THE ONE HUNDRED AND SEVENTEENTH DAY

                               

Carson City, (Friday), May 28, 1999

    Senate called to order at 12:28 p.m.

    President Hunt presiding.

    Roll called by former Secretary of the Senate, Leola Armstrong.

    All present.

    Prayer by the Chaplain, Father Paul McCollum.

    God of all creation,

Bless and guide these Senators,

Their staffs,

And all Nevada Legislators.

We ask You to give them Your Spirit of right judgment and wisdom;

Your Spirit of justice and integrity.

Bless each of them and their families.

We pray in the name of God: Father, Son and Holy Spirit.

Amen.

    Pledge of allegiance to the Flag.

    Senator Raggio moved that further reading of the Journal be dispensed with, and the President and Secretary be authorized to make the necessary corrections and additions.

    Motion carried.

REPORTS OF COMMITTEES

Madam President:

    Your Committee on Finance, to which were referred Senate Bill No. 551; Assembly Bills Nos. 386, 690, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

    Also, your Committee on Finance, to which was referred Assembly Bill No. 220, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

William J. Raggio, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, May 27, 1999

To the Honorable the Senate:

    I have the honor to inform your honorable body that the Assembly on this day passed Senate Bills Nos. 283, 308, 368, 545.

    Also, I have the honor to inform your honorable body that the Assembly amended, and on this day adopted, as amended, Assembly Concurrent Resolutions Nos. 13, 46, 53.

    Also, I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bills Nos. 472, 683, 688.

    Also, I have the honor to inform your honorable body that the Assembly on this day concurred in the Senate Amendment No. 1120 to Assembly Bill No. 193.

    Also, I have the honor to inform your honorable body that the Assembly amended, and on this day passed, as amended, Senate Bill No. 80, Amendment No. 988; Senate Bill No. 507, Amendment No. 1167, and respectfully requests your honorable body to concur in said amendments.

    Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to concur in the Senate Amendment No. 1011 to Assembly Bill No. 408.

    Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to recede from its action on Senate Bill No. 167, Assembly Amendment No. 1109, and requests a conference, and appointed Assemblymen de Braga, Ohrenschall and Carpenter as a first Conference Committee to meet with a like committee of the Senate.

    Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to recede from its action on Senate Bill No. 451, Assembly Amendments Nos. 908, 946, and requests a conference, and appointed Assemblymen Buckley, Carpenter and Anderson as a first Conference Committee to meet with a like committee of the Senate.

    Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to recede from its action on Senate Bill No. 478, Assembly Amendment No. 1019, and requests a conference, and appointed Assemblymen Giunchigliani, McClain and Bache as a first Conference Committee to meet with a like committee of the Senate.

    Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Koivisto, Giunchigliani and Cegavske as a first Conference Committee concerning Assembly Bill No. 15.

    Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Koivisto, Angle and Ohrenschall as a first Conference Committee concerning Assembly Bill No. 166.

    Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Parks, Goldwater and Berman as a first Conference Committee concerning Assembly Bill No. 634.

    Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Goldwater, Segerblom and Hettrick as a first Conference Committee concerning Assembly Bill No. 680.

    Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 242.

                                                                                 Susan Furlong Reil

                                                                        Assistant Chief Clerk of the Assembly

    Senator Raggio moved that the Senate recess subject to the call of the Chair.

    Motion carried.

    Senate in recess at 12:57 p.m.

SENATE IN SESSION

    At 1:10 p.m.

    President Hunt presiding.

    Quorum present.

MOTIONS, RESOLUTIONS AND NOTICES

    Assembly Concurrent Resolution No. 13.

    Senator Porter moved that the resolution be referred to the Committee on Legislative Affairs and Operations.

    Motion carried.

    Assembly Concurrent Resolution No. 46.

    Senator Porter moved that the resolution be referred to the Committee on Legislative Affairs and Operations.

    Motion carried.

   


Assembly Concurrent Resolution No. 53.

    Senator Porter moved that the resolution be referred to the Committee on Legislative Affairs and Operations.

    Motion carried.

    Senator Raggio moved that Senate Bill No. 496 be taken from the General File and placed on the Secretary’s desk.

    Remarks by Senator Raggio.

    Motion carried.

INTRODUCTION, FIRST READING AND REFERENCE

    By Senator Raggio (Emergency Request of Raggio):

    Senate Bill No. 552—AN ACT relating to gaming; exempting a proposed establishment that is located in a historic building from certain requirements pertaining to the issuance of a nonrestricted license in certain counties; and providing other matters properly relating thereto.

    Senator Raggio moved that the bill be referred to the Committee on Judiciary.

    Motion carried.

    By Senator Raggio (Emergency Request of Raggio):

    Senate Bill No. 553—AN ACT relating to the protection of children; providing that certain reasonable acts of discipline by a parent or guardian of a child do not warrant action by an agency which provides protective services to children or a law enforcement agency; providing that references to such acts must be expunged from the records of the agency which provides protective services to children or the law enforcement agency; and providing other matters properly relating thereto.

    Senator Raggio moved that the bill be referred to the Committee on Human Resources and Facilities.

    Motion carried.

    Assembly Bill No. 472.

    Senator Raggio moved that the bill be referred to the Committee on Finance.

    Motion carried.

    Assembly Bill No. 683.

    Senator Rawson moved that the bill be referred to the Committee on Finance.

    Motion carried.

    Assembly Bill No. 688.

    Senator Rawson moved that the bill be referred to the Committee on Judiciary.

    Motion carried.


GENERAL FILE AND THIRD READING

    Senate Bill No. 466.

    Bill read third time.

    Roll call on Senate Bill No. 466:

    Yeas—21.

    Nays—None.

    Senate Bill No. 466 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

MOTIONS, RESOLUTIONS AND NOTICES

    Senator O’Donnell moved that Senate Bill No. 491 be taken from the General File and placed on the General File on the Second Agenda.

    Remarks by Senator O’Donnell.

    Motion carried.

GENERAL FILE AND THIRD READING

    Senate Bill No. 550.

    Bill read third time.

    Roll call on Senate Bill No. 550:

    Yeas—21.

    Nays—None.

    Senate Bill No. 550 having received a constitutional majority, Madam President declared it passed.

    Bill ordered transmitted to the Assembly.

    Assembly Bill No. 38.

    Bill read third time.

    Roll call on Assembly Bill No. 38:

    Yeas—21.

    Nays—None.

    Assembly Bill No. 38 having received a constitutional majority, Madam President declared it passed.

    Bill ordered transmitted to the Assembly.

    Assembly Bill No. 324.

    Bill read third time.

    Roll call on Assembly Bill No. 324:

    Yeas—21.

    Nays—None.

    Assembly Bill No. 324 having received a constitutional majority, Madam President declared it passed.

    Bill ordered transmitted to the Assembly.


Assembly Bill No. 380.

    Bill read third time.

    Remarks by Senator McGinness.

    Roll call on Assembly Bill No. 380:

    Yeas—21.

    Nays—None.

    Assembly Bill No. 380 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Assembly Bill No. 480.

    Bill read third time.

    Remarks by Senators McGinness and Neal.

    Roll call on Assembly Bill No. 480:

    Yeas—21.

    Nays—None.

    Assembly Bill No. 480 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Assembly Bill No. 673.

    Bill read third time.

    Roll call on Assembly Bill No. 673:

    Yeas—21.

    Nays—None.

    Assembly Bill No. 673 having received a two-thirds majority, Madam President declared it passed.

    Bill ordered transmitted to the Assembly.

    Assembly Bill No. 684.

    Bill read third time.

    The following amendment was proposed by the Committee on Finance:

    Amendment No. 1195.

    Amend the bill as a whole by deleting section 1 and adding a new section designated section 1, following the enacting clause, to read as follows:

    “Section 1.  1.  The commission for the preservation of wild horses is hereby authorized to spend no more than $75,000 in the Heil trust fund for wild horses created pursuant to NRS 504.450 to conduct a study of the feasibility of establishing a private foundation to promote the adoption of wild horses and burros by members of the general public.

    2.  The commission for the preservation of wild horses shall submit a written report of the results of the study to the Director of the Legislative Counsel Bureau for transmission to the 71st session of the Nevada Legislature.”.

    Amend the title of the bill by deleting the second and third lines and inserting: “commission to spend a portion of the money in the Heil trust fund for wild horses to conduct a study of the feasibility of establishing a private”.

    Amend the summary of the bill by deleting the first and second lines and inserting:

    “SUMMARY—Authorizes commission for the preservation of wild horses to spend money in Heil trust fund for wild horses to conduct study of”.

    Senator Raggio moved the adoption of the amendment.

    Remarks by Senator Raggio.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 687.

    Bill read third time.

    Roll call on Assembly Bill No. 687:

    Yeas—21.

    Nays—None.

    Assembly Bill No. 687 having received a constitutional majority, Madam President declared it passed.

    Bill ordered transmitted to the Assembly.

UNFINISHED BUSINESS

Reports of Conference Committees

Madam President:

    The first Conference Committee concerning Senate Bill No. 477, consisting of the undersigned members, has met, and reports that:

    It has agreed to recommend that the amendment of the Assembly be concurred in.

    It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA3, which is attached to and hereby made a part of this report.

    Conference Amendment:

    Amend section 1, page 2, line 19, after “3.” by inserting: “All decisions, and any deliberations leading to those decisions, that are made by any body, including, without limitation, the Reno/Sparks Convention and Visitors Authority, the Truckee Meadows Tourism Facility and Revitalization Steering Committee and the Sparks Tourism and Marketing Committee, concerning the expenditure, commitment or other use of money derived from the proceeds of the tax imposed pursuant to this section must be made at a public meeting that complies with the provisions of chapter 241 of NRS, whether or not the body is determined to be a public body to which that chapter is applicable.

    4.”.

    Amend sec. 7, page 7, line 26, by deleting “on the” and inserting “on a”.

    Amend sec. 7, page 7, line 27, by deleting: “having the lowest cost,”.

    Amend sec. 8, page 7, line 32, by deleting “This” and inserting “1.  This”.

    Amend sec. 8, page 7, between lines 35 and 36, by inserting:

    “2.  Section 7 of this act expires by limitation on June 30, 2001.”.

Joseph Neal                                                        Bernard Anderson

Randolph J. Townsend                                  John W. Marvel

Maurice E. Washington                                 Vivian L. Freeman

    Senate Conference Committee                              Assembly Conference Committee

    Senator Neal moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 477.        


    Remarks by Senator Neal.

    Motion carried.

    Senator Raggio moved that the Senate recess until 4 p.m.

    Motion carried.

    Senate in recess at 1:39 p.m.

SENATE IN SESSION

    At 6:31 p.m.

    President Hunt presiding.

    Quorum present.

REPORTS OF COMMITTEES

Madam President:

    Your Committee on Commerce and Labor, to which was referred Assembly Bill No. 64, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Randolph J. Townsend, Chairman

Madam President:

    Your Committee on Finance, to which was referred Assembly Bill No. 189, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

William J. Raggio, Chairman

Madam President:

    Your Committee on Human Resources and Facilities, to which was referred Senate Bill No. 553, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Raymond D. Rawson, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, May 28, 1999

To the Honorable the Senate:

    I have the honor to inform your honorable body that the Assembly on this day passed Senate Bills Nos. 8, 236, 280, 305, 401, 443, 469, 504; Assembly Bills Nos. 72, 697; Senate Joint Resolution No. 22.

    Also, I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bills Nos. 170, 287, 368, 454, 519, 521, 595, 622, 679, 689, 691, 693, 694.

    Also, I have the honor to inform your honorable body that the Assembly on this day concurred in the Senate Amendment No. 1080 to Assembly Bill No. 130.

    Also, I have the honor to inform your honorable body that the Assembly on this day concurred in the Senate Amendment No. 1002 to Assembly Bill No. 635.

    Also, I have the honor to inform your honorable body that the Assembly amended, and on this day passed, as amended, Senate Bill No. 363, Amendment No. 1164; Senate Bill No. 481, Amendment No. 893; Senate Bill No. 485, Amendment No. 1121; Senate Bill No. 511, Amendment No. 1168, and respectfully requests your honorable body to concur in said amendments.

    Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to recede from its action on Senate Bill No. 417, Assembly Amendment No. 979, and requests a conference, and appointed Assemblymen Giunchigliani, Goldwater and Beers as a first Conference Committee to meet with a like committee of the Senate.

    Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to concur in the Senate Amendment No. 1093 to Assembly Joint Resolution No. 5 of the 69th Session.

    Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to recede from its action on Senate Bill No. 192, Assembly Amendment No. 1084, and requests a conference, and appointed Assemblymen Buckley, Segerblom and Hettrick as a first Conference Committee to meet with a like committee of the Senate.

    Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 477.

    Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 15.

    Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 59.

    Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 527.

    Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 238 and requests a second conference, and appointed Assemblymen Buckley, Gibbons and Koivisto as a second Conference Committee to meet with a like committee of the Senate for further consideration of Assembly Bill No. 238.

    I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 289.

    Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 617.

    Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 615.

                                                                                 Susan Furlong Reil

                                                                        Assistant Chief Clerk of the Assembly

MOTIONS, RESOLUTIONS AND NOTICES

    Senator Rawson moved that Senate Bill No. 553 be placed on the bottom of the General File on the Second Agenda.

    Remarks by Senator Rawson.

    Motion carried.

    Senator Raggio moved that beginning on Saturday, May 29, all necessary rules be suspended, reading so far had considered second reading, rules further suspended, and that all bills and joint resolutions reported out of committee with a do pass be declared emergency measures and immediately placed on third reading and final passage, time permitting.

    Remarks by Senator Raggio.

    Madam President, thank you. It is time for me to make some final motions to suspend rules. These motions I make for these suspensions would be effective tomorrow, Saturday, May 29. First all, beginning tomorrow, Madam President, I would move that all bills reported out of committee with a “do pass” be declared emergency measures and immediately placed on General File, time permitting. I don’t know how many days we will need. Obviously, our sine die deadline is May 31, but we certainly need to move the process along. In the past, we have done this much earlier but because we have processed such a large number of bills, this is the time we should do it under this process.

    Motion carried.

    Senator Raggio moved that for the remainder of the session, all bills and joint resolutions returned from reprint be declared emergency measures and immediately placed on third reading and final passage, time permitting.

    Remarks by Senator Raggio.

    Madam President, I would next move that bills returned from reprint be declared emergency measures and immediately placed on General File for final passage, time permitting. Again, this is a move once the bills get back after amendment, we can orderly process them immediately on General File

    Motion carried.

    Senator Raggio moved that all rules be suspended, reading so far had considered second reading, rules further suspended, Senate Bill No. 551 declared an emergency measure under the Constitution and placed on third reading and final passage

    Remarks by Senator Raggio.

    Madam President, this is the General Authorization bill which has been on your desk, and it needs to be processed as soon as we can today.

    Motion carried.

UNFINISHED BUSINESS

Consideration of Assembly Amendments

    Senate Bill No. 37.

    The following Assembly Amendment was read:

    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, pen49alties, 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;

    (c) Has at least 15 members; and

    (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

    (c) Has at least 15 members.

    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

    (c) Conduct hearings expeditiously and informally.

    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

    (c) Except as otherwise provided in NRS 616B.185 and 616B.186, the employee is incarcerated.

    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

    (c) Be signed by the treating physician or chiropractor authorized pursuant to NRS 616B.515 or 616B.527.

    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.

    (c) If the injured employee has incurred a permanent physical impairment of 11 percent or more, [1 year.] 18 months.

