No. 486–Committee on Education

CHAPTER 583

AN ACT relating to pupils; requiring the boards of trustees of school districts to create advisory boards to review school attendance; requiring the principal of a school to report to the appropriate local law enforcement agency the name of any pupil enrolled in the school who is a habitual truant; requiring a juvenile court to take certain actions against a pupil who is found to be a habitual truant; requiring the board of trustees of each school district to conduct a study to determine the feasibility of establishing a policy that requires pupils to remain on the school grounds during the period the pupils are required to be in school; making an appropriation; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 385.347 is hereby amended to read as follows:

      385.347  1.  The board of trustees of each school district in this state, in cooperation with associations recognized by the state board as representing licensed personnel in education in the district, shall adopt a program providing for the accountability of the school district to the residents of the district and to the state board for the quality of the schools and the educational achievement of the pupils in the district.

      2.  The board of trustees of each school district shall, on or before March 31 of each year, report to the residents of the district concerning:

      (a) The educational goals and objectives of the school district.

      (b) Pupil achievement for grades 4, 8 and 11 for each school in the district and the district as a whole. Unless otherwise directed by the department, the board of trustees of the district shall base its report on the results of the examinations administered pursuant to NRS 389.015 and shall compare the results of those examinations for the current school year with those of previous school years. In addition, the board shall also report the results of other examinations of pupil achievement administered to each pupil in the school district in grades other than 4, 8 and 11. The results of these examinations for the current school year must be compared with those of previous school years.

      (c) The ratio of pupils to teachers in kindergarten and at each grade level for each elementary school in the district and the district as a whole, the average class size for each required course of study for each secondary school in the district and the district as a whole, and other data concerning licensed and unlicensed employees of the school district.

      (d) A comparison of the types of classes that each teacher has been assigned to teach with the qualifications and licensure of the teacher, for each school in the district and the district as a whole.

      (e) The total expenditure per pupil for each school in the district and the district as a whole.

      (f) The curriculum used by the school district, including any special programs for pupils at an individual school.


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

ê1997 Statutes of Nevada, Page 2833 (Chapter 583, AB 486)ê

 

      (g) [Records] The annual rate of the attendance and truancy of pupils in all grades, for each school in the district and the district as a whole.

      (h) The annual rate of pupils who drop out of school in grades 9 to 12, inclusive, for each such grade, for each school in the district and for the district as a whole.

      (i) Efforts made by the school district and by each school in the district to increase communication with the parents of pupils in the district.

      (j) Records of incidents involving weapons or violence for each school in the district.

      (k) Records of the suspension and expulsion of pupils required or authorized pursuant to NRS 392.466 and 392.467.

      (l) The transiency rate of pupils for each school in the district and the district as a whole.

      (m) Each source of funding for the school district.

      (n) Such other information as is directed by the superintendent of public instruction.

      3.  The superintendent of public instruction shall:

      (a) Prescribe forms for the reports required pursuant to subsection 2 and provide the forms to the respective school districts.

      (b) Provide statistical information and technical assistance to the school districts to ensure that the reports provide comparable information with respect to each school in each district and among the districts.

      (c) Consult with a representative of:

             (1) The Nevada State Education Association;

             (2) The Nevada Association of School Boards;

             (3) The Nevada Association of School Administrators; and

             (4) The Nevada Parent Teachers Association,

concerning the program and consider any advice or recommendations submitted by the representatives with respect to the program.

      4.  On or before April 15 of each year, the board of trustees of each school district shall submit to the state board and the department the report made pursuant to subsection 2. On or before April 15 of each year, the board of trustees of each school district shall submit to the advisory board to review school attendance created in the county pursuant to section 4 of this act the information required in paragraph (g) of subsection 2. On or before June 15 of each year, the board of trustees of each school district shall submit to the state board [:] and the department:

      (a) A separate report summarizing the effectiveness of the district’s program of accountability during the school year; and

      (b) A description of the efforts the district has made to correct deficiencies identified in the report submitted pursuant to paragraph (a).

      5.  On or before February 1 of each year, the superintendent of public instruction shall analyze the information submitted to the state board and report to the legislature concerning the effectiveness of the programs of accountability adopted pursuant to this section. In even-numbered years, the report must be submitted to the legislative commission.


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

ê1997 Statutes of Nevada, Page 2834 (Chapter 583, AB 486)ê

 

      Sec. 2.  Chapter 392 of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 7, inclusive, of this act.

      Sec. 3.  The board of trustees of each school district shall adopt rules that require each public school in the district to include the accounting of attendance and, if feasible, tardiness of a pupil on each report card or other report of progress of the pupil. The report card or other report of progress must indicate the number of absences, if any, for the period covered by the report card or other report of progress.

      Sec. 4.  1.  There is hereby created in each county at least one advisory board to review school attendance. The membership of each such board may consist of:

      (a) One probation officer in the county who works on cases relating to juveniles, appointed by the judge or judges of the juvenile court of the county;

      (b) One representative of a law enforcement agency in the county who works on cases relating to juveniles, appointed by the judge or judges of the juvenile court of the county;

      (c) One representative of the district attorney for the county, appointed by the district attorney;

      (d) One parent or legal guardian of a pupil who is enrolled in a public school in the county, appointed by the president of the board of trustees of the school district;

      (e) One member of the board of trustees of the school district, appointed by the president of the board of trustees;

      (f) One school counselor or school teacher employed by the school district, appointed by an organization or association that represents licensed educational personnel in the school district;

      (g) One deputy sheriff in the county, appointed by the sheriff of the county; and

      (h) One representative of the local office of the division of child and family services of the department of human resources, appointed by the executive head of that office.

      2.  The members of each such board shall elect a chairman from among their membership.

      3.  Each member of such a board must be appointed for a term of 2 years. A vacancy in the membership of the board must be filled in the same manner as the original appointment for the remainder of the unexpired term.

      4.  Each member of such a board serves without compensation, except that, for each day or portion of a day during which a member of the board attends a meeting of the board or is otherwise engaged in the business of the board, he is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally. The board of trustees of the school district shall pay the per diem allowance and travel expenses from the general fund of the school district.

      Sec. 5.  The board of trustees of each school district shall provide administrative support to the advisory board to review school attendance created for its county pursuant to section 4 of this act.


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

ê1997 Statutes of Nevada, Page 2835 (Chapter 583, AB 486)ê

 

      Sec. 6.  1.  Each advisory board to review school attendance created pursuant to section 4 of this act shall:

      (a) Review the records of the rate of attendance and truancy of pupils submitted to the advisory board to review school attendance by the board of trustees of the school district pursuant to subsection 4 of NRS 385.347;

      (b) Identify factors that contribute to the rate of truancy of pupils in the school district;

      (c) Establish programs to reduce the rate of truancy of pupils in the school district;

      (d) At least annually, evaluate the effectiveness of those programs;

      (e) Establish a procedure for schools and school districts for the reporting of the status of pupils as habitual truants and the issuance of citations pursuant to section 7 of this act; and

      (f) Inform the parents and legal guardians of the pupils who are enrolled in the schools within the district of the policies and procedures adopted pursuant to the provisions of this section.

      2.  An advisory board to review school attendance created in a county pursuant to section 4 of this act may use the money appropriated pursuant to section 31 of this act and any other money made available to the advisory board for the use of programs to reduce the truancy of pupils in the school district.

The advisory board to review school attendance shall, on a quarterly basis, provide to the board of trustees of the school district an accounting of the money used by the advisory board to review school attendance to reduce the rate of truancy of pupils in the school district.

      Sec. 7.  1.  The principal of a school shall report to the appropriate local law enforcement agency the name of any pupil enrolled in that school who is a habitual truant.

      2.  Upon receipt of such a report, if it appears after investigation that the pupil is a habitual truant, the law enforcement agency shall prepare a written citation directing the pupil to appear in the proper juvenile court.

      3.  A copy of the citation must be delivered to the pupil and to the parent, guardian or any other person who has control or charge of the pupil by:

      (a) The local law enforcement agency;

      (b) A school police officer employed by the board of trustees of the school district; or

      (c) An attendance officer appointed by the board of trustees of the school district.

      4.  The citation must be in the form prescribed for misdemeanor citations in NRS 171.1773.

      Sec. 8.  NRS 392.130 is hereby amended to read as follows:

      392.130  1.  Within the meaning of this chapter, a pupil shall be deemed a truant who is absent from school without [a valid excuse acceptable to] the written approval of his teacher or the principal of the school [.] , unless the pupil is physically or mentally unable to attend school. The teacher or principal shall give his written approval for a pupil to be absent if an emergency exists or upon the request of a parent or legal guardian of the pupil. Before a pupil may attend or otherwise participate in school activities outside the classroom during regular classroom hours, he must receive the approval of the teacher or principal.


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

ê1997 Statutes of Nevada, Page 2836 (Chapter 583, AB 486)ê

 

school activities outside the classroom during regular classroom hours, he must receive the approval of the teacher or principal.

      2.  Absence for any part of a day shall be deemed [absence for the entire day within the meaning] a truancy for the purposes of this section.

      3.  [The] If a pupil is physically or mentally unable to attend school, the parent or legal guardian or other person having control or charge of the pupil shall notify the teacher or principal of the school orally or in writing within 3 days after the pupil returns to school.

      4.  An absence which has not been approved pursuant to subsection 1 or 3 shall be deemed an unapproved absence. In the event of an unapproved absence, the teacher, attendance officer or other school official shall deliver or cause to be delivered a written notice of truancy to the parent, legal guardian or other person having control or charge of the child. The written notice must be delivered to the parent, legal guardian or other person who has control of the child. The written notice must inform the parents or legal guardian of such absences in a form specified by the department.

      5.  As used in this section, “physically or mentally unable to attend” does not include a physical or mental condition for which a pupil is excused pursuant to NRS 392.050.

      Sec. 9.  NRS 392.140 is hereby amended to read as follows:

      392.140  1.  Any child [shall] who has been declared a truant three or more times within one school year must be declared [an] a habitual truant . [who shall have been deemed a truant three or more times within the school year.]

      2.  Any child who has once been declared [an] a habitual truant and who in an immediately succeeding year is absent from school without [a valid excuse] the written:

      (a) Approval of his teacher or the principal of the school pursuant to subsection 1 of NRS 392.130; or

      (b) Notice of his parent or legal guardian or other person who has control or charge over the pupil pursuant to subsection 3 of NRS 392.130,

may again be declared [an] a habitual truant.

      Sec. 10.  NRS 392.170 is hereby amended to read as follows:

      392.170  Upon the written complaint of any person, the board of trustees of a school district shall:

      1.  Make a full and impartial investigation of all charges against parents, guardians or other persons having control or charge of any child [,] who is 17 years of age or younger for violation of any of the provisions of NRS 392.040 to 392.110, inclusive, or 392.130 to 392.160, inclusive, [or 392.040 to 392.110, inclusive.] and sections 3 to 7, inclusive, of this act.

      2.  Make and file a written report of the investigation and the findings thereof in the records of the board.

      Sec. 11.  NRS 392.180 is hereby amended to read as follows:

      392.180  If it appears upon investigation that any parent, guardian or other person having control or charge of any child who is 17 years of age or younger has violated any of the provisions of NRS 392.040 to 392.110, inclusive, or 392.130 to 392.160, inclusive, [or 392.040 to 392.110, inclusive,] and sections 3 to 7, inclusive, of this act, the clerk of the board of trustees, except as otherwise provided in NRS 392.190, shall make and file in the proper court a criminal complaint against the parent, guardian or other person, charging the violation, and shall see that the charge is prosecuted by the proper authority.


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

ê1997 Statutes of Nevada, Page 2837 (Chapter 583, AB 486)ê

 

inclusive,] and sections 3 to 7, inclusive, of this act, the clerk of the board of trustees, except as otherwise provided in NRS 392.190, shall make and file in the proper court a criminal complaint against the parent, guardian or other person, charging the violation, and shall see that the charge is prosecuted by the proper authority.

      Sec. 12.  NRS 392.200 is hereby amended to read as follows:

      392.200  Any taxpayer, school administrator, school officer or deputy school officer in the State of Nevada may make and file in the proper court a criminal complaint against a parent, guardian or other person who has control or charge of any child who is 17 years of age or younger and who violates any of the provisions of law requiring the attendance of children in the public schools of this state.

      Sec. 13.  NRS 392.215 is hereby amended to read as follows:

      392.215  Any parent, guardian or other person who, with intent to deceive under NRS 392.040 to 392.110, inclusive, or 392.130 to 392.165, inclusive [:] , and sections 3 to 7, inclusive, of this act:

      1.  Makes a false statement concerning the age or attendance at school;

      2.  Presents a false birth certificate or record of attendance at school; or

      3.  Refuses to furnish a suitable identifying document, record of attendance at school or proof of change of name, upon request by a local law enforcement agency conducting an investigation in response to notification pursuant to subsection 4 of NRS 392.165,

of a child under 17 years of age who is under his control or charge, is guilty of a misdemeanor.

      Sec. 14.  Chapter 62 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  In addition to any other action authorized pursuant to the provisions of this chapter, if a child is found to be in need of supervision because he is a habitual truant, the court shall:

      (a) The first time the child is found to be in need of supervision because he is a habitual truant:

             (1) Order the child to pay a fine of not more than $100 pursuant to paragraph (l) of subsection 1 of NRS 62.211 and the administrative assessment required by NRS 62.223; and

             (2) If the child is 14 years of age or older, order the suspension of the child’s driver’s license for 30 days. If the child does not possess a driver’s license, the court shall prohibit the child from applying for a driver’s license for 30 days:

                   (I) Immediately following the date of the order if the child is eligible to apply for a driver’s license; or

                   (II) After the date he becomes eligible to apply for a driver’s license if the child is not eligible to apply for a driver’s license.

      (b) The second or any subsequent time the child is found to be in need of supervision because he is a habitual truant:

             (1) Order the child to:

                   (I) Pay a fine of not more than $200 pursuant to paragraph (l) of subsection 1 of NRS 62.211 and the administrative assessment required by NRS 62.223;


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

ê1997 Statutes of Nevada, Page 2838 (Chapter 583, AB 486)ê

 

                   (II) Perform not more than 10 hours of community service in compliance with the provisions of subsection 3; or

                   (III) Comply with the requirements set forth in both sub-subparagraphs (I) and (II); and

             (2) If the child is 14 years of age or older, order the suspension of the child’s driver’s license for 60 days. If the child does not possess a driver’s license, the court shall prohibit the child from applying for a driver’s license for 60 days:

                   (I) Immediately following the date of the order if the child is eligible to apply for a driver’s license; or

                   (II) After the date he becomes eligible to apply for a driver’s license if the child is not eligible to apply for a driver’s license.

      2.  The juvenile court may suspend the payment of a fine ordered pursuant to paragraph (a) of subsection 1 if the child attends school for 60 consecutive school days after the imposition of the fine, or has a valid excuse acceptable to his teacher or the principal for any absence from school within that period.

      3.  The community service ordered pursuant to subsection 1 must be performed:

      (a) For and under the supervising authority of a county, city, town or other political subdivision or agency of this state or a charitable organization that renders service to the community or its residents; and

      (b) At the child’s school of attendance, if practicable.

      4.  If the court issues an order suspending a child’s driver’s license pursuant to subsection 1, the judge shall require the child to surrender to the court all driver’s licenses then held by the child. The court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety the licenses, together with a copy of the order.

      5.  If the court issues an order delaying the ability of a child to apply for a driver’s license pursuant to subsection 1, the court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety a copy of the order.

      6.  The department of motor vehicles and public safety shall report a suspension pursuant to subsection 1 to an insurance company or its agent inquiring about the child’s driving record, but such a suspension must not be considered for the purpose of rating or underwriting.

      7.  The department of motor vehicles and public safety shall not require the child to submit to the tests and other requirements which are adopted by regulation pursuant to subsection 1 of NRS 483.495 as a condition of reinstatement or reissuance after a suspension of his license pursuant to subsection 1.

      Sec. 15.  NRS 62.132 is hereby amended to read as follows:

      62.132  [In]

      1.  Except as otherwise provided in subsection 2, in addition to the information required pursuant to NRS 62.130, a petition alleging that a child is in need of supervision must contain a list of the local programs to which the child was referred, and other efforts taken in the community, to modify the child’s behavior. [No] Except as otherwise provided in subsection 2, no court may decree that a child is in need of supervision unless it expressly finds that reasonable efforts were taken in the community to assist the child in ceasing the behavior for which he is alleged to be in need of supervision.


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

ê1997 Statutes of Nevada, Page 2839 (Chapter 583, AB 486)ê

 

unless it expressly finds that reasonable efforts were taken in the community to assist the child in ceasing the behavior for which he is alleged to be in need of supervision.

      2.  The provisions of this section do not apply to a child alleged to be in need of supervision because he is a habitual truant.

      Sec. 16.  NRS 62.211 is hereby amended to read as follows:

      62.211  1.  Except as otherwise provided in NRS 62.212 [,] and section 14 of this act, if the court finds that a child is within the purview of this chapter it shall so decree and may:

      (a) Place the child under supervision in his own home or in the custody of a suitable person elsewhere, upon such conditions as the court may determine. A program of supervision in the home may include electronic surveillance of the child. The legislature declares that a program of supervision that includes electronic surveillance is intended as an alternative to commitment and not as an alternative to probation, informal supervision or a supervision and consent decree.

      (b) Commit the child to the custody of a public or private institution or agency authorized to care for children, or place him in a home with a family. In committing a child to a private institution or agency the court shall select one that is required to be licensed by the department of human resources to care for such children, or, if the institution or agency is in another state, by the analogous department of that state. The court shall not commit a female child to a private institution without prior approval of the superintendent of the Caliente youth center, and shall not commit a male child to a private institution without prior approval of the superintendent of the Nevada youth training center.

      (c) Order such medical, psychiatric, psychological or other care and treatment as the court deems to be for the best interests of the child, except as otherwise provided in this section.

      (d) Order the parent, guardian, custodian or any other person to refrain from continuing the conduct which, in the opinion of the court, has caused or tended to cause the child to come within or remain under the provisions of this chapter.

      (e) If the child is less than 17 years of age, order the parent, guardian or custodian of the child, and any brothers, sisters or other persons living in the same household as the child over whom the court has jurisdiction to attend or participate in counseling, alone or together with the child, including, but not limited to, counseling regarding parenting skills, alcohol or substance abuse or techniques of dispute resolution.

      (f) Order the parent or guardian of the child to participate in a program designed to provide restitution to the victim of an act committed by the child or to perform public service.

      (g) Order the parent or guardian of the child to pay all or part of the cost of the proceedings, including, but not limited to, reasonable attorney’s fees, any costs incurred by the court and any costs incurred in the investigation of an act committed by the child and the taking into custody of the child.

      (h) Order the suspension of the child’s driver’s license for at least 90 days but not more than 2 years. If the child does not possess a driver’s license, the court may prohibit the child from receiving a driver’s license for at least 90 days but not more than 2 years:

 


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

ê1997 Statutes of Nevada, Page 2840 (Chapter 583, AB 486)ê

 

license, the court may prohibit the child from receiving a driver’s license for at least 90 days but not more than 2 years:

             (1) Immediately following the date of the order, if the child is eligible to receive a driver’s license.

             (2) After the date he becomes eligible to apply for a driver’s license, if the child is not eligible to receive a license on the date of the order.

If the court issues an order suspending the driver’s license of a child pursuant to this paragraph, the judge shall require the child to surrender to the court all driver’s licenses then held by the child. The court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety the licenses, together with a copy of the order. If, pursuant to this paragraph, the court issues an order delaying the ability of a child to receive a driver’s license, the court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety a copy of the order. The department of motor vehicles and public safety shall report a suspension pursuant to this paragraph to an insurance company or its agent inquiring about the child’s driving record, but such a suspension must not be considered for the purpose of rating or underwriting. The department of motor vehicles and public safety shall not require the child to submit to the tests and other requirements which are adopted by regulation pursuant to subsection 1 of NRS 483.495 as a condition of reinstatement or reissuance after a suspension of his license pursuant to this paragraph, unless the suspension resulted from his poor performance as a driver.

      (i) Place the child, when he is not in school, under the supervision of:

             (1) A public organization to work on public projects;

             (2) A public agency to work on projects to eradicate graffiti; or

             (3) A private nonprofit organization to perform other public service.

The person under whose supervision the child is placed shall keep the child busy and well supervised and shall make such reports to the court as it may require. As a condition of such a placement, the court may require the child or his parent or guardian to deposit with the court a reasonable sum of money to pay for the cost of policies of insurance against liability for personal injury and damage to property or for industrial insurance, or both, during those periods in which he performs the work, unless, in the case of industrial insurance, it is provided by the organization or agency for which he performs the work.

      (j) Permit the child to reside in a residence without the immediate supervision of an adult, or exempt the child from mandatory attendance at school so that the child may be employed full time, or both, if the child is at least 16 years of age, has demonstrated the capacity to benefit from this placement or exemption and is under the strict supervision of the juvenile division.

      (k) Require the child to provide restitution to the victim of the crime which the child has committed.

      (l) Impose a fine on the child. If a fine is imposed, the court shall impose an administrative assessment pursuant to NRS 62.223.

      2.  If the court finds that a child who is less than 17 years of age has committed a delinquent act, the court may order the parent or guardian of the child to pay any fines and penalties imposed for the delinquent act.


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

ê1997 Statutes of Nevada, Page 2841 (Chapter 583, AB 486)ê

 

the child to pay any fines and penalties imposed for the delinquent act. If the parent or guardian is unable to pay the fines and penalties imposed because of financial hardship, the court may require the parent or guardian to perform community service.

      3.  In determining the appropriate disposition of a case concerning a child found to be within the purview of this chapter, the court shall consider whether the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim of the act and whether the child is a serious or chronic offender. If the court finds that the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim or that the child is a serious or chronic offender, the court shall include the finding in its order and may, in addition to the options set forth in subsections 1 and 2 of this section and NRS 62.213:

      (a) Commit the child for confinement in a secure facility, including a facility which is secured by its staff.

      (b) Impose any other punitive measures the court determines to be in the best interests of the public or the child.

      4.  Except as otherwise provided in section 90.8 of [this act,] Senate Bill No. 325 of this session, at any time, either on its own volition or for good cause shown, the court may terminate its jurisdiction concerning the child.

      5.  Whenever the court commits a child to any institution or agency pursuant to this section or NRS 62.213, it shall transmit a summary of its information concerning the child and order the administrator of the school that the child last attended to transmit a copy of the child’s educational records to the institution or agency. The institution or agency shall give to the court any information concerning the child that the court may require.

      6.  In determining whether to place a child pursuant to this section in the custody of a person other than his parent, guardian or custodian, preference must be given to any person related within the third degree of consanguinity to the child whom the court finds suitable and able to provide proper care and guidance for the child.

      Sec. 17.  NRS 62.212 is hereby amended to read as follows:

      62.212  1.  [If] Except as otherwise provided in subsection 3, if the court finds that a child is within the purview of paragraph (a) of subsection 1 of NRS 62.040 and has not previously been the subject of a complaint under NRS 62.128 before committing the acts for which the petition was filed, the court shall:

      (a) Admonish the child to obey the law and to refrain from repeating the acts for which the petition was filed, and maintain a record of the admonition; and

      (b) Refer the child, without adjudication, to services available in the community for counseling, behavioral modification and social adjustment.

[A] Except as otherwise provided in subsection 3, a child must not be adjudicated to be a child in need of supervision unless a subsequent petition based upon additional facts is filed with the court after admonition and referral pursuant to this subsection.

      2.  A child who is:


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

ê1997 Statutes of Nevada, Page 2842 (Chapter 583, AB 486)ê

 

      (a) Less than 12 years of age must not be committed to or otherwise placed in the Nevada youth training center or the Caliente youth center.

      (b) Not adjudicated to be delinquent must not be committed to or otherwise placed in the Nevada youth training center, the Caliente youth center or any other facility that provides correctional care.

      3.  The provisions of subsection 1 do not apply to a child alleged to be in need of supervision because he is a habitual truant.

      Sec. 18.  NRS 62.385 is hereby amended to read as follows:

      62.385  1.  When a child applies for a driver’s license, the department of motor vehicles and public safety shall notify the child of the provisions of paragraph (h) of subsection 1 of NRS 62.211, NRS 62.226, 62.227 and 62.228 and sections 2 and 3 of [this act.] Assembly Bill No. 176 of this session and section 14 of this act.

      2.  After providing the notice pursuant to subsection 1, the department shall require the child to sign an affidavit acknowledging that he is aware that his driver’s license may be suspended or revoked pursuant to paragraph (h) of subsection 1 of NRS 62.211, NRS 62.226, 62.227 or 62.228 or section 2 of [this act.] Assembly Bill No. 176 of this session or section 14 of this act.

      Sec. 19.  NRS 483.460 is hereby amended to read as follows:

      483.460  1.  Except as otherwise provided by statute, the department shall revoke the license, permit or privilege of any driver upon receiving a record of his conviction of any of the following offenses, when that conviction has become final, and the driver is not eligible for a license, permit or privilege to drive for the period indicated:

      (a) For a period of 3 years if the offense is:

             (1) A violation of subsection 2 of NRS 484.377 or NRS 484.3795 or homicide resulting from driving a vehicle while under the influence of intoxicating liquor or a controlled substance.

             (2) A third or subsequent violation within 7 years of NRS 484.379.

      (b) For a period of 1 year if the offense is:

             (1) Any other manslaughter resulting from the driving of a motor vehicle or felony in the commission of which a motor vehicle is used, including the unlawful taking of a motor vehicle.

             (2) Failure to stop and render aid as required under the laws of this state in the event of a motor vehicle accident resulting in the death or bodily injury of another.

             (3) Perjury or the making of a false affidavit or statement under oath to the department under NRS 483.010 to 483.630, inclusive, or under any other law relating to the ownership or driving of motor vehicles.

             (4) Conviction, or forfeiture of bail not vacated, upon three charges of reckless driving committed within a period of 12 months.

             (5) A second violation within 7 years of NRS 484.379 and the driver is not eligible for a restricted license during any of that period.

             (6) A violation of NRS 484.348.

      (c) For a period of 90 days, if the offense is a first violation within 7 years of NRS 484.379.

      2.  The department shall revoke the license, permit or privilege of a driver convicted of violating NRS 484.379 who fails to complete the educational course on the use of alcohol and controlled substances within the time ordered by the court and shall add a period of 90 days during which the driver is not eligible for a license, permit or privilege.


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

ê1997 Statutes of Nevada, Page 2843 (Chapter 583, AB 486)ê

 

educational course on the use of alcohol and controlled substances within the time ordered by the court and shall add a period of 90 days during which the driver is not eligible for a license, permit or privilege.

      3.  When the department is notified by a court that a person who has been convicted of violating NRS 484.379 has been permitted to enter a program of treatment pursuant to NRS 484.3794, the department shall reduce by half the period during which he is not eligible for a license, permit or privilege to drive, but shall restore that reduction in time if notified that he was not accepted for or failed to complete the treatment.

      4.  The department shall revoke the license, permit or privilege of a driver who is required to install a device pursuant to NRS 484.3943 but operates a motor vehicle without such a device:

      (a) For 1 year if it is his first such offense during the period of required use of the device.

      (b) For 5 years if it is his second such offense during the period of required use of the device.

      5.  When the department is notified that a court has:

      (a) Pursuant to paragraph (h) of subsection 1 of NRS 62.211, NRS 62.226 or 62.228, or section 2 of [this act,] Assembly Bill No. 176 of this session or section 14 of this act, ordered the suspension or delay in issuance of a child’s license;

      (b) Pursuant to NRS 206.330, ordered the suspension or delay in issuance of a person’s license; or

      (c) Pursuant to NRS 62.227, ordered the revocation of a child’s license,

the department shall take such actions as are necessary to carry out the court’s order.

      Sec. 20.  NRS 483.490 is hereby amended to read as follows:

      483.490  1.  Except as otherwise provided in subsections 2 and 3, after a driver’s license has been suspended or revoked for an offense other than a second violation within 7 years of NRS 484.379 and half the period during which the driver is not eligible for a license has expired, the department may, unless the statute authorizing the suspension prohibits the issuance of a restricted license, issue a restricted driver’s license to an applicant permitting the applicant to drive a motor vehicle:

      (a) To and from work or in the course of his work, or both; or

      (b) To acquire supplies of medicine or food or receive regularly scheduled medical care for himself or a member of his immediate family.

Before a restricted license may be issued, the applicant must submit sufficient documentary evidence to satisfy the department that a severe hardship exists because the applicant has no alternative means of transportation and that the severe hardship outweighs the risk to the public if he is issued a restricted license.

      2.  After a driver’s license has been revoked pursuant to subsection 1 of NRS 62.227 or suspended pursuant to paragraph (h) of subsection 1 of NRS 62.211, NRS 62.226 or 62.228, or section 2 of [this act,] Assembly Bill No. 176 of this session or section 14 of this act, the department may issue a restricted driver’s license to an applicant permitting the applicant to drive a motor vehicle:


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

ê1997 Statutes of Nevada, Page 2844 (Chapter 583, AB 486)ê

 

      (a) If applicable, to and from work or in the course of his work, or both; and

      (b) If applicable, to and from school.

      3.  After a driver’s license has been suspended pursuant to NRS 483.443, the department may issue a restricted driver’s license to an applicant permitting the applicant to drive a motor vehicle:

      (a) If applicable, to and from work or in the course of his work, or both;

      (b) To receive regularly scheduled medical care for himself or a member of his immediate family; and

      (c) If applicable, as necessary to exercise a court-ordered right to visit a child.

      4.  A driver who violates a condition of a restricted license issued pursuant to subsection 1 or by another jurisdiction is guilty of a misdemeanor, and if his license was suspended or revoked for a violation of NRS 484.379, 484.3795, 484.384 or a homicide resulting from driving a vehicle while under the influence of intoxicating liquor or a controlled substance, or the violation of a law of any other jurisdiction which prohibits the same conduct, he shall be punished in the manner provided pursuant to subsection 2 of NRS 483.560.

      5.  The periods of suspensions and revocations required pursuant to this chapter and NRS 484.384 must run consecutively, except as otherwise provided in NRS 483.465 and 483.475, when the suspensions must run concurrently.

      6.  Whenever the department suspends or revokes a license, the period of suspension, or of ineligibility for a license after the revocation, begins upon the effective date of the revocation or suspension as contained in the notice thereof.

      Sec. 21.  NRS 483.495 is hereby amended to read as follows:

      483.495  The department shall by regulation:

      1.  Except as otherwise provided in paragraph (h) of subsection 1 of NRS 62.211, NRS 62.227 , [and] section 3 of [this act,] Assembly Bill No. 176 of this session and subsection 7 of section 14 of this act, set forth any tests and other requirements which are a condition for the reinstatement of a license after any suspension, revocation, cancellation or voluntary surrender of the license. The tests and requirements:

      (a) Must provide for a fair evaluation of the ability of a person to operate a motor vehicle; and

      (b) May allow for the waiver of certain tests or requirements as the department deems necessary.

      2.  Set forth the circumstances under which the administrator may, for good cause shown, rescind the revocation, suspension or cancellation of a license, or shorten the period for the suspension of a license.

      Sec. 22.  NRS 483.580 is hereby amended to read as follows:

      483.580  A person shall not cause or knowingly permit his child or ward under the age of 18 years to drive a motor vehicle upon any highway when the minor is not authorized under the provisions of NRS 483.010 to 483.630, inclusive, or is in violation of any of the provisions of NRS 483.010 to 483.630, inclusive, or if his license is revoked or suspended pursuant to paragraph (h) of subsection 1 of NRS 62.211, NRS 62.226, 62.227 or 62.228 or section 2 of [this act.]


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

ê1997 Statutes of Nevada, Page 2845 (Chapter 583, AB 486)ê

 

62.227 or 62.228 or section 2 of [this act.] Assembly Bill No. 176 of this session or section 14 of this act.

      Sec. 23.  Section 2 of Assembly Bill No. 39 of this session is hereby amended to read as follows:

       Sec. 2.  NRS 62.211 is hereby amended to read as follows:

       62.211  1.  Except as otherwise provided in NRS 62.212 , [and] section 14 of [this act,] Assembly Bill No. 486 of this session and section 1 of this act, if the court finds that a child is within the purview of this chapter it shall so decree and may:

       (a) Place the child under supervision in his own home or in the custody of a suitable person elsewhere, upon such conditions as the court may determine. A program of supervision in the home may include electronic surveillance of the child. The legislature declares that a program of supervision that includes electronic surveillance is intended as an alternative to commitment and not as an alternative to probation, informal supervision or a supervision and consent decree.

       (b) Commit the child to the custody of a public or private institution or agency authorized to care for children, or place him in a home with a family. In committing a child to a private institution or agency the court shall select one that is required to be licensed by the department of human resources to care for such children, or, if the institution or agency is in another state, by the analogous department of that state. The court shall not commit a female child to a private institution without prior approval of the superintendent of the Caliente youth center, and shall not commit a male child to a private institution without prior approval of the superintendent of the Nevada youth training center.

       (c) Order such medical, psychiatric, psychological or other care and treatment as the court deems to be for the best interests of the child, except as otherwise provided in this section.

       (d) Order the parent, guardian, custodian or any other person to refrain from continuing the conduct which, in the opinion of the court, has caused or tended to cause the child to come within or remain under the provisions of this chapter.

       (e) If the child is less than 17 years of age, order the parent, guardian or custodian of the child, and any brothers, sisters or other persons living in the same household as the child over whom the court has jurisdiction to attend or participate in counseling, alone or together with the child, including, but not limited to, counseling regarding parenting skills, alcohol or substance abuse or techniques of dispute resolution.

       (f) Order the parent or guardian of the child to participate in a program designed to provide restitution to the victim of an act committed by the child or to perform public service.

       (g) Order the parent or guardian of the child to pay all or part of the cost of the proceedings, including, but not limited to, reasonable attorney’s fees, any costs incurred by the court and any costs incurred in the investigation of an act committed by the child and the taking into custody of the child.


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

ê1997 Statutes of Nevada, Page 2846 (Chapter 583, AB 486)ê

 

       (h) Order the suspension of the child’s driver’s license for at least 90 days but not more than 2 years. If the child does not possess a driver’s license, the court may prohibit the child from receiving a driver’s license for at least 90 days but not more than 2 years:

             (1) Immediately following the date of the order, if the child is eligible to receive a driver’s license.

             (2) After the date he becomes eligible to apply for a driver’s license, if the child is not eligible to receive a license on the date of the order.

If the court issues an order suspending the driver’s license of a child pursuant to this paragraph, the judge shall require the child to surrender to the court all driver’s licenses then held by the child. The court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety the licenses, together with a copy of the order. If, pursuant to this paragraph, the court issues an order delaying the ability of a child to receive a driver’s license, the court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety a copy of the order. The department of motor vehicles and public safety shall report a suspension pursuant to this paragraph to an insurance company or its agent inquiring about the child’s driving record, but such a suspension must not be considered for the purpose of rating or underwriting. The department of motor vehicles and public safety shall not require the child to submit to the tests and other requirements which are adopted by regulation pursuant to subsection 1 of NRS 483.495 as a condition of reinstatement or reissuance after a suspension of his license pursuant to this paragraph, unless the suspension resulted from his poor performance as a driver.

       (i) Place the child, when he is not in school, under the supervision of:

             (1) A public organization to work on public projects;

             (2) A public agency to work on projects to eradicate graffiti; or

             (3) A private nonprofit organization to perform other public service.

The person under whose supervision the child is placed shall keep the child busy and well supervised and shall make such reports to the court as it may require. As a condition of such a placement, the court may require the child or his parent or guardian to deposit with the court a reasonable sum of money to pay for the cost of policies of insurance against liability for personal injury and damage to property or for industrial insurance, or both, during those periods in which he performs the work, unless, in the case of industrial insurance, it is provided by the organization or agency for which he performs the work.

       (j) Permit the child to reside in a residence without the immediate supervision of an adult, or exempt the child from mandatory attendance at school so that the child may be employed full time, or both, if the child is at least 16 years of age, has demonstrated the capacity to benefit from this placement or exemption and is under the strict supervision of the juvenile division.


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

ê1997 Statutes of Nevada, Page 2847 (Chapter 583, AB 486)ê

 

capacity to benefit from this placement or exemption and is under the strict supervision of the juvenile division.

       (k) Require the child to provide restitution to the victim of the crime which the child has committed.

       (l) Impose a fine on the child. If a fine is imposed, the court shall impose an administrative assessment pursuant to NRS 62.223.

       2.  If the court finds that a child who is less than 17 years of age has committed a delinquent act, the court may order the parent or guardian of the child to pay any fines and penalties imposed for the delinquent act. If the parent or guardian is unable to pay the fines and penalties imposed because of financial hardship, the court may require the parent or guardian to perform community service.

       3.  In determining the appropriate disposition of a case concerning a child found to be within the purview of this chapter, the court shall consider whether the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim of the act and whether the child is a serious or chronic offender. If the court finds that the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim or that the child is a serious or chronic offender, the court shall include the finding in its order and may, in addition to the options set forth in subsections 1 and 2 of this section and NRS 62.213:

       (a) Commit the child for confinement in a secure facility, including a facility which is secured by its staff.

       (b) Impose any other punitive measures the court determines to be in the best interests of the public or the child.

       4.  Except as otherwise provided in section 90.8 of Senate Bill No. 325 of this session, at any time, either on its own volition or for good cause shown, the court may terminate its jurisdiction concerning the child.

       5.  Whenever the court commits a child to any institution or agency pursuant to this section or NRS 62.213, it shall transmit a summary of its information concerning the child and order the administrator of the school that the child last attended to transmit a copy of the child’s educational records to the institution or agency. The institution or agency shall give to the court any information concerning the child that the court may require.

       6.  In determining whether to place a child pursuant to this section in the custody of a person other than his parent, guardian or custodian, preference must be given to any person related within the third degree of consanguinity to the child whom the court finds suitable and able to provide proper care and guidance for the child.

      Sec. 24.  Section 1 of Senate Bill No. 207 of this session is hereby amended to read as follows:

       Section 1.  NRS 62.211 is hereby amended to read as follows:

       62.211  1.  Except as otherwise provided in NRS 62.212, section 14 of Assembly Bill No. 486 of this session and section 1 of [this act,] Assembly Bill No.


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

ê1997 Statutes of Nevada, Page 2848 (Chapter 583, AB 486)ê

 

Assembly Bill No. 39 of this session, if the court finds that a child is within the purview of this chapter it shall so decree and may:

       (a) Place the child under supervision in his own home or in the custody of a suitable person elsewhere, upon such conditions as the court may determine. A program of supervision in the home may include electronic surveillance of the child. The legislature declares that a program of supervision that includes electronic surveillance is intended as an alternative to commitment and not as an alternative to probation, informal supervision or a supervision and consent decree.

