[Rev. 9/10/2021 11:34:14 AM]
κ2021 Statutes of Nevada, Page 2899κ
Senate Bill No. 429Committee on Finance
CHAPTER 470
[Approved: June 4, 2021]
AN ACT making a supplemental appropriation to the Office of the Attorney General for a projected shortfall related to extradition costs; and providing other matters properly relating thereto.
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. There is hereby appropriated from the State General Fund to the Office of the Attorney General the sum of $350,254 for the Office of Extradition Coordinator budget account to cover a projected shortfall related to extradition costs. This appropriation is supplemental to that made by section 4 of chapter 544, Statutes of Nevada 2019, as amended by section 18 of chapter 5, Statutes of Nevada 2020, 31st Special Session, at page 43.
Sec. 2. This act becomes effective upon passage and approval.
________
Senate Bill No. 425Committee on Finance
CHAPTER 471
[Approved: June 4, 2021]
AN ACT making a supplemental appropriation to the Division of Internal Audits of the Office of Finance in the Office of the Governor for an unanticipated shortfall related to payroll; and providing other matters properly relating thereto.
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. There is hereby appropriated from the State General Fund to the Division of Internal Audits of the Office of Finance in the Office of the Governor the sum of $76,807 for an unanticipated shortfall related to payroll. This appropriation is supplemental to that made by section 2 of chapter 544, Statutes of Nevada 2019, as amended by section 16 of chapter 5, Statutes of Nevada 2020, 31st Special Session, at page 42.
Sec. 2. This act becomes effective upon passage and approval.
________
κ2021 Statutes of Nevada, Page 2900κ
Senate Bill No. 423Committee on Finance
CHAPTER 472
[Approved: June 4, 2021]
AN ACT relating to the taxation of property; requiring the Department of Taxation to retain a commission as compensation for the costs of collecting property taxes on certain property of an interstate or intercounty nature; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Under existing law, the Nevada Tax Commission determines the valuation of certain property of an interstate or intercounty nature for the purposes of the assessment of property taxes on such property. (NRS 361.320, 361.321) Existing law requires the Department of Taxation to: (1) enter the assessed valuations established by the Nevada Tax Commission on the central assessment roll; and (2) bill each taxpayer for the tax due. Existing law further requires: (1) the tax to be paid to the Department; and (2) the Department to apportion and remit the taxes due to each county. (NRS 361.3205) This bill requires that, as compensation to the State for the costs of collecting the taxes, the Department must, before apportioning and remitting the taxes due to each county, transmit an amount of the taxes as specified by the Legislature to the State Treasurer for deposit to the credit of the Department. Under this bill, the Department is required to spend such money in accordance with its work program.
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 361.3205 is hereby amended to read as follows:
361.3205 1. The Department shall enter on a central assessment roll the assessed valuation established for such classes of property as are enumerated in NRS 361.320, except for private car lines, together with the apportionment of each county of the assessment.
2. On or before January 1 of the fiscal year in which the assessment is made, the Department shall mail to each taxpayer on the central assessment roll a notice of the amount of the taxpayers assessment. The Department shall bill each such taxpayer pursuant to subsection 3 of NRS 361.480. Except as otherwise provided in subsection 3, the tax must be paid to the Department pursuant to NRS 361.483.
3. If the amount of any tax required by NRS 361.320 or 361.321 for property placed on the unsecured tax roll is not paid within 10 days after it is due, it is delinquent and must be collected as other delinquent taxes are collected by law, together with a penalty of 10 percent of the amount of the tax which is owed, as determined by the Department, in addition to the tax, plus interest at the rate of 1 percent per month, or fraction of a month, from the date the tax was due until the date of payment. The Department shall deposit all amounts paid as a penalty or interest pursuant to this subsection in the State General Fund.
4. Upon receipt, the Department shall :
κ2021 Statutes of Nevada, Page 2901 (CHAPTER 472, SB 423)κ
(a) As compensation to the State for the costs of collecting the taxes, transmit the sum the Legislature specifies from the remittances made to the Department pursuant to this section to the State Treasurer for deposit to the credit of the Department. The deposited money must be expended by the Department in accordance with its work program.
(b) From the remittances made pursuant to this section, less the amount transmitted pursuant to paragraph (a), apportion and promptly remit all taxes due each county.
5. As an alternative to any other method of recovering delinquent taxes provided by this chapter, the Attorney General may bring a civil action in a court of competent jurisdiction to recover delinquent taxes due under this section in the manner provided in NRS 361.560.
Sec. 2. Notwithstanding the provisions of NRS 218D.430 and 218D.435, a committee, other than the Assembly Standing Committee on Ways and Means and the Senate Standing Committee on Finance, may vote on this act before the expiration of the period prescribed for the return of a fiscal note in NRS 218D.475. This section applies retroactively from and after March 22, 2021.
Sec. 3. This act becomes effective on July 1, 2021.
________
Senate Bill No. 458Committee on Finance
CHAPTER 473
[Approved: June 4, 2021]
AN ACT relating to education; ensuring sufficient funding for K-12 public education for the 2021-2023 biennium; apportioning the State Education Fund for the 2021-2023 biennium; authorizing certain expenditures; making appropriations relating to base per-pupil funding, weighted funding and other educational purposes; revising provisions relating to the Pupil-Centered Funding Plan; and providing other matters properly relating thereto.
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. 1. The total public support for school districts, charter schools and university schools for profoundly gifted pupils for Fiscal Year 2021-2022 is an estimated average of $10,204 per pupil.
2. As used in this section, total public support includes all money appropriated directly for the support of the public schools in this State, including, without limitation, the statewide base per pupil funding amount, adjusted base per pupil funding, additional weighted funding and all money appropriated for a specific program or purpose in support of the public schools, and all other money projected to be received for the support of the public schools from taxes, fees and other revenues authorized by state law, excluding any money provided by the Federal Government directly to a public school or school district or otherwise provided on a one-time basis in response to an emergency.
κ2021 Statutes of Nevada, Page 2902 (CHAPTER 473, SB 458)κ
excluding any money provided by the Federal Government directly to a public school or school district or otherwise provided on a one-time basis in response to an emergency.
Sec. 2. 1. The total public support for school districts, charter schools and university schools for profoundly gifted pupils for Fiscal Year 2022-2023 is an estimated average of $10,290 per pupil.
2. As used in this section, total public support includes all money appropriated directly for the support of the public schools in this State, including, without limitation, the statewide base per pupil funding amount, adjusted base per pupil funding, additional weighted funding and all money appropriated for a specific program or purpose in support of the public schools, and all other money projected to be received for the support of the public schools from taxes, fees and other revenues authorized by state law, excluding any money provided by the Federal Government directly to a public school or school district or otherwise provided on a one-time basis in response to an emergency.
Sec. 3. 1. There is hereby appropriated from the State General Fund to the Pupil-Centered Funding Plan Account in the State Education Fund:
For the Fiscal Year 2021-2022..................................... $1,396,939,483
For the Fiscal Year 2022-2023..................................... $1,223,780,931
2. The Legislature declares that the money appropriated by this section is sufficient, when combined with other money reasonably available for this purpose, to fund the operation of the public schools in this State for kindergarten through grade 12 for the next ensuing biennium for the population reasonably estimated for that biennium.
3. The money appropriated by subsection 1 must be:
(a) Expended in accordance with NRS 353.150 to 353.246, inclusive, concerning the allotment, transfer, work program and budget; and
(b) Work-programmed for the 2 separate fiscal years of the 2021-2023 biennium, as required by NRS 353.215. Work programs may be revised with the approval of the Governor upon the recommendation of the Director of the Office of Finance in the Office of the Governor.
4. Transfers to and allotments from must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate consideration of the merits of each request.
Sec. 4. 1. Expenditure from or transfer to the Pupil-Centered Funding Plan Account in the State Education Fund of $3,013,387,160 from money in the State Education Fund that was not appropriated from the State General Fund is hereby authorized during Fiscal Year 2021-2022.
2. Expenditure from or transfer to the Pupil-Centered Funding Plan Account in the State Education Fund of $3,239,583,349 from money in the State Education Fund that was not appropriated from the State General Fund is hereby authorized during Fiscal Year 2022-2023.
3. The money authorized to be expended or transferred by subsections 1 and 2 must be expended or transferred in accordance with NRS 353.150 to 353.246, inclusive, concerning the allotment, transfer, work program and budget. Transfers to and allotments from must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate consideration of the merits of each request.
Sec. 5. 1. For each respective school district, the Department of Education shall transfer from the Pupil-Centered Funding Plan Account in the State Education Fund the following sums for food services and transportation for pupils and any other similar service for Fiscal Year 2021-2022:
κ2021 Statutes of Nevada, Page 2903 (CHAPTER 473, SB 458)κ
the State Education Fund the following sums for food services and transportation for pupils and any other similar service for Fiscal Year 2021-2022:
Food Services Transportation
Carson City $525,622 $2,338,121
Churchill $125,376 $1,980,140
Clark $363,705 $146,298,844
Douglas $0 $3,441,571
Elko $344,693 $4,255,427
Esmeralda $48,943 $326,275
Eureka $396,459 $431,253
Humboldt $56,081 $1,608,763
Lander $37,240 $430,551
Lincoln $69,515 $767,800
Lyon $0 $4,699,837
Mineral $72,495 $353,442
Nye $0 $3,847,541
Pershing $60,477 $718,387
Storey $22,843 $543,585
Washoe $0 $25,958,402
White Pine $82,178 $1,086,215
2. For each respective school district, charter school and university school for profoundly gifted pupils, the Department of Education shall transfer from the Pupil-Centered Funding Plan Account in the State Education Fund the following sums which may be used for local funding for pupils with disabilities for Fiscal Year 2021-2022:
Carson City $7,547,383
Churchill $1,862,019
Clark $350,169,543
Douglas $3,785,594
Elko $5,859,740
Esmeralda $44,311
Eureka $198,615
Humboldt $2,374,930
Lander $732,955
Lincoln $327,715
Lyon $8,182,953
Mineral $215,665
Nye $7,569,572
Pershing $456,815
Storey $54,667
Washoe $45,738,073
White Pine $517,218
Charter Schools, combined $6,415,159
University Schools, combined $0
3. The statewide base per pupil funding amount for Fiscal Year 2021-2022 is $6,980 per pupil.
4. For each respective school district, the adjusted base per pupil funding amount for Fiscal Year 2021-2022 is:
κ2021 Statutes of Nevada, Page 2904 (CHAPTER 473, SB 458)κ
Carson City $7,763
Churchill $8,093
Clark $7,264
Douglas $9,177
Elko $9,279
Esmeralda $22,360
Eureka $33,746
Humboldt $9,713
Lander $10,547
Lincoln $13,725
Lyon $8,532
Mineral $12,286
Nye $8,764
Pershing $11,794
Storey $23,274
Washoe $7,222
White Pine $11,298
5. For each charter school or university school for profoundly gifted pupils, the statewide base per pupil funding amount for each pupil enrolled full-time in a program of distance education provided by such a school in Fiscal Year 2021-2022 is $6,980. For each such school which provides in-person instruction in each of the respective counties, the adjusted base per pupil funding amount for Fiscal Year 2021-2022, before application of the appropriate attendance area adjustment, is:
Carson City $6,980
Churchill $7,169
Clark $7,197
Douglas $6,980
Elko $7,169
Esmeralda $7,169
Eureka $7,169
Humboldt $7,169
Lander $7,169
Lincoln $7,169
Lyon $6,980
Mineral $7,169
Nye $7,169
Pershing $7,169
Storey $6,980
Washoe $6,980
White Pine $7,169
6. The Department of Education shall determine the final adjusted base per pupil funding amount for Fiscal Year 2021-2022 for a charter school or university school for profoundly gifted pupils by applying the appropriate attendance area adjustment for the location of the charter school or university school within a county to the amount established by subsection 5 for the county in which the charter school or university school is located. For a charter school or university school in each of the following counties, the final adjusted base per pupil funding amount for Fiscal Year 2021-2022 shall not exceed:
κ2021 Statutes of Nevada, Page 2905 (CHAPTER 473, SB 458)κ
Carson City $7,494
Churchill $8,093
Clark $7,197
Elko $7,715
Washoe $6,980
White Pine $10,367
7. The additional weighted funding for each pupil estimated to be enrolled in a public school in each respective category for Fiscal Year 2021-2022, expressed as a multiplier to the statewide base per pupil funding amount, is:
For English learners 0.24
For at-risk pupils 0.03
For gifted and talented pupils 0.12
8. For each respective school district, charter school and university school for profoundly gifted pupils, the Department of Education shall transfer from the Pupil-Centered Funding Plan Account in the State Education Fund the following sums for additional weighted funding at the levels established by subsection 7 for Fiscal Year 2021-2022:
English At-Risk Gifted and
Learners Pupils Talented
Pupils
Carson City $1,430,707 $669,135 $354,238
Churchill $237,020 $590,618 $0
Clark $61,950,498 $45,419,303 $3,853,983
Douglas $371,245 $156,708 $128,814
Elko $1,132,544 $1,614,769 $128,814
Esmeralda $17,310 $8,342 $0
Eureka $10,159 $1,192 $0
Humboldt $488,403 $362,218 $0
Lander $76,827 $79,247 $0
Lincoln $54,252 $45,284 $0
Lyon $645,675 $834,621 $29,317
Mineral $76,827 $98,035 $0
Nye $532,886 $986,130 $0
Pershing $88,651 $58,989 $0
Storey $13,704 $13,704 $0
Washoe $10,976,479 $4,371,586 $1,462,520
White Pine $24,519 $168,129 $0
Charter Schools, combined $6,898,100 $4,845,863 $714,507
University Schools, combined $0 $0 $0
9. Pursuant to the expression of legislative intent in subsection 3 of NRS 387.121, as amended by section 20 of this act, the Carson City and Douglas, Elko, Esmeralda, Eureka, Humboldt, Lincoln, Pershing and Storey County school districts may each reapportion money received pursuant to subsections 4 and 8 in a manner similar to the apportionment of such money in the fiscal year ending on June 30, 2020, to ensure that each pupil in the district receives a reasonably equal educational opportunity.
Sec. 6. 1. For each respective school district, the Department of Education shall transfer from the Pupil-Centered Funding Plan Account in the State Education Fund the following sums for food services and transportation for pupils and any other similar service for Fiscal Year 2022-2023:
κ2021 Statutes of Nevada, Page 2906 (CHAPTER 473, SB 458)κ
the State Education Fund the following sums for food services and transportation for pupils and any other similar service for Fiscal Year 2022-2023:
Food Services Transportation
Carson City $526,080 $2,340,160
Churchill $125,485 $1,982,861
Clark $364,022 $146,426,415
Douglas $0 $3,444,572
Elko $344,994 $4,259,138
Esmeralda $48,985 $326,559
Eureka $396,805 $431,629
Humboldt $56,130 $1,610,165
Lander $37,273 $430,926
Lincoln $69,576 $768,470
Lyon $0 $4,703,936
Mineral $72,558 $353,750
Nye $0 $3,850,896
Pershing $60,530 $719,013
Storey $22,863 $544,059
Washoe $0 $25,981,037
White Pine $82,250 $1,087,162
2. For each respective school district, charter school and university school for profoundly gifted pupils, the Department of Education shall transfer from the Pupil-Centered Funding Plan Account in the State Education Fund the following sums which may be used for local funding for pupils with disabilities for Fiscal Year 2022-2023:
Carson City $7,553,965
Churchill $1,863,643
Clark $350,474,887
Douglas $3,788,895
Elko $5,864,849
Esmeralda $44,350
Eureka $198,789
Humboldt $2,377,001
Lander $733,594
Lincoln $328,001
Lyon $8,190,088
Mineral $215,853
Nye $7,576,172
Pershing $457,214
Storey $54,715
Washoe $45,777,956
White Pine $517,669
Charter Schools, combined $6,420,753
University Schools, combined $0
3. The statewide base per pupil funding amount for Fiscal Year 2022-2023 is $7,074 per pupil.
4. For each respective school district, the adjusted base per pupil funding amount for Fiscal Year 2022-2023 is:
κ2021 Statutes of Nevada, Page 2907 (CHAPTER 473, SB 458)κ
Carson City $7,753
Churchill $8,197
Clark $7,361
Douglas $9,165
Elko $9,267
Esmeralda $22,331
Eureka $33,701
Humboldt $9,701
Lander $10,683
Lincoln $13,707
Lyon $8,644
Mineral $12,447
Nye $8,881
Pershing $11,779
Storey $23,243
Washoe $7,318
White Pine $11,445
5. For each charter school or university school for profoundly gifted pupils, the statewide base per pupil funding amount for each pupil enrolled full-time in a program of distance education provided by such a school in Fiscal Year 2022-2023 is $7,074. For each such school which provides in-person instruction in each of the respective counties, the adjusted base per pupil funding amount for Fiscal Year 2022-2023 is:
Carson City $7,074
Churchill $7,265
Clark $7,293
Douglas $7,074
Elko $7,265
Esmeralda $7,265
Eureka $7,265
Humboldt $7,265
Lander $7,265
Lincoln $7,265
Lyon $7,074
Mineral $7,265
Nye $7,265
Pershing $7,265
Storey $7,074
Washoe $7,074
White Pine $7,265
6. The Department of Education shall determine the final adjusted base per pupil funding amount for Fiscal Year 2022-2023 for a charter school or university school for profoundly gifted pupils by applying the appropriate attendance area adjustment for the location of the charter school or university school within a county to the amount established by subsection 5 for the county in which the charter school or university school is located. For a charter school or university school in each of the following counties, the final adjusted base per pupil funding amount for Fiscal Year 2022-2023 shall not exceed:
κ2021 Statutes of Nevada, Page 2908 (CHAPTER 473, SB 458)κ
Carson City $7,594
Churchill $8,197
Clark $7,293
Elko $7,818
Washoe $7,074
White Pine $10,501
7. The additional weighted funding for each pupil estimated to be enrolled in a public school in each respective category for Fiscal Year 2022-2023, expressed as a multiplier to the statewide base per pupil funding amount, is:
For English learners 0.23
For at-risk pupils 0.03
For gifted and talented pupils 0.12
8. For each respective school district, charter school and university school for profoundly gifted pupils, the Department of Education shall transfer from the Pupil-Centered Funding Plan Account in the State Education Fund the following sums for additional weighted funding at the levels established by subsection 7 for Fiscal Year 2022-2023:
English At-Risk Gifted and
Learners Pupils Talented
Pupils
Carson City $1,431,955 $669,719 $354,547
Churchill $237,227 $591,133 $0
Clark $62,004,518 $45,458,908 $3,905,636
Douglas $371,568 $156,844 $128,926
Elko $1,133,531 $1,616,177 $128,926
Esmeralda $17,325 $8,349 $0
Eureka $10,168 $1,193 $0
Humboldt $488,829 $362,534 $0
Lander $76,894 $79,316 $0
Lincoln $54,299 $45,324 $0
Lyon $646,238 $835,349 $29,710
Mineral $76,894 $98,120 $0
Nye $533,351 $986,990 $0
Pershing $88,729 $59,040 $0
Storey $13,716 $13,716 $0
Washoe $10,986,051 $4,375,398 $1,482,121
White Pine $24,541 $168,275 $0
Charter Schools, combined $6,904,115 $4,850,088 $724,083
University Schools, combined $0 $0 $0
9. Pursuant to the expression of legislative intent in subsection 3 of NRS 387.121, as amended by section 20 of this act, the Carson City and Douglas, Elko, Esmeralda, Eureka, Humboldt, Lincoln, Pershing and Storey County school districts may each reapportion money received pursuant to subsections 4 and 8 in a manner similar to the apportionment of such money in the fiscal year ending on June 30, 2020, to ensure that each pupil in the district receives a reasonably equal educational opportunity.
κ2021 Statutes of Nevada, Page 2909 (CHAPTER 473, SB 458)κ
in the fiscal year ending on June 30, 2020, to ensure that each pupil in the district receives a reasonably equal educational opportunity.
Sec. 7. 1. There is hereby appropriated from the State General Fund to the Account for State Special Education Services created by NRS 388.5243 for the support of pupils with disabilities the following amounts:
For the Fiscal Year 2021-2022............................................ $224,704,022
For the Fiscal Year 2022-2023............................................ $230,258,569
2. Expenditure of $1,999,900 in both Fiscal Year 2021-2022 and Fiscal Year 2022-2023 from money in the Account for State Special Education Services created by NRS 388.5243 that was not appropriated from the State General Fund is hereby authorized for expenditure for the support of pupils with disabilities.
3. The Department of Education shall transfer from the Account for State Special Education Services created by NRS 388.5243 the following sums for pupils with disabilities:
For the Fiscal Year 2021-2022............................................ $223,203,922
For the Fiscal Year 2022-2023............................................ $228,758,469
4. The money transferred pursuant to subsection 3 must be used only to fund the school districts, charter schools and university schools for profoundly gifted pupils for the enrollment of pupils with disabilities in accordance with the funding multiplier calculated by the Department of Education pursuant to subsection 1 of NRS 387.122, as amended by section 21 of this act.
5. The Department of Education shall transfer from the Account for State Special Education Services created by NRS 388.5243 the following sums for pupils with disabilities:
For the Fiscal Year 2021-2022................................................. $1,500,000
For the Fiscal Year 2022-2023................................................. $1,500,000
6. The money transferred pursuant to subsection 5 must be used only to fund the school districts, charter schools and university schools for profoundly gifted pupils for the enrollment of pupils with disabilities in accordance with the funding multiplier calculated by the Department of Education pursuant to subsection 2 of NRS 387.122, as amended by section 21 of this act.
7. The Department of Education may transfer from the Account for State Special Education Services created by NRS 388.5243 the following sums for pupils with disabilities:
For the Fiscal Year 2021-2022................................................. $2,000,000
For the Fiscal Year 2022-2023................................................. $2,000,000
8. The money transferred pursuant to subsection 7 must be used only to carry out the purposes of subsection 4 of NRS 388.5243.
9. Any remaining balance of the sums transferred pursuant to subsections 3 and 5 for Fiscal Year 2021-2022 and Fiscal Year 2022-2023 must not be committed for expenditure after June 30 of each fiscal year and must be reverted to the State General Fund on or before September 16, 2022, and September 15, 2023, for each fiscal year respectively.
Sec. 8. 1. There is hereby appropriated from the State General Fund to the Other State Education Programs Account in the State General Fund the following sums:
For the Fiscal Year 2021-2022.............................................. $37,432,458
For the Fiscal Year 2022-2023.............................................. $37,432,458
κ2021 Statutes of Nevada, Page 2910 (CHAPTER 473, SB 458)κ
2. The money appropriated by subsection 1 must be expended in accordance with NRS 353.150 to 353.246, inclusive, concerning the allotment, transfer, work program and budget. Transfers to and allotments from must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate consideration of the merits of each request.
3. Expenditure of $252,098 by the Department of Education from money in the Other State Education Programs Account that was not appropriated from the State General Fund is hereby authorized during Fiscal Year 2022-2023.
4. The Department of Education shall transfer from the Other State Education Programs Account the sum of $19,260,398 for both Fiscal Year 2021-2022 and Fiscal Year 2022-2023 for distribution by the Superintendent of Public Instruction to county school districts for the support of courses which are approved by the Department of Education as meeting the course of study for an adult standard high school diploma as approved by the State Board of Education. In each fiscal year of the 2021-2023 biennium, the sum transferred must be allocated among the various school districts in accordance with a plan or formula developed by the Department of Education to ensure that the money is distributed equitably and in a manner that permits accounting for the expenditures of school districts.
5. The Department of Education shall, not later than November 1, 2021, and November 1, 2022, provide a written report to the Governor, the Legislative Committee on Education and the Director of the Legislative Counsel Bureau that describes, for the immediately preceding fiscal year, each expenditure made from the amount transferred pursuant to subsection 4 or pursuant to subsection 4 of section 19 of chapter 376, Statutes of Nevada 2019, as amended by section 67 of chapter 5, Statutes of Nevada 2020, 31st Special Session, at page 66, as applicable, and the performance results of the participants of the Adult High School Diploma program.
6. Any remaining balance of the allocations made pursuant to subsection 4 for Fiscal Year 2021-2022 must be added to the money received by the school districts for Fiscal Year 2022-2023 and may be expended as that money is expended. Any remaining balance of the allocations made pursuant to subsection 4 for Fiscal Year 2022-2023, including any such money added from the previous fiscal year, must not be committed for expenditure after June 30, 2023, and must be reverted to the State General Fund on or before September 15, 2023.
7. The money appropriated by subsection 1 to finance specific programs as outlined in this subsection is available for both Fiscal Year 2021-2022 and Fiscal Year 2022-2023 and may be transferred from one fiscal year to the other with the approval of the Interim Finance Committee upon the recommendation of the Governor as follows:
(a) A total of $3,865,513 in Fiscal Year 2021-2022 and $3,865,513 in Fiscal Year 2022-2023 for the Jobs for Americas Graduates Program. Of the total transferred in each fiscal year pursuant to this paragraph, expenditure of an amount up to $252,098 in each fiscal year is contingent upon matching money being provided from sources other than the appropriation in subsection 1. The Department of Education shall not distribute the money identified in this paragraph to the Jobs for Americas Graduates Program until an equivalent amount of matching money has been committed.
(b) A total of $300,000 in both Fiscal Year 2021-2022 and Fiscal Year 2022-2023 to the Department of Education for transfer to the Clark CountyPublic Education Foundation, Inc., for the implementation and operation of educational leadership training programs.
κ2021 Statutes of Nevada, Page 2911 (CHAPTER 473, SB 458)κ
Public Education Foundation, Inc., for the implementation and operation of educational leadership training programs. Expenditure of this money is contingent upon matching money being provided from sources other than the appropriation in subsection 1. The Department of Education shall not distribute any money for the implementation and operation of educational leadership training programs until an equivalent amount of matching money has been committed.
8. Upon acceptance of the money transferred pursuant to paragraph (b) of subsection 7, the Clark County Public Education Foundation, Inc., agrees to:
(a) Prepare and transmit a report to the Interim Finance Committee on or before September 16, 2022, that describes each expenditure made from the money transferred pursuant to paragraph (b) of subsection 7 from the date on which the money was received by the Clark County Public Education Foundation, Inc., through June 30, 2022;
(b) Prepare and transmit a final report to the Interim Finance Committee on or before September 15, 2023, that describes each expenditure made from the money transferred pursuant to paragraph (b) of subsection 7 from the date on which the money was received by the Clark County Public Education Foundation, Inc., through June 30, 2023; and
(c) Upon request of the Legislative Commission, make available to the Legislative Auditor any of the books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise, of the Clark County Public Education Foundation, Inc., regardless of their form or location, that the Legislative Auditor deems necessary to conduct an audit of the use of the money transferred pursuant to paragraph (b) of subsection 7.
9. Any remaining balance of the sums transferred pursuant to subsection 7 must not be committed for expenditure after June 30, 2023, by the entity to which the money is transferred or any entity to which such money is granted or otherwise transferred in any manner, and any portion of the transferred money remaining must not be spent for any purpose after September 15, 2023.
10. The Department of Education shall transfer from the Other State Education Programs Account the sum of $13,543,822 in Fiscal Year 2021-2022 and $13,543,822 in Fiscal Year 2022-2023 for the award of grants for programs of career and technical education pursuant to NRS 388.393 and, notwithstanding the provisions of subsections 1, 2 and 3 of NRS 388.392, not for the use of leadership and training activities and pupil organizations.
11. Any remaining balance of the sums transferred pursuant to subsection 10 must not be committed for expenditure after June 30 of each fiscal year and must be reverted to the State General Fund on or before September 16, 2022, and September 15, 2023, for each fiscal year respectively.
12. The Department of Education shall transfer from the Other State Education Programs Account the sum of $462,725 in both Fiscal Year 2021-2022 and Fiscal Year 2022-2023 for the award of grants to support public broadcasting in this State.
13. Any remaining balance of the sums transferred pursuant to subsection 12 must not be committed for expenditure after June 30 of each fiscal year by the entity to which the money is transferred or any entity to which such money is granted or otherwise transferred in any manner, and any portion of the transferred money remaining must not be spent for any purpose after September 16, 2022, and September 15, 2023, for each fiscal year respectively.
κ2021 Statutes of Nevada, Page 2912 (CHAPTER 473, SB 458)κ
any portion of the transferred money remaining must not be spent for any purpose after September 16, 2022, and September 15, 2023, for each fiscal year respectively.
Sec. 9. 1. There is hereby appropriated from the State General Fund to the Professional Development Programs Account:
For the Fiscal Year 2021-2022................................................. $7,347,792
For the Fiscal Year 2022-2023................................................. $7,347,792
2. The money appropriated by subsection 1 must be expended in accordance with NRS 353.150 to 353.246, inclusive, concerning the allotment, transfer, work program and budget. Transfers to and allotments from must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate consideration of the merits of each request.
Sec. 10. 1. Of the sums appropriated by subsection 1 of section 9 of this act, the Department of Education shall transfer to the school districts specified in this subsection the following sums for Fiscal Year 2021-2022 and Fiscal Year 2022-2023:
School District 2021-2022 2022-2023
Clark County School District $3,855,876 $3,855,876
Elko County School District $1,210,837 $1,210,837
Washoe County School District $2,172,984 $2,172,984
TOTAL: $7,239,697 $7,239,697
2. A school district that receives a transfer of money pursuant to subsection 1 shall serve as fiscal agent for the respective regional training program for the professional development of teachers and administrators. As fiscal agent, each school district is responsible for the payment, collection and holding of all money received from this State for the maintenance and support of the regional training program for the professional development of teachers and administrators and the Nevada Early Literacy Intervention Program established and operated by the applicable governing body.
3. Any remaining balance of the transfers made pursuant to subsection 1 for Fiscal Year 2021-2022 must be added to the money received by the school districts for Fiscal Year 2022-2023 and may be expended as that money is expended. Any remaining balance of the transfers made pursuant to subsection 1 for Fiscal Year 2022-2023, including any money added from the transfer for the previous fiscal year, must not be committed for expenditure after June 30, 2023, and must be reverted to the State General Fund on or before September 15, 2023.
Sec. 11. 1. Of the sums appropriated by subsection 1 of section 9 of this act, the Department of Education shall transfer to the Statewide Council for the Coordination of the Regional Training Programs created by NRS 391A.130 the sum of $100,000 in both Fiscal Year 2021-2022 and Fiscal Year 2022-2023 for additional training opportunities for educational administrators in Nevada.
2. The Statewide Council shall use the money:
(a) To disseminate research-based knowledge related to effective educational leadership behaviors and skills.
(b) To develop, support and maintain ongoing activities, programs, training and networking opportunities.
(c) For the purpose of providing additional training for educational administrators, including, without limitation, to pay:
(1) Travel expenses of administrators who attend the training program;
κ2021 Statutes of Nevada, Page 2913 (CHAPTER 473, SB 458)κ
(2) Travel and per diem expenses for any consultants contracted to provide additional training; and
(3) Any charges to obtain a conference room for the provision of the additional training.
(d) To supplement and not replace the money that the school district or the regional training program would otherwise expend for the training of administrators as described in this section.
3. Any remaining balance of the transfer made pursuant to subsection 1 for Fiscal Year 2021-2022 must be added to the money received by the Statewide Council for Fiscal Year 2022-2023 and may be expended as that money is expended. Any remaining balance of the transfer made pursuant to subsection 1 for Fiscal Year 2022-2023, including any money added from the transfer for the previous fiscal year, must not be committed for expenditure after June 30, 2023, and must be reverted to the State General Fund on or before September 15, 2023.
Sec. 12. 1. Of the sums appropriated by subsection 1 of section 9 of this act, the Department of Education may expend the sum of $100,000 in both Fiscal Year 2021-2022 and Fiscal Year 2022-2023 for additional training opportunities for educational administrators in Nevada.
2. The Department of Education shall use the money:
(a) To disseminate research-based knowledge related to effective educational leadership behaviors and skills.
(b) To develop, support and maintain ongoing activities, programs, training and networking opportunities.
(c) For the purpose of providing additional training for educational administrators, including, without limitation, to pay:
(1) Travel expenses of administrators who attend the training program;
(2) Travel and per diem expenses for any consultants contracted to provide additional training; and
(3) Any charges to obtain a conference room for the provision of the additional training.
(d) To supplement and not replace the money that the school district or the regional training program would otherwise expend for the training of administrators as described in this section.
3. Of the sums appropriated by subsection 1 of section 9 of this act, the sums of $100,000 in Fiscal Year 2021-2022 and $100,000 in Fiscal Year 2022-2023 are available for both Fiscal Year 2021-2022 and Fiscal Year 2022-2023 and may be transferred within the same budget account from one fiscal year to the other with the approval of the Interim Finance Committee upon the recommendation of the Governor.
Sec. 13. Of the sums appropriated by subsection 1 of section 9 of this act, the Department of Education may expend the sum of $8,095 in both Fiscal Year 2021-2022 and Fiscal Year 2022-2023 for the operating and travel costs associated with the Teacher of the Year program.
Sec. 14. 1. There is hereby appropriated from the State General Fund to the 1/5 Retirement Credit Purchase Program Account in the State General Fund to purchase one-fifth of a year of retirement service credit pursuant to section 5 of chapter 8, Statutes of Nevada 2007, 23rd Special Session, at page 18:
For the Fiscal Year 2021-2022.................................................... $459,849
For the Fiscal Year 2022-2023.................................................... $459,849
κ2021 Statutes of Nevada, Page 2914 (CHAPTER 473, SB 458)κ
2. The money appropriated by subsection 1 is available for either fiscal year with the approval of the Interim Finance Committee upon the recommendation of the Governor. Any remaining balance of those sums must not be committed for expenditure after June 30, 2023, and must be reverted to the State General Fund on or before September 15, 2023.
Sec. 15. 1. There is hereby appropriated from the State General Fund to the Teach Nevada Scholarship Program Account created by NRS 391A.575 to award grants to universities, colleges and other providers of an alternative licensure program that are approved to award Teach Nevada Scholarships pursuant to NRS 391A.585:
For the Fiscal Year 2021-2022................................................. $2,407,861
For the Fiscal Year 2022-2023................................................. $2,407,861
2. The money appropriated by subsection 1 must be expended in accordance with NRS 353.150 to 353.246, inclusive, concerning the allotment, transfer, work program and budget. Transfers to and allotments from must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate consideration of the merits of each request.
3. Expenditure of $3,991,383 in Fiscal Year 2021-2022 and $4,070,683 in Fiscal Year 2022-2023 from money in the Teach Nevada Scholarship Program Account that was not appropriated from the State General Fund is hereby authorized to award grants to universities, colleges and other providers of an alternative licensure program that are approved to award Teach Nevada Scholarships pursuant to NRS 391A.585.
4. For the purposes of accounting and reporting, the sum authorized for expenditure by subsection 3 is considered to be expended before any appropriation is made to the Teach Nevada Scholarship Program Account from the State General Fund.
Sec. 16. Any amount apportioned to a county school district pursuant to subsection 4 of NRS 362.170 in Fiscal Year 2020-2021 shall be deemed revenue in the State Education Fund for Fiscal Year 2021-2022.
Sec. 17. Any balance remaining in the Account for Programs for Innovation and the Prevention of Remediation created by NRS 387.1247, the Teachers School Supplies Assistance Account created by NRS 387.1253 or the Account for the New Nevada Education Funding Plan created by NRS 387.129 that has not been committed for expenditure before July 1, 2021, must be reverted to the State Education Fund.
Sec. 18. 1. Notwithstanding the provisions of subsection 3 of NRS 387.1223 to the contrary and except as otherwise provided in subsection 2, for Fiscal Year 2021-2022, if the enrollment of pupils in a school district or a charter school that is located within the school district based on the average daily enrollment of pupils during the quarter of the school year is less than or equal to 95 percent of the enrollment of pupils in the same school district or charter school based on the average daily enrollment of pupils during the same quarter of either of the 2 immediately preceding school years, the enrollment of pupils during the same quarter of the school year of the 2 immediately preceding school years with the higher enrollment must be used for purposes of making the monthly apportionments from the State Education Fund to that school district or charter school pursuant to NRS 387.124.
2. The provisions of subsection 1 and the provisions of subsection 3 of NRS 387.1223 do not apply to any decrease in enrollment of pupils in a charter school caused by an action of the sponsor of the charter school.
κ2021 Statutes of Nevada, Page 2915 (CHAPTER 473, SB 458)κ
Sec. 19. 1. The State Education Fund is hereby created as a special revenue fund to be administered by the Superintendent of Public Instruction for the purpose of supporting the operation of the public schools in this State.
2. The Education Stabilization Account is hereby created in the State Education Fund.
3. There is hereby appropriated from the State General Fund to the Education Stabilization Account in the State Education Fund the sum of $50,000,000.
4. The amount appropriated to the Education Stabilization Account by subsection 3 is a loan to the Department of Education to fund any future transfers from the Account authorized by law on or after July 1, 2021. The money appropriated by subsection 3 is a continuing appropriation solely for the purpose of authorizing the expenditure of the appropriated money for the purposes set forth in this subsection.
5. Commencing on July 1, 2022, the Department of Education shall repay in annual installments to the State General Fund amounts equal to any transfers of money into the Education Stabilization Account until the loan created by this section is fully repaid.
Sec. 20. NRS 387.121 is hereby amended to read as follows:
387.121 1. The Legislature declares that the proper objective of state financial aid to public education is to ensure each Nevada child a reasonably equal educational opportunity. Recognizing wide local variations in wealth and costs per pupil, this State should supplement local financial ability to whatever extent necessary in each school district to provide programs of instruction in both compulsory and elective subjects that offer full opportunity for every Nevada child to receive the benefit of the purposes for which public schools are maintained. Therefore, the quintessence of the States financial obligation for such programs can be expressed by combining money raised pursuant to state law at the local level with state money to provide a certain basic level of support to each pupil in this State, adjusted to account for variation in the local costs to provide a reasonably equal educational opportunity to pupils and for the costs of providing a reasonably equal educational opportunity to pupils with certain additional educational needs. This formula is designated the Pupil-Centered Funding Plan.
2. It is the intent of the Legislature, commencing with Fiscal Year 2019-2020, to promote transparency and accountability in state funding for public education by accounting for all state financial aid to public schools and projected local financial aid to public schools, both on a per pupil basis and on a per program basis, and expressing the total per pupil amount of all such support.
3. It is the intent of the Legislature to accomplish the transition to the Pupil-Centered Funding Plan without causing an unexpected loss of revenue to any school district , charter school or university school for profoundly gifted pupils which may receive less money on a per-pupil basis under the Pupil-Centered Funding Plan than the district , charter school or university school for profoundly gifted pupils received during the fiscal year ending on June 30, 2020. Except as otherwise provided in subsection 4, if a school district , charter school or university school for profoundly gifted pupils would receive less money under the Pupil-Centered Funding Plan than the district , charter school or university school for profoundly gifted pupils received during the fiscal year ending on June 30, 2020, it is the intent of the Legislature that the school district , charter school or university school for profoundly gifted pupils instead receive [the same] a reasonably similar level of funding on a per-pupil basis that the district , charter school or university school for profoundly gifted pupils received during the fiscal year ending on June 30, 2020, and be given the flexibility to reapportion money between its adjusted base per pupil funding and weighted funding in a manner similar to the apportionment of such money in the fiscal year ending on June 30, 2020, to ensure that each pupil in the district , charter school or university school for profoundly gifted pupils receives a reasonably equal educational opportunity.
κ2021 Statutes of Nevada, Page 2916 (CHAPTER 473, SB 458)κ
Legislature that the school district , charter school or university school for profoundly gifted pupils instead receive [the same] a reasonably similar level of funding on a per-pupil basis that the district , charter school or university school for profoundly gifted pupils received during the fiscal year ending on June 30, 2020, and be given the flexibility to reapportion money between its adjusted base per pupil funding and weighted funding in a manner similar to the apportionment of such money in the fiscal year ending on June 30, 2020, to ensure that each pupil in the district , charter school or university school for profoundly gifted pupils receives a reasonably equal educational opportunity. When determining whether charter schools should receive a reasonably similar level of funding on a per-pupil basis that charter schools received during the fiscal year ending on June 30, 2020, it is the intent of the Legislature that all charter schools should be considered as a whole rather than evaluated individually.
4. It is the intent of the Legislature to ensure that no school district that receives a modified allocation of money as described in subsection 3 receives less funding in a school year than the school district received in the immediately preceding school year unless the enrollment in the school district continues to decline for a period of 2 years or more. In the event of such an enrollment decline, it is the intent of the Legislature to determine an appropriate method to mitigate the effects of a continued decline in enrollment, which may include, without limitation, appropriating money to the school district as if the number of pupils enrolled in the district equaled the average number of pupils enrolled in the district over a rolling 3-year period.