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;

    (c) Refused to process a claim for compensation pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS;

    (d) Made it necessary for a claimant to initiate proceedings pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS for compensation found to be due him by a hearing officer, appeals officer, court of competent jurisdiction, written settlement agreement, written stipulation or the division when carrying out its duties pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS;

    (e) Failed to comply with the division’s regulations covering the payment of an assessment relating to the funding of costs of administration of chapters 616A to 617, inclusive, of NRS;

    (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.

    (c) Order a plan of corrective action to be submitted to the administrator within 30 days after the date of the order.

    3.  If the administrator determines that a violation of any of the provisions of paragraphs (a) to (d), inclusive, of subsection 1 has occurred, the administrator shall order the insurer, organization for managed care, health care provider, third-party administrator or employer to pay to the claimant a benefit penalty in an amount [equal to 50 percent of the compensation due or $10,000, whichever is less. In no event may a benefit penalty be less than $500. The] 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.

    (c) A certificate of registration as a third-party administrator.

    7.  The commissioner may, without complying with the provisions of NRS 616B.327 or 616B.431, withdraw the certification of a self-insured employer, association of self-insured public or private employers or third-party administrator if, after a hearing, it is shown that the self-insured employer, association of self-insured public or private employers or third-party administrator violated any provision of subsection 1.”.

    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;

    (c) Is employed by, or participating in, the management of a health care facility, insurer or provider of heath care; or

    (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;

    (c) The department of transportation;

    (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 [shall not 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.

    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 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:

    “(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. 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

    (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.

    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.”

    Senator Townsend moved that the Senate concur in the Assembly amendment to Senate Bill No. 37.

    Remarks by Senators Townsend, Coffin, Titus, Care, Neal and O’Connell.

    Conflict of interest declared by Senator Porter.

    Senator Care requested that the following remarks be entered in the Journal.

    Senator Townsend:

    Thank you, Madam President. This is the administration’s privatization bill. The amendment deals with a few things that should be highlighted. One is the increase in PPD from 0.54 to 0.6. Another is the extension of vocational rehabilitation. The other is a redefinition of pre-existing conditions better known as the Kelly Decision. There are also disclosures, signatures and releases required in here. The last substantive change creates the ombudsman which is a cabinet-level position to deal with the issues in Senator Schneider’s bill that passed out of the Senate Commerce and Labor Committee and was sent to Senate Finance. Those provisions have been incorporated into the ombudsman position.

    I want to make particular mention of sections 53.5 and 80.5 of Senate Bill No. 37. These provisions address the so-called “primary cause” rule relating to pre-existing, non-industrial conditions that are aggravated, precipitated or accelerated by an industrial injury or occupational disease.

    The primary cause provision was adopted in 1993 in S.B. No. 316. It was specifically designed to overturn the Nevada Supreme Court decisions in SIIS v. Kelly and SIIS v. Warpinski. The Kelly case held that an industrial injury did not have to be the cause of an aggravation to a pre-existing, non-industrial condition, it only had to be a cause. Warpinski dealt with situations where an industrial condition was subsequently aggravated by a non-industrial condition becoming workers’ compensation claims as a result of minor work injuries.

    Sections 53.5 and 80.5 are intended to relax the primary cause rule so that the industrial portion of the injury no longer has to amount to 51 percent or more of the final condition. However, and I cannot over-emphasize the fact these two sections are not meant to restore the old Kelly or Warpinski rules, where essentially a 1 percent industrial component was all that was needed to make a condition compensable.

    Sections 53.5 and 80.5 require that the industrial component of a condition that results from the aggravation, precipitation or acceleration of a pre-existing non-industrial condition or a subsequent non-industrial aggravation of a prior industrial injury must be a substantial, significant and material factor in the final condition.

    While the industrial component of the final condition no longer must be the primary or major cause, it must still be largely the cause of the final combined industrial injury or disease and the non-industrial condition. To state it another way, sections 53.5 and 80.5 are to operate much closer to the existing primary cause language in NRS 616C.175 and 617.366 than to the old Kelly and Warpinski rules. This understanding of our intent is crucial.

    And, in order to facilitate the determination of what is industrial and what is non-industrial, the bill includes section 49.5. This provision allows an insurer to request medical records that concern a pre-existing medical condition that is reasonably related to the industrial injury. This procedure ensures that there will be fair and accurate assessment of any pre-existing conditions on behalf of both the injured worker and the employer.

    Senator Coffin:

    Thank you, Madam President. I think I understood all that the chairman said, and I don’t want to make his remarks to be any lengthier, but he went over the pre-existing condition rate restoration a little too quickly for me to absorb. He mentioned something about the Kelly Decision. If he could please spend just a few minutes and explain how much of the pre-existing condition exclusion has been restored. I would very much appreciate it. He knows I care a lot about this issue.

    Senator Townsend:

    Let me give you two answers to the important question that has been asked. The amendment requires that an injured employee sign all medical releases necessary for insurers to obtain information and records about a pre-existing medical condition that is reasonably related to an industrial injury of an employee. In addition, the measure provides that an injured employee may request a hearing or appeals officer to order the insurer to reimburse the employee for the cost associated with a second impairment rating that results in a higher percentage of disability than the first rating, if the hearing or appeals officer decides that the second determination of a higher percentage of the disability is appropriate. The bill does provide that the employee whose pre-existing, non-industrial condition is aggravated due to a subsequent industrial accident or occupational disease is entitled to workers compensation benefits unless the insurer can prove by a preponderance of the evidence that the subsequent injury or occupational disease is not a substantial contributing cause of the resulting condition. That is the key.

    Again, let me repeat that, because that is crucial to the question that was legitimately asked. An employee whose pre-existing, non-industrial condition is aggravated due to a subsequent industrial accident or occupational disease is entitled to workers’ compensation benefits unless the insurer can prove by preponderance of the evidence that the subsequent injury or occupational disease is not a substantial contributing cause of the resulting condition. The explanation with regard to that is that this body in 1993 repealed the Kelly case which prevented pre-existing conditions in essence, and what it required was that an employee was required to prove pre-existing conditions. This changes that burden slightly. It is not gone back to the Kelly case, but has changed it slightly. It has put it in a situation where the balance occurs because the parties are able to get the information up front so the insurer knows whether there is a decent case or not as does the employee. That’s crucial. They can choose to go forward if they think they have a case, but they’ll know that before-hand. That was the balance. Send it back and put the burden on the insurer, not the employee, but give them the information necessary to find out if they feel they have a legitimate case.

    Senator Titus:

    Thank you, Madam President. I am pleased to rise in support of this motion to concur because not only does the bill include Senator Schneider’s ombudsman, but it also includes the compromises that we had worked out on this side but were unable to add to the bill before it passed out because the time of the waiver ran out.

    Senator Care:

    Thank you, Madam President. My questions have just been answered. Thank you.

    Senator Neal:

    Madam President, I have a question relative to page 11 of the amendment that the chairman of Commerce and Labor had referred to. I just wanted to get some clarification as to why the two separate actions that are written there under 1 and 2 seems to be the insurer may, on its own, request the medical records without the signing of any document by the person who has been injured. Then, No. 2, it says that an injured employee must sign all medical releases necessary for the insurer or his employer to obtain information and the records about the pre-existing medical conditions. Does this mean that no records of pre-existing conditions can be issued to the insurer without the employee signing off on that record. If that is the case, then what happens to the employee in terms of the insurance claim.

    Senator Townsend:

    Thank you, Madam President. Again, appropriate questions for a very sensitive issue, I’ll preface my answer with the following predicate. In shifting the burden, when we repealed Kelly, back to the employee to prove a pre-existing condition, the last six years have found that every pre-existing case required a substantial amount of medical analysis by the employee. The employee received their records. In order to make a case, they needed to have all the information available to them.

    Now, we are shifting the burden back to the insurer. In order for the insurer to make a determination whether to proceed with objecting to a pre-existing condition claim, the insurer needs to have the records. That was the balance the Assembly thought would be best―put the burden back on the insurer, but instead of having them go directly to court and fight it out by then getting the records after the fact, the insurer would have access to the records up front and decide whether they should appeal a decision.

    Senator Neal:

    So, I gather, then, that if the employee does not sign off, then he is not taken care of in terms of his injury.

    Senator Townsend:

    I believe the language is that the injured employee must sign for all the medical records to be given. So, remember, the chain of events is that there has been a subsequent injury. The employee is saying, “I believe that I was injured, and I am filing for that claim.” In order for the employer, or in this case the insurer, to object, they are able to get the medical records under the provisions of page 11 by simply requesting them. Once they are requested, the employee must sign for that in order for the insurer to determine whether they will object to the claim or not.

    Senator O’Connell:

    Thank you, Madam President. I just thought that perhaps I would draw the body’s attention to page 51 where we start talking about the office for consumer health assistance. Our minority leader mentioned that (and actually it began in this House with Senate Bill No. 196) we had included in here the language of Senate Bill No. 196 which is Senator Schneider’s bill. I just thought it was a significant addition to the bill. They had created a cabinet position for this person and because he does not have a voice to speak, I thought it would be nice if we just recognized that.

    Senator Care:

    Thank you, Madam President. I said just a moment ago that I thought all my questions had been answered. Let me just follow-up briefly with one of the questions asked by the Honorable Senator from North Las Vegas. There is nothing in this amendment, as I take it (I just want the reassurance), that somehow changes the statutory safeguards on the release of medical records. I am thinking about Chapter 49 which goes to privileges, and I know there is another statute out there that goes to medical records. But that is still in place with this amendment, is that correct, Madam President?

    Senator Townsend:

    Yes, to my colleague from southern Nevada, the answer is yes. The specific language made reference to on page 11 has only to do with preexisting condition and the burden that is being shifted to the employer. That’s the only way they can get any records if their claim has been filed and it is for a subsequent injury.

    Motion carried.

    Bill ordered enrolled.

    Senate Bill No. 288.

    The following Assembly Amendment was read:

    Amendment No. 1144.

    Amend the bill as a whole by deleting sections 1 through 3, renumbering sections 4 and 5 as sections 2 and 3 and adding a new section designated section 1, following the enacting clause, to read as follows:

    “Section 1.  1.  A county that is required to provide protective services to children in that county pursuant to NRS 432B.325 may enter into an agreement with the division of child and family services of the department of human resources to establish a pilot program to provide continuity of care for children who receive protective services. A pilot program established pursuant to such an agreement may provide:

    (a) For the county and the division of child and family services jointly to furnish services relating to the assessment of a child and planning for the provision of protective services to the child;

    (b) For a child to be in the joint custody of the county and the division of child and family services;

    (c) For continuity in the placement of a child in foster care;

    (d) That the rate of payment by the county for foster care and shelter care must be equal to the rate of payment by the division of child and family services for foster care and shelter care;

    (e) For continuity in the management of a case for the provision of protective services to a child; and

    (f) For services designed to carry out a plan for the permanent placement of a child established pursuant to NRS 432B.590 or the Adoption and Safe Families Act of 1997, Public Law 105-89.

    2.  Notwithstanding any specific statute to the contrary, for the purpose of a pilot program established pursuant to an agreement entered into pursuant to this section, the division of child and family services may deviate from the rate of payment for foster care approved by the legislature.”.

    Amend sec. 4, page 3, line 18, by deleting “3” and inserting “1”.

    Amend sec. 5, page 3, line 29, by deleting “1999.” and inserting:

    “1999, and expires by limitation on June 30, 2001.”.

    Amend the summary of the bill by deleting the third line and inserting: “(BDR S‑1028)”.

    Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 288.

    Remarks by Senator Raggio.

    Motion carried.

    Bill ordered enrolled.

    Senate Bill No. 404.

    The following Assembly Amendments were read:

    Amendment No. 1143.

    Amend the bill as a whole by adding a new section designated sec. 7, following sec. 6, to read as follows:

    “Sec. 7.  This act becomes effective upon passage and approval.”.

    Amendment No. 871.

    Amend the bill as a whole by deleting section 1, renumbering sections 2 and 3 as sections 5 and 6 and adding new sections designated sections 1 through 4, following the enacting clause, to read as follows:

    “Section 1.  Chapter 287 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

    Sec. 2.  1.  Except as otherwise provided in subsection 3, the surviving spouse and any surviving child of a police officer or fireman who was:

    (a) Employed by a public agency that had established group insurance or medical and hospital service pursuant to NRS 287.010, 287.020 or 287.025; and

    (b) Killed in the line of duty,

may elect to accept or continue coverage under that group insurance or medical and hospital service if the police officer or fireman was a participant or would have been eligible to participate in the group insurance or medical and hospital service on the date of the death of the police officer or fireman. If the surviving spouse or child elects to accept coverage under the group insurance or medical and hospital service in which the police officer or fireman would have been eligible to participate or to discontinue coverage under the group insurance or medical and hospital service in which the police officer or fireman was a participant, the spouse, child or legal guardian of the child must notify in writing the public agency that employed the police officer or fireman within 60 days after the date of death of the police officer or fireman.

    2.  The public agency that employed the police officer or fireman shall pay the entire cost of the premiums or contributions for the group insurance or medical and hospital service for the surviving spouse or child who meets the requirements set forth in subsection 1. 

    3.  A surviving spouse is eligible to receive coverage pursuant to this section for the duration of the life of the surviving spouse. A surviving child is eligible to receive coverage pursuant to this section until the child reaches:

    (a) The age of 18 years; or

    (b) The age of 23 years, if the child is enrolled as a full-time student in an accredited university, college or trade school.

    4.  As used in this section “police officer” has the meaning ascribed to it in NRS 617.135.

    Sec. 3.  1.  Except as otherwise provided in subsection 4, the surviving spouse and any surviving child of a police officer or fireman who was employed by a participating public agency and who was killed in the line of duty may join or continue coverage under the state’s program of group insurance if the police officer or fireman was a participant or would have been eligible to participate on the date of the death of the police officer or fireman. If the surviving spouse or child elects to join or discontinue coverage under the state’s program of group insurance pursuant to this subsection, the spouse, child or legal guardian of the child must notify in writing the participating public agency that employed the police officer or fireman within 60 days after the date of death of the police officer or fireman.

    2.  Except as otherwise provided in subsection 4, the surviving spouse and any surviving child of a volunteer fireman who was killed in the line of duty and who was officially a member of a volunteer fire department in this state is eligible to join the state’s program of group insurance. If such a spouse or child elects to join the state’s program of group insurance, the spouse, child or legal guardian of the child must notify in writing the committee on benefits within 60 days after the date of death of the volunteer fireman.

3.  The participating public agency that employed the police officer or fireman shall pay the entire cost of the premiums or contributions for the state’s program of group insurance for the surviving spouse or child who meets the requirements set forth in subsection 1. The State of Nevada shall pay the entire cost of the premiums or contributions for the state’s program of group insurance for the surviving spouse or child who elects to join the state’s program of group insurance pursuant to subsection 2.

    4.  A surviving spouse is eligible to receive coverage pursuant to this section for the duration of the life of the surviving spouse. A surviving child is eligible to receive coverage pursuant to this section until the child reaches:

    (a) The age of 18 years; or

    (b) The age of 23 years, if the child is enrolled as a full-time student in an accredited university, college or trade school.

5.  As used in this section “police officer” has the meaning ascribed to it in NRS 617.135.

    Sec. 4. NRS 287.040 is hereby amended to read as follows:

    287.040 The provisions of NRS 287.010 to 287.040, inclusive, and section 2 of this act, do not make it compulsory upon any governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada to , except as otherwise provided in section 2 of this act, make any contributions for the payment of any premiums or other costs for group insurance or medical or hospital services, or upon any officer or employee of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of this state to accept or join any plan of group insurance or to assign his wages or salary or to authorize deductions from his wages or salary in payment of premiums therefor.”.

