Senate Bill No. 105

Senate Bill No. 105-Committee on Commerce and Labor

(On Behalf of the Office of the Attorney General)

February 3, 1997
____________

Referred to Committee on Commerce and Labor

SUMMARY--Makes various changes relating to industrial insurance. (BDR 53-630)

FISCAL NOTE: Effect on Local Government: Yes.

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 industrial insurance; requiring insurers to issue certificates of insurance to employers for whom the insurers provide industrial insurance; requiring employers to post those certificates at their places of business; authorizing the fraud control unit for industrial insurance established within the office of the attorney general to review the index of claims established by the administrator of the division of industrial relations of the department of business and industry; revising the provisions relating to fraudulent practices; providing penalties; 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 616B of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act:
Sec. 2 1. An insurer, other than a self-insured employer or an association of self-insured public or private employers, shall provide to each employer to whom the insurer provides industrial insurance a certificate of insurance which indicates that the employer has obtained a policy of industrial insurance.
2. A certificate of insurance provided by an insurer pursuant to subsection 1 must include, without limitation:
(a) The name of the insurer;
(b) The name of the insured;
(c) The number of the policy; and
(d) The period for which the policy is effective.
Sec. 3 1. Each employer shall ensure that:
(a) A certificate of insurance provided pursuant to section 2 of this act;
(b) A certificate issued by the commissioner pursuant to NRS 616B.312; or
(c) A certificate issued by the commissioner pursuant to NRS 616B.359,
is posted in a conspicuous location at each of the employer's places of business.
2. An employer who violates the provisions of subsection 1 is guilty of a misdemeanor.
Sec. 4 NRS 616B.018 is hereby amended to read as follows:
616B.018 1. The administrator shall establish a method of indexing claims for compensation that will make information concerning the claimants of [one] an insurer available to other insurers [.] and the fraud control unit for industrial insurance established pursuant to NRS 228.420.
2. Every [self-insured employer, association of self-insured public or private employers and the system] insurer shall provide information as required by the administrator for establishing and maintaining the index of claims.
3. If an employee files a claim with an insurer, the insurer is entitled to receive from the administrator a list of the prior claims of the employee. If the insurer desires to inspect the files related to the prior claims, he must obtain the written consent of the employee.
4. Any information obtained from the index of claims must be admitted into evidence in any hearing before an appeals officer, a hearing officer or the administrator.
5. The division may assess and collect a reasonable fee for its services provided pursuant to this section. The fee must be payable monthly or at such other intervals as determined by the administrator.
Sec. 5 NRS 616B.236 is hereby amended to read as follows:
616B.236 [1.] Except as otherwise provided in [subsection 2,] NRS 616D.200, when any premium of an employer insured by the system as provided in chapters 616A to 616D, inclusive, of NRS remains unpaid on the date on which it becomes due, as prescribed by NRS 616B.224, it bears interest at the rate of 1 percent for each month or portion of a month thereafter until payment of the premium, plus accrued interest, is received by the manager.
[2. The amount of a determination of a deficiency made pursuant to NRS 616D.200 bears interest at the rate of 1 percent for each month or portion of a month from the date on which the determination becomes final until payment of the amount, plus accrued interest, is received by the manager.]
Sec. 6 NRS 616B.312 is hereby amended to read as follows:
616B.312 1. Upon determining that an employer is qualified as a self-insured employer, the commissioner shall issue a certificate to that effect to the employer and the administrator. No certificate may be issued to any employer who, within the 2 years immediately preceding his application, has had his certification as a self-insured employer involuntarily withdrawn by the commissioner.
2. A certificate issued pursuant to this section must include, without limitation:
(a) The name of the self-insured employer;
(b) An identification number assigned to the self-insured employer by the commissioner; and
(c) The date on which the certificate was issued.
3. Except as otherwise provided in NRS 616B.315 and 616B.318, certificates issued pursuant to this section remain in effect until withdrawn by the commissioner or canceled by the employer. Coverage for employers qualifying under NRS 616B.615 becomes effective on the date of certification or the date specified in the certificate.
Sec. 7 NRS 616B.359 is hereby amended to read as follows:
616B.359 1. The commissioner shall grant or deny an application for certification as an association of self-insured public or private employers within 60 days after receiving the application. If the application is materially incomplete or does not comply with the applicable provisions of the law, the commissioner shall notify the applicant of the additional information or changes required. Under such circumstances, if the commissioner is unable to act upon the application within this 60-day period, he may extend the period for granting or denying the application, but for not longer than an additional 90 days.
2. Upon determining that an association is qualified as an association of self-insured public or private employers, the commissioner shall issue a certificate to that effect to the association and the administrator. No certificate may be issued to an association that, within the 2 years immediately preceding its application, has had its certification as an association of self-insured public or private employers involuntarily withdrawn by the commissioner.
3. A certificate issued pursuant to this section must include, without limitation:
(a) The name of the association;
(b) The name of each employer who is a member of the association;
(c) An identification number assigned to the association by the commissioner; and
(d) The date on which the certificate was issued.
4. A certificate issued pursuant to this section remains in effect until withdrawn by the commissioner or canceled at the request of the association. Coverage for an association granted a certificate becomes effective on the date of certification or the date specified in the certificate.
[4.] 5. The commissioner shall not grant a request to cancel a certificate unless the association has insured or reinsured all incurred obligations with an insurer authorized to do business in this state pursuant to an agreement filed with and approved by the commissioner. The agreement must include coverage for actual claims and claims filed with the association but not reported, and the expenses associated with those claims.
Sec. 8 Chapter 616D of NRS is hereby amended by adding thereto the provisions set forth as sections 9 and 10 of this act.
Sec. 9 1. An insurer, organization for managed care, health care provider, third-party administrator or employer who, through fraud, coercion, duress or undue influence, induces a claimant to fail to report an accidental injury or occupational disease, is guilty of:
(a) If the violation did not involve the use of physical force or the immediate threat of physical force, a misdemeanor.
(b) If the violation involved the use of physical force or the immediate threat of physical force, a category D felony and shall be punished as provided in NRS 193.130.
2. Any employer violating any provision of this section must be prosecuted by the attorney general upon complaint of any employee who, as determined by the attorney general, submits proper evidence of a violation.
Sec. 10 1. An insurer, organization for managed care, health care provider, employer, third-party administrator or public officer who believes, or has reason to believe, that:
(a) A fraudulent claim for benefits under a policy of insurance has been made, or is about to be made;
(b) An employer has made a false statement or representation concerning the amount of payroll upon which a premium is based;
(c) A provider of health care has submitted an invoice for payment for accident benefits that contains information which is false; or
(d) A person has committed any other fraudulent practice under this chapter or chapter 616A, 616B, 616C or 617 of NRS,
shall report that belief to the fraud control unit for industrial insurance established pursuant to NRS 228.420 on a form prescribed by the unit.
2. A person who violates the provisions of subsection 1 is guilty of a misdemeanor.
Sec. 11 NRS 616D.020 is hereby amended to read as follows:
