THE SEVENTY-FIFTH DAY

                               

Carson City(Friday), April 16, 1999

    Senate called to order at 11:41 a.m.

    President Hunt presiding.

    Roll called.

    All present.

    Prayer by the Chaplain, Marion L. Garrett.

    Gracious God, in whose will is our peace and whose desire is for our good, forgive us when we take for granted our good fortune and do not pause to give thanks. In Kosovo and other places in the world men, women and children are suffering and many, including our own, are in great danger while here we enjoy peace and prosperity. Guide us, we pray, that our gratitude for our advantage may result in greater concern and fairness in what we do, especially when our actions and decisions effect the lives of others. We ask this in Your Holy Name.

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 Commerce and Labor, to which were referred Senate Bills Nos. 12, 25, 103, 133, 140, 178, 196, 224, 225, 438, 439, 463, 487, 495, 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 Government Affairs, to which were referred Senate Bills Nos. 144, 436, 478, 530; Senate Joint Resolution No. 9, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Ann O’Connell, Chairman

Madam President:

    Your Committee on Human Resources and Facilities, to which were referred Senate Bills Nos. 161, 520, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Raymond D. Rawson, Chairman

Madam President:

    Your Committee on Judiciary, to which was referred Senate Bill No. 449, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Mark A. James, Chairman

Madam President:

    Your Committee on Natural Resources, to which were referred Senate Bills Nos. 167, 447, 510, 526, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.


    Also, your Committee on Natural Resources, to which was referred Senate Bill No. 432, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and re-refer to the Committee on Finance.

Dean A. Rhoads, Chairman

Madam President:

    Your Committee on Taxation, to which were referred Senate Bills Nos. 318, 362, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Mike McGinness, Chairman

Madam President:

    Your Committee on Transportation, to which was referred Senate Bill No. 174, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and re-refer to the Committee on Finance.

William O’Donnell, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, April 15, 1999

To the Honorable the Senate:

    I have the honor to inform your honorable body that the Assembly on this day passed Senate Bill No. 115.

    Also, I have the honor to inform your honorable body that the Assembly on this day adopted Senate Concurrent Resolution No. 31.

    Also, I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bills Nos. 162, 239, 265, 293, 388, 392, 397, 432, 436, 503, 593, 614, 647, 680.

                                                                                 Susan Furlong Reil

                                                                        Assistant Chief Clerk of the Assembly

MOTIONS, RESOLUTIONS AND NOTICES

Notice of Exemptions

April 16, 1999

    The Fiscal Analysis Division, pursuant to Joint Rule No. 14.6, has determined the exemption of Senate Bill No. 91 which:

(a)       Contains an appropriation;

    (b) Authorizes the expenditure by a state agency of sums not appropriated from the state general fund or the state highway fund;

    (c) Creates or increase any significant fiscal liability of the state; or

    (d) Significantly decreases any revenue of the state.

    The Legislative Counsel shall cause to be printed on the face of the bill or resolution the term “exempt” and a notation of the exemption must be included as a part of the history of the bill or resolution.

                                                                                                Daniel G. Miles

                                                                                                Fiscal Analysis Division

    Senator Townsend moved that Senate Bill No. 128 be taken from the Secretary’s desk and placed on General File.

    Remarks by Senator Townsend.

    Motion carried.

    Senator O’Connell moved that Senate Bill No. 366 be taken from the Secretary’s desk and placed on the Second Reading File.

    Remarks by Senator O’Connell.

    Motion carried.

    Senator Raggio moved that Senate Bills Nos. 12, 25, 103, 133, 140, 144, 161, 167, 174, 178, 196, 224, 225, 318, 362, 432, 436, 438, 439, 447, 449, 463, 478, 487, 495, 510, 520, 526, 530; Senate Joint Resolution No. 9, be placed on the Second Reading File of the Second Agenda.

    Remarks by Senator Raggio.

    Motion carried.

    Senator O’Donnell moved that the Senate recess subject to the call of the Chair.

    Motion carried.

    Senate in recess at 11:56 a.m.

SENATE IN SESSION

    At 12:04 p.m.

    President Hunt presiding.

    Quorum present.

INTRODUCTION, FIRST READING AND REFERENCE

    Assembly Bill No. 162.

    Senator Rawson moved that the bill be referred to the Committee on Commerce and Labor.

    Motion carried.

    Assembly Bill No. 239.

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

    Motion carried.

    Assembly Bill No. 265.

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

    Motion carried.

    Assembly Bill No. 293.

    Senator Rawson moved that the bill be referred to the Committee on Commerce and Labor.

    Motion carried.

    Assembly Bill No. 388.

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

    Motion carried.

    Assembly Bill No. 392.

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

    Motion carried.


    Assembly Bill No. 397.

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

    Motion carried.

    Assembly Bill No. 432.

    Senator Rawson moved that the bill be referred to the Committee on Commerce and Labor.

    Motion carried.

    Assembly Bill No. 436.

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

    Motion carried.

    Assembly Bill No. 503.

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

    Motion carried.

    Assembly Bill No. 593.

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

    Motion carried.

    Assembly Bill No. 614.

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

    Motion carried.

    Assembly Bill No. 647.

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

    Motion carried.

    Assembly Bill No. 680.

    Senator Rawson moved that the bill be referred to the Committee on Commerce and Labor.

    Motion carried.

SECOND READING AND AMENDMENT

    Assembly Bill No. 144.

    Bill read second time and ordered to third reading.

    Assembly Bill No. 390.

    Bill read second time and ordered to third reading.

    Assembly Bill No. 391.

    Bill read second time and ordered to third reading.

    Senate Bill No. 366.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 633.

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

    “Section 1.  NRS 244A.7643 is hereby amended to read as follows:

    244A.7643 1.  The board of county commissioners in a county whose population is more than 100,000 but less than 400,000 may, by ordinance, impose a surcharge on[:

    (a) Each] each access line or trunk line of each customer to the local exchange of any telephone company providing those lines in the county[; and

    (b) The mobile telephone service provided to each customer of that service who resides in the county,] forthe enhancement of the telephone system for reporting an emergency in the county.

    2.  The surcharge imposed by a board of county commissioners pursuant to subsection 1:

    (a) For each access line to the local exchange of a telephone company, must not exceed 25 cents each month; and

    (b) For each trunk line to the local exchange of a telephone company, must equal 10 times the amount of the surcharge imposed for each access line to the local exchange of a telephone company pursuant to paragraph (a) . [; and

    (c) For each telephone number assigned to a customer by a supplier of mobile telephone service, must equal the amount of the surcharge imposed for each access line to the local exchange of a telephone company pursuant to paragraph (a).]

    3.  A telephone company which provides access lines or trunk lines in a county which imposes a surcharge pursuant to this section [or a supplier which provides mobile telephone service to a customer in such a county,] shall collect the surcharge from its customers each month. Except as otherwise provided in NRS 244A.7647, the telephone company [or supplier] shall remit the surcharge it collects to the treasurer of the county where the surcharge is imposed not later than the 15th day of the month after the month it receives payment of the surcharge from its customers.

    4.  An ordinance adopted pursuant to subsection 1 may include a schedule of penalties for the delinquent payment of amounts due from telephone companies [or suppliers] pursuant to this section. Such a schedule:

    (a) Must provide for a grace period of not less than 90 days after the date on which the telephone company [or supplier] must otherwise remit the surcharge to the county treasurer; and

    (b) Must not provide for a penalty that exceeds 5 percent of the cumulative amount of surcharges owed by a telephone company . [or a supplier.]

    5.  As used in this section, “trunk line” means a line which provides a channel between a switchboard owned by a customer of a telephone company and the local exchange of the telephone company.

    Sec. 2.  NRS 244A.7647 is hereby amended to read as follows:

    244A.7647 A telephone company [or supplier] which collects the surcharge imposed pursuant to NRS 244A.7643 is entitled to retain an amount of the surcharge collected which is equal to the cost to collect the surcharge.”.

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

    “Sec. 4.  NRS 244A.7641 is hereby repealed.”.

    Amend sec. 2, page 1, by deleting line 5 and inserting:

    “Sec. 5.  1.  This section and section 3 of this act become effective on passage and approval.

    2.  Sections 1, 2 and 4 of this act become effective on the earlier of the two following dates:

    (a) December 31, 2001; or

    (b) The date the board of county commissioners that has imposed a surcharge pursuant to NRS 244A.7643 notifies the director of the legislative counsel bureau that the advisory committee established in that county pursuant to NRS 244A.7645 has enhanced the telephone system for reporting an emergency in that county in such a manner that when a person reports an emergency by placing a call on a mobile telephone, the:

    (a) Identification of the person who pays for that mobile telephone service; and

    (b) Location of the antenna that receives and transmits that call,

are transmitted to the location that has been designated to receive calls that report an emergency and to route them to the appropriate personnel for the provision of emergency services.”.

    Amend the bill as a whole by adding the text of the repealed section.

TEXT OF REPEALED SECTION

    244A.7641 Definitions. [Expires by limitation on December 31, 1999.] As used in NRS 244A.7641 to 244A.7647, inclusive, unless the context otherwise requires, “mobile telephone service” and “supplier” have the meanings ascribed to them in NRS 205.505.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to the telephone services; repealing the prospective expiration of certain provisions concerning the surcharge on telephone services in certain counties for the enhancement of the telephone systems for reporting emergencies in those counties; amending the prospective expiration of certain provisions concerning the surcharge on mobile telephone services in certain counties for the enhancement of the telephone systems for reporting emergencies in those counties; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Amends prospective expiration of certain provisions concerning surcharge on telephone services in certain counties to enhance 911 system in those counties. (BDR 20‑550)”.

    Senator Care moved the adoption of the amendment.

    Remarks by Senator Care.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

GENERAL FILE AND THIRD READING

    Senate Bill No. 179.

    Bill read third time.

    Remarks by Senators McGinness and Raggio.

    Conflict of interest declared by Senator Raggio.

    Roll call on Senate Bill No. 179:

    Yeas—19.

    Nays—Jacobsen.

    Not    Voting—Raggio.

    Senate Bill No. 179 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 192.

    Bill read third time.

    Remarks by Senators Neal, McGinness, James and Rawson.

    Conflict of interest declared by Senator James.

    Roll call on Senate Bill No. 192:

    Yeas—20.

    Nays—None.

    Not    Voting—James.

    Senate Bill No. 192 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 267.

    Bill read third time.

    Remarks by Senator Amodei.

    Roll call on Senate Bill No. 267:

    Yeas—20.

    Nays—O'Donnell.

    Senate Bill No. 267 having received a two-thirds majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.


    Senate Bill No. 273.

    Bill read third time.

    The following amendment was proposed by Senator Washington:

    Amendment No. 664.

    Amend the bill as a whole by deleting sec. 2, renumbering sections 3 through 6 as sections 6 through 9 and adding new sections designated sections 2 through 5, following section 1, to read as follows:

    “Sec. 2.  Chapter 178 of NRS is hereby amended by adding thereto a new section to read as follows:

    If a defendant, while admitted to bail on a surety bond:

    1.  Is taken into custody in the same jurisdiction in which he was admitted to bail based upon any other offense, other than a minor traffic offense; and

    2.  Is released from custody without bail after being charged with any other offense, other than a minor traffic offense,

the court shall exonerate the surety, unless the surety bond had been forfeited before the date on which the defendant was taken into custody.

    Sec. 3.  NRS 178.506 is hereby amended to read as follows:

    178.506 If there is a breach of condition of a bond, the court shall declare a forfeiture of the bail, subject to the provisions of NRS 178.508 and 178.509[.] and section 2 of this act.

    Sec. 4.  NRS 178.508 is hereby amended to read as follows:

    178.508 1.  If the defendant fails to appear when his presence in court is lawfully required , [and not excused,] the court shall [direct the fact of such failure to appear to be entered] :

    (a) Enter upon its minutes[.] that the defendant failed to appear;

    (b) Not later than 30 days after the date on which the defendant failed to appear, issue a warrant for the arrest of the defendant; and

    (c) If the undertaking exceeds $50 or money deposited instead of bail bond exceeds $500, [the court shall] direct that [the sureties] each surety and the local agent of each surety, or the depositor if he is not the defendant, be given notice that the defendant has failed to appear, by certified mail within [15] 20 days after the [failure] date on which the defendant failed to appear. [, and] The court shall execute an affidavit of such mailing to be kept as an official public record of the court[. The] and shall direct that a copy of the notice be transmitted to the district attorney at the same time that notice is given to each surety or the depositor.

    2.  Except as otherwise provided in subsection 3, NRS 178.509 and section 2 of this act, the undertaking or money deposited instead of bail bond is forfeited [upon the expiration of] 180 days after the date on which the notice is mailed[, except as otherwise provided in NRS 178.509. A copy of the notice must be transmitted to the district attorney at the time notice is given to the sureties or the depositor.] pursuant to subsection 1.

    3.  The court may extend the date of the forfeiture for any reasonable period set by the court if the surety or depositor submits to the court:

    (a) An application for an extension and the court determines that the surety or the depositor is making reasonable and ongoing efforts to bring the defendant before the court.

    (b) An application for an extension on the ground that the defendant is temporarily prevented from appearing before the court because the defendant:

        (1) Is ill;

        (2) Is insane; or

        (3) Is being detained by civil or military authorities,

and the court, upon hearing the matter, determines that one or more of the grounds described in this paragraph exist and that the surety or depositor did not in any way cause or aid the absence of the defendant.

    Sec. 5.  NRS 178.509 is hereby amended to read as follows:

    178.509 1.  [The] Except as otherwise provided in section 2 of this act, if the defendant fails to appear when his presence in court is lawfully required, the court shall not exonerate the surety before the [expiration of 180 days after mailing the notice of intent to forfeit] date of forfeiture prescribed in NRS 178.508 unless:

    (a) The defendant appears before the court and the court, upon hearing the matter, determines that the defendant has presented a satisfactory excuse or that the surety did not in any way cause or aid the absence of the defendant; or

    (b) The surety submits an application for exoneration on the ground that the defendant is unable to appear because[:

        (1) He is] the defendant:

        (1) Is dead;

        (2) [He is] Is ill;

        (3) [He is insane; or

        (4) He is] Is insane;

        (4) Is being detained by civil or military authorities[,] ; or

        (5) Has been deported,

and the court, upon hearing the matter, determines that one or more of the grounds described in this paragraph exist and that the surety did not in any way cause or aid the absence of the defendant.

    2.  If the requirements of subsection 1 are met, the court may exonerate the surety upon such terms as may be just.

    [3.  The court shall not exclude any period of time from the running of the 180 days following mailing of the notice of intent to forfeit unless the defendant or the surety submits an application for the exclusion of time from that 180-day period on the ground that the defendant is temporarily prevented from appearing before the court because:

    (a) He is ill;

    (b) He is insane; or

    (c) He is being detained by civil or military authorities,

and the court, upon hearing the matter, determines that one or more of the grounds described in this subsection exist and that the surety did not in any way cause or aid the absence of the defendant. If the requirements of this subsection are met, the court may exclude from the 180-day period such time as it determines to be necessary and just. The court may include, as part of the total time excluded from the running of the 180 days, a reasonable period for the defendant’s return to the court upon termination of the temporary disability if it determines that the additional period is necessary.]”.

    Senator Washington moved the adoption of the amendment.

    Remarks by Senator Washington.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 337.

    Bill read third time.

    Remarks by Senators Jacobsen, O’Donnell and Titus.

    Roll call on Senate Bill No. 337:

    Yeas—9.

    Nays—Carlton, Coffin, Jacobsen, James, Mathews, Neal, Porter, Rhoads, Schneider, Shaffer, Titus, Townsend—12.

    Senate Bill No. 337 having failed to receive a constitutional majority, Madam President declared it lost.

    Senate Bill No. 356.

    Bill read third time.

    The following amendment was proposed by Senator Townsend:

    Amendment No. 657.

    Amend the bill as a whole by renumbering sections 11 and 12 as sections 12 and 13 and adding a new section designated sec. 11, following sec. 10, to read as follows:

    “Sec. 11.  NRS 287.010 is hereby amended to read as follows:

    287.010 1.  The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada may:

    (a) Adopt and carry into effect a system of group life, accident or health insurance, or any combination thereof, for the benefit of its officers and employees, and the dependents of officers and employees who elect to accept the insurance and who, where necessary, have authorized the governing body to make deductions from their compensation for the payment of premiums on the insurance.

    (b) Purchase group policies of life, accident or health insurance, or any combination thereof, for the benefit of such officers and employees, and the dependents of such officers and employees, as have authorized the purchase, from insurance companies authorized to transact the business of such insurance in the State of Nevada, and, where necessary, deduct from the compensation of officers and employees the premiums upon insurance and pay the deductions upon the premiums.

    (c) Provide group life, accident or health coverage through a self-insurance reserve fund and, where necessary, deduct contributions to the maintenance of the fund from the compensation of officers and employees and pay the deductions into the fund. The money accumulated for this purpose through deductions from the compensation of officers and employees and contributions of the governing body must be maintained as an internal service fund as defined by NRS 354.543. The money must be deposited in a state or national bank authorized to transact business in the State of Nevada. Any independent administrator of a fund created under this section is subject to the licensing requirements of chapter 683A of NRS, and must be a resident of this state. Any contract with an independent administrator must be approved by the commissioner of insurance as to the reasonableness of administrative charges in relation to contributions collected and benefits provided. The provisions of NRS 689B.030 to 689B.050, inclusive,and section 3 of this act do not apply to coverage provided pursuant to this paragraph.

    (d) Defray part or all of the cost of maintenance of a self-insurance fund or of the premiums upon insurance. The money for contributions must be budgeted for in accordance with the laws governing the county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada.

    2.  If a school district offers group insurance to its officers and employees pursuant to this section, members of the board of trustees of the school district must not be excluded from participating in the group insurance. If the amount of the deductions from compensation required to pay for the group insurance exceeds the compensation to which a trustee is entitled, the difference must be paid by the trustee.”.

    Amend the title of the bill, third line, after the semicolon, by inserting: “exempting certain group health coverage provided by public agencies from certain provisions governing required benefits;”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes relating to required benefits for health insurance. (BDR 57‑682)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senators Townsend and Titus.

    Senator Townsend moved that Senate Bill No. 356 be taken from the General File and placed on the General File for the next legislative day.

    Remarks by Senator Townsend.

    Motion carried.

    Senate Bill No. 407.

    Bill read third time.


    Roll call on Senate Bill No. 407:

    Yeas—21.

    Nays—None.

    Senate Bill No. 407 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 408.

    Bill read third time.

    Roll call on Senate Bill No. 408:

    Yeas—21.

    Nays—None.

    Senate Bill No. 408 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 433.

    Bill read third time.

    Roll call on Senate Bill No. 433:

    Yeas—21.

    Nays—None.

    Senate Bill No. 433 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 450.

    Bill read third time.

    The following amendment was proposed by the Committee on Transportation:

    Amendment No. 675.

    Amend the bill as a whole by deleting sections 1 and 2 and renumbering sections 3 through 6 as sections 1 through 4.

    Amend sec. 3, page 5, line 30, by deleting “5” and inserting “3”.

    Amend sec. 4, page 6, line 31, by deleting “5” and inserting “3”.

    Amend sec. 6, page 7, by deleting lines 4 through 9 and inserting:

    “Sec. 4.  1.  This section and sections 1 and 3 of this act become effective on July 1, 1999.

    2.  Section 2 of this act becomes effective at 12:01 a.m. on January 1, 2001.

    3.  Section 1 of this act expires by limitation on January 1, 2001.”.

    Amend the title of the bill, first and second lines, by deleting: “changing certain provisions for imposition of the vehicle privilege tax;”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Limits operation of and increases registration fees for certain slower vehicles. (BDR 43‑1477)”.

    Senator O’Donnell moved the adoption of the amendment.

    Remarks by Senator O’Donnell.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 455.

    Bill read third time.

    Roll call on Senate Bill No. 455:

    Yeas—21.

    Nays—None.

    Senate Bill No. 455 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 475.

    Bill read third time.

    Remarks by Senators Coffin and O’Connell.

    Roll call on Senate Bill No. 475:

    Yeas—20.

    Nays—Coffin.

    Senate Bill No. 475 having received a two-thirds majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 481.

    Bill read third time.

    Remarks by Senators Coffin, Porter and James.

    Senator James moved that Senate Bill No. 481 be placed on the bottom of the General File.

    Remarks by Senator James.

    Motion carried.

    Senate Bill No. 501.

    Bill read third time.

    Roll call on Senate Bill No. 501:

    Yeas—21.

    Nays—None.

    Senate Bill No. 501 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 521.

    Bill read third time.

    Remarks by Senators McGinness, Care, Neal, Carlton, James and Schneider.

    Senator Carlton disclosed that she is an employee of Treasure Island but Legal Counsel has advised her that she has no conflict on the bill.

 

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

    Senator McGinness:

    Thank you, Madam President. I thought I should make some remarks for the people who haven’t heard about this bill. It clarifies the uncertainties and technical problems in the administration of Nevada sales-and-use property tax exemptions as applied to certain works of art. It expands the requirements of the taxpayer who qualifies for the exemption.

    Section 2 makes it clear a taxpayer is allowed to collect a fee for exhibiting fine art for public display. However, the taxpayer must offer a 50 percent discount to Nevada residents during specified hours each week. It further requires the payment of property tax to the extent that the taxpayer earns net revenue from the display. Section 3 clarifies that the exemptions for fine art for public display extends to lessors of fine arts who lease the art for public display. Section 4 simplifies the county affidavit requirement, revises the definition of fine art for public display, clarifies the requirement that the art be available for educational purposes by describing the type and extent of tours that must be allowed, and clarifies the personal property held for sale by the merchant is exempt from property tax as business inventory which includes certain works of art that meet certain requirements. Section 5 parallels section 4 except it does not contain an exemption for computers and related equipment donated for use in schools. Section 6 parallels the provision in section 2 as it applies to the sales-and-use tax exemption. Section 7 clarifies for purposes of sales tax that a retail sale or sale at retail does not include a sale in which a work of art is required to meet the prescribed criteria in the bill. Section 9 clarifies that storage use for other consumption, subject to taxes, does not include the keeping or retention of certain works of art that meet specific criteria. Section 10 clarifies that the sales-and-use tax exemption for the purchase and sales of fine art for public display also applies to leases of such art, clarifies the manner in which exemptions apply in the lease context, expands the requirement of the definition of fine art for public display, provides that when such art is purchased prior to a gallery’s opening, it will not be tested for compliance until the next full calendar year after the gallery is opened, and again, clarifies the requirement the art be available for educational purposes by describing the type and extent of tours that must be allowed. Section 11 provides that if a facility that contains an area for exhibition is under development or construction by July 1, 1997, the 1997 act shall apply to works of art purchased before that date and displayed in that facility within two years after purchase. Section 12 provides for the effective dates for the basic provisions of the act as to sales, leases, dispositions, keeping and retention of property and the property held before, on or after July 1, 1999.

    Senator Care:

    Thank you, Madam President. When I ran for this Senate seat, I openly and actively campaigned for the repeal of this exemption. Before casting my vote, I will explain it. Art is not about money or tax exemptions. Art is about beauty, the soul, the human institution’s quest to find its place in the cosmos. It is not about taxes or money. The artist, himself, is not about taxes or tax exemptions or money. The artist will flourish with or without tax exemptions. He is compelled to do so. He doesn’t care if his reward is riches or his works never go recognized. This is because he is blessed with a glandular fury, a visceral fire. This would explain what compels him in spite of himself to create, to take brush to canvas, pen to paper, chisel to stone and to compose masterful reveries that otherwise would never be heard. He is not about tax exemptions. He is not about money. I know about this.

    In 1977, I went to South Dakota as a reporter in Rapid City. I became good friends with a man named Korczak Ziolkowski. If you don’t know the name, you will in a minute know who I am talking about. This is the noted sculptor who after World War II left Boston all by himself and vowed to carve a mountain in the image of Chief Crazy Horse right in the heart of the Black Hills. I got to know him very well. I would spend my weekends with him. We would drive to the top of that mountain, and he would talk and I would listen. He would talk often about the times the Federal Government had come to him and said, “We’ll give you money. We’ll help you. You need to be funded.” He would laugh and explain, “No, I never took the money. I would not take the money. I’m not about money.” Korczak died in 1982, and today the project goes on performed by his five sons, five daughters and my good friend, his widow, Ruth. Crazy Horse Mountain is not about tax exemptions or money. It is about art and the artist. So, too, the art collector should be not concerned with tax exemptions and money. The art collector is not gifted with the talent of the artist, but is gifted with a love for what that talent can do. Museums are not about money. Many years ago, some of you may have seen a motion picture called “It’s a Mad, Mad, Mad, Mad World.” There is a scene in there after Jimmy Durante has just died and everybody is standing around the body. They are getting into a debate about how they are going to divide the stash when they find it. They can’t decide. Somebody says maybe it doesn’t matter because none of us are going to report that money to the IRS anyway. Jonathan Winters, playing the role of a tow-truck driver, backs away in horror and says, “But everybody pays their taxes, everybody.” This bill is not about art. This bill is about money, the very antithesis of art. One other thing about the artist the artist does not compromise. The artist does not know compromise. Thus, he cannot even consider compromise. He simply creates. It follows that when there is legislation pending, ostensibly about art, neither should the lawmakers compromise. It is repeal or it is nothing. Today I cast a “no” vote. I do so on behalf of the tens of thousands of my constituents who love art as much as anyone else, but who will never, never, never have, and know they will never, never, never have enough money to take advantage of this so-called exemption. Thank you.

    Senator Neal:

    Madam President, I appreciate my colleague’s explanation. I was sitting here listening to the chairman of the Taxation Committee give the explanation as to what this bill does. I was wondering whether or not I was in the same committee that he was that considered this bill. I was the only “no” vote to pass this particular measure out. As I normally do, I tried to understand those measures which I’m about to vote upon. As you probably know, this issue started in the 1997 Legislative Session with A.B. No. 536. Eight of us, at that time, voted against that bill. I was among them. I followed that bill after it passed through the rule-making process of the tax commission. The bill that was passed did not include anything involving a fee. It did not include anything involving a lease. When I saw the proposed rule that was being proposed by the benefactor of this legislation, I challenged this proposal to the tax commission. Under our doctrine, expresio unis este exclusio alterius, which means in essence, “Those things that are not expressed in the law, are excluded.” The tax commission decided in their ruling to disallow the fee. Among other things, they set restrictions as to when the art could be displayed and also made public within the hours set out in the bill―twenty hours per week, 35 weeks per year. One person, Mr. Steve Wynn, decided that, in spite of that fact, he would go forward and charge the fee. When he did that, not knowing of course, or did he know, wittingly or unwittingly, the tax commission was obligated to deny the exemption. They did that. The exemptions they denied were, and I placed them on your desks the other day, the property tax exemption and the sales tax exemption. The property tax exemption of $2.7 million they granted. The $15 million they denied in terms of the sales tax exemption is what this bill is all about. Of course, Mr. Wynn filed a lawsuit: Bellagio vs. The Tax Commission, in which he challenged the authority of the tax commission to do this. This bill, as written, would eliminate that lawsuit and grant a $15 million exemption to Mr. Wynn. Wynn wins when we pass this bill. Also, let me just say to you, the bill we have before us authorizes Mr. Wynn to charge the fee. Whereas, A.B. No. 536 did not include the fee. We are sanctioning the fee by passage of this legislation. We are also saying in regard to that, we want to give a 50 percent discount to Nevada residents. I was listening to my chairman when he made mention of this. He didn’t tell you the hours. In the bill, the discount is from 6:00 p.m. to 12:00 a.m. This is the period of time that is listed in the bill in which this 50 percent discount takes place. I find that quite, quite interesting.

