THE ONE HUNDRED AND FIFTEENTH DAY

THE ONE HUNDRED AND FIFTEENTH DAY

Carson City (Wednesday), May 26, 1999

Assembly called to order at 11:18 a.m.

Mr. Speaker presiding.

Roll called.

All present except Assemblymen Evans and Thomas, who were excused.

Prayer by the Chaplain, Reverend Elaine Ludlum Morgan.

Almighty God, our heavenly Father, send down upon these Assembly persons who represent the people of Nevada the spirit of wisdom, charity, and justice; that with steadfast purpose they may faithfully serve in their offices to promote the welfare of all people. We pray in Your Holy Name. Amen.

Pledge of allegiance to the Flag.

Assemblyman Lee moved that further reading of the Journal be dispensed with, and the Speaker and Chief Clerk be authorized to make the necessary corrections and additions.

Motion carried.

REPORTS OF COMMITTEES

Mr. Speaker:

Your Committee on Elections, Procedures, and Ethics, to which were referred Assembly Concurrent Resolutions Nos. 13, 46, 53, 67, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and be adopted as amended.

Chris Giunchigliani, Chairman

Mr. Speaker:

Your Committee on Judiciary, to which was referred Assembly Bill No. 688, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Bernard Anderson, Chairman

Mr. Speaker:

Your Committee on Transportation, to which was referred Assembly Bill No. 695, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Vonne S. Chowning, Chairman

Mr. Speaker:

Your Committee on Ways and Means, to which was referred Assembly Bill No. 690, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Also, your Committee on Ways and Means, to which was referred Assembly Bill No. 683, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Morse Arberry Jr., Chairman

MESSAGES FROM THE Senate

Senate Chamber, Carson City, May 25, 1999

To the Honorable the Assembly:

I have the honor to inform your honorable body that the Senate on this day passed Assembly Bills Nos. 321, 525.

Also, I have the honor to inform your honorable body that the Senate on this day passed, as amended, Senate Bill No. 399.

Mary Jo Mongelli

Assistant Secretary of the Senate

MOTIONS, RESOLUTIONS AND NOTICES

By Assemblymen Neighbors, Anderson, Angle, Arberry, Bache, Beers, Berman, Brower, Buckley, Carpenter, Cegavske, Chowning, Claborn, Collins, de Braga, Dini, Freeman, Gibbons, Giunchigliani, Goldwater, Gustavson, Hettrick, Humke, Koivisto, Lee, Leslie, Manendo, Marvel, McClain, Mortenson, Nolan, Ohrenschall, Parks, Parnell, Perkins, Price, Segerblom, Thomas, Tiffany, Von Tobel and Williams; Senator McGinness:

Assembly Concurrent Resolution No. 73—Expressing support for the Desert Space Station, a 92,000 square-foot interactive science museum that recognizes and explores Nevada’s unique spaces with exhibits and presentations.

Whereas, Americans of the 21st century will need to understand science and technology to make responsible personal, professional and civic decisions; and

Whereas, Knowledge in the fields of science and technology has exploded in the last several decades; and

Whereas, The literacy of the general public in science and technology in the United States is poor, at best; and

Whereas, Thomas Jefferson wrote that the ultimate powers of society reside with the people, and if the people are not informed enough to exercise those powers, the remedy is not to take the powers from them, but to inform them; and

Whereas, Learning is an ongoing and lifelong process that takes place both inside and outside the walls of educational institutions, and effective learning includes participation and action, “I do and I understand”; and

Whereas, Hands-on, interactive science museums have proven to be excellent places for people of all ages, levels of understanding and interests to learn science and technology by “doing”; and

Whereas, The number of science museums has tripled during the last decade, and currently there are approximately 300 science museums in the United States; and

Whereas, In the United States, science museums serve nearly 115 million people every year, including 13 million school children; and

Whereas, The Desert Space Station will be a nonprofit, 92,000-square foot, hands-on, interactive science museum where children and adults can explore and experience state-of-the-art and futuristic science and technology exhibits and presentations associated with Nevada’s unique spaces, including outer space, air space and land space; and

Whereas, The expected benefits of the Desert Space Station will be the stimulation of interest in science and technology, the enhancement of science and math education in the region, the promotion of a better understanding of the natural environment of the Mojave Desert, and an appreciation of Death Valley National Park and Ash Meadows National Wildlife Refuge; and

Whereas, Additional benefits will be a wider understanding of renewable energy opportunities and technologies, a greater knowledge of Nevada’s mineral resources and the mining of those resources, the promotion of the understanding and appreciation of past, present and future federal activities at the Nevada Test Site, the Nellis Air Force Gunnery Range and the Fallon Naval Air Station and the stimulation of economic development and diversification in rural Nevada; now, therefore, be it

Resolved by the Assembly of the State of Nevada, the Senate Concurring, That the members of the 70th session of the Nevada Legislature do hereby commend the goals of the Board of Trustees for the Desert Space Station and express enthusiastic support for the Desert Space Station; and be it further

Resolved, That the Nevada Legislature anticipates that the Desert Space Station will be a “must-see” attraction in the West, a source of pride for Nevadans and a catalyst for learning by people of all ages and backgrounds; and be it further

Resolved, That the Chief Clerk of the Assembly prepare and transmit a copy of this resolution to Governor Kenny C. Guinn and the Board of Trustees for the Desert Space Station, and be it further

Resolved, That this resolution becomes effective upon passage and approval.

Assemblyman Neighbors moved the adoption of the resolution.

Remarks by Assemblyman Neighbors.

Resolution adopted unanimously.

Assemblyman Neighbors moved that all rules be suspended and that Assembly Concurrent Resolution No. 73 be immediately transmitted to the Senate.

Motion carried unanimously.

INTRODUCTION, FIRST READING AND REFERENCE

Senate Bill No. 399.

Assemblyman Perkins moved that the bill be referred to the Committee on Ways and Means.

Motion carried.

general file and third reading

Assembly Bill No. 189.

Bill read third time.

Remarks by Assemblywoman Giunchigliani.

Assemblywoman Giunchigliani requested that her remarks be entered in the Journal.

I’ll do a general disclosure for anyone that is a public employee. We will not be affected any differently than anyone else and therefore will be voting.

Roll call on Assembly Bill No. 189:

Yeas—38.

Nays—Goldwater.

Not Voting—Anderson.

Excused—Evans, Thomas—2.

Assembly Bill No. 189 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

Bill ordered transmitted to the Senate.

Assembly Bill No. 360.

Bill read third time.

Remarks by Assemblyman Hettrick.

Roll call on Assembly Bill No. 360:

Yeas—40.

Nays—None.

Excused—Evans, Thomas—2.

Assembly Bill No. 360 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

Bill ordered transmitted to the Senate.

Assembly Bill No. 373.

Bill read third time.

Remarks by Assemblywomen Giunchigliani and Freeman.

Roll call on Assembly Bill No. 373:

Yeas—40.

Nays—None.

Excused—Evans, Thomas—2.

Assembly Bill No. 373 having received a two-thirds majority, Mr. Speaker declared it passed, as amended.

Bill ordered transmitted to the Senate.

Assembly Bill No. 386.

Bill read third time.

Remarks by Assemblyman Arberry.

Roll call on Assembly Bill No. 386:

Yeas—40.

Nays—None.

Excused—Evans, Thomas—2.

Assembly Bill No. 386 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

Bill ordered transmitted to the Senate.

Senate Bill No. 149.

Bill read third time.

Remarks by Assemblywoman Leslie.

Roll call on Senate Bill No. 149:

Yeas—40.

Nays—None.

Excused—Evans, Thomas—2.

Senate Bill No. 149 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

Bill ordered transmitted to the Senate.

Senate Bill No. 288.

Bill read third time.

Remarks by Assemblywoman Cegavske.

Roll call on Senate Bill No. 288:

Yeas—40.

Nays—None.

Excused—Evans, Thomas—2.

Senate Bill No. 288 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

Bill ordered transmitted to the Senate.

Senate Bill No. 404.

Bill read third time.

Remarks by Assemblymen Parks and Perkins.

Potential conflict of interest declared by Assemblyman Perkins.

Roll call on Senate Bill No. 404:

Yeas—40.

Nays—None.

Excused—Evans, Thomas—2.

Senate Bill No. 404 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

Bill ordered transmitted to the Senate.

Senate Bill No. 438.

Bill read third time.

Remarks by Assemblymen Bache, Collins, Hettrick, de Braga, Giunchigliani and Berman.

Mr. Speaker requested the privilege of the chair for the purpose of making remarks.

Potential conflict of interest declared by Assemblymen Collins and Berman.

Roll call on Senate Bill No. 438:

Yeas—37.

Nays—Angle, Buckley, Giunchigliani—3.

Excused—Evans, Thomas—2.

Senate Bill No. 438 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

Bill ordered transmitted to the Senate.

Senate Joint Resolution No. 12 of the 69th Session.

Resolution read third time.

Remarks by Assemblymen Arberry and Goldwater.

Roll call on Senate Joint Resolution No. 12 of the 69th Session:

Yeas—28.

Nays—Angle, Bache, Beers, Carpenter, Collins, Giunchigliani, Goldwater, Gustavson, Lee, Mortenson, Price, Segerblom—12.

Excused—Evans, Thomas—2.

Senate Joint Resolution No. 12 of the 69th Session having received a constitutional majority, Mr. Speaker declared it passed.

Resolution ordered transmitted to the Senate.

REPORTS OF COMMITTEES

Mr. Speaker:

Your Committee on Ways and Means, to which was referred Assembly Bill No. 472, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Also, your Committee on Ways and Means, to which was referred Senate Bill No. 507, has had the same under consideration, and begs leave to report the same back with the

recommendation: Amend, and do pass as amended.

Morse Arberry Jr., Chairman

MOTIONS, RESOLUTIONS AND NOTICES

Assemblyman Perkins moved that Assembly Bills Nos. 472, 683, 688, and Senate Bill No. 507 be placed on the Second Reading File.

Motion carried.

Assemblyman Perkins moved that Assembly Concurrent Resolutions Nos. 13, 46, 53 and 67 be placed on the Resolution File.

Motion carried.

Assemblyman Perkins moved that all rules be suspended, reading so far had considered second reading, rules further suspended, Assembly Bills Nos. 690 and 695 considered engrossed, declared emergency measures under the Constitution and placed on third reading and final passage.

Motion carried unanimously.

MOTIONS, RESOLUTIONS AND NOTICES

Assembly Concurrent Resolution No. 13.

Resolution read second time.

The following amendment was proposed by the Committee on Elections, Procedures, and Ethics:

Amendment No. 1152.

Amend the resolution, page 1, line 14, after “to” by inserting:

“appoint a subcommittee, consisting of four members of the Assembly and four members of the Senate, to”.

Amend the resolution, page 1, between lines 16 and 17, by inserting:

“Resolved, That the subcommittee may appoint an advisory committee, consisting of persons who are knowledgeable in the areas of the study, to consult with and to assist in conducting the study; and be it further”.

Amend the resolution, page 2, line 33, by deleting “study committee” and inserting “subcommittee”.

Amend the resolution, page 2, line 35, by deleting “committee” and inserting “subcommittee”.

Amend the resolution, page 2, line 36, by deleting “committee;” and inserting “subcommittee;”.

Assemblywoman Giunchigliani moved the adoption of the amendment.

Remarks by Assemblywoman Giunchigliani.

Amendment adopted.

Resolution ordered reprinted, engrossed and to the Resolution File.

Assembly Concurrent Resolution No. 46.

Resolution read second time.

The following amendment was proposed by the Committee on Elections, Procedures, and Ethics:

Amendment No. 1153.

Amend the resolution, page 1, line 19, by deleting:

“appoint a subcommittee to”.

Amend the resolution, page 2, between lines 5 and 6, by inserting:

“Resolved, That the Legislative Commission shall appoint a subcommittee, consisting of:

1. Four members of the Assembly, two of whom must have served on the Assembly Standing Committee on Judiciary during the immediately preceding session of the legislature; and

2. Four members of the Senate, two of whom must have served on the Senate Standing Committee on Judiciary during the immediately preceding session of the legislature,

to conduct the study; and be it further”.

Amend the resolution , page 2, line 11, by deleting “and”.

Amend the resolution, page 2, line 12, after the semicolon by inserting:

“and

5. One representative from the Nevada Association of School Boards;”.

Assemblywoman Giunchigliani moved the adoption of the amendment.

Remarks by Assemblywoman Giunchigliani.

Amendment adopted.

Resolution ordered reprinted, engrossed and to the Resolution File.

Assembly Concurrent Resolution No. 53.

Resolution read second time.

The following amendment was proposed by the Committee on Elections, Procedures, and Ethics:

Amendment No. 1154.

Amend the resolution, page 2, line 1, after “subcommittee” by inserting:

“, consisting of four members of the Assembly and four members of the Senate,”.

Assemblywoman Giunchigliani moved the adoption of the amendment.

Remarks by Assemblywoman Giunchigliani.

Amendment adopted.

Resolution ordered reprinted, engrossed and to the Resolution File.

Assembly Concurrent Resolution No. 67.

Resolution read second time.

The following amendment was proposed by the Committee on Elections, Procedures, and Ethics:

Amendment No. 1155.

Amend the resolution, page 1, by deleting line 14, and inserting;

“subcommittee consisting of:

1. Four members of the Assembly, at least one of whom must have served on the Assembly Standing Committee on Judiciary during the immediately preceding session of the Legislature; and

2. Four members of the Senate, at least one of whom must have served on the Senate Standing Committee on Judiciary during the immediately preceding session of the Legislature,

to conduct the interim study; and be it further

Resolved, That the subcommittee may appoint an advisory committee, consisting of persons who are knowledgeable in the areas of the study, to consult with and to assist in conducting the study; and be it further

Resolved, That the interim study must”.

Assemblywoman Giunchigliani moved the adoption of the amendment.

Remarks by Assemblywoman Giunchigliani.

Amendment adopted.

Resolution ordered reprinted, engrossed and to the Resolution File.

SECOND READING AND AMENDMENT

Assembly Bill No. 472.

Bill read second time.

The following amendment was proposed by the Committee on Ways and Means:

Amendment No. 1113.

Amend section 1, page 1, line 5, by deleting “5” and inserting “[5] 4”.

Amend the bill as a whole by renumbering sec. 2 as sec. 3 and adding a new section designated sec. 2, following section 1, to read as follows:

“Sec. 2. NRS 213.015 is hereby amended to read as follows:

213.015 1. A member of the board who has served as a district judge or as a justice of the supreme court, or any combination thereof, for at least [6] 4 years, is entitled to compensation as a member of the board in the amount of [1] 2 percent of his annual salary as a justice of the supreme court for each year of service as a district judge or as a justice of the supreme court, or any combination thereof. The compensation received by a justice for his service on the boardmust not exceed 22 percent of his annual salary as a justice of the supreme court.

2. The salaries provided for in this section must be paid out of money provided by direct legislative appropriation from the state general fund.”.

Amend the title of the bill, second line, by deleting:

“a district judge;” and inserting:

“certain justices and judges;”.

Amend the summary of the bill by deleting “districtjudges.” and inserting:

“certain justices and judges.”.

Assemblyman Arberry moved the adoption of the amendment.

Remarks by Assemblyman Arberry.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Assembly Bill No. 683.

Bill read second time.

The following amendment was proposed by the Committee on Ways and Means:

Amendment No. 1131.

Amend the bill as a whole by renumbering sec. 8 as sec. 9 and adding a new section designated sec. 8, following sec. 7, to read as follows:

“Sec. 8. The state board of finance may issue general obligation bonds of the State of Nevada in the face amount of not more than $1,535,026 pursuant to the State Securities Law. The bonds issued pursuant to this section were previously authorized by chapter 785, Statutes of Nevada 1989, at page 1864, and were approved by the voters as question 5 in the general election of 1990. The division of wildlife of the state department of conservation and natural resources may expend the proceeds of the bonds exclusively for the purposes provided in subsection 2 of section 2 of chapter 785, Statutes of Nevada 1989, at page 1864.”.

Amend the title of the bill, fourth line, after “projects;” by inserting:

“authorizing the state board of finance to issue general obligation bonds for certain purposes; authorizing the division of wildlife of the state department of conservation and natural resources to expend the proceeds of such bonds for those purposes;”.

Amend the summary of the bill, second line, by deleting “projects.” and inserting:

“projects and authorizes issuance of bonds for certain purposes.”.

Assemblyman Arberry moved the adoption of the amendment.

Remarks by Assemblyman Arberry.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Assembly Bill No. 688.

Bill read second time.

The following amendment was proposed by the Committee on Judiciary:

Amendment No. 1158.

Amend section 1, pages 1 and 2, by deleting lines 3 through 17 on page 1 and lines 1 through 9 on page 2, and inserting:

“Sec. 2. 1. The conviction of the parent of a child for murder of the first degree of the other parent of the child creates a rebuttable presumption that sole or joint custody of the child by the convicted parent is not in the best interest of the child. The rebuttable presumption may be overcome only if:

(a) The court determines that:

(1) There is no other suitable guardian for the child;

(2) The convicted parent is a suitable guardian for the child; and

(3) The health, safety and welfare of the child are not at risk; or

(b) The child is of suitable age to signify his assent and assents to the order of the court awarding sole or joint custody of the child to the convicted parent.

2. The conviction of the parent of a child for murder of the first degree of the other parent of the child creates a rebuttable presumption that rights to visitation with the child are not in the best interest of the child and must not be granted if custody is not granted pursuant to subsection 1. The rebuttable presumption may be overcome only if:

(a) The court determines that:

(1) The health, safety and welfare of the child are not at risk; and

(2) It will be beneficial for the child to have visitations with the convicted parent; or

(b) The child is of suitable age to signify his assent and assents to the order of the court awarding rights to visitation with the child to the convicted parent.

3. Until the court makes a determination pursuant to this section, no person may bring the child into the presence of the convicted parent without the consent of the legal guardian or custodian of the child.

Sec. 5. 1. The conviction of the parent of a child for murder of the first degree of the other parent of the child creates a rebuttable presumption that sole or joint custody of the child by the convicted parent is not in the best interest of the child. The rebuttable presumption may be overcome only if:

(a) The court determines that:

(1) There is no other suitable guardian for the child;

(2) The convicted parent is a suitable guardian for the child; and

(3) The health, safety and welfare of the child are not at risk; or

(b) The child is of suitable age to signify his assent and assents to the order of the court awarding sole or joint custody of the child to the convicted parent.

(a) The court determines that:

(1) The health, safety and welfare of the child are not at risk; and

(2) It will be beneficial for the child to have visitations with the convicted parent; or

(b) The child is of suitable age to signify his assent and assents to the order of the court awarding rights to visitation with the child to the convicted parent.