       (b) Commit the child to the custody of a public or private institution or agency authorized to care for children, or place him in a home with a family. In committing a child to a private institution or agency the court shall select one that is required to be licensed by the department of human resources to care for such children, or, if the institution or agency is in another state, by the analogous department of that state. The court shall not commit a female child to a private institution without prior approval of the superintendent of the Caliente youth center, and shall not commit a male child to a private institution without prior approval of the superintendent of the Nevada youth training center.

       (c) Order such medical, psychiatric, psychological or other care and treatment as the court deems to be for the best interests of the child, except as otherwise provided in this section.

       (d) Order the parent, guardian, custodian or any other person to refrain from continuing the conduct which, in the opinion of the court, has caused or tended to cause the child to come within or remain under the provisions of this chapter.

       (e) If the child is less than [17] 18 years of age, order [the] :

             (1) The parent, guardian or custodian of the child [, and any brothers, sisters] ; and

             (2) Any brother, sister or other [persons] person who is living in the same household as the child over whom the court has jurisdiction to attend or participate in counseling, [alone or together] with or without the child, including, but not limited to, counseling regarding parenting skills, alcohol or substance abuse , or techniques of dispute resolution.

       (f) Order the parent or guardian of the child to participate in a program designed to provide restitution to the victim of an act committed by the child or to perform public service.

       (g) Order the parent or guardian of the child to pay all or part of the cost of the proceedings, including, but not limited to, reasonable attorney’s fees, any costs incurred by the court and any costs incurred in the investigation of an act committed by the child and the taking into custody of the child.

       (h) Order the suspension of the child’s driver’s license for at least 90 days but not more than 2 years. If the child does not possess a driver’s license, the court may prohibit the child from receiving a driver’s license for at least 90 days but not more than 2 years:


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

ê1997 Statutes of Nevada, Page 2849 (Chapter 583, AB 486)ê

 

             (1) Immediately following the date of the order, if the child is eligible to receive a driver’s license.

             (2) After the date he becomes eligible to apply for a driver’s license, if the child is not eligible to receive a license on the date of the order.

If the court issues an order suspending the driver’s license of a child pursuant to this paragraph, the judge shall require the child to surrender to the court all driver’s licenses then held by the child. The court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety the licenses, together with a copy of the order. If, pursuant to this paragraph, the court issues an order delaying the ability of a child to receive a driver’s license, the court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety a copy of the order. The department of motor vehicles and public safety shall report a suspension pursuant to this paragraph to an insurance company or its agent inquiring about the child’s driving record, but such a suspension must not be considered for the purpose of rating or underwriting. The department of motor vehicles and public safety shall not require the child to submit to the tests and other requirements which are adopted by regulation pursuant to subsection 1 of NRS 483.495 as a condition of reinstatement or reissuance after a suspension of his license pursuant to this paragraph, unless the suspension resulted from his poor performance as a driver.

       (i) Place the child, when he is not in school, under the supervision of:

             (1) A public organization to work on public projects;

             (2) A public agency to work on projects to eradicate graffiti; or

             (3) A private nonprofit organization to perform other public service.

The person under whose supervision the child is placed shall keep the child busy and well supervised and shall make such reports to the court as it may require. As a condition of such a placement, the court may require the child or his parent or guardian to deposit with the court a reasonable sum of money to pay for the cost of policies of insurance against liability for personal injury and damage to property or for industrial insurance, or both, during those periods in which he performs the work, unless, in the case of industrial insurance, it is provided by the organization or agency for which he performs the work.

       (j) Permit the child to reside in a residence without the immediate supervision of an adult, or exempt the child from mandatory attendance at school so that the child may be employed full time, or both, if the child is at least 16 years of age, has demonstrated the capacity to benefit from this placement or exemption and is under the strict supervision of the juvenile division.

       (k) Require the child to provide restitution to the victim of the crime which the child has committed.


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

ê1997 Statutes of Nevada, Page 2850 (Chapter 583, AB 486)ê

 

       (l) Impose a fine on the child. If a fine is imposed, the court shall impose an administrative assessment pursuant to NRS 62.223.

       2.  If the court finds that a child who is less than 17 years of age has committed a delinquent act, the court may order the parent or guardian of the child to pay any fines and penalties imposed for the delinquent act. If the parent or guardian is unable to pay the fines and penalties imposed because of financial hardship, the court may require the parent or guardian to perform community service.

       3.  In determining the appropriate disposition of a case concerning a child found to be within the purview of this chapter, the court shall consider whether the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim of the act and whether the child is a serious or chronic offender. If the court finds that the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim or that the child is a serious or chronic offender, the court shall include the finding in its order and may, in addition to the options set forth in subsections 1 and 2 of this section and NRS 62.213:

       (a) Commit the child for confinement in a secure facility, including a facility which is secured by its staff.

       (b) Impose any other punitive measures the court determines to be in the best interests of the public or the child.

       4.  Except as otherwise provided in section 90.8 of Senate Bill No. 325 of this session, at any time, either on its own volition or for good cause shown, the court may terminate its jurisdiction concerning the child.

       5.  Whenever the court commits a child to any institution or agency pursuant to this section or NRS 62.213, it shall transmit a summary of its information concerning the child and order the administrator of the school that the child last attended to transmit a copy of the child’s educational records to the institution or agency. The institution or agency shall give to the court any information concerning the child that the court may require.

       6.  In determining whether to place a child pursuant to this section in the custody of a person other than his parent, guardian or custodian, preference must be given to any person related within the third degree of consanguinity to the child whom the court finds suitable and able to provide proper care and guidance for the child.

      Sec. 25.  Section 11 of Senate Bill No. 102 of this session is hereby amended to read as follows:

       Sec. 11.  NRS 62.211 is hereby amended to read as follows:

       62.211  1.  Except as otherwise provided in NRS 62.212, section 14 of Assembly Bill No. 486 of this session and section 1 of Assembly Bill No. 39 of this session, if the court finds that a child is within the purview of this chapter it shall so decree and may:

       (a) Place the child under supervision in his own home or in the custody of a suitable person elsewhere, upon such conditions as the court may determine. A program of supervision in the home may include electronic surveillance of the child.


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

ê1997 Statutes of Nevada, Page 2851 (Chapter 583, AB 486)ê

 

include electronic surveillance of the child. The legislature declares that a program of supervision that includes electronic surveillance is intended as an alternative to commitment and not as an alternative to probation, informal supervision or a supervision and consent decree.

       (b) Commit the child to the custody of a public or private institution or agency authorized to care for children, or place him in a home with a family. In committing a child to a private institution or agency the court shall select one that is required to be licensed by the department of human resources to care for such children, or, if the institution or agency is in another state, by the analogous department of that state. The court shall not commit a female child to a private institution without prior approval of the superintendent of the Caliente youth center, and shall not commit a male child to a private institution without prior approval of the superintendent of the Nevada youth training center.

       (c) Order such medical, psychiatric, psychological or other care and treatment as the court deems to be for the best interests of the child, except as otherwise provided in this section.

       (d) Order the parent, guardian, custodian or any other person to refrain from continuing the conduct which, in the opinion of the court, has caused or tended to cause the child to come within or remain under the provisions of this chapter.

       (e) If the child is less than 18 years of age, order:

             (1) The parent, guardian or custodian of the child; and

             (2) Any brother, sister or other person who is living in the same household as the child over whom the court has jurisdiction to attend or participate in counseling, with or without the child, including, but not limited to, counseling regarding parenting skills, alcohol or substance abuse, or techniques of dispute resolution.

       (f) Order the parent or guardian of the child to participate in a program designed to provide restitution to the victim of an act committed by the child or to perform public service.

       (g) Order the parent or guardian of the child to pay all or part of the cost of the proceedings, including, but not limited to, reasonable attorney’s fees, any costs incurred by the court and any costs incurred in the investigation of an act committed by the child and the taking into custody of the child.

       (h) Order the suspension of the child’s driver’s license for at least 90 days but not more than 2 years. If the child does not possess a driver’s license, the court may prohibit the child from receiving a driver’s license for at least 90 days but not more than 2 years:

             (1) Immediately following the date of the order, if the child is eligible to receive a driver’s license.

             (2) After the date he becomes eligible to apply for a driver’s license, if the child is not eligible to receive a license on the date of the order.

If the court issues an order suspending the driver’s license of a child pursuant to this paragraph, the judge shall require the child to surrender to the court all driver’s licenses then held by the child. The court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety the licenses, together with a copy of the order.


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

ê1997 Statutes of Nevada, Page 2852 (Chapter 583, AB 486)ê

 

court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety the licenses, together with a copy of the order. If, pursuant to this paragraph, the court issues an order delaying the ability of a child to receive a driver’s license, the court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety a copy of the order. The department of motor vehicles and public safety shall report a suspension pursuant to this paragraph to an insurance company or its agent inquiring about the child’s driving record, but such a suspension must not be considered for the purpose of rating or underwriting. The department of motor vehicles and public safety shall not require the child to submit to the tests and other requirements which are adopted by regulation pursuant to subsection 1 of NRS 483.495 as a condition of reinstatement or reissuance after a suspension of his license pursuant to this paragraph, unless the suspension resulted from his poor performance as a driver.

       (i) Place the child, when he is not in school, under the supervision of:

             (1) A public organization to work on public projects;

             (2) A public agency to work on projects to eradicate graffiti; or

             (3) A private nonprofit organization to perform other public service.

The person under whose supervision the child is placed shall keep the child busy and well supervised and shall make such reports to the court as it may require. As a condition of such a placement, the court may require the child or his parent or guardian to deposit with the court a reasonable sum of money to pay for the cost of policies of insurance against liability for personal injury and damage to property or for industrial insurance, or both, during those periods in which he performs the work, unless, in the case of industrial insurance, it is provided by the organization or agency for which he performs the work.

       (j) Permit the child to reside in a residence without the immediate supervision of an adult, or exempt the child from mandatory attendance at school so that the child may be employed full time, or both, if the child is at least 16 years of age, has demonstrated the capacity to benefit from this placement or exemption and is under the strict supervision of the juvenile division.

       (k) Require the child to provide restitution to the victim of the crime which the child has committed.

       (l) Impose a fine on the child. If a fine is imposed, the court shall impose an administrative assessment pursuant to NRS 62.223.

       2.  If the court finds that a child who is less than 17 years of age has committed a delinquent act, the court may order the parent or guardian of the child to pay any fines and penalties imposed for the delinquent act. If the parent or guardian is unable to pay the fines and penalties imposed because of financial hardship, the court may require the parent or guardian to perform community service.


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

ê1997 Statutes of Nevada, Page 2853 (Chapter 583, AB 486)ê

 

       3.  In determining the appropriate disposition of a case concerning a child found to be within the purview of this chapter, the court shall consider whether the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim of the act and whether the child is a serious or chronic offender. If the court finds that the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim or that the child is a serious or chronic offender, the court shall include the finding in its order and may, in addition to the options set forth in subsections 1 and 2 of this section and NRS 62.213:

       (a) Commit the child for confinement in a secure facility, including a facility which is secured by its staff.

       (b) Impose any other punitive measures the court determines to be in the best interests of the public or the child.

       4.  Except as otherwise provided in section 90.8 of Senate Bill No. 325 of this session [,] and section 7 of this act, at any time, either on its own volition or for good cause shown, the court may terminate its jurisdiction concerning the child.

       5.  Whenever the court commits a child to any institution or agency pursuant to this section or NRS 62.213, it shall transmit a summary of its information concerning the child and order the administrator of the school that the child last attended to transmit a copy of the child’s educational records to the institution or agency. The institution or agency shall give to the court any information concerning the child that the court may require.

       6.  In determining whether to place a child pursuant to this section in the custody of a person other than his parent, guardian or custodian, preference must be given to any person related within the third degree of consanguinity to the child whom the court finds suitable and able to provide proper care and guidance for the child.

      Sec. 26.  Section 1 of Senate Bill No. 277 of this session is hereby amended to read as follows:

       Section 1.  NRS 62.211 is hereby amended to read as follows:

       62.211  1.  Except as otherwise provided in NRS 62.212, section 14 of Assembly Bill No. 486 of this session and section 1 of Assembly Bill No. 39 of this session, if the court finds that a child is within the purview of this chapter it shall so decree and may:

       (a) Place the child under supervision in his own home or in the custody of a suitable person elsewhere, upon such conditions as the court may determine. A program of supervision in the home may include electronic surveillance of the child. The legislature declares that a program of supervision that includes electronic surveillance is intended as an alternative to commitment and not as an alternative to probation, informal supervision or a supervision and consent decree.

       (b) Commit the child to the custody of a public or private institution or agency authorized to care for children, or place him in a home with a family. In committing a child to a private institution or agency the court shall select one that is required to be licensed by the department of human resources to care for such children, or, if the institution or agency is in another state, by the analogous department of that state.


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

ê1997 Statutes of Nevada, Page 2854 (Chapter 583, AB 486)ê

 

of human resources to care for such children, or, if the institution or agency is in another state, by the analogous department of that state. The court shall not commit a female child to a private institution without prior approval of the superintendent of the Caliente youth center, and shall not commit a male child to a private institution without prior approval of the superintendent of the Nevada youth training center.

       (c) Order such medical, psychiatric, psychological or other care and treatment as the court deems to be for the best interests of the child, except as otherwise provided in this section.

       (d) Order the parent, guardian, custodian or any other person to refrain from continuing the conduct which, in the opinion of the court, has caused or tended to cause the child to come within or remain under the provisions of this chapter.

       (e) If the child is less than 18 years of age, order:

             (1) The parent, guardian or custodian of the child; and

             (2) Any brother, sister or other person who is living in the same household as the child over whom the court has jurisdiction to attend or participate in counseling, with or without the child, including, but not limited to, counseling regarding parenting skills, alcohol or substance abuse, or techniques of dispute resolution.

       (f) Order the parent or guardian of the child to participate in a program designed to provide restitution to the victim of an act committed by the child or to perform public service.

       (g) Order the parent or guardian of the child to pay all or part of the cost of the proceedings, including, but not limited to, reasonable attorney’s fees, any costs incurred by the court and any costs incurred in the investigation of an act committed by the child and the taking into custody of the child.

       (h) Order the suspension of the child’s driver’s license for at least 90 days but not more than 2 years. If the child does not possess a driver’s license, the court may prohibit the child from receiving a driver’s license for at least 90 days but not more than 2 years:

             (1) Immediately following the date of the order, if the child is eligible to receive a driver’s license.

             (2) After the date he becomes eligible to apply for a driver’s license, if the child is not eligible to receive a license on the date of the order.

If the court issues an order suspending the driver’s license of a child pursuant to this paragraph, the judge shall require the child to surrender to the court all driver’s licenses then held by the child. The court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety the licenses, together with a copy of the order. If, pursuant to this paragraph, the court issues an order delaying the ability of a child to receive a driver’s license, the court shall, within 5 days after issuing the order, forward to the department of motor vehicles and public safety a copy of the order. The department of motor vehicles and public safety shall report a suspension pursuant to this paragraph to an insurance company or its agent inquiring about the child’s driving record, but such a suspension must not be considered for the purpose of rating or underwriting.


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

ê1997 Statutes of Nevada, Page 2855 (Chapter 583, AB 486)ê

 

agent inquiring about the child’s driving record, but such a suspension must not be considered for the purpose of rating or underwriting. The department of motor vehicles and public safety shall not require the child to submit to the tests and other requirements which are adopted by regulation pursuant to subsection 1 of NRS 483.495 as a condition of reinstatement or reissuance after a suspension of his license pursuant to this paragraph, unless the suspension resulted from his poor performance as a driver.

       (i) Place the child, when he is not in school, under the supervision of:

             (1) A public organization to work on public projects;

             (2) A public agency to work on projects to eradicate graffiti; or

             (3) A private nonprofit organization to perform other public service.

The person under whose supervision the child is placed shall keep the child busy and well supervised and shall make such reports to the court as it may require. As a condition of such a placement, the court may require the child or his parent or guardian to deposit with the court a reasonable sum of money to pay for the cost of policies of insurance against liability for personal injury and damage to property or for industrial insurance, or both, during those periods in which he performs the work, unless, in the case of industrial insurance, it is provided by the organization or agency for which he performs the work.

       (j) Permit the child to reside in a residence without the immediate supervision of an adult, or exempt the child from mandatory attendance at school so that the child may be employed full time, or both, if the child is at least 16 years of age, has demonstrated the capacity to benefit from this placement or exemption and is under the strict supervision of the juvenile division.

       (k) Require the child to provide restitution to the victim of the crime which the child has committed.

       (l) Impose a fine on the child. If a fine is imposed, the court shall impose an administrative assessment pursuant to NRS 62.223.

       (m) If the child has not previously been found to be within the purview of this chapter and if the act for which the child is found to be within the purview of this chapter did not involve the use or threatened use of force or violence, order the child to participate in a publicly or privately operated program of sports or physical fitness. If the court orders the child to participate in such a program, the court may order any or all of the following, in the following order of priority if practicable:

             (1) The parent or guardian of the child, to the extent of his financial ability, to pay the costs associated with the participation of the child in the program, including, but not limited to, a reasonable sum of money to pay for the cost of policies of insurance against liability for personal injury and damage to property during those periods in which the child participates in the program;


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

ê1997 Statutes of Nevada, Page 2856 (Chapter 583, AB 486)ê

 

             (2) The child to work on projects or perform public service pursuant to paragraph (i) for a period that reflects the costs associated with the participation of the child in the program; or

             (3) The county in which the petition alleging the child to be delinquent or in need of supervision is filed to pay the costs associated with the participation of the child in the program.

       2.  If the court finds that a child who is less than 17 years of age has committed a delinquent act, the court may order the parent or guardian of the child to pay any fines and penalties imposed for the delinquent act. If the parent or guardian is unable to pay the fines and penalties imposed because of financial hardship, the court may require the parent or guardian to perform community service.

       3.  In determining the appropriate disposition of a case concerning a child found to be within the purview of this chapter, the court shall consider whether the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim of the act and whether the child is a serious or chronic offender. If the court finds that the act committed by the child involved the use of a firearm or the use or threatened use of force or violence against the victim or that the child is a serious or chronic offender, the court shall include the finding in its order and may, in addition to the options set forth in subsections 1 and 2 of this section and NRS 62.213:

       (a) Commit the child for confinement in a secure facility, including a facility which is secured by its staff.

       (b) Impose any other punitive measures the court determines to be in the best interests of the public or the child.

       4.  Except as otherwise provided in section 90.8 of Senate Bill No. 325 of this session and section 7 of [this act,] Senate Bill No. 102 of this session, at any time, either on its own volition or for good cause shown, the court may terminate its jurisdiction concerning the child.

       5.  Whenever the court commits a child to any institution or agency pursuant to this section or NRS 62.213, it shall transmit a summary of its information concerning the child and order the administrator of the school that the child last attended to transmit a copy of the child’s educational records to the institution or agency. The institution or agency shall give to the court any information concerning the child that the court may require.

       6.  In determining whether to place a child pursuant to this section in the custody of a person other than his parent, guardian or custodian, preference must be given to any person related within the third degree of consanguinity to the child whom the court finds suitable and able to provide proper care and guidance for the child.

      Sec. 27.  Section 1 of Senate Bill No. 426 of this session is hereby amended to read as follows:

       Section 1.  NRS 483.460 is hereby amended to read as follows:

       483.460  1.  Except as otherwise provided by statute, the department shall revoke the license, permit or privilege of any driver upon receiving a record of his conviction of any of the following offenses, when that conviction has become final, and the driver is not eligible for a license, permit or privilege to drive for the period indicated:

 


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

ê1997 Statutes of Nevada, Page 2857 (Chapter 583, AB 486)ê

 

offenses, when that conviction has become final, and the driver is not eligible for a license, permit or privilege to drive for the period indicated:

       (a) For a period of 3 years if the offense is:

             (1) A violation of subsection 2 of NRS 484.377 . [or NRS 484.3795 or homicide resulting from driving a vehicle while under the influence of intoxicating liquor or a controlled substance.]

             (2) A third or subsequent violation within 7 years of NRS 484.379.

             (3) A violation of NRS 484.3795 or homicide resulting from driving a vehicle while under the influence of intoxicating liquor or a controlled substance.

The period during which such a driver is not eligible for a license, permit or privilege to drive must be set aside during any period of imprisonment and the period of revocation must resume upon completion of the period of imprisonment or when the person is placed on residential confinement.

       (b) For a period of 1 year if the offense is:

             (1) Any other manslaughter resulting from the driving of a motor vehicle or felony in the commission of which a motor vehicle is used, including the unlawful taking of a motor vehicle.

             (2) Failure to stop and render aid as required [under] pursuant to the laws of this state in the event of a motor vehicle accident resulting in the death or bodily injury of another.

             (3) Perjury or the making of a false affidavit or statement under oath to the department under NRS 483.010 to 483.630, inclusive, or [under] pursuant to any other law relating to the ownership or driving of motor vehicles.

             (4) Conviction, or forfeiture of bail not vacated, upon three charges of reckless driving committed within a period of 12 months.

             (5) A second violation within 7 years of NRS 484.379 and , except as otherwise provided in subsection 3 of NRS 483.490, the driver is not eligible for a restricted license during any of that period.

             (6) A violation of NRS 484.348.

       (c) For a period of 90 days, if the offense is a first violation within 7 years of NRS 484.379.

       2.  The department shall revoke the license, permit or privilege of a driver convicted of violating NRS 484.379 who fails to complete the educational course on the use of alcohol and controlled substances within the time ordered by the court and shall add a period of 90 days during which the driver is not eligible for a license, permit or privilege.

       3.  When the department is notified by a court that a person who has been convicted of violating NRS 484.379 has been permitted to enter a program of treatment pursuant to NRS 484.3794, the department shall reduce by [half] one-half the period during which he is not eligible for a license, permit or privilege to drive, but shall restore that reduction in time if notified that he was not accepted for or failed to complete the treatment.


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

ê1997 Statutes of Nevada, Page 2858 (Chapter 583, AB 486)ê

 

       4.  The department shall revoke the license, permit or privilege of a driver who is required to install a device pursuant to NRS 484.3943 but operates a motor vehicle without such a device:

       (a) For [1 year] 3 years if it is his first such offense during the period of required use of the device.

       (b) For 5 years if it is his second such offense during the period of required use of the device.

       5.  A driver whose license, permit or privilege is revoked pursuant to subsection 4 is not eligible for a restricted license during the period set forth in paragraph (a) or (b) of that subsection, whichever is applicable.

       6.  When the department is notified that a court has:

       (a) Pursuant to paragraph (h) of subsection 1 of NRS 62.211, NRS 62.226 or 62.228, or section 2 of Assembly Bill No. 176 of this session or section 14 of [this act,] Assembly Bill No. 486 of this session, ordered the suspension or delay in issuance of a child’s license;

       (b) Pursuant to NRS 206.330, ordered the suspension or delay in issuance of a person’s license; or

       (c) Pursuant to NRS 62.227, ordered the revocation of a child’s license,

the department shall take such actions as are necessary to carry out the court’s order.

       7.  As used in this section, “device” has the meaning ascribed to it in NRS 484.3941.

      Sec. 28.  Section 2 of Senate Bill No. 426 of this session is hereby amended to read as follows:

       Sec. 2.  NRS 483.490 is hereby amended to read as follows:

       483.490  1.  Except as otherwise provided in [subsections 2 and 3,] this section, after a driver’s license has been suspended or revoked for an offense other than a second violation within 7 years of NRS 484.379 and [half] one-half of the period during which the driver is not eligible for a license has expired, the department may, unless the statute authorizing the suspension prohibits the issuance of a restricted license, issue a restricted driver’s license to an applicant permitting the applicant to drive a motor vehicle:

       (a) To and from work or in the course of his work, or both; or

       (b) To acquire supplies of medicine or food or receive regularly scheduled medical care for himself or a member of his immediate family.

Before a restricted license may be issued, the applicant must submit sufficient documentary evidence to satisfy the department that a severe hardship exists because the applicant has no alternative means of transportation and that the severe hardship outweighs the risk to the public if he is issued a restricted license.

       2.  A person who has been ordered to install a device in a motor vehicle which he owns or operates pursuant to NRS 484.3943:

       (a) Shall install the device not later than 21 days after the date on which the order was issued; and


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

ê1997 Statutes of Nevada, Page 2859 (Chapter 583, AB 486)ê

 

       (b) May not receive a restricted license pursuant to this section until:

             (1) After at least 180 days of the period during which he is not eligible for a license, if he was convicted of a violation of subsection 2 of NRS 484.377, a violation of NRS 484.3795 or homicide resulting from driving a vehicle while under the influence of intoxicating liquor or a controlled substance or if he was convicted of a third violation within 7 years of NRS 484.379;

             (2) After at least 90 days of the period during which he is not eligible for a license, if he was convicted of a second violation within 7 years of NRS 484.379; or

             (3) After at least 45 days of the period during which he is not eligible for a license, if he was convicted of a first violation within 7 years of NRS 484.379.

       3.  If the department has received a copy of an order requiring a person to install a device in a motor vehicle which he owns or operates pursuant to NRS 484.3943, the department shall not issue a restricted driver’s license to such a person pursuant to this section unless the applicant has submitted proof of compliance with the order and subsection 2.

       4.  After a driver’s license has been revoked pursuant to subsection 1 of NRS 62.227 or suspended pursuant to paragraph (h) of subsection 1 of NRS 62.211, NRS 62.226 or 62.228, or section 2 of Assembly Bill No. 176 of this session or section 14 of [this act,] Assembly Bill No. 486 of this session, the department may issue a restricted driver’s license to an applicant permitting the applicant to drive a motor vehicle:

       (a) If applicable, to and from work or in the course of his work, or both; and

       (b) If applicable, to and from school.

       [3.] 5.  After a driver’s license has been suspended pursuant to NRS 483.443, the department may issue a restricted driver’s license to an applicant permitting the applicant to drive a motor vehicle:

       (a) If applicable, to and from work or in the course of his work, or both;

       (b) To receive regularly scheduled medical care for himself or a member of his immediate family; and

       (c) If applicable, as necessary to exercise a court-ordered right to visit a child.

       [4.] 6.  A driver who violates a condition of a restricted license issued pursuant to subsection 1 or by another jurisdiction is guilty of a misdemeanor, and if his license was suspended or revoked for a violation of NRS 484.379, 484.3795, 484.384 or a homicide resulting from driving a vehicle while under the influence of intoxicating liquor or a controlled substance, or the violation of a law of any other jurisdiction which prohibits the same conduct, he shall be punished in the manner provided pursuant to subsection 2 of NRS 483.560.


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

ê1997 Statutes of Nevada, Page 2860 (Chapter 583, AB 486)ê

 

       [5.] 7.  The periods of suspensions and revocations required pursuant to this chapter and NRS 484.384 must run consecutively, except as otherwise provided in NRS 483.465 and 483.475, when the suspensions must run concurrently.

       [6.] 8.  Whenever the department suspends or revokes a license, the period of suspension, or of ineligibility for a license after the revocation, begins upon the effective date of the revocation or suspension as contained in the notice thereof.

      Sec. 29.  Sections 17 to 20, inclusive, of Assembly Bill No. 176 of this session and sections 97.5, 97.6, 97.62 and 97.63 of Senate Bill No. 325 of this session are hereby repealed.

      Sec. 30.  1.  The board of trustees of each school district shall conduct a study to determine the feasibility of establishing a policy that requires pupils to remain on the school grounds during the time that the pupils are required to be in school.

      2.  Not later than February 1, 1998, the board of trustees of each school district shall submit a report to the superintendent of public instruction containing its findings concerning the feasibility of such a policy.

      3.  Not later than October 1, 1998, the superintendent of public instruction shall submit to the legislative commission a compilation of the reports submitted by each school district pursuant to subsection 2.

      Sec. 31.  1.  There is hereby appropriated from the state general fund to the department of education the sum of $500,000 for distribution to each school district in this state in the proportion that the number of pupils who are enrolled in a county school district bears to the total number of pupils enrolled in all the county school districts in this state. The money must be used by a school district to support:

      (a) The advisory board to review school attendance in the county created pursuant to section 4 of this act to reduce the rate of truancy of pupils in the public schools in the county.

      (b) Programs to reduce the rate of truancy of pupils in the public schools in the county.

      2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 1999, and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 32.  The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

      Sec. 33.  1.  Except as otherwise provided in subsection 2, this act becomes effective at 12:01 a.m. on July 1, 1997.

      2.  Section 16 of this act becomes effective at 12:02 a.m. on July 1, 1997.

________

 


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

ê1997 Statutes of Nevada, Page 2861ê

 

CHAPTER 584, AB 496

Assembly Bill No. 496–Committee on Transportation

CHAPTER 584

AN ACT relating to vehicles; redefining a rebuilt vehicle; providing for the issuance of identifying cards by licensees of the department of motor vehicles and public safety; specifically authorizing operators of salvage pools to foreclose liens on vehicles; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 482.098 is hereby amended to read as follows:

      482.098  “Rebuilt vehicle” means a vehicle, one or more major components of which have been replaced [.] as set forth in this subsection. For the purposes of this section, the requisite major components of a vehicle which must be replaced for a vehicle to be considered rebuilt are the [cowl, frame, rear clip, roof and floor pan.] :

      1.  Cowl assembly;

      2.  Rear clip assembly;

      3.  Roof;

      4.  Floor pan assembly; or

      5.  Conventional frame coupled with one additional major component.

      Sec. 2.  Chapter 487 of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 8, inclusive, of this act.

      Sec. 3.  1.  The department may issue to a person licensed to operate a salvage pool an additional license authorizing the holder to issue identifying cards.

      2.  The department shall investigate the qualifications of an applicant for a license to issue identifying cards and shall prescribe a form for reporting the result.

      Sec. 4.  In addition to the requirements set forth in NRS 487.420 to 487.450, inclusive, and subject to the grounds for denial, suspension or revocation pursuant to NRS 487.490, an applicant for a license to issue identifying cards must:

      1.  Have been licensed to operate a salvage pool for the 2-year period immediately preceding application for the additional license.

      2.  Not have issued a check to the department for payment which was returned for insufficient funds.

      3.  Include a secure building within his facility.

      Sec. 5.  1.  Except as otherwise provided in subsection 2, an applicant for a license to issue identifying cards shall file with the department a bond payable to the State of Nevada in the amount of $10,000. The bond must be executed by the applicant as principal and by a corporation qualified under NRS 100.065 as surety.

      2.  An applicant may, instead of filing a bond, deposit $10,000 with the state treasurer in any form authorized by NRS 100.065.


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

ê1997 Statutes of Nevada, Page 2862 (Chapter 584, AB 496)ê

 

      Sec. 6.  1.  Application for a license to issue identifying cards must be filed upon a form supplied by the department. If considered necessary, the department may require information in addition to that required by the form.

      2.  A fee of $25 must accompany the application.

      3.  Upon receipt of the application and fee, and when satisfied that the applicant is entitled thereto, the department shall issue to the applicant a license to issue identifying cards containing the name of the applicant and his established place of business.

      4.  Licenses issued pursuant to this section expire on December 31 of each year. Before December 31 of each year, a licensee must furnish the department with an application for renewal of his license accompanied by an annual fee of $25.

      Sec. 7.  An employee of a licensee whose duties include acting upon, issuing or renewing an identifying card must complete a course of training offered by the department.

      Sec. 8.  1.  A person licensed to issue identifying cards shall maintain a record of all fees collected and identifying cards issued.

      2.  The record must contain:

      (a) The name and signature of the licensed automobile wrecker, vehicle dealer or rebuilder from whom fees were collected, the amount of fees collected and the number of identifying cards issued or renewed.

      (b) The business name, address and license number under which the automobile wrecker, vehicle dealer or rebuilder is licensed by the department.

      (c) A photograph of the natural person to whom the identifying card was issued.

      3.  The record must be open to inspection during regular business hours by any peace officer or investigator of the department.

      4.  Upon request of the department, a person licensed to issue identifying cards shall allow the department, or a person designated by the department, to conduct an audit of his records.

      5.  The records of the licensee must be maintained at the licensed location.

      Sec. 9.  NRS 487.400 is hereby amended to read as follows:

      487.400  As used in NRS 487.400 to 487.510, inclusive, [“salvage] and sections 3 to 8, inclusive, of this act:

      1.  “Identifying card” means a card:

      (a) Authorizing the holder to bid for the purchase of vehicles from the operator of a salvage pool; and

      (b) Containing the information required by NRS 487.070 or 487.475.

      2.  “Salvage pool” means a business which obtains motor vehicles from:

      [1.] (a) Insurers and self-insurers for sale on consignment or as an agent for the insurer or self-insurer if the vehicles are acquired by the insurer or self-insurer as the result of a settlement for insurance; or

      [2.] (b) Licensed vehicle dealers, rebuilders, lessors or wreckers for sale on consignment.

      Sec. 10.  NRS 487.470 is hereby amended to read as follows:

      487.470  1.  Only a licensed automobile wrecker, dealer of new or used motor vehicles or rebuilder may bid to purchase a vehicle from an operator of a salvage pool, and the operator may only sell a vehicle to such a person.


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

ê1997 Statutes of Nevada, Page 2863 (Chapter 584, AB 496)ê

 

of a salvage pool, and the operator may only sell a vehicle to such a person. An operator shall not accept a bid from:

      (a) An automobile wrecker until:

             (1) He presents the card issued by the department pursuant to NRS 487.070 [;] or other identifying card; or

             (2) If he is licensed or otherwise authorized to operate as an automobile wrecker in another state or foreign country, he presents evidence of that licensure or authorization and has registered with the operator pursuant to subsection 2; or

      (b) A dealer of new or used motor vehicles or a rebuilder until:

             (1) He presents the card issued by the department pursuant to NRS 487.475 [;] or other identifying card; or

             (2) If he is licensed or otherwise authorized to operate as a dealer of new or used motor vehicles or as a rebuilder in another state or foreign country, he presents evidence of that licensure or authorization and has registered with the operator pursuant to subsection 2.

      2.  Any automobile wrecker, dealer of new or used motor vehicles or rebuilder who is licensed or otherwise authorized to operate in another state or foreign country shall register with each operator of a salvage pool with whom he bids to purchase vehicles, by filing with the operator copies of his license or other form of authorization from the other state or country, and his driver’s license, business license, certificate evidencing the filing of a bond, resale certificate and proof of social security or tax identification number, if such documentation is required for licensure in the other state or country. Each operator of a salvage pool shall keep such copies at his place of business and in a manner so that they are easily accessible and open to inspection by employees of the department of motor vehicles and public safety and to officers of law enforcement agencies in this state.

      Sec. 11.  NRS 487.480 is hereby amended to read as follows:

      487.480  1.  Before an operator of a salvage pool sells any vehicle subject to registration pursuant to the laws of this state, he must have in his possession the certificate of ownership or a bill of sale of salvage for that vehicle. He shall, within 10 days after completion of the transaction, forward the certificate of ownership or bill of sale of salvage to the department. The department shall not issue a certificate of registration or certificate of ownership for a vehicle with the same identification number if the vehicle was manufactured in the 5 years preceding the date on which the operator forwards the certificates to the department, unless the department authorizes the restoration of the vehicle pursuant to subsection 2 of NRS 482.553.

      2.  Upon sale of the vehicle, the operator of the salvage pool shall provide a bill of sale of salvage to the licensed automobile wrecker, dealer of new or used motor vehicles or rebuilder on a form prescribed and supplied by the department. The department shall accept the bill of sale in lieu of the certificate of ownership or other evidence of title from the:

      (a) Automobile wrecker if accompanied by an appropriate application for a certificate of dismantling; or

      (b) Dealer of new or used motor vehicles or rebuilder when he licenses the vehicle for operation or transfers ownership of it, if the bill of sale is accompanied by an appropriate application, all other required documents and fees, and a certificate of inspection signed by an employee of the department attesting to the mechanical fitness and safety of the vehicle.


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

ê1997 Statutes of Nevada, Page 2864 (Chapter 584, AB 496)ê

 

accompanied by an appropriate application, all other required documents and fees, and a certificate of inspection signed by an employee of the department attesting to the mechanical fitness and safety of the vehicle.

      3.  The department may issue to [the automobile wrecker] :

      (a) The licensed automobile wrecker;

      (b) A salvage pool;

      (c) A dealer of new or used motor vehicles who is licensed in another state; or

      (d) An automobile wrecker or dismantler who is licensed in another state,

a certificate of dismantling that contains a brief description of the vehicle, including, insofar as data may exist with respect to the vehicle, the make, type, serial number and motor number, or any other number of the vehicle. Except as otherwise provided in this subsection, the department shall charge and collect a fee of $10 for the issuance of a certificate of dismantling pursuant to this subsection. The department shall not charge such a fee for the issuance of a certificate of dismantling to an automobile wrecker licensed in this state. 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 and body shops. Possession of a certificate of dismantling does not entitle a person to dismantle, scrap, process or wreck any vehicle in this state unless the person holds a license issued pursuant to NRS 487.050

      Sec. 12.  NRS 108.270 is hereby amended to read as follows:

      108.270  Subject to the provisions of NRS 108.315:

      1.  A person engaged in the business of:

      (a) Buying or selling automobiles;

      (b) Keeping a garage or place for the storage, maintenance, keeping or repair of motor vehicles, motorcycles, motor equipment, trailers, mobile homes or manufactured homes [;] , including the operator of a salvage pool; or

      (c) Keeping a mobile home park, mobile home lot or other land for rental of spaces for trailers, mobile homes or manufactured homes,

and who in connection therewith stores, maintains, keeps or repairs any motor vehicle, motorcycle, motor equipment, trailer, mobile home or manufactured home, or furnishes accessories, facilities, services or supplies therefor, at the request or with the consent of the owner or his representatives, or at the direction of any peace officer or other authorized person who orders the towing or storage of any vehicle through any action permitted by law, has a lien upon the motor vehicle, motorcycle, motor equipment, trailer, mobile home or manufactured home or any part or parts thereof for the sum due for the towing, storing, maintaining, keeping or repairing of the motor vehicle, motorcycle, motor equipment, trailer, mobile home or manufactured home or for labor furnished thereon, or for furnishing accessories, facilities, services or supplies therefor, and for all costs incurred in enforcing such a lien.