Sec. 21. NRS 387.122 is hereby amended to read as follows:
387.122 1. [For making the apportionments of the State Distributive School Account in the State General Fund required by the provisions of this title, the basic support guarantee per pupil for each school district is established by law for each school year. The formula for calculating the basic support guarantee may be expressed as an estimated weighted average per pupil, based on the total expenditures for public education in the immediately preceding even-numbered fiscal year, plus any legislative appropriations for the immediately succeeding biennium, minus those local funds not guaranteed by the State pursuant to NRS 387.163.
2. The estimated weighted average per pupil for the State must be calculated as a basic support guarantee for each school district through an equity allocation model that incorporates:
(a) Factors relating to wealth in the school district;
(b) Salary costs;
(c) Transportation; and
(d) Any other factor determined by the Superintendent of Public Instruction after consultation with the school districts and the State Public Charter School Authority.
3. The basic] In addition to the support provided from the State Education Fund pursuant to NRS 387.1214, the support [guarantee per pupil] provided for the public schools of this State must include a statewide multiplier for pupils with disabilities [.] or an amount determined necessary to satisfy any applicable requirement for maintenance of effort under federal law. Except as otherwise provided in this section, the funding provided to each school district and charter school through the statewide multiplier for pupils with disabilities or amount determined necessary to satisfy any applicable requirement for maintenance of effort under federal law is limited to the actual number of pupils with disabilities enrolled in the school district or charter school, not to exceed 13 percent of total pupil enrollment for the school district or charter school.
κ2021 Statutes of Nevada, Page 2917 (CHAPTER 473, SB 458)κ
satisfy any applicable requirement for maintenance of effort under federal law is limited to the actual number of pupils with disabilities enrolled in the school district or charter school, not to exceed 13 percent of total pupil enrollment for the school district or charter school.
[4.] 2. Except as otherwise provided in this subsection, if a school district or charter school has reported an enrollment of pupils with disabilities equal to more than 13 percent of total pupil enrollment, the school district or charter school must receive, for each such additional pupil, an amount of money equal to one-half of the statewide multiplier then in effect for pupils with disabilities [.] or a reasonably similar level of funding. An apportionment made to a school district or charter school pursuant to this subsection is subject to change from year to year in accordance with the number of pupils with disabilities enrolled in the school district or charter school. If the money available for apportionment pursuant to this subsection is insufficient to make the apportionment otherwise required by this subsection, the Superintendent of Public Instruction shall proportionately reduce the amount so apportioned to each school district and charter school. The Department shall account separately for any money apportioned pursuant to this subsection.
[5. Not later than May 1 of each even-numbered year, the Superintendent of Public Instruction shall review and, if necessary, revise the factors used for the equity allocation model adopted for the previous biennium and present the review and any revisions at a meeting of the Legislative Committee on Education for consideration and recommendations by the Committee. After the meeting, the Superintendent of Public Instruction shall consider any recommendations of the Legislative Committee on Education and determine whether to include those recommendations in the equity allocation model. Not earlier than July 1 of each even-numbered year, the Superintendent of Public Instruction shall adopt the equity allocation model. The Superintendent of Public Instruction shall submit the equity allocation model to the:
(a) Governor for inclusion in the proposed executive budget.
(b) Director of the Legislative Counsel Bureau for transmittal to the next regular session of the Legislature.
6. The Department shall make available updated information regarding the equity allocation model on the Internet website maintained by the Department.]
Sec. 22. NRS 387.1246 is hereby amended to read as follows:
387.1246 1. The Commission on School Funding, consisting of 11 members, is hereby created.
2. The Commission consists of the following members, who may not be Legislators:
(a) One member appointed by the Governor, who serves as Chair;
(b) Two members appointed by the Majority Leader of the Senate;
(c) Two members appointed by the Speaker of the Assembly;
(d) One member appointed by the Minority Leader of the Senate;
(e) One member appointed by the Minority Leader of the Assembly;
(f) Two members appointed by the Governor, each of whom is the chief financial officer of a school district in this State which has more than 40,000 pupils enrolled in its public schools, nominated by the Nevada Association of School Superintendents or its successor organization; and
κ2021 Statutes of Nevada, Page 2918 (CHAPTER 473, SB 458)κ
(g) Two members appointed by the Governor, each of whom is the chief financial officer of a school district in this State which has 40,000 or fewer pupils enrolled in its public schools, nominated by the Nevada Association of School Superintendents or its successor organization.
Κ In making appointments to the Commission, the appointing authorities shall consider whether the membership generally reflects the geographic distribution of pupils in the State.
3. Each member of the Commission must:
(a) Be a resident of this State;
(b) Not have been registered as a lobbyist pursuant to NRS 218H.200 for a period of at least 2 years immediately preceding appointment to the Commission;
(c) Have relevant experience in public education;
(d) Have relevant experience in fiscal policy, school finance or similar or related financial activities;
(e) Have the education, experience and skills necessary to effectively execute the duties and responsibilities of a member of the Commission; and
(f) Have demonstrated ability in the field of economics, taxation or other discipline necessary to school finance and be able to bring knowledge and professional judgment to the deliberations of the Commission.
4. Each member of the Commission serves a term of 3 years and may be reappointed to additional terms.
5. Each member may be removed by the appointing authority for good cause. A vacancy on the Commission must be filled in the same manner as the original appointment.
6. The Commission shall:
(a) Elect a Vice Chair from among its members at its first meeting for a term of 3 years. A vacancy in the office of Vice Chair must be filled by the Commission by election for the remainder of the existing term.
(b) Adopt such rules governing the conduct of the Commission as it deems necessary.
(c) Hold its first meeting on or before October 1, 2019, and hold such additional number of meetings as may be necessary to accomplish the tasks assigned to it in the time allotted.
7. A majority of the members of the Commission constitutes a quorum and a majority of those present must concur in any decision.
8. The Department shall provide the Commission with meeting rooms, data processing services and administrative and clerical assistance. The Superintendent of Public Instruction and Office of Finance shall jointly provide the Commission with professional staff services.
9. While engaged in the business of the Commission, each member is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.
10. The Commission may meet only between July 1 of an odd-numbered year and September 30 of the subsequent even-numbered year.
Sec. 23. NRS 392.015 is hereby amended to read as follows:
392.015 1. The board of trustees of a school district shall, upon application, allow any pupil who resides on an Indian reservation located in two or more counties to attend the school nearest to the pupils residence, without regard to the school district in which the pupils residence is located. For the purposes of apportionment of money, if such a pupil attends a school outside the county in which the pupil resides, the pupil must be counted as being enrolled in the district in which he or she attends school.
κ2021 Statutes of Nevada, Page 2919 (CHAPTER 473, SB 458)κ
outside the county in which the pupil resides, the pupil must be counted as being enrolled in the district in which he or she attends school.
2. A pupil who is allowed to attend a school outside the school district in which the pupils residence is located pursuant to this section must remain in that school for the full school year.
3. The school district which pays the additional costs of transporting a pupil pursuant to this section to a school outside the school district in which the pupils residence is located is entitled to be reimbursed for those costs [.] by the school district in which the pupil is enrolled. Such additional costs must be paid from money received by the school district in which the pupil is enrolled from the State Education Fund [.] pursuant to paragraph (a) of subsection 2 of NRS 387.1214, as amended by section 25 of this act.
4. The provisions of this section do not apply to a pupil who:
(a) Is ineligible to attend public school pursuant to NRS 392.4675; or
(b) Resides on an Indian reservation pursuant to an order issued by a court of competent jurisdiction in another state adjudging the pupil to be delinquent and committing him or her to the custody of a public or private institution or agency in this state.
Sec. 24. Section 80 of chapter 624, Statutes of Nevada 2019, at page 4253, is hereby amended to read as follows:
Sec. 80. NRS [387.122,] 387.1245, 387.1247, 387.1251, 387.1253, 387.1255, 387.1257, 387.129, 387.131, 387.133, 387.137, 387.139, 387.163, 387.193, 387.197, 387.2065, 387.2067 and 387.207 are hereby repealed.
Sec. 25. Section 4 of Senate Bill No. 439 of this session is hereby amended to read as follows:
Sec. 4. NRS 387.1214 is hereby amended to read as follows:
387.1214 1. After a direct legislative appropriation is made to the State Education Fund from the State General Fund pursuant to NRS 387.1212, the Legislature shall determine the statewide base per pupil funding amount for each fiscal year of the biennium, which is the amount of money expressed on a per pupil basis for the projected enrollment of the public schools in this State, determined to be sufficient by the Legislature to fund the costs of all public schools in this State to operate and provide general education to all pupils for any purpose for which specific funding is not appropriated pursuant to paragraph (a) , (b) or [(d)] (e) of subsection 2 or NRS 387.122. It is the intent of the Legislature that the statewide base per pupil funding amount for any fiscal year, to the extent practicable, be not less than the statewide base per pupil funding amount for the immediately preceding fiscal year, adjusted by inflation, unless the amount of money contained in the State Education Fund, excluding the Education Stabilization Account, decreases from the preceding fiscal year. If the amount of money contained in the State Education Fund, excluding the Education Stabilization Account, decreases from the preceding fiscal year, it is the intent of the Legislature that a proportional reduction be made in both the statewide base per pupil funding amount and the weighted funding appropriated pursuant to paragraph [(d)] (e) of subsection 2.
2. After a direct legislative appropriation is made to the State Education Fund from the State General Fund pursuant to NRS 387.1212, the money in the State Education Fund, excluding any amount of money in the Education Stabilization Account, must be appropriated as established by law for each fiscal year of the biennium for the following purposes:
κ2021 Statutes of Nevada, Page 2920 (CHAPTER 473, SB 458)κ
amount of money in the Education Stabilization Account, must be appropriated as established by law for each fiscal year of the biennium for the following purposes:
(a) To each school district, an amount of money determined to be sufficient by the Legislature, when combined with any other resources available for this purpose, to provide food services and transportation for pupils and any other similar service that the Legislature deems appropriate.
(b) To each school district, charter school or university school for profoundly gifted pupils, an amount of money determined to be sufficient by the Legislature, when combined with any other resources available for this purpose, to provide local funding to support pupils with disabilities.
(c) To each school district, an amount of money determined to be sufficient by the Legislature, when combined with any other resources available for this purpose, to provide adjusted base per pupil funding for each pupil estimated to be enrolled in the school district.
[(c)] (d) To each charter school or university school for profoundly gifted pupils, an amount of money determined to be sufficient by the Legislature, when combined with any other resources available for this purpose, to provide:
(1) The statewide base per pupil funding amount for each pupil estimated to be enrolled full-time in a program of distance education provided by the charter school or university school for profoundly gifted pupils; and
(2) Adjusted base per pupil funding for each pupil estimated to be enrolled in the charter school or university school for profoundly gifted pupils other than a pupil identified in subparagraph (1).
[(d)] (e) To each school district, charter school or university school for profoundly gifted pupils, an amount of money determined to be sufficient by the Legislature, when combined with any other resources available for this purpose, to provide additional weighted funding for each pupil estimated to be enrolled in the school district, charter school or university school for profoundly gifted pupils who is:
(1) An English learner;
(2) An at-risk pupil; or
(3) A gifted and talented pupil.
3. The adjusted base per pupil funding appropriated pursuant to paragraph [(b)] (c) of subsection 2 for each school district must be determined by applying the cost adjustment factor established pursuant to NRS 387.1215 which applies to the school district and the [district equity] attendance area adjustment established pursuant to NRS 387.1218 which applies to each applicable area of the school district to the statewide base per pupil funding amount.
4. The adjusted base per pupil funding appropriated pursuant to subparagraph (2) of paragraph [(c)] (d) of subsection 2 for each charter school or university school for profoundly gifted pupils must be determined by applying the cost adjustment factor established pursuant to NRS 387.1215 which applies to the charter school or university school and, if applicable, the attendance area adjustment established pursuant to NRS 387.1218 to the statewide base per pupil funding amount.
κ2021 Statutes of Nevada, Page 2921 (CHAPTER 473, SB 458)κ
university school and, if applicable, the attendance area adjustment established pursuant to NRS 387.1218 to the statewide base per pupil funding amount.
5. The weighted funding appropriated pursuant to paragraph [(d)] (e) of subsection 2 must be established separately for each category of pupils identified in that paragraph and expressed as a multiplier to be applied to the statewide base per pupil funding amount determined pursuant to subsection 1. A pupil who belongs to more than one category of pupils or for whom a school district, charter school or university school for profoundly gifted pupils is eligible to receive the statewide multiplier pursuant to NRS 387.122 must receive only the weighted funding for the single category to which the pupil belongs which has the largest multiplier or the statewide multiplier, whichever is larger. It is the intent of the Legislature that, to the extent practicable:
(a) The multiplier for each category of pupils for any fiscal year be not less than the multiplier for the immediately preceding fiscal year unless:
(1) The amount of money contained in the State Education Fund, excluding the Education Stabilization Account, decreases from the preceding fiscal year, in which event it is the intent of the Legislature that a proportional reduction be made in both the statewide base per pupil funding amount and the weighted funding appropriated pursuant to paragraph [(d)] (e) of subsection 2; or
(2) The amount of money contained in the State Education Fund, excluding the Education Stabilization Account , increases from the preceding fiscal year but in an amount which, after funding the appropriations required by paragraphs [(a), (b) and (c)] (a) to (d), inclusive, of subsection 2, is insufficient to fund the multiplier for each category of pupils, in which event it is the intent of the Legislature that the remaining money in the State Education Fund be used to provide a multiplier for each category of pupils which is as close as practicable to the multiplier for the preceding fiscal year;
(b) The recommendations of the Commission for the multiplier for each category of pupils be considered and the multiplier for one category of pupils may be changed by an amount that is not proportional to the change in the multiplier for one or more other categories of pupils if the Legislature determines that a disproportionate need to serve the pupils in the affected category exists; and
(c) If the multipliers for all categories of pupils in a fiscal year are increased from the multipliers in the immediately preceding fiscal year, a proportional increase is considered for the statewide base per pupil funding amount.
6. For any money identified in subsection 4 of NRS 362.170 which is deposited to the credit of the State Education Fund:
(a) The amount of such money for the county from which the money was collected that does not exceed the total amount of money appropriated pursuant to subsection 2 to the county school district is deemed to be the first money appropriated pursuant to subsection 2 for that county school district.
κ2021 Statutes of Nevada, Page 2922 (CHAPTER 473, SB 458)κ
(b) The amount of such money for the county from which the money was collected which exceeds the total amount of money appropriated pursuant to subsection 2 to the county school district must be transferred to the county school district and is hereby authorized for expenditure as a continuing appropriation for the purpose of mitigating the adverse effects of the cyclical nature of the industry of extracting and processing minerals on the ability of the county school district to offer its pupils a reasonably equal educational opportunity.
7. The weighted funding appropriated pursuant to paragraph [(d)] (e) of subsection 2:
(a) May not be used to settle or arbitrate disputes between a recognized organization representing employees of a school district or the governing body of a charter school and the school district or governing body or to settle any negotiations; and
(b) May not be used to adjust the district-wide schedules of salaries and benefits of the employees of a school district.
Sec. 26. Section 5 of Senate Bill No. 439 of this session is hereby amended to read as follows:
Sec. 5. NRS 387.1218 is hereby amended to read as follows:
387.1218 1. To account for the increased cost per pupil to [a school district to] operate public schools in [which relatively fewer pupils are enrolled,] areas with lower population density, the Department shall establish by regulation [a district equity] an attendance area adjustment [.] for each relevant portion of a school district in which the Department determines additional money is necessary for a pupil enrolled in a public school in the area to receive a reasonably equal educational opportunity as a pupil enrolled in a public school in an area with a higher population density.
2. A charter school or university school for profoundly gifted pupils which provides in-person instruction at a location must receive the same attendance area adjustment on a per pupil basis that a public school within a school district at the same location would receive.
3. Not later than May 1 of each even-numbered year, the Department shall review and determine whether revisions are necessary to the method for calculating the [district equity] attendance area adjustment. The Department shall present the review and any revisions at a meeting of the Legislative Committee on Education for consideration and recommendations by the Committee. After the meeting, the Department shall consider any recommendations of the Legislative Committee on Education, determine whether to include those recommendations and adopt by regulation any revision to the method. The Department shall submit any revision to the method to each school district, the Governor and the Director of the Legislative Counsel Bureau.
Sec. 27. Section 7 of Senate Bill No. 439 of this session is hereby amended to read as follows:
Sec. 7. NRS 387.1223 is hereby amended to read as follows:
387.1223 1. On or before October 1, January 1, April 1 and July 1, each school district shall report to the Department, in the form prescribed by the Department, the average daily enrollment of pupils pursuant to this section for the immediately preceding quarter of the school year.
κ2021 Statutes of Nevada, Page 2923 (CHAPTER 473, SB 458)κ
prescribed by the Department, the average daily enrollment of pupils pursuant to this section for the immediately preceding quarter of the school year. If October 1, January 1, April 1 or July 1 falls on a Saturday, Sunday or legal holiday, the report may be submitted before 5 p.m. on the next business day.
2. Except as otherwise provided in subsection 3, the yearly apportionment from the State Education Fund for each school district must be computed by:
(a) Multiplying the adjusted base per pupil funding established for that school district for that school year by the sum of:
(1) The count of pupils enrolled in kindergarten and grades 1 to 12, inclusive, in a public school in the school district based on the average daily enrollment of those pupils during the quarter.
(2) The count of pupils not included under subparagraph (1) who are enrolled full-time in a program of distance education provided by that school district, based on the average daily enrollment of those pupils during the quarter.
(3) The count of pupils who reside in the county and are enrolled:
(I) In a public school of the school district and are concurrently enrolled part-time in a program of distance education provided by another school district or a charter school, based on the average daily enrollment of those pupils during the quarter.
(II) In a charter school and are concurrently enrolled part-time in a program of distance education provided by the school district, based on the average daily enrollment of those pupils during the quarter.
(4) The count of pupils not included under subparagraph (1), (2) or (3), who are receiving special education pursuant to the provisions of NRS 388.417 to 388.469, inclusive, and 388.5251 to 388.5267, inclusive, based on the average daily enrollment of those pupils during the quarter and excluding the count of pupils who have not attained the age of 5 years and who are receiving special education pursuant to NRS 388.435.
(5) Six-tenths the count of pupils who have not attained the age of 5 years and who are receiving special education pursuant to NRS 388.435, based on the average daily enrollment of those pupils during the quarter.
(6) The count of children detained in facilities for the detention of children, alternative programs and juvenile forestry camps receiving instruction pursuant to the provisions of NRS 388.550, 388.560 and 388.570, based on the average daily enrollment of those pupils during the quarter.
(7) The count of pupils who are enrolled in classes for at least one semester pursuant to subsection 1 of NRS 388A.471, subsection 1 of NRS 388A.474 or subsection 1 of NRS 392.074, based on the average daily enrollment of pupils during the quarter and expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (1).
κ2021 Statutes of Nevada, Page 2924 (CHAPTER 473, SB 458)κ
(8) The count of pupils enrolled in a challenge school based on the average daily enrollment of those pupils calculated in the manner set forth in an agreement entered into pursuant to NRS 388D.330.
(b) Adding to the amount computed in paragraph (a) the amounts appropriated pursuant to paragraphs (a) , (b) and [(d)] (e) of subsection 2 of NRS 387.1214.
3. Except as otherwise provided in subsection 4, if the enrollment of pupils in a school district or a charter school that is located within the school district based on the average daily enrollment of pupils during the quarter of the school year is less than or equal to 95 percent of the enrollment of pupils in the same school district or charter school based on the average daily enrollment of pupils during the same quarter of the immediately preceding school year, the enrollment of pupils during the same quarter of the immediately preceding school year must be used for purposes of making the monthly apportionments from the State Education Fund to that school district or charter school pursuant to NRS 387.124.
4. If the Department determines that a school district or charter school deliberately causes a decline in the enrollment of pupils in the school district or charter school to receive a higher apportionment pursuant to subsection 3, including, without limitation, by eliminating grades or moving into smaller facilities, the enrollment number from the current school year must be used for purposes of apportioning money from the State Education Fund to that school district or charter school pursuant to NRS 387.124.
5. The Department shall prescribe a process for reconciling the quarterly reports submitted pursuant to subsection 1 to account for pupils who leave the school district or a public school during the school year.
6. Pupils who are excused from attendance at examinations or have completed their work in accordance with the rules of the board of trustees must be credited with attendance during that period.
7. Pupils who are incarcerated in a facility or institution operated by the Department of Corrections must not be counted for the purpose of computing the yearly apportionment pursuant to this section. The average daily attendance for such pupils must be reported to the Department of Education.
8. Pupils who are enrolled in courses which are approved by the Department as meeting the requirements for an adult to earn a high school diploma must not be counted for the purpose of computing the yearly apportionment pursuant to this section.
Sec. 28. Section 9 of Senate Bill No. 439 of this session is hereby amended to read as follows:
Sec. 9. NRS 387.124 is hereby amended to read as follows:
387.124 Except as otherwise provided in this section and NRS 387.1241, 387.1242 and 387.528:
1. On or before the first day of each month, the Superintendent of Public Instruction shall apportion the State Education Fund among the several county school districts, charter schools and university schools for profoundly gifted pupils in amounts approximating one-twelfth of their respective yearly apportionments less any amount set aside as a reserve or contained in the Education Stabilization Account.
κ2021 Statutes of Nevada, Page 2925 (CHAPTER 473, SB 458)κ
Account. Except as otherwise provided in NRS 387.1244, the apportionment to a school district, computed on a yearly basis, equals the amounts established by law for each school year pursuant to paragraphs (a), (b) , (c) and [(d)] (e) of subsection 2 of NRS 387.1214 for all pupils who attend a public school operated by the school district located in the county.
2. Except as otherwise provided in NRS 387.1244, in addition to the apportionments made pursuant to this section, if a pupil is enrolled part-time in a program of distance education and part-time in a:
(a) Public school other than a charter school, an apportionment must be made to the school district in which the pupil resides. The school district in which the pupil resides shall allocate a percentage of the apportionment to the school district or charter school that provides the program of distance education in the amount set forth in the agreement entered into pursuant to NRS 388.854.
(b) Charter school, an apportionment must be made to the charter school in which the pupil is enrolled. The charter school in which the pupil is enrolled shall allocate a percentage of the apportionment to the school district or charter school that provides the program of distance education in the amount set forth in the agreement entered into pursuant to NRS 388.858.
3. The Director of the State Department of Agriculture shall apportion, on or before August 1 of each year, the money designated as the Nutrition State Match pursuant to NRS 387.105 to those school districts that participate in the National School Lunch Program, 42 U.S.C. §§ 1751 et seq. The apportionment to a school district must be directly related to the districts reimbursements for the Program as compared with the total amount of reimbursements for all school districts in this State that participate in the Program.
Sec. 29. Section 10 of Senate Bill No. 439 of this session is hereby amended to read as follows:
Sec. 10. NRS 387.1241 is hereby amended to read as follows:
387.1241 Except as otherwise provided in NRS 387.124, 387.1242, 387.1244 and 387.528:
1. The apportionment to a charter school, computed on a yearly basis, is equal to the amounts established by law for each school year pursuant to paragraphs [(c) and] (d) and (e) of subsection 2 of NRS 387.1214 for all pupils who attend the charter school, minus the sponsorship fee prescribed by NRS 388A.414 and minus all the funds attributable to pupils who are enrolled in the charter school but are concurrently enrolled part-time in a program of distance education provided by a school district or another charter school.
2. The governing body of a charter school may submit a written request to the Superintendent of Public Instruction to receive, in the first year of operation of the charter school, an apportionment 30 days before the apportionment is required to be made pursuant to subsections 1 and 2 of NRS 387.124. Upon receipt of such a request, the Superintendent of Public Instruction may make the apportionment 30 days before the apportionment is required to be made. A charter school may receive all 12 apportionments in advance in its first year of operation.
κ2021 Statutes of Nevada, Page 2926 (CHAPTER 473, SB 458)κ
Sec. 30. Section 11 of Senate Bill No. 439 of this session is hereby amended to read as follows:
Sec. 11. NRS 387.1242 is hereby amended to read as follows:
387.1242 Except as otherwise provided in NRS 387.124, 387.1241, 387.1244 and 387.528:
1. The apportionment to a university school for profoundly gifted pupils, computed on a yearly basis, is equal to the amounts established by law for each school year pursuant to paragraphs [(c) and] (d) and (e) of subsection 2 of NRS 387.1214 for all pupils who attend the university school.
2. The governing body of a university school for profoundly gifted pupils may submit a written request to the Superintendent of Public Instruction to receive, in the first year of operation of the university school, an apportionment 30 days before the apportionment is required to be made pursuant to subsection 1 of NRS 387.124. Upon receipt of such a request, the Superintendent of Public Instruction may make the apportionment 30 days before the apportionment is required to be made. A university school for profoundly gifted pupils may receive all 12 apportionments in advance in its first year of operation.
Sec. 31. Section 13 of Senate Bill No. 439 of this session is hereby amended to read as follows:
Sec. 13. NRS 387.12445 is hereby amended to read as follows:
387.12445 1. Except as otherwise provided in subsection 2, each school district shall ensure that all adjusted base per pupil funding received by the school district pursuant to paragraph [(b)] (c) of subsection 2 of NRS 387.1214 is accounted for separately and, after a deduction for the administrative expenses of the school district in an amount which does not exceed the amount prescribed by the Department by regulation for each school district, be distributed and used as described in this subsection. The adjusted base per pupil funding provided to each school district must:
(a) Be distributed by each school district to its public schools in a manner that ensures each pupil in the school district receives a reasonably equal educational opportunity.
(b) Be used to support the educational needs of all pupils in the school district, including, without limitation, operating each public school in the school district, training and supporting educational personnel and carrying out any program or service established by, or requirement imposed pursuant to, this title for any purpose for which specific funding is not appropriated pursuant to paragraph (a) , (b) or [(d)] (e) of subsection 2 of NRS 387.1214 or NRS 387.122.
2. If a school district determines that an additional amount of money is necessary to satisfy requirements for maintenance of effort or any other requirement under federal law for pupils with disabilities enrolled in the school district, the school district may transfer the necessary amount of money from the adjusted base per pupil funding received by the school district for that purpose.
3. Each school district shall ensure that all weighted funding received by the school district pursuant to paragraph [(d)] (e) of subsection 2 of NRS 387.1214 is accounted for separately and distributed directly to each school in which the relevant pupils are estimated to be enrolled.
κ2021 Statutes of Nevada, Page 2927 (CHAPTER 473, SB 458)κ
subsection 2 of NRS 387.1214 is accounted for separately and distributed directly to each school in which the relevant pupils are estimated to be enrolled.
4. Each public school shall account separately for the local funding for pupils with disabilities received by the public school pursuant to paragraph (b) of subsection 2 of NRS 387.1214, for the adjusted base per pupil funding received by the public school pursuant to paragraph [(b)] (c) of subsection 2 of NRS 387.1214, for each category of weighted funding received by the public school pursuant to paragraph [(d)] (e) of subsection 2 of NRS 387.1214 and for money received from the statewide multiplier pursuant to NRS 387.122. Unless the provisions of subsection 7 or 8 impose greater restrictions on the use of weighted funding by a public school, the public school must use the weighted funding received for each relevant pupil:
(a) As a supplement to the adjusted base per pupil funding received for the pupil; and
(b) Solely for the purpose of providing such additional educational programs, services or support as are necessary to ensure the pupil receives a reasonably equal educational opportunity.
5. Except as otherwise provided in subsection 6, the separate accounting required by subsection 4 for pupils with disabilities and gifted and talented pupils must include:
(a) The amount of money provided to the public school for special education; and
(b) The cost of:
(1) Instruction provided by licensed special education teachers and supporting staff;
(2) Related services, including, without limitation, services provided by psychologists, therapists and health-related personnel;
(3) Transportation of the pupils with disabilities and gifted and talented pupils to and from school;
(4) The direct supervision of educational and supporting programs; and
(5) The supplies and equipment needed for providing special education.
6. Money received from federal sources must be accounted for separately and excluded from the accounting required pursuant to subsection 5.
7. A public school that receives weighted funding for one or more at-risk pupils must use that weighted funding only to provide Victory services and, if one or more at-risk pupils for whom the school received weighted funding in the at-risk pupil category also belong to one or more other categories of pupils who receive weighted funding, the additional services for each such at-risk pupil which are appropriate for each category to which the at-risk pupil belongs.
8. A public school that receives weighted funding for one or more pupils who are English learners must use that weighted funding only to provide Zoom services and, if one or more English learners for whom the school received weighted funding in the English learner category also belong to one or more other categories of pupils who receive weighted funding, the additional services for each such English learner which are appropriate for each category to which the English learner belongs.
κ2021 Statutes of Nevada, Page 2928 (CHAPTER 473, SB 458)κ
receive weighted funding, the additional services for each such English learner which are appropriate for each category to which the English learner belongs.
9. The Department shall adopt regulations prescribing the maximum amount of money that each school district may deduct for its administrative expenses from the adjusted base per pupil funding received by the school district. When adopting such regulations, the Department may express the maximum amount of money that may be deducted as a percentage of the adjusted base per pupil funding received by the school district.
10. As used in this section:
(a) Victory services means any one or more of the following services:
(1) A prekindergarten program provided free of charge.
(2) A summer academy or other instruction for pupils provided free of charge at times during the year when school is not in session.
(3) Additional instruction or other learning opportunities provided free of charge at times of day when school is not in session.
(4) Professional development for teachers and other educational personnel concerning instructional practices and strategies that have proven to be an effective means to increase pupil achievement in populations of at-risk pupils.
(5) Incentives for hiring and retaining teachers and other licensed educational personnel who provide Victory services.
(6) Employment of paraprofessionals, other educational personnel and other persons who provide Victory services.
(7) A reading skills center.
(8) Integrated student supports, wrap-around services and evidence-based programs designed to meet the needs of at-risk pupils.
(9) Any other service or program that has a demonstrated record of success for similarly situated pupils in comparable school districts and has been reviewed and approved as a Victory service by the Superintendent of Public Instruction.
(b) Zoom services means any one or more of the following services:
(1) A prekindergarten program provided free of charge.
(2) A reading skills center.
(3) Professional development for teachers and other licensed educational personnel regarding effective instructional practices and strategies for pupils who are English learners.
(4) Incentives for hiring and retaining teachers and other licensed educational personnel who provide Zoom services.
(5) Engagement and involvement with parents and families of pupils who are English learners, including, without limitation, increasing effective, culturally appropriate communication with and outreach to parents and families to support the academic achievement of those pupils.
(6) A summer academy or, for those schools that do not operate on a traditional school calendar, an intersession academy provided free of charge, including, without limitation, the provision of transportation to attend the summer academy or intersession academy.
κ2021 Statutes of Nevada, Page 2929 (CHAPTER 473, SB 458)κ
provided free of charge, including, without limitation, the provision of transportation to attend the summer academy or intersession academy.
(7) An extended school day.
(8) Any other service or program that has a demonstrated record of success for similarly situated pupils in comparable school districts and has been reviewed and approved as a Zoom service by the Superintendent of Public Instruction.
Sec. 32. Section 15 of Senate Bill No. 439 of this session is hereby amended to read as follows:
Sec. 15. NRS 387.12463 is hereby amended to read as follows:
387.12463 1. The Commission shall:
(a) Provide guidance to school districts and the Department on the implementation of the Pupil-Centered Funding Plan.
(b) Monitor the implementation of the Pupil-Centered Funding Plan and make any recommendations to the Legislative Committee on Education that the Commission determines would, within the limits of appropriated funding, improve the implementation of the Pupil-Centered Funding Plan or correct any deficiencies of the Department or any school district or public school in carrying out the Pupil-Centered Funding Plan.
(c) Review the statewide base per pupil funding amount, the adjusted base per pupil funding for each school district and the multiplier for weighted funding for each category of pupils appropriated by law pursuant to NRS 387.1214 for each biennium and recommend any revisions the Commission determines to be appropriate to create an optimal level of funding for the public schools in this State, including, without limitation, by recommending the creation or elimination of one or more categories of pupils to receive additional weighted funding. If the Commission makes a recommendation pursuant to this paragraph which would require more money to implement than was appropriated from the State Education Fund in the immediately preceding biennium, the Commission shall also identify a method to fully fund the recommendation within 10 years after the date of the recommendation.
(d) Review the laws and regulations of this State relating to education, make recommendations to the Legislative Committee on Education for any revision of such laws and regulations that the Commission determines would improve the efficiency or effectiveness of public education in this State and notify each school district of each such recommendation.
(e) Review and recommend to the Department revisions of the cost adjustment factors for each county established pursuant to NRS 387.1215 and the method for calculating the [district equity] attendance area adjustment established pursuant to NRS 387.1218.
2. The Commission shall present any recommendations pursuant to paragraphs (a) to (d), inclusive, of subsection 1 at a meeting of the Legislative Committee on Education for consideration and revision by the Committee. The Legislative Committee on Education shall review each recommendation of the Commission and determine whether to transmit the recommendation or a revised version of the recommendation to the Governor or the Legislature.
κ2021 Statutes of Nevada, Page 2930 (CHAPTER 473, SB 458)κ
review each recommendation of the Commission and determine whether to transmit the recommendation or a revised version of the recommendation to the Governor or the Legislature.
Sec. 33. Section 22 of Senate Bill No. 439 of this session is hereby amended to read as follows:
Sec. 22. NRS 388.429 is hereby amended to read as follows:
388.429 1. The Legislature declares that funding provided for each school year establishes financial resources sufficient to ensure a reasonably equal educational opportunity to pupils with disabilities residing in Nevada through the use of local funding for pupils with disabilities prescribed by paragraph (b) of subsection 2 of NRS 387.1214 and the statewide multiplier established pursuant to NRS 387.122.
2. Subject to the provisions of NRS 388.417 to 388.469, inclusive, the board of trustees of each school district shall make such special provisions as may be necessary for the education of pupils with disabilities.
3. The board of trustees of a school district in a county whose population is less than 700,000 may provide early intervening services. Such services must be provided in accordance with the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq., and the regulations adopted pursuant thereto.
4. The board of trustees of a school district shall establish uniform criteria governing eligibility for instruction under the special education programs provided for by NRS 388.417 to 388.469, inclusive. The criteria must prohibit the placement of a pupil in a program for pupils with disabilities solely because the pupil is a disciplinary problem in school. The criteria are subject to such standards as may be prescribed by the State Board.
Sec. 34. 1. This section and section 19 of this act become effective upon passage and approval.
2. Sections 24 to 33, inclusive, of this act become effective on June 30, 2021.
3. Sections 1 to 10, inclusive, 13 to 18, inclusive, and 20 to 23, inclusive of this act become effective on July 1, 2021.
4. Section 11 of this act becomes effective on July 1, 2021, if and only if Senate Bill No. 76 of this session is not enacted by the Legislature and approved by the Governor.
5. Section 12 of this act becomes effective on July 1, 2021, if and only if Senate Bill No. 76 of this session is enacted by the Legislature and approved by the Governor.
________
κ2021 Statutes of Nevada, Page 2931κ
Assembly Bill No. 489Committee on Ways and Means
CHAPTER 474
[Approved: June 4, 2021]
AN ACT making appropriations to the Legislative Fund for capital improvement projects, one-time building maintenance, information technology purchases and dues for national and regional organizations; and providing other matters properly relating thereto.
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. There is hereby appropriated from the State General Fund to the Legislative Fund created by NRS 218A.150 the sum of $11,403,000 for capital improvement projects.
Sec. 2. There is hereby appropriated from the State General Fund to the Legislative Fund created by NRS 218A.150 the sum of $4,583,500 for computer hardware, voting system modernization, facility security system upgrade, broadcast infrastructure upgrade, one-time building maintenance and the payment of dues to national and regional organizations.
Sec. 3. This act becomes effective upon passage and approval.
________
Senate Bill No. 353Committee on Education
CHAPTER 475
[Approved: June 4, 2021]
AN ACT relating to education; requiring the Department of Education to review examinations and assessments for certain information; requiring the Department to adopt regulations that prescribe certain limitations on examinations and assessments; authorizing the board of trustees of a school district or the governing body of a charter school to request a waiver from the State Board of Education for certain limitations; authorizing the State Board to grant a waiver in certain circumstances; making an appropriation; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law provides for the administration of examinations and assessments to measure the achievement and proficiency of pupils in various subjects. (NRS 390.055, 390.105) Section 2 of this bill requires the Department of Education to review the examinations and assessments administered to pupils for: (1) the educational benefit of administering an examination or assessment; (2) the costs of administering an examination or assessment; and (3) redundancy in the information, skills or abilities measured by an examination or assessment. Section 3 of this bill requires the Department to adopt regulations that prescribe limitations for: (1) the time taken from instruction to conduct an examination or assessment; and (2) the number of examinations or assessments administered in a school year.
κ2021 Statutes of Nevada, Page 2932 (CHAPTER 475, SB 353)κ
time taken from instruction to conduct an examination or assessment; and (2) the number of examinations or assessments administered in a school year. Section 3 requires the board of trustees of a school district or the governing body of a charter school to request a waiver from the State Board of Education if the board of trustees or the governing body intends to administer an examination or assessment that would exceed the limits imposed by the Department. Section 3 authorizes the State Board to grant a waiver from the limitations to a school district or charter school if the State Board deems a waiver to be appropriate. Section 3.5 of this bill makes an appropriation to the Department for costs related to contract services and adopting regulations to carry out the provisions of this bill.
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 390 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. The Department shall review examinations and assessments administered pursuant to this chapter and examinations and assessments required to be administered by the board of trustees of a school district, the governing body of a charter school or a public school on a district-wide or school-wide basis, as applicable, for:
1. The educational benefit of an examination or assessment;
2. The cost of administering an examination or assessment; and
3. Any redundancy in the information, skills or abilities measured by different examinations and assessments.
Sec. 3. 1. The Department shall adopt regulations that, for an examination or assessment administered pursuant to this chapter or required to be administered by the board of trustees of a school district, the governing body of a charter school or a public school on a district-wide or school-wide basis, as applicable, prescribe limits on the:
(a) Actual time taken from instruction to conduct an examination or assessment; and
(b) Number of examinations or assessments administered to pupils in a school year.
2. If the board of trustees of a school district or the governing body of a charter school intends to administer an examination or assessment that would exceed a limitation in a regulation adopted by the Department pursuant to subsection 1, the board of trustees of the school district or the governing body of the charter school must request a waiver from the State Board to exceed the limitation. The State Board may grant a waiver requested pursuant to this subsection if the State Board deems it appropriate.
Sec. 3.5. 1. There is hereby appropriated from the State General Fund to the Department of Education for costs related to contract services and adopting regulations to carry out the provisions of this act the following sums:
For the Fiscal Year 2021-2022...................................................... $65,364
For the Fiscal Year 2022-2023.................................................... $187,500
2. Any balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal years by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 16, 2022, and September 15, 2023, respectively, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 16, 2022, and September 15, 2023, respectively.
κ2021 Statutes of Nevada, Page 2933 (CHAPTER 475, SB 353)κ
appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 16, 2022, and September 15, 2023, respectively, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 16, 2022, and September 15, 2023, respectively.
Sec. 4. 1. This section and section 3.5 of this act become effective on July 1, 2021.
2. Sections 1, 2 and 3 of this act become effective on January 1, 2022.
________
Senate Bill No. 385Committee on Judiciary
CHAPTER 476
[Approved: June 4, 2021]
AN ACT relating to protection of children; requiring the Division of Child and Family Services of the Department of Health and Human Services to conduct a study during the 2021-2022 legislative interim concerning investments in juvenile justice prevention activities in this State; and providing other matters properly relating thereto.
Legislative Counsels Digest:
This bill requires the Division of Child and Family Services of the Department of Health and Human Services to conduct a study during the 2021-2022 legislative interim concerning investments in juvenile justice prevention activities in this State, which are activities or programs to reduce the number of children committed to state facilities. This bill requires the Division to submit a report of the study to the Juvenile Justice Oversight Commission and the Director of the Legislative Counsel Bureau for transmittal to the Legislative Committee on Child Welfare and Juvenile Justice on or before August 1, 2022.
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. (Deleted by amendment.)
Sec. 1.5. 1. During the 2021-2022 legislative interim, the Division of Child and Family Services of the Department of Health and Human Services shall conduct a study concerning investments in juvenile justice prevention activities in this State. In conducting the study, the Division shall consult with the chief probation officers in the counties, regional facilities for the treatment and rehabilitation of children and any other person or entity that the Division determines to have special knowledge or interest in juvenile justice prevention activities.
2. The study must include:
(a) A review of current investments in juvenile justice prevention activities within this State;
κ2021 Statutes of Nevada, Page 2934 (CHAPTER 476, SB 385)κ
(b) A survey of best practices and funding mechanisms for juvenile justice prevention activities in other jurisdictions; and
(c) Recommendations for improving investments in juvenile justice prevention activities in this State.
3. On or before August 1, 2022, the Division shall submit a report of the study to the Juvenile Justice Oversight Commission established by NRS 62B.600 and the Director of the Legislative Counsel Bureau for transmittal to the Legislative Committee on Child Welfare and Juvenile Justice created by NRS 218E.705.
