[Rev. 1/30/2019 4:39:19 PM]

Link to Page 3588

 

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κ2013 Statutes of Nevada, Page 3589κ

 

CHAPTER 541, AB 425

Assembly Bill No. 425–Committee on Commerce and Labor

 

CHAPTER 541

 

[Approved: June 12, 2013]

 

AN ACT relating to insurance; establishing certification provisions for certain enrollment facilitators by the Commissioner of Insurance; revising provisions relating to federal law and to conform with federal law; revising provisions relating to the general tax on insurance premiums; revising provisions relating to public inspection of information filed with the Commissioner; revising provisions relating to dental insurance; revising provisions relating to certain policies of health insurance and health care plans that provide coverage for the treatment of cancer through the use of chemotherapy; providing a penalty; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Sections 1-26 of this bill establish certification provisions for exchange enrollment facilitators, who will be certified by the Commissioner of Insurance and appointed as navigators or assisters by the Silver State Health Insurance Exchange as part of the requirement that the Exchange implement a state-based health insurance exchange pursuant to the federal Patient Protection and Affordable Care Act, Public Law 111-148, as amended by the federal Health Care and Education Reconciliation Act of 2010, Public Law 111-152. (NRS 695I.210) Section 119 of this bill repeals numerous sections of the Nevada Insurance Code (Title 57 of NRS) to conform to the federal acts, and sections 27-118 of this bill generally make conforming changes based on the federal acts and on the repeal of those sections of NRS.

      Section 31.5 of this bill revises a credit which may be used against an insurer’s liability for the general tax on insurance premiums imposed pursuant to NRS 680B.027. Sections 32.1 and 32.8 of this bill revise provisions relating to contracts for coverage for dental care which are sold to small employers. Section 32.5 of this bill limits, for specified periods, public inspection of certain information filed with the Commissioner of Insurance.

      Senate Bill No. 266 of this session establishes various provisions governing certain health care plans that provide coverage for the treatment of cancer through the use of chemotherapy. Sections 1, 3-5, 8 and 9 of Senate Bill No. 266 of this session prohibit those health care plans from requiring a copayment, deductible or coinsurance amount for orally administered chemotherapy in a combined amount that is more than $100 per prescription. Sections 118.1 to 118.6 of this bill amend the corresponding provisions of Senate Bill No. 266 of this session to provide that the limit on the amount of the deductible that may be required does not apply if the plan is a high deductible health plan, as defined in 26 U.S.C. § 223, and the plan’s annual deductible has not been satisfied.

 


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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Title 57 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 26, inclusive, of this act.

      Sec. 2.  As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 2.5 to 7, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 2.5. “Appointment” means a contract, agreement or other arrangement under which a person may act on behalf of the Exchange as an assister, navigator or any other designation authorized or required by the Federal Act.

      Sec. 3.  “Assister” has the meaning ascribed to it by regulations adopted by the Board of Directors of the Exchange pursuant to NRS 695I.370.

      Sec. 4.  “Exchange” means the Silver State Health Insurance Exchange established by NRS 695I.200.

      Sec. 5. “Exchange enrollment facilitator” means a person certified pursuant to this chapter who is engaged in the business of facilitating enrollment in qualified health plans offered by the Exchange.

      Sec. 6. “Navigator” means a person or entity that meets the requirements of 45 C.F.R. § 155.210 and any other requirements of the Exchange.

      Sec. 7. “Qualified health plan” has the meaning ascribed to it in NRS 695I.080.

      Sec. 8. 1.  The provisions of NRS 683A.341 and 683A.351 apply to exchange enrollment facilitators.

      2.  For the purposes of subsection 1, unless the context requires that NRS 683A.341 or 683A.351 apply only to producers of insurance or insurers, any reference in those sections to “producer of insurance” or “insurer” must be replaced by a reference to “exchange enrollment facilitator.”

      Sec. 9.  1.  An applicant for an initial certificate as an exchange enrollment facilitator must:

      (a) Be a natural person of not less than 18 years of age;

      (b) Apply on a form prescribed by the Commissioner;

      (c) Pass a written examination established by the Commissioner by regulation;

      (d) Successfully complete a course of instruction established by the Commissioner by regulation;

      (e) Submit fingerprints as required pursuant to section 10 of this act; and

      (f) Pay the nonrefundable:

             (1) Application and certificate fee set forth in NRS 680B.010;

             (2) Initial fee set forth in NRS 680C.110; and

             (3) Additional fee of not more than $15 for the processing of the application established pursuant to section 25 of this act.

 


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      2.  The additional fee for the processing of applications pursuant to subparagraph (3) of paragraph (f) of subsection 1 must be deposited in the Insurance Recovery Account created pursuant to NRS 679B.305.

      Sec. 10.  1.  The Commissioner shall prescribe the form for application for a certificate as an exchange enrollment facilitator. The form must require the applicant to declare, under penalty of refusal to issue, or suspension or revocation of, the certificate of the applicant, that the statements made in the application are true, correct and complete to the best of his or her knowledge and belief.

      2.  Before approving an application, the Commissioner must find that the applicant:

      (a) Meets the requirements of section 9 of this act.

      (b) Has not committed any act that is a ground for refusal to issue, or suspension or revocation of a certificate pursuant to NRS 683A.451.

      (c) Paid all applicable fees prescribed pursuant to section 9 of this act.

      (d) Meets the requirements of subsections 3 and 5.

      3.  An applicant must, as part of his or her application and at the applicant’s own expense:

      (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b) Submit to the Commissioner:

             (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      4.  The Commissioner may:

      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 3, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary;

      (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary; and

      (c) Adopt regulations concerning the procedures for obtaining the information described in paragraph (b).

      5.  The Commissioner may require from the applicant any document reasonably necessary to verify information contained in an application.

      6.  Except as otherwise provided in section 23 of this act, a certificate issued pursuant to this chapter is valid for 3 years after the date of issuance unless it is suspended, revoked or otherwise terminated.

 


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      Sec. 11. 1.  A person taking the examination required pursuant to section 9 of this act must apply to the Commissioner to take the examination and pay a nonrefundable fee in an amount prescribed in the regulations adopted pursuant to section 25 of this act.

      2.  A person who fails to appear for the examination as scheduled or fails to pass the examination must reapply for examination and pay the required fees in order to be scheduled for another examination.

      Sec. 12.  1.  A certificate may be renewed for an additional 3-year period by submitting to the Commissioner an application for renewal and:

      (a) If the application is made:

             (1) On or before the expiration date of the certificate, all applicable renewal fees and an additional fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account created pursuant to NRS 679B.305; or

             (2) Except as otherwise provided in subsection 3:

                   (I) Not more than 30 days after the expiration date of the certificate, all applicable renewal fees plus any late fee required and an additional fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account created pursuant to NRS 679B.305; or

                   (II) More than 30 days but not more than 1 year after the expiration date of the certificate, all applicable renewal fees plus a penalty of twice all applicable renewal fees, except for any fee required pursuant to NRS 680C.110.

      (b) Proof of the successful completion of appropriate courses of study required for renewal, as established by the Commissioner by regulation.

      2.  The fees specified in this section are not refundable.

      3.  An exchange enrollment facilitator who is unable to renew his or her certificate because of military service, extended medical disability or other extenuating circumstance may request a waiver of the time limit and of any fine or sanction otherwise required or imposed because of the failure to renew.

      Sec. 13.  1.  An applicant for the issuance or renewal of a certificate to act as an exchange enrollment facilitator shall submit to the Commissioner the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      2.  The Commissioner shall include the statement required pursuant to subsection 1 in:

      (a) The application or any other forms that must be submitted for the issuance or renewal of the certificate; or

      (b) A separate form prescribed by the Commissioner.

      3.  A certificate to act as an exchange enrollment facilitator may not be issued or renewed by the Commissioner if the applicant is a natural person who:

      (a) Fails to submit the statement required pursuant to subsection 1; or

      (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

 


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      4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      Sec. 14.  1.  If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a certificate to act as an exchange enrollment facilitator, the Commissioner shall deem the certificate issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the certificate by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the certificate has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Commissioner shall reinstate a certificate to act as an exchange enrollment facilitator that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose certificate was suspended stating that the person whose certificate was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      Sec. 15. The application of a natural person who applies for the issuance or renewal of a certificate as an exchange enrollment facilitator must include the social security number of the applicant.

      Sec. 16. 1.  A certificate issued pursuant to this chapter must state the certificate holder’s name, address, personal identification number, the date of issuance and the date of expiration, and must contain any other information the Commissioner considers necessary. The certificate must be made available by the certificate holder for public inspection upon request.

      2.  A certificate holder shall inform the Commissioner of all locations from which he or she conducts business and of each change of business or residence address, in writing or by other means acceptable to the Commissioner, within 30 days after the date on which the change takes place. If a certificate holder changes his or her business or residence address without giving written notice and the Commissioner is unable to locate the certificate holder after diligent effort, the Commissioner may revoke the certificate without a hearing. The mailing of a letter by certified mail, return receipt requested, addressed to the certificate holder at his or her last mailing address appearing on the records of the Division, and the return of the letter undelivered, constitutes a diligent effort by the Commissioner.

      Sec. 17.  1.  If the Commissioner believes that a temporary certificate is necessary to carry on the business of facilitating selection of a qualified health plan, the Commissioner may issue a temporary certificate as an exchange enrollment facilitator for 180 days or less without requiring an examination to:

 


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      (a) The surviving spouse, personal representative or guardian of an exchange enrollment facilitator who dies or becomes incompetent, to allow adequate time for the sale of the business, the recovery or return of the exchange enrollment facilitator, or the training and certification of new personnel to operate the business;

      (b) A member or employee of a business organization appointed by the Exchange, upon the death or disability of the natural person designated in its application or certificate;

      (c) The designee of an exchange enrollment facilitator entering active service in the Armed Forces of the United States; or

      (d) A person in any other circumstance in which the Commissioner believes that the public interest will be best served by issuing the certificate.

      2.  The Commissioner may by order limit the authority of a person who holds a temporary certificate as the Commissioner believes necessary to protect persons insured and the public. The Commissioner may require the person who holds a temporary certificate to have a suitable sponsor who is an exchange enrollment facilitator and who assumes responsibility for all acts of the person who holds the temporary certificate, and may impose similar requirements to protect persons insured and the public. The Commissioner may order revocation of a temporary certificate if the interests of persons insured or the public are endangered. A temporary certificate expires when the owner or the personal representative or guardian of the owner disposes of the business.

      Sec. 18.  An entity other than a natural person that is appointed by the Exchange must require that each natural person who is authorized to act for the entity be an exchange enrollment facilitator. Each exchange enrollment facilitator must be named in the partnership’s or corporation’s appointment.

      Sec. 19.  An exchange enrollment facilitator:

      1.  May not concurrently hold a license as a producer of insurance, an insurance consultant or a surplus lines broker’s license in any line.

      2.  Shall not:

      (a) Sell, solicit or negotiate insurance;

      (b) Receive any consideration, directly or indirectly, from any health insurance issuer or issuer of stop-loss insurance in connection with the enrollment of any individuals or employees in a qualified health plan or health insurance plan; or

      (c) Employ, be employed by or be in partnership with, or receive any remuneration arising out of his or her activities as an exchange enrollment facilitator from, any licensed producer of insurance, insurance consultant or surplus lines broker or insurer.

      Sec. 20.  An exchange enrollment facilitator is obligated under his or her certificate to:

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

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

      Sec. 21.  1.  A nonresident who is an exchange enrollment facilitator shall appoint the Commissioner, in writing, as his or her registered agent upon whom may be served all legal process issued in connection with any action or proceeding brought or pending in this State against or involving the nonresident certificate holder and relating to transactions under his or her Nevada certificate.

 


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action or proceeding brought or pending in this State against or involving the nonresident certificate holder and relating to transactions under his or her Nevada certificate. The appointment is irrevocable and remains in force so long as such an action or proceeding exists or may arise. Duplicate copies of process must be served upon the Commissioner, or other person in apparent charge of the Division during the Commissioner’s absence, accompanied by payment of the fee for service of process. Promptly after any such service, the Commissioner shall forward a copy of the process by certified mail, return receipt requested, to the nonresident certificate holder at his or her business address of most recent record with the Division. Process so served and the copy so forwarded constitutes personal service upon the certificate holder for all purposes.

      2.  Each such nonresident certificate holder shall also file with the Commissioner a written agreement to appear before the Commissioner pursuant to notice of hearing, order to show cause or subpoena issued by the Commissioner and sent by certified mail to the certificate holder at his or her business address of most recent record with the Division, and that if the nonresident certificate holder fails to appear, the nonresident certificate holder thereby consents to any subsequent suspension, revocation or refusal to renew his or her certificate.

      Sec. 22.  1.  The Commissioner may place an exchange enrollment facilitator on probation, suspend his or her certificate for not more than 12 months, or revoke or refuse to renew his or her certificate, or may impose an administrative fine or take any combination of the foregoing actions, for one or more of the causes set forth in NRS 683A.451.

      2.  The provisions of NRS 683A.461 also apply to an exchange enrollment facilitator.

      Sec. 23.  1.  Upon the suspension, limitation or revocation of the certificate of an exchange enrollment facilitator, the Commissioner shall immediately notify the certificate holder in person or by mail addressed to the certificate holder at his or her most recent address of record with the Division. Notice by mail is effective when mailed.

      2.  Upon the suspension, limitation or revocation of the certificate of an exchange enrollment facilitator, the Commissioner shall immediately notify the Executive Director of the Exchange. Upon receipt of such notification, the Executive Director shall immediately terminate the certificate holder’s appointment.

      3.  The Commissioner shall not again issue a certificate under this chapter to any natural person whose certificate has been revoked until at least 1 year after the revocation has become final, and thereafter not until the person again qualifies for a certificate under this chapter. A person whose certificate has been revoked twice is not eligible for any certificate under this title.

      Sec. 24.  1.  If an exchange enrollment facilitator fails to obtain an appointment by the Exchange within 30 days after the date on which the certificate was issued, the exchange enrollment facilitator’s certificate expires and the exchange enrollment facilitator shall promptly deliver his or her certificate to the Commissioner.

      2.  If the Exchange terminates an exchange enrollment facilitator’s appointment, the exchange enrollment facilitator is prohibited from engaging in the business of an exchange enrollment facilitator under his or her certificate until such time as the exchange enrollment facilitator receives a new appointment by the Exchange.

 


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receives a new appointment by the Exchange. If the exchange enrollment facilitator does not obtain a new appointment by the Exchange within 30 days after the date the appointment was terminated, the exchange enrollment facilitator’s certificate expires and the exchange enrollment facilitator shall promptly deliver his or her certificate to the Commissioner.

      3.  Except as otherwise provided in subsection 4, if the Exchange terminates the appointment of an entity other than a natural person:

      (a) The appointments of exchange enrollment facilitators named on the entity’s appointment also terminate; and

      (b) The exchange enrollment facilitator is prohibited from engaging in the business of an exchange enrollment facilitator under his or her certificate until such time as the exchange enrollment facilitator receives a new appointment by the Exchange. If the exchange enrollment facilitator does not obtain a new appointment by the Exchange within 30 days after the date on which the appointment was terminated, the exchange enrollment facilitator’s certificate expires and the exchange enrollment facilitator shall promptly deliver his or her certificate to the Commissioner.

      4.  The provisions of subsection 3 do not apply to any appointments the exchange enrollment facilitator may have individually or through an entity other than the terminated entity.

      5.  Upon the termination of an appointment for an entity or certificate holder, the Executive Director of the Exchange shall notify the Commissioner of the effective date of the termination and the grounds for termination.

      Sec. 25. 1.  The Commissioner shall adopt regulations:

      (a) For establishing and conducting an examination required by this chapter for the initial issuance and renewal of a certificate;

      (b) For the establishment of a course of instruction as required by this chapter for the initial issuance and renewal of a certificate;

      (c) Establishing the fee required by section 9 of this act for the processing of an application;

      (d) Establishing the fee required by section 11 of this act for the administration of the examination; and

      (e) For carrying out the provisions of this chapter.

      2.  The Commissioner may contract with a person to perform functions required by this chapter, including, without limitation:

      (a) Administering examinations;

      (b) Providing courses of instruction;

      (c) Processing applications; and

      (d) Collecting fees.

      Sec. 26.  1.  No person may engage in the business of an exchange enrollment facilitator unless a certificate has been issued to the person by the Commissioner.

      2.  A person who violates subsection 1 is subject to an administrative fine of not more than $1,000 for each act or violation.

      Sec. 27. Chapter 679A of NRS is hereby amended by adding thereto the provisions set forth as sections 28, 28.5 and 29 of this act.

      Sec. 28. “Federal Act” means the federal Patient Protection and Affordable Care Act, Public Law 111-148, as amended by the federal Health Care and Education Reconciliation Act of 2010, Public Law 111-152, and any amendments to, or regulations or guidance issued pursuant to, those acts.

 


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      Sec. 28.5. “Grandfathered plan” means a health benefit plan that meets the requirements of 42 U.S.C. § 18011.

      Sec. 29. “Rating characteristic” means age, family composition, tobacco use or geographic rating area.

      Sec. 30. NRS 679A.020 is hereby amended to read as follows:

      679A.020  As used in this Code, unless the context otherwise requires, the words and terms defined in NRS 679A.030 to 679A.130, inclusive, and sections 28, 28.5 and 29 of this act have the meanings ascribed to them in those sections.

      Sec. 31. NRS 680B.010 is hereby amended to read as follows:

      680B.010  The Commissioner shall collect in advance and receipt for, and persons so served must pay to the Commissioner, fees and miscellaneous charges as follows:

      1.  Insurer’s certificate of authority:

      (a) Filing initial application..................................................................... $2,450

      (b) Issuance of certificate:

             (1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive   283

             (2) For two or more kinds of insurance as so defined....................... 578

             (3) For a reinsurer................................................................................. 2,450

      (c) Each annual continuation of a certificate....................................... 2,450

      (d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwise required.

      (e) Registration of additional title pursuant to NRS 680A.240............... 50

      (f) Annual renewal of the registration of additional title pursuant to NRS 680A.240  25

      2.  Charter documents, other than those filed with an application for a certificate of authority. Filing amendments to articles of incorporation, charter, bylaws, power of attorney and other constituent documents of the insurer, each document      $10

      3.  Annual statement or report. For filing annual statement or report $25

      4.  Service of process:

      (a) Filing of power of attorney....................................................................... $5

      (b) Acceptance of service of process............................................................ 30

      5.  Licenses, appointments and renewals for producers of insurance:

      (a) Application and license........................................................................ $125

      (b) Appointment fee for each insurer........................................................... 15

      (c) Triennial renewal of each license.......................................................... 125

      (d) Temporary license..................................................................................... 10

      (e) Modification of an existing license......................................................... 50

      6.  Surplus lines brokers:

      (a) Application and license........................................................................ $125

      (b) Triennial renewal of each license.......................................................... 125

      7.  Managing general agents’ licenses, appointments and renewals:

      (a) Application and license........................................................................ $125

      (b) Appointment fee for each insurer........................................................... 15

      (c) Triennial renewal of each license.......................................................... 125

 

 


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      8.  Adjusters’ licenses and renewals:

      (a) Independent and public adjusters:

             (1) Application and license.................................................................. $125

             (2) Triennial renewal of each license................................................... 125

      (b) Associate adjusters:

             (1) Application and license.................................................................... 125

             (2) Triennial renewal of each license................................................... 125

      9.  Licenses and renewals for appraisers of physical damage to motor vehicles:

      (a) Application and license........................................................................ $125

      (b) Triennial renewal of each license.......................................................... 125

      10.  Additional title and property insurers pursuant to NRS 680A.240:

      (a) Original registration................................................................................. $50

      (b) Annual renewal.......................................................................................... 25

      11.  Insurance vending machines:

      (a) Application and license, for each machine...................................... $125

      (b) Triennial renewal of each license.......................................................... 125

      12.  Permit for solicitation for securities:

      (a) Application for permit.......................................................................... $100

      (b) Extension of permit................................................................................... 50

      13.  Securities salespersons for domestic insurers:

      (a) Application and license.......................................................................... $25

      (b) Annual renewal of license........................................................................ 15

      14.  Rating organizations:

      (a) Application and license........................................................................ $500

      (b) Annual renewal........................................................................................ 500

      15.  Certificates and renewals for administrators licensed pursuant to chapter 683A of NRS:

      (a) Application and certificate of registration........................................ $125

      (b) Triennial renewal..................................................................................... 125

      16.  For copies of the insurance laws of Nevada, a fee which is not less than the cost of producing the copies.

      17.  Certified copies of certificates of authority and licenses issued pursuant to the Code    $10

      18.  For copies and amendments of documents on file in the Division, a reasonable charge fixed by the Commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.

      19.  Letter of clearance for a producer of insurance or other licensee if requested by someone other than the licensee     $10

      20.  Certificate of status as a producer of insurance or other licensee if requested by someone other than the licensee    $10

      21.  Licenses, appointments and renewals for bail agents:

      (a) Application and license........................................................................ $125

      (b) Appointment for each surety insurer...................................................... 15

      (c) Triennial renewal of each license.......................................................... 125

      22.  Licenses and renewals for bail enforcement agents:

      (a) Application and license........................................................................ $125

      (b) Triennial renewal of each license.......................................................... 125

 


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      23.  Licenses, appointments and renewals for general agents for bail:

      (a) Application and license........................................................................ $125

      (b) Initial appointment by each insurer....................................................... 15

      (c) Triennial renewal of each license.......................................................... 125

      24.  Licenses and renewals for bail solicitors:

      (a) Application and license........................................................................ $125

      (b) Triennial renewal of each license.......................................................... 125

      25.  Licenses and renewals for title agents and escrow officers:

      (a) Application and license........................................................................ $125

      (b) Triennial renewal of each license.......................................................... 125

      (c) Appointment fee for each title insurer.................................................... 15

      (d) Change in name or location of business or in association................. 10

      26.  Certificate of authority and renewal for a seller of prepaid funeral contracts      $125

      27.  Licenses and renewals for agents for prepaid funeral contracts:

      (a) Application and license........................................................................ $125

      (b) Triennial renewal of each license.......................................................... 125

      28.  Licenses, appointments and renewals for agents for fraternal benefit societies:

      (a) Application and license........................................................................ $125

      (b) Appointment for each insurer.................................................................. 15

      (c) Triennial renewal of each license.......................................................... 125

      29.  Reinsurance intermediary broker or manager:

      (a) Application and license........................................................................ $125

      (b) Triennial renewal of each license.......................................................... 125

      30.  Agents for and sellers of prepaid burial contracts:

      (a) Application and certificate or license................................................ $125

      (b) Triennial renewal..................................................................................... 125

      31.  Risk retention groups:

      (a) Initial registration.................................................................................. $250

      (b) Each annual continuation of a certificate of registration................ 250

      32.  Required filing of forms:

      (a) For rates and policies.............................................................................. $25

      (b) For riders and endorsements.................................................................... 10

      33.  Viatical settlements:

      (a) Provider of viatical settlements:

             (1) Application and license.............................................................. $1,000

             (2) Annual renewal.............................................................................. 1,000

      (b) Broker of viatical settlements:

             (1) Application and license.................................................................... 500

             (2) Annual renewal.................................................................................. 500

      (c) Registration of producer of insurance acting as a viatical settlement broker     250

      34.  Insurance consultants:

      (a) Application and license........................................................................ $125

      (b) Triennial renewal..................................................................................... 125

 

 


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      35.  Licensee’s association with or appointment or sponsorship by an organization:

      (a) Initial appointment, association or sponsorship, for each organization $50

      (b) Renewal of each association or sponsorship........................................ 50

      (c) Annual renewal of appointment............................................................. 15

      36.  Purchasing groups:

      (a) Initial registration and review of an application.............................. $100

      (b) Each annual continuation of registration........................................... 100

      37.  Exchange enrollment facilitators:

      (a) Application and certificate................................................................ $125

      (b) Triennial renewal of each certificate................................................. 125

      (c) Temporary certificate............................................................................... 10

      (d) Modification of an existing certificate................................................. 50

      38.  In addition to any other fee or charge, all applicable fees required of any person, including, without limitation, persons listed in this section, pursuant to NRS 680C.110.

      Sec. 31.5. NRS 680B.050 is hereby amended to read as follows:

      680B.050  1.  Except as otherwise provided in this section, a domestic or foreign insurer , including, without limitation, an insurer that is exempt from federal taxation pursuant to 26 U.S.C. § 501(c)(29), which owns and substantially occupies and uses any building in this state as its home office or as a regional home office is entitled to the following credits against the tax otherwise imposed by NRS 680B.027:

      (a) An amount equal to 50 percent of the aggregate amount of the tax as determined under NRS 680B.025 to 680B.039, inclusive; and

      (b) An amount equal to the full amount of ad valorem taxes paid by the insurer during the calendar year next preceding the filing of the report required by NRS 680B.030, upon the home office or regional home office together with the land, as reasonably required for the convenient use of the office, upon which the home office or regional home office is situated.

Κ These credits must not reduce the amount of tax payable to less than 20 percent of the tax otherwise payable by the insurer under NRS 680B.027.

      2.  As used in this section, a “regional home office” means an office of the insurer performing for an area covering two or more states, with a minimum of 25 employees on its office staff, the supervision, underwriting, issuing and servicing of the insurance business of the insurer.

      3.  The insurer shall, on or before March 15 of each year, furnish proof to the satisfaction of the Executive Director of the Department of Taxation, on forms furnished by or acceptable to the Executive Director, as to its entitlement to the tax reduction provided for in this section. A determination of the Executive Director of the Department of Taxation pursuant to this section is not binding upon the Commissioner for the purposes of NRS 682A.240.

      4.  An insurer is not entitled to the credits provided in this section unless:

      (a) The insurer owned the property upon which the reduction is based for the entire year for which the reduction is claimed; and

      (b) The insurer occupied at least 70 percent of the usable space in the building to transact insurance or the insurer is a general or limited partner and occupies 100 percent of its ownership interest in the building.

 


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      5.  If two or more insurers under common ownership or management and control jointly own in equal interest, and jointly occupy and use such a home office or regional home office in this state for the conduct and administration of their respective insurance businesses as provided in this section, each of the insurers is entitled to the credits provided for by this section if otherwise qualified therefor under this section.

      6.  For the purposes of subsection 1, any insurer that is exempt from federal taxation pursuant to 26 U.S.C. § 501(c)(29) and is restricted or prohibited from purchasing or owning real property pursuant to a contract with the Federal Government, including any entity thereof, shall be deemed to own any portion of any real property that the insurer occupies. The provisions of this subsection expire upon the expiration, cancellation, repayment or any other termination of the contract restricting or prohibiting such purchase or ownership.

      Sec. 32. NRS 680C.110 is hereby amended to read as follows:

      680C.110  1.  In addition to any other fee or charge, the Commissioner shall collect in advance and receipt for, and persons so served must pay to the Commissioner, the fees required by this section.

      2.  A fee required by this section must be:

      (a) If an initial fee, paid at the time of an initial application or issuance of a license, as applicable;

      (b) If an annual fee, paid on or before March 1 of every year;

      (c) If a triennial fee, paid on or before the time of continuation, renewal or other similar action in regard to a certificate, license, permit or other type of authorization, as applicable; and

      (d) Deposited in the Fund for Insurance Administration and Enforcement created by NRS 680C.100.

      3.  The fees required pursuant to this section are not refundable.

      4.  The following fees must be paid by the following persons to the Commissioner:

      (a) Associations of self-insured private employers, as defined in NRS 616A.050:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (b) Associations of self-insured public employers, as defined in NRS 616A.055:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (c) Independent review organizations, as provided for in NRS 616A.469 or 683A.3715, or both:

             (1) Initial fee............................................................................................. $60

             (2) Annual fee.......................................................................................... $60

      (d) Insurers not otherwise provided for in this subsection:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (e) Producers of insurance, as defined in NRS 679A.117:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (f) Accredited reinsurers, as provided for in NRS 681A.160:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

 


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      (g) Intermediaries, as defined in NRS 681A.330:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (h) Reinsurers, as defined in NRS 681A.370:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (i) Administrators, as defined in NRS 683A.025:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (j) Managing general agents, as defined in NRS 683A.060:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (k) Agents who perform utilization reviews, as defined in NRS 683A.376:

             (1) Initial fee............................................................................................. $60

             (2) Annual fee.......................................................................................... $60

      (l) Insurance consultants, as defined in NRS 683C.010:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (m) Independent adjusters, as defined in NRS 684A.030:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (n) Public adjusters, as defined in NRS 684A.030:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (o) Associate adjusters, as defined in NRS 684A.030:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (p) Motor vehicle physical damage appraisers, as defined in NRS 684B.010:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (q) Brokers, as defined in NRS 685A.031:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (r) Eligible surplus line insurers, as provided for in NRS 685A.070:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (s) Companies, as defined in NRS 686A.330:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (t) Rate service organizations, as defined in NRS 686B.020:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (u) Brokers of viatical settlements, as defined in NRS 688C.030:

             (1) Initial fee............................................................................................. $60

             (2) Annual fee.......................................................................................... $60

 

 


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      (v) Providers of viatical settlements, as defined in NRS 688C.080:

             (1) Initial fee............................................................................................. $60

             (2) Annual fee.......................................................................................... $60

      (w) Agents for prepaid burial contracts subject to the provisions of chapter 689 of NRS:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (x) Agents for prepaid funeral contracts subject to the provisions of chapter 689 of NRS:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (y) Sellers of prepaid burial contracts subject to the provisions of chapter 689 of NRS:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (z) Sellers of prepaid funeral contracts subject to the provisions of chapter 689 of NRS:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (aa) Providers, as defined in NRS 690C.070:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (bb) Escrow officers, as defined in NRS 692A.028:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (cc) Title agents, as defined in NRS 692A.060:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (dd) Captive insurers, as defined in NRS 694C.060:

             (1) Initial fee.......................................................................................... $250

             (2) Annual fee........................................................................................ $250

      (ee) Fraternal benefit societies, as defined in NRS 695A.010:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (ff) Insurance agents for societies, as provided for in NRS 695A.330:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (gg) Corporations subject to the provisions of chapter 695B of NRS:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (hh) Health maintenance organizations, as defined in NRS 695C.030:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (ii) Organizations for dental care, as defined in NRS 695D.060:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

 

 


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      (jj) Purchasing groups, as defined in NRS 695E.100:

             (1) Initial fee.......................................................................................... $250

             (2) Annual fee........................................................................................ $250

      (kk) Risk retention groups, as defined in NRS 695E.110:

             (1) Initial fee.......................................................................................... $250

             (2) Annual fee........................................................................................ $250

      (ll) Prepaid limited health service organizations, as defined in NRS 695F.050:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (mm) Medical discount plans, as defined in NRS 695H.050:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (nn) Club agents, as defined in NRS 696A.040:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (oo) Motor clubs, as defined in NRS 696A.050:

             (1) Initial fee....................................................................................... $1,300

             (2) Annual fee.................................................................................... $1,300

      (pp) Bail agents, as defined in NRS 697.040:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (qq) Bail enforcement agents, as defined in NRS 697.055:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (rr) Bail solicitors, as defined in NRS 697.060:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (ss) General agents, as defined in NRS 697.070:

             (1) Initial fee............................................................................................. $60

             (2) Triennial fee....................................................................................... $60

      (tt) Exchange enrollment facilitators, as defined in section 5 of this act:

             (1) Initial fee............................................................................................ $60

             (2) Triennial fee...................................................................................... $60

      Sec. 32.1. NRS 686B.030 is hereby amended to read as follows:

      686B.030  1.  Except as otherwise provided in subsection 2 [,] and NRS 686B.125, the provisions of NRS 686B.010 to 686B.1799, inclusive, apply to all kinds and lines of direct insurance written on risks or operations in this State by any insurer authorized to do business in this State, except:

      (a) Ocean marine insurance;

      (b) Contracts issued by fraternal benefit societies;

      (c) Life insurance and credit life insurance;

      (d) Variable and fixed annuities;

      (e) Credit accident and health insurance;

      (f) Property insurance for business and commercial risks;

      (g) Casualty insurance for business and commercial risks other than insurance covering the liability of a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS;

      (h) Surety insurance;

      (i) Health insurance offered through a group health plan maintained by a large employer; and

 


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      (j) Credit involuntary unemployment insurance.

      2.  The exclusions set forth in paragraphs (f) and (g) of subsection 1 extend only to issues related to the determination or approval of premium rates.

      Sec. 32.2. NRS 686B.070 is hereby amended to read as follows:

      686B.070  1.  Every authorized insurer and every rate service organization licensed under NRS 686B.140 which has been designated by any insurer for the filing of rates under subsection 2 of NRS 686B.090 shall file with the Commissioner all:

      (a) Rates and proposed increases thereto;

      (b) Forms of policies to which the rates apply;

      (c) Supplementary rate information; and

      (d) Changes and amendments thereof,

Κ made by it for use in this state.

      2.  If an insurer makes a filing for a proposed increase in a rate for insurance covering the liability of a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of the practitioner’s professional duty toward a patient, the insurer shall not include in the filing any component that is directly or indirectly related to the following:

      (a) Capital losses, diminished cash flow from any dividends, interest or other investment returns, or any other financial loss that is materially outside of the claims experience of the professional liability insurance industry, as determined by the Commissioner.

      (b) Losses that are the result of any criminal or fraudulent activities of a director, officer or employee of the insurer.

Κ If the Commissioner determines that a filing includes any such component, the Commissioner shall, pursuant to NRS 686B.110, disapprove the proposed increase, in whole or in part, to the extent that the proposed increase relies upon such a component.

      3.  If an insurer makes a filing for a proposed increase in a rate for a health benefit plan, as that term is defined in section 33.4 of this act, the filing must include a unified rate review template, a written description justifying the rate increase and any rate filing documentation.

      4.  As used in this section, “rate filing documentation,” “unified rate review template” and “written description justifying the rate increase” have the meanings ascribed in 45 C.F.R. § 154.215.

      Sec. 32.5. NRS 686B.080 is hereby amended to read as follows:

      686B.080  [Each]

      1.  Except as otherwise provided in subsections 2 and 3, each filing and any supporting information filed under NRS 686B.010 to 686B.1799, inclusive, must, as soon as filed, be open to public inspection at any reasonable time. Copies may be obtained by any person on request and upon payment of a reasonable charge therefor.

      2.  All approved rates for health benefit plans available for purchase by individuals are considered proprietary and to constitute trade secrets, and are not subject to disclosure by the Commissioner to persons outside the Division except as agreed to by the carrier or as ordered by a court of competent jurisdiction.

      3.  The provisions of subsection 2 expire annually on the date 30 days before open enrollment.

      4.  For the purposes of this section, “open enrollment” has the meaning ascribed to it in 45 C.F.R. § 147.104(b)(1)(ii).

 


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      Sec. 32.8. NRS 686B.125 is hereby amended to read as follows:

      686B.125  [No]

      1.  Except as otherwise provided in this section, no insurer, organization or person licensed pursuant to this title may sell or offer to sell any contract providing coverage for dental care at a rate which is excessive for the benefits offered to the insured or member. For the purpose of this section, a ratio of losses to premiums collected which is less than 75 percent is presumed to show an excessive rate.

      2.  The provisions of subsection 1 do not apply to a contract providing coverage for dental care that is sold to a small employer pursuant to the provisions of chapter 689C of NRS.

      3.  As used in this section, “small employer” has the meaning ascribed to it in NRS 689C.095.

      Sec. 33. Chapter 687B of NRS is hereby amended by adding thereto the provisions set forth as sections 33.4 to 33.8, inclusive, of this act.

      Sec. 33.4. 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 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;

      (h) Other similar insurance coverage specified pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, under which benefits for medical care are secondary or incidental to other insurance benefits;

      (i) Coverage under a short-term health insurance policy; and

      (j) Coverage under a blanket student accident and health insurance policy.

      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 the Health Insurance Portability and Accountability Act of 1996, 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, there is no coordination between the provisions of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the 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:

 


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sponsor, and the 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, 42 U.S.C. § 1395ss, as that section existed on July 16, 1997;

      (b) Coverage supplemental to the coverage provided pursuant to the Civilian Health and Medical Program of Uniformed Services, CHAMPUS, 10 U.S.C. §§ 1071 et seq.; and

      (c) Similar supplemental coverage provided under a group health plan.

      Sec. 33.5. 1.  All health benefit plans must be made available in the manner required by 45 C.F.R. § 147.104.

      2.  In addition to the requirements of subsection 1, any health benefit plan for individuals that is not purchased on the Silver State Health Insurance Exchange established by NRS 695I.210:

      (a) Must be made available for purchase at any time during the calendar year;

      (b) Is subject to a waiting period of not more than 90 days after the date on which the application for coverage was received;

      (c) Is effective upon the first day of the month immediately succeeding the month in which the waiting period expires; and

      (d) Is not retroactive to the date on which the application for coverage was received.

      Sec. 33.6.1.  A carrier that offers coverage in the group or individual market must, before making any network plan available for sale in this State, demonstrate the capacity to deliver services adequately by applying to the Commissioner for the issuance of a network plan and submitting a description of the procedures and programs to be implemented to meet the requirements described in subsection 2.

      2.  The Commissioner shall determine, within 90 days after receipt of the application required pursuant to subsection 1, if the carrier, with respect to the network plan:

      (a) Has demonstrated the willingness and ability to ensure that health care services will be provided in a manner to ensure both availability and accessibility of adequate personnel and facilities in a manner that enhances availability, accessibility and continuity of service;

      (b) Has organizational arrangements established in accordance with regulations promulgated by the Commissioner; and

      (c) Has a procedure established in accordance with regulations promulgated by the Commissioner to develop, compile, evaluate and report statistics relating to the cost of its operations, the pattern of utilization of its services, the availability and accessibility of its services and such other matters as may be reasonably required by the Commissioner.

      3.  The Commissioner may certify that the carrier and the network plan meet the requirements of subsection 2, or may determine that the carrier and the network plan do not meet such requirements. Upon a determination that the carrier and the network plan do not meet the requirements of subsection 2, the Commissioner shall specify in what respects the carrier and the network plan are deficient.

 


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requirements of subsection 2, the Commissioner shall specify in what respects the carrier and the network plan are deficient.

      4.  A carrier approved to issue a network plan pursuant to this section must file annually with the Commissioner a summary of information compiled pursuant to subsection 2 in a manner determined by the Commissioner.

      5.  The Commissioner shall, not less than once each year, or more often if deemed necessary by the Commissioner for the protection of the interests of the people of this State, make a determination concerning the availability and accessibility of the health care services of any network plan approved pursuant to this section.

      6.  The expense of any determination made by the Commissioner pursuant to this section must be assessed against the carrier and remitted to the Commissioner.

      7.  As used in this section, “network plan” has the meaning ascribed to it in NRS 689B.570.

      Sec. 33.8. 1.  The premium rate charged by a health insurer for health benefit plans offered in the individual or small group market may vary with respect to the particular plan or coverage involved based solely on these characteristics:

      (a) Whether the plan or coverage applies to an individual or a family;

      (b) Geographic rating area;

      (c) Tobacco use, except that the rate shall not vary by a ratio of more than 1.5 to 1 for like individuals who vary in tobacco use; and

      (d) Age, except that the rate must not vary by a ratio of more than 3 to 1 for like individuals of different age who are age 21 years or older and that the variation in rate must be actuarially justified for individuals who are under the age of 21 years, consistent with the uniform age rating curve established in the Federal Act. For the purpose of identifying the appropriate age adjustment under this paragraph and the age band defined in the Federal Act to a specific enrollee, the enrollee’s age as of the date of policy issuance or renewal must be used.

      2.  The provisions of subsection 1:

      (a) Apply to a fraternal benefit society organized under chapter 695A of NRS; and

      (b) Do not apply to grandfathered plans.

      Sec. 34. 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 workers’ compensation insurance with or without supplementary expense coverage therein.

      2.  Any group or blanket policy.

      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.

 


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      4.  Reinsurance, except as otherwise provided in NRS 689A.470 to 689A.740, inclusive, and 689C.610 to [689C.980,] 689C.940, inclusive, relating to the program of reinsurance.

      Sec. 35. NRS 689A.030 is hereby amended to read as follows:

      689A.030  A policy of health insurance must not be delivered or issued for delivery to any person in this State unless it otherwise complies with this Code, and complies with the following:

      1.  The entire money and other considerations for the policy must be expressed therein.

      2.  The time when the insurance takes effect and terminates must be expressed therein.

      3.  It must purport to insure only one person, except that a policy may insure, originally or by subsequent amendment, upon the application of an adult member of a family, who shall be deemed the policyholder, any two or more eligible members of that family, including the husband, wife, domestic partner as defined in NRS 122A.030, dependent children, from the time of birth, adoption or placement for the purpose of adoption as provided in NRS 689A.043, or any [children under a specified age which must not exceed 19] child on or before the last day of the month in which the child attains 26 years [except as provided in NRS 689A.045,] of age, and any other person dependent upon the policyholder.

      4.  The style, arrangement and overall appearance of the policy must not give undue prominence to any portion of the text, and every printed portion of the text of the policy and of any endorsements or attached papers must be plainly printed in light-faced type of a style in general use, the size of which must be uniform and not less than 10 points with a lowercase unspaced alphabet length not less than 120 points. “Text” includes all printed matter except the name and address of the insurer, the name or the title of the policy, the brief description, if any, and captions and subcaptions.

      5.  The exceptions and reductions of indemnity must be set forth in the policy and, other than those contained in NRS 689A.050 to 689A.290, inclusive, must be printed, at the insurer’s option, with the benefit provision to which they apply or under an appropriate caption such as “Exceptions” or “Exceptions and Reductions,” except that if an exception or reduction specifically applies only to a particular benefit of the policy, a statement of that exception or reduction must be included with the benefit provision to which it applies.

      6.  Each such form, including riders and endorsements, must be identified by a number in the lower left-hand corner of the first page thereof.

      7.  The policy must not contain any provision purporting to make any portion of the charter, rules, constitution or bylaws of the insurer a part of the policy unless that portion is set forth in full in the policy, except in the case of the incorporation of or reference to a statement of rates or classification of risks, or short-rate table filed with the Commissioner.

      8.  The policy must provide benefits for expense arising from care at home or health supportive services if that care or service was prescribed by a physician and would have been covered by the policy if performed in a medical facility or facility for the dependent as defined in chapter 449 of NRS.

      9.  The policy must provide, at the option of the applicant, benefits for expenses incurred for the treatment of abuse of alcohol or drugs, unless the policy provides coverage only for a specified disease or provides for the payment of a specific amount of money if the insured is hospitalized or receiving health care in his or her home.

 


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payment of a specific amount of money if the insured is hospitalized or receiving health care in his or her home.

      10.  The policy must provide benefits for expense arising from hospice care.

      Sec. 36. NRS 689A.040 is hereby amended to read as follows:

      689A.040  1.  Except as otherwise provided in subsections 2 and 3, each such policy delivered or issued for delivery to any person in this State must contain the provisions specified in NRS 689A.050 to 689A.170, inclusive, in the words in which the provisions appear, except that the insurer may, at its option, substitute for one or more of the provisions corresponding provisions of different wording approved by the Commissioner which are in each instance not less favorable in any respect to the insured or the beneficiary. Each such provision must be preceded individually by the applicable caption shown or, at the option of the insurer, by such appropriate individual or group captions or subcaptions as the Commissioner may approve.

      2.  [Each policy delivered or issued for delivery in this State after November 1, 1973, must contain a provision, if applicable, setting forth the provisions of NRS 689A.045.

      3.]  If any such provision is in whole or in part inapplicable to or inconsistent with the coverage provided by a particular form of policy, the insurer, with the approval of the Commissioner, may omit from the policy any inapplicable provision or part of a provision, and shall modify any inconsistent provision or part of a provision in such a manner as to make the provision as contained in the policy consistent with the coverage provided by the policy.