616D.020 No person is subject to any criminal penalty or civil liability for libel, slander or any similar cause of action in tort if he, without malice, discloses information relating to a violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310 or 616D.350 to 616D.440, inclusive, section 9 or 10 of this act, or any fraud in the administration of this chapter or chapter 616A, 616B, 616C or 617 of NRS or in the provision of benefits for industrial insurance.
Sec. 12 NRS 616D.030 is hereby amended to read as follows:
616D.030 Unless an insurer or a third-party administrator is subject to a criminal penalty for a violation of a provision of this chapter or chapter 616A, 616B, 616C or 617 of NRS:
1. No cause of action may be brought or maintained against [an insurer or a] the insurer or third-party administrator [who violates any provision of this chapter or chapter 616A, 616B, 616C or 617 of NRS.] for that violation.
2. The administrative fines provided for in NRS 616B.318 and 616D.120 are the exclusive remedies for [any violation of this chapter or chapter 616A, 616B, 616C or 617 of NRS committed by an insurer or a third-party administrator.] that violation.
Sec. 13 NRS 616D.110 is hereby amended to read as follows:
616D.110 1. In addition to any other remedy provided for by law, if any employer within the provisions of NRS 616B.633 fails to provide and secure compensation, or fails to maintain such compensation, under the terms of chapters 616A to 616D, inclusive, of NRS, the administrator may, in order to protect the employees of the employer from the effect of not having industrial insurance coverage and upon compliance with the requirements of subsection [2,] 3, order the immediate cessation of all business operations at the place of employment or jobsite until such time as the employer performs all acts and duties enjoined upon him by chapters 616A to 616D, inclusive, of NRS as determined necessary by the administrator [in order] to provide, secure and maintain compensation under those chapters.
2. [The order] If the administrator determines that a criminal complaint or indictment has been filed against an employer by the fraud control unit for industrial insurance established pursuant to NRS 228.420, the administrator shall order the immediate cessation of all business operations at the place of employment or jobsite until such time as the employer performs all acts and duties enjoined upon him by chapters 616A to 616D, inclusive, of NRS as determined necessary by the administrator to provide, secure and maintain compensation pursuant to those chapters.
3. An order issued pursuant to subsection 1 or 2 must:
(a) Include a reference to the particular sections of the statutes or regulations alleged to have been violated, and a short, plain statement of the facts alleged to constitute the violation.
(b) Provide an opportunity for hearing to the employer on a date fixed in the order which must not be less than 5 nor more than 15 days after the date of the order, unless upon demand of the employer the date is advanced to the next business day after the demand is made to the administrator.
An order for summary suspension issued pursuant to this subsection must be endorsed with the date and hour of issuance and entered of record in the office of the administrator.
[3.] 4. Immediately upon receiving an order to cease business operations under subsection 1 [,] or 2, an employer shall order all employees or other persons to leave the place of employment or jobsite and shall cease all business operations [thereat.
4.] at that place.
5. Upon request by the administrator, any law enforcement agency in this state shall render any assistance necessary to carry out the requirement of subsection [3,] 4, including , but not limited to , preventing any employee or other person from remaining at the place of employment or jobsite.
Sec. 14 NRS 616D.120 is hereby amended to read as follows:
616D.120 1. Except as otherwise provided in this section, if the administrator determines that an insurer, organization for managed care, health care provider, third-party administrator or employer has:
(a) Through fraud, coercion, duress or undue influence:
(1) Induced a claimant to fail to report an accidental injury or occupational disease;
(2) Persuaded a claimant to settle for an amount which is less than reasonable;
(3) Persuaded a claimant to settle for an amount which is less than reasonable while a hearing or an appeal is pending; or
(4) Persuaded a claimant to accept less than the compensation found to be due him by a hearing officer, appeals officer, court of competent jurisdiction, written settlement agreement, written stipulation or the division when carrying out its duties pursuant to chapters 616A to 617, inclusive, of NRS;
(b) Refused to pay or unreasonably delayed payment to a claimant of compensation found to be due him by a hearing officer, appeals officer, court of competent jurisdiction, written settlement agreement, written stipulation or the division when carrying out its duties pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS, if the refusal or delay occurs:
(1) Later than 10 days after the date of the settlement agreement or stipulation;
(2) Later than 30 days after the date of the decision of a court, hearing officer, appeals officer or division, unless a stay has been granted; or
(3) Later than 10 days after a stay of the decision of a court, hearing officer, appeals officer or division has been lifted;
(c) Refused to process a claim for compensation pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS;
(d) Made it necessary for a claimant to initiate proceedings pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS for compensation found to be due him by a hearing officer, appeals officer, court of competent jurisdiction, written settlement agreement, written stipulation or the division when carrying out its duties pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS;
(e) Failed to comply with the division's regulations covering the payment of an assessment relating to the funding of costs of administration of chapters 616A to 617, inclusive, of NRS; [or]
(f) Failed to provide or unreasonably delayed payment to an injured employee or reimbursement to an insurer pursuant to NRS 616C.165; or
(g) Intentionally failed to comply with any provision of, or regulation adopted pursuant to, this chapter or chapter 616A, 616B, 616C or 617 of NRS,
the administrator shall impose an administrative fine of $1,000 for each initial violation, or a fine of $10,000 for a second or subsequent violation.
2. Except as otherwise provided in chapters 616A to 616D, inclusive, or chapter 617 of NRS, if the administrator determines that an insurer, organization for managed care, health care provider, third-party administrator or employer has failed to comply with any provision of this chapter or chapter 616A, 616B, 616C or 617 of NRS, or any regulation adopted pursuant thereto, the administrator may take any of the following actions:
(a) Issue a notice of correction for:
(1) A minor violation, as defined by regulations adopted by the division; or
(2) A violation involving the payment of compensation in an amount which is greater than that required by any provision of this chapter or chapter 616A, 616B, 616C or 617 of NRS, or any regulation adopted pursuant thereto.
The notice of correction must set forth with particularity the violation committed and the manner in which the violation may be corrected. Nothing in this section authorizes the administrator to modify or negate in any manner a determination or any portion of a determination made by a hearing officer, appeals officer or court of competent jurisdiction or a provision contained in a written settlement agreement or written stipulation.
(b) Impose an administrative fine for:
(1) A second or subsequent violation for which a notice of correction has been issued pursuant to paragraph (a); or
(2) Any other violation of this chapter or chapter 616A, 616B, 616C or 617 of NRS, or any regulation adopted pursuant thereto, for which a notice of correction may not be issued pursuant to paragraph (a).
The fine imposed may not be greater than $250 for an initial violation, or more than $1,000 for any second or subsequent violation.
(c) Order a plan of corrective action to be submitted to the administrator within 30 days after the date of the order.
3. If the administrator determines that a violation of any of the provisions of paragraphs (a) to (d), inclusive, of subsection 1 has occurred, the administrator shall order the insurer, organization for managed care, health care provider, third-party administrator or employer to pay to the claimant a benefit penalty in an amount equal to 50 percent of the compensation due or $10,000, whichever is less. In no event may a benefit penalty be less than $500. The benefit penalty is for the benefit of the claimant and must be paid directly to him within 10 days after the date of the administrator's determination. Proof of the payment of the benefit penalty must be submitted to the administrator within 10 days after the date of his determination unless an appeal is filed pursuant to NRS 616D.140. Any compensation to which the claimant may otherwise be entitled pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS must not be reduced by the amount of any benefit penalty received pursuant to this subsection.