    Also, the bill provides that the works of art are not taxed on their value but on the net receipts. Now, to arrive at the net receipts there are certain costs that the benefactor will be able to consider. First, he can consider as a cost of owning the art, he can deduct the cost of exhibiting the art. He can deduct the cost of security guards, the cost of insuring the art, the cost of heating, cooling, air conditioning, lighting in exhibition areas, even the parking lot and the clean-up costs. I may add that the owner can also deduct any contribution which this bill allows him to make to art programs for juvenile delinquents or charitable organizations. These deductions are somewhat interesting because the grounds for these activities can be deducted, also, from the federal income tax. In this bill, the owner may deduct the cost of educational programs associated with the exhibit. These costs can include the brochures and other programs for advertising. He may also deduct his personal property taxes on other property. I might add for your benefit, the bill expands, and listen to me now, the bill expands the exemption for the works of fine art that are leased for display. You’ll notice I told you, initially, A.B. No. 536 did not include that, but we have now just added another exemption. Under the current law, some lease items can be subject to property and sales taxes if the value of the lease is less than $25,000 even though the value of the work is much greater. Under the provisions of this bill, Senate Bill No. 521, the lease would be exempt since the value is based on the piece of work rather than the value of the lease. May I go on further to state, property that is held as inventory by merchants is exempt from taxes under the current Nevada law. This bill makes it clear that the works of art for sale are considered inventory items even though a fee is charged for viewing this work.

    The current law requires that art be displayed to the public in order to qualify for a tax exemption. Senate Bill No. 521 relaxes the requirement to allow the exemption to apply to art that is acquired two years before the opening of the gallery in which it will be displayed. The bill also makes it clear that the exemption applies to art that is held only part of the year. I’m told to beware of that section in the law, section 4, page 4, lines 13 and 14, section 5, page 5, lines 40 and 41, that these provisions in which the tax commission considered in their rules and regulations as to limiting the art to those things that were original and could not be used. If it’s original and it’s a piece of carpet, the benefactor of this bill can get a tax exemption for it. That is what we have done with this legislation. It is even worse than A.B. No. 536. We are going to be granting an exemption for $15 million. Out of that, $6.7 million would not go to local schools’ support taxes. Well, I wonder, Madam President, how can we in all honesty pass legislation that takes money from kids. I don’t think it is right. If you think it is right, then ask the children in Lincoln County whose schools are falling apart. In Pioche, their school has been condemned. Ask the people in Lincoln County where they need money to build a school in Alamo. Ask the taxpayers in Clark County when they have to put forth their money to pay the taxes on bonds for new schools. Ask them if this is fair. I’ll bet your bottom dollar that the answer will be a resounding “No, that is not fair.” The other day I put on your desks the minutes from the tax commission that appeared before the joint committees on taxation, one of the statements that was made by the chairman of that group, Mrs. Campbell, she noticed for the record that the tax exemptions in this State amount to $677 million. Ladies and gentlemen, we are mortgaging the future of our children. This is another mortgage going on top of that mortgage. The children of this State will not be able to pay for this. We are doing this for the salvation of the rich and the wealthy. How ridiculous can that be. We cannot find money to keep kids in school by fixing rundown buildings, plaster falling off the walls, and we support this type of measure. This is wrong. It is the wrong policy at this time for this State. I ask those of you, and I know there’s been a lot of pressure put upon you to vote for this bill. We are only satisfying the whims of one particular individual. Let me just refer to you for a moment what a republican Congress did in 1997 in terms of the arts, they removed the arts from capital gains. You heard what my colleague said about the gentleman who carved the art, and he gave a very eloquent statement. The republicans in Congress said that art is for viewing, and it has no economic value, none whatsoever. Why do we have Senate Bill No. 521? What is the connection that brings back to the people some sort of value where the people can benefit from it? There is none, none whatsoever. Yet, it seems when one major taxpayer calls upon us, we want to bow and kowtow to him and give him what he wants.

    I didn’t fight this bill in committee because each time I wanted to say something, Mr. Harvey Whittemore ran to the table. I wanted to get on this floor where we have the glass in here, where Mr. Whittemore can’t come in here. I wanted to be able to tell you what this does, and what it’s all about. Madam President, I’m known to take some hard positions, but in taking those positions I try to be fair with the people of this State and the people I represent. Of course, I could very easily go to Mr. Wynn or any other rich person and say, “Here I am. Tell me what you want me to do.” But I have an obligation, a solemn and sworn obligation, to tell the people about issues such as this and to try to do the right thing in terms of their interests. This bill, Senate Bill No. 521, is not in the best interest of the people of this State.

    If you have listened to what I have just explained about this bill, you know it is different than what you heard from my chairman. Mine was a little bit more exact as to what it contains. Where did I get the information, I decided to ask the research people if they could dig up this information for me and take a look at it. What I read to you and what I’ve cited is a document that came from our Research Division on this particular bill. I wanted to find out from an impartial person what this bill was supposed to do, and what it was about. Ladies and gentlemen, that is my talk, and that is the record I wish to make on this issue. I stand by every word that I have made. I hope Lincoln County, Clark County, Pioche and all of the counties across this State and the people of this State, generally, are listening to what is going on here today, and that they would have to respond accordingly if this bill is voted out of this house. Thank you.

    Senator James:

    Thank you, Madam President. I hadn’t expected to speak on this bill today, and I certainly won’t speak long. But I was moved by the comments of my colleague, particularly my colleague who sits on the Judiciary Committee with me. Now, I know he is even more eloquent than I had thought, and I have even greater respect for him. He made some very moving remarks about art and its place in our society. I wanted to offer a different perspective. I do think this is good policy, and I intend to support it.

    I think it’s important to answer the arguments that have been made and make a record on the other side of this. Government has been in the business of promoting art for centuries. Yes, the artist is a purist, and maybe the artist doesn’t care about money. But it is the government and the benefactors of art who have brought art to society. If we didn’t have the people in Vienna, the benefactors of Mozart, Mozart worked for those people. He composed great operas that we still enjoy today because he had someone who would pay him money for his work. He had people who would build the theaters in which the operas were shown. He had people who had the resources to bring those to the people. Back in those days in Vienna, those people had the public purse. It was the public purse that was spent on this. Through every kind of art, whether it’s performance art, music or drama throughout the centuries, it’s been a governmental commitment to promoting art that has brought art to the masses. Art is tremendously important. We have an art caucus here in the Legislature. Every member of the Legislature, I believe, is a member. Art and government are inextricably intertwined. The question we have before us today is whether that intertwined relationship should extend to tax policy. I think it should.

    You’ve heard about the $600-and-some million of exemptions. Well there are all kinds of exemptions. We grant exemptions from the Federal Income Tax, property tax, sales tax and other taxes when we want to promote a policy; when we want to encourage a behavior. Promoting art and bringing art to the masses is just one of those things. We had a bill yesterday that I voted against. It was to take away an exemption to encourage businesses to pay for low-income families’ child care. That is tax policy. I didn’t think we should get rid of that. I felt we should keep that. Similarly, I think we should promote art in our society. Nevada is a state that really needs to have more art brought to it and more people in our State exposed to the great works of art. It is only through a commitment of government to this, to some degree, that we can do that. That is what we are doing. All of those exemptions that we have promote different things. This is an exemption that promotes art in our society.

    I’m very surprised to hear some of the comments I heard from my democratic colleagues on the other side of the aisle about this. It was their party throughout the history of the two dominant parties who have always tried to promote government involvement, whether it is from the NEA or many other areas: public education, public television, all of these things which bring art to people that they couldn’t otherwise afford. People can’t get on a plane, travel to Paris, go to the Louvre and see paintings. Not everybody can afford that. Most of the public won’t ever go to Paris. You have a way to bring it here that the government can support which is what this bill is all about. When you talk about the exemptions that are lost, it’s not money lost because we didn’t have this money before. It wasn’t there. We are granting an exemption, but it wasn’t money that was going to go to build any school anywhere, whether it’s in Pioche or anywhere else. We didn’t have this money. There wasn’t any art. The art wasn’t here. The art is only here with the exemption. That’s the point. Probably, the greatest Democrat of recent times, President Kennedy, was committed to having government involved in bringing art to the people. I agree with you, the artist is pure, and it’s not about money when they create these great works. But they have to be brought to the people. That is where government comes in. That’s where money is involved because it is very expensive. President Kennedy said art plays this tremendous role in society because when man becomes intoxicated by power, it’s art that holds up the mirror and reminds him of his frailties. That is why he believed that the government should be totally committed to bringing art to the people.

    Let’s not take this and turn it into a personality of one person over another who just happens to be the first person to have this idea. Maybe we’ll have others. I want to make a record today that what we are doing here is carrying on a tradition of centuries. It has been carried into this country, too. Government is taking the step and using one of its ways of spending government funds. Yes, this is tax policy. We are not actually taking and appropriating money and buying something to put into a museum. We are using tax policy to promote the private sector to do the same thing. That is what this is all about. There are details and arguments about all the little ramifications of how this thing ought to be done, and how many hours it ought to be displayed, and whether you can charge a fee to cover this or that cost. I think the committee’s done a good job, and I respect the chairman of this committee. He has done a fine job in working out all of those things, negotiating between the various parties, taking the blanket exemption from last session and narrowing it down this session. Those things are covered, but let’s think about the policy of what we are doing here. Let’s not let this get derailed off into a political issue or anything else. I certainly wouldn’t be standing here today making this speech, that I didn’t intend to make, if I didn’t believe that at the root of this there was a very good policy. A policy that is not being started today. It is just being carried on in our State. I would urge my colleagues to understand that and have that policy in their hearts when they decide whether to vote for this bill or against it.

    Senator Schneider:

    Thank you, Madam President. I agree with my colleague from Senate District No. 8. We share that district. Two years ago when I voted for the art tax, I thought this was a perfect public―private partnership. Then I read in the newspaper this last summer, something happened to our private partner. It didn’t look like it was going right. I can tell you, I’m here today to work on that partnership. I think that my constituents who have been deprived of parks, theaters, museums and other cultural venues in Las Vegas have an opportunity here. We look at this partnership, and that is really what it is, and what has the State invested? We have invested nothing. We have a partner who has invested $300 million in fine art. That is a very large investment. If someone took that amount of money and put it in a tax-free municipal, he’d get close to $30 million per year. There is no guarantee that this art dealer can resell that art for $300 million. We have no risk. My friend and colleague from North Las Vegas says we’re giving away a $15 million tax windfall, but as I said, the private partner of the State is an art dealer. He wasn’t going to pay that $15 million anyhow. He is exempt like every art dealer in this State.

    I have, also, received a commitment from our partner who is represented here at the Legislature that they will develop a program for education in this State for our children. They will work on a curriculum and tie it into our art curriculum, Clark County School District, and use this museum as a learning tool and laboratory. Currently, they are working on that. I have, also, received a commitment from them that the students would go there for free. The students from our magnet school for the fine arts working in the visual arts and our students at the University who are in the art program could also attend for free. This would be a laboratory for them.

    I think this is very important. Just recently my wife and I went to Los Angeles to the Van Gough exhibit. It was $20 per person to get in. We bought our plane tickets. Bought our hotel room for two nights, meals and a rent-a-car, we spent almost $1000 to go to the Van Gough exhibit. The people of Las Vegas and the people of Nevada now can go see fine art like that for $6 under this bill. We don’t have a museum like this. I think this is such a win, win for the state. I have worked with the representatives of this corporation. They are already designing a larger room to put the gallery in so that more students can take advantage of it. I’m willing to work on this partnership for another two years. I also have a commitment that two years from now this corporation will come back to us to report on that partnership: how many Nevadans are using it, how many students are using it, how many students they put through the gallery. I think this is very important for my constituents to have an asset like this in our community. This is not the only hotel corporation that is moving into the arts as part of their promotion. The Rio Hotel just recently brought in Treasures of the Czars from Russia. I think we are going to see more and more activities of this nature. I think we have to encourage that. I would urge my colleagues to join with me in this partnership. Thank you, very much, Madam President.

    Senator McGinness:

    Thank you, Madam President. Let me say that I know better than to stand up and try to spar with my colleague from North Las Vegas, but let me address a couple of the issues he talked about. When I read the floor statement, it is the floor statement from the Legislative Counsel Bureau. I have been upset with those folks from time to time because I’ve tried to get them to take a stand; they will not do it. You can ask any of these folks who chair committees, and they won’t give you an opinion because that is what they are supposed to do. I challenge the Senator’s impartiality of this statement. I challenge him to point to a time that I have tried to limit, direct or stifle debate in the Senate Taxation Committee. Many times much to the chagrin of all of my colleagues, we heard lengthy debates on this bill and also Senate Bill No. 90 that would have repealed this exemption altogether. Thank you.

    Senators Rhoads, O’Connell and Jacobsen moved the previous question.

    Motion carried.

    The question being on the passage of Senate Bill No. 521.

    Roll call on Senate Bill No. 521:

    Yeas—14.

    Nays—Amodei, Care, Coffin, Neal, O’Connell, Titus, Wiener—7.

    Senate Bill No. 521 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Joint Resolution No. 8.

    Resolution read third time.

    Roll call on Senate Joint Resolution No. 8:

    Yeas—20.

    Nays—Carlton.

    Senate Joint Resolution No. 8 having received a constitutional majority, Madam President declared it passed, as amended.

    Resolution ordered transmitted to the Assembly.

    Senate Bill No. 128.

    Bill read third time.

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

    Amendment No. 510.

    Amend sec. 2, page 2, by deleting lines 16 through 40 and inserting:

    “3.  If, after giving notice and holding a hearing pursuant to NRS 624.310, the board determines that a person has engaged in advertising in a telephone directory in a manner that violates the provisions of this section, the board may, in addition to any penalty, punishment or disciplinary action authorized by the provisions of this chapter, issue an order to cease and desist the unlawful advertising and to disconnect any telephone number included in the advertising.

    4.  If a person who is issued an order to cease and desist pursuant to subsection 3 fails to disconnect any telephone number included in the advertisement within 5 days after the date that he receives the order, the board may request the public utilities commission of Nevada to order the appropriate provider of telephone service to disconnect any telephone number included in the advertisement.”.

    Amend sec. 2, page 2, line 41, by deleting “7.” and inserting “5.”.

    Amend sec. 3, page 3, by deleting lines 10 and 11 and inserting: “refuses to issue or renew a license, suspends or revokes a license , has probable cause to believe that a person has violated NRS 624.307 or”.

    Amend the bill as a whole by renumbering sec. 4 as sec. 5 and adding a new section designated sec. 4, following sec. 3, to read as follows:

    “Sec. 4.  Chapter 703 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  Within 30 days after the date that the commission receives a request from the state contractors’ board to disconnect a telephone number pursuant to NRS 624.307, the commission shall issue an order to the appropriate provider of telephone service without holding a hearing.

    2.  Compliance in good faith by a provider of telephone service with an order of the commission to terminate service issued pursuant to this section shall constitute a complete defense to any civil or criminal action brought against the provider of telephone service arising from the termination of service.

    3.  As used in this section, “provider of telephone service” has the meaning ascribed to it in NRS 707.355.”.

    Amend sec. 4, page 3, line 32, by deleting: “state contractor’s board” and inserting: “public utilities commission of Nevada”.

    Amend sec. 4, page 3, line 33, by deleting the italicized comma and inserting: “and section 4 of this act,”.

    Amend sec. 4, page 3, by deleting line 35 and inserting: “public utilities commission of Nevada.”.

    Amend the title of the bill, first line, by deleting “contractor’s board” and inserting: “contractors’ board to request the public utilities commission of Nevada”.

    Amend the summary of the bill, first line, by deleting “contractor’s board” and inserting: “contractors’ board to request public utilities commission of Nevada”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.


    Senate Bill No. 481.

    Bill read third time.

    Remarks by Senators James and Coffin.

    Roll call on Senate Bill No. 481:

    Yeas—20.

    Nays—Coffin.

    Senate Bill No. 481 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senator Raggio moved that the Senate recess until 4:30 p.m.

    Motion carried.

    Senate in recess at 2:11 p.m.

SENATE IN SESSION

    At 5:13 p.m.

    President Hunt presiding.

    Quorum present.

REPORTS OF COMMITTEES

Madam President:

    Your Committee on Commerce and Labor, to which were referred Senate Bills Nos. 38, 423, 440, 451, 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 Government Affairs, to which were referred Senate Bills Nos. 394, 500, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Ann O’Connell, Chairman

Madam President:

    Your Committee on Human Resources and Facilities, to which were referred Assembly Bills Nos. 167, 250, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass, and place on Consent Calendar.

    Also, your Committee on Human Resources and Facilities, to which was referred Senate Bill No. 163, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Raymond D. Rawson, Chairman

Madam President:

    Your Committee on Judiciary, to which was referred Senate Bill No. 485, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and re-refer to the Committee on Finance.

Mark a. James, Chairman

Madam President:

    Your Committee on Natural Resources, to which was referred Senate Bill No. 363, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

    Also, your Committee on Natural Resources, to which was referred Senate Joint Resolution No. 3, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

    Also, your Committee on Natural Resources, to which was referred Senate Bill No. 211, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Dean A. Rhoads, Chairman

Madam President:

    Your Committee on Taxation, to which were referred Senate Bills Nos. 287, 349, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Mike McGinness, Chairman

MOTIONS, RESOLUTIONS AND NOTICES

    Senator Townsend moved that Senate Bill No. 131 be taken from the Secretary’s desk and placed on General File.

    Remarks by Senator Townsend.

    Motion carried.

    Senator Townsend moved that the motion whereby Senate Bill No. 356 was moved to the next legislative day be rescinded.

    Remarks by Senator Townsend.

    Motion carried.

SECOND READING AND AMENDMENT

    Senate Bill No. 12.

    Bill read second time.

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

    Amendment No. 662.

    Amend the bill as a whole by renumbering sections 1 through 8 as sections 2 through 9 and adding a new section designated section 1, following the enacting clause, to read as follows:

    “Section 1.  The legislature hereby finds and declares that:

    1.  Nonprofit hospital, medical and dental service corporations have historically filled a unique position of community trust as indicated by the special consideration that these nonprofit corporations receive in federal and state laws. These laws have allowed such nonprofit corporations to hold and accumulate assets and real property in order to perform their special responsibilities to the residents of the State of Nevada.

    2.  When nonprofit hospital, medical or dental service corporations which have received special consideration by law in this state convert to for-profit corporations, it is in the public interest that assets of such corporations remain in this state to be used for their intended purpose through distribution to charitable organizations.”.

    Amend sec. 2, page 2, line 6, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend sec. 3, page 2, line 7, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend sec. 3, page 2, line 9, by deleting “14” and inserting “13”.

    Amend sec. 4, page 2, line 10, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend sec. 4, page 2, line 12, by deleting “15” and inserting “14”.

    Amend sec. 5, page 2, line 15, by deleting: “or proposed insurer”.

    Amend sec. 5, page 2, line 21, by deleting: “or proposed insurer”.

    Amend sec. 5, page 2, line 24, by deleting: “14 to 27,” and inserting: “13 to 26,”.

    Amend sec. 5, page 2, line 25, by deleting: “or proposed insurer”.

    Amend sec. 5, page 2, line 29, by deleting “6” and inserting “7”.

    Amend sec. 5, page 2, line 30, by deleting “persons” and inserting “individuals”.

    Amend sec. 5, page 2, line 31, by deleting: “22, 23 and 24” and inserting: “21, 22 and 23”.

    Amend sec. 5, page 2, line 35, by deleting “22” and inserting “21”.

    Amend sec. 5, page 2, line 37, by deleting “6” and inserting “7”.

    Amend sec. 6, page 3, by deleting line 18, and inserting:

    “(a) Whether, at the time of conversion, the foreign insurer possesses charitable assets which are:

        (1) Attributable to business that the foreign insurer has conducted as a nonprofit hospital, medical or dental service corporation in the State of Nevada; and

        (2) Lawfully subject to this chapter or any other applicable provision of NRS;

    (b) In the manner set forth in section 21 of this act, whether or not a”.

    Amend sec. 6, page 3, line 19, by deleting “22” and inserting “21”.

    Amend sec. 6, page 3, line 23, by deleting “(b)” and inserting “(c)”.

    Amend sec. 6, page 3, line 24, by deleting: “23 and 24” and inserting: “22 and 23”.

    Amend sec. 7, page 3, line 35, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend sec. 7, page 3, line 37, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend sec. 7, page 3, line 39, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend sec. 7, page 3, line 41, by deleting “6” and inserting “7”.

    Amend sec. 7, page 4, line 5, by deleting “6” and inserting “7”.

    Amend sec. 7, page 4, line 10, by deleting the period and inserting: “and for all reasonable costs incurred by the attorney general in executing his duties pursuant to this section, including, without limitation, attorney’s fees.”.

    Amend sec. 8, page 4, line 24, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend the bill as a whole by deleting sections 9 and 10 and renumbering sections 11 through 29 as sections 10 through 28.

    Amend sec. 11, page 7, line 40, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend sec. 12, page 8, line 10, by deleting “5” and inserting “6”.

    Amend sec. 13, page 8, line 17, by deleting: “14 to 28,” and inserting: “13 to 27,”.

    Amend sec. 14, page 8, line 18, by deleting: “14 to 28,” and inserting: “13 to 27,”.

    Amend sec. 15, page 8, line 23, by deleting: “14 to 28,” and inserting: “13 to 27,”.

    Amend sec. 15, page 8, by deleting lines 25 though 31 and inserting: “that is recognized as exempt pursuant to section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986 or is subject to the provisions of section 833 of the Internal Revenue Code of 1986, future amendments to those sections and the corresponding provisions of future internal revenue laws and is:”.

    Amend sec. 15, page 8, line 32, by deleting “3.” and inserting “1.”.

    Amend sec. 15, page 8, line 33, by deleting “4.” and inserting “2.”.

    Amend sec. 15, page 8, line 34, by deleting “5.” and inserting “3.”.

    Amend sec. 15, page 8, line 35, by deleting “6.” and inserting “4.”.

    Amend sec. 16, page 9, line 12, by deleting: “a material amount of the assets,” and inserting: “5 percent or more of the admitted assets,”.

    Amend sec. 16, page 9, line 14, after “corporation” by inserting: “, or 25 percent of the surplus to policyholders as of December 31 next preceding the transaction,”.

    Amend sec. 16, page 9, lines 21 and 22, by deleting: “a material amount of the assets,” and inserting: “5 percent or more of the admitted assets,”.

    Amend sec. 16, page 9, line 23, after “service corporation” by inserting: “, or 25 percent of the surplus to policyholders,”.

    Amend sec. 17, page 9, line 27, by deleting “16” and inserting “15”.

    Amend sec. 17, page 9, line 35, by deleting: “14 to 28,” and inserting: “13 to 27,”.

    Amend sec. 17, page 10, line 12, by deleting: “14 to 27,” and inserting: “13 to 26,”.

    Amend sec. 17, page 10, line 13, by deleting: “14 to 27,” and inserting: “13 to 26,”.

    Amend sec. 18, page 10, line 37, by deleting “16” and inserting “15”.

    Amend sec. 18, page 10, line 40, by deleting “16” and inserting “15”.

    Amend sec. 18, page 11, line 2, by deleting “16” and inserting “15”.

    Amend sec. 19, page 11, line 14, by deleting “17” and inserting “16”.

    Amend sec. 19, page 11, line 29, by deleting “17” and inserting “16”.

    Amend sec. 19, page 11, line 32, by deleting “17” and inserting “16”.

    Amend sec. 20, page 11, line 39, by deleting “17” and inserting “16”.

    Amend sec. 20, page 11, line 43, by deleting “who”.

    Amend sec. 20, page 12, line 1, by deleting “reside”.

    Amend sec. 21, page 13, line 8, by deleting “16” and inserting “15”.

    Amend sec. 21, page 13, line 14, by deleting “16” and inserting “15”.

    Amend sec. 21, page 13, line 19, by deleting “22” and inserting “21”.

    Amend sec. 21, page 13, line 22, by deleting “16” and inserting “15”.

    Amend sec. 21, page 13, line 28, by deleting “persons” and inserting “individuals”.

    Amend sec. 21, page 13, line 32, by deleting “16” and inserting “15”.

    Amend sec. 22, page 13, line 38, by deleting “16” and inserting “15”.

    Amend sec. 23, page 15, line 5, by deleting “22” and inserting “21”.

    Amend sec. 23, page 15, line 17, by deleting “persons” and inserting “individuals”.

    Amend sec. 23, page 15, line 19, by deleting “persons” and inserting “individuals”.

    Amend sec. 23, page 15, line 20, by deleting “persons” and inserting “individuals”.

    Amend sec. 23, page 15, line 23, by deleting “persons” and inserting “individuals”.

    Amend sec. 23, page 15, between lines 26 and 27, by inserting:

    “4.  A charitable organization that receives charitable assets pursuant to this section shall place the assets in a trust fund and shall not expend more than 90 percent of the earnings on the corpus in a calendar year.

    5.  A charitable organization that receives charitable assets pursuant to section 22 of this act must have a board of directors consisting of 11 members who are appointed by the governor from a list of 20 names submitted by the department of human resources. The term of six of the initial members of the board of directors must be 2 years, and the term of five of the initial members of the board of directors must be 4 years. After the initial terms, the term of each member of the board of directors is 4 years. After the initial appointments, the board of directors shall fill all vacancies occurring on the board in a timely manner. The membership of a board of directors must be diverse and may include, without limitation:

    (a) Providers of health care from community, rural or institutional settings;

    (b) Disabled persons;

    (c) Representatives of the private sector;

    (d) Interested residents; and

    (e) Consumers of health care.”.

    Amend sec. 24, page 15, line 28, by deleting “23” and inserting “22”.

    Amend sec. 24, page 15, by deleting line 31 and inserting: “charitable activities. The charitable organization shall cause an audit to be performed annually by a certified public accounting firm that is independent of the charitable organization. The annual report and audit report are public records and must be”.

    Amend sec. 24, page 15, by deleting lines 35 through 39.

    Amend sec. 24, page 15, line 40, by deleting “3.” and inserting “2.”.

    Amend sec. 24, page 15, line 41, by deleting “23” and inserting “22”.

    Amend sec. 24, page 16, line 3, by deleting “4.” and inserting “3.”.

    Amend sec. 24, page 16, line 7, by deleting “23” and inserting “22”.

    Amend sec. 24, page 16, line 8, by deleting “5.” and inserting “4.”.

    Amend sec. 24, page 16, line 12, by deleting “23” and inserting “22”.

    Amend sec. 24, page 16, line 14, by deleting “6.” and inserting “5.”.

    Amend sec. 24, page 16, line 15, by deleting “23” and inserting “22”.

    Amend sec. 24, page 16, line 21, by deleting “7.” and inserting “6.”.

    Amend sec. 24, page 16, line 23, by deleting “23” and inserting “22”.

    Amend sec. 25, page 16, line 28, by deleting: “14 to 27,” and inserting: “13 to 26,”.

    Amend sec. 25, page 16, line 30, by deleting: “14 to 27,” and inserting: “13 to 26,”.

    Amend sec. 25, page 16, line 32, by deleting: “14 to 27,” and inserting: “13 to 26,”.

    Amend sec. 25, page 16, line 36, by deleting: “14 to 27,” and inserting: “13 to 26,”.

    Amend sec. 25, page 17, line 4, by deleting the period and inserting: “and for all reasonable costs incurred by the attorney general in executing his duties pursuant to this section, including, without limitation, attorney’s fees.”.

    Amend sec. 26, page 17, line 18, by deleting: “14 to 27,” and inserting: “13 to 26,”.

    Amend sec. 27, page 17, line 28, by deleting “16” and inserting “15”.