      Sec. 37. (Deleted by amendment.)

      Sec. 38. NRS 689A.044 is hereby amended to read as follows:

      689A.044  1.  A policy of health insurance must provide coverage for benefits payable for expenses incurred for administering the human papillomavirus vaccine [to women and girls at such ages] as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  A policy of health insurance must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.  A policy subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after July 1, 2007, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with subsection 1 is void.

      4.  For the purposes of this section, “human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      Sec. 39. NRS 689A.0455 is hereby amended to read as follows:

      689A.0455  1.  [Notwithstanding any provisions of this Title to the contrary, a] A policy of health insurance delivered or issued for delivery in this state pursuant to this chapter must provide coverage for the treatment of conditions relating to severe mental illness.

      2.  [The coverage required by this section:

 


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      (a) Must provide:

             (1) Benefits for at least 40 days of hospitalization as an inpatient per policy year and 40 visits for treatment as an outpatient per policy year, excluding visits for the management of medication; and

             (2) That two visits for partial or respite care, or a combination thereof, may be substituted for each 1 day of hospitalization not used by the insured. In no event is the policy required to provide coverage for more than 40 days of hospitalization as an inpatient per policy year.

      (b) Is not required to provide benefits for psychosocial rehabilitation or care received as a custodial inpatient.

      3.  Any deductibles and copayments required to be paid for the coverage required by this section must not be greater than 150 percent of the out-of-pocket expenses required to be paid for medical and surgical benefits provided pursuant to the policy of health insurance.

      4.  The provisions of this section do not apply to a policy of health insurance if, at the end of the policy year, the premiums charged for that policy, or a standard grouping of policies, increase by more than 2 percent as a result of providing the coverage required by this section and the insurer obtains an exemption from the Commissioner pursuant to subsection 5.

      5.  To obtain the exemption required by subsection 4, an insurer must submit to the Commissioner a written request therefor that is signed by an actuary and sets forth the reasons and actuarial assumptions upon which the request is based. To determine whether an exemption may be granted, the Commissioner shall subtract from the amount of premiums charged during the policy year the amount of premiums charged during the period immediately preceding the policy year and the amount of any increase in the premiums charged that is attributable to factors that are unrelated to providing the coverage required by this section. The Commissioner shall verify the information within 30 days after receiving the request. The request shall be deemed approved if the Commissioner does not deny the request within that time.

      6.  The provisions of this section do not:

      (a) Limit the provision of specialized services covered by Medicaid for persons with conditions relating to mental health or substance abuse.

      (b) Supersede any provision of federal law, any federal or state policy relating to Medicaid, or the terms and conditions imposed on any Medicaid waiver granted to this state with respect to the provisions of services to persons with conditions relating to mental health or substance abuse.

      7.  A policy of health insurance subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after January 1, 2000, has the legal effect of including the coverage required by this section, and any provision of the policy or the renewal which is in conflict with this section is void, unless the policy is otherwise exempt from the provisions of this section pursuant to subsection 4.

      8.]  As used in this section, “severe mental illness” means any of the following mental illnesses that are biologically based and for which diagnostic criteria are prescribed in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders, [Fourth Edition,] published by the American Psychiatric Association:

      (a) Schizophrenia.

      (b) Schizoaffective disorder.

      (c) Bipolar disorder.

 


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      (d) Major depressive disorders.

      (e) Panic disorder.

      (f) Obsessive-compulsive disorder.

      Sec. 39.5. NRS 689A.230 is hereby amended to read as follows:

      689A.230  1.  There may be a provision as follows:

 

       Coordination of Benefits: If, with respect to a person covered under this policy, benefits for allowable expense incurred during a claim determination period under this policy, together with benefits for allowable expense during such period under all other valid coverage (without giving effect to this provision or to any “coordination of benefits provision” applying to such other valid coverage), exceed the total of such person’s allowable expense during such period, this insurer shall be liable only for such proportionate amount of the benefits for allowable expense under this policy during such period as (a) the total allowable expense during such period bears to (b) the total amount of benefits payable during such period for such expense under this policy and all other valid coverage (without giving effect to this provision or to any “coordination of benefits provision” applying to such other valid coverage) less in both (a) and (b) any amount of benefits for allowable expense payable under other valid coverage which does not contain a “coordination of benefits provision.” In no event shall this provision operate to increase the amount of benefits for allowable expense payable under this policy with respect to a person covered under this policy above the amount which would have been paid in the absence of this provision. This insurer may pay benefits to any insurer providing other valid coverage in the event of overpayment by such insurer. Any such payment shall discharge the liability of this insurer as fully as if the payment had been made directly to the insured or the assignee or beneficiary of the insured. If this insurer pays benefits to the insured or the assignee or beneficiary of the insured, in excess of the amount which would have been payable if the existence of other valid coverage had been disclosed, this insurer shall have a right of action against the insured or the assignee or beneficiary of the insured to recover the amount which would not have been paid had there been a disclosure of the existence of the other valid coverage. The amount of other valid coverage which is on a provision of service basis shall be computed as the amount the services rendered would have cost in the absence of such coverage.

       For the purposes of this provision:

       (1) “Allowable expense” means 100 percent of any necessary, reasonable and customary item of expense which is covered, in whole or in part, as a hospital, surgical, medical or major medical expense under this policy or under any other valid coverage.

       (2) “Claim determination period” with respect to any covered person means the initial period of ..... (insert period of not less than 30 days) and each successive period of a like number of days, during which allowable expense covered under this policy is incurred on account of such person. The first such period begins on the date when the first such expense is incurred, and successive periods shall begin when such expense is incurred after expiration of a prior period.

 

or, in lieu thereof:

 


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       (2) “Claim determination period” with respect to any covered person means each ..... (insert calendar or policy period of not less than a month) during which allowable expense covered under this policy is incurred on account of such person.

       (3) “Coordination of benefits provision” means this provision and any other provision which may reduce an insurer’s liability because of the existence of benefits under other valid coverage.

 

      2.  The foregoing policy provisions may be inserted in all policies providing hospital, surgical, medical or major medical benefits for which the application includes a question as to other coverages subject to this provision. If the policy provision stated in subsection 1 is included in a policy which also contains the policy provision stated in NRS 689A.240, there shall be added to the caption of the provision stated in subsection 1 of the phrase “expense-incurred benefits.” The insurer may make this provision applicable to either or both:

      (a) Other valid coverage with other insurers; and

      (b) Other valid coverage with the same insurer.

Κ The insurer shall include in this provision a definition of “other valid coverage” approved as to form by the Commissioner. Such term may include hospital, surgical, medical or major medical benefits provided by individual or family-type coverage, government programs or workers’ compensation. Such term shall not include any [group insurance,] automobile medical payments or third-party liability coverage. The insurer shall not include a subrogation clause in the policy. The insurer may require, as part of the proof of claim, the information necessary to administer this provision.

      3.  If by application of any of the foregoing provisions the insurer effects a material reduction of benefits otherwise payable under the policy, the insurer shall refund to the insured any premium unearned on the policy by reason of such reduction of coverage during the policy year current and that next preceding at the time the loss commenced, subject to the insurer’s right to provide in the policy that no such reduction of benefits or refund will be made unless the unearned premium to be so refunded amounts to $5 or such larger sum as the insurer may so specify.

      Sec. 40. NRS 689A.470 is hereby amended to read as follows:

      689A.470  As used in NRS 689A.470 to 689A.740, inclusive, unless the context otherwise requires, the words and terms defined in NRS 689A.475 to [689A.605,] 689A.600, inclusive, have the meanings ascribed to them in those sections.

      Sec. 41. NRS 689A.520 is hereby amended to read as follows:

      689A.520  [“Established geographic] “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. 42. NRS 689A.525 is hereby amended to read as follows:

      689A.525  “Geographic rating area” means an area established by the Commissioner for use in adjusting the rates for a health benefit plan.

 


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      Sec. 43. NRS 689A.630 is hereby amended to read as follows:

      689A.630  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. 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.

 


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κ2013 Statutes of Nevada, Page 3615 (CHAPTER 541, AB 425)κ

 

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

      (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. 44. NRS 689A.635 is hereby amended to read as follows:

      689A.635  1.  An individual carrier that offers coverage through a network plan is not required pursuant to NRS 689A.630 to offer coverage to or accept an application from [an eligible] a person if the [eligible] person does not reside or work in the [established] geographic service area or in a geographic rating 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. 45. NRS 689A.637 is hereby amended to read as follows:

      689A.637  1.  An individual carrier that offers a health benefit plan that includes a provision for a restricted network shall use its best efforts to contract with at least one health center in each [established] geographic service area to provide health care services to persons covered by the plan if the health center:

 


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κ2013 Statutes of Nevada, Page 3616 (CHAPTER 541, AB 425)κ

 

      (a) Meets all conditions imposed by the carrier on similarly situated providers of health care with which the carrier contracts, including, without limitation:

             (1) Certification for participation in the Medicaid or Medicare program; and

             (2) Requirements relating to the appropriate credentials for providers of health care; and

      (b) Agrees to reasonable reimbursement rates that are generally consistent with those offered by the carrier to similarly situated providers of health care with which the carrier contracts.

      2.  As used in this section, “health center” has the meaning ascribed to it in 42 U.S.C. § 254b.

      Sec. 46. (Deleted by amendment.)

      Sec. 47. NRS 689A.690 is hereby amended to read as follows:

      689A.690  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 the dependent of the individual are established or adjusted based upon rating characteristics;

      (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; and

      (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 NRS 689A.680 to 689A.700, inclusive, 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 NRS 689A.680 to 689A.700, inclusive, 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. 47.5. NRS 689A.695 is hereby amended to read as follows:

      689A.695  An individual carrier shall make the information and documents described in NRS [689A.680 to] 689A.690, 689A.695 and 689A.700 [, inclusive,] 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.

 


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κ2013 Statutes of Nevada, Page 3617 (CHAPTER 541, AB 425)κ

 

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. 48. NRS 689A.700 is hereby amended to read as follows:

      689A.700  The Commissioner may adopt regulations to carry out the provisions of NRS [689A.680 to] 689A.690, 689A.695 and 689A.700 [, inclusive,] and to ensure that the practices used by individual carriers relating to the establishment of rates are consistent with the purposes of NRS 689A.470 to 689A.740, inclusive . [, including, but not limited to, determining the manner in which geographic rating areas are designated by all individual carriers.]

      Sec. 49. NRS 689A.710 is hereby amended to read as follows:

      689A.710  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] individual or family 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.] individual or family.

      (b) Encourage or direct an [eligible person] individual or family to seek coverage from another carrier because of the health status, claims experience, industry, occupation or geographic location of the [eligible person.] individual or family.

      2.  The provisions of subsection 1 do not apply to information provided to an [eligible person] individual or family 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.

      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] individual or family 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] individuals or families in this state.

 


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      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] individuals or families in this state.

      9.  Nothing in this section interferes with the right and responsibility of a [broker] producer to advise and represent the best interests of an [eligible person] individual or family who is seeking health insurance coverage from an individual carrier.

      Sec. 50. NRS 689A.725 is hereby amended to read as follows:

      689A.725  For the purposes of NRS 689A.470 to 689A.740, inclusive, a plan for coverage of a bona fide association must:

      1.  Conform with NRS [689A.680 to] 689A.690, 689A.695 and 689A.700 [, inclusive,] 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 NRS 689A.630.

      [3.  Provide for the availability of coverage for members of the bona fide association, and their dependents, if such coverage conforms with NRS 689A.640, except that the bona fide association is not required to offer basic and standard health benefit plan coverage to its members or their dependents.

      4.  Conform with subsection 1 of NRS 689A.660, relating to preexisting conditions.]

      Sec. 51. (Deleted by amendment.)

      Sec. 52. NRS 689B.0313 is hereby amended to read as follows:

      689B.0313  1.  A policy of group health insurance must provide coverage for benefits payable for expenses incurred for administering the human papillomavirus vaccine [to women and girls at such ages] as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  A policy of group health insurance must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.  A policy subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after July 1, 2007, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with subsection 1 is void.

      4.  For the purposes of this section, “human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      Sec. 53. 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:

 


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      (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.

Κ 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,

Κ 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.

      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 the child 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 NRS 689B.500.]

      Sec. 54. NRS 689B.061 is hereby amended to read as follows:

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

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

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

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

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

 


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

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

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

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

      Sec. 54.5. NRS 689B.063 is hereby amended to read as follows:

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

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

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

      Sec. 55. NRS 689B.340 is hereby amended to read as follows:

      689B.340  As used in NRS 689B.340 to [689B.590,] 689B.580, inclusive, unless the context otherwise requires, the words and terms defined in NRS 689B.350 to 689B.460, inclusive, have the meanings ascribed to them in those sections.

      Secs. 56 and 57. (Deleted by amendment.)

      Sec. 58. NRS 689B.480 is hereby amended to read as follows:

      689B.480  1.  In determining the applicable creditable coverage of a person for the purposes of NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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 the person in accordance with NRS 689B.490 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.

 


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      2.  In determining the period of creditable coverage of a person , [for the purposes of NRS 689B.500,] 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. 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.

      4.  The provisions of this section apply only to grandfathered plans.

      Sec. 59. NRS 689B.500 is hereby amended to read as follows:

      689B.500  [1.  Except as otherwise provided in this section, a] A carrier that issues a group health plan or coverage under blanket accident and health insurance or 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 or other insured enrolls through open enrollment or after the first day of the waiting period for that enrollment, whichever is earlier; or

      (b) More than 18 months after the effective date of coverage for a late enrollee.

Κ A carrier may not define a preexisting condition more restrictively than that term is defined in NRS 689B.450.

      2.  The period of any exclusion for a preexisting condition imposed by a group health plan or coverage under blanket accident and health insurance or 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. 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 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 or other persons insured and without regard to any health status-related factors.

 


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any health status-related factors. During the affiliation period, the carrier shall not collect any premiums for coverage of the employee or other insured.

      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 the birth of the person, 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.

Κ 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 a dependent of the eligible employee, 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 a dependent of the eligible employee 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 or her 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

             (3) Requests enrollment not later than 30 days after the date on which the creditable coverage of the employee or dependent 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 several 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.

 


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      (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, Public Law 99-272, and that coverage has been exhausted.]

      Sec. 60. NRS 689B.560 is hereby amended to read as follows:

      689B.560  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; or

      (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).

             (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.

 


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      (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.

      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 NRS 689A.485.

      Sec. 61. NRS 689B.570 is hereby amended to read as follows:

      689B.570  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 rating 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. 62. (Deleted by amendment.)

      Sec. 63. NRS 689B.580 is hereby amended to read as follows:

      689B.580  1.  A plan sponsor of a governmental plan that is a group health plan to which the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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.

 


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κ2013 Statutes of Nevada, Page 3625 (CHAPTER 541, AB 425)κ

 

      (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 NRS 689B.490.

      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 July 16, 1997.

      Sec. 64. NRS 689C.055 is hereby amended to read as follows:

      689C.055  “Dependent” means a spouse , a domestic partner as defined in NRS 122A.030, or [:

      1.  An unmarried] a child [under 19] on or before the last day of the month in which the child attains 26 years of age . [;

      2.  An unmarried child who is a full-time student under 24 years of age and who is financially dependent upon the parent; or

      3.  An unmarried child of any age who is medically certified as disabled and dependent upon the parent,

Κ who the parent claimed as his or her dependent on the form for income tax returns which the parent filed with the Internal Revenue Service for the previous fiscal year.]

      Sec. 65. NRS 689C.067 is hereby amended to read as follows:

      689C.067  [“Established geographic] “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. 66. NRS 689C.071 is hereby amended to read as follows:

      689C.071  “Geographic rating area” means an area established by the Commissioner for use in adjusting the rates for a health benefit plan.

      Sec. 66.5. NRS 689C.095 is hereby amended to read as follows:

      689C.095  [1.]  “Small employer” [means, with respect to a calendar year and a plan year, an employer who employed on business days during the preceding calendar year an average of at least 2 employees, but not more than 50 employees, who have a normal workweek of 30 hours or more, and who employs at least 2 employees on the first day of the plan year. 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.] has the meaning ascribed to it in 42 U.S.C. § 18024(b)(2).

      Sec. 67. NRS 689C.125 is hereby amended to read as follows:

      689C.125  1.  A carrier serving small employers shall apply rating factors [, including characteristics,] consistently with respect to all small employers .

 


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κ2013 Statutes of Nevada, Page 3626 (CHAPTER 541, AB 425)κ

 

employers . [in a class of business.] Rating factors must produce premiums for identical groups that differ only by the amounts attributable to the design of the plans and the terms of the coverage and do not reflect differences based on the nature of the groups that will select particular health benefit plans. As used in this subsection, “premium” means all money paid by a small employer and eligible employees to a carrier as a condition of receiving coverage from a carrier, including any fees or other contributions associated with the health benefit plan.

      2.  A carrier serving small employers shall treat all health benefit plans issued or renewed in the same calendar month as having the same rating period, if the terms of coverage provided in the plans are the same.

      Sec. 68. (Deleted by amendment.)

      Sec. 69. 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.107] 689C.109 to [689C.145,] 689C.142, inclusive, 689C.156 to 689C.159, inclusive, 689C.165, 689C.183, 689C.187, 689C.191 , 689C.192 to 689C.198, inclusive, 689C.203, 689C.207, 689C.265, [689C.283, 689C.287,] 689C.325, [689C.342 to 689C.348, inclusive,] 689C.355 and 689C.610 to [689C.980,] 689C.940, inclusive, 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] rating factors may be used by such carriers.

      Sec. 70. NRS 689C.156 is hereby amended to read as follows:

      689C.156  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.355, inclusive, and 689C.610 to [689C.980,] 689C.940, inclusive, 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.

      3.  If a health benefit plan marketed pursuant to this section provides, delivers, arranges for, pays for or reimburses any cost of health care services through managed care, the carrier shall provide a system for resolving any complaints of an employee concerning those health care services that complies with the provisions of NRS 695G.200 to 695G.310, inclusive.

 


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      Sec. 71. NRS 689C.159 is hereby amended to read as follows:

      689C.159  The provisions of NRS 689C.156 [, 689C.157] and 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. 72. NRS 689C.160 is hereby amended to read as follows:

      689C.160  The requirements used by a carrier serving small employers to determine whether to provide coverage to a small employer, including, without limitation, [standards for medical underwriting,] requirements for minimum participation of eligible employees and minimum employer’s contributions, must be applied uniformly among all small employers with the same number of eligible employees applying for coverage or receiving coverage from the carrier.

      Sec. 73. NRS 689C.169 is hereby amended to read as follows:

      689C.169  1.  [Notwithstanding any provisions of this title to the contrary, a] A policy of group health insurance delivered or issued for delivery in this State pursuant to this chapter must provide coverage for the treatment of conditions relating to severe mental illness.

      2.  [The coverage required by this section:

      (a) Must provide:

             (1) Benefits for at least 40 days of hospitalization as an inpatient per policy year and 40 visits for treatment as an outpatient per policy year, excluding visits for the management of medication; and

             (2) That two visits for partial or respite care, or a combination thereof, may be substituted for each 1 day of hospitalization not used by the insured. In no event is the policy required to provide coverage for more than 40 days of hospitalization as an inpatient per policy year.

      (b) Is not required to provide benefits for psychosocial rehabilitation or care received as a custodial inpatient.

      3.  Any deductibles and copayments required to be paid for the coverage required by this section must not be greater than 150 percent of the out-of-pocket expenses required to be paid for medical and surgical benefits provided pursuant to the policy of group health insurance.

      4.  The provisions of this section do not apply to a policy of group health insurance if, at the end of the policy year, the premiums charged for that policy, or a standard grouping of policies, increase by more than 2 percent as a result of providing the coverage required by this section and the insurer obtains an exemption from the Commissioner pursuant to subsection 5.

      5.  To obtain the exemption required by subsection 4, an insurer must submit to the Commissioner a written request therefor that is signed by an actuary and sets forth the reasons and actuarial assumptions upon which the request is based. To determine whether an exemption may be granted, the Commissioner shall subtract from the amount of premiums charged during the policy year the amount of premiums charged during the period immediately preceding the policy year and the amount of any increase in the premiums charged that is attributable to factors that are unrelated to providing the coverage required by this section. The Commissioner shall verify the information within 30 days after receiving the request. The request shall be deemed approved if the Commissioner does not deny the request within that time.

      6.  The provisions of this section do not:

 


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κ2013 Statutes of Nevada, Page 3628 (CHAPTER 541, AB 425)κ

 

      (a) Limit the provision of specialized services covered by Medicaid for persons with conditions relating to mental health or substance abuse.

      (b) Supersede any provision of federal law, any federal or state policy relating to Medicaid, or the terms and conditions imposed on any Medicaid waiver granted to this State with respect to the provisions of services to persons with conditions relating to mental health or substance abuse.

      7.  A policy of group health insurance subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after October 3, 2009, has the legal effect of including the coverage required by this section, and any provision of the policy or the renewal which is in conflict with this section is void, unless the policy is otherwise exempt from the provisions of this section pursuant to subsection 4.

      8.]  As used in this section, “severe mental illness” means any of the following mental illnesses that are biologically based and for which diagnostic criteria are prescribed in the latest edition of the Diagnostic and Statistical Manual of Mental Disorders, [Fourth Edition,] published by the American Psychiatric Association:

      (a) Schizophrenia.

      (b) Schizoaffective disorder.

      (c) Bipolar disorder.

      (d) Major depressive disorders.

      (e) Panic disorder.

      (f) Obsessive-compulsive disorder.

      Sec. 74. NRS 689C.190 is hereby amended to read as follows:

      689C.190  [1.  Except as otherwise provided in this section, a] A carrier serving small employers that issues a health benefit plan shall not deny, exclude or limit a benefit for a preexisting condition . [:

      (a) For 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) 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 NRS 689C.082.

      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. 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 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.

 


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      4.  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 the person’s 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.

Κ 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 a dependent of the eligible employee, 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 a dependent of the eligible employee 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 or her 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.

 


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      (f) The person has continued coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 and such coverage has been exhausted.]

      Sec. 75. NRS 689C.191 is hereby amended to read as follows:

      689C.191  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 the eligible employee in accordance with NRS 689C.192 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 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.

      4.  The provisions of this section apply only to grandfathered plans.

      Sec. 76. NRS 689C.193 is hereby amended to read as follows:

      689C.193  1.  A carrier shall not place any restriction on a small employer or an eligible employee or a dependent of the eligible employee 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.355, inclusive.

      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 a dependent of the eligible employee:

      (a) Health status.

      (b) Medical condition, including physical and mental illnesses, or both.

      (c) Claims experience.

      (d) Receipt of health care.

      (e) Medical history.

 


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      (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] 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 a dependent of the person.

      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. 77. NRS 689C.200 is hereby amended to read as follows:

      689C.200  A carrier serving small employers is not required to accept applications from or offer coverage to:

      1.  A small employer if the employer is not physically located in the carrier’s [established] geographic service area; or

      2.  An employee if the employee does not work or reside within the carrier’s [established] geographic service area.

      Sec. 78. NRS 689C.250 is hereby amended to read as follows:

      689C.250  [A carrier serving small employers shall make the information and documents described in NRS 689C.210 to 689C.240, inclusive, available to the Commissioner upon request.]

      1.  Except in cases of violations of NRS 689C.015 to 689C.355, inclusive, the [information is] unified rate review template and rate filing documentation used by carriers servicing small employers are considered proprietary, [constitutes] constitute a trade secret, and [is] are not subject to disclosure by the Commissioner to persons outside of the Division except as agreed to by the carrier or as ordered by a court of competent jurisdiction.

 


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disclosure by the Commissioner to persons outside of the Division except as agreed to by the carrier or as ordered by a court of competent jurisdiction.

      2.  As used in this section, “rate filing documentation” and “unified rate review template” have the meanings ascribed to them in 45 C.F.R § 154.215.

      Sec. 79. 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 service 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;

      (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 a dependent of the particular employee from coverage under a health benefit plan as a condition to renewal of the plan if the employee or dependent of the employee commits fraud upon the carrier or misrepresents a material fact which affects his or her coverage under the plan.

      4.  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.

      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.

 


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      (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 dependent of the eligible employee.

      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. 80. 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 service 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).

      (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.

      2.  A carrier that cancels any health benefit plan because it has discontinued transacting insurance in this State or in a particular geographic service area of this State:

      (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 5 years after it gives notice to the Commissioner pursuant to paragraph (b) of subsection 1.

      Sec. 81. NRS 689C.325 is hereby amended to read as follows:

      689C.325 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.

 


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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. 82. (Deleted by amendment.)

      Sec. 83. NRS 689C.350 is hereby amended to read as follows:

      689C.350  A health benefit plan which offers a difference of payment between preferred providers of health care and providers of health care who are not preferred:

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

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

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

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

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

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

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

      Sec. 84. NRS 689C.355 is hereby amended to read as follows:

      689C.355  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.

 


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      (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.]

      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] producer to advise and represent the best interests of a small employer who is seeking health insurance coverage from a small employer carrier.

      Sec. 85. NRS 689C.390 is hereby amended to read as follows:

      689C.390  “Dependent” means a spouse, [an unmarried] a domestic partner as defined in NRS 122A.030, or a child [who has not attained 19] on or before the last day of the month in which the child attains 26 years of age . [, an unmarried child who is a full-time student who has not attained 24 years of age and who is financially dependent upon the parent, and an unmarried child of any age who is medically certified as disabled and dependent upon the parent.]

      Sec. 86. NRS 689C.610 is hereby amended to read as follows:

      689C.610  As used in NRS 689C.610 to [689C.980,] 689C.940, inclusive, unless the context otherwise requires, the words and terms defined in NRS [689C.620 to 689C.730, inclusive,] 689C.630, 689C.660 and 689C.670 have the meanings ascribed to them in those sections.

      Sec. 87. (Deleted by amendment.)

 


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      Sec. 88. NRS 695A.152 is hereby amended to read as follows:

      695A.152  1.  To the extent reasonably applicable, a fraternal benefit society shall comply with the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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 NRS 689B.340 to [689B.590,] 689B.580, inclusive, and chapter 689C of NRS, the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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. 89. 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,

Κ 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 NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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 or she 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 or her adoption or the assumption of a legal obligation for his or her support in anticipation of his or her adoption.

      Sec. 90. NRS 695B.187 is hereby amended to read as follows:

      695B.187  Except as otherwise provided by the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance:

      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,

Κ 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 the employees of the employer, any benefits provided by the previous policy or coverage may be reduced if notice of the reduction is given to the employees of the employer 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.

 


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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 the employees of the self-insured employer 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. 91. 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, and] 689B.340 to [689B.590,] 689B.580, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance.

      Sec. 92. NRS 695B.192 is hereby amended to read as follows:

      695B.192  1.  No hospital, medical or dental service contract issued by a corporation 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 NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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

      (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. 93. NRS 695B.251 is hereby amended to read as follows:

      695B.251  1.  Except as otherwise provided in the provisions of this section, NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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 or her 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.

      3.  If an employee or member was a recipient of benefits under the coverage provided pursuant to NRS 695B.1944, the employee or member is not entitled to have issued to him or her by a replacement insurer a subscriber contract of health coverage unless the employee or member has reported for his or her 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.

 


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reported for his or her 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. 94. NRS 695B.259 is hereby amended to read as follows:

      695B.259  The medical service corporation may continue coverage identical to that provided under the group contract instead of issuing a converted contract. Coverage may be offered by amending the group certificate or by issuing an individual contract and [, except as otherwise provided in NRS 689B.245 to 689B.249, inclusive,] must otherwise comply with every requirement of NRS 695B.251 to 695B.259, inclusive.

      Sec. 95. NRS 695B.318 is hereby amended to read as follows:

      695B.318  1.  Nonprofit hospital, medical or dental service corporations are subject to the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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 NRS 689B.340 to [689B.590,] 689B.580, inclusive, and chapter 689C of NRS, the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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) “Carrier” must be replaced by “corporation.”

      (b) “Group health plan” must be replaced by “group contract for hospital, medical or dental services.”

      Sec. 95.5. 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, 687B.010 to 687B.040, inclusive, 687B.070 to 687B.140, inclusive, 687B.150, 687B.160, 687B.180, 687B.200 to 687B.255, inclusive, 687B.270, 687B.310 to 687B.380, inclusive, 687B.410, 687B.420, 687B.430, and section 33.8 of this act, and chapters 692C and 696B of NRS, to the extent applicable and not in conflict with the express provisions of this chapter.

      Sec. 96. NRS 695C.050 is hereby amended to read as follows:

      695C.050  1.  Except as otherwise provided in this chapter or in specific provisions of this title, the provisions of this title are not applicable to any health maintenance organization granted a certificate of authority under this chapter. This provision does not apply to an insurer licensed and regulated pursuant to this title except with respect to its activities as a health maintenance organization authorized and regulated pursuant to this chapter.

      2.  Solicitation of enrollees by a health maintenance organization granted a certificate of authority, or its representatives, must not be construed to violate any provision of law relating to solicitation or advertising by practitioners of a healing art.

      3.  Any health maintenance organization authorized under this chapter shall not be deemed to be practicing medicine and is exempt from the provisions of chapter 630 of NRS.

      4.  The provisions of NRS 695C.110, 695C.125, 695C.1691, 695C.1693, 695C.170 to 695C.173, inclusive, 695C.1733 to 695C.200, inclusive, [695C.250] and 695C.265 do not apply to a health maintenance organization that provides health care services through managed care to recipients of Medicaid under the State Plan for Medicaid or insurance pursuant to the Children’s Health Insurance Program pursuant to a contract with the Division of Health Care Financing and Policy of the Department of Health and Human Services.

 


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recipients of Medicaid under the State Plan for Medicaid or insurance pursuant to the Children’s Health Insurance Program pursuant to a contract with the Division of Health Care Financing and Policy of the Department of Health and Human Services. This subsection does not exempt a health maintenance organization from any provision of this chapter for services provided pursuant to any other contract.

      5.  The provisions of NRS 695C.1694, 695C.1695 and 695C.1731 apply to a health maintenance organization that provides health care services through managed care to recipients of Medicaid under the State Plan for Medicaid.

      Sec. 96.5. NRS 695C.055 is hereby amended to read as follows:

      695C.055  1.  The provisions of NRS 449.465, 679A.200, 679B.700, subsections 2, 4, 18, 19 and 32 of NRS 680B.010, NRS 680B.020 to 680B.060, inclusive, and section 33.8 of this act, and chapters 686A and 695G of NRS 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. 97. NRS 695C.057 is hereby amended to read as follows:

      695C.057  1.  A health maintenance organization is subject to the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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 NRS 689B.340 to [689B.590,] 689B.580, inclusive, and chapter 689C of NRS, the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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 “health maintenance organization.”

      Sec. 98. NRS 695C.080 is hereby amended to read as follows:

      695C.080  1.  [Upon receipt of an application for issuance of a certificate of authority, the Commissioner shall forthwith transmit copies of such application and accompanying documents to the State Board of Health.

      2.]  The [State Board of Health] Commissioner shall determine whether the applicant for a certificate of authority, with respect to health care services to be furnished:

      (a) Has demonstrated the willingness and ability to ensure that such health care services will be provided in a manner to ensure both availability and accessibility of adequate personnel and facilities and in a manner enhancing availability, accessibility and continuity of service;

      (b) Has organizational arrangements, established in accordance with regulations promulgated by the Commissioner and in consultation with the State Board of Health; and

      (c) Has a procedure established in accordance with regulations of the [State Board of Health] Commissioner to develop, compile, evaluate and report statistics relating to the cost of its operations, the pattern of utilization of its services, the availability and accessibility of its services and such other matters as may be reasonably required by the [State Board of Health.

      3.]Commissioner.

 


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      2.  Within 90 days of receipt of the application for issuance of a certificate of authority, the [State Board of Health shall certify to the] Commissioner shall certify whether the proposed health maintenance organization meets the requirements of subsection [2.] 1. If the [State Board of Health] Commissioner certifies that the health maintenance organization does not meet such requirements, it shall specify in what respects it is deficient.

      Sec. 99. NRS 695C.090 is hereby amended to read as follows:

      695C.090  The Commissioner shall issue or deny a certificate of authority to any person filing an application pursuant to NRS 695C.060 within 90 days [of receipt of the] after certification . [from the State Board of Health.] Issuance of a certificate of authority must be granted upon payment of the fees prescribed in NRS 695C.230 if the Commissioner is satisfied that the following conditions are met:

      1.  The persons responsible for the conduct of the affairs of the applicant are competent, trustworthy and possess good reputations.

      2.  The [State Board of Health] Commissioner certifies, in accordance with NRS 695C.080, that the health maintenance organization’s proposed plan of operation meets the requirements of subsection [2] 1 of NRS 695C.080.

      3.  The health care plan furnishes comprehensive health care services.

      4.  The health maintenance organization is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees. In making this determination, the Commissioner may consider:

      (a) The financial soundness of the health care plan’s arrangements for health care services and the schedule of charges used in connection therewith;

      (b) The adequacy of working capital;

      (c) Any agreement with an insurer, a government, or any other organization for insuring the payment of the cost of health care services;

      (d) Any agreement with providers for the provision of health care services; and

      (e) Any surety bond or deposit of cash or securities submitted in accordance with NRS 695C.270 as a guarantee that the obligations will be duly performed.

      5.  The enrollees will be afforded an opportunity to participate in matters of program content pursuant to NRS 695C.110.

      6.  Nothing in the proposed method of operation, as shown by the information submitted pursuant to NRS 695C.060, 695C.070 and 695C.140, or by independent investigation is contrary to the public interest.

      Sec. 100. NRS 695C.140 is hereby amended to read as follows:

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

      2.  The Commissioner may adopt regulations to carry out the provisions of this section.

 


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      Sec. 101. NRS 695C.1693 is hereby amended to read as follows:

      695C.1693  1.  Except as otherwise provided in NRS 695C.050, a health care plan issued by a health maintenance organization must provide coverage for medical treatment which an enrollee receives as part of a clinical trial or study if:

      (a) The medical treatment is provided in a Phase I, Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;

      (c) In the case of:

             (1) A Phase I clinical trial or study for the treatment of cancer, the medical treatment is provided at a facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer; or

             (2) A Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome, the medical treatment is provided by a provider of health care and the facility and personnel for the clinical trial or study have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this State; and

      (g) The enrollee has signed, before participating in the clinical trial or study, a statement of consent indicating that the enrollee has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:

      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the enrollee.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study or as a result of any complication arising out of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study, to the extent that such health care services would otherwise be covered under the health care plan.

 


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      (c) The cost of any routine health care services that would otherwise be covered under the health care plan for an enrollee in a Phase I clinical trial or study.

      (d) The initial consultation to determine whether the enrollee is eligible to participate in the clinical trial or study.

      (e) Health care services required for the clinically appropriate monitoring of the enrollee during a Phase II, Phase III or Phase IV clinical trial or study.

      (f) Health care services which are required for the clinically appropriate monitoring of the enrollee during a Phase I clinical trial or study and which are not directly related to the clinical trial or study.

Κ Except as otherwise provided in NRS 695C.1691, the services provided pursuant to paragraphs (b), (c), (e) and (f) must be covered only if the services are provided by a provider with whom the health maintenance organization has contracted for such services. If the health maintenance organization has not contracted for the provision of such services, the health maintenance organization shall pay the provider the rate of reimbursement that is paid to other providers with whom the health maintenance organization has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to an enrollee is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the enrollee.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the enrollee’s health care plan, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the enrollee during the clinical trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the enrollee.

      (h) Any costs for the management of research relating to the clinical trial or study.

      5.  A health maintenance organization that delivers or issues for delivery a health care plan specified in subsection 1 may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the enrollee, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

 


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study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  A health maintenance organization that delivers or issues for delivery a health care plan specified in subsection 1 shall [:

      (a) Include in the disclosure required pursuant to NRS 695C.193 notice to each enrollee of the availability of the benefits required by this section.

      (b) Provide] provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the plan.

      7.  A health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2006, has the legal effect of including the coverage required by this section, and any provision of the plan that conflicts with this section is void.

      8.  A health maintenance organization that delivers or issues for delivery a health care plan specified in subsection 1 is immune from liability for:

      (a) Any injury to an enrollee caused by:

             (1) Any medical treatment provided to the enrollee in connection with his or her participation in a clinical trial or study described in this section; or

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the enrollee in connection with his or her participation in a clinical trial or study described in this section.

      (b) Any adverse or unanticipated outcome arising out of an enrollee’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer” means a facility or an affiliate of a facility that:

             (1) Has in place a Phase I program which permits only selective participation in the program and which uses clear-cut criteria to determine eligibility for participation in the program;

             (2) Operates a protocol review and monitoring system which conforms to the standards set forth in the Policies and Guidelines Relating to the Cancer-Center Support Grant published by the Cancer Centers Branch of the National Cancer Institute;

             (3) Employs at least two researchers and at least one of those researchers receives funding from a federal grant;

             (4) Employs at least three clinical investigators who have experience working in Phase I clinical trials or studies conducted at a facility designated as a comprehensive cancer center by the National Cancer Institute;

             (5) Possesses specialized resources for use in Phase I clinical trials or studies, including, without limitation, equipment that facilitates research and analysis in proteomics, genomics and pharmacokinetics;

             (6) Is capable of gathering, maintaining and reporting electronic data; and

             (7) Is capable of responding to audits instituted by federal and state agencies.

 


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      (c) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 or 633 of NRS.

      Sec. 102. NRS 695C.1705 is hereby amended to read as follows:

      695C.1705  Except as otherwise provided in the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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,

Κ 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 the employees of the employer, any benefits provided by the previous policy or coverage may be reduced if notice of the reduction is given to the 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, the employee or enrollee is not entitled to have issued to him or her by a health maintenance organization a replacement plan unless the employee or enrollee has reported for his or her 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 the employees of the self-insured employer and replaces those benefits with a group health care plan issued by a health maintenance organization.

      Sec. 103. 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 NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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:

 


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      (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. 104. NRS 695C.1727 is hereby amended to read as follows:

      695C.1727  1.  No evidence of coverage that provides coverage for hospital, medical or surgical expenses may be delivered or issued for delivery in this state unless the evidence of coverage includes coverage for the management and treatment of diabetes, including, without limitation, coverage for the self-management of diabetes.

      2.  An insurer who delivers or issues for delivery an evidence of coverage specified in subsection 1 [:

      (a) Shall include in the disclosure required pursuant to NRS 695C.193 notice to each enrollee under the evidence of coverage of the availability of the benefits required by this section.

      (b) Shall] shall provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for the evidence of coverage that are required under the evidence of coverage.

      3.  Evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 1998, has the legal effect of including the coverage required by this section, and any provision of the evidence of coverage that conflicts with this section is void.

      4.  As used in this section:

      (a) “Coverage for the management and treatment of diabetes” includes coverage for medication, equipment, supplies and appliances that are medically necessary for the treatment of diabetes.

      (b) “Coverage for the self-management of diabetes” includes:

             (1) The training and education provided to the enrollee after the enrollee is initially diagnosed with diabetes which is medically necessary for the care and management of diabetes, including, without limitation, counseling in nutrition and the proper use of equipment and supplies for the treatment of diabetes;

             (2) Training and education which is medically necessary as a result of a subsequent diagnosis that indicates a significant change in the symptoms or condition of the enrollee and which requires modification of the enrollee’s program of self-management of diabetes; and

             (3) Training and education which is medically necessary because of the development of new techniques and treatment for diabetes.

      (c) “Diabetes” includes type I, type II and gestational diabetes.

      Sec. 105. NRS 695C.1745 is hereby amended to read as follows:

      695C.1745  1.  A health care plan of a health maintenance organization must provide coverage for benefits payable for expenses incurred for administering the human papillomavirus vaccine [to women and girls at such ages] as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

 


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United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  A health care plan of a health maintenance organization must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.  Any evidence of coverage subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after July 1, 2007, has the legal effect of including the coverage required by subsection 1, and any provision of the evidence of coverage or the renewal which is in conflict with subsection 1 is void.

      4.  For the purposes of this section, “human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      Sec. 106. NRS 695C.200 is hereby amended to read as follows:

      695C.200  The Commissioner shall within a reasonable period approve any form if the requirements of NRS 695C.170 are met . [and any schedule of charges if the requirements of NRS 695C.180 are met.] It is unlawful to issue such form or to use such schedule of charges until approved. If the Commissioner disapproves such filing, the Commissioner shall notify the filer. In the notice, the Commissioner shall specify the reasons for disapproval. A hearing will be granted within 90 days after a request in writing by the person filing.

      Sec. 107. NRS 695C.210 is hereby amended to read as follows:

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

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

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

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

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

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

      (e) A summary of information compiled pursuant to paragraph (c) of subsection [2] 1 of NRS 695C.080 in such form as required by the [State Board of Health;] Commissioner; and

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

      3.  Every health maintenance organization shall file with the Commissioner annually an audited financial statement of the organization prepared by an independent certified public accountant.

 


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prepared by an independent certified public accountant. The statement must cover the preceding 12-month period and must be filed with the Commissioner within 120 days after the end of the organization’s fiscal year. Upon written request, the Commissioner may grant a 30-day extension.

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

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

      Sec. 108. NRS 695C.310 is hereby amended to read as follows:

      695C.310  1.  The Commissioner shall make an examination of the affairs of any health maintenance organization and providers with whom such organization has contracts, agreements or other arrangements pursuant to its health care plan as often as the Commissioner deems it necessary for the protection of the interests of the people of this State. An examination must be made not less frequently than once every 3 years.

      2.  The [State Board of Health] Commissioner shall make an examination concerning the quality of health care services of any health maintenance organization and providers with whom such organization has contracts, agreements or other arrangements pursuant to its health care plan as often as it deems necessary for the protection of the interests of the people of this State. An examination must be made not less frequently than once every 3 years.

      3.  Every health maintenance organization and provider shall submit its books and records relating to the health care plan to an examination made pursuant to subsection 1 or 2 and in every way facilitate the examination. Medical records of natural persons and records of physicians providing service pursuant to a contract to the health maintenance organization are not subject to such examination, although the records are subject to subpoena upon a showing of good cause. For the purpose of examinations, the Commissioner [and the State Board of Health] may administer oaths to, and examine the officers and agents of the health maintenance organization and the principals of such providers concerning their business.

      4.  The expenses of examinations pursuant to this section must be assessed against the organization being examined and remitted to the Commissioner . [or the State Board of Health, whichever is appropriate.]

      5.  In lieu of such examination, the Commissioner may accept the report of an examination made by the insurance commissioner or the state board of health of another state.

      Sec. 109. NRS 695C.330 is hereby amended to read as follows:

      695C.330  1.  The Commissioner may suspend or revoke any certificate of authority issued to a health maintenance organization pursuant to the provisions of this chapter if the Commissioner finds that any of the following conditions exist:

      (a) The health maintenance organization is operating significantly in contravention of its basic organizational document, its health care plan or in a manner contrary to that described in and reasonably inferred from any other information submitted pursuant to NRS 695C.060, 695C.070 and 695C.140, unless any amendments to those submissions have been filed with and approved by the Commissioner;

 


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and 695C.140, unless any amendments to those submissions have been filed with and approved by the Commissioner;

      (b) The health maintenance organization issues evidence of coverage or uses a schedule of charges for health care services which do not comply with the requirements of NRS 695C.1691 to 695C.200, inclusive, or 695C.207;

      (c) The health care plan does not furnish comprehensive health care services as provided for in NRS 695C.060;

      (d) The [State Board of Health certifies to the] Commissioner certifies that the health maintenance organization:

             (1) Does not meet the requirements of subsection [2] 1 of NRS 695C.080; or

             (2) Is unable to fulfill its obligations to furnish health care services as required under its health care plan;

      (e) The health maintenance organization is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees;

      (f) The health maintenance organization has failed to put into effect a mechanism affording the enrollees an opportunity to participate in matters relating to the content of programs pursuant to NRS 695C.110;

      (g) The health maintenance organization has failed to put into effect the system required by NRS 695C.260 for:

             (1) Resolving complaints in a manner reasonably to dispose of valid complaints; and

             (2) Conducting external reviews of adverse determinations that comply with the provisions of NRS 695G.241 to 695G.310, inclusive;

      (h) The health maintenance organization or any person on its behalf has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive or unfair manner;

      (i) The continued operation of the health maintenance organization would be hazardous to its enrollees;

      (j) The health maintenance organization fails to provide the coverage required by NRS 695C.1691; or

      (k) The health maintenance organization has otherwise failed to comply substantially with the provisions of this chapter.