      2.  Subject to the provisions of NRS 108.315, a person engaged in the business of keeping a recreational vehicle park who, at the request or with the consent of the owner of a recreational vehicle or his representative, furnishes facilities or services in the recreational vehicle park for the recreational vehicle, has a lien upon the recreational vehicle for the amount of rent due for furnishing those facilities and services, and for all costs incurred in enforcing such a lien.


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

ê1997 Statutes of Nevada, Page 2865 (Chapter 584, AB 496)ê

 

furnishes facilities or services in the recreational vehicle park for the recreational vehicle, has a lien upon the recreational vehicle for the amount of rent due for furnishing those facilities and services, and for all costs incurred in enforcing such a lien.

      3.  A person who at the request of the legal owner performed labor on, furnished materials or supplies or provided storage for any aircraft, aircraft equipment or aircraft parts is entitled to a lien for such services, materials or supplies and for the costs incurred in enforcing the lien.

      4.  Any person who is entitled to a lien as provided in subsections 1, 2 and 3 may, without process of law, detain the motor vehicle, motorcycle, motor equipment, trailer, recreational vehicle, mobile home, manufactured home, aircraft, aircraft equipment or aircraft parts at any time it is lawfully in his possession until the sum due to him is paid.

________

 

CHAPTER 585, AB 501

Assembly Bill No. 501–Assemblyman Ernaut

CHAPTER 585

AN ACT relating to financial administration; revising certain provisions governing the investment of proceeds from the bonds issued by the state and local governments; revising the provisions governing the apportionment of certain costs of metropolitan police departments; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 349.304 is hereby amended to read as follows:

      349.304  1.  The commission, subject to any contractual limitations from time to time imposed upon the state by any act or resolution authorizing the issuance of the state’s outstanding securities or by any trust indenture or other proceedings appertaining thereto, may cause to be invested and reinvested any proceeds of taxes, any pledged revenues and any proceeds of bonds or other state securities issued hereunder in [federal] :

      (a) Federal securities and other securities of the Federal Government . [and]

      (b) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

The commission may cause such proceeds of taxes, revenues, state securities, federal securities , [and] other securities of the Federal Government and money market mutual funds to be deposited in any trust bank or trust banks within or without or both within and without this state and secured in such manner and subject to such terms and conditions as the commission may determine, with or without the payment of any interest on such deposit, including , without limitation , time deposits evidenced by certificates of deposit.


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

ê1997 Statutes of Nevada, Page 2866 (Chapter 585, AB 501)ê

 

and secured in such manner and subject to such terms and conditions as the commission may determine, with or without the payment of any interest on such deposit, including , without limitation , time deposits evidenced by certificates of deposit.

      2.  Any federal securities, other securities of the Federal Government , shares in money market mutual funds and any such certificates of deposit thus held may, from time to time, be sold , and the proceeds may be so reinvested or redeposited as provided in this section.

      3.  Sales and redemptions of any federal securities, other securities of the Federal Government , shares in money market mutual funds and such certificates of deposit thus held [shall,] must, from time to time, be made in season so that the proceeds may be applied to the purposes for which the money with which such securities , shares in money market mutual funds and certificates of deposit were originally acquired was placed in the state treasury.

      4.  Any gain from any such investments or reinvestments may be credited to any fund or account pledged for the payment of any state securities issued hereunder, including any reserve therefor, or any other fund or account appertaining to a project or any facilities or the state’s general fund, subject to any contractual limitations in any proceedings appertaining to outstanding state securities.

      5.  It is lawful for any commercial bank incorporated under the laws of this state which may act as depository of the proceeds of any securities issued hereunder, any federal securities , [and] other securities of the Federal Government and shares in money market mutual funds owned by the state, any proceeds of taxes, any pledged revenues and any [moneys] money otherwise appertaining to a project or any facilities, or any combination thereof, to furnish such indemnifying bonds or to pledge such federal securities, such other securities issued by the Federal Government, such shares in money market mutual funds and such other securities as may be required by the commission.

      Sec. 2.  NRS 349.630 is hereby amended to read as follows:

      349.630  The director shall adopt regulations for:

      1.  Investment and reinvestment of the proceeds from the sale of bonds, including , but not limited to:

      (a) Bonds or other obligations of the United States of America.

      (b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States of America.

      (c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.

      (d) Obligations issued or guaranteed by any state of the United States of America, or any political subdivision of any state.

      (e) Prime commercial paper.

      (f) Prime finance company paper.

      (g) Bankers’ acceptances drawn on and accepted by commercial banks.

      (h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States of America or by any person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.


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

ê1997 Statutes of Nevada, Page 2867 (Chapter 585, AB 501)ê

 

by any person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.

      (i) Certificates of deposit issued by commercial banks, including banks domiciled outside the United States of America.

      (j) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      2.  Receiving, holding and disbursing of proceeds of the sale of bonds by one or more banks or trust companies located within or out of this state.

      Sec. 3.  NRS 349.921 is hereby amended to read as follows:

      349.921  1.  The bonds issued pursuant to NRS 349.900 to 349.929, inclusive, must be structured to provide a significant degree of safety as to repayment of principal and interest upon their maturity.

      2.  A portion of the proceeds of the bonds must be placed in a fund for the retirement of the bonds. The money in this fund must be invested in:

      (a) Direct obligations of, or obligations the payment of the principal of and the interest of which are unconditionally guaranteed by the United States; [or]

      (b) Obligations issued or guaranteed as to principal and interest by any agency or instrumentality of the United States [.] ; or

      (c) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      3.  The amount of the deposit in the fund for the retirement of bonds must be determined on the basis of the yields available from the securities in which that money may be invested on the date of the deposit and calculated so as to produce, without reinvestment, a balance in the fund sufficient to pay the principal amount due on the bonds at maturity.

      Sec. 4.  NRS 349.924 is hereby amended to read as follows:

      349.924  The director shall adopt regulations for:

      1.  Investment and reinvestment of the proceeds designated for the account for venture capital from the sale of bonds, including , but not limited to:

      (a) Bonds or other obligations of the United States.

      (b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States.

      (c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the Congress of the United States.


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

ê1997 Statutes of Nevada, Page 2868 (Chapter 585, AB 501)ê

 

instrumentality of the United States pursuant to authority granted by the Congress of the United States.

      (d) Obligations issued or guaranteed by any state of the United States, or any political subdivision of any state.

      (e) Prime commercial paper.

      (f) Prime finance company paper.

      (g) Bankers’ acceptances drawn on and accepted by commercial banks.

      (h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States or by any person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the Congress of the United States.

      (i) Certificates of deposit issued by commercial banks, including banks domiciled outside of the United States.

      (j)Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      2.  Receiving, holding and disbursing of proceeds of the sale of bonds by one or more banks or trust companies located within or outside of this state.

This section does not expand the authority for investing the proceeds of bonds placed in the fund for the retirement of bonds.

      Sec. 5.  Chapter 350 of NRS is hereby amended by adding thereto a new section to read as follows:

      The governing body of a municipality whose population is 50,000 or more, subject to any contractual limitations from time to time imposed upon the municipality by any ordinance authorizing the issuance of outstanding securities of the municipality or by any trust indenture or other proceedings appertaining thereto, may cause to be invested and reinvested, except as otherwise provided in NRS 350.698, any proceeds of taxes, any pledged revenues and any proceeds of bonds or other municipal securities issued hereunder for which the amount of the principal of the original issuance was $40,000,000 or more in an investment contract that is collateralized with securities issued by the Federal Government or agencies of the Federal Government if:

      1.  The collateral has a market value of at least 102 percent of the amount invested and any accrued unpaid interest thereon;

      2.  The municipality receives a security interest in the collateral that is fully perfected and the collateral is held in custody for the municipality or its trustee by a third-party agent of the municipality which is a commercial bank authorized to exercise trust powers;

      3.  The market value of the collateral is determined not less frequently than weekly and, if the ratio required by subsection 1 is not met, sufficient additional collateral is deposited with the agent of the municipality to meet that ratio within 2 business days after the determination; and


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

ê1997 Statutes of Nevada, Page 2869 (Chapter 585, AB 501)ê

 

      4.  The party with whom the investment contract is executed is a commercial bank, or that party or a guarantor of the performance of that party is:

      (a) An insurance company which has a rating on its ability to pay claims of not less than “Aa2” by Moody’s Investors Service, Inc., or “AA” by Standard and Poor’s Ratings Services, or their equivalent; or

      (b) An entity which has a credit rating on its outstanding long-term debt of not less than “A2” by Moody’s Investors Service, Inc., or “A” by Standard and Poor’s Ratings Services, or their equivalent.

      Sec. 6.  NRS 350.658 is hereby amended to read as follows:

      350.658  1.  The governing body, subject to any contractual limitations from time to time imposed upon the municipality by any ordinance authorizing the issuance of the municipality’s outstanding securities or by any trust indenture or other proceedings appertaining thereto, may cause to be invested and reinvested any proceeds of taxes, any pledged revenues and any proceeds of bonds or other municipal securities issued hereunder in [federal] :

      (a) Federal securities and other securities of the Federal Government . [and]

      (b) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

The governing body may cause such proceeds of taxes, revenues, municipal securities, federal securities , [and] other securities of the Federal Government and money market mutual funds to be deposited in any trust bank or trust banks within or without or both within and without this state and secured in such manner and subject to such terms and conditions as the governing body may determine, with or without the payment of any interest on such deposit, including , without limitation , time deposits evidenced by certificates of deposit.

      2.  Any federal securities, other securities of the Federal Government, shares in money market mutual funds and any such certificates of deposit thus held may, from time to time, be sold , and the proceeds may be so reinvested or redeposited as provided in this section.

      3.  Sales and redemptions of any federal securities, other securities of the Federal Government, shares in money market mutual funds and such certificates of deposit thus held [shall,] must, from time to time, be made in season so that the proceeds may be applied to the purposes for which the money with which such securities , shares in money market mutual funds and certificates of deposit were originally acquired was placed in the municipal treasury.

      4.  Any gain from any such investments or reinvestments may be credited to any fund or account pledged for the payment of any municipal securities issued hereunder, including any reserve therefor, or any other fund or account appertaining to a project or any facilities or the municipality’s general fund, subject to any contractual limitations in any proceedings appertaining to outstanding municipal securities.


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

ê1997 Statutes of Nevada, Page 2870 (Chapter 585, AB 501)ê

 

fund or account appertaining to a project or any facilities or the municipality’s general fund, subject to any contractual limitations in any proceedings appertaining to outstanding municipal securities.

      5.  It is lawful for any commercial bank incorporated under the laws of this state which may act as depository of the proceeds of any securities issued hereunder, any federal securities , [and] other securities of the Federal Government and shares in money market mutual funds owned by the municipality, any proceeds of taxes, any pledged revenues, and any [moneys] money otherwise appertaining to a project or any facilities, or any combination thereof, to furnish such indemnifying bonds and to pledge such federal securities, such other securities issued by the Federal Government, such shares in money market funds and such other securities as may be required by the governing body.

      Sec. 7.  NRS 244A.721 is hereby amended to read as follows:

      244A.721  1.  The county may provide that proceeds from the sale of bonds and special funds from the revenues of the project [shall] must be invested and reinvested in such securities and other investments, whether or not any such investment or reinvestment is authorized under any other law of this state, as may be provided in the proceedings under which the bonds are authorized to be issued, including , but not limited to:

      (a) Bonds or other obligations of the United States of America.

      (b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States of America.

      (c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.

      (d) Obligations issued or guaranteed by any state of the United States of America, or any political subdivision of any such state.

      (e) Prime commercial paper.

      (f) Prime finance company paper.

      (g) Bankers’ acceptances drawn on and accepted by commercial banks.

      (h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States of America or by any person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.

      (i) Certificates of deposit issued by commercial banks, including banks domiciled outside of the United States of America.

      (j) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      2.  The county may also provide that such proceeds or funds or investments and the payments payable under the lease, the agreement of sale or the financing agreement [shall] must be received, held and disbursed by one or more banks or trust companies located within or out of this state.


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

ê1997 Statutes of Nevada, Page 2871 (Chapter 585, AB 501)ê

 

or the financing agreement [shall] must be received, held and disbursed by one or more banks or trust companies located within or out of this state.

      Sec. 8.  NRS 268.540 is hereby amended to read as follows:

      268.540  1.  Unless prohibited by its charter, the city may provide that proceeds from the sale of bonds and special funds from the revenues of the project be invested and reinvested in such securities and other investments, whether or not any such investment or reinvestment is authorized under any other law of this state, as provided in the proceedings under which the bonds are authorized to be issued, including , but not limited to:

      (a) Bonds or other obligations of the United States of America.

      (b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States of America.

      (c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.

      (d) Obligations issued or guaranteed by any state of the United States of America, or any political subdivision of any such state.

      (e) Prime commercial paper.

      (f) Prime finance company paper.

      (g) Bankers’ acceptances drawn on and accepted by commercial banks.

      (h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States of America or by any person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.

      (i) Certificates of deposit issued by commercial banks, including banks domiciled outside of the United States of America.

      (j) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      2.  The city may also provide that such proceeds or funds or investments and the payments payable under the lease, the agreement of sale or the financing agreement be received, held and disbursed by one or more banks or trust companies located within or out of this state.

      Sec. 9.  NRS 279.280 is hereby amended to read as follows:

      279.280  Every municipality [shall have] has all the powers necessary or convenient to carry out and effectuate the purposes and provisions of NRS 279.010 to 279.380, inclusive, including the following powers in addition to others herein granted:

      1.  To undertake and carry out urban renewal projects within its area of operation; to make and execute contracts and other instruments necessary or convenient to the exercise of its powers under NRS 279.010 to 279.380, inclusive; and to disseminate slum clearance and urban renewal information.


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

ê1997 Statutes of Nevada, Page 2872 (Chapter 585, AB 501)ê

 

      2.  To provide or to arrange or contract for the furnishing or repair by any person or agency, public or private, of services, privileges, works, streets, roads, public utilities or other facilities for or in connection with an urban renewal project; to install, construct and reconstruct streets, utilities, parks, playgrounds [,] and other public improvements; and to agree to any conditions that it may deem reasonable and appropriate attached to federal financial assistance and imposed pursuant to federal law relating to the determination of prevailing salaries or wages or compliance with labor standards, in the undertaking or carrying out of an urban renewal project, and to include in any contract let in connection with such a project provisions to fulfill such of those conditions as it may deem reasonable and appropriate.

      3.  Within its area of operation, to enter into any building or property in any urban renewal area in order to make inspections, surveys, appraisals, soundings or test borings, and to obtain an order for this purpose from a court of competent jurisdiction in the event entry is denied or resisted; to acquire, by purchase, lease, option, gift, grant, bequest, devise, eminent domain or otherwise, any real property, or personal property for its administrative purposes, together with any improvements thereon; to hold, improve, clear or prepare for redevelopment any such property; to mortgage, pledge, hypothecate or otherwise encumber or dispose of any real property; to insure or provide for the insurance of any real or personal property or operations of the municipality against any risks or hazards, including the power to pay premiums on any such insurance; and to enter into any contracts necessary to effectuate the purposes of NRS 279.010 to 279.380, inclusive. No statutory provision with respect to the acquisition, clearance or disposition of property by public bodies [shall] may restrict a municipality, or other public body exercising powers hereunder, in the exercise of such functions with respect to an urban renewal project, unless the legislature [shall] specifically so [state.] states.

      4.  To invest any urban renewal project funds held in reserves or sinking funds, or any such funds not required for immediate disbursement [, in property or securities in which savings banks may legally invest funds subject to their control; and to] in:

      (a) Obligations issued by the United States Postal Service or the Federal National Mortgage Association, whether or not the payment of principal and interest thereon is guaranteed by the Federal Government.

      (b) Bonds or other obligations issued by a municipality pursuant to the provisions of NRS 279.010 to 279.380, inclusive, or by an urban renewal agency or a housing authority vested with urban renewal project powers pursuant to NRS 279.360, if the bonds or other obligations are secured by an agreement between the issuer and the Federal Government in which the issuer agrees to borrow from the Federal Government and the Federal Government agrees to lend to the issuer before the maturity of the bonds or other obligations, money in an amount that, together with any other money irrevocably committed to the payment of interest on the bonds or other obligations, will suffice to pay the principal of the bonds or other obligations with interest to maturity thereon, which money under the terms of the agreement is required to be used for the purpose of paying the principal and the interest on the bonds or other obligations at their maturity.


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

ê1997 Statutes of Nevada, Page 2873 (Chapter 585, AB 501)ê

 

agreement is required to be used for the purpose of paying the principal and the interest on the bonds or other obligations at their maturity.

      (c) Bonds or other obligations issued by a redevelopment agency created pursuant to NRS 279.382 to 279.685, inclusive, or a legislative body that has elected to exercise the powers granted to an agency pursuant to NRS 279.382 to 279.685, inclusive.

      (d) Bonds or other securities issued pursuant to the provisions of NRS 349.150 to 349.364, inclusive, 350.500 to 350.720, inclusive, or 396.809 to 396.885, inclusive, and section 5 of this act.

      (e) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      5.  To redeem such bonds as have been issued pursuant to NRS 279.310 at the redemption price established therein or to purchase such bonds at less than redemption price, all such bonds so redeemed or purchased to be canceled.

      [5.] 6.  To borrow money and to apply for and accept advances, loans, grants, contributions and any other form of financial assistance from the Federal Government, the state, county, or other public body, or from any sources, public or private, for the purposes of NRS 279.010 to 279.380, inclusive, and to give such security as may be required and to enter into and carry out contracts in connection therewith. A municipality may include in any contract for financial assistance with the Federal Government for an urban renewal project such conditions imposed pursuant to federal laws as the municipality may deem reasonable and appropriate and which are not inconsistent with the purposes of NRS 279.010 to 279.380, inclusive.

      [6.] 7.  Within its area of operation, to make or have made all surveys and plans necessary to the carrying out of the purposes of NRS 279.010 to 279.380, inclusive, and to contract with any person, public or private, in making and carrying out such plans and to adopt or approve, modify and amend such plans. Such plans may include, without limitation:

      (a) A general plan for the locality as a whole.

      (b) Urban renewal plans.

      (c) Preliminary plans outlining urban renewal activities for neighborhoods to embrace two or more urban renewal areas.

      (d) Plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements.

      (e) Plans for the enforcement of state and local laws, codes and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition or removal of buildings and improvements.

      (f) Appraisals, title searches, surveys, studies [,] and other plans and work necessary to prepare for the undertaking of urban renewal projects.


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

ê1997 Statutes of Nevada, Page 2874 (Chapter 585, AB 501)ê

 

The municipality is authorized to develop, test and report methods and techniques, and carry out demonstrations and other activities, for the prevention and the elimination of slums and urban blight and to apply for, accept and utilize grants of funds from the Federal Government for such purposes.

      [7.] 8.  To prepare plans for the relocation of persons, including families, business concerns and others, displaced by an urban renewal project [,] and to make relocation payments to or with respect to such persons for moving expenses and losses of property for which reimbursement or compensation is not otherwise made, including the making of such payments financed by the Federal Government.

      [8.] 9.  To appropriate such funds and make such expenditures as may be necessary to carry out the purposes of NRS 279.010 to 279.380, inclusive, and to levy taxes and assessments for such purposes; to zone or rezone any part of the municipality or make exceptions from building regulations; and to enter into agreements with a housing authority or an urban renewal agency vested with urban renewal project powers under NRS 279.360, which agreements may extend over any period, notwithstanding any provision or rule of law to the contrary, respecting action to be taken by [such] the municipality pursuant to any of the powers granted by NRS 279.010 to 279.380, inclusive.

      [9.] 10.  To close, vacate, plan or replan streets, roads, sidewalks, ways or other places; and to plan or replan any part of the municipality.

      [10.] 11.  Within its area of operation, to organize, coordinate and direct the administration of the provisions of NRS 279.010 to 279.380, inclusive, as they apply to [such] the municipality in order that the objective of remedying slum and blighted areas and preventing the causes thereof within [such] the municipality may be most effectively promoted and achieved, and to establish such new office or offices of the municipality or to reorganize existing offices in order to carry out [such purpose] the objective most effectively.

      [11.] 12.  To exercise all or any part or combination of powers herein granted.

      Sec. 10.  NRS 279.360 is hereby amended to read as follows:

      279.360  1.  A municipality may itself exercise its urban renewal project powers, as set forth in subsection 2, or may, if the local governing body by resolution determines such action to be in the public interest, elect to have such powers exercised by the urban renewal agency, created by NRS 279.370, or by the housing authority, if one exists or is subsequently established in the community. In the event the local governing body makes such determination, the urban renewal agency or the housing authority, as the case may be, [shall be] is vested with all of the urban renewal project powers in the same manner as though all such powers were conferred on such agency or authority instead of the municipality. If the local governing body does not elect to make such determination, the municipality in its discretion may exercise its urban renewal project powers through a board or commissioner or through such officers of the municipality as the local governing body may by resolution determine.


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

ê1997 Statutes of Nevada, Page 2875 (Chapter 585, AB 501)ê

 

      2.  A local governing body which has elected to have its urban renewal powers exercised by the urban renewal agency or by the housing authority, if any, may at any time, by resolution, rescind such election. A rescission pursuant to this subsection does not affect any contract or other obligation incurred by the separate agency while exercising the powers vested by such election.

      3.  As used in this section, the term “urban renewal project powers” [shall include] includes the rights, powers, functions and duties of a municipality under NRS 279.010 to 279.380, inclusive, except the following powers:

      (a) To determine an area to be a slum or blighted area or combination thereof and to designate such area as appropriate for an urban renewal project and to hold any public hearings required with respect thereto.

      (b) To approve urban renewal plans and modifications thereof.

      (c) To establish a general plan for the locality as a whole.

      (d) To formulate a workable program under NRS 279.250.

      (e) To make the determinations and findings provided for in NRS 279.240 and 279.260, and subsection 4 of NRS 279.270.

      (f) To issue general obligation bonds.

      (g) To appropriate funds, to levy taxes and assessments, and to exercise other powers provided for in subsection [8] 9 of NRS 279.280.

      Sec. 11.  NRS 279.480 is hereby amended to read as follows:

      279.480  An agency may:

      1.  Invest any money held in reserves or sinking funds, or any money not required for immediate disbursement, in [property or securities in which savings banks may legally invest money subject to their control.] :

      (a) Obligations issued by the United States Postal Service or the Federal National Mortgage Association, whether or not the payment of principal and interest thereon is guaranteed by the Federal Government.

      (b) Bonds or other obligations issued by a municipality pursuant to the provisions of NRS 279.010 to 279.380, inclusive, or by an urban renewal agency or a housing authority vested with urban renewal project powers pursuant to NRS 279.360, if the bonds or other obligations are secured by an agreement between the issuer and the Federal Government in which the issuer agrees to borrow from the Federal Government and the Federal Government agrees to lend to the issuer before the maturity of the bonds or other obligations, money in an amount that, together with any other money irrevocably committed to the payment of interest on the bonds or other obligations, will suffice to pay the principal of the bonds or other obligations with interest to maturity thereon, which money under the terms of the agreement is required to be used for the purpose of paying the principal and the interest on the bonds or other obligations at their maturity.

      (c) Bonds or other obligations issued by a redevelopment agency created pursuant to NRS 279.382 to 279.685, inclusive, or a legislative body that has elected to exercise the powers granted to an agency pursuant to the provisions of NRS 279.382 to 279.685, inclusive.

      (d) Bonds or other securities issued pursuant to the provisions of NRS 349.150 to 349.364, inclusive, 350.500 to 350.720, inclusive, or 396.809 to 396.885, inclusive.


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

ê1997 Statutes of Nevada, Page 2876 (Chapter 585, AB 501)ê

 

      (e) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      (f) Any other investment in which a city may invest pursuant to NRS 355.170.

      2.  Purchase its bonds at a price not more than their principal amount and accrued interest. All bonds so purchased [shall] must be canceled.

      Sec. 11.5.  NRS 280.201 is hereby amended to read as follows:

      280.201  1.  The funding apportionment plan must exclude the cost of:

      (a) Operating and maintaining a county or a branch county jail;

      (b) A rural program of resident officers, where applicable; and

      (c) Any program of contract services which is totally funded by the contracting agency or entity.

The costs described in paragraphs (a) and (b) are a proper charge against the county. The capital costs of building a county or a branch county jail are the responsibility of the board of county commissioners.

      2.  If a department operates a program for school crossing guards, each participating political subdivision must pay the cost of operating the positions located within its jurisdiction.

      3.  The funding apportionment plan must apportion the anticipated costs of operating and maintaining the department, and capital costs, after deducting all anticipated revenue internally generated by the department, among the participating political subdivisions according to the formula developed by the department pursuant to this section.

      4.  Except as otherwise provided in subsection 1, an additional tax ad valorem that is levied pursuant to the approval of the voters must be levied at a uniform rate in the unincorporated area of the county and in each participating city.

      5.  In developing the formula, the department must divide its budget into the following functional areas:

      (a) Activities which are the responsibility of any one of the participating political subdivisions.

      (b) Contract services which are performed solely for another agency or entity.

      (c) Administrative or supporting activities.

      (d) The remaining activities, services or programs are to be allocated to those functional areas which are to be jointly funded by the participating political subdivision.

Contract services which are performed solely for another agency or entity must each be identified as a separate functional area.

      [5.] 6.  The department must identify the bureaus, sections, divisions and groups that are assigned to each functional area. Each functional area must be a separate accounting unit within the budget of the department for the purpose of apportioning the cost among the participating political subdivisions.


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

ê1997 Statutes of Nevada, Page 2877 (Chapter 585, AB 501)ê

 

the purpose of apportioning the cost among the participating political subdivisions.

      [6.] 7.  The costs of the activities of administration or support must be allocated to the other functional area to which they apply in the ratio that the cost of each functional area bears to the combined costs of the other functional areas.

      [7.] 8.  The costs of each functional area which is to be jointly funded, including the administrative and support costs allocated in accordance with subsection 6, must be apportioned among the participating political subdivisions as follows:

      (a) The cost of uniformed functions in the field must be apportioned on a percentage basis according to the comparative cumulative, unweighted percentage relationship among the participating political subdivisions of the permanent population of the participating political subdivisions, as determined annually by the governor, the total number of calls for service which were dispatched by the department in each participating political subdivision, excluding:

             (1) Calls for service with respect to felony crimes;

             (2) Calls for service originating in those areas which were served by a rural program of resident officers; and

             (3) Calls for service originating from a program of contract services which is totally funded by the contracting agency or entity,

and the total number of felonies which were reported in each participating political subdivision, excluding reports of felonies originating from a rural program of resident officers or a program of contract services. The number of calls for service and the number of felonies reported must have been made during the 12 months preceding January 1 of the current fiscal year.

      (b) The cost of the investigative function must be apportioned on a percentage basis according to the comparative cumulative, unweighted percentage relationship among the participating political subdivisions of the total number of felonies which were reported in each participating political subdivision during the 12 months preceding January 1 of the current fiscal year.

      [8.] 9.  For the purpose of subsection [7,] 8, the population attributable to a county does not include the population of the cities within that county or the population of those areas within that county which are served by a rural program of resident officers.

      [9.] 10.  The department shall maintain all of the statistics necessary to effectuate the funding apportionment plan and shall maintain accurate records in support of the determination required in order to comply with this section.

      [10.] 11.  If, in the initial year of the merger, the statistics necessary to determine the funding apportionment plan for the remainder of that year are incomplete, the department shall prepare a funding apportionment plan for the remainder of that year based upon the most accurate statistics available, and apply it as closely as possible in the manner prescribed in this section. The fact that a budget, a funding apportionment plan and a rural program of resident officers are not prepared and submitted when due does not invalidate any of them.


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

ê1997 Statutes of Nevada, Page 2878 (Chapter 585, AB 501)ê

 

      Sec. 12.  NRS 315.470 is hereby amended to read as follows:

      315.470  An authority may:

      1.  Invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in [liquid securities in which savings banks may legally invest funds subject to their control.] :

      (a) Obligations issued by the United States Postal Service or the Federal National Mortgage Association, whether or not the payment of principal and interest thereon is guaranteed by the Federal Government.

      (b) Bonds or other obligations issued by a municipality pursuant to NRS 279.010 to 279.380, inclusive, or by an urban renewal agency or a housing authority vested with urban renewal project powers pursuant to NRS 279.360, if the bonds or other obligations are secured by an agreement between the issuer and the Federal Government in which the issuer agrees to borrow from the Federal Government and the Federal Government agrees to lend to the issuer before the maturity of the bonds or other obligations, money in an amount that, together with any other money irrevocably committed to the payment of interest on the bonds or other obligations, will suffice to pay the principal of the bonds or other obligations with interest to maturity thereon, which money under the terms of the agreement is required to be used for the purpose of paying the principal and the interest on the bonds or other obligations at their maturity.

      (c) Bonds or other obligations issued by a redevelopment agency created pursuant to NRS 279.382 to 279.685, inclusive, or a legislative body that has elected to exercise the powers granted an agency pursuant to NRS 279.382 to 279.685, inclusive.

      (d) Bonds or other securities issued pursuant to the provisions of NRS 349.150 to 349.364, inclusive, 350.500 to 350.720, inclusive, or 396.809 to 396.885, inclusive.

      (e) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      2.  Redeem its bonds at the redemption price established therein or purchase its bonds at less than such redemption price . [; all] All bonds so redeemed or purchased [shall] must be canceled.

      Sec. 13.  NRS 353.280 is hereby amended to read as follows:

      353.280  1.  When state money is placed in escrow, the escrow agent is authorized to invest that money in :

      (a) United States Government securities . [,]

      (b) United States Postal Service obligations . [or]

      (c) Federal National Mortgage Association obligations whose maturity date is before the end of the escrow period.

      (d) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;


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

ê1997 Statutes of Nevada, Page 2879 (Chapter 585, AB 501)ê

 

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

The interest from the securities must be credited to the proper state agency.

      2.  The escrow agent shall not invest state money pursuant to a reverse-repurchase agreement.

      Sec. 14.  NRS 355.060 is hereby amended to read as follows:

      355.060  1.  The state controller shall notify the state treasurer monthly of the amount of uninvested money in the state permanent school fund.

      2.  Whenever there is a sufficient amount of money for investment in the state permanent school fund, the state treasurer shall proceed to negotiate for the investment of the money in:

      (a) United States bonds;

      (b) Obligations or certificates of the Federal National Mortgage Association, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal Farm Credit Banks Funding Corporation or the Student Loan Marketing Association, whether or not guaranteed by the United States;

      (c) Bonds of this state or of other states;

      (d) Bonds of any county of the State of Nevada;

      (e) United States treasury notes;

      (f) Farm mortgage loans fully insured and guaranteed by the Farmers Home Administration of the United States Department of Agriculture; [or]

      (g) Loans at a rate of interest of not less than 6 percent per annum, secured by mortgage on agricultural lands in this state of not less than three times the value of the amount loaned, exclusive of perishable improvements, of unexceptional title and free from all encumbrances [.] ; or

      (h) Money market mutual funds that:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.

      3.  No part of the state permanent school fund may be invested pursuant to a reverse-repurchase agreement.

      Sec. 15.  NRS 355.165 is hereby amended to read as follows:

      355.165  1.  The local government pooled long-term investment account is hereby created. The account must be administered by the state treasurer.

      2.  All of the provisions of NRS 355.167 apply to the local government pooled long-term investment account.

      3.  In addition to the investments which are permissible pursuant to subsection 3 of NRS 355.167, the treasurer may invest the money in the local government pooled long-term investment account in [mutual] :


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

ê1997 Statutes of Nevada, Page 2880 (Chapter 585, AB 501)ê

 

      (a) Mutual funds which:

      [(a)] (1) Are registered with the Securities and Exchange Commission;

      [(b)] (2) Are rated in the highest rating category by at least one nationally recognized rating service; and

      [(c)] (3) Invest only in securities issued by the Federal Government or agencies of the Federal Government or in repurchase agreements fully collateralized by such securities.

      (b) An investment contract that is collateralized with securities issued by the Federal Government or agencies of the Federal Government if:

             (1) The collateral has a market value of at least 102 percent of the amount invested and any accrued unpaid interest thereon;

             (2) The treasurer receives a security interest in the collateral that is fully perfected and the collateral is held in custody for the state by a third-party agent of the state which is a commercial bank authorized to exercise trust powers;

             (3) The market value of the collateral is determined not less frequently than weekly and, if the ratio required by subparagraph (1) is not met, sufficient additional collateral is deposited with the agent of this state to meet that ratio within 2 business days after the determination; and

             (4) The party with whom the investment contract is executed is a commercial bank, or that party or a guarantor of the performance of that party is:

                   (I) An insurance company which has a rating on its ability to pay claims of not less than “Aa2” by Moody’s Investors Service, Inc., or “AA” by Standard and Poor’s Ratings Services, or their equivalent; or

                   (II) An entity which has a credit rating on its outstanding long-term debt of not less than “A2” by Moody’s Investors Service, Inc., or “A” by Standard and Poor’s Ratings Services, or their equivalent.

      4.  In addition to the reasonable charges against the account which the state treasurer may assess pursuant to subsection 7 of NRS 355.167, the state treasurer may, in the case of a local government pooled long-term investment account, assess the costs:

      (a) Associated with a calculation of any rebate of arbitrage profits which is required to be paid to the Federal Government by 26 U.S.C. § 148; and

      (b) Of contracting with qualified persons to assist in the:

             (1) Calculation of any rebate of arbitrage profits which is required to be paid to the Federal Government by 26 U.S.C. § 148; and

             (2) Administration of the account.

      5.  In addition to the quarterly computations of interest to be reinvested for or paid to each participating local government pursuant to subsection 8 of NRS 355.167, the state treasurer may, in the case of a local government pooled long-term investment account, compute and reinvest or pay the interest more frequently. He may also base his computations on the amount of interest accrued rather than the amount received.

      6.  The treasurer may establish one or more separate subaccounts in the local government pooled long-term investment account for identified investments that are made for and allocated to specific participating local governments.


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

ê1997 Statutes of Nevada, Page 2881 (Chapter 585, AB 501)ê

 

      Sec. 16.  Section 3 of chapter 817, Statutes of Nevada 1987, at page 2284, is hereby amended to read as follows:

       Sec. 3.  The board of county commissioners, city council or other governing body of each taxing district in the taxable area shall levy on behalf of its taxing district [, in the manner provided in NRS 354.460,] an ad valorem tax on all taxable property within that taxing district [. The rate of the taxes must be apportioned between the taxing districts, as provided in NRS 280.201, such that the combined rate of the taxes must,] for the fiscal year 1988-1989 and thereafter, except as otherwise provided in section 4 of this act, [be] at the rate of 2 cents for every $100 of the total assessed valuation of the taxable area.

      Sec. 17.  Section 4 of chapter 817, Statutes of Nevada 1987, at page 2284, is hereby amended to read as follows:

       Sec. 4.  1.  The board of county commissioners, city council or other governing body of each taxing district in the taxable area shall propose to the registered voters of its taxing district at the general election held in 1988 the questions of whether to:

       (a) Continue the taxes imposed pursuant to section 3 of this act; and

       (b) Increase the [combined] rate of the taxes if the taxes are continued.

       2.  The increase proposed pursuant to subsection 1 must not be more than 2 cents for each $100 of the total assessed valuation of the taxable area in the fiscal year 1989-1990, 4 cents for each $100 in the fiscal year 1990-1991, and 6 cents for each $100 in each year after the fiscal year 1990-1991.

       3.  If the voters of any taxing district in the taxable area disapprove the proposed continuation of the taxes, the taxes must not be imposed in the fiscal year 1989-1990 or thereafter. If the proposed continuation and increase are approved by the voters of each taxing district in the taxable area, the taxes must be collected at the [combined] rate approved by the people.

      Sec. 18.  Section 3 of chapter 11, Statutes of Nevada 1993, at page 27, is hereby amended to read as follows:

       Sec. 3.  1.  The board of county commissioners, city council or other governing body of each taxing district in the taxable area shall propose to the registered voters of its taxing district at an election held in conjunction with the regular general city election in 1993 the question of whether an additional ad valorem tax shall be levied on all taxable property within the district for the support of the department for the purpose of employing additional police officers. The rate of the additional tax [must be apportioned among the taxing districts as provided in NRS 280.201, such that the combined rate of the additional tax in all the taxing districts] for each $100 of the total assessed valuation of the taxable area must not be more than 4 cents in fiscal year 1993-1994, 8 cents in fiscal year 1994-1995, 10 cents in fiscal year 1995-1996 and 12 cents in each fiscal year thereafter.


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

ê1997 Statutes of Nevada, Page 2882 (Chapter 585, AB 501)ê

 

       2.  If the voters of any taxing district in the taxable area of a department disapprove the additional tax proposed pursuant to subsection 1, the additional tax must not be imposed in any of the taxing districts in the taxable area of that department.

       3.  If the proposed additional tax is approved by the voters in all of the taxing districts of the taxable area of a department, the tax must be imposed by the taxing entities in each district of the taxable area of the department at the [combined] rate approved by the voters in the district.

      Sec. 19.  Section 3 of chapter 658, Statutes of Nevada 1995, at page 2535, is hereby amended to read as follows:

       Sec. 3.  1.  The board of county commissioners, city council or other governing body of each taxing district in the taxable area shall propose to the registered voters of its taxing district at the next county general election the question of whether an additional ad valorem tax shall be levied on all taxable property within the district for the support of the department for the purpose of employing additional police officers. The [rate of the additional tax must be apportioned among the taxing districts as provided in NRS 280.201.] additional tax must be levied at a uniform rate in the unincorporated area of the county and in each participating city.

       2.  The board of county commissioners, city council or other governing body of each taxing district proposing the question at the next county general election of whether an additional ad valorem tax shall be levied pursuant to this act shall place upon the ballot information regarding:

       (a) The method to be used for the apportionment of the costs of employing the additional police officers; and

       (b) The initial ad valorem tax rate and the method for determining the ad valorem tax rate for each fiscal year.

The ballot must also include a declaration that the additional ad valorem tax rate may change in the future based on changes in the formula for the distribution of the tax and changes in the assessed valuation of taxable property in each taxing district.

       3.  The rate of the tax levied pursuant to this act must not exceed 20 cents per $100 of assessed valuation.

       4.  If the voters of any taxing district in the taxable area of a department disapprove the additional tax proposed pursuant to subsection 1, the additional tax must not be imposed in any of the taxing districts in the taxable area of that department.

       5.  If the proposed additional tax is approved by the voters in all of the taxing districts of the taxable area of a department, the tax must be imposed by the taxing entities in each district of the taxable area of the department at the [combined] rate approved by the voters in the district.