4. As used in this section:
(a) Juvenile justice prevention activity means an activity or program that is designed to reduce problematic behavior or conditions in order to decrease the number of children committed to a state facility for the detention of children.
(b) Regional facility for the treatment and rehabilitation of children has the meaning ascribed to it in NRS 62A.280.
(c) State facility for the detention of children has the meaning ascribed to in NRS 62A.330.
Sec. 2. Notwithstanding the provisions of NRS 218D.430 and 218D.435, a committee, other than the Assembly Standing Committee on Ways and Means and the Senate Standing Committee on Finance, may vote on this act before the expiration of the period prescribed for the return of a fiscal note in NRS 218D.475. This section applies retroactively from and after March 22, 2021.
Sec. 3. This act becomes effective on July 1, 2021.
________
Senate Bill No. 433Committee on Finance
CHAPTER 477
[Approved: June 4, 2021]
AN ACT making appropriations to the Division of Public and Behavioral Health of the Department of Health and Human Services for maintenance and repairs and the replacement of certain equipment at certain facilities operated by the Division that provide mental health services; and providing other matters properly relating thereto.
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. 1. There is hereby appropriated from the State General Fund to the Division of Public and Behavioral Health of the Department of Health and Human Services the sum of $1,457,870 for the maintenance and repair of Building Nos. 1, 2, 3, 3A, 6 and 6A on the Southern Nevada Adult Mental Health Services Campus.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2023, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 15, 2023, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 15, 2023.
κ2021 Statutes of Nevada, Page 2935 (CHAPTER 477, SB 433)κ
which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 15, 2023, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 15, 2023.
Sec. 2. 1. There is hereby appropriated from the State General Fund to the Division of Public and Behavioral Health of the Department of Health and Human Services the sum of $145,000 for the maintenance and repair of Building No. 3 and Building No. 1 of the Rawson Neal Psychiatric Hospital on the Southern Nevada Adult Mental Health Services Campus.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2023, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 15, 2023, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 15, 2023.
Sec. 3. 1. There is hereby appropriated from the State General Fund to the Division of Public and Behavioral Health of the Department of Health and Human Services the sum of $565,500 for the maintenance and repair of Building Nos. 1 and 2 of the Rawson Neal Psychiatric Hospital on the Southern Nevada Adult Mental Health Services Campus.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2023, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 15, 2023, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 15, 2023.
Sec. 4. 1. There is hereby appropriated from the State General Fund to the Division of Public and Behavioral Health of the Department of Health and Human Services the sum of $111,860 for deferred maintenance projects at Building No. 25 of the Dini-Townsend Hospital and the Central Kitchen in Building No. 26 on the Northern Nevada Adult Mental Health Services Campus.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2023, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 15, 2023, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 15, 2023.
κ2021 Statutes of Nevada, Page 2936 (CHAPTER 477, SB 433)κ
Sec. 5. 1. There is hereby appropriated from the State General Fund to the Division of Public and Behavioral Health of the Department of Health and Human Services the sum of $51,534 for deferred maintenance projects at Building Nos. 8 and 8A on the Northern Nevada Adult Mental Health Services Campus.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2023, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 15, 2023, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 15, 2023.
Sec. 6. 1. There is hereby appropriated from the State General Fund to the Division of Public and Behavioral Health of the Department of Health and Human Services the sum of $261,362 for deferred maintenance projects at Building No. 13 on the Northern Nevada Adult Mental Health Services Campus.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2023, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 15, 2023, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 15, 2023.
Sec. 7. 1. There is hereby appropriated from the State General Fund to the Division of Public and Behavioral Health of the Department of Health and Human Services the sum of $27,285 for the replacement of kitchen equipment in Building No. 13 on the Northern Nevada Adult Mental Health Services Campus.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2023, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 15, 2023, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 15, 2023.
Sec. 8. This act becomes effective upon passage and approval.
________
κ2021 Statutes of Nevada, Page 2937κ
Assembly Bill No. 45Committee on Commerce and Labor
CHAPTER 478
[Approved: June 4, 2021]
AN ACT relating to insurance; revising provisions relating to bonds filed by various persons regulated by the Commissioner of Insurance; revising provisions governing service of process on certain entities; revising provisions governing reinsurance; revising provisions governing the issuance, renewal and expiration of various licenses, permits, certificates of registration and other authorizations to engage in an activity relating to insurance; revising provisions relating to fees paid by various persons regulated by the Commissioner; revising requirements for holding companies; setting forth requirements relating to certain policies of stop-loss insurance; revising provisions governing coverage for maternity care and pediatric care; revising provisions governing misleading advertisements by certain persons regulated by the Commissioner; revising provisions governing annual disclosures and submission of form letters by certain persons regulated by the Commissioner; revising requirements relating to captive insurers and risk retention groups; revising requirements relating to investments by various persons regulated by the Commissioner; revising requirements relating to examinations and investigations of various persons regulated by the Commissioner; revising provisions governing the applicability of laws to various persons regulated by the Commissioner; providing temporary requirements applicable to associations of self-insured private employers; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law authorizes the Commissioner of Insurance to regulate insurance in this State. (NRS 679B.120, 679B.130) This bill adds to, revises and repeals various provisions of existing law relating to the regulation of insurance, primarily in title 57 of NRS.
Existing law requires a bond to be filed under certain circumstances by various persons regulated by the Commissioner. (NRS 692A.1041) Section 3 of this bill sets forth requirements for, and procedures relating to, such bonds. Section 49 of this bill indicates the placement of section 3 within chapter 679B of NRS.
Existing law requires a health carrier to submit to the Commissioner copies of certain form letters used by the health carrier. (NRS 679B.124) Section 3.2 of this bill revises the requirements concerning submission of the letters.
Existing law provides for service of process on certain insurers by serving the Commissioner. (NRS 680A.260) Sections 3.5, 4, 13.5, 20.5, 60.5 and 78.5 of this bill revise the procedure for such service of process.
Existing law sets forth various fees applicable to persons and entities regulated by the Commissioner. (NRS 680B.010) Section 5 of this bill adds fees relating to agents who perform utilization reviews, motor clubs, motor club agents, title plant companies and service contract providers. Sections 14, 51, 56, 72 and 73 of this bill delete the same fees from the sections of the individual chapters which govern those specific persons and entities but the fees all remain unchanged.
κ2021 Statutes of Nevada, Page 2938 (CHAPTER 478, AB 45)κ
Existing law sets forth requirements for reinsurers and reinsurance. (NRS 681A.110-681A.580) Sections 6.05 to 6.96 of this bill revise those requirements and add new requirements in accordance with new and revised guidance from the National Association of Insurance Commissioners.
Existing law requires a bond to be filed by a manager for reinsurance. (NRS 681A.420) Section 7 of this bill provides that the bond must meet the requirements set forth in section 3.
Existing law defines the term equity interest for the purposes of regulating investments by insurers. (NRS 682A.069) Section 8 of this bill revises the definition to limit the instruments which qualify as equity interests.
Existing law provides that a certificate of registration as an administrator is valid for 3 years. (NRS 683A.08526) Section 9 of this bill specifies the day on which the certificate expires after it is originally issued and after it is renewed. Existing law requires a bond to be filed by an administrator, a fraternal benefit society, an organization for dental care or its officers, a bail agent, a bail solicitor and a general agent. (NRS 683A.0857, 695A.060, 695D.180, 697.190) Sections 10, 60, 64 and 74 of this bill revise the requirements relating to the bond and provide that the bond must meet the requirements set forth in section 3.
Existing law provides for the licensure of managing general agents. (NRS 683A.140, 683A.160) Section 11 of this bill revises requirements for licensure as a managing general agent. Section 12 of this bill adds requirements relating to: (1) the renewal of a license as a managing general agent; (2) the information included on the license; and (3) a change in a licensees business, residence or electronic mail address.
Existing law provides for the licensure of producers of insurance. (NRS 683A.261) Section 13 of this bill revises the requirements relating to the renewal and reinstatement of a license as a producer of insurance.
Existing law provides for the renewal of a license as an insurance consultant. (NRS 683C.040) Section 15 of this bill revises the requirements and adds requirements relating to: (1) the reinstatement of an expired license; (2) the information included on the license; and (3) a change in a licensees business, residence or electronic mail address.
Existing law provides for the renewal of a license as an adjuster, a motor vehicle physical damage appraiser, a surplus lines broker, a bail agent, a bail enforcement agent, a bail solicitor and a general agent. (NRS 684A.130, 684B.080, 685A.120, 697.230) Sections 16, 19, 20 and 75 of this bill specify the day on which the license expires after it is originally issued and after it is renewed.
Existing law provides for the licensure of motor vehicle physical damage appraisers and requires a bond to be filed by a motor vehicle physical damage appraiser. (NRS 684B.020, 684B.030) Section 17 of this bill revises the requirements relating to the bond and provides that the bond must meet the requirements set forth in section 3. Existing law provides that the fees paid by an applicant for a license as a motor vehicle physical damage appraiser must be refunded to the applicant if the application is refused. (NRS 684B.060) Section 18 of this bill makes these fees nonrefundable.
Existing law requires a bond to be filed by a company which finances certain insurance premiums. (NRS 686A.330, 686A.360) Section 21 of this bill revises the requirements relating to the bond and provides that the bond must meet the requirements set forth in section 3.
Existing law sets forth specific requirements for various types of insurance policies and contracts and the insurers who issue them. (Chapter 687B of NRS) Sections 22-35 of this bill set forth new provisions to govern certain policies of stop-loss insurance. Section 32 of this bill requires insurers who issue the policies of stop-loss insurance to report to the Commissioner the premiums written in this State for such policies. Section 33 of this bill requires an insurer who issues a policy of stop-loss insurance relating to a group health plan to exercise reasonable diligence with regard to the legitimacy of and authority for the group health plan before issuing the policy. Sections 34 and 35 of this bill: (1) require advance filing with the Commissioner of the policy forms for certain policies of stop-loss insurance, as well as advance approval from the Commissioner for the policy forms; and (2) set forth specific requirements for the contents of the policy forms.
κ2021 Statutes of Nevada, Page 2939 (CHAPTER 478, AB 45)κ
Commissioner of the policy forms for certain policies of stop-loss insurance, as well as advance approval from the Commissioner for the policy forms; and (2) set forth specific requirements for the contents of the policy forms.
Existing law requires a bond or other security to be provided by a viatical settlement investment agent, a broker of viatical settlements, a provider of viatical settlements or a person who obtains a sellers certificate of authority to sell prepaid contracts for funeral services. (NRS 688C.200, 689.125, 689.150, 689.185) Sections 36 and 37 of this bill revise the requirements relating to the bond and provide that the bond must meet the requirements set forth in section 3.
Existing law provides for the renewal of an agents license to solicit the sale of prepaid contracts for funeral services. (NRS 689.035, 689.150, 689.255) Section 38 of this bill specifies the day on which the license expires after it is originally issued and after it is renewed.
Existing law requires a bond or other security to be provided by a person who obtains a sellers permit to sell prepaid contracts for burial services and burial merchandise. (NRS 689.125, 689.455, 689.460, 689.475, 689.495) Section 39 of this bill revises the requirements relating to the bond and provides that the bond must meet the requirements set forth in section 3.
Existing law provides for the renewal of a sellers permit to sell prepaid contracts for burial services and burial merchandise. (NRS 689.125, 689.455, 689.460, 689.475, 689.505) Section 40 of this bill specifies the day on which the permit expires after it is originally issued and after it is renewed.
Existing law provides for the renewal of an agents license to solicit the sale of prepaid contracts for burial services and burial merchandise. (NRS 689.035, 689.455, 689.460, 689.475, 689.530) Section 41 of this bill specifies the day on which the license expires after it is originally issued and after it is renewed.
Existing law sets forth certain requirements concerning insurance coverage for maternity care and pediatric care in the context of individual health insurance, group and blanket health insurance and health insurance for small employers. (NRS 689A.717, 689B.520, 689C.194) Sections 42-44 of this bill revise the language in these existing provisions to be inclusive of different maternity circumstances.
Existing law requires a bond or other security to be provided by a group of persons who obtains a certificate of registration as a voluntary purchasing group. (NRS 689C.560) Section 45 of this bill revises the requirements relating to the bond and provides that the bond must meet the requirements set forth in section 3.
Existing law provides for the renewal of a license as an escrow officer. (NRS 692A.103) Section 54 of this bill revises these requirements and adds requirements relating to: (1) the information included on the license; and (2) a change in a licensees business, residence or electronic mail address.
Existing law requires a bond or other security to be provided by a title agent and a title insurer as a condition of doing business. (NRS 692A.1041) Section 55 of this bill revises the requirements relating to the bond and provides that the bond must meet the requirements set forth in section 3.
Existing law sets forth requirements governing holding companies. (Chapter 692C of NRS) Sections 56.10 to 56.55 and section 57.5 of this bill revise those requirements as with regard to capital requirements and calculations, liquidity stress tests and confidentiality of information.
Existing law requires each insurer or group of insurers each year to submit to the Commissioner a corporate governance annual disclosure containing certain information required by the Commissioner. (NRS 692C.3504) Section 57 of this bill requires each insurer or insurance group, after the first such submission, to submit an amended version of the previous years disclosure which shows the changes made for the current year.
Existing law governs captive insurers. (Chapter 694C of NRS) Under existing law, a licensed captive insurer may apply for and be issued a certificate of dormancy. (NRS 694C.259) Section 58 of this bill revises provisions governing: (1) qualifications needed for a certificate of dormancy; (2) the applicability of certain requirements to a dormant captive insurer; (3) renewal and expiration of a certificate of dormancy; and (4) requirements applicable to a captive insurer whose certificate of dormancy expires.
κ2021 Statutes of Nevada, Page 2940 (CHAPTER 478, AB 45)κ
of dormancy; and (4) requirements applicable to a captive insurer whose certificate of dormancy expires. Existing law also sets forth requirements for a captive insurer to transact business. (NRS 694C.310) Section 59 of this bill revises those requirements, including, without limitation, by providing for periodic reviews of persons who manage the affairs of a captive insurer.
Existing law governs nonprofit hospital and medical or dental service corporations. (Chapter 695B of NRS) Section 61 of this bill expands the list of the provisions of law to which nonprofit hospital and medical or dental service corporations are expressly made subject.
Existing law governs health maintenance organizations. (Chapter 695C of NRS) Section 62 of this bill expands the list of the provisions of law to which health maintenance organizations are expressly made subject.
Existing law governs organizations for dental care. (Chapter 695D of NRS) Section 63 of this bill expands the list of the provisions of law to which organizations for dental care are expressly made subject.
Existing law governs risk retention groups. (Chapter 695E of NRS) Under existing law a risk retention group chartered in a state other than this State must comply with certain requirements before seeking to transact insurance as a risk retention group in this State. (NRS 695E.140) Section 65 of this bill clarifies that such a risk retention group must comply with the existing statutory requirements including, without limitation, that the risk retention group must: (1) submit a statement of registration; and (2) pay any fees associated with the statement of registration. Section 66 of this bill expands the list of the provisions of law to which risk retention groups and their agents and representatives are expressly made subject.
Existing law governs prepaid limited health service organizations. (Chapter 695F of NRS) Section 67 of this bill expands the list of the provisions of law to which prepaid limited health service organizations are expressly made subject. Section 68 of this bill changes which provisions of law govern certain investments by prepaid limited health service organizations. Section 69 of this bill revises provisions governing examinations and investigations of prepaid limited health service organizations.
Existing law provides for the renewal of a certificate as an exchange enrollment facilitator. (NRS 695J.140) Section 70 of this bill revises the requirements for renewal.
Existing law requires a bond or other security to be provided by a person who renders or agrees to render motor club services. (NRS 696A.080) Section 71 of this bill requires that the bond must meet the requirements set forth in section 3.
Existing law provides for the licensure of a club agent for a motor club. (NRS 696A.300) Section 73 of this bill specifies the day on which the license expires after it is originally issued and after it is renewed.
Existing law requires a bond or other security to be provided by a self-insured employer for the purposes of the statutes governing industrial insurance. (NRS 616A.305, 616B.300) Section 78 of this bill deletes requirements relating to termination of the bond. These existing provisions are subsumed within the new provisions in section 3 governing bonds.
Existing law requires a bond or other security to be provided by an association of self-insured public or private employers for the purposes of the statutes governing industrial insurance. (NRS 616A.050, 616A.055, 616B.353) Section 79 of this bill revises requirements relating to termination of the bond.
In addition to complying with certain requirements applicable to associations of self-insured public or private employers, existing law requires an association of self-insured private employers to satisfy certain fiscal requirements. Specifically, existing law requires an association of self-insured private employers to: (1) at the time of initial qualification to be an association of self-insured employers and for the first 3 years of its successful operation, have a combined tangible net worth of all members in the association of at least $2,500,000; or (2) after 3 years of successful operation as a qualified association of self-insured private employers, have combined net cash flows from operating activities plus net cash flows from financing activities of all members in the association equal to five times the average of claims paid for each of the last 3 years or $7,500,000, whichever is less.
κ2021 Statutes of Nevada, Page 2941 (CHAPTER 478, AB 45)κ
members in the association equal to five times the average of claims paid for each of the last 3 years or $7,500,000, whichever is less. In lieu of satisfying these fiscal requirements, existing law authorizes the association or its members to deposit with the Commissioner of Insurance a solvency bond in an aggregate amount of at least $2,500,000. (NRS 616B.353) Section 85.5 of this bill revises these fiscal requirements until June 30, 2023. Specifically, section 85.5: (1) provides that until June 30, 2023, an association of self-insured private employers is deemed to be in compliance with these fiscal requirements if and only if the association complies with the requirement that the association has a combined tangible net worth of all members in the association of at least $2,500,000; and (2) retains the ability of an association to obtain a solvency bond in lieu of the tangible net worth requirement and the authority of the Commissioner to adjust the amount of any such bond.
Section 86 of this bill repeals existing law governing the cancellation of bonds of title agents and title insurers. These existing provisions are subsumed within the new provisions in section 3 governing bonds. Section 86 also repeals existing law specifically governing investments by prepaid limited health service organizations. These existing provisions are replaced by revisions made in sections 67 and 68, which address such investments.
Section 87 of this bill provides various effective dates and expiration dates for different sections of this bill.
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 and 2. (Deleted by amendment.)
Sec. 3. Chapter 678B of NRS is hereby amended by adding thereto a new section to read as follows:
1. This section applies to every person regulated by the Commissioner or the Division for which a specific statute other than this section requires a bond for the person to qualify for a license or authorizes the person to file a bond as security to qualify for a license. This section does not require any licensee to obtain a bond unless one is otherwise required by law. The provisions of this section govern the bond and any claim against the bond to the extent the provisions of this section do not conflict with the provisions of the specific statutes which govern the license.
2. A person may provide a substitute form of security in lieu of the bond if the specific statutes which govern the license authorize the substitute form of security.
3. Except as otherwise provided in this section, the person must deposit with the Commissioner and keep in full force and effect a surety bond payable to the State of Nevada, in an amount set forth by the Commissioner in regulation. The bond must be executed by a corporate surety which is authorized to do business in this State and is satisfactory to the Commissioner. The bond must name as principal the person, and must be in substantially the following form:
Know All Persons by These Presents, that ........................, as principal, and ........................, as surety, are held and firmly bound unto the State of Nevada for the use and benefit of any person who suffers damages because of a violation of any of the provisions of Nevada law relating to insurance, in the sum of ............, lawful money of the United States, to be paid to the State of Nevada for such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
κ2021 Statutes of Nevada, Page 2942 (CHAPTER 478, AB 45)κ
such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
The condition of that obligation is such that: Whereas, the Commissioner of Insurance of the Department of Business and Industry of the State of Nevada has issued the principal a ............ (license, permit, certificate of registration, certificate of authority or other authorization) pursuant to Nevada law relating to insurance, and the principal is required to furnish a bond, which is conditioned as set forth in this bond:
Now, therefore, if the principal, the principals agents and employees, strictly, honestly and faithfully comply with the provisions of Nevada law relating to insurance, and pay all damages suffered by any person because of a violation of any of the provisions of Nevada law relating to insurance, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of Nevada law relating to insurance, then this obligation is void; otherwise it remains in full force.
This bond becomes effective on the ..........(day) of ................(month) of ......(year), and remains in force until the surety is released from liability by the Commissioner of Insurance or until this bond is cancelled by the surety. The surety may cancel this bond and be relieved of further liability hereunder by giving written notice to the principal and to the Commissioner of Insurance of the Department of Business and Industry of the State of Nevada in accordance with Nevada law.
In Witness Whereof, the seal and signature of the principal hereto is affixed, and the corporate seal and the name of the surety hereto is affixed and attested by its authorized officers at ........................, Nevada, this ................(day) of ................(month) of ......(year).
.............................................................. (Seal)
Principal
.............................................................. (Seal)
Surety
By....................................................................
Attorney-in-fact
.........................................................................
Nevada licensed insurance agent
4. The bond must remain in force until released by the Commissioner or cancelled by the surety. Except as otherwise provided by law, the surety may cancel the bond upon 60 days advance written notice to the Commissioner and to the person to whom the bond relates. Cancellation of the bond does not limit liability which was incurred under the bond before the cancellation.
5. If the bond is cancelled, the license of the person to whom the bond relates is revoked by operation of law as of the date the bond is cancelled unless the person:
κ2021 Statutes of Nevada, Page 2943 (CHAPTER 478, AB 45)κ
(a) Has on file another bond which meets all applicable requirements;
(b) Before the date the bond is cancelled, provides a replacement bond which meets all applicable requirements; or
(c) Before the date the bond is cancelled, provides a substitute form of security which is authorized by and meets the requirements of the specific statutes which govern the license.
6. As used in this section, license means any license, permit, certificate of registration, certificate of authority or other authorization to engage in an activity relating to insurance which is issued to a person by the Commissioner or the Division.
Sec. 3.2. NRS 679B.124 is hereby amended to read as follows:
679B.124 1. The Commissioner shall:
(a) Develop, prescribe and make available on an Internet website maintained by the Division a form letter that a health carrier must use to notify a provider of health care of the denial of his or her application to be included in the network of providers of the health carrier. The form letter must include, without limitation, a place for the health carrier to explain the reason for the denial of the application.
(b) Hold hearings to solicit public input when developing the form letter described in paragraph (a) and consider such input when developing the form letter.
2. A health carrier shall submit to the Commissioner a copy of each form letter sent to a provider of health care pursuant to subsection 1 . [at the same time the letter is sent to the provider of health care.] The Commissioner shall determine the frequency with which such form letters must be submitted by the health carrier to the Commissioner. Except as otherwise provided in subsection 3, the forms submitted [pursuant] to the Commissioner pursuant to this subsection and the information contained therein are confidential.
3. The Commissioner shall:
(a) Annually compile a report using aggregated data from the forms collected pursuant to subsection 2 concerning trends in the denial of applications of providers of health care to be included in the network of providers of a health carrier. The report must include, without limitation, the number of total denials, the number of denials for different types of providers of health care, the number of denials by different carriers and the reasons for such denials.
(b) Post the report on an Internet website maintained by the Division.
(c) Submit the report to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the Legislature.
4. As used in this section, health carrier means an entity subject to the insurance laws and regulations of this State, or subject to the jurisdiction of the Commissioner, that contracts or offers to contract to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services, including, without limitation, a sickness and accident health insurance company, a health maintenance organization, a nonprofit hospital and health service corporation or any other entity providing a plan of health insurance, health benefits or health care services.
Sec. 3.5. NRS 680A.250 is hereby amended to read as follows:
680A.250 1. Before the Commissioner may authorize it to transact insurance in this state, each insurer must appoint the Commissioner [, and the Commissioners successors in office,] as its attorney in fact to receive service of legal process issued against the insurer in this state.
κ2021 Statutes of Nevada, Page 2944 (CHAPTER 478, AB 45)κ
service of legal process issued against the insurer in this state. The appointment must be made on a form as designated and furnished by the Commissioner, and must be accompanied by a copy of a resolution of the board of directors or like governing body of the insurer, if an incorporated insurer, showing that those officers who executed the appointment were authorized to do so on behalf of the insurer.
2. The appointment must be irrevocable, must bind the insurer and any successor in interest to the assets or liabilities of the insurer, and must remain in effect as long as there is in force any contract of the insurer in this state or any obligation of the insurer arising out of its transactions in this state.
3. Service of such process against a foreign or alien insurer must be made only by service thereof upon the Commissioner.
4. Service of such process against a domestic insurer may be made as provided in this section, or in any other manner provided by Nevada Rules of Civil Procedure.
5. At the time of application for a certificate of authority the insurer shall file the appointment with the Commissioner, together with a designation of the person to whom process against it served upon the Commissioner is to be forwarded. The insurer shall provide written notice to the Commissioner of any change of such a designation by a new filing.
6. Service of process against an insurer for whom the Commissioner is attorney in fact must be made in accordance with NRS 680A.260.
Sec. 4. NRS 680A.260 is hereby amended to read as follows:
680A.260 1. [Service of process against an insurer for whom the Commissioner is attorney] If the Commissioner is designated by specific statute as attorney in fact for the purpose of receiving service of process, such service must be made by delivering to and leaving with the [Commissioner, the Commissioners deputy, or a person in apparent charge of the office of the Commissioner during the Commissioners absence, two copies] Division, one copy of the process, together with the fee therefor as specified in NRS 680B.010, taxable as costs in the action.
2. Upon such service , the [Commissioner] Division shall forthwith [mail by certified mail one of the copies of] forward such process, with the date and time of service of the same on the [Commissioner] Division noted thereon, to the person currently designated [by the insurer] to receive the copy as provided [in NRS 680A.250.] by specific statute. Service of process is complete when the copy has been so [mailed.] forwarded.
3. Process served in the manner provided by this section for all purposes constitutes valid and binding personal service [upon the insurer] within this state. If summons is served under this section, the time within which the insurer is required to appear must be extended an additional 10 days beyond that otherwise allowed by Nevada Rules of Civil Procedure.
4. The Commissioner shall keep a record of the day of service upon him or her of all legal process.
5. For the purposes of this section, process includes only a summons or the initial documents served in an action. The Commissioner is not required to serve any documents after the initial service of process.
Sec. 5. 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:
κ2021 Statutes of Nevada, Page 2945 (CHAPTER 478, AB 45)κ
1. Insurers 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
8. Adjusters, as defined in NRS 684A.030, licenses and renewals:
(a) Application and license.............................................................................................................................................. $125
(b) 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:
κ2021 Statutes of Nevada, Page 2946 (CHAPTER 478, AB 45)κ
(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
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
κ2021 Statutes of Nevada, Page 2947 (CHAPTER 478, AB 45)κ
(c) Appointment fee for each title insurer....................................................................................................................... $15
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. Reinsurance intermediary broker or manager:
(a) Application and license.............................................................................................................................................. $125
(b) Triennial renewal of each license............................................................................................................................... 125
29. Agents for and sellers of prepaid burial contracts:
(a) Application and certificate or license...................................................................................................................... $125
(b) Triennial renewal........................................................................................................................................................... 125
30. Risk retention groups:
(a) Initial registration........................................................................................................................................................ $250
(b) Each annual continuation of a certificate of registration........................................................................................ 250
31. Required filing of forms:
(a) For rates and policies.................................................................................................................................................... $25
(b) For riders and endorsements.......................................................................................................................................... 10
32. 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
33. Insurance consultants:
(a) Application and license.............................................................................................................................................. $125
(b) Triennial renewal........................................................................................................................................................... 125
34. Licensees 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
35. Purchasing groups:
(a) Initial registration and review of an application.................................................................................................... $100
(b) Each annual continuation of registration................................................................................................................... 100
36. Exchange enrollment facilitators:
(a) Application and certificate......................................................................................................................................... $125
(b) Triennial renewal of each certificate.......................................................................................................................... 125
(c) Temporary certificate...................................................................................................................................................... 10
37. Agent who performs utilization reviews:
(a) Application and registration.................................................................................................................................... $250
(b) Renewal of registration............................................................................................................................................... 250
38. Motor club:
(a) Filing of application.................................................................................................................................................. $500
(b) Issuance of certificate.................................................................................................................................................. 283
κ2021 Statutes of Nevada, Page 2948 (CHAPTER 478, AB 45)κ
39. Motor club agent:
(a) Application and license............................................................................................................................................... $78
(b) Appointment by each motor club................................................................................................................................... 5
(c) Triennial renewal of each license................................................................................................................................ 78
40. Title plant company:
(a) Application and license............................................................................................................................................... $10
(b) Renewal of license.......................................................................................................................................................... 10
41. Service contract provider:
(a) Application and registration................................................................................................................................. $2,000
(b) Renewal of registration............................................................................................................................................ 2,000
42. 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. 6. (Deleted by amendment.)
Sec. 6.05. Chapter 681A of NRS is hereby amended by adding thereto the provisions set forth as sections 6.1 to 6.96, inclusive, of this act:
Sec. 6.1. Covered agreement means an agreement entered into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, 31 U.S.C. §§ 313 and 314, that is currently in effect or in a period of provisional application and addresses the elimination, under specified conditions, of collateral requirements as a condition for entering into any reinsurance agreement with a ceding insurer domiciled in this State or for allowing the ceding insurer to recognize credit for reinsurance.
Sec. 6.12. NAIC means the National Association of Insurance Commissioners or its successor organization.
Sec. 6.14. Reciprocal jurisdiction means a jurisdiction, as designated by the Commissioner pursuant to section 6.5 of this act, which is one of the following:
1. A non-United States jurisdiction that is subject to an in-force covered agreement with the United States, each within its legal authority, or, in the case of a covered agreement between the United States and the European Union, is a member state of the European Union;
2. A United States jurisdiction that meets the requirements for accreditation under the NAIC financial standards and accreditation program; or
3. A qualified jurisdiction, as determined by the Commissioner pursuant to NRS 681A.1553, which is not otherwise described in subsections 1 and 2 and which the Commissioner determines meets certain additional requirements, consistent with the terms and conditions of in-force covered agreements, including, without limitation, that the qualified jurisdiction:
(a) Provides that an insurer which has its head office or is domiciled in such qualified jurisdiction shall receive credit for reinsurance ceded to a United States domiciled assuming insurer in the same manner as credit for reinsurance is received for reinsurance assumed by insurers domiciled in such qualified jurisdiction;
(b) Does not require a United States-domiciled assuming insurer to establish or maintain a local presence as a condition for entering into a reinsurance agreement with any ceding insurer subject to regulation by the non-United States jurisdiction or as a condition to allow the ceding insurer to recognize credit for such reinsurance;
κ2021 Statutes of Nevada, Page 2949 (CHAPTER 478, AB 45)κ
(c) Recognizes the United Statess state regulatory approach to group supervision and group capital, by providing written confirmation by a competent regulatory authority, in the qualified jurisdiction, that insurers and insurance groups that are domiciled or maintain their headquarters in this State or another jurisdiction accredited by the NAIC shall be subject only to worldwide prudential insurance group supervision including, without limitation, worldwide group governance, solvency and capital, and reporting, as applicable, by the Commissioner or the commissioner of the domiciliary state and will not be subject to group supervision at the level of the worldwide parent undertaking of the insurance or reinsurance group by the qualified jurisdiction; and
(d) Provides written confirmation by a competent regulatory authority in such qualified jurisdiction that information regarding insurers and their parent, subsidiary, or affiliated entities, if applicable, will be provided to the Commissioner in accordance with a memorandum of understanding or similar document between the Commissioner and the qualified jurisdiction, including, without limitation, the International Association of Insurance Supervisors Multilateral Memorandum of Understanding or other multilateral memoranda of understanding coordinated by the NAIC.
Sec. 6.16. Solvent scheme of arrangement means a foreign or alien statutory or regulatory compromise procedure subject to requisite majority creditor approval and judicial sanction in the assuming insurers home jurisdiction either to finally commute liabilities of duly noticed classed members or creditors of a solvent debtor, or to reorganize or restructure the debts and obligations of a solvent debtor on a final basis, and which may be subject to judicial recognition and enforcement of the arrangement by a governing authority outside the ceding insurers home jurisdiction.
Sec. 6.25. The Commissioner must allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is licensed to write reinsurance and meets each of the conditions set forth below:
1. The assuming insurer must have its head office or be domiciled in, as applicable, and be licensed in a reciprocal jurisdiction.
2. The assuming insurer must have and maintain, on an ongoing basis, minimum capital and surplus, or its equivalent, calculated according to the methodology of its domiciliary jurisdiction on at least an annual basis as of the preceding December 31 or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, and confirmed as set forth in section 6.4 of this act, in the following amounts:
(a) Not less than $250,000,000; or
(b) If the assuming insurer is an association, including, without limitation, incorporated and individual unincorporated underwriters, which has and maintains, on an ongoing basis, minimum capital and surplus equivalents, net of liabilities, in the reciprocal jurisdiction where the assuming insurer has its head office or is domiciled, as applicable, and is also licensed, which are calculated according to the methodology applicable in its domiciliary jurisdiction:
(1) Minimum capital and surplus equivalents, net of liabilities, or own funds which are equivalent, of at least $250,000,000; and
(2) A central fund with a balance of the equivalent of at least $250,000,000.
3. The assuming insurer must have and maintain on an ongoing basis a minimum solvency or capital ratio, as applicable, as follows:
κ2021 Statutes of Nevada, Page 2950 (CHAPTER 478, AB 45)κ
(a) If the assuming insurer has its head office or is domiciled in a reciprocal jurisdiction which meets the requirements of subsection 1 of section 6.14 of this act, the ratio specified in the applicable covered agreement;
(b) If the assuming insurer is domiciled in a reciprocal jurisdiction which meets the requirements of subsection 2 of section 6.14 of this act, a risk-based capital ratio of 300 percent of the authorized control level, calculated in accordance with the formula developed by the NAIC; or
(c) If the assuming insurer is domiciled in a reciprocal jurisdiction which meets the requirements of subsection 3 of section 6.14 of this act, after consultation with the reciprocal jurisdiction and considering any applicable recommendations published by the NAIC, such solvency or capital ratio as the Commissioner determines to be an effective measure of solvency.
4. The assuming insurer must agree to and provide adequate assurance to the Commissioner, in the form of a properly executed Certificate of Reinsurer Domiciled In Reciprocal Jurisdiction Form RJ-1, of each of the following requirements:
(a) The assuming insurer must agree to provide prompt written notice and explanation to the Commissioner if it falls below the minimum requirements set forth in subsection 2 or 3, or if any regulatory action is taken against it for serious noncompliance with applicable law.
(b) The assuming insurer must consent in writing to the jurisdiction of the courts of this State and to the appointment of the Commissioner as agent for service of process. The Commissioner may also require that such consent for service of process be provided to the Commissioner and included in each reinsurance agreement under the Commissioners jurisdiction. Nothing in this paragraph limits, or in any way alters, the capacity of parties to a reinsurance agreement to agree to alternative dispute resolution mechanisms, except to the extent such agreements are unenforceable under applicable insolvency or delinquency laws.
(c) The assuming insurer must consent in writing to pay all final judgments, wherever enforcement is sought, obtained by a ceding insurer or its legal successor, that have been declared enforceable in the jurisdiction where the judgment was obtained.
(d) Each reinsurance agreement must include a provision requiring the assuming insurer to provide security in an amount equal to 100 percent of the assuming insurers liabilities attributable to reinsurance ceded pursuant to that agreement if the assuming insurer resists enforcement of a final judgment that is enforceable under the law of the jurisdiction in which it was obtained or a properly enforceable arbitration award, whether obtained by the ceding insurer or by its legal successor on behalf of its resolution estate, if applicable.
(e) The assuming insurer must confirm that it is not presently participating in any solvent scheme of arrangement which involves this States ceding insurers, and agree to notify the ceding insurer and the Commissioner and to provide security in an amount equal to 100 percent of the assuming insurers liabilities to the ceding insurer consistent with the terms of the scheme, should the assuming insurer enter into such a solvent scheme of arrangement. The security must be in a form consistent with the provisions of NRS 681A.1551 to 681A.1557, inclusive, and NRS 681A.240, as specified by the Commissioner by regulation.
κ2021 Statutes of Nevada, Page 2951 (CHAPTER 478, AB 45)κ
(f) The assuming insurer must agree in writing to meet the applicable information filing requirements as set forth in section 6.3 of this act.
Sec. 6.3. The assuming insurer or its legal successor must provide, if requested by the Commissioner, on behalf of itself and any legal predecessors, the following documentation to the Commissioner:
1. For the 2 years preceding entry into the reinsurance agreement and on an annual basis thereafter, the assuming insurers annual audited financial statements, in accordance with the applicable law of the jurisdiction of its head office or domiciliary jurisdiction, as applicable, including, without limitation, the external audit report;
2. For the 2 years preceding entry into the reinsurance agreement, the solvency and financial condition report or actuarial opinion, if filed with the assuming insurers supervisor;
3. Prior to entry into the reinsurance agreement and not more than semiannually thereafter, an updated list of all disputed and overdue reinsurance claims outstanding for 90 days or more, regarding reinsurance assumed from ceding insurers domiciled in the United States; and
4. Before entry into the reinsurance agreement and not more than semiannually thereafter, information regarding the assuming insurers assumed reinsurance by ceding insurer, ceded reinsurance by the assuming insurer, and reinsurance recoverable on paid and unpaid losses by the assuming insurer to allow for the evaluation of the criteria set forth in section 6.35 of this act.
Sec. 6.35. The assuming insurer must maintain a practice of prompt payment of claims under reinsurance agreements. The lack of prompt payment will be evidenced if any of the following criteria is met:
1. More than 15 percent of the reinsurance recoverables from the assuming insurer are overdue and in dispute as reported to the Commissioner;
2. More than 15 percent of the assuming insurers ceding insurers or reinsurers have overdue reinsurance recoverable on paid losses of 90 days or more which are not in dispute and which exceed for each ceding insurer $100,000, unless otherwise specified in an applicable covered agreement; or
3. The aggregate amount of reinsurance recoverable on paid losses which are not in dispute, but are overdue by 90 days or more, exceeds $50,000,000, unless otherwise specified in an applicable covered agreement.
Sec. 6.4. The assuming insurers supervisory authority must confirm to the Commissioner on an annual basis, as of the preceding December 31 or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, that the assuming insurer complies with the requirements set forth in subsections 2 and 3 of this act. Nothing in this section precludes an assuming insurer from providing the Commissioner with information on a voluntary basis.
Sec. 6.45. 1. The Commissioner shall timely create and publish a list of reciprocal jurisdictions.
2. The Commissioners list:
(a) Must include, without limitation, any reciprocal jurisdiction which meets the requirements of subsection 1 or 2 of section 6.14 of this act;
κ2021 Statutes of Nevada, Page 2952 (CHAPTER 478, AB 45)κ
(b) May include, without limitation, any other reciprocal jurisdiction which is included on an applicable list of reciprocal jurisdictions published by the NAIC; and
(c) May include, without limitation, a reciprocal jurisdiction that does not appear on an applicable list of reciprocal jurisdictions published by the NAIC if the Commissioner has approved the reciprocal jurisdiction pursuant to applicable law or in accordance with applicable criteria published by the NAIC.
3. The Commissioner may remove a jurisdiction from the list of reciprocal jurisdictions upon a determination that the jurisdiction no longer meets one or more of the requirements of a reciprocal jurisdiction, as provided by applicable law or in accordance with an applicable process published by the NAIC, except that the Commissioner must not remove from the list a reciprocal jurisdiction which meets the requirements of subsection 1 or 2 of section 6.14 of this act. Upon removal of a reciprocal jurisdiction from the Commissioners list, credit for reinsurance ceded to an assuming insurer which has its home office or is domiciled in that jurisdiction must be allowed if otherwise allowed pursuant to NRS 681A.110 through 681A.240, inclusive.
Sec. 6.5. 1. The Commissioner shall timely create and publish a list of assuming insurers that have satisfied the conditions set forth in this section and to which cessions must be granted credit in accordance with this section. The Commissioner may add an assuming insurer to the list if a NAIC accredited jurisdiction has added the assuming insurer to a list of such assuming insurers or if, upon initial eligibility, the assuming insurer submits the information to the Commissioner as required under subsection 4 of section 6.25 of this act and complies with any additional requirements that the Commissioner may impose by regulation, except to the extent that the regulations conflict with an applicable covered agreement.
2. If an NAIC accredited jurisdiction has determined that the conditions set forth in sections 6.25 to 6.4, inclusive, of this act have been met, the Commissioner may defer to that jurisdictions determination and add the applicable assuming insurer to the list of assuming insurers to which cessions must be granted credit in accordance with this section. The Commissioner may accept financial documentation filed with another NAIC accredited jurisdiction or with the NAIC for the purpose of satisfying the requirements set forth in sections 6.25 to 6.4, inclusive, of this act.
3. When requesting that the Commissioner defer to another NAIC accredited jurisdictions determination, an assuming insurer must submit a properly executed Form RJ-1 and additional information as the Commissioner may require. If another state has received such a request, notified other states through the NAIC and provided relevant information with respect to the determination of eligibility, the Commissioner may accept such notice and information for the purpose of this section.