      2.  A certificate of authority must be suspended or revoked only after compliance with the requirements of NRS 695C.340.

      3.  If the certificate of authority of a health maintenance organization is suspended, the health maintenance organization shall not, during the period of that suspension, enroll any additional groups or new individual contracts, unless those groups or persons were contracted for before the date of suspension.

      4.  If the certificate of authority of a health maintenance organization is revoked, the organization shall proceed, immediately following the effective date of the order of revocation, to wind up its affairs and shall conduct no further business except as may be essential to the orderly conclusion of the affairs of the organization. It shall engage in no further advertising or solicitation of any kind. The Commissioner may, by written order, permit such further operation of the organization as the Commissioner may find to be in the best interest of enrollees to the end that enrollees are afforded the greatest practical opportunity to obtain continuing coverage for health care.

 


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      Sec. 110. NRS 695C.340 is hereby amended to read as follows:

      695C.340  1.  When the Commissioner has cause to believe that grounds for the denial of an application for a certificate of authority exist, or that grounds for the suspension or revocation of a certificate of authority exist, the Commissioner shall notify the health maintenance organization [and the State Board of Health] in writing specifically stating the grounds for denial, suspension or revocation and fixing a time at least 30 days thereafter for a hearing on the matter.

      2.  [The State Board of Health or its delegated representative shall be in attendance at the hearing and shall participate in the proceedings. The recommendation and findings of the State Board of Health with respect to matters relating to the quality of health maintenance services provided in connection with any decision regarding denial, suspension or revocation of a certificate of authority are conclusive and binding upon the Commissioner.] After the hearing, or upon the failure of the health maintenance organization to appear at the hearing, the Commissioner shall take action as is deemed advisable on written findings which must be mailed to the health maintenance organization . [with a copy thereof to the State Board of Health.] The action of the Commissioner [and the recommendation and findings of the State Board of Health are] is subject to review by the First Judicial District Court of the State of Nevada in and for Carson City. The court may, in disposing of the issue before it, modify, affirm or reverse the order of the Commissioner in whole or in part.

      Sec. 111. NRS 695C.350 is hereby amended to read as follows:

      695C.350  1.  The Commissioner may, in lieu of suspension or revocation of a certificate of authority under NRS 695C.330, levy an administrative penalty in an amount not more than $2,500 for each act or violation, if reasonable notice in writing is given of the intent to levy the penalty.

      2.  Any person who violates the provisions of this chapter is guilty of a misdemeanor.

      3.  If the Commissioner [or the State Board of Health] for any reason [have] has cause to believe that any violation of this chapter has occurred or is threatened, the Commissioner [or the State Board of Health] may give notice to the health maintenance organization and to the representatives, or other persons who appear to be involved in the suspected violation, to arrange a conference with the alleged violators or their authorized representatives to attempt to determine the facts relating to the suspected violation, and, if it appears that any violation has occurred or is threatened, to arrive at an adequate and effective means of correcting or preventing the violation.

      4.  The proceedings conducted pursuant to the provisions of subsection 3 must not be governed by any formal procedural requirements, and may be conducted in such manner as the Commissioner [or the State Board of Health] may deem appropriate under the circumstances.

      5.  The Commissioner may issue an order directing a health maintenance organization or a representative of a health maintenance organization to cease and desist from engaging in any act or practice in violation of the provisions of this chapter.

      6.  Within 30 days after service of the order to cease and desist, the respondent may request a hearing on the question of whether acts or practices in violation of this chapter have occurred. The hearing must be conducted pursuant to the provisions of chapter 233B of NRS and judicial review must be available as provided therein.

 


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conducted pursuant to the provisions of chapter 233B of NRS and judicial review must be available as provided therein.

      7.  In the case of any violation of the provisions of this chapter, if the Commissioner elects not to issue a cease and desist order, or in the event of noncompliance with a cease and desist order issued pursuant to subsection 5, the Commissioner may institute a proceeding to obtain injunctive relief, or seek other appropriate relief in the district court of the judicial district of the county in which the violator resides.

      Sec. 112. 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, 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 NRS 679B.700.

      7.  Chapter 683A of NRS.

      8.  To the extent applicable, the provisions of NRS 689B.340 to [689B.590,] 689B.580, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance.

      9.  NRS 689A.035, 689A.410, 689A.413 and 689A.415.

      10.  NRS 680B.025 to 680B.039, inclusive, concerning premium tax, premium tax rate, annual report and estimated quarterly tax payments. For the purposes of this subsection, unless the context otherwise requires that a section apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “prepaid limited health service organization.”

      11.  Chapter 692C of NRS, concerning holding companies.

      12.  NRS 689A.637, concerning health centers.

      Sec. 113. NRS 695G.130 is hereby amended to read as follows:

      695G.130  1.  In addition to any other report which is required to be filed with the Commissioner , [or the State Board of Health,] each managed care organization shall file with the Commissioner , [and the State Board of Health,] on or before March 1 of each year, a report regarding its methods for reviewing the quality of health care services provided to its insureds.

      2.  Each managed care organization shall include in its report the criteria, data, benchmarks or studies used to:

      (a) Assess the nature, scope, quality and accessibility of health care services provided to insureds; or

      (b) Determine any reduction or modification of the provision of health care services to insureds.

      3.  Except as already required to be filed with the Commissioner , [or the State Board of Health,] if the managed care organization is not owned and operated by a public entity and has more than 100 insureds, the report filed pursuant to subsection 1 must include:

 


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      (a) A copy of all of its quarterly and annual financial reports;

      (b) A statement of any financial interest it has in any other business which is related to health care that is greater than 5 percent of that business or $5,000, whichever is less; and

      (c) A description of each complaint filed with or against it that resulted in arbitration, a lawsuit or other legal proceeding, unless disclosure is prohibited by law or a court order.

      4.  A report filed pursuant to this section must be made available for public inspection within a reasonable time after it is received by the Commissioner.

      Sec. 114. NRS 695G.171 is hereby amended to read as follows:

      695G.171  1.  A health care plan issued by a managed care organization must provide coverage for benefits payable for expenses incurred for administering the human papillomavirus vaccine [to women and girls at such ages] as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  A health care plan must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.  An evidence of coverage for a health care plan subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after July 1, 2007, has the legal effect of including the coverage required by subsection 1, and any provision of the evidence of coverage or the renewal thereof which is in conflict with subsection 1 is void.

      4.  For the purposes of this section, “human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      Sec. 115. NRS 695G.173 is hereby amended to read as follows:

      695G.173  1.  A health care plan issued by a managed care organization must provide coverage for medical treatment which a person insured under the plan receives as part of a clinical trial or study if:

      (a) The medical treatment is provided in a Phase I, Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;

      (c) In the case of:

             (1) A Phase I clinical trial or study for the treatment of cancer, the medical treatment is provided at a facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer; or

             (2) A Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome, the medical treatment is provided by a provider of health care and the facility and personnel for the clinical trial or study have the experience and training to provide the treatment in a capable manner;

 


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provided by a provider of health care and the facility and personnel for the clinical trial or study have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this State; and

      (g) The insured has signed, before participating in the clinical trial or study, a statement of consent indicating that the insured has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:

      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the insured.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study or as a result of any complication arising out of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study, to the extent that such health care services would otherwise be covered under the health care plan.

      (c) The cost of any routine health care services that would otherwise be covered under the health care plan for an insured in a Phase I clinical trial or study.

      (d) The initial consultation to determine whether the insured is eligible to participate in the clinical trial or study.

      (e) Health care services required for the clinically appropriate monitoring of the insured during a Phase II, Phase III or Phase IV clinical trial or study.

      (f) Health care services which are required for the clinically appropriate monitoring of the insured during a Phase I clinical trial or study and which are not directly related to the clinical trial or study.

Κ Except as otherwise provided in NRS 695G.164, the services provided pursuant to paragraphs (b), (c), (e) and (f) must be covered only if the services are provided by a provider with whom the managed care organization has contracted for such services. If the managed care organization has not contracted for the provision of such services, the managed care organization shall pay the provider the rate of reimbursement that is paid to other providers with whom the managed care organization has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to a person insured under the plan is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the person insured under the plan.

 


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this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the person insured under the plan.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the insured’s health care plan, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the insured during the clinical trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the insured.

      (h) Any costs for the management of research relating to the clinical trial or study.

      5.  A managed care organization that delivers or issues for delivery a health care plan specified in subsection 1 may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the insured, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  A managed care organization that delivers or issues for delivery a health care plan specified in subsection 1 shall [:

      (a) Include in the disclosure required pursuant to NRS 695C.193 notice to each person insured under the plan of the availability of the benefits required by this section.

      (b) Provide] provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the plan.

      7.  A health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2006, has the legal effect of including the coverage required by this section, and any provision of the plan that conflicts with this section is void.

      8.  A managed care organization that delivers or issues for delivery a health care plan specified in subsection 1 is immune from liability for:

      (a) Any injury to an insured caused by:

             (1) Any medical treatment provided to the insured in connection with his or her participation in a clinical trial or study described in this section; or

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the insured in connection with his or her participation in a clinical trial or study described in this section.

 


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      (b) Any adverse or unanticipated outcome arising out of an insured’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer” means a facility or an affiliate of a facility that:

             (1) Has in place a Phase I program which permits only selective participation in the program and which uses clear-cut criteria to determine eligibility for participation in the program;

             (2) Operates a protocol review and monitoring system which conforms to the standards set forth in the Policies and Guidelines Relating to the Cancer-Center Support Grant published by the Cancer Centers Branch of the National Cancer Institute;

             (3) Employs at least two researchers and at least one of those researchers receives funding from a federal grant;

             (4) Employs at least three clinical investigators who have experience working in Phase I clinical trials or studies conducted at a facility designated as a comprehensive cancer center by the National Cancer Institute;

             (5) Possesses specialized resources for use in Phase I clinical trials or studies, including, without limitation, equipment that facilitates research and analysis in proteomics, genomics and pharmacokinetics;

             (6) Is capable of gathering, maintaining and reporting electronic data; and

             (7) Is capable of responding to audits instituted by federal and state agencies.

      (c) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 or 633 of NRS.

      Sec. 116. NRS 695G.200 is hereby amended to read as follows:

      695G.200  1.  Each managed care organization shall establish a system for resolving complaints of an insured concerning:

      (a) Payment or reimbursement for covered health care services;

      (b) Availability, delivery or quality of covered health care services, including, without limitation, an adverse determination made pursuant to utilization review; or

      (c) The terms and conditions of a health care plan.

Κ The system must be approved by the Commissioner in consultation with the State Board of Health.

      2.  If an insured makes an oral complaint, a managed care organization shall inform the insured that if the insured is not satisfied with the resolution of the complaint, the insured must file the complaint in writing to receive further review of the complaint.

      3.  Each managed care organization shall:

      (a) Upon request, assign an employee of the managed care organization to assist an insured or other person in filing a complaint or appealing a decision of the review board;

 


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      (b) Authorize an insured who appeals a decision of the review board to appear before the review board to present testimony at a hearing concerning the appeal; and

      (c) Authorize an insured to introduce any documentation into evidence at a hearing of a review board and require an insured to provide the documentation required by the health care plan of the insured to the review board not later than 5 business days before a hearing of the review board.

      4.  The Commissioner [or the State Board of Health] may examine the system for resolving complaints established pursuant to this section at such times as either deems necessary or appropriate.

      Sec. 117. NRS 695G.220 is hereby amended to read as follows:

      695G.220  1.  Each managed care organization shall submit to the Commissioner [and the State Board of Health] an annual report regarding its system for resolving complaints established pursuant to NRS 695G.200 on a form prescribed by the Commissioner in consultation with the State Board of Health which includes, without limitation:

      (a) A description of the procedures used for resolving complaints of an insured;

      (b) The total number of complaints and appeals handled through the system for resolving complaints since the last report and a compilation of the causes underlying the complaints filed;

      (c) The current status of each complaint and appeal filed; and

      (d) The average amount of time that was needed to resolve a complaint and an appeal, if any.

      2.  Each managed care organization shall maintain records of complaints filed with it which concern something other than health care services and shall submit to the Commissioner a report summarizing such complaints at such times and in such format as the Commissioner may require.

      Sec. 117.5. NRS 287.010 is hereby amended to read as follows:

      287.010  1.  The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency of the State of Nevada may:

      (a) Adopt and carry into effect a system of group life, accident or health insurance, or any combination thereof, for the benefit of its officers and employees, and the dependents of officers and employees who elect to accept the insurance and who, where necessary, have authorized the governing body to make deductions from their compensation for the payment of premiums on the insurance.

      (b) Purchase group policies of life, accident or health insurance, or any combination thereof, for the benefit of such officers and employees, and the dependents of such officers and employees, as have authorized the purchase, from insurance companies authorized to transact the business of such insurance in the State of Nevada, and, where necessary, deduct from the compensation of officers and employees the premiums upon insurance and pay the deductions upon the premiums.

      (c) Provide group life, accident or health coverage through a self-insurance reserve fund and, where necessary, deduct contributions to the maintenance of the fund from the compensation of officers and employees and pay the deductions into the fund. The money accumulated for this purpose through deductions from the compensation of officers and employees and contributions of the governing body must be maintained as an internal service fund as defined by NRS 354.543. The money must be deposited in a state or national bank or credit union authorized to transact business in the State of Nevada.

 


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deposited in a state or national bank or credit union authorized to transact business in the State of Nevada. Any independent administrator of a fund created under this section is subject to the licensing requirements of chapter 683A of NRS, and must be a resident of this State. Any contract with an independent administrator must be approved by the Commissioner of Insurance as to the reasonableness of administrative charges in relation to contributions collected and benefits provided. The provisions of NRS 687B.408, 689B.030 to 689B.050, inclusive, and 689B.287 [and 689B.575] apply to coverage provided pursuant to this paragraph.

      (d) Defray part or all of the cost of maintenance of a self-insurance fund or of the premiums upon insurance. The money for contributions must be budgeted for in accordance with the laws governing the county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency of the State of Nevada.

      2.  If a school district offers group insurance to its officers and employees pursuant to this section, members of the board of trustees of the school district must not be excluded from participating in the group insurance. If the amount of the deductions from compensation required to pay for the group insurance exceeds the compensation to which a trustee is entitled, the difference must be paid by the trustee.

      3.  In any county in which a legal services organization exists, the governing body of the county, or of any school district, municipal corporation, political subdivision, public corporation or other local governmental agency of the State of Nevada in the county, may enter into a contract with the legal services organization pursuant to which the officers and employees of the legal services organization, and the dependents of those officers and employees, are eligible for any life, accident or health insurance provided pursuant to this section to the officers and employees, and the dependents of the officers and employees, of the county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency.

      4.  If a contract is entered into pursuant to subsection 3, the officers and employees of the legal services organization:

      (a) Shall be deemed, solely for the purposes of this section, to be officers and employees of the county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency with which the legal services organization has contracted; and

      (b) Must be required by the contract to pay the premiums or contributions for all insurance which they elect to accept or of which they authorize the purchase.

      5.  A contract that is entered into pursuant to subsection 3:

      (a) Must be submitted to the Commissioner of Insurance for approval not less than 30 days before the date on which the contract is to become effective.

      (b) Does not become effective unless approved by the Commissioner.

      (c) Shall be deemed to be approved if not disapproved by the Commissioner within 30 days after its submission.

      6.  As used in this section, “legal services organization” means an organization that operates a program for legal aid and receives money pursuant to NRS 19.031.

 


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      Sec. 118. NRS 287.045 is hereby amended to read as follows:

      287.045  1.  Except as otherwise provided in this section, every state officer or employee 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 Nevada System of Higher Education 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 local governmental agency on a permanent and full-time basis on the date on which the participating local governmental agency enters into an agreement to participate in the Program pursuant to paragraph (a) of subsection 1 of NRS 287.025, and every officer or employee who commences employment with that participating local governmental agency 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, unless that officer or employee is excluded pursuant to sub-subparagraph (III) of subparagraph (2) of paragraph (h) of subsection 2 of NRS 287.043.

      4.  Every member of the Senate and Assembly is eligible to participate in the Program on the first day of the month following the 90th day after the member’s initial term of office begins.

      5.  Notwithstanding the provisions of subsections 1, 3 and 4, if the Board does not, pursuant to NRS 689B.580, elect to exclude the Program from compliance with NRS 689B.340 to [689B.590,] 689B.580, inclusive, 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 NRS 689B.500.

      Sec. 118.1. Section 1 of Senate Bill No. 266 of this session is hereby amended to read as follows:

       Section 1. Chapter 689A of NRS is hereby amended by adding thereto a new section to read as follows:

       1.  An insurer that offers or issues a policy of health insurance which provides coverage for the treatment of cancer through the use of chemotherapy shall not:

       (a) Require a copayment, deductible or coinsurance amount for chemotherapy administered orally by means of a prescription drug in a combined amount that is more than $100 per prescription. The limitation on the amount of the deductible that may be required pursuant to this paragraph does not apply to a health benefit plan, as defined in section 33.4 of Assembly Bill No. 425 of this session, if the health benefit plan is a high deductible health plan, as defined in 26 U.S.C. § 223, and the amount of the annual deductible has not been satisfied.

       (b) Make the coverage subject to monetary limits that are less favorable for chemotherapy administered orally by means of a prescription drug than the monetary limits applicable to chemotherapy which is administered by injection or intravenously.

 


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       (c) Decrease the monetary limits applicable to chemotherapy administered orally by means of a prescription drug or to chemotherapy which is administered by injection or intravenously to meet the requirements of this section.

       2.  A policy subject to the provisions of this chapter which provides coverage for the treatment of cancer through the use of chemotherapy and that is delivered, issued for delivery or renewed on or after January 1, 2015, has the legal effect of providing that coverage subject to the requirements of this section, and any provision of the policy or renewal which is in conflict with this section is void.

       3.  Nothing in this section shall be construed as requiring an insurer to provide coverage for the treatment of cancer through the use of chemotherapy administered by injection or intravenously or administered orally by means of a prescription drug.

      Sec. 118.2. Section 3 of Senate Bill No. 266 of this session is hereby amended to read as follows:

       Sec. 3.  Chapter 689B of NRS is hereby amended by adding thereto a new section to read as follows:

       1.  An insurer that offers or issues a policy of group health insurance which provides coverage for the treatment of cancer through the use of chemotherapy shall not:

       (a) Require a copayment, deductible or coinsurance amount for chemotherapy administered orally by means of a prescription drug in a combined amount that is more than $100 per prescription. The limitation on the amount of the deductible that may be required pursuant to this paragraph does not apply to a health benefit plan, as defined in section 33.4 of Assembly Bill No. 425 of this session, if the health benefit plan is a high deductible health plan, as defined in 26 U.S.C. § 223, and the amount of the annual deductible has not been satisfied.

       (b) Make the coverage subject to monetary limits that are less favorable for chemotherapy administered orally by means of a prescription drug than the monetary limits applicable to chemotherapy which is administered by injection or intravenously.

       (c) Decrease the monetary limits applicable to chemotherapy administered orally by means of a prescription drug or to chemotherapy which is administered by injection or intravenously to meet the requirements of this section.

       2.  A policy subject to the provisions of this chapter which provides coverage for the treatment of cancer through the use of chemotherapy and that is delivered, issued for delivery or renewed on or after January 1, 2015, has the legal effect of providing that coverage subject to the requirements of this section, and any provision of the policy or renewal which is in conflict with this section is void.

       3.  Nothing in this section shall be construed as requiring an insurer to provide coverage for the treatment of cancer through the use of chemotherapy administered by injection or intravenously or administered orally by means of a prescription drug.

 


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      Sec. 118.3. Section 4 of Senate Bill No. 266 of this session is hereby amended to read as follows:

       Sec. 4.  Chapter 695B of NRS is hereby amended by adding thereto a new section to read as follows:

       1.  An insurer that offers or issues a contract for hospital or medical service which provides coverage for the treatment of cancer through the use of chemotherapy shall not:

       (a) Require a copayment, deductible or coinsurance amount for chemotherapy administered orally by means of a prescription drug in a combined amount that is more than $100 per prescription. The limitation on the amount of the deductible that may be required pursuant to this paragraph does not apply to a health benefit plan, as defined in section 33.4 of Assembly Bill No. 425 of this session, if the health benefit plan is a high deductible health plan, as defined in 26 U.S.C. § 223, and the amount of the annual deductible has not been satisfied.

       (b) Make the coverage subject to monetary limits that are less favorable for chemotherapy administered orally by means of a prescription drug than the monetary limits applicable to chemotherapy which is administered by injection or intravenously.

       (c) Decrease the monetary limits applicable to chemotherapy administered orally by means of a prescription drug or to chemotherapy which is administered by injection or intravenously to meet the requirements of this section.

       2.  A contract subject to the provisions of this chapter which provides coverage for the treatment of cancer through the use of chemotherapy and that is delivered, issued for delivery or renewed on or after January 1, 2015, has the legal effect of providing that coverage subject to the requirements of this section, and any provision of the contract or renewal which is in conflict with this section is void.

       3.  Nothing in this section shall be construed as requiring an insurer to provide coverage for the treatment of cancer through the use of chemotherapy administered by injection or intravenously or administered orally by means of a prescription drug.

      Sec. 118.4. Section 5 of Senate Bill No. 266 of this session is hereby amended to read as follows:

       Sec. 5.  Chapter 695C of NRS is hereby amended by adding thereto a new section to read as follows:

       1.  A health maintenance organization that offers or issues a health care plan which provides coverage for the treatment of cancer through the use of chemotherapy shall not:

       (a) Require a copayment, deductible or coinsurance amount for chemotherapy administered orally by means of a prescription drug in a combined amount that is more than $100 per prescription. The limitation on the amount of the deductible that may be required pursuant to this paragraph does not apply to a health benefit plan, as defined in section 33.4 of Assembly Bill No. 425 of this session, if the health benefit plan is a high deductible health plan, as defined in 26 U.S.C. § 223, and the amount of the annual deductible has not been satisfied.

 


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       (b) Make the coverage subject to monetary limits that are less favorable for chemotherapy administered orally by means of a prescription drug than the monetary limits applicable to chemotherapy which is administered by injection or intravenously.

       (c) Decrease the monetary limits applicable to such chemotherapy administered orally by means of a prescription drug or to chemotherapy which is administered by injection or intravenously to meet the requirements of this section.

       2.  Evidence of coverage subject to the provisions of this chapter which provides coverage for the treatment of cancer through the use of chemotherapy and that is delivered, issued for delivery or renewed on or after January 1, 2015, has the legal effect of providing that coverage subject to the requirements of this section, and any provision of the evidence of coverage or the renewal which is in conflict with this section is void.

       3.  Nothing in this section shall be construed as requiring a health maintenance organization to provide coverage for the treatment of cancer through the use of chemotherapy administered by injection or intravenously or administered orally by means of a prescription drug.

      Sec. 118.5. Section 8 of Senate Bill No. 266 of this session is hereby amended to read as follows:

       Sec. 8.  Chapter 695G of NRS is hereby amended by adding thereto a new section to read as follows:

       1.  A managed care organization that offers or issues a health care plan which provides coverage for the treatment of cancer through the use of chemotherapy shall not:

       (a) Require a copayment, deductible or coinsurance amount for chemotherapy administered orally by means of a prescription drug in a combined amount that is more than $100 per prescription. The limitation on the amount of the deductible that may be required pursuant to this paragraph does not apply to a health benefit plan, as defined in section 33.4 of Assembly Bill No. 425 of this session, if the health benefit plan is a high deductible health plan, as defined in 26 U.S.C. § 223, and the amount of the annual deductible has not been satisfied.

       (b) Make the coverage subject to monetary limits that are less favorable for chemotherapy administered orally by means of a prescription drug than the monetary limits applicable to chemotherapy which is administered by injection or intravenously.

       (c) Decrease the monetary limits applicable to chemotherapy administered orally by means of a prescription drug or to chemotherapy which is administered by injection or intravenously to meet the requirements of this section.

       2.  An evidence of coverage for a health care plan subject to the provisions of this chapter which provides coverage for the treatment of cancer through the use of chemotherapy and that is delivered, issued for delivery or renewed on or after January 1, 2015, has the legal effect of providing that coverage subject to the requirements of this section, and any provision of the evidence of coverage or the renewal which is in conflict with this section is void.

 


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       3.  Nothing in this section shall be construed as requiring a managed care organization to provide coverage for the treatment of cancer through the use of chemotherapy administered by injection or intravenously or administered orally by means of a prescription drug.

      Sec. 118.6. Section 9 of Senate Bill No. 266 of this session is hereby amended to read as follows:

       Sec. 9.  Chapter 287 of NRS is hereby amended by adding thereto a new section to read as follows:

       1.  The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other local governmental entity of the State of Nevada that provides health insurance through a plan of self-insurance which provides coverage for the treatment of cancer through the use of chemotherapy shall not:

       (a) Require a copayment, deductible or coinsurance amount for chemotherapy administered orally by means of a prescription drug in a combined amount that is more than $100 per prescription. The limitation on the amount of the deductible that may be required pursuant to this paragraph does not apply to a health benefit plan, as defined in section 33.4 of Assembly Bill No. 425 of this session, if the health benefit plan is a high deductible health plan, as defined in 26 U.S.C. § 223, and the amount of the annual deductible has not been satisfied.

       (b) Make the coverage subject to monetary limits that are less favorable for chemotherapy administered orally by means of a prescription drug than the monetary limits applicable to chemotherapy which is administered by injection or intravenously.

       (c) Decrease the monetary limits applicable to such chemotherapy administered orally by means of a prescription drug or to chemotherapy which is administered by injection or intravenously to meet the requirements of this section.

       2.  A plan of self-insurance subject to the provisions of this chapter which provides coverage for the treatment of cancer through the use of chemotherapy and that is delivered, issued for delivery or renewed on or after January 1, 2015, has the legal effect of providing that coverage subject to the requirements of this section, and any provision of the plan or the renewal which is in conflict with this section is void.

       3.  Nothing in this section shall be construed as requiring the governing body of any county, school district, municipal corporation, political subdivision, public corporation or other local governmental entity of the State of Nevada that provides health insurance through a plan of self-insurance to provide coverage for the treatment of cancer through the use of chemotherapy administered by injection or intravenously or administered orally by means of a prescription drug.

      Sec. 119. NRS 689A.045, 689A.370, 689A.480, 689A.500, 689A.515, 689A.545, 689A.560, 689A.565, 689A.575, 689A.595, 689A.605, 689A.610, 689A.620, 689A.640, 689A.645, 689A.650, 689A.655, 689A.660, 689A.665, 689A.670, 689A.675, 689A.680, 689A.685, 689A.730, 689B.120, 689B.130, 689B.140, 689B.150, 689B.170, 689B.180, 689B.200, 689B.210, 689B.245, 689B.246, 689B.247, 689B.248, 689B.249, 689B.283, 689B.410, 689B.420, 689B.470, 689B.575, 689B.590, 689C.021, 689C.035, 689C.051, 689C.076, 689C.084, 689C.

 


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689B.200, 689B.210, 689B.245, 689B.246, 689B.247, 689B.248, 689B.249, 689B.283, 689B.410, 689B.420, 689B.470, 689B.575, 689B.590, 689C.021, 689C.035, 689C.051, 689C.076, 689C.084, 689C.089, 689C.099, 689C.107, 689C.145, 689C.157, 689C.210, 689C.230, 689C.240, 689C.260, 689C.283, 689C.287, 689C.290, 689C.300, 689C.327, 689C.340, 689C.342, 689C.344, 689C.346, 689C.348, 689C.620, 689C.640, 689C.650, 689C.680, 689C.690, 689C.700, 689C.710, 689C.720, 689C.730, 689C.740, 689C.750, 689C.760, 689C.770, 689C.780, 689C.790, 689C.800, 689C.810, 689C.820, 689C.830, 689C.840, 689C.850, 689C.860, 689C.870, 689C.880, 689C.890, 689C.900, 689C.910, 689C.920, 689C.930, 689C.950, 689C.955, 689C.960, 689C.970, 689C.980, 695C.1707, 695C.180, 695C.193, 695C.195, 695C.250 and 695I.050 are hereby repealed.

      Sec. 119.5.  The provisions of sections 27 to 30, inclusive, 32.2, 33 to 66, inclusive, and 67 to 118.6, inclusive, of this act apply to policies which are issued on or after October 1, 2013, and which become effective on or after January 1, 2014.

      Sec. 120.  1.  This section and sections 1 to 26, inclusive, 31 to 32.1, inclusive, 32.5, 32.8 and 118.1 to 118.6, inclusive, of this act become effective upon passage and approval.

      2.  Sections 27 to 30, inclusive, 32.2, 33 to 66, inclusive, 67 to 118, inclusive, 119 and 119.5 of this act become effective:

      (a) Upon passage and approval for the purpose of adopting regulations; and

      (b) On January 1, 2014, for all other purposes.

      3.  Section 66.5 of this act becomes effective on January 1, 2016.

      4.  Sections 13, 14 and 15 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

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

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

Κ are repealed by the Congress of the United States.

________

 

 

 

 

 

 

 

 

 

 

 

 

 


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CHAPTER 542, SB 364

Senate Bill No. 364–Senator Atkinson

 

CHAPTER 542

 

[Approved: June 12, 2013]

 

AN ACT relating to governmental administration; removing the requirement that each governmental agency ensure that any personal information contained in certain documents is either maintained in a confidential manner or removed from the document; removing the requirement that the board of county commissioners in certain larger counties establish in certain cities a branch office of the county clerk at which marriage licenses may be issued; revising provisions relating to recording and filing certificates of marriage; revising provisions governing certain other documents relating to marriage; prohibiting certain solicitations on county property; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law prohibits, with certain exceptions, a governmental agency from requiring a person to include personal information on any document submitted to the governmental agency on or after January 1, 2007. On or before January 1, 2017, each governmental agency is required to ensure that any personal information contained in a document submitted to that agency before January 1, 2007, is either maintained in a confidential manner or removed from the document. (NRS 239B.030) Section 1 of this bill authorizes rather than requires each governmental agency to ensure that any personal information contained in a document submitted to that agency before January 1, 2007, is either maintained in a confidential manner or removed from the document.

      Existing law requires the board of county commissioners in a county whose population is 700,000 or more (currently Clark County) to designate one branch office of the county clerk at which marriage licenses may be issued and establish that office in an incorporated city whose population is 220,000 or more but less than 500,000 (currently the City of Henderson). Existing law also authorizes the board to designate, at the request of the county clerk, not more than four additional branch offices of the county clerk at which marriage licenses can be issued. (NRS 122.040) Section 2 of this bill removes the requirement to establish a branch office at which marriage licenses can be issued in an incorporated city whose population is 220,000 or more but less than 500,000 and allows the board to designate, at the request of the county clerk, not more than five branch offices at which marriage licenses may be issued.

      Existing law requires copies of certificates of marriage to be recorded by the county recorder or filed by the county clerk. (NRS 122.130) Sections 2.5, 5.5 and 8-10 of this bill remove references to “copies” of certificates of marriage so that original certificates of marriage are required to be recorded by the county recorder or filed by the county clerk.

      Sections 3-5 of this bill revise provisions governing certain documents relating to the authority to solemnize marriages.

      Existing law prohibits any person, while on county courthouse property, from soliciting another person to be married by a marriage commissioner or justice of the peace or at a commercial wedding chapel. (NRS 122.215) Section 7 of this bill extends this prohibition to all county property where marriage licenses are issued.

 


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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 239B.030 is hereby amended to read as follows:

      239B.030  1.  Except as otherwise provided in subsections 2 and 6, a person shall not include and a governmental agency shall not require a person to include any personal information about a person on any document that is recorded, filed or otherwise submitted to the governmental agency on or after January 1, 2007.

      2.  If personal information about a person is required to be included in a document that is recorded, filed or otherwise submitted to a governmental agency on or after January 1, 2007, pursuant to a specific state or federal law, for the administration of a public program or for an application for a federal or state grant, a governmental agency shall ensure that the personal information is maintained in a confidential manner and may only disclose the personal information as required:

      (a) To carry out a specific state or federal law; or

      (b) For the administration of a public program or an application for a federal or state grant.

Κ Any action taken by a governmental agency pursuant to this subsection must not be construed as affecting the legality of the document.

      3.  A governmental agency shall take necessary measures to ensure that notice of the provisions of this section is provided to persons with whom it conducts business. Such notice may include, without limitation, posting notice in a conspicuous place in each of its offices.

      4.  A governmental agency may require a person who records, files or otherwise submits any document to the governmental agency to provide an affirmation that the document does not contain personal information about any person or, if the document contains any such personal information, identification of the specific law, public program or grant that requires the inclusion of the personal information. A governmental agency may refuse to record, file or otherwise accept a document which does not contain such an affirmation when required or any document which contains personal information about a person that is not required to be included in the

document pursuant to a specific state or federal law, for the administration of a public program or for an application for a federal or state grant.

      5.  [On or before January 1, 2017, each] Each governmental agency [shall] may ensure that any personal information contained in a document that has been recorded, filed or otherwise submitted to the governmental agency before January 1, 2007, which the governmental agency continues to hold is:

      (a) Maintained in a confidential manner if the personal information is required to be included in the document pursuant to a specific state or federal law, for the administration of a public program or for an application for a federal or state grant; or

      (b) Obliterated or otherwise removed from the document, by any method, including, without limitation, through the use of computer software, if the personal information is not required to be included in the document pursuant to a specific state or federal law, for the administration of a public program or for an application for a federal or state grant.

 


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Κ Any action taken by a governmental agency pursuant to this subsection must not be construed as affecting the legality of the document.

      6.  A person may request that a governmental agency obliterate or otherwise remove from any document submitted by the person to the governmental agency before January 1, 2007, any personal information about the person contained in the document that is not required to be included in the document pursuant to a specific state or federal law, for the administration of a public program or for an application for a federal or state grant or, if the personal information is so required to be included in the document, the person may request that the governmental agency maintain the personal information in a confidential manner. If any documents that have been recorded, filed or otherwise submitted to a governmental agency:

      (a) Are maintained in an electronic format that allows the governmental agency to retrieve components of personal information through the use of computer software, a request pursuant to this subsection must identify the components of personal information to be retrieved. The provisions of this paragraph do not require a governmental agency to purchase computer software to perform the service requested pursuant to this subsection.

      (b) Are not maintained in an electronic format or not maintained in an electronic format in the manner described in paragraph (a), a

request pursuant to this subsection must describe the document with sufficient specificity to enable the governmental agency to identify the document.

Κ The governmental agency shall not charge any fee to perform the service requested pursuant to this subsection.

      7.  As used in this section:

      (a) “Governmental agency” means an officer, board, commission, department, division, bureau, district or any other unit of government of the State or a local government.

      (b) “Personal information” has the meaning ascribed to it in NRS 603A.040.

      Sec. 2. NRS 122.040 is hereby amended to read as follows:

      122.040  1.  Before persons may be joined in marriage, a license must be obtained for that purpose from the county clerk of any county in the State. Except as otherwise provided in this subsection, the license must be issued at the county seat of that county. The board of county commissioners:

      (a) In a county whose population is 700,000 or more [:

             (1) Shall designate one branch office of the county clerk at which marriage licenses may be issued and shall establish and maintain the designated branch office in an incorporated city whose population is 220,000 or more but less than 500,000; and

             (2) May, in addition to the branch office described in subparagraph (1)] may, at the request of the county clerk, designate not more than [four] five branch offices of the county clerk at which marriage licenses may be issued, if the designated branch offices are located outside of the county seat.

      (b) In a county whose population is less than 700,000 may, at the request of the county clerk, designate one branch office of the county clerk at which marriage licenses may be issued, if the designated branch office is established in a county office building which is located outside of the county seat.

      2.  Except as otherwise provided in this section, before issuing a marriage license, the county clerk shall require each applicant to provide proof of the applicant’s name and age.

 


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proof of the applicant’s name and age. The county clerk may accept as proof of the applicant’s name and age an original or certified copy of any of the following:

      (a) A driver’s license, instruction permit or identification card issued by this State or another state, the District of Columbia or any territory of the United States.

      (b) A passport.

      (c) A birth certificate and:

             (1) Any secondary document that contains the name and a photograph of the applicant; or

             (2) Any document for which identification must be verified as a condition to receipt of the document.

Κ If the birth certificate is written in a language other than English, the county clerk may request that the birth certificate be translated into English and notarized.

      (d) A military identification card or military dependent identification card issued by any branch of the Armed Forces of the United States.

      (e) A Certificate of Citizenship, Certificate of Naturalization, Permanent Resident Card or Temporary Resident Card issued by the United States Citizenship and Immigration Services of the Department of Homeland Security.

      (f) Any other document that provides the applicant’s name and age. If the applicant clearly appears over the age of 25 years, no documentation of proof of age is required.

      3.  Except as otherwise provided in subsection 4, the county clerk issuing the license shall require each applicant to answer under oath each of the questions contained in the form of license. The county clerk shall, except as otherwise provided in this subsection, require each applicant to include the applicant’s social security number on the affidavit of application for the marriage license. If a person does not have a social security number, the person must state that fact. The county clerk shall not require any evidence to verify a social security number. If any of the information required is unknown to the person, the person must state that the answer is unknown. The county clerk shall not deny a license to an applicant who states that the applicant does not have a social security number or who states that any requested information concerning the applicant’s parents is unknown.

      4.  Upon finding that extraordinary circumstances exist which result in only one applicant being able to appear before the county clerk, the county clerk may waive the requirements of subsection 3 with respect to the person who is unable to appear before the county clerk, or may refer the applicant to the district court. If the applicant is referred to the district court, the district court may waive the requirements of subsection 3 with respect to the person who is unable to appear before the county clerk. If the district court waives the requirements of subsection 3, the district court shall notify the county clerk in writing. If the county clerk or the district court waives the requirements of subsection 3, the county clerk shall require the applicant who is able to appear before the county clerk to:

      (a) Answer under oath each of the questions contained in the form of license. The applicant shall answer any questions with reference to the other person named in the license.

 


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      (b) Include the applicant’s social security number and the social security number of the other person named in the license on the affidavit of application for the marriage license. If either person does not have a social security number, the person responding to the question must state that fact. The county clerk shall not require any evidence to verify a social security number.

Κ If any of the information required on the application is unknown to the person responding to the question, the person must state that the answer is unknown. The county clerk shall not deny a license to an applicant who states that the applicant does not have a social security number or who states that any requested information concerning the parents of either the person who is responding to the question or the person who is unable to appear is unknown.

      5.  If any of the persons intending to marry are under age and have not been previously married, and if the authorization of a district court is not required, the clerk shall issue the license if the consent of the parent or guardian is:

      (a) Personally given before the clerk;

      (b) Certified under the hand of the parent or guardian, attested by two witnesses, one of whom must appear before the clerk and make oath that the witness saw the parent or guardian subscribe his or her name to the annexed certificate, or heard him or her acknowledge it; or

      (c) In writing, subscribed to and acknowledged before a person authorized by law to administer oaths. A facsimile of the acknowledged writing must be accepted if the original is not available.

      6.  If a parent giving consent to the marriage of a minor pursuant to subsection 5 has a last name different from that of the minor seeking to be married, the county clerk shall accept, as proof that the parent is the legal parent of the minor, a certified copy of the birth certificate of the minor which shows the parent’s first and middle name and which matches the first and middle name of the parent on any document listed in subsection 2.

      7.  If the authorization of a district court is required, the county clerk shall issue the license if that authorization is given to the county clerk in writing.

      8.  All records pertaining to marriage licenses are public records and open to inspection pursuant to the provisions of NRS 239.010.

      9.  A marriage license issued on or after July 1, 1987, expires 1 year after its date of issuance.

      Sec. 2.5. NRS 122.060 is hereby amended to read as follows:

      122.060  1.  The county clerk is entitled to receive as his or her fee for issuing a marriage license the sum of $21.

      2.  The county clerk shall also at the time of issuing the marriage license:

      (a) Collect the sum of $10 and:

             (1) If the board of county commissioners has adopted an ordinance pursuant to NRS 246.100, deposit the sum into the county general fund pursuant to NRS 246.180 for filing the originally signed [copy of the] certificate of marriage described in NRS 122.120.

             (2) If the board of county commissioners has not adopted an ordinance pursuant to NRS 246.100, pay it over to the county recorder as his or her fee for recording the originally signed [copy of the] certificate of marriage described in NRS 122.120.

 


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      (b) Collect the additional fee described in subsection 2 of NRS 246.180, if the board of county commissioners has adopted an ordinance authorizing the collection of such fee, and deposit the fee pursuant to NRS 246.190.

      3.  The county clerk shall also at the time of issuing the marriage license collect the additional sum of $4 for the State of Nevada. The fees collected for the State must be paid over to the county treasurer by the county clerk on or before the fifth day of each month for the preceding calendar month, and must be placed to the credit of the State General Fund. The county treasurer shall remit quarterly all such fees deposited by the county clerk to the State Controller for credit to the State General Fund.

      4.  The county clerk shall also at the time of issuing the marriage license collect the additional sum of $25 for the Account for Aid for Victims of Domestic Violence in the State General Fund. The fees collected for this purpose must be paid over to the county treasurer by the county clerk on or before the fifth day of each month for the preceding calendar month, and must be placed to the credit of that Account. The county treasurer shall, on or before the 15th day of each month, remit those fees deposited by the county clerk to the State Controller for credit to that Account.

      Sec. 3. NRS 122.066 is hereby amended to read as follows:

      122.066  1.  The Secretary of State shall establish and maintain a statewide database of ministers or other persons authorized to solemnize a marriage. The database must:

      (a) Serve as the official list of ministers or other persons authorized to solemnize a marriage approved in this State;

      (b) Provide for a single method of storing and managing the official list;

      (c) Be a uniform, centralized and interactive database;

      (d) Be electronically secure and accessible to each county clerk in this State;

      (e) Contain the name, mailing address and other pertinent information of each minister or other person authorized to solemnize a marriage as prescribed by the Secretary of State; and

      (f) Include a unique identifier assigned by the Secretary of State to each minister or other person authorized to solemnize a marriage.

      2.  If the county clerk approves an application for a certificate of permission to perform marriages, the county clerk shall:

      (a) Enter all information contained in the application into the electronic statewide database of ministers or other persons authorized to solemnize a marriage maintained by the Secretary of State not later than 10 days after the certificate of permission to perform marriages is approved by the county clerk; and

      (b) Provide to the Secretary of State all information related to the minister or other person authorized to solemnize a marriage pursuant to paragraph (e) of subsection 1.

      3.  Upon approval of an application pursuant to subsection 2, the minister or other person authorized to solemnize a marriage:

      (a) Shall comply with the laws of this State governing the solemnization of marriage and conduct of ministers or other persons authorized to solemnize a marriage;

      (b) Is subject to further review or investigation by the county clerk to ensure that he or she continues to meet the statutory requirements for a person authorized to solemnize a marriage; and

 


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κ2013 Statutes of Nevada, Page 3669 (CHAPTER 542, SB 364)κ

 

      (c) Shall provide the county clerk with any changes to his or her status or information, including, without limitation, the address or telephone number of the church or religious organization or any other information pertaining to certification.

      4.  A certificate of permission is valid until the county clerk has received an affidavit of [revocation] removal of authority to solemnize marriages pursuant to NRS 122.0665 [.] or the certificate of permission is revoked pursuant to NRS 122.068.