Assemblyman Anderson moved the adoption of the amendment.

Remarks by Assemblyman Anderson.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 507.

Bill read second time.

The following amendment was proposed by the Committee on Ways and Means:

Amendment No. 1167.

Amend section 1, page 1, line 3, by deleting “$16,187” and inserting “$4,063”.

Assemblyman Arberry moved the adoption of the amendment.

Remarks by Assemblyman Arberry.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

general file and third reading

Assembly Bill No. 690.

Bill read third time.

Remarks by Assemblyman Hettrick.

Roll call on Assembly Bill No. 690:

Yeas—40.

Nays—None.

Excused—Evans, Thomas—2.

Assembly Bill No. 690 having received a constitutional majority, Mr. Speaker declared it passed.

Bill ordered transmitted to the Senate.

Assembly Bill No. 695.

Bill read third time.

Remarks by Assemblymen Chowning, Perkins, Hettrick, Anderson, Giunchigliani, Manendo, Price, Marvel, Buckley, Carpenter, Goldwater, Ohrenschall, Bache, Segerblom, Neighbors, Collins, Gibbons and Mr. Speaker.

Assemblyman Price requested that the following remarks be entered in the Journal.

Assemblywoman Chowning:

Thank you, Mr. Speaker. Assembly Bill 695 grants to Joseph E. Dini, Jr. use of a special license plate designated “State Assemblyman 1” as a lifetime endowment, regardless of whether he continues to serve in the Nevada Assembly.

I know, Mr. Speaker, that you are not very comfortable with this speech but we’re going to talk about you anyway. This measure is being proposed in honor of the many years of outstanding service that Assemblyman Joe Dini, more commonly known as “Mr. Speaker,” has given to this Nevada Legislature and to the people of our state. Speaker Dini, who is now in his 33^rd year of legislative service, is the longest serving member of the Nevada State Assembly in Nevada history. He was first elected to office in November of 1966. Since then, he has held numerous leadership posts, from Speaker pro Tempore in 1973 to Majority Floor Leader in 1975 and then Speaker, for eight regular sessions. In short, Speaker Dini has served as an inspiration to members of the Nevada Legislature and to the citizens of this state for over three decades. For the unprecedented length and quality of his service, he is being given—if we pass this bill—a lifetime endowment to use his special license plate showing on its face “State Assemblyman 1.” We would like to retire this in honor of Speaker Dini. It has nothing to do with him being Speaker for eight terms. I would like to remind everyone, however, that because of term limits, no one will ever be able to serve eight sessions as Speaker, ever again in our state, unless the members of our state decide to change the Constitution. I strongly urge your support in showing this endowment and this honor to our own Mr. Speaker, Mr. Dini.

Assemblyman Perkins:

Thank you, Mr. Speaker. I rise in opposition . . . just kidding. The concept for AB 695 came to me a few weeks ago. You try to think about all the accomplishments of our own Speaker Dini. I said it earlier in the session when we nominated him and he was chosen as Speaker for the 1999 legislative session: we truly are living history when we serve with Mr. Speaker. If I don’t take anything else away from my service in the Nevada Legislature, I have the honor that I’ve had in serving with you, Mr. Speaker. I think we looked for other ways to try and bestow an honor upon you for your longevity and public service and for the many wonderful things you’ve done for our state. It’s for those reasons that this bill comes before the body today. I don’t know if you have a conflict but I think you are going to have to go down and lobby the Senate side by yourself.

Assemblyman Hettrick:

Thank you, Mr. Speaker. I’d be remiss if I didn’t rise and echo much of what has been said. Obviously, that gavel hanging over your head right now, that we’re all looking at, that you can’t see, signifies what it really means to be the Speaker and the legacy you’ve left this House. I’ve said once before that I had an opportunity to visit California’s legislature, while their Assembly was in session. I was appalled. I have to tell you I was just appalled. It was a zoo. I think much of the decorum and the way we conduct business in this House is due to the way you conduct business in the Assembly and the way you’ve conducted business in this House. I am proud of what’s done here. I think you should be proud of it. We are all pleased to support this bill. Thank you, Mr. Speaker.

Assemblyman Anderson:

Thank you, Mr. Speaker. I think I’ve spoken on my feelings about the leadership that Joseph E. Dini, Jr. provides on a regular basis to the members. I think, as a chairman of a committee, I know what is expected of me, in terms of decorum. It is the model you have always set—that the people of the State of Nevada come first. There are those who honor you with this because of the eight sessions you have served as Speaker. I rather believe it is because of the undying time and commitment to our people, to the people of this state, that you would deserve this honor. Therefore, I support this measure.

Assemblyman Giunchigliani:

Thank you, Mr. Speaker. I, too, rise in support of this piece of legislation. I think you paved the way for many Italian Americans and other ethnic groups who really did not think that we could be in politics in the same manner we have, and endure it with such dignity. And I mean that sincerely because I think, in the old days, people made light of and made fun of Italians. You’ve lent a great deal of class, you run a good house and I’ve always enjoyed working with you, even when we agree to disagree, and try to do our Italian speaking to each other, which no one else understands. Another good reason to support this legislation is so we didn’t have to wrestle this plate away from you like they had to do with the former Lieutenant Governor.

Mr. Speaker requested the privilege of the Chair for the purpose of making the following remarks:

I had a lot of trouble getting an Assembly license plate. Don Mello was number one before I got it. He retired from the Assembly and went to the Senate. He wouldn’t give it to me. He drove around with it for three months before I could finally get it back. He made a presentation in the Assembly when he gave it back to me. It was about March in the session before he would surrender it to me.

Assemblyman Manendo:

Thank you, Mr. Speaker. I believe my colleague from District 28 said something about 1966. That was the year I was born. As a member of the Italian caucus, I’m really proud to have served with you and you are a true leader and I’m honored we have the opportunity to recognize and honor you this way, Mr. Speaker. Thank you.

Assemblyman Price:

Thank you, Mr. Speaker. I, too, rise in honorable and enthusiastic support of this bill. I guess, among us here, at least in the House, I have served with you the longest. It’s been a wonderful, wonderful education and working relationship. Like everyone else, we did not agree on all issues, but because of your dignity and hard work and also being able to educate me on some things, it’s been a fine working relationship. I have a little bit of sad feelings, however, about the license plate. It isn’t on my own part. When we had this bill introduced I had occasion to be talking about it and how happy I was while I was riding in my classic car, which is “Assemblyman 2,” which had always expected to become “Assemblyman 1,” someday. I was talking about this bill last night on the way home. As I was driving to work this morning, I guess my classic must have been thinking about it and was very sad because it in fact “Sine died” on me. I didn’t make it all the way to work. It’s out there, in Nevada, and we’re going to have to figure out how to get it going again even though it has lost that hope of being “Assemblyman 1.”

Assemblyman Marvel:

Thank you, Mr. Speaker. It’s a pleasure to support AB 695. I’ve had the pleasure of serving with you for 20 years, second only to my colleague behind me. I appreciate the fact you were able, because of your Italian background, to run. Maybe, because of you, I was able, as a Welshman, to run. May I say this, Mr. Speaker, it has really been a pleasure because there has been such a balance between rural and urban Nevada. I think, truly, people here can always remember you as being a true, dedicated Nevada servant. Thank you for your dedicated service, Joe.

Assemblywoman Buckley:

Thank you, Mr. Speaker. I, too, rise in support of Assembly Bill 695. I think one of the best attributes that you have brought is your ability to mentor young legislators. When I joined this body in 1995, you gave me opportunities from the very beginning, before we even met, as we looked at the legal challenges behind the 21/21 split. There are not a lot of folks who extend a hand and give a chance to someone to shine and are willing to let young folks in to do their best for the state. So, in addition to all your years of public service and knowledge of the issues and leadership on the issues, you’ll leave a legacy in those like myself, who you allowed an opportunity to succeed and learn from you. For that reason, I support Assembly Bill 695.

Assemblyman Carpenter:

Thank you, Mr. Speaker. I don’t think there is any question that you deserve to be number one for all time. Thank you.

Assemblyman Goldwater:

Thank you, Mr. Speaker. I, too, rise in support of AB 695. I’d also like to echo the comments of the chair of Commerce and Labor. In fact, I was always going to take another page out of her book and see if I couldn’t attach some of my bills to this particular measure, as an amendment, but Legal told me it wasn’t germane—but, I beg to differ. When you come to the Nevada Legislature after you get elected, everyone has a piece of advice for you as every member of this body knows. Almost every piece of that advice starts with, “Mr. Speaker, this. Go see Mr. Speaker that. Talk to Mr. Speaker about that.” So I came here, wondering what was Mr. Speaker going to be like. After I met you, and worked with you, I thought to myself, “Why do they call him Mr. Speaker. He barely talks.” I have found out since that time, as the chair of Commerce and Labor has, that it is that quiet dignity and leadership that is strong. It is your offering that opportunity to every one, regardless of the color of their skin, regardless of their gender, of their age, but what you feel is best for the state. It has been an honor to work with you and it is fitting that you should receive this particular license plate designation. It is the very least we can do. I’ll tell you, there is one horse from here to Yerington that has the brand “State Assemblyman 1,” you can’t get out of it anymore, Mr. Speaker.

Assemblywoman Ohrenschall:

Thank you, Mr. Speaker. I, too, rise in support of this bill. I think I can sum it up by saying the reason we all support it is because everyone in this body is very, very proud to have you as our leader.

Assemblyman Bache:

Thank you, Mr. Speaker. Even I, the nemesis of special license plates, rise in support of this bill. Echoing similar comments of my colleague, the assistant minority leader, in 1995 you gave me an opportunity to co-chair Government Affairs with Mrs. Lambert. I appreciate that opportunity. Hopefully, through that session, and the two that have followed, I have followed in your tradition. As five-time chair of Government Affairs, I look up to you as far as leadership in performing that function and hopefully, I’ve done that. Thank you, Mr. Speaker.

Assemblywoman Segerblom:

Thank you, Mr. Speaker. I, too, rise in support of AB 695. I’m just not sure what we’re doing because if I can expect to come back, we expect you to come back. Thank you, Mr. Speaker.

Assemblyman Neighbors:

Thank you, Mr. Speaker. I, too, rise in support. Even though I have only been here four sessions—previously I was a lobbyist here for many years—your door has always been open. Your help to the rural areas has been outstanding. At the same time, I think you have certainly, in your position, represented the whole state of Nevada. You have done a great job. Thank you.

Assemblyman Collins:

Thank you, Mr. Speaker. I support this resolution because I highly admire you as a good man and gentle man. I believe you probably know the pulse of Nevada better than anyone else in our state and I commend you for that hard work that you give to help us all do that.

Mr. Speaker requested the privilege of the Chair for the purpose of making the following remarks:

I would like to tell a little story about Mr. Price and me. Our rivalry started in his first session in 1973. I introduced a bill to outlaw aluminum wire in mobile homes. He, being the electrician he is, opposed it. They wrote a big editorial that I was trying to protect the copper industry because the Anaconda Mining Company was in Yerington, the largest copper mine at the time in the state, so they thought it was a conflict of interest and a special interest bill that I introduced for the Anaconda Mining Company. Well, I was a volunteer fireman at the time, and in reading the books, the problems with aluminum wire was, it didn’t have the flexibility of copper. Since then, the Universal Code has changed to all the mobile homes having copper wire. But, I was right and he was wrong, but he thought he beat my bill that time.

Assemblywoman Gibbons:

Thank you, Mr. Speaker. I rise in support of AB 695. I personally feel very proud of you. Also, Dr. Buxton, and the many people at the University, who have sent their e-mail with special congratulations to you and are listening right now are very proud of you as well.

Roll call on Assembly Bill No. 695:

Yeas—39.

Nays—None.

Not Voting—Dini.

Excused—Evans, Thomas—2.

Assembly Bill No. 695 having received a constitutional majority, Mr. Speaker declared it passed.

Bill ordered transmitted to the Senate.

REPORTS OF COMMITTEES

Mr. Speaker:

Your Committee on Commerce and Labor, to which was referred Senate Bill No. 37, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Barbara E. Buckley, Chairman

MOTIONS, RESOLUTIONS AND NOTICES

Assemblyman Perkins moved that Senate Bill No. 37 be placed on the Second Reading File.

Motion carried.

SECOND READING AND AMENDMENT

Senate Bill No. 37.

Bill read second time.

The following amendment was proposed by the Committee on Commerce and Labor:

Amendment No. 1156.

Amend the bill as a whole by deleting sec. 12 and adding:

“Sec. 12. (Deleted by amendment.)”.

Amend the bill as a whole by adding a new section designated sec. 12.5, following sec. 12, to read as follows:

“Sec. 12.5. NRS 616A.425 is hereby amended to read as follows:

616A.425 1. There is hereby established in the state treasury the fund for workers’ compensation and safety as a special revenue fund. All money received from assessments levied on insurers and employers by the administrator pursuant to NRS 232.680 must be deposited in this fund.

2. All assessments, penalties, bonds, securities and all other properties received, collected or acquired by the division for functions supported in whole or in part from the fund must be delivered to the custody of the state treasurer for deposit to the credit of the fund.

3. All money and securities in the fund must be used to defray all costs and expenses of administering the program of workmen’s compensation, including the payment of:

(a) All salaries and other expenses in administering the division of industrial relations, including the costs of the office and staff of the administrator.

(b) All salaries and other expenses of administering NRS 616A.435 to 616A.460, inclusive, the offices of the hearings division of the department of administration and the programs of self-insurance and review of premium rates by the commissioner .[of insurance.]

(c) The salary and other expenses of a full-time employee of the legislative counsel bureau whose principal duties are limited to conducting research and reviewing and evaluating data related to industrial insurance.

(d) All salaries and other expenses of the fraud control unit for industrial insurance established pursuant to NRS 228.420.

(e) Claims against uninsured employers arising from compliance with NRS 616C.220 and 617.401.

(f) All salaries and expenses of the members of the legislative committee on workers’ compensation and any other expenses incurred by the committee in carrying out its duties pursuant to NRS 218.5375 to 218.5378, inclusive.

(g) That portion of the salaries and other expenses of the office for consumer health assistance established pursuant to section 86.6 of this act that is related to providing assistance to consumers and injured employees concerning workers’ compensation.

4. The state treasurer may disburse money from the fund only upon written order of the controller.

5. The state treasurer shall invest money of the fund in the same manner and in the same securities in which he is authorized to invest state general funds which are in his custody. Income realized from the investment of the assets of the fund must be credited to the fund.

6. The commissioner shall assign an actuary to review the establishment of assessment rates. The rates must be filed with the commissioner 30 days before their effective date. Any insurer or employer who wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.”.

Amend sec. 14, page 7, line 42, after “~~inclusive,~~” by inserting:

“~~or chapter 617~~”.

Amend sec. 14, page 8, line 6, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 16, page 8, line 30, by deleting “20,” and inserting “20.5,”.

Amend sec. 20, page 9, by deleting line 24 and inserting:

“2. A classified employee of the system who is employed by the system on”.

Amend the bill as a whole by adding a new section designated sec. 20.5, following sec. 20, to read as follows:

“Sec. 20.5. Every state office, department, board, commission, bureau, agency or institution, operating by authority of law, and each county, city, school district and other political subdivision of this state shall budget for industrial insurance in the same manner as for other expenses and, if insured by a private carrier, shall pay premiums as required by its contract.”.

Amend sec. 28, page 12, line 34, after “inclusive,” by inserting “616B.463,”.

Amend the bill as a whole by adding a new section designated sec. 29.5, following sec. 29, to read as follows:

“Sec. 29.5. NRS 616B.167 is hereby amended to read as follows:

616B.167 The manager:

1. Has full power, authority and jurisdiction over the system.

2. May perform all acts necessary or convenient in the exercise of any power, authority or jurisdiction over the system, either in the administration of the system or in connection with the business of insurance to be carried on by the system under the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, including the establishment of premium rates.

3. May appoint [in the unclassified service of the state no] not more than five persons engaged in management who report directly to the manager or an assistant manager. The manager shall designate these positions and may not change them without the approval of the personnel commission. These persons are entitled to receive annual salaries fixed by the manager.”.

Amend sec. 30, page 13, line 24, by deleting:

“[system when] administrator if” and inserting “division if”.

Amend sec. 30, page 13, line 25, by deleting:

“[requests such coverage and]”.

Amend sec. 30, page 13, lines 26 and 27, by deleting:

“[the system.] a private carrier.” and inserting:

“[the system or]a private carrier.”.

Amend sec. 30, page 13, line 30, by deleting:

“[system.]administrator.” and inserting “division.”.

Amend sec. 30, page 13, line 33, by deleting “[system]administrator” and inserting “division”.

Amend sec. 31, page 13, line 41, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 32, page 14, by deleting lines 6 through 31 and inserting:

“616B.224 1. Every private or public employer who is not a self-insured employer or a member of an association of self-insured public or private employers shall, at intervals and on or before dates established by his insurer, furnish the insurer with:

(a) A true and accurate payroll showing:

(1) The total amount paid to employees for services performed;

(2) The amount of tips reported to him by every employee pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more; and

(3) A segregation of employment in accordance with the requirements of the commissioner; and

(b) Any premium due pursuant to the terms of the policy of industrial insurance.

The payroll reports and any premium may be furnished to the insurer on different dates, as established by the insurer.

2. [Failure]The failure of any employer to comply with the provisions of this section operates as a rejection of chapters 616A to 616D, inclusive, and chapter 617 of NRS. [, effective on the date established by the insurer pursuant to subsection 1.] The insurer shall notify the administrator of each such rejection[.] within the period specified in NRS 616B.460.”.

Amend sec. 32, page 14, line 32, by deleting “5.” and inserting “3.”.

Amend sec. 32, page 14, line 35, after “inclusive,” by inserting:

“and chapter 617”.

Amend sec. 32, page 14, line 37, by deleting “6.” and inserting “4.”.

Amend sec. 32, page 14, line 42, by deleting “~~7.]~~” and inserting “~~5.]~~”.

Amend sec. 32, page 15, line 1, after “inclusive,” by inserting:

“and chapter 617”.

Amend sec. 32, page 15, between lines 2 and 3, by inserting:

“[6. Every employer insured by the system shall pay its premiums to the state insurance fund. All money received by the system pursuant to this section must be deposited with the state treasurer to the credit of the state insurance fund.]”.

Amend sec. 33, page 15, by deleting lines 23 through 25 and inserting:

“income from tips to calculate his federal income tax and to include the income in the computation of benefits pursuant to chapters 616A to 616D, inclusive, and chapter 617 of NRS.”.

Amend the bill as a whole by deleting sections 34 and 35 and adding:

“Secs. 34 and 35. (Deleted by amendment.)”.