Sec. 6.55. 1. If the Commissioner determines that an assuming insurer no longer meets one or more of the requirements under sections 6.1 to 6.65, inclusive, of this act, the Commissioner may revoke or suspend the eligibility of the assuming insurer for recognition under this section.
2. While an assuming insurers eligibility is suspended, no reinsurance agreement issued, amended or renewed after the effective date of the suspension qualifies for credit except to the extent that the assuming insurers obligations under the contract are secured in accordance with NRS 681A.240.
κ2021 Statutes of Nevada, Page 2953 (CHAPTER 478, AB 45)κ
of the suspension qualifies for credit except to the extent that the assuming insurers obligations under the contract are secured in accordance with NRS 681A.240.
3. If an assuming insurers eligibility is revoked, no credit for reinsurance may be granted after the effective date of the revocation with respect to any reinsurance agreements entered into by the assuming insurer, including reinsurance agreements entered into prior to the date of revocation, except to the extent that the assuming insurers obligations under the contract are secured in a form acceptable to the Commissioner and consistent with the provisions of NRS 681A.240.
Sec. 6.6. Before denying statement credit or imposing a requirement to post security with respect to section 6.55 of this act or adopting any similar requirement that will have substantially the same regulatory impact as security, the Commissioner:
1. Shall notify the ceding insurer, the assuming insurer and the assuming insurers supervisory authority that the assuming insurer no longer satisfies one of the conditions set forth in sections 6.25 to 6.4, inclusive, of this act;
2. Shall provide the assuming insurer with 30 days from the notice provided pursuant to subsection 1 to submit a plan to remedy the defect, and 90 days from the notice provided pursuant to subsection 1 to remedy the defect, except in exceptional circumstances determined by the Commissioner in which a shorter period is necessary for policyholder and other consumer protection;
3. After the expiration of 90 days or less, as specified in subsection 2, if the Commissioner determines that no or insufficient action was taken by the assuming insurer, may impose additional requirements upon the assuming insurer as determined by the Commissioner to be appropriate; and
4. Shall, if applicable, provide a written explanation to the assuming insurer of any additional requirements imposed pursuant to subsection 3.
Sec. 6.65. If subject to a legal process of rehabilitation, liquidation or conservation, as applicable, the ceding insurer, or its representative, may seek and, if determined appropriate by the court in which the proceedings are pending, may obtain an order requiring that the assuming insurer post security for all outstanding ceded liabilities.
Sec. 6.7. Nothing in sections 6.1 to 6.75, inclusive, of this act limits or in any way alters the capacity of a party to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement, except as expressly prohibited by NRS 681A.110 through 681A.240, inclusive, sections 6.1 to 6.75, inclusive, of this act or other applicable law.
Sec. 6.75. 1. Credit may be taken under sections 6.1 to 6.75, inclusive, of this act only for reinsurance agreements entered into, amended, or renewed on or after October 1, 2021, and only with respect to losses incurred and reserves reported on or after the later of:
(a) The date on which the assuming insurer has met all eligibility requirements pursuant to sections 6.25 to 6.4, inclusive, of this act; or
(b) The effective date of the new reinsurance agreement, amendment, or renewal.
2. The provisions of this section do not alter or impair a ceding insurers right to take credit for reinsurance, to the extent that credit is not available under sections 6.1 to 6.75, inclusive, of this act, as long as the reinsurance qualifies for credit under any other applicable provision of NRS 681A.110 through 681A.240, inclusive.
κ2021 Statutes of Nevada, Page 2954 (CHAPTER 478, AB 45)κ
available under sections 6.1 to 6.75, inclusive, of this act, as long as the reinsurance qualifies for credit under any other applicable provision of NRS 681A.110 through 681A.240, inclusive.
3. Nothing in sections 6.1 to 6.75, inclusive, of this act authorize an assuming insurer to withdraw or reduce the security provided under any reinsurance agreement except as permitted by the terms of the agreement.
4. Nothing in sections 6.1 to 6.75, inclusive, of this act limit, or in any way alter, the capacity of a party to any reinsurance agreement to renegotiate the agreement.
Sec. 6.8. If the assuming insurer does not meet the requirements of NRS 681A.110, 681A.160, 681A.170 and sections 6.1 to 6.75, inclusive, of this act, credit permitted by NRS 681A.180, 681A.190 or 681A.155 to 681A.1557, inclusive, must not be allowed unless the assuming insurer has agreed to the following conditions set forth in the trust agreement:
1. Notwithstanding any provision to the contrary in the trust instrument, if the trust fund consists of an amount that is less than the amount required pursuant to NRS 681A.180 or 681A.190, or if the grantor of the trust fund is declared to be insolvent or placed into receivership, rehabilitation, liquidation or a similar proceeding in accordance with the laws of the grantors state or country of domicile, the trustee of the trust fund must comply with an order of the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in that state or country or a court of competent jurisdiction requiring the trustee to transfer to that commissioner or person all the assets of the trust fund;
2. The assets of the trust fund must be distributed by and claims filed with and valued by the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in accordance with the laws of the state in which the trust fund is domiciled that are applicable to the liquidation of domestic insurers in that state;
3. If the commissioner of insurance or other appropriate person with regulatory authority over the trust fund determines that the assets of the trust fund or any portion of the trust fund are not required to satisfy any claim of any ceding insurer of the grantor of the trust fund in the United States, the assets must be returned by that commissioner or person to the trustee of the trust fund for distribution in accordance with the trust agreement; and
4. The grantor of the trust must waive any right that:
(a) Is otherwise available to the grantor under the laws of the United States; and
(b) Is inconsistent with the provisions of this section.
Sec. 6.85. NRS 681A.010 is hereby amended to read as follows:
681A.010 1. As used in this Code, unless the context otherwise requires, the words and terms defined in NRS 681A.020 to 681A.080, inclusive, and sections 6.1 to 6.16, inclusive, have the meanings ascribed to them in those sections.
2. It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in this chapter, and the inclusion of such coverage within one definition shall not exclude it as to any other kind of insurance within the definition of which such coverage is likewise reasonably includable.
κ2021 Statutes of Nevada, Page 2955 (CHAPTER 478, AB 45)κ
Sec. 6.9. NRS 681A.145 is hereby amended to read as follows:
681A.145 1. The Commissioner may adopt regulations applicable to arrangements for reinsurance relating to:
(a) Life insurance policies with guaranteed non-level gross premiums or guaranteed non-level benefits;
(b) Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;
(c) Variable annuities with guaranteed death or living benefits;
(d) Policies for long-term care insurance; or
(e) Such other life and health insurance and annuity products as to which the National Association of Insurance Commissioners adopts model regulatory requirements with respect to credit for reinsurance.
2. A regulation adopted pursuant to this section may require the ceding insurer, in calculating the amounts or forms of security required to be held pursuant to regulations adopted pursuant to this section, to use the Valuation Manual, as defined in NRS 681B.0071, which is in effect on the date as of which the calculation is made, to the extent applicable.
3. A regulation adopted pursuant to this section must not apply to a cession to an assuming insurer that:
(a) Meets the conditions set forth in sections 6.1 to 6.75, inclusive, of this act in this State or is operating in accordance with provisions substantially equivalent to sections 6.1 to 6.8, inclusive, of this act in five or more other states;
(b) Is certified in this State or, if this State has not adopted regulations which provide for an assuming insurer to satisfy the requirements of NRS 681A.155 for credit to be allowed, certified in a minimum of five other states; or
[(b)] (c) Maintains at least $250,000,000 in capital and surplus when determined in accordance with the Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners, as amended, excluding the impact of any permitted or prescribed practices, and:
(1) Is licensed in at least 26 states; or
(2) Is licensed in at least 10 states, and licensed or accredited in at least 35 states.
Sec. 6.92. NRS 681A.150 is hereby amended to read as follows:
681A.150 1. No credit may be taken as an asset or as a deduction from liability on account of reinsurance unless the reinsurer is authorized to transact insurance or reinsurance in this state [or] pursuant to the requirements of NRS 681A.110, 681A.155 to 681A.190, inclusive, [and in any of these cases] 681A.220 or sections 6.1 to 6.8, inclusive, of this act. If the reinsurer is authorized pursuant to NRS 681A.180 or 681A.190, the requirements of NRS 681A.200 [and] must also be met. If the reinsurer is authorized pursuant to NRS 681A.170, 681A.180 or 681A.190, the requirements of 681A.210 must also [are] be met.
2. Credit shall be allowed for the cases of authorization pursuant to NRS 681A.110 to 681A.160, inclusive, or 681A.170 only with respect to cessions of those kinds or classes of business for which the assuming insurer is licensed or otherwise permitted to write or assume in its state of domicile or, in the case of a United States branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance.
κ2021 Statutes of Nevada, Page 2956 (CHAPTER 478, AB 45)κ
Sec. 6.94. NRS 681A.180 is hereby amended to read as follows:
681A.180 1. [Except as otherwise provided in subsection 5, credit] Credit must be allowed if reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified financial institution in the United States for the payment of the valid claims of its policyholders and ceding insurers in the United States, their assigns and successors in interest. The assuming insurer shall:
(a) Report annually to the Commissioner information substantially the same as that required to be reported on the National Association of Insurance Commissioners form of annual statement by licensed insurers to enable the Commissioner to determine the sufficiency of the trust fund; and
(b) Submit to the authority of the Commissioner to examine its books and records.
2. In the case of a single assuming insurer:
(a) The trust must consist of an account in trust equal to the assuming insurers liabilities attributable to business written in the United States and the assuming insurer shall maintain a surplus in trust of not less than $20,000,000.
(b) Three years after the assuming insurer has permanently discontinued underwriting new business secured by the trust, the commissioner of insurance of the state with principal regulatory authority over the trust may, at any time, authorize a reduction in the required trustee surplus, but only after finding, based on the assessment of the risk, that the new required surplus level is adequate for the protection of ceding insurers, policyholders and claimants in the United States in light of a reasonably adverse loss development. The risk assessment may involve an actuarial review, including an independent analysis of reserves and cash flows, and must consider all material risk factors, including, as applicable, the lines of business involved, the stability of the incurred loss estimates and the effect of the surplus requirements on the assuming insurers liquidity or solvency. The minimum required trustee surplus may not be reduced to an amount less than 30 percent of the assuming insurers liabilities attributable to reinsurance ceded by ceding insurers domiciled in the United States and covered by the trust.
3. In the case of a group of incorporated and individual unincorporated underwriters:
(a) The trust must consist of an account in trust equal to the groups liabilities attributable to business written in the United States.
(b) The group shall:
(1) Maintain a surplus in trust of which $100,000,000 must be held jointly for the benefit of ceding insurers in the United States to any member of the group; and
(2) Make available to the Commissioner an annual certification of the solvency of each underwriter by the groups domiciliary regulator and its independent public accountants.
(c) The incorporated members of the group:
(1) Shall not engage in any business other than underwriting as a member of the group; and
(2) Must be subject to the same level of regulation and solvency control by the applicable regulatory agency of the state in which the group is domiciled as the individual unincorporated members of the group.
4. Credit for reinsurance must not be granted unless the form of the trust and any amendments to the trust have been approved by the commissioner of insurance of the state in which the trust is domiciled or the commissioner of insurance of another state that, under the terms of the trust instrument, has accepted responsibility for regulatory authority over the trust.
κ2021 Statutes of Nevada, Page 2957 (CHAPTER 478, AB 45)κ
commissioner of insurance of the state in which the trust is domiciled or the commissioner of insurance of another state that, under the terms of the trust instrument, has accepted responsibility for regulatory authority over the trust. The form of the trust and any amendments to the trust must also be filed with each state in which the ceding insurer beneficiaries are domiciled or located. The trust instrument must provide that:
(a) Contested claims become valid and enforceable from money held in the trust to the extent such claims remain unsatisfied within 30 days after the entry of the final order of any court of competent jurisdiction in the United States;
(b) Legal title to the assets of the trust must be vested in the trustees for the benefit of the grantors ceding insurers in the United States, their assigns and successors in interest;
(c) The trust is subject to examination as determined by the Commissioner;
(d) The trust must remain in effect for as long as the assuming insurers or any member or former member of a group of insurers has outstanding obligations due under the agreements for reinsurance subject to the trust; and
(e) Not later than February 28 of each year, the trustees of the trust shall report to the Commissioner in writing setting forth the balance of the trust and listing the trusts investments at the end of the preceding year and shall certify the date of termination of the trust or certify that the trust will not expire before the next following December 31.
[5. If the assuming insurer does not meet the requirements of NRS 681A.110, 681A.160 or 681A.170, credit must not be allowed unless the assuming insurer has agreed to the following conditions set forth in the trust agreement:
(a) Notwithstanding any provision to the contrary in the trust instrument, if the trust fund consists of an amount that is less than the amount required pursuant to this section, or if the grantor of the trust fund is declared to be insolvent or placed into receivership, rehabilitation, liquidation or a similar proceeding in accordance with the laws of the grantors state or country of domicile, the trustee of the trust fund must comply with an order of the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in that state or country or a court of competent jurisdiction requiring the trustee to transfer to that commissioner or person all the assets of the trust fund;
(b) The assets of the trust fund must be distributed by and claims filed with and valued by the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in accordance with the laws of the state in which the trust fund is domiciled that are applicable to the liquidation of domestic insurers in that state;
(c) If the commissioner of insurance or other appropriate person with regulatory authority over the trust fund determines that the assets of the trust fund or any portion of the trust fund are not required to satisfy any claim of any ceding insurer of the grantor of the trust fund in the United States, the assets must be returned by that commissioner or person to the trustee of the trust fund for distribution in accordance with the trust agreement; and
(d) The grantor of the trust must waive any right that:
(1) Is otherwise available to the grantor under the laws of the United States; and
(2) Is inconsistent with the provisions of this subsection.]
κ2021 Statutes of Nevada, Page 2958 (CHAPTER 478, AB 45)κ
Sec. 6.96. NRS 681A.220 is hereby amended to read as follows:
681A.220 Credit must be allowed if reinsurance is ceded to an assuming insurer not meeting the requirements of NRS 681A.110 and 681A.150 to 681A.190, inclusive, and sections 6.25 to 6.8, inclusive, of this act, but only with respect to the insurance of risks located in jurisdictions where such reinsurance is required by applicable law or regulation of that jurisdiction.
Sec. 7. NRS 681A.420 is hereby amended to read as follows:
681A.420 1. A person shall not act as a broker for reinsurance for a domestic insurer or reinsurer unless the person is:
(a) A licensed producer in this state; or
(b) Licensed as a nonresident intermediary for reinsurance in this state.
2. A person shall not act as a broker for reinsurance for a foreign or alien insurer or reinsurer if the person maintains an office, directly or as a member or employee of a firm or association or as an officer, director or employee of a corporation in this state, unless the person is:
(a) A licensed producer in this state; or
(b) Licensed as a nonresident intermediary for reinsurance in this state.
3. A person shall not act as a manager for reinsurance for a domestic insurer or reinsurer unless the person is:
(a) A licensed producer in this state; or
(b) Licensed as a nonresident manager for reinsurance in this state.
4. A person shall not act as a manager for reinsurance for any foreign or alien insurer or reinsurer if the person maintains an office, directly or as a member or employee of a firm or association or as an officer, director or employee of a corporation in this state, unless the person is:
(a) A licensed producer in this state; or
(b) Licensed as a nonresident manager for reinsurance in this state.
5. A manager for reinsurance shall:
(a) File a bond [from an insurer] which complies with section 3 of this act and is in an amount that is acceptable to the Commissioner for the protection of the reinsurer; and
(b) Maintain a policy covering errors and omissions in an amount that is acceptable to the Commissioner.
Sec. 8. NRS 682A.069 is hereby amended to read as follows:
682A.069 Equity interest means any of the following that are not rated credit instruments:
1. Common stock;
2. Preferred stock;
3. A trust certificate;
4. An equity investment in an investment company, other than a money market mutual fund or a class one bond mutual fund;
5. An investment in a common trust fund of a bank regulated by a federal or state agency;
6. An ownership interest in minerals, oil or gas, the rights to which have been separated from the underlying fee interest in the real estate where the minerals, oil or gas are located;
7. Instruments which are mandatorily, or at the option of the issuer, convertible to equity;
8. Limited partnership interests and those general partnership interests authorized pursuant to paragraph (d) of subsection 1 of NRS 682A.380;
9. Member interests in a limited-liability company;
κ2021 Statutes of Nevada, Page 2959 (CHAPTER 478, AB 45)κ
10. Warrants or other rights to acquire equity interests that are created by the person that owns or would issue the equity to be acquired; and
11. Instruments that would be rated credit instruments [.] but for the provisions of subsection 2 of NRS 682A.179.
Sec. 9. NRS 683A.08526 is hereby amended to read as follows:
683A.08526 1. A certificate of registration as an administrator is valid for 3 years after the date the Commissioner issues the certificate to the administrator [.] or the administrator renews the certificate, as applicable. A certificate expires on the renewal date for the certificate if the administrator does not renew the certificate pursuant to subsection 2 on or before the renewal date.
2. An administrator may renew a certificate of registration if the administrator submits to the Commissioner:
(a) An application on a form prescribed by the Commissioner; and
(b) The fee for the renewal of the certificate of registration prescribed in NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.
3. As used in this section, renewal date means:
(a) For the first renewal of the certificate of registration, the last day of the month which is 3 years after the month in which the Commissioner originally issued the certificate.
(b) For each renewal after the first renewal of the certificate of registration, the last day of the month which is 3 years after the month in which the certificate was last due to be renewed.
Sec. 10. NRS 683A.0857 is hereby amended to read as follows:
683A.0857 1. Each administrator shall file with the Commissioner a bond [with an authorized surety in favor of the State of Nevada,] which complies with section 3 of this act, continuous in form and in an amount determined by the Commissioner of not less than $100,000.
2. The Commissioner shall establish schedules for the amount of the bond required, based on the amount of money received and distributed by an administrator.
3. The bond must inure to the benefit of any person damaged by any fraudulent act or conduct of the administrator and must be conditioned upon faithful accounting and application of all money coming into the administrators possession in connection with his or her activities as an administrator.
4. [The bond remains in force until released by the Commissioner or cancelled by the surety. Without prejudice to any liability previously incurred, the surety may cancel the bond upon 90 days advance notice to the administrator and the Commissioner. An administrators certificate is automatically suspended if the administrator does not file with the Commissioner a replacement bond before the date of cancellation of the previous bond.] A replacement bond must meet all requirements [of this section] for the initial bond.
Sec. 11. NRS 683A.140 is hereby amended to read as follows:
683A.140 1. A firm or corporation may be licensed as a managing general agent.
2. A resident firm or corporation which has more than one office in this state is a single licensee for the purposes of being appointed by insurers and the authority of natural persons to act for the firm or corporation. Such a firm or corporation must obtain a copy of its license for each location, but only must obtain one original license as a managing general agent.
κ2021 Statutes of Nevada, Page 2960 (CHAPTER 478, AB 45)κ
or corporation must obtain a copy of its license for each location, but only must obtain one original license as a managing general agent.
3. For licensing as a managing general agent, [each general partner and each natural person to act for the firm, or] each natural person [to act for the corporation, must be named in the license and must qualify as an individual licensee. A natural person who is authorized to act for a firm or corporation and who also wishes to be licensed in an individual capacity] designated pursuant to subsection 5 must obtain a separate license in his or her own name. The Commissioner shall charge appropriate fees for each person who is [licensed to act for a firm or corporation and who is named on the license.] designated pursuant to subsection 5.
4. The licensee shall promptly notify the Commissioner of all changes among its members, directors and officers, and among other persons named in the license. The licensee shall provide to the Commissioner upon request information concerning officers or owners of the firm or corporation who are not named in the license.
5. Any business entity to whom a license is issued or renewed must:
(a) Be eligible to declare this state as its home state;
(b) Designate a natural person who is licensed as a managing general agent to be responsible for the compliance of the business entity with the insurance laws, rules and regulations of this State; and
(c) Never have committed any act that is a ground for refusal to issue, suspension of or revocation of a license pursuant to NRS 683A.451.
Sec. 12. NRS 683A.160 is hereby amended to read as follows:
683A.160 1. Each applicant for a license as a managing general agent must submit with his or her application:
(a) The appointment of the applicant as a managing general agent by each insurer or underwriter department to be so represented; and
(b) The application and license fee specified in NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.
2. Each applicant must, as part of his or her application and at the applicants 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 applicants fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicants 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 applicants background and to such other law enforcement agencies as the Commissioner deems necessary.
3. The Commissioner may:
κ2021 Statutes of Nevada, Page 2961 (CHAPTER 478, AB 45)κ
(a) Unless the applicants fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 2, 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 applicants background as the Commissioner deems necessary; and
(c) Adopt regulations concerning the procedures for obtaining this information.
4. A license as a managing general agent remains in effect unless revoked, suspended or otherwise terminated if, on or before the renewal date for the license:
(a) A request for renewal is submitted;
(b) All applicable fees for renewal are paid for the license and, if applicable, for each person who is authorized to act for the firm or corporation pursuant to subsection 3 of NRS 683A.140; and
(c) Any requirement for education and any other requirement to renew the license is satisfied.
5. A managing general agent may submit a request for renewal of his or her license within 30 days after the renewal date if the managing general agent otherwise complies with the provisions of subsection 4 and pays, in addition to any fee paid pursuant to subsection 4, a penalty of 50 percent of all applicable fees for renewal, except for any fee required pursuant to NRS 680C.110.
6. Except as otherwise provided in subsection 8, a license as a managing general agent expires if the Commissioner does not receive from the managing general agent a request for renewal of the license pursuant to subsection 4 or 5, as applicable, on or before the date which is 30 days after the renewal date.
7. A fee paid pursuant to subsection 4 or 5 is nonrefundable.
8. A managing general agent who is unable to renew his or her license 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.
9. A license must state the licensees name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other information the Commissioner considers necessary. The license must be made available for public inspection upon request.
10. A licensee shall inform the Commissioner of each change of business, residence or electronic mail address, in writing or by other means acceptable to the Commissioner, within 30 days after the change.
11. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
κ2021 Statutes of Nevada, Page 2962 (CHAPTER 478, AB 45)κ
Sec. 13. NRS 683A.261 is hereby amended to read as follows:
683A.261 1. Unless the Commissioner refuses to issue the license under NRS 683A.451, the Commissioner shall issue a license as a producer of insurance to a person who has satisfied the requirements of NRS 683A.241 and 683A.251. A producer of insurance may qualify for a license in one or more of the lines of authority permitted by statute or regulation, including:
(a) Life insurance on human lives, which includes benefits from endowments and annuities and may include additional benefits from death by accident and benefits for dismemberment by accident and for disability income.
(b) Accident and health insurance for sickness, bodily injury or accidental death, which may include benefits for disability income.
(c) Property insurance for direct or consequential loss or damage to property of every kind.
(d) Casualty insurance against legal liability, including liability for death, injury or disability and damage to real or personal property. For the purposes of a producer of insurance, this line of insurance includes surety indemnifying financial institutions or providing bonds for fidelity, performance of contracts or financial guaranty.
(e) Variable annuities and variable life insurance, including coverage reflecting the results of a separate investment account.
(f) Credit insurance, including credit life, credit accident and health, credit property, credit involuntary unemployment, guaranteed asset protection, and any other form of insurance offered in connection with an extension of credit that is limited to wholly or partially extinguishing the obligation which the Commissioner determines should be considered as limited-line credit insurance.
(g) Personal lines, consisting of automobile and motorcycle insurance and residential property insurance, including coverage for flood, of personal watercraft and of excess liability, written over one or more underlying policies of automobile or residential property insurance.
(h) Travel insurance, as defined in NRS 683A.197, as a limited line.
(i) Rental car as a limited line.
(j) Portable electronics as a limited line.
(k) Crop as a limited line.
(l) Personal property storage insurance, as defined in NRS 683A.1828, as a limited line.
2. A license as a producer of insurance remains in effect unless revoked, suspended or otherwise terminated if [a] , on or before the renewal date for the license:
(a) A request for a renewal is submitted [on or before the date for the renewal specified on the license, all] ;
(b) All applicable fees for renewal are paid for each license ; and [any]
(c) Any requirement for education or any other requirement to renew the license is satisfied . [by the date specified on the license for the renewal.]
3. A producer of insurance may submit a request for a renewal of his or her license within 30 days after the renewal date [specified on the license for the renewal] if the producer of insurance otherwise complies with the provisions of [this] subsection 2 and pays, in addition to any fee paid pursuant to [this] subsection [,] 2, a penalty of 50 percent of all applicable fees for renewal , [fees,] except for any fee required pursuant to NRS 680C.110.
κ2021 Statutes of Nevada, Page 2963 (CHAPTER 478, AB 45)κ
pursuant to [this] subsection [,] 2, a penalty of 50 percent of all applicable fees for renewal , [fees,] except for any fee required pursuant to NRS 680C.110. [A]
4. Except as otherwise provided in subsection 7, a license as a producer of insurance expires if the Commissioner [receives] does not receive from the producer of insurance a request for [a] renewal of the license [more than] pursuant to subsection 2 or 3, as applicable, on or before the date which is 30 days after the renewal date . [specified on the license for the renewal.]
5. A fee paid pursuant to [this] subsection 2, 3 or 6 is nonrefundable.
[3.] 6. A natural person who allows his or her license as a producer of insurance to expire pursuant to subsection 4 may , [reapply for the same license] within 12 months after the renewal date [specified on the license for a renewal] , reinstate the license without passing a written examination [but any] if the natural person:
(a) Completes all applicable continuing education requirements ; [must be met] and
(b) Pays a penalty of twice all applicable fees for renewal , [fees,] except for any fee required pursuant to NRS 680C.110 . [, is required for any request for a renewal of the license that is received after the date specified on the license for the renewal.
4.] 7. A licensed producer of insurance who is unable to renew his or her license 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.
[5.] 8. A license must state the licensees name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other information the Commissioner considers necessary. The license must be made available for public inspection upon request.
[6.] 9. A licensee shall inform the Commissioner of each change of business, residence or electronic mail address, in writing or by other means acceptable to the Commissioner, within 30 days after the change. If a licensee changes his or her business, residence or electronic mail address without giving written notice and the Commissioner is unable to locate the licensee after diligent effort, the Commissioner may revoke the license without a hearing. The mailing of a letter by certified mail, return receipt requested, addressed to the licensee 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.
10. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
Sec. 13.5. NRS 683A.281 is hereby amended to read as follows:
683A.281 1. Every nonresident licensed by this state as a producer of insurance shall appoint the Commissioner in writing as his or her attorney 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 licensee and relating to transactions under his or her Nevada license.
κ2021 Statutes of Nevada, Page 2964 (CHAPTER 478, AB 45)κ
action or proceeding brought or pending in this state against or involving the licensee and relating to transactions under his or her Nevada license. The appointment is irrevocable and continues in force for so long as any such action or proceeding may arise or exist. [Duplicate copies of process must be served upon the Commissioner or other person in apparent charge of the Division during the Commissioners absence, accompanied by payment of the fee for service of process. Upon such service the Commissioner shall promptly forward a copy of the process by certified mail with return receipt requested to the nonresident licensee at his or her business address last of record with the Division. Process served and the copy thereof forwarded as provided in this subsection constitutes for all purposes personal service thereof upon the licensee.] Service of process against a nonresident producer for whom the Commissioner is attorney in fact must be made in accordance with NRS 680A.260.
2. Every such licensee shall likewise file with the Commissioner his or her written agreement to appear before the Commissioner pursuant to notice of hearing, show cause order or subpoena issued by the Commissioner and [deposited, postage paid, by certified mail with the United States Postal Service, addressed to] served upon the licensee at his or her address last of record in the Division, and that upon failure of the licensee so to appear the licensee thereby consents to any subsequent suspension, revocation or refusal of the Commissioner to continue the licensees license.
Sec. 14. NRS 683A.378 is hereby amended to read as follows:
683A.378 1. A person shall not conduct utilization review unless the person is:
(a) Registered with the Commissioner as an agent who performs utilization review and has a medical director who is a physician or, in the case of an agent who reviews dental services, a dentist, licensed in any state; or
(b) Employed by a registered agent who performs utilization review.
2. A person may apply for registration by filing with the Commissioner [a $250] the fee specified in NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 and the following information on a form provided by the Commissioner:
(a) The applicants name, address, telephone number, valid electronic mail address and normal business hours;
(b) The name and telephone number of a person the Commissioner may contact for information concerning the applicant;
(c) The name of the medical director of the applicant and the state in which he or she is licensed to practice medicine or dentistry; and
(d) A summary of the plan for utilization review, including procedures for appealing determinations made through utilization review.
3. An agent who performs utilization review shall file with the Commissioner any material changes in the information provided pursuant to subsection 1 within 30 days after the change occurs.
4. The Commissioner shall not evaluate the plan submitted pursuant to paragraph (d) of subsection 2. The Commissioner shall make the plan available upon request and shall charge a reasonable fee for providing a copy of the plan.
5. Registration pursuant to this section must be renewed on or before March 1 of each year by providing the information specified in subsection 2 and paying [a] the renewal fee [of $250] specified in NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.
κ2021 Statutes of Nevada, Page 2965 (CHAPTER 478, AB 45)κ
and paying [a] the renewal fee [of $250] specified in NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.
Sec. 15. NRS 683C.040 is hereby amended to read as follows:
683C.040 1. A license may be renewed for additional 3-year periods by submitting to the Commissioner an application for renewal and:
(a) If the application is made:
(1) On or before the [expiration] renewal date of the license, all applicable renewal fees; or
(2) Not more than 30 days after the [expiration] renewal date of the license, all applicable renewal fees plus [any late fee required;] a penalty of 50 percent of all applicable renewal fees except for any fee required pursuant to NRS 680C.110;
(b) If the applicant is a natural person, the statement required pursuant to NRS 683C.043; and
(c) If the applicant is a resident, proof of the successful completion of appropriate courses of study required for renewal, as established by the Commissioner by regulation.
2. Except as otherwise provided in subsection 5, a license as an insurance consultant expires if the Commissioner does not receive from the insurance consultant an application for renewal pursuant to subsection 1 on or before the date which is 30 days after the renewal date.
3. The fees specified in this section are not refundable.
4. A natural person who allows his or her license as an insurance consultant to expire pursuant to subsection 2 may, within 12 months after the renewal date, reinstate the license without passing a written examination if the natural person:
(a) Completes all applicable continuing education requirements; and
(b) Pays a penalty of twice all applicable fees for renewal, except for any fee required pursuant to NRS 680C.110.
5. An insurance consultant who is unable to renew his or her license 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.
6. A license must state the licensees name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other information the Commissioner considers necessary. The license must be made available for public inspection upon request.
7. A licensee shall inform the Commissioner of each change of business, residence or electronic mail address, in writing or by other means acceptable to the Commissioner, within 30 days after the change.
8. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
κ2021 Statutes of Nevada, Page 2966 (CHAPTER 478, AB 45)κ
Sec. 16. NRS 684A.130 is hereby amended to read as follows:
684A.130 1. Each license issued or renewed under this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. A license may be renewed upon payment of all applicable fees for renewal to the Commissioner, completion of any other requirement for renewal of the license specified in this chapter and submission of the statement required pursuant to NRS 684A.143 if the licensee is a natural person. The statement, if required, must be submitted, all requirements must be completed and all applicable fees must be paid on or before the [last day of the month in which] renewal date for the license . [is renewable.]
2. Any license not so renewed expires [at midnight] on the [last day specified for its] renewal [.] date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by:
(a) A fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110 and subsection 2 of NRS 684A.050;
(b) If the person requesting renewal is a natural person, the statement required pursuant to NRS 684A.143;
(c) Proof of successful completion of any requirement for an examination unless exempt pursuant to NRS 684A.105; and
(d) If applicable, a request for a waiver of the time limit for renewal and of any fine or sanction otherwise required or imposed because of the failure of the licensee to renew his or her license because of military service, extended medical disability or other extenuating circumstance.
3. An adjuster who is unable to comply with the procedures and requirements to renew a license due to military service, long-term medical disability or some other extenuating circumstance may request waiver of same and a waiver of any requirement relating to an examination, fine or other sanction imposed for failure to comply with such procedures or requirements.
4. An adjuster shall inform the Commissioner by any means acceptable to the Commissioner of any change in the residence address or business address for the home state or in the legal name of the adjuster within 30 days of the change.
5. In order to assist in the performance of the duties of the Commissioner, the Commissioner may contract with nongovernmental entities, including, without limitation, the National Association of Insurance Commissioners or its affiliates or subsidiaries, to perform any ministerial function, including, without limitation, the collection of fees and data, related to licensing that the Commissioner may deem appropriate.
6. This section does not apply to temporary licenses issued under NRS 684A.150.
7. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
κ2021 Statutes of Nevada, Page 2967 (CHAPTER 478, AB 45)κ
Sec. 17. NRS 684B.030 is hereby amended to read as follows:
684B.030 1. Before the issuance of a motor vehicle physical damage appraisers license the applicant shall file with the Commissioner, and thereafter maintain in force while so licensed, a surety bond [in the] which complies with section 3 of this act and is in an amount [of $2,500 in favor of the people of the State of Nevada, executed by an authorized surety insurer approved] determined by the Commissioner . [, and conditioned for the faithful performance of required duties.]
2. [The bond shall remain in force until the surety is released from liability by the Commissioner, or until cancelled by the surety. Without prejudice to any prior liability accrued, the surety may cancel the bond upon 30 days advance written notice filed with the Commissioner.
3. A motor vehicle physical damage appraisers license is automatically suspended if the appraiser does not file with the Commissioner a replacement bond before the date of cancellation of the previous bond.] A replacement bond must meet all requirements [of this section] for the initial bond.
Sec. 18. NRS 684B.060 is hereby amended to read as follows:
684B.060 1. If the Commissioner finds that the application is complete and the applicant is otherwise eligible and qualified for the license as a motor vehicle physical damage appraiser, the Commissioner shall promptly issue the license. If the Commissioner refuses to issue the license the Commissioner shall promptly notify the applicant in writing of the refusal, stating the grounds for the refusal.
2. [If the license is refused, the Commissioner shall promptly refund to] All fees paid by the applicant [any refundable license fees tendered] with the application [.] for a license are nonrefundable.
Sec. 19. NRS 684B.080 is hereby amended to read as follows:
684B.080 1. Each license issued or renewed under this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. A license may be renewed upon payment of all applicable fees for renewal to the Commissioner and submission of the statement required pursuant to NRS 684B.083 if the licensee is a natural person. The statement, if required, must be submitted and all applicable fees must be paid on or before the [last day of the month in which] renewal date for the license . [is renewable.]
2. Any license not so renewed expires [at midnight] on the [last day specified for its] renewal [.] date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110, and the statement required pursuant to NRS 684B.083 if the person requesting renewal is a natural person.
3. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
Sec. 20. NRS 685A.120 is hereby amended to read as follows:
685A.120 1. No person may act as, hold himself or herself out as or be a surplus lines broker with respect to subjects of insurance for which this State is the insureds home state unless the person is licensed as such by the Commissioner pursuant to this chapter.
κ2021 Statutes of Nevada, Page 2968 (CHAPTER 478, AB 45)κ
State is the insureds home state unless the person is licensed as such by the Commissioner pursuant to this chapter.
2. Any person who has been licensed by this State as a producer of insurance for general lines for at least 6 months, or has been licensed in another state as a surplus lines broker and continues to be licensed in that state, and who is deemed by the Commissioner to be competent and trustworthy with respect to the handling of surplus lines may be licensed as a surplus lines broker upon:
(a) Application for a license and payment of all applicable fees for a license;
(b) Submitting the statement required pursuant to NRS 685A.127; and
(c) Passing any examination prescribed by the Commissioner on the subject of surplus lines.
3. An application for a license must be submitted to the Commissioner on a form designated and furnished by the Commissioner. The application must include the social security number of the applicant.
4. A license issued or renewed pursuant to this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. The license may be renewed upon submission of the statement required pursuant to NRS 685A.127 and payment of all applicable fees for renewal to the Commissioner on or before the [last day of the month in which] renewal date for the license . [is renewable.]
5. A license which is not renewed expires [at midnight] on the [last day specified for its] renewal [.] date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by:
(a) The statement required pursuant to NRS 685A.127;
(b) All applicable fees for renewal; and
(c) A penalty in an amount that is equal to 50 percent of all applicable fees for renewal, except for any fee required pursuant to NRS 680C.110.
6. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
Sec. 20.5. NRS 685A.200 is hereby amended to read as follows:
685A.200 1. An unauthorized insurer effecting insurance under the provisions of the Nonadmitted Insurance Law shall be deemed to be transacting insurance in this state as an unlicensed insurer and may be sued in a district court of this state upon any cause of action arising against it in this state under any insurance contract entered into by it under this chapter.
2. Service of [legal] process against [the] an unauthorized insurer [may be made in any such action by service of two copies thereof upon the Commissioner or an authorized representative of the Commissioner and payment of the fee specified in NRS 680B.010. The Commissioner or an authorized representative of the Commissioner shall forthwith mail a copy of the process served to the person designated by the insurer in the policy for the purpose by prepaid registered or certified mail with return receipt requested.] affecting insurance under the provisions of this chapter must be made in accordance with NRS 680A.260. If no [such] person is [so] designated to receive process in the policy, the [Commissioner or an authorized representative of the Commissioner] Division shall in like manner [mail] forward a copy of the process to the broker through whom the insurance was procured, or to the insurer at its principal place of business, addressed to the address of the broker or insurer, as the case may be, last of record with the [Commissioner.]
κ2021 Statutes of Nevada, Page 2969 (CHAPTER 478, AB 45)κ
designated to receive process in the policy, the [Commissioner or an authorized representative of the Commissioner] Division shall in like manner [mail] forward a copy of the process to the broker through whom the insurance was procured, or to the insurer at its principal place of business, addressed to the address of the broker or insurer, as the case may be, last of record with the [Commissioner.] Division. Upon service of process upon the Commissioner [or an authorized representative of the Commissioner and its mailing] and the Divisions forwarding of such service of process in accordance with this subsection, the court shall be deemed to have jurisdiction in personam of the unauthorized insurer.
3. The defendant unauthorized insurer has 40 days from the date of service of the summons and complaint upon the Commissioner [or an authorized representative of the Commissioner] within which to plead, answer or defend any such suit.
4. An unauthorized insurer entering into [such] an insurance contract under the provisions of this chapter shall be deemed thereby to have authorized service of process against it in the manner and to the effect provided in this section. Any such contract, if issued, must contain a provision stating the substance of this section and designating the person to whom the Commissioner [or an authorized representative of the Commissioner] Division shall [mail] forward process as provided in subsection 2.
5. For the purposes of this section, process includes only a summons or the initial documents served in an action. The Commissioner or an authorized representative of the Commissioner is not required to serve any documents after the initial service of process.
Sec. 21. NRS 686A.360 is hereby amended to read as follows:
686A.360 1. An application for a license to engage in the business of a company must be filed with the Commissioner on a form prescribed by the Commissioner and must include:
(a) A nonrefundable fee for application and for investigation of the applicant of $500 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110;
(b) A surety bond [payable to the State of Nevada in the amount of $50,000, executed by a surety company which is authorized to do business in Nevada;] which complies with section 3 of this act and is in an amount determined by the Commissioner;
(c) A current certified financial statement or another financial statement if individually approved by the Commissioner;
(d) An appointment of the Commissioner and the successors in office of the Commissioner as the applicants attorney to receive service of process; and
(e) If the applicant is a corporation, a copy of its articles of incorporation.
2. The applicant shall provide the Commissioner with any material change concerning information contained in the application within 10 days after the change occurs.
Sec. 22. Chapter 687B of NRS is hereby amended by adding thereto the provisions set forth as sections 23 to 35, inclusive, of this act.
Sec. 23. As used in sections 23 to 35, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 24 to 31, inclusive, of this act have the meanings ascribed to them in those sections.
κ2021 Statutes of Nevada, Page 2970 (CHAPTER 478, AB 45)κ
Sec. 24. Attachment point means the amount of claims or losses incurred by an insured beyond which an insurer under a policy of stop-loss insurance incurs a liability for payment to the insured.
Sec. 25. Group health plan has the meaning ascribed to it in NRS 689B.390.
Sec. 26. Health care services has the meaning ascribed to it in NRS 687B.620.
Sec. 27. Multiple employer welfare arrangement has the meaning ascribed to it in NRS 680A.028.
Sec. 28. Network has the meaning ascribed to it in NRS 687B.640.
Sec. 29. Policy of provider stop-loss insurance means a policy of stop-loss insurance which:
1. Is issued to a provider of health care or a network;
2. Provides coverage for losses of the provider of health care or network above an attachment point which is stated in the policy; and
3. Covers losses of the provider of health care or network which result from the financial risk assumed by the provider of health care or network in a managed care contract with another insurer, including, without limitation, an accident and health insurer, health insurer, health maintenance organization or self-funded group health plan, with whom the provider of health care or network has entered into a contract to provide health care services.