      5.  An affidavit of [revocation] removal of authority to solemnize marriages that is received pursuant to subsection 4 must be sent to the county clerk within 5 days after the minister or other person authorized to solemnize a marriage ceased to be a member of the church or religious organization in good standing or ceased to be a minister or other person authorized to solemnize a marriage for the church or religious organization.

      6.  If the county clerk in the county where the certificate of permission was issued has reason to believe that the minister or other person authorized to solemnize a marriage is no longer in good standing within his or her church or religious organization, or that he or she is no longer a minister or other person authorized to solemnize a marriage, or that such church or religious organization no longer exists, the county clerk may require satisfactory proof of the good standing of the minister or other person authorized to solemnize a marriage. If such proof is not presented within 15 days, the county clerk shall [revoke] remove the certificate of permission by amending the electronic record of the minister or other person authorized to solemnize a marriage in the statewide database pursuant to subsection 1.

      7.  Except as otherwise provided in subsection 8, if any minister or other person authorized to solemnize a marriage to whom a certificate of permission has been issued severs ties with his or her church or religious organization or moves from the county in which his or her certificate was issued, the certificate shall expire immediately upon such severance or move, and the church or religious organization shall, within 5 days after the severance or move, file an affidavit of [revocation] removal of authority to solemnize marriages pursuant to NRS 122.0665. If the minister or other person authorized to solemnize a marriage voluntarily advises the county clerk of the county in which his or her certificate was issued of his or her severance with his or her church or religious organization, or that he or she has moved from the county, the certificate shall expire immediately upon such severance or move without any notification to the county clerk by the church or religious organization.

      8.  If any minister or other person authorized to solemnize a marriage, who is retired and to whom a certificate of permission has been issued, moves from the county in which his or her certificate was issued to another county in this State, the certificate remains valid until such time as the certificate otherwise expires or is removed or revoked as prescribed by law. The minister or other person authorized to solemnize a marriage must provide his or her new address to the county clerk in the county to which the minister or other person authorized to solemnize a marriage has moved.

      9.  The Secretary of State may adopt regulations concerning the creation and administration of the statewide database. This section does not prohibit the Secretary of State from making the database publicly accessible for the purpose of viewing ministers or other persons who are authorized to solemnize a marriage in this State.

 


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the Secretary of State from making the database publicly accessible for the purpose of viewing ministers or other persons who are authorized to solemnize a marriage in this State.

      Sec. 4. NRS 122.0665 is hereby amended to read as follows:

      122.0665  1.  If a minister or other person authorized to solemnize a marriage is no longer authorized to solemnize a marriage by the church or religious organization that authorized the minister or other person to solemnize marriages when he or she applied for a certificate of permission to perform marriages pursuant to NRS 122.064, the church or religious organization shall, within 5 days after the authorization is terminated, file an affidavit of [revocation] removal of authority to solemnize marriages with the county clerk of the county where the original affidavit of authority to solemnize marriages was filed.

      2.  The affidavit of [revocation] removal of authority to solemnize marriages must be in substantially the following form:

 

AFFIDAVIT OF [REVOCATION] REMOVAL OF AUTHORITY TO SOLEMNIZE MARRIAGES

 

State of Nevada              }

                                           }ss.

County of ....................... }

 

       The........................................ (name of church or religious organization) is organized and carries on its work in the State of Nevada. Its active meetings are located at........................................ (street address, city or town). The........................................ (name of church or religious organization) hereby [revokes] removes the authority of........................................ (name of minister or other person authorized to solemnize marriages), filed in the County of........................................, on the.......... day of the month of...................., of the year.........., to solemnize marriages.

       I am duly authorized by........................................ (name of church or religious organization) to complete and submit this affidavit.

 

                                                  

Signature of Official

 

                                                  

Name of Official

(type or print name)

 

                                                  

Title of Official

 

                                                  

Address

 

                                                  

City, State and Zip Code

 

                                                  

Telephone Number

 


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      Signed and sworn to (or affirmed) before me this.......... day of the month of.................... of the year...........

 

Notary Public for

.............................. County, Nevada.

 

My appointment expires................................................

      Sec. 5. NRS 122.068 is hereby amended to read as follows:

      122.068  1.  Any county clerk who has issued a certificate of permission to perform marriages to a minister or other person authorized to solemnize a marriage pursuant to NRS 122.062 to 122.073, inclusive, may revoke the certificate for good cause shown after a hearing.

      2.  If the certificate of permission to perform marriages of any minister or other person authorized to solemnize a marriage is revoked [,] or if the county clerk has received an affidavit of removal of authority to solemnize marriages pursuant to NRS 122.0665, the county clerk shall inform the Secretary of State of that fact, and the Secretary of State shall immediately remove the name of the minister or other person authorized to solemnize a marriage from the official list contained in the database of ministers or other persons authorized to solemnize a marriage and shall notify each county clerk and county recorder in the State of the revocation [.] or removal of authority.

      Sec. 5.5. NRS 122.130 is hereby amended to read as follows:

      122.130  1.  Each person who solemnizes a marriage shall make a record of it and, within 10 days after the marriage, shall deliver to:

      (a) If the board of county commissioners has adopted an ordinance pursuant to NRS 246.100, the county clerk of the county where the license was issued [a copy of] the original certificate of marriage required by NRS 122.120.

      (b) If the board of county commissioners has not adopted an ordinance pursuant to NRS 246.100, the county recorder of the county where the license was issued [a copy of] the original certificate of marriage required by NRS 122.120.

      2.  If the [copy of the] original certificate of marriage that is held by the person who solemnizes the marriage is lost or destroyed before it is delivered pursuant to subsection 1, the county clerk may charge and collect from the person who solemnizes the marriage a fee of not more than $15 for the preparation of an affidavit of loss or destruction and the issuance of a replacement certificate. All fees collected by the county clerk pursuant to this subsection must be deposited in the county general fund.

      3.  All [copies of] original certificates must be recorded by the county recorder or filed by the county clerk in a book to be kept by him or her for that purpose. For recording or filing the [copies,] original certificates, the county recorder or county clerk is entitled to the fees designated in subsection 2 of NRS 122.060 and subsection 3 of NRS 122.135. All such fees must be deposited in the county general fund.

      Sec. 6. NRS 122.185 is hereby amended to read as follows:

      122.185  The office of the commissioner of civil marriages and each room therein shall prominently display on the wall, or other appropriate place, a sign informing all people who avail themselves of the services of the commissioner of civil marriages of the following facts:

 


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      1.  That the solemnization of the marriage by the commissioner of civil marriages is not necessary for a valid marriage and that the parties wishing to be married may have a justice of the peace within a township where such justice of the peace is permitted to perform marriages, or any minister or other person authorized to solemnize a marriage of their choice who holds a valid certificate of permission to perform marriages within the State, perform the ceremony;

      2.  The amount of the fee to be charged for solemnization of a marriage [, including any extra charge to be made for solemnizing a marriage after regular working hours] in the office of the commissioner of civil marriages;

      3.  That all fees charged are paid into the county general fund of the particular county involved;

      4.  That other than the statutory fee, the commissioner of civil marriages and the deputy commissioners of civil marriages are precluded by law from receiving any gratuity fee or remuneration whatsoever for solemnizing a marriage; and

      5.  That if the commissioner of civil marriages, any deputy commissioner of civil marriages, or any other employee in the office of the commissioner or in the office of the county clerk solicits such an extra gratuity fee or other remuneration, the matter should be reported to the district attorney for such county.

      Sec. 7. NRS 122.215 is hereby amended to read as follows:

      122.215  It is unlawful for any county employee, commercial wedding chapel employee or other person to solicit or otherwise influence, while on county [courthouse] property [,] where marriage licenses are issued, any person to be married by a marriage commissioner or justice of the peace or at a commercial wedding chapel.

      Sec. 8. NRS 122.230 is hereby amended to read as follows:

      122.230  Every person solemnizing a marriage who fails or neglects to make and deliver an originally signed [copy of the] certificate thereof, within the time specified in NRS 122.130, to:

      1.  If the board of county commissioners has adopted an ordinance pursuant to NRS 246.100, the county clerk; or

      2.  If the board of county commissioners has not adopted an ordinance pursuant to NRS 246.100, the county recorder,

Κ is guilty of a misdemeanor.

      Sec. 9. NRS 122.240 is hereby amended to read as follows:

      122.240  Every county recorder or county clerk who fails or neglects to record or file a [copy of a] certificate of marriage as required by this chapter is guilty of a misdemeanor.

      Sec. 10. NRS 247.305 is hereby amended to read as follows:

      247.305  1.  If another statute specifies the fee to be charged for a service, county recorders shall charge and collect only the fee specified. Otherwise, unless prohibited by NRS 375.060, county recorders shall charge and collect the following fees:

      (a) For recording any document, for the first page, $10.

      (b) For each additional page, $1.

      (c) For recording each portion of a document which must be separately indexed, after the first indexing, $3.

      (d) For copying any record, for each page, $1.

      (e) For certifying, including certificate and seal, $4.

      (f) For a certified copy of a certificate of marriage, $10.

 


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      (g) For a certified abstract of a certificate of marriage, $10.

      (h) For a certified copy of a certificate of marriage or for a certified abstract of a certificate of marriage, the additional sum of $5 for the Account for Aid for Victims of Domestic Violence in the State General Fund. The fees collected for this purpose must be paid over to the county treasurer by the county recorder on or before the fifth day of each month for the preceding calendar month, and must be credited to that Account. The county treasurer shall, on or before the 15th day of each month, remit those fees deposited by the recorder to the State Controller for credit to that Account.

      2.  Except as otherwise provided in this subsection and NRS 375.060, a county recorder may charge and collect, in addition to any fee that a county recorder is otherwise authorized to charge and collect, an additional fee not to exceed $3 for recording a document, instrument, paper, notice, deed, conveyance, map, chart, survey or any other writing. A county recorder may not charge the additional fee authorized in this subsection for recording [the] an originally signed [copy of a] certificate of marriage described in NRS 122.120. On or before the fifth day of each month, the county recorder shall pay the amount of fees collected by him or her pursuant to this subsection to the county treasurer for credit to the account established pursuant to NRS 247.306.

      3.  Except as otherwise provided in this subsection and NRS 375.060, a county recorder shall charge and collect, in addition to any fee that a county recorder is otherwise authorized to charge and collect, an additional fee of $1 for recording a document, instrument, paper, notice, deed, conveyance, map, chart, survey or any other writing. A county recorder shall not charge the additional fee authorized in this subsection for recording [the] an originally signed [copy of a] certificate of marriage described in NRS 122.120. On or before the fifth day of each month, the county recorder shall pay the amount of fees collected by him or her pursuant to this subsection to the county treasurer. On or before the 15th day of each month, the county treasurer shall remit the money received by him or her pursuant to this subsection to the State Treasurer for credit to the Account to Assist Persons Formerly in Foster Care established pursuant to NRS 432.017.

      4.  Except as otherwise provided in this subsection and NRS 375.060, a board of county commissioners may, in addition to any fee that a county recorder is otherwise authorized to charge and collect, impose by ordinance a fee of not more than $3 for recording a document, instrument, paper, notice, deed, conveyance, map, chart, survey or any other writing. A county recorder shall not charge the additional fee authorized by this subsection for recording [the] an originally signed [copy of a] certificate of marriage described in NRS 122.120. On or before the fifth day of each month, the county recorder shall pay the amount of fees collected by him or her pursuant to this subsection to the county treasurer. On or before the 15th day of each month, the county treasurer shall remit the money received by him or her pursuant to this subsection to the organization operating the program for legal services for the indigent that receives the fees charged pursuant to NRS 19.031 to be used to provide legal services for abused and neglected children.

      5.  Except as otherwise provided in this subsection or subsection 6 or by specific statute, a county recorder may charge and collect, in addition to any fee that a county recorder is otherwise authorized to charge and collect, an additional fee not to exceed $25 for recording any document that does not meet the standards set forth in subsection 3 of NRS 247.110. A county recorder shall not charge the additional fee authorized by this subsection for recording a document that is exempt from the provisions of subsection 3 of NRS 247.110.

 


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recorder shall not charge the additional fee authorized by this subsection for recording a document that is exempt from the provisions of subsection 3 of NRS 247.110.

      6.  Except as otherwise provided in subsection 7, a county recorder shall not charge or collect any fees for any of the services specified in this section when rendered by the county recorder to:

      (a) The county in which the county recorder’s office is located.

      (b) The State of Nevada or any city or town within the county in which the county recorder’s office is located, if the document being recorded:

             (1) Conveys to the State, or to that city or town, an interest in land;

             (2) Is a mortgage or deed of trust upon lands within the county which names the State or that city or town as beneficiary;

             (3) Imposes a lien in favor of the State or that city or town; or

             (4) Is a notice of the pendency of an action by the State or that city or town.

      7.  A county recorder shall charge and collect the fees specified in this section for copying any document at the request of the State of Nevada, and any city or town within the county. For copying, and for his or her certificate and seal upon the copy, the county recorder shall charge the regular fee.

      8.  If the amount of money collected by a county recorder for a fee pursuant to this section:

      (a) Exceeds by $5 or less the amount required by law to be paid, the county recorder shall deposit the excess payment with the county treasurer for credit to the county general fund.

      (b) Exceeds by more than $5 the amount required by law to be paid, the county recorder shall refund the entire amount of the excess payment.

      9.  Except as otherwise provided in subsection 2, 3, 4 or 8 or by an ordinance adopted pursuant to the provisions of NRS 244.207, county recorders shall, on or before the fifth working day of each month, account for and pay to the county treasurer all such fees collected during the preceding month.

      10.  For the purposes of this section, “State of Nevada,” “county,” “city” and “town” include any department or agency thereof and any officer thereof in his or her official capacity.

      Sec. 11.  This act becomes effective on July 1, 2013.

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CHAPTER 543, AB 463

Assembly Bill No. 463–Committee on Ways and Means

 

CHAPTER 543

 

[Approved: June 12, 2013]

 

AN ACT relating to state financial administration; revising provisions relating to the payment of stale claims; authorizing a person designated by the Clerk of the State Board of Examiners to carry out certain duties of the Clerk; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law provides that certain stale claims which are presented by a state agency to the State Board of Examiners after the date on which it is provided by law that money appropriated to the state agency for the previous fiscal year reverts to the fund from which it was appropriated must be paid from the Stale Claims Account in the State General Fund. A state agency is authorized to pay certain other claims incurred in the previous fiscal year from the appropriate budget account in a current fiscal year. (NRS 353.097) Section 1 of this bill clarifies the definition of “stale claim” to specifically refer to money authorized for expenditure, in addition to appropriated money, and makes similar conforming changes. Section 1 also provides that a state agency may pay a stale claim for payroll expenses from the appropriate budget account in the current fiscal year.

      Sections 1 and 2 of this bill authorize a person designated by the Clerk of the State Board of Examiners to perform the duties of the Clerk, which have been delegated to the Clerk by the Board of Examiners, to approve stale claims and claims from the Reserve for Statutory Contingency Account on behalf of the Board.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 353.097 is hereby amended to read as follows:

      353.097  1.  As used in this section, “stale claim” means any claim [other than a claim for medical expenses submitted by a third-party administrator or a claim which is $100 or more, and] which is presented by a state agency to the State Board of Examiners :

      (a) If the claim was eligible to be paid from money that was appropriated, after the date on which it is provided by law that money appropriated to that state agency for the previous fiscal year reverts to the fund from which appropriated [.] ; or

      (b) If the claim was eligible to be paid from money that was authorized, after the last day of the fiscal year in which that state agency was authorized to expend the money.

      2.  There is hereby created a Stale Claims Account in the State General Fund. Money for the Account must be provided by direct legislative appropriation.

      3.  Upon the approval of a stale claim [as provided in this section,] pursuant to subsection 4, the claim must be paid from the Stale Claims Account. Payments of such stale claims for a state agency must not exceed [the] :

 


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      (a) If the claim was eligible to be paid from money that was appropriated, the amount of money reverted to the fund from which appropriated by the state agency for the fiscal year in which the obligations represented by the stale claims were incurred [.] ; or

      (b) If the claim was eligible to be paid from money that was authorized, the balance on the last day of the fiscal year of money that the state agency was authorized to expend during the fiscal year.

      4.  [A] Except as otherwise provided in this section, a stale claim must be approved for payment from the Stale Claims Account by the State Board of Examiners . [, except that the] The State Board of Examiners may authorize its Clerk [,] or a person designated by the Clerk, under such circumstances as it deems appropriate, to approve stale claims on behalf of the Board. A state agency that is aggrieved by a determination of the Clerk or the person designated by the Clerk to deny all or any part of a stale claim may appeal that determination to the State Board of Examiners.

      5.  A stale claim may be approved and paid at any time, despite the age of the claim, if payable from available federal grants or from a permanent fund in the State Treasury other than the State General Fund.

      6.  A state agency may pay from the appropriate budget account in the current fiscal year [an obligation] a stale claim of the state agency which [:

      (a) Is:

             (1)] is:

      (a) Less than $100; [or

             (2)](b) For medical expenses pursuant to a claim from a third-party administrator; [and

      (b) Was incurred in the previous fiscal year but was not submitted for payment until after the date on which it is provided by law that money appropriated to that state agency for the previous fiscal year reverts to the fund from which appropriated.] or

      (c) For payroll expenses.

      Sec. 2. NRS 353.264 is hereby amended to read as follows:

      353.264  1.  The Reserve for Statutory Contingency Account is hereby created in the State General Fund.

      2.  The State Board of Examiners shall administer the Reserve for Statutory Contingency Account. The money in the Account must be expended only for:

      (a) The payment of claims which are obligations of the State pursuant to NRS 41.03435, 41.0347, 62I.025, 176.485, 179.310, 212.040, 212.050, 212.070, 281.174, 282.290, 282.315, 288.203, 293.253, 293.405, 353.120, 353.262, 412.154 and 475.235;

      (b) The payment of claims which are obligations of the State pursuant to:

             (1) Chapter 472 of NRS arising from operations of the Division of Forestry of the State Department of Conservation and Natural Resources directly involving the protection of life and property; and

             (2) NRS 7.155, 34.750, 176A.640, 179.225 and 213.153,

Κ except that claims may be approved for the respective purposes listed in this paragraph only when the money otherwise appropriated for those purposes has been exhausted;

      (c) The payment of claims which are obligations of the State pursuant to NRS 41.0349 and 41.037, but only to the extent that the money in the Fund for Insurance Premiums is insufficient to pay the claims; and

 


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κ2013 Statutes of Nevada, Page 3677 (CHAPTER 543, AB 463)κ

 

      (d) The payment of claims which are obligations of the State pursuant to NRS 535.030 arising from remedial actions taken by the State Engineer when the condition of a dam becomes dangerous to the safety of life or property.

      3.  The State Board of Examiners may authorize its Clerk [,] or a person designated by the Clerk, under such circumstances as it deems appropriate, to approve, on behalf of the Board, the payment of claims from the Reserve for Statutory Contingency Account. For the purpose of exercising any authority granted to the Clerk of the State Board of Examiners or to the person designated by the Clerk pursuant to this subsection, any statutory reference to the State Board of Examiners relating to such a claim shall be deemed to refer to the Clerk of the Board [.] or the person designated by the Clerk.

      Sec. 3.  This act becomes effective upon passage and approval.

________

CHAPTER 544, AB 466

Assembly Bill No. 466–Committee on Taxation

 

CHAPTER 544

 

[Approved: June 12, 2013]

 

AN ACT relating to governmental financial administration; requiring the Executive Director of the Department of Taxation to prepare and send a report of tax expenditures to the Governor and the Legislature; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      This bill requires the Executive Director of the Department of Taxation to prepare and send a report of tax expenditures to the Governor and the Legislature in November of each even-numbered year. A “tax expenditure” is defined as any law of this State that exempts, in whole or in part, certain persons, income, goods, services or property from the impact of established taxes. The report must include certain information regarding each such tax expenditure, including a description of the tax expenditure, the year the tax expenditure was enacted, the purpose of the tax expenditure, any subsequent amendments to the tax expenditure and, to the extent that pertinent information is available, estimates of: (1) the fiscal impact of the tax expenditure on both the State and local governments; (2) the number of taxpayers benefiting from the tax expenditure; and (3) the revenue that would result from repeal of the tax expenditure.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 360 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  On or before November 10 of each even-numbered year, the Executive Director shall submit a tax expenditure report to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the Legislature and the appropriate interim committee or committees of the Legislature.

 


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      2.  The report required by subsection 1 must provide, for each tax expenditure:

      (a) A description of the tax expenditure;

      (b) The year in which the tax expenditure was enacted;

      (c) The purpose for which the tax expenditure was enacted;

      (d) A summary of any amendments to the tax expenditure since it was enacted;

      (e) To the extent that pertinent information is available, estimates of:

             (1) The fiscal impact to this State and local governments of the tax expenditure during each fiscal year of the biennium in which the report is prepared;

             (2) The number of taxpayers receiving benefit from the tax expenditure; and

             (3) The revenue that would result from repeal of the tax expenditure; and

      (f) A statement of:

             (1) Any pertinent information which is not available to prepare the estimates required by paragraph (e); and

             (2) The reasons for the unavailability of that information.

      3.  Each agency, bureau, board, commission, department, division, office and other governmental entity of the State of Nevada, each county treasurer and county assessor and each entity receiving the benefit of a tax expenditure, shall respond fully and appropriately to any request for information made by the Executive Director for use in the report required by this section not later than 30 days after such a request is made, to the extent that the requested information is not confidential, privileged or otherwise protected from disclosure by any provision of state or federal law.

      4.  As used in this section, “tax expenditure” means any law of this State that exempts, in whole or in part, certain persons, income, goods, services or property from the impact of established taxes, including, without limitation, tax abatements, tax credits, tax deductions, tax deferrals, tax exemptions, tax exclusions, tax subtractions and preferential tax rates.

      Sec. 2.  The Executive Director of the Department of Taxation shall submit the initial report required by section 1 of this act on or before November 10, 2014.

      Sec. 3.  This act becomes effective upon passage and approval.

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κ2013 Statutes of Nevada, Page 3679κ

 

CHAPTER 545, AB 512

Assembly Bill No. 512–Committee on Judiciary

 

CHAPTER 545

 

[Approved: June 12, 2013]

 

AN ACT relating to statutes; making technical corrections to certain measures passed by the 77th Legislative Session; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      This bill makes technical corrections to certain legislative measures which were previously passed this session. Senate Bill No. 134 of this session authorizes a person to apply to the State Engineer for a temporary permit to appropriate groundwater to water livestock if the point of diversion is within a county under a declaration of drought, or within a county contiguous to a county under such a declaration. Senate Bill No. 134 further exempts an application for such a permit from certain requirements in existing law that generally govern applications for permits concerning water rights. All of those provisions are presently scheduled to become effective on October 1, 2013. Section 1 of this bill amends Senate Bill No. 134 to make those provisions effective upon the passage and approval of that bill. The new language added to the bill is identified with blue underlining.

      The remaining provisions of this bill resolve conflicts between certain other measures which were passed this session. Senate Bill No. 199 and Senate Bill No. 220 prohibit persons from practicing certain health care professions without a license. Section 2 of this bill amends Senate Bill No. 220 to resolve a potential conflict between the penalty provisions of that bill and Senate Bill No. 199 by adding an exception in the penalty provisions of Senate Bill No. 220 for any greater penalty that may be imposed for the same offense pursuant to the penalty provisions of Senate Bill No. 199. The new language added to the bill is identified with blue underlining.

      Senate Bill No. 224 and Senate Bill No. 243 of this session: (1) provide, respectively, for the collection from persons convicted of certain criminal offenses of a fee for specialty courts and an additional administrative assessment for obtaining a biological specimen and conducting a genetic marker analysis; and (2) specify the manner in which any payment made by a defendant in such a case is to be apportioned. Sections 3-5 of this bill amend Senate Bill No. 224 to resolve a conflict between the provisions of that bill and those of Senate Bill No. 243 by conforming the provisions governing the apportionment of such a payment. The new language added to the bill is identified with blue underlining.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Senate Bill No. 134 of this session is hereby amended by adding thereto a new section, to be designated as section 10, immediately following section 9, to read as follows:

       Sec. 10. 1.  This section and sections 1 to 5.5, inclusive, of this act become effective upon passage and approval.

       2.  Sections 6 to 9, inclusive, of this act become effective on October 1, 2013.

 


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κ2013 Statutes of Nevada, Page 3680 (CHAPTER 545, AB 512)κ

 

      Sec. 2. Section 6 of Senate Bill No. 220 of this session is hereby amended to read as follows:

       Sec. 6. NRS 630.400 is hereby amended to read as follows:

       630.400  [A]

       1.  It is unlawful for any person [who:] to:

       [1.  Presents]

       (a) Present to the Board as his or her own the diploma, license or credentials of another;

       [2.  Gives]

       (b) Give either false or forged evidence of any kind to the Board;

       [3.  Practices]

       (c) Practice medicine, perfusion or respiratory care under a false or assumed name or falsely [personates] personate another licensee;

       [4.](d) Except as otherwise provided by a specific statute, [practices] practice medicine, perfusion or respiratory care without being licensed under this chapter;

       [5.  Holds]

       (e) Hold himself or herself out as a perfusionist or [uses] use any other term indicating or implying that he or she is a perfusionist without being licensed by the Board;

       [6.  Holds]

       (f) Hold himself or herself out as a physician assistant or [uses] use any other term indicating or implying that he or she is a physician assistant without being licensed by the Board; or

       [7.  Holds]

       (g) Hold himself or herself out as a practitioner of respiratory care or [uses] use any other term indicating or implying that he or she is a practitioner of respiratory care without being licensed by the Board . [,

Κ]

       2.  Unless a greater penalty is provided pursuant to section 5 or 6 of Senate Bill No. 199 of this session, a person who violates any provision of subsection 1:

       (a) If no substantial bodily harm results, is guilty of a category D felony ; or

       (b) If substantial bodily harm results, is guilty of a category C felony,

Κ and shall be punished as provided in NRS 193.130.

       3.  In addition to any other penalty prescribed by law, if the Board determines that a person has committed any act described in subsection 1, the Board may:

       (a) Issue and serve on the person an order to cease and desist until the person obtains from the Board the proper license or otherwise demonstrates that he or she is no longer in violation of subsection 1. An order to cease and desist must include a telephone number with which the person may contact the Board.

       (b) Issue a citation to the person. A citation issued pursuant to this paragraph must be in writing, describe with particularity the nature of the violation and inform the person of the provisions of this paragraph. Each activity in which the person is engaged constitutes a separate offense for which a separate citation may be issued.

 


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κ2013 Statutes of Nevada, Page 3681 (CHAPTER 545, AB 512)κ

 

issued. To appeal a citation, the person must submit a written request for a hearing to the Board not later than 30 days after the date of issuance of the citation.

       (c) Assess against the person an administrative fine of not more than $5,000.

       (d) Impose any combination of the penalties set forth in paragraphs (a), (b) and (c).

      Sec. 3. Section 1 of Senate Bill No. 224 of this session is hereby amended to read as follows:

       Section 1. Chapter 484C of NRS is hereby amended by adding thereto a new section to read as follows:

       1.  Except as otherwise provided in this section, if a defendant who is charged with a violation of NRS 484C.110 or 484C.120 that is punishable as a misdemeanor pursuant to paragraph (a) or (b) of subsection 1 of NRS 484C.400 pleads guilty, guilty but mentally ill or nolo contendere to, or is found guilty or guilty but mentally ill of, that charge, the justice or judge shall include in the sentence, in addition to any other penalty or administrative assessment provided by law, a fee of $100 for the provision of specialty court programs and render a judgment against the defendant for the fee. If a defendant is sentenced to perform community service in lieu of a fine, the sentence must include the fee required pursuant to this subsection.

       2.  If the fee pursuant to subsection 1:

       (a) Is not within the defendant’s present ability to pay, the justice or judge may include in the sentence, in addition to any other penalty or administrative assessment provided by law, community service for a reasonable number of hours, the value of which would be commensurate with the fee.

       (b) Is not entirely within the defendant’s present ability to pay, the justice or judge may include in the sentence, in addition to any other penalty or administrative assessment provided by law, a reduced fee and community service for a reasonable number of hours, the value of which would be commensurate with the amount of the reduction of the fee.

       3.  The money collected for the specialty courts fee must not be deducted from any fine imposed by the justice or judge but must be collected from the defendant in addition to the fine. The money collected for such a fee must be stated separately on the court’s docket. If the justice or judge cancels a fine because the fine has been determined to be uncollectible, any balance of the fine and the specialty courts fee remaining unpaid shall be deemed to be uncollectible and the defendant is not required to pay them. If a fine is determined to be uncollectible, the defendant is not entitled to a refund of any amount of the fine or fee that the defendant has paid.

       4.  A justice or judge shall, if requested by a defendant, allow a specialty courts fee to be paid in installments under terms established by the justice or judge.

       5.  Any payments made by a defendant must be applied in the following order:

       (a) To pay the unpaid balance of an administrative assessment imposed pursuant to NRS 176.059;

 


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       (b) To pay the unpaid balance of an administrative assessment for the provision of court facilities pursuant to NRS 176.0611;

       (c) To pay the unpaid balance of an administrative assessment for the provision of specialty court programs pursuant to NRS 176.0613;

       (d) To pay the unpaid balance of an administrative assessment for obtaining a biological specimen and conducting a genetic marker analysis pursuant to section 15 of Senate Bill No. 243 of this session;

       (e) To pay the unpaid balance of the specialty courts fee pursuant to this section; and

       (f) To pay the fine.

       6.  The money collected for a specialty courts fee pursuant to this section in municipal court must be paid by the clerk of the court to the city treasurer on or before the fifth day of each month for the preceding month. On or before the 15th day of that month, the city treasurer shall deposit the money received for each specialty courts fee with the State Controller for credit to a special account in the State General Fund administered by the Office of Court Administrator.

       7.  The money collected for a specialty courts fee pursuant to this section in justice courts must be paid by the clerk of the court to the county treasurer on or before the fifth day of each month for the preceding month. On or before the 15th day of that month, the county treasurer shall deposit the money received for each specialty courts fee with the State Controller for credit to a special account in the State General Fund administered by the Office of Court Administrator.

       8.  Money that is apportioned to a court from specialty courts fees pursuant to this section must be used by the court to:

       (a) Pay for any level of treatment, including, without limitation, psychiatric care, required for successful completion and testing of persons who participate in the program; and

       (b) Improve the operations of the specialty court program by any combination of:

             (1) Acquiring necessary capital goods;

             (2) Providing for personnel to staff and oversee the specialty court program;

             (3) Providing training and education to personnel;

             (4) Studying the management and operation of the program;

             (5) Conducting audits of the program;

             (6) Providing for district attorney and public defender representation;

             (7) Acquiring or using appropriate technology;

             (8) Providing capital for building facilities necessary to house persons who participate in the program;

             (9) Providing funding for employment programs for persons who participate in the program; and

             (10) Providing funding for statewide public information campaigns necessary to deter driving under the influence of intoxicating liquor or a controlled substance.

 


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       9.  The Office of Court Administrator may apply for and accept any available grants and may accept any bequests, devises, donations or gifts from any public or private source for the provision of specialty court programs pursuant to this section.

       10.  A court that provides a specialty court program shall, as required by the Office of Court Administrator, submit a report to the Office of Court Administrator concerning the program. The report must include:

       (a) Demographic and statistical information concerning the participants in the program, including, without limitation, the age, gender, race and ethnicity of the participants;

       (b) Statistical information concerning the operation of the program, including, without limitation, the number of participants in the program, the nature of the criminal charges that were filed against participants, the number of participants who have completed the program and the rate of recidivism among participants; and

       (c) Any other information required by the Office of Court Administrator.

Κ On or before January 1 of each odd-numbered year, the Office of Court Administrator shall submit a copy of the report to the Director of the Legislative Counsel Bureau.

       11.  As used in this section:

       (a) “Office of Court Administrator” means the Office of Court Administrator created pursuant to NRS 1.320; and

       (b) “Specialty court program” means a program established by a court to facilitate testing, treatment and oversight of certain persons over whom the court has jurisdiction and who the court has determined suffer from a mental illness or who abuse alcohol or drugs. Such a program includes, without limitation, a program established pursuant to NRS 176A.250 or 453.580.

      Sec. 4. Section 2 of Senate Bill No. 224 of this session is hereby amended to read as follows:

       Sec. 2. NRS 176.0611 is hereby amended to read as follows:

       176.0611  1.  A county or a city, upon recommendation of the appropriate court, may, by ordinance, authorize the justices or judges of the justice or municipal courts within its jurisdiction to impose for not longer than 50 years, in addition to the administrative assessments imposed pursuant to NRS 176.059 and 176.0613, an administrative assessment for the provision of court facilities.

       2.  Except as otherwise provided in subsection 3, in any jurisdiction in which an administrative assessment for the provision of court facilities has been authorized, when a defendant pleads guilty or guilty but mentally ill or is found guilty or guilty but mentally ill of a misdemeanor, including the violation of any municipal ordinance, the justice or judge shall include in the sentence the sum of $10 as an administrative assessment for the provision of court facilities and render a judgment against the defendant for the assessment. If the justice or judge sentences the defendant to perform community service in lieu of a fine, the justice or judge shall include in the sentence the administrative assessment required pursuant to this subsection.

 


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       3.  The provisions of subsection 2 do not apply to:

       (a) An ordinance regulating metered parking; or

       (b) An ordinance that is specifically designated as imposing a civil penalty or liability pursuant to NRS 244.3575 or 268.019.

       4.  The money collected for an administrative assessment for the provision of court facilities must not be deducted from the fine imposed by the justice or judge but must be taxed against the defendant in addition to the fine. The money collected for such an administrative assessment must be stated separately on the court’s docket and must be included in the amount posted for bail. If bail is forfeited, the administrative assessment included in the amount posted for bail pursuant to this subsection must be disbursed in the manner set forth in subsection 6 or 7. If the defendant is found not guilty or the charges are dismissed, the money deposited with the court must be returned to the defendant. If the justice or judge cancels a fine because the fine has been determined to be uncollectible, any balance of the fine and the administrative assessment remaining unpaid shall be deemed to be uncollectible and the defendant is not required to pay it. If a fine is determined to be uncollectible, the defendant is not entitled to a refund of the fine or administrative assessment the defendant has paid and the justice or judge shall not recalculate the administrative assessment.

       5.  If the justice or judge permits the fine and administrative assessment for the provision of court facilities to be paid in installments, the payments must be applied in the following order:

       (a) To pay the unpaid balance of an administrative assessment imposed pursuant to NRS 176.059;

       (b) To pay the unpaid balance of an administrative assessment for the provision of court facilities pursuant to this section;

       (c) To pay the unpaid balance of an administrative assessment for the provision of specialty court programs pursuant to NRS 176.0613;

       (d) To pay the unpaid balance of an administrative assessment for obtaining a biological specimen and conducting a genetic marker analysis pursuant to section 15 of Senate Bill No. 243 of this session; [and]

       (e) To pay the unpaid balance of the specialty courts fee pursuant to section 1 of this act; and

       (f) To pay the fine.

       6.  The money collected for administrative assessments for the provision of court facilities in municipal courts must be paid by the clerk of the court to the city treasurer on or before the fifth day of each month for the preceding month. The city treasurer shall deposit the money received in a special revenue fund. The city may use the money in the special revenue fund only to:

       (a) Acquire land on which to construct additional facilities for the municipal courts or a regional justice center that includes the municipal courts.

       (b) Construct or acquire additional facilities for the municipal courts or a regional justice center that includes the municipal courts.

       (c) Renovate or remodel existing facilities for the municipal courts.

 


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       (d) Acquire furniture, fixtures and equipment necessitated by the construction or acquisition of additional facilities or the renovation of an existing facility for the municipal courts or a regional justice center that includes the municipal courts. This paragraph does not authorize the expenditure of money from the fund for furniture, fixtures or equipment for judicial chambers.

       (e) Acquire advanced technology for use in the additional or renovated facilities.

       (f) Pay debt service on any bonds issued pursuant to subsection 3 of NRS 350.020 for the acquisition of land or facilities or the construction or renovation of facilities for the municipal courts or a regional justice center that includes the municipal courts.

Κ Any money remaining in the special revenue fund after 5 fiscal years must be deposited in the municipal general fund for the continued maintenance of court facilities if it has not been committed for expenditure pursuant to a plan for the construction or acquisition of court facilities or improvements to court facilities. The city treasurer shall provide, upon request by a municipal court, monthly reports of the revenue credited to and expenditures made from the special revenue fund.

       7.  The money collected for administrative assessments for the provision of court facilities in justice courts must be paid by the clerk of the court to the county treasurer on or before the fifth day of each month for the preceding month. The county treasurer shall deposit the money received to a special revenue fund. The county may use the money in the special revenue fund only to:

       (a) Acquire land on which to construct additional facilities for the justice courts or a regional justice center that includes the justice courts.

       (b) Construct or acquire additional facilities for the justice courts or a regional justice center that includes the justice courts.

       (c) Renovate or remodel existing facilities for the justice courts.

       (d) Acquire furniture, fixtures and equipment necessitated by the construction or acquisition of additional facilities or the renovation of an existing facility for the justice courts or a regional justice center that includes the justice courts. This paragraph does not authorize the expenditure of money from the fund for furniture, fixtures or equipment for judicial chambers.

       (e) Acquire advanced technology for use in the additional or renovated facilities.

       (f) Pay debt service on any bonds issued pursuant to subsection 3 of NRS 350.020 for the acquisition of land or facilities or the construction or renovation of facilities for the justice courts or a regional justice center that includes the justice courts.

Κ Any money remaining in the special revenue fund after 5 fiscal years must be deposited in the county general fund for the continued maintenance of court facilities if it has not been committed for expenditure pursuant to a plan for the construction or acquisition of court facilities or improvements to court facilities. The county treasurer shall provide, upon request by a justice court, monthly reports of the revenue credited to and expenditures made from the special revenue fund.

 


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       8.  If money collected pursuant to this section is to be used to acquire land on which to construct a regional justice center, to construct a regional justice center or to pay debt service on bonds issued for these purposes, the county and the participating cities shall, by interlocal agreement, determine such issues as the size of the regional justice center, the manner in which the center will be used and the apportionment of fiscal responsibility for the center.

      Sec. 5. Section 3 of Senate Bill No. 224 of this session is hereby amended to read as follows:

       Sec. 3. NRS 176.0613 is hereby amended to read as follows:

       176.0613  1.  The justices or judges of the justice or municipal courts shall impose, in addition to an administrative assessment imposed pursuant to NRS 176.059 and 176.0611, an administrative assessment for the provision of specialty court programs.

       2.  Except as otherwise provided in subsection 3, when a defendant pleads guilty or guilty but mentally ill or is found guilty or guilty but mentally ill of a misdemeanor, including the violation of any municipal ordinance, the justice or judge shall include in the sentence the sum of $7 as an administrative assessment for the provision of specialty court programs and render a judgment against the defendant for the assessment. If a defendant is sentenced to perform community service in lieu of a fine, the sentence must include the administrative assessment required pursuant to this subsection.

       3.  The provisions of subsection 2 do not apply to:

       (a) An ordinance regulating metered parking; or

       (b) An ordinance which is specifically designated as imposing a civil penalty or liability pursuant to NRS 244.3575 or 268.019.

       4.  The money collected for an administrative assessment for the provision of specialty court programs must not be deducted from the fine imposed by the justice or judge but must be taxed against the defendant in addition to the fine. The money collected for such an administrative assessment must be stated separately on the court’s docket and must be included in the amount posted for bail. If bail is forfeited, the administrative assessment included in the bail pursuant to this subsection must be disbursed pursuant to subsection 6 or 7. If the defendant is found not guilty or the charges are dismissed, the money deposited with the court must be returned to the defendant. If the justice or judge cancels a fine because the fine has been determined to be uncollectible, any balance of the fine and the administrative assessment remaining unpaid shall be deemed to be uncollectible and the defendant is not required to pay it. If a fine is determined to be uncollectible, the defendant is not entitled to a refund of the fine or administrative assessment the defendant has paid and the justice or judge shall not recalculate the administrative assessment.

       5.  If the justice or judge permits the fine and administrative assessment for the provision of specialty court programs to be paid in installments, the payments must be applied in the following order:

       (a) To pay the unpaid balance of an administrative assessment imposed pursuant to NRS 176.059;

 


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       (b) To pay the unpaid balance of an administrative assessment for the provision of court facilities pursuant to NRS 176.0611;

       (c) To pay the unpaid balance of an administrative assessment for the provision of specialty court programs;

       (d) To pay the unpaid balance of an administrative assessment for obtaining a biological specimen and conducting a genetic marker analysis pursuant to section 15 of Senate Bill No. 243 of this session; [and]

       (e) To pay the unpaid balance of the specialty courts fee pursuant to section 1 of this act; and

       (f) To pay the fine.

       6.  The money collected for an administrative assessment for the provision of specialty court programs in municipal court must be paid by the clerk of the court to the city treasurer on or before the fifth day of each month for the preceding month. On or before the 15th day of that month, the city treasurer shall deposit the money received for each administrative assessment with the State Controller for credit to a special account in the State General Fund administered by the Office of Court Administrator.

       7.  The money collected for an administrative assessment for the provision of specialty court programs in justice courts must be paid by the clerk of the court to the county treasurer on or before the fifth day of each month for the preceding month. On or before the 15th day of that month, the county treasurer shall deposit the money received for each administrative assessment with the State Controller for credit to a special account in the State General Fund administered by the Office of Court Administrator.

       8.  The Office of Court Administrator shall allocate the money credited to the State General Fund pursuant to subsections 6 and 7 to courts to assist with the funding or establishment of specialty court programs.

       9.  Money that is apportioned to a court from administrative assessments for the provision of specialty court programs must be used by the court to:

       (a) Pay for the treatment and testing of persons who participate in the program; and

       (b) Improve the operations of the specialty court program by any combination of:

             (1) Acquiring necessary capital goods;

             (2) Providing for personnel to staff and oversee the specialty court program;

             (3) Providing training and education to personnel;

             (4) Studying the management and operation of the program;

             (5) Conducting audits of the program;

             (6) Supplementing the funds used to pay for judges to oversee a specialty court program; or

             (7) Acquiring or using appropriate technology.

       10.  As used in this section:

       (a) “Office of Court Administrator” means the Office of Court Administrator created pursuant to NRS 1.320; and

       (b) “Specialty court program” means a program established by a court to facilitate testing, treatment and oversight of certain persons over whom the court has jurisdiction and who the court has determined suffer from a mental illness or abuses alcohol or drugs.

 


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over whom the court has jurisdiction and who the court has determined suffer from a mental illness or abuses alcohol or drugs. Such a program includes, without limitation, a program established pursuant to NRS 176A.250, 176A.280 or 453.580.

      Sec. 6.  This act becomes effective upon passage and approval.

________

CHAPTER 546, AB 294

Assembly Bill No. 294–Assemblywoman Bustamante Adams

 

CHAPTER 546

 

[Approved: June 12, 2013]

 

AN ACT relating to economic development; requiring the submission of certain reports concerning local emerging small businesses to the Office of Economic Development; increasing the threshold for requiring formal contracts for certain purchases by the State; providing for the certification of local emerging small businesses by the Office; requiring the Office to establish goals for the participation of local emerging small businesses in certain contracts relating to purchasing and public works projects; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law creates the Office of Economic Development within the Office of the Governor to coordinate and oversee economic development programs in this State. (NRS 231.043, 231.055) Sections 11-14 of this bill: (1) provide for the certification of eligible local emerging small businesses by the Office; (2) require the Office to post a list of the certified local emerging small businesses on its Internet website; and (3) require the Office to adopt regulations, including regulations relating to the application form and procedure for that certification. Further, sections 15 and 16 of this bill require the Office to establish: (1) an outreach program for local emerging small businesses to connect those businesses with state agencies seeking state purchasing contracts and contracts for public works of this State; and (2) goals concerning the participation of local emerging small businesses in those contracts.