    Amend sec. 28, page 17, line 38, by deleting “16” and inserting “15”.

    Amend sec. 29, page 18, line 4, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend the bill as a whole by deleting sec. 30 and renumbering sections 31 and 32 as sections 29 and 30.

    Amend sec. 31, page 18, line 40, by deleting: “3 to 8,” and inserting: “4 to 9,”.

    Amend sec. 32, page 19, by deleting lines 1 through 4 and inserting:

    “Sec. 30.  This act becomes effective upon passage and approval.”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 25.

    Bill read second time.

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

    Amendment No. 668.

    Amend the bill as a whole by deleting section 1 and renumbering sections 2 and 3 as sections 1 and 2.

    Amend sec. 2, page 1, line 12, by deleting “The” and inserting “1.  The”.

    Amend sec. 2, page 1, by deleting line 16 and inserting:

    “2.  An ordinance passed pursuant to subsection 1 must provide that any license or permit that may be required for the sale of fireworks must be issued by the licensing authority for:

    (a) The county, if the fireworks are sold within the unincorporated areas of the county; or

    (b) A city located within the county, if the fireworks are sold within the jurisdiction of that city.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to fireworks; requiring a license or permit that may be required for the sale of fireworks to be issued by the licensing authority of a city or county; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Requires license or permit that may be required for sale of fireworks to be issued by licensing authority of city or county. (BDR 20‑258)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 103.

    Bill read second time.

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

    Amendment No. 581.

    Amend sec. 11, page 9, by deleting lines 15 through 20 and inserting:

    “3.  Except as otherwise provided in subsection 5:

    (a) A firm, partnership, corporation or other person who performs or offers to perform engineering services in a certain discipline at a particular place of business in this state shall employ full time at that place of business a professional engineer licensed in that discipline.

    (b) Each person who holds himself out as practicing a certain”.

    Amend sec. 12, page 10, by deleting line 4 and inserting: “term “licensed engineer,” “professional engineer” or “registered engineer” or any combination,”.

    Amend sec. 12, page 10, by deleting line 8 and inserting: “engineer” or “licensed engineer”; or]”.

    Amend sec. 12, page 10, line 9, after “(3)” and inserting: “Employ, use or cause to be used the term “engineer,” “engineering” or “engineered” or any combination, variation or abbreviation thereof as a professional or commercial identification, representation, claim, asset or means of advantage or benefit without disclosing that he is not qualified, registered or licensed to practice professional engineering in this state; or

    (4)”.

    Amend sec. 12, page 10, by deleting line 34 and inserting:

    “4.  [Subparagraph (2)] The provisions of subparagraph (3) of paragraph”.

    Amend the bill as a whole by deleting sec. 13 and adding new sections designated sections 13 through 18, following sec. 12, to read as follows:

    “Sec. 13.  NRS 78.045 is hereby amended to read as follows:

    78.045 1.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed pursuant to the laws of this state which provides that the name of the corporation [contain] contains the word “bank” or “trust,” unless:

    (a) It appears from the articles or the certificate of amendment that the corporation proposes to carry on business as a banking or trust company, exclusively or in connection with its business as a bank or savings and loan association; and

    (b) The articles or certificate of amendment is first approved by the commissioner of financial institutions.

    2.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed pursuant to the provisions of this chapter [when] if it appears from the articles or the certificate of amendment that the business to be carried on by the corporation is subject to supervision by the commissioner of insurance or by the commissioner of financial institutions, unless the articles or certificate of amendment is [first] approved by the commissioner who will [be supervising] supervise the business of the corporation.

    3.  Except as otherwise provided in subsection 4, the secretary of state shall not accept for filing any articles of incorporation or any certificate or amendment of articles of incorporation of any corporation formed pursuant to the laws of this state if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer,” “registered engineer” or “licensed engineer” unless:

    (a) The state board of professional engineers and land surveyors certifies that the principals of the corporation are licensed to practice engineering pursuant to the laws of this state; or

    (b) The state board of professional engineers and land surveyors certifies that the corporation is exempt from the prohibitions of NRS 625.520.

    4.  The provisions of subsection 3 do not apply to any corporation, whose securities are publicly traded and regulated by the Securities Exchange Act of 1934, which does not engage in the practice of professional engineering.

    5.  The commissioner of financial institutions and the commissioner of insurance may approve or disapprove the articles or amendments referred to them pursuant to the provisions of this section.

    Sec. 14.  NRS 80.010 is hereby amended to read as follows:

    80.010 1.  Before commencing or doing any business in this state, every corporation organized pursuant to the laws of another state, territory, the District of Columbia, a dependency of the United States or a foreign country, that enters this state to do business must:

    (a) File in the office of the secretary of state of this state:

        (1) A certificate of corporate existence issued not more than 90 days before the date of filing by an authorized officer of the jurisdiction of its incorporation setting forth the filing of documents and instruments related to the articles of incorporation, or the governmental acts or other instrument or authority by which the corporation was created. If the certificate is in a language other than English, a translation, together with the oath of the translator and his attestation of its accuracy, must be attached to the certificate.

        (2) A certificate of acceptance of appointment executed by its resident agent, who must be a resident or located in this state. The certificate must set forth the name of the resident agent, his street address for the service of process, and his mailing address if different from his street address. The street address of the resident agent is the registered office of the corporation in this state.

        (3) A statement executed by an officer of the corporation, acknowledged before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds, setting forth:

            (I) A general description of the purposes of the corporation; and

            (II) The authorized stock of the corporation and the number and par value of shares having par value and the number of shares having no par value.

    (b) Lodge in the office of the secretary of state a copy of the document most recently filed by the corporation in the jurisdiction of its incorporation setting forth the authorized stock of the corporation, the number of par-value shares and their par value, and the number of no-par-value shares.

    2.  The secretary of state shall not file the documents required by subsection 1 for any foreign corporation whose name is the same as, or deceptively similar to the name of a corporation, limited partnership or limited-liability company existing pursuant to the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state or a name to which the exclusive right is at the time reserved in the manner provided in the laws of this state, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

    3.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer,” “registered engineer” or “licensed engineer” unless the state board of professional engineers and land surveyors certifies that:

    (a) The principals of the corporation are licensed to practice engineering pursuant to the laws of this state; or

    (b) The corporation is exempt from the prohibitions of NRS 625.520.

    4.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if it appears from the documents that the business to be carried on by the corporation is subject to supervision by the commissioner of financial institutions, unless the commissioner certifies that:

    (a) The corporation has obtained the authority required to do business in this state; or

    (b) The corporation is not subject to or is exempt from the requirements for obtaining such authority.

    Sec. 15.  Section 2 of Senate Bill No. 19 of this session is hereby amended to read as follows:

    Sec. 2.  NRS 80.010 is hereby amended to read as follows:

    80.010 1.  Before commencing or doing any business in this state, every corporation organized pursuant to the laws of another state, territory, the District of Columbia, a dependency of the United States or a foreign country, that enters this state to do business must:

    (a) File in the office of the secretary of state of this state:

     (1) A certificate of corporate existence issued not more than 90 days before the date of filing by an authorized officer of the jurisdiction of its incorporation setting forth the filing of documents and instruments related to the articles of incorporation, or the governmental acts or other instrument or authority by which the corporation was created. If the certificate is in a language other than English, a translation, together with the oath of the translator and his attestation of its accuracy, must be attached to the certificate.

        (2) A certificate of acceptance of appointment executed by its resident agent, who must be a resident or located in this state. The certificate must set forth the name of the resident agent, his street address for the service of process, and his mailing address if different from his street address. The street address of the resident agent is the registered office of the corporation in this state.

        (3) A statement executed by an officer of the corporation, acknowledged before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds, setting forth:

            (I) A general description of the purposes of the corporation; and

            (II) The authorized stock of the corporation and the number and par value of shares having par value and the number of shares having no par value.

    (b) Lodge in the office of the secretary of state a copy of the document most recently filed by the corporation in the jurisdiction of its incorporation setting forth the authorized stock of the corporation, the number of par-value shares and their par value, and the number of no-par-value shares.

    2.  The secretary of state shall not file the documents required by subsection 1 for any foreign corporation whose name is the same as, or deceptively similar to the name of a corporation, limited partnership or limited-liability company existing pursuant to the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state or a name to which the exclusive right is at the time reserved in the manner provided in the laws of this state, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

    3.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer,” “registered engineer” or “licensed engineer” unless the state board of professional engineers and land surveyors certifies that:

    (a) The principals of the corporation are licensed to practice engineering pursuant to the laws of this state; or

    (b) The corporation is exempt from the prohibitions of NRS 625.520.

    4.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if it appears from the documents that the business to be carried on by the corporation is subject to supervision by the commissioner of financial institutions, unless the commissioner certifies that:

    (a) The corporation has obtained the authority required to do business in this state; or

    (b) The corporation is not subject to or is exempt from the requirements for obtaining such authority.

    5.  As used in this section, “street address” of a resident agent means the actual physical location in this state at which a resident agent is available for service of process.

    Sec. 16.  The amendatory provisions of this act do not apply to offenses committed before the effective date of section 12 of this act.

    Sec. 17.  If a land‑surveying curriculum of 4 years or more is established at a university within the University and Community College System of Nevada, the board of regents of the University of Nevada shall, not later than 30 days after the curriculum is established:

    1.  Publicly declare that the curriculum has been established at the university; and

    2.  Provide written notification of the declaration to:

    (a) The director of the legislative counsel bureau; and

    (b) The executive director of the state board of professional engineers and land surveyors.

    Sec. 18.  1.  This section and sections 1 to 4, inclusive, 6 and 8 to 17, inclusive, of this act become effective upon passage and approval.

    2.  Section 5 of this act becomes effective on July 1, 2010.

    3.  Section 7 of this act becomes effective 10 years after the board of regents of the University of Nevada publicly declares the establishment of the curriculum specified in section 17 of this act.”.

    Amend the title of the bill by deleting the 11th line and inserting: “use of certain terms relating to the practice of professional engineering; providing a penalty; and providing”.

    Senator Carlton moved the adoption of the amendment.

    Remarks by Senators Carlton and O’Donnell.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 133.

    Bill read second time.

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

    Amendment No. 648.

    Amend sec. 7, page 3, line 7, by deleting “19,” and inserting “21,”.

    Amend sec. 8, page 3, line 14, by deleting “As” and inserting: “Except as otherwise provided in section 9 of this act, as”.

    Amend the bill as a whole by renumbering sections 9 through 19 as sections 10 through 20 and adding a new section designated sec. 9, following sec. 8, to read as follows:

    “Sec. 9.  1.  A contractor or subcontractor, other than the principal contractor, who is or will be engaged in the construction of a project that is covered by a consolidated insurance program may elect to obtain his own industrial insurance coverage for his employees who work at the site of the construction project if the contractor or subcontractor can obtain a lower rate for such coverage than the basic premium rate for the consolidated insurance program that is established pursuant to NRS 686B.177.

    2.  If a contractor or subcontractor makes the election described in subsection 1, the employees of the contractor or subcontractor shall not be deemed to be employees of the owner or principal contractor of the construction project pursuant to section 17 of this act.”.

    Amend sec. 13, page 5, line 28, by deleting “A” and inserting: “Except as otherwise provided in subsection 2 of section 16 of this act, a”.

    Amend sec. 13, page 6, line 11, by deleting “616C.045;” and inserting: “616C.045 or 617.354;”.

    Amend sec. 15, pages 6 and 7, by deleting lines 39 through 41 on page 6 and lines 1 through 7 on page 7 and inserting:

    “Sec. 16.  1.  A consolidated insurance program must not provide industrial insurance coverage, a comprehensive program of safety or for the administration of claims for industrial insurance for an employee of a contractor or subcontractor who is engaged in the construction of the project that is covered by the consolidated insurance program at any time that such an employee does not work at the site of the construction project.

    2.  A consolidated insurance program must not provide industrial insurance coverage or for the administration of claims for industrial insurance for an employee of a contractor or subcontractor if the contractor or subcontractor has elected to obtain his own industrial insurance coverage pursuant to section 9 of this act.

    3.  A contractor or subcontractor who is engaged in the construction of a project that is covered by a consolidated insurance program and who has not elected to obtain his own industrial insurance coverage pursuant to section 9 of this act shall”.

    Amend sec. 15, page 7, line 13, by deleting “3.” and inserting “4.”.

    Amend sec. 15, page 7, line 16, after “shall ” by inserting: “, unless the contractor or subcontractor has elected to obtain his own industrial insurance coverage pursuant to section 9 of this act,”.

    Amend sec. 16, page 7, line 28, by deleting “If ” and inserting: “Except as otherwise provided in section 9 of this act, if ”.

    Amend sec. 17, page 8, line 10, by deleting “19,” and inserting “21,”.

    Amend sec. 18, page 8, line 18, by deleting “11” and inserting “12”.

    Amend sec. 19, page 8, line 25, by deleting “11” and inserting “12”.

    Amend sec. 19, page 8, line 30, by deleting: “12 and 13” and inserting: “13 and 14”.

    Amend sec. 19, page 8, line 33, by deleting: “12 and 13” and inserting: “13 and 14”.

    Amend sec. 19, page 9, line 6, after “insureds;” by inserting “and”.

    Amend sec. 19, page 9, by deleting line 12 and inserting: “pursuant to sections 13 and 14 of this act.”.

    Amend the bill as a whole by renumbering sections 20 and 21 as sections 22 and 23 and adding a new section designated sec. 21, following sec. 19, to read as follows:

    “Sec. 21.  The commissioner may adopt such regulations as the commissioner determines are necessary to carry out the provisions of sections 8 to 21, inclusive, of this act, to the extent that the authority granted pursuant to this section does not duplicate authority granted to the administrator.”.

    Amend sec. 20, page 9, line 21, by deleting “its” and inserting “his”.

    Amend sec. 21, page 9, line 32, by deleting “13” and inserting “14”.

    Amend the bill as a whole by renumbering sections 22 and 23 as sections 25 and 26 and adding a new section designated sec. 24, following sec. 21, to read as follows:

    “Sec. 24.  NRS 617.354 is hereby amended to read as follows:

    617.354 1.  [Within] Except as otherwise provided in section 14 of this act, within 6 working days after the receipt of a claim for compensation from a physician or chiropractor, an employer shall complete and file with his insurer or third-party administrator an employer’s report of industrial injury or occupational disease.

    2.  The report must:

    (a) Be on a form prescribed by the administrator;

    (b) Be signed by the employer or his designee;

    (c) Contain specific answers to all questions required by the regulations of the department; and

    (d) Be accompanied by a statement of the wages of the employee if the claim for compensation received from the treating physician or chiropractor indicates that the employee is expected to be off work for 5 days or more.

    3.  An employer who files the report required by subsection 1 by electronic transmission shall, upon request, mail to the insurer or third-party administrator the form that contains the original signature of the employer or his designee. The form must be mailed within 7 days after receiving such a request.

    4.  The administrator shall impose an administrative fine of not more than $1,000 against an employer for each violation of this section.”.

    Amend sec. 24, page 11, by deleting lines 26 through 29 and inserting:

    “Sec. 27.  1.  This section and sections 1 to 10, inclusive, and 12 to 26, inclusive, of this act become effective on October 1, 1999.

    2.  Section 10 of this act expires by limitation on September 30, 2001.

    3.  Section 11 of this act becomes effective on October 1, 2001.”.

    Amend the title of the bill, fifth line, before “authorizing” by inserting: “authorizing a contractor or subcontractor who is engaged in the construction of a project that is covered by a consolidated insurance program to elect to obtain his own industrial insurance coverage for his employees who work at the site of the construction project in certain circumstances;”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 140.

    Bill read second time.

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

    Amendment No. 641.

    Amend section 1, page 1, line 3, before “If” by inserting “1.”.

    Amend section 1, page 1, by deleting lines 6 and 7 and inserting: “provide with each notice of renewal sent to its insureds a statement that a portion of the premium is attributable to the general premium tax.

    2.  If an insurer includes any portion of any annual fees or assessments that it is required to pay to the State of Nevada in the amount billed to its insureds for the premium for insurance, the insurer may provide with each notice of renewal sent to its insureds a statement that a portion of the premium is attributable to the annual fees or assessments that it is required to pay to the State of Nevada.”.

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

    “Sec. 3.  This act becomes effective on July 1, 2000.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to insurance; requiring insurers to include certain information concerning premiums for insurance with notices of renewal sent to insureds; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Requires insurers to include certain information concerning premiums for insurance with notices of renewal. (BDR 57‑468).”

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 144.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 517.

    Amend sec. 4, page 1, by deleting lines 11 through 14 and inserting:

    “1.  Is licensed pursuant to the provisions of chapter 624 of NRS or performs such work that he is not required to be licensed pursuant to chapter 624 of NRS; and

    2.  Contracts with a public body to provide labor, materials or services for a public work.”.

    Amend sec. 11, page 2, by deleting lines 23 through 26 and inserting:

    “1.  Is licensed pursuant to the provisions of chapter 624 of NRS or performs such work that he is not required to be licensed pursuant to chapter 624 of NRS; and

    2.  Contracts with a contractor, another subcontractor or a supplier to provide labor, materials or services for a public work.”.

    Amend the bill as a whole by adding new sections designated sections 12.3 and 12.5, following sec. 12, to read as follows:

    “Sec. 12.3.  A contractor shall submit a progress bill to the public body monthly or more frequently if the provisions of the contract so provide.

    Sec. 12.5.  The provisions of NRS 338.160, 338.165 and 338.170 and sections 2 to 33, inclusive, of this act do not apply to a contract entered into by the department of transportation pursuant to chapter 408 of NRS.”.

    Amend sec. 13, page 2, by deleting lines 29 through 36 and inserting:

    “Sec. 13.  Interest that is required to be paid on the retainage accrues from the date the retainage is withheld until the date the retainage is paid to the person from whom the retainage was withheld.”.

    Amend sec. 14, pages 2 and 3, by deleting lines 37 through 43 on page 2 and lines 1 through 12 on page 3, and inserting:

    “Sec. 14.  If:

    1.  A public body or a person acting with the authority of the public body occupies or begins use of a public work or a portion of a public work;

    2.  A notice of completion for a public work or a portion of a public work is recorded as provided in NRS 108.228; or

    3.  A public body partially occupies one or more buildings of a public work,

the public body shall pay or cause to be paid to the contractor the retainage, the amount withheld from a progress payment or retainage payment pursuant to section 15 of this act, and any interest accrued thereon within 30 days after whichever event described in subsection 1, 2 or 3 occurs first. The amount paid must be in the proportion that the value of the portion of the public work which is used or occupied bears to the total value of the public work.”.

    Amend sec. 15, pages 3 and 4, by deleting lines 13 through 40 on page 3 and lines 1 through 9 on page 4, and inserting:

    “Sec. 15.  1.  Except as otherwise provided in section 14 of this act, a public body may, but is not required to, withhold from a progress payment or retainage payment an amount sufficient to pay the expenses the public body reasonably expects to incur as a result of the failure of the contractor to comply with the contract or applicable building code, law or regulation.

    2.  A public body shall, within 20 days after it receives a progress bill or retainage bill from a contractor, give a written notice to the contractor of any amount that will be withheld pursuant to this section. The written notice must set forth:

    (a) The amount of the progress payment or retainage payment that will be withheld from the contractor; and

    (b) A detailed explanation of the reason the public body will withhold that amount, including, without limitation, a specific reference to the provision or section of the contract, or any documents related thereto, or the applicable building code, law or regulation with which the contractor has failed to comply.

The written notice must be signed by an authorized agent of the public body.

    3.  If the public body receives a written notice of the correction of the condition that is the reason for the withholding, signed by an authorized agent of the contractor, the public body shall pay the amount withheld by the public body within 30 days after the public body receives the next progress bill or retainage bill.”.

    Amend the bill as a whole by deleting sections 16 and 17 and inserting:

    “Secs. 16 and 17.  (Deleted by amendment.)”.

    Amend sec. 18, pages 4 and 5, by deleting lines 31 through 40 on page 4 and lines 1 through 14 on page 5, and inserting:

    “Sec. 18.  1.  If a public body receives:

    (a) A progress bill or retainage bill, fails to give a contractor a written notice of any withholding in the manner set forth in subsection 2 of section 15 of this act and does not pay the contractor within 30 days after receiving the progress bill or retainage bill; or

    (b) A contractor’s written notice of the correction of a condition set forth pursuant to subsection 2 of section 15 of this act as the reason for the withholding, signed by an authorized agent of the contractor, and fails to:

        (1) Pay the amount of the progress payment or retainage payment that was withheld from the contractor within 30 days after the public body receives the next progress bill or retainage bill; or

        (2) Object to the scope and manner of the correction, within 30 days after the public body receives the notice of correction, in a written statement that sets forth the reason for the objection and is signed by an authorized agent of the public body,

the public body shall pay to the contractor, in addition to the entire amount of the progress bill or retainage bill or any unpaid portion thereof, interest from the 30th day on the amount delayed, at a rate equal to the amount provided for in subsection 3 of NRS 338.160, until payment is made to the contractor.

    2.  If the public body objects pursuant to subparagraph (2) of paragraph (b) of subsection 1, it shall pay to the contractor an amount equal to the value of the corrections to which the public body does not object.”.

    Amend sec. 19, page 5, line 15, after “Within 5” by inserting “working”.

    Amend sec. 19, page 5, line 16, by deleting “contractor,” and inserting: “contractor with respect to a contract which has not been fully performed,”.

    Amend sec. 20, pages 5 and 6, by deleting lines 24 through 41 on page 5 and lines 1 through 30 on page 6, and inserting:

    “Sec. 20.  1.  A contractor may withhold from a progress payment or retainage payment an amount sufficient to pay the expenses the contractor reasonably expects to incur as a result of the failure of his subcontractor or supplier to comply with the subcontract or applicable building code, law or regulation.

    2.  A contractor shall, within 10 days after he receives:

    (a) A progress payment or retainage payment from the public body for an amount that is less than the amount set forth in the applicable progress bill or retainage bill; or

    (b) A progress bill or retainage bill from his subcontractor or supplier,

give a written notice to his subcontractor or supplier of any amount that will be withheld pursuant to this section.

    3.  The written notice must:

    (a) Set forth:

        (1) The amount of the progress payment or retainage payment that will be withheld from his subcontractor or supplier; and

        (2) A detailed explanation of the reason the contractor will withhold that amount, including, without limitation, a specific reference to the provision or section of the subcontract, or documents related thereto, or applicable building code, law or regulation with which his subcontractor or supplier has failed to comply; and

    (b) Be signed by an authorized agent of the contractor.

    4.  The contractor shall pay to his subcontractor or supplier the amount withheld by the public body or the contractor within 10 days after:

    (a) The contractor receives a written notice of the correction of the condition that is the reason for the withholding, signed by an authorized agent of the subcontractor or supplier; or

    (b) The public body pays to the contractor the amount withheld,

whichever occurs later.”.

    Amend sec. 21, page 6, line 34, by deleting “the subcontractor” and inserting “his subcontractor”.

    Amend sec. 21, page 6, line 36, by deleting “the subcontractor” and inserting “his subcontractor”.

    Amend sec. 21, page 6, line 37, by deleting “subsection 2” and inserting: “subsections 2 and 3”.

    Amend sec. 21, page 6, line 40, by deleting “3” and inserting “4”.

    Amend sec. 21, page 6, line 41, by deleting “a notarized”.

    Amend sec. 21, page 7, by deleting lines 1 through 9 and inserting: “signed by an authorized agent of the subcontractor or supplier, and fails to:

        (1) Pay the amount of the progress payment or retainage payment that was withheld from his subcontractor or supplier within 10 days after the contractor receives the next progress bill or retainage bill; or

        (2) Object to the scope and manner of the correction, within 10 days after receiving the written notice of correction, in a written statement that sets forth the reason for the objection and is signed by an authorized agent of the subcontractor,”.

    Amend sec. 21, page 7, line 19, by deleting “proportionate” and inserting “equal”.

    Amend sec. 22, page 7, line 21, after “Within 5” by inserting “working”.

    Amend sec. 22, page 7, line 22, by deleting “supplier,” and inserting: “supplier with respect to a subcontract which has not been fully performed,”.

    Amend sec. 23, pages 7 and 8, by deleting lines 39 through 41 on page 7 and lines 1 through 10 on page 8, and inserting:

    “2.  A subcontractor shall make payments to his subcontractor or supplier in an amount equal to that subcontractor’s or supplier’s basis in the payments paid by the contractor to him for the supplies, materials and equipment identified in the contract between the contractor and the public body, or in the subcontract between the subcontractor or supplier and the contractor, within 10 days after the subcontractor has received a progress payment or retainage payment from the contractor for those supplies, materials and equipment.”.

    Amend sec. 25, pages 8 and 9, by deleting lines 28 through 42 on page 8 and lines 1 through 33 on page 9, and inserting:

    “Sec. 25.  1.  A subcontractor may withhold from a progress payment or retainage payment an amount sufficient to pay the expenses the subcontractor reasonably expects to incur as a result of the failure of his subcontractor or supplier to comply with the subcontract or applicable building code, law or regulation.

    2.  A subcontractor shall, within 10 days after he receives:

    (a) A progress payment or retainage payment from a contractor for an amount that is less than the amount set forth in the applicable progress bill or retainage bill; or

    (b) A progress bill or retainage bill from his subcontractor or supplier,

give a written notice to his subcontractor or supplier of any amount that will be withheld pursuant to this section.

    3.  The written notice must:

    (a) Set forth:

        (1) The amount of the progress payment or retainage payment that will be withheld from his subcontractor or supplier; and

        (2) A detailed explanation of the reason the subcontractor will withhold that amount, including, without limitation, a specific reference to the provision or section of the subcontract, or documents related thereto, or applicable building code, law or regulation with which the subcontractor or supplier has failed to comply; and

    (b) Be signed by an authorized agent of the subcontractor.

    4.  The subcontractor shall pay to his subcontractor or supplier the amount withheld by the public body, contractor or subcontractor within 10 days after:

    (a) The subcontractor receives a written notice of the correction of the condition that is the reason for the withholding, signed by an authorized agent of his subcontractor or supplier; or

    (b) The contractor pays to him the amount withheld,

whichever occurs later.”.

    Amend sec. 26, page 9, line 40, by deleting “subsection 2” and inserting: “subsections 2 and 3”.

    Amend sec. 26, page 10, by deleting lines 1 through 12 and inserting:

    “(c) The subcontractor receives a written notice of the correction of a condition set forth pursuant to subsection 4 of section 25 of this act as the reason for the withholding from his subcontractor or supplier, signed by an authorized agent of his subcontractor or supplier, and fails to:

        (1) Pay the amount of the progress payment or retainage payment that was withheld from his subcontractor or supplier within 10 days after the subcontractor receives the subcontractor’s or supplier’s next progress bill or retainage bill; or

        (2) Object to the scope and manner of the correction, within 10 days after receiving the written notice of correction, in a written statement that sets forth the reason for the objection, signed by an authorized agent of the subcontractor,”.

    Amend sec. 26, page 10, line 22, by deleting “proportionate” and inserting “equal”.

    Amend sec. 27, page 10, line 24, after “Within 5” by inserting “working”.

    Amend sec. 27, page 10, line 25, by deleting “supplier,” and inserting: “supplier with respect to a subcontract which has not been fully performed,”.

    Amend the bill as a whole by adding new sections designated sections 27.3 and 27.5, following sec. 27, to read as follows:

    “Sec. 27.3.  Any release or waiver required to be provided by a contractor, subcontractor or supplier to receive a progress payment or retainage payment must be:

    1.  Conditional for the purpose of receiving payment and shall be deemed to become unconditional upon the receipt of the money due to the contractor, subcontractor or supplier; and

    2.  Limited to claims related to the invoiced amount of the labor, materials, equipment or supplies that are the subject of the progress bill or retainage bill.