Amend sec. 36, page 18, by deleting lines 1 through 35 and inserting:

“4. An employer who seeks to become a member of the association after the 12 months immediately following the formation of the association must meet the requirement set forth in paragraph (a) or (b) of subsection 3 unless the commissioner adjusts the requirement for membership in the association after conducting an annual review of the actuarial solvency of the association pursuant to subsection 1 of NRS 616B.353.

5. An association of self-insured private employers may apply to the commissioner for authority to determine the amount of tangible net worth and manual premium that an employer must have to become a member of the association. The commissioner shall approve the application if the association:

(a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the commissioner;

(b) Has a combined tangible net worth of all members in the association of at least $5,000,000;

(d) Has not been required to meet informally with the commissioner pursuant to subsection 1 of NRS 616B.431 during the 18-month period immediately preceding the date on which the association filed the application with the commissioner or, if the association has been required to attend such a meeting during that period, has not had its certificate withdrawn before the date on which the association filed the application.

6. An association of self-insured private employers may apply to the commissioner for authority to determine the documentation demonstrating solvency that an employer must provide to become a member of the association. The commissioner shall approve the application if the association:

(a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the commissioner;

(b) Has a combined tangible net worth of all members in the association of at least $5,000,000; and

7. The commissioner may withdraw his approval of an application submitted pursuant to subsection 5 or 6 if he determines the association has ceased to comply with any of the requirements set forth in subsection 5 or 6, as applicable.

8. A member of an association may terminate his membership at any time. To terminate his membership, a member must submit to the association’s administrator a notice of intent to withdraw from the association at least 120 days before the effective date of withdrawal. The association’s administrator shall, within 10 days after receipt of the notice, notify the commissioner of the employer’s intent to withdraw from the association.

9. The members of an association may cancel the membership of any member of the association in accordance with the bylaws of the association.

10. The association shall:

(a) Within 30 days after the addition of an employer to the membership of the association, notify the commissioner of the addition and:

(1) If the association has not received authority from the commissioner pursuant to subsection 5 or 6, as applicable, provide to the commissioner all information and assurances for the new member that were required from each of the original members of the association upon its organization; or

(2) If the association has received authority from the commissioner pursuant to subsection 5 or 6, as applicable, provide to the commissioner evidence that is satisfactory to the commissioner that the new member is a member or associate member of the bona fide trade association as required pursuant to paragraph (a) of subsection 2 of NRS 616B.350, a copy of the indemnity agreement that jointly and severally binds the new member, the other members of the association and the association that is required to be executed pursuant to paragraph (a) of subsection 1 of NRS 616B.353 and any other information the commissioner may reasonably require to determine whether the amount of security deposited with the commissioner pursuant to paragraph (d) or (e) of subsection 1 of NRS 616B.353 is sufficient, but such information must not exceed the information required to be provided to the commissioner pursuant to subparagraph (1);

(b) Notify the commissioner and the administrator of the termination or cancellation of the membership of any member of the association within 10 days after the termination or cancellation; and

(c) At the expense of the member whose membership is terminated or canceled, maintain coverage for that member for 30 days after notice is given pursuant to paragraph (b), unless the association first receives notice from the administrator that the member has:

(1) [Become insured by the system;

(2)] Been certified as a self-insured employer pursuant to NRS 616B.312;

[(3)] (2) Become a member of another association of self-insured public or private employers; or

[(4)] (3) Become insured by a private carrier.

11. If a member of an association changes his name or form of organization, the member remains liable for any obligations incurred or any responsibilities imposed pursuant to chapters 616A to 617, inclusive, of NRS under his former name or form of organization.

12. An association is liable for the payment of any compensation required to be paid by a member of the association pursuant to chapters 616A to 616D, inclusive, or 617 of NRS during his period of”.

Amend the bill as a whole by deleting sections 44 through 49 and adding:

“Sec. 44-49. (Deleted by amendment.)”.

Amend the bill as a whole by adding a new section designated sec. 49.5, following sec. 49, to read as follows:

“Sec. 49.5. Chapter 616C of NRS is hereby amended by adding thereto a new section to read as follows:

1. An insurer may inquire about and request medical records of an injured employee that concern a preexisting medical condition that is reasonably related to the industrial injury of that injured employee.

2. An injured employee must sign all medical releases necessary for the insurer of his employer to obtain information and records about a preexisting medical condition that is reasonably related to the industrial injury of the employee and that will assist the insurer to determine the nature and amount of workers’ compensation to which the employee is entitled.”.

Amend sec. 52, page 26, line 25, after “inclusive,” by inserting:

“or chapter 617”.

Amend the bill as a whole by adding a new section designated sec. 52.5, following sec. 52, to read as follows:

“Sec. 52.5. NRS 616C.100 is hereby amended to read as follows:

616C.100 1. If an injured employee disagrees with the percentage of disability determined by a physician or chiropractor, the injured employee may obtain a second determination of the percentage of disability. If the employee wishes to obtain such a determination, he must select the next physician or chiropractor in rotation from the list of qualified physicians or chiropractors maintained by the administrator pursuant to subsection 2 of NRS 616C.490. If a second determination is obtained, the injured employee shall pay for the determination. If the physician or chiropractor selected to make the second determination finds a higher percentage of disability than the first physician or chiropractor, the injured employee may request a hearing officer or appeals officer to order the insurer to reimburse the employee pursuant to the provisions of NRS 616C.330 or 616C.360.

2. The results of a second determination made pursuant to subsection 1 may be offered at any hearing or settlement conference.”.

Amend the bill as a whole by adding thereto a new section designated sec. 53.5, following sec. 53, to read as follows:

“Sec. 53.5. NRS 616C.175 is hereby amended to read as follows:

616C.175 1. [An employee is not entitled to compensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS if:

(a) He has] The resulting condition of an employee who:

(a) Has a preexisting condition from a cause or origin that did not arise out of or in the course of his current or past employment; and

(b) [He subsequently]Subsequently sustains an injury by accident arising out of and in the course of his employment which aggravates, precipitates or accelerates his preexisting condition,

shall be deemed to be an injury by accident that is compensable pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, unless [information from a physician or chiropractor establishes to the satisfaction of] the insurer can prove by a preponderance of the evidence that the subsequent injury is [the primary] not a substantial contributing cause of the resulting condition.

2. [An employee is not entitled to compensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS if:

(a) He sustains] The resulting condition of an employee who:

(a) Sustains an injury by accident arising out of and in the course of his employment; and

(b) [He subsequently]Subsequently aggravates, precipitates or accelerates the injury in a manner that does not arise out of and in the course of his employment,

shall be deemed to be an injury by accident that is compensable pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, unless the insurer can prove by a preponderance of the evidence that the injury described in paragraph (a) is [the primary] not a substantial contributing cause of the resulting condition.”.

Amend sec. 56, page 29, line 9, by deleting “under” and inserting:

“pursuant to the provisions of”.

Amend sec. 56, page 29, line 14, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 56, page 29, line 20, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 56, page 29, line 27, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 56, page 29, line 34, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 56, page 29, line 41, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 56, page 30, line 4, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 56, page 30, line 11, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 56, page 30, line 16, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 56, page 30, line 42, by deleting “under” and inserting “pursuant to”.

Amend sec. 56, page 31, line 3, after “dependents,” by inserting:

“or the attorney or representative of the injured employee or his dependents,”.

Amend sec. 56, page 31, line 15, by deleting “under” and inserting “pursuant to”.

Amend sec. 56, page 32, line 5, by deleting:

“For the purposes of calculating” and inserting “To calculate”.

Amend the bill as a whole by deleting sec. 57 and adding:

“Sec. 57. (Deleted by amendment.)”.

Amend the bill as a whole by adding new sections designated sections 57.2 and 57.4, following sec. 57, to read as follows:

“Sec. 57.2. NRS 616C.230 is hereby amended to read as follows:

616C.230 1. Compensation is not payable pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617of NRS for an injury:

(a) Caused by the employee’s willful intention to injure himself.

(b) Caused by the employee’s willful intention to injure another.

(c) Proximately caused by the employee’s intoxication. If the employee was intoxicated at the time of his injury, intoxication must be presumed to be a proximate cause unless rebutted by evidence to the contrary.

(d) Proximately caused by the employee’s use of a controlled substance. If the employee had any amount of a controlled substance in his system at the time of his injury for which the employee did not have a current and lawful prescription issued in his name, the controlled substance must be presumed to be a proximate cause unless rebutted by evidence to the contrary.

2. For the purposes of paragraphs (c) and (d) of subsection 1:

(a) The affidavit or declaration of an expert or other person described in NRS 50.315 is admissible to prove the existence of any alcohol or the existence, quantity or identity of a controlled substance in an employee’s system. If the affidavit or declaration is to be so used, it must be submitted in the manner prescribed in NRS 616C.355.

(b) When an examination requested or ordered includes testing for the use of alcohol or a controlled substance , [:

(1) If]the laboratory that conducts the testing [is located in a county whose population is 100,000 or more and the testing is of urine, the laboratory] must be [certified for forensic testing of urine for drugs by the College of American Pathologists or a successor organization or by the federal Department of Health and Human Services; and

(2) Any such testing of breath for alcohol must be performed pursuant to the regulations of the federal Department of Transportation.] licensed pursuant to the provisions of chapter 652 of NRS.

3. No compensation is payable for the death, disability or treatment of an employee if his death is caused by, or insofar as his disability is aggravated, caused or continued by, an unreasonable refusal or neglect to submit to or to follow any competent and reasonable surgical treatment or medical aid.

4. If any employee persists in an unsanitary or injurious practice that imperils or retards his recovery, or refuses to submit to such medical or surgical treatment as is necessary to promote his recovery, his compensation may be reduced or suspended.

5. An injured employee’s compensation, other than accident benefits, must be suspended if:

(a) A physician or chiropractor determines that the employee is unable to undergo treatment, testing or examination for the industrial injury solely because of a condition or injury that did not arise out of and in the course of his employment; and

(b) It is within the ability of the employee to correct the nonindustrial condition or injury.

The compensation must be suspended until the injured employee is able to resume treatment, testing or examination for the industrial injury. The insurer may elect to pay for the treatment of the nonindustrial condition or injury.

Sec. 57.4. NRS 616C.235 is hereby amended to read as follows:

616C.235 1. Except as otherwise provided in subsection 2:

(a) When the insurer determines that a claim should be closed before all benefits to which the claimant may be entitled have been paid, the insurer shall send a written notice of its intention to close the claim to the claimant by first-class mail addressed to the last known address of the claimant. The notice must include a statement that if the claimant does not agree with the determination, he has a right to request a resolution of the dispute pursuant to NRS 616C.305 and 616C.315 to 616C.385, inclusive. A suitable form for requesting a resolution of the dispute must be enclosed with the notice. The closure of a claim is not effective unless notice is given as required by this subsection.

(b) If the insurer does not receive a request for the resolution of the dispute, it may close the claim.

(c) Notwithstanding the provisions of NRS 233B.125, if a hearing is conducted to resolve the dispute, the decision of the hearing officer may be served by first-class mail.

2. If the medical benefits required to be paid for a claim are less than [$500, the claim closes automatically if the claimant] $300 and the injured employee does not receive medical treatment for the injury for [at least 12 months. The claimant may not appeal the closing of such a claim.]a 12-month period, the insurer may close the claim at any time after he sends, by first-class mail addressed to the last known address of the claimant, written notice that:

(a) The claim is being closed pursuant to subsection 2;

(b) The injured employee may appeal the closure of the claim pursuant to the provisions of NRS 616C.305 and 616C.315 to 616C.385, inclusive; and

(c) If the injured employee does not appeal the closure of the claim or appeals the closure of the claim but is not successful, the claim cannot be reopened.

The closure of a claim is not effective unless notice is given as required by this subsection.”.

Amend the bill as a whole by deleting sections 61 and 62 and adding:

“Secs. 61 and 62. (Deleted by amendment.)”.

Amend the bill as a whole by adding new sections designated sections 62.1 through 62.5, following sec. 62, to read as follows:

“Sec. 62.1. NRS 616C.330 is hereby amended to read as follows:

616C.330 1. The hearing officer shall:

(a) Within 5 days after receiving a request for a hearing, set the hearing for a date and time within 30 days after his receipt of the request;

(b) Give notice by mail or by personal service to all interested parties to the hearing at least 15 days before the date and time scheduled; and

2. The notice must include a statement that the injured employee may be represented by a private attorney or seek assistance and advice from the Nevada attorney for injured workers.

3. If necessary to resolve a medical question concerning an injured employee’s condition, the hearing officer may refer the employee to a physician or chiropractor chosen by the hearing officer. If the medical question concerns the rating of a permanent disability, the hearing officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians and chiropractors maintained by the administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any medical examination requested by the hearing officer.

4. If an injured employee has requested payment for the cost of obtaining a second determination of his percentage of disability pursuant to NRS 616C.100, the hearing officer shall decide whether the determination of the higher percentage of disability made pursuant to NRS 616C.100 is appropriate and, if so, may order the insurer to pay to the employee an amount equal to the maximum allowable fee established by the administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

5. The hearing officer may allow or forbid the presence of a court reporter and the use of a tape recorder in a hearing.

[5.] 6. The hearing officer shall render his decision within 15 days after:

(a) The hearing; or

(b) He receives a copy of the report from the medical examination he requested.

[6.] 7. The hearing officer shall render his decision in the most efficient format developed by the chief of the hearings division of the department of administration.

[7.] 8. The hearing officer shall give notice of his decision to each party by mail. He shall include with the notice of his decision the necessary forms for appealing from the decision.

[8.] 9. Except as otherwise provided in NRS 616C.380, the decision of the hearing officer is not stayed if an appeal from that decision is taken unless an application for a stay is submitted by a party. If such an application is submitted, the decision is automatically stayed until a determination is made on the application. A determination on the application must be made within 30 days after the filing of the application. If, after reviewing the application, a stay is not granted by the hearing officer or an appeals officer, the decision must be complied with within 10 days after the refusal to grant a stay.

Sec. 62.2. NRS 616C.360 is hereby amended to read as follows:

616C.360 1. A stenographic or electronic record must be kept of the hearing before the appeals officer and the rules of evidence applicable to contested cases under chapter 233B of NRS apply to the hearing.

2. The appeals officer must hear any matter raised before him on its merits, including new evidence bearing on the matter.

3. If necessary to resolve a medical question concerning an injured employee’s condition, the appeals officer may refer the employee to a physician or chiropractor chosen by the appeals officer. If the medical question concerns the rating of a permanent disability, the appeals officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians or chiropractors maintained by the administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and the injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any examination requested by the appeals officer.

4. If an injured employee has requested payment for the cost of obtaining a second determination of his percentage of disability pursuant to NRS 616C.100, the appeals officer shall decide whether the determination of the higher percentage of disability made pursuant to NRS 616C.100 is appropriate and, if so, may order the insurer to pay to the employee an amount equal to the maximum allowable fee established by the administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

5. Any party to the appeal or the appeals officer may order a transcript of the record of the hearing at any time before the seventh day after the hearing. The transcript must be filed within 30 days after the date of the order unless the appeals officer otherwise orders.

[5.] 6. The appeals officer shall render his decision:

(a) If a transcript is ordered within 7 days after the hearing, within 30 days after the transcript is filed; or

(b) If a transcript has not been ordered, within 30 days after the date of the hearing.

[6.] 7. The appeals officer may affirm, modify or reverse any decision made by the hearing officer and issue any necessary and proper order to give effect to his decision.

Sec. 62.3. NRS 616C.390 is hereby amended to read as follows:

616C.390 1. If an application to reopen a claim to increase or rearrange compensation is made in writing more than 1 year after the date on which the claim was closed, the insurer shall reopen the claim if:

(a) A change of circumstances warrants an increase or rearrangement of compensation during the life of the claimant;

(b) The primary cause of the change of circumstances is the injury for which the claim was originally made; and

(c) The application is accompanied by the certificate of a physician or a chiropractor showing a change of circumstances which would warrant an increase or rearrangement of compensation.

2. After a claim has been closed, the insurer, upon receiving an application and for good cause shown, may authorize the reopening of the claim for medical investigation only. The application must be accompanied by a written request for treatment from the physician or chiropractor treating the claimant, certifying that the treatment is indicated by a change in circumstances and is related to the industrial injury sustained by the claimant.

3. If a claimant applies for a claim to be reopened pursuant to subsection 1 or 2 and a final determination denying the reopening is issued, the claimant shall not reapply to reopen the claim until at least 1 year after the date on which the final determination is issued.

4. Except as otherwise provided in subsection 5, if an application to reopen a claim is made in writing within 1 year after the date on which the claim was closed, the insurer shall reopen the claim only if:

(a) The application is supported by medical evidence demonstrating an objective change in the medical condition of the claimant; and

(b) There is clear and convincing evidence that the primary cause of the change of circumstances is the injury for which the claim was originally made.

5. An application to reopen a claim must be made in writing within 1 year after the date on which the claim was closed if:

(a) The claimant was not off work as a result of the injury; and

(b) The claimant did not receive benefits for a permanent partial disability.

If an application to reopen a claim to increase or rearrange compensation is made pursuant to this subsection, the insurer shall reopen the claim if the requirements set forth in paragraphs (a), (b) and (c) of subsection 1 are met.

6. If an employee’s claim is reopened pursuant to this section, he is not entitled to vocational rehabilitation services or benefits for a temporary total disability if, before his claim was reopened, he:

(a) Retired; or

(b) Otherwise voluntarily removed himself from the work force,

for reasons unrelated to the injury for which the claim was originally made.

7. One year after the date on which the claim was closed, an insurer may dispose of the file of a claim authorized to be reopened pursuant to subsection 5, unless an application to reopen the claim has been filed pursuant to that subsection.

8. An increase or rearrangement of compensation is not effective before an application for reopening a claim is made unless good cause is shown. The insurer shall, upon good cause shown, allow the cost of emergency treatment the necessity for which has been certified by a physician or a chiropractor.

9. A claim that [automatically] closes pursuant to subsection 2 of NRS 616C.235 and is not appealed or is unsuccessfully appealed pursuant to the provisions of NRS 616C.305 and 616C.315 to 616C.385, inclusive, may not be reopened pursuant to this section.

10. The provisions of this section apply to any claim for which an application to reopen the claim or to increase or rearrange compensation is made pursuant to this section, regardless of the date of the injury or accident to the claimant. If a claim is reopened pursuant to this section, the amount of any compensation or benefits provided must be determined in accordance with the provisions of NRS 616C.425.