Sec. 30. Policy of stop-loss insurance means a policy or contract of insurance, which provides coverage for the losses of an insured above an attachment point which is stated in the policy or contract, including, without limitation, a policy of insurance which includes stop-loss coverage or excess loss coverage.
Sec. 31. Provider of health care has the meaning ascribed to it in NRS 687B.660.
Sec. 32. An insurer authorized in this State to issue policies or contracts of property and casualty insurance, accident and health insurance or health insurance shall report to the Commissioner any premiums written in this State by the insurer for policies of stop-loss insurance. The insurer shall report the premiums:
1. With the annual statement filed by the insurer pursuant to NRS 680A.270; and
2. In the manner prescribed by the Commissioner.
Sec. 33. 1. An insurer intending to issue a policy of stop-loss insurance in this State to cover losses of a group health plan shall, before issuing the policy, exercise reasonable diligence to confirm that:
(a) The underlying group health plan is legitimate; and
(b) The entity offering the underlying group health plan is properly authorized to offer the group health plan.
2. If the underlying group health plan is a self-funded multiple employer welfare arrangement, the reasonable diligence required by subsection 1 includes, without limitation, ensuring that the self-funded multiple employer welfare arrangement is authorized to do business in this State pursuant to chapter 680A of NRS as a self-funded multiple employer welfare arrangement.
Sec. 34. A policy form for a policy of stop-loss insurance which is intended for issue in this State to cover losses of a group health plan must be filed with and approved by the Commissioner pursuant to NRS 687B.120 before being delivered or issued for delivery.
κ2021 Statutes of Nevada, Page 2971 (CHAPTER 478, AB 45)κ
NRS 687B.120 before being delivered or issued for delivery. In addition to any other applicable requirements, the policy form must satisfy the following requirements:
1. The policy of stop-loss insurance must be issued to and insure the sponsor of the group health plan or the group health plan itself and must not be issued to or insure:
(a) Employees covered by the group health plan;
(b) Members of the group health plan; or
(c) Participants in the group health plan.
2. Payments by the insurer under the policy of stop-loss insurance must be made to the sponsor of the group health plan or the group health plan itself and must not be made to:
(a) Employees covered by the group health plan;
(b) Members of the group health plan;
(c) Participants in the group health plan;
(d) Providers of health care who provide health care services pursuant to the group health plan; or
(e) A network whose providers of health care provide health care services pursuant to the group health plan.
Sec. 35. 1. A policy form for a policy of provider stop-loss insurance which is intended for issue in this State must be filed with and approved by the Commissioner pursuant to NRS 687B.120 before being delivered or issued for delivery. In addition to any other applicable requirements, the policy form must satisfy the following requirements:
(a) The policy of provider stop-loss insurance must be issued to and insure the provider of health care or the network which enters into the policy.
(b) Payments by the insurer under the policy of provider stop-loss insurance must be made to the provider of health care or the network which enters into the policy.
(c) The policy of provider stop-loss insurance must provide:
(1) An attachment point per claimant of at least $10,000; and
(2) An aggregate attachment point of at least $100,000 per calendar year.
(d) The policy of provider stop-loss insurance must require that the proof of loss be furnished to the insurer within 90 days after:
(1) The date the loss is incurred; or
(2) Any date provided in the policy which is later than the date the loss is incurred.
2. A policy form filed with the Commissioner for approval as required by subsection 1 must be accompanied by a separate document certifying that each of the requirements specified in paragraphs (a) to (d), inclusive, of subsection 1 have been met.
Sec. 36. NRS 688C.200 is hereby amended to read as follows:
688C.200 1. Upon the filing of an application and payment of all applicable fees, the Commissioner shall investigate the applicant, and issue a license if the Commissioner finds that the applicant:
(a) If a provider of viatical settlements, has set forth a detailed plan of operation;
(b) Is competent and trustworthy and intends to act in good faith in the capacity for which the license is sought;
κ2021 Statutes of Nevada, Page 2972 (CHAPTER 478, AB 45)κ
(c) Has a good reputation in business and, if a natural person, has had experience, training or education which qualifies the applicant in that capacity;
(d) If an organization, provides a certificate of good standing from the state of its domicile; and
(e) If a provider or broker of viatical settlements:
(1) Has included a plan to prevent fraud which satisfies the requirements of NRS 688C.490; and
(2) Has demonstrated evidence of financial responsibility through either:
(I) A surety bond [executed and issued by an authorized surety in favor of the State of Nevada, continuous in form] which complies with section 3 of this act and is in an amount [as] determined by the Commissioner, [of] which must be not less than $250,000; or
(II) A deposit of cash, certificates of deposit, securities or any combination thereof in the amount of $250,000.
2. The Commissioner shall not issue a license to a nonresident unless a written designation of an agent for service of process, or an irrevocable written consent to the commencement of an action against the applicant by service of process upon the Commissioner, accompanies the application.
3. A provider or broker of viatical settlements shall furnish to the Commissioner new or revised information concerning partners, members, officers, holders of more than 10 percent of its stock, and designated employees within 30 days after a change occurs.
4. Notwithstanding any provision of this section to the contrary, the Commissioner shall accept as evidence of financial responsibility proof that financial instruments complying with the requirements of this section have been filed with a state where the applicant is licensed as a provider or broker of viatical settlements.
5. A surety bond issued for the purposes of this section must specifically authorize recovery by the Commissioner on behalf of any person in this State who sustained damages as a result of:
(a) Erroneous acts;
(b) Failure to act; or
(c) Conviction of:
(1) Fraud; or
(2) Unfair practices,
Κ by the provider or broker of viatical settlements.
6. The Commissioner may request evidence of financial responsibility as described in subparagraph (2) of paragraph (e) of subsection 1 at any time the Commissioner deems necessary.
Sec. 37. NRS 689.185 is hereby amended to read as follows:
689.185 1. Except as otherwise provided in subsection 2:
(a) Before the issuance of a certificate of authority, the seller shall post with the Commissioner and thereafter maintain in force a bond [in the principal sum of] which complies with section 3 of this act and is in an amount determined by the Commissioner, which must be not less than $50,000 , [issued by an authorized corporate surety in favor of the State of Nevada,] or a deposit of cash or negotiable securities or a combination of cash and negotiable securities. If a deposit is made in lieu of a bond, the deposit must at all times have a market value of not less than the amount of the bond required by the Commissioner.
κ2021 Statutes of Nevada, Page 2973 (CHAPTER 478, AB 45)κ
(b) The bond or deposit must be held for the benefit of buyers of prepaid contracts, and other persons as their interests may appear, who may be damaged by misuse or diversion of money by the seller or the agents of the seller, or to satisfy any judgments against the seller for failure to perform a prepaid contract. The aggregate liability of the surety for all breaches of the conditions of the bond must not exceed the sum of the bond. [The surety on the bond has the right to cancel the bond upon giving 30 days notice to the Commissioner and thereafter is relieved of liability for any breach of condition occurring after the effective date of the cancellation.
(c) A certificate of authority issued to a seller is automatically suspended if the seller does not file with the Commissioner a replacement bond before the date of cancellation of the previous bond.]
(c) A replacement bond must meet all requirements of this subsection for the initial bond.
(d) The Commissioner shall release the [bond or] deposit after the seller has ceased doing business as such and the Commissioner is satisfied of the nonexistence of any obligation or liability of the seller for which the [bond or] deposit was held.
2. The Commissioner may waive the requirements of subsection 1 if the seller agrees:
(a) To offer for sale only prepaid contracts that are payable solely from the proceeds of a policy of life insurance; and
(b) Not to collect any money from the purchaser of a prepaid contract.
Sec. 38. NRS 689.255 is hereby amended to read as follows:
689.255 1. Each agents license issued or renewed pursuant to NRS 689.150 to 689.375, inclusive, continues in force for 3 years unless it is suspended, revoked or otherwise terminated.
2. An agents license may be renewed at the request of the holder of a valid sellers certificate of authority, upon filing a written request for renewal accompanied by all applicable fees for renewal and the statement required pursuant to NRS 689.258. All applicable fees for renewal are nonrefundable.
3. Any license not so renewed expires [at midnight] on the [last day of the month specified for its] renewal [.] date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110, and the statement required pursuant to NRS 689.258.
4. An agents license is valid only while the agent is employed by a holder of a valid sellers certificate of authority.
5. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
Sec. 39. NRS 689.495 is hereby amended to read as follows:
689.495 1. Except as otherwise provided in subsection 2:
(a) Before the issuance of a permit to a seller, the seller shall post with the Commissioner and thereafter maintain in force a bond [in the principal sum of] which complies with section 3 of this act and is in an amount determined by the Commissioner, which must be not less than $50,000 , [issued by an authorized corporate surety in favor of the State of Nevada,] or a deposit of cash or negotiable securities or a combination of cash and negotiable securities.
κ2021 Statutes of Nevada, Page 2974 (CHAPTER 478, AB 45)κ
determined by the Commissioner, which must be not less than $50,000 , [issued by an authorized corporate surety in favor of the State of Nevada,] or a deposit of cash or negotiable securities or a combination of cash and negotiable securities. If a deposit is made in lieu of a bond, the deposit must at all times have a market value not less than the amount of the bond required by the Commissioner.
(b) The bond or deposit must be held for the benefit of buyers of prepaid contracts, and other persons as their interests may appear, who may be damaged by misuse or diversion of money by the seller or the agents of the seller, or to satisfy any judgments against the seller for failure to perform a prepaid contract. The aggregate liability of the surety for all breaches of the conditions of the bond must not exceed the sum of the bond. [The surety on the bond has the right to cancel the bond upon giving 30 days notice to the Commissioner and thereafter is relieved of liability for any breach of condition occurring after the effective date of the cancellation.
(c) A permit issued to a seller is automatically suspended if the seller does not file with the Commissioner a replacement bond before the date of cancellation of the previous bond.]
(c) A replacement bond must meet all requirements of this subsection for the initial bond.
(d) The Commissioner shall release the [bond or] deposit after the seller has ceased doing business as such and the Commissioner is satisfied of the nonexistence of any obligation or liability of the seller for which the [bond or] deposit was held.
2. The Commissioner may waive the requirements of subsection 1 if the seller agrees:
(a) To offer for sale only prepaid contracts that are payable solely from the proceeds of a policy of life insurance; and
(b) Not to collect any money from the purchaser of a prepaid contract.
Sec. 40. NRS 689.505 is hereby amended to read as follows:
689.505 1. Each sellers permit issued or renewed pursuant to NRS 689.450 to 689.595, inclusive, continues in effect for 3 years unless it is suspended, revoked or otherwise terminated.
2. The Commissioner shall renew a sellers permit upon receiving a written request for renewal from the seller, accompanied by all applicable fees for renewal, which are not refundable, if the Commissioner finds that the seller is, at that time, in compliance with all applicable provisions of NRS 689.450 to 689.595, inclusive.
3. A permit which is not renewed expires [at midnight] on the [last day specified for its] renewal [.] date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the permit if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110.
4. As used in this section, renewal date means:
(a) For the first renewal of the permit, the last day of the month which is 3 years after the month in which the Commissioner originally issued the permit.
(b) For each renewal after the first renewal of the permit, the last day of the month which is 3 years after the month in which the permit was last due to be renewed.
κ2021 Statutes of Nevada, Page 2975 (CHAPTER 478, AB 45)κ
Sec. 41. NRS 689.530 is hereby amended to read as follows:
689.530 1. Each agents license issued or renewed pursuant to NRS 689.450 to 689.595, inclusive, continues in effect for 3 years unless it is suspended, revoked or otherwise terminated.
2. An agents license may be renewed, unless it has been suspended or revoked, at the request of the holder of a valid sellers permit upon filing a written request for renewal accompanied by all applicable fees for renewal and the statement required pursuant to NRS 689.258. All applicable fees for renewal are not refundable.
3. An agents license which is not renewed expires on the renewal date. The Commissioner may accept a request for renewal which is received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110, and the statement required pursuant to NRS 689.258.
4. An agents license is valid only while the agent is employed by a holder of a valid sellers permit.
5. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
Sec. 42. NRS 689A.717 is hereby amended to read as follows:
689A.717 1. Except as otherwise provided in this subsection, an individual health benefit plan issued pursuant to this chapter that includes coverage for maternity care and pediatric care for newborn infants may not restrict benefits for any length of stay in a hospital in connection with childbirth for a [mother] pregnant or postpartum individual or newborn infant covered by the plan to:
(a) Less than 48 hours after a normal vaginal delivery; and
(b) Less than 96 hours after a cesarean section.
Κ If a different length of stay is provided in the guidelines established by the American College of Obstetricians and Gynecologists, or its successor organization, and the American Academy of Pediatrics, or its successor organization, the individual health benefit plan may follow such guidelines in lieu of following the length of stay set forth above. The provisions of this subsection do not apply to any individual health benefit plan in any case in which the decision to discharge the [mother] pregnant or postpartum individual or newborn infant before the expiration of the minimum length of stay set forth in this subsection is made by the attending physician of the [mother] pregnant or postpartum individual or newborn infant.
2. Nothing in this section requires a [mother] pregnant or postpartum individual to:
(a) Deliver [her] the baby in a hospital; or
(b) Stay in a hospital for a fixed period following the birth of [her] the child.
3. An individual health benefit plan that offers coverage for maternity care and pediatric care of newborn infants may not:
(a) Deny a [mother] pregnant or postpartum individual or [her] the newborn infant coverage or continued coverage under the terms of the plan or coverage if the sole purpose of the denial of coverage or continued coverage is to avoid the requirements of this section;
κ2021 Statutes of Nevada, Page 2976 (CHAPTER 478, AB 45)κ
or coverage if the sole purpose of the denial of coverage or continued coverage is to avoid the requirements of this section;
(b) Provide monetary payments or rebates to a [mother] pregnant or postpartum individual to encourage [her] the individual to accept less than the minimum protection available pursuant to this section;
(c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because the attending provider of health care provided care to a [mother] pregnant or postpartum individual or newborn infant in accordance with the provisions of this section;
(d) Provide incentives of any kind to an attending physician to induce the attending physician to provide care to a [mother] pregnant or postpartum individual or newborn infant in a manner that is inconsistent with the provisions of this section; or
(e) Except as otherwise provided in subsection 4, restrict benefits for any portion of a hospital stay required pursuant to the provisions of this section in a manner that is less favorable than the benefits provided for any preceding portion of that stay.
4. Nothing in this section:
(a) Prohibits an individual health benefit plan from imposing a deductible, coinsurance or other mechanism for sharing costs relating to benefits for hospital stays in connection with childbirth for a [mother] pregnant or postpartum individual or newborn child covered by the plan, except that such coinsurance or other mechanism for sharing costs for any portion of a hospital stay required by this section may not be greater than the coinsurance or other mechanism for any preceding portion of that stay.
(b) Prohibits an arrangement for payment between an individual health benefit plan and a provider of health care that uses capitation or other financial incentives, if the arrangement is designed to provide services efficiently and consistently in the best interest of the [mother] pregnant or postpartum individual and [her] the newborn infant.
(c) Prevents an individual health benefit plan from negotiating with a provider of health care concerning the level and type of reimbursement to be provided in accordance with this section.
Sec. 43. NRS 689B.520 is hereby amended to read as follows:
689B.520 1. Except as otherwise provided in this subsection, a group health plan or coverage offered under group health insurance issued pursuant to this chapter that includes coverage for maternity care and pediatric care for newborn infants may not restrict benefits for any length of stay in a hospital in connection with childbirth for a [mother] pregnant or postpartum individual or newborn infant covered by the plan or coverage to:
(a) Less than 48 hours after a normal vaginal delivery; and
(b) Less than 96 hours after a cesarean section.
Κ If a different length of stay is provided in the guidelines established by the American College of Obstetricians and Gynecologists, or its successor organization, and the American Academy of Pediatrics, or its successor organization, the group health plan or health insurance coverage may follow such guidelines in lieu of following the length of stay set forth above. The provisions of this subsection do not apply to any group health plan or health insurance coverage in any case in which the decision to discharge the [mother] pregnant or postpartum individual or newborn infant before the expiration of the minimum length of stay set forth in this subsection is made by the attending physician of the [mother] pregnant or postpartum individual or newborn infant.
κ2021 Statutes of Nevada, Page 2977 (CHAPTER 478, AB 45)κ
2. Nothing in this section requires a [mother] pregnant or postpartum individual to:
(a) Deliver [her] the baby in a hospital; or
(b) Stay in a hospital for a fixed period following the birth of [her] the child.
3. A group health plan or coverage under group health insurance that offers coverage for maternity care and pediatric care of newborn infants may not:
(a) Deny a [mother] pregnant or postpartum individual or [her] the newborn infant coverage or continued coverage under the terms of the plan or coverage if the sole purpose of the denial of coverage or continued coverage is to avoid the requirements of this section;
(b) Provide monetary payments or rebates to a [mother] pregnant or postpartum individual to encourage [her] the individual to accept less than the minimum protection available pursuant to this section;
(c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because the attending provider of health care provided care to a [mother] pregnant or postpartum individual or newborn infant in accordance with the provisions of this section;
(d) Provide incentives of any kind to an attending physician to induce the attending physician to provide care to a [mother] pregnant or postpartum individual or newborn infant in a manner that is inconsistent with the provisions of this section; or
(e) Except as otherwise provided in subsection 4, restrict benefits for any portion of a hospital stay required pursuant to the provisions of this section in a manner that is less favorable than the benefits provided for any preceding portion of that stay.
4. Nothing in this section:
(a) Prohibits a group health plan or carrier from imposing a deductible, coinsurance or other mechanism for sharing costs relating to benefits for hospital stays in connection with childbirth for a [mother] pregnant or postpartum individual or newborn child covered by the plan, except that such coinsurance or other mechanism for sharing costs for any portion of a hospital stay required by this section may not be greater than the coinsurance or other mechanism for any preceding portion of that stay.
(b) Prohibits an arrangement for payment between a group health plan or carrier and a provider of health care that uses capitation or other financial incentives, if the arrangement is designed to provide services efficiently and consistently in the best interest of the [mother] pregnant or postpartum individual and [her] the newborn infant.
(c) Prevents a group health plan or carrier from negotiating with a provider of health care concerning the level and type of reimbursement to be provided in accordance with this section.
Sec. 44. NRS 689C.194 is hereby amended to read as follows:
689C.194 1. Except as otherwise provided in this subsection, a health benefit plan issued pursuant to this chapter that includes coverage for maternity care and pediatric care for newborn infants may not restrict benefits for any length of stay in a hospital in connection with childbirth for a [mother] pregnant or postpartum individual or newborn infant covered by the plan to:
(a) Less than 48 hours after a normal vaginal delivery; and
(b) Less than 96 hours after a cesarean section.
κ2021 Statutes of Nevada, Page 2978 (CHAPTER 478, AB 45)κ
Κ If a different length of stay is provided in the guidelines established by the American College of Obstetricians and Gynecologists, or its successor organization, and the American Academy of Pediatrics, or its successor organization, the health benefit plan may follow such guidelines in lieu of following the length of stay set forth above. The provisions of this subsection do not apply to any health benefit plan in any case in which the decision to discharge the [mother] pregnant or postpartum individual or newborn infant before the expiration of the minimum length of stay set forth in this subsection is made by the attending physician of the [mother] pregnant or postpartum individual or newborn infant.
2. Nothing in this section requires a [mother] pregnant or postpartum individual to:
(a) Deliver [her] the baby in a hospital; or
(b) Stay in a hospital for a fixed period following the birth of [her] the child.
3. A health benefit plan that offers coverage for maternity care and pediatric care of newborn infants may not:
(a) Deny a [mother] pregnant or postpartum individual or [her] the newborn infant coverage or continued coverage under the terms of the plan if the sole purpose of the denial of coverage or continued coverage is to avoid the requirements of this section;
(b) Provide monetary payments or rebates to a [mother] pregnant or postpartum individual to encourage [her] the individual to accept less than the minimum protection available pursuant to this section;
(c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because the attending provider of health care provided care to a [mother] pregnant or postpartum individual or newborn infant in accordance with the provisions of this section;
(d) Provide incentives of any kind to an attending physician to induce the attending physician to provide care to a [mother] pregnant or postpartum individual or newborn infant in a manner that is inconsistent with the provisions of this section; or
(e) Except as otherwise provided in subsection 4, restrict benefits for any portion of a hospital stay required pursuant to the provisions of this section in a manner that is less favorable than the benefits provided for any preceding portion of that stay.
4. Nothing in this section:
(a) Prohibits a health benefit plan or carrier from imposing a deductible, coinsurance or other mechanism for sharing costs relating to benefits for hospital stays in connection with childbirth for a [mother] pregnant or postpartum individual or newborn child covered by the plan, except that such coinsurance or other mechanism for sharing costs for any portion of a hospital stay required by this section may not be greater than the coinsurance or other mechanism for any preceding portion of that stay.
(b) Prohibits an arrangement for payment between a health benefit plan or carrier and a provider of health care that uses capitation or other financial incentives, if the arrangement is designed to provide services efficiently and consistently in the best interest of the [mother] pregnant or postpartum individual and [her] the newborn infant.
(c) Prevents a health benefit plan or carrier from negotiating with a provider of health care concerning the level and type of reimbursement to be provided in accordance with this section.
κ2021 Statutes of Nevada, Page 2979 (CHAPTER 478, AB 45)κ
Sec. 45. NRS 689C.560 is hereby amended to read as follows:
689C.560 A voluntary purchasing group shall post a bond for the benefit of members of the group and their eligible employees and dependents, or deposit a certificate of deposit or securities, [in such a manner] which complies with section 3 of this act and is in an amount as determined by the Commissioner . [establishes by regulation.]
Secs. 46-53. (Deleted by amendment.)
Sec. 54. NRS 692A.103 is hereby amended to read as follows:
692A.103 1. A person who wishes to obtain a license as an escrow officer must:
(a) File a written application in the Office of the Commissioner;
(b) Except as otherwise provided in subsection 3, demonstrate competency in matters relating to escrows by:
(1) Having at least 1 year of recent experience with respect to escrows of a sufficient nature to allow the person to fulfill the responsibilities of an escrow officer; or
(2) Passing a written examination concerning escrows as prescribed by the Commissioner;
(c) Submit the name and business address of the title agent who will supervise the escrow officer;
(d) Submit the statement required pursuant to NRS 692A.1033; and
(e) Pay the fees required by NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.
2. The Commissioner shall issue a license as an escrow officer to any person who satisfies the requirements of subsection 1.
3. The Commissioner may waive the requirements of paragraph (b) of subsection 1 if the applicant submits with his or her application satisfactory proof that the applicant, in good standing, currently holds a license, or held a license within 1 year before the date the applicant submits the application, which was issued pursuant to the provisions of NRS 645A.020.
4. A license issued or renewed pursuant to this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. The license may be renewed upon submission of the statement required pursuant to NRS 692A.1033 and payment of all applicable fees for renewal to the Commissioner on or before the [last day of the month in which] renewal date for the license . [is renewable.]
5. [A license which is not renewed expires at midnight on the last day specified for its renewal.] The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by the statement required pursuant to NRS 692A.1033 and a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110.
6. Except as otherwise provided in subsection 8, a license as an escrow officer expires if the Commissioner does not receive from the escrow officer an application for renewal pursuant to subsection 4 or 5 on or before the date which is 30 days after the renewal date.
7. The fees specified in subsections 4 and 5 are not refundable.
8. An escrow officer who is unable to renew his or her license 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.
κ2021 Statutes of Nevada, Page 2980 (CHAPTER 478, AB 45)κ
9. A license must state the licensees name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other information the Commissioner considers necessary. The license must be made available for public inspection upon request.
10. A licensee shall inform the Commissioner of each change of business, residence or electronic mail address, in writing or by other means acceptable to the Commissioner, within 30 days after the change.
11. The Commissioner shall adopt regulations to carry out the provisions of this section.
12. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
Sec. 55. NRS 692A.1041 is hereby amended to read as follows:
692A.1041 1. In addition to all other requirements set forth in this title and except as otherwise provided in [subsection 4] subsections 2 and 3 and NRS 692A.1042, as a condition to doing business in this State, each title agent and title insurer shall deposit with the Commissioner and keep in full force and effect a corporate surety bond [payable to the State of Nevada, in the amount set forth in subsection 3, which is executed by a corporate surety satisfactory to] which complies with section 3 of this act and is in an amount as determined by the Commissioner . [and which names] The bond must name as principals the title agency or title insurer and all escrow officers employed by or associated with the title agent or title insurer.
2. [The bond must be in substantially the following form:
Know All Persons by These Presents, that ........................, as principal, and ........................, as surety, are held and firmly bound unto the State of Nevada for the use and benefit of any person who suffers damages because of a violation of any of the provisions of chapter 692A of NRS, in the sum of ............, lawful money of the United States, to be paid to the State of Nevada for such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
The condition of that obligation is such that: Whereas, the Commissioner of Insurance of the Department of Business and Industry of the State of Nevada has issued the principal a license or certificate of authority as a title agent or title insurer, and the principal is required to furnish a bond, which is conditioned as set forth in this bond:
Now, therefore, if the principal, the principals agents and employees, strictly, honestly and faithfully comply with the provisions of chapter 692A of NRS, and pay all damages suffered by any person because of a violation of any of the provisions of chapter 692A of NRS, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of chapter 692A of NRS, then this obligation is void; otherwise it remains in full force.
κ2021 Statutes of Nevada, Page 2981 (CHAPTER 478, AB 45)κ
This bond becomes effective on the ..........(day) of ................(month) of ......(year), and remains in force until the surety is released from liability by the Commissioner of Insurance or until this bond is cancelled by the surety. The surety may cancel this bond and be relieved of further liability hereunder by giving 60 days written notice to the principal and to the Commissioner of Insurance of the Department of Business and Industry of the State of Nevada.
In Witness Whereof, the seal and signature of the principal hereto is affixed, and the corporate seal and the name of the surety hereto is affixed and attested by its authorized officers at ........................, Nevada, this ................(day) of ................(month) of ......(year).
.............................................................. (Seal)
Principal
.............................................................. (Seal)
Surety
By...................................................................
Attorney-in-fact
.........................................................................
Nevada licensed insurance agent
3.] Each title agent and title insurer [shall deposit] may, in lieu of a corporate surety bond that complies with the provisions of [this section or] subsection 1, deposit a substitute form of security that complies with the provisions of NRS 692A.1042 in an amount [that:
(a) Is not less than $20,000 or 2 percent of the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250, whichever is greater; and
(b) Is not more than $250,000.
Κ] as determined by the Commissioner. The Commissioner shall determine the appropriate amount of the [surety bond or] substitute form of security that must be deposited initially by the title agent or title insurer based upon the expected average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250. After the initial deposit, the Commissioner shall, on an annual basis, determine the appropriate amount of the [surety bond or] substitute form of security that must be deposited by the title agent or title insurer based upon the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250. A natural person licensed as a title agent is not obligated to deposit a corporate surety bond or substitute security, as defined in NRS 692A.1042. if that natural person is employed by a title insurer, or by a firm or corporation licensed as a title agent.
[4.] 3. A title agent or title insurer may offset or reduce the amount of the [surety bond or] substitute form of security that the title agent or title insurer is required to deposit pursuant to subsection [3] 2 by the amount of any of the following:
(a) Cash or securities deposited with the Commissioner in this State pursuant to NRS 680A.140 or 682B.015.
(b) Reserves against unpaid losses and loss expenses maintained pursuant to NRS 692A.150 or 692A.170.
(c) Unearned premium reserves maintained pursuant to NRS 692A.160 or 692A.170.
κ2021 Statutes of Nevada, Page 2982 (CHAPTER 478, AB 45)κ
(d) Fidelity bonds maintained by the title agent or title insurer.
(e) Other bonds or policies of insurance maintained by the title agent or title insurer covering liability for economic losses to customers caused by the title agent or title insurer.
Sec. 56. NRS 692A.230 is hereby amended to read as follows:
692A.230 1. No person may engage in business as a title plant company unless the person has been granted a license to do so by the Commissioner.
2. An applicant for a license to conduct business as a title plant company shall submit as part of his or her application:
(a) A copy of the proposed articles of incorporation or association and bylaws, or the partnership agreement, which will govern the operation of the business.
(b) A list of the owners or participants and the nature and degree of their interest.
(c) A list of the persons who will operate the business, and their addresses and qualifications, including experience.
(d) The conditions under which ownership or participation in the business may be sold or acquired.
(e) A statement of whether or not title information will be compiled for persons other than owners or participants in the business.
(f) A pro forma balance sheet and other financial information to indicate the sufficiency of financing of the business.
(g) Other information which the Commissioner requires.
(h) [A] The fee [of $10.] specified in NRS 680B.010.
3. If the Commissioner finds that:
(a) The business of the applicant will be sufficiently financed;
(b) The persons who will be operating the business are qualified;
(c) The rules of operation expressed in the articles of incorporation or association and the bylaws, or in the partnership agreement, will promote the efficiency of the operation of the owners or participants; and
(d) The operation of the business will not unduly restrict competition, the Commissioner may issue a license to the applicant and permit organization of the business.
4. A license issued under this section is valid for a period of 1 year, and may be renewed by the submission of any information which the Commissioner requires and [a] the fee [of $10.] specified in NRS 680B.010.
5. A license issued under this section may be suspended or revoked by the Commissioner if:
(a) The licensee ceases to operate in a manner set forth in its approved application.
(b) In the opinion of the Commissioner, the operation of the business has become a restraint on competition or is not in the best interests of the public.
(c) The licensee has not informed the Commissioner promptly of each change in conditions set forth in its application.
6. The Commissioner shall give written notice to any licensee whose license the Commissioner intends to suspend or revoke, and the licensee shall be granted a hearing if the licensee requests it in writing within 15 days after the receipt of the notice from the Commissioner. A decision of the Commissioner after hearing is final administrative action.
7. This section does not apply to any person licensed under the provisions of this chapter engaged in the business of a title plant company when the operation is not in concert with others.
κ2021 Statutes of Nevada, Page 2983 (CHAPTER 478, AB 45)κ
Sec. 56.1. Chapter 692C of NRS is hereby amended by adding thereto the provisions set forth as sections 56.15 to 56.55, inclusive, of this act:
Sec. 56.15. Group Capital Calculation instructions means the applicable instructions for group capital calculations as adopted by the NAIC and as amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.
Sec. 56.2. NAIC Liquidity Stress Test Framework means a separate NAIC publication which includes a history of the NAICs development of regulatory liquidity stress testing, the scope criteria applicable for a specific data year and the liquidity stress test instructions and reporting templates for a specific data year, with the scope criteria, instructions and reporting template being as adopted by the NAIC and as amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.
Sec. 56.25. Scope Criteria means, as detailed in the NAIC Liquidity Stress Test Framework, the designated exposure bases along with minimum magnitudes thereof for the specified data year, used to establish a preliminary list of insurers considered scoped into the NAIC Liquidity Stress Test Framework for that data year.
Sec. 56.3. 1. The group capital calculation and resulting group capital ratio required under subsection 3 of NRS 692.290 and the liquidity stress test along with its results and supporting disclosures required under subsection 4 of NRS 692.290 may be used as regulatory tools for assessing group risks and capital adequacy and group liquidity risks, respectively, and must not be used to rank insurers or insurance holding company systems generally.
2. Except as authorized by subsection 3 or as otherwise required in this chapter, a person shall not engage in the making, publishing, disseminating, circulating or placing before the public, or causing directly or indirectly to be made, published, disseminated, circulated or placed before the public in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station or any electronic means of communication available to the public, or in any other way as an advertisement, announcement or statement containing a representation or statement with regard to the group capital calculation, group capital ratio, the liquidity stress test results or supporting disclosures for the liquidity stress test of any insurer or any insurer group, or of any component derived in the calculation by any insurer, broker or other person engaged in any manner in the insurance business, and any such action shall be deemed by the Commissioner to be misleading.
3. If any materially false statement with respect to the group capital calculation, resulting group capital ratio, an inappropriate comparison of any amount to an insurers or insurance groups group capital calculation or resulting group capital ratio, liquidity stress test result, supporting disclosures for the liquidity stress test or an inappropriate comparison of any amount to an insurers or insurance groups liquidity stress test result or supporting disclosures is published in any written publication and the insurer is able to demonstrate to the Commissioner with substantial proof the falsity of such statement or the inappropriateness, as the case may be, then the insurer may publish announcements in a written publication if the sole purpose of the announcement is to rebut the materially false statement.
κ2021 Statutes of Nevada, Page 2984 (CHAPTER 478, AB 45)κ
Sec. 56.35. 1. When an insurance holding company system has previously filed the annual group capital calculation at least once, the lead state commissioner has the discretion to exempt the ultimate controlling person from filing the annual group capital calculation if the lead state commissioner makes a determination based upon that filing that the insurance holding company system meets all of the following criteria:
(a) Has annual direct written and unaffiliated assumed premiums, including, without limitation, international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than $1,000,000,000;
(b) Has no insurers within its holding company structure that are domiciled outside of the United States or one of its territories;
(c) Has no banking, depository or other financial entity that is subject to an identified regulatory capital framework within its holding company structure;
(d) The holding company system attests that there are no material changes in the transactions between insurers and non-insurers in the group that have occurred since the last filing of the annual group capital; and
(e) The non-insurers within the holding company system do not pose a material financial risk to the insurers ability to honor policyholder obligations.
2. When an insurance holding company system has previously filed the annual group capital calculation at least once, the lead state commissioner has the discretion to accept in lieu of the group capital calculation a limited group capital filing if the insurance holding company system has annual direct written and unaffiliated assumed premiums, including, without limitation, international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than $1,000,000,000, and the insurance holding company system:
(a) Has no insurers within its holding company structure that are domiciled outside of the United States or one of its territories;
(b) Does not include a banking, depository or other financial entity that is subject to an identified regulatory capital framework; and
(c) Attests that there are no material changes in transactions between insurers and non-insurers in the group that have occurred since the last filing of the report to the lead state commissioner and the non-insurers within the holding company system do not pose a material financial risk to the insurers ability to honor policyholder obligations.
3. For an insurance holding company that has previously met an exemption with respect to the group capital calculation pursuant subsection 1 or 2, the lead state commissioner may require at any time the ultimate controlling person to file an annual group capital calculation, completed in accordance with the NAIC Group Capital Calculation Instructions, if any of the following criteria are met:
(a) Any insurer within the insurance holding company system is not in compliance with risk-based capital requirements pursuant to NRS 681B.550 and any regulations adopted pursuant thereto, or a similar standard for a non-United States insurer;
(b) Any insurer within the insurance holding company system meets one or more of the standards of an insurer deemed to be in hazardous financial condition pursuant to NRS 680A.205 and any regulations adopted pursuant thereto; or
κ2021 Statutes of Nevada, Page 2985 (CHAPTER 478, AB 45)κ
(c) Any insurer within the insurance holding company system otherwise exhibits qualities of a troubled insurer as determined by the lead state commissioner based on unique circumstances including, without limitation, the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests.
Sec. 56.4. 1. A non-United States jurisdiction is considered to recognize and accept the group capital calculation if it satisfies the following criteria:
(a) With respect to the paragraph (d) of subsection 3 of NRS 692C.290:
(1) The non-United States jurisdiction recognizes the United Statess state regulatory approach to group supervision and group capital, by providing confirmation by a competent regulatory authority, in such jurisdiction, that insurers and insurance groups whose lead state is accredited by the NAIC under the NAIC Accreditation Program shall be subject only to worldwide prudential insurance group supervision including worldwide group governance, solvency and capital, and reporting, as applicable, by the lead state and will not be subject to group supervision, including, without limitation, worldwide group governance, solvency and capital, and reporting, at the level of the worldwide parent undertaking of the insurance or reinsurance group by the non-United States jurisdiction; or
(2) If no United States insurance groups operate in the non-United States jurisdiction, that non-United States jurisdiction indicates formally in writing to the lead state commissioner with a copy to the International Association of Insurance Supervisors that the group capital calculation is an acceptable international capital standard. This serves as the documentation otherwise required in subparagraph (1).
(b) The non-United States jurisdiction provides confirmation by a competent regulatory authority in such jurisdiction that information regarding insurers and their parent, subsidiary, or affiliated entities, if applicable, shall be provided to the lead state commissioner in accordance with a memorandum of understanding or similar document between the commissioner and such jurisdiction, including, without limitation, the International Association of Insurance Supervisors Multilateral Memorandum of Understanding or other multilateral memoranda of understanding coordinated by the NAIC. The Commissioner shall determine, in consultation with the NAIC, whether the requirements of the information sharing agreements are in force.
2. For the purposes of subsection 1, a list of non-United States jurisdictions that recognize and accept the group capital calculation, published by the NAIC, may be considered as further specified by the following:
(a) A list of jurisdictions that recognize and accept the group capital calculation pursuant to paragraph (d) of subsection 3 of NRS 692C.290, published by the NAIC, may be used to assist the lead state commissioner in determining which insurers shall file an annual group capital calculation. The list may be used to clarify those situations in which a jurisdiction is exempted from filing under paragraph (d) of subsection 3 of NRS 692C.290. To assist with a determination under subsection 4 of NRS 692C.290, the list may be used to identify whether a jurisdiction that is exempted under either paragraph (c) of subsection 3 of NRS 692C.290 or paragraph (d) of subsection 3 of NRS 692C.290 requires a group capital filing for any United States based insurance groups operations in that non-United States jurisdiction.
κ2021 Statutes of Nevada, Page 2986 (CHAPTER 478, AB 45)κ
group capital filing for any United States based insurance groups operations in that non-United States jurisdiction.
(b) For a non-United States jurisdiction where no United States insurance groups operate, the confirmation provided to meet the requirement of subparagraph (2) of paragraph (a) of subsection 1 serves as support for a recommendation to be published as a jurisdiction that recognizes and accepts the group capital calculation adopted by the NAIC.
3. If the lead state commissioner makes a determination pursuant to paragraph (d) of subsection 3 of NRS 692C.290 that differs from the list published by the NAIC, the lead state commissioner must provide thoroughly documented justification to the NAIC and other states.
4. Upon determination by the lead state commissioner that a non-United States jurisdiction no longer meets one or more of the requirements to recognize and accept the group capital calculation, the lead state commissioner may provide a recommendation to the NAIC that the non-United States jurisdiction be removed from the list of jurisdictions that recognize and accept the group capital calculation.
Sec. 56.45. NRS 692C.020 is hereby amended to read as follows:
692C.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 692C.025 to 692C.110, inclusive, and sections 56.15, 56.2 and 56.25 of this act have the meanings ascribed to them in those sections.
Sec. 56.5. NRS 692C.280 is hereby amended to read as follows:
692C.280 No information need be disclosed on the registration statement filed pursuant to NRS 692C.270 if such information is not material for the purposes of NRS 692C.260 to 692C.350, inclusive. Unless the Commissioner by rule, regulation or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, or investments involving one-half of 1 percent or less of an insurers admitted assets as of the 31st day of December next preceding, shall not be deemed material for purposes of NRS 692C.260 to 692C.350, inclusive. The specifications for materiality provided in this section do not apply for the purpose of a group capital calculation or the liquidity stress test framework.
Sec. 56.55. NRS 692C.290 is hereby amended to read as follows:
692C.290 1. Each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions on forms provided by the Commissioner within 15 days after the end of the month in which it learns of each such change or addition, and not less often than annually, except that, subject to the provisions of NRS 692C.390, each registered insurer shall report all dividends and other distributions to shareholders within 5 business days following the declaration and 10 days before payment.
2. The principal of a registered insurer shall file an annual report of enterprise risk pursuant to this subsection. If the principal of a registered insurer does not file a report of enterprise risk with the commissioner of the lead state of the insurance company system, as determined by the most recent edition of the Financial Analysis Handbook, published by the NAIC, in a calendar year, the principal shall file a report of enterprise risk with the Commissioner. The principal shall include in the report the material risks within the insurance holding company system that, to the best of his or her knowledge and belief, may pose enterprise risk to the registered insurer.
3. Except as otherwise provided in this subsection, the ultimate controlling person of every insurer subject to registration shall concurrently file with the registration an annual group capital calculation as directed by the lead state commissioner.
κ2021 Statutes of Nevada, Page 2987 (CHAPTER 478, AB 45)κ
concurrently file with the registration an annual group capital calculation as directed by the lead state commissioner. The report shall be completed in accordance with the Group Capital Calculation Instructions, which may permit the lead state commissioner to allow a controlling person that is not the ultimate controlling person to file the group capital calculation. The report shall be filed with the lead state commissioner of the insurance holding company system as determined by the Commissioner in accordance with the procedures within the Financial Analysis Handbook adopted by the NAIC. An insurance holding company system is exempt from filing the group capital calculation if it is:
(a) An insurance holding company system that has only one insurer within its holding company structure, that only writes business and is only licensed in its domestic state, and assumes no business from any other insurer.