    Sec. 27.5.  1.  A contractor who believes that the public body has violated the provisions of NRS 338.160 or sections 14 to 19, inclusive, of this act may apply to the district court of the county in which the public work or a part thereof is located for an alternate writ of mandamus pursuant to NRS 34.150 to 34.310, inclusive, to require the public body to comply with the provisions of NRS 338.160 or sections 14 to 19, inclusive, of this act.

    2.  If the court determines that the public body has violated the provisions of NRS 338.160 or sections 14 to 19, inclusive, of this act, the court may order the public body to pay to the contractor:

    (a) The entire amount that was withheld by the public body, or a portion thereof;

    (b) Interest on the amount that was withheld by the public body, or a portion thereof;

    (c) The reasonable costs incurred by the contractor, including, without limitation, his attorney’s fees; or

    (d) Any combination of paragraphs (a), (b) and (c).

    3.  The provisions of this section do not prevent a public body from including a provision governing the payment of attorney’s fees in a contract into which it enters with a contractor for a public work.”.

    Amend sec. 28, page 10, by deleting lines 36 through 40.

    Amend sec. 28, page 10, line 41, by deleting “2.” and inserting:

“Sec. 28.  1.”.

    Amend sec. 28, page 11, line 4, by deleting “3.” and inserting “2.”.

    Amend sec. 28, page 11, line 8, by deleting “4.” and inserting “3.”.

    Amend sec. 28, page 11, line 13, by deleting “5.” and inserting “4.”.

    Amend sec. 28, page 11, by deleting lines 16 through 20 and inserting:

    “(a) The entire amount that was withheld by the respondent, or a portion thereof;

    (b) Interest on the amount that was withheld by the respondent, or a portion thereof;

    (c) The costs incurred by the petitioner, including, without limitation, his attorney’s fees; or

    (d) Any combination of paragraphs (a), (b) and (c).

    5.  If, when the motion is filed, there is a civil action pending between”.

    Amend sec. 28, page 11, line 23, by deleting “7.” and inserting “6.”.

    Amend sec. 28, page 11, line 30, by deleting “8.” and inserting “7.”.

    Amend sec. 28, page 11, line 31, by deleting “law.” and inserting: “law or contract.”.

    Amend sec. 29, page 11, line 35, by deleting “registered” and inserting “regular”.

    Amend sec. 31, page 12, by deleting sec. 31 and inserting:

    “Sec. 31.  (Deleted by amendment.)”.

    Amend sec. 32, page 12, by deleting line 18 and inserting:

    “Sec. 32.  1.  The court or arbitrator shall award to a contractor, subcontractor or”.

    Amend sec. 32, page 12, line 19, after “civil action” by inserting: “or an arbitration proceeding”.

    Amend sec. 32, page 12, by deleting line 22 and inserting: “his reasonable costs and attorney’s fees.

    2.  The provisions of NRS 338.160, 338.165 and 338.170 and sections 2 to 33, inclusive, of this act do not prevent a public body from including a provision governing attorney’s fees in a contract for a public work.”.

    Amend sec. 33, page 12, line 27, after “civil action” by inserting: “or to submit any controversy arising under the contract to arbitration”.

    Amend sec. 34, page 13, by deleting lines 25 through 32.

    Amend sec. 35, page 13, line 41, by deleting “sections” and inserting “section”.

    Amend sec. 35, page 13, line 42, by deleting “and 16”.

    Amend sec. 35, page 14, by deleting line 5 and inserting: “30 days after the date the public body receives the progress bill or within a shorter period if the provisions of the contract so provide. Not more”.

    Amend sec. 35, page 14, line 18, after “the]” by inserting: “identify in the contract and”.

    Amend sec. 35, page 14, by deleting lines 21 through 29 and inserting:

    “(a) Are identified in the contract;

    (b) Have been delivered and stored at a location, and in the time and manner, specified in a contract by the contractor or a subcontractor or supplier for use in the construction, repair or reconstruction of the public work; and

    (c) Are in short supply or were specially made for the public work,

within 30 days after the public body receives a progress bill from the”.

    Amend sec. 35, page 15, line 4, by deleting “[4.  Except” and inserting “4.  [Except”.

    Amend sec. 35, page 15, by deleting lines 8 through 14 and inserting:

    “5.] If the labor commissioner has reason to believe that an employee has a valid and enforceable claim for wages against a contractor, he may require the public body to withhold from any payment due the contractor under this section and pay the labor commissioner instead, an amount equal to the amount claimed by the employee. This amount must be paid to the employee if the claim is resolved in his favor, otherwise it must be returned to the public body for payment to the contractor.”.

    Amend sec. 36, page 15, by deleting lines 29 through 41 and inserting:

    “2.  A contractor shall make payments to his subcontractor or supplier in an amount equal to that subcontractor’s or supplier’s basis in the payments paid by the public body to the contractor for the supplies, material and equipment identified in the contract between the contractor and the public body, or between the subcontractor or supplier and the contractor, within 10 days after the contractor has received a progress payment or retainage payment from the public body for those supplies, materials and equipment.”.

    Amend the bill as a whole by adding a new section designated sec. 38, following sec. 37, to read as follows:

    “Sec. 38.  The provisions of NRS 338.160, 338.165 and 338.170 and sections 2 to 33, inclusive, of this act do not:

    1.  Create any right of action in a dispute between the public body and a subcontractor or supplier; and

    2.  Effect the right of the parties to agree to submit any controversy arising under the contract to arbitration.”.

    Senator O’Connell moved the adoption of the amendment.

    Remarks by Senators O’Connell and Neal.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 161.

    Bill read second time.

    The following amendment was proposed by the Committee on Human Resources and Facilities:

    Amendment No. 597.

    Amend the bill as a whole by deleting section 1 and renumbering sections 2 through 13 as sections 1 through 12.

    Amend sec. 2, page 1, line 11, by deleting: “3 to 9,” and inserting: “2 to 8,”.

    Amend sec. 3, page 1, lines 13 and 14, by deleting: “facility for the treatment of abuse of alcohol or drugs” and inserting: “transitional housing facility”.

    Amend sec. 3, page 2, lines 1 and 2, by deleting: “facility for the treatment of abuse of alcohol or drugs” and inserting: “transitional housing facility”.

    Amend sec. 4, page 2, lines 4 and 5, by deleting: “facility for the treatment of abuse of alcohol or drugs” and inserting: “transitional housing facility”.

    Amend sec. 5, page 2, lines 9 and 10, by deleting: “facility for the treatment of abuse of alcohol or drugs,” and inserting: “transitional housing facility,”.

    Amend sec. 5, page 2, lines 14 and 15, by deleting: “facility for the treatment of abuse of alcohol or drugs,” and inserting: “transitional housing facility,”.

    Amend sec. 5, page 2, line 18, by deleting: “facility for the treatment of abuse of alcohol or drugs” and inserting: “transitional housing facility”.

    Amend sec. 6, page 2, lines 22 and 23, by deleting: “facility for the treatment of abuse of alcohol or drugs” and inserting: “transitional housing facility”.

    Amend sec. 6, page 2, line 30, by deleting: “facility for the treatment of abuse of alcohol or drugs” and inserting: “transitional housing facility”.

    Amend sec. 6, page 2, by deleting lines 39 and 40 and inserting: “investigation or inspection to carry out the provisions of sections 2 to 8, inclusive, of this act, the bureau”.

    Amend sec. 7, page 3, by deleting lines 2 and 3 and inserting: “carry out the provisions of sections 2 to 8, inclusive, of this act.”.

    Amend sec. 8, page 3, lines 6 and 7, by deleting: “facility for the treatment of abuse of alcohol or drugs:” and inserting: “transitional housing facility:”.

    Amend sec. 9, page 3, lines 14 and 15, by deleting: “facility for the treatment of abuse of alcohol or drugs” and inserting: “transitional housing facility”.

    Amend sec. 9, page 3, line 17, by deleting “3” and inserting “2”.

    Amend sec. 10, page 3, lines 19 and 20, by deleting: “3 to 9,” and inserting: “2 to 8,”.

    Amend sec. 10, pages 3 and 4, by deleting lines 41 and 42 on page 3 and lines 1 and 2 on page 4, and inserting: “alcohol and drug abusers.

    10.  “Transitional housing facility” means a facility that provides a supportive living environment where persons receive treatment for the abuse of alcohol or drugs in a program that is offered during the day or evening, or provides intensive treatment for outpatients, and focuses on the application of recovery skills.  The term does not include a facility for the treatment of abuse of alcohol or drugs as defined in NRS 449.00455.”.

    Amend sec. 11, page 4, by deleting lines 40 through 42 and inserting: “costs related to the certifications, but in no case may the fee for a certificate exceed”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to substance abuse; requiring transitional housing facilities that provide treatment for the abuse of alcohol or drugs to be certified by the bureau of alcohol and drug abuse in the rehabilitation division of the department of employment, training and rehabilitation; providing a penalty; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Provides for regulation of transitional housing facilities that provide treatment for abuse of alcohol or drugs. (BDR 40‑131)”.

    Senator Titus moved the adoption of the amendment.

    Remarks by Senator Titus.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 167.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 273.

    Amend the bill as a whole by deleting sections 1 through 4 and adding new sections designated sections 1 through 31 and the leadlines of the repealed sections, following the enacting clause, to read as follows:

    “Section 1.  Chapter 459 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 18, inclusive, of this act.

    Sec. 2.  “Base state” means a participating state designated by a motor carrier pursuant to the uniform program as the base state of the motor carrier.

    Sec. 3.  “Motor carrier” means a person who owns or operates one or more motor vehicles used to transport a hazardous material.

    Sec. 4.  “Participating state” means a state that has entered into a reciprocal agreement with this state to participate in the uniform program.

    Sec. 5.  “Uniform application” means an application to register and obtain a permit for the transportation of hazardous materials pursuant to the uniform program.

    Sec. 6.  “Uniform program” means the program established pursuant to 49 U.S.C. § 5119 to regulate the transportation of hazardous materials.

    Sec. 7.  The director shall adopt regulations for the participation of this state in the uniform program. The regulations adopted pursuant to this section must be consistent with, and equivalent in scope, coverage and content to:

    1.  Except as otherwise provided in subsection 2, the recommendations contained in the final report of the working group established pursuant to 49 U.S.C. § 5119; or

    2.  If the Secretary of Transportation prescribes regulations pursuant to 49 U.S.C. § 5119, the regulations of the Secretary of Transportation.

    Sec. 8.  Except as otherwise required by federal law, before transporting a hazardous material upon a public highway of this state, a motor carrier shall register with and obtain a permit for the transportation of hazardous materials:

    1.  From the department; or

    2.  If the motor carrier has designated another participating state as its base state pursuant to the uniform program, from the base state.

    Sec. 9.  Except as otherwise required by federal law, a motor carrier who is required to register with and obtain a permit from the department pursuant to section 8 of this act:

    1.  Except as otherwise provided in subsection 2, is not required to provide on a uniform application any information required solely from a motor carrier who transports hazardous waste.

    2.  For the transportation of any radioactive waste must provide all the information required on a uniform application, including any information required solely from a motor carrier who transports hazardous waste.

    Sec. 10.  1.  Except as otherwise provided in subsection 2 or required by federal law, the following information is confidential when provided to the department on a uniform application:

    (a) Any information regarding the ownership of a motor carrier.

    (b) Any information regarding a parent company, affiliate or subsidiary of a motor carrier.

    (c) Any information regarding the financial balance sheet and statement of income of a motor carrier.

    (d) Any information regarding the liability of a motor carrier for any debts.

    (e) Any information regarding the customers of a motor carrier, including the services provided to specific customers.

    2.  The department may, to the extent required for the administration of the uniform program, disclose any information described in subsection 1 to:

    (a) An appropriate agency of the Federal Government or a participating state; or

    (b) A national repository established to assist in the administration of the uniform program.

    Sec. 11.  1.  Except as otherwise required by federal law, the department shall immediately suspend or revoke the registration and permit for the transportation of hazardous materials, or deny the approval of an application for such a registration and permit, by a motor carrier who:

    (a) Knowingly makes a materially false or misleading statement on the application for the registration and permit;

    (b) Is assigned an unsatisfactory safety rating pursuant to 49 C.F.R. Part 385;

    (c) Is subject to an order entered pursuant to 49 C.F.R. § 386.72;

    (d) Does not maintain the financial responsibility for liability required pursuant to 49 C.F.R. Part 387 and the laws of this state;

    (e) Knowingly uses a forged certificate of registration or permit for the transportation of hazardous materials;

    (f) Knowingly allows the use of his registration or permit for the transportation of hazardous materials by any person other than an agent or employee of the motor carrier; or

    (g) Is convicted of a serious violation or repeated violations of the laws of this state for the regulation of common, contract or private motor carriers of property.

    2.  Upon taking any action pursuant to subsection 1, the department shall:

    (a) Notify the motor carrier, by certified mail, of the reasons for its action and of any action the motor carrier may take to obtain the reinstatement of his registration and permit or the approval of his application; and

    (b) Provide the motor carrier with an opportunity for a fair and impartial hearing on the matter.

    Sec. 12.  1.  The department shall not issue a permit required pursuant to section 8 of this act to a common, contract or private motor carrier of property who is seeking to transport radioactive waste upon a public highway of this state without first determining that the carrier transporting the waste is in compliance and will continue to comply with all laws and regulations of this state and the Federal Government respecting the handling and transportation of radioactive waste and the safety of drivers and vehicles.

    2.  Any common, contract or private motor carrier of property who maintains his books and records outside of this state must, in addition to any other assessments and fees provided by law, be assessed by the department for an amount equal to the travel expenses, including the excess of the out-of-state subsistence allowances over the in-state subsistence allowances, as fixed by NRS 281.160, of employees of the department for investigations, inspections and audits which may be required to be performed outside of this state in carrying out the provisions of subsection 1.

    3.  The assessment provided for in subsection 2 must be determined by the department upon the completion of each such investigation, inspection or audit and is due within 30 days after the date on which the affected common, contract or private motor carrier receives the assessment. The records of the department relating to the additional costs incurred by reason of necessary travel must be open for inspection by the affected carrier at any time within the 30-day period.

    Sec. 13.  1.  A common, contract or private motor carrier of property shall not transport any high-level radioactive waste or spent nuclear fuel upon a public highway of this state unless:

    (a) The high-level radioactive waste or spent nuclear fuel is contained in a package that has been approved for that purpose pursuant to 10 C.F.R. Part 71; and

    (b) The carrier has complied with the provisions of 10 C.F.R. Part 71 and 10 C.F.R. Part 73 requiring the advance notification of the governor of this state or his designee.

    2.  As used in this section:

    (a) “High-level radioactive waste” has the meaning ascribed to it in 10 C.F.R. § 72.3.

    (b) “Spent nuclear fuel” has the meaning ascribed to it in 10 C.F.R. § 72.3.

    Sec. 14.  1.  Except as otherwise required by federal law, an authorized agent of the department may:

    (a) Conduct any examination or inspection of a motor vehicle or facility;

    (b) Conduct any investigation, audit or other review; and

    (c) Inspect and electronically reproduce any record, document or other evidentiary material,

as is necessary to determine the applicability of the provisions of NRS 459.708 to 459.725, inclusive, sections 2 to 17, inclusive, of this act and any regulations adopted pursuant thereto, to any person or motor vehicle, and to determine whether the person or motor vehicle is in compliance therewith.

    2.  The director shall adopt regulations governing the inspection of vehicles pursuant to subsection 1 based on standards adopted by a nonprofit organization comprised of representatives from private industry, state agencies, agencies of the Federal Government and other governmental agencies, which is dedicated to improving the safety of commercial vehicles.

    Sec. 15.  1.  A person responsible for the care, custody or control of a hazardous material which is involved in an accident or incident occurring during the transportation of the hazardous material by motor carrier, including any accident or incident occurring during any loading, unloading or temporary storage of the hazardous material while it is subject to active shipping papers and before it has reached its ultimate consignee, shall notify the division as soon as practicable if, as a result of the hazardous material:

    (a) A person is killed;

    (b) A person receives injuries that require hospitalization;

    (c) Any damage to property exceeds $50,000;

    (d) There is an evacuation of the general public for 1 hour or more;

    (e) One or more major transportation routes or facilities are closed or shut down for 1 hour or more;

    (f) There is an alteration in the operational flight pattern or routine of any aircraft;

    (g) Any radioactive contamination is suspected;

    (h) Any contamination by an infectious substance is suspected;

    (i) There is a release of a liquid marine pollutant in excess of 450 liters or a solid marine pollutant in excess of 400 kilograms; or

    (j) Any situation exists at the site of the accident or incident which, in the judgment of the person responsible for the care, custody or control of the hazardous material, should be reported to the division.

    2.  The notification required pursuant to this section must include:

    (a) The name of the person providing the notification;

    (b) The name and address of the motor carrier represented by that person;

    (c) The telephone number where that person can be contacted;

    (d) The date, time and location of the accident or incident;

    (e) The extent of any injuries;

    (f) The classification, name and quantity of the hazardous material involved, if that information is available; and

    (g) The type of accident or incident, the nature of the hazardous material involved and whether there is a continuing danger to life at the scene of the accident or incident.

    3.  A person may satisfy the requirements of this section by providing the information specified in subsection 2 to the person who responds to a telephone call placed to:

    (a) The number 911 in an area where that number is used for emergencies; or

    (b) The number zero in an area where the number 911 is not used for emergencies.

    Sec. 16.  Except as otherwise required by federal law, the provisions of NRS 459.708 to 459.725, inclusive, sections 2 to 17, inclusive, of this act and the regulations adopted pursuant thereto do not apply to the transportation of a hazardous material by any vehicle which is owned and operated by the Federal Government, this state or any political subdivision of this state.

    Sec. 17.  1.  Except as otherwise provided in subsection 2, the provisions of NRS 459.708 to 459.725, inclusive, sections 2 to 17, inclusive, of this act and the regulations adopted pursuant thereto supersede and preempt any ordinance or regulation adopted by the governing body of a political subdivision of this state governing the transportation of a hazardous material upon a public highway of this state.

    2.  The provisions of subsection 1 do not apply to any ordinance or regulation:

    (a) For the control of traffic generally; or

    (b) Which is approved by the board of directors of the department of transportation pursuant to paragraph (b) of subsection 3 of NRS 484.779.

    Sec. 18.  1.  In addition to any applicable criminal penalties, the department may, after providing written notice and an opportunity for a fair and impartial hearing, impose a civil penalty, in an amount determined pursuant to the schedule adopted by the director pursuant to this section, upon a person who violates a provision of NRS 459.708 to 459.725, inclusive, and sections 2 to 17, inclusive, of this act, or the regulations adopted pursuant thereto. The notice required by this section must include the amount of the penalty and a description of the violation.

    2.  The director shall adopt a schedule of civil penalties for the purposes of this section based on a schedule of recommended fines adopted by a nonprofit organization comprised of representatives from private industry, state agencies, agencies of the Federal Government and other governmental agencies, which is dedicated to improving the safety of commercial vehicles.

    3.  The department may bring an action to recover a civil penalty imposed pursuant to this section and shall deposit any money collected with the state treasurer for credit to the state highway fund.

    Sec. 19.  NRS 459.250 is hereby amended to read as follows:

    459.250 1.  Peace officers of the Nevada highway patrol shall enforce those provisions of NRS 459.221[, 459.707] and 459.708 to 459.725, inclusive, and sections 2 to 17, inclusive, of this act which govern the transport and handling of radioactive waste as they affect the safety of drivers or vehicles, the leakage or spill of radioactive waste from its package or the emission of ionizing radiation in an unsafe amount as established by the regulations of the state board of health.

    2.  The peace officer may:

    (a) Impound a vehicle with unsafe equipment; or

    (b) Detain a vehicle, if any waste has leaked or spilled from its package or if he has detected the emission of ionizing radiation in an unsafe amount, and order the driver of the vehicle to park it in a safe place, as determined by an officer designated by the health division of the department of human resources, pending remedial action by that division.

    3.  After a vehicle has been so detained, an officer designated by the health division of the department of human resources may order:

    (a) The vehicle to be impounded;

    (b) The leaked or spilled waste to be cleaned up;

    (c) The contents of any unsafe or leaking package to be repackaged; or

    (d) Any other appropriate precaution or remedy,

at the expense of the shipper or broker, carrier or other person who is responsible as determined by the health division of the department of human resources.

    Sec. 20.  NRS 459.428 is hereby amended to read as follows:

    459.428 “Hazardous material” has the meaning ascribed to it in NRS 459.7024 . [, and includes the materials so identified and listed in regulations adopted by the director of the department of motor vehicles and public safety pursuant to NRS 459.710.]

    Sec. 21.  NRS 459.500 is hereby amended to read as follows:

    459.500 1.  Except as otherwise provided in NRS 459.700 to 459.780, inclusive, and sections 2 to 18, inclusive, of this act, or NRS 459.800 to 459.856, inclusive:

    (a) Regulations of the commission must provide:

        (1) For safety in the packaging, handling, transportation and disposal of hazardous waste, including the safety of vehicles and drivers;

        (2) For the certification of consultants involved in consultation regarding the response to and the clean up of leaks of hazardous waste, hazardous material or a regulated substance from underground storage tanks, the clean up of spills of or accidents involving hazardous waste, hazardous material or a regulated substance, or the management of hazardous waste; and

        (3) That a person employed full time by a business to act as such a consultant is exempt from the requirements of certification:

            (I) If he is certified by the federal Occupational Safety and Health Administration to manage such waste, materials or substances; and

            (II) While acting in the course of that full-time employment.

    (b) Regulations of the commission may:

        (1) Provide for the licensing and other necessary regulation of generators, including shippers, brokers and carriers, both intrastate and interstate, who cause that waste to be transported into or through Nevada or for disposal in Nevada;

        (2) Require that the person responsible for a spill, leak or accident involving hazardous waste, hazardous material or a regulated substance, obtain advice on the proper handling of the spill, leak or accident from a consultant certified under the regulations adopted pursuant to [subsection 1;] paragraph (a); and

        (3) Establish standards relating to the education, experience, performance and financial responsibility required for the certification of consultants.

    2.  The regulations may include provisions for:

    (a) Fees to pay the cost of inspection, certification and other regulation[;] , excluding any activities conducted pursuant to NRS 459.708 to 459.725, inclusive, and sections 2 to 17, inclusive, of this act; and

    (b) Administrative penalties of not more than $2,500 per violation or $10,000 per shipment for violations by persons licensed by the department, and the criminal prosecution of violations of its regulations by persons who are not licensed by the department.

    3.  Designated employees of the department and the Nevada highway patrol division shall enforce the regulations of the commission relating to the transport and handling of hazardous waste, as they affect the safety of drivers and vehicles and the leakage or spill of that waste from packages.

    Sec. 22.  NRS 459.700 is hereby amended to read as follows:

    459.700 As used in NRS 459.700 to 459.780, inclusive, and sections 2 to 18, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 459.701 to 459.7028, inclusive, and sections 2 to 6, inclusive, of this act have the meanings ascribed to them in those sections.

    Sec. 23.  NRS 459.7024 is hereby amended to read as follows:

    459.7024 “Hazardous material” means any substance or combination of substances, including [solids, semisolids, liquids or contained gases, which:

    1.  Is identified as hazardous by the regulating agency as a result of studies undertaken to identify hazardous materials or wastes; and

    2.  Because of its quantity or concentration or its physical, chemical, radioactive or infectious characteristics may:

    (a) Cause or significantly contribute to an increase in mortality or serious irreversible or incapacitating illness; or

    (b) Pose a substantial hazard or potential hazard to human health, public safety or the environment when it is given improper treatment, storage, transportation, disposal or other management,

including toxins, corrosives, flammable materials, irritants, strong sensitizers and materials which generate pressure by decomposition, heat or otherwise.] any hazardous material, hazardous waste, hazardous substance or marine pollutant:

    1.  Of a type and amount for which a vehicle transporting the substance must be placarded pursuant to 49 C.F.R. Part 172;

    2.  Of a type and amount for which a uniform hazardous waste manifest is required pursuant to 40 C.F.R. Part 262; or

    3.  Which is transported in bulk packaging, as defined in 49 C.F.R. § 171.8.

    Sec. 24.  NRS 459.708 is hereby amended to read as follows:

    459.708 1.  A common, contract or private motor carrier of property who is transporting radioactive waste shall reject any package containing the waste which is tendered to him for transport in this state if the package:

    (a) Is leaking or spilling its contents;

    (b) Does not bear a [required shipping label;] :

        (1) Mark required pursuant to 49 C.F.R. Part 172, Subpart D;

        (2) Label required pursuant to 49 C.F.R. Part 172, Subpart E; or

        (3) Placard required pursuant to 49 C.F.R. Part 172, Subpart F; or

    (c) Is not accompanied by a [bill of lading or other shipping document in a form prescribed by the regulations of the state board of health.] :

        (1) Shipping paper required pursuant to 49 C.F.R. Part 172, Subpart C; or

        (2) Manifest required pursuant to 10 C.F.R. Part 20, Appendix G.

    2.  A carrier who accepts radioactive waste for transport in this state is liable for any package in his custody which leaks or spills its contents, does not bear the required [shipping] mark, label or placard, or is not accompanied by the required shipping [documents,] paper or manifest, unless, in the case of a leak or spill of the waste and by way of affirmative defense, the carrier proves that he did not and could not know of the leak when he accepted the package for transport.

    Sec. 25.  NRS 459.725 is hereby amended to read as follows:

    459.725 1.  The director is responsible for administering the provisions of NRS [459.705] 459.708 to 459.725, inclusive, and sections 2 to 17, inclusive, of this act and , subject to the limitations contained in those provisions, may adopt such regulations as he deems necessary for that purpose. The regulations adopted pursuant to this section must be consistent with any applicable statutes and regulations of the Federal Government.

    2.  The director shall adopt regulations:

    (a) For the security of the repository for information concerning hazardous materials in Nevada so that it is adequately protected from fire, theft, loss, destruction, other hazards and unauthorized access.

    (b) Prescribing the manner in which information concerning hazardous materials is submitted to the division by state and local governmental agencies.

    (c) Providing for the imposition of fees to pay the cost of:

        (1) Any registration and permitting required to carry out the uniform program; and

        (2) Any other regulation pursuant to the provisions of NRS 459.708 to 459.725, inclusive, and sections 2 to 17, inclusive, of this act.

Money received by the department from the fees imposed pursuant to this paragraph must be deposited with the state treasurer for credit to the state highway fund and used only to carry out the provisions of NRS 459.708 to 459.725, inclusive, and sections 2 to 17, inclusive, of this act.

    3.  The director, on behalf of this state, may enter into any agreements with:

    (a) The Federal Government;

    (b) Other states; and

    (c) A national repository established to assist in the administration of the uniform program,

as are appropriate for the administration of the uniform program.

    Sec. 26.  NRS 459.735 is hereby amended to read as follows:

    459.735 1.  The contingency account for hazardous materials is hereby created in the state general fund.

    2.  The commission shall administer the contingency account for hazardous materials, and the money in the account may be expended only for:

    (a) Carrying out the provisions of NRS 459.735 to 459.773, inclusive;

    (b) Carrying out the provisions of Public Law 99‑499 and Title I of Public Law 93-633;

    (c) Maintaining and supporting the operations of the commission and local emergency planning committees;

    (d) Training and equipping state and local personnel to respond to accidents and incidents involving hazardous materials; and

    (e) [Operation] The operation of training programs and a training center for handling emergencies relating to hazardous materials and related fires pursuant to NRS 477.045.