    Amend sec. 2, page 2, line 36, by deleting “section 1” and inserting: “sections 2 and 3”.

    Amend sec. 3, page 3, line 21, by deleting “section 1” and inserting: “sections 2 and 3”.

    Amend the title of the bill by deleting the first and second lines and inserting:

    “AN ACT relating to programs for public employees; providing for coverage under certain programs of group insurance or other medical or hospital service without charge for the surviving spouse”.

    Senator Raggio moved that the Senate concur in the Assembly amendments to Senate Bill No. 404.

    Remarks by Senator Raggio.

    Motion carried.

    Bill ordered enrolled.

Recede From Senate Amendments

    Senator O’Connell moved that the Senate do not recede from its action on Assembly Bill No. 408, that a conference be requested, and that Madam President appoint a first Conference Committee consisting of three members to meet with a like committee of the Assembly.

    Remarks by Senator O’Connell.

    Motion carried.

Appointment of Conference Committees

    Madam President appointed Senators Rhoads, O’Connell and Carlton as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 408.

Reports of Conference Committees

Madam President:

    The first Conference Committee concerning Senate Bill No. 322, consisting of the undersigned members, has met, and reports that:

    It has agreed to recommend that the amendment of the Assembly be concurred in.

    It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA15, which is attached to and hereby made a part of this report.

    Conference Amendment.

    Amend section 1, page 1, line 2, by deleting “7,” and inserting “8,”.

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

    “Sec. 8.  1.  A time share must not be advertised or offered for resale within this state until the advertisement or offering is approved by the division.

    2.  Each advertisement must contain the processing number assigned to it by the division.

    3.  Each application for the approval of advertising must include:

    (a) The form and content of advertising to be used;

    (b) The nature of the offer of gifts or other free benefits to be extended; and

    (c) The nature of promotional meetings involving any person or act described in NRS 119A.300.

    4.  The division shall render a decision upon an application for the approval of advertising or an offer for resale within 30 days after the date the application is filed.”.

Jon C. Porter                                                     David E. Goldwater

Mike McGinness                                                 Gene Segerblom

Terry Care                                                         Bob Beers

    Senate Conference Committee                              Assembly Conference Committee

    Senator Porter moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 322.

    Remarks by Senator Porter.

    Motion carried.

Madam President:

    The first Conference Committee concerning Senate Bill No. 381, 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.

        Lawrence E. Jacobsen                                    Genie Ohrenschall

Mark Amodei                                                     Kathyrn A. McClain

Valerie Wiener                                                 John C. Carpenter

    Senate Conference Committee                              Assembly Conference Committee

    Senator Jacobsen moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 381.

    Remarks by Senator Jacobsen.

    Motion carried.

Appointment of Conference Committees

    Madam President appointed Senators O’Donnell, Washington and Care as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 381.

Reports of Conference Committees

Madam President:

    The first Conference Committee concerning Senate Bill No. 423, 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.

Maggie Carlton                                               Chris Giunchigliani

Dean A. Rhoads                                                 David R. Parks

Mark Amodei                                                     Dennis Nolan

    Senate Conference Committee                              Assembly Conference Committee

    Senator Carlton moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 423.

    Remarks by Senator Carlton.

    Motion carried.

Appointment of Conference Committees

    Madam President appointed Senators Townsend, O’Connell and Shaffer as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 423.

Reports of Conference Committees

Madam President:

    The first Conference Committee concerning Senate Bill No. 500, consisting of the undersigned members, has met, and reports that:

    It has agreed to recommend that the amendment of the Assembly be concurred in.

    It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA10, which is attached to and hereby made a part of this report.

    Conference Amendment.

    Amend the bill as a whole by deleting sec. 10.5 and adding:

    “Sec. 10.5.  (Deleted by amendment.)”.

    Amend sec. 12, page 2, line 32, by deleting “state controller” and inserting: “director of the department of administration”.

    Amend sec. 13, page 2, lines 37 and 38, by deleting “state controller” and inserting: “director of the department of administration”.

    Amend sec. 23, page 8, by deleting lines 1 through 8, and inserting:

    “Sec. 23.  1.  If an agency determines that it is impossible or impractical to collect a debt, the agency may request the state board of examiners to designate the debt as a bad debt. The state board of examiners, by an affirmative vote of the majority of the members of the board, may designate the debt as a bad debt if the board is satisfied that the collection of the debt is impossible or impractical.

    2.  Upon the designation of a debt as a bad debt pursuant to this section, the state board of examiners shall immediately notify the state controller thereof. Upon receiving the notification, the state controller shall direct the removal of the debt from the records and books or account of the agency to which the debt is owed or the State of Nevada, as appropriate. A bad debt that is removed pursuant to this section remains a legal and binding obligation owed by the debtor to the agency or the State of Nevada, as appropriate.”.

    Amend sec. 23, page 8, line 9, by deleting “2.” and inserting “3.”.

    Amend sec. 25, page 9, by deleting lines 3 through 5 and inserting:

    “(b) Upon approval of the attorney general, direct the cancellation of any accounts or money due the state.

    (c) Except as otherwise provided in subsection 3, withhold from the”.

    Amend sec. 25, page 9, line 9, by deleting “[(c)] (b)” and inserting “(c)”.

Ann O’Connell                                                  Douglas A. Bache

Jon C. Porter                                                     P. M. "Roy" Neighbors

    Senate Conference Committee                              Assembly Conference Committee

    Senator O’Connell moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 500.

    Remarks by Senator O’Connell.

    Motion carried.

Madam President:

    The first Conference Committee concerning Senate Bill No. 519, consisting of the undersigned members, has met, and reports that:

    It has agreed to recommend that the amendment of the Assembly be concurred in.

    It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA7, which is attached to and hereby made a part of this report.

    Conference Amendment.

    Amend sec. 4, page 4, after line 21, by inserting:

    17.  In accordance with applicable regulations of the board, a registered pharmacist who:

    (a) Is trained in and certified to carry out standards and practices for immunization programs;

    (b) Is authorized to administer immunizations pursuant to written protocols from a physician; and

    (c) Administers immunizations in compliance with the “Standards of Immunization Practices” recommended and approved by the United States Public Health Service Advisory Committee on Immunization Practices.”.

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

    “Sec. 5.  Chapter 639 of NRS is hereby amended by adding thereto a new section to read as follows:

    The board shall prepare an annual report concerning immunizations administered by pharmacists that includes, without limitation, the number of immunizations which were administered by pharmacists during the previous year, any problems or complaints reported to the board concerning immunizations administered by pharmacists and any other information that the board determines would be useful in determining whether pharmacists should continue to administer immunizations in this state. The report must be available for public inspection during regular business hours at the office of the board.”.

    Amend the title of the bill, second line, after “drugs;” by inserting: “requiring the state board of pharmacy to prepare an annual report concerning immunizations administered by pharmacists;”.

Mark Amodei                                                     Kathyrn A. McClain

Valerie Wiener                                                 Ellen M. Koivisto

Maurice E. Washington                                 Kathy A. Von Tobel

    Senate Conference Committee                              Assembly Conference Committee

    Senator Amodei moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 519.

    Remarks by Senator Amodei.

    Motion carried.

Madam President:

    The first Conference Committee concerning Assembly Bill No. 527, consisting of the undersigned members, has met, and reports that:

    It has agreed to recommend that the amendment of the Senate be concurred in.

    It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA5, which is attached to and hereby made a part of this report.

    Conference Amendment.

    Amend the bill as a whole by renumbering sec. 5 as sec. 6 and adding a new section designated sec. 5, following sec. 4, to read as follows:

    “Sec. 5.  It is the intent of the Legislature in enacting section 3 of this act that gifts, grants, donations and clinical fees be used to pay the principal and interest on the bonds issued pursuant to section 3 of this act for the construction and operation of the facilities authorized by the section. This act does not obligate the use of money from the state general fund other than any portion of the clinical fees that is derived from money appropriated for Nevada Medicaid or the Children’s Health Insurance Program.”.

Raymond D. Rawson                                        Mark A. Manendo

Joseph Neal                                                        P. M. "Roy" Neighbors


Bernice Mathews                                            Dawn Gibbons

    Senate Conference Committee                              Assembly Conference Committee

    Senator Rawson moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 527.

    Remarks by Senator Rawson.

    Motion carried.

    Senator Raggio moved that the Senate recess subject to the call of the Chair.

    Motion carried.

    Senate in recess at 7:05 p.m.

SENATE IN SESSION

    At 7:30 p.m.

    President Hunt presiding.

    Quorum present.

UNFINISHED BUSINESS

Reports of Conference Committees

Madam President:

    The first Conference Committee concerning Assembly Bill No. 15, consisting of the undersigned members, has met, and reports that:

    It has agreed to recommend that the amendment of the Senate be concurred in.

    It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA12, which is attached to and hereby made a part of this report.

    Conference Amendment.

    Amend sec. 5.5, page 7, line 30, by deleting “392.130,” and inserting: “392.130 and only if he has completed course-work requirements,”.

    Amend sec. 14, page 14, line 32, by deleting: “for 30 days.” and inserting: “for at least30 days [.] but not more than 6 months.”.

    Amend sec. 14, page 15, line 9, by deleting: “for 60 days.” and inserting: “for at least60 days [.] but not more than 1 year.”.

Maurice E. Washington                                 Ellen M. Koivisto

Valerie Wiener                                                 Chris Giunchigliani

Mark Amodei                                                     Barbara K. Cegavske

    Senate Conference Committee                              Assembly Conference Committee

    Senator O’Donnell moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 15.

    Remarks by Senator Washington.

    Motion carried.

Madam President:

    The first Conference Committee concerning Assembly Bill No. 289, consisting of the undersigned members, has met, and reports that:

    It has agreed to recommend that the amendment of the Senate be receded from.

William R. O’Donnell                                    Chris Giunchigliani

Lawrence E. Jacobsen                                    Lynn C. Hettrick

Joseph Neal                                                        Richard D. Perkins

    Senate Conference Committee                              Assembly Conference Committee


    Senator Raggio moved that the Senate do not adopt the report of the first Conference Committee concerning Assembly Bill No. 289, that a second conference be requested, and that Madam President appoint a second Conference Committee consisting of three members to meet with a like committee of the Assembly.

    Remarks by Senator Raggio and Washington.

    Motion carried.

Appointment of Conference Committees

    Madam President appointed Senators Rawson, Mathews and Coffin as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 289.

Reports of Conference Committees

Madam President:

    The first Conference Committee concerning Assembly Bill No. 615, consisting of the undersigned members, has met, and reports that:

    It has agreed to recommend that the amendment of the Senate be concurred in.

    It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA8, which is attached to and hereby made a part of this report.

    Conference Amendment.

    Amend sec. 3, page 2, line 31, after “25” by inserting “working”.

    Amend sec. 6, page 4, line 31, after “3.” by inserting: “The name of a candidate for partisan office for a minor political party other than a candidate for the office of President or Vice President of the United States must be placed on the ballot for the general election if the party has filed:

    (a) A certificate of existence;

    (b) A list of candidates for partisan office containing the name of the candidate pursuant to the provisions of NRS 293.1725 with the secretary of state; and

    (c) Not earlier than the first Monday in May preceding the general election and not later than 5 p.m. on the third Monday in May, a petition on behalf of the candidate with the secretary of state containing not less than:

        (1) Two hundred fifty signatures of registered voters if the candidate is to be nominated for a statewide office; or

        (2) One hundred signatures of registered voters if the candidate is to be nominated for any office except a statewide office.

A minor political party that places names of one or more candidates for partisan office on the ballot pursuant to this subsection may also place the names of one or more candidates for partisan office on the ballot pursuant to subsection 2.

    4.”.

    Amend sec. 6, page 4, line 33, by deleting “4.” and inserting “5.”.

    Amend sec. 6, page 4, line 34, after “2” by inserting: “or paragraph (c) of subsection 3”.

    Amend sec. 7, page 4, line 37, by deleting: “paragraph (c) of subsection 2” and inserting: “subsection 2 or 3”.

    Amend sec. 7, page 4, by deleting line 40 and inserting:

    “(a) Bear the name of the minor political party and, if applicable, the candidate and office to which the candidate is to be nominated.”.

    Amend sec. 7, page 5, line 2, by deleting “presence; and” and inserting “presence.”.

    Amend sec. 7, page 5, by deleting lines 3 through 10 and inserting:

    “(c) Bear the name of a county and be [verified by] submitted to the county clerk of that county for verification in the manner prescribed in NRS 293.1276 to 293.1279, inclusive, not later than 25 working days before the last day to file the petition . [is filed with the secretary of state pursuant to subsection 2 or 3 of NRS 293.1715.] A challenge to the form of a document must be made in a district court in the county that is named on the document.

    (d) Be signed only by registered voters of the county that is named on the document.

    2.  If the office to which the candidate is to be nominated is a county office, only the registered voters of that county may sign the petition. If the office to which the candidate is to be nominated is a district office, only the registered voters of that district may sign the petition.”.

    Amend sec. 7, page 5, line 11, by deleting “document” and inserting “petition”.

    Amend sec. 7, page 5, line 15, by deleting “this section” and inserting “subsection 3”.

    Amend sec. 7, page 5, line 16, after “county” by inserting “that is”.

    Amend sec. 8, page 5, line 19, by deleting “which” and inserting “that”.

    Amend sec. 8, page 5, line 22, by deleting “or”.

    Amend sec. 8, page 5, line 24, by deleting “293.1715,” and inserting: “293.1715; or

    (c) Whose candidates are entitled to appear on the ballot pursuant to subsection 3 of NRS 293.1715,”.

    Amend sec. 8, page 5, line 27, by deleting: “the last Friday in June.” and inserting: “5 p.m. on the third Monday in May.”.

    Amend sec. 8, page 5, line 29, after “acknowledgments.” by inserting: “The secretary of state shall strike from the list each candidate who is not entitled to appear on the ballot pursuant to subsection 3 of NRS 293.1715 if the minor political party is not entitled to place candidates on the ballot pursuant to subsection 2 of NRS 293.1715.”.

    Amend sec. 8, page 5, line 39, by deleting: “the first Wednesday in July.” and inserting: “5 p.m. on the third Monday in May.”.

    Amend sec. 8, page 5, line 42, by deleting “otherwise”.

    Amend sec. 8, pages 5 and 6, by deleting line 43 on page 5 and line 1 on page 6, and inserting: “on the ballot for the general election pursuant to subsection 2 of NRS 293.1715 must file with the secretary of state a certificate of nomination for”.

    Amend sec. 9, page 6, line 10, by deleting “293.171.” and inserting: “293.171 to 293.174, inclusive.”.

    Amend sec. 13, page 7, line 25, after “25” by inserting “working”.

    Amend sec. 13, page 7, line 28, after “(b)” by inserting: “Either of the following:

        (1)”.

    Amend sec. 13, page 7, between lines 31 and 32, by inserting:

        “(2) A petition of candidacy signed by 250 registered voters if the candidate is a candidate for statewide office, or signed by 100 registered voters if the candidate is a candidate for any office other than a statewide office.”.

    Amend sec. 13, page 7, line 38, by deleting “which” and inserting “that”.

    Amend sec. 13, page 7, by deleting lines 39 through 43 and inserting: “must be [verified by] submitted to that county clerk for verification in the manner prescribed in NRS 293.1276 to 293.1279, inclusive, not later than 25 working days before the last day to file the petition [is filed] pursuant to subsection 4. Each [signer] person who signs the petition shall add to his signature the address”.

