(REPRINTED WITH ADOPTED AMENDMENTS) SECOND REPRINT
Assembly Bill No. 11-Committee on Health and Human Services
Prefiled on December 31, 1996
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Referred to Committee on Health and Human Services
SUMMARY--Requires certain medical facilities that provide care for elderly persons to file surety bond with aging services division of department of human resources. (BDR 40-493)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to medical facilities; requiring certain facilities that provide care for elderly persons to file with the aging services division of the department of human resources a surety bond to provide indemnification to certain elderly patients; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 Chapter 449 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. As used in this section and sections 3 and 4 of this act, "older patient" means a patient who is 60 years of age or older.
Sec. 3. 1. Except as otherwise provided in section 4 of this act, each facility for intermediate care, facility for skilled nursing, residential facility for groups and agency to provide nursing in the home shall, when applying for a license or renewing a license, file with the administrator of the aging services division of the department of human resources a surety bond:
(a) If the facility or agency employs less than 7 employees, in the amount of $10,000;
(b) If the facility or agency employs at least 7 but not more than 25 employees, in the amount of $50,000; or
(c) If the facility or agency employs more than 25 employees, in the amount of $100,000.
2. A bond filed pursuant to this section must be executed by the facility or agency as principal and by a surety company as surety. The bond must be payable to the aging services division of the department of human resources and must be conditioned to provide indemnification to an older patient who the specialist for the rights of elderly persons determines has suffered property damage as a result of any act or failure to act by the facility or agency to protect the property of the older patient.
3. Except when a surety is released, the surety bond must cover the period of the initial license to operate or the period of the renewal, as appropriate.
4. A surety on any bond filed pursuant to this section may be released after the surety gives 30 days' written notice to the administrator of the aging services division of the department of human resources, but the release does not discharge or otherwise affect any claim filed by an older patient for property damaged as a result of any act or failure to act by the facility or agency to protect the property of the older patient alleged to have occurred while the bond was in effect.
5. A license is suspended by operation of law when the facility or agency is no longer covered by a surety bond as required by this section or by a substitute for the surety bond pursuant to section 4 of this act. The administrator of the aging services division of the department of human resources shall give the facility or agency at least 20 days' written notice before the release of the surety or the substitute for the surety, to the effect that the license will be suspended by operation of law until another surety bond or substitute for the surety bond is filed in the same manner and amount as the bond or substitute being terminated.
Sec. 4. 1. As a substitute for the surety bond required pursuant to section 3 of this act, a facility for intermediate care, a facility for skilled nursing, a residential facility for groups and an agency to provide nursing in the home may deposit with any bank or trust company authorized to do business in this state, upon approval from the administrator of the aging services division of the department of human resources:
(a) An obligation of a bank, savings and loan association, thrift company or credit union licensed to do business in this state;
(b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or
(c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state, or guaranteed by this state, in an aggregate amount, based upon principal amount or market value, whichever is lower.
2. The obligations of a bank, savings and loan association, thrift company or credit union must be held to secure the same obligation as would the surety bond required by section 3 of this act. With the approval of the administrator of the aging services division, the depositor may substitute other suitable obligations for those deposited, which must be assigned to the aging services division of the department of human resources and are negotiable only upon approval by the administrator of the aging services division.
3. Any interest or dividends earned on the deposit accrue to the account of the depositor.
4. The deposit must be an amount at least equal to the surety bond required by section 3 of this act and must state that the amount may not be withdrawn except by direct and sole order of the administrator of the aging services division.
Sec. 5. NRS 449.030 is hereby amended to read as follows:
449.030 1. No person, state or local government or agency thereof may operate or maintain in this state any medical facility or facility for the dependent without first obtaining a license therefor as provided in NRS 449.001 to 449.240, inclusive, [and] sections 2 to 7, inclusive, of [this act.] Assembly Bill No. 155 of this session and sections 2, 3 and 4 of this act.
2. Unless licensed as a freestanding facility for hospice care, a person, state or local government or agency thereof shall not operate a program of hospice care without first obtaining a license for the program from the board.
Sec. 6. Chapter 427A of NRS is hereby amended by adding thereto a new section to read as follows:
1. Within 1 year after an older patient sustains damage to his property as a result of any act or failure to act by a facility for intermediate care, a facility for skilled nursing, a residential facility for groups or an agency to provide nursing in the home in protecting the property, the older patient may file a verified complaint with the division setting forth the details of the damage.
2. Upon receiving a verified complaint pursuant to subsection 1, the administrator shall investigate the complaint and attempt to settle the matter through arbitration, mediation or negotiation.
3. If a settlement is not reached pursuant to subsection 2, the facility, agency or older patient may request a hearing before the specialist for the rights of elderly persons. If requested, the specialist for the rights of elderly persons shall conduct a hearing to determine whether the facility or agency is liable for damages to the patient. If the specialist for the rights of elderly persons determines that the facility or agency is liable for damages to the patient, he shall order the amount of the surety bond pursuant to section 3 of this act or the substitute for the surety bond necessary to pay for the damages pursuant to section 4 of this act to be released to the division. The division shall pay any such amount to the older patient or the estate of the older patient.
4. The division shall create a separate account for money to be collected and distributed pursuant to this section.
5. As used in this section:
(a) "Agency to provide nursing in the home" has the meaning ascribed to it in NRS 449.0015;
(b) "Facility for intermediate care" has the meaning ascribed to it in NRS 449.0038;
(c) "Facility for skilled nursing" has the meaning ascribed to it in NRS 449.0039;
(d) "Older patient" has the meaning ascribed to it in section 2 of this act; and
(e) "Residential facility for groups" has the meaning ascribed to it in NRS 449.017.
Sec. 7. Each facility and agency that is required to file a surety bond pursuant to section 3 of this act shall file such bond or a substitute for the surety bond pursuant to section 4 of this act with the administrator of the aging services division of the department of human resources not later than November 1, 1997.
Sec. 8. Section 5 of this act becomes effective at 12:01 a.m. on October 1, 1997.