(b) Except as otherwise provided in this paragraph, an insurance holding company system that is required to perform a group capital calculation specified by the United States Federal Reserve Board. The lead state commissioner shall request the calculation from the Federal Reserve Board under the terms of information sharing agreements currently in effect. If the Federal Reserve Board cannot share the calculation with the lead state commissioner, the insurance holding company system is not exempt from the group capital calculation filing.
(c) An insurance holding company system whose non-United States group wide supervisor is located within a reciprocal jurisdiction as defined in section 6.14 of this act that recognizes the United Statess state regulatory approach to group supervision and group capital.
(d) An insurance holding company system:
(1) That provides information to the lead state that meets the requirements for accreditation under the NAIC financial standards and accreditation program, either directly or indirectly through the group-wide supervisor, who has determined such information is satisfactory to allow the lead state to comply with the NAIC group supervision approach, as detailed in the NAIC Financial Analysis Handbook; and
(2) Whose non-United States group-wide supervisor that is not in a reciprocal jurisdiction as defined in section 6.14 of this act recognizes and accepts, as specified by the Commissioner in regulation, the group capital calculation as the world-wide group capital assessment for United States insurance groups who operate in that jurisdiction.
4. Notwithstanding the provisions of paragraphs (c) and (d) of subsection 3, a lead state commissioner shall require the group capital calculation for United States operations of any non-United States based insurance holding company system where, after any necessary consultation with other supervisors or officials, it is deemed appropriate by the lead state commissioner for prudential oversight and solvency monitoring purposes or for ensuring the competitiveness of the insurance marketplace.
5. Notwithstanding the exemptions from filing the group capital calculation stated in paragraphs (a) to (d), inclusive, of subsection 3, the lead state commissioner has the discretion to exempt the ultimate controlling person from filing the annual group capital calculation or to accept a limited group capital filing or report in accordance with criteria as specified by the Commissioner in regulation.
6. If the lead state commissioner determines that an insurance holding company system no longer meets one or more of the requirements for an exemption from filing the group capital calculation under subsection 3, the insurance holding company system shall file the group capital calculation at the next annual filing date unless given an extension by the lead state commissioner based on reasonable grounds shown.
κ2021 Statutes of Nevada, Page 2988 (CHAPTER 478, AB 45)κ
for an exemption from filing the group capital calculation under subsection 3, the insurance holding company system shall file the group capital calculation at the next annual filing date unless given an extension by the lead state commissioner based on reasonable grounds shown.
7. The ultimate controlling person of every insurer subject to registration and also scoped into the NAIC Liquidity Stress Test Framework shall file the results of a specific years liquidity stress test. The filing shall be made to the lead state insurance commissioner of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the NAIC.
8. For the purposes of subsection 7:
(a) The NAIC Liquidity Stress Test Framework and the included scope criteria applicable to a specific data year, which are reviewed at least annually by the NAIC Financial Stability Task Force or its successor, and any change to the NAIC Liquidity Stress Test Framework or to the data year for which the scope criteria are to be measured, are effective on January 1 of the year following the calendar year when such changes are adopted by the NAIC.
(b) An insurer which meets at least one threshold of the scope criteria is considered scoped in to the NAIC Liquidity Stress Test Framework for the specified data year unless the lead state insurance commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, determines the insurer should not be scoped into the NAIC Liquidity Stress Test Framework for that data year.
(c) An insurer that does not trigger at least one threshold of the scope criteria is not considered scoped into the NAIC Liquidity Stress Test Framework for the specified data year unless the lead state insurance commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, determines the insurer should be scoped into the NAIC Liquidity Stress Test Framework for that data year.
9. The lead state commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, will assess whether an insurer is scoped in or not scoped in to the NAIC Liquidity Stress Test Framework as part of the lead state commissioners determinations pursuant to this section for an insurer.
10. The performance of, and filing of the results from, a specific years liquidity stress test shall comply with the NAIC Liquidity Stress Test Frameworks instructions and reporting templates for that year and any lead state insurance commissioners determination, in conjunction with the Financial Stability Task Force or its successor, as provided within the NAIC Liquidity Stress Test Framework.
11. Whenever it appears to the Commissioner that any person has committed a violation of subsection 2 which prevents the full understanding of the enterprise risk to the insurer by affiliates or by the insurance holding company system, the violation may serve as an independent basis for disapproving dividends or distributions and for conducting an examination of the insurer pursuant to NRS 679B.230 to 679B.287, inclusive.
Sec. 57. NRS 692C.3504 is hereby amended to read as follows:
692C.3504 1. Each insurer, or the insurance group of which the insurer is a member, shall, not later than June 1 of each calendar year, submit to the Commissioner a corporate governance annual disclosure which contains the information prescribed by the Commissioner by regulation pursuant to subsection 2 of NRS 692C.3506. If an insurer is a member of an insurance group, the insurer shall submit the report required by this section to the insurance commissioner of the lead state for the insurance group in accordance with the laws of the lead state, as determined by the procedures contained in the most recent Financial Analysis Handbook published by the National Association of Insurance Commissioners.
κ2021 Statutes of Nevada, Page 2989 (CHAPTER 478, AB 45)κ
insurance group, the insurer shall submit the report required by this section to the insurance commissioner of the lead state for the insurance group in accordance with the laws of the lead state, as determined by the procedures contained in the most recent Financial Analysis Handbook published by the National Association of Insurance Commissioners.
2. Each year after the year in which the insurer or insurance group first submitted its corporate governance annual disclosure pursuant to subsection 1, the insurer or insurance group shall submit to the Commissioner an amended version of the corporate governance annual disclosure which was submitted the previous year. The amended version must indicate where changes to the corporate governance annual disclosure have been made, including, without limitation, any changes in the information or activities reported by the insurer or insurance group. If no changes have been made, the amended version must expressly indicate that no changes have been made.
3. The corporate governance annual disclosure must include the signature of the chief executive officer or corporate secretary of the insurer or insurance group attesting that, to the best of that persons belief and knowledge, the insurer or insurance group has implemented the corporate governance practices described in the corporate governance annual disclosure and that a copy of the corporate governance annual disclosure has been provided to the board of directors, or the appropriate committee thereof, of the insurer or insurance group.
[3.] 4. An insurer that is not required to submit a corporate governance annual disclosure to the Commissioner pursuant to subsection 1 shall do so upon the Commissioners request.
[4.] 5. For purposes of completing the corporate governance annual disclosure, the insurer or insurance group may provide information regarding the corporate governance at the level of the legal entity which exercises ultimate control over the insurer or insurance group, of an intermediate holding company or of the insurer or insurance group, depending upon the manner in which the insurer or insurance group has structured its system of corporate governance. The insurer or insurance group shall, to the extent practicable, provide such information at the level at which:
(a) The insurer or insurance group determines the amount of risk it is willing to bear;
(b) The earnings, capital, liquidity, operations and reputation of the insurer or insurance group are overseen collectively and the supervision of those factors are coordinated and exercised; or
(c) Legal liability for a failure of general corporate governance duties would be placed.
Κ If the insurer or insurance group determines the level of reporting based on these criteria, it shall indicate in the corporate governance annual disclosure which of the three criteria was used to determine the level of reporting and explain any changes in the level of reporting used for subsequent corporate governance annual disclosures.
[5.] 6. The review of the corporate governance annual disclosure and any additional requests for information must be performed by the lead state as determined by the procedures contained in the most recent Financial Analysis Handbook published by the National Association of Insurance Commissioners.
[6.] 7. An insurer or insurance group which provides information substantially similar to the information required by NRS 692C.3501 to 692C.3509, inclusive, in other documents provided to the Commissioner, including, without limitation, proxy statements filed in conjunction with any forms filed pursuant to NRS 692C.270 or any regulations adopted pursuant thereto, or other state or federal filings provided to the Division, may cross-reference in the corporate governance annual disclosure the document in which the information is included rather than duplicating such information in the corporate governance annual disclosure.
κ2021 Statutes of Nevada, Page 2990 (CHAPTER 478, AB 45)κ
to 692C.3509, inclusive, in other documents provided to the Commissioner, including, without limitation, proxy statements filed in conjunction with any forms filed pursuant to NRS 692C.270 or any regulations adopted pursuant thereto, or other state or federal filings provided to the Division, may cross-reference in the corporate governance annual disclosure the document in which the information is included rather than duplicating such information in the corporate governance annual disclosure.
Sec. 57.5. NRS 692C.420 is hereby amended to read as follows:
692C.420 1. Except as otherwise provided in NRS 239.0115, all information, documents and copies thereof obtained by or disclosed to the Commissioner or any other person in the course of an examination or investigation made pursuant to NRS 692C.410, and all information reported or provided to the Commissioner pursuant to subsections 12 and 13 of NRS 692C.190, NRS 692C.260 to 692C.350, inclusive, and 692C.378, is recognized by this State as being proprietary and to contain trade secrets, is confidential, is not subject to subpoena, is not subject to discovery, is not admissible in evidence in any private civil action and must not be made public by the Commissioner or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the Commissioner, after giving the insurer and its affiliates who would be affected thereby notice and an opportunity to be heard, determines that the interests of policyholders, shareholders or the public will be served by the publication thereof, in which event he or she may publish all or any part thereof in any manner as he or she may deem appropriate. For the purposes of the information reported and provided to the Commissioner pursuant to subsections 3 to 6, inclusive, of NRS 692C.290, the Commissioner shall maintain the confidentiality of the group capital calculation and group capital ratio produced within the calculation and any group capital information received from an insurance holding company supervised by the Federal Reserve Board or any U.S. group wide supervisor. For the purposes of the information reported and provided to the Commissioner pursuant to subsections 7 to 10, inclusive, of NRS 692C.290, the Commissioner shall maintain the confidentiality of the liquidity stress test results and supporting disclosures and any liquidity stress test information received from an insurance holding company supervised by the Federal Reserve Board and non-United States group-wide supervisors.
2. The Commissioner or any person who receives any documents, materials or other information while acting under the authority of the Commissioner must not be permitted or required to testify in a private civil action concerning any information, document or copy thereof specified in subsection 1.
3. The Commissioner may share or receive any information, document or copy thereof specified in subsection 1 , including, without limitation, proprietary and trade secret documents and materials, in accordance with NRS 679B.122. The sharing or receipt of the information, document or copy pursuant to this subsection does not waive any applicable privilege or claim of confidentiality in the information, document or copy.
4. The Commissioner shall enter into a written agreement with the NAIC and any third party consultant designated by the Commissioner governing the sharing and use of information specified in subsection 1 . [that] The agreement must [:] contain provisions which:
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(a) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC [and its affiliates and subsidiaries,] or a third party consultant designated by the Commissioner, including procedures and protocols for sharing by the NAIC with other state, federal and international regulators . [;] With regard to the requirements of this paragraph, the agreement must provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the documents, materials or other information and has verified in writing the legal authority to maintain such confidentiality.
(b) Specify that ownership of the information shared with the NAIC [and its affiliates and subsidiaries] or a third party consultant designated by the Commissioner remains with the Commissioner and the NAICs , or the third party consultants, use of the information is subject to the discretion of the Commissioner . [;]
(c) Except as otherwise provided in this paragraph, prohibit the NAIC or third party consultant designated by the Commissioner from storing the information shared pursuant to NRS 692C.290 in a permanent database after the underlying analysis is completed. The provisions of this paragraph do not apply to documents, material or information reported pursuant to subsections 7 to 10, inclusive, of NRS 692C.290.
(d) Require prompt notice to be given to an insurer whose confidential information in the possession of the NAIC or a third party consultant designated by the Commissioner is subject to a request or subpoena to the NAIC or the third party consultant for disclosure or production . [; and
(d)] (e) Require the NAIC [and its affiliates and subsidiaries] or a third party consultant designated by the Commissioner to consent to intervention by an insurer in any judicial or administrative action in which the NAIC [and its affiliates or subsidiaries] or the third party consultant may be required to disclose confidential information about the insurer shared with the NAIC [and its affiliates and subsidiaries.] or the third party consultant.
5. The sharing of information by the Commissioner does not constitute a delegation of regulatory authority or rulemaking, and the Commissioner is solely responsible for the administration, execution and enforcement of the provisions of this section.
6. No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the Commissioner in accordance with this section or as a result of sharing as authorized in this section.
7. Documents, materials and other information in the possession or control of the NAIC or a third party consultant designated by the Commissioner in accordance with this section are:
(a) Confidential by law and privileged;
(b) Not subject to the provisions of chapter 239 of NRS;
(c) Not subject to subpoena; and
(d) Not subject to discovery or admissible in evidence in any private civil action.
Sec. 58. NRS 694C.259 is hereby amended to read as follows:
694C.259 1. A captive insurer which [ceases to transact] is not transacting the business of insurance, including, without limitation, the issuance of insurance policies and the assumption of reinsurance, may apply to the Commissioner for a certificate of dormancy.
2. Upon application by a captive insurer pursuant to subsection 1, the Commissioner may issue a certificate of dormancy to the captive insurer.
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The Commissioner may issue a certificate of dormancy to a captive insurer even if the captive insurer retains liabilities that are associated with policies that were written or assumed by the captive insurer provided that the captive insurer [has] otherwise [ceased to transact] is not transacting the business of insurance.
3. A dormant captive insurer shall:
(a) Possess and thereafter maintain unimpaired paid-in capital and surplus of not less than $25,000.
(b) Pursuant to NRS 694C.230, pay an annual fee and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 for the renewal of a license.
(c) Be subject to examination for any year for which the dormant captive insurer is not in compliance with the provisions of this section.
4. A dormant captive insurer may:
(a) At the discretion of the Commissioner, be subject to examination for any year for which the dormant captive insurer is in compliance with the provisions of this section.
(b) Continue to adjudicate and settle insurance claims under any contract of insurance or reinsurance that the captive insurer issued during any period in which the captive insurer was not a dormant captive insurer. The effective date of such a contract of insurance or reinsurance must be before the date on which the Commissioner issued a certificate of dormancy to the captive insurer.
5. [A] After being issued a certificate of dormancy, and until the certificate of dormancy expires or is revoked, a dormant captive insurer is not:
(a) Subject to or liable for the payment of any tax pursuant to NRS 694C.450.
(b) Required to:
(1) Prepare audited financial statements;
(2) Obtain actuarial certifications or opinions; or
(3) File annual reports with the Commissioner pursuant to NRS 694C.400.
6. A certificate of dormancy is subject to renewal after 5 years . [and is forfeited if not renewed within that period.] If not timely renewed, the certificate of dormancy expires. Immediately upon the expiration of the certificate of dormancy, the captive insurer must be in compliance with all provisions of this chapter applicable to a captive insurer which holds an active license to transact the business of insurance issued pursuant to this chapter.
7. Except as otherwise provided by this section, before issuing any insurance policy or otherwise transacting the business of insurance, a dormant captive insurer must apply to the Commissioner for approval to surrender its certificate of dormancy and resume transacting the business of insurance.
8. The Commissioner shall revoke the certificate of dormancy of a dormant captive insurer that is not in compliance with the provisions of this section.
9. The Commissioner may adopt regulations necessary to carry out the provisions of this section.
Sec. 59. NRS 694C.310 is hereby amended to read as follows:
694C.310 1. The board of directors of a captive insurer shall meet at least once each year in this State. The captive insurer shall:
κ2021 Statutes of Nevada, Page 2993 (CHAPTER 478, AB 45)κ
(a) Maintain its principal place of business in this State; and
(b) Appoint a resident of this State as a registered agent to accept service of process and otherwise act on behalf of the captive insurer in this State. If the registered agent cannot be located with reasonable diligence for the purpose of serving a notice or demand on the captive insurer, the notice or demand may be served on the Secretary of State who shall be deemed to be the agent for the captive insurer.
2. A captive insurer shall not transact insurance in this State unless:
(a) The captive insurer has made adequate arrangements with:
(1) A state-chartered bank, a state-chartered credit union or a thrift company licensed pursuant to chapter 677 of NRS that is located in this State; or
(2) A federally chartered bank or federally chartered credit union that has a branch which is located in this State,
Κ that is authorized pursuant to state or federal law to transfer money.
(b) If the captive insurer employs or has entered into a contract with a natural person or business organization to manage the affairs of the captive insurer, the natural person or business organization meets the standards [of competence and experience satisfactory] described in paragraph (b) of subsection 4 of NRS 694C.210 to the satisfaction of the Commissioner.
(c) The captive insurer employs or has entered into a contract with a qualified and experienced certified public accountant who is approved by the Commissioner or a firm of certified public accountants that is nationally recognized.
(d) The captive insurer employs or has entered into a contract with qualified, experienced actuaries who are approved by the Commissioner to perform reviews and evaluations of the operations of the captive insurer.
(e) The captive insurer employs or has entered into a contract with an attorney who is licensed to practice law in this State and who meets the standards of competence and experience in matters concerning the regulation of insurance in this State established by the Commissioner by regulation.
3. The Commissioner may periodically review the qualifications of a natural person or business organization described in paragraph (b) of subsection 2 and, if appropriate:
(a) Disqualify the manager pursuant to the authority of the Commissioner under NRS 679B.125; or
(b) Suspend or revoke the license of the captive insurer pursuant to NRS 694C.270.
Sec. 60. NRS 695A.060 is hereby amended to read as follows:
695A.060 1. Duly certified copies of the laws and rules of the society, copies of all proposed forms of certificates, applications therefor, circulars to be issued by the society and a bond conditioned upon the return to applicants of the advanced payments if the organization is not completed within 1 year must be filed with the Commissioner, who may require such further information as the Commissioner deems necessary. The bond [with sureties approved by the Commissioner] must comply with section 3 of this act and be in [such] an amount [,] determined by the Commissioner, which must be not less than $300,000 nor more than $1,500,000 . [, as required by the Commissioner.] All documents filed must be in the English language. If the purposes of the society conform to the requirements of this chapter and all applicable provisions of the law of this state have been complied with, the Commissioner shall so certify, retain and file the articles of incorporation and furnish the incorporators a preliminary certificate of authority for the society to solicit members as provided in this chapter.
κ2021 Statutes of Nevada, Page 2994 (CHAPTER 478, AB 45)κ
and furnish the incorporators a preliminary certificate of authority for the society to solicit members as provided in this chapter.
2. No preliminary certificate of authority granted under the provisions of this section is valid after 1 year from its date or after such further period, not exceeding 1 year, as may be authorized by the Commissioner upon cause shown, unless 500 applicants have been secured and the organization has been completed as provided in this chapter. The articles of incorporation and all proceedings thereunder are void 1 year after the date of the preliminary certificate of authority, or at the expiration of the extended period, unless the society has completed its organization and received a certificate of authority to do business.
Sec. 60.5. NRS 695A.400 is hereby amended to read as follows:
695A.400 1. Every society authorized to do business in this state shall appoint in writing the Commissioner [and each successor in office to be its true and lawful attorney] as attorney-in-fact upon whom all lawful process in any action or proceeding against it must be served, and shall agree in the writing that any lawful process against it which is served on the Commissioner is of the same legal force and validity as if served upon the society, and that the authority continues in force so long as any liability remains outstanding in this state. A copy of the appointment, certified by the Commissioner, constitutes sufficient evidence of the appointment and must be admitted in evidence with the same validity as the original.
2. Service of process against a society must be made [only upon the Commissioner, or if absent, upon the person in charge of the Office of the Commissioner. It must be made in duplicate and constitutes sufficient service upon the society. When legal process against a society is served upon the Commissioner, the Commissioner shall forthwith forward one of the duplicate copies by registered mail, prepaid, directed to the secretary or corresponding officer.] in accordance with NRS 680A.260.
3. No such service may require a society to file its answer, pleading or defense in less than 30 days from the date [of mailing] the copy of the service was forwarded to [a] the society.
4. Legal process must not be served upon a society except in the manner provided in this section.
[5. At the time of serving any process upon the Commissioner, the plaintiff or complainant in the action shall pay to the Commissioner a fee of $5.
6. For the purposes of this section, process includes only the summons or the initial documents served in an action. The Commissioner is not required to serve any documents after the initial service of process.]
Sec. 61. NRS 695B.320 is hereby amended to read as follows:
695B.320 1. 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, subsections 2, 4, 18, 19 and 31 of NRS 680B.010, NRS 680B.025 to 680B.060, inclusive, chapter 681B of NRS, NRS 686A.010 to 686A.315, inclusive, 686B.010 to 686B.175, 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, 687B.500 and chapters 692B, 692C, 693A and 696B of NRS, to the extent applicable and not in conflict with the express provisions of this chapter.
κ2021 Statutes of Nevada, Page 2995 (CHAPTER 478, AB 45)κ
2. For the purposes of this section and the provisions set forth in subsection 1, a nonprofit hospital and medical or dental service corporation is included in the meaning of the term insurer.
Sec. 62. NRS 695C.055 is hereby amended to read as follows:
695C.055 1. The provisions of NRS 449.465, 679A.200, 679B.700, subsections 7 and 8 of NRS 680A.270, subsections 2, 4, 18, 19 and 31 of NRS 680B.010, NRS 680B.020 to 680B.060, inclusive, [chapter] chapters 681B and 686A of NRS, NRS 686B.010 to [686B.1799,] 686B.175, inclusive, 687B.122 to 687B.128, inclusive, 687B.310 to 687B.420, inclusive, and 687B.500 and chapters 692C 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. 63. NRS 695D.095 is hereby amended to read as follows:
695D.095 1. An organization for dental care is [not exempt from] subject to the provisions of [NRS 679B.700. If an organization is an admitted health insurer, as that term is defined in NRS 449.450, it is not exempt from the fees imposed pursuant to] this chapter and to the provisions set forth in this section, to the extent reasonably applicable. Organizations for dental care are subject to the provisions of NRS 449.465 [.] , 679B.700, subsections 7 and 8 of NRS 680A.270, subsections 2, 4, 18, 19 and 31 of NRS 680B.010, NRS 680B.020 to 680B.060, inclusive, chapters 681B and 686A of NRS, NRS 686B.010 to 686B.175, inclusive, and chapters 687B, 692C and 695G of NRS.
2. For the purposes of this section and the provisions set forth in subsection 1, an organization for dental care is included in the meaning of the term insurer.
Sec. 64. NRS 695D.180 is hereby amended to read as follows:
695D.180 [1. A bond by any] An organization for dental care or its officers under this chapter shall file a bond with the Commissioner. The bond must [be payable to the State of Nevada and must be conditioned on compliance with the provisions of this chapter. The surety shall pay all damages to any person by reason of any misstatement, misrepresentation, fraud or deceit, or any wrongful act or omission of any person or organization made, committed or omitted in the plan for dental care or caused by any other violation of the provisions of this chapter.
2. The organization must give notice to the Commissioner at least 90 days before such a bond may be cancelled.] comply with section 3 of this act.
Sec. 65. NRS 695E.140 is hereby amended to read as follows:
695E.140 1. A risk retention group seeking to be chartered in this State must obtain a certificate of authority pursuant to chapter 694C of NRS to transact liability insurance and, except as otherwise provided in this chapter, must comply with:
(a) All of the laws, regulations and requirements applicable to liability insurers in this State, unless otherwise approved by the Commissioner; and
(b) The provisions of NRS 695E.150 to 695E.210, inclusive, to the extent that those provisions do not limit or conflict with the provisions with which the group is required to comply pursuant to paragraph (a).
2. A risk retention group applying to be chartered in this State must submit to the Commissioner an application for licensure as an association captive insurer in accordance with NRS 694C.210.
κ2021 Statutes of Nevada, Page 2996 (CHAPTER 478, AB 45)κ
3. A risk retention group chartered in a state other than Nevada that is seeking to transact insurance as a risk retention group in this State must comply with the provisions of NRS 694C.390 and 695E.150 to 695E.210, inclusive [.] , including, without limitation, by submitting the statement of registration required by paragraph (a) of subsection 1 of NRS 695E.150 and paying all fees required for the statement of registration.
Sec. 66. NRS 695E.170 is hereby amended to read as follows:
695E.170 1. A risk retention group and its agents and representatives are subject to the provisions of :
(a) NRS 680A.205 and any regulations adopted pursuant thereto, including, without limitation, regulations relating to the standards which may be used by the Commissioner in determining whether a risk retention group is in a hazardous financial condition.
(b) NRS 686A.010 to 686A.310, inclusive. Any injunction obtained pursuant to those sections must be obtained from a court of competent jurisdiction.
2. All premiums paid for coverages within this state to a risk retention group are subject to the provisions of chapter 680B of NRS. Each risk retention group shall report all premiums paid to it and shall pay the taxes on premiums and any related fines or penalties for risks resident, located or to be performed in the state.
3. Any person acting as an agent or a broker for a risk retention group pursuant to NRS 695E.210 shall:
(a) Report to the Commissioner each premium for direct business for risks resident, located or to be performed in this State which the person has placed with or on behalf of a risk retention group that is not chartered in this State.
(b) Maintain a complete and separate record of each policy obtained from each risk retention group. Each record maintained pursuant to this subsection must be made available upon request by the Commissioner for examination pursuant to NRS 679B.240, and must include, for each policy and each kind of insurance provided therein:
(1) The limit of liability;
(2) The period covered;
(3) The effective date;
(4) The name of the risk retention group which issued the policy;
(5) The gross annual premium charged; and
(6) The amount of return premiums, if any.
4. As used in this section, premiums for direct business means any premium written in this State for a policy of insurance. The term does not include any premium for reinsurance or for a contract between members of a risk retention group.
Sec. 67. NRS 695F.090 is hereby amended to read as follows:
695F.090 1. Prepaid limited health service organizations are subject to the provisions of this chapter and to the following provisions, to the extent reasonably applicable:
(a) NRS 686B.010 to 686B.175, inclusive, concerning rates and essential insurance.
(b) NRS 687B.310 to 687B.420, inclusive, concerning cancellation and nonrenewal of policies.
[(b)] (c) NRS 687B.122 to 687B.128, inclusive, concerning readability of policies.
[(c)] (d) The requirements of NRS 679B.152.
κ2021 Statutes of Nevada, Page 2997 (CHAPTER 478, AB 45)κ
[(d)] (e) The fees imposed pursuant to NRS 449.465.
[(e)] (f) NRS 686A.010 to 686A.310, inclusive, concerning trade practices and frauds.
[(f)] (g) The assessment imposed pursuant to NRS 679B.700.
[(g)] (h) Chapter 683A of NRS.
[(h)] (i) To the extent applicable, the provisions of NRS 689B.340 to 689B.580, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance.
[(i)] (j) NRS 689A.035, 689A.0463, 689A.410, 689A.413 and 689A.415.
[(j)] (k) NRS 680B.025 to [680B.039,] 680B.060, 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.
[(k)] (l) Chapter 692C of NRS, concerning holding companies.
[(l)] (m) NRS 689A.637, concerning health centers.
(n) Chapter 681B of NRS, concerning assets and liabilities.
(o) NRS 682A.400 to 682A.468, inclusive, concerning investments.
2. For the purposes of this section and the provisions set forth in subsection 1, a prepaid limited health service organization is included in the meaning of the term insurer.
Sec. 68. NRS 695F.210 is hereby amended to read as follows:
695F.210 1. A prepaid limited health service organization shall maintain in force a fidelity bond in its own name on its officers and employees in an amount not less than $1,000,000 or in any other amount prescribed by the Commissioner.
2. Except as otherwise provided in subsection 3, the bond must be issued by an insurer licensed to do business in this State.
3. If the fidelity bond is not available from an insurer licensed to do business in this State, a prepaid limited health service organization may procure a fidelity bond from a surplus lines broker licensed pursuant to chapter 685A of NRS.
4. In lieu of the bond required pursuant to subsection 1, a prepaid limited health service organization may deposit with the Commissioner cash, securities or other investments described in paragraph (o) of subsection 1 of NRS [695F.180.] 695F.090. The deposit must be maintained in joint custody with the Commissioner in the amount and subject to the same conditions required for a bond pursuant to this subsection.
Sec. 69. NRS 695F.310 is hereby amended to read as follows:
695F.310 1. The Commissioner may examine the affairs of any prepaid limited health service organization as often as is reasonably necessary to protect the interests of the residents of this State, but not less frequently than once every 3 years.
2. A prepaid limited health service organization shall make its books and records available for examination and cooperate with the Commissioner to facilitate the examination.
3. In lieu of such an examination, the Commissioner may accept the report of an examination conducted by the commissioner of insurance of another state.
4. [The reasonable expenses of an] An examination conducted pursuant to this section must be [assessed, billed and paid] conducted in accordance with the provisions of NRS [679B.290.] 679B.230 to 679B.300, inclusive.
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5. A prepaid limited health service organization may be investigated in accordance with NRS 679B.600 to 679B.700, inclusive.
Sec. 70. NRS 695J.140 is hereby amended to read as follows:
695J.140 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] renewal date of the certificate, all applicable renewal fees; or
(2) Except as otherwise provided in subsection 3:
(I) Not more than 30 days after the [expiration] renewal date of the certificate, a renewal fee of 150 percent of all applicable renewal fees [plus any late fee required;] otherwise required, except for any fee required pursuant to NRS 680C.110; or
(II) More than 30 days but not more than 1 year after the [expiration] renewal 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.
4. A certificate which:
(a) Is not renewed pursuant to this section on or before the renewal date expires on the renewal date.
(b) Is renewed pursuant to this section continues in effect until the next renewal date unless it is suspended, revoked or otherwise terminated.
5. As used in this section, renewal date means:
(a) For the first renewal of the certificate, the last day of the month which is 3 years after the month in which the Commissioner originally issued the certificate.
(b) For each renewal after the first renewal of the certificate, the last day of the month which is 3 years after the month in which the certificate was last due to be renewed.
Sec. 71. NRS 696A.080 is hereby amended to read as follows:
696A.080 1. A person shall not render or agree to render motor club service without first depositing and thereafter continuously maintaining security in one of the following forms with the Commissioner:
(a) The sum of $100,000 in cash.
(b) Securities approved by the Commissioner, having a market value of $100,000 and being of a type approved by the Commissioner and legal for investment by admitted insurers issuing nonassessable policies on a reserve basis.
(c) A surety bond which complies with section 3 of this act and is in the principal sum of $100,000 , with an admitted surety insurer as surety.
2. In lieu of the deposit required by subsection 1, a foreign or alien motor club may deposit evidence satisfactory to the Commissioner that it has on deposit with an officer of a state of the United States of America, authorized by the law of such state to accept such deposit:
κ2021 Statutes of Nevada, Page 2999 (CHAPTER 478, AB 45)κ
(a) Securities which meet the requirements of paragraph (b) of subsection 1 of at least a like amount for the benefit and security of all members and creditors of such motor club; or
(b) A surety bond, in the principal sum of $100,000, which meets the requirements of NRS 696A.090, issued by a bonding company authorized to do business in the State of Nevada and in the state where the bond is posted.
Sec. 72. NRS 696A.140 is hereby amended to read as follows:
696A.140 The Commissioner shall not issue a certificate of authority to any motor club until:
1. It files with the Commissioner the following:
(a) A formal application for the certificate in such form and detail as the Commissioner requires, executed under oath by its president or other principal officer.
(b) A certified copy of its charter or articles of incorporation and its bylaws.
2. It pays to the Commissioner the following:
(a) [A] The fee [of $500] specified in NRS 680B.010 for the filing of an application for the certificate;
(b) [A] The fee [of $283] specified in NRS 680B.010 for the issuance of the certificate; and
(c) In addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.
3. It deposits the required cash, securities, bond or evidence of such a deposit in another state as provided in NRS 696A.080 with the Commissioner.
4. Its name is approved by the Commissioner pursuant to NRS 696A.120.
Sec. 73. NRS 696A.300 is hereby amended to read as follows:
696A.300 1. Each license for a club agent issued or renewed under this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. A license may be renewed upon submission of the statement required pursuant to NRS 696A.303 and payment to the Commissioner of all applicable fees for renewal. The statement must be submitted and the fees must be paid on or before the [last day of the month in which] renewal date for the license . [is renewable.]
2. Any license not so renewed expires [at midnight] on the [last day specified for its] renewal [.] date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by the statement required pursuant to NRS 696A.303, a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110.
3. In addition to all applicable fees required pursuant to NRS 680C.110 to be deposited in the Fund for Insurance Administration and Enforcement created by NRS 680C.100, the Commissioner shall collect in advance and deposit with the State Treasurer for credit to the State General Fund the [following] fees specified in NRS 680B.010 for licensure as a club agent . [:
(a) Application and license.......................................................................... $78
(b) Appointment by each motor club.............................................................. 5
(c) Triennial renewal of each license.......................................................... 78]
κ2021 Statutes of Nevada, Page 3000 (CHAPTER 478, AB 45)κ
4. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
Sec. 74. NRS 697.190 is hereby amended to read as follows:
697.190 1. Each applicant for a license as a bail agent, bail solicitor or general agent must file with the application, and thereafter maintain in force while so licensed, a bond [in favor of the people of the State of Nevada executed by an authorized surety insurer. The bond may be continuous in form with total aggregate liability limited to payment as follows:
(a) Bail agent.......................................................................................... $25,000
(b) Bail solicitor....................................................................................... 10,000
(c) General agent.................................................................................... 50,000]
which complies with section 3 of this act and is in an amount determined by the Commissioner.
2. The bond must be conditioned upon full accounting and payment to the person entitled thereto of money, property or other matters coming into the licensees possession through bail bond transactions under the license.
[3. The bond must remain in force until released by the Commissioner, or cancelled by the surety. Without prejudice to any liability previously incurred under the bond, the surety may cancel the bond upon 30 days advance written notice to the licensee and the Commissioner.]
Sec. 75. NRS 697.230 is hereby amended to read as follows:
697.230 1. Except as otherwise provided in NRS 697.177, each license issued to or renewed for a general agent, bail agent, bail enforcement agent or bail solicitor under this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. A license may be renewed upon payment of all applicable fees for renewal to the Commissioner on or before the [last day of the month in which] renewal date for the license . [is renewable.] All applicable fees must be accompanied by:
(a) Proof that the licensee has completed a 3-hour program of continuing education that is:
(1) Offered by the authorized surety insurer from whom the licensee received written appointment, if any, a state or national organization of bail agents or another organization that administers training programs for general agents, bail agents, bail enforcement agents or bail solicitors; and
(2) Approved by the Commissioner;
(b) If the licensee is a natural person, the statement required pursuant to NRS 697.181; and
(c) A written request for renewal of the license. The request must be made and signed:
(1) By the licensee in the case of the renewal of a license as a general agent, bail enforcement agent or bail agent.
(2) By the bail solicitor and the bail agent who employs the solicitor in the case of the renewal of a license as a bail solicitor.
2. Any license that is not renewed on or before the [last day specified for its] renewal date for the license expires [at midnight on that day.] on the renewal date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the date of expiration if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110, and, if the person requesting renewal is a natural person, the statement required pursuant to NRS 697.181.
κ2021 Statutes of Nevada, Page 3001 (CHAPTER 478, AB 45)κ
otherwise required, except for any fee required pursuant to NRS 680C.110, and, if the person requesting renewal is a natural person, the statement required pursuant to NRS 697.181.
3. A bail agents license continues in force while there is in effect an appointment of him or her as a bail agent of one or more authorized insurers. Upon termination of all the bail agents appointments and the bail agents failure to replace any appointment within 30 days thereafter, the bail agents license expires and the bail agent shall promptly deliver his or her license to the Commissioner.
4. The Commissioner shall terminate the license of a general agent for a particular insurer upon a written request by the insurer.
5. This section does not apply to temporary licenses issued under NRS 683A.311 or 697.177.
6. As used in this section, renewal date means:
(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.
(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.
Secs. 76 and 77. (Deleted by amendment.)
Sec. 78. NRS 616B.306 is hereby amended to read as follows:
616B.306 [1.] If a self-insured employer becomes insolvent, institutes any voluntary proceeding under the Bankruptcy Act or is named in any involuntary proceeding thereunder, makes a general or special assignment for the benefit of creditors or fails to pay compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS after an order for payment of any claim becomes final, the Commissioner may, after giving at least 10 days notice to the employer and any insurer or guarantor, use money or interest on securities, sell securities or institute legal proceedings on surety bonds deposited or filed with the Commissioner pursuant to section 3 of this act to the extent necessary to make those payments. Until the Commissioner gives a 10-day notice pursuant to this subsection, the employer is entitled to all interest and dividends on bonds or securities on deposit pursuant to section 3 of this act and to exercise all voting rights, stock options and other similar incidents of ownership thereof.
[2. A company providing a surety bond under NRS 616B.300 may terminate liability on its surety bond by giving the Commissioner and the employer 90 days written notice. The termination does not limit liability which was incurred under the surety bond before the termination. If the employer fails to requalify as a self-insured employer on or before the termination date, the employers certification is withdrawn when the termination becomes effective.]
Sec. 78.5. NRS 616B.398 is hereby amended to read as follows:
616B.398 An association of self-insured public or private employers shall be deemed to have appointed the Commissioner as its [agent] attorney-in-fact to receive any initial legal process authorized by law to be served upon the association for as long as the association is obligated to pay any compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS. Service of process against an association for whom the Commissioner is attorney-in-fact must be made in accordance with NRS 680A.260.
κ2021 Statutes of Nevada, Page 3002 (CHAPTER 478, AB 45)κ
Sec. 79. NRS 616B.440 is hereby amended to read as follows:
616B.440 1. For the purposes of NRS 616B.350 to 616B.446, inclusive, an association of self-insured public or private employers is insolvent if it is unable to pay its outstanding obligations as they mature in the regular course of its business.
2. If an association of self-insured public or private employers becomes insolvent, institutes any voluntary proceeding pursuant to the Bankruptcy Act or is named in any voluntary proceeding thereunder, makes a general or special assignment for the benefit of creditors or fails to pay compensation pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS after an order for the payment of any claim becomes final, the Commissioner may, after giving at least 10 days notice to the association and any insurer or guarantor, use money or interest on securities, sell securities or institute legal proceedings on surety bonds deposited with the Commissioner pursuant to section 3 of this act to the extent necessary to make those payments.
3. A licensed surety providing a surety bond pursuant to NRS 616B.353 may terminate liability on its surety bond by giving the Commissioner and the association, associations administrator or third-party administrator 90 days written notice. The termination does not limit liability that was incurred under the surety bond before the termination. [If the association fails to requalify as an association of self-insured public or private employers on or before the termination date, the associations certificate is withdrawn when the termination becomes effective.]
Secs. 80-85. (Deleted by amendment.)
Sec. 85.5. 1. Notwithstanding any provision of subsection 2 of NRS 616B.353 to the contrary, and except as otherwise provided by subsections 3 and 6 of NRS 616B.353, an association of self-insured private employers shall be deemed to be in compliance with the requirements of subsection 2 of NRS 616B.353 if and only if the association of self-insured private employers has a combined tangible net worth of all members in the association of at least $2,500,000, as evidenced by a statement of tangible net worth provided to the Division of Insurance of the Department of Business and Industry by an independent certified public accountant.
2. This section applies to every association of self-insured private employers from the effective date of this section through June 30, 2023.
3. As used in this section, association of self-insured private employers has the meaning ascribed to it in NRS 616A.050.
Sec. 86. NRS 681A.215, 692A.1043 and 695F.180 are hereby repealed.
Sec. 87. 1. This section and section 85.5 of this act become effective upon passage and approval.
2. Section 13 of this act becomes effective on July 1, 2021.
3. Sections 1 to 12, inclusive, 13.5 to 85, inclusive, and 86 become effective on October 1, 2021.
4. Section 85.5 of this act expires by limitation on June 30, 2023.
________
κ2021 Statutes of Nevada, Page 3003κ
Senate Bill No. 5Committee on Health and Human Services
CHAPTER 479
[Approved: June 4, 2021]
AN ACT relating to health care; requiring the Department of Health and Human Services to establish an electronic tool to analyze certain data concerning access to telehealth; requiring certain entities to review access to services provided through telehealth and evaluate policies to make such access more equitable; revising provisions governing services provided through telehealth and insurance coverage of such services; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law: (1) defines the term telehealth to mean the delivery of services from a provider of health care to a patient at a different location through the use of information and audio-visual communication technology, not including standard telephone, facsimile or electronic mail; and (2) requires a provider of health care who is located in another state to hold a valid license or certificate in this State before using telehealth to provide certain services to a patient located in this State. (NRS 629.515) Section 7 of this bill provides that for the purposes of certain policies of insurance related to industrial insurance, telehealth includes only synchronous interactions. Section 8 of this bill provides that for certain other purposes telehealth includes both synchronous and asynchronous interactions. Section 8 includes as telehealth the delivery of services from a provider of health care to a patient at a different location through an audio-only interaction, which may include the use of a standard telephone. Section 8 expressly authorizes a provider of health care to establish a relationship with a patient through telehealth and authorizes the State Board of Health to adopt regulations governing the establishment of a relationship in that manner. Section 1 of this bill requires the Department of Health and Human Services, to the extent that money is available, to establish a data dashboard that allows for the analysis of data relating to access to telehealth by different groups and populations in this State.