    Amend sec. 13, page 8, by deleting line 12 and inserting: “Monday in May.”.

    Amend sec. 13, page 8, lines 21 and 22, by deleting: “Tuesday in August.” and inserting: “Monday in May.”.

    Amend sec. 13, page 8, line 23, by deleting: “Tuesday in August.” and inserting: “Monday in May.”.

    Amend sec. 13, page 8, lines 32 and 33, by deleting: “of the first Wednesday in July.” and inserting: “on the third Monday in May.”.

    Amend sec. 34, page 18, line 40, after “25” by inserting “working”.

    Amend sec. 41, page 24, line 23, after “documents.” by inserting: “The seats for city councilmen must be designated by the numbers one through four , which [number] numbers must correspond with the wards the candidates for city councilmen will seek to represent . A candidate for the office of city councilman shall include in his declaration of candidacy the number of the ward which he seeks to represent. Each candidate for city council must be designated as a candidate for the city council seat that corresponds with the ward that he seeks to represent.”.

    Amend sec. 41, page 24, lines 25 and 26, by deleting: “five or more candidates for the office of councilman,” and inserting: “for a particular city council seat,”.

    Amend sec. 41, page 24, line 29, by deleting: “subsections 4 and 5,” and inserting “subsection 4,”.

    Amend sec. 41, page 24, line 30, by deleting “mayor and” and inserting “mayor,”.

    Amend sec. 41, page 24, lines 31 and 32, by deleting: “the names of the four candidates for city councilman” and inserting: “each city council seat”.

    Amend sec. 41, page 24, line 34, by deleting “mayor or” and inserting “mayor,”.

    Amend sec. 41, page 24, line 35, before “receives” by inserting: “or a city council seat”.

    Amend sec. 41, pages 24 and 25, by deleting lines 38 through 42 on page 24 and lines 1 through 6 on page 25.

    Amend the bill as a whole by adding a new section designated sec. 44, following sec. 43, to read as follows:

    “Sec. 44.  Sections 6 to 9, inclusive, 13 and 41 of this act become effective at 12:01 a.m. on October 1, 1999.”.

William R. O’Donnell                                    Sheila Leslie

Jon C. Porter                                                     Kathyrn A. McClain

Joseph Neal                                                        Kathy A. Von Tobel

    Senate Conference Committee                              Assembly Conference Committee

    Senator O’Donnell moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 615.

    Remarks by Senator O’Donnell.

    Motion carried.

Appointment of Conference Committees

    Madam President appointed Senators McGinness, Jacobsen and Coffin, as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 167.

    Madam President appointed Senators O’Connell, Schneider and Carlton as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 451.

INTRODUCTION, FIRST READING AND REFERENCE

    Assembly Bill No. 72.

    Senator Rawson moved that the bill be referred to the Committee on Judiciary.

    Motion carried.

    Assembly Bill No. 170.

    Senator Rawson moved that the bill be referred to the Committee on Legislative Affairs and Operations.

    Motion carried.

    Assembly Bill No. 287.

    Senator Rawson moved that the bill be referred to the Committee on Judiciary.

    Motion carried.

    Assembly Bill No. 368.

    Senator Rawson moved that the bill be referred to the Committee on Finance.

    Motion carried.

    Assembly Bill No. 454.

    Senator Rawson moved that the bill be referred to the Committee on Human Resources and Facilities.

    Motion carried.

    Assembly Bill No. 519.

    Senator Rawson moved that the bill be referred to the Committee on Government Affairs.

    Motion carried.

Assembly Bill No. 521.

    Senator Rawson moved that the bill be referred to the Committee on Finance.

    Motion carried.

    Assembly Bill No. 595.

    Senator Rawson moved that the bill be referred to the Committee on Government Affairs.

    Motion carried.

    Senator Raggio moved that the action whereby Assembly Bill No. 595 was referred to the Committee on Government Affairs be rescinded.

    Remarks by Senator Raggio.

    Motion carried.

    Senator Raggio moved that the bill be referred to the Committee on Finance.

    Motion carried.

    Assembly Bill No. 622.

    Senator Rawson moved that the bill be referred to the Committee on Finance.

    Motion carried.

    Assembly Bill No. 679.

    Senator Rawson moved that the bill be referred to the Committee on Finance.

    Motion carried.

    Assembly Bill No. 689.

    Senator Rawson moved that the bill be referred to the Committee on Human Resources and Facilities.

    Motion carried.

    Assembly Bill No. 691.

    Senator Rawson moved that the bill be referred to the Committee on Finance.

    Motion carried.


    Assembly Bill No. 693.

    Senator Rawson moved that the bill be referred to the Committee on Natural Resources.

    Motion carried.

    Assembly Bill No. 694.

    Senator Rawson moved that the bill be referred to the Committee on Natural Resources.

    Motion carried.

    Assembly Bill No. 697.

    Senator Rawson moved that the bill be referred to the Committee on Finance.

    Motion carried.

SECOND READING AND AMENDMENT

    Assembly Bill No. 64.

    Bill read second time.

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

    Amendment No. 1197.

    Amend the bill as a whole by adding new sections designated sections 3.3 and 3.5, following sec. 3, to read as follows:

    “Sec. 3.3.  “Commercial mortgage loan” means a loan that:

    1.  Directly or indirectly, is secured by a lien on commercial property; and

    2.  Is created with the consent of the owner of the commercial property.

    Sec. 3.5.  “Commercial property” means any real property which is located in this state and which is not used for a residential dwelling or dwellings intended for occupancy by four or fewer families.”.

    Amend the bill as a whole by adding a new section designated sec. 6.5, following sec. 6, to read as follows:

    “Sec. 6.5.  “Institutional investor” means a person who, in the regular course of business, makes commercial mortgage loans of more than $250,000 that are funded exclusively from one or more of the following sources:

    1.  The person’s cash, corporate capital or warehouse credit lines at a depository financial institution or other sources that are liability items on the person’s financial statements.

    2.  Correspondent contracts between the person and another institutional investor or between the person and a depository financial institution, trust company, profit-sharing or pension trust, installment lender or insurance company.

    3.  An affiliate’s cash, corporate capital or warehouse credit lines at a depository financial institution or other sources that are liability items on the affiliate’s financial statements for which the affiliate’s assets are pledged. As used in this subsection, “affiliate” means another person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the person who is the institutional investor.”.

    Amend sec. 8, page 2, by deleting lines 7 through 13 and inserting:

    “Sec. 8.  1.  “Mortgage company” means any of the following:

    (a) A person who, directly or indirectly:

        (1) Holds himself out as being able to:

            (I) Buy or sell notes secured by liens on real property; or

            (II) Make loans secured by liens on real property using his own money; and

        (2) Does not engage in any other act or transaction described in the”.

    Amend sec. 8, page 2, between lines 16 and 17, by inserting:

    “(b) A person who, directly or indirectly:

        (1) Negotiates, originates or makes or offers to negotiate, originate or make commercial mortgage loans as an agent for or on behalf of an institutional investor; and

        (2) Does not engage in any other act or transaction described in the definition of “mortgage broker,” as set forth in section 57 of this act, unless the person is also licensed as a mortgage broker pursuant to chapter 645B of NRS.”.

    Amend sec. 41, page 19, by deleting lines 31 through 42 and inserting: “in the State of Nevada . [, every construction control]

    2.  Except as otherwise provided in subsection 1 and section 40 of this act, as a condition to doing business in [the State of Nevada shall, within 30 days immediately following July 1, 1965, file] this state, each construction control shall deposit with the state contractors’ board and keep in full force and effect a surety bond, in the amount set forth in subsection 4, which is executed by some corporation authorized to issue surety bonds in this state . [, in a penal sum equal to 1 1/4 times the amount of capital in the business but in no event less than $20,000, and such bond must be kept in full force and effect or replaced by a like bond as a condition to continuing to do business as a construction control in the State of Nevada.

    2.  The form of the bond required is as follows:]

    3.  The surety bond must be in substantially the following form:”.

    Amend sec. 41, page 20, between lines 39 and 40, by inserting:

    “4.  Each construction control shall initially deposit a surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of section 40 of this act in the amount of $20,000. Not later than 3 months after the initial deposit and annually thereafter, the construction control shall:

    (a) Submit to the state contractors’ board a signed and notarized affidavit attesting to the average monthly balance in the trust account maintained by the construction control; and

    (b) Deposit a surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of section 40 of this act in the following amount based upon the average monthly balance in the trust account maintained by the construction control:

            AVERAGE MONTHLY BALANCE                    AMOUNT OF BOND OR
                                                                                              SECURITY REQUIRED

Less than $2,000,000....................................................................... $20,000

$2,000,000 or more but less than $4,000,000............................... 40,000

$4,000,000 or more but less than $6,000,000............................... 60,000

$6,000,000 or more but less than $8,000,000............................... 80,000

$8,000,000 or more but less than $12,000,000.......................... 120,000

$12,000,000 or more but less than $20,000,000........................ 200,000

$20,000,000 or more..................................................................... 250,000”.

    Amend sec. 42, pages 20 and 21, by deleting lines 42 and 43 on page 20 and lines 1 and 2 on page 21, and inserting: “645A.031, [at the time of filing an application for a license as an] as a condition to doing business in this state, each escrow agency[, the applicant] shall deposit with the commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount [of $50,000,] set forth in subsection 4, which is executed by a corporate surety satisfactory to the”.

    Amend sec. 42, page 21, by deleting lines 25 and 26 and inserting: “an escrow agent or agency] and is required to furnish a bond [in the amount of $50,000] , which is conditioned as set forth in this bond:”.

    Amend sec. 42, page 22, between lines 13 and 14, by inserting:

    “4.  Each escrow agency shall deposit a corporate surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of NRS 645A.031 in the following amount based upon the average monthly balance of the trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160:

        AVERAGE MONTHLY BALANCE                        AMOUNT OF BOND OR

                                                                                              SECURITY REQUIRED

$50,000 or less...................................................................................... $20,000

More than $50,000 but not more than $250,000.............................. 50,000

More than $250,000 but not more than $500,000......................... 100,000

More than $500,000 but not more than $750,000......................... 150,000

More than $750,000 but not more than $1,000,000...................... 200,000

More than $1,000,000......................................................................... 250,000

The commissioner shall determine the appropriate amount of the surety bond or substitute form of security that must be deposited initially by the escrow agency based upon the expected average monthly balance of the trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160. After the initial deposit, the commissioner shall, on a semiannual basis, determine the appropriate amount of the surety bond or substitute form of security that must be deposited by the escrow agency based upon the average monthly balance of the trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160.”.

    Amend sec. 44, page 23, by deleting lines 9 through 20 and inserting: “pursuant to this chapter in the same office or place of business as [a] :

    (a) A firm or corporation that is exempt from licensing as a mortgage company pursuant to subsection 6 of section 10 of this act.

    (b) A mortgage company if:

    [(a)] (1) The licensee and the mortgage company:

        [(1)] (I) Operate as separate legal entities;

        [(2)] (II) Maintain separate accounts, books and records;

        [(3)] (III) Are subsidiaries of the same parent corporation; and

        [(4)] (IV) Maintain separate licenses; and

    [(b)] (2) The mortgage company is licensed by this state pursuant to sections 2 to 39, inclusive, of this act and does not [receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.] conduct any business as a mortgage broker licensed”.

    Amend sec. 46, page 23, line 25, by deleting: “or mortgage agent”.

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

    “Sec. 53.5.  “Financial services license or registration” means any license or registration issued in this state or any other state, district or territory of the United States that authorizes the person who holds the license or registration to engage in any business or activity described in the provisions of this chapter, sections 2 to 39, inclusive, of this act, chapter 604, 645, 645A, 645C or 649 of NRS or Title 55 or 56 of NRS.”.

    Amend sec. 55, page 24, line 2, by deleting: “or mortgage agent”.

    Amend sec. 57, page 24, line 14, by deleting “any” and inserting “a”.

    Amend the bill as a whole by adding new sections designated sections 61.3 through 61.7, following sec. 61, to read as follows:

    “Sec. 61.3.  1.  The advisory council on mortgage investments and mortgage lending is hereby created.

    2.  The advisory council consists of five members appointed by the legislative commission from a list of persons provided by the commissioner.

    3.  The members of the advisory council:

    (a) Must be persons who have experience with, an interest in or a knowledge of issues relating to mortgage investments or mortgage lending. Such persons may include, without limitation, investors, public officers and employees, licensees and persons who have engaged in or been involved with any business, profession or occupation relating to mortgage investments or mortgage lending.

    (b) Serve terms of 2 years and at the pleasure of the legislative commission.

    (c) May be reappointed.

    (d) Serve without compensation and may not receive a per diem allowance or travel expenses.

    4.  Any vacancy in the membership of the advisory council must be filled for the remainder of the unexpired term in the same manner as the original appointment.

    5.  A member of the advisory council who is an officer or employee of this state or a political subdivision of this state must be relieved from his duties without loss of his regular compensation so that he may prepare for and attend meetings of the advisory council and perform any work necessary to carry out the duties of the advisory council in the most timely manner practicable. A state agency or political subdivision of this state shall not require an officer or employee who is a member of the advisory council to make up the time he is absent from work to carry out his duties as a member of the advisory council or use annual vacation or compensatory time for the absence.

    6.  Notwithstanding any other provision of law, a member of the advisory council:

    (a) Is not disqualified from public employment or holding a public office because of his membership on the advisory council; and

    (b) Does not forfeit his public office or public employment because of his membership on the advisory council.

    Sec. 61.5.  1.  The members of the advisory council on mortgage investments and mortgage lending shall elect a chairman and a vice chairman from among their membership. The vice chairman shall perform the duties of the chairman during any absence of the chairman.

    2.  The advisory council may meet at least once each calendar quarter and at other times on the call of the chairman or a majority of its members.

    3.  The meetings of the advisory council may be held at any location designated by the chairman or a majority of its members.

    4.  A majority of the members of the advisory council constitutes a quorum for the transaction of all business.

    5.  The chairman may appoint subcommittees of the members of the advisory council to consider specific problems relating to mortgage investments or mortgage lending.

    Sec. 61.7.  The purpose of the advisory council on mortgage investments and mortgage lending is to:

    1.  Consult with, advise and make recommendations to the commissioner in all matters relating to mortgage investments and mortgage lending.

    2.  Make recommendations to the legislature concerning the enactment of any legislation relating to mortgage investments and mortgage lending.

    3.  Make recommendations to the legislature and the commissioner concerning educational requirements and other qualifications for persons who are engaged in any business, profession or occupation relating to mortgage investments and mortgage lending.

    4.  Conduct hearings, conferences and special studies on all matters relating to mortgage investments and mortgage lending.

    5.  Provide a forum for the consideration and discussion of all matters relating to mortgage investments and mortgage lending.

    6.  Gather and disseminate information relating to mortgage investments and mortgage lending.

    7.  Engage in other activities that are designed to promote, improve and protect the reliability and stability of mortgage investments and mortgage lending in this state.”.

    Amend sec. 62, page 24, line 40, by deleting: “Except as otherwise provided in section 78 of this act:”.

    Amend sec. 62, page 25, line 19, by deleting: “or mortgage agent”.

    Amend sec. 62, page 25, line 21, by deleting: “broker or mortgage agent,” and inserting “broker,”.

    Amend sec. 62, page 25, line 22, by deleting: “or mortgage agent”.