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

ê1997 Statutes of Nevada, Page 2883 (Chapter 585, AB 501)ê

 

      Sec. 20.  The taxes levied for the support of each metropolitan police district for the fiscal year 1997-1998 must be apportioned in accordance with this act, and a levy of tax made before July 1, 1997, must be adjusted if necessary for that purpose.

      Sec. 21.  1.  This section and sections 11.5 and 16 to 20, inclusive, of this act become effective on June 30, 1997.

      2.  Sections 1 to 11, inclusive, and 12 to 15, inclusive, of this act become effective upon passage and approval.

________

 

CHAPTER 586, AB 521

Assembly Bill No. 521–Committee on Commerce

CHAPTER 586

AN ACT relating to insurance; making various changes relating to the availability and portability of health insurance for individuals, small employers and groups in certain circumstances; providing certain minimum benefits for mothers and newborn infants; providing parity for benefits for treatment of mental health in certain circumstances; establishing a program of reinsurance to insure certain eligible employees and persons; creating a board of directors of the program of reinsurance and defining its duties; providing for an assessment to pay for the program of reinsurance; providing certain civil immunity relating to the program of reinsurance; creating a committee on health benefit plans and defining its duties; providing penalties; making an appropriation; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 689A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 57, inclusive, of this act.

      Sec. 2.  As used in sections 2 to 57, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 31, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 3.  “Affiliated” means any entity or person who directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a specified entity or person.

      Sec. 4.  “Basic health benefit plan” means the basic health benefit plan developed pursuant to sections 145 to 182, inclusive, of this act.

      Sec. 4.5.  “Bona fide association” means, with respect to health insurance coverage offered in this state, an association that:

      1.  Has been actively in existence for at least 5 years;

      2.  Has been formed and maintained in good faith for purposes other than obtaining insurance;

      3.  Does not condition membership in the association on any health status-related factor relating to an individual, including an employee of an employer or a dependent of an employee;

      4.  Makes health insurance coverage offered through the association available to all of its members regardless of any health status-related factors of the members or other individuals who are eligible for such health insurance coverage through a member of the association;

 


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

ê1997 Statutes of Nevada, Page 2884 (Chapter 586, AB 521)ê

 

factors of the members or other individuals who are eligible for such health insurance coverage through a member of the association;

      5.  Does not make health insurance coverage offered through the association available other than in connection with a member of the association; and

      6.  Meets such additional requirements as may be imposed by specific statute.

      Sec. 5.  “Church plan” has the meaning ascribed to it in section 3(33) of the Employee Retirement Income Security Act of 1974, as that section existed on the effective date of this act.

      Sec. 6.  “Control” has the meaning ascribed to it in NRS 692C.050.

      Sec. 7.  “Converted policy” means a basic or standard health benefit plan issued in accordance with section 87 of this act and NRS 689B.120 to 689B.240, inclusive.

      Sec. 8.  “Creditable coverage” means, with respect to a person, health benefits or coverage provided pursuant to:

      1.  A group health plan;

      2.  A health benefit plan;

      3.  Part A or Part B of Title XVIII of the Social Security Act, also known as Medicare;

      4.  Title XIX of the Social Security Act, also known as Medicaid, other than coverage consisting solely of benefits under section 1928 of that Title;

      5.  Chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of Uniformed Services (CHAMPUS));

      6.  A medical care program of the Indian Health Service or of a tribal organization;

      7.  A state health benefit risk pool;

      8.  A health plan offered pursuant to chapter 89 of Title 5, United States Code (Federal Employees Health Benefits Program (FEHBP));

      9.  A public health plan as defined in federal regulations authorized by the Public Health Service Act, section 2701(c)(1)(I), as amended by Public Law 104-191; or

      10.  A health benefit plan under section 5(e) of the Peace Corps Act (22 U.S.C. § 2504(e)).

      Sec. 9.  “Dependent” has the meaning ascribed to in NRS 689C.055.

      Sec. 10.  “Eligible person” means:

      1.  A person:

      (a) Who, as of the date on which he seeks coverage pursuant to this chapter, has an aggregate period of creditable coverage that is 18 months or more;

      (b) Whose most recent prior creditable coverage was under a group health plan, governmental plan, church plan or health insurance coverage offered in connection with any such plan;

      (c) Who is not eligible for coverage under a group health plan, Part A or Part B of Title XVIII of the Social Security Act, also known as Medicare, a state plan pursuant to Title XIX of the Social Security Act, also known as Medicaid, or any successor program, and who does not have any other health insurance coverage;


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

ê1997 Statutes of Nevada, Page 2885 (Chapter 586, AB 521)ê

 

      (d) Whose most recent health insurance coverage within the period of aggregate creditable coverage was not terminated because of a failure to pay premiums or fraud;

      (e) Who has exhausted his continuation of coverage under the Consolidation Omnibus Budget Reconciliation Act of 1985, or under a similar state program, if any; and

      (f) Who has not had a break of more than 63 consecutive days in his creditable coverage.

      2.  Notwithstanding the provisions of paragraph (a) of subsection 1, a newborn child or a child placed for adoption, if the child was enrolled timely and would have otherwise met the requirements of an eligible person as set forth in subsection 1.

      Sec. 11.  “Established geographic service area” means a geographic area, as approved by the commissioner and based on the certificate of authority of the carrier to transact insurance in this state, within which the carrier is authorized to provide coverage.

      Sec. 12.  “Geographic area” means an area established by the commissioner for use in adjusting the rates for a health benefit plan.

      Sec. 13.  “Governmental plan” has the meaning ascribed to it in section 3(32) of the Employee Retirement Income Security Act of 1974, as that section existed on the effective date of this act, and any health plan of the Federal Government.

      Sec. 14.  1.  “Group health plan” means an employee welfare benefit plan, as defined in section 3(1) of the Employee Retirement Income Security Act of 1974, as that section existed on the effective date of this act, to the extent that the plan provides medical care to employees or their dependents as defined under the terms of the plan directly, or through insurance, reimbursement or otherwise.

      2.  The term does not include:

      (a) Coverage that is only for accident or disability income insurance, or any combination thereof;

      (b) Coverage issued as a supplement to liability insurance;

      (c) Liability insurance, including general liability insurance and automobile liability insurance;

      (d) Workers’ compensation or similar insurance;

      (e) Coverage for medical payments under a policy of automobile insurance;

      (f) Credit insurance;

      (g) Coverage for on-site medical clinics; and

      (h) Other similar insurance coverage specified in federal regulations adopted pursuant to Public Law 104-191 under which benefits for medical care are secondary or incidental to other insurance benefits.

      3.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan:

      (a) Limited-scope dental or vision benefits;

      (b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and


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

ê1997 Statutes of Nevada, Page 2886 (Chapter 586, AB 521)ê

 

      (c) Such other similar benefits as are specified in federal regulations adopted pursuant to Public Law 104-191.

      4.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and such benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor:

      (a) Coverage that is only for a specified disease or illness; and

      (b) Hospital indemnity or other fixed indemnity insurance.

      5.  The term does not include any of the following, if offered as a separate policy, certificate or contract of insurance:

      (a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, as that section existed on the effective date of this act;

      (b) Coverage supplemental to the coverage provided pursuant to chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of Uniformed Services (CHAMPUS)); and

      (c) Similar supplemental coverage provided under a group health plan.

      Sec. 15.  1.  “Health benefit plan” means a policy, contract, certificate or agreement offered by a carrier to provide for, deliver payment for, arrange for the payment of, pay for or reimburse any of the costs of health care services. Except as otherwise provided in this section, the term includes short-term and catastrophic health insurance policies, and a policy that pays on a cost-incurred basis.

      2.  The term does not include:

      (a) Coverage that is only for accident or disability income insurance, or any combination thereof;

      (b) Coverage issued as a supplement to liability insurance;

      (c) Liability insurance, including general liability insurance and automobile liability insurance;

      (d) Workers’ compensation or similar insurance;

      (e) Coverage for medical payments under a policy of automobile insurance;

      (f) Credit insurance;

      (g) Coverage for on-site medical clinics; and

      (h) Other similar insurance coverage specified in federal regulations issued pursuant to Public Law 104-191 under which benefits for medical care are secondary or incidental to other insurance benefits.

      3.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan:

      (a) Limited-scope dental or vision benefits;

      (b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and

      (c) Such other similar benefits as are specified in any federal regulations adopted pursuant to Public Law 104-191.


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

ê1997 Statutes of Nevada, Page 2887 (Chapter 586, AB 521)ê

 

      4.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and such benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor:

      (a) Coverage that is only for a specified disease or illness; and

      (b) Hospital indemnity or other fixed indemnity insurance.

      5.  The term does not include any of the following, if offered as a separate policy, certificate or contract of insurance:

      (a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, as that section existed on the effective date of this act;

      (b) Coverage supplemental to the coverage provided pursuant to chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of Uniformed Services (CHAMPUS)); and

      (c) Similar supplemental coverage provided under a group health plan.

      Sec. 16.  “Health status-related factor” means, with regard to a person who is or seeks to be insured:

      1.  Health status;

      2.  Any medical conditions, including physical or mental illness, or both;

      3.  Claims experience;

      4.  Receipt of health care;

      5.  Medical history;

      6.  Genetic information;

      7.  Evidence of insurability, including conditions arising out of acts of domestic violence; and

      8.  Disability.

      Sec. 17.  “Individual carrier” means any entity subject to the provisions of this Title and the regulations adopted pursuant thereto, that contracts or offers to contract to provide for, deliver payment for, arrange for payment of, pay for, or reimburse any cost of health care services, including a sickness and accident health service corporation, and any other entity providing a plan of health insurance, health benefits or health services to individuals and their dependents in this state.

      Sec. 18.  “Individual health benefit plan” means:

      1.  A health benefit plan for individuals and their dependents, other than a converted policy or a plan for coverage of a bona fide association; and

      2.  A certificate issued to an individual that evidences coverage under a policy or contract issued to a trust or an association or to any other similar group of persons, other than a plan for coverage of a bona fide association, regardless of the situs of delivery of the policy or contract, if the individual pays the premium and is not being covered under the policy or contract pursuant to any provision for the continuation of benefits applicable under federal or state law.

      Sec. 19.  “Individual reinsuring carrier” means an individual carrier that is eligible to reinsure eligible persons in the program of reinsurance established pursuant to sections 145 to 182, inclusive, of this act.


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

ê1997 Statutes of Nevada, Page 2888 (Chapter 586, AB 521)ê

 

      Sec. 20.  “Individual risk-assuming carrier” means an individual carrier that has elected to act as a risk-assuming carrier.

      Sec. 21.  (Deleted by amendment.)

      Sec. 22.  “Plan for coverage of a bona fide association” means a health benefit plan for the members, and their dependents, of a bona fide association in this state regardless of the situs of delivery of the policy or contract, if the health benefit plan conforms with section 35 of this act.

      Sec. 23.  “Plan of operation” means the plan of operation of the program of reinsurance established pursuant to sections 145 to 182, inclusive, of this act.

      Sec. 24.  “Plan sponsor” has the meaning ascribed to it in section 3(16)(B) of the Employee Retirement Security Act of 1974, as that section existed on the effective date of this act.

      Sec. 25.  “Preexisting condition” means a condition, regardless of the cause of the condition, for which medical advice, diagnosis, care or treatment was recommended or received during the 6 months preceding the effective date of the new coverage. The term does not include genetic information in the absence of a diagnosis of the condition related to such information.

      Sec. 26.  (Deleted by amendment.)

      Sec. 27.  “Producer” means an agent or broker licensed pursuant to this Title.

      Sec. 28.  (Deleted by amendment.)

      Sec. 29.  “Program of reinsurance” means the program of reinsurance for small employers and eligible persons established pursuant to section 159 of this act.

      Sec. 30.  “Provision for a restricted network” means any provision of a health benefit plan that conditions the payment of benefits, in whole or in part, on the use of a provider of health care that has entered into a contractual arrangement with an individual carrier to provide health care services to individuals covered by the plan.

      Sec. 31.  “Standard health benefit plan” means a standard health benefit plan developed pursuant to sections 145 to 182, inclusive, of this act.

      Sec. 32.  1.  Sections 2 to 57, inclusive, of this act, apply to:

      (a) Any health benefit plan that must be made available to eligible persons; and

      (b) Any certificate issued to a trust or an association or other similar groupings of persons for coverage of eligible persons,

regardless of the location of delivery of the policy or certificate, if the eligible person pays the premium and is not otherwise covered under the policy or contract pursuant to any federal or state law relating to the continuation of benefits.

      2.  For the purposes of sections 2 to 57, inclusive, of this act, and except as otherwise provided in subsection 3, two or more individual carriers which are affiliated companies or which are eligible to file a consolidated tax return shall be deemed to be one individual carrier, and any restriction or limitation imposed by sections 2 to 57, inclusive, of this act, applies as if all health benefit plans delivered or issued for delivery to eligible persons in this state by the affiliated individual carriers were issued by one individual carrier.


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

ê1997 Statutes of Nevada, Page 2889 (Chapter 586, AB 521)ê

 

this state by the affiliated individual carriers were issued by one individual carrier.

      3.  An affiliated individual carrier that is a health maintenance organization having a certificate of authority issued pursuant to the provisions of chapter 695C of NRS may be considered a separate individual carrier for the purposes of sections 2 to 57, inclusive, of this act.

      4.  Unless otherwise authorized by the commissioner, an individual carrier shall not enter into any ceding arrangement with respect to a health benefit plan delivered or issued for delivery to any eligible person in this state if the ceding arrangement would result in the ceding individual carrier retaining less than 30 percent of the insurance obligations or risks for that health benefit plan.

      Sec. 33.  For the purposes of sections 2 to 57, inclusive, of this act:

      1.  Any plan, fund or program which would not be, but for section 2721(e) of the Public Health Service Act, as amended by Public Law 104-191, as that section existed on the effective date of this act, an employee welfare benefit plan and which is established or maintained by a partnership to the extent that the plan, fund or program provides medical care to current or former partners in the partnership or to their dependents, as defined under the terms of the plan, fund or program, directly or through insurance, reimbursement or otherwise, must be treated, subject to subsection 2, as an employee welfare benefit plan which is a group health plan.

      2.  In the case of a group health plan, a partnership shall be deemed to be the employer of each partner.

      Sec. 33.5.  A person who meets the requirements to be an eligible person as set forth in section 10 of this act, except that the person had a break in creditable coverage of more than 63 days, shall be deemed to be an eligible person and is eligible to obtain health insurance coverage pursuant to this chapter as an eligible person if the person seeks that coverage between January 1, 1998, and January 31, 1998, inclusive.

      Sec. 34.  For the purposes of providing coverage under a health benefit plan pursuant to the provisions of sections 2 to 57, inclusive, of this act, a producer may only market association memberships to eligible persons, accept applications for such membership, or sign up such members in a bona fide association if the eligible persons being marketed are actively engaged in, or directly related to, the bona fide association.

      Sec. 35.  For the purposes of sections 2 to 57, inclusive, of this act, a plan for coverage of a bona fide association must:

      1.  Conform with sections 48 to 52, inclusive, of this act concerning rates.

      2.  Provide for the renewability of coverage for members of the bona fide association, and their dependents, if such coverage meets the criteria set forth in section 38 of this act.

      3.  Provide for the availability of coverage for members of the bona fide association, and their dependents, if such coverage conforms with section 40 of this act, except that the bona fide association is not required to offer basic and standard health benefit plan coverage to its members or their dependents.


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

ê1997 Statutes of Nevada, Page 2890 (Chapter 586, AB 521)ê

 

      4.  Conform with subsection 1 of section 42 of this act, relating to preexisting conditions.

      Sec. 36.  Supplemental coverage is not a health benefit plan if:

      1.  On or before March 1 of each year, the individual carrier files a certification with the commissioner which contains:

      (a) A statement from the individual carrier certifying that the policies or certificates described are being offered and marketed as supplemental health insurance and not as a substitute for hospital or medical expense insurance or major medical expense insurance; and

      (b) A summary description of each policy or certificate described, including the average annual premium rates, or range of premium rates for cases in which premiums vary by age, sex or other factors, charged for the policies and certificates in this state.

      2.  In the case of a policy or certificate that is offered for the first time in this state on or after January 1, 1998, the individual carrier files with the commissioner the statement and summary description required by subsection 1 at least 30 days before the date on which the policy or certificate is issued or delivered in this state.

      Sec. 37.  1.  An employee welfare benefit plan for providing benefits for employees of more than one employer under which individual health insurance coverage is provided must comply with the provisions of sections 2 to 57, inclusive, of this act, and with NRS 679B.139 and the regulations adopted by the commissioner pursuant thereto.

      2.  As used in this section, the term “employee welfare benefit plan for providing benefits for employees of more than one employer” is intended to be equivalent to the term “employee welfare benefit plan which is a multiple employer welfare arrangement” as used in federal statutes and regulations.

      Sec. 38.  1.  Except as otherwise provided in this section, coverage under an individual health benefit plan must be renewed by the individual carrier that issued the plan, at the option of the individual, unless:

      (a) The individual has failed to pay premiums or contributions in accordance with the terms of the health benefit plan or the individual carrier has not received timely premium payments.

      (b) The individual has performed an act or a practice that constitutes fraud or has made an intentional misrepresentation of material fact under the terms of the coverage.

      (c) The individual carrier decides to discontinue offering and renewing all health benefit plans delivered or issued for delivery in this state. If the individual carrier decides to discontinue offering and renewing such plans, the individual carrier shall:

             (1) Provide notice of its intention to the commissioner and the chief regulatory officer for insurance in each state in which the individual carrier is licensed to transact insurance at least 60 days before the date on which notice of cancellation or nonrenewal is delivered or mailed to the persons covered by the insurance to be discontinued pursuant to subparagraph (2).

             (2) Provide notice of its intention to all persons covered by the discontinued insurance and to the commissioner and the chief regulatory officer for insurance in each state in which such a person is known to reside.


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

ê1997 Statutes of Nevada, Page 2891 (Chapter 586, AB 521)ê

 

The notice must be made at least 180 days before the nonrenewal of any health benefit plan by the individual carrier.

             (3) Discontinue all health insurance issued or delivered for issuance for individuals in this state and not renew coverage under any health benefit plan issued to such individuals.

      (d)The commissioner finds that the continuation of the coverage in this state by the individual carrier would not be in the best interests of the policyholders or certificate holders of the individual carrier or would impair the ability of the individual carrier to meet its contractual obligations. If the commissioner makes such a finding, the commissioner shall assist the persons covered by the discontinued insurance in this state in finding replacement coverage.

      2.  An individual carrier may discontinue the issuance and renewal of a form of a product of a health benefit plan if the commissioner finds that the form of the product offered by the individual carrier is obsolete and is being replaced with comparable coverage. A form of a product of a health benefit plan may be discontinued by the individual carrier pursuant to this subsection only if:

      (a) The individual carrier notifies the commissioner and the chief regulatory officer for insurance in each state in which it is licensed of its decision pursuant to this subsection to discontinue the issuance and renewal of the form of the product at least 60 days before the individual carrier notifies the persons covered by the discontinued insurance pursuant to paragraph (b).

      (b) The individual carrier notifies each person covered by the discontinued insurance, the commissioner and the chief regulatory officer for insurance in each state in which a person covered by the discontinued insurance is known to reside of the decision of the individual carrier to discontinue offering the form of the product. The notice must be made to persons covered by the discontinued insurance at least 180 days before the date on which the individual carrier will discontinue offering the form of the product.

      (c) The individual carrier offers to each person covered by the discontinued insurance the option to purchase any other health benefit plan currently offered by the individual carrier to individuals in this state.

      (d) In exercising the option to discontinue the form of the product and in offering the option to purchase other coverage pursuant to paragraph (c), the individual carrier acts uniformly without regard to the claim experience of the persons covered by the discontinued insurance or any health status-related factor relating to those persons or beneficiaries covered by the discontinued form of the product or any persons or beneficiaries who may become eligible for such coverage.

      3.  An individual carrier may discontinue the issuance and renewal of a health benefit plan that is made available to individuals pursuant to this chapter only through a bona fide association if:

      (a) The membership of the individual in the association was the basis for the provision of coverage;

      (b) The membership of the individual in the association ceases; and


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

ê1997 Statutes of Nevada, Page 2892 (Chapter 586, AB 521)ê

 

      (c) The coverage is terminated pursuant to this subsection uniformly without regard to any health status-related factor relating to the covered individual.

      4.  An individual carrier that elects not to renew a health benefit plan pursuant to paragraph (c) of subsection 1 shall not write new business for individuals pursuant to this chapter for 5 years after the date on which notice is provided to the commissioner pursuant to subparagraph (2) of paragraph (c) of subsection 1.

      5.  If an individual carrier does business in only one established geographic service area of this state, the provisions of this section apply only to the operations of the individual carrier in that service area.

      Sec. 39.  1.  An individual carrier that offers coverage through a network plan is not required pursuant to section 38 of this act to offer coverage to or accept an application from an eligible person if the eligible person does not reside or work in the established geographic service area or in a geographic area for which the individual carrier is authorized to transact insurance, provided that the coverage is refused or terminated uniformly without regard to any health status-related factor of any eligible person.

      2.  As used in this section, “network plan” means a health benefit plan offered by a health carrier under which the financing and delivery of medical care is provided, in whole or in part, through a defined set of providers under contract with the carrier. The term does not include an arrangement for the financing of premiums.

      Sec. 40.  1.  As a condition of transacting insurance in this state with individuals, an individual carrier must actively market to eligible persons each health benefit plan that is actively marketed in this state by the individual carrier to any individual in this state. The health insurance plans marketed pursuant to this section by an individual carrier must include, without limitation, a basic health benefit plan and a standard health benefit plan.

      2.  An individual carrier shall issue to an eligible person any basic or standard individual health benefit plan that it markets in accordance with subsection 1 if the eligible person applies for the plan and agrees to make the required premium payments and satisfy the other reasonable provisions of the health benefit plan that are not inconsistent with sections 2 to 57, inclusive, of this act.

      Sec. 41.  1.  Each individual carrier shall file with the commissioner within 90 days after the date on which a basic health benefit plan and a standard health benefit plan are approved pursuant to section 163 of this act, or for a new individual carrier within 90 days after the date it enters the individual market in this state, in a format and manner prescribed by the commissioner, the basic health benefit plans and the standard health benefit plans to be offered by the individual carrier. A health benefit plan filed pursuant to this section may not be offered by an individual carrier until the earlier of:

      (a) The date of approval by the commissioner; or


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

ê1997 Statutes of Nevada, Page 2893 (Chapter 586, AB 521)ê

 

      (b) Thirty days after the date on which the plans are filed, unless the commissioner disapproves the use of the plans before the 30-day period expires.

      2.  The commissioner may, at any time, after providing notice and an opportunity for a hearing, disapprove the continued use of a basic or standard health benefit plan by the individual carrier on the ground that the plan does not meet the requirements of sections 2 to 57, inclusive, and 145 to 182, inclusive, of this act.

      Sec. 42.  An individual carrier shall not:

      1.  Impose on an eligible person any exclusion because of a preexisting condition.

      2.  Modify a health benefit plan, with respect to an eligible person, through riders, endorsements or otherwise, to restrict or exclude services otherwise covered by the plan.

      Sec. 43.  An individual carrier is not required pursuant to section 40 of this act to offer coverage to or accept an application for coverage:

      1.  From an eligible person if he does not reside in the established geographic service area of the individual carrier.

      2.  Within an area where the individual carrier reasonably anticipates, and demonstrates to the satisfaction of the commissioner, that the individual carrier does not have the capacity within its established geographic service area to deliver adequate service to additional eligible persons because of its obligations to existing policyholders. If an individual carrier is authorized by the commissioner not to offer coverage pursuant to this subsection, the individual carrier shall not thereafter offer coverage in the applicable area to additional eligible persons until the individual carrier demonstrates to the satisfaction of the commissioner that it has regained the capacity to deliver adequate service to additional eligible persons in that service area.

      Sec. 44.  1.  An individual carrier is not required to provide coverage to eligible persons pursuant to section 40 of this act:

      (a) During any period in which the commissioner determines that requiring the individual carrier to provide such coverage would place the individual carrier in a financially impaired condition.

      (b) If the individual carrier elects not to offer any new coverage to any eligible persons in this state. An individual carrier that elects not to offer new coverage in accordance with this paragraph may maintain its existing policies issued to eligible persons in this state, subject to the requirements of section 38 of this act.

      2.  An individual carrier that elects not to offer new coverage pursuant to paragraph (b) of subsection 1 shall notify the commissioner forthwith of that election and shall not thereafter write any new business to individuals in this state for 5 years after the date of the notification.

      Sec. 45.  Nothing in sections 40 to 44, inclusive, of this act requires a health carrier that offers a health benefit plan only in connection with a group health plan or through a bona fide association, or both, to offer such health benefit insurance coverage to individuals.

      Sec. 46.  1.  Within 30 days after the date on which a plan of operation is approved by the commissioner pursuant to section 163 of this act, or for a new carrier within 30 days after the date on which it enters the individual market in this state, an individual carrier shall elect to operate as either an individual risk-assuming carrier or an individual reinsuring carrier and shall notify the commissioner of its election.


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

ê1997 Statutes of Nevada, Page 2894 (Chapter 586, AB 521)ê

 

market in this state, an individual carrier shall elect to operate as either an individual risk-assuming carrier or an individual reinsuring carrier and shall notify the commissioner of its election.

      2.  The initial election of an individual carrier to act as an individual risk-assuming or reinsuring carrier is effective on the individual carrier for 2 years after the date on which it notifies the commissioner pursuant to subsection 1. After the initial 2-year period, such an election is effective for 5 years. The commissioner may allow an individual carrier to modify its election at any time for good cause shown. The commissioner may waive or modify the period during which the election of a carrier to operate as an individual risk-assuming or reinsuring carrier is effective.

      3.  An individual carrier may apply to the commissioner, in a manner prescribed by the commissioner by regulation, to change its status as an individual risk-assuming or reinsuring carrier.

      4.  An individual reinsuring carrier that elects or is subsequently authorized by the commissioner to operate as a risk-assuming carrier:

      (a) Shall not continue to reinsure any individual health benefit plan with the program of reinsurance.

      (b) Shall pay a prorated assessment based upon business issued as an individual reinsuring carrier for any portion of the year that the business was reinsured.

      Sec. 47.  1.  The commissioner may suspend the election of an individual carrier to act as an individual risk-assuming carrier, if the commissioner finds that:

      (a) The financial condition of the individual carrier no longer supports the assumption of risk from issuing coverage to eligible persons in compliance with sections 40 to 44, inclusive, of this act without the protection afforded by the program of reinsurance;

      (b) The individual carrier has failed to market its health benefit plans fairly to all eligible persons in this state or in its established geographic service area, as applicable; or

      (c) The individual carrier has failed to provide coverage to eligible persons as required pursuant to sections 40 to 44, inclusive, of this act.

      2.  An individual carrier that elects to become an individual risk-assuming carrier is subject to:

      (a) The provisions of sections 40 to 44, inclusive, of this act, relating to the availability of coverage; and

      (b) The provisions of sections 48 to 52, inclusive, of this act, relating to premium rates.

      Sec. 48.  1.  An individual carrier shall develop its rates for its individual health benefit plans pursuant to sections 2 to 57, inclusive, of this act based on rating characteristics. After any adjustments for rating characteristics and design of benefits, the rate for any block of business for an individual health benefit plan written on or after the effective date of this act must not exceed the rate for any other block of business for an individual health benefit plan offered by the individual carrier by more than 100 percent. The rate for a block of business is equal to the average rate charged to all the insureds in the block of business. In determining whether the rate of a block of business complies with the provisions of this subsection, any differences in rating factors between blocks of business must be considered.


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

ê1997 Statutes of Nevada, Page 2895 (Chapter 586, AB 521)ê

 

subsection, any differences in rating factors between blocks of business must be considered.

      2.  In determining the rating factors to establish premium rates for a health benefit plan, an individual carrier shall not use characteristics other than age, sex, occupation, geographic area, composition of the family of the individual and health status.

      3.  If an individual carrier uses health status as a rating factor in establishing premium rates, the highest factor associated with any classification for health status may not exceed the lowest factor by more than 75 percent.

      4.  For the purposes of this section, rating characteristics must not include durational or tier rating, or adverse changes in health status or claim experience after the policy is issued.

      5.  As used in this section, “characteristics” means demographic or other information concerning individuals that is considered by a carrier in the determination of premium rates for individuals.

      Sec. 49.  1.  The amount of change in the rate of a single block of business of an individual carrier in any 12-month period because of claims experience or health status-related factors of that block of business, after adjustment for allowed rating characteristics and design of benefits, must not exceed the amount of any similar change in the rate of any other block of business of that individual carrier during the same period by more than 15 percent.

      2.  For the purposes of sections 2 to 57, inclusive, of this act, a health benefit plan that contains a provision for a restricted network must not be considered to be a similar design of benefits when compared to a health benefit plan that does not contain such a provision if the restriction of benefits to the network providers results in substantial differences in the cost of claims.

      3.  An individual carrier shall not transfer an individual or his dependent covered by an individual health benefit plan issued by the individual carrier involuntarily into or out of a block of business.

      4.  If an individual carrier adjusts its premiums for a block of business to a level that is higher than permitted by requirements relating to the ratio of losses, as set forth in this Title and the regulations adopted pursuant thereto, to comply with this section and section 48 of this act, the individual carrier shall make such adjustments on its entire individual health benefit plan business as needed to meet those requirements.

      Sec. 50.  The commissioner may adopt regulations to carry out the provisions of sections 48 to 52, inclusive, of this act and to ensure that the practices used by individual carriers relating to the establishment of rates are consistent with the purposes of sections 2 to 57, inclusive, of this act, including, but not limited to, determining the manner in which geographic areas are designated by all individual carriers.

      Sec. 51.  1.  As part of its solicitation and sales materials for an individual health benefit plan, an individual carrier shall disclose, to the extent reasonable:

      (a) The extent to which premium rates for an individual and his dependent are established or adjusted based upon rating characteristics;


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

ê1997 Statutes of Nevada, Page 2896 (Chapter 586, AB 521)ê

 

      (b) The right of the individual carrier to change premium rates and the factors, other than claims experience, that may affect changes in premium rates;

      (c) Any provisions in the individual health benefit plan relating to the renewability of the plan; and

      (d) Any provisions in the individual health benefit plan relating to an exclusion for a preexisting condition.

      2.  For the purposes of this section, an individual carrier shall maintain at its principal place of business a complete and detailed description of its rating practices and underwriting practices, including information and documentation that demonstrate that its rating methods and practices are based upon commonly accepted actuarial assumptions and are in accordance with sound actuarial principles.

      3.  On or before March 1 of each year, an individual carrier shall file with the commissioner an actuarial certification that the individual carrier is in compliance with sections 48 to 52, inclusive, of this act and that the rating methods of the individual carrier are actuarially sound. The certification must be in such a form and must contain such information as specified by the commissioner. A copy of the certification must be retained by the individual carrier at its principal place of business.

      4.  As used in this section, “actuarial certification” means a written statement signed by a member of the American Academy of Actuaries or any other person acceptable to the commissioner that an individual carrier is in compliance with the provisions of sections 48 to 52, inclusive, of this act, based upon an examination conducted by the person which included a review of the appropriate records and the actuarial assumptions and methods used by the individual carrier in establishing premium rates for applicable health benefit plans.

      Sec. 52.  An individual carrier shall make the information and documents described in sections 48 to 52, inclusive, of this act available to the commissioner upon request. Except in cases of violations of the provisions of this chapter, the information, other than the premium rates charged by the individual carrier, is proprietary, constitutes a trade secret and is not subject to disclosure by the commissioner to persons outside of the division except as agreed to by the individual carrier or as ordered by a court of competent jurisdiction.

      Sec. 53.  The commissioner shall adopt regulations as necessary to carry out the provisions of sections 2 to 57, inclusive, of this act.

      Sec. 54.  1.  Except as otherwise provided in this section, an individual carrier or a producer shall not, directly or indirectly:

      (a) Encourage or direct an eligible person to refrain from filing an application for coverage with an individual carrier because of the health status, claims experience, industry, occupation or geographic location of the eligible person.

      (b) Encourage or direct an eligible person to seek coverage from another carrier because of the health status, claims experience, industry, occupation or geographic location of the eligible person.

      2.  The provisions of subsection 1 do not apply to information provided to an eligible person by an individual carrier or a producer relating to the established geographic service area or a provision for a restricted network of the individual carrier.


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

ê1997 Statutes of Nevada, Page 2897 (Chapter 586, AB 521)ê

 

established geographic service area or a provision for a restricted network of the individual carrier.

      3.  Except as otherwise provided in this subsection, an individual carrier shall not, directly or indirectly, enter into any contract, agreement or arrangement with a producer if the contract, agreement or arrangement provides for or results in a variation to the compensation paid to a producer for the sale of a health benefit plan because of the health status, claims experience, industry, occupation or geographic location of the individual at the time that the health benefit plan is issued to or renewed by the individual. The provisions of this subsection do not apply to any arrangement for compensation that provides payment to a producer on the basis of a percentage of premiums, except that the percentage may not vary because of the health status, claims experience, industry, occupation or geographic area of the individual.

      4.  An individual carrier shall not terminate, fail to renew, or limit its contract or agreement of representation with a producer for any reason related to the health status, claims experience, industry, occupation or geographic location of an individual at the time that the health benefit plan is issued to or renewed by the individual placed by the producer with the individual carrier.

      5.  A denial by an individual carrier of an application for coverage from an eligible person must be in writing and must state the reason for the denial.

      6.  The commissioner may adopt regulations that set forth additional standards to provide for the fair marketing and broad availability of health benefit plans to eligible persons in this state.

      7.  A violation of any provision of this section by an individual carrier may constitute an unfair trade practice for the purposes of chapter 686A of NRS.

      8.  The provisions of this section apply to a third-party administrator if the third-party administrator enters into a contract, agreement or other arrangement with an individual carrier to provide administrative, marketing or other services related to the offering of a health benefit plan to eligible persons in this state.

      9.  Nothing in this section interferes with the right and responsibility of a broker to advise and represent the best interests of an eligible person who is seeking health insurance coverage from an individual carrier.

      Sec. 55.  The commissioner may adopt regulations to require an individual carrier, as a condition of transacting business with individuals in this state after the effective date of this act, to reissue a health benefit plan to any individual whose health benefit plan has been terminated or not renewed by the individual carrier after July 1, 1997. The commissioner may prescribe such terms for the reissue of coverage as he finds are reasonable and necessary to provide continuity of coverage to individuals.

      Sec. 56.  1.  To determine the period of creditable coverage of a person, a health insurance issuer offering individual health insurance coverage shall provide written certification of coverage on a form prescribed by the commissioner to the person that certifies:


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

ê1997 Statutes of Nevada, Page 2898 (Chapter 586, AB 521)ê

 

      (a) The period of creditable coverage of the person under the individual health insurance coverage; and

      (b) The date that a substantially completed application was received by the health insurance issuer from the person for individual health insurance coverage.

      2.  The certification of coverage must be provided to the insured:

      (a) At the time that the insured ceases to be covered under the individual health insurance coverage or otherwise becomes covered under any provision of the Consolidated Omnibus Budget Reconciliation Act of 1985, as that act existed on the effective date of this act, relating to the continuation of coverage;

      (b) If the insured becomes covered under such a provision, at the time that the insured ceases to be covered by that provision; and

      (c) Upon the request of the insured, if the request is made not later than 24 months after the date on which the insured ceased to be covered as described in paragraphs (a) and (b).

      Sec. 56.5.  1.  Except as otherwise provided in this subsection, an individual health benefit plan issued pursuant to this chapter that includes coverage for maternity care and pediatric care for newborn infants may not restrict benefits for any length of stay in a hospital in connection with childbirth for a mother or newborn infant covered by the plan to:

      (a) Less than 48 hours after a normal vaginal delivery; and

      (b) Less than 96 hours after a cesarean section.

If a different length of stay is provided in the guidelines established by the American College of Obstetricians and Gynecologists, or its successor organization, and the American Academy of Pediatrics, or its successor organization, the individual health benefit plan may follow such guidelines in lieu of following the length of stay set forth above. The provisions of this subsection do not apply to any individual health benefit plan in any case in which the decision to discharge the mother or newborn infant before the expiration of the minimum length of stay set forth in this subsection is made by the attending physician of the mother or newborn infant.

      2.  Nothing in this section requires a mother to:

      (a) Deliver her baby in a hospital; or

      (b) Stay in a hospital for a fixed period following the birth of her child.

      3.  An individual health benefit plan that offers coverage for maternity care and pediatric care of newborn infants may not:

      (a) Deny a mother or her newborn infant coverage or continued coverage under the terms of the plan or coverage if the sole purpose of the denial of coverage or continued coverage is to avoid the requirements of this section;

      (b) Provide monetary payments or rebates to a mother to encourage her to accept less than the minimum protection available pursuant to this section;

      (c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because he provided care to a mother or newborn infant in accordance with the provisions of this section;


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

ê1997 Statutes of Nevada, Page 2899 (Chapter 586, AB 521)ê

 

      (d) Provide incentives of any kind to an attending physician to induce him to provide care to a mother or newborn infant in a manner that is inconsistent with the provisions of this section; or

      (e) Except as otherwise provided in subsection 4, restrict benefits for any portion of a hospital stay required pursuant to the provisions of this section in a manner that is less favorable than the benefits provided for any preceding portion of that stay.

      4.  Nothing in this section:

      (a) Prohibits an individual health benefit plan from imposing a deductible, coinsurance or other mechanism for sharing costs relating to benefits for hospital stays in connection with childbirth for a mother or newborn child covered by the plan, except that such coinsurance or other mechanism for sharing costs for any portion of a hospital stay required by this section may not be greater than the coinsurance or other mechanism for any preceding portion of that stay.

      (b) Prohibits an arrangement for payment between an individual health benefit plan and a provider of health care that uses capitation or other financial incentives, if the arrangement is designed to provide services efficiently and consistently in the best interest of the mother and her newborn infant.

      (c) Prevents an individual health benefit plan from negotiating with a provider of health care concerning the level and type of reimbursement to be provided in accordance with this section.

      Sec. 57.  On or before July 1 of each year, a trustee of a medical savings account established and maintained in accordance with 26 U.S.C. § 220 shall report to the commissioner the number of medical savings accounts administered by the trustee during the previous calendar year.

      Sec. 58.  NRS 689A.020 is hereby amended to read as follows:

      689A.020  Nothing in this chapter applies to or affects:

      1.  Any policy of liability or [workmen’s] workers’ compensation insurance with or without supplementary expense coverage therein.