4. In addition to any fine or benefit penalty imposed pursuant to this section, the administrator may assess against an insurer who violates any regulation concerning the reporting of claims expenditures used to calculate an assessment an administrative penalty of up to twice the amount of any underpaid assessment.
5. If the administrator determines that [a] :
(a) A person has violated any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310 or 616D.350 to 616D.440, inclusive, or section 9 or 10 of this act; and
(b) The fraud control unit for industrial insurance established pursuant to NRS 228.420 will not prosecute the person for that violation,
the administrator [shall] may impose an administrative fine of not more than $10,000.
6. Two or more fines of $1,000 or more imposed in 1 year for acts enumerated in subsection 1 must be considered by the commissioner as evidence for the withdrawal of:
(a) A certificate to act as a self-insured employer.
(b) A certificate to act as an association of self-insured public or private employers.
(c) A certificate of registration as a third-party administrator.
7. The commissioner may, without complying with the provisions of NRS 616B.327 or 616B.431, withdraw the certification of a self-insured employer, association of self-insured public or private employers or third-party administrator if, after a hearing, it is shown that the self-insured employer, association of self-insured public or private employers or third-party administrator violated any provision of subsection 1.
Sec. 15 NRS 616D.200 is hereby amended to read as follows:
616D.200 1. If the manager finds that an employer within the provisions of NRS 616B.633 [:
(a) Has] has failed to provide and secure compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS [; or
(b) Has] or that the employer has provided and secured [such] that compensation but has failed to maintain [that compensation,] it, he shall make a determination thereon and may charge the employer an amount [of not more than three times the] equal to the sum of:
(a) The premiums that would otherwise have been owed to the system pursuant to the terms of chapters 616A to 616D, inclusive, of NRS for the period that the employer was doing business in this state without providing, securing or maintaining that compensation, but not to exceed 6 years [.] ;
(b) The actual costs incurred by the system in reinstating the policy, but not to exceed 10 percent of the premiums owed by the employer; and
(c) Interest at a rate determined pursuant to NRS 17.130 computed from the time that the premiums should have been paid.
2. The manager shall mail a copy of his determination to the employer. An employer who is aggrieved by the manager's determination may appeal from the determination pursuant to subsection 2 of NRS 616D.220.
3. Any employer within the provisions of NRS 616B.633 who fails to provide, secure or maintain compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS, is:
(a) For the first offense, guilty of a [gross] misdemeanor.
(b) For a second or subsequent offense committed within 7 years after the previous offense, guilty of a felony, punishable by imprisonment in the state prison for a definite term of not less than 1 year nor more than 5 years or by a fine of not more than $10,000, or by both fine and imprisonment. A person who is sentenced to imprisonment becomes eligible for parole when he has served one-third of the definite term for which he has been sentenced, less any credit earned to reduce his sentence pursuant to chapter 209 of NRS.
Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.
Sec. 16 NRS 616D.390 is hereby amended to read as follows:
616D.390 1. Except as otherwise provided in subsection 2, a person shall not:
(a) While acting on behalf of a provider of health care, purchase or lease goods, services, materials or supplies for which payment may be made, in whole or in part, pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS, and solicit or accept anything of additional value in return for or in connection with the purchase or lease;
(b) Sell or lease to or for the use of a provider of health care goods, services, materials or supplies for which payment may be made, in whole or in part, pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS, and offer, transfer or pay anything of additional value in connection with or in return for the sale or lease; or
(c) Refer a person to a provider of health care for accident benefits for which payment may be made, in whole or in part, pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS, and solicit or accept anything of value in connection with the referral.
2. Paragraphs (a) and (b) of subsection 1 do not apply if the additional value transferred is:
(a) A refund or discount made in the ordinary course of business;
(b) Reflected by the books and records of the person transferring or receiving it; and
(c) Reflected in the charges submitted to the insurer.
3. A provider of health care shall not offer, transfer or pay anything of value in connection with or in return for the referral to the provider of a patient for whom payment of accident benefits may be made, in whole or in part, pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS.
4. A person shall not, while acting on behalf of a provider of health care pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS, charge, solicit, accept or receive anything of value in addition to the amount legally payable pursuant to any of those chapters in connection with the provision of the accident benefits.
[4.] 5. A person who violates any provision of this section, if the value of the thing or any combination of things unlawfully solicited, accepted, offered, transferred, paid, charged or received:
(a) Is less than $250, is guilty of a gross misdemeanor.
(b) Is $250 or more, is guilty of a category D felony and shall be punished as provided in NRS 193.130.
Sec. 17 NRS 616D.410 is hereby amended to read as follows:
616D.410 Any person who conspires with any other person to violate [any] :
1. Any of the provisions of NRS 616D.200, paragraph (a) of subsection 1 of section 9 of this act or section 10 of this act is guilty of a misdemeanor.
2. Any of the provisions of NRS [616D.200,] 616D.220, 616D.240, 616D.300, 616D.310 or 616D.350 to 616D.440, inclusive, or paragraph (b) of subsection 1 of section 9 of this act is guilty of a gross misdemeanor.
Sec. 18 NRS 616D.600 is hereby amended to read as follows:
616D.600 1. The attorney general may prosecute all criminal actions for the violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310 or 616D.350 to 616D.440, inclusive [.] , or section 9 or 10 of this act. The commencement of a civil action by the attorney general pursuant to NRS 616D.230 or 616D.430 or for the recovery of any civil penalties, fines, fees or assessments imposed pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS does not preclude the prosecution of a criminal action by the attorney general pursuant to this section.
2. Upon request, any person shall furnish to the attorney general information which would assist in the prosecution of any person alleged to have violated any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310 or 616D.350 to 616D.440, inclusive [.] , or section 9 or 10 of this act. Any person who fails to furnish such information upon request is guilty of a misdemeanor.
Sec. 19 NRS 616D.610 is hereby amended to read as follows:
616D.610 1. The books, records and payrolls of an employer pertinent to the investigation of a violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310 or 616D.350 to 616D.440, inclusive, section 9 or 10 of this act, or any fraud in the administration of this chapter or chapter 616A, 616B, 616C or 617 of NRS or in the provision of benefits for industrial insurance, must always be open to inspection by an investigator for the attorney general for the purpose of ascertaining the correctness of such information and as may be necessary for the attorney general to carry out his duties pursuant to NRS 228.420. If the books, records or payrolls are located outside this state, the employer shall make any records requested pursuant to this section available in this state for inspection within 10 working days after the request.
2. If an employer refuses to produce any book, record, payroll report or other document in conjunction with an investigation conducted by the fraud control unit for industrial insurance, the attorney general may issue a subpoena to require the production of that document.
3. If an employer refuses to produce any document as required by the subpoena, the attorney general may report to the district court by petition, setting forth that:
(a) Due notice has been given of the time and place of the production of the document;
(b) The employer has been subpoenaed by the attorney general pursuant to this section; and
(c) The employer has failed or refused to produce the document required by the subpoena,
and asking for an order of the court compelling the employer to produce the document.
4. Upon such petition, the court shall enter an order directing the employer to appear before the court at a time and place to be fixed by the court in its order, the time to be not more than 10 days after the date of the order, and to show cause why he has not produced the document. A certified copy of the order must be served upon the employer.
5. If it appears to the court that the subpoena was regularly issued by the attorney general, the court shall enter an order that the employer produce the required document at the time and place fixed in the order. Failure to obey the order constitutes contempt of court.
Sec. 20 NRS 616D.620 is hereby amended to read as follows:
616D.620 1. If a person is convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310 or 616D.350 to 616D.440, inclusive, or section 9 or 10 of this act, he:
(a) Forfeits all rights to compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS after conviction for the offense; and
(b) Is liable for:
(1) The reasonable costs incurred by an insurer and the office of the attorney general to investigate and act upon the violation;
(2) All costs incurred for the prosecution of the person by the court in which the conviction was obtained; and
(3) The payments or benefits fraudulently obtained under chapters 616A to 616D, inclusive, or chapter 617 of NRS.
2. A judgment of conviction entered against the person must contain a provision which requires the person convicted to pay the costs of investigation and prosecution and the payments or benefits specified in subsection 1.
3. Any money received by the attorney general pursuant to subparagraph (1) of paragraph (b) of subsection 1 must be used to pay the salaries and other expenses of the fraud control unit for industrial insurance established pursuant to NRS 228.420. Any money remaining at the end of any fiscal year does not revert to the state general fund.
Sec. 21 NRS 228.420 is hereby amended to read as follows:
228.420 1. The attorney general has primary jurisdiction to investigate and prosecute any alleged criminal violations of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, sections 9 and 10 of this act, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of benefits for industrial insurance.
2. For this purpose, the attorney general shall establish within his office a fraud control unit for industrial insurance. The unit must consist of such persons as are necessary to carry out the duties set forth in this section, including, without limitation, an attorney, an auditor and an investigator.
3. The attorney general, acting through the unit established pursuant to subsection 2:
(a) Is the single state agency responsible for the investigation and prosecution of any alleged criminal violations of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, sections 9 and 10 of this act, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of benefits for industrial insurance;
(b) Shall cooperate with the state industrial insurance system, the division of industrial relations of the department of business and industry, self-insured employers, associations of self-insured public or private employers and other state and federal investigators and prosecutors in coordinating state and federal investigations and prosecutions involving violations of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, sections 9 and 10 of this act, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of benefits for industrial insurance;
(c) Shall protect the privacy of persons who are eligible to receive benefits pursuant to the provisions of chapter 616A, 616B, 616C, 616D or 617 of NRS and establish procedures to prevent the misuse of information obtained in carrying out this section; and
(d) May, upon request, inspect the records of any self-insured employer, association of self-insured public or private employers, the state industrial insurance system, the division of industrial relations of the department of business and industry and the state contractors' board to investigate any alleged violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, section 9 or 10 of this act, or any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of benefits for industrial insurance.
4. When acting pursuant to NRS 228.175, 228.410 or this section, the attorney general may commence his investigation and file a criminal action without leave of court, and he has exclusive charge of the conduct of the prosecution.
5. The attorney general shall report the name of any person who has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, or section 9 or 10 of this act, to the occupational board that issued the person's license or certificate to provide medical care, remedial care or other services in this state.
6. The attorney general shall establish a toll-free telephone number for persons to report information regarding alleged violations of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, sections 9 and 10 of this act, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of benefits for industrial insurance.
7. As used in this section:
(a) "Association of self-insured private employers" has the meaning ascribed to it in NRS 616A.050.
(b) "Association of self-insured public employers" has the meaning ascribed to it in NRS 616A.055.
(c) "Self-insured employer" has the meaning ascribed to it in NRS 616A.305.
Sec. 22 NRS 629.061 is hereby amended to read as follows:
629.061 1. Each provider of health care shall make the health care records of a patient available for physical inspection by:
(a) The patient or a representative with written authorization from the patient;
(b) An investigator for the attorney general or a grand jury investigating an alleged violation of NRS 422.540 to 422.570, inclusive;
(c) An investigator for the attorney general investigating an alleged violation of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive, section 9 or 10 of this act, or any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of benefits for industrial insurance; or
(d) Any authorized representative or investigator of a state licensing board during the course of any investigation authorized by law.
The records must be made available at a place within the depository convenient for physical inspection, and inspection must be permitted at all reasonable office hours and for a reasonable length of time. If the records are located outside this state, the provider shall make any records requested pursuant to this section available in this state for inspection within 10 working days after the request.
2. The provider of health care shall also furnish a copy of the records to each person described in subsection 1 who requests it and pays the actual cost of postage, if any, the costs of making the copy, not to exceed 60 cents per page for photocopies and a reasonable cost for copies of X-ray photographs and other health [and] care records produced by similar processes. No administrative fee or additional service fee of any kind may be charged for furnishing such a copy.
3. Each person who owns or operates an ambulance in this state shall make his records regarding a sick or injured patient available for physical inspection by:
(a) The patient or a representative with written authorization from the patient; or
(b) Any authorized representative or investigator of a state licensing board during the course of any investigation authorized by law.
The records must be made available at a place within the depository convenient for physical inspection, and inspection must be permitted at all reasonable office hours and for a reasonable length of time. The person who owns or operates an ambulance shall also furnish a copy of the records to each person described in this subsection who requests it and pays the actual cost of postage, if any, and the costs of making the copy, not to exceed 60 cents per page for photocopies. No administrative fee or additional service fee of any kind may be charged for furnishing a copy of the records.
4. Records made available to a representative or investigator must not be used at any public hearing unless:
(a) The patient named in the records has consented in writing to their use; or
(b) Appropriate procedures are utilized to protect the identity of the patient from public disclosure.
5. Subsection 4 does not prohibit:
(a) A state licensing board from providing to a provider of health care or owner or operator of an ambulance against whom a complaint or written allegation has been filed, or to his attorney, information on the identity of a patient whose records may be used in a public hearing relating to the complaint or allegation, but the provider of health care or owner or operator of an ambulance and his attorney shall keep the information confidential.