      Sections 1, 2 and 5 of this bill require local governments in counties whose population is 100,000 or more (currently Clark and Washoe Counties), the Purchasing Division and the State Public Works Division, both of the Department of Administration, to submit reports twice each year to the Office concerning the participation of local emerging small businesses in certain contracts. Section 17 of this bill requires the Office to submit a report once each year to the Governor and the Legislature or the Interim Finance Committee concerning: (1) whether the goals for participation of the local emerging small businesses in certain contracts are being met and, if not, what efforts the Purchasing Division and State Public Works Division are undertaking to meet the goals; and (2) certain other information relating to the local emerging small businesses that have been certified by the Office.

      Finally, section 4 of this bill raises the threshold for requiring formal contracts for certain purchases by the State from $25,000 to $50,000 and authorizes the Administrator of the Purchasing Division to solicit the purchase of materials, supplies and equipment having estimated costs of $50,000 or less under certain circumstances.

 


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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 332 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The governing body or its authorized representative in a county whose population is 100,000 or more shall submit a report every 6 months to the Office. The report must include, without limitation, for the period since the last report:

      (a) The number of local emerging small businesses that the governing body or its authorized representative solicited to submit a bid or proposal to the governing body or its authorized representative for a local purchasing contract;

      (b) The number of local emerging small businesses that submitted a bid or proposal to the governing body or its authorized representative for a local purchasing contract;

      (c) The number of local purchasing contracts that were awarded by the governing body or its authorized representative to local emerging small businesses;

      (d) The total number of dollars’ worth of local purchasing contracts that were awarded by the governing body or its authorized representative to local emerging small businesses; and

      (e) Any other information deemed relevant by the Office.

      2.  The report required pursuant to subsection 1 must be submitted within 90 days after:

      (a) The end of each fiscal year; and

      (b) The end of each calendar year.

      3.  As used in this section:

      (a) “Local emerging small business” has the meaning ascribed to it in section 8 of this act.

      (b) “Local purchasing contract” means a contract awarded pursuant to the provisions of this chapter for which the estimated cost is $50,000 or less. The term does not include a contract for which a procurement card is used.

      (c) “Office” means the Office of Economic Development.

      (d) “Procurement card” means a charge card issued to a governing body or its authorized representative for the purpose of purchasing goods and services pursuant to the provisions of this chapter.

      Sec. 2. Chapter 333 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Purchasing Division shall submit a report every 6 months to the Office. The report must include, without limitation, for the period since the last report:

      (a) The number of local emerging small businesses that the Purchasing Division solicited to submit a bid or proposal to the Purchasing Division on a state purchasing contract;

      (b) The number of local emerging small businesses that submitted a bid or proposal on a state purchasing contract;

      (c) The number of state purchasing contracts that were awarded by the Purchasing Division to local emerging small businesses;

 


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      (d) The total number of dollars’ worth of state purchasing contracts that were awarded by the Purchasing Division to local emerging small businesses;

      (e) Whether each goal established by the Office pursuant to section 16 of this act has been achieved;

      (f) For each goal established by the Office pursuant to section 16 of this act that has not been achieved, information on all efforts undertaken by the Purchasing Division to achieve the goals in the current fiscal year and a proposed plan for achieving the goals in the subsequent fiscal year; and

      (g) Any other information deemed relevant by the Office.

      2.  The report required pursuant to subsection 1 must be submitted within 30 days after:

      (a) The end of each fiscal year; and

      (b) The end of each calendar year.

      3.  As used in this section:

      (a) “Local emerging small business” has the meaning ascribed to it in section 8 of this act.

      (b) “Office” means the Office of Economic Development.

      (c) “State purchasing contract” means a contract awarded pursuant to the provisions of subsection 3 of NRS 333.300.

      Sec. 3. (Deleted by amendment.)

      Sec. 3.5. NRS 333.280 is hereby amended to read as follows:

      333.280  1.  Except as otherwise provided in this subsection, the Administrator may enter into a contract using a standard form of contract, by solicitation in accordance with the provisions of NRS 333.300 or by advertising in accordance with the provisions of NRS 333.310, for the furnishing of supplies, materials and equipment for not more than 2 years. If an extended contractual period is necessary to promote the use of a manufacturing process which emphasizes the efficient use of energy or to promote the manufacture of products which use recycled materials, the Administrator may enter into such a contract for not more than 3 years.

      2.  The original terms of a contract may be extended annually thereafter if the conditions for extension are specified in the original solicitation, and the Administrator determines that an extension is in the best interest of the State.

      Sec. 4. NRS 333.300 is hereby amended to read as follows:

      333.300  1.  Except as otherwise provided in NRS 333.375, the Administrator shall give reasonable notice, by advertising and by written notice provided to persons in a position to furnish the classes of commodities involved, as shown by its records, of all proposed purchases of supplies, materials and equipment to be purchased in accordance with a schedule prepared in conformity with the provisions of NRS 333.250.

      2.  All such materials, supplies and equipment, except as otherwise provided in this section, if the estimated cost thereof exceeds [$25,000,] $50,000, must be purchased by formal contract from the lowest responsible bidder after notice inviting the submission of sealed proposals to the Administrator of the Purchasing Division at the date, hour and location set forth in the proposal, and at that date, hour and location the proposals must be publicly opened. The Purchasing Division may reject any or all proposals, or may accept the proposal determined best for the interest of the State. The notice must be published as prescribed in NRS 333.310.

 


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      3.  The Administrator may solicit the purchase of materials, supplies and equipment, if the estimated cost thereof is $50,000 or less, by written contract from the lowest responsible bidder if notice of the proposed purchase is provided to:

      (a) At least three persons in a position to furnish the materials, supplies or equipment; and

      (b) The Office of Economic Development.

      4.  In case of emergencies caused by acts of God or the national defense or other unforeseeable circumstances, the provisions for advertisements on competitive bids may be waived by the Administrator, but every effort must be made to secure the maximum competitive bidding under the circumstances. In no case may contracts be awarded until every possible effort has been made to secure at least three bona fide competitive bids.

      [4.] 5.  In awarding contracts for the purchase of supplies, materials and equipment, if two or more lowest bids are identical, the Administrator shall:

      (a) If the lowest bids are by bidders resident in the State of Nevada, accept the proposal which, in the discretion of the Administrator, is in the best interests of this State.

      (b) If the lowest bids are by bidders resident outside the State of Nevada:

             (1) Accept the proposal of the bidder who will furnish goods or commodities produced or manufactured in this State; or

             (2) Accept the proposal of the bidder who will furnish goods or commodities supplied by a dealer resident in the State of Nevada.

      Sec. 5. Chapter 338 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Division shall submit a report every 6 months to the Office. The report must include, without limitation, for the period since the last report:

      (a) The number of local emerging small businesses that the Division solicited to submit a bid or proposal on a contract for a public work in this State;

      (b) The number of local emerging small businesses that submitted a bid or proposal on a contract for a public work in this State;

      (c) The number of contracts for public works of this State that were awarded by the Division to local emerging small businesses;

      (d) The total number of dollars’ worth of contracts for public works of this State that were awarded by the Division to local emerging small businesses;

      (e) Whether each goal established by the Office pursuant to section 16 of this act has been achieved;

      (f) For each goal established by the Office pursuant to section 16 of this act that has not been achieved, information on all efforts undertaken by the Division to achieve the goals in the current fiscal year and a proposed plan for achieving the goals in the subsequent fiscal year; and

      (g) Any other information deemed relevant by the Office.

      2.  The reports required pursuant to subsection 1 must be submitted within 30 days after:

      (a) The end of each fiscal year; and

      (b) The end of each calendar year.

      3.  As used in this section:

      (a) “Local emerging small business” has the meaning ascribed to it in section 8 of this act.

 


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      (b) “Office” means the Office of Economic Development.

      Sec. 6. Chapter 231 of NRS is hereby amended by adding thereto the provisions set forth as sections 7 to 17, inclusive, of this act.

      Sec. 7.  As used in sections 7 to 17, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 8, 9 and 10 of this act have the meanings ascribed to them in those sections.

      Sec. 8. “Local emerging small business” means a business that has been certified by the Office pursuant to section 12 of this act.

      Sec. 9. “Local purchasing contract” has the meaning ascribed to it in section 1 of this act.

      Sec. 10. “State purchasing contract” has the meaning ascribed to it in section 2 of this act.

      Sec. 11. 1.  To be eligible for certification as a local emerging small business, a business must:

      (a) Be in existence, operational and operated for a profit;

      (b) Maintain its principal place of business in this State;

      (c) Be in compliance with all applicable licensing and registration requirements in this State;

      (d) Not be a subsidiary or parent company belonging to a group of firms that are owned or controlled by the same persons if, in the aggregate, the group of firms does not qualify pursuant to subsection 2 or 3 for designation as a tier 1 firm or a tier 2 firm; and

      (e) Qualify pursuant to subsection 2 or 3 for designation as a tier 1 firm or a tier 2 firm.

      2.  To be designated a tier 1 firm, a business must not employ more than 20 full-time or full-time equivalent employees and:

      (a) If the business is involved in providing construction services, the average annual gross receipts for the business must not exceed $1.7 million for the 3 years immediately preceding the date of application for certification as a local emerging small business; or

      (b) If the business is involved in the sale of goods or in providing services other than construction services, the average annual gross receipts for the business must not exceed $700,000 for the 3 years immediately preceding the date of application for certification as a local emerging small business.

      3.  To be designated a tier 2 firm, a business must not employ more than 30 full-time or full-time equivalent employees and:

      (a) If the business is involved in providing construction services, the average annual gross receipts for the business must not exceed $3.5 million for the 3 years immediately preceding the date of application for certification as a local emerging small business; or

      (b) If the business is involved in the sale of goods or in providing services other than construction services, the average annual gross receipts for the business must not exceed $1.3 million for the 3 years immediately preceding the date of application for certification as a local emerging small business.

      4.  In determining if a business qualifies for a designation as a tier 1 firm or a tier 2 firm pursuant to subsection 2 or 3, the Office shall use the criteria set forth in section 13 of this act to determine whether an employee is a full-time equivalent employee for the purposes of such a designation.

      Sec. 12. 1.  A business may apply, on a form prescribed by regulation of the Office, to the Office for certification as a local emerging small business.

 


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small business. The application must be accompanied by such proof as the Office requires to demonstrate that the applicant is in compliance with the criteria set forth in section 11 of this act and any regulations adopted pursuant to section 14 of this act.

      2.  Upon receipt of the application and when satisfied that the applicant meets the requirements set forth in this section, section 11 of this act and any regulations adopted pursuant to section 14 of this act, the Office shall certify the business as a local emerging small business.

      3.  The Office shall compile a list of the local emerging small businesses certified pursuant to this section and post the list on its Internet website.

      Sec. 13. To determine whether an employee is a full-time equivalent employee pursuant to section 11 of this act:

      1.  An owner of a business applying for certification as a local emerging small business must not be considered a full-time equivalent employee;

      2.  The period during which the full-time equivalency of an employee is determined must be based on the same period as the tax year for the business applying for certification as a local emerging small business; and

      3.  The hours worked by part-time and seasonal employees must be converted into full-time equivalent hours by dividing by 2,080 the total hours worked for the business applying for certification by all part-time and seasonal employees.

      Sec. 14. 1.  The Office shall adopt regulations prescribing:

      (a) The application form and procedure for certification as a local emerging small business; and

      (b) The forms for the reports required pursuant to sections 1, 2 and 5 of this act.

      2.  The Office may adopt regulations to carry out the provisions of sections 7 to 17, inclusive, of this act.

      Sec. 15. 1.  The Office shall, in consultation with the Department of Business and Industry, establish an outreach program for local emerging small businesses to connect those businesses with state agencies seeking state purchasing contracts and contracts for public works of this State. To the extent practicable, such an outreach program must include private contractors to increase the awareness of those private contractors of the option of using local emerging small businesses to fulfill the contract needs of the private contractors.

      2.  The Office shall encourage the Purchasing Division of the Department of Administration and the State Public Works Division of the Department of Administration to:

      (a) Use the list of the local emerging small businesses compiled by the Office pursuant to section 12 of this act; and

      (b) Develop outreach programs for local emerging small businesses.

      Sec. 16. 1.  The Office shall establish goals for:

      (a) The submission of bids or proposals by local emerging small businesses for state purchasing contracts and for the awarding of those contracts to local emerging small businesses; and

      (b) The submission of bids or proposals by local emerging small businesses for contracts for public works of this State for which the estimated cost is less than $100,000 and for the awarding of those contracts to local emerging small businesses.

 


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      2.  The Office shall encourage:

      (a) Local governments to award local purchasing contracts and contracts for public works of the local government to local emerging small businesses;

      (b) Local governments to establish goals for the awarding of local purchasing contracts and contracts for public works of the local government to local emerging small businesses; and

      (c) Each local government in a county whose population is less than 100,000 to submit reports to the Office that are similar in nature and frequency to the reports required pursuant to section 1 of this act.

      3.  The Office, in cooperation with the Office of the Governor, shall establish an annual recognition program for the state agencies that meet the goals established pursuant to subsection 1.

      Sec. 17. On or before September 15 of each year, the Office shall submit a report to the Governor and to the Director of the Legislative Counsel Bureau for transmittal to the Interim Finance Committee, if the report is received during an odd-numbered year, or to the next session of the Legislature, if the report is received during an even-numbered year. The report must include, without limitation, for the fiscal year immediately preceding the submission of the report:

      1.  A summary of the information submitted to the Office pursuant to sections 1, 2 and 5 and, if applicable, paragraph (c) of subsection 2 of section 16 of this act, including, without limitation, efforts undertaken to achieve any goals established by the Office which were not achieved in the current fiscal year and proposed action plans for achieving those goals in the subsequent fiscal year; and

      2.  The number of local emerging small businesses which are designated as tier 1 firms and tier 2 firms pursuant to section 11 of this act. The numbers must be reported separately for businesses involved in providing construction services and for businesses involved in the sale of goods or in providing services other than construction services.

      Sec. 18. (Deleted by amendment.)

      Sec. 19.  1.  The initial reports required pursuant to sections 1, 2 and 5 of this act must include information for the period which begins on January 1, 2014, and ends on June 30, 2014.

      2.  Notwithstanding the provisions of section 17 of this act, the initial report required pursuant to that section must include information for the period which begins on January 1, 2014, and ends on June 30, 2014.

      Sec. 20.  This act becomes effective:

      1.  Upon passage and approval for the purposes of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

      2.  On January 1, 2014, for all other purposes.

________

 

 

 

 

 

 


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CHAPTER 547, SB 374

Senate Bill No. 374–Senators Segerblom, Hutchison; and Manendo

 

Joint Sponsors: Assemblymen Aizley; Hogan and Swank

 

CHAPTER 547

 

[Approved: June 12, 2013]

 

AN ACT relating to medical marijuana; making it a crime to counterfeit or forge, or attempt to counterfeit or forge, a registry identification card for the medical use of marijuana; making it a crime for a person to grow, harvest or process more than 12 marijuana plants; providing for the registration of medical marijuana establishments authorized to cultivate or dispense marijuana or manufacture edible marijuana products or marijuana-infused products for sale to persons authorized to engage in the medical use of marijuana; providing for the registration of agents who are employed by or volunteer at medical marijuana establishments; setting forth the manner in which such establishments must register and operate; creating the Subcommittee on the Medical Use of Marijuana of the Advisory Commission on the Administration of Justice; requiring the Health Division of the Department of Health and Human Services to adopt regulations; imposing an excise tax on each sale of marijuana, edible marijuana products and marijuana-infused products; providing penalties; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Under existing law, the State of Nevada provides immunity from state and local prosecution for possessing, delivering and producing marijuana in certain limited amounts for patients with qualifying medical conditions, and their designated primary caregivers, who apply to and receive from the Health Division of the Department of Health and Human Services a registry identification card. Existing law does not specify the manner in which qualifying patients and their designated primary caregivers are to obtain marijuana. (Chapter 453A of NRS)

      Section 1 of this bill makes it a crime, punishable as a category E felony, for a person to counterfeit or forge or attempt to counterfeit or forge a registry identification card, which is the instrument that indicates a bearer is entitled to engage in the medical use of marijuana. Section 1.7 of this bill makes it a crime, punishable as a category E felony, for a person to grow, harvest or process more than 12 marijuana plants, and also makes such a person liable for costs of cleanup and disposal.

      Sections 3.5, 7.3, 7.5, 8 and 8.3 of this bill define what is meant by a “medical marijuana establishment,” which includes: (1) cultivation facilities; (2) facilities for the production of edible marijuana products or marijuana-infused products; (3) independent testing laboratories; and (4) medical marijuana dispensaries.

      Section 1.4 of this bill creates the Subcommittee on the Medical Use of Marijuana of the Advisory Commission on the Administration of Justice. The Subcommittee is tasked with considering, evaluating, reviewing and reporting on the medical use of marijuana, the dispensation of marijuana for medical use and laws providing for the dispensation of marijuana for medical use.

      Sections 10-11.7 of this bill set forth the manner in which a person may apply to obtain a registration certificate to operate a medical marijuana establishment. Section 10 mandates background checks for persons proposed to be owners, officers or board members of medical marijuana establishments, and requires such establishments to be sited at least 1,000 feet from existing schools and at least 300 feet from certain existing community facilities.

 


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existing community facilities. Section 10.5 requires that medical marijuana establishments be located in accordance with local governmental ordinances on zoning and land use, and be professional in appearance. Section 11 limits, by the size of the population of each county, the number of medical marijuana establishments that may be certified in each county, and also limits the Division to accepting applications for the certification of the establishments to not more than 10 business days in any one calendar year. Section 11.5 imposes limits to prevent the overconcentration of medical marijuana establishments in one part of a county and to prevent situations of ownership that are geographically monopolistic. Section 11.7 sets forth the merit-based criteria to be used by the Health Division of the Department of Health and Human Services in determining whether to issue a registration certificate for the operation of a medical marijuana establishment, including such criteria as financial solvency, experience in running businesses, knowledge of medical marijuana and financial contributions by way of the payment of taxes or otherwise to the State of Nevada and its political subdivisions.

      Section 13 of this bill sets forth the procedure to apply for a medical marijuana establishment agent registration card, including background checks, and specifies that the application shall be deemed conditionally approved if the Division does not act upon the application within 30 days, but the conditional approval is limited to the period until such time as the Division acts upon the application.

      Section 12 of this bill provides the maximum fees to be charged by the Division for the initial issuance and renewal of medical marijuana establishment registration certificates and medical marijuana establishment agent registration cards. Section 12 also imposes, in the case of applications to operate a medical marijuana establishment, a nonrefundable application fee of $5,000. Section 13.5 states that the registration certificates and registration cards are nontransferable.

      Sections 14 and 15 of this bill, in accordance with federal law, outline the procedure for the suspension of medical marijuana establishment registration certificates and medical marijuana establishment agent registration cards in the event that the holder fails to comply with certain requirements pertaining to the payment of child support. Sections 16 and 17 of this bill set forth the acts that are immediate grounds for the Division to revoke a registration certificate or registration card. Section 18 of this bill provides that it is a privilege to hold a registration certificate or registration card and holding such an instrument conveys no vested rights.

      Section 19 of this bill sets forth requirements for the secure and lawful operation of medical marijuana establishments. Sections 19.1 and 19.2 of this bill, respectively, require medical marijuana establishments to maintain an electronic verification system and an inventory control system. Both systems are intended to work together to ensure that marijuana cultivated for medical use is dispensed only in accordance with chapter 453A of NRS and only to persons authorized to engage in the medical use of marijuana.

      Sections 19.3 and 20 of this bill require medical marijuana dispensaries to use an independent testing laboratory to ensure that the products sold to end users are tested for content, quality and potency. Section 19.4 of this bill sets forth that medical marijuana establishments are to use certain security protocols.

      Sections 19.5 and 24.9 of this bill provide for the dispensation of marijuana and related products to persons who are not residents of this State. From April 1, 2014, through March 31, 2016, a nonresident purchaser must sign an affidavit attesting to the fact that he or she is entitled to engage in the medical use of marijuana in his or her state or jurisdiction of residency. On and after April 1, 2016, the requirement for such an affidavit is replaced by computer cross-checking between the State of Nevada and other jurisdictions.

      Sections 19.6, 22.35, 22.4 and 22.45 of this bill allow a registry identification cardholder and his or her designated primary caregiver, if any, to choose a particular medical marijuana dispensary to be his or her designated medical marijuana dispensary. The designation of a medical marijuana dispensary may be changed not more than once every 30 days.

 


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      Section 19.7 of this bill requires that marijuana, edible marijuana products and marijuana-infused products be labeled and packaged in a safe manner.

      Section 19.8 of this bill allows the seizure of certain property possessed by a medical marijuana establishment under certain strictly prescribed circumstances.

      Section 19.9 of this bill requires the Division to prescribe standards for the operation of independent testing laboratories.

      Section 20 of this bill authorizes the Division to adopt any regulations the Division determines to be necessary or advisable to carry out the program of dispensing marijuana and related products to persons authorized by law to engage in the medical use of marijuana.

      Sections 22 and 22.3 of this bill increase the amounts of marijuana, edible marijuana products and marijuana-infused products that may be possessed collectively by a registry identification cardholder and his or her designated primary caregiver, if any. The increased amounts are derived, in substantial part, from the limits established by the State of Arizona. Sections 22 and 22.3 also provide a 2-year period, beginning on April 1, 2014, and ending on March 31, 2016, during which persons who are authorized to engage in the medical use of marijuana and who were cultivating, growing or producing marijuana on or before July 1, 2013, are “grandfathered” to continue such activity until March 31, 2016. On and after April 1, 2016, self-cultivation, self-growing and self-production is prohibited unless the person engaging in such activity qualifies for one of the compassionate exceptions from the prohibition, including illness that precludes travel to a medical marijuana dispensary, and the lack of a medical marijuana dispensary within 25 miles of the person’s residence.

      Section 22.4 of this bill stipulates that a registry identification card must indicate whether or not the holder is authorized to engage in the self-cultivation, self-growing or self-production of marijuana for medical purposes.

      Section 24 of this bill reduces by 50 percent the fees currently charged by the Division to provide an applicant with an application for a registry identification card, and to process the application and issue the card.

      Section 24.4 of this bill: (1) imposes an excise tax of 2 percent on each wholesale sale of marijuana, edible marijuana products and marijuana-infused products between medical marijuana establishments; (2) imposes an excise tax of 2 percent on the retail sale of marijuana and such products from a medical marijuana dispensary to an end user; and (3) makes clear that the 2 percent excise tax on retail sales is in addition to the state and local sales and use taxes that are otherwise imposed on the sale of tangible personal property.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 207 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  It is unlawful for any person to counterfeit or forge or attempt to counterfeit or forge a registry identification card.

      2.  Any person who violates the provisions of subsection 1 is guilty of a category E felony and shall be punished as provided in NRS 193.130.

      3.  As used in this section, “registry identification card” has the meaning ascribed to it in NRS 453A.140.

      Sec. 1.3. NRS 207.360 is hereby amended to read as follows:

      207.360  “Crime related to racketeering” means the commission of, attempt to commit or conspiracy to commit any of the following crimes:

 

 


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      1.  Murder;

      2.  Manslaughter, except vehicular manslaughter as described in NRS 484B.657;

      3.  Mayhem;

      4.  Battery which is punished as a felony;

      5.  Kidnapping;

      6.  Sexual assault;

      7.  Arson;

      8.  Robbery;

      9.  Taking property from another under circumstances not amounting to robbery;

      10.  Extortion;

      11.  Statutory sexual seduction;

      12.  Extortionate collection of debt in violation of NRS 205.322;

      13.  Forgery;

      14.  Any violation of NRS 199.280 which is punished as a felony;

      15.  Burglary;

      16.  Grand larceny;

      17.  Bribery or asking for or receiving a bribe in violation of chapter 197 or 199 of NRS which is punished as a felony;

      18.  Battery with intent to commit a crime in violation of NRS 200.400;

      19.  Assault with a deadly weapon;

      20.  Any violation of NRS 453.232, 453.316 to 453.3395, inclusive, except a violation of section 1.7 of this act, or NRS 453.375 to 453.401, inclusive;

      21.  Receiving or transferring a stolen vehicle;

      22.  Any violation of NRS 202.260, 202.275 or 202.350 which is punished as a felony;

      23.  Any violation of subsection 2 or 3 of NRS 463.360 or chapter 465 of NRS;

      24.  Receiving, possessing or withholding stolen goods valued at $650 or more;

      25.  Embezzlement of money or property valued at $650 or more;

      26.  Obtaining possession of money or property valued at $650 or more, or obtaining a signature by means of false pretenses;

      27.  Perjury or subornation of perjury;

      28.  Offering false evidence;

      29.  Any violation of NRS 201.300 or 201.360;

      30.  Any violation of NRS 90.570, 91.230 or 686A.290, or insurance fraud pursuant to NRS 686A.291;

      31.  Any violation of NRS 205.506, 205.920 or 205.930;

      32.  Any violation of NRS 202.445 or 202.446; or

      33.  Any violation of NRS 205.377.

      Sec. 1.4. Chapter 176 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  There is hereby created the Subcommittee on the Medical Use of Marijuana of the Commission.

      2.  The Chair of the Commission shall appoint the members of the Subcommittee. The Subcommittee must consist of legislative and nonlegislative members, including, without limitation:

      (a) At least four Legislators, who may or may not be members of the Commission.

 


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      (b) A representative of the Health Division of the Department of Health and Human Services.

      (c) A patient who holds a valid registry identification card to engage in the medical use of marijuana pursuant to chapter 453A of NRS.

      (d) An owner or operator of a cultivation facility that is certified to operate pursuant to chapter 453A of NRS.

      (e) An owner or operator of a facility for the production of edible marijuana products or marijuana-infused products that is certified to operate pursuant to chapter 453A of NRS.

      (f) An owner or operator of a medical marijuana dispensary that is certified to operate pursuant to chapter 453A of NRS.

      (g) A representative of the Attorney General.

      (h) A representative of a civil liberties organization.

      (i) A representative of an organization which advocates for persons who use marijuana for medicinal purposes.

      (j) A representative of a law enforcement agency located within the jurisdiction of Clark County.

      (k) A representative of a law enforcement agency located within the jurisdiction of Washoe County.

      (l) A representative of local government.

      3.  The Chair of the Commission shall designate one of the legislative members of the Commission as Chair of the Subcommittee.

      4.  The Subcommittee shall meet at the times and places specified by a call of the Chair. A majority of the members of the Subcommittee constitutes a quorum, and a quorum may exercise any power or authority conferred on the Subcommittee.

      5.  The Subcommittee shall:

      (a) Consider issues concerning the medical use of marijuana, the dispensation of marijuana for medical use and the implementation of provisions of law providing for the dispensation of marijuana for medical use; and

      (b) Evaluate, review and submit a report to the Commission with recommendations concerning such issues.

      6.  Any Legislators who are members of the Subcommittee are entitled to receive the salary provided for a majority of the members of the Legislature during the first 60 days of the preceding session for each day’s attendance at a meeting of the Subcommittee.

      7.  While engaged in the business of the Subcommittee, to the extent of legislative appropriation, each member of the Subcommittee is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.

      Sec. 1.45. NRS 176.0121 is hereby amended to read as follows:

      176.0121  As used in NRS 176.0121 to 176.0129, inclusive, and section 1.4 of this act, “Commission” means the Advisory Commission on the Administration of Justice.

      Sec. 1.5. NRS 391.311 is hereby amended to read as follows:

      391.311  As used in NRS 391.311 to 391.3197, inclusive, unless the context otherwise requires:

      1.  “Administrator” means any employee who holds a license as an administrator and who is employed in that capacity by a school district.

 


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      2.  “Board” means the board of trustees of the school district in which a licensed employee affected by NRS 391.311 to 391.3197, inclusive, is employed.

      3.  “Demotion” means demotion of an administrator to a position of lesser rank, responsibility or pay and does not include transfer or reassignment for purposes of an administrative reorganization.

      4.  “Immorality” means:

      (a) An act forbidden by NRS 200.366, 200.368, 200.400, 200.508, 201.180, 201.190, 201.210, 201.220, 201.230, 201.265, 201.540, 201.560, 207.260, 453.316 to 453.336, inclusive, except an act forbidden by section 1.7 of this act, NRS 453.337, 453.338, 453.3385 to 453.3405, inclusive, 453.560 or 453.562; or

      (b) An act forbidden by NRS 201.540 or any other sexual conduct or attempted sexual conduct with a pupil enrolled in an elementary or secondary school. As used in this paragraph, “sexual conduct” has the meaning ascribed to it in NRS 201.520.

      5.  “Postprobationary employee” means an administrator or a teacher who has completed the probationary period as provided in NRS 391.3197 and has been given notice of reemployment. The term does not include a person who is deemed to be a probationary employee pursuant to NRS 391.3129.

      6.  “Probationary employee” means:

      (a) An administrator or a teacher who is employed for the period set forth in NRS 391.3197; and

      (b) A person who is deemed to be a probationary employee pursuant to NRS 391.3129.

      7.  “Superintendent” means the superintendent of a school district or a person designated by the board or superintendent to act as superintendent during the absence of the superintendent.

      8.  “Teacher” means a licensed employee the majority of whose working time is devoted to the rendering of direct educational service to pupils of a school district.

      Sec. 1.7. Chapter 453 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A person shall not knowingly or intentionally manufacture, grow, plant, cultivate, harvest, dry, propagate or process marijuana, except as specifically authorized by the provisions of this chapter or chapter 453A of NRS.

      2.  Unless a greater penalty is provided in NRS 453.339, a person who violates subsection 1, if the quantity involved is more than 12 marijuana plants, irrespective of whether the marijuana plants are mature or immature, is guilty of a category E felony and shall be punished as provided in NRS 193.130.

      3.  In addition to any punishment imposed pursuant to subsection 2, the court shall order a person convicted of a violation of subsection 1 to pay all costs associated with any necessary cleanup and disposal related to the manufacturing, growing, planting, cultivation, harvesting, drying, propagation or processing of the marijuana.

      Sec. 2. Chapter 453A of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 20, inclusive, of this act.

      Sec. 3. “Crime of violence” means any felony:

 


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      1.  Involving the use or threatened use of force or violence against the person or property of another; or

      2.  For which there is a substantial risk that force or violence may be used against the person or property of another in the commission of the felony.

      Sec. 3.5. “Cultivation facility” means a business that:

      1.  Is registered with the Division pursuant to section 10 of this act; and

      2.  Acquires, possesses, cultivates, delivers, transfers, transports, supplies or sells marijuana and related supplies to:

      (a) Medical marijuana dispensaries;

      (b) Facilities for the production of edible marijuana products or marijuana-infused products; or

      (c) Other cultivation facilities.

      Secs. 4 and 5. (Deleted by amendment.)

      Sec. 5.3. “Edible marijuana products” means products that:

      1.  Contain marijuana or an extract thereof;

      2.  Are intended for human consumption by oral ingestion; and

      3.  Are presented in the form of foodstuffs, extracts, oils, tinctures and other similar products.

      Sec. 5.5. “Electronic verification system” means an electronic database that:

      1.  Keeps track of data in real time; and

      2.  Is accessible by the Division and by registered medical marijuana establishments.

      Sec. 6. “Enclosed, locked facility” means a closet, display case, room, greenhouse or other enclosed area that meets the requirements of section 19.4 of this act and is equipped with locks or other security devices which allow access only by a medical marijuana establishment agent and the holder of a valid registry identification card.

      Sec. 7. 1.  “Excluded felony offense” means:

      (a) A crime of violence; or

      (b) A violation of a state or federal law pertaining to controlled substances, if the law was punishable as a felony in the jurisdiction where the person was convicted.

      2.  The term does not include:

      (a) A criminal offense for which the sentence, including any term of probation, incarceration or supervised release, was completed more than 10 years before; or

      (b) An offense involving conduct that would be immune from arrest, prosecution or penalty pursuant to sections 10 to 20, inclusive, of this act, except that the conduct occurred before April 1, 2014, or was prosecuted by an authority other than the State of Nevada.

      Sec. 7.3.“Facility for the production of edible marijuana products or marijuana-infused products” means a business that:

      1.  Is registered with the Division pursuant to section 10 of this act; and

      2.  Acquires, possesses, manufactures, delivers, transfers, transports, supplies or sells edible marijuana products or marijuana-infused products to medical marijuana dispensaries.

      Sec. 7.5. “Independent testing laboratory” means a facility described in section 19.9 of this act.

 


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      Sec. 7.7. “Inventory control system” means a process, device or other contrivance that may be used to monitor the chain of custody of marijuana used for medical purposes from the point of cultivation to the end consumer.

      Sec. 7.9. 1.  “Marijuana-infused products” means products that:

      (a) Are infused with marijuana or an extract thereof; and

      (b) Are intended for use or consumption by humans through means other than inhalation or oral ingestion.

      2.  The term includes, without limitation, topical products, ointments, oils and tinctures.

      Sec. 8. “Medical marijuana dispensary” means a business that:

      1.  Is registered with the Division pursuant to section 10 of this act; and

      2.  Acquires, possesses, delivers, transfers, transports, supplies, sells or dispenses marijuana or related supplies and educational materials to the holder of a valid registry identification card.

      Sec. 8.3.“Medical marijuana establishment” means:

      1.  An independent testing laboratory;

      2.  A cultivation facility;

      3.  A facility for the production of edible marijuana products or marijuana-infused products;

      4.  A medical marijuana dispensary; or

      5.  A business that has registered with the Division and paid the requisite fees to act as more than one of the types of businesses listed in subsections 2, 3 and 4.

      Sec. 8.5. “Medical marijuana establishment agent” means an owner, officer, board member, employee or volunteer of a medical marijuana establishment.

      Sec. 8.6. “Medical marijuana establishment agent registration card” means a registration card that is issued by the Division pursuant to section 13 of this act to authorize a person to volunteer or work at a medical marijuana establishment.

      Sec. 8.7. “Medical marijuana establishment registration certificate” means a registration certificate that is issued by the Division pursuant to section 10 of this act to authorize the operation of a medical marijuana establishment.

      Sec. 8.8. “THC” means delta-9-tetrahydrocannabinol, which is the primary active ingredient in marijuana.

      Sec. 9. (Deleted by amendment.)

      Sec. 10.  1.  Each medical marijuana establishment must register with the Division.

      2.  A person who wishes to operate a medical marijuana establishment must submit to the Division an application on a form prescribed by the Division.

      3.  Except as otherwise provided in sections 11, 11.5, 11.7 and 16 of this act, not later than 90 days after receiving an application to operate a medical marijuana establishment, the Division shall register the medical marijuana establishment and issue a medical marijuana establishment registration certificate and a random 20-digit alphanumeric identification number if:

      (a) The person who wishes to operate the proposed medical marijuana establishment has submitted to the Division all of the following:

 


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             (1) The application fee, as set forth in section 12 of this act;

             (2) An application, which must include:

                   (I) The legal name of the proposed medical marijuana establishment;

                   (II) The physical address where the proposed medical marijuana establishment will be located and the physical address of any co-owned additional or otherwise associated medical marijuana establishments, the locations of which may not be within 1,000 feet of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the date on which the application for the proposed medical marijuana establishment was submitted to the Division, or within 300 feet of a community facility that existed on the date on which the application for the proposed medical marijuana establishment was submitted to the Division;

                   (III) Evidence that the applicant controls not less than $250,000 in liquid assets to cover the initial expenses of opening the proposed medical marijuana establishment and complying with the provisions of sections 10 to 20, inclusive, of this act;

                   (IV) Evidence that the applicant owns the property on which the proposed medical marijuana establishment will be located or has the written permission of the property owner to operate the proposed medical marijuana establishment on that property;

                   (V) For the applicant and each person who is proposed to be an owner, officer or board member of the proposed medical marijuana establishment, a complete set of the person’s fingerprints and written permission of the person authorizing the Division to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;

                   (VI) The name, address and date of birth of each person who is proposed to be an owner, officer or board member of the proposed medical marijuana establishment; and

                   (VII) The name, address and date of birth of each person who is proposed to be employed by or otherwise provide labor at the proposed medical marijuana establishment as a medical marijuana establishment agent;

             (3) Operating procedures consistent with rules of the Division for oversight of the proposed medical marijuana establishment, including, without limitation:

                   (I) Procedures to ensure the use of adequate security measures; and

                   (II) The use of an electronic verification system and an inventory control system, pursuant to sections 19.1 and 19.2 of this act;

             (4) If the proposed medical marijuana establishment will sell or deliver edible marijuana products or marijuana-infused products, proposed operating procedures for handling such products which must be preapproved by the Division;

             (5) If the city, town or county in which the proposed medical marijuana establishment will be located has enacted zoning restrictions, proof of licensure with the applicable local governmental authority or a letter from the applicable local governmental authority certifying that the proposed medical marijuana establishment is in compliance with those restrictions and satisfies all applicable building requirements; and

 


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proposed medical marijuana establishment is in compliance with those restrictions and satisfies all applicable building requirements; and

             (6) Such other information as the Division may require by regulation;

      (b) None of the persons who are proposed to be owners, officers or board members of the proposed medical marijuana establishment have been convicted of an excluded felony offense;

      (c) None of the persons who are proposed to be owners, officers or board members of the proposed medical marijuana establishment have:

             (1) Served as an owner, officer or board member for a medical marijuana establishment that has had its medical marijuana establishment registration certificate revoked; or

             (2) Previously had a medical marijuana establishment agent registration card revoked; and

      (d) None of the persons who are proposed to be owners, officers or board members of the proposed medical marijuana establishment are under 21 years of age.

      4.  For each person who submits an application pursuant to this section, and each person who is proposed to be an owner, officer or board member of a proposed medical marijuana establishment, the Division shall submit the fingerprints of the person to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation to determine the criminal history of that person.

      5.  Except as otherwise provided in subsection 6, if an application for registration as a medical marijuana establishment satisfies the requirements of this section and the establishment is not disqualified from being registered as a medical marijuana establishment pursuant to this section or other applicable law, the Division shall issue to the establishment a medical marijuana establishment registration certificate. A medical marijuana establishment registration certificate expires 1 year after the date of issuance and may be renewed upon:

      (a) Resubmission of the information set forth in this section; and

      (b) Payment of the renewal fee set forth in section 12 of this act.

      6.  In determining whether to issue a medical marijuana establishment registration certificate pursuant to this section, the Division shall consider the criteria of merit set forth in section 11.7 of this act.

      7.  As used in this section, “community facility” means:

      (a) A facility that provides day care to children.

      (b) A public park.

      (c) A playground.

      (d) A public swimming pool.

      (e) A center or facility, the primary purpose of which is to provide recreational opportunities or services to children or adolescents.

      (f) A church, synagogue or other building, structure or place used for religious worship or other religious purpose.

      Sec. 10.5. Each medical marijuana establishment must:

      1.  Be located in a separate building or facility that is located in a commercial or industrial zone or overlay;

      2.  Comply with all local ordinances and rules pertaining to zoning, land use and signage;

 


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      3.  Have an appearance, both as to the interior and exterior, that is professional, orderly, dignified and consistent with the traditional style of pharmacies and medical offices; and

      4.  Have discreet and professional signage that is consistent with the traditional style of signage for pharmacies and medical offices.

      Sec. 11. 1.  Except as otherwise provided in this section and section 11.5 of this act, the Division shall issue medical marijuana establishment registration certificates for medical marijuana dispensaries in the following quantities for applicants who qualify pursuant to section 10 of this act:

      (a) In a county whose population is 700,000 or more, 40 certificates;

      (b) In a county whose population is 100,000 or more but less than 700,000, 10 certificates;

      (c) In a county whose population is 55,000 or more but less than 100,000, 2 certificates; and

      (d) In each other county, 1 certificate.

      2.  Notwithstanding the provisions of subsection 1, the Division shall not issue medical marijuana establishment registration certificates for medical marijuana dispensaries in such a quantity as to cause the existence within the applicable county of more than one medical marijuana dispensary for every 10 pharmacies that have been licensed in the county pursuant to chapter 639 of NRS. The Division may issue medical marijuana establishment registration certificates for medical marijuana dispensaries in excess of the ratio otherwise allowed pursuant to this subsection if to do so is necessary to ensure that the Division issues at least one medical marijuana establishment registration certificate in each county of this State in which the Division has approved an application for such an establishment to operate.

      3.  With respect to medical marijuana establishments that are not medical marijuana dispensaries, the Division shall determine the appropriate number of such establishments as are necessary to serve and supply the medical marijuana dispensaries to which the Division has granted medical marijuana establishment registration certificates.

      4.  The Division shall not, for more than a total of 10 business days in any 1 calendar year, accept applications to operate medical marijuana establishments.

      Sec. 11.5. 1.  Except as otherwise provided in this subsection, in a county whose population is 100,000 or more, the Division shall ensure that not more than 25 percent of the total number of medical marijuana dispensaries that may be certified in the county, as set forth in section 11 of this act, are located in any one local governmental jurisdiction within the county. The board of county commissioners of the county may increase the percentage described in this subsection if it determines that to do so is necessary to ensure that the more populous areas of the county have access to sufficient distribution of marijuana for medical use.

      2.  To prevent monopolistic practices, the Division shall ensure, in a county whose population is 100,000 or more, that it does not issue, to any one person, group of persons or entity, the greater of:

      (a) One medical marijuana establishment registration certificate; or

      (b) More than 10 percent of the medical marijuana establishment registration certificates otherwise allocable in the county.

 


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      3.  In a local governmental jurisdiction that issues business licenses, the issuance by the Division of a medical marijuana establishment registration certificate shall be deemed to be provisional until such time as:

      (a) The establishment is in compliance with all applicable local governmental ordinances or rules; and

      (b) The local government has issued a business license for the operation of the establishment.

      4.  As used in this section, “local governmental jurisdiction” means a city, town, township or unincorporated area within a county.

      Sec. 11.7. In determining whether to issue a medical marijuana establishment registration certificate pursuant to section 10 of this act, the Division shall, in addition to the factors set forth in that section, consider the following criteria of merit:

      1.  The total financial resources of the applicant, both liquid and illiquid;

      2.  The previous experience of the persons who are proposed to be owners, officers or board members of the proposed medical marijuana establishment at operating other businesses or nonprofit organizations;

      3.  The educational achievements of the persons who are proposed to be owners, officers or board members of the proposed medical marijuana establishment;

      4.  Any demonstrated knowledge or expertise on the part of the persons who are proposed to be owners, officers or board members of the proposed medical marijuana establishment with respect to the compassionate use of marijuana to treat medical conditions;

      5.  Whether the proposed location of the proposed medical marijuana establishment would be convenient to serve the needs of persons who are authorized to engage in the medical use of marijuana;

      6.  The likely impact of the proposed medical marijuana establishment on the community in which it is proposed to be located;

      7.  The adequacy of the size of the proposed medical marijuana establishment to serve the needs of persons who are authorized to engage in the medical use of marijuana;

      8.  Whether the applicant has an integrated plan for the care, quality and safekeeping of medical marijuana from seed to sale;

      9.  The amount of taxes paid to, or other beneficial financial contributions made to, the State of Nevada or its political subdivisions by the applicant or the persons who are proposed to be owners, officers or board members of the proposed medical marijuana establishment; and

      10.  Any other criteria of merit that the Division determines to be relevant.

      Sec. 12. 1.  Except as otherwise provided in subsection 2, the Division shall collect not more than the following maximum fees:

 

For the initial issuance of a medical marijuana establishment registration certificate for a medical marijuana dispensary................................................................................... $30,000

For the renewal of a medical marijuana establishment registration certificate for a medical marijuana dispensary........................................................................................................... 5,000

 


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For the initial issuance of a medical marijuana establishment registration certificate for a cultivation facility   $3,000

For the renewal of a medical marijuana establishment registration certificate for a cultivation facility   1,000

For the initial issuance of a medical marijuana establishment registration certificate for a facility for the production of edible marijuana products or marijuana-infused products 3,000

For the renewal of a medical marijuana establishment registration certificate for a facility for the production of edible marijuana products or marijuana-infused products.............. 1,000

For the initial issuance of a medical marijuana establishment agent registration card  75

For the renewal of a medical marijuana establishment agent registration card   75

For the initial issuance of a medical marijuana establishment registration certificate for an independent testing laboratory........................................................................................ 5,000

For the renewal of a medical marijuana establishment registration certificate for an independent testing laboratory............................................................................................................ 3,000

 

      2.  In addition to the fees described in subsection 1, each applicant for a medical marijuana establishment registration certificate must pay to the Division:

      (a) A one-time, nonrefundable application fee of $5,000; and

      (b) The actual costs incurred by the Division in processing the application, including, without limitation, conducting background checks.