Existing law establishes: (1) the Commission on Behavioral Health, which is comprised of certain providers and consumers of behavioral health services and members of the general public and which establishes policies relating to services for persons with certain behavioral health issues; (2) five regional behavioral health policy boards, each of which is comprised of a Legislator and various persons with knowledge and experience concerning behavioral health in five designated regions of this State and each of which gathers information and provides advice concerning behavioral health needs in the region served by the board; (3) the Patient Protection Commission, which is comprised of stakeholders in the health care industry and which studies issues related to the health care needs of residents of this State; and (4) the Legislative Committee on Health Care, which is comprised of legislators with knowledge of and experience with health care and studies issues related to health care during the interim period between regular legislative sessions. (NRS 232.361, 433.428, 433.429, 433.4295, 439.908, 439.916, 439B.200, 439B.210, 439B.220) If a data dashboard is established pursuant to section 1, sections 2, 3, 5 and 6 of this bill expand the duties of those bodies to include: (1) using the data dashboard to review access by different groups and populations in this State to services provided through telehealth; and (2) evaluating policies to make such access more equitable. Sections 1 and 2 of this bill require the data dashboard, if established, to be accessible through Internet websites maintained by the Department and the Patient Protection Commission, respectively.
κ2021 Statutes of Nevada, Page 3004 (CHAPTER 479, SB 5)κ
Existing law imposes certain requirements concerning coverage of telehealth services by insurers and certain other third-party payers. Those requirements: (1) include a requirement that an insurer or other third-party payer must cover services provided through telehealth to the same extent as if provided in person or by other means, regardless of the site at which the provider or patient is located; and (2) apply to health coverage, including Medicaid and health plans for state and local government employees, and workers compensation coverage. (NRS 287.010, 287.04335, 422.2721, 616C.730, 689A.0463, 689B.0369, 689C.195, 695A.265, 695B.1904, 695C.1708, 695D.216, 695G.162) Because section 8 includes services provided through audio-only interaction within the definition of telehealth for the purposes of those requirements, section 8 makes those requirements applicable to services provided through audio-only interaction. However, section 7 excludes services provided through audio-only interaction from the definition of telehealth for the purposes of industrial insurance, thereby excluding industrial insurance from those requirements governing coverage of services provided through audio-only interaction. Sections 4, 9, 10, 11, 12, 13, 14, 15 and 16 additionally prohibit a third-party payer who is not an industrial insurer from: (1) refusing to pay for services provided through telehealth because of the technology used to provide the services; or (2) categorizing a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means. Sections 4, 9, 10, 11, 12, 13, 14, 15 and 16 also require a third-party payer who is not an industrial insurer to cover services provided through telehealth, except for services provided through audio-only interaction, in the same amount as services provided in person or by other means. Sections 4.3-4.9, 9.3-9.9, 10.3-10.9, 11.3-11.9, 12.3-12.9, 13.3-13.9, 14.3-14.9, 15.5, 16.1-16.3 and 17 of this bill: (1) expire that requirement, as it applies to services other than mental health services, by limitation 1 year after the termination of the emergency declared for COVID-19 or on June 30, 2023, whichever is earlier; and (2) expire that requirement, as it applies to mental health services, by limitation on June 30, 2023.
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 439 of NRS is hereby amended by adding thereto a new section to read as follows:
1. To the extent that money is available for this purpose, the Department shall:
(a) Establish a data dashboard that allows for the analysis of data relating to access to telehealth by different groups and populations in this State. The data dashboard must, to the extent authorized by federal law:
(1) Include, without limitation, data concerning health care services, behavioral health services and dental services provided through telehealth; and
(2) Allow for the user to sort data based on the race, ethnicity, ancestry, national origin, color, sex, sexual orientation, gender identity or expression, mental or physical disability, income level or location of residence of the patient, type of telehealth service and any other category determined useful by the Department; and
(b) Make the data dashboard available on an Internet website maintained by the Department.
2. As used in this section:
κ2021 Statutes of Nevada, Page 3005 (CHAPTER 479, SB 5)κ
(a) Data dashboard means a computerized tool that:
(1) Provides a centralized, interactive means of monitoring, measuring, analyzing and extracting relevant information from different sets of data; and
(2) Displays information in an interactive, intuitive and visual manner.
(b) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 2. NRS 439.916 is hereby amended to read as follows:
439.916 1. The Commission shall systematically review issues related to the health care needs of residents of this State and the quality, accessibility and affordability of health care, including, without limitation, prescription drugs, in this State. The review must include, without limitation:
(a) Comprehensively examining the system for regulating health care in this State, including, without limitation, the licensing and regulation of health care facilities and providers of health care and the role of professional licensing boards, commissions and other bodies established to regulate or evaluate policies related to health care.
(b) Identifying gaps and duplication in the roles of such boards, commissions and other bodies.
(c) Examining the cost of health care and the primary factors impacting those costs.
(d) Examining disparities in the quality and cost of health care between different groups, including, without limitation, minority groups and other distinct populations in this State.
(e) Reviewing the adequacy and types of providers of health care who participate in networks established by health carriers in this State and the geographic distribution of the providers of health care who participate in each such network.
(f) Reviewing the availability of health benefit plans, as defined in NRS 687B.470, in this State.
(g) Reviewing the effect of any changes to Medicaid, including, without limitation, the expansion of Medicaid pursuant to the Patient Protection and Affordable Care Act, Public Law 111-148, on the cost and availability of health care and health insurance in this State.
(h) If a data dashboard is established pursuant to section 1 of this act, using the data dashboard to review access by different groups and populations in this State to services provided through telehealth and evaluating policies to make such access more equitable.
(i) Reviewing proposed and enacted legislation, regulations and other changes to state and local policy related to health care in this State.
[(i)] (j) Researching possible changes to state or local policy in this State that may improve the quality, accessibility or affordability of health care in this State, including, without limitation:
(1) The use of purchasing pools to decrease the cost of health care;
(2) Increasing transparency concerning the cost or provision of health care;
(3) Regulatory measures designed to increase the accessibility and the quality of health care, regardless of geographic location or ability to pay;
(4) Facilitating access to data concerning insurance claims for medical services to assist in the development of public policies;
(5) Resolving problems relating to the billing of patients for medical services;
κ2021 Statutes of Nevada, Page 3006 (CHAPTER 479, SB 5)κ
(6) Leveraging the expenditure of money by the Medicaid program and reimbursement rates under Medicaid to increase the quality and accessibility of health care for low-income persons; and
(7) Increasing access to health care for uninsured populations in this State, including, without limitation, retirees and children.
[(j)] (k) Monitoring and evaluating proposed and enacted federal legislation and regulations and other proposed and actual changes to federal health care policy to determine the impact of such changes on the cost of health care in this State.
[(k)] (l) Evaluating the degree to which the role, structure and duties of the Commission facilitate the oversight of the provision of health care in this State by the Commission and allow the Commission to perform activities necessary to promote the health care needs of residents of this State.
[(l)] (m) Making recommendations to the Governor, the Legislature, the Department of Health and Human Services, local health authorities and any other person or governmental entity to increase the quality, accessibility and affordability of health care in this State, including, without limitation, recommendations concerning the items described in this subsection.
2. If a data dashboard is established pursuant to section 1 of this act, the Commission shall make available on an Internet website maintained by the Commission a hyperlink to the data dashboard.
3. As used in this section:
(a) Health carrier has the meaning ascribed to it in NRS 687B.625.
(b) Network has the meaning ascribed to it in NRS 687B.640.
(c) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 3. 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.
κ2021 Statutes of Nevada, Page 3007 (CHAPTER 479, SB 5)κ
8. Review competitive mechanisms to aid in the reduction of the costs of medical care.
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 NRS 439B.160 to 439B.500, inclusive, and adopting regulations pursuant to those provisions. The Director shall report to the Committee concerning any regulations proposed or adopted pursuant to NRS 439B.160 to 439B.500, inclusive.
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. If a data dashboard is established pursuant to section 1 of this act, use the data dashboard to review access by different groups and populations in this State to services provided through telehealth, as defined in NRS 629.515, and evaluate policies to make such access more equitable.
κ2021 Statutes of Nevada, Page 3008 (CHAPTER 479, SB 5)κ
18. Conduct investigations and hold hearings in connection with its review and analysis and exercise any of the investigative powers set forth in NRS 218E.105 to 218E.140, inclusive.
[18.] 19. Apply for any available grants and accept any gifts, grants or donations to aid the Committee in carrying out its duties pursuant to NRS 439B.160 to 439B.500, inclusive.
[19.] 20. Direct the Legislative Counsel Bureau to assist in its research, investigations, review and analysis.
[20.] 21. Recommend to the Legislature as a result of its review any appropriate legislation.
Sec. 4. NRS 422.2721 is hereby amended to read as follows:
422.2721 1. The Director shall include in the State Plan for Medicaid:
(a) A requirement that the State, and, to the extent applicable, any of its political subdivisions, shall pay for the nonfederal share of expenses for services provided to a person through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means; and
(b) A provision prohibiting the State from:
(1) Requiring a person to obtain prior authorization that would not be required if a service were provided in person or through other means, establish a relationship with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to paying for services as described in paragraph (a). The State Plan for Medicaid may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or through other means.
(2) Requiring a provider of health care to demonstrate that it is necessary to provide services to a person through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to paying for services as described in paragraph (a).
(3) Refusing to pay for services as described in paragraph (a) because of [the] :
(I) The distant site from which a provider of health care provides services through telehealth or the originating site at which a person who is covered by the State Plan for Medicaid receives services through telehealth [.] ; or
(II) The technology used to provide the services.
(4) Requiring services to be provided through telehealth as a condition to paying for such services.
(5) Categorizing a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means.
2. The provisions of this section do not:
(a) Require the Director to include in the State Plan for Medicaid coverage of any service that the Director is not otherwise required by law to include; or
(b) Require the State or any political subdivision thereof to:
(1) Ensure that covered services are available to a recipient of Medicaid through telehealth at a particular originating site; or
(2) Provide coverage for a service that is not included in the State Plan for Medicaid or provided by a provider of health care that does not participate in Medicaid.
κ2021 Statutes of Nevada, Page 3009 (CHAPTER 479, SB 5)κ
3. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 4.3. NRS 422.2721 is hereby amended to read as follows:
422.2721 1. The Director shall include in the State Plan for Medicaid:
(a) A requirement that the State, and, to the extent applicable, any of its political subdivisions, shall pay for the nonfederal share of expenses for services provided to a person through telehealth to the same extent and, for mental health services except [for] when such services are provided through audio-only interaction, in the same amount as though provided in person or by other means; and
(b) A provision prohibiting the State from:
(1) Requiring a person to obtain prior authorization that would not be required if a service were provided in person or through other means, establish a relationship with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to paying for services as described in paragraph (a). The State Plan for Medicaid may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or through other means.
(2) Requiring a provider of health care to demonstrate that it is necessary to provide services to a person through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to paying for services as described in paragraph (a).
(3) Refusing to pay for services as described in paragraph (a) because of:
(I) The distant site from which a provider of health care provides services through telehealth or the originating site at which a person who is covered by the State Plan for Medicaid receives services through telehealth; or
(II) The technology used to provide the services.
(4) Requiring services to be provided through telehealth as a condition to paying for such services.
(5) Categorizing a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
(6) Categorizing a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.
2. The provisions of this section do not:
(a) Require the Director to include in the State Plan for Medicaid coverage of any service that the Director is not otherwise required by law to include; or
(b) Require the State or any political subdivision thereof to:
(1) Ensure that covered services are available to a recipient of Medicaid through telehealth at a particular originating site; or
κ2021 Statutes of Nevada, Page 3010 (CHAPTER 479, SB 5)κ
(2) Provide coverage for a service that is not included in the State Plan for Medicaid or provided by a provider of health care that does not participate in Medicaid.
3. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 4.6. NRS 422.2721 is hereby amended to read as follows:
422.2721 1. The Director shall include in the State Plan for Medicaid:
(a) A requirement that the State, and, to the extent applicable, any of its political subdivisions, shall pay for the nonfederal share of expenses for services provided to a person through telehealth to the same extent [and, for mental health services except where such services are provided through audio-only interaction, in the same amount] as though provided in person or by other means; and
(b) A provision prohibiting the State from:
(1) Requiring a person to obtain prior authorization that would not be required if a service were provided in person or through other means, establish a relationship with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to paying for services as described in paragraph (a). The State Plan for Medicaid may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or through other means.
(2) Requiring a provider of health care to demonstrate that it is necessary to provide services to a person through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to paying for services as described in paragraph (a).
(3) Refusing to pay for services as described in paragraph (a) because of:
(I) The distant site from which a provider of health care provides services through telehealth or the originating site at which a person who is covered by the State Plan for Medicaid receives services through telehealth; or
(II) The technology used to provide the services.
(4) Requiring services to be provided through telehealth as a condition to paying for such services.
(5) Categorizing a service provided through telehealth differently for purposes relating to coverage than if the service had been provided in person or through other means.
[(6) Categorizing a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.]
2. The provisions of this section do not:
(a) Require the Director to include in the State Plan for Medicaid coverage of any service that the Director is not otherwise required by law to include; or
(b) Require the State or any political subdivision thereof to:
κ2021 Statutes of Nevada, Page 3011 (CHAPTER 479, SB 5)κ
(1) Ensure that covered services are available to a recipient of Medicaid through telehealth at a particular originating site; or
(2) Provide coverage for a service that is not included in the State Plan for Medicaid or provided by a provider of health care that does not participate in Medicaid.
3. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 4.9. NRS 422.2721 is hereby amended to read as follows:
422.2721 1. The Director shall include in the State Plan for Medicaid:
(a) A requirement that the State, and, to the extent applicable, any of its political subdivisions, shall pay for the nonfederal share of expenses for services provided to a person through telehealth to the same extent [and, except for services provided through audio-only interaction, in the same amount] as though provided in person or by other means; and
(b) A provision prohibiting the State from:
(1) Requiring a person to obtain prior authorization that would not be required if a service were provided in person or through other means, establish a relationship with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to paying for services as described in paragraph (a). The State Plan for Medicaid may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or through other means.
(2) Requiring a provider of health care to demonstrate that it is necessary to provide services to a person through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to paying for services as described in paragraph (a).
(3) Refusing to pay for services as described in paragraph (a) because of:
(I) The distant site from which a provider of health care provides services through telehealth or the originating site at which a person who is covered by the State Plan for Medicaid receives services through telehealth; or
(II) The technology used to provide the services.
(4) Requiring services to be provided through telehealth as a condition to paying for such services.
(5) Categorizing a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
2. The provisions of this section do not:
(a) Require the Director to include in the State Plan for Medicaid coverage of any service that the Director is not otherwise required by law to include; or
(b) Require the State or any political subdivision thereof to:
(1) Ensure that covered services are available to a recipient of Medicaid through telehealth at a particular originating site; or
κ2021 Statutes of Nevada, Page 3012 (CHAPTER 479, SB 5)κ
(2) Provide coverage for a service that is not included in the State Plan for Medicaid or provided by a provider of health care that does not participate in Medicaid.
3. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 5. NRS 433.314 is hereby amended to read as follows:
433.314 1. The Commission shall:
(a) Establish policies to ensure adequate development and administration of services for persons with mental illness, persons with intellectual disabilities, persons with developmental disabilities, persons with substance use disorders or persons with co-occurring disorders, including services to prevent mental illness, intellectual disabilities, developmental disabilities, substance use disorders and co-occurring disorders, and services provided without admission to a facility or institution;
(b) Set policies for the care and treatment of persons with mental illness, persons with intellectual disabilities, persons with developmental disabilities, persons with substance use disorders or persons with co-occurring disorders provided by all state agencies;
(c) If a data dashboard is established pursuant to section 1 of this act, use the data dashboard to review access by different groups and populations in this State to behavioral health services provided through telehealth, as defined in NRS 629.515, and evaluate policies to make such access more equitable;
(d) Review the programs and finances of the Division;
[(d)] (e) Report at the beginning of each year to the Governor and at the beginning of each odd-numbered year to the Legislature:
(1) Information concerning the quality of the care and treatment provided for persons with mental illness, persons with intellectual disabilities, persons with developmental disabilities, persons with substance use disorders or persons with co-occurring disorders in this State and on any progress made toward improving the quality of that care and treatment; and
(2) In coordination with the Department, any recommendations from the regional behavioral health policy boards created pursuant to NRS 433.429. The report must include, without limitation:
(I) The epidemiologic profiles of substance use disorders, addictive disorders related to gambling and suicide;
(II) Relevant behavioral health prevalence data for each behavioral health region created by NRS 433.428; and
(III) The health priorities set for each behavioral health region; and
[(e)] (f) Review and make recommendations concerning regulations submitted to the Commission for review pursuant to NRS 641.100, 641A.160, 641B.160 and 641C.200.
2. The Commission may employ an administrative assistant and a data analyst to assist the regional behavioral health policy boards created by NRS 433.429 in carrying out their duties.
κ2021 Statutes of Nevada, Page 3013 (CHAPTER 479, SB 5)κ
Sec. 6. NRS 433.4295 is hereby amended to read as follows:
433.4295 1. Each policy board shall:
(a) Advise the Department, Division and Commission regarding:
(1) The behavioral health needs of adults and children in the behavioral health region;
(2) Any progress, problems or proposed plans relating to the provision of behavioral health services and methods to improve the provision of behavioral health services in the behavioral health region;
(3) Identified gaps in the behavioral health services which are available in the behavioral health region and any recommendations or service enhancements to address those gaps;
(4) Any federal, state or local law or regulation that relates to behavioral health which it determines is redundant, conflicts with other laws or is obsolete and any recommendation to address any such redundant, conflicting or obsolete law or regulation; and
(5) Priorities for allocating money to support and develop behavioral health services in the behavioral health region.
(b) Promote improvements in the delivery of behavioral health services in the behavioral health region.
(c) Coordinate and exchange information with the other policy boards to provide unified and coordinated recommendations to the Department, Division and Commission regarding behavioral health services in the behavioral health region.
(d) Review the collection and reporting standards of behavioral health data to determine standards for such data collection and reporting processes.
(e) To the extent feasible, establish an organized, sustainable and accurate electronic repository of data and information concerning behavioral health and behavioral health services in the behavioral health region that is accessible to members of the public on an Internet website maintained by the policy board. A policy board may collaborate with an existing community-based organization to establish the repository.
(f) To the extent feasible, track and compile data concerning persons admitted to mental health facilities and hospitals pursuant to NRS 433A.145 to 433A.197, inclusive, and to mental health facilities and programs of community-based or outpatient services pursuant to NRS 433A.200 to 433A.330, inclusive, in the behavioral health region, including, without limitation:
(1) The outcomes of treatment provided to such persons; and
(2) Measures taken upon and after the release of such persons to address behavioral health issues and prevent future admissions.
(g) If a data dashboard is established pursuant to section 1 of this act, use the data dashboard to review access by different groups and populations in this State to behavioral health services provided through telehealth, as defined in NRS 629.515, and evaluate policies to make such access more equitable.
(h) Identify and coordinate with other entities in the behavioral health region and this State that address issues relating to behavioral health to increase awareness of such issues and avoid duplication of efforts.
[(h)] (i) In coordination with existing entities in this State that address issues relating to behavioral health services, submit an annual report to the Commission which includes, without limitation:
κ2021 Statutes of Nevada, Page 3014 (CHAPTER 479, SB 5)κ
(1) The specific behavioral health needs of the behavioral health region;
(2) A description of the methods used by the policy board to collect and analyze data concerning the behavioral health needs and problems of the behavioral health region and gaps in behavioral health services which are available in the behavioral health region, including, without limitation, a list of all sources of such data used by the policy board;
(3) A description of the manner in which the policy board has carried out the requirements of paragraphs (c) and [(g)] (h) of subsection 1 and the results of those activities; and
(4) The data compiled pursuant to paragraph (f) and any conclusions that the policy board has derived from such data.
2. A report described in paragraph [(h)] (i) of subsection 1 may be submitted more often than annually if the policy board determines that a specific behavioral health issue requires an additional report to the Commission.
Sec. 7. NRS 616C.730 is hereby amended to read as follows:
616C.730 1. Every policy of insurance issued pursuant to chapters 616A to 617, inclusive, of NRS must include coverage for services provided to an employee through telehealth to the same extent as though provided in person or by other means.
2. An insurer shall not:
(a) Require an employee to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an employee through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of the distant site from which a provider of health care provides services through telehealth or the originating site at which an employee receives services through telehealth; or
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services.
3. A policy of insurance issued pursuant to chapters 616A to 617, inclusive, of NRS must not require an employee to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. Such a policy of insurance may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an insurer to:
(a) Ensure that covered services are available to an employee through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the insurer is not otherwise required by law to do so.
5. A policy of insurance subject to the provisions of chapters 616A to 617, inclusive, of NRS that is delivered, issued for delivery or renewed on or after July 1, 2015, 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.
κ2021 Statutes of Nevada, Page 3015 (CHAPTER 479, SB 5)κ
after July 1, 2015, 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.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth [has the meaning ascribed to it in NRS 629.515.] means the delivery of services from a provider of health care to a patient at a different location through a synchronous interaction using information and audio-visual communication technology, not including audio-only technology, facsimile or electronic mail.
Sec. 8. NRS 629.515 is hereby amended to read as follows:
629.515 1. Except as otherwise provided in this subsection, before a provider of health care who is located at a distant site may use telehealth to direct or manage the care or render a diagnosis of a patient who is located at an originating site in this State or write a treatment order or prescription for such a patient, the provider must hold a valid license or certificate to practice his or her profession in this State, including, without limitation, a special purpose license issued pursuant to NRS 630.261. The requirements of this subsection do not apply to a provider of health care who is providing services within the scope of his or her employment by or pursuant to a contract entered into with an urban Indian organization, as defined in 25 U.S.C. § 1603.
2. The provisions of this section must not be interpreted or construed to:
(a) Modify, expand or alter the scope of practice of a provider of health care; or
(b) Authorize a provider of health care to provide services in a setting that is not authorized by law or in a manner that violates the standard of care required of the provider of health care.
3. A provider of health care who is located at a distant site and uses telehealth to direct or manage the care or render a diagnosis of a patient who is located at an originating site in this State or write a treatment order or prescription for such a patient:
(a) Is subject to the laws and jurisdiction of the State of Nevada, including, without limitation, any regulations adopted by an occupational licensing board in this State, regardless of the location from which the provider of health care provides services through telehealth.
(b) Shall comply with all federal and state laws that would apply if the provider were located at a distant site in this State.
4. A provider of health care may establish a relationship with a patient using telehealth when it is clinically appropriate to establish a relationship with a patient in that manner. The State Board of Health may adopt regulations governing the process by which a provider of health care may establish a relationship with a patient using telehealth.
5. As used in this section:
(a) Distant site means the location of the site where a telehealth provider of health care is providing telehealth services to a patient located at an originating site.
κ2021 Statutes of Nevada, Page 3016 (CHAPTER 479, SB 5)κ
(b) Originating site means the location of the site where a patient is receiving telehealth services from a provider of health care located at a distant site.
(c) Telehealth means the delivery of services from a provider of health care to a patient at a different location through the use of information and audio-visual communication technology, not including [standard telephone,] facsimile or electronic mail. The term includes, without limitation, the delivery of services from a provider of health care to a patient at a different location through the use of:
(1) Synchronous interaction or an asynchronous system of storing and forwarding information; and
(2) Audio-only interaction, whether synchronous or asynchronous.
Sec. 9. NRS 689A.0463 is hereby amended to read as follows:
689A.0463 1. A policy of health insurance must include coverage for services provided to an insured through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. An insurer shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of [the] :
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services [.] ; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means.
3. A policy of health insurance must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A policy of health insurance may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an insurer to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the insurer is not otherwise required by law to do so.
5. A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after [July 1, 2015,] October 1, 2021, 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.
κ2021 Statutes of Nevada, Page 3017 (CHAPTER 479, SB 5)κ
October 1, 2021, 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.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 9.3. NRS 689A.0463 is hereby amended to read as follows:
689A.0463 1. A policy of health insurance must include coverage for services provided to an insured through telehealth to the same extent and, for mental health services except [for] when such services are provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. An insurer shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; [or]
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means [.] ; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.
3. A policy of health insurance must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A policy of health insurance may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an insurer to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the insurer is not otherwise required by law to do so.
κ2021 Statutes of Nevada, Page 3018 (CHAPTER 479, SB 5)κ
5. A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, 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.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 9.6. NRS 689A.0463 is hereby amended to read as follows:
689A.0463 1. A policy of health insurance must include coverage for services provided to an insured through telehealth to the same extent [and, for mental health services except where such services are provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. An insurer shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage than if the service had been provided in person or through other means . [; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.]
3. A policy of health insurance must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A policy of health insurance may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an insurer to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
κ2021 Statutes of Nevada, Page 3019 (CHAPTER 479, SB 5)κ
(c) Enter into a contract with any provider of health care or cover any service if the insurer is not otherwise required by law to do so.
5. A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, 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.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 9.9. NRS 689A.0463 is hereby amended to read as follows:
689A.0463 1. A policy of health insurance must include coverage for services provided to an insured through telehealth to the same extent [and, except for services provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. An insurer shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
3. A policy of health insurance must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A policy of health insurance may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an insurer to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the insurer is not otherwise required by law to do so.
5. A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, 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.
κ2021 Statutes of Nevada, Page 3020 (CHAPTER 479, SB 5)κ
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.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 10. NRS 689B.0369 is hereby amended to read as follows:
689B.0369 1. A policy of group or blanket health insurance must include coverage for services provided to an insured through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. An insurer shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of [the] :
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services [.] ; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means.
3. A policy of group or blanket health insurance must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for that service when provided in person. A policy of group or blanket health insurance may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an insurer to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the insurer is not otherwise required by law to do so.
5. A policy of group or blanket health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after [July 1, 2015,] October 1, 2021, 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.
κ2021 Statutes of Nevada, Page 3021 (CHAPTER 479, SB 5)κ
coverage required by this section, and any provision of the policy or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 10.3. NRS 689B.0369 is hereby amended to read as follows:
689B.0369 1. A policy of group or blanket health insurance must include coverage for services provided to an insured through telehealth to the same extent and, for mental health services except [for] when such services are provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. An insurer shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; [or]
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means [.] ; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.
3. A policy of group or blanket health insurance must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for that service when provided in person. A policy of group or blanket health insurance may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an insurer to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the insurer is not otherwise required by law to do so.
5. A policy of group or blanket health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, 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.
κ2021 Statutes of Nevada, Page 3022 (CHAPTER 479, SB 5)κ
or after October 1, 2021, 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.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 10.6. NRS 689B.0369 is hereby amended to read as follows:
689B.0369 1. A policy of group or blanket health insurance must include coverage for services provided to an insured through telehealth to the same extent [and, for mental health services except where such services are provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. An insurer shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage than if the service had been provided in person or through other means . [; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.]
3. A policy of group or blanket health insurance must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for that service when provided in person. A policy of group or blanket health insurance may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an insurer to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the insurer is not otherwise required by law to do so.
κ2021 Statutes of Nevada, Page 3023 (CHAPTER 479, SB 5)κ
5. A policy of group or blanket health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, 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.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 10.9. NRS 689B.0369 is hereby amended to read as follows:
689B.0369 1. A policy of group or blanket health insurance must include coverage for services provided to an insured through telehealth to the same extent [and, except for services provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. An insurer shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
3. A policy of group or blanket health insurance must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for that service when provided in person. A policy of group or blanket health insurance may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an insurer to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the insurer is not otherwise required by law to do so.
5. A policy of group or blanket health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, 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.
κ2021 Statutes of Nevada, Page 3024 (CHAPTER 479, SB 5)κ
required by this section, and any provision of the policy or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 11. NRS 689C.195 is hereby amended to read as follows:
689C.195 1. A health benefit plan must include coverage for services provided to an insured through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A carrier shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of [the] :
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services [.] ; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means.
3. A health benefit plan must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A health benefit plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a carrier to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the carrier is not otherwise required by law to do so.
5. A plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after [July 1, 2015,] October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
κ2021 Statutes of Nevada, Page 3025 (CHAPTER 479, SB 5)κ
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 11.3. NRS 689C.195 is hereby amended to read as follows:
689C.195 1. A health benefit plan must include coverage for services provided to an insured through telehealth to the same extent and, for mental health services except [for] when such services are provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A carrier shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; [or]
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means [.] ; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.
3. A health benefit plan must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A health benefit plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a carrier to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the carrier is not otherwise required by law to do so.
5. A plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
κ2021 Statutes of Nevada, Page 3026 (CHAPTER 479, SB 5)κ
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 11.6. NRS 689C.195 is hereby amended to read as follows:
689C.195 1. A health benefit plan must include coverage for services provided to an insured through telehealth to the same extent [and, for mental health services except where such services are provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A carrier shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage than if the service had been provided in person or through other means . [; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.]
3. A health benefit plan must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A health benefit plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a carrier to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the carrier is not otherwise required by law to do so.
5. A plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
κ2021 Statutes of Nevada, Page 3027 (CHAPTER 479, SB 5)κ
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 11.9. NRS 689C.195 is hereby amended to read as follows:
689C.195 1. A health benefit plan must include coverage for services provided to an insured through telehealth to the same extent [and, except for services provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A carrier shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
3. A health benefit plan must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A health benefit plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a carrier to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the carrier is not otherwise required by law to do so.
5. A plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
κ2021 Statutes of Nevada, Page 3028 (CHAPTER 479, SB 5)κ
Sec. 12. NRS 695A.265 is hereby amended to read as follows:
695A.265 1. A benefit contract must include coverage for services provided to an insured through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A society shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of [the] :
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services [.] ; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means.
3. A benefit contract must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A benefit contract may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a society to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the society is not otherwise required by law to do so.
5. A benefit contract subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after [July 1, 2015,] October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the contract or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 12.3. NRS 695A.265 is hereby amended to read as follows:
695A.265 1. A benefit contract must include coverage for services provided to an insured through telehealth to the same extent and, for mental health services except [for] when such services are provided through audio-only interaction, in the same amount as though provided in person or by other means.
κ2021 Statutes of Nevada, Page 3029 (CHAPTER 479, SB 5)κ
health services except [for] when such services are provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A society shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; [or]
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means [.] ; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.
3. A benefit contract must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A benefit contract may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a society to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the society is not otherwise required by law to do so.
5. A benefit contract subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the contract or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
κ2021 Statutes of Nevada, Page 3030 (CHAPTER 479, SB 5)κ
Sec. 12.6. NRS 695A.265 is hereby amended to read as follows:
695A.265 1. A benefit contract must include coverage for services provided to an insured through telehealth to the same extent [and, for mental health services except where such services are provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A society shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage than if the service had been provided in person or through other means . [; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.]
3. A benefit contract must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A benefit contract may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a society to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the society is not otherwise required by law to do so.
5. A benefit contract subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the contract or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
κ2021 Statutes of Nevada, Page 3031 (CHAPTER 479, SB 5)κ
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 12.9. NRS 695A.265 is hereby amended to read as follows:
695A.265 1. A benefit contract must include coverage for services provided to an insured through telehealth to the same extent [and, except for services provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A society shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
3. A benefit contract must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A benefit contract may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a society to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the society is not otherwise required by law to do so.
5. A benefit contract subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the contract or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 13. NRS 695B.1904 is hereby amended to read as follows:
695B.1904 1. A contract for hospital, medical or dental services subject to the provisions of this chapter must include services provided to an insured through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means.
κ2021 Statutes of Nevada, Page 3032 (CHAPTER 479, SB 5)κ
insured through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A medical services corporation that issues contracts for hospital, medical or dental services shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of [the] :
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services [.] ; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means.
3. A contract for hospital, medical or dental services must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A contract for hospital, medical or dental services may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a medical services corporation that issues contracts for hospital, medical or dental services to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the medical services corporation is not otherwise required by law to do so.
5. A contract for hospital, medical or dental services subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after [July 1, 2015,] October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the contract or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
κ2021 Statutes of Nevada, Page 3033 (CHAPTER 479, SB 5)κ
Sec. 13.3. NRS 695B.1904 is hereby amended to read as follows:
695B.1904 1. A contract for hospital, medical or dental services subject to the provisions of this chapter must include services provided to an insured through telehealth to the same extent and, for mental health services except [for] when such services are provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A medical services corporation that issues contracts for hospital, medical or dental services shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; [or]
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means [.] ; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.
3. A contract for hospital, medical or dental services must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A contract for hospital, medical or dental services may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a medical services corporation that issues contracts for hospital, medical or dental services to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the medical services corporation is not otherwise required by law to do so.
5. A contract for hospital, medical or dental services subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the contract or the renewal which is in conflict with this section is void.
6. As used in this section:
κ2021 Statutes of Nevada, Page 3034 (CHAPTER 479, SB 5)κ
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 13.6. NRS 695B.1904 is hereby amended to read as follows:
695B.1904 1. A contract for hospital, medical or dental services subject to the provisions of this chapter must include services provided to an insured through telehealth to the same extent [and, for mental health services except where such services are provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A medical services corporation that issues contracts for hospital, medical or dental services shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage than if the service had been provided in person or through other means . [; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.]
3. A contract for hospital, medical or dental services must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A contract for hospital, medical or dental services may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a medical services corporation that issues contracts for hospital, medical or dental services to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the medical services corporation is not otherwise required by law to do so.
κ2021 Statutes of Nevada, Page 3035 (CHAPTER 479, SB 5)κ
5. A contract for hospital, medical or dental services subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the contract or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 13.9. NRS 695B.1904 is hereby amended to read as follows:
695B.1904 1. A contract for hospital, medical or dental services subject to the provisions of this chapter must include services provided to an insured through telehealth to the same extent [and, except for services provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A medical services corporation that issues contracts for hospital, medical or dental services shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
3. A contract for hospital, medical or dental services must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A contract for hospital, medical or dental services may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a medical services corporation that issues contracts for hospital, medical or dental services to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
κ2021 Statutes of Nevada, Page 3036 (CHAPTER 479, SB 5)κ
(c) Enter into a contract with any provider of health care or cover any service if the medical services corporation is not otherwise required by law to do so.
5. A contract for hospital, medical or dental services subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the contract or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 14. NRS 695C.1708 is hereby amended to read as follows:
695C.1708 1. A health care plan of a health maintenance organization must include coverage for services provided to an enrollee through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A health maintenance organization shall not:
(a) Require an enrollee to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an enrollee through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of [the] :
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an enrollee receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services [.] ; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means.
3. A health care plan of a health maintenance organization must not require an enrollee to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. Such a health care plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a health maintenance organization to:
(a) Ensure that covered services are available to an enrollee through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
κ2021 Statutes of Nevada, Page 3037 (CHAPTER 479, SB 5)κ
(c) Enter into a contract with any provider of health care or cover any service if the health maintenance organization is not otherwise required by law to do so.
5. Evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after [July 1, 2015,] October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 14.3. NRS 695C.1708 is hereby amended to read as follows:
695C.1708 1. A health care plan of a health maintenance organization must include coverage for services provided to an enrollee through telehealth to the same extent and, for mental health services except [for] when such services are provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A health maintenance organization shall not:
(a) Require an enrollee to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an enrollee through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an enrollee receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; [or]
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means [.] ; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.
3. A health care plan of a health maintenance organization must not require an enrollee to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. Such a health care plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a health maintenance organization to:
κ2021 Statutes of Nevada, Page 3038 (CHAPTER 479, SB 5)κ
(a) Ensure that covered services are available to an enrollee through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the health maintenance organization is not otherwise required by law to do so.
5. Evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 14.6. NRS 695C.1708 is hereby amended to read as follows:
695C.1708 1. A health care plan of a health maintenance organization must include coverage for services provided to an enrollee through telehealth [to the same extent and, for mental health services except where such services are provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A health maintenance organization shall not:
(a) Require an enrollee to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an enrollee through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an enrollee receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage than if the service had been provided in person or through other means . [; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.]
3. A health care plan of a health maintenance organization must not require an enrollee to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. Such a health care plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
κ2021 Statutes of Nevada, Page 3039 (CHAPTER 479, SB 5)κ
4. The provisions of this section do not require a health maintenance organization to:
(a) Ensure that covered services are available to an enrollee through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the health maintenance organization is not otherwise required by law to do so.
5. Evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 14.9. NRS 695C.1708 is hereby amended to read as follows:
695C.1708 1. A health care plan of a health maintenance organization must include coverage for services provided to an enrollee through telehealth to the same extent [and, except for services provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A health maintenance organization shall not:
(a) Require an enrollee to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an enrollee through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an enrollee receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
3. A health care plan of a health maintenance organization must not require an enrollee to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. Such a health care plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a health maintenance organization to:
κ2021 Statutes of Nevada, Page 3040 (CHAPTER 479, SB 5)κ
(a) Ensure that covered services are available to an enrollee through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the health maintenance organization is not otherwise required by law to do so.
5. Evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 15. NRS 695D.216 is hereby amended to read as follows:
695D.216 1. A plan for dental care must include coverage for services provided to a member through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. An organization for dental care shall not:
(a) Require a member to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to a member through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of [the] :
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which a member receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services [.] ; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means.
3. A plan for dental care must not require a member to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A plan for dental care may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an organization for dental care to:
(a) Ensure that covered services are available to a member through telehealth at a particular originating site;
κ2021 Statutes of Nevada, Page 3041 (CHAPTER 479, SB 5)κ
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the organization for dental care is not otherwise required by law to do so.
5. A plan for dental care subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after [July 1, 2015,] October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 15.5. NRS 695D.216 is hereby amended to read as follows:
695D.216 1. A plan for dental care must include coverage for services provided to a member through telehealth to the same extent [and, except for services provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. An organization for dental care shall not:
(a) Require a member to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to a member through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which a member receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
3. A plan for dental care must not require a member to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. A plan for dental care may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require an organization for dental care to:
(a) Ensure that covered services are available to a member through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
κ2021 Statutes of Nevada, Page 3042 (CHAPTER 479, SB 5)κ
(c) Enter into a contract with any provider of health care or cover any service if the organization for dental care is not otherwise required by law to do so.
5. A plan for dental care subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 16. NRS 695G.162 is hereby amended to read as follows:
695G.162 1. A health care plan issued by a managed care organization for group coverage must include coverage for services provided to an insured through telehealth to the same extent and, except for services provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A managed care organization shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of [the] :
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services [.] ; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage or reimbursement than if the service had been provided in person or through other means.
3. A health care plan of a managed care organization must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. Such a health care plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a managed care organization to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
κ2021 Statutes of Nevada, Page 3043 (CHAPTER 479, SB 5)κ
(c) Enter into a contract with any provider of health care or cover any service if the managed care organization is not otherwise required by law to do so.
5. Evidence of coverage that is delivered, issued for delivery or renewed on or after [July 1, 2015,] October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 16.1. NRS 695G.162 is hereby amended to read as follows:
695G.162 1. A health care plan issued by a managed care organization for group coverage must include coverage for services provided to an insured through telehealth to the same extent and, for mental health services except [for] when such services are provided through audio-only interaction, in the same amount as though provided in person or by other means.
2. A managed care organization shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; [or]
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means [.] ; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.
3. A health care plan of a managed care organization must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. Such a health care plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a managed care organization to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
κ2021 Statutes of Nevada, Page 3044 (CHAPTER 479, SB 5)κ
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the managed care organization is not otherwise required by law to do so.
5. Evidence of coverage that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 16.2. NRS 695G.162 is hereby amended to read as follows:
695G.162 1. A health care plan issued by a managed care organization for group coverage must include coverage for services provided to an insured through telehealth to the same extent [and, for mental health services except where such services are provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A managed care organization shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage than if the service had been provided in person or through other means . [; or
(f) Categorize a mental health service provided through telehealth, other than through audio-only interaction, differently for purposes relating to reimbursement than if the service had been provided in person or by other means.]
3. A health care plan of a managed care organization must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. Such a health care plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a managed care organization to:
κ2021 Statutes of Nevada, Page 3045 (CHAPTER 479, SB 5)κ
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the managed care organization is not otherwise required by law to do so.
5. Evidence of coverage that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 16.3. NRS 695G.162 is hereby amended to read as follows:
695G.162 1. A health care plan issued by a managed care organization for group coverage must include coverage for services provided to an insured through telehealth to the same extent [and, except for services provided through audio-only interaction, in the same amount] as though provided in person or by other means.
2. A managed care organization shall not:
(a) Require an insured to establish a relationship in person with a provider of health care or provide any additional consent to or reason for obtaining services through telehealth as a condition to providing the coverage described in subsection 1;
(b) Require a provider of health care to demonstrate that it is necessary to provide services to an insured through telehealth or receive any additional type of certification or license to provide services through telehealth as a condition to providing the coverage described in subsection 1;
(c) Refuse to provide the coverage described in subsection 1 because of:
(1) The distant site from which a provider of health care provides services through telehealth or the originating site at which an insured receives services through telehealth; or
(2) The technology used to provide the services;
(d) Require covered services to be provided through telehealth as a condition to providing coverage for such services; or
(e) Categorize a service provided through telehealth differently for purposes relating to coverage [or reimbursement] than if the service had been provided in person or through other means.