    Amend sec. 63, pages 25 and 26, by deleting lines 39 through 41 on page 25 and lines 1 through 3 on page 26, and inserting:

    “Sec. 63.  The commissioner may refuse to issue a license to an applicant if the commissioner has reasonable cause to believe that the applicant or any general partner, officer or director of the applicant has, after October 1, 1999, employed or proposed to employ a person as a mortgage agent or authorized or proposed to authorize a person to be associated with a mortgage broker as a mortgage agent at a time when the applicant or the general partner, officer or director knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person:

    1.  Had been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

    2.  Had a financial services license or registration suspended or revoked within the immediately preceding 10 years.”.

    Amend the bill as a whole by adding a new section designated sec. 64.5, following sec. 64, to read as follows:

    “Sec. 64.5.  The provisions of sections 63 and 64 of this act do not limit the authority of the commissioner to refuse to issue a license to an applicant for any other lawful reason or pursuant to any other provision of law.”.

    Amend sec. 66, pages 26 and 27, by deleting lines 25 through 43 on page 26 and lines 1 through 3 on page 27, and inserting:

    “Sec. 66.  1.  A person shall not act as or provide any of the services of a mortgage agent or otherwise engage in, carry on or hold himself out as engaging in or carrying on the activities of a mortgage agent if the person:

    (a) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

    (b) Has had a financial services license or registration suspended or revoked within the immediately preceding 10 years.

    2.  A mortgage agent may not be associated with or employed by more than one mortgage broker at the same time.

    3.  A mortgage broker shall register with the division each person who will be associated with or employed by the mortgage broker as a mortgage agent. To register a person as a mortgage agent, a mortgage broker must:

    (a) Submit to the division a registration form which is provided by the division and which:

        (1) States the name, residence address and business address of the person;

        (2) Is signed by the person;

        (3) Includes a provision by which the person gives his written consent to an investigation of his credit history, criminal history and background; and

        (4) Includes any other information or supporting materials required by the regulations adopted by the commissioner. Such information or supporting materials may include, without limitation, a complete set of fingerprints from the person, the social security number of the person and other forms of identification of the person; and

    (b) Pay the actual costs and expenses incurred by the division to investigate the credit history, criminal history and background of the person. All money received pursuant to this paragraph must be placed in the investigative account created by NRS 232.545.

    4.  A mortgage broker shall not employ a person as a mortgage agent or authorize a person to be associated with the mortgage broker as a mortgage agent if the mortgage broker has not registered the person with the division pursuant to subsection 3 or if the person:

    (a) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

    (b) Has had a financial services license or registration suspended or revoked within the immediately preceding 10 years.

    5.  If a mortgage agent terminates his association or employment with a mortgage broker for any reason, the mortgage broker shall, not later than the end of the next business day following the date of termination:

    (a) Deliver to the mortgage agent or send by certified mail to the last known residence address of the mortgage agent a written statement which advises him that his termination is being reported to the division; and

    (b) Deliver or send by certified mail to the division:

        (1) A written statement of the circumstances surrounding the termination; and

        (2) A copy of the written statement that the mortgage broker delivers or mails to the mortgage agent pursuant to paragraph (a).”.

    Amend sec. 67, page 27, by deleting lines 6 and 7 and inserting:

    “2.  The provisions of this chapter do not prohibit a licensee from:”.

    Amend sec. 68, page 27, by deleting lines 18 through 23 and inserting: “the licensee shall fully disclose his status as, connection to or relationship with the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer to each investor, and the licensee shall not require, as a condition to an investor acquiring ownership of or a beneficial interest in a loan secured by a lien on real property, that the investor transact business with or use the services of the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer or that the investor authorize the licensee to transact business with or use the services of the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer on behalf of the investor.”.

    Amend sec. 68, page 27, by deleting lines 32 through 34 and inserting: “chapter; and

    (b) Any general partner, officer or director of such a person.”.

    Amend sec. 69, pages 27 and 28, by deleting lines 35 through 42 on page 27 and lines 1 through 22 on page 28, and inserting:

    “Sec. 69.  1.  If a mortgage broker maintains any accounts described in NRS 645B.175, the mortgage broker and his mortgage agents shall not engage in any activity that is authorized pursuant to this chapter, unless the mortgage broker maintains continuously a minimum net worth in the following amount based upon the average monthly balance of the accounts maintained by the mortgage broker pursuant to NRS 645B.175:

                                                                                                                      MINIMUM

            AVERAGE MONTHLY BALANCE                  NET WORTH REQUIRED

    $100,000 or less................................................................................ $25,000

    More than $100,000 but not more than $250,000....................... 50,000

    More than $250,000 but not more than $500,000..................... 100,000

    More than $500,000 but not more than $1,000,000.................. 200,000

    More than $1,000,000..................................................................... 250,000

The commissioner shall determine the appropriate initial minimum net worth that must be maintained by the mortgage broker pursuant to this section based upon the expected average monthly balance of the accounts maintained by the mortgage broker pursuant to NRS 645B.175. After determining the initial minimum net worth that must be maintained by the mortgage broker, the commissioner shall, on an annual basis, determine the appropriate minimum net worth that must be maintained by the mortgage broker pursuant to this section based upon the average monthly balance of the accounts maintained by the mortgage broker pursuant to NRS 645B.175.

    2.  If requested by the commissioner, a mortgage broker who is subject to the provisions of this section and his mortgage agents shall submit to the commissioner or allow the commissioner to examine any documentation or other evidence that is related to determining the net worth of the mortgage broker.

    3.  The commissioner:”.

    Amend sec. 72, page 29, line 32, by deleting “1.”.

    Amend sec. 72, pages 29 and 30, by deleting lines 39 through 42 on page 29 and lines 1 through 12 on page 30.

    Amend sec. 73, page 30, line 13, after “73.” by inserting “1.”.

    Amend sec. 73, page 30, by deleting lines 19 through 39 and inserting:

    “(a) Include in the report that the mortgage broker submits to the commissioner pursuant to subsection 2 of NRS 645B.080 the information relating to delinquencies in payments and defaults that is required by the regulations adopted pursuant to subsection 2;

    (b) Not later than 15 days after the last day of each such month, mail to the last known address of each investor who owns a beneficial interest in the loan a notice containing the information relating to delinquencies in payments and defaults that is required by the regulations adopted pursuant to subsection 2; and

    (c) Comply with the provisions of this section each month on a continuing basis until:

        (1) The debtor or his designee remedies the delinquency in payments and any default; or

        (2) The lien securing the loan is extinguished.

    2.  The commissioner:

    (a) Shall adopt regulations prescribing the information relating to delinquencies in payments and defaults that a mortgage broker must include in his report to the commissioner and in the notice mailed to investors pursuant to subsection 1. Such regulations may provide for variations between the information that a mortgage broker must include in his report to the commissioner and the information that a mortgage broker must include in the notice mailed to investors.

    (b) May adopt any other regulations that are necessary to carry out the provisions of this section.”.

    Amend sec. 75, page 31, by deleting lines 17 through 26 and inserting: “services for loans in which the investor owns a beneficial interest; and

    (b) The provisions of the power of attorney:

        (1) Have been approved by the commissioner;

        (2) Expressly prohibit the mortgage broker and his mortgage agents from engaging in any act or transaction that subordinates the priority of a recorded deed of trust unless, before such an act or transaction, the mortgage broker obtains written approval for the subordination from the investor; and

        (3) Expressly prohibit the mortgage broker and his mortgage agents from using or releasing any money in which the investor owns a beneficial interest with regard to a specific loan for a purpose that is not directly related to providing services for the loan unless, before any such money is used or released for another purpose, the mortgage broker obtains written approval from the investor to use or release the money for the other purpose.

    2.  A mortgage broker or mortgage agent shall not act as the attorney in fact or the agent of an investor with respect to the giving of written approval pursuant to paragraph (b) of subsection 1. An investor and a mortgage broker or mortgage agent may not agree to alter or waive the provisions of this section by contract or other agreement. Any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.

    3.  A power of attorney which designates a mortgage broker or”.

    Amend the bill as a whole by deleting sec. 78 and adding:

    “Sec. 78.  (Deleted by amendment.)”.

    Amend sec. 79, page 34, by deleting lines 38 and 39 and inserting: “association, the commissioner may take any disciplinary action set”.

    Amend sec. 81, page 35, line 10, by deleting: “or section 78 of this act”.

    Amend sec. 82, page 35, by deleting lines 28 and 29 and inserting: “limitation, a violation of any provision of NRS 645B.100 or 645B.120; or”.

    Amend sec. 85, page 37, by deleting lines 32 and 33 and inserting:

    “6.  Except as otherwise provided in this subsection, any firm or corporation:”.

    Amend sec. 86, page 38, by deleting lines 40 and 41 and inserting: “mortgage agent.”.

    Amend sec. 86, page 39, line 10, by deleting “and” and inserting: “and, if applicable,”.

    Amend sec. 86, page 39, by deleting lines 17 through 43 and inserting:

    “2.  If a mortgage broker will conduct business at one or more branch offices within this state, the mortgage broker must apply for a license for each such branch office.

    3.  Except as otherwise provided in this chapter, the commissioner shall issue a license to an applicant as a mortgage [company] broker if:”.

    Amend sec. 86, page 40, line 10, by deleting: “or mortgage agent”.

    Amend sec. 87, page 40, line 33, by deleting: “or mortgage agent”.

    Amend sec. 87, page 41, line 1, by deleting: “or mortgage agent”.

    Amend sec. 88, pages 41 and 42, by deleting lines 19 through 42 on page 41 and lines 1 through 4 on page 42, and inserting:

    “645B.025 1.  A [licensee] mortgage broker shall post each license in a conspicuous place in the office to which it pertains.

    2.  A [license] mortgage broker may not [be transferred or assigned] transfer or assign a license to another person, unless the commissioner gives his written approval.”.

    Amend sec. 89, page 44, by deleting lines 2 through 26 and inserting:

    “6.  A person must pay the following fees to apply for or to renew a”.

    Amend sec. 89, page 44, line 32, by deleting “8.” and inserting “7.”.

    Amend sec. 89, page 44, line 35, by deleting “9.” and inserting “8.”.

    Amend sec. 90, page 44, line 41, by deleting “and”.

    Amend sec. 90, page 44, line 42, by deleting “mortgage agents”.

    Amend sec. 90, page 45, line 27, by deleting: “and mortgage agents”.

    Amend sec. 92, page 46, line 13, by deleting “and”.

    Amend sec. 92, page 46, line 14, by deleting “mortgage agent”.

    Amend sec. 92, page 46, line 15, by deleting: “or mortgage agent”.

    Amend sec. 92, page 46, line 17, by deleting: “or mortgage agent”.

    Amend sec. 93, page 46, line 42, by deleting: “or mortgage agent”.

    Amend sec. 93, page 47, line 2, by deleting: “or mortgage agent”.

    Amend sec. 93, page 47, line 6, by deleting: “or mortgage agent”.

    Amend sec. 93, page 47, line 9, by deleting “or”.

    Amend sec. 93, page 47, line 10, by deleting “mortgage agent”.

    Amend sec. 93, page 47, line 15, by deleting: “broker or mortgage agent;” and inserting “broker;”.

    Amend sec. 95, page 48, by deleting lines 4 through 6 and inserting:

    “645B.100  1.  [The] For each violation committed by an applicant, whether or not he is”.

    Amend sec. 95, page 48, by deleting lines 19 through 22 and inserting:

    “2.  For each violation committed by a licensee, the commissioner may [require a licensee to pay] impose upon the licensee an administrative fine of not more than [$500 for each violation he commits or] $10,000, may suspend, revoke or place conditions upon his license, or may do both, [at any time] if the”.

    Amend sec. 95, page 49, by deleting lines 27 through 29 and inserting: “cause for the revocation of the license of the mortgage broker, whether or not the mortgage agent commits the act;

    (s) Has employed a person as a mortgage agent or authorized a person to be associated with the licensee as a mortgage agent at a time when the licensee knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person:

        (1) Had been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or

        (2) Had a financial services license or registration suspended or revoked within the immediately preceding 10 years; or

    (t) Has not conducted verifiable business as a mortgage [company]”.

    Amend sec. 95, pages 49 and 50, by deleting lines 39 through 43 on page 49 and lines 1 through 37 on page 50.

    Amend sec. 96, page 50, line 43, by deleting: “broker or mortgage agent,” and inserting “broker,”.

    Amend sec. 96, page 51, line 8, by deleting: “or mortgage agent”.

    Amend sec. 98, page 51, line 35, by deleting: “broker, mortgage agent” and inserting “broker”.

    Amend sec. 98, page 51, line 37, by deleting: “or mortgage agent”.

    Amend sec. 98, page 51, line 43, by deleting: “or mortgage agent”.

    Amend sec. 98, page 52, lines 2 and 3 by deleting: “or mortgage broker”.

    Amend sec. 98, page 52, line 21, by deleting: “broker, mortgage agent” and inserting “broker”.

    Amend sec. 98, page 52, line 29, by deleting: “broker, mortgage agent” and inserting “broker”.

    Amend sec. 98, page 52, line 32, by deleting: “broker, mortgage agent” and inserting “broker”.

    Amend sec. 101, page 55, by deleting lines 5 and 6 and inserting: “the amount of any advance fee, salary, deposit or money paid to [any mortgage company] a mortgage broker and his mortgage agents or any other person to obtain a”.

    Amend sec. 102, page 55, by deleting line 31 and inserting:

    “645B.170 1.  All money paid to [the mortgage company] a mortgage broker and his mortgage agents for”.

    Amend sec. 102, page 55, line 34, by deleting “[a bank]” and inserting: “[a bank or credit union]”.

    Amend sec. 104, page 59, lines 6 and 7, by deleting “[any bank]” and inserting: “[any bank or credit union]”.

    Amend sec. 105, page 59, line 32, by deleting “subsection 5;” and inserting “this section;”.

    Amend sec. 105, page 59, after “3.” by inserting: “In addition to the requirements of subsections 1 and 2, a mortgage broker or mortgage agent shall not accept money from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property, unless the mortgage broker or mortgage agent gives the investor a written form by which the investor may request that the mortgage broker authorize the commissioner to release the mortgage broker’s financial statement to the investor. Such a form must be given to the investor for each loan. If the investor, before giving money to the mortgage broker for the loan, requests that the mortgage broker authorize the release of a financial statement pursuant to this subsection, the mortgage broker and his mortgage agents shall not accept money from the investor for that loan until the mortgage broker receives notice from the commissioner that the financial statement has been released to the investor.

    4.”.

    Amend sec. 105, page 60, line 3, by deleting “4.” and inserting “5.”.

    Amend sec. 105, page 60, line 6, by deleting “5.” and inserting “6.”.

    Amend sec. 105, page 60, by deleting lines 34 through 37 and inserting: “officer or director of the mortgage broker within the preceding 12 months, and the nature of any such disciplinary action;

        (4) Whether the mortgage broker or any general partner, officer or director of the mortgage broker has been convicted”.

    Amend sec. 105, page 61, line 1, by deleting “6.” and inserting “7.”.

    Amend sec. 105, page 61, line 3, by deleting “subsection 5,” and inserting “this section,”.

    Amend sec. 105, page 61, by deleting line 12 and inserting:

    “8.  In carrying out the provisions of subsection 7, the commissioner”.

    Amend sec. 105, page 61, line 22, by deleting “8.” and inserting “9.”.

    Amend sec. 105, page 61, line 29, by deleting “disclosure”.

    Amend sec. 108, pages 62 and 63, by deleting lines 28 through 42 on page 62 and lines 1 through 13 on page 63, and inserting:

    “645B.189 1.  Each mortgage [company] broker shall submit any proposed advertisement [it] that the mortgage broker intends to use in carrying on his business to the commissioner for approval. [The commissioner shall, within 5 working days after receiving the advertisement, approve or disapprove its use and notify the company of that decision.]