    3.  All money received by this state as a result of Public Law 99-499 or Title I of Public Law 93-633 must be deposited with the state treasurer to the credit of the contingency account for hazardous materials. In addition, all money received by the commission from any source must be deposited with the state treasurer to the credit of the contingency account for hazardous materials. The state controller shall transfer from the contingency account to the operating account of the state fire marshal such money collected pursuant to chapter 477 of NRS as is authorized for expenditure in the budget of the state fire marshal for use pursuant to paragraph (e) of subsection 2.

    4.  Upon the presentation of budgets in the manner required by law, money to support the operation of the commission pursuant to this chapter, other than its provision of grants, must be provided by direct legislative appropriation from the state highway fund to the contingency account for hazardous materials.

    5.  The interest and income earned on the money in the contingency account[,] for hazardous materials, after deducting any applicable charges, must be credited to the account.

    [4.] 6. All claims against the contingency account for hazardous materials must be paid as other claims against the state are paid.

    Sec. 27.  NRS 459.775 is hereby amended to read as follows:

    459.775 Any person who:

    1.  Transports a hazardous material in a motor vehicle without [a valid permit;] the permit required pursuant to section 8 of this act;

    2.  Transports a hazardous material in a motor vehicle that has not been inspected pursuant to [the] any regulations of the department[;] requiring an inspection;

    3.  Fails to carry the permit required pursuant to section 8 of this act or a copy of the permit in the driver’s compartment of the motor vehicle if required to do so by a regulation of the department;

    4.  Transports a hazardous material in a motor vehicle under [an expired permit;] a permit required pursuant to section 8 of this act which has expired;

    5.  Violates any of the terms or conditions of a permit [issued by the division;] required pursuant to section 8 of this act; or

    6.  Fails to pay when due any fee established pursuant to NRS 459.744,

is guilty of a misdemeanor.

    Sec. 28.  NRS 459.780 is hereby amended to read as follows:

    459.780 Any person who:

    1.  Allows the use of a permit [or identifying device issued by the division] required pursuant to section 8 of this act by a person not entitled thereto;

    2.  Uses a permit [or identifying device] required pursuant to section 8 of this act to which he is not entitled;

    3.  Alters, forges or counterfeits a permit [or identifying device issued by the division;] required pursuant to section 8 of this act;

    4.  Uses a permit [or identifying device] required pursuant to section 8 of this act which has been altered, forged or counterfeited;

    5.  Submits false information on an application or other form used to obtain a permit [to transport hazardous materials in a motor vehicle;] required pursuant to section 8 of this act;

    6.  Transports a hazardous material in a motor vehicle under a permit required pursuant to section 8 of this act which has been suspended or revoked; or

    7.  Transports a hazardous material in a motor vehicle which failed to pass [the required] any inspection for safety[,] required by a regulation of the department,

is guilty of a gross misdemeanor.

    Sec. 29.  NRS 459.790 is hereby amended to read as follows:

    459.790 As used in NRS 459.790 to 459.796, inclusive, unless the context otherwise requires, “hazardous material” has the meaning ascribed to it in NRS 459.7024, and includes [the materials so identified and listed in regulations adopted by the director of the department of motor vehicles and public safety pursuant to NRS 459.710 and] any other substance which is regulated pursuant to this chapter.

    Sec. 30.  NRS 459.705, 459.707, 459.710, 459.713, 459.720 and 459.730 are hereby repealed.

    Sec. 31.  This act becomes effective upon passage and approval.

LEADLINES OF REPEALED SECTIONS

    459.705 Permit and inspection required to transport certain hazardous materials in motor vehicle; regulations; application to transport radioactive waste.

    459.707 Permit to transport radioactive waste: Revocation; notification to department; complaint filed with Surface Transportation Board.

    459.710 Regulations; imposition and disposition of fees; issuance of identifying device.

    459.713 Limitations on local ordinances and regulations.

    459.720 Reports of designated accidents or incidents involving hazardous material; penalty.

    459.730 Division to be notified of transportation of controlled quantities of radioactive material or high-level radioactive waste; confidentiality of information.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to hazardous materials; revising the requirements for the transportation of hazardous materials by motor carriers; revising the authority of the department of motor vehicles and public safety to administer and enforce those requirements; providing for the imposition of an assessment upon certain motor carriers; revising the requirements for the reporting of accidents and incidents involving a hazardous material; authorizing the imposition of civil penalties for certain violations; revising the definition of a hazardous material for certain purposes; prohibiting the political subdivisions of this state from regulating the transportation of hazardous materials; making various changes regarding the amount and disposition of certain fees for permits and other regulation; revising the method for funding the state emergency response commission; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes to provisions governing handling of hazardous materials. (BDR 40‑746)”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senator Rhoads.

    Amendment adopted.

    Senator Rhoads moved that Senate Bill No. 167 be re-referred to the Committee on Finance upon return from reprint.

    Remarks by Senator Rhoads.

    Motion carried.

    Bill ordered reprinted, engrossed and to the Committee on Finance.

    Senate Bill No. 174.

    Bill read second time.

    The following amendment was proposed by the Committee on Transportation:

    Amendment No. 583.

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

    “Section 1.  There is hereby appropriated from the state general fund to Clark County the sum of $150,000 for the erection of directional signs on West Desert Inn Road.”.

    Amend section 1, page 1, by deleting lines 3 and 4 and inserting: “directional signs to be erected to clearly mark the openings or crossing places on West Desert Inn”.

    Amend sec. 2, page 1, by deleting lines 10 through 12 and inserting:

    “Sec. 3.  Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after the signage is completed or on July 1, 2000, whichever is earlier, and reverts to the state general fund as soon as all payments of money committed have been made.”.

    Amend the title of the bill to read as follows:

    “AN ACT making an appropriation to Clark County for the erection of directional signs to provide for certain U-turns on West Desert Inn Road; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes appropriation to Clark County for directional signs to provide for certain U-turns on West Desert Inn Road. (BDR S‑158)”.

    Senator O’Donnell moved the adoption of the amendment.

    Remarks by Senator O’Donnell.

    Amendment adopted.

    Senator O’Donnell moved that Senate Bill No. 174 be re-referred to the Committee on Finance upon return from reprint.

    Remarks by Senator O’Donnell.

    Motion carried.

    Bill ordered reprinted, engrossed and to the Committee on Finance.

    Senate Bill No. 178.

    Bill read second time.

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

    Amendment No. 673.

    Amend the bill as a whole by deleting sections 1 through 5 and renumbering sec. 6 as section 1.

    Amend sec. 6, page 2, line 18, by deleting “and” and inserting “[and] or”.

    Amend sec. 6, page 2, line 19, by deleting “and” and inserting “[and] or”.

    Amend the bill as a whole by deleting sec. 7 and renumbering sec. 8 as sec. 2.

    Amend sec. 8, page 3, by deleting line 6 and inserting: “handler or security consultant”.

    Amend sec. 8, page 3, between lines 32 and 33, by inserting:

    “13.  To a person who for consideration verifies or attempts to verify for an employer the information included in an application for employment.

    14.  To a person who for consideration verifies or attempts to verify for a landlord or property manager the information included in an application for a tenancy.

    15.  To a security consultant who inspects a site or interviews witnesses or other persons in this state to provide advice concerning future litigation or to prepare his testimony as an expert witness in a legal proceeding or deposition.”.

    Amend the bill as a whole by renumbering sections 9 and 10 as sections 5 and 6 and adding new sections designated sections 3 and 4, following sec. 8, to read as follows:

    “Sec. 3.  NRS 648.020 is hereby amended to read as follows:

    648.020 1.  The private investigator’s licensing board, consisting of [the attorney general or his deputy and four] five members appointed by the governor, is hereby created.

    2.  The governor shall appoint:

    (a) One member who is a private investigator.

    (b) [One member who is a private patrolman.] Two members who are private patrolmen.

    (c) One member who is a polygraphic examiner.

    (d) One member who is a representative of the general public.

    3.  Three members of the board must be residents of a county whose population is 400,000 or more, and two members must be residents of a county whose population is less than 400,000.

    4.  The board shall elect a chairman [of the board is the attorney general or a deputy attorney general designated by the attorney general to act in that capacity.

    4.] from among its members.

    5. Each member of the board[, except the chairman,] is entitled to receive:

    (a) A salary of not more than $80, as fixed by the board, for each day or portion of a day during which he attends a meeting of the board; and

    (b) A per diem allowance and travel expenses at a rate fixed by the board, while engaged in the business of the board. The rate must not exceed the rate provided for state officers and employees generally.

    [5.] 6. While engaged in the business of the board, each employee of the board is entitled to receive a per diem allowance and travel expenses at a rate fixed by the board. The rate must not exceed the rate provided for state officers and employees generally.

    [6.] 7. The member who is a representative of the general public shall not participate in preparing, conducting or grading any examination required by the board.

    Sec. 4.  NRS 648.025 is hereby amended to read as follows:

    648.025 1.  The board may:

    [1.] (a) Appoint an executive director who:

    [(a)] (1) Is not in the classified or unclassified service of the state; and

    [(b)] (2) Shall perform such duties as the board may prescribe; and

    [2.] (b) Employ investigators and clerical personnel necessary to carry out the provisions of this chapter.

    2.  The board shall determine the compensation, benefits and other terms and conditions of employment of the executive director.”.

    Amend sec. 9, page 3, lines 37 and 38, by deleting: “employment screener, tenant screener”.

    Amend sec. 10, page 5, by deleting lines 4 through 9.

    Amend sec. 10, page 5, line 10, by deleting “(i)” and inserting “(g)”.

    Amend sec. 10, page 5, line 21, by deleting “(j)” and inserting “(h)”.

    Amend sec. 10, page 5, line 22, by deleting “(i);” and inserting “(g);”.

    Amend sec. 10, page 5, line 35, by deleting “(k)” and inserting “(i)”.

    Amend the bill as a whole by deleting sections 11 and 12.

    Amend the title of the bill to read as follows:

    “AN ACT relating to professions; revising the membership of the private investigator’s licensing board; providing an exemption from the licensing requirements of the board for certain persons who verify information included in applications for tenancies or employment; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Revises provisions relating to private investigator’s licensing board. (BDR 54‑313)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 196.

    Bill read second time.

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

    Amendment No. 649.

    Amend section 1, page 1, line 2, by deleting “9,” and inserting “6,”.

    Amend the bill as a whole by deleting sections 2 through 6, renumbering sec. 7 as sec. 5 and adding new sections designated sections 2 through 4, following section 1, to read as follows:

    “Sec. 2.  “Office” means the office of consumer health assistance.

    Sec. 3.  1.  The office of consumer health assistance is hereby created within the division. The commissioner shall appoint such personnel as are necessary to perform the duties of the office, including, without limitation, providers of health care. The personnel so appointed:

    (a) Must be qualified by training and experience to perform the duties and functions of the office; and

    (b) Are in the classified service of the state.

    2.  As used in this section, “provider of health care” has the meaning ascribed to it in NRS 629.031.

    Sec. 4.  1.  The office shall report annually to the commissioner concerning the information collected and maintained pursuant to paragraph (g) of subsection 1 of NRS 679B.550. The information must be reported at the time and in the form and manner required by the commissioner.

    2.  On or before February 1 of each year, the commissioner shall submit a written report to the director of the legislative counsel bureau for transmittal to the appropriate legislative committees. The report must include, without limitation:

    (a) A statement of the number and geographic origin of the written and telephonic inquiries received by the office and the issues to which those inquiries related;

    (b) A statement of the type of assistance provided, including, without limitation, the number of referrals made and the agencies, departments and other entities to which those referrals were made; and

    (c) The disposition of all inquiries and complaints received by the office.”.

    Amend sec. 7, page 2, by deleting line 35 and inserting: “commissioner, the office shall refer a complaint or the results of an investigation conducted pursuant to subsection 2 of NRS 679B.550”.

    Amend sec. 7, page 2, by deleting lines 37 and 38 and inserting: “and regulations. If, pursuant to a complaint received by the office or the results of an investigation conducted pursuant to subsection 2 of NRS 679B.550, the office has reasonable cause to believe that fraud was or is being committed, the”.

    Amend sec. 7, page 2, line 39, by deleting “ombudsman” and inserting “office”.

    Amend sec. 7, page 3, by deleting lines 1 through 8 and inserting:

    “2.  The office shall provide the commissioner with any information he requests that is within the scope of the duties of the office pursuant to sections 3 to 6, inclusive, of this act.”.

    Amend the bill as a whole by deleting sec. 8 and renumbering sec. 9 as sec. 6.

    Amend sec. 9, page 3, line 28, by deleting: “2 to 9,” and inserting: “3 to 6,”.

    Amend the bill as a whole by deleting sec. 10 and adding new sections designated sections 7 through 9, following sec. 9, to read as follows:

    “Sec. 7.  NRS 679B.510 is hereby amended to read as follows:

    679B.510 As used in NRS 679B.510 to 679B.560, inclusive, and sections 2 to 6, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 679B.520, 679B.530 and 679B.540 and section 2 of this act have the meanings ascribed to them in those sections.

    Sec. 8.  NRS 679B.550 is hereby amended to read as follows:

    679B.550 1.  The division , through the office of consumer health assistance, shall:

    [1.] (a) Establish a toll-free telephone service for receiving inquiries and complaints from consumers of health care in this state concerning health care plans;

    [2.] (b) Provide answers to written and telephonic inquiries of consumers of health care concerning health care plans, or refer the consumers to the appropriate agency, department or other entity that is responsible for addressing the specific type of inquiry;

    [3.] (c) Refer consumers of health care to the appropriate agency, department or other entity that is responsible for addressing the specific type of complaint of the consumer;

    [4.] (d) Provide counseling and assistance to consumers of health care concerning health care plans;

    [5. Educate]

    (e) Provide education to consumers of health care concerning health care plans in this state[; and

    6.] , including, without limitation:

        (1) Explaining:

            (I) The terms of health care plans;

            (II) The rights and responsibilities of consumers of health care relating to health care plans, including, without limitation, any complaint, grievance or appeal procedures; and

            (III) The fundamentals of advocating their own cases;

        (2) Preparing and obtaining educational materials relating to health care plans for distribution to consumers of health care; and

        (3) Offering other educational activities relating to health care plans;

    (f) Maintain and make available, upon request, to the general public, governmental agencies or the legislature, copies of current federal and state statutes and regulations relating to health care;

    (g) Adopt and maintain a system for the collection and maintenance of information relating to the written and telephonic inquiries received by the office pursuant to paragraphs (a) and (b); and

    (h) Take such actions as are necessary to ensure public awareness of the existence and purpose of the services provided by the division , through the office of consumer health assistance, pursuant to this section.

    2.  The division, through the office of consumer health assistance, may:

    (a) Obtain such information from consumers of health care as is necessary to carry out the duties of the office; and

    (b) Investigate and attempt to resolve complaints made by or on behalf of consumers of health care.

    Sec. 9.  1.  This section and sections 1, 2, 3 and 5 to 8, inclusive, of this act become effective on July 1, 1999.

    2.  Section 4 of this act becomes effective on January 1, 2000.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to insurance; creating the office of consumer health assistance within the division of insurance of the department of business and industry; defining the duties of the office; requiring the commissioner of insurance to report to the legislature; requiring the division to adopt necessary regulations; and providing other matters properly relating thereto.”.

    Amend the summary of the bill, first line, by deleting: “ombudsman for insurance” and inserting: “consumer health assistance”.

    Amend the bill as a whole by removing the following assemblywoman as primary joint sponsor:

Assemblywoman Buckley.

    Senator Schneider moved the adoption of the amendment.

    Remarks by Senator Schneider.

    Amendment adopted.

    Senator Schneider moved that Senate Bill No. 196 be re-referred to the Committee on Finance upon return from reprint.

    Remarks by Senator Schneider.

    Motion carried.

    Bill ordered reprinted, engrossed and to the Committee on Finance.

    Senate Bill No. 224.

    Bill read second time.

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

    Amendment No. 634.

    Amend section 1, page 2, line 11, by deleting “All” and inserting: “[All] Except as otherwise provided in subsection 6, all”.

    Amend section 1, page 2, by deleting lines 17 and 18 and inserting: “subsection. The annual amount so assessed to each reinsurer that has the authority to assume only reinsurance must not exceed $500 . [per authorized insurer.] Except as otherwise provided in this subsection, the annual amount assessed to each insurer:”.

    Amend section 1, page 2, by deleting lines 35 and 36 and inserting:

    “6.  The provisions of this section do not apply to an insurer who provides only worker’s compensation insurance and pays the assessment provided in NRS 232.680.

    7.  As used in this section, “reinsurer” has the meaning ascribed to it in NRS 681A.370.”.

    Amend the bill as a whole by deleting sec. 3 and renumbering sec. 4 as sec. 3.

    Amend the title of the bill, by deleting the fourth and fifth lines and inserting: “violations and fraudulent acts of insurers; and providing other matters properly relating”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 225.

    Bill read second time.

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

    Amendment No. 295.

    Amend sec. 3, page 2, line 2, by deleting “24 ” and inserting “25”.

    Amend sec. 6, page 2, line 28, by deleting “24 ” and inserting “25”.

    Amend sec. 9, page 4, line 9, after “An” by inserting “individual, an”.

    Amend sec. 9, page 4, line 15, after “a” by inserting “suspected ”.

    Amend sec. 11, page 4, line 36, by deleting “24 ” and inserting “25”.

    Amend sec. 13, page 5, by deleting line 33 and inserting: “statement conceals or omits facts, or contains false or misleading information”.

    Amend sec. 13, page 5, by deleting line 40 and inserting: “conceals or omits facts, or contains false or misleading information concerning any”.

    Amend sec. 13, page 6, lines 4 and 5, by deleting: “contains false, incomplete” and inserting: “conceals or omits facts, or contains false”.

    Amend sec. 18, page 8, line 3, by deleting “24 ” and inserting “25”.

    Amend sec. 24, page 11, by deleting lines 6 and 7 and inserting:

    “Sec. 24.  Chapter 228 of NRS is hereby amended by adding thereto the provisions set forth as sections 25 and 26 of this act.”.

    Amend sec. 24, page 11, by deleting line 8 and inserting:

    “Sec. 25.  1.  The attorney general has primary jurisdiction to conduct criminal ”.

    Amend the bill as a whole by renumbering sections 25 and 26 as sections 27 and 28 and adding a new section designated sec. 26, following sec. 24, to read as follows:

    “Sec. 26.  1.  Except as otherwise provided in this section, the attorney general may temporarily reassign any personnel, or reallocate any other resource, among:

    (a) The bureau of consumer protection established pursuant to NRS 228.310;

    (b) The Medicaid fraud control unit established pursuant to NRS 228.410;

    (c) The fraud control unit for industrial insurance established pursuant to NRS 228.420;

    (d) The fraud control unit for insurance established pursuant to section 25 of this act; and

    (e) The program to coordinate activities and information in this state concerning missing or exploited children established pursuant to NRS 432.170.

    2.  The attorney general shall not reassign any personnel or reallocate any other resource pursuant to this section if the reassignment or reallocation:

    (a) Violates any provision of federal law or any agreement between the Federal Government, or any agency thereof, and this state or any agency or political subdivision thereof; or

    (b) Would result in the loss of federal money or any other benefit provided by the Federal Government or any agency thereof.”.

    Amend sec. 25, page 13, line 35, by deleting “24 ” and inserting “25”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to insurance; making various changes to the provisions governing the investigation and prosecution of insurance fraud by the commissioner of insurance and the attorney general; providing that an insurer and certain other organizations shall be deemed to be victims in cases involving insurance fraud for purposes of restitution; requiring the establishment of a fraud control unit for insurance within the office of the attorney general; defining the duties of the fraud control unit; authorizing the fraud control unit to issue subpoenas to obtain documents relating to an investigation of insurance fraud; authorizing the attorney general to reassign personnel and reallocate other resources temporarily among various entities within his office; and providing other matters properly relating thereto.”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 318.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 438.

    Amend the bill as a whole by deleting sections 1 through 11 and adding new sections designated sections 1 through 3, following the enacting clause, to read as follows:

    “Section 1. NRS 375.010 is hereby amended to read as follows:

    375.010 The following terms, wherever used or referred to in this chapter, have the following meaning unless a different meaning clearly appears in the context:

    1.  “Buyer” means a person or other legal entity acquiring title to any estate or present interest in real property in this state by deed, including, without limitation, a grantee or other transferee of real property.

    2. “Deed” means every instrument in writing, except a last will and testament, whatever its form, and by whatever name it is known in law, by which title to any estate or present interest in real property, including a water right, permit, certificate or application, is conveyed or transferred to, and vested in, another person, but does not include a lease for any term of years or an easement.

    [2.] 3. “Escrow” means the delivery of a deed by the seller into the hands of a third person, including an attorney, title company, real estate broker or other person engaged in the business of administering escrows for compensation, to be held by the third person until the happening of a contingency or performance of a condition, and then to be delivered by the third person to the buyer.

    4.  “Seller” means a person or other legal entity transferring title to any estate or present interest in real property in this state by deed, including, without limitation, a grantor or other transferor of real property.

    5. “Value” means:

    (a) In the case of any deed not a gift, the amount of the full, actual consideration paid or to be paid for the real property, excluding the amount of any lien or liens assumed.

    (b) In the case of a gift, or any deed with nominal consideration or without stated consideration, the estimated price the real property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer, both conversant with the property and with prevailing general price levels.

    Sec. 2.  NRS 375.030 is hereby amended to read as follows:

    375.030 1.  If any deed evidencing a transfer of title subject to the tax imposed by NRS 375.020 and, if applicable, NRS 375.025, is offered for recordation, the county recorder shall compute the amount of the tax due and shall collect that amount before acceptance of the deed for recordation.

    2.  The buyer and seller are jointly and severally liable for the payment of the taxes imposed by NRS 375.020 and 375.025 and any penalties and interest imposed pursuant to subsection 3. The escrow holder is not liable for the payment of the taxes imposed by NRS 375.020 and 375.025 or any penalties or interest imposed pursuant to subsection 3.

    3.  If after recordation of the deed, the county recorder disallows an exemption that was claimed at the time the deed was recorded or through audit or otherwise determines that an additional amount of tax is due, the county recorder shall promptly notify the buyer or seller, or both, of the additional amount of tax due. In addition to the additional amount determined to be due, the county recorder shall impose a penalty of 10 percent of the additional amount due in addition to interest at the rate of 1 1/2 percent per month, or portion thereof, of the additional amount due calculated from the date of the original recordation of the deed on which the additional amount is due through the date on which the additional amount due, penalty and interest are paid to the county recorder.

    4.  This section does not prohibit a buyer and seller from agreeing by contract or otherwise that one party or the other will be responsible for the payment of the tax due pursuant to this chapter, but such an agreement does not affect the ability of the county recorder to collect the tax and any penalties and interest from either the buyer or the seller.

    Sec. 3.  This act becomes effective upon passage and approval for the purpose of adopting regulations by the department of taxation that are necessary to carry out the provisions of this act and on October 1, 1999, for all other purposes.”.

    Amend the title of the bill, first line, by deleting: “method of collecting” and inserting: “provisions governing the collection of”.

    Senator McGinness moved the adoption of the amendment.

    Remarks by Senator McGinness.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 362.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 245.

    Amend section 1, page 1, line 2, by deleting: “2 and 3” and inserting: “2, 3 and 3.5”.

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

    “Sec. 3.5.  The Nevada tax commission shall adopt regulations to carry out the provisions of sections 7 and 10 of this act.”.

    Amend sec. 4, page 2, by deleting lines 34 and 35 and inserting: “         4.] any decision of the department that is:

    (a) Appealed to the commission by a taxpayer pursuant to this section; or

    (b) Reviewed by the commission pursuant to this section.”.

    Amend sec. 4, page 2, by deleting lines 41 and 42 and inserting:

    “(a) Notice to be given to each county of any decision upon an appeal to the commission that”.

    Amend sec. 4, page 3, by deleting line 12 and inserting: “accompanied by the names of the parties and the amount on appeal, if any, to”.

    Amend sec. 5, page 5, line 16, by deleting “section.” and inserting: “section or any applicable regulations.”.

    Amend sec. 5, page 5, line 18, after “Title” by inserting: “or any applicable regulations.”.

    Amend sec. 7, page 5, by deleting lines 30 through 35 and inserting: “1.  The executive director or his designee may waive taxes, penalties and interest owed by the taxpayer in an amount not to exceed $5,000; and

    2.  The Nevada tax commission may waive any such taxes, penalties and interest in an amount greater than $5,000.] or on an opinion of the attorney general:

    (a) The department may waive any tax, penalty and interest owed by the taxpayer if the taxpayer meets the criteria adopted by regulation by the Nevada tax commission pursuant to section 3.5 of this act; and

    (b) If a waiver is granted pursuant to paragraph (a), the department shall prepare and maintain on file a statement which contains:

        (1) The reason for the waiver;

        (2) The amount of the tax, penalty and interest owed by the taxpayer;

        (3) The amount of the tax, penalty and interest waived by the department; and

        (4) The facts and circumstances which led to the waiver.”.

    Amend sec. 8, page 6, by deleting lines 10 through 20 and inserting: “the interest on underpayments.] any other reporting period within the audit period.

    2.  If it is determined that there is a net deficiency, any penalty imposed must be calculated based on the amount of the net deficiency.

    3.  If it is determined that:

    (a) There is a net deficiency for a reporting period after offsetting any overpayment from any previous reporting period, any interest imposed on the net deficiency must be calculated before determining whether there is an overpayment or net deficiency for the next reporting period within the audit period.

    (b) There is a net overpayment for a reporting period after offsetting any net deficiency from any previous reporting period, any interest to which the taxpayer is entitled must be calculated before determining whether there is an overpayment or net deficiency for the next reporting period within the audit period.

    4.  The provisions of this section do not apply if the taxpayer has submitted a report that shows taxes due and has not remitted the taxes due in a timely manner.

    5.  As used in this section, “reporting period” includes, without limitation, a calendar month, a calendar quarter, a calendar year and any other period for reporting.”.

    Amend sec. 10, page 7, line 2, by deleting “department” and inserting: “Nevada tax commission”.

    Amend sec. 34, page 21, by deleting lines 8 through 11 and inserting: “claim disallowed and file an appeal with a hearing officer within 45 days after the last day of the 6‑month period. If the claimant is aggrieved by the decision of the hearing officer on appeal, he may, pursuant to the provisions of NRS 360.245, appeal the decision to the Nevada tax commission. If the claimant is aggrieved by the decision of the commission on appeal, he may, within 45 days after the decision is rendered, bring an action against”.

    Amend sec. 42, page 25, by deleting lines 18 through 21 and inserting: “claim disallowed and file an appeal with a hearing officer within 45 days after the last day of the 6‑month period. If the claimant is aggrieved by the decision of the hearing officer on appeal, he may, pursuant to the provisions of NRS 360.245, appeal the decision to the Nevada tax commission. If the claimant is aggrieved by the decision of the commission on appeal, he may, within 45 days after the decision is rendered, bring an action against”.

    Amend sec. 54, page 29, line 18, by deleting: “and 11 to 53,” and inserting: “11 to 30, inclusive, 32 to 37, inclusive, and 39 to 53,”.

    Amend sec. 54, page 29, after line 21, by inserting:

    “3.  Sections 31 and 38 of this act become effective on July 1, 2000.”.

    Amend the title of the bill, sixth line, after “commission;” by inserting: “requiring the department to adopt certain regulations;”.

    Senator McGinness moved the adoption of the amendment.

    Remarks by Senator McGinness.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 432.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 405.