3. A health care plan of a managed care organization must not require an insured to obtain prior authorization for any service provided through telehealth that is not required for the service when provided in person. Such a health care plan may require prior authorization for a service provided through telehealth if such prior authorization would be required if the service were provided in person or by other means.
4. The provisions of this section do not require a managed care organization to:
(a) Ensure that covered services are available to an insured through telehealth at a particular originating site;
κ2021 Statutes of Nevada, Page 3046 (CHAPTER 479, SB 5)κ
(b) Provide coverage for a service that is not a covered service or that is not provided by a covered provider of health care; or
(c) Enter into a contract with any provider of health care or cover any service if the managed care organization is not otherwise required by law to do so.
5. Evidence of coverage that is delivered, issued for delivery or renewed on or after October 1, 2021, has the legal effect of including the coverage required by this section, and any provision of the plan or the renewal which is in conflict with this section is void.
6. As used in this section:
(a) Distant site has the meaning ascribed to it in NRS 629.515.
(b) Originating site has the meaning ascribed to it in NRS 629.515.
(c) Provider of health care has the meaning ascribed to it in NRS 439.820.
(d) Telehealth has the meaning ascribed to it in NRS 629.515.
Sec. 16.5. 1. Any regulations adopted by a regulatory body that conflict with the amendatory provisions of this act are void. The Legislative Counsel shall remove those regulations from the Nevada Administrative Code as soon as practicable after October 1, 2021.
2. As used in this section, regulatory body has the meaning ascribed to it in NRS 622.060.
Sec. 17. 1. This section becomes effective upon passage and approval.
2. Sections 1 to 4, inclusive, 5 to 9, inclusive, 10, 11, 12, 13, 14, 15, 16 and 16.5 of this act become effective:
(a) Upon passage and approval for the purpose of performing any preparatory administrative tasks that are necessary to carry out the provisions of this act; and
(b) On October 1, 2021, for all other purposes.
3. Sections 4.3, 9.3, 10.3, 11.3, 12.3, 13.3, 14.3 and 16.1 of this act become effective 1 year after the date on which the Governor terminates the emergency described in the Declaration of Emergency for COVID-19 issued on March 12, 2020, only if the Governor terminates that emergency before July 1, 2022.
4. Sections 4.6, 9.6, 10.6, 11.6, 12.6, 13.6, 14.6 and 16.2 of this act become effective on July 1, 2023, only if the Governor terminates the emergency described in the Declaration of Emergency for COVID-19 issued on March 12, 2020, before July 1, 2022.
5. Sections 4.9, 9.9, 10.9, 11.9, 12.9, 13.9, 14.9 and 16.3 of this act become effective on June 30, 2023, only if the Governor terminates the emergency described in the Declaration of Emergency for COVID-19 issued on March 12, 2020, on or after July 1, 2022.
6. Section 15.5 of this act becomes effective on June 30, 2023, or 1 year after the date on which the Governor terminates the emergency described in the Declaration of Emergency for COVID-19 issued on March 12, 2020, whichever is earlier.
________
κ2021 Statutes of Nevada, Page 3047κ
Senate Bill No. 40Committee on Health and Human Services
CHAPTER 480
[Approved: June 4, 2021]
AN ACT relating to health care; authorizing the Patient Protection Commission to request certain reports from a state or local governmental entity; requiring the Department of Health and Human Services to establish an all-payer claims database containing information relating to health insurance claims for benefits provided in this State under certain circumstances; requiring certain insurers to submit data to the database; authorizing certain additional insurers to submit data to the database; providing for the release and use of data in the database under certain circumstances; requiring the Department to publish a report on the quality and cost of health care using data from the database; requiring the Department to submit certain other reports concerning the database to the Legislature; providing immunity from civil and criminal liability for certain persons and entities; authorizing the imposition of administrative penalties and other administrative sanctions for violations of certain requirements concerning the database; prescribing authorized uses for certain administrative penalties; requiring the Department to compile a report containing an inventory of certain data; making an appropriation; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law creates the Patient Protection Commission, which is made up of certain stakeholders in the delivery of health care. (NRS 439.908) Existing law requires the Commission to systematically review issues related to the health care needs of residents of this State and the quality, accessibility and affordability of health care. (NRS 439.916) Existing law: (1) authorizes the Executive Director of the Commission to request any information maintained by a state agency that is necessary for the performance of his or her duties; and (2) prohibits the Executive Director from disclosing confidential information obtained from a state agency to any person or entity, including the Commission or a member thereof. (NRS 439.914) Section 1 of this bill additionally authorizes the Commission to request not more than two reports each year concerning certain issues relating to health care from a state or local governmental entity. Section 1 requires any governmental entity that receives such a request to submit the report to provide the report to the Executive Director of the Commission and a copy of the report to the Attorney General, to the extent that the entity has resources to compile the report and disclosure of the information requested would not violate the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191.
Existing law provides for the collection and maintenance of data and the issuance of reports concerning: (1) the prices of prescription drugs for the treatment of diabetes and asthma; and (2) cancer. (NRS 439B.600-439B.695, 457.230-457.280) Section 9 of this bill requires, to the extent that federal money is available for this purpose, the Department of Health and Human Services to establish an all-payer claims database of information relating to health insurance claims resulting from medical, dental or pharmacy benefits provided in this State. Sections 3-8.5 of this bill define terms relevant to the all-payer claims database. Section 9: (1) requires the Department to adopt regulations to establish an advisory committee to make recommendations concerning the collection, analysis and reporting of data in the database, secure access to such data and the release of such data; and (2) authorizes the Department to establish an advisory committee to assist the Department in establishing and maintaining the database.
κ2021 Statutes of Nevada, Page 3048 (CHAPTER 480, SB 40)κ
establish an advisory committee to assist the Department in establishing and maintaining the database. Section 10 of this bill requires any public or private insurer that provides health benefits and is regulated under state law, with certain exceptions, to submit data to the database. Section 10 also authorizes certain insurers that are regulated under federal law to submit data to the database. Section 10 requires any entity submitting information to the database to remove information that can be used to directly identify a patient and instead assign a unique identifier that can be used to track data pertaining to a specific patient without identifying the patient.
Sections 11 and 19 of this bill provide for the confidentiality of the data contained in the database. Section 12 of this bill requires a person or entity that wishes to obtain data from the database to submit a request to the Department. Section 13 of this bill: (1) authorizes the Department to access and use information in the database; and (2) requires the Department to release the information in the database to the Attorney General for purposes relating to unfair or deceptive trade practices. Section 13 authorizes the release from the database of: (1) de-aggregated data to certain governmental entities or an entity that submits information to the database pursuant to section 10; or (2) aggregated data to other persons and entities. Section 13 also prohibits a person or entity to whom data is released from using or disclosing the data in a manner not specified in the request made by the person or entity. Section 13 requires any published document that contains or uses data from the database to contain certain information. Section 14 of this bill requires the Department to publish a report at least annually concerning the quality, efficiency and cost of health care in this State using data from the database. Sections 15 and 21 of this bill require the Department to submit certain reports to the Legislature concerning the establishment, operation and funding of the database.
Section 16 of this bill provides an exemption from civil and criminal liability to: (1) a person or entity that provides information to the Department, including data submitted to the database, in good faith; and (2) the Department and its members, officers and employees for failing to provide data from the database or providing incorrect data from the database. Section 17 of this bill requires the Department to adopt regulations necessary for the establishment and maintenance of the database. Section 17 requires such regulations to establish administrative penalties to be imposed against persons and entities that fail to comply with provisions of law or regulations governing the database. Section 17 authorizes the Department to use those administrative penalties to: (1) maintain the all-payer claims database and the program to collect and maintain data concerning prescription drugs; and (2) establish and carry out programs to educate patients concerning ways to reduce the cost of health care and prescription drugs. Section 18 of this bill authorizes the use of administrative penalties collected for failure to comply with requirements to provide certain information relating to prescription drugs for similar purposes. Section 19.5 of this bill also authorizes the Commissioner of Insurance to refuse to continue, suspend, limit or revoke an insurers certificate of authority for failure to comply with provisions of law or regulations governing the database.
Section 20 of this bill requires the Department of Health and Human Services and the Division of Insurance of the Department of Business and Industry to develop and submit to the Patient Protection Commission and the Legislature a report containing an inventory of certain types of data reported to the Department of Health and Human Services or the Division of Insurance of the Department of Business and Industry.
Section 19.7 of this bill makes an appropriation to the Division of Health Care Financing and Policy of the Department of Health and Human Services for the development of the all-payer claims database if the database is established pursuant to section 9.
κ2021 Statutes of Nevada, Page 3049 (CHAPTER 480, SB 40)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. NRS 439.916 is hereby amended to read as follows:
439.916 1. The Commission shall systematically review issues related to the health care needs of residents of this State and the quality, accessibility and affordability of health care, including, without limitation, prescription drugs, in this State. The review must include, without limitation:
(a) Comprehensively examining the system for regulating health care in this State, including, without limitation, the licensing and regulation of health care facilities and providers of health care and the role of professional licensing boards, commissions and other bodies established to regulate or evaluate policies related to health care.
(b) Identifying gaps and duplication in the roles of such boards, commissions and other bodies.
(c) Examining the cost of health care and the primary factors impacting those costs.
(d) Examining disparities in the quality and cost of health care between different groups, including, without limitation, minority groups and other distinct populations in this State.
(e) Reviewing the adequacy and types of providers of health care who participate in networks established by health carriers in this State and the geographic distribution of the providers of health care who participate in each such network.
(f) Reviewing the availability of health benefit plans, as defined in NRS 687B.470, in this State.
(g) Reviewing the effect of any changes to Medicaid, including, without limitation, the expansion of Medicaid pursuant to the Patient Protection and Affordable Care Act, Public Law 111-148, on the cost and availability of health care and health insurance in this State.
(h) Reviewing proposed and enacted legislation, regulations and other changes to state and local policy related to health care in this State.
(i) Researching possible changes to state or local policy in this State that may improve the quality, accessibility or affordability of health care in this State, including, without limitation:
(1) The use of purchasing pools to decrease the cost of health care;
(2) Increasing transparency concerning the cost or provision of health care;
(3) Regulatory measures designed to increase the accessibility and the quality of health care, regardless of geographic location or ability to pay;
(4) Facilitating access to data concerning insurance claims for medical services to assist in the development of public policies;
κ2021 Statutes of Nevada, Page 3050 (CHAPTER 480, SB 40)κ
(5) Resolving problems relating to the billing of patients for medical services;
(6) Leveraging the expenditure of money by the Medicaid program and reimbursement rates under Medicaid to increase the quality and accessibility of health care for low-income persons; and
(7) Increasing access to health care for uninsured populations in this State, including, without limitation, retirees and children.
(j) Monitoring and evaluating proposed and enacted federal legislation and regulations and other proposed and actual changes to federal health care policy to determine the impact of such changes on the cost of health care in this State.
(k) Evaluating the degree to which the role, structure and duties of the Commission facilitate the oversight of the provision of health care in this State by the Commission and allow the Commission to perform activities necessary to promote the health care needs of residents of this State.
(l) Making recommendations to the Governor, the Legislature, the Department of Health and Human Services, local health authorities and any other person or governmental entity to increase the quality, accessibility and affordability of health care in this State, including, without limitation, recommendations concerning the items described in this subsection.
2. The Commission may request that any state or local governmental entity submit not more than two reports each year containing or analyzing information that is not confidential by law concerning the cost of health care, consolidation among entities that provide or pay for health care or other issues related to access to health care. To the extent that a governmental entity from which such a report is requested has the resources to compile the report and the disclosure of the information requested is authorized by the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, the governmental entity shall provide the report to the Executive Director of the Commission and submit a copy of the report to the Attorney General.
3. As used in this section:
(a) Health carrier has the meaning ascribed to it in NRS 687B.625.
(b) Network has the meaning ascribed to it in NRS 687B.640.
Sec. 2. Chapter 439B of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 17, inclusive, of this act.
Sec. 3. As used in sections 3 to 17, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 4 to 8.5, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 4. All-payer claims database means the all-payer claims database established pursuant to section 9 of this act.
Sec. 4.5. Covered entity has the meaning ascribed to it in 45 C.F.R. § 160.103.
κ2021 Statutes of Nevada, Page 3051 (CHAPTER 480, SB 40)κ
Sec. 5. Direct patient identifier means data that directly identifies a patient, including, without limitation, a name, telephone number, social security number, number associated with a medical record, health plan beneficiary number or electronic mail address.
Sec. 6. (Deleted by amendment.)
Sec. 7. Proprietary financial information means data that discloses or allows the determination of:
1. A specific term of a contract, discount or other agreement between any or all of a provider of health care, a health facility, a manufacturer of prescription drugs and an entity described in section 10 of this act; or
2. An internal fee schedule or other unique pricing mechanism used by a provider of health care, a health facility or an entity described in section 10 of this act.
Sec. 8. Provider of health care has the meaning ascribed to it in NRS 629.031.
Sec. 8.5. Unique identifier means an identifier that is guaranteed to be unique for a patient and can be used to track information relating to the patient but is not a direct patient identifier.
Sec. 9. 1. The Department shall, to the extent that federal money is available for this purpose, establish an all-payer claims database of information relating to health insurance claims resulting from medical, dental or pharmacy benefits provided in this State.
2. If the Department establishes an all-payer claims database pursuant to subsection 1, the Department shall:
(a) Establish a secure process for uploading data to the database pursuant to section 10 of this act. When establishing that process, the Department shall consider the time and cost incurred to upload data to the database.
(b) Establish and carry out a process to review the data submitted to the database to:
(1) Ensure the accuracy of the data and the consistency of records; and
(2) Identify and remove duplicate records.
3. If the Department establishes an all-payer claims database pursuant to subsection 1, the Department:
(a) Shall adopt regulations to establish an advisory committee to make recommendations to the Department concerning the collection, analysis and reporting of data in the all-payer claims database, secure access to such data and the release of such data pursuant to sections 3 to 17, inclusive, of this act.
(b) May adopt regulations to establish any other advisory committee if necessary to assist the Department in carrying out the provisions of sections 3 to 17, inclusive, of this act.
4. The membership of any advisory committee established pursuant to subsection 3 must include, without limitation, representatives of providers of health care, health facilities, health authorities, as defined in NRS 439.005, health maintenance organizations, private insurers, nonprofit organizations that represent consumers of health care services and each of the two entities that submit data concerning the largest number of claims to the database.
κ2021 Statutes of Nevada, Page 3052 (CHAPTER 480, SB 40)κ
NRS 439.005, health maintenance organizations, private insurers, nonprofit organizations that represent consumers of health care services and each of the two entities that submit data concerning the largest number of claims to the database.
Sec. 10. If an all-payer claims database is established pursuant to section 9 of this act:
1. Except as otherwise provided in this section, each health carrier, governing body of a local governmental agency that provides health insurance through a self-insurance reserve fund pursuant to NRS 287.010 or entity required by the regulations adopted pursuant to section 17 of this act to submit data to the database and the Public Employees Benefits Program shall submit to the all-payer claims database the data prescribed by the Department pursuant to section 17 of this act in the format prescribed by the Department pursuant to that section. The provisions of this subsection do not apply to:
(a) An issuer of insurance that only provides limited-scope dental or vision benefits or coverage that is only for a specified disease or illness, with respect to such coverage;
(b) An issuer of a Medicare supplemental policy, with respect to such a policy; or
(c) Any health carrier or other entity that provides health coverage to a total of less than 1,000 residents of this State.
2. A provider of health coverage for federal employees, a provider of health coverage that is subject to the Employee Retirement Income Security Act of 1974 or the administrator of a Taft-Hartley trust formed pursuant to 29 U.S.C. § 186(c)(5) are not required but may submit to the all-payer claims database the data prescribed by the Department pursuant to section 17 of this act.
3. Before submitting data to the all-payer claims database pursuant to subsection 1 or 2, an entity described in either of those subsections shall:
(a) Remove all direct patient identifiers from the data; and
(b) Assign a unique identifier to all data concerning a specific patient.
4. As used in this section:
(a) Health carrier means an entity subject to the insurance laws and regulations of this State, or subject to the jurisdiction of the Commissioner of Insurance, that contracts or offers to contract to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services, including, without limitation, a sickness and accident health insurance company, a health maintenance organization, a nonprofit hospital and health service corporation or any other entity providing a plan of health insurance, health benefits or health care services.
(b) Medicare supplemental policy has the meaning ascribed to it in 42 C.F.R. § 403.205 and additionally includes policies offered by public entities that otherwise meet the requirements of that section.
Sec. 11. 1. Except as otherwise provided in subsection 3 and section 13 of this act, data contained in the all-payer claims database, if established pursuant to section 9 of this act, is confidential and is not a public record or subject to subpoena.
κ2021 Statutes of Nevada, Page 3053 (CHAPTER 480, SB 40)κ
2. The Department shall comply with the provisions of the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, and any regulations adopted pursuant thereto as if the Department were a covered entity maintaining protected health information, as defined in 45 C.F.R. § 160.103, with regard to the collection of data pursuant to section 10 of this act, the storage of data in the all-payer claims database and the procedures for releasing data from the all-payer claims database pursuant to section 13 of this act.
3. To the extent authorized by federal law, the Department may use data contained in the all-payer claims database in any proceeding to enforce the provisions of sections 3 to 17, inclusive, of this act.
Sec. 12. To obtain data pursuant to subsection 3 of section 13 of this act from the all-payer claims database, if established pursuant to section 9 of this act, a person or entity must submit a request to the Department. The request must include, without limitation:
1. A description of the data the person or entity wishes to receive;
2. The purpose for requesting the data;
3. A description of the proposed use of the data, including, without limitation:
(a) The methodology of any study that will be conducted and any variables that will be used; and
(b) The names of any persons or entities to whom the applicant plans to disclose data from the all-payer claims database and the reasons for the proposed disclosure;
4. The measures that the requester plans to take to ensure the security of the data and prevent unauthorized use of the data in accordance with section 13 of this act and the regulations adopted pursuant to section 17 of this act; and
5. The method by which the data will be stored, destroyed or returned to the Department at the completion of the activities for which the data will be used.
Sec. 13. If the all-payer claims database is established pursuant to section 9 of this act:
1. The Department or any Division thereof may access and use data from the all-payer claims database for any purpose.
2. The Department shall release data from the all-payer claims database to the Attorney General upon request for the purpose of enforcing the provisions of chapters 598 and 598A of NRS.
3. Except as otherwise provided in subsection 4, the Department may release data from the all-payer claims database that does not contain proprietary financial information:
(a) In de-aggregated form with unique identifiers upon the submission of a request that meets the requirements of section 12 of this act to:
(1) A state or federal governmental entity, including, without limitation, a college or university within the Nevada System of Higher Education; or
(2) Any entity that submits data to the database pursuant to section 10 of this act.
κ2021 Statutes of Nevada, Page 3054 (CHAPTER 480, SB 40)κ
(b) In aggregated form to any person or entity approved by the Department that has submitted a request that meets the requirements of section 12 of this act.
4. The Department shall not release data from the all-payer claims database in any form to any entity that is required or authorized to submit data to the all-payer claims database pursuant to section 10 of this act and fails to submit substantially complete data in accordance with the regulations adopted pursuant to section 17 of this act.
5. A person or entity that receives data from the all-payer claims database pursuant to this section:
(a) Shall comply with any regulations of the Department adopted pursuant to section 17 of this act.
(b) Shall not disclose or use the data in any manner other than as described in the request submitted pursuant to section 12 of this act.
6. The Department shall notify each person or entity to whom data is released pursuant to subsection 3 of the percentage of residents of this State who have health coverage for which data was submitted to the all-payer claims database for the time period to which the released data pertains. Any published document that contains or uses data from the all-payer claims database, including, without limitation, the report published by the Department pursuant to section 14 of this act, must state the percentage of residents of this State who have health coverage for which data was submitted to the database for the time period to which the data contained in or used by the published document pertains.
Sec. 14. 1. The Department shall, at least annually, publish a report concerning the quality, efficiency and cost of health care in this State based on the data in the all-payer claims database, if the all-payer claims database is established pursuant to section 9 of this act. Such a report must be peer-reviewed by entities that submit data pursuant to section 10 of this act before the report is released. The Department shall submit the report to:
(a) The Governor;
(b) The Patient Protection Commission created by NRS 439.908; and
(c) The Director of the Legislative Counsel Bureau for transmittal to the Legislative Committee on Health Care and the next regular session of the Legislature.
2. A report published pursuant to subsection 1 must, where feasible, separate data by demographics, income, health status and the geography of, and the language spoken by, patients to assist in the identification of variations in the efficiency and quality of care.
3. Any comparison of cost among providers of health care or health care systems presented in a report published pursuant to subsection 1 must account for differences in costs attributable to populations served, severity of illness, subsidies for uninsured patients and recipients of Medicaid and Medicare and expenses for educating providers of health care, where applicable.
4. A report published pursuant to subsection 1 must not:
(a) Contain proprietary financial information. Such a report may contain data concerning aggregate costs calculated using proprietary financial information if the manner in which the data is displayed does not disclose proprietary financial information.
κ2021 Statutes of Nevada, Page 3055 (CHAPTER 480, SB 40)κ
financial information if the manner in which the data is displayed does not disclose proprietary financial information.
(b) Include in any comparison of the performance of providers of health care information concerning a provider of health care who is a solo practitioner or practices in a group of fewer than four providers.
5. A report published pursuant to subsection 1 must not contain information identified as relating to a specific provider of health care, health facility or entity that submits data pursuant to section 10 of this act unless the provider of health care, health facility or entity to which the information pertains is allowed to view the report before publication, request corrections of any errors in the information and comment on the reasonableness of the conclusions of the report.
6. On or before October 31 of each year, the Department shall publish on an Internet website maintained by the Department a list of reports the Department intends to publish pursuant to this section during the next calendar year. The Department may solicit public comment concerning that list.
Sec. 15. If the all-payer claims database is established pursuant to section 9 of this act:
1. On or before December 31 of each even-numbered year, the Department shall submit to the Director of the Legislative Counsel Bureau for transmittal to the next regular session of the Legislature a report concerning the cost, performance and effectiveness of the all-payer claims database and any recommendations to improve the all-payer claims database.
2. On or before July 1 and December 31 of each year, the Department shall:
(a) Compile a report of any grants received by the Department to carry out the provisions of sections 3 to 17, inclusive, of this act; and
(b) Submit the report to the Director of the Legislative Counsel Bureau for transmittal to:
(1) On December 31 of an even-numbered year, the next regular session of the Legislature; and
(2) In all other cases, the Interim Finance Committee.
Sec. 16. 1. No person or entity providing information to the Department, including, without limitation, data submitted to the all-payer claims database, if established pursuant to section 9 of this act, in accordance with sections 3 to 17, inclusive, of this act, may be held liable in a civil or criminal action for disclosing confidential information unless the person or entity has done so in bad faith or with malicious purpose.
2. The Department and its members, officers and employees are not liable in any civil or criminal action for any damages resulting from any act, omission, error or technical problem that causes incorrect information from the all-payer claims database to be provided to any person or entity.
Sec. 17. If the all-payer claims database is established pursuant to section 9 of this act:
1. The Department shall adopt regulations that prescribe:
(a) The data that must be submitted to the all-payer claims database pursuant to section 10 of this act, the format for submitting such data and the date by which such data must be submitted.
κ2021 Statutes of Nevada, Page 3056 (CHAPTER 480, SB 40)κ
the date by which such data must be submitted. Those regulations must align with applicable nationally and regionally recognized standards for all-payer claims databases, where applicable and to the extent that those standards do not conflict with each other or the provisions of sections 3 to 17, inclusive, of this act.
(b) The privacy and security of data maintained in the all-payer claims database and the procedure for releasing data from the all-payer claims database pursuant to subsection 3 of section 13 of this act, which must ensure compliance with subsection 2 of section 11 of this act.
(c) The use of data released from the all-payer claims database, including, without limitation, requirements concerning the reporting and publication of information from the database.
(d) Administrative penalties to be assessed against any person or entity who violates any provision of sections 3 to 17, inclusive, of this act or the regulations adopted pursuant thereto. Any penalties for the failure to comply with the requirements of section 10 of this act or the regulations adopted pursuant to this section concerning the submission of data to the all-payer claims database must not exceed $5,000 for each day of such failure.
2. The Department may adopt:
(a) Regulations that require entities that provide health coverage in this State, in addition to the entities required by section 10 of this act but not including entities exempt from reporting pursuant to subsection 1 of that section, to upload data to the all-payer claims database; and
(b) Any other regulations necessary to carry out the provisions of sections 3 to 17, inclusive, of this act.
3. The Department may:
(a) Enter into any contract or agreement necessary to carry out the provisions of sections 3 to 17, inclusive, of this act; and
(b) Accept any gifts, grants and donations for the purpose of carrying out the provisions of sections 3 to 17, inclusive, of this act.
4. Any contract or agreement entered into pursuant to paragraph (a) of subsection 3 must:
(a) Prohibit the contractor from collecting data containing direct patient identifiers or using data for any purpose not specified by the contract; and
(b) Require the contractor to:
(1) Obtain certification by the HITRUST Alliance or its successor organization and maintain such certification for the term of the contract;
(2) Comply with the requirements of subsection 2 of section 11 of this act to the same extent as the Department; and
(3) Comply with any applicable standards prescribed by the National Institute of Standards and Technology of the United States Department of Commerce.
5. Any money collected as administrative penalties under the regulations adopted pursuant to this section must be accounted for separately and used by the Department to:
(a) Carry out the provisions of NRS 439B.600 to 439B.695, inclusive, and sections 3 to 17, inclusive, of this act; and
κ2021 Statutes of Nevada, Page 3057 (CHAPTER 480, SB 40)κ
(b) Establish and carry out programs to educate patients concerning ways to reduce the cost of health care and prescription drugs.
Sec. 18. NRS 439B.695 is hereby amended to read as follows:
439B.695 1. If a pharmacy that is licensed under the provisions of chapter 639 of NRS and is located within the State of Nevada fails to provide to the Department the information required to be provided pursuant to NRS 439B.655 or fails to provide such information on a timely basis, and the failure was not caused by excusable neglect, technical problems or other extenuating circumstances, the Department may impose against the pharmacy an administrative penalty of not more than $500 for each day of such failure.
2. If a manufacturer fails to provide to the Department the information required by NRS 439B.635, 439B.640 or 439B.660, a pharmacy benefit manager fails to provide to the Department the information required by NRS 439B.645, a nonprofit organization fails to post or provide to the Department, as applicable, the information required by NRS 439B.665 or a manufacturer, pharmacy benefit manager or nonprofit organization fails to post or provide, as applicable, such information on a timely basis, and the failure was not caused by excusable neglect, technical problems or other extenuating circumstances, the Department may impose against the manufacturer, pharmacy benefit manager or nonprofit organization, as applicable, an administrative penalty of not more than $5,000 for each day of such failure.
3. If a pharmaceutical sales representative fails to comply with the requirements of NRS 439B.660, the Department may impose against the pharmaceutical sales representative an administrative penalty of not more than $500 for each day of such failure.
4. Any money collected as administrative penalties pursuant to this section must be accounted for separately and used by the Department to [establish] :
(a) Carry out the provisions of NRS 439B.600 to 439B.695, inclusive, and sections 3 to 17, inclusive, of this act; and
(b) Establish and carry out programs to [provide] :
(1) Educate patients concerning ways to reduce the cost of health care and prescription drugs; and
(2) Provide education concerning asthma and diabetes and prevent those diseases.
Sec. 19. NRS 239.010 is hereby amended to read as follows:
239.010 1. Except as otherwise provided in this section and NRS 1.4683, 1.4687, 1A.110, 3.2203, 41.071, 49.095, 49.293, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 119A.280, 119A.653, 119A.677, 119B.370, 119B.382, 120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 127.007, 127.057, 127.130, 127.140, 127.2817, 128.090, 130.312, 130.712, 136.050, 159.044, 159A.044, 172.075, 172.245, 176.01249, 176.015, 176.0625, 176.09129, 176.156, 176A.630, 178.39801, 178.4715, 178.5691, 179.495, 179A.070, 179A.165,
κ2021 Statutes of Nevada, Page 3058 (CHAPTER 480, SB 40)κ
179D.160, 200.3771, 200.3772, 200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3923, 209.3925, 209.419, 209.429, 209.521, 211A.140, 213.010, 213.040, 213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 226.300, 228.270, 228.450, 228.495, 228.570, 231.069, 231.1473, 233.190, 237.300, 239.0105, 239.0113, 239.014, 239B.030, 239B.040, 239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 239C.420, 240.007, 241.020, 241.030, 241.039, 242.105, 244.264, 244.335, 247.540, 247.550, 247.560, 250.087, 250.130, 250.140, 250.150, 268.095, 268.0978, 268.490, 268.910, 269.174, 271A.105, 281.195, 281.805, 281A.350, 281A.680, 281A.685, 281A.750, 281A.755, 281A.780, 284.4068, 286.110, 286.118, 287.0438, 289.025, 289.080, 289.387, 289.830, 293.4855, 293.5002, 293.503, 293.504, 293.558, 293.5757, 293.870, 293.906, 293.908, 293.910, 293B.135, 293D.510, 331.110, 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.1593, 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 353A.049, 353A.085, 353A.100, 353C.240, 360.240, 360.247, 360.255, 360.755, 361.044, 361.2242, 361.610, 365.138, 366.160, 368A.180, 370.257, 370.327, 372A.080, 378.290, 378.300, 379.0075, 379.008, 379.1495, 385A.830, 385B.100, 387.626, 387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 388A.247, 388A.249, 391.033, 391.035, 391.0365, 391.120, 391.925, 392.029, 392.147, 392.264, 392.271, 392.315, 392.317, 392.325, 392.327, 392.335, 392.850, 393.045, 394.167, 394.16975, 394.1698, 394.447, 394.460, 394.465, 396.3295, 396.405, 396.525, 396.535, 396.9685, 398A.115, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 414.280, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 425.400, 427A.1236, 427A.872, 432.028, 432.205, 432B.175, 432B.280, 432B.290, 432B.407, 432B.430, 432B.560, 432B.5902, 432C.140, 432C.150, 433.534, 433A.360, 437.145, 437.207, 439.4941, 439.840, 439.914, 439B.420, 439B.754, 439B.760, 440.170, 441A.195, 441A.220, 441A.230, 442.330, 442.395, 442.735, 442.774, 445A.665, 445B.570, 445B.7773, 447.345, 449.209, 449.245, 449.4315, 449A.112, 450.140, 450B.188, 453.164, 453.720, 453A.610, 453A.700, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 459.846, 463.120, 463.15993, 463.240, 463.3403, 463.3407, 463.790, 467.1005, 480.535, 480.545, 480.935, 480.940, 481.063, 481.091, 481.093, 482.170, 482.5536, 483.340, 483.363, 483.575, 483.659, 483.800, 484A.469, 484E.070, 485.316, 501.344, 503.452, 522.040, 534A.031, 561.285, 571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 599B.090, 603.070, 603A.210, 604A.303, 604A.710, 612.265, 616B.012, 616B.015, 616B.315, 616B.350, 618.341, 618.425, 622.238, 622.310, 623.131, 623A.137, 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 628B.760, 629.047, 629.069, 630.133, 630.2673, 630.30665, 630.336, 630A.555, 631.368, 632.121, 632.125, 632.3415, 632.405, 633.283, 633.301, 633.4715, 633.524, 634.055, 634.214, 634A.185, 635.158, 636.107, 637.085, 637B.288, 638.087, 638.089, 639.2485, 639.570, 640.075, 640A.220, 640B.730, 640C.580, 640C.600, 640C.620, 640C.745, 640C.760, 640D.190, 640E.340, 641.090, 641.221, 641.325, 641A.191, 641A.262, 641A.289, 641B.170, 641B.282, 641B.460, 641C.760, 641C.800, 642.524, 643.189, 644A.870, 645.180, 645.625, 645A.050, 645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 645D.135, 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 648.033,
κ2021 Statutes of Nevada, Page 3059 (CHAPTER 480, SB 40)κ
648.197, 649.065, 649.067, 652.228, 653.900, 654.110, 656.105, 657A.510, 661.115, 665.130, 665.133, 669.275, 669.285, 669A.310, 671.170, 673.450, 673.480, 675.380, 676A.340, 676A.370, 677.243, 678A.470, 678C.710, 678C.800, 679B.122, 679B.124, 679B.152, 679B.159, 679B.190, 679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, 687A.110, 687A.115, 687C.010, 688C.230, 688C.480, 688C.490, 689A.696, 692A.117, 692C.190, 692C.3507, 692C.3536, 692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 696C.120, 703.196, 704B.325, 706.1725, 706A.230, 710.159, 711.600, and section 11 of this act, sections 35, 38 and 41 of chapter 478, Statutes of Nevada 2011 and section 2 of chapter 391, Statutes of Nevada 2013 and unless otherwise declared by law to be confidential, all public books and public records of a governmental entity must be open at all times during office hours to inspection by any person, and may be fully copied or an abstract or memorandum may be prepared from those public books and public records. Any such copies, abstracts or memoranda may be used to supply the general public with copies, abstracts or memoranda of the records or may be used in any other way to the advantage of the governmental entity or of the general public. This section does not supersede or in any manner affect the federal laws governing copyrights or enlarge, diminish or affect in any other manner the rights of a person in any written book or record which is copyrighted pursuant to federal law.
2. A governmental entity may not reject a book or record which is copyrighted solely because it is copyrighted.
3. A governmental entity that has legal custody or control of a public book or record shall not deny a request made pursuant to subsection 1 to inspect or copy or receive a copy of a public book or record on the basis that the requested public book or record contains information that is confidential if the governmental entity can redact, delete, conceal or separate, including, without limitation, electronically, the confidential information from the information included in the public book or record that is not otherwise confidential.
4. If requested, a governmental entity shall provide a copy of a public record in an electronic format by means of an electronic medium. Nothing in this subsection requires a governmental entity to provide a copy of a public record in an electronic format or by means of an electronic medium if:
(a) The public record:
(1) Was not created or prepared in an electronic format; and
(2) Is not available in an electronic format; or
(b) Providing the public record in an electronic format or by means of an electronic medium would:
(1) Give access to proprietary software; or
(2) Require the production of information that is confidential and that cannot be redacted, deleted, concealed or separated from information that is not otherwise confidential.
5. An officer, employee or agent of a governmental entity who has legal custody or control of a public record:
κ2021 Statutes of Nevada, Page 3060 (CHAPTER 480, SB 40)κ
(a) Shall not refuse to provide a copy of that public record in the medium that is requested because the officer, employee or agent has already prepared or would prefer to provide the copy in a different medium.
(b) Except as otherwise provided in NRS 239.030, shall, upon request, prepare the copy of the public record and shall not require the person who has requested the copy to prepare the copy himself or herself.
Sec. 19.5. NRS 680A.200 is hereby amended to read as follows:
680A.200 1. Except as otherwise provided in NRS 616B.472, the Commissioner may refuse to continue or may suspend, limit or revoke an insurers certificate of authority if the Commissioner finds after a hearing thereon, or upon waiver of hearing by the insurer, that the insurer has:
(a) Violated or failed to comply with any lawful order of the Commissioner;
(b) Conducted business in an unsuitable manner;
(c) Willfully violated or willfully failed to comply with any lawful regulation of the Commissioner; or
(d) Violated any provision of this Code other than one for violation of which suspension or revocation is mandatory.
Κ In lieu of such a suspension or revocation, the Commissioner may levy upon the insurer, and the insurer shall pay forthwith, an administrative fine of not more than $2,000 for each act or violation.
2. Except as otherwise provided in chapter 696B of NRS, the Commissioner shall suspend or revoke an insurers certificate of authority on any of the following grounds if the Commissioner finds after a hearing thereon that the insurer:
(a) Is in unsound condition, is being fraudulently conducted, or is in such a condition or is using such methods and practices in the conduct of its business as to render its further transaction of insurance in this State currently or prospectively hazardous or injurious to policyholders or to the public.
(b) With such frequency as to indicate its general business practice in this State:
(1) Has without just cause failed to pay, or delayed payment of, claims arising under its policies, whether the claims are in favor of an insured or in favor of a third person with respect to the liability of an insured to the third person; or
(2) Without just cause compels insureds or claimants to accept less than the amount due them or to employ attorneys or to bring suit against the insurer or such an insured to secure full payment or settlement of such claims.
(c) Refuses to be examined, or its directors, officers, employees or representatives refuse to submit to examination relative to its affairs, or to produce its books, papers, records, contracts, correspondence or other documents for examination by the Commissioner when required, or refuse to perform any legal obligation relative to the examination.
(d) Except as otherwise provided in NRS 681A.110, has reinsured all its risks in their entirety in another insurer.
(e) Has failed to pay any final judgment rendered against it in this State upon any policy, bond, recognizance or undertaking as issued or guaranteed by it, within 30 days after the judgment became final or within 30 days after dismissal of an appeal before final determination, whichever date is the later.
κ2021 Statutes of Nevada, Page 3061 (CHAPTER 480, SB 40)κ
by it, within 30 days after the judgment became final or within 30 days after dismissal of an appeal before final determination, whichever date is the later.
3. In addition to the grounds specified in subsections 1 and 2, the Commissioner may refuse to continue or may suspend, limit or revoke an insurers certificate of authority if the Commissioner finds after a hearing thereon, or upon waiver of hearing by the insurer, that the insurer has failed to comply with any provision of sections 3 to 17, inclusive, of this act, if applicable, or any applicable regulation adopted pursuant thereto.
4. The Commissioner may, without advance notice or a hearing thereon, immediately suspend the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation or other delinquency proceedings have been commenced in any state by the public officer who supervises insurance for that state.
[4.] 5. No proceeding to suspend, limit or revoke a certificate of authority pursuant to this section may be maintained unless it is commenced by the giving of notice to the insurer within 5 years after the occurrence of the charged act or omission. This limitation does not apply if the Commissioner finds fraudulent or willful evasion of taxes.
Sec. 19.7. 1. There is hereby appropriated from the State General Fund to the Division of Health Care Financing and Policy of the Department of Health and Human Services for the development of the all-payer claims database, if the database is established pursuant to section 9 of this act, the following sums:
For the Fiscal Year 2021-2022...................................................... $24,970
For the Fiscal Year 2022-2023.................................................... $300,188
2. Any balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal years by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 16, 2022, and September 15, 2023, respectively, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 16, 2022, and September 15, 2023, respectively.
Sec. 20. On or before July 1, 2022, the Department of Health and Human Services shall, in consultation with the Division of Insurance of the Department of Business and Industry:
1. Develop a report containing an inventory of each category of data reported to the Department of Health and Human Services or the Division of Insurance of the Department of Business and Industry that could be used to analyze trends in the cost of health care, consolidation among entities that provide or pay for health care, disparities in access to health care or health outcomes related to race, ethnicity or social determinants of health or other issues related to access to health care; and
2. Submit the report to the Patient Protection Commission created by NRS 439.908 and the Director of the Legislative Counsel Bureau for transmittal to the Legislative Committee on Health Care.
κ2021 Statutes of Nevada, Page 3062 (CHAPTER 480, SB 40)κ
Sec. 21. 1. On or before December 1, 2021, and December 1, 2022, the Department of Health and Human Services shall, if the all-payer claims database is established pursuant to section 9 of this act:
(a) Develop a report concerning the implementation of sections 3 to 17, inclusive, of this act, including, without limitation, the cost of implementing the all-payer claims database and the technical progress made toward full implementation of the all-payer claims database; and
(b) Submit the report to the Patient Protection Commission created by NRS 439.908 and the Director of the Legislative Counsel Bureau for transmittal to:
(1) In 2021, the Legislative Committee on Health Care and the Interim Finance Committee.
(2) In 2022, the next regular session of the Legislature.
2. As used in this section, all-payer claims database has the meaning ascribed to it in section 4 of this act.
Sec. 21.5. 1. The Department of Health and Human Services shall not release any data pursuant to subsection 3 of section 13 of this act from the all-payer claims database, if the database is established pursuant to section 9 of this act, until 6 months after the approval by the Legislative Commission or the Subcommittee to Review Regulations pursuant to NRS 233.067 of regulations adopted pursuant to section 17 of this act relating to the collection, privacy and security of data.
2. As used in this section, all-payer claims database has the meaning ascribed to it in section 4 of this act.
Sec. 22. The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.
Sec. 23. 1. This section becomes effective upon passage and approval.
2. Sections 1, 18 and 19.7 to 22, inclusive, of this act become effective on July 1, 2021.
3. Sections 2 to 17, inclusive, 19 and 19.5 of this act become effective:
(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
(b) On January 1, 2022, for all other purposes.
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