    2.  In addition to the requirements set forth in this chapter, each”.

    Amend sec. 108, page 63, between lines 19 and 20, by inserting:

    “3.  If a mortgage broker violates any provision of NRS 598.0903 to 598.0999, inclusive, concerning deceptive trade practices or any federal statute or regulation concerning deceptive advertising or the advertising of interest rates, in addition to any sanction or penalty imposed by state or federal law upon the mortgage broker for the violation, the commissioner may take any disciplinary action set forth in subsection 2 of NRS 645B.100 against the mortgage broker.”.

    Amend sec. 113, page 64, line 33, by deleting: “or mortgage agent”.

    Amend sec. 113, page 64, line 35, by deleting: “or mortgage agent”.

    Amend sec. 113, page 64, line 36, by deleting: “or mortgage agent”.

    Amend sec. 118, page 66, line 31, by deleting “bank accounts;” and inserting: “accounts in banks or credit unions;”.

    Amend sec. 118, page 67, line 11, by deleting “80.270,” and inserting “80.280,”.

    Amend sec. 120, page 72, line 6, after “and” by inserting: “the investigation of”.

    Amend sec. 120, page 72, by deleting line 13 and inserting: “and in investigating persons associated with those institutions;”.

    Amend sec. 122, page 73, by deleting lines 21 and 22 and inserting: “[in] :

    (a) In the order the checks were written;

    (b) From the lowest check number to the highest check number; or

    (c) In order of ascending amounts, the check for the smallest sum being presented first.”.

    Amend sec. 125, page 75, by deleting lines 9 through 21 and inserting: “this chapter in the same office or place of business as [a] :

    (a) A mortgage broker if:

        (1) The licensee and the mortgage broker:

            (I) Operate as separate legal entities;

            (II) Maintain separate accounts, books and records;

            (III) Are subsidiaries of the same parent corporation; and

            (IV) Maintain separate licenses; and

        (2) The mortgage broker is licensed by this state pursuant to chapter 645B of NRS and does not receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.

    (b) A mortgage company if:

    [(a)] (1) The licensee and the mortgage company:

        [(1)] (I) Operate as separate legal entities;

        [(2)] (II) Maintain separate accounts, books and records;

        [(3)] (III) Are subsidiaries of the same parent corporation; and

        [(4)] (IV) Maintain separate licenses; and

    [(b)] (2) The mortgage company is licensed by this state pursuant to sections 2 to 39, inclusive, of this act and , if the mortgage company is also licensed as a mortgage broker pursuant to chapter 645B of NRS, does not receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.”.

    Amend sec. 127, page 75, by deleting lines 25 through 28 and inserting: “Title and except as otherwise provided in subsection 4 and section 128 of this act, as a condition to doing business in this state, each title agent and title insurer shall deposit with the commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount set forth in subsection 3, which is executed by a corporate surety satisfactory to the”.

    Amend sec. 127, page 76, line 5, by deleting: “in the amount of $250,000,”.

    Amend sec. 127, page 76, by deleting lines 36 through 41 and inserting:

    “3.  Each title agent and title insurer shall deposit a corporate surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of section 128 of this act in an amount that:

    (a) Is not less than $20,000 or 2 percent of the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250, whichever is greater; and

    (b) Is not more than $250,000.

The commissioner shall determine the appropriate amount of the surety bond or substitute form of security that must be deposited initially by the title agent or title insurer based upon the expected average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250. After the initial deposit, the commissioner shall, on an annual basis, determine the appropriate amount of the surety bond or substitute form of security that must be deposited by the title agent or title insurer based upon the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250.

    4.  A title agent or title insurer may offset or reduce the amount of the surety bond or substitute form of security that the title agent or title insurer is required to deposit pursuant to subsection 3 by the amount of any of the following:

    (a) Cash or securities deposited with the commissioner in this state pursuant to NRS 680A.140 or 682B.015.”.

    Amend sec. 127, page 77, by deleting lines 4 through 6 and inserting:

    “(e) Other bonds or policies of insurance maintained by the title agent”.

    Amend the bill as a whole by adding a new section designated sec. 130.5, following sec. 130, to read as follows:

    “Sec. 130.5.  Section 15 of Senate Bill No. 39 of this session is hereby amended to read as follows:

    Sec. 15.  NRS 80.015 is hereby amended to read as follows:

    80.015 1.  For the purposes of this chapter, the following activities do not constitute doing business in this state:

    (a) Maintaining, defending or settling any proceeding;

    (b) Holding meetings of the board of directors or stockholders or carrying on other activities concerning internal corporate affairs;

        (c) Maintaining [bank accounts;] accounts in banks or credit unions;

    (d) Maintaining offices or agencies for the transfer, exchange and registration of the corporation’s own securities or maintaining trustees or depositaries with respect to those securities;

        (e) Making sales through independent contractors;

    (f) Soliciting or receiving orders outside of this state through or in response to letters, circulars, catalogs or other forms of advertising, accepting those orders outside of this state and filling them by shipping goods into this state;

    (g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

    (h) Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;

        (i) Owning, without more, real or personal property;

    (j) Isolated transactions completed within 30 days and not a part of a series of similar transactions;

        (k) The production of motion pictures as defined in NRS 231.020;

    (l) Transacting business as an out-of-state depository institution pursuant to the provisions of Title 55 of NRS; and

        (m) Transacting business in interstate commerce.

        2.  The list of activities in subsection 1 is not exhaustive.

    3.  A person who is not doing business in this state within the meaning of this section need not qualify or comply with any provision of NRS 80.010 to [80.220,] 80.280, inclusive, chapter 645A or 645B of NRS or Title 55 or 56 of NRS unless he:

        (a) Maintains an office in this state for the transaction of business; or

    (b) Solicits or accepts deposits in the state, except pursuant to the provisions of chapter 666 or 666A of NRS.”.

    Amend the bill as a whole by deleting sec. 132 and adding:

    “Sec. 132.  (Deleted by amendment.)”.

    Amend sec. 137, page 80, by deleting lines 8 through 15 and inserting:

    “Sec. 137.  Notwithstanding the amendatory provisions of section 66 of this act, a mortgage broker may, until July 1, 2000, employ a person as a mortgage agent or authorize a person to be associated with the mortgage broker as a mortgage agent without registering the person with the division of financial institutions of the department of business and industry as a mortgage agent.”.

    Amend the bill as a whole by renumbering sec. 138 as sec. 139 and adding a new section designated sec. 138, following sec. 137, to read as follows:

    “Sec. 138.  1.  Notwithstanding the amendatory provisions of section 42 of this act, if, on October 1, 1999, a person holds a valid license as an escrow agency that was issued by the commissioner of financial institutions pursuant to chapter 645A of NRS before October 1, 1999, the person is not required, before July 1, 2000, to deposit a corporate surety bond or a substitute form of security in the amount set forth in the amendatory provisions of section 42 of this act.

    2.  Notwithstanding the amendatory provisions of section 127 of this act, if, on October 1, 1999, a person holds a valid license or certificate of authority as a title agent or title insurer that was issued by the commissioner of insurance pursuant to Title 57 of NRS before October 1, 1999,

the person is not required, before July 1, 2000, to deposit a corporate surety bond or a substitute form of security in the amount set forth in the amendatory provisions of section 127 of this act.”.

    Amend sec. 138, page 80, by deleting lines 16 and 17 and inserting:

    “Sec. 139.  1.  This section and sections 1 to 101, inclusive, 103, 105 to 117, inclusive, 119 to 138, inclusive, of this act become effective upon passage and approval for”.

    Amend sec. 138, page 80, by deleting line 20 and inserting:

    “2.  Sections 102, 104 and 118 of this act become effective upon passage and approval for the purpose of adopting any regulations necessary to carry out the provisions of this act, and at 12:01 a.m. on October 1, 1999, for all other purposes.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to financial transactions; revising the provisions relating to certain loans secured by liens on real property; revising the provisions relating to the licensing and the operation of certain mortgage companies and mortgage brokers; requiring certain mortgage brokers to maintain a minimum net worth; prohibiting various acts by mortgage companies, mortgage brokers and mortgage agents; providing for administrative sanctions and criminal penalties; revising various provisions concerning certain construction controls and escrow agencies; requiring certain construction controls, escrow agencies, title agents and title insurers to maintain a surety bond; revising certain provisions related to the presentation for payment of certain checks; and providing other matters properly relating thereto.”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senators Townsend, Care, Neal and Coffin.

    Conflict of interest declared by Senator O’Connell.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 220.

    Bill read second time.

    The following amendment was proposed by the Committee on Finance:

    Amendment No. 1192.

    Amend the bill as a whole by renumbering sections 1 through 4 as sections 2 through 5 and adding a new section designated section 1, following the enacting clause, to read as follows:

    “Section 1.  1.  There is hereby created an advisory committee to examine the issue of locating a new 4-year state college in Henderson, Nevada. The advisory committee consists of five members appointed as follows:

    (a) One member appointed by the Governor.

    (b) One member appointed by the Majority Leader of the Senate.

    (c) One member appointed by the Speaker of the Assembly.

    (d) Two members appointed by the Board of Regents of the University of Nevada.

    2.  The term of each member of the advisory committee commences on August 1, 1999, and expires on July 1, 2001.

    3.  Members of the advisory committee serve without compensation, except that while engaged in the business of the advisory committee, each member is entitled to the per diem allowance and travel expenses provided for state officers and employees generally, to be paid from the legislative fund.

    4.  The advisory committee shall meet at least once every 6 months.

    5.  A vacancy in the membership of the advisory committee must be filled in the same manner as the original appointment.”.

    Amend section 1, page 1, by deleting line 2 and inserting: “the advisory committee created pursuant to section 1 of this act the sum of”.

    Amend sec. 2, page 1, line 5, by deleting: “Board of Regents” and inserting: “advisory committee created pursuant to section 1 of this act”.

    Amend sec. 3, page 2, line 4, by deleting “1” and inserting “2”.

    Amend the title of the bill by deleting the first and second lines and inserting:

    “AN ACT relating to higher education; creating an advisory committee to examine the issue of locating a new 4-year state college in Henderson, Nevada; making an appropriation to the advisory committee for a needs assessment and implementation plan for a 4-year state”.

Amend the summary of the bill by deleting the first line and inserting: “SUMMARY—Makes appropriation to advisory committee”.

    Senator Raggio moved the adoption of the amendment.

    Remarks by Senators Raggio, Porter and Neal.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 189.

    Bill read second time.

    The following amendment was proposed by the Committee on Finance:

    Amendment No. 1202.

    Amend section 1, page 2, line 15, by deleting “If the”.

    Amend section 1, page 2, between lines 15 and 16, by inserting: “4.  A”.

    Amend section 1, page 2, line 16, after “employee” by inserting “who”.

    Amend section 1, page 2, line 17, by deleting “subsection, he” and inserting “section”.

    Amend section 1, page 2, line 18, by deleting: “during the period during which” and inserting: “after the date of”.

    Amend section 1, page 2, line 19, by deleting “subsection is” and inserting “section becomes”.

    Amend section 1, page 2, line 20, by deleting “4.” and inserting “5.”.

    Amend sec. 9, page 7, line 27, after “position” by inserting: “whose occupant is thereby”.

    Amend sec. 14, page 11, line 17, by deleting “or remarriage” and inserting “[or remarriage]”.

    Senator Raggio moved the adoption of the amendment.

    Remarks by Senator Raggio.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

GENERAL FILE AND THIRD READING

    Senate Bill No. 551.

    Bill read third time.

    Remarks by Senators Raggio, Titus and Rawson.

    Roll call on Senate Bill No. 551:

    Yeas—20.

    Nays—None.

    Excused—James.

    Senate Bill No. 551 having received a constitutional majority, Madam President declared it passed.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 491.

    Bill read third time.

    The following amendment was proposed by Senator O’Donnell:

    Amendment No. 1205.

    Amend the bill as a whole by adding a new section designated sec. 2.5, following sec. 2, to read as follows:

    “Sec. 2.5.  “Carrier of household goods” means any person or operator who is engaged in the business of transportation of household goods.”.

    Amend sec. 3, page 2, line 8, after “2.” by inserting: “With regard to a carrier of household goods, a person who holds a current certificate of public convenience and necessity which was issued for the operation of a carrier of household goods by:

    (a) The previously existing public service commission of Nevada before July 1, 1981, and which has not been transferred, revoked or suspended by the transportation services authority, or by operation of law; or

    (b) The transportation services authority and which has not been transferred, suspended or revoked by the transportation services authority or by operation of law.

    3.”.

    Amend sec. 23, page 9, by deleting lines 19 and 20, and inserting: “motor carrier] an operator of a tow car, a carrier of household goods, or a contract motor carrier with regard to the transportation of household goods, to bring the services of the operator or carrier to the attention of members of the general public.”.

    Amend sec. 24, page 9, line 27, by deleting “carrier or” and inserting “carrier,”.

    Amend sec. 24, page 9, line 28, by deleting “car.” and inserting: “car or a carrier of household goods.”.

    Amend sec. 26, page 9, line 41, by deleting “car.” and inserting: “car or a carrier of household goods.”.

    Amend sec. 27, page 10, by deleting line 12 and inserting: “[.] , as a taxicab motor carrier or limousine motor carrier, or as a carrier of household goods.”.

    Amend sec. 28, page 10, by deleting lines 16 and 17 and inserting: “dwelling and [such] other similar property as the transportation services authority may provide by regulation. The term does not include property moving from a factory”.

    Amend sec. 30, page 11, line 5, after “services]” by inserting: “, carriers of household goods, and contract motor carriers with regard to the transportation of household goods,”.

    Amend sec. 30, page 11, by deleting lines 21 through 23 and inserting: “charges for:

        (1) Intrastate transportation by [fully regulated carriers;] carriers of household goods, and contract motor carriers with regard to the transportation of household goods; and

        (2) Towing services performed without the prior consent of”.

    Amend sec. 30, page 11, line 25, by deleting “vehicle, without” and inserting: “vehicle,

without”.

    Amend sec. 30, page 11, line 26, after “car” by inserting: “, carrier of household goods”.

    Amend sec. 30, page 11, line 32, by deleting “vehicle” and inserting: “vehicle, the business of carriers of household goods, or the business of contract motor carriers with regard to the transportation of household goods,”.

    Amend sec. 33, page 12, line 30, by deleting “car” and inserting: “car, carrier of household goods, or contract motor carrier with regard to the transportation of household goods,”.

    Amend sec. 33, page 13, line 4, by deleting “operator,” and inserting: “operator or carrier,”.

    Amend sec. 33, page 13, line 6, by deleting “operator,” and inserting: “operator or carrier,”.

    Amend sec. 33, page 13, line 7, after “operator” by inserting: “or carrier”.

    Amend sec. 33, page 13, line 10, after “operator” by inserting: “or carrier”.

    Amend sec. 33, page 13, line 15, after “operator” by inserting: “or carrier”.

    Amend sec. 37, page 14, line 9, by deleting “cars” and inserting: “cars, carriers of household goods, and contract motor carriers with regard to the transportation of household goods,”.

    Amend sec. 38, page 14, by deleting lines 25 through 31 and inserting: “extent provided in this chapter, supervise and regulate:

    (a) Every [fully regulated carrier and broker of regulated services] carrier of household goods, and every contract motor carrier with regard to the transportation of household goods, in this state in all matters directly related to those activities of the [motor carrier and broker] carrier actually necessary for the transportation of [persons or] property, including the handling and storage of that property, over and along the highways.