      2.  Any group or blanket policy . [, except as to NRS 689A.380 (definitions of terms).]

      3.  Life insurance, endowment or annuity contracts, or contracts supplemental thereto which contain only such provisions relating to health insurance as to:

      (a) Provide additional benefits in case of death or dismemberment or loss of sight by accident or accidental means; or

      (b) Operate to safeguard such contracts against lapse, or to give a special surrender value or special benefit or an annuity if the insured or annuitant becomes totally and permanently disabled, as defined by the contract or supplemental contract.

      4.  Reinsurance [.] , except as otherwise provided in sections 2 to 57, inclusive, and 145 to 182, inclusive, of this act, relating to the program of reinsurance.


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

ê1997 Statutes of Nevada, Page 2900 (Chapter 586, AB 521)ê

 

      Sec. 59.  Chapter 689B of NRS is hereby amended by adding thereto the provisions set forth as sections 60 to 88, inclusive, of this act.

      Sec. 60.  As used in sections 60 to 88, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 61 to 74, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 61.  “Affiliation period” means a period not to exceed 60 days for new enrollees and 90 days for late enrollees during which no premiums may be collected from and coverage issued would not become effective for an employee or his dependent, if the affiliation period is applied uniformly and without regard to any health status-related factors.

      Sec. 62.  “Carrier” means any person who provides health insurance in this state, including a fraternal benefit society, a health maintenance organization, a nonprofit hospital and health service corporation, a health insurance company and any other person providing a plan of health insurance or health benefits subject to this Title.

      Sec. 63.  “Contribution” means the minimum employer contribution toward the premium for enrollment of participants and beneficiaries in a health benefit plan.

      Sec. 64.  “Creditable coverage” means health benefits or coverage provided to a person pursuant to:

      1.  A group health plan;

      2.  A health benefit plan;

      3.  Part A or Part B of Title XVIII of the Social Security Act, also known as Medicare;

      4.  Title XIX of the Social Security Act, also known as Medicaid, other than coverage consisting solely of benefits under section 1928 of that Title;

      5.  Chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of Uniformed Services (CHAMPUS));

      6.  A medical care program of the Indian Health Service or of a tribal organization;

      7.  A state health benefit risk pool;

      8.  A health plan offered pursuant to chapter 89 of Title 5, United States Code (Federal Employees Health Benefits Program (FEHBP));

      9.  A public health plan as defined in federal regulations authorized by the Public Health Service Act, section 2701(c)(1)(I), as amended by Public Law 104-191; or

      10.  A health benefit plan under section 5(e) of the Peace Corps Act (22 U.S.C. § 2504(e)).

      Sec. 65.  1.  “Group health plan” means an employee welfare benefit plan, as defined in section 3(1) of the Employee Retirement Income Security Act of 1974, as that section existed on the effective date of this act, to the extent that the plan provides medical care to employees or their dependents as defined under the terms of the plan directly, or through insurance, reimbursement or otherwise.

      2.  The term does not include:

      (a) Coverage that is only for accident or disability income insurance, or any combination thereof;

      (b) Coverage issued as a supplement to liability insurance;


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

ê1997 Statutes of Nevada, Page 2901 (Chapter 586, AB 521)ê

 

      (c) Liability insurance, including general liability insurance and automobile liability insurance;

      (d) Workers’ compensation or similar insurance;

      (e) Coverage for medical payments under a policy of automobile insurance;

      (f) Credit insurance;

      (g) Coverage for on-site medical clinics; and

      (h) Other similar insurance coverage specified in federal regulations adopted pursuant to Public Law 104-191 under which benefits for medical care are secondary or incidental to other insurance benefits.

      3.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan:

      (a) Limited-scope dental or vision benefits;

      (b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and

      (c) Such other similar benefits as are specified in any federal regulations adopted pursuant to Public Law 104-191.

      4.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and such benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor:

      (a) Coverage that is only for a specified disease or illness; and

      (b) Hospital indemnity or other fixed indemnity insurance.

      5.  The term does not include any of the following, if offered as a separate policy, certificate or contract of insurance:

      (a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, as that section existed on the effective date of this act;

      (b) Coverage supplemental to the coverage provided pursuant to chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of Uniformed Services (CHAMPUS)); and

      (c) Similar supplemental coverage provided under a group health plan.

      Sec. 66.  “Group participation” means the minimum number of participants or beneficiaries that must be enrolled in a health benefit plan in relation to a specified percentage or number of eligible persons or employees of the employer.

      Sec. 67.  1.  “Health benefit plan” means a policy, contract, certificate or agreement offered by a carrier to provide for, arrange for payment of, pay for or reimburse any of the costs of health care services. Except as otherwise provided in this section, the term includes short-term and catastrophic health insurance policies, and a policy that pays on a cost-incurred basis.

      2.  The term does not include:

      (a) Coverage that is only for accident or disability income insurance, or any combination thereof;


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

ê1997 Statutes of Nevada, Page 2902 (Chapter 586, AB 521)ê

 

      (b) Coverage issued as a supplement to liability insurance;

      (c) Liability insurance, including general liability insurance and automobile liability insurance;

      (d) Workers’ compensation or similar insurance;

      (e) Coverage for medical payments under a policy of automobile insurance;

      (f) Credit insurance;

      (g) Coverage for on-site medical clinics; and

      (h) Other similar insurance coverage specified in federal regulations issued pursuant to Public Law 104-191 under which benefits for medical care are secondary or incidental to other insurance benefits.

      3.  If the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan, the term does not include the following benefits:

      (a) Limited-scope dental or vision benefits;

      (b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and

      (c) Such other similar benefits as are specified in any federal regulations adopted pursuant to Public Law 104-191.

      4.  For the purposes of sections 60 to 88, inclusive, of this act, if the benefits are provided under a separate policy, certificate or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and such benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor, the term does not include:

      (a) Coverage that is only for a specified disease or illness; and

      (b) Hospital indemnity or other fixed indemnity insurance.

      5.  For the purposes of sections 60 to 88, inclusive, of this act, if offered as a separate policy, certificate or contract of insurance, the term does not include:

      (a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, as that section existed on the effective date of this act;

      (b) Coverage supplemental to the coverage provided pursuant to chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of Uniformed Services (CHAMPUS)); and

      (c) Similar supplemental coverage provided under a group health plan.

      Sec. 68.  “Health status-related factor” means, with regard to an insured or a person to be insured:

      1.  Health status;

      2.  Any medical conditions, including physical or mental illness, or both;

      3.  Claims experience;

      4.  Receipt of health care;

      5.  Medical history;

      6.  Genetic information;

      7.  Evidence of insurability, including conditions arising out of acts of domestic violence; and

      8.  Disability.


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

ê1997 Statutes of Nevada, Page 2903 (Chapter 586, AB 521)ê

 

      Sec. 69.  (Deleted by amendment.)

      Sec. 70.  “Open enrollment” means the period designated for enrollment in a health benefit plan.

      Sec. 71.  “Plan sponsor” has the meaning ascribed to it in section 3(16)(B) of the Employee Retirement Income Security Act of 1974, as that section existed on the effective date of this act.

      Sec. 72.  “Preexisting condition” means a condition, regardless of the cause of the condition, for which medical advice, diagnosis, care or treatment was recommended or received during the 6 months immediately preceding the effective date of the new coverage. The term does not include genetic information in the absence of a diagnosis of the condition related to such information.

      Sec. 73.  (Deleted by amendment.)

      Sec. 74.  “Waiting period” means the period established by a plan of health insurance that must pass before a person who is an eligible participant or beneficiary in a plan is covered for benefits under the terms of the plan.

      Sec. 75.  For the purposes of sections 60 to 88, inclusive, of this act:

      1.  Any plan, fund or program which would not be, but for section 2721(e) of the Public Health Service Act, as amended by Public Law 104-191, as that section existed on the effective date of this act, an employee welfare benefit plan and which is established or maintained by a partnership to the extent that the plan, fund or program provides medical care, including items and services paid for as medical care, to current or former partners in the partnership, or to their dependents, as defined under the terms of the plan, fund or program, directly or through insurance, reimbursement, or otherwise, must be treated, subject to the provisions of subsection 2, as an employee welfare benefit plan that is a group health plan.

      2.  In the case of a group health plan, a partnership shall be deemed to be the employer of each partner.

      Sec. 76.  1.  In determining the applicable creditable coverage of a person for the purposes of sections 60 to 88, inclusive, of this act, a period of creditable coverage must not be included if, after the expiration of that period but before the enrollment date, there was a 63-day period during all of which the person was not covered under any creditable coverage. To establish a period of creditable coverage, a person must present any certificates of coverage provided to him in accordance with section 77 of this act and such other evidence of coverage as required by regulations adopted by the commissioner. For the purposes of this subsection, any waiting period for coverage or an affiliation period must not be considered in determining the applicable period of creditable coverage.

      2.  In determining the period of creditable coverage of a person for the purposes of section 78 of this act, a carrier shall include each applicable period of creditable coverage without regard to the specific benefits covered during that period, except that the carrier may elect to include applicable periods of creditable coverage based on coverage of specific benefits as specified in the regulations of the United States Department of Health and Human Services, if such an election is made on a uniform basis for all participants and beneficiaries of the health benefit plan or coverage.


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

ê1997 Statutes of Nevada, Page 2904 (Chapter 586, AB 521)ê

 

participants and beneficiaries of the health benefit plan or coverage. Pursuant to such an election, the carrier shall include each applicable period of creditable coverage with respect to any class or category of benefits if any level of benefits is covered within that class or category, as specified by those regulations.

      3.  Regardless of whether coverage is actually provided, if a carrier elects in accordance with subsection 2 to determine creditable coverage based on specified benefits, a statement that such an election has been made and a description of the effect of the election must be:

      (a) Included prominently in any disclosure statement concerning the health benefit plan; and

      (b) Provided to each person at the time of enrollment in the health benefit plan.

      Sec. 77.  1.  For the purpose of determining the period of creditable coverage of a person accumulated under a health benefit plan or group health insurance, the insurer shall provide written certification on a form prescribed by the commissioner of coverage to the person which certifies the length of:

      (a) The period of creditable coverage that the person accumulated under the plan and any coverage under any provision of the Consolidated Omnibus Budget Reconciliation Act of 1985, as that act existed on the effective date of this act, relating to the continuation of coverage; and

      (b) Any waiting and affiliation period imposed on the person pursuant to that coverage.

      2.  The certification of coverage must be provided to the person who was insured:

      (a) At the time that he ceases to be covered under the plan, if he does not otherwise become covered under any provision of the Consolidated Omnibus Budget Reconciliation Act of 1985, as that act existed on the effective date of this act, relating to the continuation of coverage;

      (b) If he becomes covered under such a provision, at the time that he ceases to be covered by that provision; and

      (c) Upon request, if the request is made not later than 24 months after the date on which he ceased to be covered as described in paragraphs (a) and (b).

      Sec. 78.  1.  Except as otherwise provided in this section, a carrier that issues a group health plan or coverage under group health insurance shall not deny, exclude or limit a benefit for a preexisting condition for:

      (a) More than 12 months after the effective date of coverage if the employee enrolls through open enrollment or after the first day of the waiting period for such enrollment, whichever is earlier; or

      (b) More than 18 months after the effective date of coverage for a late enrollee.

A carrier may not define a preexisting condition more restrictively than that term is defined in section 72 of this act.

      2.  The period of any exclusion for a preexisting condition imposed by a group health plan or coverage under group health insurance on a person to be insured in accordance with the provisions of this chapter must be reduced by the aggregate period of creditable coverage of that person, if the creditable coverage was continuous to a date not more than 63 days before the effective date of the coverage.


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

ê1997 Statutes of Nevada, Page 2905 (Chapter 586, AB 521)ê

 

creditable coverage was continuous to a date not more than 63 days before the effective date of the coverage. The period of continuous coverage must not include:

      (a) Any waiting period for the effective date of the new coverage applied by the employer or the carrier; or

      (b) Any affiliation period not to exceed 60 days for a new enrollee and 63 days for a late enrollee required before becoming eligible to enroll in the group health plan.

      3.  A health maintenance organization authorized to transact insurance pursuant to chapter 695C of NRS that does not restrict coverage for a preexisting condition may require an affiliation period before coverage becomes effective under a plan of insurance if the affiliation period applies uniformly to all employees and without regard to any health status-related factors. During the affiliation period, the carrier shall not collect any premiums for coverage of the employee.

      4.  An insurer that restricts coverage for preexisting conditions shall not impose an affiliation period.

      5.  A carrier shall not impose any exclusion for a preexisting condition:

      (a) Relating to pregnancy.

      (b) In the case of a person who, as of the last day of the 30-day period beginning on the date of his birth, is covered under creditable coverage.

      (c) In the case of a child who is adopted or placed for adoption before attaining the age of 18 years and who, as of the last day of the 30-day period beginning on the date of adoption or placement for adoption, whichever is earlier, is covered under creditable coverage. The provisions of this paragraph do not apply to coverage before the date of adoption or placement for adoption.

      (d) In the case of a condition for which medical advice, diagnosis, care or treatment was recommended or received for the first time while the covered person held creditable coverage, and the medical advice, diagnosis, care or treatment was a benefit under the plan, if the creditable coverage was continuous to a date not more than 63 days before the effective date of the new coverage.

The provisions of paragraphs (b) and (c) do not apply to a person after the end of the first 63-day period during all of which the person was not covered under any creditable coverage.

      6.  As used in this section, “late enrollee” means an eligible employee, or his dependent, who requests enrollment in a group health plan following the initial period of enrollment, if that initial period of enrollment is at least 30 days, during which the person is entitled to enroll under the terms of the health benefit plan. The term does not include an eligible employee or his dependent if:

      (a) The employee or dependent:

             (1) Was covered under creditable coverage at the time of the initial enrollment;

             (2) Lost coverage under creditable coverage as a result of cessation of contributions by his employer, termination of employment or eligibility, reduction in the number of hours of employment, involuntary termination of creditable coverage, or death of, or divorce or legal separation from, a covered spouse; and

 


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

ê1997 Statutes of Nevada, Page 2906 (Chapter 586, AB 521)ê

 

creditable coverage, or death of, or divorce or legal separation from, a covered spouse; and

             (3) Requests enrollment not later than 30 days after the date on which his creditable coverage was terminated or on which the change in conditions that gave rise to the termination of the coverage occurred.

      (b) The employee enrolls during the open enrollment period, as provided in the contract or as otherwise specifically provided by specific statute.

      (c) The employer of the employee offers multiple health benefit plans and the employee elected a different plan during an open enrollment period.

      (d) A court has ordered coverage to be provided to the spouse or a minor or dependent child of an employee under a health benefit plan of the employee and a request for enrollment is made within 30 days after the issuance of the court order.

      (e) The employee changes status from not being an eligible employee to being an eligible employee and requests enrollment, subject to any waiting period, within 30 days after the change in status.

      (f) The person has continued coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 and such coverage has been exhausted.

      Sec. 79.  A carrier may modify the health insurance coverage for a product offered pursuant to a group health plan by the carrier at the time of renewal of such coverage, if the modification is consistent with the provisions of this chapter.

      Sec. 80.  1.  Except as otherwise provided in this subsection, a group health plan or coverage offered under group health insurance issued pursuant to this chapter that includes coverage for maternity care and pediatric care for newborn infants may not restrict benefits for any length of stay in a hospital in connection with childbirth for a mother or newborn infant covered by the plan or coverage to:

      (a) Less than 48 hours after a normal vaginal delivery; and

      (b) Less than 96 hours after a cesarean section.

If a different length of stay is provided in the guidelines established by the American College of Obstetricians and Gynecologists, or its successor organization, and the American Academy of Pediatrics, or its successor organization, the group health plan or health insurance coverage may follow such guidelines in lieu of following the length of stay set forth above. The provisions of this subsection do not apply to any group health plan or health insurance coverage in any case in which the decision to discharge the mother or newborn infant before the expiration of the minimum length of stay set forth in this subsection is made by the attending physician of the mother or newborn infant.

      2.  Nothing in this section requires a mother to:

      (a) Deliver her baby in a hospital; or

      (b) Stay in a hospital for a fixed period following the birth of her child.

      3.  A group health plan or coverage under group health insurance that offers coverage for maternity care and pediatric care of newborn infants may not:


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

ê1997 Statutes of Nevada, Page 2907 (Chapter 586, AB 521)ê

 

      (a) Deny a mother or her newborn infant coverage or continued coverage under the terms of the plan or coverage if the sole purpose of the denial of coverage or continued coverage is to avoid the requirements of this section;

      (b) Provide monetary payments or rebates to a mother to encourage her to accept less than the minimum protection available pursuant to this section;

      (c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because he provided care to a mother or newborn infant in accordance with the provisions of this section;

      (d) Provide incentives of any kind to an attending physician to induce him to provide care to a mother or newborn infant in a manner that is inconsistent with the provisions of this section; or

      (e) Except as otherwise provided in subsection 4, restrict benefits for any portion of a hospital stay required pursuant to the provisions of this section in a manner that is less favorable than the benefits provided for any preceding portion of that stay.

      4.  Nothing in this section:

      (a) Prohibits a group health plan or carrier from imposing a deductible, coinsurance or other mechanism for sharing costs relating to benefits for hospital stays in connection with childbirth for a mother or newborn child covered by the plan, except that such coinsurance or other mechanism for sharing costs for any portion of a hospital stay required by this section may not be greater than the coinsurance or other mechanism for any preceding portion of that stay.

      (b) Prohibits an arrangement for payment between a group health plan or carrier and a provider of health care that uses capitation or other financial incentives, if the arrangement is designed to provide services efficiently and consistently in the best interest of the mother and her newborn infant.

      (c) Prevents a group health plan or carrier from negotiating with a provider of health care concerning the level and type of reimbursement to be provided in accordance with this section.

      Sec. 81.  A carrier offering group health insurance shall permit an employee or a dependent of an employee covered by the group health insurance who is eligible, but not enrolled, for coverage in connection with the group health insurance to enroll for coverage under the terms of the group health insurance if:

      1.  The employee or dependent was covered under a different group health insurance or had other health insurance coverage at the time coverage was previously offered to the employee or dependent;

      2.  The employee stated in writing at that time that the other coverage was the reason for declining enrollment, but only if the plan sponsor or carrier required such a written statement and informed the employee of that requirement and the consequences of the requirement; and

      3.  The employee or his dependent:

      (a) Was covered under any provision of the Consolidated Omnibus Budget Reconciliation Act of 1985 relating to the continuation of coverage and such continuation of coverage was exhausted; or


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

ê1997 Statutes of Nevada, Page 2908 (Chapter 586, AB 521)ê

 

      (b) Was not covered under such a provision and his insurance coverage was lost as a result of cessation of contributions by his employer, termination of employment or eligibility, reduction in the number of hours of employment, or the death of, or divorce or legal separation from, a covered spouse.

      Sec. 82.  1.  A carrier that offers group health insurance which makes coverage available to the dependent of an employee covered by the group health plan shall permit the employee to enroll a dependent after the close of a period of open enrollment if:

      (a) The employee is a participant in the group health plan, or has met any waiting period applicable to becoming a participant and is eligible to be enrolled under the plan, except for a failure to enroll during a previous period of open enrollment; and

      (b) The person to be enrolled became a dependent of the employee through marriage, birth, adoption or placement for adoption.

      2.  The group health plan or carrier shall provide a period of special enrollment for the enrollment of a dependent of an employee pursuant to this section. Such a period must be not less than 30 days and must begin on:

      (a) The date specified by the group health plan or carrier for the period of special enrollment; or

      (b)The date of the marriage, birth, adoption or placement for adoption, as appropriate.

      3.  If an employee seeks to enroll a dependent during the first 30 days of the period for special enrollment provided pursuant to subsection 2, the coverage of the dependent becomes effective:

      (a) In the case of a marriage, not later than the first day of the first month beginning after the date on which the completed request for enrollment is received;

      (b) In the case of a birth, on the date of the birth; and

      (c) In the case of an adoption or placement for adoption, on the date of the adoption or the placement for adoption.

      4.  In the case of a birth, an adoption or a placement for adoption of a child of an employee, the spouse of the employee may be enrolled as a dependent pursuant to this section if the spouse is otherwise eligible for coverage under the group health plan.

      Sec. 83.  1.  A carrier shall not place any restriction on a person or his dependent as a condition of being a participant in or a beneficiary of a policy of group health insurance that is inconsistent with the provisions of this chapter.

      2.  A carrier that offers coverage under a policy of group health insurance pursuant to this chapter shall not establish rules of eligibility, including, but not limited to, rules which define applicable waiting periods, for the initial or continued enrollment under the group health plan offered by the carrier that are based on the following factors relating to the employee or his dependent:

      (a) Health status.

      (b) Medical condition, including physical and mental illnesses, or both.

      (c) Claims experience.

      (d) Receipt of health care.


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

ê1997 Statutes of Nevada, Page 2909 (Chapter 586, AB 521)ê

 

      (e) Medical history.

      (f) Genetic information.

      (g) Evidence of insurability, including conditions which arise out of acts of domestic violence.

      (h) Disability.

      3.  Except as otherwise provided in section 78 of this act, the provisions of subsection 1 do not:

      (a) Require a carrier to provide particular benefits other than those that would otherwise be provided under the terms of the group health insurance or coverage; or

      (b) Prevent a carrier from establishing limitations or restrictions on the amount, level, extent or nature of the benefits or coverage for similarly situated persons.

      4.  As a condition of enrollment or continued enrollment under a policy of group health insurance, a carrier shall not require an employee to pay a premium or contribution that is greater than the premium or contribution for a similarly situated person covered by similar coverage on the basis of any factor described in subsection 2 in relation to the employee or his dependent.

      5.  Nothing in this section:

      (a) Restricts the amount that an employer or employee may be charged for coverage by a carrier;

      (b) Prevents a carrier from establishing premium discounts or rebates or from modifying otherwise applicable copayments or deductibles in return for adherence by the insured person to programs of health promotion and disease prevention; or

      (c) Precludes a carrier from establishing rules relating to employer contribution or group participation when offering health insurance coverage to small employers in this state.

      Sec. 84.  1.  Except as otherwise provided in this section, coverage under a policy of group health insurance must be renewed by the carrier, at the option of the plan sponsor, unless:

      (a) The plan sponsor has failed to pay premiums or contributions in accordance with the terms of the group health insurance or the carrier has not received timely premium payments.

      (b) The plan sponsor has performed an act or a practice that constitutes fraud or has made an intentional misrepresentation of material fact under the terms of the coverage.

      (c) The plan sponsor has failed to comply with any material provision of the group health insurance relating to employer contributions and group participation.

      (d) The carrier decides to discontinue offering coverage under group health insurance. If the carrier decides to discontinue offering and renewing such insurance, the carrier shall:

             (1) Provide notice of its intention to the commissioner and the chief regulatory officer for insurance in each state in which the carrier is licensed to transact insurance at least 60 days before the date on which notice of cancellation or nonrenewal is delivered or mailed to the persons covered by the discontinued insurance pursuant to subparagraph (2).


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

ê1997 Statutes of Nevada, Page 2910 (Chapter 586, AB 521)ê

 

             (2) Provide notice of its intention to all persons covered by the discontinued insurance and to the commissioner and the chief regulatory officer for insurance in each state in which such a person is known to reside. The notice must be made at least 180 days before the discontinuance of any group health plan by the carrier.

             (3) Discontinue all health insurance issued or delivered for issuance for persons in this state and not renew coverage under any group health insurance issued to such persons.

      2.  A carrier may discontinue the issuance and renewal of a form of a product of group health insurance if the commissioner finds that the form of the product offered by the carrier is obsolete and is being replaced with comparable coverage. A form of a product may be discontinued by the carrier pursuant to this subsection only if:

      (a) The carrier notifies the commissioner and the chief regulatory officer in each state in which it is licensed of its decision pursuant to this subsection to discontinue the issuance and renewal of the form of the product at least 60 days before the individual carrier notifies the persons covered by the discontinued insurance pursuant to paragraph (b).

      (b) The carrier notifies each person covered by the discontinued insurance and the commissioner and the chief regulatory officer in each state in which such a person is known to reside of the decision of the carrier to discontinue offering the form of the product. The notice must be made at least 180 days before the date on which the carrier will discontinue offering the form of the product.

      (c) The carrier offers to each person covered by the discontinued insurance the option to purchase any other health benefit plan currently offered by the carrier to large groups in this state.

      (d) In exercising the option to discontinue the form of the product and in offering the option to purchase other coverage pursuant to paragraph (c), the carrier acts uniformly without regard to the claim experience of the persons covered by the discontinued insurance or any health status-related factor relating to those persons or beneficiaries covered by the discontinued form of the product or any person or beneficiary who may become eligible for such coverage.

      3.  A carrier may discontinue the issuance and renewal of any type of group health insurance offered by the carrier in this state that is made available pursuant to this chapter only to a member of a bona fide association if:

      (a) The membership of the person in the bona fide association was the basis for the provision of coverage under the group health insurance;

      (b) The membership of the person in the bona fide association ceases; and

      (c)Coverage is terminated pursuant to this subsection for all such former members uniformly without regard to any health status-related factor relating to the former member.

      4.  A carrier that elects not to renew group health insurance pursuant to paragraph (d) of subsection 1 shall not write new business pursuant to this chapter for 5 years after the date on which notice is provided to the commissioner pursuant to subparagraph (2) of paragraph (d) of subsection 1.


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

ê1997 Statutes of Nevada, Page 2911 (Chapter 586, AB 521)ê

 

commissioner pursuant to subparagraph (2) of paragraph (d) of subsection 1.

      5.  If the carrier does business in only one established geographic service area of this state, the provisions of this section apply only to the operations of the carrier in that service area.

      6.  As used in this section, “bona fide association” has the meaning ascribed to it in section 4.5 of this act.

      Sec. 85.  1.  A carrier that offers coverage through a network plan is not required to offer coverage to or accept an application from an employer that does not employ or no longer employs any enrollees who reside or work in the established geographic service area of the carrier or the geographic area for which the carrier is authorized to transact insurance, provided that such coverage is refused or terminated uniformly without regard to any health status-related factor for any employee of the employer.

      2.  As used in this section, “network plan” means a health benefit plan offered by a health carrier under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the carrier. The term does not include an arrangement for the financing of premiums.

      Sec. 86.  1.  A plan sponsor of a governmental plan that is a group health plan to which the provisions of sections 60 to 88, inclusive, of this act otherwise apply may elect to exclude the governmental plan from compliance with those sections. Such an election:

      (a) Must be made in such a form and in such a manner as the commissioner prescribes by regulation.

      (b) Is effective for a single specified year of the plan or, if the plan is provided pursuant to a collective bargaining agreement, for the term of that agreement.

      (c) May be extended by subsequent elections.

      (d) Excludes the governmental plan from those provisions in this chapter that apply only to group health plans.

      2.  If a plan sponsor of a governmental plan makes an election pursuant to this section, the plan sponsor shall:

      (a) Annually and at the time of enrollment, notify the enrollees in the plan of the election and the consequences of the election; and

      (b) Provide certification and disclosure of creditable coverage under the plan with respect to those enrollees pursuant to section 77 of this act.

      3.  As used in this section, “governmental plan” has the meaning ascribed to in section 3(32) of the Employee Retirement Income Security Act of 1974, as that section existed on the effective date of this act.

      Sec. 87.  1.  Not later than 180 days after the date on which the basic and standard health benefit plans are approved pursuant to section 163 of this act as part of the plan of operation of the program of reinsurance, each carrier required to offer to a person a converted policy pursuant to NRS 689B.120 shall only offer as a converted policy a choice of the basic and standard health benefit plans.

      2.  A person with a converted policy issued before the effective date of the requirement set forth in subsection 1 may, at each annual renewal of the converted policy elect a basic or standard health benefit plan as a substitute converted policy, except that the carrier may, if the person has not made an election within 3 years after first becoming eligible to do so, require the person to make such an election.


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

ê1997 Statutes of Nevada, Page 2912 (Chapter 586, AB 521)ê

 

converted policy elect a basic or standard health benefit plan as a substitute converted policy, except that the carrier may, if the person has not made an election within 3 years after first becoming eligible to do so, require the person to make such an election. Once a person has elected either the basic or standard health benefit plan as a substitute converted policy, he may not elect another converted policy.

      3.  The premium for a converted policy may not exceed the small group index rate, as defined in paragraph (b) of subsection 3 of NRS 689C.230, applicable to the carrier by more than 110 percent. The small group index rate used by a carrier that does not write insurance to small employers in this state must be the average small group index rate, as determined by the commissioner, of the five largest carriers that provide coverage to small employers pursuant to this chapter for their basic and standard health benefit plans. The commissioner shall annually determine the average small group index rate, as measured by the premium volume of the plans, of those five largest carriers.

      4.  The rates for new and renewal converted policies for persons with the same converted policies whose case characteristics are similar must be the same.

      5.  Any losses suffered by a carrier on its converted policies issued pursuant to this section must be spread across the entire book of the health benefit coverage of the carrier issued or delivered for issuance to small employers and large group employers in this state.

      6.  The commissioner shall adopt such regulations as are necessary to carry out the provisions of this section.

      Sec. 88.  1.  Except as otherwise provided in this section, if group health insurance for groups of 51 persons or more which is issued or delivered for issuance in this state and which offers both medical and surgical benefits and mental health benefits:

      (a) Does not include an aggregate lifetime limit on substantially all medical and surgical benefits, the group health insurance may not impose an aggregate lifetime limit on the mental health benefits.

      (b) Includes an aggregate lifetime limit on substantially all medical and surgical benefits, the aggregate lifetime limit on the mental health benefits offered by the group health insurance must not be less than the aggregate lifetime limit set for the medical and surgical benefits.

      (c) Includes no aggregate lifetime limits, or different aggregate lifetime limits, on different categories of medical and surgical benefits, the applicable aggregate lifetime limit that must be applied in accordance with paragraph (b) to the mental health benefits of the group health insurance must be computed by taking into account the weighted average of the aggregate lifetime limits applicable to such categories of medical and surgical benefits offered by the group health insurance. The computation of the aggregate lifetime limit must be consistent with the rules adopted by the Secretary of the United States Department of Labor pursuant to 29 U.S.C. § 1185a.

      2.  Except as otherwise provided in this section, if group health insurance for groups of 51 persons or more which is issued or delivered for issuance in this state and which offers both medical and surgical benefits and mental health benefits:

 


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

ê1997 Statutes of Nevada, Page 2913 (Chapter 586, AB 521)ê

 

issuance in this state and which offers both medical and surgical benefits and mental health benefits:

      (a) Does not include an annual limit on substantially all medical and surgical benefits, the group health insurance may not impose an annual limit on the mental health benefits.

      (b) Includes an annual limit on substantially all medical and surgical benefits, the annual limit on the mental health benefits offered by the group health insurance must not be less than the annual limit set for the medical and surgical benefits.

      (c) Includes no annual limit, or different annual limits, on different categories of medical and surgical benefits, the applicable annual limit that must be applied in accordance with paragraph (b) to the mental health benefits of the group health insurance must be computed by taking into account the weighted average of the annual limits applicable to such categories of medical and surgical benefits offered by the group health insurance. The computation of the annual limit must be consistent with the rules adopted by the Secretary of the United States Department of Labor pursuant to 29 U.S.C. § 1185a.

      3.  Nothing in this section:

      (a) Requires group health insurance to provide mental health benefits.

      (b) Except as specifically provided in subsection 1, affects the terms or conditions of group health insurance that provides mental health benefits, relating to the amount, duration or scope of those benefits, including, but not limited to, cost sharing, limits on numbers of visits or days of coverage and requirements relating to medical necessity.

      4.  Group health insurance is not required to comply with the provisions of this section if the application of this section would result in an increase in the cost under the group health insurance of 1 percent or more.

      5.  If the group health insurance offers a participant or beneficiary more than one benefit package option, the provisions of this section must be applied separately to each such option offered.

      6.  As used in this section:

      (a) “Aggregate lifetime limit” means a limitation on the total amount of benefits that may be paid with respect to those benefits under group health insurance with respect to a policyholder or other coverage unit.

      (b) “Annual limit” means a limitation on the total amount of benefits that may be paid with respect to those benefits in a 12-month period under group health insurance with respect to an individual or other coverage unit.

      (c) “Medical and surgical benefits” means benefits, as defined under the group health insurance, provided by such insurance for medical or surgical services. The term does not include benefits for services relating to mental health.

      (d) “Mental health benefits” means benefits, as defined under the group health insurance, provided by such insurance for services relating to mental health. The term does not include benefits provided for the treatment of substance abuse or chemical dependency.

      Sec. 89.  NRS 689B.027 is hereby amended to read as follows:

      689B.027  1.  The commissioner shall adopt regulations which require an insurer to file with the commissioner, for his approval, a disclosure summarizing the coverage provided by each policy of group health insurance offered by the insurer.


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

ê1997 Statutes of Nevada, Page 2914 (Chapter 586, AB 521)ê

 

summarizing the coverage provided by each policy of group health insurance offered by the insurer. The disclosure must include:

      (a) Any significant exception, reduction or limitation that applies to the policy;

      (b) Any restrictions on payments for emergency care, including related definitions of an emergency and medical necessity; [and]

      (c) Any provisions concerning the insurer’s right to change premium rates and the characteristics, other than claim experience, that affect changes in premium rates;

      (d) Any provisions relating to renewability;

      (e) Any provisions relating to preexisting conditions; and

      (f) Any other information,

that the commissioner finds necessary to provide for full and fair disclosure of the provisions of the policy.

      2.  The disclosure must be written in language which is easily understood and must include a statement that the disclosure is a summary of the policy only, and that the policy itself should be read to determine the governing contractual provisions.

      3.  The commissioner shall not approve any proposed disclosure submitted to him pursuant to this section which does not comply with the requirements of this section and the applicable regulations.

      4.  The insurer shall make available to an employer upon request a copy of the disclosure approved by the commissioner pursuant to this section for each policy of health insurance coverage for which that employer may be eligible.

      Sec. 90.  NRS 689B.033 is hereby amended to read as follows:

      689B.033  1.  All group health insurance policies providing coverage on an expense-incurred basis and all employee welfare plans providing medical, surgical or hospital care or benefits established or maintained for employees or their families or dependents, or for both, must as to the family members’ coverage provide that the health benefits applicable for children are payable with respect to:

      (a) A newly born child of the insured from the moment of birth;

      (b) An adopted child from the date the adoption becomes effective, if the child was not placed in the home before adoption; and

      (c) A child placed with the insured for the purpose of adoption from the moment of placement as certified by the public or private agency making the placement. The coverage of such a child ceases if the adoption proceedings are terminated as certified by the public or private agency making the placement.

The policies must provide the coverage specified in subsection 3 and must not exclude premature births.

      2.  The policy or contract may require that notification of:

      (a) The birth of a newly born child;

      (b) The effective date of adoption of a child; or

      (c) The date of placement of a child for adoption,

and payments of the required premium or fees, if any, must be furnished to the insurer or welfare plan within 31 days after the date of birth, adoption or placement for adoption in order to have the coverage continue beyond the 31-day period.


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

ê1997 Statutes of Nevada, Page 2915 (Chapter 586, AB 521)ê

 

or placement for adoption in order to have the coverage continue beyond the 31-day period.

      3.  The coverage for newly born and adopted children and children placed for adoption consists of coverage of injury or sickness, including the necessary care and treatment of medically diagnosed congenital defects and birth abnormalities and, within the limits of the policy, necessary transportation costs from place of birth to the nearest specialized treatment center under major medical policies, and with respect to basic policies to the extent such costs are charged by the treatment center.

      4.  An insurer shall not restrict the coverage of a dependent child adopted or placed for adoption solely because of a preexisting condition the child has at the time he would otherwise become eligible for coverage pursuant to the group health policy. Any provision relating to an exclusion for a preexisting condition must comply with section 78 of this act.

      Sec. 91.  NRS 689B.170 is hereby amended to read as follows:

      689B.170  1.  A converted policy must not exclude a preexisting condition not excluded by the group policy, but a converted policy may provide that any hospital, surgical or medical benefits payable under it may be reduced by the amount of any benefits payable under the group policy after its termination. A converted policy may provide that during the first policy year the benefits payable under it, together with the benefits payable under the group policy, must not exceed those that would have been payable if the policyholder’s insurance under the group policy had remained in effect.

      2.  Any exclusion for a preexisting condition provided by a converted policy must comply with section 78 of this act.

      Sec. 92.  NRS 689B.245 is hereby amended to read as follows:

      689B.245  1.  If an employer who employs less than 20 employees maintains a policy of group health insurance which covers those employees, the policy must contain a provision which permits:

      (a) An employee to elect to continue identical coverage under the policy, excluding coverage provided for eye or dental care, if:

             (1) His employment is terminated for any reason other than gross misconduct; or

             (2) The number of his working hours is reduced so that he ceases to be eligible for coverage.

      (b) The spouse or dependent child of an employee to elect to continue coverage, excluding coverage provided for eye or dental care, if:

             (1) The employee’s employment is terminated for any reason other than gross misconduct or the number of his working hours is reduced so that he ceases to be eligible for coverage;

             (2) The employee dies;

             (3) The employee and his spouse are divorced or legally separated;

             (4) The dependent child ceases to be eligible for coverage under the terms of the policy; or

             (5) The spouse ceases to be eligible for coverage after becoming eligible for Medicare.

      2.  The period of continued coverage is limited to:

      (a) Eighteen months for an employee.


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

ê1997 Statutes of Nevada, Page 2916 (Chapter 586, AB 521)ê

 

      (b) Thirty-six months for an employee’s spouse or dependent child.

      3.  An employee who voluntarily leaves his employment, or the spouse or dependent child of that employee, is not eligible to continue coverage pursuant to this section.

      4.  An employee, spouse or dependent child who has not been covered under any group policy of the employer for at least 12 consecutive months before the termination of his coverage is not eligible to continue coverage pursuant to this section.

      5.  A provision for continued coverage must include coverage for any child born to, legally adopted by or placed for adoption with the employee during the period of continued coverage. Such a child is eligible for continued coverage only to the end of the period of continued coverage as established pursuant to subsection 2.

      Sec. 93.  Chapter 689C of NRS is hereby amended by adding thereto the provisions set forth as sections 94 to 182, inclusive, of this act.

      Sec. 94.  “Affiliated” means any entity or person who directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a specified entity or person.

      Sec. 95.  “Affiliation period” means a period, not to exceed 60 days for new enrollees and 90 days for late enrollees, during which no premiums may be collected from and coverage issued would not become effective for a small employer or an eligible employee or his dependent, if the affiliation period is applied uniformly and without regard to any health status-related factors.