(b) The attorney general from using health care records in the course of a civil or criminal action against the patient or provider of health care.
6. A provider of health care or owner or operator of an ambulance, his agents and employees are immune from any civil action for any disclosures made in accordance with the provisions of this section or any consequential damages.
Sec. 23 NRS 630.301 is hereby amended to read as follows:
630.301 The following acts, among others, constitute grounds for initiating disciplinary action or denying licensure:
1. Conviction of a felony, any offense involving moral turpitude or any offense relating to the practice of medicine or the ability to practice medicine. A plea of nolo contendere is a conviction for the purposes of this subsection.
2. Conviction of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, or 616D.350 to 616D.440, inclusive [.] , or section 9 or 10 of this act.
3. The suspension, modification or limitation of the license to practice any type of medicine by any other jurisdiction or the surrender of the license or discontinuing the practice of medicine while under investigation by any licensing authority, a medical facility, a branch of the armed services of the United States, an insurance company, an agency of the Federal Government or an employer.
4. Gross or repeated malpractice, which may be evidenced by claims of malpractice settled against a practitioner.
Sec. 24 NRS 630A.340 is hereby amended to read as follows:
630A.340 The following acts, among others, constitute grounds for initiating disciplinary action or denying the issuance of a license:
1. Unprofessional conduct.
2. Conviction of:
(a) A violation of any federal or state law regulating the possession, distribution or use of any controlled substance or any dangerous drug as defined in chapter 454 of NRS;
(b) A felony;
(c) A violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, or 616D.350 to 616D.440, inclusive [;] , or section 9 or 10 of this act;
(d) Any offense involving moral turpitude; or
(e) Any offense relating to the practice of homeopathic medicine or the ability to practice homeopathic medicine.
A plea of nolo contendere to any offense listed in paragraph (a), (b), (c), (d) or (e) shall be deemed a conviction.
3. The suspension, modification or limitation of a license to practice any type of medicine by any other jurisdiction.
4. The surrender of a license to practice any type of medicine or the discontinuance of the practice of medicine while under investigation by any licensing authority, medical facility, facility for the dependent, branch of the Armed Forces of the United States, insurance company, agency of the Federal Government or employer.
5. Gross or repeated malpractice, which may be evidenced by claims of malpractice settled against a practitioner.
6. Professional incompetence.
Sec. 25 NRS 631.3475 is hereby amended to read as follows:
631.3475 The following acts, among others, constitute unprofessional conduct:
1. Malpractice;
2. Professional incompetence;
3. Suspension or revocation of his license to practice dentistry, the imposition of a fine or other disciplinary action by any agency of another state authorized to regulate the practice of dentistry in that state;
4. More than one act by the dentist or dental hygienist constituting substandard care in the practice of dentistry or dental hygiene;
5. Administering, dispensing or prescribing any controlled substance or any dangerous drug as defined in chapter 454 of NRS, if it is not required to treat the dentist's patient;
6. Chronic or persistent inebriety or addiction to a controlled substance, to such an extent as to render him unsafe or unreliable as a practitioner, or such gross immorality as tends to bring reproach upon the dental profession;
7. Conviction of a felony or misdemeanor involving moral turpitude or which relates to the practice of dentistry in this state, or conviction of any criminal violation of this chapter; or
8. Conviction of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [.] , or section 9 or 10 of this act.
Sec. 26 NRS 632.320 is hereby amended to read as follows:
632.320 The board may deny, revoke or suspend any license or certificate applied for or issued pursuant to this chapter, or take other disciplinary action against a licensee or holder of a certificate, upon determining that he:
1. Is guilty of fraud or deceit in procuring or attempting to procure a license or certificate pursuant to this chapter.
2. Is guilty of a felony or any offense:
(a) Involving moral turpitude; or
(b) Related to the qualifications, functions or duties of a licensee or holder of a certificate,
in which case the record of conviction is conclusive evidence thereof.
3. Has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [.] , or section 9 or 10 of this act.
4. Is unfit or incompetent by reason of gross negligence or recklessness in carrying out usual nursing functions.
5. Uses any controlled substance, dangerous drug as defined in chapter 454 of NRS, or intoxicating liquor to an extent or in a manner which is dangerous or injurious to any other person or which impairs his ability to conduct the practice authorized by his license or certificate.
6. Is mentally incompetent.
7. Is guilty of unprofessional conduct, which includes, but is not limited to, the following:
(a) Conviction of practicing medicine without a license in violation of chapter 630 of NRS, in which case the record of conviction is conclusive evidence thereof.
(b) Impersonating any applicant or acting as proxy for an applicant in any examination required pursuant to this chapter for the issuance of a license or certificate.
(c) Impersonating another licensed practitioner or holder of a certificate.
(d) Permitting or allowing another person to use his license or certificate to practice as a licensed practical nurse, registered nurse or nursing assistant.
(e) Repeated malpractice, which may be evidenced by claims of malpractice settled against him.
(f) Physical, verbal or psychological abuse of a patient.
(g) Conviction for the use or unlawful possession of a controlled substance or dangerous drug as defined in chapter 454 of NRS.
8. Has willfully or repeatedly violated the provisions of this chapter. The voluntary surrender of a license or certificate issued pursuant to this chapter is prima facie evidence that the licensee or certificate holder has committed or expects to commit a violation of this chapter.
9. Is guilty of aiding or abetting any person in a violation of this chapter.
10. Has falsified an entry on a patient's medical chart concerning a controlled substance.
11. Has falsified information which was given to a physician, pharmacist, podiatric physician or dentist to obtain a controlled substance.
12. Has been disciplined in another state in connection with a license to practice nursing or a certificate to practice as a nursing assistant or has committed an act in another state which would constitute a violation of this chapter.
13. Has engaged in conduct likely to deceive, defraud or endanger a patient or the general public.
14. Has willfully failed to comply with a regulation, subpoena or order of the board.
For the purposes of this section, a plea or verdict of guilty or guilty but mentally ill or a plea of nolo contendere constitutes a conviction of an offense. The board may take disciplinary action pending the appeal of a conviction and regardless of any other order entered pursuant to NRS 176.225 dismissing an indictment or information.
Sec. 27 NRS 633.511 is hereby amended to read as follows:
633.511 The grounds for initiating disciplinary action pursuant to this chapter are:
1. Unprofessional conduct.
2. Conviction of:
(a) A violation of any federal or state law regulating the possession, distribution or use of any controlled substance or any dangerous drug as defined in chapter 454 of NRS;
(b) A felony;
(c) A violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [;] , or section 9 or 10 of this act; or
(d) Any offense involving moral turpitude.
3. The suspension of the license to practice osteopathic medicine by any other jurisdiction.
4. Gross or repeated malpractice, which may be evidenced by claims of malpractice settled against a practitioner.
5. Professional incompetence.
Sec. 28 NRS 634.140 is hereby amended to read as follows:
634.140 The grounds for initiating disciplinary action pursuant to this chapter are:
1. Unprofessional conduct.
2. Conviction of:
(a) A violation of any federal or state law regulating the possession, distribution or use of any controlled substance or any dangerous drug as defined in chapter 454 of NRS;
(b) A felony;
(c) A violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [;] , or section 9 or 10 of this act; or
(d) Any offense involving moral turpitude.
3. Suspension or revocation of the license to practice chiropractic by any other jurisdiction.
4. Gross or repeated malpractice.
5. Referring, in violation of NRS 439B.425, a patient to a health facility, medical laboratory or commercial establishment in which the licensee has a financial interest.