    (b) Every operator of a tow car concerning the rates and charges”.

    Amend sec. 38, page 14, by deleting lines 36 through 39 and inserting:

    “2.  Supervise and regulate the storage of household goods and effects in warehouses and the operation and maintenance of such warehouses in accordance with the provisions of this chapter and chapter 712 of NRS.

    3.  Enforce the standards of safety applicable to the employees,”.

    Amend sec. 38, page 14, line 41, by deleting “cars” and inserting: “cars, carriers of household goods, and contract motor carriers with regard to the transportation of household goods,”.

    Amend sec. 38, page 15, line 2, by deleting “cars” and inserting: “cars, carriers of household goods, and contract motor carriers with regard to the transportation of household goods,”.

    Amend sec. 38, page 15, lines 4 and 5, by deleting: “carrier.

    4.] 3.” and inserting “carrier.]

    4.”.

    Amend sec. 38, page 15, line 7, after “cars” by inserting: “, carriers of household goods, or contract motor carriers with regard to the transportation of household goods,”.

    Amend sec. 38, page 15, by deleting lines 9 through 20 and inserting:

    “(b)] All rates of [fully regulated] carriers of household goods and contract motor carriers with regard to the transportation of household goods, and rates of operators of tow cars for towing services performed without the prior consent of the owner of the vehicle or the person authorized by the owner to operate the vehicle;

    [(c)] (b) Classifications;

    [(d)] (c) Divisions;

    [(e)] (d) Allowances; and

    [(f)] (e) All charges of [fully regulated] carriers of household goods and contract motor carriers with regard to the transportation of household goods, and charges of operators of tow cars for towing services performed without the prior consent of the owner of the vehicle or the person authorized by the owner to operate the vehicle, including charges between carriers and compensation paid or received for the use of facilities and equipment.”.

    Amend sec. 38, page 15, line 23, by deleting “[5.] 4.” and inserting “5.”.

    Amend sec. 39, page 15, lines 26 and 27, by deleting: “[and common or contract carrier]” and inserting: “[and common or contract] , carrier of household goods, and contract motor carrier with regard to the transportation of household goods,”.

    Amend sec. 39, pages 15 and 16, by deleting lines 40 through 42 on page 15 and line 1 on page 16, and inserting: “inclusive[.] , and section 11 of this act.

    2.  Except as otherwise provided in subsection 3, the reports required by this section must be prepared for each”.

    Amend sec. 39, page 16, by deleting lines 4 through 8 and inserting:

    “3.  A carrier of household goods may, with the permission of the transportation services authority, prepare the reports required by this section for a year other than a calendar year that the transportation services authority specifies and submit them not later than a date specified by the transportation services authority in each year.

    4.  If the transportation services authority finds that necessary”.

    Amend sec. 42, page 16, line 38, by deleting “carrier or” and inserting “carrier,”.

    Amend sec. 42, page 16, line 39, after “car” by inserting: “or carrier of household goods”.

    Amend sec. 42, page 17, line 5, by deleting: “carrier or operator of a tow car” and inserting: “carrier, operator of a tow car or carrier of household goods”.

    Amend sec. 43, page 17, line 34, by deleting: “[or chapter 712 of NRS]” and inserting: “or chapter 712 of NRS”.

    Amend sec. 44, page 17, lines 42 and 43, by deleting: “operators of tow cars, taxicab motor carriers and limousine motor carriers” and inserting: “[motor] operators of tow cars and carriers of household goods”.

    Amend sec. 46, page 19, line 5, after “car” by inserting: “or carrier of household goods”.

    Amend sec. 47, page 19, line 37, by deleting “cars,” and inserting: “cars and carriers of household goods,”.

    Amend sec. 47, page 19, line 41, by deleting: “carriers and operators of tow cars,” and inserting: “carriers, operators of tow cars and carriers of household goods,”.

    Amend sec. 51, page 20, line 35, by deleting: “carrier or operator of a tow car” and inserting: “carrier, operator of a tow car or carrier of household goods”.

    Amend sec. 52, page 21, line 4, by deleting: “carrier or operator of a tow car” and inserting: “carrier, operator of a tow car or carrier of household goods”.

    Amend sec. 52, page 21, line 18, after “car” by inserting: “or a carrier of household goods”.

    Amend sec. 52, page 21, line 25, by deleting “[carrier] operator” and inserting: “operator or carrier”.

    Amend sec. 52, page 21, line 30, by deleting: “carrier or operator of a tow car” and inserting: “carrier, operator of a tow car or carrier of household goods”.

    Amend sec. 54, page 22, line 25, by deleting “cars;” and inserting: “cars or carriers of household goods;”.

    Amend sec. 54, page 22, line 26, after “such” by inserting: “operators or”.

    Amend sec. 56, page 23, line 4, after “car,” by inserting: “a carrier of household goods, or a contract motor carrier with regard to the transportation of household goods,”.

    Amend sec. 56, page 23, line 5, by deleting: “[or contract carrier’s permit]” and inserting: “or contract carrier’s permit”.

    Amend sec. 58, page 23, line 39, after “person,]” by inserting: “, carrier of household goods, or contract motor carrier with regard to the transportation of household goods,”.

    Amend sec. 58, page 24, line 1, after “the vehicle” by inserting: “, or any carrier of household goods, or contract motor carrier with regard to the transportation of household goods”.

    Amend sec. 58, page 24, line 12, after “car” by inserting: “or carrier of household goods”.

    Amend sec. 58, page 24, line 14, after “car” by inserting: “or carrier of household goods”.

    Amend sec. 58, page 24, line 22, by deleting “car” and inserting: “car, against any carrier of household goods by another carrier of household goods, or against any contract motor carrier with regard to the transportation of household goods,”.

    Amend sec. 63, page 26, line 24, before “issued” by inserting “or permit”.

    Amend sec. 63, page 26, line 28, before “issued” by inserting “or permit”.

    Amend sec. 63, page 26, line 33, by deleting: “. [, permit or license.]” and inserting: “[, permit or license.] or permit.”.

    Amend sec. 63, page 26, line 35, before “by” by inserting “or permit”.

    Amend sec. 63, page 26, line 37, before “without” by inserting “or permit”.

    Amend sec. 64, page 27, lines 6 and 7, by deleting: “carrier or operator of a tow car” and inserting: “carrier, operator of a tow car or carrier of household goods”.

    Amend sec. 65, page 27, line 26, after “[who]” by inserting: “or carrier of household goods”.


    Amend sec. 69, page 28, by deleting lines 37 through 41 and inserting:

    “706.311 1.  Except as otherwise provided in subsection 2, every [common and contract motor] carrier of household goods is required to furnish reasonably adequate service and facilities, and all transportation charges made by any such carrier must be just and reasonable.

    2.  Every operator of a tow car is required to furnish reasonably”.

    Amend sec. 69, page 29, line 3, by deleting “[3.] 2.” and inserting “3.”.

    Amend sec. 69, page 29, line 4, by deleting: “[such carrier or]” and inserting: “such carrier or”.

    Amend sec. 70, page 29, by deleting lines 7 through 20 and inserting:

    “706.321 1.  [Except as otherwise provided in subsection 2, every common or contract motor carrier] Every carrier of household goods shall file with the transportation services authority:

    (a) Within a time to be fixed by the transportation services authority, schedules and tariffs that must:

        (1) Be open to public inspection; and

        (2) Include all rates[, fares] and charges which the carrier has established and which are in force at the time of filing for any service performed in connection therewith by any carrier controlled and operated by it.

    (b) As a part of that schedule, all regulations of the carrier that in any manner affect the rates [or fares] charged or to be charged for any service and all regulations of the carrier that the carrier has adopted to comply with the provisions of NRS 706.011 to 706.791, inclusive[.] , and section 11 of this act.

    2.  Every operator of a tow car shall file with the transportation”.

    Amend sec. 70, page 29, by deleting lines 35 through 37 and inserting: “inclusive[.] , and section 11 of this act.

    3.  No changes may be made [in any schedule, including schedules of”.

    Amend sec. 70, page 29, line 42, by deleting “car,” and inserting:

car or carrier of household goods,”.

    Amend sec. 70, page 30, line 1, by deleting: “[carrier] operator of a tow car” and inserting: “operator of a tow car or carrier of household goods”.

    Amend sec. 71, page 30, line 27, after “car” by inserting: “or a carrier of household goods”.

    Amend sec. 71, page 30, line 29, after “car” by inserting: “or carrier of household goods”.

    Amend sec. 72, page 31, line 7, after “car” by inserting: “or carrier of household goods”.

    Amend sec. 74, page 32, line 8, by deleting “[1.]” and inserting “1.”.

    Amend sec. 74, page 32, by deleting lines 15 through 21 and inserting:

    “2.  A [common motor carrier, other than an operator of a tow car,] carrier of household goods authorized to operate by NRS 706.011 to 706.791, inclusive, and section 11 of this act shall not discontinue any service established pursuant to the provisions of NRS 706.011 to 706.791, inclusive, and section 11 of this act and all other laws relating thereto and made applicable thereto by NRS 706.011 to 706.791, inclusive, and section 11 of this act without an order of the transportation services authority granted only after public notice or hearing in the event of protest.”.

    Amend sec. 75, page 32, line 27, after “car” by inserting: “and carrier of household goods”.

    Amend sec. 75, page 32, line 34, by deleting “cars,” and inserting: “cars or two or more carriers of household goods,”.

    Amend sec. 76, pages 33 and 34, by deleting lines 36 through 43 on page 33 and lines 1 through 11 on page 34, and inserting:

    “4.  This section does not prohibit [common motor] carriers of household goods from giving free or reduced rates for the transportation of property of:

    (a) Their officers, commission agents or employees, or members of any profession licensed under Title 54 of NRS retained by them, or pensioned or disabled former employees, together with that of their dependents.

    (b) Witnesses attending any legal investigations in which such carriers are interested.

    (c) Persons providing relief in cases of common disaster.

    (d) Charitable organizations providing food and items for personal hygiene to needy persons or to other charitable organizations within this state.

    5.  [This section does not prohibit the authority from establishing reduced rates, fares or charges for specified routes or schedules of any common motor carrier providing transit service if the reduced rates, fares or charges are determined by the authority to be in the public interest.

    6.  Only fully regulated common carriers may provide free or reduced rates for the transportation of passengers or household goods, pursuant to the provisions of this section.

    7.] As used in this section, “employees” includes:”.

    Amend sec. 76, page 34, line 14, after “a” by inserting: “carrier of household goods,”.

    Amend sec. 79, page 35, line 41, by deleting “vehicle” and inserting: “vehicle, or as a carrier of household goods or a contract motor carrier with regard to the transportation of household goods,”.

    Amend the bill as a whole by adding a new section designated sec. 79.5, following sec. 79, to read as follows:

    “Sec. 79.5.  NRS 706.391 is hereby amended to read as follows:

    706.391 1.  Upon the filing of an application for a certificate of public convenience and necessity to operate as a [motor carrier other than an operator of a tow car,] carrier of household goods, the transportation services authority shall fix a time and place for hearing thereon.

    2.  The transportation services authority shall issue such a certificate if it finds that:

    (a) The applicant is fit, willing and able to perform the services of a [common motor carrier;] carrier of household goods;

    (b) The proposed operation will be consistent with the legislative policies set forth in NRS 706.151;

    (c) The granting of the certificate will not unreasonably and adversely affect other carriers of household goods operating in the territory for which the certificate is sought; and

    (d) The proposed service will benefit the traveling and shipping public and the [motor carrier] business of carriers of household goods in this state.

    3.  The transportation services authority shall not find that the potential creation of competition in a territory which may be caused by the granting of a certificate, by itself, will unreasonably and adversely affect other carriers operating in the territory for the purposes of paragraph (c) of subsection 2.

    4.  An applicant for such a certificate has the burden of proving to the transportation services authority that the proposed operation will meet the requirements of subsection 2.

    5.  The transportation services authority may issue a certificate of public convenience and necessity to operate as a [common motor carrier,] carrier of household goods, or issue it for:

    (a) The exercise of the privilege sought.

    (b) The partial exercise of the privilege sought.

    6.  The transportation services authority may attach to the certificate such terms and conditions as, in its judgment, the public interest may require.

    7.  The transportation services authority may dispense with the hearing on the application if, upon the expiration of the time fixed in the notice thereof, no petition to intervene has been filed on behalf of any person who has filed a protest against the granting of the certificate.”.

    Amend sec. 80, page 36, line 5, after “car” by inserting: “or a carrier of household goods”.

    Amend sec. 80, page 36, line 9, after “car” by inserting: “or a carrier of household goods”.

    Amend sec. 80, page 36, line 10, by deleting “[carrier] operator” and inserting: “operator or carrier”.

    Amend sec. 80, page 36, line 14, after “car” by inserting: “or a carrier of household goods”.

    Amend the bill as a whole by adding new sections designated sections 81.1, 81.3, 81.5, 81.7 and 81.9, following sec. 81, to read as follows:

    “Sec. 81.1.  NRS 706.421 is hereby amended to read as follows:

    706.421 It is unlawful for any person to act as a contract motor carrier [to act as such] with regard to the transportation of household goods within this state in intrastate commerce without first having obtained a permit therefor.

    Sec. 81.3.  NRS 706.426 is hereby amended to read as follows:

    706.426 An application for a permit for a new operation as a contract motor carrier [shall] with regard to the transportation of household goods must be:

    1.  Made to the transportation services authority in writing.

    2.  In such form and be accompanied by such information as the transportation services authority may require.

    Sec. 81.5.  NRS 706.431 is hereby amended to read as follows:

    706.431 1.  A permit may be issued to any applicant therefor, authorizing in whole or in part the operation covered by the application, if it appears from the application or from any hearing held thereon that:

    (a) The applicant is fit, willing and able properly to perform the service of a contract motor carrier and to conform to all provisions of NRS 706.011 to 706.791, inclusive, and section 11 of this act, and the regulations adopted thereunder; and

    (b) The proposed operation will be consistent with the public interest and will not operate to defeat the legislative policy set forth in NRS 706.151.

    2.  An application must be denied if the provisions of subsection 1 are not met.

    3.  The transportation services authority shall revoke or suspend pursuant to the provisions of this chapter the permit of a contract motor carrier who has failed to file the annual report required in NRS 706.167 within 60 days after the report is due.

    4.  The transportation services authority shall adopt regulations providing for a procedure by which any contract entered into by a contract motor carrier after he has been issued a permit pursuant to this section may be approved by the transportation services authority without giving notice required by statute or by a regulation of the transportation services authority.

    Sec. 81.7.  NRS 706.442 is hereby amended to read as follows:

    706.442 Any person engaging in the intrastate transportation or storage of household goods shall comply with the following requirements:

    1.  Upon the request of a person seeking service, the carrier of household goods shall provide the person with a written, binding estimate of the cost of providing the requested service.

    2.  The charges assessed for the service rendered may not exceed the amount in the written estimate, unless the customer requested services in addition to those included in the written estimate and agreed to pay additional charges.

    3.  If the person for whom service was provided pays any amount consistent with the provisions of subsection 2, the provider of service shall release immediately any household goods that were transported or stored to that person.

    4.  If a person requesting service alleges that any household goods were damaged or lost, the person that provided the service shall:

    (a) Attempt to resolve the dispute; and

    (b) Identify the carrier of his insurance and explain the procedures to file a claim.

    5.  The provider of service shall advise all persons for whom service is to be performed of their right to file a complaint with the transportation services authority and provide the address and telephone number of the nearest business office of the transportation services authority.