      Sec. 96.  “Basic health benefit plan” means the basic health benefit plan developed pursuant to sections 145 to 182, inclusive, of this act.

      Sec. 96.5.  “Bona fide association” has the meaning ascribed to it in section 4.5 of this act.

      Sec. 97.  “Control” has the meaning ascribed to it in NRS 692C.050.

      Sec. 98.  “Converted policy” means a basic or standard health benefit plan issued in accordance with sections 145 to 182, inclusive, of this act.

      Sec. 99.  “Creditable coverage” means health benefits or coverage provided to a person pursuant to:

      1.  A group health plan;

      2.  A health benefit plan;

      3.  Part A or Part B of Title XVIII of the Social Security Act, also known as Medicare;

      4.  Title XIX of the Social Security Act, also known as Medicaid, other than coverage consisting solely of benefits under section 1928 of that Title;

      5.  Chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of Uniformed Services (CHAMPUS));

      6.  A medical care program of the Indian Health Service or of a tribal organization;

      7.  A state health benefit risk pool;

      8.  A health plan offered pursuant to chapter 89 of Title 5, United States Code (Federal Employees Health Benefits Program (FEHBP));

      9.  A public health plan as defined in federal regulations authorized by the Public Health Service Act, section 2701(c)(1)(I), as amended by Public Law 104-191; or


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

ê1997 Statutes of Nevada, Page 2917 (Chapter 586, AB 521)ê

 

      10.  A health benefit plan under section 5(e) of the Peace Corps Act (22 U.S.C. § 2504(e)).

      Sec. 100.  “Established geographic service area” means a geographic area, as approved by the commissioner and based on the certificate of authority of the carrier to transact insurance in this state, within which the carrier is authorized to provide coverage.

      Sec. 101.  “Geographic area” means an area established by the commissioner for use in adjusting the rates for a health benefit plan.

      Sec. 102.  1.  “Group health plan” means an employee welfare benefit plan, as defined in section 3(1) of the Employee Retirement Income Security Act of 1974, as that section existed on the effective date of this act, to the extent that the plan provides medical care to employees or their dependents as defined under the terms of the plan directly, or through insurance, reimbursement or otherwise.

      2.  The term does not include:

      (a) Coverage that is only for accident or disability income insurance, or any combination thereof;

      (b) Coverage issued as a supplement to liability insurance;

      (c) Liability insurance, including general liability insurance and automobile liability insurance;

      (d) Workers’ compensation or similar insurance;

      (e) Coverage for medical payments under a policy of automobile insurance;

      (f) Credit insurance;

      (g) Coverage for on-site medical clinics; and

      (h) Other similar insurance coverage specified in federal regulations adopted pursuant to Public Law 104-191 under which benefits for medical care are secondary or incidental to other insurance benefits.

      3.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan:

      (a) Limited-scope dental or vision benefits;

      (b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and

      (c) Such other similar benefits as are specified in federal regulations adopted pursuant to Public Law 104-191.

      4.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and such benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor:

      (a) Coverage that is only for a specified disease or illness; and

      (b) Hospital indemnity or other fixed indemnity insurance.

      5.  The term does not include any of the following, if offered as a separate policy, certificate or contract of insurance:


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

ê1997 Statutes of Nevada, Page 2918 (Chapter 586, AB 521)ê

 

      (a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, as that section existed on the effective date of this act;

      (b) Coverage supplemental to the coverage provided pursuant to chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of Uniformed Services (CHAMPUS)); and

      (c) Similar supplemental coverage provided under a group health plan.

      Sec. 103.  “Health status-related factor” means, with regard to a person who is or seeks to be insured:

      1.  Health status;

      2.  Any medical conditions, including physical or mental illness, or both;

      3.  Claims experience;

      4.  Receipt of health care;

      5.  Medical history;

      6.  Genetic information;

      7.  Evidence of insurability, including conditions arising out of acts of domestic violence; and

      8.  Disability.

      Sec. 104.  (Deleted by amendment.)

      Sec. 105.  “Network plan” means a health benefit plan offered by a health carrier under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the carrier. The term does not include an arrangement for the financing of premiums.

      Sec. 106.  “Open enrollment” means the period designated for enrollment in a health benefit plan.

      Sec. 107.  “Plan for coverage of a bona fide association” has the meaning ascribed to it in section 22 of this act.

      Sec. 108.  “Plan sponsor” has the meaning ascribed to it in section 3(16)(B) of the Employee Retirement Income Security Act of 1974, as that section existed on the effective date of this act.

      Sec. 109.  “Preexisting condition” means a condition, regardless of the cause of the condition, for which medical advice, diagnosis, care or treatment was recommended or received during the 6 months immediately preceding the effective date of the new coverage. The term does not include genetic information in the absence of a diagnosis of the condition related to such information.

      Sec. 110.  (Deleted by amendment.)

      Sec. 111.  “Producer” means an agent or broker licensed pursuant to this Title.

      Sec. 112.  (Deleted by amendment.)

      Sec. 113.  “Program of reinsurance” means the program of reinsurance for small employers and eligible persons established pursuant to section 159 of this act.

      Sec. 114.  “Risk-assuming carrier” means a small employer carrier that has elected to act as a risk-assuming carrier.

      Sec. 115.  “Standard health benefit plan” means a standard health benefit plan developed pursuant to sections 145 to 182, inclusive, of this act.


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

ê1997 Statutes of Nevada, Page 2919 (Chapter 586, AB 521)ê

 

      Sec. 116.  “Waiting period” means the period established by a plan of health insurance that must pass before a person who is an eligible participant or beneficiary in a plan is covered for benefits under the terms of the plan.

      Sec. 117.  1.  For the purposes of this chapter, and except as otherwise provided in subsection 2, two or more carriers which are affiliated companies or which are eligible to file a consolidated tax return shall be deemed to be one carrier, and any restrictions or limitations imposed by the provisions of this chapter apply as if the health benefit plans delivered or issued for delivery to small employers in this state by such carriers were issued by one carrier.

      2.  An affiliated carrier that is a health maintenance organization having a certificate of authority issued pursuant to the provisions of chapter 695C of NRS may be considered a separate carrier for the purposes of this chapter.

      3.  Unless otherwise authorized by the commissioner, a carrier shall not enter into any ceding arrangement with respect to a health benefit plan delivered or issued for delivery to a small employer in this state if, as a result of the ceding arrangement, the ceding carrier retains less than 30 percent of the insurance obligation or risk for that health benefit plan.

      Sec. 118.  For the purposes of this chapter:

      1.  Any plan, fund or program which would not be, but for section 2721(e) of the Public Health Service Act, as amended by Public Law 104-191, as that section existed on the effective date of this act, an employee welfare benefit plan and which is established or maintained by a partnership to the extent that the plan, fund or program provides medical care to current or former partners in a partnership, or to their dependents, as defined under the terms of the plan, fund or program, directly, or through insurance, reimbursement or otherwise, must be treated, subject to the provisions of subsection 2, as an employee welfare benefit plan that is a group health plan.

      2.  In the case of a group health plan, a partnership shall be deemed to be the employer of each partner.

      Sec. 119.  For the purposes of providing coverage under a health benefit plan pursuant to the provisions of this chapter, a producer may only market association memberships to small employers and eligible employees, accept applications for such membership or sign up such members in a bona fide association if the small employers and eligible employees being marketed are actively engaged in, or directly related to, the bona fide association.

      Sec. 120.  1.  If an employer was not in existence throughout the entire preceding calendar year, the determination of whether the employer is a small or large employer must be based on the average number of employees reasonably expected to be employed on business days in the current calendar year.

      2.  Except as otherwise provided by specific statute, the provisions of this chapter that apply to a small employer at the time that a carrier issues a health benefit plan to the small employer pursuant to the provisions of this chapter continue to apply at least until the plan anniversary following the date on which the small employer no longer meets the requirements of being a small employer.


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

ê1997 Statutes of Nevada, Page 2920 (Chapter 586, AB 521)ê

 

date on which the small employer no longer meets the requirements of being a small employer.

      Sec. 121.  1.  As a condition of transacting business in this state with small employers, a carrier shall actively market to a small employer each health benefit plan which is actively marketed in this state by the carrier to any small employer in this state. The health insurance plans marketed pursuant to this section by the carrier must include, without limitation, a basic health benefit plan and a standard health benefit plan. A carrier shall be deemed to be actively marketing a health benefit plan when it makes available any of its plans to a small employer that is not currently receiving coverage under a health benefit plan issued by that carrier.

      2.  A carrier shall issue to a small employer any health benefit plan marketed in accordance with this section if the eligible small employer applies for the plan and agrees to make the required premium payments and satisfy the other reasonable provisions of the health benefit plan that are not inconsistent with NRS 689C.015 to 689C.350, inclusive, and sections 94 to 143, inclusive, and 145 to 182, inclusive, of this act, except that a carrier is not required to issue a health benefit plan to a self-employed person who is covered by, or is eligible for coverage under, a health benefit plan offered by another employer.

      Sec. 122.  1.  Each carrier shall file with the commissioner, in a format and manner prescribed by the commissioner, the basic health benefit plans and the standard health benefit plans to be offered by the carrier. A health benefit plan filed pursuant to this section may not be offered by a carrier until the earlier of:

      (a) The date of approval by the commissioner; or

      (b) Thirty days after the date on which the plans are filed, unless the commissioner disapproves the use of the plans before the 30-day period expires.

      2.  The commissioner may, at any time, after providing notice and an opportunity for a hearing, disapprove the continued use of a basic or standard health benefit plan by a carrier on the ground that the plan does not meet the requirements of NRS 689C.015 to 689C.350, inclusive, and sections 94 to 143, inclusive, and 145 to 182, inclusive, of this act.

      Sec. 123.  1.  A carrier is not required to provide coverage to small employers pursuant to section 121 of this act:

      (a) During any period in which the commissioner determines that requiring the carrier to provide such coverage would place the carrier in a financially impaired condition.

      (b) If the carrier elects not to offer any new coverage to any small employers in this state. A carrier that elects not to offer new coverage in accordance with this paragraph may maintain its existing policies issued to small employers in this state, subject to the requirements of NRS 689C.310 and 689C.320.

      2.  A carrier that elects not to offer new coverage pursuant to paragraph (b) of subsection 1 shall notify the commissioner forthwith of that election and shall not thereafter write any new business to small employers in this state for 5 years after the date of the notification.


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

ê1997 Statutes of Nevada, Page 2921 (Chapter 586, AB 521)ê

 

      Sec. 124.  Except as otherwise provided in NRS 689C.170 and 689C.180, a carrier shall not modify a health benefit plan with respect to a small employer or any eligible employee or dependent of an eligible employee, through riders or endorsements, or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions or services otherwise covered by the plan.

      Sec. 125.  A carrier that offers coverage through a network plan is not required to offer coverage to or accept any applications for coverage from the eligible employees of a small employer pursuant to NRS 689C.310 and 689C.320 if:

      1.  The eligible employees do not reside or work in the established geographic service area of the network plan.

      2.  For a small employer whose eligible employees reside or work in the established geographic service area of the network plan, the carrier demonstrates to the satisfaction of the commissioner that the carrier does not have the capacity to deliver adequate service to additional small employers and eligible employees because of the existing obligations of the carrier. If a carrier is authorized by the commissioner not to offer coverage pursuant to this subsection, the carrier shall not thereafter offer coverage to additional small employers and eligible employees within that established geographic service area until the carrier demonstrates to the satisfaction of the commissioner that it has regained the capacity to deliver adequate service to additional small employers and eligible employees within that service area.

      Sec. 126.  The provisions of sections 121 and 122 of this act and NRS 689C.190 do not apply to health benefit plans offered by a carrier if the carrier makes the health benefit plan available in the small employer market only through a bona fide association.

      Sec. 127.  A health benefit plan and a carrier offering such a plan shall permit an employee or a dependent of an employee covered by the health benefit plan who is eligible, but not enrolled, for coverage in connection with the health benefit plan to enroll for coverage under the terms of the health benefit plan if:

      1.  The employee or dependent was covered under a different health benefit plan or had other health insurance coverage at the time coverage was previously offered to the employee or dependent;

      2.  The employee stated in writing at that time that the other coverage was the reason for declining enrollment, but only if the plan sponsor or carrier required such a written statement and informed the employee of that requirement and the consequences of the requirement; and

      3.  The employee or his dependent:

      (a) Was covered under any provision of the Consolidated Omnibus Budget Reconciliation Act of 1985 relating to the continuation of coverage and such continuation of coverage was exhausted; or

      (b) Was not covered under such a provision and his insurance coverage was lost as a result of cessation of contributions by his employer, termination of employment or eligibility, reduction in the number of hours of employment, or the death of, or divorce or legal separation from, a covered spouse.


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

ê1997 Statutes of Nevada, Page 2922 (Chapter 586, AB 521)ê

 

      Sec. 128.  1.  A health benefit plan and a carrier of such a plan that makes coverage available to the dependent of a covered employee shall permit the employee to enroll a dependent after the close of a period of open enrollment if:

      (a) The employee is a participant in the health benefit plan, or has met any waiting period applicable to becoming a participant and is eligible to be enrolled under the plan, except for a failure to enroll during a previous period of open enrollment; and

      (b) The person to be enrolled became a dependent of the employee through marriage, birth, adoption or placement for adoption.

      2.  The health benefit plan or carrier shall provide a period of special enrollment for the enrollment of a dependent of an employee pursuant to this section. Such a period must be not less than 30 days and must begin on:

      (a) The date specified by the health benefit plan or carrier for the period of special enrollment; or

      (b)The date of the marriage, birth, adoption or placement for adoption, as appropriate.

      3.  If an employee seeks to enroll a dependent during the first 30 days of the period for special enrollment provided pursuant to subsection 2, the coverage of the dependent becomes effective:

      (a) In the case of a marriage, not later than the first day of the first month beginning after the date on which the completed request for enrollment is received;

      (b) In the case of a birth, on the date of the birth; and

      (c) In the case of an adoption or placement for adoption, on the date of the adoption or the placement for adoption.

      4.  In the case of a birth, an adoption or a placement for adoption of a child of an employee, the spouse of the employee may be enrolled as a dependent pursuant to this section if the spouse is otherwise eligible for coverage under the health benefit plan.

      Sec. 129.  1.  Within 30 days after the date on which a plan of operation is approved by the commissioner pursuant to section 163 of this act, or for a new carrier within 30 days after the date on which it enters the small employer market, each carrier shall elect to operate as either a risk-assuming carrier or a reinsuring carrier and shall notify the commissioner of its election

      2.  The initial election of a carrier to act as a risk-assuming or reinsuring carrier is effective on the carrier for 2 years after the date on which it notifies the commissioner pursuant to subsection 1. After the initial 2-year period, such an election is effective for 5 years. The commissioner may allow a carrier to modify its election at any time for good cause shown. The commissioner may waive or modify the period during which the election of a carrier to operate as a risk-assuming or reinsuring carrier is effective.

      3.  A carrier may apply to the commissioner, in a manner prescribed by the commissioner by regulation, to change its status as a risk-assuming or reinsuring carrier.

      4.  A reinsuring carrier that elects or is subsequently authorized by the commissioner to operate as a risk-assuming carrier:


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

ê1997 Statutes of Nevada, Page 2923 (Chapter 586, AB 521)ê

 

      (a) Shall not continue to reinsure any small employer health benefit plan with the program of reinsurance.

      (b) Shall pay a prorated assessment based upon business issued as a reinsuring carrier for any portion of the year that the business was reinsured.

      5.  As used in this section:

      (a) “Plan of operation” means the plan of operation of the program of reinsurance established pursuant to sections 145 to 182, inclusive, of this act.

      (b) “Reinsuring carrier” means a carrier participating in the program of reinsurance established pursuant to sections 145 to 182, inclusive, of this act.

      Sec. 130.  1.  The commissioner may suspend the election of a carrier to act as a risk-assuming carrier if the commissioner finds that:

      (a) The financial condition of the carrier will no longer support the assumption of risk from issuing coverage to small employers in compliance with section 121 of this act and NRS 689C.190 without the protection afforded by the program of reinsurance;

      (b) The carrier has failed to market its health benefit plans fairly to all small employers in this state or in its established geographic service area, as applicable; or

      (c) The carrier has failed to provide coverage to eligible small employers as required pursuant to section 121 of this act and NRS 689C.190.

      2.  A carrier that elects to be a risk-assuming carrier is subject to:

      (a) The provisions of sections 121 of this act, relating to the availability of coverage; and

      (b) The provisions of NRS 689C.260, relating to classes of businesses.

      Sec. 131.  1.  Except as otherwise provided in this section, a carrier or a producer shall not, directly or indirectly:

      (a) Encourage or direct a small employer to refrain from filing an application for coverage with the carrier because of the health status, claims experience, industry, occupation or geographic location of the small employer.

      (b) Encourage or direct a small employer to seek coverage from another carrier because of the health status, claims experience, industry, occupation or geographic location of the small employer.

      2.  The provisions of subsection 1 do not apply to information provided to a small employer by a carrier or a producer relating to the established geographic service area or a provision for a restricted network of the carrier.

      3.  Except as otherwise provided in this subsection, a carrier shall not, directly or indirectly, enter into any contract, agreement or arrangement with a producer if the contract, agreement or arrangement provides for or results in a variation to the compensation that is paid to a producer for the sale of a health benefit plan because of the health status, claims experience, industry, occupation or geographic location of the small employer at the time that the health benefit plan is issued to or renewed by the small employer. The provisions of this subsection do not apply to any arrangement for compensation that provides payment to a producer on the basis of percentage of premium, except that the percentage may not vary because of the health status, claims experience, industry, occupation or geographic area of the small employer.


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

ê1997 Statutes of Nevada, Page 2924 (Chapter 586, AB 521)ê

 

percentage of premium, except that the percentage may not vary because of the health status, claims experience, industry, occupation or geographic area of the small employer.

      4.  A carrier shall not terminate, fail to renew, or limit its contract or agreement of representation with a producer for any reason related to the health status, claims experience, occupation or geographic location of a small employer at the time that the health benefit plan is issued to or renewed by the small employer placed by the producer with the carrier.

      5.  A carrier or producer shall not induce or otherwise encourage a small employer to separate or otherwise exclude an employee or a dependent of the employee from health coverage or benefits provided in connection with the employment of the employee.

      6.  A violation of any provision of this section by a carrier may constitute an unfair trade practice for the purposes of chapter 686A of NRS.

      7.  The provisions of this section apply to a third-party administrator if the third-party administrator enters into a contract, agreement or other arrangement with a carrier to provide administrative, marketing or other services related to the offering of a health benefit plan to small employers in this state.

      8.  Nothing in this section interferes with the right and responsibility of a broker to advise and represent the best interests of a small employer who is seeking health insurance coverage from a small employer carrier.

      Sec. 132.  1.  A denial by a carrier of an application for coverage from a small employer must be in writing and must state the reason for the denial.

      2.  The commissioner may adopt regulations that set forth standards to provide for the fair marketing and broad availability of health benefit plans to small employers in this state.

      Sec. 133.  The commissioner may adopt regulations to require a carrier, as a condition of transacting insurance with small employers in this state after the effective date of this act, to reissue a health benefit plan to any small employer whose health benefit plan has been terminated or not renewed by the carrier after July 1, 1997. The commissioner may prescribe such terms for the reissue of coverage as he finds are reasonable and necessary to provide continuity of coverage to small employers.

      Sec. 134.  1.  Except as otherwise provided in this subsection, a health benefit plan issued pursuant to this chapter that includes coverage for maternity care and pediatric care for newborn infants may not restrict benefits for any length of stay in a hospital in connection with childbirth for a mother or newborn infant covered by the plan to:

      (a) Less than 48 hours after a normal vaginal delivery; and

      (b) Less than 96 hours after a cesarean section.

If a different length of stay is provided in the guidelines established by the American College of Obstetricians and Gynecologists, or its successor organization, and the American Academy of Pediatrics, or its successor organization, the health benefit plan may follow such guidelines in lieu of following the length of stay set forth above. The provisions of this subsection do not apply to any health benefit plan in any case in which the decision to discharge the mother or newborn infant before the expiration of the minimum length of stay set forth in this subsection is made by the attending physician of the mother or newborn infant.


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

ê1997 Statutes of Nevada, Page 2925 (Chapter 586, AB 521)ê

 

minimum length of stay set forth in this subsection is made by the attending physician of the mother or newborn infant.

      2.  Nothing in this section requires a mother to:

      (a) Deliver her baby in a hospital; or

      (b) Stay in a hospital for a fixed period following the birth of her child.

      3.  A health benefit plan that offers coverage for maternity care and pediatric care of newborn infants may not:

      (a) Deny a mother or her newborn infant coverage or continued coverage under the terms of the plan if the sole purpose of the denial of coverage or continued coverage is to avoid the requirements of this section;

      (b) Provide monetary payments or rebates to a mother to encourage her to accept less than the minimum protection available pursuant to this section;

      (c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because he provided care to a mother or newborn infant in accordance with the provisions of this section;

      (d) Provide incentives of any kind to an attending physician to induce him to provide care to a mother or newborn infant in a manner that is inconsistent with the provisions of this section; or

      (e) Except as otherwise provided in subsection 4, restrict benefits for any portion of a hospital stay required pursuant to the provisions of this section in a manner that is less favorable than the benefits provided for any preceding portion of that stay.

      4.  Nothing in this section:

      (a) Prohibits a health benefit plan or carrier from imposing a deductible, coinsurance or other mechanism for sharing costs relating to benefits for hospital stays in connection with childbirth for a mother or newborn child covered by the plan, except that such coinsurance or other mechanism for sharing costs for any portion of a hospital stay required by this section may not be greater than the coinsurance or other mechanism for any preceding portion of that stay.

      (b) Prohibits an arrangement for payment between a health benefit plan or carrier and a provider of health care that uses capitation or other financial incentives, if the arrangement is designed to provide services efficiently and consistently in the best interest of the mother and her newborn infant.

      (c) Prevents a health benefit plan or carrier from negotiating with a provider of health care concerning the level and type of reimbursement to be provided in accordance with this section.

      Sec. 135.  1.  A carrier shall not place any restriction on a small employer or an eligible employee or his dependent as a condition of being a participant in or a beneficiary of a health benefit plan that is inconsistent with NRS 689C.015 to 689C.350, inclusive, and sections 94 to 143, inclusive, of this act.

      2.  A carrier that offers health insurance coverage to small employers pursuant to this chapter shall not establish rules of eligibility, including, but not limited to, rules which define applicable waiting periods, for the initial or continued enrollment under a health benefit plan offered by the carrier that are based on the following factors relating to the eligible employee or his dependent:

 


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

ê1997 Statutes of Nevada, Page 2926 (Chapter 586, AB 521)ê

 

that are based on the following factors relating to the eligible employee or his dependent:

      (a) Health status.

      (b) Medical condition, including physical and mental illnesses, or both.

      (c) Claims experience.

      (d) Receipt of health care.

      (e) Medical history.

      (f) Genetic information.

      (g) Evidence of insurability, including conditions which arise out of acts of domestic violence.

      (h) Disability.

      3.  Except as otherwise provided in NRS 689C.190, the provisions of subsection 1 do not:

      (a) Require a carrier to provide particular benefits other than those that would otherwise be provided under the terms of the health benefit plan or coverage; or

      (b) Prevent a carrier from establishing limitations or restrictions on the amount, level, extent or nature of the benefits or coverage for similarly situated persons.

      4.  As a condition of enrollment or continued enrollment under a health benefit plan, a carrier shall not require any person to pay a premium or contribution that is greater than the premium or contribution for a similarly situated person covered by similar coverage on the basis of any factor described in subsection 2 in relation to the person or his dependent.

      5.  Nothing in this section:

      (a) Restricts the amount that a small employer may be charged for coverage by a carrier;

      (b) Prevents a carrier from establishing premium discounts or rebates or from modifying otherwise applicable copayments or deductibles in return for adherence by the insured person to programs of health promotion and disease prevention; or

      (c) Precludes a carrier from establishing rules relating to employer contribution or group participation when offering health insurance coverage to small employers in this state.

      6.  As used in this section:

      (a) “Contribution” means the minimum employer contribution toward the premium for enrollment of participants and beneficiaries in a health benefit plan.

      (b) “Group participation” means the minimum number of participants or beneficiaries that must be enrolled in a health benefit plan in relation to a specified percentage or number of eligible persons or employees of the employer.

      Sec. 136.  1.  In determining the applicable creditable coverage of a person for the purposes of NRS 689C.190, a period of creditable coverage must not be included if, after the expiration of that period but before the enrollment date, there was a 63-day period during all of which the person was not covered under any creditable coverage. To establish a period of creditable coverage, an eligible employee must present any certificates of coverage provided to him in accordance with section 137 of this act and such other evidence of coverage as required by regulations adopted by the commissioner.


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

ê1997 Statutes of Nevada, Page 2927 (Chapter 586, AB 521)ê

 

such other evidence of coverage as required by regulations adopted by the commissioner. For the purposes of this subsection, any waiting period for coverage or an affiliation period must not be considered in determining the applicable period of creditable coverage.

      2.  In determining the period of creditable coverage of a person for the purposes of NRS 689C.190, a carrier shall include each applicable period of creditable coverage without regard to the specific benefits covered during that period, except that the carrier may elect to include applicable periods of creditable coverage based on coverage of specific benefits as specified by the United States Department of Health and Human Services by regulation, if such an election is made on a uniform basis for all participants and beneficiaries of the health benefit plan or coverage. Pursuant to such an election, the carrier shall include each applicable period of creditable coverage with respect to any class or category of benefits if any level of benefits is covered within that class or category, as specified by those regulations.

      3.  Regardless of whether coverage is actually provided, if a carrier elects in accordance with subsection 2 to determine creditable coverage based on specified benefits, a statement that such an election has been made and a description of the effect of the election must be:

      (a) Included prominently in any disclosure statement concerning the health benefit plan; and

      (b) Provided to each eligible employee at the time of enrollment in the health benefit plan.

      Sec. 137.  1.  For the purposes of determining the period of creditable coverage of a person accumulated under a health benefit plan or group health insurance, the insurer shall provide written certification of coverage on a form prescribed by the commissioner to the person which certifies the length of:

      (a) The period of creditable coverage that the person accumulated under the plan and any coverage under any provision of the Consolidated Omnibus Budget Reconciliation Act of 1985, as that act existed on the effective date of this act, relating to the continuation of coverage; and

      (b) Any waiting and affiliation period imposed on the person pursuant to that coverage.

      2.  The certification of coverage must be provided to the person who was insured:

      (a) At the time that he ceases to be covered under the plan, if he does not otherwise become covered under any provision of the Consolidated Omnibus Budget Reconciliation Act of 1985, as that act existed on the effective date of this act, relating to the continuation of coverage;

      (b) If he becomes covered under such a provision, at the time that he ceases to be covered by that provision; and

      (c) Upon request, if the request is made not later than 24 months after the date on which he ceased to be covered as described in paragraphs (a) and (b).

      Sec. 138.  A carrier may modify the health insurance coverage for a product offered to small employers pursuant to a group health plan if, for coverage that is available in that market other than through one or more bona fide associations, the modification is consistent with the provisions of this Title and is effective on a uniform basis among such group health plans.


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

ê1997 Statutes of Nevada, Page 2928 (Chapter 586, AB 521)ê

 

bona fide associations, the modification is consistent with the provisions of this Title and is effective on a uniform basis among such group health plans.

      Sec. 139.  1.  An employee welfare benefit plan for providing benefits for employees of more than one employer under which health insurance coverage is provided to small employers must comply with the provisions of this chapter and with NRS 679B.139 and the regulations adopted by the commissioner pursuant thereto.

      2.  As used in this section, the term “employee welfare benefit plan for providing benefits for employees of more than one employer” is intended to be equivalent to the term “employee welfare benefit plan which is a multiple employer welfare arrangement” as used in federal statutes and regulations.

      Sec. 140.  1.  An employee, spouse or dependent child shall notify the employer that he is eligible to continue his coverage pursuant to NRS 689C.340 not later than 60 days after he becomes eligible to do so.

      2.  The employer shall, within 14 days after receipt of notification pursuant to subsection 1, provide adequate information to the employee, spouse or dependent child regarding the election to continue coverage and the premium required to be paid.

      3.  If the employee, spouse or dependent child elects to continue coverage, he shall notify the insurer of his election and pay to the insurer the premium required by section 141 of this act within 60 days after receipt of the information provided pursuant to subsection 2.

      Sec. 141.  1.  Any person who elects to continue coverage pursuant to NRS 689C.340 shall pay a premium for that coverage in an amount not to exceed 125 percent of the premium charged to the employer by the insurer for coverage of that person on the date on which that person became eligible for continued coverage.

      2.  If there is a change in the rate charged or benefits provided under the policy during the time of continued coverage, the premium may not exceed 125 percent of the new rate charged to the employer.

      3.  The premiums must be paid to the insurer on a quarterly basis.

      4.  If the payment of a premium is not received by the insurer within 30 days after the date on which it is due, continued coverage must be terminated.

      Sec. 142.  If an employer changes his insurer during the period of a person’s continued coverage, the new insurer shall provide continued coverage for that person for the remainder of the continuation period in accordance with the provisions of section 141 of this act.

      Sec. 143.  Continued coverage pursuant to NRS 689C.340 ceases before the end of the period provided in that section if:

      1.  The employer discontinues group health insurance for his employees;

      2.  The employee, spouse or dependent child fails to pay the required premiums;

      3.  The employee, spouse or dependent child becomes covered under any other policy of group health insurance;

      4.  The employee or spouse qualifies for Medicare; or

      5.  The spouse remarries and becomes eligible for coverage under a policy of group health insurance of the new spouse.


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

ê1997 Statutes of Nevada, Page 2929 (Chapter 586, AB 521)ê

 

      Sec. 144.  A voluntary purchasing group and any contract issued to such a group pursuant to NRS 689C.360 to 689C.600, inclusive, and this section are subject to the provisions of NRS 689C.015 to 689C.350, inclusive, and sections 94 to 143, inclusive, of this act, to the extent applicable and not in conflict with the express provisions of NRS 689C.360 to 689C.600, inclusive, and this section.

      Sec. 145.  As used in sections 145 to 182, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 146 to 158, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 146.  “Board” means the board of directors of the program of reinsurance established pursuant to section 160 of this act.

      Sec. 147.  “Church plan” has the meaning ascribed to it in section 3(33) of the Employee Retirement Income Security Act of 1974, as that section existed on the effective date of this act.

      Sec. 148.  “Committee” means the committee on health benefit plans that is created pursuant to section 179 of this act.

      Sec. 149.  “Eligible person” has the meaning ascribed to it in section 10 of this act.

      Sec. 150.  “Individual carrier” means any entity subject to the provisions of this Title and the regulations adopted pursuant thereto, that contracts or offers to contract to provide for, deliver payment for, arrange for payment of, pay for, or reimburse any cost of health care services, including a sickness and accident health service corporation, and any other entity providing a plan of health insurance, health benefits or health services to individuals and their dependents in this state.

      Sec. 151.  “Individual health benefit plan” means:

      1.  A health benefit plan, other than a converted policy or a plan for coverage of a bona fide association, for individuals and their dependents; and

      2.  A certificate issued to an individual that evidences coverage under a policy or contract issued to a trust, an association or other similar group of persons, other than a plan for coverage of a bona fide association, regardless of the situs of delivery of the policy or contract, if the eligible person pays the premium and is not being covered under the policy or contract pursuant to any provision for the continuation of benefits applicable under federal or state law.

      Sec. 152.  “Individual reinsuring carrier” means an individual carrier that has elected to reinsure eligible persons in the program of reinsurance.

      Sec. 153.  “Individual risk-assuming carrier” means an individual carrier that has elected to act as a risk-assuming carrier.

      Sec. 154.  “Plan of operation” means the plan of operation of the program of reinsurance.

      Sec. 155.  (Deleted by amendment.)

      Sec. 156.  “Program of reinsurance” means the program of reinsurance for small employers and eligible persons created pursuant to section 159 of this act.

      Sec. 157.  “Reinsuring carrier” means a small employer carrier participating in the program of reinsurance.


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

ê1997 Statutes of Nevada, Page 2930 (Chapter 586, AB 521)ê

 

      Sec. 158.  “Risk-assuming carrier” means a small employer carrier that has elected to act as a risk-assuming carrier.

      Sec. 159.  There is hereby created a nonprofit entity to be known as the program of reinsurance for small employers and eligible persons.

      Sec. 160.  1.  The board of directors of the program of reinsurance is hereby created. The board consists of:

      (a) Eight members to be appointed by the commissioner as follows:

             (1) Six persons who represent carriers that provide health insurance coverage to small employers pursuant to the provisions of this chapter or to individuals pursuant to chapter 689A of NRS, or to both small employers and individuals; and

             (2) Two persons who represent small employers and eligible persons; and

      (b) The commissioner, or his designated representative, who is an ex officio, nonvoting member of the board.

      2.  Members of the board serve without compensation except that while engaged in the business of the board, each member is entitled to receive the per diem allowance or travel expenses provided for state officers and employees generally, to be paid from the proceeds of the assessments received by the program of reinsurance as an administrative expense of the program of reinsurance.

      3.  After the initial term, the term of each appointed member is 3 years. Members may be reappointed. A member may be removed from the board by the commissioner for good cause shown.

      4.  At the expiration of the term of a member of the board, or if the member resigns or is otherwise unable to complete his term, the commissioner shall appoint a replacement not later than 30 days after the vacancy occurs. All vacancies on the board must be filled in the same manner of appointment as the member who created the vacancy.

      Sec. 161.  (Deleted by amendment.)

      Sec. 162.  1.  The board shall meet:

      (a) Until a plan of operation, other than a temporary plan of operation, has been approved by the commissioner, twice a year;

      (b) Once a plan of operation has been so approved, once a year; and

      (c) At such other times as the commissioner deems necessary.

      2.  The board shall elect from its membership a chairman who shall serve for a term of 2 years. Any vacancy occurring in this position must be filled by election of the members of the board for the remainder of the unexpired term.

      Sec. 163.  1.  Not later than 120 days after the initial appointment of the board, the board shall submit to the commissioner a plan of operation that ensures the fair, reasonable and equitable administration of the program of reinsurance. Once a plan of operation has been approved by the commissioner, the board may amend the plan of operation as needed, subject to the approval of the commissioner.

      2.  The commissioner shall, after notice and a hearing, approve a plan of operation and any amendment to the plan of operation submitted for his approval if he determines that the plan or amendment is suitable to:


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

ê1997 Statutes of Nevada, Page 2931 (Chapter 586, AB 521)ê

 

      (a) Ensure the fair, reasonable and equitable administration of the program of reinsurance; and

      (b) Provide for the sharing of the gains and losses of the program of reinsurance on an equitable basis in accordance with the provisions of sections 145 to 182, inclusive, of this act.

      3.  If the board fails to submit a suitable plan of operation within 120 days after its appointment or if the commissioner determines in accordance with subsection 2 that the plan of operation as submitted is not suitable, the commissioner may, after notice and a hearing, adopt and carry out a temporary plan of operation which is effective only until the approval of a plan of operation submitted by the board.

      4.  Before approving a plan of operation submitted by the board, the commissioner may amend the plan if he determines that such an amendment is necessary to ensure that the plan is suitable pursuant to subsection 2.

      5.  A plan of operation becomes effective upon the written approval of the commissioner.

      Sec. 164.  A plan of operation and a temporary plan of operation must:

      1.  Establish procedures for the handling and accounting of the assets of the program of reinsurance and for an annual fiscal reporting to the commissioner.

      2.  Establish procedures for selecting an administering carrier and set forth the powers and duties of the administering carrier.

      3.  Establish procedures for reinsuring risks pursuant to the program of reinsurance.

      4.  Establish procedures for collecting assessments to pay claims and administrative expenses incurred or estimated to be incurred by the program of reinsurance.

      5.  Establish a methodology for applying the minimum amount of claims and the maximum liability of the reinsuring or individual reinsuring carrier as set forth in section 166 of this act.

      6.  Provide for any additional matters necessary to carry out and administer the program of reinsurance.

      Sec. 165.  Notwithstanding any provision of this Title to the contrary, the program of reinsurance shall be deemed to have the general powers and authority granted under the laws of this state to insurance companies and health maintenance organizations licensed to transact business in this state, except that the program of reinsurance shall not issue any health benefit plans directly to small employers or individuals, or both. The program of reinsurance may:

      1.  With the approval of the commissioner, enter into such contracts as are necessary to carry out the provisions of this chapter and sections 2 to 57, inclusive, of this act, including entering into contracts with similar programs of reinsurance of other states for the joint performance of common functions, or with persons or other organizations for the performance of administrative functions, relating to programs of reinsurance.

      2.  Take any legal action necessary or proper to recover assessments and penalties for or on behalf of the program of reinsurance, or to avoid the payment of improper claims against the program of reinsurance.


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

ê1997 Statutes of Nevada, Page 2932 (Chapter 586, AB 521)ê

 

      3.  Sue or be sued by a reinsuring carrier or an individual reinsuring carrier relating to the carrier’s participation in the program of reinsurance.

      4.  Define the health benefit plans for which reinsurance will be provided and issue reinsurance policies, in accordance with the requirements of this chapter and sections 2 to 57, inclusive, of this act.

      5.  Establish rules, conditions and procedures for reinsuring risks under the program of reinsurance.

      6.  Establish actuarial functions as appropriate for the operation of the program of reinsurance.

      7.  Make assessments in accordance with the provisions of sections 170, 171 and 173 of this act and make advance interim assessments as may be reasonable and necessary to pay for any organizational and interim operating expenses. Any interim assessment must be credited as an offset against any assessments due after the close of the fiscal year.

      8.  Appoint appropriate legal, actuarial and other committees as necessary to provide technical assistance in the operation of the program of reinsurance, design of policies and other similar contract of insurance, and any other function within the authority of the program of reinsurance.

      9.  Borrow money to effect the purposes of the program of reinsurance. Any note or other evidence of indebtedness of the program of reinsurance not in default shall be deemed to be legal investments for carriers and may be carried as admitted assets.

      Sec. 166.  1.  The program of reinsurance must reinsure:

      (a) For a basic or standard health benefit plan, the level of coverage provided; and

      (b) For any other plan, up to the level of coverage provided in a basic or standard health benefit plan.

      2.  A reinsuring carrier may reinsure a small employer within 60 days after the beginning of coverage of the small employer under a health benefit plan, or for an eligible employee or his dependent, within 60 days after the beginning of coverage of the employee or dependent under a health benefit plan. An individual reinsuring carrier may reinsure an eligible person or his dependent within 60 days after the effective date of coverage of the person or dependent under a health benefit plan.