    Amend the bill as a whole by deleting sections 1 through 9 and adding new sections designated sections 1 through 4, following the enacting clause, to read as follows:

    “Section 1.  1.  The Committee to Study Air Quality Control Programs in Clark County is hereby created. The Committee consists of:

    (a) One member appointed by the Board of County Commissioners of Clark County, who shall serve as Chairman of the Committee;

    (b) One member appointed by the Board of County Commissioners of Clark County to represent the fuel industry;

    (c) Two members appointed by the Board of County Commissioners of Clark County to represent environmental concerns;

    (d) One member appointed by the Regional Transportation Commission of Clark County;

    (e) One member appointed by the Board of Trustees of the Clark County School District;

    (f) One member appointed by the Board of Health of Clark County;

    (g) One member appointed by the Nevada League of Cities;

    (h) One member appointed by the Las Vegas Chapter of the Associated General Contractors of America;

    (i) One member appointed by the Southern Nevada Chapter of the Associated Builders and Contractors;

    (j) One member appointed by the Nevada Motor Transport Association;

    (k) One member appointed by the Nevada Manufacturers Association;

    (l) The Director of the Department of Motor Vehicles and Public Safety or his designee;

    (m) The Director of the Nevada Department of Transportation or his designee; and

    (n) The Administrator of the Division of Environmental Protection of the State Department of Conservation and Natural Resources or his designee.

    2.  A member of the Committee may be compensated by the Committee at the rate of $40 per meeting, or may choose not to be compensated.

    3.  The Committee shall:

    (a) Contract with a qualified, independent consultant to conduct a study of the air quality in Clark County and negotiate the terms of the contract;

    (b) Establish the scope of the study; and

    (c) Ensure that the consultant is adhering to the scope of the study and will complete the study on time by requiring progress reports from the consultant and establishing a schedule for completion of the study.

    4.  The Board of County Commissioners of Clark County shall, within the limits of available resources, provide administrative support to the Committee and assist in the fiscal management of the Committee.

    Sec. 2.  1.  The study of the air quality in Clark County conducted by the consultant pursuant to section 1 of this act must include, without limitation, an analysis of and recommendations concerning:

    (a) Existing programs related to air quality in Clark County and methods for improving the efficiency of such programs;

    (b) Programs that may be required in the future to meet standards pertaining to particulates, carbon monoxide, ozone and regional haze and visibility, including, without limitation, programs for the inspection of heavy-duty motor vehicles that are powered by diesel fuel, programs for the inspection and maintenance of light-duty motor vehicles, programs to manage urban haze and visibility, programs that involve the use of alternative fuels, remote sensing or alternative transportation, and estimates of the potential effectiveness of such programs;

    (c) Current and future funding requirements of programs related to air quality, sources of funding for such programs and methods of determining adequate levels of funding for such programs; and

    (d) The roles of state and local governmental agencies and the private sector in addressing air quality issues in Clark County, including, without limitation, recommendations concerning an institutional structure that will effectively address air quality issues in the Las Vegas Valley.

    2.  The consultant shall consider, when analyzing and making recommendations concerning a program related to air quality in Clark County:

    (a) The cost-effectiveness of the program by comparing it with other programs related to air quality; and

    (b) Whether the program is technologically feasible based on evidence relating to the availability, effectiveness, reliability and safety of any proposed technology that may be used in the program.

    3.  On or before June 30, 2000, the consultant shall submit a written report of the study to the Committee to Study Air Quality Control Programs in Clark County.

    4.  On or before October 15, 2000, the Committee shall review the report submitted pursuant to subsection 3 and submit its findings and recommendations to the Board of County Commissioners of Clark County, the Governor and the Director of the Legislative Counsel Bureau for transmittal to the 71st session of the Nevada Legislature.

    Sec. 3.  1.  There is hereby appropriated from the pollution control account in the state general fund to Clark County the sum of $500,000 to pay for the costs associated with carrying out the provisions of this act.

    2.  The Committee to Study Air Quality Control Programs in Clark County shall determine the manner in which to expend the money appropriated pursuant to subsection 1 and shall distribute at least $100,000 of the appropriation to the Department of Motor Vehicles and Public Safety for use by the Department in its program for the inspection of heavy-duty motor vehicles that are powered by diesel fuel.

    3.  Any remaining balance of the appropriation made by subsection 1 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.

    Sec. 4.  This act becomes effective upon passage and approval.”.

    Amend the bill as a whole by adding a preamble, immediately preceding the enacting clause, to read as follows:

    “Whereas, The legislature finds and declares that a general law cannot be made applicable for the provisions of this act because of the unusual patterns of growth in certain local governments of this state, the need to identify and evaluate the environmental needs of certain counties that have arisen as a result of the growth experienced by those counties and the special conditions experienced in certain counties related to the need to monitor and control air quality; now, therefore,”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to air pollution; establishing the Committee to Study Air Quality Control Programs in Clark County; setting forth the purpose and duties of the Committee; making an appropriation; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Establishes Committee to Study Air Quality Control Programs in Clark County. (BDR S‑54)”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senator Rhoads.

    Amendment adopted.

    Senator Rhoads moved that Senate Bill No. 432 be re-referred to the Committee on Finance upon return from reprint.

    Remarks by Senator Rhoads.

    Motion carried.

    Bill ordered reprinted, engrossed and to the Committee on Finance.

    Senate Bill No. 436.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 521.

    Amend sec. 6, page 1, line 14, by deleting “13” and inserting “9”.

    Amend sec. 6, page 2, line 4, after “membership;” by inserting “and”.

    Amend sec. 6, page 2, by deleting lines 6 through 18 and inserting: “membership.

    3.  The term of each member of the board is coterminous with his term of elected office unless the public entity that appointed him revokes his appointment to the board.”.

    Amend sec. 7, page 2, by deleting lines 36 and 37 and inserting:

    “4.  The affirmative vote of at least two-thirds of the members of the board is necessary to pass an action”.

    Amend sec. 7, page 2, line 40, after “money;” by inserting “or”.

    Amend sec. 7, page 2, by deleting lines 42 and 43 and inserting: “on a public entity.”.

    Amend sec. 7, page 3, by deleting lines 1 through 5.

    Amend sec. 8, page 3, by deleting lines 7 and 8 and inserting: “its membership at the first meeting of each”.

    Amend the title of the bill, first line, by deleting: “in skeleton form”.

    Senator Porter moved the adoption of the amendment.

    Remarks by Senator Porter.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 438.

    Bill read second time.

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

    Amendment No. 667.

    Amend the bill as a whole by deleting sections 1 through 3 and adding new sections designated sections 1 through 29, following the enacting clause, to read as follows:

    “Section 1.  Chapter 703 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

    Sec. 2.  1.  The governor may appoint administrative law judges to preside over contested matters involving the regulation of utilities subject to the jurisdiction of the commission. An administrative law judge appointed by the governor in accordance with this section shall not act as an administrative law judge for any other governmental entity and shall hear cases as assigned by the commission. Such an administrative law judge serves at the pleasure of the governor.

    2.  An administrative law judge may administer oaths, examine witnesses, issue subpoenas and receive evidence, pursuant to rules adopted by the commission.

    Sec. 3.  After hearing a contested matter, an administrative law judge shall prepare and file with the commission an opinion setting forth his recommendations, findings and conclusions. The opinion of the administrative law judge is the proposed decision for the matter and must be made a part of the public record in the proceedings. The proposed decision must be filed with the commission and served on all parties to the action or proceedings not later than 45 days after the conclusion of the hearing. Not later than 30 days after the date on which the proposed decision is filed with the commission, the commission shall approve, modify or reject the proposed decision. The ruling of the commission must be based on the record and the contents of the proposed decision, except that the commission may allow the parties to submit briefs and may hold oral argument on the matter.

    Sec. 4.  NRS 703.320 is hereby amended to read as follows:

    703.320 1.  When, in any matter pending before the commission, a hearing is required by law, or is normally required by the commission, the commission shall give notice of the pendency of the matter to all persons entitled to notice of the hearing. The commission shall by regulation specify:

    (a) The manner of giving notice; and

    (b) Where not specified by law, the persons entitled to notice in each type of proceeding.

    2.  Unless, within 10 days after the date of the notice of pendency, a person entitled to notice of the hearing files with the commission a request that the hearing be held, the commission may dispense with a hearing and act upon the matter pending.

    3.  If a request for a hearing is filed, the commission shall give at least 10 days’ notice of the hearing[.] and assign the matter to an administrative law judge.

    Sec. 5.  NRS 703.330 is hereby amended to read as follows:

    703.330 1.  A complete record must be kept of all hearings , [before the commission,] and all testimony must be taken down by [the] a stenographer appointed by the commission, or, under the direction of any competent person appointed by the commission, reported by sound recording equipment in the manner authorized for reporting testimony in district courts. The testimony reported by [a] the stenographer must be transcribed, and the transcript filed with the record in the matter. The commission may by regulation provide for the transcription or safekeeping of sound recordings. [Cost] The costs of recording and transcribing testimony at any hearing, except those hearings ordered pursuant to NRS 703.310 , must be paid by the applicant. If a complaint is made pursuant to NRS 703.310 by a customer or by a political subdivision of the state or municipal organization, the complainant is not liable for any costs. Otherwise, if there are several applicants or parties to any hearing, the commission may apportion the costs among them in its discretion.

    2.  Whenever any complaint is served upon the commission as provided in NRS 703.373 for the bringing of an action against the commission, before the action is reached for trial, the commission shall file a certified copy of all proceedings and testimony taken with the clerk of the court in which the action is pending.

    3.  A copy of the proceedings and testimony must be furnished to any party, on payment of a reasonable amount, to be fixed by the commission, and the amount must be the same for all parties.

    4.  The provisions of this section do not prohibit the commission or an administrative law judge, as appropriate, from restricting access to the records and transcripts of a hearing pursuant to paragraph (a) of subsection 3 of NRS 703.196.

    Sec. 6.  NRS 703.340 is hereby amended to read as follows:

    703.340 1.  Either party is entitled to an order by the commission or an administrative law judge, as appropriate, for the appearance of witnesses or the production of books, papers and documents containing material testimony.

    2.  Witnesses appearing upon the order of the commission or an administrative law judge, as appropriate, are entitled to the same fees and mileage as witnesses in civil actions in the courts of the state, and the fees and mileage must be paid out of the state treasury in the same manner as other claims against the state are paid. No fees or mileage may be allowed unless the chairman of the commission certifies the correctness of the claim.

    Sec. 7.  NRS 703.350 is hereby amended to read as follows:

    703.350 The commission or an administrative law judge, as appropriate, may require, by order to be served on any person regulated by the commission in the same manner as a subpoena in a civil action, the production at a time and place designated by the commission or administrative law judge of any books, accounts, papers or records kept by the person in any office or place outside this state, or verified copies in lieu thereof[,] if the commission or administrative law judge so directs, so that an examination may be made by or under the direction of the commission or administrative law judge, or [under its direction, or] for use as testimony.

    Sec. 8.  NRS 703.360 is hereby amended to read as follows:

    703.360 1.  If any person ordered to appear before the commission or an administrative law judge as a witness fails to obey the order, the commission or any commissioner , [or] the secretary of the commission or the administrative law judge, as appropriate, may apply to the clerk of the nearest district court for a subpoena commanding the attendance of the witness before the commission[.] or administrative law judge.

    2.  The clerk shall issue the subpoena, and a peace officer shall serve it.

    3.  Disobedience to a subpoena [is a] constitutes contempt of court and must be punished accordingly.

    Sec. 9.  NRS 703.370 is hereby amended to read as follows:

    703.370 1.  The district court for the county in which any investigation or hearing is being conducted by the commission or an administrative law judge pursuant to the provisions of this Title may compel the attendance of witnesses, the giving of testimony , and the production of books and papers as required by any subpoena issued by the commission[.] or administrative law judge.

    2.  If any witness refuses to attend or testify or produce any books or papers required by a subpoena , the commission or administrative law judge may report to the district court for the county in which the investigation or hearing is pending by petition, setting forth:

    (a) That due notice has been given of the time and place of attendance of the witness or the production of the books and papers;

    (b) That the witness has been subpoenaed in the manner prescribed in this chapter; and

    (c) That the witness has failed and refused to attend or produce the books or papers required by subpoena before the commission or administrative law judge in the investigation or hearing named in the subpoena, or has refused to answer questions propounded to him in the course of the investigation or hearing,

and asking an order of the court compelling the witness to attend and testify or produce the books or papers before the commission[.] or administrative law judge.

    3.  The court, upon petition of the commission, shall enter an order directing the witness to appear before the court at a time and place to be fixed by the court in its order, not more than 10 days [from] after the date of the order, and show cause why he has not attended or testified or produced the books or papers before the commission[.] or administrative law judge. A certified copy of the order must be served upon the witness. If it appears to the court that the subpoena was regularly issued by the commission[,] or administrative law judge, the court shall thereupon enter an order that the witness appear before the commission or administrative law judge at the time and place fixed in the order and testify or produce the required books or papers, and upon failure to obey the order , the witness must be dealt with as if in contempt of court.

    Sec. 10.  NRS 703.377 is hereby amended to read as follows:

    703.377 1.  No certificate of public convenience and necessity, permit or license issued in accordance with the terms of NRS 704.005 to 704.751, inclusive, is either a franchise or irrevocable.

    2.  Upon receipt of a written complaint or on its own motion, the commission may, after investigation, and a hearing[,] by an administrative law judge, revoke any certificate, permit or license, but as to a public utility only if the commission has arranged for another public utility to provide the service for which the certificate was granted.

    3.  The proceedings thereafter are governed by the provisions of NRS 703.373 to 703.376, inclusive[.] , and sections 2 and 3 of this act.

    Sec. 11.  Chapter 704 of NRS is hereby amended by adding thereto the provisions set forth as sections 12, 13 and 14 of this act.

    Sec. 12.  A vertically integrated electric utility and its successor electric distribution utility shall act in accordance with existing contract terms relating to obligations for the purchase of power. A vertically integrated electric utility and its successor electric distribution utility seeking to recover costs associated with an obligation for the purchase of power which are documented in the accounting records of the utility and which are allocable to a particular potentially competitive service must:

    1.  Demonstrate that the utility has made reasonable efforts to reduce the cost or increase the value of the obligation, including, without limitation, by:

    (a) Evaluating the costs and benefits of renegotiating the obligation;

    (b) Initiating a good faith attempt to renegotiate the obligation with the provider of the purchased power;

    (c) Responding in good faith to any attempt initiated by the provider of the purchased power to renegotiate the obligation; and

    (d) Exercising all existing contract terms relating to the obligation to mitigate the cost of the obligation;

    2.  If the utility was legally required to incur the obligation by a state or federal agency or authority, provide all information, including actions and statements by the commission, if any, demonstrating that fact;

    3.  If the utility had discretion whether to incur or mitigate the cost, provide all information demonstrating the conduct of the utility with respect to the costs of the obligation, as compared to other utilities with similar obligations; and

    4.  Provide all information indicating the extent to which the rates previously established by the commission have compensated shareholders for the risk of not recovering the costs of the obligations.

    Sec. 13.  1.  Notwithstanding the provisions of subsection 5 of NRS 704.982 to the contrary, the commission shall, for each class of customers of electric service in this state, establish a total rate for electric services that are necessary to provide basic electric service to customers in this state. The rates may not vary from the rates for each class of customers of electric service in this state which are in effect on the effective date of this section, except that the commission may modify the rates to account for the effects of any cases filed with the

commission before October 1, 1999, which involve the use of deferred accounting. The rates established by the commission pursuant to this subsection remain in effect until March 1, 2003.

    2.  Notwithstanding the provisions of subsection 4 of NRS 704.982 to the contrary, during the period that the rates are in effect pursuant to subsection 1, services subject to the rates, including generation services owned by a vertically integrated electric utility which may be subject to divestiture, must be provided by a vertically integrated electric utility or its successor electric distribution utility, which is a provider of last resort.

    3.  If a utility repurchases generation services to meet its obligation pursuant to this section from a generation unit that the utility has divested, the commission, in determining recoverable costs pursuant to NRS 704.983, shall not impute a value to the generation unit other than the sales price of the unit.

    4.  To the extent that the rate established pursuant to subsection 1 for any class of customers does not reflect the costs incurred by a utility to provide the services to that class of customers, the utility may accumulate any shortfall through March 1, 2003. Such a shortfall may be recovered only from the gain, if any, from the sale by the utility of its generation assets.

    5.  During the period that the rates are in effect pursuant to subsection 1, the commission shall not subject an electric distribution utility or its successor electric distribution utility to any review of earnings, the rate base of the utility, or the rate of return of the utility.

    Sec. 14.  1.  At any time after July 1, 2001, a licensed alternative seller may submit to the commission a bid to provide a potentially competitive service that is being provided by an electric distribution utility in accordance with section 13 of this act. The bid must:

    (a) Request to serve at least 10 percent of the market for a specific geographical region of this state;

    (b) Provide that the service will be provided by the alternative seller to more than one class of customers; and

    (c) Provide that there will be a discount of 5 percent off the rate established by the commission pursuant to section 13 of this act.

    2.  Upon the receipt of such a bid, the commission may conduct an auction if the commission determines that it is in the public interest to conduct such an auction. If the commission determines that such an auction is in the public interest, the commission shall conduct the auction as soon as practicable. The commission shall determine the terms and conditions for continued service by the successful bidder at the auction. Any licensed alternative seller or affiliate of an electric distribution utility may submit a bid. Bidding must be done by sealed bid. Each bid by an alternative seller must be not less than 10 percent of the load, as measured in megawatts or megawatt hours, for the geographical region for which the bid is being made.

    3.  The commission shall review the bids. If the successful bidder is an alternative seller or an affiliate of an electric distribution utility other than the electric distribution utility that provided the service before the auction, the successful bidder becomes the provider of the service for the percentage of the load as indicated in its bid. For the percentage of the market that is not awarded to a successful bidder, the affiliate of the electric distribution utility which provided service to the customers before the auction remains the provider of the service, and that service must continue to be provided under the same terms and conditions as existed for the provision of that service by the affiliate of the electric distribution utility immediately before the auction.

    Sec. 15.  NRS 704.110 is hereby amended to read as follows:

    704.110 Except as otherwise provided in NRS 704.075 or as otherwise provided by the commission pursuant to NRS 704.095 or 704.097:

    1.  Whenever there is filed with the commission any schedule stating a new or revised individual or joint rate or charge, or any new or revised individual or joint regulation or practice affecting any rate or charge, or any schedule resulting in a discontinuance, modification or restriction of service, the commission may, upon complaint or upon its own motion without complaint, at once, without answer or formal pleading by the interested utility, investigate or, upon reasonable notice, conduct a hearing concerning the propriety of the rate, charge, classification, regulation, discontinuance, modification, restriction or practice.

    2.  Pending the investigation or hearing and the decision thereon, the commission, upon delivering to the utility affected thereby a statement in writing of its reasons for the suspension, may suspend the operation of the schedule and defer the use of the rate, charge, classification, regulation, discontinuance, modification, restriction or practice, but not for more than 150 days beyond the time when the rate, charge, classification, regulation, discontinuance, modification, restriction or practice would otherwise go into effect.

    3.  Whenever there is filed with the commission any schedule stating an increased individual or joint rate or charge for service or equipment, the public utility shall submit with its application a statement showing the recorded results of revenues, expenses, investments and costs of capital for its most recent 12 months for which data were available when the application was prepared. During any hearing concerning the increased rates or charges determined by the commission to be necessary, the commission shall consider evidence in support of the increased rates or charges based upon actual recorded results of operations for the same 12 months, adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation,certain other operating expenses as approved by the commission and changes in the costs of securities which are known and are measurable with reasonable accuracy at the time of filing and which will become effective within 6 months after the last month of those 12 months, but no new rates or charges may be placed into effect until the changes have been experienced and certified by the utility to the commission. The commission shall also consider evidence supporting expenses for depreciation, calculated on an annual basis, applicable to major components of the public utility’s plant placed into service during the recorded test period or the period for certification as set forth in the application. Adjustments to revenues, operating expenses and costs of securities must be calculated on an annual basis. Within 90 days after the filing with the commission of the certification required in this subsection, or before the expiration of any period of suspension ordered pursuant to subsection 2, whichever time is longer, the commission shall make such order in reference to those rates or charges as is required by this chapter.

    4.  After full investigation or hearing, whether completed before or after the date upon which the rate, charge, classification, regulation, discontinuance, modification, restriction or practice is to go into effect, the commission may make such order in reference to the rate, charge, classification, regulation, discontinuance, modification, restriction or practice as would be proper in a proceeding initiated after the rate, charge, classification, regulation, discontinuance, modification, restriction or practice has become effective.

    5.  [Whenever an application is filed by a public utility for an increase in any rate or charge based upon increased costs in the purchase of fuel or power, and the public utility has elected to use deferred accounting for costs of the purchase of fuel or power in accordance with the commission’s regulations, the commission, by appropriate order after a public hearing, shall allow the public utility to clear the deferred account not more often than every 6 months by refunding any credit balance or recovering any debit balance over a period not to exceed 1 year as determined by the commission. The commission shall not allow a recovery of a debit balance or any portion thereof in an amount which would result in a rate of return in excess of the rate of return most recently granted the public utility.

    6.] Except as otherwise provided in subsection [7,] 6, whenever a general rate application for an increased rate or charge for, or classification, regulation, discontinuance, modification, restriction or practice involving service or equipment has been filed with the commission, a public utility shall not submit another general rate application until all pending general rate applications for increases in rates submitted by that public utility have been decided unless, after application and hearing, the commission determines that a substantial financial emergency would exist if the other application is not permitted to be submitted sooner.

    [7.] 6. A public utility may not file an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale more often than once every 30 days.

    [8.] 7. A utility facility identified in a 3-year plan submitted pursuant to NRS 704.741 and accepted by the commission for acquisition or construction pursuant to NRS 704.751 and the regulations adopted pursuant thereto shall be deemed to be a prudent investment. The utility may recover all just and reasonable costs of planning and constructing such a facility.

    Sec. 15.5.  NRS 704.185 is hereby amended to read as follows:

    704.185 1.  A public utility which purchases [fuel, including] natural gas for resale[, or power] may record upon its books and records all cost increases or decreases in [fuels or purchased power] the natural gas purchased for resale in deferred accounts. Any public utility which utilizes deferred accounting to reflect changes in costs of [fuels and purchased power] natural gas purchased for resale shall include in its annual report to the commission a statement showing the allocated rate of return for each of its operating departments in Nevada which uses deferred accounting.

    2.  If the rate of return for any department using deferred accounting is greater than the rate of return allowed by the commission in the last rate proceeding, the commission shall order the utility which recovered any [deferred fuel and purchased power] costs of natural gas purchased for resale through rates during the reported period to transfer to the next energy adjustment period that portion of such recovered amounts which exceeds the authorized rate of return.

    Sec. 16.  NRS 704.285 is hereby amended to read as follows:

    704.285 1.  The commission, upon its own information or knowledge or upon a complaint by any person, firm, partnership or corporation that any public utility is acting in violation of the provisions of NRS 179.410 to 179.515, inclusive, or [NRS] 200.610 to 200.690, inclusive, or is knowingly allowing another person to violate those provisions, shall proceed without notice to make an investigation of the information or complaint.

    2.  If, after its investigation, the commission determines that there is probable cause to believe that the utility is acting in violation of the provisions of NRS 179.410 to 179.515, inclusive, or [NRS] 200.610 to 200.690, inclusive, or allowing another to act in violation of those provisions, the commission shall forthwith issue a cease and desist order to the utility. The order is permanent unless the utility, within 20 days after receipt of the order, files a written request for a hearing with the commission.

    3.  When a written request for a hearing is filed pursuant to subsection 2, the [commission shall conduct the] hearing must be conducted pursuant to the provisions of NRS 703.320 to 703.370, inclusive[.] , and sections 2 and 3 of this act.

    4.  If, as the result of a hearing, it is determined that the utility is acting in violation of the provisions of NRS 179.410 to 179.515, inclusive, or [NRS] 200.610 to 200.690, inclusive, or allowing another to act in violation of those provisions, the commission shall issue a permanent cease and desist order and notify the district attorney of the county where the violation occurred of its determination.

    5.  This section is applicable whether or not the utility involved is required to have a certificate of public convenience and necessity from the commission.

    Sec. 17.  NRS 704.965 is hereby amended to read as follows:

    704.965 As used in NRS 704.965 to 704.990, inclusive, and sections 12, 13 and 14 of this act, unless the context otherwise requires, the words and terms defined in NRS 704.966 to 704.975, inclusive, have the meanings ascribed to them in those sections.

    Sec. 18.  NRS 704.970 is hereby amended to read as follows:

    704.970 “Electric distribution utility” means a utility that is in the business of supplying noncompetitive electric distribution or transmission service, or both, or a noncompetitive service pursuant to NRS 704.982, on or after [July 1, 1999, or] the date on which alternative sellers are authorized to provide potentially competitive services to customers in this state . [, as appropriate.]

    Sec. 19.  NRS 704.975 is hereby amended to read as follows:

    704.975 1.  “Vertically integrated electric utility” means any public utility in the business of supplying electricity or its successor in interest that, as of December 31, 1996:

    (a) Held a certificate of public convenience and necessity issued pursuant to NRS 704.005 to 704.731, inclusive; and

    (b) Had an annual operating revenue of $250,000,000 or more[.] in Nevada.

    2.  The term does not include a cooperative association or nonprofit corporation or association or other provider of electric service, which is declared to be a public utility pursuant to NRS 704.673 and provides service only to its members.

    Sec. 20.  NRS 704.976 is hereby amended to read as follows:

    704.976 1.  The date upon which customers may begin obtaining generation, aggregation , metering, billing and any other potentially competitive services from an alternative seller must be no later than [December 31, 1999,] March 1, 2000, unless the commission determines that a different date is necessary to protect the public interest. [If the commission determines that a different date is necessary, the commission shall provide a report to the director of the legislative counsel bureau for transmittal to the legislature by February 1, 1999, which:

    (a) Explains the reason that the commission has not granted such an authorization; and

    (b) States whether the commission will grant such an authorization by December 31, 1999.]

    2.  The commission may:

    (a) Establish different dates for the provision of different services by alternative sellers in different geographic areas; and

    (b) Authorize, in gradual phases, the right of customers to buy from alternative sellers.

    3.  The commission shall determine that an electric service is a potentially competitive service if provision of the service by alternative sellers:

    (a) Will not harm any class of customers;

    (b) Will decrease the cost of providing the service to customers in this state or increase the quality or innovation of the service to customers in this state;

    (c) Is a service for which effective competition in the market is likely to develop;

    (d) Will advance the competitive position of this state relative to surrounding states; and

    (e) Will not otherwise jeopardize the safety and reliability of the electric service in this state.

    4.  If the commission determines that a market for a potentially competitive service does not have effective competition, the commission shall, by regulation, establish the method for determining prices for the service and the terms and conditions for providing the service. The regulations must ensure that the pricing method, terms and conditions are just and reasonable and not unduly discriminatory. The regulations may include pricing alternatives which authorize the seller to reduce prices below maximum pricing levels specified by the commission or any other form of alternative pricing which the commission determines to be consistent with the provisions of this subsection. In determining whether a market for an electric service has effective competition, the commission shall:

    (a) Identify the relevant market;

    (b) Identify, where feasible, the alternative sellers that participate and are reasonably expected to participate in the relevant market; and

    (c) Calculate, where feasible, the market share of each participant in the market and evaluate the significance of each share.

    5.  On [or before October 1, 2000, the commission shall submit to the director of the legislative counsel bureau for transmittal to the appropriate legislative committee a report which:

    (a) Evaluates the effectiveness of competition in the market for each service which customers have the right to purchase from alternative sellers; and

    (b) Recommends actions which the legislature should take to increase the effectiveness of competition in the markets for all potentially competitive services.