      3.  Any revenue generated from the fees imposed pursuant to this section:

      (a) Must be expended first to pay the costs of the Division in carrying out the provisions of sections 10 to 20, inclusive of this act; and

      (b) If any excess revenue remains after paying the costs described in paragraph (a), such excess revenue must be paid over to the State Treasurer to be deposited to the credit of the State Distributive School Account in the State General Fund.

      Sec. 13. 1.  Except as otherwise provided in this section, a person shall not volunteer or work at a medical marijuana establishment as a medical marijuana establishment agent unless the person is registered with the Division pursuant to this section.

      2.  A medical marijuana establishment that wishes to retain as a volunteer or employ a medical marijuana establishment agent shall submit to the Division an application on a form prescribed by the Division. The application must be accompanied by:

      (a) The name, address and date of birth of the prospective medical marijuana establishment agent;

      (b) A statement signed by the prospective medical marijuana establishment agent pledging not to dispense or otherwise divert marijuana to any person who is not authorized to possess marijuana in accordance with the provisions of this chapter;

 


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      (c) A statement signed by the prospective medical marijuana establishment agent asserting that he or she has not previously had a medical marijuana establishment agent registration card revoked;

      (d) A complete set of the fingerprints and written permission of the prospective medical marijuana establishment agent authorizing the Division to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;

      (e) The application fee, as set forth in section 12 of this act; and

      (f) Such other information as the Division may require by regulation.

      3.  A medical marijuana establishment shall notify the Division within 10 days after a medical marijuana establishment agent ceases to be employed by or volunteer at the medical marijuana establishment.

      4.  A person who:

      (a) Has been convicted of an excluded felony offense; or

      (b) Is less than 21 years of age,

Κ shall not serve as a medical marijuana establishment agent.

      5.  The Division shall submit the fingerprints of an applicant for registration as a medical marijuana establishment agent to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation to determine the criminal history of the applicant.

      6.  The provisions of this section do not require a person who is an owner, officer or board member of a medical marijuana establishment to resubmit information already furnished to the Division at the time the establishment was registered with the Division.

      7.  If an applicant for registration as a medical marijuana establishment agent satisfies the requirements of this section and is not disqualified from serving as such an agent pursuant to this section or any other applicable law, the Division shall issue to the person a medical marijuana establishment agent registration card. If the Division does not act upon an application for a medical marijuana establishment agent registration card within 30 days after the date on which the application is received, the application shall be deemed conditionally approved until such time as the Division acts upon the application. A medical marijuana establishment agent registration card expires 1 year after the date of issuance and may be renewed upon:

      (a) Resubmission of the information set forth in this section; and

      (b) Payment of the renewal fee set forth in section 12 of this act.

      Sec. 13.5. The following are nontransferable:

      1.  A medical marijuana establishment agent registration card.

      2.  A medical marijuana establishment registration certificate.

      Sec. 14. 1.  In addition to any other requirements set forth in this chapter, an applicant for the issuance or renewal of a medical marijuana establishment agent registration card or medical marijuana establishment registration certificate shall:

      (a) Include the social security number of the applicant in the application submitted to the Division.

      (b) Submit to the Division the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

 


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      2.  The Division shall include the statement required pursuant to subsection 1 in:

      (a) The application or any other forms that must be submitted for the issuance or renewal of the medical marijuana establishment agent registration card or medical marijuana establishment registration certificate; or

      (b) A separate form prescribed by the Division.

      3.  A medical marijuana establishment agent registration card or medical marijuana establishment registration certificate may not be issued or renewed by the Division if the applicant:

      (a) Fails to submit the statement required pursuant to subsection 1; or

      (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

      4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Division shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      Sec. 15. 1.  If the Division receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a medical marijuana establishment agent registration card or medical marijuana establishment registration certificate, the Division shall deem the card or certificate issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Division receives a letter issued to the holder of the card or certificate by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the card or certificate has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Division shall reinstate a medical marijuana establishment agent registration card or medical marijuana establishment registration certificate that has been suspended by a district court pursuant to NRS 425.540 if the Division receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose card or certificate was suspended stating that the person whose card or certificate was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      Sec. 16. The following acts constitute grounds for immediate revocation of a medical marijuana establishment registration certificate:

      1.  Dispensing, delivering or otherwise transferring marijuana to a person other than a medical marijuana establishment agent, another medical marijuana establishment, a patient who holds a valid registry identification card or the designated primary caregiver of such a patient.

      2.  Acquiring usable marijuana or mature marijuana plants from any person other than a medical marijuana establishment agent, another medical marijuana establishment, a patient who holds a valid registry identification card or the designated primary caregiver of such a patient.

 


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medical marijuana establishment, a patient who holds a valid registry identification card or the designated primary caregiver of such a patient.

      3.  Violating a regulation of the Division, the violation of which is stated to be grounds for immediate revocation of a medical marijuana establishment registration certificate.

      Sec. 17. The following acts constitute grounds for the immediate revocation of the medical marijuana establishment agent registration card of a medical marijuana establishment agent:

      1.  Having committed or committing any excluded felony offense.

      2.  Dispensing, delivering or otherwise transferring marijuana to a person other than a medical marijuana establishment agent, another medical marijuana establishment, a patient who holds a valid registry identification card or the designated primary caregiver of such a patient.

      3.  Violating a regulation of the Division, the violation of which is stated to be grounds for immediate revocation of a medical marijuana establishment agent registration card.

      Sec. 18. The purpose for registering medical marijuana establishments and medical marijuana establishment agents is to protect the public health and safety and the general welfare of the people of this State. Any medical marijuana establishment registration certificate issued pursuant to section 10 of this act and any medical marijuana establishment agent registration card issued pursuant to section 13 of this act is a revocable privilege and the holder of such a certificate or card, as applicable, does not acquire thereby any vested right.

      Sec. 19.  1.  The operating documents of a medical marijuana establishment must include procedures:

      (a) For the oversight of the medical marijuana establishment; and

      (b) To ensure accurate recordkeeping, including, without limitation, the provisions of sections 19.1 and 19.2 of this act.

      2.  Except as otherwise provided in this subsection, a medical marijuana establishment:

      (a) That is a medical marijuana dispensary must have a single entrance for patrons, which must be secure, and shall implement strict security measures to deter and prevent the theft of marijuana and unauthorized entrance into areas containing marijuana.

      (b) That is not a medical marijuana dispensary must have a single secure entrance and shall implement strict security measures to deter and prevent the theft of marijuana and unauthorized entrance into areas containing marijuana.

Κ The provisions of this subsection do not supersede any state or local requirements relating to minimum numbers of points of entry or exit, or any state or local requirements relating to fire safety.

      3.  A medical marijuana establishment is prohibited from acquiring, possessing, cultivating, manufacturing, delivering, transferring, transporting, supplying or dispensing marijuana for any purpose except to:

      (a) Directly or indirectly assist patients who possess valid registry identification cards; and

      (b) Assist patients who possess valid registry identification cards by way of those patients’ designated primary caregivers.

Κ For the purposes of this subsection, a person shall be deemed to be a patient who possesses a valid registry identification card if he or she qualifies for nonresident reciprocity pursuant to section 19.5 of this act.

 


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      4.  All cultivation or production of marijuana that a cultivation facility carries out or causes to be carried out must take place in an enclosed, locked facility at the physical address provided to the Division during the registration process for the cultivation facility. Such an enclosed, locked facility must be accessible only by medical marijuana establishment agents who are lawfully associated with the cultivation facility, except that limited access by persons necessary to perform construction or repairs or provide other labor is permissible if such persons are supervised by a medical marijuana establishment agent.

      5.  A medical marijuana dispensary and a cultivation facility may acquire usable marijuana or marijuana plants from a patient who holds a valid registry identification card, or the designated primary caregiver of such a patient. Except as otherwise provided in this subsection, the patient or caregiver, as applicable, must receive no compensation for the marijuana. A patient who holds a valid registry identification card, and the designated primary caregiver of such a patient, may sell usable marijuana to a medical marijuana dispensary one time and may sell marijuana plants to a cultivation facility one time.

      6.  A medical marijuana establishment shall not allow any person to consume marijuana on the property or premises of the establishment.

      7.  Medical marijuana establishments are subject to reasonable inspection by the Division at any time, and a person who holds a medical marijuana establishment registration certificate must make himself or herself, or a designee thereof, available and present for any inspection by the Division of the establishment.

      Sec. 19.1.1.  Each medical marijuana establishment, in consultation with the Division, shall maintain an electronic verification system.

      2.  The electronic verification system required pursuant to subsection 1 must be able to monitor and report information, including, without limitation:

      (a) In the case of a medical marijuana dispensary, for each person who holds a valid registry identification card and who purchased marijuana from the dispensary in the immediately preceding 60-day period:

             (1) The number of the card;

             (2) The date on which the card was issued; and

             (3) The date on which the card will expire.

      (b) For each medical marijuana establishment agent who is employed by or volunteers at the medical marijuana establishment, the number of the person’s medical marijuana establishment agent registration card.

      (c) In the case of a medical marijuana dispensary, such information as may be required by the Division by regulation regarding persons who are not residents of this State and who have purchased marijuana from the dispensary.

      (d) Verification of the identity of a person to whom marijuana, edible marijuana products or marijuana-infused products are sold or otherwise distributed.

      (e) Such other information as the Division may require.

 


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      3.  Nothing in this section prohibits more than one medical marijuana establishment from co-owning an electronic verification system in cooperation with other medical marijuana establishments, or sharing the information obtained therefrom.

      4.  A medical marijuana establishment must exercise reasonable care to ensure that the personal identifying information of persons who hold registry identification cards which is contained in an electronic verification system is encrypted, protected and not divulged for any purpose not specifically authorized by law.

      Sec. 19.2.1.  Each medical marijuana establishment, in consultation with the Division, shall maintain an inventory control system.

      2.  The inventory control system required pursuant to subsection 1 must be able to monitor and report information, including, without limitation:

      (a) Insofar as is practicable, the chain of custody and current whereabouts, in real time, of medical marijuana from the point that it is harvested at a cultivation facility until it is sold at a medical marijuana dispensary and, if applicable, if it is processed at a facility for the production of edible marijuana products or marijuana-infused products;

      (b) The name of each person or other medical marijuana establishment, or both, to which the establishment sold marijuana;

      (c) In the case of a medical marijuana dispensary, the date on which it sold marijuana to a person who holds a registry identification card and, if any, the quantity of edible marijuana products or marijuana-infused products sold, measured both by weight and potency; and

      (d) Such other information as the Division may require.

      3.  Nothing in this section prohibits more than one medical marijuana establishment from co-owning an inventory control system in cooperation with other medical marijuana establishments, or sharing the information obtained therefrom.

      4.  A medical marijuana establishment must exercise reasonable care to ensure that the personal identifying information of persons who hold registry identification cards which is contained in an inventory control system is encrypted, protected and not divulged for any purpose not specifically authorized by law.

      Sec. 19.3.Each medical marijuana dispensary shall ensure all of the following:

      1.  The weight, concentration and content of THC in all marijuana, edible marijuana products and marijuana-infused products that the dispensary sells is clearly and accurately stated on the product sold.

      2.  That the dispensary does not sell to a person, in any one 14-day period, an amount of marijuana for medical purposes that exceeds the limits set forth in NRS 453A.200.

      3.  That, posted clearly and conspicuously within the dispensary, are the legal limits on the possession of marijuana for medical purposes, as set forth in NRS 453A.200.

      4.  That, posted clearly and conspicuously within the dispensary, is a sign stating unambiguously the legal limits on the possession of marijuana for medical purposes, as set forth in NRS 453A.200.

      Sec. 19.4. 1.  At each medical marijuana establishment, medical marijuana must be stored only in an enclosed, locked facility.

 


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      2.  Except as otherwise provided in subsection 3, at each medical marijuana dispensary, medical marijuana must be stored in a secure, locked device, display case, cabinet or room within the enclosed, locked facility. The secure, locked device, display case, cabinet or room must be protected by a lock or locking mechanism that meets at least the security rating established by Underwriters Laboratories for key locks.

      3.  At a medical marijuana dispensary, medical marijuana may be removed from the secure setting described in subsection 2:

      (a) Only for the purpose of dispensing the marijuana;

      (b) Only immediately before the marijuana is dispensed; and

      (c) Only by a medical marijuana establishment agent who is employed by or volunteers at the dispensary.

      Sec. 19.5. 1.  The State of Nevada and the medical marijuana dispensaries in this State which hold valid medical marijuana establishment registration certificates will recognize a nonresident card only under the following circumstances:

      (a) The state or jurisdiction from which the holder or bearer obtained the nonresident card grants an exemption from criminal prosecution for the medical use of marijuana;

      (b) The state or jurisdiction from which the holder or bearer obtained the nonresident card requires, as a prerequisite to the issuance of such a card, that a physician advise the person that the medical use of marijuana may mitigate the symptoms or effects of the person’s medical condition;

      (c) The nonresident card has an expiration date and has not yet expired;

      (d) The holder or bearer of the nonresident card signs an affidavit in a form prescribed by the Division which sets forth that the holder or bearer is entitled to engage in the medical use of marijuana in his or her state or jurisdiction of residence; and

      (e) The holder or bearer of the nonresident card agrees to abide by, and does abide by, the legal limits on the possession of marijuana for medical purposes in this State, as set forth in NRS 453A.200.

      2.  For the purposes of the reciprocity described in this section:

      (a) The amount of medical marijuana that the holder or bearer of a nonresident card is entitled to possess in his or her state or jurisdiction of residence is not relevant; and

      (b) Under no circumstances, while in this State, may the holder or bearer of a nonresident card possess marijuana for medical purposes in excess of the limits set forth in NRS 453A.200.

      3.  As used in this section, “nonresident card” means a card or other identification that:

      (a) Is issued by a state or jurisdiction other than Nevada; and

      (b) Is the functional equivalent of a registry identification card, as determined by the Division.

      Sec. 19.6. 1.  A patient who holds a valid registry identification card and his or her designated primary caregiver, if any, may select one medical marijuana dispensary to serve as his or her designated medical marijuana dispensary at any one time.

      2.  A patient who designates a medical marijuana dispensary as described in subsection 1:

      (a) Shall communicate the designation to the Division within the time specified by the Division.

 


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      (b) May change his or her designation not more than once in a 30-day period.

      Sec. 19.7. Each medical marijuana dispensary and facility for the production of edible marijuana products or marijuana-infused products shall, in consultation with the Division, cooperate to ensure that all edible marijuana products and marijuana-infused products offered for sale:

      1.  Are labeled clearly and unambiguously as medical marijuana.

      2.  Are not presented in packaging that is appealing to children.

      3.  Are regulated and sold on the basis of the concentration of THC in the products and not by weight.

      4.  Are packaged and labeled in such a manner as to allow tracking by way of an inventory control system.

      Sec. 19.8. 1.  If a law enforcement agency legally and justly seizes evidence from a medical marijuana establishment on a basis that, in consideration of due process and viewed in the manner most favorable to the establishment, would lead a reasonable person to believe that a crime has been committed, the relevant provisions of NRS 179.1156 to 179.121, inclusive, apply insofar as they do not conflict with the provisions of this chapter.

      2.  As used in this section, “law enforcement agency” has the meaning ascribed to it in NRS 239C.065.

      Sec. 19.9. 1.  The Division shall establish standards for and certify one or more private and independent testing laboratories to test marijuana, edible marijuana products and marijuana-infused products that are to be sold in this State.

      2.  Such an independent testing laboratory must be able to determine accurately, with respect to marijuana, edible marijuana products and marijuana-infused products that are sold or will be sold at medical marijuana dispensaries in this State:

      (a) The concentration therein of THC and cannabidiol.

      (b) Whether the tested material is organic or non-organic.

      (c) The presence and identification of molds and fungus.

      (d) The presence and concentration of fertilizers and other nutrients.

      3.  To obtain certification by the Division on behalf of an independent testing laboratory, an applicant must:

      (a) Apply successfully as required pursuant to section 10 of this act.

      (b) Pay the fees required pursuant to section 12 of this act.

      Sec. 20.  The Division shall adopt such regulations as it determines to be necessary or advisable to carry out the provisions of sections 10 to 20, inclusive, of this act. Such regulations are in addition to any requirements set forth in statute and must, without limitation:

      1.  Prescribe the form and any additional required content of registration and renewal applications submitted pursuant to sections 10 and 13 of this act.

      2.  Set forth rules pertaining to the safe and healthful operation of medical marijuana establishments, including, without limitation:

      (a) The manner of protecting against diversion and theft without imposing an undue burden on medical marijuana establishments or compromising the confidentiality of the holders of registry identification cards.

      (b) Minimum requirements for the oversight of medical marijuana establishments.

 


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      (c) Minimum requirements for the keeping of records by medical marijuana establishments.

      (d) Provisions for the security of medical marijuana establishments, including, without limitation, requirements for the protection by a fully operational security alarm system of each medical marijuana establishment.

      (e) Procedures pursuant to which medical marijuana dispensaries must use the services of an independent testing laboratory to ensure that any marijuana, edible marijuana products and marijuana-infused products sold by the dispensaries to end users are tested for content, quality and potency in accordance with standards established by the Division.

      (f) Procedures pursuant to which a medical marijuana dispensary will be notified by the Division if a patient who holds a valid registry identification card has chosen the dispensary as his or her designated medical marijuana dispensary, as described in section 19.6 of this act.

      3.  Establish circumstances and procedures pursuant to which the maximum fees set forth in section 12 of this act may be reduced over time:

      (a) To ensure that the fees imposed pursuant to section 12 of this act are, insofar as may be practicable, revenue neutral; and

      (b) To reflect gifts and grants received by the Division pursuant to NRS 453A.720.

      4.  Set forth the amount of usable marijuana that a medical marijuana dispensary may dispense to a person who holds a valid registry identification card, or the designated primary caregiver of such a person, in any one 14-day period. Such an amount must not exceed the limits set forth in NRS 453A.200.

      5.  As far as possible while maintaining accountability, protect the identity and personal identifying information of each person who receives, facilitates or delivers services in accordance with this chapter.

      6.  In cooperation with the Board of Medical Examiners and the State Board of Osteopathic Medicine, establish a system to:

      (a) Register and track attending physicians who advise their patients that the medical use of marijuana may mitigate the symptoms or effects of the patient’s medical condition;

      (b) Insofar as is possible, track and quantify the number of times an attending physician described in paragraph (a) makes such an advisement; and

      (c) Provide for the progressive discipline of attending physicians who advise the medical use of marijuana at a rate at which the Division and Board determine and agree to be unreasonably high.

      7.  Establish different categories of medical marijuana establishment agent registration cards, including, without limitation, criteria for training and certification, for each of the different types of medical marijuana establishments at which such an agent may be employed or volunteer.

      8.  Provide for the maintenance of a log by the Division of each person who is authorized to cultivate, grow or produce marijuana pursuant to subsection 6 of NRS 453A.200. The Division shall ensure that the contents of the log are available for verification by law enforcement personnel 24 hours a day.

      9.  Address such other matters as may assist in implementing the program of dispensation contemplated by sections 10 to 20, inclusive, of this act.

 


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      Sec. 21. NRS 453A.010 is hereby amended to read as follows:

      453A.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 453A.020 to 453A.170, inclusive, and sections 3 to 9, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 21.5. NRS 453A.100 is hereby amended to read as follows:

      453A.100  [“Drug paraphernalia” has the meaning ascribed to it in NRS 453.554.] “Paraphernalia” means accessories, devices and other equipment that is necessary or useful for a person to engage in the medical use of marijuana.

      Sec. 22. NRS 453A.200 is hereby amended to read as follows:

      453A.200  1.  Except as otherwise provided in this section and NRS 453A.300, a person who holds a valid registry identification card issued to the person pursuant to NRS 453A.220 or 453A.250 is exempt from state prosecution for:

      (a) Possession, delivery or production of marijuana;

      (b) Possession or delivery of [drug] paraphernalia;

      (c) Aiding and abetting another in the possession, delivery or production of marijuana;

      (d) Aiding and abetting another in the possession or delivery of [drug] paraphernalia;

      (e) Any combination of the acts described in paragraphs (a) to (d), inclusive; and

      (f) Any other criminal offense in which the possession, delivery or production of marijuana or the possession or delivery of [drug] paraphernalia is an element.

      2.  In addition to the provisions of [subsection] subsections 1 [,] and 5, no person may be subject to state prosecution for constructive possession, conspiracy or any other criminal offense solely for being in the presence or vicinity of the medical use of marijuana in accordance with the provisions of this chapter.

      3.  The exemption from state prosecution set forth in subsection 1 applies only to the extent that a person who holds a registry identification card issued to the person pursuant to paragraph (a) of subsection 1 of NRS 453A.220 and the designated primary caregiver, if any, of such a person:

      (a) Engage in or assist in, as applicable, the medical use of marijuana in accordance with the provisions of this chapter as justified to mitigate the symptoms or effects of the person’s chronic or debilitating medical condition; and

      (b) Do not, at any one time, collectively possess, deliver or produce more than:

             (1) [One ounce] Two and one-half ounces of usable marijuana [;] in any one 14-day period;

             (2) [Three mature] Twelve marijuana plants [; and

             (3) Four immature marijuana plants.] , irrespective of whether the marijuana plants are mature or immature; and

             (3) A maximum allowable quantity of edible marijuana products and marijuana-infused products as established by regulation of the Division.

Κ The persons described in this subsection must ensure that the usable marijuana and marijuana plants described in this subsection are safeguarded in an enclosed, secure location.

 


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      4.  If the persons described in subsection 3 possess, deliver or produce marijuana in an amount which exceeds the amount described in paragraph (b) of that subsection, those persons:

      (a) Are not exempt from state prosecution for possession, delivery or production of marijuana.

      (b) May establish an affirmative defense to charges of possession, delivery or production of marijuana, or any combination of those acts, in the manner set forth in NRS 453A.310.

      5.  A person who holds a valid medical marijuana establishment registration certificate issued to the person pursuant to section 10 of this act or a valid medical marijuana establishment agent registration card issued to the person pursuant to section 13 of this act, and who confines his or her activities to those authorized by sections 10 to 20, inclusive, of this act and the regulations adopted by the Division pursuant thereto, is exempt from state prosecution for:

      (a) Possession, delivery or production of marijuana;

      (b) Possession or delivery of paraphernalia;

      (c) Aiding and abetting another in the possession, delivery or production of marijuana;

      (d) Aiding and abetting another in the possession or delivery of paraphernalia;

      (e) Any combination of the acts described in paragraphs (a) to (d), inclusive; and

      (f) Any other criminal offense in which the possession, delivery or production of marijuana or the possession or delivery of paraphernalia is an element.

      6.  Notwithstanding any other provision of law and except as otherwise provided in this subsection, after a medical marijuana dispensary opens in the county of residence of a person who holds a registry identification card or his or her designated primary caregiver, if any, such persons are not authorized to cultivate, grow or produce marijuana. The provisions of this subsection do not apply if:

      (a) The person who holds the registry identification card or his or her designated primary caregiver, if any, was cultivating, growing or producing marijuana in accordance with this chapter on or before July 1, 2013;

      (b) All the medical marijuana dispensaries in the county of residence of the person who holds the registry identification card or his or her designated primary caregiver, if any, close or are unable to supply the quantity or strain of marijuana necessary for the medical use of the person to treat his or her specific medical condition;

      (c) Because of illness or lack of transportation, the person who holds the registry identification card and his or her designated primary caregiver, if any, are unable reasonably to travel to a medical marijuana dispensary; or

      (d) No medical marijuana dispensary was operating within 25 miles of the residence of the person who holds the registry identification card at the time the person first applied for his or her registry identification card.

      7.  As used in this section, “marijuana” includes, without limitation, edible marijuana products and marijuana-infused products.

 


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      Sec. 22.3. NRS 453A.200 is hereby amended to read as follows:

      453A.200  1.  Except as otherwise provided in this section and NRS 453A.300, a person who holds a valid registry identification card issued to the person pursuant to NRS 453A.220 or 453A.250 is exempt from state prosecution for:

      (a) Possession, delivery or production of marijuana;

      (b) Possession or delivery of paraphernalia;

      (c) Aiding and abetting another in the possession, delivery or production of marijuana;

      (d) Aiding and abetting another in the possession or delivery of paraphernalia;

      (e) Any combination of the acts described in paragraphs (a) to (d), inclusive; and

      (f) Any other criminal offense in which the possession, delivery or production of marijuana or the possession or delivery of paraphernalia is an element.

      2.  In addition to the provisions of subsections 1 and 5, no person may be subject to state prosecution for constructive possession, conspiracy or any other criminal offense solely for being in the presence or vicinity of the medical use of marijuana in accordance with the provisions of this chapter.

      3.  The exemption from state prosecution set forth in subsection 1 applies only to the extent that a person who holds a registry identification card issued to the person pursuant to paragraph (a) of subsection 1 of NRS 453A.220 and the designated primary caregiver, if any, of such a person:

      (a) Engage in or assist in, as applicable, the medical use of marijuana in accordance with the provisions of this chapter as justified to mitigate the symptoms or effects of the person’s chronic or debilitating medical condition; and

      (b) Do not, at any one time, collectively possess, deliver or produce more than:

             (1) Two and one-half ounces of usable marijuana in any one 14-day period;

             (2) Twelve marijuana plants, irrespective of whether the marijuana plants are mature or immature; and

             (3) A maximum allowable quantity of edible marijuana products and marijuana-infused products as established by regulation of the Division.

Κ The persons described in this subsection must ensure that the usable marijuana and marijuana plants described in this subsection are safeguarded in an enclosed, secure location.

      4.  If the persons described in subsection 3 possess, deliver or produce marijuana in an amount which exceeds the amount described in paragraph (b) of that subsection, those persons:

      (a) Are not exempt from state prosecution for possession, delivery or production of marijuana.

      (b) May establish an affirmative defense to charges of possession, delivery or production of marijuana, or any combination of those acts, in the manner set forth in NRS 453A.310.

      5.  A person who holds a valid medical marijuana establishment registration certificate issued to the person pursuant to section 10 of this act or a valid medical marijuana establishment agent registration card issued to the person pursuant to section 13 of this act, and who confines his or her activities to those authorized by sections 10 to 20, inclusive, of this act and the regulations adopted by the Division pursuant thereto, is exempt from state prosecution for:

 


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activities to those authorized by sections 10 to 20, inclusive, of this act and the regulations adopted by the Division pursuant thereto, is exempt from state prosecution for:

      (a) Possession, delivery or production of marijuana;

      (b) Possession or delivery of paraphernalia;

      (c) Aiding and abetting another in the possession, delivery or production of marijuana;

      (d) Aiding and abetting another in the possession or delivery of paraphernalia;

      (e) Any combination of the acts described in paragraphs (a) to (d), inclusive; and

      (f) Any other criminal offense in which the possession, delivery or production of marijuana or the possession or delivery of paraphernalia is an element.

      6.  Notwithstanding any other provision of law and except as otherwise provided in this subsection, after a medical marijuana dispensary opens in the county of residence of a person who holds a registry identification card or his or her designated primary caregiver, if any, such persons are not authorized to cultivate, grow or produce marijuana. The provisions of this subsection do not apply if:

      (a) [The person who holds the registry identification card or his or her designated primary caregiver, if any, was cultivating, growing or producing marijuana in accordance with this chapter on or before July ;1, 2013;

      (b)] All the medical marijuana dispensaries in the county of residence of the person who holds the registry identification card or his or her designated primary caregiver, if any, close or are unable to supply the quantity or strain of marijuana necessary for the medical use of the person to treat his or her specific medical condition; 

      [(c)] (b) Because of illness or lack of transportation, the person who holds the registry identification card and his or her designated primary caregiver, if any, are unable reasonably to travel to a medical marijuana dispensary; or

      [(d)] (c) No medical marijuana dispensary was operating within 25 miles of the residence of the person who holds the registry identification card at the time the person first applied for his or her registry identification card.

      7.  As used in this section, “marijuana” includes, without limitation, edible marijuana products and marijuana-infused products.

      Sec. 22.35. NRS 453A.210 is hereby amended to read as follows:

      453A.210  1.  The Division shall establish and maintain a program for the issuance of registry identification cards to persons who meet the requirements of this section.

      2.  Except as otherwise provided in subsections 3 and 5 and NRS 453A.225, the Division or its designee shall issue a registry identification card to a person who is a resident of this State and who submits an application on a form prescribed by the Division accompanied by the following:

      (a) Valid, written documentation from the person’s attending physician stating that:

             (1) The person has been diagnosed with a chronic or debilitating medical condition;

             (2) The medical use of marijuana may mitigate the symptoms or effects of that condition; and

 


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             (3) The attending physician has explained the possible risks and benefits of the medical use of marijuana;

      (b) The name, address, telephone number, social security number and date of birth of the person;

      (c) Proof satisfactory to the Division that the person is a resident of this State;

      (d) The name, address and telephone number of the person’s attending physician; [and]

      (e) If the person elects to designate a primary caregiver at the time of application:

             (1) The name, address, telephone number and social security number of the designated primary caregiver; and

             (2) A written, signed statement from the person’s attending physician in which the attending physician approves of the designation of the primary caregiver [.] ; and

      (f) If the person elects to designate a medical marijuana dispensary at the time of application, the name of the medical marijuana dispensary.

      3.  The Division or its designee shall issue a registry identification card to a person who is under 18 years of age if:

      (a) The person submits the materials required pursuant to subsection 2; and

      (b) The custodial parent or legal guardian with responsibility for health care decisions for the person under 18 years of age signs a written statement setting forth that:

             (1) The attending physician of the person under 18 years of age has explained to that person and to the custodial parent or legal guardian with responsibility for health care decisions for the person under 18 years of age the possible risks and benefits of the medical use of marijuana;

             (2) The custodial parent or legal guardian with responsibility for health care decisions for the person under 18 years of age consents to the use of marijuana by the person under 18 years of age for medical purposes;

             (3) The custodial parent or legal guardian with responsibility for health care decisions for the person under 18 years of age agrees to serve as the designated primary caregiver for the person under 18 years of age; and

             (4) The custodial parent or legal guardian with responsibility for health care decisions for the person under 18 years of age agrees to control the acquisition of marijuana and the dosage and frequency of use by the person under 18 years of age.

      4.  The form prescribed by the Division to be used by a person applying for a registry identification card pursuant to this section must be a form that is in quintuplicate. Upon receipt of an application that is completed and submitted pursuant to this section, the Division shall:

      (a) Record on the application the date on which it was received;

      (b) Retain one copy of the application for the records of the Division; and

      (c) Distribute the other four copies of the application in the following manner:

             (1) One copy to the person who submitted the application;

             (2) One copy to the applicant’s designated primary caregiver, if any;

             (3) One copy to the Central Repository for Nevada Records of Criminal History; and

             (4) One copy to:

 


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                   (I) If the attending physician of the applicant is licensed to practice medicine pursuant to the provisions of chapter 630 of NRS, the Board of Medical Examiners; or

                   (II) If the attending physician of the applicant is licensed to practice osteopathic medicine pursuant to the provisions of chapter 633 of NRS, the State Board of Osteopathic Medicine.

Κ The Central Repository for Nevada Records of Criminal History shall report to the Division its findings as to the criminal history, if any, of an applicant within 15 days after receiving a copy of an application pursuant to subparagraph (3) of paragraph (c). The Board of Medical Examiners or the State Board of Osteopathic Medicine, as applicable, shall report to the Division its findings as to the licensure and standing of the applicant’s attending physician within 15 days after receiving a copy of an application pursuant to subparagraph (4) of paragraph (c).

      5.  The Division shall verify the information contained in an application submitted pursuant to this section and shall approve or deny an application within 30 days after receiving the application. The Division may contact an applicant, the applicant’s attending physician and designated primary caregiver, if any, by telephone to determine that the information provided on or accompanying the application is accurate. The Division may deny an application only on the following grounds:

      (a) The applicant failed to provide the information required pursuant to subsections 2 and 3 to:

             (1) Establish the applicant’s chronic or debilitating medical condition; or

             (2) Document the applicant’s consultation with an attending physician regarding the medical use of marijuana in connection with that condition;

      (b) The applicant failed to comply with regulations adopted by the Division, including, without limitation, the regulations adopted by the Administrator pursuant to NRS 453A.740;

      (c) The Division determines that the information provided by the applicant was falsified;

      (d) The Division determines that the attending physician of the applicant is not licensed to practice medicine or osteopathic medicine in this State or is not in good standing, as reported by the Board of Medical Examiners or the State Board of Osteopathic Medicine, as applicable;

      (e) The Division determines that the applicant, or the applicant’s designated primary caregiver, if applicable, has been convicted of knowingly or intentionally selling a controlled substance;

      (f) The Division has prohibited the applicant from obtaining or using a registry identification card pursuant to subsection 2 of NRS 453A.300;

      (g) The Division determines that the applicant, or the applicant’s designated primary caregiver, if applicable, has had a registry identification card revoked pursuant to NRS 453A.225; or

      (h) In the case of a person under 18 years of age, the custodial parent or legal guardian with responsibility for health care decisions for the person has not signed the written statement required pursuant to paragraph (b) of subsection 3.

      6.  The decision of the Division to deny an application for a registry identification card is a final decision for the purposes of judicial review. Only the person whose application has been denied or, in the case of a person under 18 years of age whose application has been denied, the person’s parent or legal guardian, has standing to contest the determination of the Division.

 


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under 18 years of age whose application has been denied, the person’s parent or legal guardian, has standing to contest the determination of the Division. A judicial review authorized pursuant to this subsection must be limited to a determination of whether the denial was arbitrary, capricious or otherwise characterized by an abuse of discretion and must be conducted in accordance with the procedures set forth in chapter 233B of NRS for reviewing a final decision of an agency.

      7.  A person whose application has been denied may not reapply for 6 months after the date of the denial, unless the Division or a court of competent jurisdiction authorizes reapplication in a shorter time.

      8.  Except as otherwise provided in this subsection, if a person has applied for a registry identification card pursuant to this section and the Division has not yet approved or denied the application, the person, and the person’s designated primary caregiver, if any, shall be deemed to hold a registry identification card upon the presentation to a law enforcement officer of the copy of the application provided to him or her pursuant to subsection 4. [A person may not be deemed to hold a registry identification card for a period of more than 30 days after the date on which the Division received the application.]

      9.  As used in this section, “resident” has the meaning ascribed to it in NRS 483.141.

      Sec. 22.4. NRS 453A.220 is hereby amended to read as follows:

      453A.220  1.  If the Division approves an application pursuant to subsection 5 of NRS 453A.210, the Division or its designee shall, as soon as practicable after the Division approves the application:

      (a) Issue a serially numbered registry identification card to the applicant; and

      (b) If the applicant has designated a primary caregiver, issue a serially numbered registry identification card to the designated primary caregiver.

      2.  A registry identification card issued pursuant to paragraph (a) of subsection 1 must set forth:

      (a) The name, address, photograph and date of birth of the applicant;

      (b) The date of issuance and date of expiration of the registry identification card;

      (c) The name and address of the applicant’s designated primary caregiver, if any; [and]

      (d) The name of the applicant’s designated medical marijuana dispensary, if any;

      (e) Whether the applicant is authorized to cultivate, grow or produce marijuana pursuant to subsection 6 of NRS 453A.200; and

      (f) Any other information prescribed by regulation of the Division.

      3.  A registry identification card issued pursuant to paragraph (b) of subsection 1 must set forth:

      (a) The name, address and photograph of the designated primary caregiver;

      (b) The date of issuance and date of expiration of the registry identification card;

      (c) The name and address of the applicant for whom the person is the designated primary caregiver; [and]

      (d) The name of the designated primary caregiver’s designated medical marijuana dispensary, if any;

 


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      (e) Whether the designated primary caregiver is authorized to cultivate, grow or produce marijuana pursuant to subsection 6 of NRS 453A.200; and

      (f) Any other information prescribed by regulation of the Division.

      4.  Except as otherwise provided in NRS 453A.225, subsection 3 of NRS 453A.230 and subsection 2 of NRS 453A.300, a registry identification card issued pursuant to this section is valid for a period of 1 year and may be renewed in accordance with regulations adopted by the Division.

      Sec. 22.45. NRS 453A.230 is hereby amended to read as follows:

      453A.230  1.  A person to whom the Division or its designee has issued a registry identification card pursuant to paragraph (a) of subsection 1 of NRS 453A.220 shall, in accordance with regulations adopted by the Division:

      (a) Notify the Division of any change in the person’s name, address, telephone number, designated medical marijuana dispensary, attending physician or designated primary caregiver, if any; and

      (b) Submit annually to the Division:

             (1) Updated written documentation from the person’s attending physician in which the attending physician sets forth that:

                   (I) The person continues to suffer from a chronic or debilitating medical condition;

                   (II) The medical use of marijuana may mitigate the symptoms or effects of that condition; and

                   (III) The attending physician has explained to the person the possible risks and benefits of the medical use of marijuana; and

             (2) If the person elects to designate a primary caregiver for the subsequent year and the primary caregiver so designated was not the person’s designated primary caregiver during the previous year:

                   (I) The name, address, telephone number and social security number of the designated primary caregiver; and

                   (II) A written, signed statement from the person’s attending physician in which the attending physician approves of the designation of the primary caregiver.

      2.  A person to whom the Division or its designee has issued a registry identification card pursuant to paragraph (b) of subsection 1 of NRS 453A.220 or pursuant to NRS 453A.250 shall, in accordance with regulations adopted by the Division, notify the Division of any change in the person’s name, address, telephone number , designated medical marijuana dispensary or the identity of the person for whom he or she acts as designated primary caregiver.

      3.  If a person fails to comply with the provisions of subsection 1 or 2, the registry identification card issued to the person shall be deemed expired. If the registry identification card of a person to whom the Division or its designee issued the card pursuant to paragraph (a) of subsection 1 of NRS 453A.220 is deemed expired pursuant to this subsection, a registry identification card issued to the person’s designated primary caregiver, if any, shall also be deemed expired. Upon the deemed expiration of a registry identification card pursuant to this subsection:

      (a) The Division shall send, by certified mail, return receipt requested, notice to the person whose registry identification card has been deemed expired, advising the person of the requirements of paragraph (b); and

 


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      (b) The person shall return his or her registry identification card to the Division within 7 days after receiving the notice sent pursuant to paragraph (a).

      Sec. 22.5. NRS 453A.300 is hereby amended to read as follows:

      453A.300  1.  A person who holds a registry identification card issued to him or her pursuant to NRS 453A.220 or 453A.250 is not exempt from state prosecution for, nor may the person establish an affirmative defense to charges arising from, any of the following acts:

      (a) Driving, operating or being in actual physical control of a vehicle or a vessel under power or sail while under the influence of marijuana.

      (b) Engaging in any other conduct prohibited by NRS 484C.110, 484C.120, 484C.130, 484C.430, subsection 2 of NRS 488.400, NRS 488.410, 488.420, 488.425 or 493.130.

      (c) Possessing a firearm in violation of paragraph (b) of subsection 1 of NRS 202.257.

      (d) Possessing marijuana in violation of NRS 453.336 or possessing [drug] paraphernalia in violation of NRS 453.560 or 453.566, if the possession of the marijuana or [drug] paraphernalia is discovered because the person engaged or assisted in the medical use of marijuana in:

             (1) Any public place or in any place open to the public or exposed to public view; or

             (2) Any local detention facility, county jail, state prison, reformatory or other correctional facility, including, without limitation, any facility for the detention of juvenile offenders.

      (e) Delivering marijuana to another person who he or she knows does not lawfully hold a registry identification card issued by the Division or its designee pursuant to NRS 453A.220 or 453A.250.

      (f) Delivering marijuana for consideration to any person, regardless of whether the recipient lawfully holds a registry identification card issued by the Division or its designee pursuant to NRS 453A.220 or 453A.250.

      2.  Except as otherwise provided in NRS 453A.225 and in addition to any other penalty provided by law, if the Division determines that a person has willfully violated a provision of this chapter or any regulation adopted by the Division to carry out the provisions of this chapter, the Division may, at its own discretion, prohibit the person from obtaining or using a registry identification card for a period of up to 6 months.

      Sec. 23. NRS 453A.400 is hereby amended to read as follows:

      453A.400  1.  The fact that a person possesses a registry identification card issued to the person by the Division or its designee pursuant to NRS 453A.220 or 453A.250, a medical marijuana establishment registration certificate issued to the person by the Division or its designee pursuant to section 10 of this act or a medical marijuana establishment agent registration card issued to the person by the Division or its designee pursuant to section 13 of this act does not, alone:

      (a) Constitute probable cause to search the person or the person’s property; or

      (b) Subject the person or the person’s property to inspection by any governmental agency.

      2.  Except as otherwise provided in this subsection, if officers of a state or local law enforcement agency seize marijuana, [drug] paraphernalia or other related property from a person engaged in, facilitating or assisting in the medical use of marijuana:

 


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κ2013 Statutes of Nevada, Page 3725 (CHAPTER 547, SB 374)κ

 

      (a) The law enforcement agency shall ensure that the marijuana, [drug] paraphernalia or other related property is not destroyed while in the possession of the law enforcement agency.

      (b) Any property interest of the person from whom the marijuana, [drug] paraphernalia or other related property was seized must not be forfeited pursuant to any provision of law providing for the forfeiture of property, except as part of a sentence imposed after conviction of a criminal offense.

      (c) Upon a determination by the district attorney of the county in which the marijuana, [drug] paraphernalia or other related property was seized, or the district attorney’s designee, that the person from whom the marijuana, [drug] paraphernalia or other related property was seized is engaging in or assisting in the medical use of marijuana in accordance with the provisions of this chapter, the law enforcement agency shall immediately return to that person any usable marijuana, marijuana plants, [drug] paraphernalia or other related property that was seized.

Κ The provisions of this subsection do not require a law enforcement agency to care for live marijuana plants.

      3.  For the purposes of paragraph (c) of subsection 2, the determination of a district attorney or the district attorney’s designee that a person is engaging in or assisting in the medical use of marijuana in accordance with the provisions of this chapter shall be deemed to be evidenced by:

      (a) A decision not to prosecute;

      (b) The dismissal of charges; or

      (c) Acquittal.

      Sec. 24. NRS 453A.740 is hereby amended to read as follows:

      453A.740  The Administrator of the Division shall adopt such regulations as the Administrator determines are necessary to carry out the provisions of this chapter. The regulations must set forth, without limitation:

      1.  Procedures pursuant to which the Division will, in cooperation with the Department of Motor Vehicles, cause a registry identification card to be prepared and issued to a qualified person as a type of identification card described in NRS 483.810 to 483.890, inclusive. The procedures described in this subsection must provide that the Division will:

      (a) Issue a registry identification card to a qualified person after the card has been prepared by the Department of Motor Vehicles; or

      (b) Designate the Department of Motor Vehicles to issue a registry identification card to a person if:

             (1) The person presents to the Department of Motor Vehicles valid documentation issued by the Division indicating that the Division has approved the issuance of a registry identification card to the person; and

             (2) The Department of Motor Vehicles, before issuing the registry identification card, confirms by telephone or other reliable means that the Division has approved the issuance of a registry identification card to the person.