Sec. 62.4. NRS 616C.440 is hereby amended to read as follows:

616C.440 1. Except as otherwise provided in this section and NRS 616C.175, every employee in the employ of an employer, within the provisions of chapters 616A to 616D, inclusive, of NRS, who is injured by accident arising out of and in the course of employment, or his dependents as defined in chapters 616A to 616D, inclusive, of NRS, is entitled to receive the following compensation for permanent total disability:

(a) In cases of total disability adjudged to be permanent, compensation per month of 66 2/3 percent of the average monthly wage.

(b) If there is a previous disability, as the loss of one eye, one hand, one foot or any other previous permanent disability, the percentage of disability for a subsequent injury must be determined by computing the percentage of the entire disability and deducting therefrom the percentage of the previous disability as it existed at the time of the subsequent injury, but such a deduction for a previous award for permanent partial disability must be made in a reasonable manner and must not be more than the total amount which was paid for the previous award for permanent partial disability.

(c) If the character of the injury is such as to render the employee so physically helpless as to require the service of a constant attendant, an additional allowance may be made so long as such requirements continue, but the allowance may not be made while the employee is receiving benefits for care in a hospital or facility for intermediate care pursuant to the provisions of NRS [616C.255 and] 616C.265.

2. Except as otherwise provided in NRS 616B.185 and 616B.186, an injured employee or his dependents are not entitled to accrue or be paid any benefits for a permanent total disability during the time the injured employee is incarcerated. The injured employee or his dependents are entitled to receive such benefits when the injured employee is released from incarceration if he is certified as permanently totally disabled by a physician or chiropractor.

3. An employee is entitled to receive compensation for a permanent total disability only so long as the permanent total disability continues to exist. The insurer has the burden of proving that the permanent total disability no longer exists.

4. If an employee who has received compensation in a lump sum for a permanent partial disability pursuant to NRS 616C.495 is subsequently determined to be permanently and totally disabled, the compensation for the permanent total disability must be reduced as follows:

(a) If the employee has not received a minimum lump sum, the [employee’s] insurer of the employee’s employer shall deduct from the compensation for the permanent total disability an amount equal to the monthly installment rate for awards for permanent partial disability until the [employee reaches the age upon which his disability was calculated;] insurer has deducted an amount that equals the amount it has already paid out as a lump sum; or

(b) If the employee received a minimum lump sum, the [employee’s] insurer of the employee’s employer shall deduct from the compensation for the permanent total disability an amount of not more than 10 percent of the rate of compensation for a permanent total disability until the lump sum is recovered.

The provisions of this subsection are retroactive for all claims for compensation for a permanent total disability remaining open on [July 1, 1995.]January 1, 2000.

Sec. 62.5. NRS 616C.475 is hereby amended to read as follows:

616C.475 1. Except as otherwise provided in this section, NRS 616C.175 and 616C.390, every employee in the employ of an employer, within the provisions of chapters 616A to 616D, inclusive, of NRS, who is injured by accident arising out of and in the course of employment, or his dependents, is entitled to receive for the period of temporary total disability, 66 2/3 percent of the average monthly wage.

2. Except as otherwise provided in NRS 616B.185 and 616B.186, an injured employee or his dependents are not entitled to accrue or be paid any benefits for a temporary total disability during the time the injured employee is incarcerated. The injured employee or his dependents are entitled to receive such benefits when the injured employee is released from incarceration if he is certified as temporarily totally disabled by a physician or chiropractor.

3. If a claim for the period of temporary total disability is allowed, the first payment pursuant to this section must be issued by the insurer within 14 working days after receipt of the initial certification of disability and regularly thereafter.

4. Any increase in compensation and benefits effected by the amendment of subsection 1 is not retroactive.

5. Payments for a temporary total disability must cease when:

(a) A physician or chiropractor determines that the employee is physically capable of any gainful employment for which the employee is suited, after giving consideration to the employee’s education, training and experience;

(b) The employer offers the employee light-duty employment or employment that is modified according to the limitations or restrictions imposed by a physician or chiropractor pursuant to subsection 7; or

6. Each insurer may, with each check that it issues to an injured employee for a temporary total disability, include a form approved by the division for the injured employee to request continued compensation for the temporary total disability.

7. A certification of disability issued by a physician or chiropractor must:

(a) Include the period of disability and a description of any physical limitations or restrictions imposed upon the work of the employee;

(b) Specify whether the limitations or restrictions are permanent or temporary; and

8. If certification of disability specifies that the physical limitations or restrictions are temporary, the employer of the employee at the time of his accident is not required to comply with NRS 616C.545 to 616C.575, inclusive, and 616C.590 or the regulations adopted by the division governing vocational rehabilitation services if the employer offers the employee a position that [is] :

(a) Is substantially similar to the employee’s position at the time of his injury in relation to the location of the employment[,] and the hours he is required to work ; and [the salary he will be paid.]

(b) Provides a gross wage that is:

(1) If the position is in the same classification of employment, equal to the gross wage the employee was earning at the time of his injury; or

(2) If the position is not in the same classification of employment, substantially similar to the gross wage the employee was earning at the time of his injury.”.

Amend sec. 63, page 37, by deleting lines 32 through 34 and inserting:

“employee a position that:

(a) Issubstantially similar to the employee’s position at the time of his injury in relation to the location of the employment andthe hours he is required to work; and

(b) Provides a gross wage that is:

(1) If the position is in the same classification of employment, equal to the gross wage the employee was earning at the time of his injury; or

(2) If the position is not in the same classification of employment, substantially similar to the gross wage the employee was earning at the time of his injury.”.

Amend the bill as a whole by deleting sections 64 through 68 and adding:

“Secs. 64-68. (Deleted by amendment.)”.

Amend the bill as a whole by adding new sections designated sections 68.2 through 68.8, following sec. 68, to read as follows:

“Sec. 68.2. NRS 616C.490 is hereby amended to read as follows:

616C.490 1. Except as otherwise provided in NRS 616C.175, every employee, in the employ of an employer within the provisions of chapters 616A to 616D, inclusive, of NRS, who is injured by an accident arising out of and in the course of employment is entitled to receive the compensation provided for permanent partial disability. As used in this section, “disability” and “impairment of the whole man” are equivalent terms.

2. Within 30 days after receiving from a physician or chiropractor a report indicating that the injured employee may have suffered a permanent disability and is stable and ratable, the insurer shall schedule an appointment with [a] the rating physician or chiropractor selected pursuant to this subsection to determine the extent of the employee’s disability. Unless the insurer and the injured employee otherwise agree to a rating physician or chiropractor:

(a) The insurer shall select [a] the rating physician or chiropractor from [a group]the list of qualified rating physicians and chiropractors designated by the administrator, to determine the percentage of disability in accordance with the American Medical Association’s Guides to the Evaluation of Permanent Impairment as adopted and supplemented by the division pursuant to NRS 616C.110.

(b) Rating physicians and chiropractors must be selected in rotation from the list of qualified physicians and chiropractors designated by the administrator, according to their area of specialization and the order in which their names appear on the list.

3. At the request of the insurer, the injured employee shall, before an evaluation by a rating physician or chiropractor is performed, notify the insurer of:

(a) Any previous evaluations performed to determine the extent of any of the employee’s disabilities; and

(b) Any previous injury, disease or condition sustained by the employee which is relevant to the evaluation performed pursuant to this section.

The notice must be on a form approved by the administrator and provided to the injured employee by the insurer at the time of the insurer’s request.

4. Unless the regulations adopted pursuant to NRS 616C.110 provide otherwise, a rating evaluation must include an evaluation of the loss of motion, sensation and strength of an injured employee if the injury is of a type that might have caused such a loss. No factors other than the degree of physical impairment of the whole man may be considered in calculating the entitlement to compensation for a permanent partial disability.

5. The rating physician or chiropractor shall provide the insurer with his evaluation of the injured employee. After receiving the evaluation, the insurer shall, within 14 days, provide the employee with a copy of the evaluation and notify the employee:

(a) Of the compensation to which he is entitled pursuant to this section; or

(b) That he is not entitled to benefits for permanent partial disability.

6. Each 1 percent of impairment of the whole man must be compensated by a monthly payment:

(a) Of 0.5 percent of the claimant’s average monthly wage for injuries sustained before July 1, 1981;

(b) Of 0.6 percent of the claimant’s average monthly wage for injuries sustained on or after July 1, 1981, and before June 18, 1993; [and]

(c) Of 0.54 percent of the claimant’s average monthly wage for injuries sustained on or after June 18, 1993[.] , and before January 1, 2000; and

(d) Of 0.6 percent of the claimant’s average monthly wage for injuries sustained on or after January 1, 2000.

Compensation must commence on the date of the injury or the day following the termination of temporary disability compensation, if any, whichever is later, and must continue on a monthly basis for 5 years or until the claimant is 70 years of age, whichever is later.

7. Compensation benefits may be paid annually to claimants who will be receiving less than $100 a month.

8. Where there is a previous disability, as the loss of one eye, one hand, one foot, or any other previous permanent disability, the percentage of disability for a subsequent injury must be determined by computing the percentage of the entire disability and deducting therefrom the percentage of the previous disability as it existed at the time of the subsequent injury.

9. The division may adopt schedules for rating permanent disabilities resulting from injuries sustained before July 1, 1973, and reasonable regulations to carry out the provisions of this section.

10. The increase in compensation and benefits effected by the amendment of this section is not retroactive for accidents which occurred before July 1, 1973.

11. This section does not entitle any person to double payments for the death of an employee and a continuation of payments for a permanent partial disability, or to a greater sum in the aggregate than if the injury had been fatal.

Sec. 68.4. NRS 616C.555 is hereby amended to read as follows:

616C.555 1. A vocational rehabilitation counselor shall develop a plan for a program of vocational rehabilitation for each injured employee who is eligible for vocational rehabilitation services pursuant to NRS 616C.590. The counselor shall work with the insurer and the injured employee to develop a program that is compatible with the injured employee’s age, sex and physical condition.

2. If the counselor determined in the written assessment developed pursuant to NRS 616C.550 that the injured employee has existing marketable skills, the plan must consist of job placement assistance only. When practicable, the goal of job placement assistance must be to aid the employee in finding a position which pays a gross wage that is equal to or greater than 80 percent of the gross wage that he was earning at the time of his injury. An injured employee must not receive job placement assistance for more than [90 days] 6 months after the date on which he was notified that he is eligible only for job placement assistance because:

(a) He was physically capable of returning to work; or

(b) It was determined that he had existing marketable skills.

3. If the counselor determined in the written assessment developed pursuant to NRS 616C.550 that the injured employee does not have existing marketable skills, the plan must consist of a program which trains or educates the injured employee and provides job placement assistance. Except as otherwise provided in NRS 616C.560, such a program must not exceed:

(a) If the injured employee has incurred a permanent physical impairment of less than 6 percent, [6] 9 months.

(b) If the injured employee has incurred a permanent physical impairment of 6 percent or more, but less than 11 percent, [9 months.] 1 year.

The percentage of the injured employee’s permanent physical impairment must be determined pursuant to NRS 616C.490.

4. A plan for a program of vocational rehabilitation must comply with the requirements set forth in NRS 616C.585.

5. A program of vocational rehabilitation must not commence before the treating physician or chiropractor, or an examining physician or chiropractor determines that the injured employee is capable of safely participating in the program.

6. If, based upon the opinion of a treating or an examining physician or chiropractor, the counselor determines that an injured employee is not eligible for vocational rehabilitation services, the counselor shall provide a copy of the opinion to the injured employee, the injured employee’s employer and the insurer.

7. A plan for a program of vocational rehabilitation must be signed by a certified vocational rehabilitation counselor.

8. If an initial program of vocational rehabilitation pursuant to this section is unsuccessful, an injured employee may submit a written request for the development of a second program of vocational rehabilitation which relates to the same injury. An insurer shall authorize a second program for an injured employee upon good cause shown.

9. If a second program of vocational rehabilitation pursuant to subsection 8 is unsuccessful, an injured employee may submit a written request for the development of a third program of vocational rehabilitation which relates to the same injury. The insurer, with the approval of the employer who was the injured employee’s employer at the time of his injury, may authorize a third program for the injured employee. If such an employer has terminated operations, his approval is not required for authorization of a third program. An insurer’s determination to authorize or deny a third program of vocational rehabilitation may not be appealed.

10. The division shall adopt regulations to carry out the provisions of this section. The regulations must specify the contents of a plan for a program of vocational rehabilitation.

Sec. 68.5. NRS 616C.560 is hereby amended to read as follows:

616C.560 1. A program for vocational rehabilitation developed pursuant to subsection 3 of NRS 616C.555 may be extended:

(a) Without condition or limitation, by the insurer at his sole discretion; or

(b) In accordance with this section if:

(1) The injured employee makes a written request to extend the program within 30 days after he receives written notification that he is eligible for vocational rehabilitation services; and

(2) There are exceptional circumstances which make it unlikely that the injured employee will obtain suitable gainful employment as a result of vocational rehabilitation which is limited to the period for which he is eligible.

An insurer’s determination to grant or deny an extension pursuant to paragraph (a) may not be appealed.

2. If an injured employee has incurred a permanent physical impairment of less than 11 percent:

(a) The total length of the program, including any extension, must not exceed [1 year.] 2 years.

(b) “Exceptional circumstances” shall be deemed to exist for the purposes of paragraph (b) of subsection 1, if:

(1) The injured employee lacks work experience, training, education or other transferable skills for an occupation which he is physically capable of performing; or

(2) Severe physical restrictions as a result of the industrial injury have been imposed by a physician which significantly limit the employee’s occupational opportunities.

3. If an injured employee has incurred a permanent physical impairment of 11 percent or more:

(a) The total length of the program, including any extension, must not exceed [2] 2 1/2 years.

(b) “Exceptional circumstances” shall be deemed to exist for the purposes of paragraph (b) of subsection 1, if the injured employee has suffered:

(1) The total and permanent loss of sight of both eyes;

(2) The loss by separation of a leg at or above the knee;

(3) The loss by separation of a hand at or above the wrist;

(4) An injury to the head or spine which results in permanent and complete paralysis of both legs, both arms or a leg and an arm;

(5) An injury to the head which results in a severe cognitive functional impairment which may be established by a nationally recognized form of objective psychological testing;

(6) The loss by separation of an arm at or above the elbow and the loss by separation of a leg at or above the knee;

(7) An injury consisting of second or third degree burns on 50 percent or more of the body, both hands or the face;

(8) A total bilateral loss of hearing;

(9) The total loss or significant and permanent impairment of speech; or

(10) A permanent physical impairment of 50 percent or more determined pursuant to NRS 616C.490, if the severity of the impairment limits the injured employee’s gainful employment to vocations that are primarily intellectual and require a longer program of education.

4. The insurer shall deliver a copy of its decision granting or denying an extension to the injured employee and the employer. Except as otherwise provided in this section, the decision shall be deemed to be a final determination of the insurer for the purposes of NRS 616C.315.

Sec. 68.7. NRS 616C.580 is hereby amended to read as follows:

616C.580 1. [Vocational]Except as otherwise provided in this section, vocational rehabilitation services must not be provided outside of this state. An injured employee who:

(a) Lives within 50 miles from any border of this state on the date of injury; or

(b) Was injured while temporarily employed in this state by an employer subject to the provisions of chapters 616A to 617, inclusive, of NRS who can demonstrate that, on the date of injury, his permanent residence was outside of this state,

may receive vocational rehabilitation services at a location within 50 miles from his residence if such services are available at such location.

2. An injured employee, who:

(a) Is eligible for vocational rehabilitation services pursuant to NRS 616C.590; and

(b) Resides outside of this state[,] but does not qualify to receive vocational rehabilitation services outside of this state pursuant to subsection 1,

may execute a written agreement with the insurer which provides for the payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services pursuant to NRS 616C.595. The amount of the lump sum must not exceed $15,000.

3. An injured employee who resides outside of this state but does not qualify to receive vocational rehabilitation services outside of this state pursuant to subsection 1 may receive the vocational rehabilitation services to which he is entitled pursuant to NRS 616C.545 to 616C.575, inclusive, and 616C.590 if he relocates to [this] :

(a) This state ; or

(b) A location within 50 miles from any border of this state,

at his own expense[.] , if such services are available at such location.

Sec. 68.8. 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;

(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;

(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] The provisions of this section [authorizes] do not authorize 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.

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] that is not less than $5,000 and not greater than $25,000. To determine the amount of the benefit penalty, the administrator shall consider the degree of physical harm suffered by the injured employee or his dependents as a result of the violation of paragraph (a), (b), (c) or (d) of subsection 1, the amount of compensation found to be due the claimant and the number of fines and benefit penalties previously imposed against the insurer, organization for managed care, health care provider, third-party administrator or employer pursuant to this section. If this is the third violation within 5 years for which a fine or benefit penalty has been imposed against the insurer, organization for managed care, health care provider, third-party administrator or employer, the administrator shall also consider the degree of economic and physical harm suffered by the insured employee or his dependents as a result of the violation of paragraph (a), (b), (c) or (d) of subsection 1. Except as otherwise provided in this section, 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. If the claimant is the injured employee and he dies before the benefit penalty is paid to him, the benefit penalty must be paid to his estate. 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:

(a) The administrator determines that 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; and

(b) The fraud control unit for industrial insurance established pursuant to NRS 228.420 notifies the administrator that the unit will not prosecute the person for that violation,

the administrator shall 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.

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.”.

Amend sec. 69, page 40, line 7, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 69, page 40, line 10, by deleting:

“[to the system]” and inserting:

“to [the system or] a private carrier”.

Amend sec. 69, page 40, line 11, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 69, page 40, by deleting lines 15 through 19 and inserting:

“not to exceed 6 years; and

(b) Interest at a rate determined pursuant to NRS 17.130 computed from the time that the premiums should have been paid.

The money collected pursuant to this subsection must be paid into the uninsured employers’ claim fund.”.

Amend sec. 69, page 40, by deleting lines 26 through 31 and inserting:

“chapters 616A to 616D, inclusive, or chapter 617of NRS, shall be punished as follows:

(a) Except as otherwise provided in paragraph (b), if it is a first offense, for a misdemeanor.

(b) If it is a first offense and, during the period the employer was doing business in this state without providing, securing or maintaining compensation, one of his employees suffers an injury arising out of and in the course of his employment that results in substantial bodily harm to the employee or the death of the employee, for a category C felony punishable by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 5 years and by a fine of not less than $1,000 nor more than $50,000.

(c) If it is a second or subsequent offense committed within 7 years after the previous offense, for a category C felony punishable by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 5 years and by a fine of not less than $1,000 nor more than $50,000.

4. In addition to any other penalty imposed pursuant to paragraph (b) or (c) of subsection 3, the court shall order the employer to:

(a) Pay restitution to an insurer who has incurred costs as a result of the violation in an amount equal to the costs that have been incurred minus any costs incurred that have otherwise been recovered; and

(b) Reimburse the uninsured employers’ claim fund for all payments made from the fund on the employer’s behalf, including any benefits, administrative costs or attorney’s fees paid from the fund, that have not otherwise been recovered pursuant to NRS 616C.220.