    6.  On] or before October 1, 2001, an electric service that has been found on or before that date to be potentially competitive shall be deemed to be competitive.

    [7.] 6.  The commission may reconsider any determination made pursuant to this section upon its own motion or upon a showing of good cause by a party requesting a reconsideration. Upon a finding by the commission that the market for a service previously found not to have effective competition has become effectively competitive, the commission shall repeal the regulations which established the pricing methods and the terms and conditions for providing that service. The commission shall conduct any proceedings for the reconsideration of any such determination as expeditiously as practicable considering the current work load of the commission and the need to protect the public interest.

    [8.] 7.  A vertically integrated electric utility shall not provide a potentially competitive service except through an affiliate:

    (a) On or after [December 31, 1999;] March 1, 2000; or

    (b) The date on which the commission determines that the service is potentially competitive,

whichever is later.

    Sec. 21.  NRS 704.977 is hereby amended to read as follows:

    704.977  1.  It is unlawful for an alternative seller to sell any electric service to a customer for consumption within this state without having first obtained a license from the commission to do so. A licensed alternative seller or a vertically integrated utility may negotiate with a customer for the provision of electric service before March 1, 2000, but no such contract is effective before March 1, 2000.

    2.  [Not later than January 1, 1999, or any different date as determined by the commission pursuant to NRS 704.976, as appropriate, the] The commission shall by regulation set forth the procedures and conditions that alternative sellers must satisfy to obtain a license to sell any electric services to a customer in this state, including, but not limited to, procedures and conditions relating to:

    (a) Safety and reliability of service;

    (b) Financial and operational fitness; and

    (c) Billing practices and customer service, including the initiation and termination of service.

    3.  If, after reviewing the application of an alternative seller for a license, the commission finds that the applicant is qualified to be an alternative seller, the commission shall issue a license to the applicant.

    4.  The commission may deny the application of an applicant for a license to operate as an alternative seller and may limit, suspend or revoke a license issued to an alternative seller if the action is necessary to protect the interests of the public or to enforce the provisions of NRS 704.965 to 704.990, inclusive, and sections 12, 13 and 14 of this act, or a regulation of the commission.

    5.  In determining whether an applicant is qualified for a license, whether to deny an application for a license to operate as an alternative seller or whether to limit, suspend or revoke a license issued to an alternative seller, the commission may consider whether the applicant for or holder of the license, or any affiliate thereof, has engaged in any activities which are inconsistent with effective competition.

    6.  A city, county or other local governmental entity or a public utility, or any affiliate thereof, which is authorized to provide electric service within the State of Nevada and which has an annual operating revenue of less than $250,000,000, [is] becomes subject to the provisions of NRS 704.965 to 704.990, inclusive, and sections 12, 13 and 14 of this act, and any regulations adopted [by the commission that are in effect] pursuant thereto, on the date on which the city, county or other local governmental entity or a public utility, or an affiliate thereof:

    (a) Applies to obtain a license as an alternative seller; or

    (b) Directly or indirectly attempts to provide, or act on behalf of an alternative seller in the provision of, electric service in the territory served by another city, county or other local governmental entity or public utility, or an affiliate thereof, unless the city, county or other local governmental entity or public utility, or an affiliate thereof, is otherwise required or permitted by specific statute to provide such service.

    7.  Notwithstanding the provisions of subsection 6, a city, county or other local governmental entity or a public utility, or any affiliate thereof, does not become subject to the provisions of NRS 704.965 to 704.990, inclusive, and sections 12, 13 and 14 of this act, or any regulations adopted pursuant thereto, solely because the city, county or other local governmental entity or a public utility, or any affiliate thereof, provides transmission or distribution services to an alternative seller pursuant to a contract, tariff or requirement of any state or federal law, except that the city, county or other local governmental entity or public utility, or an affiliate thereof, shall provide such transmission and distribution services on an open and nondiscriminatory basis to alternative sellers in accordance with such standards as the commission may establish by regulation for the provision of transmission and distribution services in accordance with this subsection.

    8.  Regulations adopted pursuant to subsection 2:

    (a) Must not be unduly burdensome;

    (b) Must not unnecessarily delay or inhibit the initiation and development of competition for any service in any market; and

    (c) May establish different requirements for licensing alternative sellers of:

        (1) Different services; or

        (2) Similar services to different classes of customers,

whenever such different requirements are appropriate to carry out the provisions of NRS 704.965 to 704.990, inclusive[.] , and sections 12, 13 and 14 of this act.

    Sec. 22.  NRS 704.978 is hereby amended to read as follows:

    704.978  1.  The commission shall prohibit a provider of a noncompetitive service from providing a potentially competitive service, except through an affiliate of the provider.

    2.  The commission shall require each provider of a noncompetitive service that is necessary to the provision of a potentially competitive service to make its facilities or services available to all alternative sellers on equal and nondiscriminatory terms and conditions.

    3.  In providing a potentially competitive service, an affiliate of a provider of a noncompetitive service may use the name or logo, or both, of the provider of noncompetitive service.

    Sec. 23.  NRS 704.982 is hereby amended to read as follows:

    704.982  1.  The commission shall designate a vertically integrated electric utility , or its successor electric distribution utility, to provide electric service to customers who are unable to obtain electric service from an alternative seller or who fail to select an alternative seller. The provider so designated by the commission is obligated to provide electric service to the customers. Electric service provided by the utility pursuant to this section shall be deemed to be a noncompetitive service for which the utility may recover its costs pursuant to NRS 704.001 to 704.655, inclusive, 704.701 to 704.751, inclusive, and 704.800 to 704.900, inclusive.

    2.  Upon a finding by the commission that the public interest will be promoted, the commission may prescribe alternate methods for providing electric service to those customers described in subsection 1. The alternate methods may include, but are not limited to, the direct assignment of customers to alternative sellers or electric distribution utilities or a process of competitive bidding for the right to provide electric service to the designated customers. Any alternative methods prescribed by the commission pursuant to this subsection may not go into effect before July 1, 2001.

    3.  The commission shall establish minimum terms and conditions under which electric service must be provided pursuant to this section, including a minimum period during which a customer must be obligated to pay for the electric service from the assigned provider. The price charged for electric service for a particular group of customers must reflect the incremental cost of serving the group.

    4.  If the designated provider of the electric service is a vertically integrated electric utility, the utility shall provide the electric service through an affiliate whose sole business activity is the provision of electric service.

    5.  Except as otherwise provided in this subsection and subsection 6, the rate charged for residential service provided pursuant to subsection 1 must not exceed the rate charged for that service on July 1, 1997. The limitation set forth in this subsection is effective until 2 years after the date upon which, in accordance with NRS 704.976, the commission repeals the regulations which established the pricing method for that service and the terms and conditions for providing that service.

    6.  The commission may, in accordance with NRS 704.110, 704.120 and 704.130, approve an increase in the rate charged for residential service provided pursuant to subsection 1 in an amount that does not exceed the increase necessitated, if any, to ensure the recovery by the vertically integrated electric utility , or its successor electric distribution utility, of its just and reasonable costs. The provisions of this section do not limit or prohibit in any manner the operation of any order issued by the commission before July 1, 1997.

    Sec. 24.  NRS 704.983 is hereby amended to read as follows:

    704.983  1.  The commission shall determine the recoverable costs associated with assets and obligations that are documented in the accounting records of a vertically integrated electric utility and its successor electric distribution utility and that are properly allocable to a particular potentially competitive service as of the date on which alternative sellers of similar potentially competitive services begin providing such service to customers in this state. Shareholders of the vertically integrated electric utility must be compensated fully for all such costs determined by the commission. In determining the recoverable costs, the commission shall take into account:

    (a) The extent to which the utility was legally required to incur the costs of the assets and obligations;

    (b) The extent to which the market value of the assets and obligations of the utility, relating to the provision of potentially competitive services, exceeds the costs of the assets and obligations;

    (c) The effectiveness of the efforts of the utility to increase the market value and realize the market value of any assets, and to decrease the costs of any obligations, associated with the provision of potentially competitive services;

    (d) The extent to which the rates previously established by the commission have compensated shareholders for the risk of not recovering the costs of the assets and obligations;

    (e) The effects of the difference between the market value and the cost, including, without limitation, tax considerations, for the assets and obligations; and

    (f) If the utility had the discretion to determine whether to incur or mitigate the costs, the conduct of the utility with respect to the costs of the assets and obligations when compared to other utilities with similar obligations to serve the public.

    2.  For the purposes of this section, the commission may impose a procedure for the direct and unavoidable recovery from ratepayers of the portion of the past costs which are determined by the commission to be owed by the ratepayers. The procedure must include a determination of the period over which the recovery may occur and include the authority for the commission to assess charges on those customers on whose behalf the vertically integrated electric utility incurred costs who are no longer receiving transmission or distribution service, or both, from the vertically integrated electric utility. Such determinations and procedures must not discriminate against a participant in the market.

    3.  Failure by a utility to minimize, in a reasonable and prudent manner, federal taxes resulting from the offsetting of gains and losses of assets and obligations properly allocable to a potentially competitive service must be considered by the commission in determining the recoverable costs for the utility.

    Sec. 25.  NRS 704.997 is hereby amended to read as follows:

    704.997  1.  Upon the receipt of a specific request for an exemption by a public utility that supplies natural gas, the commission may, to the extent it deems necessary, exempt any service offered by the public utility from the strict application of one or more provisions of this chapter. Such an exemption may be made only upon a determination by the commission, after notice and an opportunity for a hearing, that the service is competitive, discretionary or potentially competitive.

    2.  The commission shall adopt regulations necessary to establish an alternative plan of regulation of a public utility that supplies natural gas and that is otherwise subject to regulation pursuant to the provisions of this chapter. The alternative plan may include, but is not limited to, provisions that:

    (a) Allow adjustment of the rates charged by the public utility during the period in which the utility elects the alternative plan of regulation.

    (b) Specify the provisions of this chapter that do not apply to a public utility which elects to be regulated under the alternative plan.

    (c) Provide for flexibility of pricing for services that are discretionary, competitive or potentially competitive.

    3.  A public utility that elects to be regulated under the alternative plan established pursuant to this section is not subject to the remaining provisions of this chapter to the extent specified pursuant to this section.

    4.  In providing a potentially competitive service, an affiliate of a provider of a noncompetitive service may use the name or logo, or both, of the provider of noncompetitive service.

    5.  It is unlawful for an alternative seller to sell any service relating to the supply of natural gas to a customer for his consumption within this state without first having obtained a license from the commission to do so.

    Sec. 26.  If, in accordance with NRS 704.976, the public utilities commission of Nevada determines that a date other than March 1, 2000, on which customers may begin obtaining generation, aggregation, metering, billing and other potentially competitive services from alternative sellers, is necessary to protect the public interest, the commission shall, not later than December 1, 1999, provide a report to the director of the legislative counsel bureau for transmittal to the legislature, or the legislative commission if the legislature is not in session. The report must contain the reasons for the commission’s determination that the different date is necessary and a new proposed date on which the commission believes that it would be appropriate for customers to begin obtaining generation, aggregation, metering, billing and other potentially competitive services.

    Sec. 27.  1.  This section and sections 1 to 14, inclusive, 16 to 26, inclusive, 28 and 29 of this act become effective upon passage and approval.

    2.  Sections 15 and 15.5 of this act become effective on October 1, 1999.

    Sec. 28.  If the pending merger between Sierra Pacific Resources and Nevada Power Company, referred to in the records of the Public Utilities Commission of Nevada as Docket No. 98-7023, is terminated for any reason before the completion of the merger, this act expires by limitation on the date on which the pending merger is terminated.

    Sec. 29.  Except as otherwise provided in section 28 of this act, sections 13 and 14 of this act expire by limitation on March 1, 2003.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to utilities; providing for the appointment of administrative law judges to hear contested cases before the public utilities commission of Nevada and defining their duties; revising the provisions governing recoverable costs; providing for the provision of basic electric services during the period of transition to a competitive market; providing for an auction of the right to provide such electric services; making various changes related to the provision of electricity in a competitive market; extending the statutory deadline by which customers may begin obtaining potentially competitive services; repealing provisions relating to deferred accounting; authorizing the use of the name or logo of a provider of a noncompetitive service by an affiliate of a provider of electric services or a provider of natural gas; and providing other matters properly relating thereto.”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senators Townsend and Neal.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 439.

    Bill read second time.

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

    Amendment No. 200.

    Amend sec. 3, page 2, line 12, by deleting “subsection 2” and inserting “this section”.

    Amend sec. 3, page 2, by deleting lines 31 and 32.

    Amend sec. 3, page 2, line 33, by deleting “(e)” and inserting “(d)”.

    Amend sec. 3, page 2, line 37, by deleting “(f)” and inserting “(e)”.

    Amend sec. 3, page 2, line 38, after “2.” by inserting: “The board may refuse to grant a certificate of certified public accountant to an applicant if he has been convicted of a felony under the laws of any state or of the United States.

    3.”.

    Amend sec. 4, page 2, line 41, by deleting “The” and inserting: “[The] Except as otherwise provided in subsection 4, the”.

    Amend sec. 4, page 3, between lines 30 and 31, by inserting:

    “4.  Notwithstanding any provision of this section to the contrary, an applicant for a certificate of certified public accountant who has received conditional credit pursuant to NRS 628.260 for passing sections of the examination required for a certificate, and who applies that credit to his subsequent passage of the examination, is subject to the educational requirements to receive a certificate that were in effect on the date on which he first received the conditional credit.”.

    Amend the bill as a whole by adding new sections designated sections 5.3, 5.5 and 5.7, following sec. 5, to read as follows:

    “Sec. 5.3.  NRS 628.240 is hereby amended to read as follows:

    628.240  A candidate for a certificate of certified public accountant, who has met the educational requirements as provided in NRS 628.200, is eligible to take the examination without waiting until he meets the requirements of experience if he also meets the requirements of [subsections 1 and 2] paragraphs (a) and (b) of subsection 1 of NRS 628.190.

    Sec. 5.5.  NRS 628.260 is hereby amended to read as follows:

    628.260  1.  The board may by regulation prescribe the terms and conditions under which a candidate:

    (a) Must pass all sections of the examination [indicated in] prescribed by the board pursuant to NRS 628.190 [in order] to qualify for a certificate.

    (b) Who , at any given examination , passes two or more sections, but not all sections, may receive conditional credit for the sections passed, and need not sit for re-examination in those sections. The board may by regulation:

        (1) Provide minimum grades for each section not passed in order to receive credit for those passed;

        (2) Provide a limit on the time in which each candidate must pass all sections of the examination or lose any credit received; and

        (3) Require a candidate to sit for all sections of the examination which he did not pass in a previous examination.

    2.  The board may give credit to a candidate who has passed all or part of the examination in another state or other jurisdiction of the United States, if the certified public accountant members of the board have determined by regulation that the standards under which the examination was held are as high as the standards established for the examination required by this chapter.

    Sec. 5.7.  NRS 628.280 is hereby amended to read as follows:

    628.280  1.  The board shall charge each candidate for a certificate of certified public accountant a fee to be determined by the board by regulation for the initial examination [provided for in] prescribed by the board pursuant to NRS 628.190.

    2.  Fees for re-examinations under NRS 628.190 must also be charged by the board in amounts determined by it by regulation for each section of the examination in which the candidate is re-examined.

    3.  The applicable fee must be paid by the candidate at the time he applies for examination or re-examination.

    4.  The board shall charge each candidate for a certificate of certified public accountant a fee to be determined by the board by regulation for review and inspection of his examination paper.”.

    Amend sec. 6, page 4, line 9, by deleting: “state, and who [:” and inserting: “state [,and who:”.

    Amend sec. 6, page 4, lines 15 and 16, by deleting: “or] has:

    (a) Passed” and inserting: “or has:

    (a) Passed] if:

    (a) The person has passed”.

    Amend sec. 6, page 4, line 17, by deleting “628.190;]” and inserting: “628.190; and

    (b) Experience] conducted pursuant to NRS 628.230 with a grade that would have been a passing grade in this state on the date on which he received his original certificate;

    (b) The person has experience”.

    Amend sec. 6, page 4, line 23, before “supervision” by inserting “direct”.

    Amend sec. 6, page 4, by deleting line 26 and inserting: “chapter [.] ; and

    (c) The requirements for education of the state or other jurisdiction from which the person received his original certificate were substantially equivalent to the requirements for education of this state on the date on which the person received his original certificate.”.

    Amend sec. 6, page 5, line 17, by deleting “of” and inserting “as a”.

    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.  NRS 628.325 is hereby amended to read as follows:

    628.325  1.  One or more natural persons may organize a corporation for the practice of public accounting under the Professional Corporations and Associations Act, chapter 89 of NRS. The corporation is not required to have more directors than shareholders, but at least one director must be a shareholder. The other directors need not, but may, be shareholders.

    2.  One or more natural persons may:

    (a) Organize a corporation pursuant to chapter 78 of NRS;

    (b) Qualify to do business as a foreign corporation pursuant to chapter 80 of NRS;

    (c) Organize a limited-liability company pursuant to chapter 86 of NRS; or

    (d) Register as a foreign limited-liability company pursuant to chapter 86 of NRS,

to practice public accounting.

    3.  The organization, qualification or registration of a corporation or company pursuant to subsection 2:

    (a) Does not modify:

        (1) The relationship between an accountant and a client;

        (2) The liability arising out of that relationship; or

        (3) The compliance of the corporation or company with this chapter or any regulations adopted pursuant thereto.

    (b) Does not render:

        (1) A person liable in tort for any act in which he has not personally participated.

        (2) The manager, a member or an employee of a limited-liability company liable in contract for any contract which he executes on behalf of a limited-liability company within the limits of his authority.

    4.  Notwithstanding any specific statute to the contrary, a simple majority of the ownership of a corporation, partnership or limited-liability company organized for the practice of public accounting in this state, in terms of the financial interests and voting rights of all shareholders, partners, officers, members and principals thereof, must belong to persons who are certified public accountants in any state or registered public accountants in this state. Each shareholder, partner, officer, member or principal whose principal place of business is in this state and who performs professional services in this state must be:

    (a) If the corporation, partnership or limited-liability company registered with the board is a corporation, partnership or limited-liability company of certified public accountants, a certified public accountant in this state in good standing; and

    (b) If the corporation, partnership or limited-liability company registered with the board is a corporation, partnership or limited-liability company of public accountants, a certified public accountant or registered public accountant in this state in good standing.

    5.  A corporation, partnership or limited-liability company organized for the practice of public accounting in this state may have as a shareholder, partner, officer, member or principle any natural person who is not a certified public accountant in any state or a registered public accountant in this state if:

    (a) The natural person is actively engaged in the business of the corporation, partnership or limited-liability company, or any affiliate thereof; and

    (b) The corporation, partnership or limited-liability company complies with any other requirements that the board by regulation may impose.”.

    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 628.510 is hereby amended to read as follows:

    628.510  1.  Except as otherwise provided in subsection 2, a person shall not sign or affix his name or the name of a partnership, corporation or limited-liability company, or any trade or assumed name used by him or by the partnership, corporation or limited-liability company in business, with any wording indicating that he is an accountant or auditor, or that the partnership, corporation or limited-liability company is authorized to practice as an accountant or auditor or with any wording indicating that he or the partnership, corporation or limited-liability company has expert knowledge in accounting or auditing, to any accounting or financial statement, or attest to any accounting or financial statement, unless he holds a live permit, or the partnership, corporation or limited-liability company is registered pursuant to NRS 628.340, 628.343, 628.345, 628.360, 628.363 or 628.365 and all of his offices in this state for the practice of public accounting are maintained and registered under NRS 628.370.

    2.  The provisions of subsection 1 do not prohibit:

    (a) Any officer, employee, partner, principal or member of any organization from affixing his signature to any statement or report in reference to the financial affairs of that organization with any wording designating the position, title or office which he holds in the organization.

    (b) Any act of a public official or public employee in the performance of his duties as such.

    (c) Any person who does not hold a live permit from preparing a financial statement or issuing a report if the statement or report, respectively, includes a disclosure that:

        (1) The person who prepared the statement or issued the report does not hold a live permit issued by the board; and

        (2) The statement or report does not purport to have been prepared in compliance with the professional standards of accounting adopted by the board.”.

    Amend sec. 13, page 11, line 42, after ““accounting”” by inserting ““accountancy,””.

    Amend sec. 13, page 12, by deleting lines 1 and 2 and inserting: “state board of accountancy certifies that the corporation:

    (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

    (b) Has filed with the state board of accountancy under penalty of perjury a written statement that the corporation is not engaged in the practice of accounting and is not offering to practice accounting in this state.”.

    Amend sec. 14, page 13, line 29, after ““accounting,”” by inserting ““accountancy,””.

    Amend sec. 14, page 13, by deleting lines 30 and 31 and inserting: “accountancy certifies that the foreign corporation:

    (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

    (b) Has filed with the state board of accountancy under penalty of perjury a written statement that the foreign corporation is not engaged in the practice of accounting and is not offering to practice accounting in this state.”.

    Amend sec. 15, page 14, line 7, after ““accounting,”” by inserting ““accountancy,””.

    Amend sec. 16, page 14, line 32, after ““accounting,”” by inserting ““accountancy,””.

    Amend sec. 16, page 14, by deleting lines 34 and 35 and inserting: “certifies that the limited-liability company:

    (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

    (b) Has filed with the state board of accountancy under penalty of perjury a written statement that the limited-liability company is not engaged in the practice of accounting and is not offering to practice accounting in this state.”.

    Amend the bill as a whole by adding a new section designated sec. 16.5, following sec. 16, to read as follows:

    “Sec. 16.5.  Section 2 of Senate Bill No. 19 of this session is hereby amended to read as follows:

    Sec. 2.  NRS 80.010 is hereby amended to read as follows:

    80.010  1.  Before commencing or doing any business in this state, each corporation organized pursuant to the laws of another state, territory, the District of Columbia, a possession of the United States or a foreign country, that enters this state to do business must:

    (a) File in the office of the secretary of state of this state:

        (1) A certificate of corporate existence issued not more than 90 days before the date of filing by an authorized officer of the jurisdiction of its incorporation setting forth the filing of documents and instruments related to the articles of incorporation, or the governmental acts or other instrument or authority by which the corporation was created. If the certificate is in a language other than English, a translation, together with the oath of the translator and his attestation of its accuracy, must be attached to the certificate.

        (2) A certificate of acceptance of appointment executed by its resident agent, who must be a resident or located in this state. The certificate must set forth the name of the resident agent, his street address for the service of process, and his mailing address if different from his street address. The street address of the resident agent is the registered office of the corporation in this state.

        (3) A statement executed by an officer of the corporation, acknowledged before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds, setting forth:

            (I) A general description of the purposes of the corporation; and

            (II) The authorized stock of the corporation and the number and par value of shares having par value and the number of shares having no par value.

    (b) Lodge in the office of the secretary of state a copy of the document most recently filed by the corporation in the jurisdiction of its incorporation setting forth the authorized stock of the corporation, the number of par‑value shares and their par value, and the number of no-par-value shares.

    2.  The secretary of state shall not file the documents required by subsection 1 for any foreign corporation whose name is the same as, or deceptively similar to the name of a corporation, limited partnership or limited-liability company existing pursuant to the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state or a name to which the exclusive right is at the time reserved in the manner provided in the laws of this state, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.

    3.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer” or “licensed engineer” unless the state board of professional engineers and land surveyors certifies that:

    (a) The principals of the corporation are licensed to practice engineering pursuant to the laws of this state; or

    (b) The corporation is exempt from the prohibitions of NRS 625.520.

    4.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if it appears from the documents that the business to be carried on by the corporation is subject to supervision by the commissioner of financial institutions, unless the commissioner certifies that:

    (a) The corporation has obtained the authority required to do business in this state; or

    (b) The corporation is not subject to or is exempt from the requirements for obtaining such authority.

    5.  The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words “accountant,” “accounting,” “accountancy,” “auditor” or “auditing” unless the Nevada state board of accountancy certifies that the foreign corporation:

    (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

    (b) Has filed with the state board of accountancy under penalty of perjury a written statement that the foreign corporation is not engaged in the practice of accounting and is not offering to practice accounting in this state.

    6.  As used in this section, “street address” of a resident means the actual physical location in this state at which a resident agent is available for service of process.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to accountants; revising provisions governing the qualifications and examination of applicants for certificates of certified public accounting; making various changes relating to the professional conduct of companies practicing certified public accounting or public accounting; revising provisions governing the organizational structure of companies practicing certified public accounting or public accounting; prohibiting the secretary of state from accepting for filing certain articles of incorporation or amendments thereto that contain certain words relating to accounting; repealing certain prohibited acts; and providing other matters properly relating thereto.”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 447.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 582.

    Amend section 1, page 1, line 12, after “permit” by inserting: “for a construction site”.

    Amend the title of the bill, first line, after “for” by inserting “certain”.

    Amend the summary of the bill, first line, after “for” by inserting “certain”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senator Rhoads.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 449.

    Bill read second time.

    The following amendment was proposed by the Committee on Judiciary:

    Amendment No. 424.

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

    “Section 1.  Chapter 202 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  If a sheriff who is processing an application for a permit receives notification pursuant to NRS 202.3657 that the applicant has been:

    (a) Charged with a crime involving the use or threatened use of force or violence, the sheriff shall notify any victim of the crime of the fact that the sheriff has, pursuant to NRS 202.3657:

        (1) Suspended the processing of the application until the final disposition of the charges against the applicant; or

        (2) Resumed the processing of the application following the dropping of charges against the applicant or the acquittal of the applicant.

    (b) Convicted of a crime involving the use or threatened use of force or violence, the sheriff shall notify any victim of the crime of the fact that the sheriff has, pursuant to NRS 202.3657, denied the application.

    2.  If a sheriff who has issued a permit to a permittee receives notification pursuant to NRS 202.3657 that the permittee has been:

    (a) Charged with a crime involving the use or threatened use of force or violence, the sheriff shall notify any victim of the crime of the fact that the sheriff has, pursuant to NRS 202.3657:

        (1) Suspended the permit of the permittee until the final disposition of the charges against the permittee; or

        (2) Restored the permit of the permittee following the dropping of charges against the permittee or the acquittal of the permittee.

    (b) Convicted of a crime involving the use or threatened use of force or violence, the sheriff shall notify any victim of the crime of the fact that the sheriff has, pursuant to NRS 202.3657, revoked the permit of the permittee.

    3.  The sheriff shall notify a victim pursuant to subsection 1 or 2 not later than 10 days after the date on which the sheriff performs one of the actions listed in subsection 1 or 2 concerning an application or a permit.

    Sec. 2.  NRS 202.3653 is hereby amended to read as follows:

    202.3653  As used in NRS 202.3653 to 202.369, inclusive, and section 1 of this act, unless the context otherwise requires:

    1.  “Concealed firearm” means a loaded or unloaded pistol, revolver or other firearm which is carried upon a person in such a manner as not to be discernible by ordinary observation.

    2.  “Department” means the department of motor vehicles and public safety.

    3.  “Permit” means a permit to carry a concealed firearm issued pursuant to the provisions of NRS 202.3653 to 202.369, inclusive.

    Sec. 3.  NRS 202.3662 is hereby amended to read as follows:

    202.3662  1.  Except as otherwise provided in this section [:] and section 1 of this act:

    (a) An application for a permit, and all information contained within that application; and

    (b) All information provided to a sheriff or obtained by a sheriff in the course of his investigation of an applicant,

are confidential.

    2.  Any records regarding an applicant or permittee may be released to a law enforcement agency for the purpose of conducting an investigation or prosecution.

    3.  Statistical abstracts of data compiled by a sheriff regarding permits applied for or issued pursuant to NRS 202.3653 to 202.369, inclusive, including, but not limited to, the number of applications received and permits issued, may be released to any person..