      2.  [Criteria for determining whether a marijuana plant is a mature marijuana plant or an immature marijuana plant.

      3.]  Fees for:

      (a) Providing to an applicant an application for a registry identification card, which fee must not exceed [$50;] $25; and

      (b) Processing and issuing a registry identification card, which fee must not exceed [$150.] $75.

 


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κ2013 Statutes of Nevada, Page 3726 (CHAPTER 547, SB 374)κ

 

      Sec. 24.3. NRS 453A.800 is hereby amended to read as follows:

      453A.800  The provisions of this chapter do not:

      1.  Require an insurer, organization for managed care or any person or entity who provides coverage for a medical or health care service to pay for or reimburse a person for costs associated with the medical use of marijuana.

      2.  Require any employer to [accommodate] allow the medical use of marijuana in the workplace.

      3.  Require an employer to modify the job or working conditions of a person who engages in the medical use of marijuana that are based upon the reasonable business purposes of the employer but the employer must attempt to make reasonable accommodations for the medical needs of an employee who engages in the medical use of marijuana if the employee holds a valid registry identification card, provided that such reasonable accommodation would not:

      (a) Pose a threat of harm or danger to persons or property or impose an undue hardship on the employer; or

      (b) Prohibit the employee from fulfilling any and all of his or her job responsibilities.

      Sec. 24.4. Chapter 372A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  An excise tax is hereby imposed on each wholesale sale in this State of marijuana by a cultivation facility to another medical marijuana establishment at the rate of 2 percent of the sales price of the marijuana. The excise tax imposed pursuant to this subsection is the obligation of the cultivation facility.

      2.  An excise tax is hereby imposed on each wholesale sale in this State of edible marijuana products or marijuana-infused products by a facility for the production of edible marijuana products or marijuana-infused products to another medical marijuana establishment at the rate of 2 percent of the sales price of those products. The excise tax imposed pursuant to this subsection is the obligation of the facility for the production of edible marijuana products or marijuana-infused products which sells the edible marijuana products or marijuana-infused products to the other medical marijuana establishment.

      3.  An excise tax is hereby imposed on each retail sale in this State of marijuana, edible marijuana products or marijuana-infused products by a medical marijuana dispensary at the rate of 2 percent of the sales price of the marijuana, edible marijuana products or marijuana-infused products. The excise tax imposed pursuant to this subsection:

      (a) Is the obligation of the medical marijuana dispensary.

      (b) Is separate from and in addition to any general state and local sales and use taxes that apply to retail sales of tangible personal property.

      (c) Must be considered part of the total retail price to which general state and local sales and use taxes apply.

      4.  The revenues collected from the excise taxes imposed pursuant to subsections 1, 2 and 3 must be distributed as follows:

      (a) Seventy-five percent must be paid over as collected to the State Treasurer to be deposited to the credit of the State Distributive School Account in the State General Fund.

      (b) Twenty-five percent must be expended to pay the costs of the Health Division of the Department of Health and Human Services in carrying out the provisions of sections 10 to 20, inclusive, of this act.

 


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      5.  The Department shall review regularly the rates of the excise taxes imposed pursuant to subsections 1, 2 and 3 and make recommendations to the Legislature, as appropriate, regarding adjustments that the Department determines would benefit the residents of this State.

      6.  As used in this section:

      (a) “Cultivation facility” has the meaning ascribed to it in section 3.5 of this act.

      (b) “Edible marijuana products” has the meaning ascribed to it in section 5.3 of this act.

      (c) “Facility for the production of edible marijuana products or marijuana-infused products” has the meaning ascribed to it in section 7.3 of this act.

      (d) “Marijuana-infused products” has the meaning ascribed to it in section 7.9 of this act.

      (e) “Medical marijuana dispensary” has the meaning ascribed to it in section 8 of this act.

      (f) “Medical marijuana establishment” has the meaning ascribed to it in section 8.3 of this act.

      Sec. 24.5. NRS 372A.060 is hereby amended to read as follows:

      372A.060  1.  This chapter does not apply to [any] :

      (a) Any person who is registered or exempt from registration pursuant to NRS 453.226 or any other person who is lawfully in possession of a controlled substance [.] ; or

      (b) Except as otherwise provided in section 24.4 of this act, any person who acquires, possesses, cultivates, manufactures, delivers, transfers, transports, supplies, sells or dispenses marijuana for the medical use of marijuana as authorized pursuant to chapter 453A of NRS.

      2.  Compliance with this chapter does not immunize a person from criminal prosecution for the violation of any other provision of law.

      Sec. 24.7. NRS 372A.070 is hereby amended to read as follows:

      372A.070  1.  A person shall not sell, offer to sell or possess with the intent to sell a controlled substance unless he or she first:

      (a) Registers with the Department as a dealer in controlled substances and pays an annual fee of $250; and

      (b) Pays a tax on:

             (1) [Each gram of marijuana, or portion thereof, of $100;

             (2)] Each gram of [any other] a controlled substance, or portion thereof, of $1,000; and

             [(3)] (2) Each 50 dosage units of a controlled substance that is not sold by weight, or portion thereof, of $2,000.

      2.  For the purpose of calculating the tax imposed by [subparagraphs] subparagraph (1) [and (2)] of paragraph (b) of subsection 1, the controlled substance must be measured by the weight of the substance in the dealer’s possession, including the weight of any material, compound, mixture or preparation that is added to the controlled substance.

      3.  The Department shall not require a registered dealer to give his or her name, address, social security number or other identifying information on any return submitted with the tax.

      4.  Any person who violates subsection 1 is subject to a civil penalty of 100 percent of the tax in addition to the tax imposed by subsection 1. Any civil penalty imposed pursuant to this subsection must be collected as part of the tax.

 


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κ2013 Statutes of Nevada, Page 3728 (CHAPTER 547, SB 374)κ

 

      5.  The district attorney of any county in which a dealer resides may institute and conduct the prosecution of any action for violation of subsection 1.

      6.  Property forfeited or subject to forfeiture pursuant to NRS 453.301 must not be used to satisfy a fee, tax or penalty imposed by this section.

      7.  As used in this section:

      (a) “Controlled substance” does not include marijuana, edible marijuana products or marijuana-infused products.

      (b) “Edible marijuana products” has the meaning ascribed to it in section 5.3 of this act.

      (c) “Marijuana-infused products” has the meaning ascribed to it in section 7.9 of this act.

      Sec. 24.9. Section 19.5 of this act is hereby amended to read as follows:

       Sec. 19.5  1.  The State of Nevada and the medical marijuana dispensaries in this State which hold valid medical marijuana establishment registration certificates will recognize a nonresident card only under the following circumstances:

       (a) The state or jurisdiction from which the holder or bearer obtained the nonresident card grants an exemption from criminal prosecution for the medical use of marijuana;

       (b) The state or jurisdiction from which the holder or bearer obtained the nonresident card requires, as a prerequisite to the issuance of such a card, that a physician advise the person that the medical use of marijuana may mitigate the symptoms or effects of the person’s medical condition;

       (c) The nonresident card has an expiration date and has not yet expired;

       (d) The [holder or bearer of the nonresident card signs an affidavit in a form prescribed by the Division which sets forth that the holder or bearer is entitled to engage in the medical use of marijuana in his or her state or jurisdiction of residence; and

       (e)] state or jurisdiction from which the holder or bearer obtained the nonresident card maintains a database which preserves such information as may be necessary to verify the authenticity or validity of the nonresident card;

       (e) The state or jurisdiction from which the holder or bearer obtained the nonresident card allows the Division and medical marijuana dispensaries in this State to access the database described in paragraph (d);

       (f) The Division determines that the database described in paragraph (d) is able to provide to medical marijuana dispensaries in this State information that is sufficiently accurate, current and specific as to allow those dispensaries to verify that a person who holds or bears a nonresident card is entitled lawfully to do so; and

       (g) The holder or bearer of the nonresident card agrees to abide by, and does abide by, the legal limits on the possession of marijuana for medical purposes in this State, as set forth in NRS 453A.200.

       2.  For the purposes of the reciprocity described in this section:

       (a) The amount of medical marijuana that the holder or bearer of a nonresident card is entitled to possess in his or her state or jurisdiction of residence is not relevant; and

 


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       (b) Under no circumstances, while in this State, may the holder or bearer of a nonresident card possess marijuana for medical purposes in excess of the limits set forth in NRS 453A.200.

       3.  As used in this section, “nonresident card” means a card or other identification that:

       (a) Is issued by a state or jurisdiction other than Nevada; and

       (b) Is the functional equivalent of a registry identification card, as determined by the Division.

      Sec. 25.  On or before April 1, 2014, the Health Division of the Department of Health and Human Services shall adopt the regulations required pursuant to section 20 of this act.

      Sec. 25.5.  1.  If the Director of the Department of Health and Human Services determines that the revenues from the fees collected pursuant to section 12 of this act are not sufficient in Fiscal Year 2013-2014 or Fiscal Year 2014-2015 to pay authorized expenditures necessary to carry out sections 10 to 20, inclusive of this act, the Director of the Department of Health and Human Services may request from the Director of the Department of Administration a temporary advance from the State General Fund for the payment of authorized expenditures to carry out sections 10 to 20, inclusive of this act.

      2.  The Director of the Department of Administration shall provide written notification to the State Controller and to the Senate and Assembly Fiscal Analysts of the Fiscal Analysis Division of the Legislative Counsel Bureau if the Director of the Department of Administration approves a request made pursuant to subsection 1. The State Controller shall draw a warrant upon receipt of the approval by the Director of the Department of Administration.

      3.  Any money which is temporarily advanced from the State General Fund to the Director of the Department of Health and Human Services pursuant to this section must be repaid on or before the last business day in August immediately following the end of Fiscal Year 2013-2014 and Fiscal Year 2014-2015, respectively.

      Sec. 26.  1.  This section and section 25.5 of this act become effective upon passage and approval.

      2.  Sections 1 to 22, inclusive, 22.35 to 24.7, inclusive, and 25 of this act become effective upon passage and approval for the purpose of adopting regulations and carrying out other preparatory administrative acts, and on April 1, 2014, for all other purposes.

      3.  Sections 22.3 and 24.9 of this act become effective on April 1, 2016.

      4.  Sections 14 and 15 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

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

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

Κ are repealed by the Congress of the United States.

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κ2013 Statutes of Nevada, Page 3730κ

 

CHAPTER 548, AB 181

Assembly Bill No. 181–Assemblymen Bobzien, Kirkpatrick, Eisen, Elliot Anderson, Frierson; Aizley, Benitez-Thompson, Carlton, Cohen, Daly, Dondero Loop, Healey, Ohrenschall, Pierce, Spiegel and Swank

 

Joint Sponsors: Senators Denis, Atkinson, Jones and Smith

 

CHAPTER 548

 

[Approved: June 13, 2013]

 

AN ACT relating to employment; prohibiting employers from conditioning employment on a consumer credit report or other credit information; providing certain exceptions; prohibiting employers from conditioning employment on access to an employee’s social media account; providing civil remedies and administrative penalties; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law establishes various unlawful employment practices. (Chapter 613 of NRS)

      Section 1.6 of this bill prohibits an employer from conditioning the employment of an employee or prospective employee on his or her consumer credit report or other credit information. Section 1.6 also prohibits an employer from taking certain employment actions based on the refusal of an employee or prospective employee to submit a credit report or other credit information or on the results of such a report or information. Section 1.6 further prohibits an employer from taking certain employment actions where an employee or prospective employee files a complaint, testifies in any legal proceeding or exercises his or her rights with respect to any violation committed by the employer. Section 1.7 of this bill provides certain exceptions to the preceding prohibitions, including, without limitation, an exception for circumstances in which the information contained in the consumer credit report or other credit information is reasonably related to the position of employment. Section 1.8 of this bill establishes the civil remedies available to a person affected by a violation committed by an employer, including employment of a prospective employee, reinstatement or promotion of an employee, payment of lost wages and benefits and the award of reasonable costs and attorney’s fees. Section 1.9 of this bill authorizes the Labor Commissioner to impose an administrative penalty against an employer for each violation and to bring a civil action against the employer.

      Section 2 of this bill prohibits an employer from conditioning the employment of an employee or prospective employee on his or her disclosure of the user name, password or any other information that provides access to the employee’s or prospective employee’s personal social media account. Section 2 also prohibits an employer from taking certain employment actions based on the refusal of an employee or prospective employee to disclose such information. Section 2 further provides, however, that it is not unlawful for an employer to require an employee to disclose his or her user name, password or any other information to an account or a service, other than a personal social media account, for the purpose of accessing the employer’s own internal computer or information system.

 


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κ2013 Statutes of Nevada, Page 3731 (CHAPTER 548, AB 181)κ

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 613 of NRS is hereby amended by adding thereto the provisions set forth as sections 1.1 to 2, inclusive, of this act.

      Sec. 1.1. As used in sections 1.1 to 1.9, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 1.2 to 1.5, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 1.2. “Consumer credit report” means any written, oral or other communication of information by a consumer reporting agency bearing on the credit worthiness, credit standing or credit capacity of a person.

      Sec. 1.3. “Consumer reporting agency” has the meaning ascribed to it in NRS 686A.640.

      Sec. 1.4. “Credit information” means any information that is related to credit and derived from a consumer credit report or found on a consumer credit report. The term does not include information that is not related to credit, regardless of whether it is contained in a consumer credit report.

      Sec. 1.5. “Employer” has the meaning ascribed to it in subsection 1 of NRS 613.440.

      Sec. 1.6. Except as otherwise provided in section 1.7 of this act, it is unlawful for any employer in this State to:

      1.  Directly or indirectly, require, request, suggest or cause any employee or prospective employee to submit a consumer credit report or other credit information as a condition of employment;

      2.  Use, accept, refer to or inquire concerning a consumer credit report or other credit information;

      3.  Discharge, discipline, discriminate against in any manner or deny employment or promotion to, or threaten to take any such action against any employee or prospective employee:

      (a) Who refuses, declines or fails to submit a consumer credit report or other credit information; or

      (b) On the basis of the results of a consumer credit report or other credit information; or

      4.  Discharge, discipline, discriminate against in any manner or deny employment or promotion to, or threaten to take any such action against, any employee or prospective employee who has:

      (a) Filed any complaint or instituted or caused to be instituted any legal proceeding pursuant to sections 1.1 to 1.9, inclusive, of this act;

      (b) Testified or may testify in any legal proceeding instituted pursuant to sections 1.1 to 1.9, inclusive, of this act; or

      (c) Exercised his or her rights, or has exercised on behalf of another person the rights afforded to him or her pursuant to sections 1.1 to 1.9, inclusive, of this act.

      Sec. 1.7. An employer may request or consider a consumer credit report or other credit information for the purpose of evaluating an employee or prospective employee for employment, promotion, reassignment or retention as an employee if:

 


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κ2013 Statutes of Nevada, Page 3732 (CHAPTER 548, AB 181)κ

 

      1.  The employer is required or authorized, pursuant to state or federal law, to use a consumer credit report or other credit information for that purpose;

      2.  The employer reasonably believes that the employee or prospective employee has engaged in specific activity which may constitute a violation of state or federal law; or

      3.  The information contained in the consumer credit report or other credit information is reasonably related to the position for which the employee or prospective employee is being evaluated for employment, promotion, reassignment or retention as an employee. The information in the consumer credit report or other credit information shall be deemed reasonably related to such an evaluation if the duties of the position involve:

      (a) The care, custody and handling of, or responsibility for, money, financial accounts, corporate credit or debit cards, or other assets;

      (b) Access to trade secrets or other proprietary or confidential information;

      (c) Managerial or supervisory responsibility;

      (d) The direct exercise of law enforcement authority as an employee of a state or local law enforcement agency;

      (e) The care, custody and handling of, or responsibility for, the personal information of another person;

      (f) Access to the personal financial information of another person;

      (g) Employment with a financial institution that is chartered under state or federal law, including a subsidiary or affiliate of such a financial institution; or

      (h) Employment with a licensed gaming establishment, as defined in NRS 463.0169.

      Sec. 1.8. 1.  An employer who violates the provisions of sections 1.1 to 1.9, inclusive, of this act is liable to the employee or prospective employee affected by the violation. The employer is liable for any legal or equitable relief as may be appropriate, including employment of a prospective employee, reinstatement or promotion of an employee and the payment of lost wages and benefits.

      2.  An action to recover the liability pursuant to subsection 1 may be maintained against the employer by an employee or prospective employee:

      (a) For or on behalf of the employee or prospective employee; and

      (b) On behalf of other employees or prospective employees similarly situated.

Κ An action must not be commenced pursuant to this section more than 3 years after the date of the alleged violation.

      3.  In any action brought pursuant to this section, the court, in its discretion, may allow the prevailing party reasonable costs, including attorney’s fees.

      Sec. 1.9. 1.  If any person violates sections 1.1 to 1.9, inclusive, of this act, the Labor Commissioner may impose against the person an administrative penalty of not more than $9,000 for each such violation.

      2.  In determining the amount of any administrative penalty to be imposed against the person, the Labor Commissioner shall consider the previous record of the person in terms of compliance with sections 1.1 to 1.9, inclusive, of this act and the severity of the violation. Any administrative penalty imposed against the person is in addition to any other remedy or penalty provided pursuant to this act.

 


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κ2013 Statutes of Nevada, Page 3733 (CHAPTER 548, AB 181)κ

 

administrative penalty imposed against the person is in addition to any other remedy or penalty provided pursuant to this act.

      3.  The Labor Commissioner may bring a civil action pursuant to this section to restrain violations of sections 1.1 to 1.9, inclusive, of this act. A court of competent jurisdiction may issue, without bond, a temporary or permanent restraining order or injunction to require compliance with sections 1.1 to 1.9, inclusive, of this act, including any legal or equitable relief incident thereto as may be appropriate, such as employment of a prospective employee, reinstatement or promotion of an employee, and the payment of lost wages and benefits.

      Sec. 2. 1.  It is unlawful for any employer in this State to:

      (a) Directly or indirectly, require, request, suggest or cause any employee or prospective employee to disclose the user name, password or any other information that provides access to his or her personal social media account.

      (b) Discharge, discipline, discriminate against in any manner or deny employment or promotion to, or threaten to take any such action against any employee or prospective employee who refuses, declines or fails to disclose the user name, password or any other information that provides access to his or her personal social media account.

      2.  It is not unlawful for an employer in this State to require an employee to disclose the user name, password or any other information to an account or a service, other than a personal social media account, for the purpose of accessing the employer’s own internal computer or information system.

      3.  Nothing in this section shall be construed to prevent an employer from complying with any state or federal law or regulation or with any rule of a self-regulatory organization, as defined in NRS 90.300.

      4.  As used in this section, “social media account” means any electronic service or account or electronic content, including, without limitation, videos, photographs, blogs, video blogs, podcasts, instant and text messages, electronic mail programs or services, online services or Internet website profiles.

      Secs. 3-5. (Deleted by amendment.)

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κ2013 Statutes of Nevada, Page 3734κ

 

CHAPTER 549, AB 506

Assembly Bill No. 506–Committee on Taxation

 

CHAPTER 549

 

[Approved: June 13, 2013]

 

AN ACT relating to taxation; revising provisions governing the application of sales and use taxes to food, meals or nonalcoholic drinks provided on a complimentary basis to certain persons; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law generally exempts food for human consumption from sales and use taxes in this State. However, existing law excludes from this exemption prepared food intended for immediate consumption. (Nev. Const. Art. 10, § 3[A]; NRS 372.284, 374.289)

      The Nevada Supreme Court has determined that under the food exemption, a business entity is exempt from paying use taxes on prepared food intended for immediate consumption that the business entity provides to its employees and patrons free of charge. However, the Court has also determined that such complimentary meals may be subject to sales taxes when consideration is properly demonstrated. (Sparks Nugget, Inc. v. State ex rel. Department of Taxation, 124 Nev. 159 (2008))

      This bill provides that consideration is not received for the complimentary portion of any food, meals or nonalcoholic drinks provided on a complimentary basis, in whole or in part, to the employees, patrons or guests of a retailer and, thus, the sales tax would not apply to the complimentary portion of such food, meals or nonalcoholic drinks. This bill further provides that the complimentary portion of any food, meals or nonalcoholic drinks provided on a complimentary basis, in whole or in part, to the employees, patrons or guests of a retailer does not lose its status as food for human consumption and, thus, is exempt from the use tax. Section 8 of this bill provides that the provisions of this bill become effective upon passage and approval.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 360B.480 is hereby amended to read as follows:

      360B.480  1.  “Sales price” means the total amount of consideration, including cash, credit, property and services, for which personal property is sold, leased or rented, valued in money, whether received in money or otherwise, and without any deduction for:

      (a) The seller’s cost of the property sold;

      (b) The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;

      (c) Any charges by the seller for any services necessary to complete the sale, including any delivery charges which are not stated separately pursuant to subsection 1 of NRS 360B.290 and excluding any installation charges which are stated separately pursuant to subsection 2 of NRS 360B.290; and

      (d) Except as otherwise provided in subsection 2, any credit for any trade-in.

      2.  The term does not include:

 


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κ2013 Statutes of Nevada, Page 3735 (CHAPTER 549, AB 506)κ

 

      (a) Any delivery charges which are stated separately pursuant to subsection 1 of NRS 360B.290;

      (b) Any installation charges which are stated separately pursuant to subsection 2 of NRS 360B.290;

      (c) Any credit for any trade-in which is:

             (1) Specifically exempted from the sales price pursuant to chapter 372 or 374 of NRS; and

             (2) Stated separately pursuant to subsection 2 of NRS 360B.290;

      (d) Any discounts, including those in the form of cash, term or coupons that are not reimbursed by a third party, which are allowed by a seller and taken by the purchaser on a sale;

      (e) Any interest, financing and carrying charges from credit extended on the sale of personal property, if stated separately pursuant to subsection 2 of NRS 360B.290; [and]

      (f) Any taxes legally imposed directly on the consumer which are stated separately pursuant to subsection 2 of NRS 360B.290 [.] ; and

      (g) The complimentary portion of any food, meals or nonalcoholic drinks provided on a complimentary basis, in whole or in part, to the employees, patrons or guests of a retailer.

      3.  The term includes consideration received by a seller from a third party if:

      (a) The seller actually receives consideration from a person other than the purchaser and the consideration is directly related to a price reduction or discount on the sale;

      (b) The seller has an obligation to pass the price reduction or discount through to the purchaser;

      (c) The amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and

      (d) Any of the following criteria is satisfied:

             (1) The purchaser presents a coupon, certificate or other documentation to the seller to claim a price reduction or discount, and the coupon, certificate or other documentation is authorized, distributed or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate or other documentation is presented.

             (2) The purchaser identifies himself or herself to the seller as a member of a group or organization entitled to a price reduction or discount. For the purposes of this subparagraph, a preferred customer card that is available to any patron does not constitute membership in such a group.

             (3) The price reduction or discount is identified as a third-party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate or other documentation presented by the purchaser.

      Sec. 2. Chapter 372 of NRS is hereby amended by adding thereto a new section to read as follows:

      In administering the provisions of this chapter, the Department shall consider the intent of the Legislature as hereby expressed that:

      1. The complimentary portion of any food, meals or nonalcoholic drinks provided on a complimentary basis, in whole or in part, to the employees, patrons or guests of a retailer is not being furnished, prepared or served for consideration within the meaning of paragraph (c) of subsection 3 of NRS 372.060; and

 


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      2.  For the purposes of the tax on the use or other consumption of tangible personal property, the complimentary portion of any such food, meals or nonalcoholic drinks does not lose its tax-exempt status as food for human consumption as the result of being provided on a complimentary basis, in whole or in part, to the employees, patrons or guests of the retailer.

      Sec. 3. Chapter 374 of NRS is hereby amended by adding thereto a new section to read as follows:

      For the purposes of the tax on the use or other consumption of tangible personal property, the complimentary portion of any food, meals or nonalcoholic drinks provided on a complimentary basis, in whole or in part, to the employees, patrons or guests of the retailer does not lose its tax-exempt status as food for human consumption as the result of being so provided.

      Sec. 4. NRS 374.065 is hereby amended to read as follows:

      374.065  1.  “Sale” means and includes any transfer of title or possession, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration.

      2.  “Transfer of possession,” “lease,” or “rental” includes only transactions found by the Department to be in lieu of a transfer of title, exchange or barter.

      3.  “Sale” includes:

      (a) The producing, fabricating, processing, printing or imprinting of tangible personal property for a consideration for consumers who furnish, either directly or indirectly, the materials used in the producing, fabricating, processing, printing or imprinting.

      (b) The furnishing and distributing of tangible personal property for a consideration by social clubs and fraternal organizations to their members or others.

      (c) The furnishing, preparing, or serving for a consideration of food, meals or drinks [.] , but does not include the complimentary portion of any food, meals or nonalcoholic drinks provided on a complimentary basis, in whole or in part, to the employees, patrons or guests of a retailer.

      (d) A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price.

      (e) A transfer for a consideration of the title or possession of tangible personal property which has been produced, fabricated or printed to the special order of the customer, or of any publication.

      Sec. 5. NRS 374.635 is hereby amended to read as follows:

      374.635  1.  If the Department determines that any amount, penalty or interest has been paid more than once or has been erroneously or illegally collected or computed, the Department shall set forth that fact in the records of the Department and shall certify to the board of county commissioners the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid. If approved by the board of county commissioners, the excess amount collected or paid must, after being credited against any amount then due from the person in accordance with NRS 360.236, be refunded to the person or his or her successors, administrators or executors.

 


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      2.  Any overpayment of the use tax by a purchaser to a retailer who is required to collect the tax and who gives the purchaser a receipt therefor pursuant to NRS 374.190 to 374.260, inclusive, [and 374.727] must be credited or refunded by the county to the purchaser, subject to the requirements of NRS 360.236.

      Sec. 6. NRS 374.645 is hereby amended to read as follows:

      374.645  No credit or refund of any amount paid pursuant to NRS 374.190 to 374.260, inclusive, [and 374.727] may be allowed on the ground that the storage, use or other consumption of the property is exempted pursuant to NRS 374.350, unless the person who paid the amount reimburses his or her vendor for the amount of the sales tax imposed upon his or her vendor with respect to the sale of the property and paid by the vendor to the county.

      Sec. 7. NRS 372.727 and 374.727 are hereby repealed.

      Sec. 8.  This act becomes effective upon passage and approval and applies to food, meals and non-alcoholic drinks provided on a complimentary basis on and after the effective date of this act.

________

CHAPTER 550, AB 509

Assembly Bill No. 509–Committee on Legislative Operations and Elections

 

CHAPTER 550

 

[Approved: June 13, 2013]

 

AN ACT relating to legislative affairs; revising certain provisions to account for the new constitutional power allowing members of the Legislature to convene a special session; revising certain provisions relating to legislative committees, investigations, hearings and subpoenas; revising certain provisions relating to punishment for acts of contempt committed before legislative bodies; providing penalties; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Under previous law, only the Governor was granted express power under the Nevada Constitution to convene a special session of the Legislature. (Nev. Const. Art. 5, § 9) In 2012, the voters approved a constitutional amendment that granted the members of the Legislature express power to convene a special session. To exercise that power, the members of the Legislature must transmit to the Secretary of State one or more substantially similar petitions signed, in the aggregate, by two-thirds of the members elected to each House of the Legislature. (Nev. Const. Art. 4, § 2A) This bill amends existing law to account for this newly authorized legislative power to convene a special session. (NRS 218A.090, 218D.800, 218H.930, 223.210, 239C.260, 294A.300, 294A.310)

      Under existing law, the Legislative Counsel is required to keep the organizational structure of the Nevada Revised Statutes current, and the Legislative Counsel may make recommendations to the Legislature regarding the clarification of statutory provisions, the elimination of redundant or repetitive statutory provisions and any other matters of statutory revision as the Legislative Counsel deems necessary. (NRS 220.080, 220.120) This bill revises, clarifies and eliminates certain provisions relating to the Legislative Department of the State Government.

 


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      Under existing law, the Houses of the Legislature, legislative committees and their members and staff are granted certain investigative powers, such as the power to administer oaths, depose witnesses and issue legislative subpoenas to compel the attendance and testimony of witnesses and the production of certain documents. Existing law also provides for the enforcement of those investigative powers, including through punishment for acts of contempt committed before legislative bodies. (Nev. Const. Art. 4, § 7; NRS 218E.010-218E.095) This bill revises and moves certain provisions governing those investigative powers and their enforcement into chapter 218E of NRS, and this bill also eliminates various redundant and repetitive provisions regarding those investigative powers and their enforcement from other provisions of NRS.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 218A.090 is hereby amended to read as follows:

      218A.090  “Special session” means a special session of the Legislature convened by:

      1.  The members of the Legislature pursuant to Section 2A of Article 4 of the Nevada Constitution; or

      2.  The Governor pursuant to Section 9 of Article 5 of the Nevada Constitution.

      Sec. 2. NRS 218D.800 is hereby amended to read as follows:

      218D.800  1.  After its first approval by the Legislature, an enrolled joint resolution proposing an amendment to the Constitution of the State of Nevada must be delivered with the official engrossed copy to the Secretary of State or such deputy or clerk as the Secretary of State designates in writing.

      2.  The Secretary of State shall cause the enrolled joint resolution and engrossed copy to be filed in the Secretary of State’s office and shall deliver them to the presiding officer of the House in which the proposed amendment originated at the next regular session of the Legislature unless, before that regular session, the Governor [makes] or the members of the Legislature make the proposed amendment a matter of legislative business at a special session.

      3.  After they have been returned by the Secretary of State, the enrolled joint resolution and engrossed copy must be laid before the House of origin for action, and if approved by the Legislature a second time pursuant to Section 1 of Article 16 of the Nevada Constitution, the enrolled joint resolution and engrossed copy must again be deposited with and filed by the Secretary of State so that the proposed amendment may be placed upon the ballot at the next general election or at a special election authorized by the Legislature for that purpose.

      4.  The history of the joint resolution, including a notation that it has been returned to the House of origin by the Secretary of State, must be noted on both the enrolled copy and engrossed copy.

      5.  The enrolled copy must bear the original signatures of the presiding officers of the Houses and the Secretary of the Senate and Chief Clerk of the Assembly, or an authorized assistant, for both sessions of the Legislature at which the proposed amendment to the Constitution was considered.

 


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      6.  The Secretary of State shall cause all proposed amendments to the Constitution to be published in the printed volume of the statutes for each session at which the proposed amendments have been considered by the Legislature.

      Sec. 3.  Chapter 218E of NRS is hereby amended by adding thereto the provisions set forth as sections 4 to 13, inclusive, of this act.

      Sec. 4. As used in NRS 218E.010 to 218E.095, inclusive, and section 5 of this act, unless the context otherwise requires, the words and terms defined in NRS 218E.010 and section 5 of this act have the meanings ascribed to them in those sections.

      Sec. 5. “Documentary evidence” means any account, book, correspondence, file, message, paper, record or other type of document in any form, including, without limitation, in any written, audio, visual, digital or electronic form.

      Sec. 6. As used in sections 6 to 13, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 7, 8 and 9 of this act have the meanings ascribed to them in those sections.

      Sec. 7. 1.  “Committee” means the Legislative Commission and any other legislative committee or subcommittee created by a specific statute, concurrent resolution or order of the Legislative Commission to conduct studies or investigations or perform any other legislative business during the legislative interim.

      2.  The term does not include any legislative committee or subcommittee appointed by the Legislature or either House to conduct or perform legislative business during a regular or special session, including, without limitation, any joint, standing, temporary, special or select committee or committee of the whole.

      Sec. 8. “Documentary evidence” has the meaning ascribed to it in section 5 of this act.

      Sec. 9. “Secretary of the committee” means the Director or any other person designated or authorized to serve as a secretary of the committee.

      Sec. 10. 1.  The provisions of sections 6 to 13, inclusive, of this act are intended to supplement the other provisions of this chapter and any other law governing the legislative proceedings of a committee, and the provisions of sections 6 to 13, inclusive, of this act do not limit the application of such other provisions.

      2.  The powers, privileges and immunities granted by the provisions of sections 6 to 13, inclusive, of this act are in addition to any other powers, privileges and immunities recognized by law, and all such powers, privileges and immunities are cumulative, so that the application or attempted application of any one does not bar the application or attempted application of any other.

      Sec. 11. 1.  A committee may conduct investigations and hold hearings regarding any matter which is pertinent to its legislative business or possible future legislative action and may exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act.

      2.  The secretary of the committee or any member of the committee may administer oaths to witnesses who appear before the committee.

      3.  The chair of the committee, or the secretary of the committee on behalf of the chair, may cause the deposition of witnesses to be taken, whether the witnesses reside within or without the State, in the manner prescribed by court rules for taking depositions in civil actions in the district court.

 


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      Sec. 12. 1.  For the purposes of conducting investigations and holding hearings in connection with the functions and duties of a committee, the chair of the committee may issue legislative subpoenas to compel the attendance and testimony of witnesses and the production of documentary evidence that is pertinent to the committee’s legislative business or possible future legislative action.

      2.  To be properly issued, a legislative subpoena must:

      (a) Be addressed to the witness;

      (b) Describe the nature of the legislative proceedings for which the legislative subpoena is being issued;

      (c) Require the attendance and testimony of the witness at a definite time and place fixed in the legislative subpoena or require the production of the documentary evidence at a definite time and place fixed in the legislative subpoena, or both;

      (d) State particular reasons why the attendance and testimony of the witness or the production of the documentary evidence is pertinent to the committee’s legislative business or possible future legislative action; and

      (e) Be signed by the chair of the committee.

      3.  A legislative subpoena may be served by any person who is 18 years of age or older.

      4.  If a legislative subpoena is properly issued to and served on a witness pursuant to this section:

      (a) The legislative subpoena has the same legal force and effect as a subpoena or order issued by the district court; and

      (b) The witness shall comply with the provisions of the legislative subpoena in the same manner as a subpoena or order issued by the district court.

      5.  In addition to any other remedies or penalties provided by law, if a witness fails to comply with the provisions of a legislative subpoena, the chair of the committee who issued the legislative subpoena, or the secretary of the committee on behalf of the chair, may file a petition to enforce compliance with the legislative subpoena in the district court for any county where the committee regularly holds its meetings or where the witness resides, works or maintains a place of business. The petition must:

      (a) Set forth the name of the witness and, if the witness is a custodian of documentary evidence, the name of the organization for whom the witness serves as a custodian;

      (b) Include a copy of the legislative subpoena;

      (c) State that the legislative subpoena was issued and served on the witness pursuant to this section and provided the witness with notice of the definite time and place fixed in the legislative subpoena for the attendance and testimony of the witness or the production of the documentary evidence, or both;

      (d) State that the witness failed to comply with the provisions of the legislative subpoena; and

      (e) Request an order of the court enforcing the legislative subpoena and compelling the witness to comply with its provisions.

      6.  Upon the filing of the petition to enforce compliance with the legislative subpoena, the court shall:

 

 


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      (a) Enter an order directing the witness to:

             (1) Appear at a hearing before the court at a time and place fixed by the court in the order, which must not be more than 10 days after the date of the order; and

             (2) Show cause why the witness has not complied with the provisions of the legislative subpoena; and

      (b) Serve a certified copy of the order upon the witness.

      7.  If, at the hearing to show cause, the court finds that the legislative subpoena was properly issued and served pursuant to this section and that the witness has not proven a reason recognized by law for the failure to comply with its provisions, the court shall enter an order requiring the witness to comply with the provisions of the legislative subpoena at a time and place fixed by the court in the order. If the witness fails to comply with the court’s order, the witness commits contempt of court and shall be punished as provided by law for such contempt of court.

      Sec. 13. 1.  Each witness who appears and is prepared to testify before a committee in compliance with a legislative subpoena, except a state officer or employee, is entitled to receive for such attendance, whether or not the witness testifies, the fees and mileage provided for witnesses in civil cases in the district court.

      2.  The fees and mileage must be audited and paid upon the presentation of proper claims sworn to by the witness and approved by the chair of the committee.

      Sec. 14. NRS 218E.010 is hereby amended to read as follows:

      218E.010  1.  [As used in NRS 218E.010 to 218E.095, inclusive, unless the context otherwise requires, “committee”] “Committee” means:

      (a) Any committee of either House;

      (b) Any joint committee of both Houses; or

      (c) Any other committee or commission created or authorized by the Legislature to conduct or perform legislative [functions] business at the direction of or on behalf of the Legislature.

      2.  The term includes, without limitation, a subcommittee.

      Sec. 15. NRS 218E.015 is hereby amended to read as follows:

      218E.015  The Assembly, the Senate and committees may conduct investigations [into] and hold hearings regarding any matter which is pertinent to their legislative business or possible future legislative action.

      Sec. 16. NRS 218E.030 is hereby amended to read as follows:

      218E.030  1.  The Assembly, the Senate and committees, pursuant to their investigative powers, may issue legislative subpoenas [for the production of material] to compel the attendance and testimony of witnesses and [relevant] the production of documentary evidence [. Such] that is pertinent to their legislative business or possible future legislative action.

      2.  Legislative subpoenas may be issued by the President of the Senate, the Speaker of the Assembly, or the chair of a committee in accordance with the [concurrence of a majority of the members of] rules governing the committee.

      [2.]3.  Except in cases of impeachment or removal as provided by Article 7 of the Constitution of the State of Nevada, a legislative subpoena must not be issued to:

      (a) The Governor or any of the Governor’s immediate staff.

      (b) Any justice of the Supreme Court or judge of a district court.

 


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      Sec. 17. NRS 218E.035 is hereby amended to read as follows:

      218E.035  1.  [A] To be properly issued, a legislative subpoena [is sufficient if it:

      (a) States whether the proceeding is before the Senate, the Assembly or a committee;

      (b) Is addressed to the witness;

      (c) Requires] must:

      (a) Be addressed to the witness;

      (b) Describe the nature of the legislative proceedings for which the legislative subpoena is being issued;

      (c) Require the attendance and testimony of the witness at a definite time and place [certain;

      (d) States] fixed in the legislative subpoena or require the production of the documentary evidence at a definite time and place fixed in the legislative subpoena, or both;

      (d) State particular reasons [making] why the attendance and testimony [sought, or] of the witness or the production of the documentary evidence [requested,] is pertinent to legislative business or possible future legislative action; and

      (e) [Is] Be signed , as applicable, by the President of the Senate, the Speaker of the Assembly or the chair of the committee [before whom attendance of the witness or production of evidence is desired.] who issued the legislative subpoena.

      2.  [The service of a] A legislative subpoena may be [made] served by any person [over] who is 18 years of age [.] or older.

      3.  If a legislative subpoena is properly issued to and served on a witness pursuant to this section:

      (a) The legislative subpoena has the same legal force and effect as a subpoena or order issued by the district court; and

      (b) The witness shall comply with the provisions of the legislative subpoena in the same manner as a subpoena or order issued by the district court.

      Sec. 18. NRS 218E.040 is hereby amended to read as follows:

      218E.040  The [members of the Senate, the Assembly or a committee] following persons may administer oaths to witnesses [.] who appear before the Senate, the Assembly or a committee:

      1.  The President of the Senate, the Secretary of the Senate or any member of the Senate.

      2.  The Chief Clerk of the Assembly or any member of the Assembly.

      3.  The secretary of the committee or any member of the committee.

      Sec. 19. NRS 218E.045 is hereby amended to read as follows:

      218E.045  1.  [A] If a legislative subpoena is properly issued to and served on a witness, the witness commits contempt if the witness [:] , without a reason recognized by law:

      (a) Neglects or refuses to [obey a] comply with the provisions of the legislative subpoena;

      (b) [After appearing,] Neglects or refuses to be sworn or to affirm before testifying or neglects or refuses to testify as to any relevant matter; or

      (c) Neglects or refuses to produce [, upon reasonable notice,] any relevant documentary evidence in the possession or under the control of the witness.

 


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      2.  [If] In addition to any other remedies or penalties provided by law, if a witness commits contempt, the district court of any county shall, on application of the President of the Senate, the Speaker of the Assembly or the chair of the committee, compel the witness’s obedience by proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued from such court or a refusal to testify therein.

      Sec. 20. NRS 218E.050 is hereby amended to read as follows:

      218E.050  1.  If [the] a witness [was required to attend] commits contempt before:

      (a) The Senate or the Assembly, any member of the House may offer a resolution to have the recusant witness cited to show cause why the witness should not be imprisoned for contempt.

      (b) A committee while the Legislature is in regular or special session, any member of the committee may offer a resolution in the House of which the Legislator is a member to have the recusant witness cited to show cause why the witness should not be imprisoned for contempt, but only if the resolution is first approved by a majority vote of the committee.

      2.  If the resolution is adopted by the House, the House shall issue a citation, signed by the presiding officer of the House:

      (a) Directing the recusant witness to appear before the House at a time and place specified in the citation to show cause, if any, why the witness should not be imprisoned for contempt; and

      (b) Accompanied by a copy of the original legislative subpoena if the recusant witness failed to appear, or stating briefly the questions which the witness failed to answer or the documentary evidence which the witness failed to produce.

      3.  The time and place stated in the citation for the hearing must afford the recusant witness a reasonable opportunity to prepare an appropriate defense.

      4.  The citation must be served personally upon the recusant witness and may be served by any peace officer or by the Sergeant at Arms or any regularly appointed Assistant Sergeant at Arms of the House.

      Sec. 21. NRS 218E.095 is hereby amended to read as follows:

      218E.095  1.  If a legislative subpoena is properly issued to and served on a person , [is subpoenaed to attend as a witness before a House or committee,] the person shall not [:

      (a) Refuse or neglect, without lawful excuse, to attend pursuant to the subpoena; or

      (b) Willfully] , without a reason recognized by law:

      (a) Neglect or refuse to comply with the provisions of the legislative subpoena;

      (b) Neglect or refuse to be sworn or to affirm [, to answer any material or proper question,] before testifying or neglect or refuse to testify as to any relevant matter; or

      (c) Neglect or refuse to produce [, upon reasonable notice, any material or proper books, papers or documents] any relevant documentary evidence in the possession or under the control of the person.

      2.  [A] In addition to any other remedies or penalties provided by law, a person who violates any provision of this section is guilty of a gross misdemeanor.

 


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      Sec. 22. NRS 218E.185 is hereby amended to read as follows:

      218E.185  1.  In the discharge of any duty imposed or power conferred by this title or any law or resolution, the Legislative Commission [has the authority to:

      (a) Administer oaths.

      (b) Cause the deposition of witnesses, residing either within or without the State, to be taken in the manner prescribed by rule of court for taking depositions in civil actions in the district courts.

      (c) Issue subpoenas to compel the attendance and testimony of witnesses and the production of books, papers, accounts, department records and other documents before the Legislative Commission or a subcommittee or interim or special committee established pursuant to NRS 218E.200.] may exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act.

      2.  The Legislative Commission may delegate its authority pursuant to subsection 1 to a subcommittee or interim or special committee established pursuant to NRS 218E.200.

      [3.  If any witness fails or refuses to attend or testify or to produce the books, papers, accounts, department records or other documents required by a subpoena, the Chair of the Legislative Commission or the subcommittee or interim or special committee that issued the subpoena may report the failure or refusal to the district court by a petition which:

      (a) Sets forth that:

             (1) Due notice has been given of the time and place of the attendance of the witness or the production of the required books, papers, accounts, department records or other documents;

             (2) The witness has been subpoenaed by the Legislative Commission or the subcommittee or interim or special committee pursuant to this section; and

             (3) The witness has failed or refused to attend or testify or to produce the books, papers, accounts, department records or other documents required by the subpoena before the Legislative Commission or the subcommittee or interim or special committee named in the subpoena; and

      (b) Asks for an order of the court compelling the witness to attend and testify or to produce the required books, papers, accounts, department records or other documents before the Legislative Commission or the subcommittee or interim or special committee named in the subpoena.