      3.  The program of reinsurance may not reimburse a reinsuring carrier or an individual reinsuring carrier for a claim of a reinsured eligible employee or eligible person, or a dependent of such an employee or person, as appropriate, until the reinsuring or individual reinsuring carrier has incurred in a calendar year the minimum amount of claims of the eligible employee, eligible person or dependent of benefits covered by the program of reinsurance. After the amount of claims of the eligible employee, eligible person or dependent is equal to or greater than the required minimum amount, the reinsuring or individual reinsuring carrier is liable for 10 percent of the next $50,000 of payments of benefits that are paid during that calendar year and the program of reinsurance must reinsure the remainder of the benefit payments. The total liability of a carrier in a calendar year pursuant to this subsection may not exceed the maximum liability established by the board.

      4.  For the purposes of subsection 3, the board shall establish:


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

ê1997 Statutes of Nevada, Page 2933 (Chapter 586, AB 521)ê

 

      (a) The minimum amount of claims, which must be in an amount that is equal to or greater than $5,000, that must be incurred before the program of reinsurance will reimburse the reinsuring or individual reinsuring carrier.

      (b) The maximum liability of a reinsuring or individual reinsuring carrier, which must be in an amount that is equal to or greater than $10,000.

The board shall annually adjust the minimum amount of claims and the maximum liability of a reinsuring or individual reinsuring carrier to reflect increases in the costs and utilization within the standard market for health benefit plans within this state. Unless the board proposes and the commissioner approves a factor that would provide for a lower adjustment, the adjustments must not be less than the annual change in the component for medical care of the Consumer Price Index for All Urban Consumers of the United States Department of Labor, Bureau of Labor Statistics.

      5.  A reinsuring carrier that provides health insurance coverage to small employers may terminate reinsurance with the program of reinsurance for a reinsured employee or dependent, and an individual reinsuring carrier may terminate reinsurance with the program of reinsurance for an eligible person or dependent, on the anniversary date of the health benefit plan.

      6.  The premium rates charged for reinsurance by the program of reinsurance to a health maintenance organization that is federally qualified pursuant to 42 U.S.C. §§ 300 et seq. and is subject to requirements limiting the amount of risk that may be ceded to a program of reinsurance that are more restrictive than the amounts set forth in subsection 5 must be reduced to reflect that portion of the risk above the amount determined pursuant to this section, if any, that may not be ceded to the program of reinsurance.

      7.  A reinsuring carrier or an individual reinsuring carrier purchasing reinsurance pursuant to this chapter or sections 2 to 57, inclusive, of this act shall apply its techniques for handling managed care and claims, including utilization review, individual case management, preferred provider provisions and other provisions or methods of operating relating to managed care, to the health benefit plans that are being reinsured pursuant to the program of reinsurance in a manner that is consistent with the business of the carrier that is not reinsured.

      8.  Nothing in this section prohibits a reinsuring carrier or an individual reinsuring carrier from terminating the coverage of a small employer or an eligible person on the grounds described in paragraph (c) of subsection 1 of NRS 687B.320.

      9.  The plan of operation must provide that:

      (a) A reinsuring carrier may reinsure a small employer or an eligible employee or his dependent if coverage is written on or after July 1, 1997; and

      (b) An individual reinsuring carrier may reinsure an eligible person or his dependent if coverage is written on or after January 1, 1998.

      Sec. 167.  1.  The plan of operation must include a methodology for determining premium rates to be charged by the program of reinsurance for reinsuring small employers and eligible persons pursuant to sections 145 to 182, inclusive, of this act. The methodology must:


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

ê1997 Statutes of Nevada, Page 2934 (Chapter 586, AB 521)ê

 

      (a) Include a system for the classification of small employers which reflects the types of case characteristics commonly used by carriers that provide health insurance coverage to small employers pursuant to the provisions of this chapter; and

      (b) Provide for the development of initial base premium rates for reinsurance to be used pursuant to subsection 2 to determine the premium rates for the program of reinsurance. The board shall establish such base rates, subject to the approval of the commissioner, at levels that reasonably approximate the gross premiums charged to small employers by small employer carriers, to eligible employees and their dependents by small employer carriers, or to eligible persons by individual carriers, as appropriate, for health benefit plans with benefits similar to the standard health benefit plan, as adjusted to reflect the minimum amount of claims and the maximum liability established pursuant to section 166 of this act.

      2.  Premiums for the program of reinsurance:

      (a) For an entire small employer group, must be at a rate that is at least 1 1/2 times the base premium rate established pursuant to subsection 1.

      (b) For an eligible employee and his dependent, must be at a rate that is at least five times the base premium rate established pursuant to subsection 1.

      (c) For an eligible person, must be at a rate that is at least 1 1/2 times the base premium rate established pursuant to subsection 1.

      3.  The board shall periodically review the methodology established pursuant to this section, including the system of classification and any rating factors, to ensure that the methodology reasonably reflects the claims experience of the program of reinsurance. The board may, subject to the approval of the commissioner, change the methodology as needed.

      4.  The board may adjust the factor by which the base premium rate must be multiplied pursuant to this section to determine the premium rates to be charged for the program of reinsurance to reflect the use of effective measures of cost containment and any arrangements for managed care.

      Sec. 168.  1.  If a health benefit plan for a small employer, an eligible employee or an eligible person is entirely or partially reinsured with the program of reinsurance, the premiums charged to the small employer, eligible employee or eligible person for any rating period during which such coverage is entirely or partially reinsured must meet the requirements for premium rates set forth in sections 48 to 52, inclusive, of this act, or as established in accordance with NRS 689C.230, as appropriate.

      2.  As used in this section, “rating period” means the calendar period for which premium rates established by a carrier subject to this section and section 167 of this act are assumed to be in effect.

      Sec. 169.  On or before March 1 of each year, the board shall determine, separately account for and report to the commissioner the net loss of the program of reinsurance for the previous calendar year, including administrative expenses and incurred losses for that year. Such a determination and accounting must take into account any investment income and other appropriate gains and losses for reinsured small employers and eligible employees and their dependents and for reinsured eligible persons.


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

ê1997 Statutes of Nevada, Page 2935 (Chapter 586, AB 521)ê

 

      Sec. 170.  1.  Any net loss from reinsuring small employers and eligible employees and their dependents must be recouped by assessments against reinsuring carriers.

      2.  As part of the plan of operation, the board shall establish a formula pursuant to which assessments may be made against reinsuring carriers to recover the net loss. The formula must be based on:

      (a) The share of each reinsuring carrier of the total premiums earned by all reinsuring carriers during the preceding calendar year from existing health benefit plans delivered or issued for delivery to small employers in this state; and

      (b) The share of each reinsuring carrier of the premiums earned by all reinsuring carriers in the preceding calendar year from newly issued health benefit plans delivered or issued for delivery during that year to small employers in this state.

      3.  An assessment made against a reinsuring carrier pursuant to this section must not be less than 50 percent nor more than 150 percent of an amount equal to the proportion of the total premium earned by the reinsuring carrier during the preceding calendar year from health benefit plans delivered or issued for delivery to small employers in this state to the total premiums earned by all such carriers in the preceding calendar year for such health benefit plans.

      4.  The board may, with the approval of the commissioner, change the formula for determining assessments against reinsuring carriers established pursuant to this section as necessary. The board may provide that, during any transitional period, the shares of the assessment base attributable to the total premiums and to the premiums of the previous year may vary.

      5.  Subject to the approval of the commissioner, the board shall adjust the formula for assessing reinsuring carriers that are approved health maintenance organizations which are federally qualified under 42 U.S.C. §§ 300 et seq., to the extent that any restrictions are placed on such reinsuring carriers that are not imposed on other small employer carriers.

      6.  In determining the amount of net loss pursuant to this section, the board shall include any expenses incurred by the program of reinsurance in providing such reinsurance.

      Sec. 171.  1.  Any net loss from reinsuring individual eligible persons and their dependents must be recouped by assessments against individual reinsuring carriers.

      2.  As part of the plan of operation, the board shall establish a formula pursuant to which assessments may be made against individual reinsuring carriers to recover the net loss. The formula must be based on:

      (a) The share of each individual reinsuring carrier of the total premiums earned by all individual reinsuring carriers during the preceding calendar year from existing health benefit plans delivered or issued for delivery to individuals in this state; and

      (b) The share of each individual reinsuring carrier of the premiums earned by all individual reinsuring carriers in the preceding calendar year from newly issued health benefit plans delivered or issued for delivery during that year to individuals in this state.


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

ê1997 Statutes of Nevada, Page 2936 (Chapter 586, AB 521)ê

 

      3.  An assessment made against an individual reinsuring carrier pursuant to this section must not be less than 50 percent nor more than 150 percent of an amount equal to the proportion of the total premium earned by the individual reinsuring carrier during the preceding calendar year from health benefit plans delivered or issued for delivery to individuals in this state to the total premiums earned by all such carriers in the preceding calendar year for such health benefit plans.

      4.  The board may, with the approval of the commissioner, change the formula for determining assessments against individual reinsuring carriers established pursuant to this section as necessary. The board may provide that, during any transitional period, the shares of the assessment base attributable to the total premiums and to the premiums of the previous year may vary.

      5.  Subject to the approval of the commissioner, the board shall adjust the formula for assessing individual reinsuring carriers that are approved health maintenance organizations which are federally qualified under 42 U.S.C. §§ 300 et seq., to the extent that any restrictions are placed on such individual reinsuring carriers that are not imposed on other individual carriers.

      6.  In determining the amount of net loss pursuant to this section, the board shall include any expenses incurred by the program of reinsurance in providing such reinsurance.

      Sec. 172.  1.  On or before March 1 of each year, the board shall determine, separately account for and file with the commissioner an estimate of the assessments needed to fund the losses incurred by the program of reinsurance in the previous calendar year for:

      (a) Reinsured small employer groups, eligible employees and the dependents of such employees; and

      (b) Reinsured eligible persons.

      2.  If the board determines that the amount of the assessments against reinsuring carriers needed to fund the losses incurred by the program of reinsurance in the previous calendar year will exceed 5 percent of the total premiums earned in the previous calendar year from health benefit plans delivered or issued for delivery in this state by reinsuring carriers and individual reinsuring carriers, the board shall evaluate the operation of the program of reinsurance and report its findings, including any recommendations for changes to the plan of operation, to the commissioner not later than 90 days after the end of the calendar year in which the losses were incurred. The evaluation must include an estimate of future assessments and administrative costs of the program of reinsurance, the appropriateness of the premium charged, the level of retention of insurers under the program of reinsurance and the costs of coverage for small employers. If the board fails to file the report timely with the commissioner, the commissioner may evaluate the operations of the program of reinsurance and make such amendments to the plan of operation as he determines to be necessary to reduce future losses and assessments.

      Sec. 173.  1.  If, in each of 2 consecutive years, the board determines that the amount of the assessment needed exceeds 5 percent of the total premiums earned in the previous calendar year from health benefit plans delivered or issued for delivery to small employers by reinsuring carriers, the program of reinsurance is eligible for additional funding pursuant to this section.


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

ê1997 Statutes of Nevada, Page 2937 (Chapter 586, AB 521)ê

 

delivered or issued for delivery to small employers by reinsuring carriers, the program of reinsurance is eligible for additional funding pursuant to this section.

      2.  If, in each of 2 consecutive years, the board determines that the amount of the assessment needed exceeds 5 percent of the total premiums earned in the previous calendar year from health benefit plans delivered or issued for delivery to individuals by individual reinsuring carriers, the program of reinsurance is eligible for additional funding pursuant to this section.

      3.  To raise such additional funding, the board shall establish a formula pursuant to which additional assessments may be made on all carriers that offer a health benefit plan or provide stop-loss coverage for a health benefit plan which is an employee-sponsored plan or a plan established pursuant to the Labor-Management Relations Act, 1947, as amended. The total additional assessments on all such carriers combined may not exceed one-half of 1 percent of the total premiums earned from all health benefit plans and stop-loss coverage issued in this state in the previous calendar year.

      Sec. 174.  1.  If the amount of the assessments exceeds the net losses of the program of reinsurance from reinsuring small employers and eligible employees, the excess amount must be retained by the board and used to offset future losses or to reduce the premiums of the reinsuring carriers.

      2.  If the amount of the assessments exceeds the net losses of the program of reinsurance from reinsuring eligible persons, the excess amount must be retained by the board and used to offset future losses or to reduce the premiums of the individual reinsuring carriers.

      3.  As used in this section, “future losses” includes reserves for claims that have been incurred, but have not yet been reported.

      Sec. 175.  1.  Each assessment against a reinsuring carrier and individual reinsuring carrier must be determined annually by the board based on annual statements and such other reports deemed relevant by the board and filed by the reinsuring carriers with the board.

      2.  The plan of operation must provide for the imposition of an interest penalty for late payment of assessments.

      3.  A reinsuring or individual reinsuring carrier may seek from the commissioner a deferment of any part of an assessment imposed by the board pursuant to section 170 of this act. The commissioner may defer any part of the assessment if he determines that the payment of the assessment would place the carrier in a financially impaired condition. If any amount of an assessment against a carrier is deferred pursuant to this subsection, the amount so deferred must be assessed against the other participating carriers in a manner consistent with section 170 of this act. A carrier receiving a deferment pursuant to this subsection remains liable to the program of reinsurance for the amount deferred and shall not reinsure any small employers, eligible employees or eligible persons with the program of reinsurance until the deferred assessment is paid.

      Sec. 175.3.  1.  The board shall issue to each insurer paying an assessment under section 173 of this act a certificate of contribution, in a form prescribed by the commissioner, for the amount so paid. All outstanding certificates are of equal dignity and priority without reference to the amounts or dates of issue.


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

ê1997 Statutes of Nevada, Page 2938 (Chapter 586, AB 521)ê

 

to the amounts or dates of issue. A member insurer may show a certificate of contribution as an asset in its financial statement in such form, for such amount, if any, and for such period as the commissioner may approve.

      2.  A carrier may offset against its liability for premium tax to this state, accrued with respect to business transacted in a calendar year, an amount equal to 20 percent of the amount certified pursuant to subsection 1 in each of the 5 calendar years following the year in which the assessment was paid. If an insurer ceases to transact business, it may offset all uncredited assessments against its liability for premium tax for the year in which it ceases to transact business.

      Sec. 175.7.  Subject to the approval of the commissioner, the board shall adjust the formula for assessing carriers that are approved health maintenance organizations which are federally qualified under 42 U.S.C. §§ 300 et seq., to the extent that any restrictions are placed on such carriers that are not imposed on other carriers.

      Sec. 176.  Except as otherwise provided in section 165 of this act, neither participation in the program of reinsurance as a reinsuring carrier or individual reinsuring carrier, the establishment of rates, forms or procedures, nor any other joint or collective action required by sections 145 to 182, inclusive, of this act may be the basis of any legal action, civil liability or penalty against the program of reinsurance or any of the participating reinsuring carriers and individual reinsuring carriers, either jointly or separately.

      Sec. 177.  As part of the plan of operation, the board shall develop standards that set forth the manner and levels of compensation that may be paid to producers for the sale of basic and standard health benefit plans issued in accordance with the program of reinsurance. In establishing such standards, the board shall consider:

      1.  The need to ensure the broad availability of coverages;

      2.  The objectives of the program of reinsurance;

      3.  The time and effort expended in placing the coverage;

      4.  The need to provide on-going service to small employers, eligible employees and eligible persons;

      5.  The level of compensation currently used in the industry; and

      6.  The overall cost of coverage to small employers, eligible employees and eligible persons selecting such coverage.

      Sec. 178.  The commissioner may, by regulation, prescribe standards for determining whether a policy issued as a stop-loss policy is a health benefit plan for the purposes of this chapter.

      Sec. 179.  1.  The committee on health benefit plans is hereby created consisting of eight members. The commissioner shall appoint to the committee representatives of carriers, small employers and eligible employees, eligible persons, health care providers, producers and third-party administrators.

      2.  Members of the committee serve without compensation, but while engaged in the business of the committee, each member is entitled to receive the per diem allowance or travel expenses provided for state officers and employees generally, to be paid from the proceeds of the assessments received by the program of reinsurance as an administrative expense of the program of reinsurance.


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

ê1997 Statutes of Nevada, Page 2939 (Chapter 586, AB 521)ê

 

received by the program of reinsurance as an administrative expense of the program of reinsurance.

      3.  After the initial term, the term of each appointed member is 3 years. Members may be reappointed. A member may be removed from the committee by the commissioner for good cause shown.

      4.  At the expiration of the term of a member, or if the member resigns or is otherwise unable to complete his term, the commissioner shall appoint a replacement not later than 30 days after the vacancy occurs.

      Sec. 180.  1.  The committee shall meet:

      (a) Until a plan of operation, other than a temporary plan of operation, has been approved by the commissioner, twice a year;

      (b) Once a plan of operation has been so approved, once a year; and

      (c) At such other times as the commissioner deems necessary.

      2.  The committee shall elect from its membership a chairman who shall serve for a term of 2 years. Any vacancy occurring in this position must be filled by election of the members of the committee for the remainder of the unexpired term.

      3.  The committee shall:

      (a) Recommend to the board the form and level of coverages to be made available by small employers pursuant to NRS 689C.190 and sections 121, 122 and 123 of this act, and by individual carriers pursuant to sections 48 to 52, inclusive, of this act.

      (b) Recommend to the board levels for benefits and cost sharing, exclusions and limitations for a basic health benefit plan and a standard health benefit plan.

      (c) Design a basic health benefit plan and a standard health benefit plan that are consistent with the basic method of operation and the benefit plans of health maintenance organizations authorized to transact insurance in this state, including any restrictions imposed by federal law.

      4.  The basic and standard health benefit plans recommended by the committee may include features for the containment of costs, including:

      (a) Utilization review of health care services, including a review of the medical necessity of hospital and physician services;

      (b) Case management;

      (c) Selective contracting with hospitals, physicians and other providers of health care;

      (d) Reasonable benefit differentials applicable to providers that participate and providers that do not participate in arrangements using a provision for a restricted network; and

      (e) Other provisions relating to managed care.

      5.  The committee shall submit its recommendations for a basic and a standard health benefit plan to the commissioner not later than 120 days after the date on which the committee is appointed.

      6.  As used in this section, “provision for a restricted network” means any provision of a health benefit plan that conditions the payment of benefits, in whole or in part, on the use of health care providers that have entered into a contractual arrangement with the carrier to provide health care services to persons covered by the plan.


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

ê1997 Statutes of Nevada, Page 2940 (Chapter 586, AB 521)ê

 

      Sec. 181.  1.  At least once every 3 years, the board, in consultation with the committee, shall study and submit a report to the commissioner concerning the effectiveness of sections 145 to 182, inclusive, of this act.

      2.  The report:

      (a) Must analyze the effectiveness of sections 145 to 182, inclusive, of this act in promoting the stability of rates, the availability of products and the affordability of coverage;

      (b) May contain recommendations for actions to improve the overall effectiveness, efficiency and fairness of the marketplace for health insurance for small employers and individuals;

      (c) Must address the issue of whether carriers and producers are fairly and actively marketing or issuing health benefit plans to small employers in accordance with the provisions of this chapter and to individuals in accordance with sections 2 to 57, inclusive, of this act; and

      (d) May contain recommendations for the regulation of the marketplace for health insurance for small employers and individuals and other regulatory standards or actions.

      Sec. 182.  Notwithstanding any specific statute to the contrary, a statute that requires the coverage of a specific health care service or benefit, or the reimbursement, utilization or inclusion of a specific category of licensed health care practitioner, is not applicable to a basic health benefit plan delivered or issued for delivery to small employers or eligible persons in this state pursuant to this chapter or chapter 689A of NRS.

      Sec. 183.  NRS 689C.015 is hereby amended to read as follows:

      689C.015  [As] Except as otherwise provided in this chapter, as used in [NRS 689C.015 to 689C.350, inclusive,] this chapter, unless the context otherwise requires, the words and terms defined in NRS 689C.025 to 689C.095, inclusive, and sections 94 to 116, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 184.  (Deleted by amendment.)

      Sec. 185.  NRS 689C.075 is hereby amended to read as follows:

      689C.075  1.  “Health benefit plan” means a policy or certificate for hospital or medical expenses, a contract for dental, hospital or medical services, or a health care plan of a health maintenance organization available for use, offered or sold to a small employer. [The term does not include coverage issued as a supplement to liability insurance, workers’ compensation or similar insurance, automobile medical payment insurance, accident insurance only policies, credit insurance, plans for dental care, optometric plans, coverage provided as a supplement to Medicare, coverage for long-term care, disability income or specified disease, hospital confinement indemnity, or limited-benefit health insurance if the requirements of NRS 689C.105 are satisfied.] Except as otherwise provided in this section, the term includes short-term and catastrophic health insurance policies, and a policy that pays on a cost-incurred basis.

      2.  The term does not include:

      (a) Coverage that is only for accident or disability income insurance, or any combination thereof;

      (b) Coverage issued as a supplement to liability insurance;


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

ê1997 Statutes of Nevada, Page 2941 (Chapter 586, AB 521)ê

 

      (c) Liability insurance, including general liability insurance and automobile liability insurance;

      (d) Workers’ compensation or similar insurance;

      (e) Coverage for medical payments under a policy of automobile insurance;

      (f) Credit insurance;

      (g) Coverage for on-site medical clinics; and

      (h) Other similar insurance coverage specified in federal regulations issued pursuant to Public Law 104-191 under which benefits for medical care are secondary or incidental to other insurance benefits.

      3.  If the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan, the term does not include the following benefits:

      (a) Limited-scope dental or vision benefits;

      (b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and

      (c) Such other similar benefits as are specified in any federal regulations adopted pursuant to Public Law 104-191.

      4.  If the benefits are provided under a separate policy, certificate or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and such benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor, the term does not include:

      (a) Coverage that is only for a specified disease or illness; and

      (b) Hospital indemnity or other fixed indemnity insurance.

      5.  If offered as a separate policy, certificate or contract of insurance, the term does not include:

      (a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, as that section existed on the effective date of this act;

      (b) Coverage supplemental to the coverage provided pursuant to chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of Uniformed Services (CHAMPUS)); and

      (c) Similar supplemental coverage provided under a group health plan.

      Sec. 186.  NRS 689C.095 is hereby amended to read as follows:

      689C.095  1.  “Small employer” means any person or governmental entity actively engaged in a business [which, on at least one-half of its working days during the preceding year, employed no fewer than 2 and no more than 25 employees, which] :

      (a) Which, with respect to a calendar year and a plan year, employed on business days during the preceding calendar year an average of at least 2, but not more than 50 employees, a majority of whom are residents of this state, who have a normal work week of 30 hours or more, and which employs at least 2 employees on the first day of the plan year;

      (b) Which was not formed primarily for the purpose of purchasing insurance [, and in] ; and


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

ê1997 Statutes of Nevada, Page 2942 (Chapter 586, AB 521)ê

 

      (c) In which a relationship between the employer and the employees exists in good faith.

For the purposes of determining the number of eligible employees, organizations which are affiliated or which are eligible to file a combined tax return for the purposes of taxation constitute one employer.

      2.  For the purposes of this section, organizations are “affiliated” if one directly, or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, the other, as determined pursuant to the provisions of NRS 692C.050.

      Sec. 187.  NRS 689C.155 is hereby amended to read as follows:

      689C.155  The commissioner may adopt regulations to carry out the provisions of NRS 689C.115 to 689C.145, inclusive, and sections 94 to 143, inclusive, and 145 to 182, inclusive, of this act, and to ensure that rating practices used by carriers serving small employers are consistent with those sections, including regulations that:

      1.  Ensure that differences in rates charged for health benefit plans by such carriers are reasonable and reflect only differences in the designs of the plans, the terms of the coverage, the amount contributed by the employers to the cost of coverage and differences based on the rating factors established by the carrier.

      2.  Prescribe the manner in which characteristics may be used by such carriers.

      Sec. 188.  NRS 689C.170 is hereby amended to read as follows:

      689C.170  1.  A carrier serving small employers may vary the application of requirements for minimum participation of eligible employees and minimum employer’s contributions only by the size of the small employer’s group.

      2.  In applying requirements for minimum participation with respect to a small employer, a carrier shall not consider employees or dependents who have [qualifying existing] creditable coverage when determining whether the applicable percentage of participation is met, but may consider employees or dependents who have coverage under another health benefit plan that is sponsored by the employer.

      3.  A carrier shall not deny an application for coverage solely because the applicant works in a certain industry.

      4.  After a small employer has been accepted for coverage, a carrier shall not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to the small employer.

      Sec. 189.  NRS 689C.180 is hereby amended to read as follows:

      689C.180  1.  If a carrier serving small employers offers coverage to a small employer, the carrier shall offer the same coverage to all of the eligible employees of the small employer and their dependents. A carrier shall not offer coverage to only certain members of a small employer’s group or to only part of the group, but may exclude an otherwise eligible employee, or his dependent, who requests enrollment in a health benefit plan after the end of the initial period during which the employee or dependent is entitled to enroll under the terms of the plan, if the initial period is at least 30 days.


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

ê1997 Statutes of Nevada, Page 2943 (Chapter 586, AB 521)ê

 

      2.  A carrier shall not exclude an eligible employee or dependent if:

      (a) The employee or dependent:

             (1) Was covered under other [qualifying] creditable coverage at the time of the initial period for enrollment;

             (2) Lost coverage under the other [qualifying] creditable coverage as a result of termination of employment or eligibility, the involuntary termination of the [qualifying] creditable coverage, the death of a spouse or divorce; and

             (3) Requests enrollment within 30 days after termination of the other [qualifying] creditable coverage;

      (b) The employee is employed by an employer that offers multiple health benefit plans and elects a different plan during an open period for enrollment; or

      (c) A court has ordered that coverage be provided for a dependent under a covered employee’s health benefit plan and the request for enrollment is made within 30 days after issuance of the court order.

      [3.  As used in this section, “qualifying coverage” means benefits or coverage provided under:

      (a) Medicare or Medicaid; or

      (b) A plan of health insurance or health benefits which provides basic medical and hospital care, including, without limitation, emergency care, inpatient and outpatient hospital services, physicians’ services, outpatient medical services, and laboratory and X-ray services.]

      Sec. 190.  NRS 689C.190 is hereby amended to read as follows:

      689C.190  1.  Except as otherwise provided in [subsection 2,] this section, a carrier serving small employers that issues a health benefit plan shall not deny, exclude or limit a [covered] benefit for a preexisting condition:

      (a) For more than [6] 12 months after the effective date of coverage if the employee enrolls through open enrollment [.

      (b) For more than 6 months after the effective date of coverage if the employee is a qualified late enrollee.

      (c) For more than 12 months after the effective date of coverage if the employee is not a qualified late enrollee and enrolls after the close of open enrollment.

      2.  A carrier that issues a health benefit plan shall not deny, exclude or limit coverage for a preexisting condition during the 6 months immediately following the effective date of coverage if the employee had existing coverage continuously for up to not more than 90 days before the effective date of coverage under the health benefit plan, excluding any] or after the first day of the waiting period for such enrollment, whichever is earlier; or

      (b) For more than 18 months after the effective date of coverage for a late enrollee. A carrier may not define a preexisting condition in its health benefit plan more restrictively than that term is defined in section 109 of this act.

      2.  The period of any exclusion for a preexisting condition imposed by a health benefit plan on a person to be insured in accordance with the provisions of this chapter must be reduced by the aggregate period of creditable coverage of that person, if the creditable coverage was continuous to a date not more than 63 days before the effective date of the new coverage.


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

ê1997 Statutes of Nevada, Page 2944 (Chapter 586, AB 521)ê

 

continuous to a date not more than 63 days before the effective date of the new coverage. The period of continuous coverage must not include:

      (a) Any waiting period for the effective date of the new coverage applied by the employer or the carrier; or

      (b) Any affiliation period , not to exceed 60 days for a new enrollee and 90 days for a late enrollee, required before becoming eligible to enroll in the health benefit plan.

      3.  A [carrier] health maintenance organization authorized to transact insurance pursuant to chapter 695C of NRS that does not restrict coverage for a preexisting condition may require an affiliation period before coverage becomes effective under a plan of insurance if the affiliation period applies uniformly to all employees [. An insurer that imposes an affiliation period may require an employee to be employed for not more than:

      (a) Sixty days after the employee enrolls in the plan of insurance through open enrollment;

      (b) Sixty days after the employee enrolls in the plan of insurance if he is a qualified late enrollee; or

      (c) One hundred eighty days after the employee enrolls in the plan if he is not a qualified late enrollee and enrolls after the close of open enrollment, before coverage of the employee becomes effective.] and without regard to any health status-related factors. During the affiliation period , the carrier shall not collect any premiums for coverage of the employee.

      4.  [An insurer] A carrier that restricts coverage for preexisting conditions shall not impose an affiliation period.

      5.  A carrier shall not impose any exclusion for a preexisting condition:

      (a) Relating to pregnancy.

      (b) In the case of a person who, as of the last day of the 30-day period beginning on the date of his birth, is covered under creditable coverage.

      (c) In the case of a child who is adopted or placed for adoption before attaining the age of 18 years and who, as of the last day of the 30-day period beginning on the date of adoption or placement for adoption, whichever is earlier, is covered under creditable coverage. The provisions of this paragraph do not apply to coverage before the date of adoption or placement for adoption.

      (d) In the case of a condition for which medical advice, diagnosis, care or treatment was recommended or received for the first time while the covered person held creditable coverage, and the medical advice, diagnosis, care or treatment was a covered benefit under the plan, if the creditable coverage was continuous to a date not more than 90 days before the effective date of the new coverage.

The provisions of paragraphs (b) and (c) do not apply to a person after the end of the first 63-day period during all of which the person was not covered under any creditable coverage.

      6.  As used in this section [:

      (a) “Affiliation period” means a period of time during which an employee must be employed by his current employer.

      (b) “Open enrollment” means the period of time designated for enrollment in a health benefit plan.


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

ê1997 Statutes of Nevada, Page 2945 (Chapter 586, AB 521)ê

 

      (c) “Preexisting condition” means a condition for which medical advice, diagnosis, care or treatment was recommended or received during the 6 months immediately preceding the effective date of coverage.

      (d) “Qualified late enrollee” means:

             (1) An eligible employee or his dependent:

                   (I) Who enrolls in a plan of insurance after the close of open enrollment;

                   (II) Who was insured under existing coverage at the time of open enrollment;

                   (III) Whose existing coverage was canceled because of an unforeseen event; and

                   (IV) Who requests enrollment in the plan of insurance not more than 30 days after his existing coverage is canceled.

             (2) An eligible employee or his dependent who enrolls in a health benefit plan during the period for open enrollment offered by his employer and then seeks to change to a different health benefit plan offered by the employer after the close of open enrollment.

             (3) An eligible employee or his dependent for whom a court has ordered the carrier to provide coverage and who requests to be enrolled in a health benefit plan not later than 30 days after the court order is issued.] , “late enrollee” means an eligible employee, or his dependent, who requests enrollment in a health benefit plan of a small employer following the initial period of enrollment, if the initial period of enrollment is at least 30 days, during which the person is entitled to enroll under the terms of the health benefit plan. The term does not include an eligible employee or his dependent if:

      (a) The employee or dependent:

             (1) Was covered under creditable coverage at the time of the initial enrollment;

             (2) Lost coverage under creditable coverage as a result of cessation of employer contribution, termination of employment or eligibility, reduction in the number of hours of employment, involuntary termination of creditable coverage, or the death of, or divorce or legal separation from, a covered spouse; and

             (3) Requests enrollment not later than 30 days after the date on which his creditable coverage was terminated or on which the change in conditions that gave rise to the termination of the coverage occurred.

      (b) The person enrolls during the open enrollment period, as provided in the contract or as otherwise provided by specific statute.

      (c) The person is employed by an employer which offers multiple health benefit plans and the person elected a different plan during an open enrollment period.

      (d) A court has ordered coverage to be provided to the spouse or a minor or dependent child of an employee under a health benefit plan of the employee and a request for enrollment is made within 30 days after the issuance of the court order.

      (e) The person changes status from not being an eligible employee to being an eligible employee and requests enrollment, subject to any waiting period, within 30 days after the change in status.


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

ê1997 Statutes of Nevada, Page 2946 (Chapter 586, AB 521)ê

 

      (f) The person has continued coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 and such coverage has been exhausted.

      Sec. 191.  NRS 689C.200 is hereby amended to read as follows:

      689C.200  [1.] A carrier serving small employers is not required [:

      (a)  To] to accept applications from or offer coverage to:

      [(1)]1.  A small employer if the employer is not physically located in the carrier’s established geographic area; or

      [(2)]2.  An employee if the employee does not work or reside within the carrier’s established geographic area . [; or

      (b) To offer coverage within an area where the carrier reasonably anticipates, and demonstrates to the satisfaction of the commissioner, that it does not have the capacity to provide service adequately to an applicant because of its obligations to existing policyholders and enrollees. A carrier that cannot offer coverage pursuant to this paragraph may not offer coverage in the applicable area to any new employer group having more than 25 employees or to any small employer until the later of 180 days after each such refusal or the date on which the carrier notifies the commissioner that it has regained capacity to offer health benefit plans to small employers in the area.

      2.  As used in this section, “established geographic area” means a geographic area approved by the commissioner and based on the carrier’s certificate of authority to transact insurance in this state within which the carrier is authorized to provide coverage.]

      Sec. 191.3.  NRS 689C.210 is hereby amended to read as follows:

      689C.210  1.  Except as otherwise provided in subsection 3, a carrier shall not increase the premium rate charged to a small employer for a new rating period by a percentage greater than the sum of:

      (a) The percentage of change in the premium rate for new business for the policy under which the small employer is covered, measured from the first day of the previous rating period to the first day of the new rating period;

      (b) An adjustment, not to exceed 15 percent annually, adjusted pro rata for rating periods of less than 1 year, on account of the claim experience, health status, or duration of coverage of the employees or dependents of the small employer as determined from the carrier’s rate manual for the class of business; and

      (c) Any adjustment on account of change in coverage or change in the characteristics of the small employer as determined from the carrier’s rate manual for the class of business.

      2.  If the carrier no longer issues new policies for that class of business, the carrier shall use the percentage of change in the premium rate for new business for the class of business which is most similar to the closed class of business and for which the carrier is issuing new policies.

      3.  In the case of health benefit plans delivered or issued for delivery before January 1, 1996, for groups with no fewer than 2 and no more than 25 employees, or before July 1, 1997, for groups with no fewer than 26 and no more than 50 employees, a premium rate for a rating period may exceed the ranges set forth in paragraphs (a) and (b) of subsection 1 for a period of 3 years following that date.


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

ê1997 Statutes of Nevada, Page 2947 (Chapter 586, AB 521)ê

 

3 years following that date. In that case, the percentage of increase in the premium rate charged to a small employer for a new rating period may not exceed the sum of:

      (a) The percentage of change in the premium rate for new business measured from the first day of the previous rating period to the first day of the new rating period. In the case of a health benefit plan into which the carrier is no longer enrolling new small employers, the carrier shall use the percentage of change in the base premium rate if that change does not exceed, on a percentage basis, the change in the premium rate for new business for the most similar health benefit plan into which the carrier is actively enrolling new small employers.

      (b) Any adjustment on account of change in coverage or change in the characteristics of the small employer as determined from the carrier’s rate manual for the class of business.

      [4.  As used in this section, “premium rate for new business” means, for each class of business as to a rating period, the lowest premium rate charged or offered or which could have been charged or offered by the carrier to small employers with similar characteristics for newly issued health benefit plans with the same or similar coverage.]

      Sec. 191.5.  NRS 689C.230 is hereby amended to read as follows:

      689C.230  1.  The index rate for a rating period for any class of business may not exceed the index rate for any other class of business by more than 20 percent.

      2.  For a class of business, the premium rates charged during a rating period to small employers with similar characteristics for the same or similar coverage, or the rates that could be charged to such employers under the rating system for that class of business, may not vary , because of health status-related factors, from the index rate by more than [25] 30 percent.

      3.  As used in this section:

      (a) “Base premium rate” means, for each class of business as to a rating period, the lowest premium rate charged or that could have been charged under a rating system for that class of business by the carrier to small employers with similar characteristics for health benefit plans subject to regulation by the commissioner.

      (b) “Index rate” means, for each class of business as to a rating period for small employers with similar characteristics, the arithmetic average of the applicable base premium rate and the corresponding highest premium rate.

      Sec. 192.  NRS 689C.270 is hereby amended to read as follows:

      689C.270  1.  The commissioner shall adopt regulations which require a carrier to file with the commissioner, for his approval, a disclosure offered by the carrier to a small employer. The disclosure must include:

      (a) Any significant exception, reduction or limitation that applies to the policy;

      (b) Any restrictions on payments for emergency care, including, without limitation, related definitions of an emergency and medical necessity;


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

ê1997 Statutes of Nevada, Page 2948 (Chapter 586, AB 521)ê

 

      (c) The provision of the health benefit plan concerning the carrier’s right to change premium rates and the characteristics, other than claim experience, that affect changes in premium rates;

      (d) The provisions relating to renewability of policies and contracts;

      (e) The provisions relating to any preexisting condition; and

      (f) Any other information that the commissioner finds necessary to provide for full and fair disclosure of the provisions of a policy or contract of insurance issued pursuant to this chapter.

      2.  The disclosure must be written in language which is easily understood and must include a statement that the disclosure is a summary of the policy only, and that the policy itself should be read to determine the governing contractual provisions.

      3.  The commissioner shall not approve any proposed disclosure submitted to him pursuant to this section which does not comply with the requirements of this section and the applicable regulations.

      4.  The carrier shall make available to a small employer upon request a copy of the disclosure approved by the commissioner pursuant to this section for policies of health insurance for which that employer may be eligible.

      Sec. 193.  NRS 689C.310 is hereby amended to read as follows:

      689C.310  1.  Except as otherwise provided in subsections 2 and 3, a carrier shall renew a health benefit plan at the option of the small employer who purchased the plan.

      2.  A carrier may refuse to issue or to renew a health benefit plan if:

      (a) The carrier discontinues transacting insurance in this state or in the geographic area of this state where the employer is located;

      (b) The employer fails to pay the premiums or contributions required by the terms of the plan;

      (c) The employer misrepresents any information regarding the employees covered under the plan or other information regarding eligibility for coverage under the plan; [or]

      (d) The plan sponsor has engaged in an act or practice that constitutes fraud to obtain or maintain coverage under the plan;

      (e) The employer is not in compliance with the minimum requirements for participation or employer contribution as set forth in the plan; or

      (f) The employer fails to comply with any of the provisions of this chapter.