5. Any criminal penalty imposed pursuant to subsections 3 and 4 must be in addition to the amount charged”.

Amend sec. 70, page 40, line 36, by deleting “premium” and inserting:

“premium, interest or penalty”.

Amend sec. 70, page 41, line 5, by deleting:

“[system or] private”.

Amend sec. 70, page 41, by deleting line 6 and inserting:

“prior insurer have been paid to that insurer.”.

Amend the bill as a whole by deleting sec. 80 and adding:

“Sec. 80. (Deleted by amendment.)”.

Amend the bill as a whole by adding a new section designated sec. 80.5, following sec. 80, to read as follows:

“Sec. 80.5. NRS 617.366 is hereby amended to read as follows:

617.366 1. [An employee is not entitled to compensation pursuant to the provisions of this chapter if:

(a) He has] The resulting condition of an employee who:

(a) Has a preexisting condition from a cause or origin that did not arise out of and in the course of his current or past employment; and

(b) [He subsequently]Subsequently contracts an occupational disease which aggravates, precipitates or accelerates his preexisting condition,

shall be deemed to be an occupational disease that is compensable pursuant to the provisions of chapters 616A to 616D, inclusive, and chapter 617 of NRS, unless [information from a physician or chiropractor establishes to the satisfaction of] the insurer can prove by a preponderance of the evidence that the occupational disease is [the primary] not a substantial contributing cause of the resulting condition.

2. [An employee is not entitled to compensation pursuant to the provisions of this chapter if:

(a) He contracts] The resulting condition of an employee who:

(a) Contracts an occupational disease; and

(b) [He subsequently]Subsequently aggravates, precipitates or accelerates the occupational disease in a manner that does not arise out of and in the course of his employment,

shall be deemed to be an occupational disease that is compensable pursuant to the provisions of chapters 616A to 616D, inclusive, and chapter 617 of NRS, unless the insurer can prove by a preponderance of the evidence that the occupational disease is [the primary]not a substantial contributing cause of the resulting condition.”.

Amend the bill as a whole by deleting sec. 82 and adding:

“Sec. 82. (Deleted by amendment.)”.

Amend the bill as a whole by adding new sections designated sections 86.1 through 86.9, following sec. 86, to read as follows:

“Sec. 86.1. Chapter 223 of NRS is hereby amended by adding thereto the provisions set forth as sections 86.2 to 86.9, inclusive, of this act.

Sec. 86.2. As used in sections 86.2 to 86.9, inclusive, of this act, unless the context otherwise requires:

1. “Consumer” means a natural person who has or is in need of coverage under a health care plan.

2. “Director” means the director of the office for consumer health assistance appointed pursuant to section 86.6 of this act.

3. “Health care plan” means a policy, contract, certificate or agreement offered or issued to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services.

Sec. 86.4. The provisions of NRS 223.085 do not apply to the provisions of sections 86.2 to 86.9, inclusive, of this act.

Sec. 86.6. 1. The office for consumer health assistance is hereby established in the office of the governor. The governor shall appoint the director. The director must:

(a) Be:

(1) A physician, as that term is defined in NRS 0.040;

(2) A registered nurse, as that term is defined in NRS 632.019;

(3) An advanced practitioner of nursing, as that term is defined in NRS 453.023; or

(4) A physician’s assistant, as that term is defined in NRS 630.015; and

(b) Have expertise and experience in the field of advocacy.

2. The cost of carrying out the provisions of sections 86.2 to 86.9, inclusive, of this act must be paid as follows:

(a) That portion of the cost related to providing assistance to consumers and injured employees concerning workers’ compensation must be paid from the assessments levied pursuant to NRS 232.680.

(b) The remaining cost must be provided by direct legislative appropriation from the state general fund and be paid out on claims as other claims against the state are paid.

Sec. 86.7. The director shall:

1. Respond to written and telephonic inquiries received from consumers and injured employees regarding concerns and problems related to health care and workers’ compensation;

2. Assist consumers and injured employees in understanding their rights and responsibilities under health care plans and policies of industrial insurance;

3. Identify and investigate complaints of consumers and injured employees regarding their health care plans and policies of industrial insurance and assist those consumers and injured employees to resolve their complaints, including, without limitation:

(a) Referring consumers and injured employees to the appropriate agency, department or other entity that is responsible for addressing the specific complaint of the consumer or injured employee; and

(b) Providing counseling and assistance to consumers and injured employees concerning health care plans and policies of industrial insurance;

4. Provide information to consumers and injured employees concerning health care plans and policies of industrial insurance in this state;

5. Establish and maintain a system to collect and maintain information pertaining to the written and telephonic inquiries received by the office;

6. Take such actions as are necessary to ensure public awareness of the existence and purpose of the services provided by the director pursuant to this section; and

7. In appropriate cases and pursuant to the direction of the governor, refer a complaint or the results of an investigation to the attorney general for further action.

Sec. 86.8. 1. The director may:

(a) Within the limits of available money, employ:

(1) Such persons in the unclassified service of the state as he determines to be necessary to carry out the provisions of sections 86.2 to 86.9, inclusive, of this act, including, without limitation, a provider of health care, as that term is defined in NRS 449.581.

(2) Such additional personnel as may be required to carry out the provisions of sections 86.2 to 86.9, inclusive, of this act, who must be in the classified service of the state.

A person employed pursuant to the authority set forth in this subsection must be qualified by training and experience to perform the duties for which the director employs him.

(b) To the extent not otherwise prohibited by law, obtain such information from consumers, injured employees, health care plans and policies of industrial insurance as he determines to be necessary to carry out the provisions of sections 86.2 to 86.9, inclusive, of this act.

(c) Adopt such regulations as he determines to be necessary to carry out the provisions of sections 86.2 to 86.9, inclusive, of this act.

2. The director and his employees shall not have any conflict of interest relating to the performance of their duties pursuant to sections 86.2 to 86.9, inclusive, of this act. For the purposes of this subsection, a conflict of interest shall be deemed to exist if the director or employee, or any person affiliated with the director or employee:

(a) Has direct involvement in the licensing, certification or accreditation of a health care facility, insurer or provider of health care;

(b) Has a direct ownership interest or investment interest in a health care facility, insurer or provider of health care;

(d) Receives or has the right to receive, directly or indirectly, remuneration pursuant to any arrangement for compensation with a health care facility, insurer or provider of health care.

Sec. 86.9. On or before February 1 of each year, the director shall submit a written report to the governor, and to the director of the legislative counsel bureau for transmittal to the appropriate committee or committees of the legislature. The report must include, without limitation:

1. A statement setting forth the number and geographic origin of the written and telephonic inquiries received by the office and the issues to which those inquiries were related;

2. A statement setting forth the type of assistance provided to each consumer and injured employee who sought assistance from the director, including, without limitation, the number of referrals made to the attorney general pursuant to subsection 7 of section 86.7 of this act; and

3. A statement setting forth the disposition of each inquiry and complaint received by the director.”.

Amend sec. 89, page 52, line 1, after “218.5375,” by inserting:

“and that portion of the cost of the office for consumer heath assistance established pursuant to section 86.6 of this act that is related to providing assistance to consumers and injured employees concerning workers’ compensation,”.

Amend sec. 89, page 52, between lines 39 and 40, by inserting:

“(g) That portion of the salaries and other expenses of the office for consumer health assistance established pursuant to section 86.6 of this act that is related to providing assistance to consumers and injured employees concerning workers’ compensation.”.

Amend sec. 90, page 53, by deleting lines 5 through 17 and inserting:

“chapter, and the department shall provide those services and the use of that equipment as may be mutually agreed:

(a) The court administrator;

(b) The department of motor vehicles and public safety;

(d) The employment security division of the department of employment, training and rehabilitation;

(e) The division of wildlife of the state department of conservation and natural resources;

(f) The legislative counsel bureau;

(g) [~~The state industrial insurance system;~~

(h)]The state controller;

[~~(i)]~~ (h) The state gaming control board and Nevada gaming commission; and

[~~(j)]~~ (i) The University and Community College System of Nevada.”.

Amend sec. 91, page 54, line 2, after “inclusive,” by inserting:

“and chapter 617”.

Amend sec. 91, page 54, line 8, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 92, page 54, line 29, after “inclusive,” by inserting:

“and chapter 617”.

Amend sec. 92, page 54, line 35, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 92, page 55, line 6, by deleting the comma.

Amend the bill as a whole by adding a new section designated sec. 96.5, following sec. 96, to read as follows:

“Sec. 96.5. NRS 284.140 is hereby amended to read as follows:

284.140 The unclassified service of the state consists of positions held by state officers or employees in the executive department of the state government as follows:

1. Persons chosen by election or appointment to fill an elective office.

2. Members of boards and commissions, and heads of departments, agencies and institutions required by law to be appointed.

3. At the discretion of the elective officer or head of each department, agency or institution, one deputy and one chief assistant in each department, agency or institution.

4. [All]Except as otherwise provided in section 86.8 of this act, all employees in the office of the governor and all persons required by law to be appointed by the governor or heads of departments or agencies appointed by the governor or by boards.

5. All employees other than clerical in the office of the attorney general and the state public defender required by law to be appointed by the attorney general or the state public defender.

6. Except as otherwise provided by the board of regents of the University of Nevada pursuant to NRS 396.251, officers and members of the teaching staff and the staffs of the agricultural extension department and experiment station of the University and Community College System of Nevada, or any other state institution of learning, and student employees of these institutions. Custodial, clerical or maintenance employees of these institutions are in the classified service. The board of regents of the University of Nevada shall assist the director in carrying out the provisions of this chapter applicable to the University and Community College System of Nevada.

7. Officers and members of the Nevada National Guard.

8. Persons engaged in public work for the state but employed by contractors when the performance of the contract is authorized by the legislature or another competent authority.

9. Patient and inmate help in state charitable, penal, mental and correctional institutions.

10. Part-time professional personnel who are paid for any form of medical, nursing or other professional service and who are not engaged in the performance of administrative or substantially recurring duties.

11. All other officers and employees authorized by law to be employed in the unclassified service.”.

Amend sec. 97, page 57, line 40, after “contractors.” by inserting:

“Except as otherwise provided by specific statute, each contract for services must be awarded pursuant to the provisions of chapter 333 of NRS.”.

Amend sec. 98, page 59, by deleting lines 29 through 33 and inserting:

“3. “Invitation to bid” means a written statement which sets forth the requirements and specifications of a contract to be awarded by competitive selection.

4. “Proprietary information” means:

(a) Any trade secret or confidential business information that is contained in a bid or proposal submitted on a particular contract; or

(b) Any other trade secret or confidential business information submitted in a bid or proposal and designated as proprietary by the chief.”.

Amend sec. 98, page 59, line 39, by deleting “4.” and inserting “5.”.

Amend sec. 98, page 59, line 41, by deleting “5.” and inserting “6.”.

Amend sec. 98, page 60, by deleting line 3 and inserting:

“7. “Request for proposals” means a written statement which sets forth the”.

Amend sec. 98, page 60, line 6, by deleting “7.” and inserting “8.”.

Amend sec. 98, page 60, line 7, by deleting “8.” and inserting “9.”.

Amend sec. 98, page 60, line 12, by deleting “sources, except” and inserting:

“sources. The term does not include”.

Amend sec. 98, page 60, line 16, by deleting “9.” and inserting “10.”

Amend sec. 98, page 60, line 18, after “inclusive,” and inserting:

“or chapter 617”.

Amend sec. 105, page 64, line 30, after “Association,” by inserting:

“the Government National Mortgage Association,”.

Amend sec. 105, page 64, line 42, by deleting “and above”.

Amend sec. 105, page 65, lines 28 and 29, by deleting:

“banks or insured” and inserting:

“banks, insured credit unions or”.

Amend sec. 105, page 66, line 13, by deleting “3” and inserting “5”.

Amend sec. 105, page 66, line 26, by deleting “and”.

Amend sec. 105, page 66, line 28, by deleting “equivalent.” and inserting:

“equivalent; and

(s) Asset-backed securities that are rated by a nationally recognized rating service as “AAA” or its equivalent.”.

Amend sec. 105, page 67, line 9, by deleting “into” and inserting “into”.

Amend sec. 111, page 70, line 34, after “inclusive,” by inserting:

“or chapter 617”.

Amend sec. 111, page 70, line 35, by deleting “carrier and” and inserting:

“carrier and, if”.

Amend sec. 116, page 72, lines 29 and 30, by deleting:

“office, as defined in subsection 2,” and inserting “office”.

Amend sec. 116, page 72, line 41, by deleting:

“For the purposes of” and inserting:

“As used in”.

Amend sec. 116, page 73, by deleting line 3 and inserting:

“3. The insurer shall, on or before March 15 of each year, furnish proof to”.

Amend sec. 126, page 79, by deleting lines 9 through 19 and inserting:

“696B.360 1. Except as otherwise provided in this section:

(a) The money collected by the commissioner in a proceeding under this chapter must be from time to time deposited in one or more state or national banks, savings banks, credit unions or trust companies, and in the case of the insolvency or voluntary or involuntary liquidation of any such depositary which is an institution organized and supervised under the laws of this state, such deposits are entitled to priority of payment on an equality with any other priority given by the banking laws of this state.

[~~2.]~~ (b) The commissioner may [~~in his discretion]~~ deposit the money or any part thereof in a national bank, credit union or trust company as a trust”.

Amend the bill as a whole by adding new sections designated sections 126.3 and 126.5, following sec. 126, to read as follows:

“Sec. 126.3. Section 2 of Senate Bill No. 351 of this session is hereby amended to read as follows:

Sec. 2. NRS 683A.100 is hereby amended to read as follows:

683A.100 In addition to persons excluded by the terms thereof, the definitions of an agent, broker, solicitor or managing general agent [shallnot be deemed to] do not include any of the following:

1. Salaried employees rendering solely clerical and administrative services in the office of the employer.

2. Salaried administrative and clerical employees of agents and brokers performing any functions in the office and under the supervision of the employer and receiving no commissions.

3. Salaried employees of insurers, organizations employed by insurersor the state industrial insurance system engaged in inspecting, rating or classifying risks, or in general supervision of agents, and not in the solicitation or writing of insurance.

4. Officers of insurers or of an association of insurers engaged in the performance of their usual and customary executive duties, exclusive of field solicitation of insurance other than rendering assistance to or on behalf of a licensed agent but receiving no commission or other compensation directly dependent upon the amount of business transacted.

5. Persons completing or delivering declarations or certificates of coverage under running inland marine insurance contracts evidencing coverage thereunder, if:

(a) Such persons receive no commissions directly or indirectly on such insurance; and

(b) Such persons or their employers have an insurable interest in the risk evidenced by the certificate or declaration.

6. Persons who secure and furnish information for the purposes of group life insurance, group or blanket health insurance or annuity coverages, or for enrolling individuals under such plans or issuing certificates thereunder or otherwise assisting in administering such plans where no commission is paid for such services.

7. Service representatives.

8. Employees of a short-term lessor of passenger vehicles who engage solely in the solicitation and sale of insurance requested by a lessee pursuant to NRS 482.3158 in accordance with section 1 of Senate Bill No. 351 of this session.

Sec. 126.5. Section 12 of Senate Bill No. 92 of this session is hereby amended to read as follows:

Sec. 12. NRS 616B.167 is hereby amended to read as follows:

616B.167 The manager:

1. Has full power, authority and jurisdiction over the system.

3. May appoint not more than five persons[,] engaged in management[,] who report directly to the manager or an assistant manager. The manager shall designate these positions[,] and may not change them without the approval of the personnel commission. These persons are entitled to receive annual salaries fixed by the manager.”.

Amend the bill as a whole by adding a new section designated sec. 127.5, following sec. 127, to read as follows:

“Sec. 127.5. 1. There is hereby appropriated from the state general fund to the office of the governor to pay that portion of the cost of carrying out the provisions of sections 86.2 to 86.9, inclusive, of this act that is not related to providing assistance to consumers and injured employees concerning workers’ compensation:

For the fiscal year 1999-2000 $212,404

For the fiscal year 2000-2001 $251,001

2. The sums appropriated by subsection 1 are available for either fiscal year and may be transferred for use from one fiscal year to the other upon the recommendation of the governor and with the approval of the interim finance committee.

3. Any balance of the sum appropriated by subsection 1 for fiscal year 1999-2000 remaining at the end of that fiscal year that is not transferred for use to fiscal year 2000-2001 pursuant to subsection 2 must not be committed for expenditure after June 30, 2000, and reverts to the state general fund as soon as all payments of money committed have been made. Any balance of the sums appropriated by subsection 1 remaining at the end of fiscal year 2000-2001 must not be committed for expenditure after June 30, 2001, and reverts to the state general fund as soon as all payments of money committed have been made.

4. The sums appropriated by subsection 1 must be:

(a) Expended in accordance with the allotment, transfer, work program and budget provisions of NRS 353.150 to 353.245, inclusive; and

(b) Work programmed for the 2 separate fiscal years, 1999-2000 and 2000-2001, as required by NRS 353.215. Work programs may be revised with the approval of the governor upon the recommendation of the chief of the budget division of the department of administration and in accordance with the provisions of the State Budget Act.

5. Transfers to and from salary allotments, travel allotments, operating expense allotments, equipment allotments and other allotments must be allowed and made in accordance with the provisions of NRS 353.215 to 353.225, inclusive, and after separate consideration of the merits of each request.”.

Amend sec. 130, page 82, line 33, by deleting “June 30,” and inserting “July 1,”.

Amend sec. 132, page 83, line 38, by deleting “1999, may” and inserting:

“1999:

(a) May”.

Amend sec. 132, page 83, after line 43, by inserting:

“(b) Notwithstanding the provisions of chapter 284 of NRS or the regulations adopted pursuant thereto, is not subject to any probationary period otherwise applicable to his initial reemployment to a position in the classified service of the state.”.

Amend sec. 132, page 84, line 4, by deleting “company may” and inserting:

“company:

(a) May”.

Amend sec. 132, page 84, between lines 9 and 10, by inserting:

Amend sec. 134, page 84, line 21, by deleting “If” and inserting:

“Except as otherwise required as a result of NRS 286.537:

1. If”.

Amend sec. 134, page 84, line 26, by deleting “NRS 286.300” and inserting:

“chapter 286 of NRS, in addition to any years of service previously purchased by the employee pursuant to NRS 286.300,”.

Amend sec. 134, page 84, by deleting line 27.

Amend sec. 134, page 84, line 28, by deleting “2.” and inserting “(a)”.

Amend sec. 134, page 84, line 31, by deleting “3.” and inserting “(b)”.