      4.  Upon such a petition, the court shall:

      (a) Enter an order directing the witness:

             (1) To appear before the court at a time and place to be fixed by the court in its order, the time to be not more than 10 days after the date of the order; and

             (2) To show cause why the witness has not attended or testified or produced the required books, papers, accounts, department records or other documents before the Legislative Commission or the subcommittee or interim or special committee named in the subpoena; and

      (b) Serve a certified copy of the order upon the witness.

      5.  If it appears to the court that the subpoena was regularly issued by the Legislative Commission or the subcommittee or interim or special committee, the court shall enter an order that the witness:

 


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      (a) Must appear before the Legislative Commission or the subcommittee or interim or special committee named in the subpoena at the time and place fixed in the order;

      (b) Must testify or produce the required books, papers, accounts, department records or other documents; and

      (c) Upon failure to obey the order, must be dealt with as for contempt of court.

      6.  Each witness who appears before the Legislative Commission or a subcommittee or interim or special committee by its order, except a state officer or employee, is entitled to receive for such attendance the fees and mileage provided for witnesses in civil cases in the courts of record of this State. The fees and mileage must be audited and paid upon the presentation of proper claims sworn to by the witness and approved by the Secretary and Chair of the Legislative Commission.]

      Sec. 23. NRS 218E.200 is hereby amended to read as follows:

      218E.200  1.  The Legislative Commission may conduct studies or investigations concerning governmental problems, important issues of public policy or questions of statewide interest.

      2.  The Legislative Commission may establish subcommittees and interim or special committees as official agencies of the Legislative Counsel Bureau to conduct such studies or investigations or otherwise to deal with such governmental problems, important issues of public policy or questions of statewide interest. The subcommittees and interim or special committees may exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act.

      3.  The membership of [those] the subcommittees and interim or special committees:

      (a) Must be designated by the Legislative Commission; and

      (b) May consist of members of the Legislative Commission and Legislators other than members of the Legislative Commission, employees of the State of Nevada or citizens of the State of Nevada.

      4.  For each day or portion of a day during which members of [those] the subcommittees and interim or special committees who are not Legislators attend meetings or are otherwise engaged in the business of [those] the subcommittees and interim or special committees, the members:

      (a) Shall serve without salary.

      (b) Are entitled to receive out of the Legislative Fund the per diem allowances and travel expenses provided for state officers and employees generally.

      5.  Except during a regular or special session, for each day or portion of a day during which members of [those] the subcommittees and interim or special committees who are Legislators attend meetings of [those] the subcommittees and interim or special committees or are otherwise engaged in the business of [those] the subcommittees and interim or special committees, the members are entitled to receive out of the Legislative Fund:

      (a) The compensation provided for a majority of the Legislators during the first 60 days of the preceding regular session;

      (b) The per diem allowance provided for state officers and employees generally; and

      (c) The travel expenses provided pursuant to NRS 218A.655.

 


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      Sec. 24. NRS 218E.400 is hereby amended to read as follows:

      218E.400  1.  There is hereby created in the Legislative Counsel Bureau an Interim Finance Committee. Except as otherwise provided in this section, the Interim Finance Committee is composed of the members of the Assembly Standing Committee on Ways and Means and the Senate Standing Committee on Finance during the current or immediately preceding regular session.

      2.  Except as otherwise provided in this subsection, the immediate past Chair of the Senate Standing Committee on Finance is the Chair of the Interim Finance Committee for the period ending with the convening of each even-numbered regular session. The immediate past Chair of the Assembly Standing Committee on Ways and Means is the Chair of the Interim Finance Committee during the next legislative interim, and the position of Chair alternates between the Houses according to this pattern. The term of the Chair of the Interim Finance Committee terminates if a new Chair of the Assembly Standing Committee on Ways and Means or the Senate Standing Committee on Finance, as the case may be, is designated for the next regular session, in which case that person so designated serves as the Chair of the Interim Finance Committee until the convening of that regular session.

      3.  If any regular member of the Interim Finance Committee informs the Secretary that the member will be unable to attend a particular meeting, the Secretary shall notify the Speaker of the Assembly or the Majority Leader of the Senate, as the case may be, to appoint an alternate for that meeting from the same House and political party as the absent member.

      4.  Except as otherwise provided in subsection 5, the term of a member of the Interim Finance Committee expires upon the convening of the next regular session unless the member is replaced by the appointing authority. If the Speaker designate of the Assembly or the Majority Leader designate of the Senate designates members of the Assembly Standing Committee on Ways and Means or the Senate Standing Committee on Finance, as applicable, for the next regular session, the designated members become members of the Interim Finance Committee. A member may be reappointed.

      5.  The membership of any member who does not become a candidate for reelection or who is defeated for reelection terminates on the day next after the general election. The Speaker designate of the Assembly or the Majority Leader designate of the Senate, as the case may be, shall appoint an alternate to fill the vacancy on the Interim Finance Committee. Except as otherwise provided in this subsection, each alternate serves on the Interim Finance Committee:

      (a) If the alternate is a member of the Assembly, until the Speaker designate of the Assembly designates the members of the Assembly Standing Committee on Ways and Means for the next regular session or appoints a different alternate.

      (b) If the alternate is a member of the Senate, until the Majority Leader designate of the Senate designates the members of the Senate Standing Committee on Finance for the next regular session or appoints a different alternate.

      6.  The Director shall act as the Secretary of the Interim Finance Committee.

      7.  A majority of the members of the Assembly Standing Committee on Ways and Means and a majority of the members of the Senate Standing Committee on Finance, jointly, may call a meeting of the Interim Finance Committee if the Chair does not do so.

 


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      8.  In all matters requiring action by the Interim Finance Committee, the vote of the Assembly members and the Senate members must be taken separately. No action may be taken unless it receives the affirmative vote of a majority of the Assembly members and a majority of the Senate members.

      9.  The Interim Finance Committee may conduct investigations and hold hearings in connection with its functions and duties and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act.

      10.  Except during a regular or special session, for each day or portion of a day during which a member of the Interim Finance Committee and appointed alternate attends a meeting of the Interim Finance Committee or is otherwise engaged in the business of the Interim Finance Committee, the member or appointed alternate is entitled to receive:

      (a) The compensation provided for a majority of the Legislators during the first 60 days of the preceding regular session;

      (b) The per diem allowance provided for state officers and employees generally; and

      (c) The travel expenses provided pursuant to NRS 218A.655.

      [10.]11.  All such compensation, per diem allowances and travel expenses must be paid from the Contingency Fund in the State Treasury.

      Sec. 25. NRS 218E.420 is hereby amended to read as follows:

      218E.420  1.  There is hereby created an Interim Retirement and Benefits Committee of the Legislature to:

      (a) Review the operation of the Public Employees’ Retirement System, the Judicial Retirement System established pursuant to chapter 1A of NRS and the Public Employees’ Benefits Program; and

      (b) Make recommendations to the Public Employees’ Retirement Board and the Board of the Public Employees’ Benefits Program, the Legislative Commission and the Legislature.

      2.  The Interim Retirement and Benefits Committee consists of six members appointed as follows:

      (a) Three members of the Senate, one of whom is the Chair of the Committee on Finance during the preceding regular session and two of whom are appointed by the Majority Leader of the Senate.

      (b) Three members of the Assembly, one of whom is the Chair of the Committee on Ways and Means during the preceding regular session and two of whom are appointed by the Speaker of the Assembly.

      3.  The Legislative Commission shall review and approve the budget and work program for the Committee and any changes to the budget or work program.

      4.  The immediate past Chair of the Senate Standing Committee on Finance is the Chair of the Interim Retirement and Benefits Committee for the period ending with the convening of each odd-numbered regular session. The immediate past Chair of the Assembly Standing Committee on Ways and Means is the Chair of the Interim Retirement and Benefits Committee during the next legislative interim, and the position of Chair alternates between the Houses according to this pattern.

      5.  The Interim Retirement and Benefits Committee may exercise the powers conferred on it by law only when the Legislature is not in a regular or special session and shall meet at the call of the Chair.

      6.  The Interim Retirement and Benefits Committee may conduct investigations and hold hearings in connection with its functions and duties and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act.

 


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      7.  The Director shall provide a Secretary for the Interim Retirement and Benefits Committee.

      [7.]8.  For each day or portion of a day during which members of the Interim Retirement and Benefits Committee attend a meeting of the Interim Retirement and Benefits Committee or are otherwise engaged in the business of the Interim Retirement and Benefits Committee, the members are entitled to receive:

      (a) The compensation provided for a majority of the Legislators during the first 60 days of the preceding regular session;

      (b) The per diem allowance provided for state officers and employees generally; and

      (c) The travel expenses provided pursuant to NRS 218A.655.

      [8.]9.  All such compensation, per diem allowances and travel expenses must be paid from the Legislative Fund.

      Sec. 26. NRS 218E.435 is hereby amended to read as follows:

      218E.435  As used in NRS 218E.435 to [218E.460,] 218E.450, inclusive, unless the context otherwise requires, “committee” means a legislative committee for the fundamental review of the base budgets of state agencies.

      Sec. 27. NRS 218E.450 is hereby amended to read as follows:

      218E.450  1.  A committee shall, during the legislative interim, perform a fundamental review of the base budget of each state agency assigned to it for review.

      2.  A committee may request the state agency under review and any other agency to submit information, analyses and reports which are pertinent to the reviews conducted pursuant to this section. Each agency of the State shall cooperate fully and provide the material requested within the period specified by a committee.

      3.  A committee may conduct investigations and hold hearings in connection with the reviews conducted pursuant to this section and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act.

      4.  A committee shall, before the convening of the next regular session, transmit a report of each review conducted pursuant to this section, and any related recommendations, to the Interim Finance Committee and the Legislative Commission.

      Sec. 28. NRS 218E.505 is hereby amended to read as follows:

      218E.505  As used in NRS 218E.500 to [218E.535,] 218E.525, inclusive, unless the context otherwise requires, “Committee” means the Legislative Committee on Public Lands.

      Sec. 29. NRS 218E.520 is hereby amended to read as follows:

      218E.520  1.  The Committee may:

      (a) Review and comment on any administrative policy, rule or regulation of the:

             (1) Secretary of the Interior which pertains to policy concerning or management of public lands under the control of the Federal Government; and

             (2) Secretary of Agriculture which pertains to policy concerning or management of national forests;

      (b) Conduct investigations and hold hearings in connection with its review, including, but not limited to, investigating the effect on the State, its citizens, political subdivisions, businesses and industries of those policies, rules, regulations and related laws [;] , and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act;

 


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rules, regulations and related laws [;] , and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act;

      (c) Consult with and advise the State Land Use Planning Agency on matters concerning federal land use, policies and activities in this State;

      (d) Direct the Legislative Counsel Bureau to assist in its research, investigations, review and comment;

      (e) Recommend to the Legislature as a result of its review any appropriate state legislation or corrective federal legislation;

      (f) Advise the Attorney General if it believes that any federal policy, rule or regulation which it has reviewed encroaches on the sovereignty respecting land or water or their use which has been reserved to the State pursuant to the Constitution of the United States;

      (g) Enter into a contract for consulting services for land planning and any other related activities, including, but not limited to:

             (1) Advising the Committee and the State Land Use Planning Agency concerning the revision of the plans pursuant to NRS 321.7355;

             (2) Assisting local governments in the identification of lands administered by the Federal Government in this State which are needed for residential or economic development or any other purpose; and

             (3) Assisting local governments in the acquisition of federal lands in this State;

      (h) Apply for any available grants and accept any gifts, grants or donations to assist the Committee in carrying out its duties; and

      (i) Review and comment on any other matter relating to the preservation, conservation, use, management or disposal of public lands deemed appropriate by the Chair of the Committee or by a majority of the members of the Committee.

      2.  Any reference in this section to federal policies, rules, regulations and related federal laws includes those which are proposed as well as those which are enacted or adopted.

      Sec. 30. NRS 218E.550 is hereby amended to read as follows:

      218E.550  As used in NRS 218E.550 to [218E.580,] 218E.570, inclusive, unless the context otherwise requires, “Committee” means the Legislative Committee for the Review and Oversight of the Tahoe Regional Planning Agency and the Marlette Lake Water System created by NRS 218E.555.

      Sec. 31. NRS 218E.570 is hereby amended to read as follows:

      218E.570  The Committee may:

      1.  Conduct investigations and hold hearings in connection with its review and study [;] and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act;

      2.  Apply for any available grants and accept any gifts, grants or donations and use any such gifts, grants or donations to aid the Committee in carrying out its duties pursuant to NRS 218E.550 to [218E.580,] 218E.570, inclusive;

      3.  Direct the Legislative Counsel Bureau to assist in its research, investigations, review and study; and

      4.  Recommend to the Legislature, as a result of its review and study, any appropriate legislation.

 


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      Sec. 32. NRS 218E.615 is hereby amended to read as follows:

      218E.615  1.  The Committee may:

      (a) Evaluate, review and comment upon issues related to education within this State, including, but not limited to:

             (1) Programs to enhance accountability in education;

             (2) Legislative measures regarding education;

             (3) The progress made by this State, the school districts and the public schools in this State in satisfying the goals and objectives of the federal No Child Left Behind Act of 2001, 20 U.S.C. §§ 6301 et seq., and the annual measurable objectives established by the State Board of Education pursuant to NRS 385.361;

             (4) Methods of financing public education;

             (5) The condition of public education in the elementary and secondary schools;

             (6) The program to reduce the ratio of pupils per class per licensed teacher prescribed in NRS 388.700, 388.710 and 388.720;

             (7) The development of any programs to automate the receipt, storage and retrieval of the educational records of pupils; and

             (8) Any other matters that, in the determination of the Committee, affect the education of pupils within this State.

      (b) Conduct investigations and hold hearings in connection with its duties pursuant to this section [.] and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act.

      (c) Request that the Legislative Counsel Bureau assist in the research, investigations, hearings and reviews of the Committee.

      (d) Make recommendations to the Legislature concerning the manner in which public education may be improved.

      2.  The Committee shall:

      (a) In addition to any standards prescribed by the Department of Education, prescribe standards for the review and evaluation of the reports of the State Board of Education, State Public Charter School Authority, school districts and public schools pursuant to paragraph (a) of subsection 1 of NRS 385.359.

      (b) For the purposes set forth in NRS 385.389, recommend to the Department of Education programs of remedial study for each subject tested on the examinations administered pursuant to NRS 389.015. In recommending these programs of remedial study, the Committee shall consider programs of remedial study that have proven to be successful in improving the academic achievement of pupils.

      (c) Recommend to the Department of Education providers of supplemental educational services for inclusion on the list of approved providers prepared by the Department pursuant to NRS 385.384. In recommending providers, the Committee shall consider providers with a demonstrated record of effectiveness in improving the academic achievement of pupils.

      (d) For the purposes set forth in NRS 385.3785, recommend to the Commission on Educational Excellence created by NRS 385.3784 programs, practices and strategies that have proven effective in improving the academic achievement and proficiency of pupils.

 


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      Sec. 33. NRS 218E.700 is hereby amended to read as follows:

      218E.700  As used in NRS 218E.700 to [218E.730,] 218E.720, inclusive, unless the context otherwise requires, “Committee” means the Legislative Committee on Child Welfare and Juvenile Justice.

      Sec. 34. NRS 218E.720 is hereby amended to read as follows:

      218E.720  1.  The Committee may:

      (a) Conduct investigations and hold hearings in connection with its duties pursuant to NRS 218E.715 [;] and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act;

      (b) Request that the Legislative Counsel Bureau assist in the research, investigations, hearings and reviews of the Committee; and

      (c) Propose recommended legislation concerning child welfare and juvenile justice to the Legislature.

      2.  The Committee shall, on or before January 15 of each odd-numbered year, submit to the Director for transmittal to the Legislature a report concerning the evaluation and review conducted pursuant to NRS 218E.715.

      Sec. 35. NRS 218E.745 is hereby amended to read as follows:

      218E.745  As used in NRS 218E.745 to [218E.770,] 218E.760, inclusive, unless the context otherwise requires, “Committee” means the Legislative Committee on Senior Citizens, Veterans and Adults With Special Needs.

      Sec. 36. NRS 218E.760 is hereby amended to read as follows:

      218E.760  1.  The Committee may review, study and comment upon issues relating to senior citizens, veterans and adults with special needs, including, without limitation:

      (a) Initiatives to ensure the financial and physical wellness of senior citizens, veterans and adults with special needs;

      (b) The abuse, neglect, isolation and exploitation of senior citizens and adults with special needs;

      (c) Public outreach and advocacy;

      (d) Programs for the provision of services to senior citizens, veterans and adults with special needs in this State and methods to enhance such programs to ensure that services are provided in the most appropriate setting;

      (e) Programs that provide services and care in the home which allow senior citizens to remain at home and live independently instead of in institutional care;

      (f) The availability of useful information and data as needed for the State of Nevada to effectively make decisions, plan budgets and monitor costs and outcomes of services provided to senior citizens, veterans and adults with special needs;

      (g) Laws relating to the appointment of a guardian and the improvement of laws for the protection of senior citizens and adults with special needs who have been appointed a guardian, including, without limitation, the improvement of investigations relating to guardianships and systems for monitoring guardianships; and

      (h) The improvement of facilities for long-term care in this State, including, without limitation:

             (1) Reducing the number of persons placed in facilities for long-term care located outside this State;

             (2) Creating units for acute care and long-term care to treat persons suffering from dementia who exhibit behavioral problems;

 


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             (3) Developing alternatives to placement in facilities for long-term care, including, without limitation, units for long-term care located in other types of facilities, and ensuring that such alternatives are available throughout this State for the treatment of persons with psychological needs; and

             (4) Creating a program to provide follow-up care and to track the ongoing progress of residents of facilities for long-term care.

      2.  The Committee may:

      (a) Review, study and comment upon matters relating to senior citizens, veterans and adults with special needs;

      (b) Conduct investigations and hold hearings in connection with its duties pursuant to this section [;] and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act;

      (c) Request that the Legislative Counsel Bureau assist in the research, investigations, hearings and studies of the Committee; and

      (d) Make recommendations to the Legislature concerning senior citizens, veterans and adults with special needs.

      3.  The Committee shall, on or before January 15 of each odd-numbered year, submit to the Director for transmittal to the next regular session a report concerning the study conducted pursuant to subsection 1.

      4.  As used in this section, “facility for long-term care” has the meaning ascribed to it in NRS 427A.028.

      Sec. 37. NRS 218H.930 is hereby amended to read as follows:

      218H.930  1.  A lobbyist shall not knowingly or willfully make any false statement or misrepresentation of facts:

      (a) To any member of the Legislative Branch in an effort to persuade or influence the member in his or her official actions.

      (b) In a registration statement or report concerning lobbying activities filed with the Director.

      2.  A lobbyist shall not give to a member of the Legislative Branch or a member of his or her staff or immediate family gifts that exceed $100 in value in the aggregate in any calendar year.

      3.  A member of the Legislative Branch or a member of his or her staff or immediate family shall not solicit anything of value from a registrant or accept any gift that exceeds $100 in aggregate value in any calendar year.

      4.  A person who employs or uses a lobbyist shall not make that lobbyist’s compensation or reimbursement contingent in any manner upon the outcome of any legislative action.

      5.  Except during the period permitted by NRS 218H.200, a person shall not knowingly act as a lobbyist without being registered as required by that section.

      6.  Except as otherwise provided in subsection 7, a member of the Legislative or Executive Branch of the State Government and an elected officer or employee of a political subdivision shall not receive compensation or reimbursement other than from the State or the political subdivision for personally engaging in lobbying.

      7.  An elected officer or employee of a political subdivision may receive compensation or reimbursement from any organization whose membership consists of elected or appointed public officers.

      8.  A lobbyist shall not instigate the introduction of any legislation for the purpose of obtaining employment to lobby in opposition to that legislation.

 


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      9.  A lobbyist shall not make, commit to make or offer to make a monetary contribution to a Legislator, the Lieutenant Governor, the Lieutenant Governor-elect, the Governor or the Governor-elect during the period beginning:

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

      (b) Fifteen days before a special session is set to commence and ending 15 days after the final adjournment of a special session, if [the] :

             (1) The Governor sets a specific date for the commencement of the special session that is more than 15 days after the date on which the Governor issues the proclamation calling for the special session [;] pursuant to Section 9 of Article 5 of the Nevada Constitution; or

             (2) The members of the Legislature set a date on or before which the Legislature is to convene the special session that is more than 15 days after the date on which the Secretary of State receives one or more substantially similar petitions signed, in the aggregate, by the required number of members calling for the special session pursuant to Section 2A of Article 4 of the Nevada Constitution; or

      (c) The day after :

             (1) The date on which the Governor issues [a] the proclamation calling for [a] the special session and ending 15 days after the final adjournment of [a] the special session if the Governor sets a specific date for the commencement of the special session that is 15 or fewer days after the date on which the Governor issues the proclamation calling for the special session [.] ; or

             (2) The date on which the Secretary of State receives one or more substantially similar petitions signed, in the aggregate, by the required number of members of the Legislature calling for the special session and ending 15 days after the final adjournment of the special session if the members set a date on or before which the Legislature is to convene the special session that is 15 or fewer days after the date on which the Secretary of State receives the petitions.

      Sec. 38. NRS 223.210 is hereby amended to read as follows:

      223.210  1.  Whenever any Act of Congress, regulation promulgated by the President or from an executive department of the Federal Government, or decision of a court of the United States or of this State requires the Governor to perform any act for which legislative authority is lacking, either absolutely or in the alternative of forfeiting a grant of money or other thing of value or of action by the requiring authority, and the Legislature is not in session and cannot reasonably be [called into] convened in a special session, the Governor may, with the approval of the Legislative Commission:

      (a) Perform the act required.

      (b) Direct an existing agency, board or commission to do the act required.

      (c) Accept money or some other thing of value from the Federal Government, and contract with respect to such acceptance.

      (d) Expend, for the purpose required, any money so accepted from the Federal Government or available to him or her from any nonstate source or from the Emergency Account. Any expenditures from the Emergency Account for the purposes provided in this subsection must be first approved by the Legislative Commission.

 


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      2.  The Governor and the Legislative Commission shall report any action taken by them to the next session of the Legislature, whether regular or special. Unless the Legislature acts affirmatively to authorize the Governor or some other agency, board or commission to do the act required, all authority conferred by this section expires by limitation on the 11th day after the final adjournment of the session. In case of such an expiration, neither the Governor nor any agency, board or commission may expend any money received pursuant to this section except as required by a valid contract executed prior to the expiration.

      3.  As used in this section, the phrase “cannot reasonably be [called into] convened in a special session” imposes a duty upon the Governor or the members of the Legislature to consider, among other things:

      (a) The importance of the act required in relation to State Government as a whole;

      (b) The amount of money to be expended pursuant to this section in relation to the cost of a special session; and

      (c) The interval remaining before the next regular session.

      Sec. 39. NRS 239C.260 is hereby amended to read as follows:

      239C.260  1.  In accordance with the provisions of Section 37 of Article 4 of the Nevada Constitution, the Nevada Legislature hereby establishes a plan for continuation of state and local governmental operations. The provisions set forth in this section apply only in, and must be used in accordance with, the circumstances described in subsection 2.

      2.  In the event that this State or a portion of this State is stricken by a catastrophic emergency of such magnitude that, in the opinion of the Governor or, in the absence of the Governor, the Lieutenant Governor, the existing provisions of the Nevada Constitution and the statutes of this State relating to the filling of vacancies in office are not able to provide for a sufficiently expedient continuity of government and temporary succession of power as a result of vacancies in office created by the catastrophic emergency, the provisions of subsections 3 to 10, inclusive, apply.

      3.  If a vacancy occurs in the Office of Governor as a result of a catastrophic emergency and none of the successors described in NRS 223.080 are able or available to act as Governor, the Legislature shall elect a person to serve as Governor. If the Legislature is not in session at the time the vacancy occurs, the members of the Legislature may [call itself into] convene a special session to elect a person to serve as Governor.

      4.  If vacancies occur in more than 15 percent of the seats in either house of the Legislature as a result of a catastrophic emergency:

      (a) The remaining Legislators available for duty constitute the Legislature and have full power to act in separate or joint assembly by majority vote of those present;

      (b) Any requirements for a quorum applicable to the Legislature must initially be suspended and must subsequently be adjusted as vacant offices are filled pursuant to NRS 218A.260; and

      (c) If the affirmative vote of a specified proportion of members of the Legislature is required for the approval of a legislative measure, the same proportion of remaining members of the Legislature is sufficient for approval of that measure.

      5.  If vacancies occur in more than 15 percent of the positions held by justices on the Supreme Court as a result of a catastrophic emergency, the vacancies must be filled by appointment of the Governor.

 


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      6.  If vacancies occur in more than 15 percent of the positions held by the district judges in any one judicial district as a result of a catastrophic emergency, the vacancies must be filled by appointment of the Supreme Court.

      7.  If vacancies occur on a board of county commissioners as a result of a catastrophic emergency:

      (a) The remaining members of the board available for duty constitute the board and have full power to act by majority vote of those present; and

      (b) Any requirements for a quorum applicable to the board must initially be suspended and must subsequently be adjusted as vacant offices are filled.

Κ If a board of county commissioners is rendered entirely vacant as a result of a catastrophic emergency, such other elected officers of the county as may be available to serve on the board have full authority to act in all matters as a board of county commissioners.

      8.  If vacancies occur on a city council as a result of a catastrophic emergency:

      (a) The remaining members of the council available for duty constitute the council and have full power to act by majority vote of those present; and

      (b) Any requirements for a quorum applicable to the council must initially be suspended and must subsequently be adjusted as vacant offices are filled.

Κ If a city council is rendered entirely vacant as a result of a catastrophic emergency, such other elected officers of the city as may be available to serve on the council have full authority to act in all matters as a city council.

      9.  If, during or following a catastrophic emergency, a majority of the members of a legislative body described in this section determines that, for purposes of safety or to address related concerns, the legislative body should meet at a location other than the location at which the legislative body ordinarily meets, the legislative body may arrange to meet at an alternate location.

      10.  After a catastrophic emergency has taken place, the Governor or, in the absence of the Governor, the Lieutenant Governor, shall:

      (a) Determine and announce publicly when conditions have normalized within this State or the portion thereof affected by the catastrophic emergency.

      (b) In cooperation with the Secretary of State, develop procedures and a reasonable schedule for filling by regular election the various offices filled temporarily pursuant to this section.

      11.  As used in this section, “catastrophic emergency” means an emergency resulting from disasters caused by enemy attack, in accordance with Section 37 of Article 4 of the Nevada Constitution.

      Sec. 40. NRS 294A.300 is hereby amended to read as follows:

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

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

 


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      (b) Fifteen days before a special session of the Legislature is set to commence and ending 15 days after the final adjournment of a special session of the Legislature, if [the] :

             (1) The Governor sets a specific date for the commencement of the special session that is more than 15 days after the date on which the Governor issues the proclamation calling for the special session [;] pursuant to Section 9 of Article 5 of the Nevada Constitution; or

             (2) The members of the Legislature set a date on or before which the Legislature is to convene the special session that is more than 15 days after the date on which the Secretary of State receives one or more substantially similar petitions signed, in the aggregate, by the required number of members calling for the special session pursuant to Section 2A of Article 4 of the Nevada Constitution; or

      (c) The day after :

             (1) The date on which the Governor issues [a] the proclamation calling for [a] the special session [of the Legislature] and ending 15 days after the final adjournment of [a] the special session [of the Legislature] if the Governor sets a specific date for the commencement of the special session that is 15 or fewer days after the date on which the Governor issues the proclamation calling for the special session [.] ; or

             (2) The date on which the Secretary of State receives one or more substantially similar petitions signed, in the aggregate, by the required number of members of the Legislature calling for the special session and ending 15 days after the final adjournment of the special session if the members set a date on or before which the Legislature is to convene the special session that is 15 or fewer days after the date on which the Secretary of State receives the petitions.

      2.  A person shall not make or commit to make a contribution or commitment prohibited by subsection 1.

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

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

      Sec. 41. NRS 294A.310 is hereby amended to read as follows:

      294A.310  1.  A member of an organization whose primary purpose is to provide support for Legislators of a particular political party and house shall not solicit or accept contributions on behalf of the Legislators or the organization, or solicit or accept a commitment to make such a contribution during the period beginning:

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

      (b) Fifteen days before a special session of the Legislature is set to commence and ending 15 days after the final adjournment of a special session of the Legislature, if [the] :

             (1) The Governor sets a specific date for the commencement of the special session that is more than 15 days after the date on which the Governor issues the proclamation calling for the special session [;] pursuant to Section 9 of Article 5 of the Nevada Constitution; or

 


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             (2) The members of the Legislature set a date on or before which the Legislature is to convene the special session that is more than 15 days after the date on which the Secretary of State receives one or more substantially similar petitions signed, in the aggregate, by the required number of members calling for the special session pursuant to Section 2A of Article 4 of the Nevada Constitution; or

      (c) The day after :

             (1) The date on which the Governor issues [a] the proclamation calling for [a] the special session [of the Legislature] and ending 15 days after the final adjournment of [a] the special session [of the Legislature] if the Governor sets a specific date for the commencement of the special session that is 15 or fewer days after the date on which the Governor issues the proclamation calling for the special session [.] ; or

             (2) The date on which the Secretary of State receives one or more substantially similar petitions signed, in the aggregate, by the required number of members of the Legislature calling for the special session and ending 15 days after the final adjournment of the special session if the members set a date on or before which the Legislature is to convene the special session that is 15 or fewer days after the date on which the Secretary of State receives the petitions.

      2.  A person shall not make or commit to make a contribution or commitment prohibited by subsection 1.

      3.  A person shall not accept a contribution on behalf of another person to avoid the prohibitions of this section.

      Sec. 42. NRS 439B.220 is hereby amended to read as follows:

      439B.220  The Committee may:

      1.  Review and evaluate the quality and effectiveness of programs for the prevention of illness.

      2.  Review and compare the costs of medical care among communities in Nevada with similar communities in other states.

      3.  Analyze the overall system of medical care in the State to determine ways to coordinate the providing of services to all members of society, avoid the duplication of services and achieve the most efficient use of all available resources.

      4.  Examine the business of providing insurance, including the development of cooperation with health maintenance organizations and organizations which restrict the performance of medical services to certain physicians and hospitals, and procedures to contain the costs of these services.

      5.  Examine hospitals to:

      (a) Increase cooperation among hospitals;

      (b) Increase the use of regional medical centers; and

      (c) Encourage hospitals to use medical procedures which do not require the patient to be admitted to the hospital and to use the resulting extra space in alternative ways.

      6.  Examine medical malpractice.

      7.  Examine the system of education to coordinate:

      (a) Programs in health education, including those for the prevention of illness and those which teach the best use of available medical services; and

      (b) The education of those who provide medical care.

      8.  Review competitive mechanisms to aid in the reduction of the costs of medical care.

 


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      9.  Examine the problem of providing and paying for medical care for indigent and medically indigent persons, including medical care provided by physicians.

      10.  Examine the effectiveness of any legislation enacted to accomplish the purpose of restraining the costs of health care while ensuring the quality of services, and its effect on the subjects listed in subsections 1 to 9, inclusive.

      11.  Determine whether regulation by the State will be necessary in the future by examining hospitals for evidence of:

      (a) Degradation or discontinuation of services previously offered, including without limitation, neonatal care, pulmonary services and pathology services; or

      (b) A change in the policy of the hospital concerning contracts,

Κ as a result of any legislation enacted to accomplish the purpose of restraining the costs of health care while ensuring the quality of services.

      12.  Study the effect of the acuity of the care provided by a hospital upon the revenues of the hospital and upon limitations upon that revenue.

      13.  Review the actions of the Director in administering the provisions of this chapter and adopting regulations pursuant to those provisions. The Director shall report to the Committee concerning any regulations proposed or adopted pursuant to this chapter.

      14.  Identify and evaluate, with the assistance of an advisory group, the alternatives to institutionalization for providing long-term care, including, without limitation:

      (a) An analysis of the costs of the alternatives to institutionalization and the costs of institutionalization for persons receiving long-term care in this State;

      (b) A determination of the effects of the various methods of providing long-term care services on the quality of life of persons receiving those services in this State;

      (c) A determination of the personnel required for each method of providing long-term care services in this State; and

      (d) A determination of the methods for funding the long-term care services provided to all persons who are receiving or who are eligible to receive those services in this State.

      15.  Evaluate, with the assistance of an advisory group, the feasibility of obtaining a waiver from the Federal Government to integrate and coordinate acute care services provided through Medicare and long-term care services provided through Medicaid in this State.

      16.  Evaluate, with the assistance of an advisory group, the feasibility of obtaining a waiver from the Federal Government to eliminate the requirement that elderly persons in this State impoverish themselves as a condition of receiving assistance for long-term care.

      17.  Conduct investigations and hold hearings in connection with its review and analysis [.] and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act.

      18.  Apply for any available grants and accept any gifts, grants or donations to aid the Committee in carrying out its duties pursuant to this chapter.

      19.  Direct the Legislative Counsel Bureau to assist in its research, investigations, review and analysis.

 


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      20.  Recommend to the Legislature as a result of its review any appropriate legislation.

      21.  Prescribe duties and make requests, in addition to those set forth in NRS 439B.250, of the Nevada Academy of Health established pursuant to that section.

      Sec. 43. NRS 459.0085 is hereby amended to read as follows:

      459.0085  1.  There is hereby created a Committee on High-Level Radioactive Waste. It is a committee of the Legislature composed of:

      (a) Four members of the Senate, appointed by the Majority Leader of the Senate.

      (b) Four members of the Assembly, appointed by the Speaker.

      2.  The Legislative Commission shall review and approve the budget and work program for the Committee and any changes to the budget or work program. The Legislative Commission shall select a Chair and a Vice Chair from the members of the Committee.

      3.  Except as otherwise ordered by the Legislative Commission, the Committee shall meet not earlier than November 1 of each odd-numbered year and not later than August 31 of the following even-numbered year at the call of the Chair to study and evaluate:

      (a) Information and policies regarding the location in this State of a facility for the disposal of high-level radioactive waste;

      (b) Any potentially adverse effects from the construction and operation of a facility and the ways of mitigating those effects; and

      (c) Any other policies relating to the disposal of high-level radioactive waste.

      4.  The Committee may conduct investigations and hold hearings in connection with its functions and duties and exercise any of the investigative powers set forth in sections 6 to 13, inclusive, of this act.

      5.  The Committee shall report the results of its studies and evaluations to the Legislative Commission and the Interim Finance Committee at such times as the Legislative Commission or the Interim Finance Committee may require.

      [5.]6.  The Committee may recommend any appropriate legislation to the Legislature and the Legislative Commission.

      [6.]7.  The Director of the Legislative Counsel Bureau shall provide a Secretary for the Committee on High-Level Radioactive Waste.

      8.  Except during a regular or special session of the Legislature, each member of the Committee is entitled to receive the compensation provided for a majority of the members of the Legislature during the first 60 days of the preceding regular session for each day or portion of a day during which the member attends a Committee meeting or is otherwise engaged in the work of the Committee plus the per diem allowance provided for state officers and employees generally and the travel expenses provided pursuant to NRS 218A.655. Per diem allowances, salary and travel expenses of members of the Committee must be paid from the Legislative Fund.

      Sec. 44. NRS 218E.455, 218E.460, 218E.530, 218E.535, 218E.575, 218E.580, 218E.620, 218E.725, 218E.730, 218E.765, 218E.770, 439B.230 and 439B.240 are hereby repealed.

      Sec. 45.  This act becomes effective upon passage and approval.

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CHAPTER 551, SB 228

Senate Bill No. 228–Senator Parks (by request)

 

CHAPTER 551

 

[Approved: June 13, 2013]

 

AN ACT relating to public servants; revising provisions relating to public officers and employees; revising provisions relating to ethics in government and the enforcement of such provisions; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      This bill makes various changes to provisions relating to public officers and employees and the administration of the Nevada Ethics in Government Law by the Commission on Ethics. (Chapter 281A of NRS)

      Sections 18-24 and 30-32.5 of this bill enact and revise various definitions in the Ethics Law. Section 19 revises and makes applicable throughout the Ethics Law the existing definition of “commitment in a private capacity to the interests of others” in NRS 281A.420.

      Section 23 defines “pecuniary interest” for the Ethics Law, and sections 40.3, 41 and 42.5 of this bill require proof of a significant personal or pecuniary interest in defining various types of ethical conflicts, so that a de minimis or insignificant personal or pecuniary interest does not create a conflict of interest, require disqualification or abstention, or provide just or sufficient cause for an ethics investigation or violation. (NRS 281A.400, 281A.420, 281A.430)

      Sections 24.5 and 32.3 of this bill establish that a president of a state university, college or community college, a superintendent of a county school district, and a county manager or city manager are designated as public officers for the purposes of the Ethics Law. (NRS 281A.160)

      Section 25 of this bill enacts provisions for computing periods of time prescribed or allowed under the Ethics Law. Section 27 of this bill authorizes the Commission to apply for and accept grants, contributions, services and money for the purposes of carrying out the Ethics Law.

      Section 27.3 of this bill requires the Commission, when disposing of a request for an opinion by stipulation, agreed settlement or consent order, to treat comparable situations in a comparable manner and ensure that the disposition of a request for an opinion bears a reasonable relationship to the severity of the violation or alleged violation of the Ethics Law. Section 27.5 of this bill requires the Commission to consider various aggravating and mitigating factors when determining whether a violation of the Ethics Law is a willful violation and, if so, the amount of any civil penalty to be imposed for such a willful violation of the Ethics Law. Section 27.5 also requires the Commission, when applying these factors, to treat comparable situations in a comparable manner and to ensure that the disposition of the matter bears a reasonable relationship to the severity of the violation.

      Sections 33-37 of this bill make various changes concerning the operation of the Commission and the duties of the Executive Director of the Commission and the Commission Counsel. Those changes include: (1) adjusting the eligibility requirements for certain members of the Commission; (2) requiring the Chair of the Commission to designate a qualified person to perform the duties of the Executive Director if the Executive Director is disqualified or unable to act on a particular matter; (3) revising the administration of the assessments paid by cities and counties in semiannual installments to the Commission; and (4) authorizing the Commission to adopt procedural regulations that are necessary and proper to carry out the Ethics Law. (NRS 281A.200, 281A.240, 281A.260, 281A.270, 281A.290)

 

 


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      Section 38 of this bill directs public officers and employees who request the issuance of a subpoena on their behalf in ethics proceedings to serve the subpoena in the manner provided in the Nevada Rules of Civil Procedure and to pay the costs of such service. (NRS 281A.300)

      Sections 40.3-44 of this bill make various changes to provisions in the Ethics Law, including provisions relating to conflicts of interests for public officers and employees, disclosures and abstentions, the rendering of opinions and conduct of investigations by the Commission and the duties of specialized and local ethics committees. (NRS 281A.400, 281A.410, 281A.420, 281A.430, 281A.440, 281A.470)

      Section 40.5 prohibits a member of a local legislative body from representing or counseling a private person for compensation before another local agency whose territorial jurisdiction includes any part of the same county in which the member serves. However, section 40.5 allows the Commission to provide the member with relief from strict application of the prohibition if certain conditions are met. (NRS 281A.410)

      With certain exceptions, the Ethics Law prohibits a public officer or employee from bidding on or entering into a contract between a governmental agency and any business entity in which the public officer or employee has a significant pecuniary interest. Section 42.5 allows the Commission to provide a public officer or employee with relief from strict application of the prohibition if certain conditions are met. (NRS 281A.430)

      Sections 42.5 and 62 of this bill move, revise and remove certain provisions of the Ethics Law that regulate when a member of a local legislative body may sell goods or services to his or her local agency as the sole source of supply within the area served by the local agency. (NRS 281A.430, 281A.530) Section 42.5 prohibits such a member from selling goods or services to his or her local agency unless certain conditions are met, but section 42.5 also allows the Commission to provide the member with relief from strict application of the prohibition. Section 62 repeals an existing provision of the Ethics Law regulating such “sole source” transactions because under this bill, “sole source” transactions are regulated by section 42.5.

      Sections 16.3, 16.5 and 57-61 of this bill make conforming changes to other provisions of existing law that restrict various public officers and employees from being personally interested in or benefiting from a contract with a governmental agency. (NRS 245.075, 268.384, 269.071, 269.072, 281.221, 281.230, 332.800)

      Section 45 of this bill revises the “safe harbor” provision of the Ethics Law to provide that a public officer or employee does not commit a willful violation if: (1) the public officer or employee relied in good faith upon the advice of the legal counsel retained by his or her public body, agency or employer; and (2) his or her act or failure to act was not contrary to a prior published opinion issued by the Commission. (NRS 281A.480)

      Section 46 of this bill provides new requirements relating to informing, educating and instructing public officers and employees concerning the statutory ethical standards and the duties of public officers and employees under the Ethics Law. (NRS 281A.500)

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Sections 1-16. (Deleted by amendment.)

      Sec. 16.3. NRS 281.221 is hereby amended to read as follows:

      281.221  1.  Except as otherwise provided in this section [,] and NRS 281A.430, it is unlawful for [any] a state officer , who is not a member of the Legislature subject to the restrictions set forth in NRS 218A.970, to:

      (a) Become a contractor under any contract or order for supplies or other kind of contract authorized by or for the State or any of its departments, or the Legislature or either of its houses, or to be interested, directly or indirectly, as principal, in any kind of contract so authorized.

 


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the Legislature or either of its houses, or to be interested, directly or indirectly, as principal, in any kind of contract so authorized.

      (b) Be interested in any contract made by the officer or to be a purchaser or interested in any purchase under a sale made by the officer in the discharge of the officer’s official duties.

      2.  [Any] A member of any board, commission or similar body who is engaged in the profession, occupation or business regulated by the board, commission or body may supply or contract to supply, in the ordinary course of [the member’s] his or her business, goods, materials or services to any state or local agency, except the board , [or] commission or body of which he or she is a member, if the member has not taken part in developing the contract plans or specifications and the member will not be personally involved in opening, considering or accepting offers.

      3.  A full- or part-time faculty member in the Nevada System of Higher Education may bid on or enter into a contract with a governmental agency, or may benefit financially or otherwise from a contract between a governmental agency and a private entity, if the contract complies with the policies established by the Board of Regents of the University of Nevada pursuant to NRS 396.255.

      4.  A state officer, other than an officer described in subsection 2 or 3, may bid on or enter into a contract with a governmental agency if the contracting process is controlled by rules of open competitive bidding, the sources of supply are limited, the officer has not taken part in developing the contract plans or specifications and the officer will not be personally involved in opening, considering or accepting offers.

      5.  Any contract made in violation of this section may be declared void at the instance of the State or of any other person interested in the contract except an officer prohibited from making or being interested in the contract.

      6.  [Any] A person [violating] who violates this section is guilty of a gross misdemeanor and shall forfeit his or her office.

      Sec. 16.5. NRS 281.230 is hereby amended to read as follows:

      281.230  1.  Except as otherwise provided in this section and NRS 218A.970, [281A.530] 281A.430 and 332.800, the following persons shall not, in any manner, directly or indirectly, receive any commission, personal profit or compensation of any kind resulting from any contract or other significant transaction in which the employing state, county, municipality, township, district or quasi-municipal corporation is in any way directly interested or affected:

      (a) State, county, municipal, district and township officers of the State of Nevada;

      (b) Deputies and employees of state, county, municipal, district and township officers; and

      (c) Officers and employees of quasi-municipal corporations.

      2.  A member of any board, commission or similar body who is engaged in the profession, occupation or business regulated by the board, commission or body may, in the ordinary course of his or her business, bid on or enter into a contract with any governmental agency, except the board , [or] commission or body of which he or she is a member, if the member has not taken part in developing the contract plans or specifications and the member will not be personally involved in opening, considering or accepting offers.

 

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