      3.  A carrier may require a small employer to exclude a particular employee or his dependent from coverage under a health benefit plan as a condition to renewal of the plan if the employee or his dependent commits fraud upon the carrier or misrepresents a material fact which affects his coverage under the plan.

      4.  [If a carrier cancels a health benefit plan, it may deny coverage to the small employer for such period and under such conditions as are specified by the commissioner.] A carrier shall discontinue the issuance and renewal of coverage to a small employer if the commissioner finds that the continuation of the coverage would not be in the best interests of the policyholders or certificate holders of the carrier in this state or would impair the ability of the carrier to meet its contractual obligations. If the commissioner makes such a finding, the commissioner shall assist the affected small employers in finding replacement coverage.


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

ê1997 Statutes of Nevada, Page 2949 (Chapter 586, AB 521)ê

 

commissioner makes such a finding, the commissioner shall assist the affected small employers in finding replacement coverage.

      5.  A carrier may discontinue the issuance and renewal of a form of a product of a health benefit plan offered to small employers pursuant to this chapter if the commissioner finds that the form of the product offered by the carrier is obsolete and is being replaced with comparable coverage. A form of a product of a health benefit plan may be discontinued by a carrier pursuant to this subsection only if:

      (a) The carrier notifies the commissioner and the chief regulatory officer for insurance in each state in which it is licensed of its decision pursuant to this subsection to discontinue the issuance and renewal of the form of the product at least 60 days before the carrier notifies the affected small employers pursuant to paragraph (b).

      (b) The carrier notifies each affected small employer and the commissioner and the chief regulatory officer for insurance in each state in which any affected small employer is located or eligible employee resides of the decision of the carrier to discontinue offering the form of the product. The notice must be made at least 180 days before the date on which the carrier will discontinue offering the form of the product.

      (c) The carrier offers to each affected small employer the option to purchase any other health benefit plan currently offered by the carrier to small employers in this state.

      (d) In exercising the option to discontinue the particular form of the product and in offering the option to purchase other coverage pursuant to paragraph (c), the carrier acts uniformly without regard to the claims experience of the affected small employers or any health status-related factor relating to any participant or beneficiary covered by the discontinued product or any new participant or beneficiary who may become eligible for such coverage.

      6.  A carrier may discontinue the issuance and renewal of a health benefit plan offered to a small employer or an eligible employee pursuant to this chapter only through a bona fide association if:

      (a) The membership of the small employer or eligible employee in the association was the basis for the provision of coverage;

      (b) The membership of the small employer or eligible employee in the association ceases; and

      (c) The coverage is terminated pursuant to this subsection uniformly without regard to any health status-related factor relating to the small employer or eligible employee or his dependent.

      7.  If a carrier does business in only one established geographic service area of this state, the provisions of this section apply only to the operations of the carrier in that service area.

      Sec. 194.  NRS 689C.320 is hereby amended to read as follows:

      689C.320  1.  A carrier that discontinues transacting insurance in this state or in a particular geographic area of this state shall:

      (a) Notify the commissioner and the chief regulatory officer for insurance in each state in which the carrier is licensed to transact insurance at least 60 days before a notice of cancellation or nonrenewal is delivered or mailed to the affected small employers pursuant to paragraph (b).


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

ê1997 Statutes of Nevada, Page 2950 (Chapter 586, AB 521)ê

 

      (b) Notify the commissioner and each small employer affected not less than 180 days before the expiration of any policy or contract of insurance under any health benefit plan issued to a small employer pursuant to this chapter.

      [(b) Notify each small employer affected not less than 180 days before coverage under the health benefit plan of the employer expires.]

      2.  A carrier that cancels any health benefit plan because it has discontinued transacting insurance in this state or in a particular geographic area of this state [may] :

      (a) Shall discontinue the issuance and delivery for issuance of all health benefit plans pursuant to this chapter in this state and not renew coverage under any health benefit plan issued to a small employer; and

      (b) May not issue any health benefit plans pursuant to this chapter in this state or in the particular geographic area for [30 months] 5 years after it gives notice to the commissioner pursuant to paragraph (b) of subsection 1.

      Sec. 195.  NRS 689C.340 is hereby amended to read as follows:

      689C.340  1.  Except as otherwise provided in this section, if an employer who employs less than 20 employees maintains a health benefit plan which covers those employees, the plan must contain a provision which permits:

      (a) An employee to elect to continue identical coverage under the plan, excluding coverage provided for eye or dental care, if:

             (1) His employment is terminated for any reason other than gross misconduct; or

             (2) The number of his working hours is reduced so that he ceases to be eligible for coverage.

      (b) The spouse or dependent child of an employee to elect to continue coverage, excluding any coverage provided for eye or dental care, if:

             (1) The employee’s employment is terminated for any reason other than gross misconduct or the number of his working hours is reduced so that he ceases to be eligible for coverage;

             (2) The employee dies;

             (3) The employee and his spouse are divorced or legally separated;

             (4) The dependent child ceases to be eligible for coverage under the terms of the policy; or

             (5) The spouse ceases to be eligible for coverage after becoming eligible for Medicare.

      2.  The period of continued coverage is limited to:

      (a) Eighteen months for an employee.

      (b) Thirty-six months for the dependent of an employee.

      3.  An employee who voluntarily leaves his employment, or the dependent of that employee, is not eligible to continue coverage pursuant to this section.

      4.  An employee or his dependent who has not been covered under a health benefit plan of the employer for at least 12 consecutive months before the termination of his coverage is not eligible to continue coverage pursuant to this section.

      5.  A provision for continued coverage must include coverage for any child born to, legally adopted by or placed for adoption with the employee during the period of continued coverage.


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

ê1997 Statutes of Nevada, Page 2951 (Chapter 586, AB 521)ê

 

during the period of continued coverage. Such a child is eligible for continued coverage only to the end of the period of continued coverage as established pursuant to subsection 2.

      Sec. 196.  NRS 689C.360 is hereby amended to read as follows:

      689C.360  As used in NRS 689C.360 to 689C.600, inclusive, and section 144 of this act, unless the context otherwise requires, the words and terms defined in NRS [689C.360] 689C.380 to 689C.420, inclusive, have the meanings ascribed to them in those sections.

      Sec. 197.  NRS 689C.460 is hereby amended to read as follows:

      689C.460  1.  If a carrier offers a contract to a voluntary purchasing group, the carrier shall offer the same coverage to all of the eligible employees of the small employers that are members of the voluntary purchasing group and their dependents. A carrier shall not offer coverage to only certain members of that group or to only part of that group, but may exclude an otherwise eligible employee, or his dependent, who requests enrollment in the contract after the end of the initial period during which the employee or dependent is entitled to enroll under the terms of the contract, if the initial period is at least 30 days.

      2.  A carrier shall not exclude an eligible employee or dependent if:

      (a) The employee or dependent:

             (1) Was covered under other [qualifying] creditable coverage at the time of the initial period for enrollment;

             (2) Lost coverage under the other [qualifying] creditable coverage as a result of termination of employment or eligibility, the involuntary termination of the [qualifying] creditable coverage, the death of a spouse or divorce; and

             (3) Requests enrollment within 30 days after termination of the other [qualifying] creditable coverage;

      (b) The employee is employed by an employer that offers multiple contracts and elects a different contract during an open period for enrollment; or

      (c) A court has ordered that coverage be provided for a dependent under a covered employee’s contract and the request for enrollment is made within 30 days after issuance of the court order.

      [3.  As used in this section, “qualifying coverage” means benefits or coverage provided under:

      (a) Medicare or Medicaid; or

      (b) A plan of health insurance or health benefits which provides basic medical and hospital care, including, without limitation, emergency care, inpatient and outpatient hospital services, physicians’ services, outpatient medical services, and laboratory and X-ray services.]

      Sec. 198.  NRS 689C.470 is hereby amended to read as follows:

      689C.470  1.  Except as otherwise provided in NRS 689C.360 to 689C.600, inclusive, and section 144 of this act, a carrier shall renew a contract as to all insured small employers that are members of a voluntary purchasing group and their employees and dependents at the request of the purchaser unless:

      [1.](a) Required premiums are not paid;


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

ê1997 Statutes of Nevada, Page 2952 (Chapter 586, AB 521)ê

 

      [2.](b) The insured employer or other purchaser is guilty of fraud or misrepresentation;

      [3.](c) Provisions of the contract are breached;

      [4.](d) The number or percentage of employees covered under the contract is less than the number or percentage of eligible employees required by the contract;

      [5.](e) The employer or purchaser is no longer engaged in the business in which it was engaged on the effective date of the contract; or

      [6.](f) The commissioner finds that the continuation of the coverage is not in the best interests of the persons insured under the contract or would impair the carrier’s ability to meet its contractual obligations. If nonrenewal occurs as a result of findings pursuant to this subsection, the commissioner shall assist affected persons in replacing coverage.

      2.  A carrier may discontinue issuance and renewal of a form of a product of a health benefit plan offered to a small employer or purchasers pursuant to NRS 689C.360 to 689C.600, inclusive, and section 144 of this act if the commissioner finds that the form of the product offered by the carrier is obsolete and is being replaced with comparable coverage. A form of a product of a health benefit plan may be discontinued by a carrier pursuant to this subsection only if:

      (a) The carrier notifies the commissioner and the chief regulatory officer for insurance in each state in which it is licensed of its decision pursuant to this subsection to discontinue offering and renewing the form of the product at least 60 days before the carrier notifies the affected small employers and purchasers pursuant to paragraph (b).

      (b) The carrier notifies each affected small employer and purchaser, and the commissioner and the chief regulatory officer for insurance in each state in which any affected small employer is located or employee resides, of the decision of the carrier to discontinue offering the form of the product. The notice must be made at least 180 days before the date on which the carrier will discontinue offering the form of the product.

      (c) The carrier offers to each affected small employer and purchaser the option to purchase any other health benefit plan currently offered by the carrier to small employers in this state.

      (d) In exercising the option to discontinue the particular form of the product and in offering the option to purchase other coverage pursuant to paragraph (c), the carrier acts uniformly without regard to the claim experience of the affected small employers and any health status-related factor relating to any participant or beneficiary covered by the discontinued product or any new participant or beneficiary who may become eligible for such coverage.

      3.  A carrier may discontinue the issuance and renewal of a health benefit plan offered to a voluntary purchasing group pursuant to this chapter only through a bona fide association if:

      (a) The membership of the small employer who employs the members of the voluntary purchasing group or the purchaser in the association was the basis for the provision of coverage;

      (b) The membership of that small employer or the purchaser in the association ceases; and


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

ê1997 Statutes of Nevada, Page 2953 (Chapter 586, AB 521)ê

 

      (c) The coverage is terminated pursuant to this subsection uniformly without regard to any health status-related factor relating to the small employer or the purchaser or his dependent.

      Sec. 199.  NRS 689C.480 is hereby amended to read as follows:

      689C.480  1.  A carrier may cease to renew all contracts covering voluntary purchasing groups [.] and discontinue issuing and delivering for issuance any such contracts. The carrier shall provide notice [at] :

      (a) At least 60 days before the notice of termination is provided pursuant to paragraph (b), to the commissioner and the chief regulatory officer for insurance of each state in which the carrier is licensed to transact insurance; and

      (b) At least 180 days before termination of coverage to holders of all affected contracts and to the commissioner and the chief regulatory officer for insurance in each state in which an affected insured person is known to reside.

      2.  A carrier that exercises its right to cease to renew all contracts covering voluntary purchasing groups shall not [:

      (a) Enter into a new contract with a voluntary purchasing group for a period of 30 months after the nonrenewal without prior approval of the commissioner; or

      (b) Transfer] transfer or otherwise provide coverage to any of the insureds from a nonrenewed voluntary purchasing group unless the carrier offers to transfer or provide coverage to all affected employers and eligible employees and dependents without regard to characteristics of the insured, experience as to claims, health or duration of coverage.

      3.  A carrier that decides to terminate its contracts and to discontinue issuing and delivering for issuance any contracts pursuant to this section:

      (a) Shall discontinue issuance and delivery for issuance all health benefit plans pursuant to this chapter in this state and, except as otherwise provided in this section, not renew any such contracts; and

      (b) Shall not enter into any new contract with a voluntary purchasing group for 5 years after the date on which the carrier terminated its contracts with voluntary purchasing groups.

      Sec. 200.  NRS 689C.490 is hereby amended to read as follows:

      689C.490  1.  A small employer may, in accordance with the provisions of NRS 689C.490 to 689C.600, inclusive, choose to affiliate voluntarily with other small employers as a voluntary purchasing group to purchase health benefits for eligible employees and their dependents.

      2.  An employer who affiliates with a voluntary purchasing group shall notify the carrier for that group when the employer has less than 2 or more than [25] 50 employees. The carrier shall:

      (a) Upon receiving such a notification, inform the employer of the provisions of paragraph (b).

      (b) If the employer ceases to be a small employer, refuse to renew the coverage of that employer and his employees and their dependents under any contract provided through the voluntary purchasing group.


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

ê1997 Statutes of Nevada, Page 2954 (Chapter 586, AB 521)ê

 

      Sec. 201.  Chapter 695A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  To the extent reasonably applicable, a fraternal benefit society shall comply with the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and availability of health insurance offered by the society to its members. If there is a conflict between the provisions of this chapter and the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS, the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS control.

      2.  For the purposes of subsection 1, unless the context requires that a provision apply only to a group health plan or a carrier that provides coverage under a group health plan, any reference in those sections to “group health plan” or “carrier” must be replaced by “fraternal benefit society.”

      Sec. 202.  NRS 695A.159 is hereby amended to read as follows:

      695A.159  1.  If a person:

      (a) Adopts a dependent child; or

      (b) Assumes and retains a legal obligation for the total or partial support of a dependent child in anticipation of adopting the child,

while the person is eligible for group coverage under a certificate for health benefits, the society issuing that certificate shall not restrict the coverage , in accordance with sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and availability of health insurance, of the child solely because of a preexisting condition the child has at the time he would otherwise become eligible for coverage pursuant to that policy.

      2.  For the purposes of this section, “child” means a person who is under 18 years of age at the time of his adoption or the assumption of a legal obligation for his support in anticipation of his adoption.

      Sec. 203.  Chapter 695B of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Nonprofit hospital and medical or dental service corporations are subject to the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and availability of health insurance offered by such organizations. If there is a conflict between the provisions of this chapter and the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS, the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS control.

      2.  For the purposes of subsection 1, unless the context requires that a provision apply only to a group health plan or a carrier that provides coverage under a group health plan, any reference in those sections to:

      (a) “Group health plan” must be replaced by “group contract for hospital, medical or dental services.”

      (b) “Carrier” must be replaced by “corporation.”

      Sec. 204.  NRS 695B.187 is hereby amended to read as follows:

      695B.187  Except as otherwise provided by the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and availability of health insurance:


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

ê1997 Statutes of Nevada, Page 2955 (Chapter 586, AB 521)ê

 

      1.  A group contract for hospital, medical or dental services issued by a nonprofit hospital, medical or dental service corporation to replace any discontinued policy or coverage for group health insurance must:

      (a) Provide coverage for all persons who were covered under the previous policy or coverage on the date it was discontinued; and

      (b) Except as otherwise provided in subsection 2, provide benefits which are at least as extensive as the benefits provided by the previous policy or coverage, except that the benefits may be reduced or excluded to the extent that such a reduction or exclusion was permissible under the terms of the previous policy or coverage,

if that contract is issued within 60 days after the date on which the previous policy or coverage was discontinued.

      2.  If an employer obtains a replacement contract pursuant to subsection 1 to cover his employees, any benefits provided by the previous policy or coverage may be reduced if notice of the reduction is given to his employees pursuant to NRS 608.1577.

      3.  Any corporation which issues a replacement contract pursuant to subsection 1 may submit a written request to the insurer which provided the previous policy or coverage for a statement of benefits which were provided under that policy or coverage. Upon receiving such a request, the insurer shall give a written statement to the corporation which indicates what benefits were provided and what exclusions or reductions were in effect under the previous policy or coverage.

      4.  The provisions of this section apply to a self-insured employer who provides health benefits to his employees and replaces those benefits with a group contract for hospital, medical or dental services issued by a nonprofit hospital, medical or dental service corporation.

      Sec. 205.  NRS 695B.189 is hereby amended to read as follows:

      695B.189  A group contract issued by a corporation under the provisions of this chapter must contain a provision which permits the continuation of coverage pursuant to the provisions of NRS 689B.245 to 689B.249, inclusive [.] , sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and availability of health insurance.

      Sec. 206.  NRS 695B.192 is hereby amended to read as follows:

      695B.192  1.  No hospital, medical or dental service contract issued by a corporation [under] pursuant to the provisions of this chapter may contain any exclusion, reduction or other limitation of coverage relating to complications of pregnancy, unless the provision applies generally to all benefits payable under the contract [.] and complies with the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and availability of health insurance.

      2.  As used in this section, the term “complications of pregnancy” includes any condition which requires hospital confinement for medical treatment and:

      (a) If the pregnancy is not terminated, is caused by an injury or sickness not directly related to the pregnancy or by acute nephritis, nephrosis, cardiac decompensation, missed abortion or similar medically diagnosed conditions; or


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

ê1997 Statutes of Nevada, Page 2956 (Chapter 586, AB 521)ê

 

      (b) If the pregnancy is terminated, results in nonelective cesarean section, ectopic pregnancy or spontaneous termination.

      3.  A contract subject to the provisions of this chapter which is issued or delivered on or after July 1, 1977, has the legal effect of including the coverage required by this section, and any provision of the contract which is in conflict with this section is void.

      Sec. 207.  NRS 695B.193 is hereby amended to read as follows:

      695B.193  1.  All individual and group service or indemnity-type contracts issued by a nonprofit corporation which provide coverage for a family member of the subscriber must as to such coverage provide that the health benefits applicable for children are payable with respect to:

      (a) A newly born child of the subscriber from the moment of birth;

      (b) An adopted child from the date the adoption becomes effective, if the child was not placed in the home before adoption; and

      (c) A child placed with the subscriber for the purpose of adoption from the moment of placement as certified by the public or private agency making the placement. The coverage of such a child ceases if the adoption proceedings are terminated as certified by the public or private agency making the placement.

The contracts must provide the coverage specified in subsection 3, and must not exclude premature births.

      2.  The contract may require that notification of:

      (a) The birth of a newly born child;

      (b) The effective date of adoption of a child; or

      (c) The date of placement of a child for adoption,

and payments of the required fees, if any, must be furnished to the nonprofit service corporation within 31 days after the date of birth, adoption or placement for adoption in order to have the coverage continue beyond the 31-day period.

      3.  The coverage for newly born and adopted children and children placed for adoption consists of coverage of injury or sickness, including the necessary care and treatment of medically diagnosed congenital defects and birth abnormalities and, within the limits of the policy, necessary transportation costs from place of birth to the nearest specialized treatment center under major medical policies, and with respect to basic policies to the extent such costs are charged by the treatment center.

      4.  A corporation shall not restrict the coverage of a dependent child adopted or placed for adoption solely because of a preexisting condition the child has at the time he would otherwise become eligible for coverage pursuant to that contract. Any provision relating to an exclusion for a preexisting condition must comply with NRS 689C.190.

      5.  For covered services provided to the child, the corporation shall reimburse noncontracted providers of health care to an amount equal to the average amount of payment for which the organization has agreements, contracts or arrangements for those covered services.

      Sec. 208.  NRS 695B.251 is hereby amended to read as follows:

      695B.251  1.  Except as otherwise provided in [subsection 3,] the provisions of this section and sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and availability of health insurance, all group subscriber contracts delivered or issued for delivery in this state providing for hospital, surgical or major medical coverage, or any combination of these coverages, on a service basis or an expense-incurred basis, or both, must contain a provision that the employee or member is entitled to have issued to him a subscriber contract of health coverage when the employee or member is no longer covered by the group subscriber contract.


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

ê1997 Statutes of Nevada, Page 2957 (Chapter 586, AB 521)ê

 

insurance, all group subscriber contracts delivered or issued for delivery in this state providing for hospital, surgical or major medical coverage, or any combination of these coverages, on a service basis or an expense-incurred basis, or both, must contain a provision that the employee or member is entitled to have issued to him a subscriber contract of health coverage when the employee or member is no longer covered by the group subscriber contract.

      2.  The requirement in subsection 1 does not apply to contracts providing benefits only for specific diseases or accidental injuries . [, and it applies to other contracts only if:

      (a) The termination of coverage under the group contract is not due to termination of the group contract itself unless the termination of the group contract has resulted from failure of the contract holder or agent, or both, to remit the required premiums;

      (b) The termination is not due to failure of the employee or member to remit any required contributions;

      (c) The employee or member has been continuously covered under the group contract for at least 3 consecutive months immediately before the termination; and

      (d) The employee or member applies in writing for the converted contract and pays his first premium to the medical service corporation no later than 31 days after the termination.]

      3.  If an employee or member was a recipient of benefits under the coverage provided pursuant to NRS 695B.1944, he is not entitled to have issued to him by a replacement insurer a subscriber contract of health coverage unless he has reported for his normal employment for a period of 90 consecutive days after last being eligible to receive any benefits under the coverage provided pursuant to NRS 695B.1944.

      Sec. 209.  NRS 695B.320 is hereby amended to read as follows:

      695B.320  Nonprofit hospital and medical or dental service corporations are subject to the provisions of this chapter, and to the provisions of chapters 679A and 679B of NRS, NRS 686A.010 to 686A.315, inclusive, [689C.015 to 689C.350, inclusive,] and chapters 692C and 696B of NRS, to the extent applicable and not in conflict with the express provisions of this chapter.

      Sec. 210.  Chapter 695C of NRS is hereby amended by adding thereto the provisions set forth as sections 211 and 212 of this act.

      Sec. 211.  A health maintenance organization may offer to a small employer who has not less than 2 and not more than 50 employees, a health care plan that has a high deductible and that is in compliance with 26 U.S.C. § 220 for the purposes of establishing medical savings accounts for any person insured by the health care plan.

      Sec. 212.  1.  A health maintenance organization is subject to the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and availability of health insurance offered by such organizations. If there is a conflict between the provisions of this chapter and the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS, the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS control.


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

ê1997 Statutes of Nevada, Page 2958 (Chapter 586, AB 521)ê

 

      2.  For the purposes of subsection 1, unless the context requires that a provision apply only to a group health plan or a carrier that provides coverage under a group health plan, any reference in those sections to “group health plan” or “carrier” must be replaced by “health maintenance organization.”

      Sec. 213.  NRS 695C.055 is hereby amended to read as follows:

      695C.055  1.  The provisions of NRS 449.465, 679B.158 and 680B.025 to 680B.060, inclusive, and subsections 2, 4, 18, 19 and 32 of NRS 680B.010 [and NRS 689C.015 to 689C.350, inclusive,] apply to a health maintenance organization.

      2.  For the purposes of subsection 1, unless the context requires that a provision apply only to insurers, any reference in those sections to “insurer” must be replaced by “health maintenance organization.”

      Sec. 214.  NRS 695C.1705 is hereby amended to read as follows:

      695C.1705  Except as otherwise provided in the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and accountability of health insurance:

      1.  A group health care plan issued by a health maintenance organization to replace any discontinued policy or coverage for group health insurance must:

      (a) Provide coverage for all persons who were covered under the previous policy or coverage on the date it was discontinued; and

      (b) Except as otherwise provided in subsection 2, provide benefits which are at least as extensive as the benefits provided by the previous policy or coverage, except that benefits may be reduced or excluded to the extent that such a reduction or exclusion was permissible under the terms of the previous policy or coverage,

if that plan is issued within 60 days after the date on which the previous policy or coverage was discontinued.

      2.  If an employer obtains a replacement plan pursuant to subsection 1 to cover his employees, any benefits provided by the previous policy or coverage may be reduced if notice of the reduction is given to his employees pursuant to NRS 608.1577.

      3.  Any health maintenance organization which issues a replacement plan pursuant to subsection 1 may submit a written request to the insurer which provided the previous policy or coverage for a statement of benefits which were provided under that policy or coverage. Upon receiving such a request, the insurer shall give a written statement to the organization indicating what benefits were provided and what exclusions or reductions were in effect under the previous policy or coverage.

      4.  If an employee or enrollee was a recipient of benefits under the coverage provided pursuant to NRS 695C.1709, he is not entitled to have issued to him by a health maintenance organization a replacement plan unless he has reported for his normal employment for a period of 90 consecutive days after last being eligible to receive any benefits under the coverage provided pursuant to NRS 695C.1709.

      5.  The provisions of this section apply to a self-insured employer who provides health benefits to his employees and replaces those benefits with a group health care plan issued by a health maintenance organization.


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

ê1997 Statutes of Nevada, Page 2959 (Chapter 586, AB 521)ê

 

      Sec. 215.  NRS 695C.1707 is hereby amended to read as follows:

      695C.1707  Any policy of group insurance to which an enrollee is entitled under a health care plan provided by a health maintenance organization must contain a provision which permits the continuation of coverage pursuant to the provisions of NRS 689B.245 to 689B.249, inclusive [.] , sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and accountability of health insurance.

      Sec. 216.  NRS 695C.172 is hereby amended to read as follows:

      695C.172  1.  No health maintenance organization may issue evidence of coverage under a health care plan to any enrollee in this state if it contains any exclusion, reduction or other limitation of coverage relating to complications of pregnancy unless the provision applies generally to all benefits payable under the policy [.] and complies with the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and accountability of health insurance.

      2.  As used in this section, the term “complications of pregnancy” includes any condition which requires hospital confinement for medical treatment and:

      (a) If the pregnancy is not terminated, is caused by an injury or sickness not directly related to the pregnancy or by acute nephritis, nephrosis, cardiac decompensation, missed abortion or similar medically diagnosed conditions; or

      (b) If the pregnancy is terminated, results in nonelective cesarean section, ectopic pregnancy or spontaneous termination.

      3.  Evidence of coverage under a health care plan subject to the provisions of this chapter which is issued on or after July 1, 1977, has the legal effect of including the coverage required by this section, and any provision which is in conflict with this section is void.

      Sec. 217.  NRS 695C.173 is hereby amended to read as follows:

      695C.173  1.  All individual and group health care plans which provide coverage for a family member of the enrollee must , as to such coverage , provide that the health care services applicable for children are payable with respect to:

      (a) A newly born child of the enrollee from the moment of birth;

      (b) An adopted child from the date the adoption becomes effective, if the child was not placed in the home before adoption; and

      (c) A child placed with the enrollee for the purpose of adoption from the moment of placement as certified by the public or private agency making the placement. The coverage of such a child ceases if the adoption proceedings are terminated as certified by the public or private agency making the placement.

The plans must provide the coverage specified in subsection 3, and must not exclude premature births.

      2.  The evidence of coverage may require that notification of:

      (a) The birth of a newly born child;

      (b) The effective date of adoption of a child; or

      (c) The date of placement of a child for adoption,

and payments of the required charge, if any, must be furnished to the health maintenance organization within 31 days after the date of birth, adoption or placement for adoption in order to have the coverage continue beyond the 31-day period.


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

ê1997 Statutes of Nevada, Page 2960 (Chapter 586, AB 521)ê

 

placement for adoption in order to have the coverage continue beyond the 31-day period.

      3.  The coverage for newly born and adopted children and children placed for adoption consists of preventive health care services as well as coverage of injury or sickness, including the necessary care and treatment of medically diagnosed congenital defects and birth abnormalities and, within the limits of the policy, necessary transportation costs from place of birth to the nearest specialized treatment center under major medical policies, and with respect to basic policies to the extent such costs are charged by the treatment center.

      4.  A health maintenance organization shall not restrict the coverage of a dependent child adopted or placed for adoption solely because of a preexisting condition the child has at the time he would otherwise become eligible for coverage pursuant to that plan. Any provision relating to an exclusion for a preexisting condition must comply with section 78 of this act or NRS 689C.190, as appropriate.

      5.  For covered services provided to the child, the health maintenance organization shall reimburse noncontracted providers of health care to an amount equal to the average amount of payment for which the organization has agreements, contracts or arrangements for those covered services.

      Sec. 218.  NRS 695F.090 is hereby amended to read as follows:

      695F.090  Prepaid limited health service organizations are subject to the provisions of this chapter and to the following provisions of this Title, to the extent reasonably applicable:

      1.  NRS 687B.310 to 687B.420, inclusive, concerning cancellation and nonrenewal of policies.

      2.  NRS 687B.122 to 687B.128, inclusive, concerning readability of policies.

      3.  The requirements of NRS 679B.152.

      4.  The fees imposed pursuant to NRS 449.465.

      5.  NRS 686A.010 to 686A.310, inclusive, concerning trade practices and frauds.

      6.  The assessment imposed pursuant to subsection 3 of NRS 679B.158.

      7.  Chapter 683A of NRS.

      8.  To the extent applicable, the provisions of sections 60 to 88, inclusive, of this act and chapter 689C of NRS relating to the portability and availability of health insurance.

      Sec. 219.  NRS 695F.480 is hereby amended to read as follows:

      695F.480  1.  If a person:

      (a) Adopts a dependent child; or

      (b) Assumes and retains a legal obligation for the total or partial support of a dependent child in anticipation of adopting the child,

while the person is eligible for group coverage under any evidence of coverage, the prepaid limited health service organization issuing that evidence of coverage shall not restrict the coverage of the child based solely on a preexisting condition the child has at the time he would otherwise become eligible for coverage pursuant to that evidence of coverage. Any provision relating to an exclusion for a preexisting condition must comply with section 78 of this act or NRS 689C.190, as appropriate.


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

ê1997 Statutes of Nevada, Page 2961 (Chapter 586, AB 521)ê

 

      2.  For the purposes of this section, “child” means a person who is under 18 years of age at the time of his adoption or the assumption of a legal obligation for his support in anticipation of his adoption.

      Sec. 220.  NRS 287.045 is hereby amended to read as follows:

      287.045  1.  Except as otherwise provided in [subsections 2, 4 and 5,] this section, every officer or employee of the state is eligible to participate in the program on the first day of the month following the completion of 90 days of full-time employment.

      2.  Professional employees of the University and Community College System of Nevada who have annual employment contracts are eligible to participate in the program on:

      (a) The effective dates of their respective employment contracts, if those dates are on the first day of a month; or

      (b) The first day of the month following the effective dates of their respective employment contracts, if those dates are not on the first day of a month.

      3.  Every officer or employee who is employed by a participating public agency on a permanent and full-time basis on the date the agency enters into an agreement to participate in the state’s group insurance program, and every officer or employee who commences his employment after that date is eligible to participate in the program on the first day of the month following the completion of 90 days of full-time employment.

      4.  Every senator and assemblyman is eligible to participate in the program on the first day of the month following the 90th day after his initial term of office begins.

      5.  An officer or employee of the governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada who retires under the conditions set forth in NRS 286.510 or 286.620 and was not participating in the state’s group insurance program at the time of his retirement is eligible to participate in the program 30 days after notice of the selection to participate is given pursuant to NRS 287.023 or 287.0235. The committee on benefits shall make a separate accounting for these retired persons. For the first year following enrollment, the rates charged must be the full actuarial costs determined by the actuary based upon the expected claims experience with these retired persons. The claims experience of these retired persons must not be commingled with the retired persons who were members of the state’s program before their retirement, nor with active employees of the state. After the first year following enrollment, the rates charged must be the full actuarial costs determined by the actuary based upon the past claims experience of these retired persons since enrolling.

      6.  Notwithstanding the provisions of subsections 1, 3 and 4, if the committee on benefits does not, pursuant to section 86 of this act, elect to exclude the program from compliance with sections 60 to 88, inclusive, of this act, and if the coverage under the program is provided by a health maintenance organization authorized to transact insurance in this state pursuant to chapter 695C of NRS, any affiliation period imposed by the program may not exceed the statutory limit for an affiliation period set forth in section 78 of this act.


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

ê1997 Statutes of Nevada, Page 2962 (Chapter 586, AB 521)ê

 

      Sec. 221.  NRS 608.1577 is hereby amended to read as follows:

      608.1577  1.  An employer shall notify his employees of his intent to accept a policy of group life, dental or health insurance which covers the employees.

      2.  If an employer is the policyholder of a policy of group life, dental or health insurance which covers his employees, he shall notify the insurer and employees of his intent to terminate, reduce or modify substantially any benefit under the policy, or to change insurers.

      3.  If an employer is the policyholder or contract holder under a policy or contract issued pursuant to chapter 689B, 695A, 695B, 695C, 695D or 695F of NRS, or NRS 689C.015 to 689C.590, inclusive, and sections 94 to 182, inclusive, of this act which provides benefits for his employees, he shall, if applicable, notify the employees of:

      (a) His inability to pay a premium when due; and

      (b) His intention to stop paying premiums.

      4.  Any notice required pursuant to this section must be:

      (a) Given at least 15 days before the:

             (1) Acceptance of, change in or termination of benefits or insurers; or

             (2) Next unpaid premium is due; and

      (b) Conspicuously posted at the place of employment or given in another manner which ensures that all employees will receive the information.

      Sec. 221.5.  Section 42 of Assembly Bill No. 156 of this session is hereby amended to read as follows:

       Sec. 42.  NRS 695C.055 is hereby amended to read as follows:

       695C.055  1.  The provisions of NRS 449.465, 679B.158 and 680B.025 to 680B.060, inclusive, and subsections 2, 4, 18, 19 and 32 of NRS 680B.010 and sections 2 to 27, inclusive, of this act apply to a health maintenance organization.

       2.  For the purposes of subsection 1, unless the context requires that a provision apply only to insurers, any reference in those sections to “insurer” must be replaced by “health maintenance organization.”

      Sec. 221.7.  Section 9 of Assembly Bill No. 348 of this session is hereby amended to read as follows:

       Sec. 9.  NRS 695F.090 is hereby amended to read as follows:

       695F.090  Prepaid limited health service organizations are subject to the provisions of this chapter and to the following provisions of this Title, to the extent reasonably applicable:

       1.  NRS 687B.310 to 687B.420, inclusive, concerning cancellation and nonrenewal of policies.

       2.  NRS 687B.122 to 687B.128, inclusive, concerning readability of policies.

       3.  The requirements of NRS 679B.152.

       4.  The fees imposed pursuant to NRS 449.465.

       5.  NRS 686A.010 to 686A.310, inclusive, concerning trade practices and frauds.

       6.  The assessment imposed pursuant to subsection 3 of NRS 679B.158.

       7.  Chapter 683A of NRS.


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

ê1997 Statutes of Nevada, Page 2963 (Chapter 586, AB 521)ê

 

       8.  To the extent applicable, the provisions of sections 60 to 88, inclusive, of [this act] Assembly Bill No. 521 of this session and chapter 689C of NRS relating to the portability and availability of health insurance.

       9.  Section 1 of this act.

      Sec. 222.  NRS 689C.370, 689C.400 and 689C.410, and section 4 of Assembly Bill No. 348 of this session, are hereby repealed.

      Sec. 223.  If the Secretary of the United States Department of Health and Human Services determines that the State of Nevada is not in compliance with the provisions of the Health Insurance Portability and Accountability Act of 1996, the commissioner of insurance may adopt such regulations, not otherwise inconsistent with the provisions of this act, as may be necessary to bring this state into compliance with the Health Insurance Portability and Accountability Act of 1996.

      Sec. 224.  Not later than 60 days after the effective date of this act, each carrier and individual carrier shall file with the commissioner of insurance a plan of operation established pursuant to the program of reinsurance established pursuant to sections 145 to 182, inclusive, of this act that contains the net health insurance premium of the carrier derived from health benefit plans delivered or issued for delivery to small employers and eligible persons in this state during the previous calendar year.

      Sec. 225.  1.  For the initial term of the members of the board of directors of the program of reinsurance established pursuant to section 160 of this act, the commissioner of insurance shall appoint:

      (a) Two members to 2-year terms;

      (b) Three members to 4-year terms; and

      (c) Three members to 6-year terms.

      2.  For the initial term of the members of the committee on health benefit plans established pursuant to section 179 of this act, the commissioner of insurance shall appoint:

      (a) Two members to 2-year terms;

      (b) Three members to 4-year terms; and

      (c) Three members to 6-year terms.

      Sec. 226.  1.  There is hereby appropriated from the state general fund to the division of insurance of the department of business and industry to carry out the provisions of this act:

For the fiscal year 1997-1998................................................................          $286,968

For the fiscal year 1998-1999................................................................          $259,323

      2.  Any balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal years and reverts to the state general fund as soon as all payments of money committed have been made.

      Sec. 227.  The amendatory provisions of this act do not apply to offenses that are committed before the effective date of this act.

      Sec. 228.  The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.


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

ê1997 Statutes of Nevada, Page 2964 (Chapter 586, AB 521)ê

 

      Sec. 229.  1.  This section and sections 1 to 87, inclusive, and 89 to 228, inclusive, of this act become effective upon passage and approval.

      2.  Section 88 of this act becomes effective on January 1, 1998, and expires by limitation on September 30, 2001.

________

 

CHAPTER 587, AB 524

Assembly Bill No. 524–Committee on Ways and Means

CHAPTER 587

AN ACT relating to state financial administration; requiring the development of criteria for certain business plans for use in future state budget processes; and providing other matters properly relating thereto.

 

[Approved July 16, 1997]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  1.  Except as otherwise provided in subsection 5, the Department of Administration and the Fiscal Analysis Division of the Legislative Counsel Bureau, jointly, shall develop criteria for a business plan for use by state agencies seeking:

      (a) An expansion of statutory authority;

      (b) An authorized expenditure or appropriation for a new program; or

      (c) An authorized expenditure or appropriation for a program that is proposed for enhancement by more than $1,000,000 or 50 percent of the amount approved by the Legislature for the program for the current biennium, whichever is less.

      2.  The criteria developed pursuant to subsection 1 must be submitted to the Interim Finance Committee for approval on or before February 1, 1998.

      3.  Upon approval of the criteria by the Interim Finance Committee, the criteria must be included by the Department of Administration as a requirement in the instructions to state agencies concerning the creation of the proposed budget for the 1999-2001 biennium.

      4.  Each business plan prepared in compliance with this section in relation to the proposed budget prepared for the 1999-2001 biennium must be submitted to the Legislature at the same time the proposed budget is transmitted to the Legislature in accordance with subsection 4 of NRS 353.230.

      5.  The provisions of this section do not require the development or approval of criteria for a business plan for use by a state agency for a project to construct a highway or any other public work.

________

 

Link to Page 2965