Amend sec. 134, page 84, between lines 32 and 33, by inserting:

“2. The public employees’ retirement system shall take such action as is necessary to carry out the provisions of subsection 1.”.

Amend sec. 139, page 85, by deleting lines 26 and 27 and inserting:

“as a regulation of the division of industrial relations of the department of business and industry or the administrator of the division, respectively, until amended or repealed by the”.

Amend the bill as a whole by adding new sections designated sections 139.2 and 139.4, following sec. 139, to read as follows:

“Sec. 139.2. The amendatory provisions of sections 62.5, 68.4, 68.5 and 68.7 of this act apply to an injured employee who is determined to be eligible for vocational rehabilitation services pursuant to NRS 616C.550 or 616C.555 on or after January 1, 2000, even if the industrial injury of that employee was sustained before January 1, 2000.

Sec. 139.4. 1. The positions of the three persons appointed pursuant to NRS 616B.167 to serve as ombudsmen for the state industrial insurance system and two persons appointed pursuant to NRS 616B.167 to assist those ombudsmen, including, without limitation, the equipment and supplies associated with and necessary to carry out the duties of those positions, are hereby transferred to the office for consumer health assistance created pursuant to section 86.6 of this act.

2. There is hereby appropriated from the fund for workers’ compensation and safety established pursuant to NRS 616A.425 to the office of the governor to pay for the salaries and related expenses of the positions transferred to the office for consumer health assistance pursuant to subsection 1:

For fiscal year 1999-2000 $262,085

For fiscal year 2000-2001 $325,848

3. The position of one person within the health division of the department of human resources that is funded from the budget account for sexually transmitted disease control is hereby transferred to the office for consumer health assistance created pursuant to section 86.6 of this act.

4. The following sums appropriated by the 1999 Nevada Legislature to fund the position transferred to the office for consumer health assistance pursuant to subsection 3 are hereby transferred to the office of the governor to pay the salary and related expenses of that position:

For fiscal year 1999-2000 $36,248

For fiscal year 2000-2001 $50,314

5. The position of one person within the division of health care financing and policy of the department of human resources that is funded from the budget account for the Nevada Check-Up Program is hereby transferred to the office for consumer health assistance created pursuant to section 86.6 of this act.

6. The following sums are authorized for expenditure by the office for consumer health assistance created pursuant to section 86.6 of this act:

For fiscal year 1999-2000 $11,047

For fiscal year 2000-2001 $14,925

7. The sums transferred, appropriated or authorized for expenditure pursuant to this section must be:

(a) Expended in accordance with the allotment, transfer, work program and budget provisions of NRS 353.150 to 353.245, inclusive; and

8. Transfers to and from salary allotments, travel allotments, operating expense allotments, equipment allotments and other allotments must be allowed and made in accordance with the provisions of NRS 353.215 to 353.225, inclusive, and after separate consideration of the merits of each request.”.

Amend sec. 140, page 85, by deleting lines 32 through 37 and inserting:

“2. Sections 2, 3, 12.5, 86.1, 86.2, 86.6 to 86.9, inclusive, 96.5, 116, 122, 126.3, 127.5 and, 135 of this act become effective on July 1, 1999.

3. Section 86.4 of this act becomes effective on July 1, 1999, only if Assembly Bill No. 660 of this session is enacted by the legislature.

4. Sections 20.5, 35, 89, 117 and 139.4 of this act become effective at 12:01 a.m. on July 1, 1999.

5. Sections 20, 24, 25, 26 and 96 and subsection 1 of section 132 of this act become effective on the date the governor issues a proclamation pursuant to subsection 1 of section 129 of this act.

6. Sections 29 and 126.5 of this act become effective on the date the governor issues a proclamation pursuant to subsection 1 of section 129 of this act, only if the governor issues the proclamation before October 1, 1999.

7. Section 29.5 of the act becomes effective:

(a) At 12:01 a.m. on October 1, 1999, only if the governor issues a proclamation pursuant to subsection 1 of section 129 of this act on October 1, 1999; or

(b) On the date the governor issues a proclamation pursuant to subsection 1 of section 129 of this act, only if the governor issues the proclamation after October 1, 1999.

8. Sections 49.5, 52.5, 53.5, 57.2, 57.4, 62.1 to 62.5, inclusive, 68.2 to 68.8, inclusive, 80.5 and 139.2 of this act become effective on January 1, 2000.

9. Sections 1, 4 to 12, inclusive, 13 to 19, inclusive, 21, 22, 23, 28, 30 to 34, inclusive, 36 to 49, inclusive, 50, 51, 52, 53, 54 to 57, inclusive, 58 to 62, inclusive, 64 to 68, inclusive, 69 to 80, inclusive, 81 to 86, inclusive, 87, 88, 90 to 95, inclusive, 97 to 115, inclusive, 118 to 121,”.

Amend sec. 140, page 86, by deleting line 1 and inserting:

“10. Section 63 of this act becomes effective at 12:01 a.m. on January 1, 2000, only if, on that date, the manager of the state industrial insurance system transfers the assets of the state industrial insurance system to a domestic mutual insurance company pursuant to section 129 of this act.

11. Sections 20, 96, 116 and 122 of this act expire by limitation on”.

Amend sec. 140, page 86, line 5, by deleting “6.” and inserting “12.”.

Amend sec. 140, page 86, line 6, by deleting “7.” and inserting “13.”.

Amend the title of the bill to read as follows:

“AN ACT relating to insurance; authorizing the manager of the state industrial insurance system to establish a domestic mutual insurance company to transact industrial insurance and other casualty and property insurance in this state; abolishing the state industrial insurance system and authorizing the transfer of the assets of the system to the company under certain circumstances; allowing certain employees of the system and the company to retain their rights to reemployment in the executive branch of state government under certain circumstances; authorizing hearing and appeals officers to order an insurer to reimburse an injured employee for the expense of a second determination of disability under certain circumstances; revising the provisions governing the effect on the availability of compensation of a preexisting condition and of an aggravation of an industrial injury or disease that is not related to employment; revising the provisions governing the determination and provision of compensation for permanent total disability, temporary total disability and permanent partial disability; expanding the maximum length of certain programs of vocational rehabilitation; authorizing vocational rehabilitation services to be provided outside of this state under certain circumstances; creating the office for consumer health assistance; making an appropriation; and providing other matters properly relating thereto.”.

Assemblywoman Buckley moved the adoption of the amendment.

Remarks by Assemblywoman Buckley.

Amendment adopted.

Bill ordered reprinted, re-engrossed and to third reading.

UNFINISHED BUSINESS

Reports of Conference Committees

Mr. Speaker:

The first Conference Committee concerning Assembly Bill No. 267, consisting of the undersigned members, has met, and reports that:

No decision was reached, and recommends the appointment of a second Conference Committee, to consist of 3 members, for the further consideration of the measure.

Kathyrn A. McClain	Mike McGinness
Greg Brower	Jon C. Porter
Genie Ohrenschall	Valerie Wiener
Assembly Conference Committee	Senate Conference Committee

Assemblywoman McClain moved that the Assembly adopt the report of the first Conference Committee concerning Assembly Bill No. 267.

Remarks by Assemblywoman McClain.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Anderson, Buckley and Carpenter as a second Conference Committee to meet with a like committee of the Senate for the further consideration of Assembly Bill No. 267.

Recede From Assembly Amendments

Assemblyman Anderson moved that the Assembly do not recede from its action on Senate Bill No. 360, that a conference be requested, and that Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

Remarks by Assemblyman Anderson.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Nolan, Anderson, and Claborn as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 360.

Recede From Assembly Amendments

Assemblyman Bache moved that the Assembly do not recede from its action on Senate Bill No. 391, that a conference be requested, and that Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Bache, Tiffany and Williams as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 391.

Recede From Assembly Amendments

Assemblyman Bache moved that the Assembly do not recede from its action on Senate Bill No. 475, that a conference be requested, and that Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Bache, Gibbons and Freeman as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 475.

Recede From Assembly Amendments

Assemblyman Bache moved that the Assembly do not recede from its action on Senate Bill No. 500, that a conference be requested, and that Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Bache, Berman and Neighbors as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 500.

Recede From Assembly Amendments

Assemblyman Bache moved that the Assembly do not recede from its action on Senate Bill No. 530, that a conference be requested, and that Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Bache, Humke and Mortenson as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Assembly Bill No. 530.

Mr. Speaker appointed Assemblymen Collins, de Braga and Bache as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Assembly Bill No. 376.

Consideration of Senate Amendments

Assembly Bill No. 293.

The following Senate amendment was read:

Amendment No. 999

Amend the bill as a whole by renumbering section 1 as sec. 3 and adding new sections designated sections 1 and 2, following the enacting clause, to read as follows:

“Section 1. Chapter 689A of NRS is hereby amended by adding thereto a new section to read as follows:

1. Notwithstanding any provision of this Title to the contrary, a policy of health insurance issued or delivered for issuance in this state pursuant to this chapter must provide coverage for the treatment of conditions relating to mental health and must not establish any rate, term or condition that places a greater financial burden on the insured person for access to treatment for conditions relating to mental health than for access to treatment for conditions relating to physical health. Any limits required under the policy of health insurance for deductibles and out-of-pocket expenses must be comprehensive for coverage of both conditions relating to mental health and conditions relating to physical health.

2. A policy of health insurance that does not otherwise provide for managed care, or that does not provide for the same degree of managed care for all health conditions, may provide coverage for the treatment of conditions relating to mental health through a managed care organization if the managed care organization is in compliance with regulations adopted by the commissioner which ensure that the system for delivery of the treatment for conditions relating to mental health does not diminish or negate the purpose of this section. The regulations adopted by the commissioner must ensure that:

(a) Timely and appropriate access to care is available;

(b) The distribution of providers of health care who provide services relating to mental health is adequate to serve the needs of persons in this state, considering the quality, location and area of specialization of such providers; and

3. A policy of health insurance shall be deemed to be in compliance with this section if the policy provides to the insured person at least one option for treatment of conditions relating to mental health which has rates, terms and conditions that impose no greater financial burden on the insured person than that imposed for treatment of conditions relating to the physical health of the insured person. The commissioner may disapprove any policy of health insurance if he determines that the policy is inconsistent with this section.

4. Benefits provided pursuant to this section by a policy of health insurance for conditions relating to mental health must be paid in the same manner as benefits for any other illness covered by the policy.

5. Benefits for conditions relating to mental health are not required by this section if the treatment for the condition relating to mental health is not provided:

(a) By a person who is licensed or certified to provide treatment for conditions relating to mental health; or

(b) In a mental health facility or institution designated as a division facility pursuant to NRS 433.233, or in a medical or other facility licensed by the state board of health pursuant to chapter 449 of NRS that provides programs for the treatment of conditions relating to mental health, and pursuant to an individualized written plan developed for the insured person.

6. The provisions of this section must not be construed to:

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

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

(c) Affect any existing policy of health insurance until its date of renewal or, if the policy of health insurance is governed by a collective bargaining agreement or employment contract, until the expiration of that agreement or contract.

7. As used in this section:

(a) “Condition relating to mental health” means a condition or disorder involving mental illness that falls within any of the diagnostic categories listed in the section on mental disorders in the “International Classification of Diseases,” published by the United States Department of Health and Human Services.

(b) “Managed care” has the meaning ascribed to it in NRS 695G.040.

(d) “Rate, term or condition” means any lifetime or annual limit on payments, any requirement concerning deductibles, copayments, coinsurance or other forms of cost sharing, any limit on out-of-pocket costs or on visits to a provider of treatment, and any other financial component of health insurance coverage that affects the insured person.

Sec. 2. NRS 689A.040 is hereby amended to read as follows:

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

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

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

Amend the bill as a whole by renumbering sec. 2 as sec. 5 and adding a new section designated sec. 4, following section 1, to read as follows:

“Sec. 4. Chapter 689B of NRS is hereby amended by adding thereto a new section to read as follows:

1. Notwithstanding any provision of this Title to the contrary, a policy of group health insurance issued or delivered for issuance in this state pursuant to this chapter must provide coverage for the treatment of conditions relating to mental health and must not establish any rate, term or condition that places a greater financial burden on the insured person for access to treatment for conditions relating to mental health than for access to treatment for conditions relating to physical health. Any limits required under the policy of group health insurance for deductibles and out-of-pocket expenses must be comprehensive for coverage of both conditions relating to mental health and conditions relating to physical health.

2. A policy of group health insurance that does not otherwise provide for managed care, or that does not provide for the same degree of managed care for all health conditions, may provide coverage for the treatment of conditions relating to mental health through a managed care organization if the managed care organization is in compliance with regulations adopted by the commissioner which ensure that the system for delivery of the treatment for conditions relating to mental health does not diminish or negate the purpose of this section. The regulations adopted by the commissioner must ensure that:

(a) Timely and appropriate access to care is available;

3. A policy of group health insurance shall be deemed to be in compliance with this section if the policy provides to the insured person at least one option for treatment of conditions relating to mental health which has rates, terms and conditions that impose no greater financial burden on the insured person than that imposed for treatment of conditions relating to the physical health of the insured person. The commissioner may disapprove any policy of group health insurance if he determines that the policy is inconsistent with this section.

4. Benefits provided pursuant to this section by a policy of group health insurance for conditions relating to mental health must be paid in the same manner as benefits for any other illness covered by the policy.

5. Benefits for conditions relating to mental health are not required by this section if the treatment for the condition relating to mental health is not provided:

(a) By a person who is licensed or certified to provide treatment for conditions relating to mental health; or

6. The provisions of this section must not be construed to:

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

(c) Affect any existing policy of group health insurance until its date of renewal or, if the policy of group health insurance is governed by a collective bargaining agreement or employment contract, until the expiration of that agreement or contract.

7. As used in this section:

(b) “Managed care” has the meaning ascribed to it in NRS 695G.040.

Amend the bill as a whole by renumbering sec. 3 as sec. 23 and adding new sections designated sections 6 through 22, following sec. 2, to read as follows:

“Sec. 6. NRS 689B.030 is hereby amended to read as follows:

689B.030 Each group health insurance policy must contain in substance the following provisions:

1. A provision that, in the absence of fraud, all statements made by applicants or the policyholders or by an insured person are representations and not warranties, and that no statement made for the purpose of effecting insurance voids the insurance or reduces its benefits unless the statement is contained in a written instrument signed by the policyholder or the insured person, a copy of which has been furnished to him or his beneficiary.

2. A provision that the insurer will furnish to the policyholder for delivery to each employee or member of the insured group a statement in summary form of the essential features of the insurance coverage of that employee or member and to whom benefits thereunder are payable. If dependents are included in the coverage, only one statement need be issued for each family.

3. A provision that to the group originally insured may be added from time to time eligible new employees or members or dependents, as the case may be, in accordance with the terms of the policy.

4. A provision for benefits for [expense] expenses arising from care at home or health supportive services if the care or service was prescribed by a physician and would have been covered by the policy if performed in a medical facility or facility for the dependent as defined in chapter 449 of NRS.

5. A provision for benefits [payable] for expenses incurred for the treatment of the abuse of alcohol or drugs, as provided in NRS 689B.036.

6. A provision for benefits for expenses arising from hospice care.

7. A provision for benefits for expenses incurred for the treatment of conditions relating to mental health, as provided in section 4 of this act.

Sec. 7. NRS 689B.340 is hereby amended to read as follows:

689B.340 As used in NRS 689B.340 to [689B.600,] 689B.590, inclusive, unless the context otherwise requires, the words and terms defined in NRS 689B.350 to 689B.460, inclusive, have the meanings ascribed to them in those sections.

Sec. 8. NRS 689B.410 is hereby amended to read as follows:

689B.410 1. “Health benefit plan” means a policy, contract, certificate or agreement offered by a carrier to provide for, arrange for the payment of, pay for or reimburse any of the costs of health care services. Except as otherwise provided in this section, the term includes short-term and catastrophic health insurance policies, and a policy that pays on a cost-incurred basis.

2. The term does not include:

(a) Coverage that is only for accident or disability income insurance, or any combination thereof;

(b) Coverage issued as a supplement to liability insurance;

(d) Workers’ compensation or similar insurance;

(e) Coverage for medical payments under a policy of automobile insurance;

(f) Credit insurance;

(g) Coverage for on-site medical clinics; and

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

3. If the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan, the term does not include the following benefits:

(a) Limited-scope dental or vision benefits;

(b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and

(c) Such other similar benefits as are specified in any federal regulations adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191.

4. For the purposes of NRS 689B.340 to [689B.600,] 689B.590, inclusive, if the benefits are provided under a separate policy, certificate or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and such benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor, the term does not include:

(a) Coverage that is only for a specified disease or illness; and

(b) Hospital indemnity or other fixed indemnity insurance.

5. For the purposes of NRS 689B.340 to [689B.600,] 689B.590, inclusive, if offered as a separate policy, certificate or contract of insurance, the term does not include:

(a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, 42 U.S.C. § 1395ss, as that section existed on July 16, 1997;

(b) Coverage supplemental to the coverage provided pursuant to [chapter 55 of Title 10, United States Code (] the Civilian Health and Medical Program of Uniformed Services [(CHAMPUS));] , CHAMPUS, 10 U.S.C. §§ 1071 et seq.; and

Sec. 9. NRS 689B.470 is hereby amended to read as follows:

689B.470 For the purposes of NRS 689B.340 to [689B.600,] 689B.590, inclusive:

1. Any plan, fund or program which would not be, but for section 2721(e) of the Public Health Service Act, 42 U.S.C. § 300gg-21(e), as amended by Public Law 104-191, as that section existed on July 16, 1997, an employee welfare benefit plan and which is established or maintained by a partnership to the extent that the plan, fund or program provides medical care, including items and services paid for as medical care, to current or former partners in the partnership, or to their dependents, as defined under the terms of the plan, fund or program, directly or through insurance, reimbursement, or otherwise, must be treated, subject to the provisions of subsection 2, as an employee welfare benefit plan that is a group health plan.

2. In the case of a group health plan, a partnership shall be deemed to be the employer of each partner.

Sec. 10. NRS 689B.480 is hereby amended to read as follows:

689B.480 1. In determining the applicable creditable coverage of a person for the purposes of NRS 689B.340 to [689B.600,] 689B.590, inclusive, a period of creditable coverage must not be included if, after the expiration of that period but before the enrollment date, there was a 63-day period during all of which the person was not covered under any creditable coverage. To establish a period of creditable coverage, a person must present any certificates of coverage provided to him in accordance with NRS 689B.490 and such other evidence of coverage as required by regulations adopted by the commissioner. For the purposes of this subsection, any waiting period for coverage or an affiliation period must not be considered in determining the applicable period of creditable coverage.