    6.  Any other terms and conditions which the transportation services authority may by regulation prescribe to protect the public.

    Sec. 81.9.  NRS 706.443 is hereby amended to read as follows:

    706.443 1.  The provisions of NRS 706.442 apply whether or not the person providing the service has received authority to operate from the transportation services authority.

    2.  The transportation services authority shall enforce the provisions of NRS 706.442 and consider complaints regarding violations of the provisions of that section pursuant to the provisions of this chapter. In addition to any other remedies, the transportation services authority may order the release of any household goods that are being held by the provider of service subject to the terms and conditions that the transportation services authority determines to be appropriate and may order the refund of overcharges.

    3.  The transportation services authority may use the remedies provided in NRS 706.457, 706.461, 706.756, 706.761, 706.771 and 706.779 and any other remedy available under other law.

    4.  The transportation services authority shall adopt regulations regarding the administration and enforcement of this section and NRS 706.442.”.

    Amend sec. 89, page 40, line 7, before “A” by inserting “1.”.

    Amend sec. 89, page 40, line 10, by deleting “1.” and inserting “(a)”.

    Amend sec. 89, page 40, line 12, by deleting “2.” and inserting “(b)”.

    Amend sec. 89, page 40, line 14, by deleting “3.” and inserting “(c)”.

    Amend sec. 89, page 40, line 16, by deleting “4.” and inserting “(d)”.

    Amend sec. 89, page 40, line 18, by deleting “5.” and inserting “(e)”.

    Amend sec. 89, page 40, line 20, by deleting “6.” and inserting “(f)”.

    Amend sec. 89, page 40, line 24, by deleting “7.” and inserting “2.”.

    Amend sec. 89, page 40, between lines 28 and 29, by inserting:

    “3.  Except as otherwise provided in this subsection, if an operator of a tow car is included on a list of operators of tow cars that is maintained and used by the Nevada highway patrol pursuant to this section, the Nevada highway patrol shall not remove the operator of the tow car from the list, or restrict his use pursuant thereto, solely on the ground that the operator is insured under the same policy of insurance as one other operator of a tow car who is included on the list and operates in the same geographical area. An operator of a tow car is not eligible for inclusion on the list if the operator is insured under the same policy of insurance as two or more other operators of tow cars who are included on the list and operate in the same geographical area.”.

    Amend sec. 92, page 41, line 13, by deleting: “[or a required permit]” and inserting: “or a required permit”.

    Amend sec. 94, page 42, line 9, by deleting: “[or contract carrier’s permit]” and inserting: “or contract carrier’s permit”.

    Amend sec. 94, page 42, by deleting lines 13 through 17 and inserting:

    “(a) Person is advertising to provide:

        (1) The services of a [fully regulated carrier in intrastate commerce;] carrier of household goods or a contract motor carrier with regard to the transportation of household goods; or

        (2) Towing services [,] performed without the prior consent of the owner of the vehicle or the person authorized by the owner to operate the vehicle,

without including the number of his certificate of”.

    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 706.476 is hereby amended to read as follows:

    706.476  [Except as otherwise provided in section 1 of Assembly Bill No. 677 of this session:]

    1.  A vehicle used as a [taxicab, limousine or other passenger vehicle in passenger service] carrier of household goods must be impounded by the transportation services authority if a certificate of public convenience and necessity has not been issued authorizing its operation. A hearing must be held by the transportation services authority no later than the conclusion of the second normal business day after impoundment, weekends and holidays excluded. As soon as practicable after impoundment, the transportation services authority shall notify the registered owner of the vehicle:

    (a) That the registered owner of the vehicle must post a bond in the amount of $20,000 to ensure his presence at all proceedings held pursuant to this section;

    (b) Of the time set for the hearing; and

    (c) Of his right to be represented by counsel during all phases of the proceedings.

    2.  The transportation services authority shall hold the vehicle until the registered owner of the vehicle appears and:

    (a) Proves that he is the registered owner of the vehicle;

    (b) Proves that he holds a valid certificate of public convenience and necessity;

    (c) Proves that the vehicle meets all required standards of the transportation services authority; and

    (d) Posts a bond in the amount of $20,000 with the transportation services authority.

The transportation services authority shall return the vehicle to its registered owner when the owner meets the requirements of this subsection and pays all costs of impoundment.

    3.  If the registered owner is unable to meet the requirements of paragraph (b) or (c) of subsection 2, the transportation services authority may assess an administrative fine against the registered owner for each such violation in the amount of $5,000. The maximum amount of the administrative fine that may be assessed against a registered owner for a single impoundment of his vehicle pursuant to this section is $10,000. The transportation services authority shall return the vehicle after any administrative fine imposed pursuant to this subsection and all costs of impoundment have been paid.”.

    Amend sec. 97, page 43, lines 24 and 25, by deleting: “carrier or an operator of a tow car” and inserting: “carrier, an operator of a tow car or a carrier of household goods”.

    Amend sec. 99, page 44, by deleting lines 31 through 35 and inserting: “services authority to issue:

    (a) Except as otherwise provided in paragraph (b), certificates of public convenience and necessity and contract carriers’ permits and to regulate rates, routes and services apply only to [fully regulated carriers.] carriers of household goods, and contract motor carriers with regard to the transportation of household goods.

    (b) Certificates of public convenience and necessity to”.

    Amend sec. 100, page 45, line 4, by deleting “[and 706.421]” and inserting “and 706.421”.

    Amend sec. 101, page 46, line 41, by deleting “vehicle” by inserting: “vehicle, or the services of a carrier of household goods or a contract motor carrier with regard to the transportation of household goods,”.

    Amend sec. 101, page 47, line 4, by deleting “vehicle” and inserting: “vehicle, or the services of a carrier of household goods or a contract motor carrier with regard to the transportation of household goods,”.

    Amend sec. 101, page 47, line 5, by deleting: “[or contract carrier’s permit]” and inserting: “or contract carrier’s permit”.

    Amend sec. 101, page 47, line 31, by deleting “[or 706.421]” and inserting “or 706.421”.

    Amend sec. 102, page 48, line 14, after “certificate” by inserting “or permit”.

    Amend sec. 102, page 48, line 30, after “certificate” by inserting “or permit”.

    Amend sec. 102, page 48, line 33, by deleting the italicized period and inserting “or permit.

    Amend sec. 103, page 48, line 36, after “car” by inserting: “, carrier of household goods, or contract motor carrier with regard to the transportation of household goods,”.

    Amend sec. 103, page 49, line 2, after “car” by inserting: “, carrier of household goods, or contract motor carrier with regard to the transportation of household goods,”.

    Amend sec. 105, page 49, line 38, before “appropriate” by inserting: “transportation services authority, the”.

    Amend sec. 106, page 49, line 43, by deleting “, [or” and inserting “or”.

    Amend sec. 106, page 50, line 1, by deleting “706.421,]” and inserting “706.421,”.

    Amend sec. 116, page 53, by deleting lines 31 and 32 and inserting: “reflects the number of limousines that each certificate holder is authorized by the taxicab authority to operate as of the date on which the allocation is made.”.

    Amend sec. 116, page 53, by deleting lines 38 through 40 and inserting:

    “4.  Unless a certificate holder puts the additionally allocated [taxicabs] :

    (a) Taxicabs into service within 30 days after the effective date of the increased allocation[,] ; or

    (b) Limousines into service within 180 days after the effective date of the increased allocation,

the increased allocation to that certificate”.

    Amend sec. 116, page 54, by deleting lines 12 through 16 and inserting: “established pursuant to subsection 2, the number of limousines that must be allocated to a certificate holder to whom the taxicab authority thereafter issues an initial certificate of public convenience and necessity must be based on the number of limousines that the certificate holder places into operation within 180 days after the date on which the certificate of public convenience and necessity is issued to the certificate holder. Thereafter, the certificate holder is subject to all other provisions”.

    Amend sec. 120, page 56, line 28, by deleting “July” and inserting “October”.

    Amend sec. 129, page 61, line 5, by deleting “1.” and inserting: “Except as otherwise provided in section 1 of Assembly Bill No. 677 of this session:

    1.”.

    Amend sec. 132, page 63, line 2, after “drivers” by inserting “of taxicabs”.

    Amend the bill as a whole by deleting sec. 139 and adding:

    “Sec. 139.  (Deleted by amendment.)”.

    Amend the bill as a whole by deleting sec. 145 and adding:

    “Sec. 145.  (Deleted by amendment.)”.

    Amend sec. 146, page 77, line 35, by deleting “or”.

    Amend sec. 146, page 77, line 36, by deleting the italicized period and inserting: “or a carrier of household goods as defined in section 2.5 of this act.”.

    Amend the bill as a whole by adding a new section designated sec. 151.8, following sec. 151.7, to read as follows:

    “Sec. 151.8.  Section 5 of Senate Bill No. 68 of this session is hereby amended to read as follows:

    Sec. 5.  “Category II peace officer” means:

    1.  The bailiff of the supreme court;

    2.  The bailiffs of the district courts, justices’ courts and municipal courts whose duties require them to carry weapons and make arrests;

    3.  Constables and their deputies whose official duties require them to carry weapons and make arrests;

    4.  Inspectors employed by the transportation services authority who exercise those powers of enforcement conferred by chapters 706 and 712 of NRS;

    5.  Parole and probation officers;

    6.  Special investigators who are employed full time by the office of any district attorney or the attorney general;

    7.  Investigators of arson for fire departments who are specially designated by the appointing authority;

    8.  The assistant and deputies of the state fire marshal;

    9.  The brand inspectors of the division of agriculture of the department of business and industry who exercise the powers of enforcement conferred by chapter 565 of NRS;

    10.  Investigators for the state forester firewarden who are specially designated by him and whose primary duties are related to the investigation of arson;

    11.  School police officers employed by the board of trustees of any county school district;

    12.  Agents of the state gaming control board who exercise the powers of enforcement specified in NRS 289.360, 463.140 or 463.1405, except those agents whose duties relate primarily to auditing, accounting, the collection of taxes or license fees, or the investigation of applicants for licenses;

    13.  Investigators and administrators of the bureau of enforcement of the registration division of the department of motor vehicles and public safety who perform the duties specified in subsection 3 of NRS 481.048;

    14.  Officers and investigators of the section for the control of emissions from vehicles of the registration division of the department of motor vehicles and public safety who perform the duties specified in subsection 3 of NRS 481.0481;

    15.  Legislative police officers of the State of Nevada;

    16.  The personnel of the capitol police division of the department of motor vehicles and public safety appointed pursuant to subsection 2 of NRS 331.140;

    17.  Parole counselors of the division of child and family services of the department of human resources;

    18.  Juvenile probation officers and deputy juvenile probation officers employed by the various judicial districts in the State of Nevada or by a department of family, youth and juvenile services established pursuant to NRS 62.1264 whose official duties require them to enforce court orders on juvenile offenders and make arrests;

    19.  Field investigators of [the] a taxicab authority;

    20.  Security officers employed full time by a city or county whose official duties require them to carry weapons and make arrests;

    21.  The chief of a department of alternative sentencing created pursuant to NRS 211A.080 and the assistant alternative sentencing officers employed by that department; and

    22.  Criminal investigators who are employed by the secretary of state.”.

    Amend sec. 152, page 85, by deleting line 28 and inserting: “706.396, 706.436,”.

    Amend sec. 152, page 85, by deleting lines 30 and 31 and inserting: “706.8816, 706.8817, 706.8818 and 706.8828 are hereby”.

    Amend sec. 152, page 85, by deleting line 33.

    Amend sec. 152, page 85, line 34, by deleting “3.” and inserting “2.”

    Amend sec. 158, page 87, line 2, by deleting: “sections 20 and 21” and inserting “section 20”.

    Amend sec. 158, page 87, by deleting line 6 and inserting: “October 1, 1999. The ordinance must become effective on October 1, 1999.”.

    Amend the bill as a whole by adding new sections designated sections 161.3 and 161.7, following sec. 161, to read as follows:

    “Sec. 161.3.  Notwithstanding any provision of section 116 of this act to the contrary, a taxicab authority shall not establish a system of allocations for limousines in accordance with section 116 of this act on or before March 1, 2000.

    Sec. 161.7.  1.  On October 1, 1999, the transportation services authority shall, with respect to each application for a certificate of public convenience and necessity to operate as a taxicab motor carrier or limousine motor carrier which has been filed with it and which it has not approved or denied as of that date, transfer the application:

    (a)  To the appropriate taxicab authority that has jurisdiction over the applicant; or

    (b)  If the applicant is based and will primarily operate in a county that has enacted an ordinance pursuant to section 20 of this act to exclude the county from the jurisdiction of a taxicab authority, to the board of county commissioners of that county.

    2.  An application that is transferred to a taxicab authority pursuant to subsection 1 shall be deemed to have been filed with the taxicab authority.”.

    Amend sec. 163, page 87, line 37, by deleting: “subsection 3 of section 152 and sections” and inserting: “sections 20 and 21, subsection 2 of section 152 and sections 158,”.

    Amend sec. 163, page 87, line 39, before “107” by inserting: “19, inclusive, 22 to 96, inclusive, 97 to”.

    Amend sec. 163, page 87, by deleting line 40 and inserting: “inclusive, 151.8, subsection 1 of section 152 and sections 153 to 157, inclusive,”.

    Amend sec. 163, page 87, line 41, after “161,” by inserting “161.3, 161.7,”.

    Amend sec. 163, page 87, by deleting lines 42 and 43 and inserting:

    “3.  Sections 108, 135, 151.5 and 151.7 of this act become effective at 12:01 a.m. on October 1, 1999.”.

    Amend the leadlines of repealed sections by deleting the leadlines of NRS 706.391, 706.421, 706.426, 706.431, 706.442, 706.443, 706.476. 712.010, 712.020, 712.030, 712.040, 712.050, 712.060, 712.070, 712.080 and 712.090.

    Amend the title of the bill, second line, by deleting “cars,” and inserting: “cars and carriers of household goods,”.

    Amend the summary of the bill, second line, after “cars,” by inserting: “carriers of household goods,”.

    Senator O’Donnell moved the adoption of the amendment.

    Remarks by Senator O’Donnell.

    Conflict of interest declared by Senator Care.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 553.

    Bill read third time.

    Remarks by Senators Raggio, Titus, Washington, Neal and Rawson.

    Roll call on Senate Bill No. 553:

    Yeas—17.

    Nays—Carlton, Titus, Wiener—3.

    Excused—James.

    Senate Bill No. 553 having received a constitutional majority, Madam President declared it passed.

    Bill ordered transmitted to the Assembly.

UNFINISHED BUSINESS

Signing of Bills and Resolutions

    There being no objections, the President and Secretary signed Senate Joint Resolution No. 12 of the 69th Session; Assembly Bills Nos. 193, 269, 323, 342, 686; Assembly Joint Resolutions Nos. 22, 24; Assembly Concurrent Resolutions Nos. 23, 60, 73.

GUESTS EXTENDED PRIVILEGE OF SENATE FLOOR

    On request of Senator McGinness, the privilege of the floor of the Senate Chamber for this day was extended to Mark Shellinger and Carol Shellinger.

    On request of Senator Raggio, the privilege of the floor of the Senate Chamber for this day was extended to former Secretary of the Senate, Leola Armstrong.

    Senator Raggio moved that the Senate adjourn until Saturday, May 29, 1999 at 11 a.m.

    Motion carried.

    Senate adjourned at 8:39 p.m.

Approved:                                                                  Lorraine T. Hunt

                                                                                   President of the Senate

Attest:    Janice L. Thomas

                Secretary of the Senate