Sec. 29 NRS 634A.170 is hereby amended to read as follows:
634A.170 The board may refuse to issue or may suspend or revoke any license for any one or any combination of the following causes:
1. Conviction of:
(a) A felony;
(b) Any offense involving moral turpitude;
(c) A violation of any state or federal law regulating the possession, distribution or use of any controlled substance, as shown by a certified copy of the record of the court; or
(d) A violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [;] , or section 9 or 10 of this act;
2. The obtaining of or any attempt to obtain a license or practice in the profession for money or any other thing of value, by fraudulent misrepresentations;
3. Gross or repeated malpractice, which may be evidenced by claims of malpractice settled against a practitioner;
4. Advertising by means of a knowingly false or deceptive statement;
5. Advertising, practicing or attempting to practice under a name other than one's own;
6. Habitual drunkenness or habitual addiction to the use of a controlled substance;
7. Using any false, fraudulent or forged statement or document, or engaging in any fraudulent, deceitful, dishonest or immoral practice in connection with the licensing requirements of this chapter;
8. Sustaining a physical or mental disability which renders further practice dangerous;
9. Engaging in any dishonorable, unethical or unprofessional conduct which may deceive, defraud or harm the public, or which is unbecoming a person licensed to practice under this chapter;
10. Using any false or fraudulent statement in connection with the practice of Oriental medicine or any branch thereof;
11. Violating or attempting to violate, or assisting or abetting the violation of, or conspiring to violate any provision of this chapter;
12. Being adjudicated incompetent or insane;
13. Advertising in an unethical or unprofessional manner;
14. Obtaining a fee or financial benefit for any person by the use of fraudulent diagnosis, therapy or treatment;
15. Willful disclosure of a privileged communication;
16. Failure of a licensee to designate the nature of his practice in the professional use of his name by the term doctor of Oriental medicine, doctor of acupuncture or acupuncture assistant, as the case may be;
17. Willful violation of the law relating to the health, safety or welfare of the public or of the regulations adopted by the state board of health;
18. Administering, dispensing or prescribing any controlled substance, except for the prevention, alleviation or cure of disease or for relief from suffering; and
19. Performing, assisting or advising in the injection of any liquid silicone substance into the human body.
Sec. 30 NRS 635.130 is hereby amended to read as follows:
635.130 1. The board, after notice and hearing, and upon any cause enumerated in subsection 2, may take one or more of the following disciplinary actions:
(a) Deny an application for a license or refuse to renew a license.
(b) Suspend or revoke a license.
(c) Place a licensee on probation.
(d) Impose a fine not to exceed $5,000.
(e) Require the licensee to pay all costs incurred by the board relating to the discipline of the licensee.
2. The board may take disciplinary action against a licensee for any of the following causes:
(a) The making of a false statement in any affidavit required of the applicant for application, examination or licensure pursuant to the provisions of this chapter.
(b) Lending the use of the holder's name to an unlicensed person.
(c) If the holder is a podiatric physician, his permitting an unlicensed person in his employ to practice as a podiatry hygienist.
(d) Habitual indulgence in the use of alcohol or any controlled substance which impairs the intellect and judgment to such an extent as in the opinion of the board incapacitates the holder in the performance of his professional duties.
(e) Conviction of a crime involving moral turpitude.
(f) Conviction of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [.] , or section 9 or 10 of this act.
(g) Conduct which in the opinion of the board disqualifies him to practice with safety to the public.
(h) The commission of fraud by or on behalf of the licensee regarding his license or practice.
(i) Gross incompetency.
(j) Affliction of the licensee with any mental or physical disorder which seriously impairs his competence as a podiatric physician or podiatry hygienist.
(k) False representation by or on behalf of the licensee regarding his practice.
(l) Unethical or unprofessional conduct.
(m) Willful or repeated violations of this chapter or regulations adopted by the board.
(n) Willful violation of the regulations adopted by the state board of pharmacy.
Sec. 31 NRS 636.295 is hereby amended to read as follows:
636.295 The following acts, conduct, omissions, or mental or physical conditions, or any of them, committed, engaged in, omitted, or being suffered by a licensee, constitute sufficient cause for disciplinary action:
1. Affliction of the licensee with any communicable disease likely to be communicated to other persons.
2. Commission by the licensee of a felony or a gross misdemeanor involving moral turpitude of which he has been convicted and from which he has been sentenced by a final judgment of a federal or state court in this or any other state, the judgment not having been reversed or vacated by a competent appellate court and the offense not having been pardoned by executive authority.
3. Conviction of any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [.] , or section 9 or 10 of this act.
4. Commission of fraud by or on behalf of the licensee in obtaining his license or a renewal thereof, or in practicing optometry thereunder.
5. Habitual drunkenness or addiction to any controlled substance.
6. Gross incompetency.
7. Affliction with any mental or physical disorder or disturbance seriously impairing his competency as an optometrist.
8. Making false or misleading representations, by or on behalf of the licensee, with respect to optometric materials or services.
9. Practice by the licensee, or attempting or offering so to do, while he is in an intoxicated condition.
10. Perpetration of unethical or unprofessional conduct in the practice of optometry.
11. Any violation of the provisions of this chapter or any regulations adopted pursuant thereto.
Sec. 32 NRS 637.150 is hereby amended to read as follows:
637.150 Upon proof to the satisfaction of the board that an applicant or holder of a license:
1. Has been adjudicated insane;
2. Habitually uses any controlled substance or intoxicant;
3. Has been convicted of a crime involving moral turpitude;
4. Has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [;] , or section 9 or 10 of this act;
5. Has advertised in any manner which would tend to deceive, defraud or mislead the public;
6. Has presented to the board any diploma, license or certificate that has been signed or issued unlawfully or under fraudulent representations, or obtains or has obtained a license to practice in the state through fraud of any kind;
7. Has been convicted of a violation of any federal or state law relating to a controlled substance;
8. Has violated any regulation of the board;
9. Has violated any provision of this chapter;
10. Is incompetent;
11. Is guilty of unethical or unprofessional conduct as determined by the board;
12. Is guilty of repeated malpractice, which may be evidenced by claims of malpractice settled against a practitioner; or
13. Is guilty of a fraudulent or deceptive practice as determined by the board,
the board may, in the case of an applicant, refuse to grant him a license, or may, in the case of a holder of a license, place him on probation, reprimand him privately or publicly, require him to pay an administrative fine of not more than $10,000, suspend or revoke his license, or take any combination of these disciplinary actions.
Sec. 33 NRS 637A.250 is hereby amended to read as follows:
637A.250 The board may take disciplinary action against a licensee after a hearing which discloses that the licensee:
1. Has been convicted of a felony.
2. Has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [.] , or section 9 or 10 of this act.
3. Obtained the license by fraud or misrepresentation.
4. Has made any false or fraudulent statements concerning hearing aids or the business of hearing aid specialist.
5. Has been guilty of negligence, incompetence or unprofessional conduct in his practice as a hearing aid specialist. As used in this subsection, "unprofessional conduct" includes, without limitation:
(a) Conduct which is intended to deceive or which the board by specific regulation has determined is unethical;
(b) Conduct which is harmful to the public or any conduct detrimental to the public health or safety;
(c) Conduct for which disciplinary action was taken by an agency of another state which is authorized to regulate the practice of hearing aid specialists; and