2. In determining the period of creditable coverage of a person for the purposes of NRS 689B.500, a carrier shall include each applicable period of creditable coverage without regard to the specific benefits covered during that period, except that the carrier may elect to include applicable periods of creditable coverage based on coverage of specific benefits as specified in the regulations of the United States Department of Health and Human Services, if such an election is made on a uniform basis for all participants and beneficiaries of the health benefit plan or coverage. Pursuant to such an election, the carrier shall include each applicable period of creditable coverage with respect to any class or category of benefits if any level of benefits is covered within that class or category, as specified by those regulations.

3. Regardless of whether coverage is actually provided, if a carrier elects in accordance with subsection 2 to determine creditable coverage based on specified benefits, a statement that such an election has been made and a description of the effect of the election must be:

(a) Included prominently in any disclosure statement concerning the health benefit plan; and

(b) Provided to each person at the time of enrollment in the health benefit plan.

Sec. 11. NRS 689B.580 is hereby amended to read as follows:

689B.580 1. A plan sponsor of a governmental plan that is a group health plan to which the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, otherwise apply may elect to exclude the governmental plan from compliance with those sections. Such an election:

(a) Must be made in such a form and in such a manner as the commissioner prescribes by regulation.

(b) Is effective for a single specified year of the plan or, if the plan is provided pursuant to a collective bargaining agreement, for the term of that agreement.

(d) Excludes the governmental plan from those provisions in this chapter that apply only to group health plans.

2. If a plan sponsor of a governmental plan makes an election pursuant to this section, the plan sponsor shall:

(a) Annually and at the time of enrollment, notify the enrollees in the plan of the election and the consequences of the election; and

(b) Provide certification and disclosure of creditable coverage under the plan with respect to those enrollees pursuant to NRS 689B.490.

3. As used in this section, “governmental plan” has the meaning ascribed to in section 3(32) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002(32), as that section existed on July 16, 1997.

Sec. 12. Chapter 689C of NRS is hereby amended by adding thereto a new section to read as follows:

1. Notwithstanding any provision of this Title to the contrary, a health benefit plan issued or delivered for issuance in this state pursuant to this chapter must provide coverage for the treatment of conditions relating to mental health and must not establish any rate, term or condition that places a greater financial burden on the insured person for access to treatment for conditions relating to mental health than for access to treatment for conditions relating to physical health. Any limits required under the health benefit plan for deductibles and out-of-pocket expenses must be comprehensive for coverage of both conditions relating to mental health and conditions relating to physical health.

2. A health benefit plan that does not otherwise provide for managed care, or that does not provide for the same degree of managed care for all health conditions, may provide coverage for the treatment of conditions relating to mental health through a managed care organization if the managed care organization is in compliance with regulations adopted by the commissioner which ensure that the system for delivery of the treatment for conditions relating to mental health does not diminish or negate the purpose of this section. The regulations adopted by the commissioner must ensure that:

(a) Timely and appropriate access to care is available;

3. A health benefit plan shall be deemed to be in compliance with this section if the health benefit plan provides to the insured person at least one option for treatment of conditions relating to mental health which has rates, terms and conditions that impose no greater financial burden on the insured person than that imposed for treatment of conditions relating to the physical health of the insured person. The commissioner may disapprove any health benefit plan if he determines that the plan is inconsistent with this section.

4. Benefits provided pursuant to this section by a health benefit plan for conditions relating to mental health must be paid in the same manner as benefits for any other illness covered by the health benefit plan.

5. Benefits for conditions relating to mental health are not required by this section if the treatment for the condition relating to mental health is not provided:

(a) By a person who is licensed or certified to provide treatment for conditions relating to mental health; or

6. The provisions of this section must not be construed to:

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

(c) Affect any existing health benefit plan until its date of renewal or, if the health benefit plan is governed by a collective bargaining agreement or employment contract, until the expiration of that agreement or contract.

7. As used in this section:

(b) “Managed care” has the meaning ascribed to it in NRS 695G.040.

Sec. 13. NRS 689C.155 is hereby amended to read as follows:

689C.155 The commissioner may adopt regulations to carry out the provisions of section 12 of this act and NRS 689C.107 to 689C.145, inclusive, 689C.156 to 689C.159, inclusive, 689C.165, 689C.183, 689C.187, 689C.191 to 689C.198, inclusive, 689C.203, 689C.207, 689C.265, 689C.283, 689C.287, 689C.325, 689C.342 to 689C.348, inclusive, 689C.355 and 689C.610 to 689C.980, inclusive, and to ensure that rating practices used by carriers serving small employers are consistent with those sections, including regulations that:

1. Ensure that differences in rates charged for health benefit plans by such carriers are reasonable and reflect only differences in the designs of the plans, the terms of the coverage, the amount contributed by the employers to the cost of coverage and differences based on the rating factors established by the carrier.

2. Prescribe the manner in which characteristics may be used by such carriers.

Sec. 14. NRS 689C.156 is hereby amended to read as follows:

689C.156 1. As a condition of transacting business in this state with small employers, a carrier shall actively market to a small employer each health benefit plan which is actively marketed in this state by the carrier to any small employer in this state. The health insurance plans marketed pursuant to this section by the carrier must include, without limitation, a basic health benefit plan and a standard health benefit plan. A carrier shall be deemed to be actively marketing a health benefit plan when it makes available any of its plans to a small employer that is not currently receiving coverage under a health benefit plan issued by that carrier.

2. A carrier shall issue to a small employer any health benefit plan marketed in accordance with this section if the eligible small employer applies for the plan and agrees to make the required premium payments and satisfy the other reasonable provisions of the health benefit plan that are not inconsistent with NRS 689C.015 to 689C.355, inclusive, and section 12 of this act, and NRS 689C.610 to 689C.980, inclusive, except that a carrier is not required to issue a health benefit plan to a self-employed person who is covered by, or is eligible for coverage under, a health benefit plan offered by another employer.

Sec. 15. NRS 695A.152 is hereby amended to read as follows:

695A.152 1. To the extent reasonably applicable, a fraternal benefit society shall comply with the provisions of NRS 689B.340 to [698B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance offered by the society to its members. If there is a conflict between the provisions of this chapter and the provisions of NRS 689B.340 to [698B.600,] 689B.590, inclusive, and chapter 689C of NRS, the provisions of NRS 689B.340 to [698B.600,] 689B.590, inclusive, and chapter 689C of NRS control.

2. For the purposes of subsection 1, unless the context requires that a provision apply only to a group health plan or a carrier that provides coverage under a group health plan, any reference in those sections to “group health plan” or “carrier” must be replaced by “fraternal benefit society.”

Sec. 16. NRS 695A.159 is hereby amended to read as follows:

695A.159 1. If a person:

(a) Adopts a dependent child; or

(b) Assumes and retains a legal obligation for the total or partial support of a dependent child in anticipation of adopting the child,

while the person is eligible for group coverage under a certificate for health benefits, the society issuing that certificate shall not restrict the coverage, in accordance with NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance, of the child solely because of a preexisting condition the child has at the time he would otherwise become eligible for coverage pursuant to that policy.

2. For the purposes of this section, “child” means a person who is under 18 years of age at the time of his adoption or the assumption of a legal obligation for his support in anticipation of his adoption.

Sec. 17. NRS 695B.180 is hereby amended to read as follows:

695B.180 A contract for hospital, medical or dental services must not be entered into between a corporation proposing to furnish or provide any one or more of the services authorized under this chapter and a subscriber:

1. Unless the entire consideration therefor is expressed in the contract.

2. Unless the times at which the benefits or services to the subscriber take effect and terminate are stated in a portion of the contract above the evidence of its execution.

3. If the contract purports to entitle more than one person to benefits or services, except for family contracts issued under NRS 695B.190, group contracts issued under NRS 695B.200, and blanket contracts issued under NRS 695B.220.

4. Unless every printed portion and any endorsement or attached papers are plainly printed in type of which the face is not smaller than 10 points.

5. Except for group contracts and blanket contracts issued under NRS 695B.220, unless the exceptions of the contract are printed with greater prominence than the benefits to which they apply.

6. Except for group contracts and blanket contracts issued under NRS 695B.230, unless, if any portion of the contract purports, by reason of the circumstances under which an illness, injury or disablement is incurred to reduce any service to less than that provided for the same illness, injury or disablement incurred under ordinary circumstances, that portion is printed in boldface type and with greater prominence than any other text of the contract.

7. If the contract contains any provisions purporting to make any portion of the charter, constitution or bylaws of a nonprofit corporation a part of the contract unless that portion is set forth in full in the contract.

8. Unless the contract, if it is a group contract, contains a provision for benefits payable for expenses incurred for the treatment of [the] :

(a) The abuse of alcohol or drugs, as provided in NRS 695B.194[.] ; and

(b) Conditions relating to mental health, as provided in section 4 of this act.

9. Unless the contract provides benefits for expenses incurred for hospice care.

10. Unless the contract for service in a hospital contains in blackface type, not less than 10 points, the following provisions:

This contract does not restrict or interfere with the right of any person entitled to service and care in a hospital to select the contracting hospital or to make a free choice of his attending physician, who must be the holder of a valid and unrevoked physician’s license and a member of, or acceptable to, the attending staff and board of directors of the hospital in which the services are to be provided.

Sec. 18. NRS 695B.187 is hereby amended to read as follows:

695B.187 Except as otherwise provided by the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance:

1. A group contract for hospital, medical or dental services issued by a nonprofit hospital, medical or dental service corporation to replace any discontinued policy or coverage for group health insurance must:

(a) Provide coverage for all persons who were covered under the previous policy or coverage on the date it was discontinued; and

(b) Except as otherwise provided in subsection 2, provide benefits which are at least as extensive as the benefits provided by the previous policy or coverage, except that the benefits may be reduced or excluded to the extent that such a reduction or exclusion was permissible under the terms of the previous policy or coverage,

if that contract is issued within 60 days after the date on which the previous policy or coverage was discontinued.

2. If an employer obtains a replacement contract pursuant to subsection 1 to cover his employees, any benefits provided by the previous policy or coverage may be reduced if notice of the reduction is given to his employees pursuant to NRS 608.1577.

3. Any corporation which issues a replacement contract pursuant to subsection 1 may submit a written request to the insurer which provided the previous policy or coverage for a statement of benefits which were provided under that policy or coverage. Upon receiving such a request, the insurer shall give a written statement to the corporation which indicates what benefits were provided and what exclusions or reductions were in effect under the previous policy or coverage.

4. The provisions of this section apply to a self-insured employer who provides health benefits to his employees and replaces those benefits with a group contract for hospital, medical or dental services issued by a nonprofit hospital, medical or dental service corporation.

Sec. 19. NRS 695B.189 is hereby amended to read as follows:

695B.189 A group contract issued by a corporation under the provisions of this chapter must contain a provision which permits the continuation of coverage pursuant to the provisions of NRS 689B.245 to 689B.249, inclusive, and 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance.

Sec. 20. NRS 695B.192 is hereby amended to read as follows:

695B.192 1. No hospital, medical or dental service contract issued by a corporation pursuant to the provisions of this chapter may contain any exclusion, reduction or other limitation of coverage relating to complications of pregnancy, unless the provision applies generally to all benefits payable under the contract and complies with the provisions of NRS 689B.340 to NRS [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance.

2. As used in this section, the term “complications of pregnancy” includes any condition which requires hospital confinement for medical treatment and:

(a) If the pregnancy is not terminated, is caused by an injury or sickness not directly related to the pregnancy or by acute nephritis, nephrosis, cardiac decompensation, missed abortion or similar medically diagnosed conditions; or

(b) If the pregnancy is terminated, results in nonelective cesarean section, ectopic pregnancy or spontaneous termination.

3. A contract subject to the provisions of this chapter which is issued or delivered on or after July 1, 1977, has the legal effect of including the coverage required by this section, and any provision of the contract which is in conflict with this section is void.

Sec. 21. NRS 695B.251 is hereby amended to read as follows:

695B.251 1. Except as otherwise provided in the provisions of this section, NRS 689B.340 to [389B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance, all group subscriber contracts delivered or issued for delivery in this state providing for hospital, surgical or major medical coverage, or any combination of these coverages, on a service basis or an expense-incurred basis, or both, must contain a provision that the employee or member is entitled to have issued to him a subscriber contract of health coverage when the employee or member is no longer covered by the group subscriber contract.

2. The requirement in subsection 1 does not apply to contracts providing benefits only for specific diseases or accidental injuries.

3. If an employee or member was a recipient of benefits under the coverage provided pursuant to NRS 695B.1944, he is not entitled to have issued to him by a replacement insurer a subscriber contract of health coverage unless he has reported for his normal employment for a period of 90 consecutive days after last being eligible to receive any benefits under the coverage provided pursuant to NRS 695B.1944.

Sec. 22. NRS 695B.318 is hereby amended to read as follows:

695B.318 1. Nonprofit hospital, medical or dental service corporations are subject to the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance offered by such organizations. If there is a conflict between the provisions of this chapter and the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS, the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS control.

(a) “Carrier” must be replaced by “corporation.”

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

Amend the bill as a whole by renumbering sections 4 and 5 as sections 30 and 31 and adding new sections designated sections 24 through 29, following sec. 3, to read as follows:

“Sec. 24. NRS 695C.057 is hereby amended to read as follows:

695C.057 1. A health maintenance organization is subject to the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance offered by such organizations. If there is a conflict between the provisions of this chapter and the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS, the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS control.

Sec. 25. NRS 695C.170 is hereby amended to read as follows:

695C.170 1. Every enrollee residing in this state is entitled to evidence of coverage under a health care plan. If the enrollee obtains coverage under a health care plan through an insurance policy, whether by option or otherwise, the insurer shall issue the evidence of coverage. Otherwise, the health maintenance organization shall issue the evidence of coverage.

2. Evidence of coverage or amendment thereto must not be issued or delivered to any person in this state until a copy of the form of the evidence of coverage or amendment thereto has been filed with and approved by the commissioner.

3. An evidence of coverage:

(a) Must not contain any provisions or statements which are unjust, unfair, inequitable, misleading, deceptive, which encourage misrepresentation or which are untrue, misleading or deceptive as defined in subsection 1 of NRS 695C.300; and

(b) Must contain a clear and complete statement, if a contract, or a reasonably complete summary if a certificate, of:

(1) The health care services and the insurance or other benefits, if any, to which the enrollee is entitled under the health care plan;

(2) Any limitations on the services, kind of services, benefits, or kind of benefits, to be provided, including any deductible or copayment feature;

(3) Where and in what manner the services may be obtained;

(4) The total amount of payment for health care services and the indemnity or service benefits, if any, which the enrollee is obligated to pay; and

(5) A provision for benefits payable for expenses incurred for the treatment of [the] :

(I) The abuse of alcohol or drugs, as provided in NRS 695C.174[.] ; and

(II) Conditions relating to mental health, as provided in section 4 of this act.

Any subsequent change may be evidenced in a separate document issued to the enrollee.

4. A copy of the form of the evidence of coverage to be used in this state and any amendment thereto is subject to the requirements for filing and approval of subsection 2 unless it is subject to the jurisdiction of the commissioner under the laws governing health insurance, in which event the provisions for filing and approval of those laws apply. To the extent that such provisions do not apply to the requirements in subsection 3, such provisions are amended to incorporate the requirements of subsection 3 in approving or disapproving an evidence of coverage required by subsection 2.

Sec. 26. NRS 695C.1705 is hereby amended to read as follows:

695C.1705 Except as otherwise provided in the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and accountability of health insurance:

1. A group health care plan issued by a health maintenance organization to replace any discontinued policy or coverage for group health insurance must:

(a) Provide coverage for all persons who were covered under the previous policy or coverage on the date it was discontinued; and

(b) Except as otherwise provided in subsection 2, provide benefits which are at least as extensive as the benefits provided by the previous policy or coverage, except that benefits may be reduced or excluded to the extent that such a reduction or exclusion was permissible under the terms of the previous policy or coverage,

if that plan is issued within 60 days after the date on which the previous policy or coverage was discontinued.

2. If an employer obtains a replacement plan pursuant to subsection 1 to cover his employees, any benefits provided by the previous policy or coverage may be reduced if notice of the reduction is given to his employees pursuant to NRS 608.1577.

3. Any health maintenance organization which issues a replacement plan pursuant to subsection 1 may submit a written request to the insurer which provided the previous policy or coverage for a statement of benefits which were provided under that policy or coverage. Upon receiving such a request, the insurer shall give a written statement to the organization indicating what benefits were provided and what exclusions or reductions were in effect under the previous policy or coverage.

4. If an employee or enrollee was a recipient of benefits under the coverage provided pursuant to NRS 695C.1709, he is not entitled to have issued to him by a health maintenance organization a replacement plan unless he has reported for his normal employment for a period of 90 consecutive days after last being eligible to receive any benefits under the coverage provided pursuant to NRS 695C.1709.

5. The provisions of this section apply to a self-insured employer who provides health benefits to his employees and replaces those benefits with a group health care plan issued by a health maintenance organization.

Sec. 27. NRS 695C.1707 is hereby amended to read as follows:

695C.1707 Any policy of group insurance to which an enrollee is entitled under a health care plan provided by a health maintenance organization must contain a provision which permits the continuation of coverage pursuant to the provisions of NRS 689B.245 to 689B.249, inclusive, NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and accountability of health insurance.

Sec. 28. NRS 695C.172 is hereby amended to read as follows:

695C.172 1. No health maintenance organization may issue evidence of coverage under a health care plan to any enrollee in this state if it contains any exclusion, reduction or other limitation of coverage relating to complications of pregnancy unless the provision applies generally to all benefits payable under the policy and complies with the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and accountability of health insurance.

2. As used in this section, the term “complications of pregnancy” includes any condition which requires hospital confinement for medical treatment and:

(b) If the pregnancy is terminated, results in nonelective cesarean section, ectopic pregnancy or spontaneous termination.

3. Evidence of coverage under a health care plan subject to the provisions of this chapter which is issued on or after July 1, 1977, has the legal effect of including the coverage required by this section, and any provision which is in conflict with this section is void.

Sec. 29. NRS 695F.090 is hereby amended to read as follows:

695F.090 Prepaid limited health service organizations are subject to the provisions of this chapter and to the following provisions, to the extent reasonably applicable:

1. NRS 687B.310 to 687B.420, inclusive, concerning cancellation and nonrenewal of policies.

2. NRS 687B.122 to 687B.128, inclusive, concerning readability of policies.

3. The requirements of NRS 679B.152.

4. The fees imposed pursuant to NRS 449.465.

5. NRS 686A.010 to 686A.310, inclusive, concerning trade practices and frauds.

6. The assessment imposed pursuant to subsection 3 of NRS 679B.158.

7. Chapter 683A of NRS.

8. To the extent applicable, the provisions of NRS 689B.340 to [689B.600,] 689B.590, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance.

9. NRS 689A.413.

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

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

Amend the bill as a whole by adding new sections designated sections 32 through 35 and the text of the repealed section, following sec. 5, to read as follows:

“Sec. 32. NRS 287.010 is hereby amended to read as follows:

287.010 1. The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada may:

(a) Adopt and carry into effect a system of group life, accident or health insurance, or any combination thereof, for the benefit of its officers and employees, and the dependents of officers and employees who elect to accept the insurance and who, where necessary, have authorized the governing body to make deductions from their compensation for the payment of premiums on the insurance.

(b) Purchase group policies of life, accident or health insurance, or any combination thereof, for the benefit of such officers and employees, and the dependents of such officers and employees, as have authorized the purchase, from insurance companies authorized to transact the business of such insurance in the State of Nevada, and, where necessary, deduct from the compensation of officers and employees the premiums upon insurance and pay the deductions upon the premiums.

(c) Provide group life, accident or health coverage through a self-insurance reserve fund and, where necessary, deduct contributions to the maintenance of the fund from the compensation of officers and employees and pay the deductions into the fund. The money accumulated for this purpose through deductions from the compensation of officers and employees and contributions of the governing body must be maintained as an internal service fund as defined by NRS 354.543. The money must be deposited in a state or national bank authorized to transact business in the State of Nevada. Any independent administrator of a fund created under this section is subject to the licensing requirements of chapter 683A of NRS, and must be a resident of this state. Any contract with an independent administrator must be approved by the commissioner of insurance as to the reasonableness of administrative charges in relation to contributions collected and benefits provided. The provisions of NRS 689B.030 to 689B.050, inclusive,apply to coverage provided pursuant to this paragraph[.] , except that the provisions of section 4 of this act do not apply to such coverage.

(d) Defray part or all of the cost of maintenance of a self-insurance fund or of the premiums upon insurance. The money for contributions must be budgeted for in accordance with the laws governing the county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada.

2. If a school district offers group insurance to its officers and employees pursuant to this section, members of the board of trustees of the school district must not be excluded from participating in the group insurance. If the amount of the deductions from compensation required to pay for the group insurance exceeds the compensation to which a trustee is entitled, the difference must be paid by the trustee.

Sec. 33. NRS 287.045 is hereby amended to read as follows:

287.045 1. Except as otherwise provided in this section, every officer or employee of the state is eligible to participate in the program on the first day of the month following the completion of 90 days of full-time employment.

2. Professional employees of the University and Community College System of Nevada who have annual employment contracts are eligible to participate in the program on:

(a) The effective dates of their respective employment contracts, if those dates are on the first day of a month; or

(b) The first day of the month following the effective dates of their respective employment contracts, if those dates are not on the first day of a month.

3. Every officer or employee who is employed by a participating public agency on a permanent and full-time basis on the date the agency enters into an agreement to participate in the state’s group insurance program, and every officer or employee who commences his employment after that date is eligible to participate in the program on the first day of the month following the completion of 90 days of full-time employment.

4. Every senator and assemblyman is eligible to participate in the program on the first day of the month following the 90th day after his initial term of office begins.

5. An officer or employee of the governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada who retires under the conditions set forth in NRS 286.510 or 286.620 and was not participating in the state’s group insurance program at the time of his retirement is eligible to participate in the program 30 days after notice of the selection to participate is given pursuant to NRS 287.023 or 287.0235. The committee on benefits shall make a separate accounting for these retired persons. For the first year following enrollment, the rates charged must be the full actuarial costs determined by the actuary based upon the expected claims experience with these retired persons. The claims experience of these retired persons must not be commingled with the retired persons who were members of the state’s program before their retirement, nor with active employees of the state. After the first year following enrollment, the rates charged must be the full actuarial costs determined by the actuary based upon the past claims experience of these retired persons since enrolling.

6. Notwithstanding the provisions of subsections 1, 3 and 4, if the committee on benefits does not, pursuant to NRS 689B.580, elect to exclude the program from compliance with NRS 689B.340 to [689B.600,] 689B.590, inclusive, and if the coverage under the program is provided by a health maintenance organization authorized to transact insurance in this state pursuant to chapter 695C of NRS, any affiliation period imposed by the program may not exceed the statutory limit for an affiliation period set forth in NRS 689B.500.

Sec. 34. NRS 689B.600 is hereby repealed.

Sec. 35. 1. This section and sections 1, 2, 4, 6 to 22, inclusive, 24 to 29, inclusive, 32, 33 and 34 of this act become effective on July 1, 1999.

2. Sections 3, 5, 23, 30 and 31 of this act become effective on October 1, 1999.

TEXT OF REPEALED SECTION

689B.600 Insurance for groups of 51 persons or more which offers medical and surgical benefits and mental health benefits: Aggregate lifetime and annual limits on benefits.

1. Except as otherwise provided in this section, if group health insurance for groups of 51 persons or more which is issued or delivered for issuance in this state and which offers both medical and surgical benefits and mental health benefits:

(a) Does not include an aggregate lifetime limit on substantially all medical and surgical benefits, the group health insurance may not impose an aggregate lifetime limit on the mental health benefits.

(b) Includes an aggregate lifetime limit on substantially all medical and surgical benefits, the aggregate lifetime limit on the mental health benefits offered by the group health insurance must not be less than the aggregate lifetime limit set for the medical and surgical benefits.

(c) Includes no aggregate lifetime limits, or different aggregate lifetime limits, on different categories of medical and surgical benefits, the applicable aggregate lifetime limit that must be applied in accordance with paragraph (b) to the mental health benefits of the group health insurance must be computed by taking into account the weighted average of the aggregate lifetime limits applicable to such categories of medical and surgical benefits offered by the group health insurance. The computation of the aggregate lifetime limit must be consistent with the rules adopted by the Secretary of the United States Department of Labor pursuant to 29 U.S.C. § 1185a.

2. Except as otherwise provided in this section, if group health insurance for groups of 51 persons or more which is issued or delivered for issuance in this state and which offers both medical and surgical benefits and mental health benefits:

(a) Does not include an annual limit on substantially all medical and surgical benefits, the group health insurance may not impose an annual limit on the mental health benefits.

(b) Includes an annual limit on substantially all medical and surgical benefits, the annual limit on the mental health benefits offered by the group health insurance must not be less than the annual limit set for the medical and surgical benefits.

(c) Includes no annual limit, or different annual limits, on different categories of medical and surgical benefits, the applicable annual limit that must be applied in accordance with paragraph (b) to the mental health benefits of the group health insurance must be computed by taking into account the weighted average of the annual limits applicable to such categories of medical and surgical benefits offered by the group health insurance. The computation of the annual limit must be consistent with the rules adopted by the Secretary of the United States Department of Labor pursuant to 29 U.S.C. § 1185a.

3. Nothing in this section:

(a) Requires group health insurance to provide mental health benefits.

(b) Except as specifically provided in subsection 1, affects the terms or conditions of group health insurance that provides mental health benefits, relating to the amount, duration or scope of those benefits, including, but not limited to, cost sharing, limits on numbers of visits or days of coverage and requirements relating to medical necessity.

4. Group health insurance is not required to comply with the provisions of this section if the application of this section would result in an increase in the cost under the group health insurance of 1 percent or more.

5. If the group health insurance offers a participant or beneficiary more than one benefit package option, the provisions of this section must be applied separately to each such option offered.

6. As used in this section:

(a) “Aggregate lifetime limit” means a limitation on the total amount of benefits that may be paid with respect to those benefits under group health insurance with respect to a policyholder or other coverage unit.

(b) “Annual limit” means a limitation on the total amount of benefits that may be paid with respect to those benefits in a 12-month period under group health insurance with respect to an individual or other coverage unit.

(c) “Medical and surgical benefits” means benefits, as defined under the group health insurance, provided by such insurance for medical or surgical services. The term does not include benefits for services relating to mental health.

(d) “Mental health benefits” means benefits, as defined under the group health insurance, provided by such insurance for services relating to mental health. The term does not include benefits provided for the treatment of substance abuse or chemical dependency.”.

Amend the title of the bill, first line, after “insurance;” by inserting:

“providing for the revision of the provisions governing parity for insurance benefits for the treatment of conditions relating to mental health; exempting certain group health coverage provided by public agencies from certain provisions governing required benefits;”.

Assemblywoman Buckley moved that the Assembly concur in the Senate amendment to Assembly Bill No. 293.

Remarks by Assemblywoman Buckley.

Motion carried.

Bill ordered enrolled.

Assembly Bill No. 631.

The following Senate amendment was read:

Amendment No. 913.

Amend sec. 3, page 2, by deleting lines 19 through 24 and inserting:

“Sec. 3. 1. Each:

(a) Incumbent assemblyman may request the drafting of not more than 4 legislative measures submitted to the legislative counsel before September 1 preceding the commencement of a regular session of the legislature and not more than 4 legislative measures submitted to the legislative counsel on or after September 1 but on or before December 15 preceding the commencement of a regular session of the legislature.

(b) Incumbent senator may request the drafting of not more than 8 legislative measures submitted to the legislative counsel before September 1 preceding the commencement of a regular session of the legislature and not more than 8 legislative measures submitted to the legislative counsel on or after September 1 but on or before December 15 preceding the commencement of a regular session of the legislature.

(c) Newly elected assemblyman may request the drafting of not more than 4 legislative measures submitted to the legislative counsel on or before December 15 preceding the commencement of a regular session of the legislature.

(d) Newly elected senator may request the drafting of not more than 8 legislative measures submitted to the legislative counsel on or before December 15 preceding the commencement of a regular session of the legislature.”.

Amend sec. 6, page 4, lines 6 and 7, by deleting:

“the commencement of a regular legislative session not more than 250” and inserting:

“September 1 preceding a regular legislative session not more than 125”.

Amend sec. 6, page 4, line 10, by deleting:

“NRS 218.245, except that the” and inserting:

“NRS 218.245.

2. The”.

Amend sec. 6, page 4, line 11, by deleting “first” and inserting “19th”.

Amend sec. 6, page 4, line 15, by deleting “2.” and inserting “3.”.

Amend sec. 6, page 4, lines 16 and 17, by deleting:

“the commencement of” and inserting:

“September 1 preceding”.

Amend sec. 6, page 4, line 20, by deleting “15” and inserting “8”.

Amend sec. 6, page 4, line 23, by deleting “35” and inserting “25”.

Amend sec. 6, page 4, line 25, by deleting “3.” and inserting “4.”.

Amend sec. 6, page 4, lines 27 and 28, by deleting:

“the commencement of” and inserting:

“September 1 preceding”.

Amend the bill as a whole by renumbering sections 18 through 51 as sections 20 through 53 and adding new sections designated sections 18 and 19, following sec. 17, to read as follows:

“Sec. 18. NRS 218.2413 is hereby amended to read as follows:

218.2413 1. Except as otherwise provided in subsections 3, 4 and 5, each board of county commissioners, board of trustees of a school district and city council may request the legislative counsel and the legal division of the legislative counsel bureau to prepare any legislative measure which has been approved by the governing body of the county, school district or city at a public hearing before its submission to the legislative counsel bureau.

2. The legislative counsel shall notify the requesting county, school district or city if its request substantially duplicates a request previously submitted by another county, school district or city.

3. The board of county commissioners of a county whose population:

(a) Is 400,000 or more shall not request the preparation of more than [33] 15 legislative measures pursuant to subsection 1 for a regular legislative session. At least [three] one of the measures must be recommended by a metropolitan police department that is located within the county.

(b) Is 100,000 or more but less than 400,000 shall not request the preparation of more than [25] 10 legislative measures pursuant to subsection 1 for a regular legislative session.

(c) Is less than 100,000 shall not request the preparation of more than [5] 2 legislative measures pursuant to subsection 1 for a regular legislative session.

4. The board of trustees of a school district in a county whose population:

(a) Is 400,000 or more shall not request the preparation of more than 5 legislative measures pursuant to subsection 1 for a regular legislative session.

(b) Is 100,000 or more but less than 400,000 shall not request the preparation of more than [3] 2 legislative measures pursuant to subsection 1 for a regular legislative session.

(c) Is less than 100,000 shall not request the preparation of more than 1 legislative measure pursuant to subsection 1 for a regular legislative session.

5. The city council of a city whose population:

(a) Is 100,000 or more shall not request the preparation of more than [10] 4 legislative measures pursuant to subsection 1 for a regular legislative session.

(b) Is less than 100,000 shall not request the preparation of more than [5legislative measures] 1 legislative measure pursuant to subsection 1 for a regular legislative session.

6. As used in this section, “population” means the current population estimate for that city or county as determined and published by the department of taxation and the demographer employed pursuant to NRS 360.283.

Sec. 19. NRS 218.2415 is hereby amended to read as follows:

218.2415 1. An association of elected officials may directly request the legislative counsel and the legal division of the legislative counsel bureau to prepare no more than 5 legislative measures for a regular legislative session.

2. An association of counties or cities may directly request the legislative counsel and the legal division of the legislative counsel bureau to prepare no more than [10] 20 legislative measures for a regular legislative session.”.

Amend sec. 19, page 13, by deleting lines 37 through 39 and inserting:

“~~[upon the request of a member of the legislature or the personal written request of the governor.]~~ as authorized by statute or joint rule of the legislature.”.

Amend sec. 19, page 14, line 3, by deleting “1.” and inserting:

“1 [.] of this section and subsection 1, 3 or 4 of section 6 of this act.”.

Amend sec. 20, page 14, line 13, by deleting “20” and inserting “16”.

Amend sec. 20, page 14, line 14, by deleting “5” and inserting “4”.

Amend sec. 44, page 24, line 22, by deleting “30th” and inserting “final”.

Amend sec. 44, page 24, line 23, by deleting “30th” and inserting “final”.

Amend sec. 44, page 24, line 24, by deleting the comma and inserting:

“or other appropriate legislative measure,”.

Amend sec. 44, page 24, line 27, by deleting “30th” and inserting “final”.

Amend sec. 50, page 28, line 34, by deleting:

“[19th calendar]first” and inserting: “19th calendar”.

Amend sec. 50, page 28, line 37, by deleting “budget.” and inserting:

“budget [.] or to carry out the governor’s legislative agenda.”.

Assemblywoman Giunchigliani moved that the Assembly concur in the Senate amendment to Assembly Bill No. 631.

Remarks by Assemblymen Giunchigliani, Collins and Anderson.

Motion carried.

The following Senate amendment was read:

Amendment No. 1086.

Amend sec. 3, page 2, line 21, by deleting “4” and inserting “5”.

Amend sec. 3, page 2, line 23, by deleting “4” and inserting “5”.

Amend sec. 3, page 2, line 26, by deleting “8” and inserting “10”.

Amend sec. 3, page 2, line 29, by deleting “8” and inserting “10”.

Amend sec. 3, page 2, line 33, by deleting “4” and inserting “5”.

Amend sec. 3, page 2, line 36, by deleting “8” and inserting “10”.

Assemblywoman Giunchigliani moved that the Assembly concur in the Senate amendment to Assembly Bill No. 631.

Remarks by Assemblywoman Giunchigliani.

Motion carried.

Bill ordered enrolled.

Recede From Assembly Amendments

Assemblywoman Buckley moved that the Assembly do not recede from its action on Senate Bill No. 128, that a conference be requested, and that Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Parks, Giunchigliani and Berman as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 128.

Recede From Assembly Amendments

Assemblywoman Buckley moved that the Assembly do not recede from its action on Senate Bill No. 133, that a conference be requested, and that Mr. Speaker appoint a first Conference Committee consisting of three members

to meet with a like committee of the Senate.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Segerblom, Goldwater and Beers as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 133.

Recede From Assembly Amendments

Assemblywoman Buckley moved that the Assembly do not recede from its action on Senate Bill No. 322, that a conference be requested, and that Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Goldwater, Segerblom and Beers as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 322.

Recede From Assembly Amendments

Assemblywoman Buckley moved that the Assembly do not recede from its action on Senate Bill No. 423, that a conference be requested, and that Mr. Speaker appoint a first Conference Committee consisting of three members to meet with a like committee of the Senate.

Motion carried.

Appointment of Conference Committees

Mr. Speaker appointed Assemblymen Giunchigliani, Parks and Nolan as a first Conference Committee to meet with a like committee of the Senate for the further consideration of Senate Bill No. 423.

MOTIONS, RESOLUTIONS AND NOTICES

Assemblyman Perkins moved that all rules be suspended and Senate Bill No. 37 be considered engrossed, declared an emergency measure under the Constitution and placed on third reading and final passage.

Motion carried unanimously.

general file and third reading

Senate Bill No. 37.

Bill read third time.

Remarks by Assemblymen Buckley, Giunchigliani, Goldwater, Humke, Collins, Perkins, Anderson, Parnell and Hettrick.

Potential conflict of interest declared by Assemblyman Humke.

Roll call on Senate Bill No. 37:

Yeas—36.

Nays—Claborn, Giunchigliani, Parnell, Price—4.

Excused—Evans, Thomas—2.

Senate Bill No. 37 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

Bill ordered transmitted to the Senate.

INTRODUCTION, FIRST READING AND REFERENCE

By the Committee on Ways and Means:

Assembly Bill No. 696—AN ACT relating to Southern Nevada Correctional Center; authorizing the department of prisons to enter into a lease of the Southern Nevada Correctional Center; and providing other matters properly relating thereto.

Assemblyman Arberry moved that the bill be referred to the Committee on Ways and Means.

Motion carried.

UNFINISHED BUSINESS

Signing of Bills and Resolutions

There being no objections, the Speaker and Chief Clerk signed Assembly Bills Nos. 14, 103, 152, 200, 237, 298, 346, 347, 429, 470, 504, 614, 628, 668; Assembly Joint Resolutions Nos. 13, 26; Senate Bills Nos. 38, 74, 103, 132, 282, 362, 375, 396, 428, 435, 476.

GUESTS EXTENDED PRIVILEGE OF ASSEMBLY FLOOR

On request of Assemblywoman Angle, the privilege of the floor of the Assembly Chamber for this day was extended to Dave Bolick.

On request of Assemblyman Collins, the privilege of the floor of the Assembly Chamber for this day was extended to Sheila Dubron-Lambert.

On request of Assemblyman Dini, the privilege of the floor of the Assembly Chamber for this day was extended to Laura Wulfekuhle and Gib Hills.

On request of Assemblyman Price, the privilege of the floor of the Assembly Chamber for this day was extended to Len Gemmell.

Assemblyman Perkins moved that the Assembly adjourn until Thrusday, May 27, 1999, at 11:00 a.m.

Motion carried.

Assembly adjourned at 1:58 p.m.

Approved: Joseph E. Dini, Jr.

Speaker of the Assembly

Attest: Jacqueline Sneddon