(d) Knowingly employing, directly or indirectly, any person who is not licensed to fit or dispense hearing aids or whose license to fit or dispense hearing aids has been suspended or revoked.
6. Has loaned or transferred his license to another person.
7. Willfully violated any law of this state or any provision of this chapter regulating hearing aid specialists or the operation of an office, store or other location for dispensing hearing aids.
Sec. 34 NRS 637B.250 is hereby amended to read as follows:
637B.250 The grounds for initiating disciplinary action pursuant to this chapter are:
1. Unprofessional conduct.
2. Conviction of:
(a) A violation of any federal or state law regarding the possession, distribution or use of any controlled substance or any dangerous drug as defined in chapter 454 of NRS;
(b) A felony;
(c) A violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [;] , or section 9 or 10 of this act; or
(d) Any offense involving moral turpitude.
3. Suspension or revocation of a license to practice audiology or speech pathology by any other jurisdiction.
4. Gross or repeated malpractice, which may be evidenced by claims of malpractice settled against a practitioner.
5. Professional incompetence.
Sec. 35 NRS 639.210 is hereby amended to read as follows:
639.210 The board may suspend or revoke any certificate, license, registration or permit issued pursuant to this chapter, and deny the application of any person for a certificate, license, registration or permit, if the holder or applicant:
1. Is not of good moral character;
2. Is guilty of habitual intemperance;
3. Becomes or is intoxicated or under the influence of liquor, any depressant drug or a controlled substance, unless taken pursuant to a lawfully issued prescription, while on duty in any establishment licensed by the board;
4. Is guilty of unprofessional conduct or conduct contrary to the public interest;
5. Is addicted to the use of any controlled substance;
6. Has been convicted of a violation of any law or regulation of the Federal Government or of this or any other state related to controlled substances, dangerous drugs, drug samples, or the wholesale or retail distribution of drugs;
7. Has been convicted of a felony or other crime involving moral turpitude, dishonesty or corruption;
8. Has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [;] , or section 9 or 10 of this act;
9. Has willfully made to the board or its authorized representative any false statement which is material to the administration or enforcement of any of the provisions of this chapter;
10. Has obtained any certificate, certification, license or permit by the filing of an application, or any record, affidavit or other information in support thereof, which is false or fraudulent;
11. Has violated any provision of the Federal Food, Drug and Cosmetic Act or any other federal law or regulation relating to prescription drugs;
12. Has violated, attempted to violate, assisted or abetted in the violation of or conspired to violate any of the provisions of this chapter or any law or regulation relating to drugs, the manufacture or distribution of drugs or the practice of pharmacy, or has knowingly permitted, allowed, condoned or failed to report a violation of any of the provisions of this chapter or any law or regulation relating to drugs, the manufacture or distribution of drugs or the practice of pharmacy committed by the holder of a certificate, license, registration or permit;
13. Has failed to renew his certificate, license or permit by failing to submit the application for renewal or pay the renewal fee therefor;
14. Has had his certificate, license or permit suspended or revoked in another state on grounds which would cause suspension or revocation of a certificate, license or permit in this state;
15. Has, as a managing pharmacist, violated any provision of law or regulation concerning recordkeeping or inventory in a store over which he presides, or has knowingly allowed a violation of any provision of this chapter or other state or federal laws or regulations relating to the practice of pharmacy by personnel of the pharmacy under his supervision;
16. Has repeatedly been negligent, which may be evidenced by claims of malpractice settled against him; or
17. Has failed to maintain and make available to a state or federal officer any records in accordance with the provisions of this chapter or chapter 453 or 454 of NRS.
Sec. 36 NRS 640.160 is hereby amended to read as follows:
640.160 1. The board, after due notice and hearing, and upon any ground enumerated in subsection 2, may take one or more of the following actions:
(a) Refuse to issue a license or temporary license to any applicant.
(b) Refuse to renew the license or temporary license of any person.
(c) Suspend or revoke the license or temporary license of any person.
(d) Place any person who has been issued a license or temporary license on probation.
(e) Impose an administrative fine which does not exceed $5,000 on any person who has been issued a license.
(f) Require any person who has been issued a license to pay all costs incurred by the board relating to the discipline of the person.
2. The board may take action pursuant to subsection 1 if an applicant or person who has been licensed pursuant to this chapter:
(a) Is habitually drunk or is addicted to the use of a controlled substance.
(b) Has been convicted of violating any state or federal law relating to controlled substances.
(c) Is, in the judgment of the board, guilty of immoral or unprofessional conduct.
(d) Has been convicted of any crime involving moral turpitude.
(e) Has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [.] , or section 9 or 10 of this act.
(f) Is guilty, in the judgment of the board, of gross negligence in his practice as a physical therapist which may be evidenced by claims of malpractice settled against a practitioner.
(g) Has obtained or attempted to obtain a license by fraud or material misrepresentation.
(h) Has been declared insane by a court of competent jurisdiction and has not thereafter been lawfully declared sane.
(i) Has entered into any contract or arrangement which provides for the payment of an unearned fee to any person following his referral of a patient.
(j) Has employed as a physical therapist any unlicensed physical therapist or physical therapist whose license has been suspended.
(k) Has had his license to practice physical therapy suspended, revoked or in any way limited by another jurisdiction.
(l) Is determined to be professionally incompetent by the board.
(m) Has violated any provision of this chapter or the board's regulations.
Sec. 37 NRS 641.230 is hereby amended to read as follows:
641.230 The board may suspend the license of a psychologist, place a psychologist on probation, revoke the license of a psychologist, require remediation for a psychologist or take any other action specified by regulation if the board finds by a preponderance of the evidence that the psychologist has:
1. Been convicted of a felony.
2. Been convicted of any crime or offense that reflects the inability of the psychologist to practice psychology with due regard for the health and safety of others.
3. Been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [.] , or section 9 or 10 of this act.
4. Engaged in gross malpractice or repeated malpractice or gross negligence in the practice of psychology.
5. Aided or abetted the practice of psychology by a person not licensed by the board.
6. Made any fraudulent or untrue statement to the board.
7. Violated a regulation adopted by the board.
8. Had his license to practice psychology suspended or revoked by another state.
9. Failed to report to the board within 30 days the revocation, suspension or surrender of a license or certificate to practice psychology issued by another state.
10. Violated or attempted to violate, directly or indirectly, or assisted in or abetted the violation of or conspired to violate a provision of this chapter.
11. Performed or attempted to perform any professional service while impaired by alcohol, drugs or by a mental or physical illness, disorder or disease.
12. Engaged in sexual activity with a patient.
13. Been convicted of abuse or fraud in connection with any state or federal program which provides medical assistance.
14. Been convicted of submitting a false claim for payment to the insurer of a patient.
Sec. 38 NRS 652.220 is hereby amended to read as follows:
652.220 A license may be denied, suspended or revoked if the laboratory, laboratory director or any technical employee of the laboratory:
1. Violates any provision of this chapter;
2. Makes any misrepresentation in obtaining a license;
3. Has been convicted of a felony;
4. Has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive [;] , or section 9 or 10 of this act;
5. Is guilty of unprofessional conduct;
6. Knowingly permits the use of the name of a licensed laboratory or its director by an unlicensed laboratory; or
7. Fails to meet the minimum standards prescribed by the board.
Sec. 39 Section 104 of chapter 580, Statutes of Nevada 1995, at page 2032, is hereby amended to read as follows:

Sec. 104. NRS 616.630 is hereby amended to read as follows:

616.630 1. If the [manager] administrator finds that an employer within the provisions of NRS 616B.633 has failed to provide and secure compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS or that the employer has provided and secured that compensation but has failed to maintain it, he shall make a determination thereon based on any information that is within his possession or that may come within his possession and may charge the employer an amount equal to the sum of:

(a) The premiums that would otherwise have been owed to the system if he had been insured by the system pursuant to the terms of chapters 616A to 616D, inclusive, of NRS for the period that the employer was doing business in this state without providing, securing or maintaining that compensation, but not to exceed 6 years;

(b) The actual costs incurred by the system in reinstating the policy, but not to exceed 10 percent of the premiums owed by the employer; and

Any money collected by the administrator pursuant to this subsection must be deposited into the uninsured employers' claim fund.

2. [The manager shall mail a copy of his determination to the employer.] If the manager is not satisfied with the amount of a premium required to be paid to the system by any person, he may compute and determine the amount required to be paid on the basis of any information within his possession or which may come into his possession. One or more determinations of a deficiency may be made of the amount due for one or more periods.

3. Except for a determination made pursuant to subsection 1, a notice of a determination of a deficiency issued by the manager must be served personally or mailed within 3 years after the last day of the calendar month following the period for which the amount that is proposed to be determined is due. An employer who is aggrieved by [the manager's] a determination made pursuant to this section or NRS 360.300 may appeal from the determination pursuant to subsection 2 of NRS 616D.220.

[3.] 4. Any employer within the provisions of NRS 616B.633 who fails to provide, secure or maintain compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS, is:

(a) For the first offense, guilty of a misdemeanor.

(b) For a second or subsequent offense committed within 7 years after the previous offense, guilty of a felony, punishable by imprisonment in the state prison for a definite term of not less than 1 year nor more than 5 years or by a fine of not more than $10,000, or by both fine and imprisonment. A person who is sentenced to imprisonment becomes eligible for parole when he has served one-third of the definite term for which he has been sentenced, less any credit earned to reduce his sentence pursuant to chapter 209 of NRS.

Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.

Sec. 40 Section 120 of chapter 580, Statutes of Nevada 1995, at page 2038, is hereby amended to read as follows:

Sec. 120. NRS 228.420 is hereby amended to read as follows:

228.420 1. The attorney general has primary jurisdiction to investigate and prosecute any alleged criminal violations of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, sections 9 and 10 of this act, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of [benefits for industrial insurance.] compensation required by chapters 616A to 617, inclusive, of NRS.

2. For this purpose, the attorney general shall establish within his office a fraud control unit for industrial insurance. The unit must consist of such persons as are necessary to carry out the duties set forth in this section, including, without limitation, an attorney, an auditor and an investigator.

3. The attorney general, acting through the unit established pursuant to subsection 2:

(a) Is the single state agency responsible for the investigation and prosecution of any alleged criminal violations of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, sections 9 and 10 of this act, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of [benefits for industrial insurance;] compensation required by chapters 616A to 617, inclusive, of NRS;

(b) Shall cooperate with the state industrial insurance system, the division of industrial relations of the department of business and industry, self-insured employers, associations of self-insured public or private employers , private carriers and other state and federal investigators and prosecutors in coordinating state and federal investigations and prosecutions involving violations of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, sections 9 and 10 of this act, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of [benefits for industrial insurance;] compensation required by chapters 616A to 617, inclusive, of NRS;

(c) Shall protect the privacy of persons who are eligible to receive [benefits] compensation pursuant to the provisions of chapter 616A, 616B, 616C, 616D or 617 of NRS and establish procedures to prevent the misuse of information obtained in carrying out this section; and

(d) May, upon request, inspect the records of any self-insured employer, association of self-insured public or private employers, private carrier, the state industrial insurance system, the division of industrial relations of the department of business and industry and the state contractors' board to investigate any alleged violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, section 9 or 10 of this act, or any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of [benefits for industrial insurance.] compensation required by chapters 616A to 617, inclusive, of NRS.

4. When acting pursuant to NRS 228.175, 228.410 or this section, the attorney general may commence his investigation and file a criminal action without leave of court, and he has exclusive charge of the conduct of the prosecution.

5. The attorney general shall report the name of any person who has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, or section 9 or 10 of this act, to the occupational board that issued the person's license or certificate to provide medical care, remedial care or other services in this state.

6. The attorney general shall establish a toll-free telephone number for persons to report information regarding alleged violations of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, sections 9 and 10 of this act, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of [benefits for industrial insurance.] compensation required by chapters 616A to 617, inclusive, of NRS.

7. As used in this section:

(a) "Association of self-insured private employers" has the meaning ascribed to it in NRS 616A.050.

(b) "Association of self-insured public employers" has the meaning ascribed to it in NRS 616A.055.

(c) "Private carrier" has the meaning ascribed to it in section 6 of Assembly Bill No. 552 of the 68th Legislative Session.

(d) "Self-insured employer" has the meaning ascribed to it in NRS 616A.305.

Sec. 41 1. NRS 616B.200 is hereby repealed.
2. Section 55 of chapter 580, Statutes of Nevada 1995, at page 2012, is hereby repealed.
Sec. 42 The amendatory provisions of this act do not apply to offenses that are committed before July 1, 1997.
Sec. 43 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 44 This act becomes effective on July 1, 1997.

TEXT OF REPEALED SECTIONS

616B.200 Issuance of certificate to person insured by system.
1. Any person may request the system to provide him with a statement certifying whether he is insured by the system. If the person is insured by the system, the system shall issue a certificate, upon a standard form established by the system for that purpose, which states that the person is insured by the system.
2. The manager may adopt regulations to carry out the provisions of this section.
Section 55 of chapter 580, Statutes of Nevada 1995:

Sec. 55. NRS 616.1925 is hereby amended to read as follows:

616.1925 1. The administrator shall establish a method of indexing claims for compensation that will make information concerning the claimants of one insurer available to other insurers.

2. Every [self-insured employer, association of self-insured public or private employers and the system] insurer shall provide information as required by the administrator for establishing and maintaining the index of claims.

3. If an employee files a claim with an insurer, the insurer is entitled to receive from the administrator a list of the prior claims of the employee. If the insurer desires to inspect the files related to the prior claims, he must obtain the written consent of the employee.

4. Any information obtained from the index of claims must be admitted into evidence in any hearing before an appeals officer, a hearing officer or the administrator.

5. The division may assess and collect a reasonable fee for its services provided pursuant to this section. The fee must be payable monthly or at such other intervals as determined by the administrator.