    Amend the title of the bill to read as follows:

    “AN ACT relating to concealed firearms; requiring a sheriff to provide notice to a victim of a violent crime regarding certain actions taken concerning a permit to carry a concealed firearm or an application for such a permit; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Requires sheriff to notify victim of violent crime of certain actions taken concerning permit to carry concealed firearm or application for permit. (BDR 15‑824)”.

    Senator Washington moved the adoption of the amendment.

    Remarks by Senator Washington.


    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 463.

    Bill read second time.

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

    Amendment No. 646.

    Amend sec. 2, page 2, line 16, by deleting “1999.” and inserting “2000.”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

    Senator O’Connell moved that Senate Bill No. 478 be taken from the Second Reading File and placed on the bottom of the Second Reading File.

    Remarks by Senator O’Connell.

    Motion carried.

    Senator Raggio moved that Senate Bills Nos. 38, 163, 211, 287, 349, 363, 394, 423, 440, 451, 485, 500; Senate Joint Resolution No. 3 be placed on the Second Reading File on the Third Agenda.

    Remarks by Senator Raggio.

    Motion carried.

    Senator Porter moved that Senate Bill No. 485 be taken from the Second Reading File and placed on the Second Reading File for the next legislative day.

    Remarks by Senator Porter.

    Motion carried.

SECOND READING AND AMENDMENT

    Senate Bill No. 487.

    Bill read second time.

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

    Amendment No. 621.

    Amend section 1, page 1, line 2, by deleting “36,” and inserting “11,”.

    Amend sec. 2, page 1, line 3, by deleting “10,” and inserting “11,”.

    Amend sec. 2, page 1, line 4, by deleting “3” and inserting “2.5”.

    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.  “Commission” means the public utilities commission of Nevada.”.

    Amend sec. 5, page 1, line 11, by deleting: “public utilities commission of Nevada” and inserting “commission”.

    Amend sec. 8, page 2, lines 8 and 9, by deleting: “public utilities commission of Nevada” and inserting “commission”.

    Amend sec. 9, page 3, line 4, after “notifies the” by inserting “eligible”.

    Amend sec. 10, page 3, line 10, after “services” by inserting: “must be based on the methods for determining reductions which are adopted by the commission by regulation. The commission may provide different methods for determining reductions to allow for differences between eligible providers. The methods may include, without limitation:

    (a) Basing the reduction on the tariff filed by the eligible provider with the commission; or

    (b) Establishing a formula pursuant to which the amount of the reduction may be determined.

    2.  The reduction in such telephone rates”.

    Amend sec. 10, page 3, line 15, by deleting “2.” and inserting “3.”.

    Amend sec. 10, page 3, between lines 18 and 19, by inserting:

    “4.  If the amount of the reduction in rates provided by an eligible provider to an eligible customer for lifeline services is greater than the amount which the eligible provider receives as universal service support pursuant to 47 U.S.C. § 254, the eligible provider is entitled to reimbursement from the fund established by the commission pursuant to NRS 704.040 for the difference between the amount of the reduction and the amount received as universal service support pursuant to 47 U.S.C. § 254.”.

    Amend the bill as a whole by deleting sections 11 through 40 and adding a new section designated sec. 11, following sec. 10, to read as follows:

    “Sec. 11.  1.  A telephone company, person providing wireless or commercial mobile radio service, public safety answering point, or manufacturer supplying equipment to a telephone company or public safety answering point, or any agent thereof, is not liable to any person who uses an enhanced 911 service for:

    (a) The release of the telephone number and street address of the telephone used to place the 911 telephone call, including telephone numbers which are not published, if the release was made in good faith;

    (b) The failure of any equipment or procedure in connection with the provision of an enhanced 911 service; or

    (c) Any act, or the omission of any act, committed in good faith,

while providing, or while in training to provide, services through a public safety answering point.

    2.  As used in this section,

    (a) “Enhanced 911 service” means a service consisting of telephone network features and public safety answering points provided for persons using the public telephone system to reach the appropriate public service answering point by dialing the digits 9-1-1, by using selective routing, if required, based on the location from which the call originated, and providing at the public safety answering point automatic number identification and automatic location identification.

    (b) “Public safety answering point” means a facility, operated 24 hours a day, 7 days a week, that is responsible for receiving 911 telephone calls and directly dispatching emergency response services, or transferring or relaying 911 telephone calls to other public safety agencies. A public safety answering point is the first point of reception by a public safety agency of 911 telephone calls and serves the jurisdiction in which it is located and other participating jurisdictions.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to telecommunications; requiring the department of human resources to provide certain providers of telecommunication services with information concerning customers who are eligible to receive lifeline and link up services; regulating the provision of such services to eligible customers; authorizing under certain circumstances the reimbursement of eligible providers that provide lifeline services; providing immunity from liability under certain circumstances with respect to the provision of enhanced 911 services; and providing other matters properly relating thereto.”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senators Townsend and Neal.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 495.

    Bill read second time.

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

    Amendment No. 527.

    Amend sec. 25, page 15, by deleting lines 24 through 28 and inserting:

    “8.  Any party aggrieved by a [decision] determination regarding the administration of an assigned claim or a [decision] determination made by the division or by the [system] designated third-party administrator or insurer regarding any claim made pursuant to this section may appeal that [decision] determination within 60 days after the [decision] determination is rendered to the hearings division of the department of”.

    Amend the bill as a whole by renumbering sections 26 through 40 as sections 28 through 42 and adding new sections designated sections 26 and 27, following sec. 25, to read as follows:

    “Sec. 26.  NRS 616C.355 is hereby amended to read as follows:

    616C.355  At any time 10 or more days before a scheduled hearing before an appeals officer, the administrator[, the manager or the manager’s] or the administrator’s designee, a party shall mail or deliver to the opposing party any affidavit or declaration which he proposes to introduce into evidence and notice to the effect that unless the opposing party, within 7 days after the mailing or delivery of such affidavit or declaration, mails or delivers to the proponent a request to cross-examine the affiant or declarant, his right to cross-examine the affiant or declarant is waived and the affidavit or declaration, if introduced into evidence, will have the same effect as if the affiant or declarant had given sworn testimony before the appeals officer, the administrator[, the manager or the manager’s] or the administrator’s designee.

    Sec. 27.  NRS 616C.385 is hereby amended to read as follows:

    616C.385  If a party petitions the district court for judicial review of a final decision of an appeals officer, the [manager or the manager’s] administrator or the administrator’s designee, and the petition is found by the district court to be frivolous or brought without reasonable grounds, the district court may order costs and a reasonable attorney’s fee to be paid by the petitioner.”.

    Amend sec. 26, page 16, by deleting lines 15 and 16 and inserting:

    “616D.050  1.  Appeals officers, the administrator [, the manager and the manager’s] and the administrator’s designee, in conducting hearings or other proceedings”.

    Amend sec. 27, page 17, by deleting lines 6 through 8 and inserting:

    “1.  Disobeys an order of an appeals officer, a hearing officer, the administrator [, the manager or the manager’s] or the administrator’s designee, or a subpoena issued by the [manager, manager’s designee,] administrator, administrator’s designee, appeals”.

    Amend sec. 27, page 17, by deleting lines 14 and 15 and inserting: “of the appeals officer, the hearing officer, the administrator [, the manager or the manager’s] or the administrator’s designee, shall compel obedience by attachment”.

    Amend sec. 28, page 17, by deleting lines 24 and 25 and inserting: “NRS, before an appeals officer, a hearing officer, the administrator [, the manager or the manager’s] or the administrator’s designee, is entitled to receive for his”.

    Amend sec. 28, page 17, line 27, after “record.” by inserting: “For subpoenas issued on behalf of this state or an officer or agency thereof, the fees and mileage are not required to be tendered at the same time that the subpoena is delivered to the person named therein.”.

    Amend sec. 28, page 17, by deleting lines 28 and 29 and inserting:

    “3.  The appeals officer, hearing officer, administrator [, manager or the manager’s] or the administrator’s designee shall:”.

    Amend sec. 29, page 17, by deleting lines 37 and 38 and inserting: “stenographer appointed by an appeals officer, a hearing officer, the administrator [, the manager or the manager’s] or the administrator’s designee, being certified by”.

    Amend sec. 30, page 18, line 13, after “system” by inserting: “or a private carrier”.

    Amend sec. 30, page 18, between lines 20 and 21, by inserting: “The money collected pursuant to this subsection must be paid into the uninsured employers’ claim fund.”.

    Amend sec. 32, page 19, line 20, after “employer.” by inserting: “The money collected pursuant to this subsection must be paid into the uninsured employers’ claim fund.”.

    Amend sec. 35, pages 21 and 22, by deleting lines 42 and 43 on page 21 and lines 1 through 3 on page 22, and inserting:

    “8.  Any party aggrieved by a [decision] determination regarding the administration of an assigned claim or a [decision] determination made by the division or by the [system] designated third-party administrator or insurer regarding any claim made pursuant to this section may appeal that [decision] determination within 60 days after the [decision] determination is rendered to the hearings division of the department of”.

    Amend sec. 40, page 24, by deleting lines 35 through 39 and inserting: “to 24, inclusive, 26 to 32, inclusive, 34, 35, 36, 38, 39, 40 and subsection 1 of section 41 of this act become effective on July 1, 1999.

    2.  Sections 1, 3, 4, 10, 12, 13, 15, 16, 17, 18, 25, 33, 37 and subsection 2 of section 41 of this act become effective at 12:01 a.m. on July 1, 1999.”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 510.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 580.

    Amend section 1, pages 1 and 2, by deleting lines 3 through 17 on page 1 and 1 through 21 on page 2, and inserting:

    “1.  Except as otherwise provided in subsection 3, every game warden, sheriff and other peace officer of this state and its political subdivisions may issue one or more of the following:

    (a) Educational material provided by the Tahoe Regional Planning Agency;

    (b) An oral advisory; or

    (c) A warning citation,

to a person who violates, within the portion of the region that is within the waters of this state, section 54.16(A), 54.16(B) or 81.2(E) of the Code of Ordinances adopted by the Tahoe Regional Planning Agency and in effect on April 1, 1999.

    2.  A game warden, sheriff or other peace officer who issues a warning citation pursuant to subsection 1 shall report the name and address of the person to whom such warning was issued to the Tahoe Regional Planning Agency.

    3.  An agency that provides law enforcement or other public safety services is not subject to the provisions of section 54.16(A), 54.16(B) or 81.2(E) of the Code of Ordinances adopted by the Tahoe Regional Planning Agency and in effect on April 1, 1999, when performing its official duties during an emergency or disaster on the waters of Lake Tahoe if such duties are performed in an effort to protect life or property.

    4.  As used in this section:

    (a) “Region” has the meaning ascribed to it in NRS 277.200.

    (b) “Waters of this state” means any waters within the territorial limits of this state.”.

    Amend the bill as a whole by deleting sections 3 and 4 and renumbering sec. 5 as sec. 3.

    Amend the title of the bill to read as follows:

    “AN ACT relating to regional planning; authorizing peace officers to issue a warning and provide certain information to persons who violate certain ordinances adopted by the Tahoe Regional Planning Agency; requiring peace officers who issue a warning to such persons to report certain information to the Tahoe Regional Planning Agency; and providing other matters properly relating thereto.”.

    Amend the summary of the bill, first line, by deleting “enforce” and inserting: “provide certain information to persons who violate”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senator Rhoads.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 520.

    Bill read second time.

    The following amendment was proposed by the Committee on Human Resources and Facilities:

    Amendment No. 529.

    Amend the bill as a whole by deleting sections 1 through 3 and renumbering sections 4 through 9 as sections 1 through 6.

    Amend sec. 4, page 2, line 37, after the period by inserting: “Clark County is therefore hereby authorized to discharge its obligation as a county, under general law, to serve the needs of its medically needy population by seeking waivers under the federal program of Medicaid to establish a suitable special program for that purpose.”.

    Amend sec. 5, page 2, line 38, by deleting: “5 to 26,” and inserting: “2 to 8,”.

    Amend sec. 5, pages 2 and 3, by deleting lines 41 through 43 on page 2 and lines 1 through 3 on page 3.

    Amend sec. 5, page 3, line 4, by deleting “6.” and inserting “2.”.

    Amend sec. 7, page 3, by deleting lines 20 through 23 and inserting:

    “2.  The members of the board shall serve for terms of 2 years.”.

    Amend the bill as a whole by deleting sections 10 and 11 and renumbering sec. 12 as sec. 7.

    Amend sec. 12, page 4, line 34, after “department” by inserting: “of human resources”.

    Amend the bill as a whole by deleting sections 13 through 26 and adding new sections designated sections 8 and 9, following sec. 12, to read as follows:

    “Sec. 8.  The board shall report to the 71st session of the Nevada Legislature, immediately upon the convening of that session, concerning its progress in obtaining waivers pursuant to section 7 of this act and any related recommendations for legislation.

    Sec. 9.  1.  This act becomes effective upon passage and approval for the purpose of appointing members of the board of directors pursuant to section 3 of this act and on July 1, 1999, for all other purposes.

    2.  This act expires by limitation on July 1, 2001. The terms of all members of the board of directors expire on that date.”.

    Senator Rawson moved the adoption of the amendment.

    Remarks by Senator Rawson.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 526.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 471.

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

    “Section 1.  NRS 540.041 is hereby amended to read as follows:

    540.041  1.  The administrator:

    (a) Must be selected with special reference to his training, experience, capability and interest in the field of water resource planning.

    (b) Except as otherwise provided in NRS 284.143, shall devote his entire time and attention to the business of his office and shall not pursue any other business or occupation or hold any other office of profit.

    (c) Shall coordinate the activities of the division.

    2.  The administrator is responsible for the administration of all provisions of law relating to the functions of the division.

    3.  The administrator may employ, within the limits of legislative appropriations, such staff as is necessary to the performance of his duties.

    4.  The administrator shall, not later than the fifth calendar day of each regular session of the legislature, submit to the director of the legislative counsel bureau for distribution to the legislature a written report summarizing the actions of the division taken pursuant to the provisions of NRS 540.051 and 540.101 during the preceding biennium.”.

    Amend section 1, page 1, line 2, by deleting “for the” and inserting: “to provide guidance and coordination for the development, management, conservation and”.

    Amend section 1, pages 1 and 2, by deleting lines 12 through 15 on page 1 and lines 1 through 5 on page 2, and inserting: “areas and the quality of life in the affected areas.

    4.  The provisions of the plan developed pursuant to subsection 1 must not be construed to supersede, replace, amend or add to the law of the State of Nevada.

    5.  A state or local governmental agency:

    (a) Shall consider the plan developed pursuant to subsection 1 when developing or implementing its mission, programs, plans and responsibilities regarding water resources; and

    (b) Is not bound by a recommendation or provision of the plan developed pursuant to subsection 1 unless it formally adopts the recommendation or provision.

    6.  The division shall submit to the legislature for its review and consideration:”.

    Amend section 1, page 2, by deleting lines 11 through 14 and inserting: “implemented.]”.

    Amend section 1, page 2, line 15, by deleting “5.” and inserting “[5.] 7.”.

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

    “Sec. 3.  NRS 540.111 is hereby amended to read as follows:

    540.111  1.  The advisory board on water resources planning and development, consisting of 15 members appointed by the governor, is hereby created within the division.

    2.  The governor shall appoint to the advisory board:

    (a) Six members who are representatives of the governing bodies of the county with the largest population in the state and the cities in that county;

    (b) One member who is a representative of the largest water utility in the county with the largest population in the state;

    (c) Two members who are representatives of the county with the second largest population in the state and the cities in that county;

    (d) One member who is a representative of the largest water utility in the county with the second largest population in the state;

    (e) One member who is representative of the general public; and

    (f) Four members, each of whom represents a different one of the following interests:

        (1) Farming;

        (2) Mining;

        (3) Ranching; and

        (4) Wildlife.

The governor shall make the appointments required by this subsection so that at least seven members of the advisory board are residents of the county with the largest population in the state, at least three members are residents of the county with the second largest population in the state and at least three members are residents of a county whose population is less than 100,000.

    3.  The members of the advisory board serve at the pleasure of the governor.

    4.  All vacancies on the advisory board must be filled in the same manner of appointment as the member who created the vacancy.

    5.  The members of the advisory board are entitled to receive a salary of $60 for each day’s attendance at a meeting of the advisory board and the travel and subsistence allowances provided by law for state officers and employees generally.

    6.  The advisory board shall, at its first meeting and annually thereafter, elect a chairman from among its members.

    7.  The advisory board may meet at least once in each calendar quarter and at other times upon the call of the chairman or a majority of the members.

    8.  A majority of the members of the advisory board constitutes a quorum. A quorum may exercise all of the powers and duties of the advisory board.

    9.  The advisory board shall:

    (a) Advise the administrator on matters relating to the planning and development of water resources;

    (b) Be informed on and interested in the administrative duties of the division and any legislation recommended by the division;

    (c) Advise and make recommendations through the division and the state department of conservation and natural resources to the governor and the legislature concerning policies for water planning and the development of water resources in this state;

    (d) Advise the administrator concerning the policies of the division and areas of emphasis for the planning of water resources; and

    (e) Review, and provide written recommendations to the division regarding, the plan [for the use of water resources] developed pursuant to NRS 540.101.

    Sec. 4.  The administrator of the division of water planning of the state department of conservation and natural resources shall report to the legislative commission on or before July 1, 1999, January 1, 2000, and July 1, 2000, regarding the actions of the division taken pursuant to NRS 540.101.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to water resources; revising the provisions regarding the plan relating to water resources developed by the division of water planning of the state department of conservation and natural resources; requiring governmental agencies to consider the plan when developing and implementing policies relating to water resources; requiring the administrator of the division to submit a written report to the legislature; requiring the administrator to report to the legislative commission at certain times; and providing other matters properly relating thereto.”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senators Rhoads and Titus.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 530.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 575.

    Amend section 1, page 1, by deleting lines 1 and 2 and inserting:

    “Section 1.  Chapter 271 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 15, inclusive, of this act.”.

    Amend the bill as a whole by deleting sec. 2 and renumbering sections 3 through 5 as sections 2 through 4.

    Amend sec. 3, page 1, line 9, after “the” by inserting “commercial improvement”.

    Amend sec. 3, page 1, line 17, by deleting “city.” and inserting “municipality.”.

    Amend sec. 4, page 2, line 3, by deleting “16” and inserting “10”.

    Amend sec. 5, page 2, by deleting line 5 and inserting:

    “Sec. 4.  “Commercial improvement district” means a district created by a governing body to provide activities or”.

    Amend the bill as a whole by deleting sections 6 and 7 and renumbering sec. 8 as sec. 5.

    Amend sec. 8, page 2, line 26, after “of a” by inserting “commercial improvement”.

    Amend the bill as a whole by deleting sec. 9 and renumbering sections 10 and 11 as sections 6 and 7.

    Amend sec. 10, pages 2 and 3, by deleting lines 30 through 42 on page 2 and lines 1 and 2 on page 3, and inserting:

    “Sec. 6.  1.  A municipality may create one or more commercial improvement districts pursuant to sections 2 to 15, inclusive, of this act. The boundaries of a proposed commercial improvement district may not overlap the boundaries of an existing commercial improvement district, but this section does not prohibit the boundaries of a commercial improvement district from overlapping the boundaries of other assessment districts established pursuant to this chapter or taxing districts established pursuant to other provisions of law.

    2.  Creation of a commercial improvement district may be initiated by filing with the clerk a plan and petition signed by owners of tracts constituting at least one-half of the basis used for the computation of assessments as set forth in the plan. For the purposes of this subsection, the property of a single owner may not be counted as constituting more than 10 percent of the basis.”.

    Amend sec. 11, page 3, by deleting lines 3 through 10 and inserting:

    “Sec. 7.  1.  The governing board, or the petitioners, shall prepare and file with the clerk a plan which contains:”.

    Amend sec. 11, page 3, line 11, by deleting “(d)” and inserting “(a)”.

    Amend sec. 11, page 3, line 12, after “of the” by inserting “commercial improvement”.

    Amend sec. 11, page 3, line 13, by deleting “(e)” and inserting “(b)”.

    Amend sec. 11, page 3, line 16, by deleting “5 years” and inserting “year”.

    Amend sec. 11, page 3, by deleting lines 18 through 31 and inserting:

    “(c) A list of any other special assessments that are currently being levied within the proposed district.

    (d) The name of any proposed association.”.

    Amend sec. 11, page 3, line 32, by deleting “(l)” and inserting “(e)”.

    Amend the bill as a whole by deleting sec. 12 and renumbering sec. 13 as sec. 8.

    Amend sec. 13, page 4, by deleting lines 22 through 24 and inserting:

    “Sec. 8.  1.  Except as otherwise provided in subsection 2, if the governing body finds that the public interest will benefit by the provision of the proposed activities or improvements in a definable district within the municipality, it shall cause an ordinance to be drafted”.

    Amend sec. 13, page 4, line 26, by deleting “1.” and inserting “(a)”.

    Amend sec. 13, page 4, line 28, by deleting “2.” and inserting “(b)”.

    Amend sec. 13, page 4, between lines 31 and 32, by inserting:

    “2.  If written remonstrances by the owners of tracts constituting one-third or more of the basis used for the computation of assessments are presented to the governing body, it shall not proceed with the plan. For the purposes of this subsection, the property of a single owner may not be counted as constituting more than 10 percent of the basis.”.

    Amend the bill as a whole by deleting sec. 14 and renumbering sections 15 through 17 as sections 9 through 11.

    Amend sec. 15, page 5, by deleting lines 15 through 33 and inserting:

    “Sec. 9.  1.  On or before June 30 of each year after the creation of a commercial improvement district, the governing body shall prepare and approve an estimate of the cost required during the next fiscal year and a proposed assessment roll assessing an amount not greater than the estimated cost against the benefited property. The assessments must be computed according to frontage or another uniform and quantifiable basis.

    2.  The governing body shall hold a public hearing upon the estimate of cost and the assessment roll. Notice must be given, and the hearing conducted, in the manner provided in NRS 271.380 and 271.385. The assessment may not exceed the amount stated in the proposed assessment roll unless a new hearing is held, after published and mailed notice, in the manner provided in NRS 271.305 and 271.310.

    3.  After the public hearing, the governing body shall confirm the assessments, as specified in the proposed assessment roll or as modified.

    4.  A commercial improvement district is not entitled to any distribution from the consolidated tax distribution account.”.

    Amend sec. 16, page 5, by deleting line 34 and inserting:

    “Sec. 10.  1.  A municipality that has created a commercial improvement district may contract with a”.

    Amend sec. 16, page 5, line 36, after the period by inserting: “If creation of the commercial improvement district was initiated by petition, the municipality shall contract for that purpose with the association named in the plan.”.

    Amend sec. 16, page 5, line 37, by deleting “the city” and inserting “a municipality”.

    Amend sec. 16, page 5, line 39, after the period, by inserting: “The association shall maintain liability insurance covering its activities.”.

    Amend sec. 16, page 5, line 40, by deleting “city” and inserting “municipality”.

    Amend sec. 16, page 5, by deleting lines 42 and 43 and inserting: “of NRS 354.626. The terms of the contract may extend:

    (a) Beyond the terms of office of members of the governing body; and

    (b) For the time necessary to cover the life of improvements and to fulfill financial commitments for equipment, services and related undertakings.”.

    Amend sec. 16, page 6, line 4, by deleting “city” and inserting “municipality”.

    Amend sec. 16, page 6, line 7, by deleting “city” and inserting “municipality”.

    Amend sec. 17, page 6, by deleting lines 9 through 21 and inserting:

    “Sec. 11.  1.  A contract executed pursuant to section 10 of this act must specify the approvals required for expenditures and provide for internal controls adequate to protect the assets of the commercial improvement district. The contract must provide for audit of the association by the municipality at the discretion of the municipality.

    2.  If an audit finds a misuse of money or any fraud in the activities of the association, the municipality may take control of any assets of the association related to the commercial improvement district.”.

    Amend the bill as a whole by deleting sections 18 and 19 and renumbering sections 20 through 23 as sections 12 through 15.

    Amend sec. 20, page 6, by deleting lines 30 through 35 and inserting:

    “Sec. 12.  A commercial improvement district may acquire, equip, improve, operate and maintain:

    1.  Public restrooms.

    2.  Facilities for outdoor lighting and heating.

    3.  Decorations.

    4.  Fountains.

    5.  Landscaping.

    6.  Facilities or equipment, or both, to enhance protection of persons and property within the district.

    7.  Ramps, sidewalks and plazas.

    8.  Rehabilitation or removal of existing structures.”.

    Amend sec. 21, page 6, line 37, by deleting “16” and inserting “10”.

    Amend sec. 21, page 6, lines 40 and 41, by deleting: “sections 12, 13 and 14” and inserting “section 9”.

    Amend sec. 22, page 7, line 1, after “a” by inserting “commercial improvement”.

    Amend sec. 23, page 7, line 15, by deleting: “sections 12, 13 and 14 of this act.” and inserting: “section 9 of this act. If the governing body determines that dissolution of the district is appropriate, it shall dissolve the district by resolution, effective not earlier than the 30th day after the hearing.”.

    Amend sec. 23, page 7, line 21, by deleting “16” and inserting “10”.

    Amend sec. 23, page 7, line 24, by deleting “June 15” and inserting “February 1”.

    Amend sec. 23, page 7, by deleting lines 28 and 29 and inserting:

    “(c) Any proposed changes to the boundaries of the district for that”.

    Amend sec. 23, page 8, line 2, by deleting “23,” and inserting “15,”.

    Amend the bill as a whole by adding a new section designated sec. 16, following sec. 23, to read as follows:

    “Sec. 16.  NRS 271.030 is hereby amended to read as follows:

    271.030  Except where the context otherwise requires, the definitions in NRS 271.035 to 271.250, inclusive, and sections 2 to 5, inclusive, of this act govern the construction of this chapter.”.

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

    “AN ACT relating to local improvements; providing for the creation of commercial improvement districts to finance certain activities and improvements; authorizing the imposition of special assessments; and”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Provides for creation of commercial improvement districts. (BDR 21‑26)”.

    Senator Care moved the adoption of the amendment.

    Remarks by Senator Care.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Joint Resolution No. 9.

    Resolution read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 519.

    Amend the resolution, page 1, by deleting lines 11 through 13 and inserting:

    “3.  The governor shall appoint a director of financial reporting. The director of financial reporting serves at the pleasure of the governor. The legislature may prescribe by law the qualifications and duties of the director of financial reporting. The state treasurer may submit recommendations for the appointment of the director of financial reporting to the governor.”.

    Amend the resolution, page 1, by deleting lines 15 through 18 and inserting:

    “Resolved, That if the legislature provides by law for a special election to be held throughout the State of Nevada on June 5, 2001, and if it is approved by the voters at the special election on June 5, 2001, the amendment made to section 19 of article 5 of the Constitution of the State of Nevada by this resolution becomes effective on June 28, 2001. Notwithstanding the amendatory provisions of this”.

    Amend the resolution, page 1, by deleting line 20 and inserting: “in 1998, expires on December 31, 2002, unless the person so elected”.

    Amend the resolution, page 2, line 1, by deleting “2006.” and inserting “2002.”.

    Amend the resolution, page 2, line 2, by deleting “2002,” and inserting “1998,”.

    Amend the resolution, page 2, line 3, by deleting “2006,” and inserting “2002,”.

    Amend the title of the resolution, by deleting the second line and inserting: “Nevada to eliminate the office of the state controller and to create the office of director of financial planning, the holder of which is appointed by and serves at the”.

    Amend the summary of the resolution, first line, by deleting: “provide that state controller is” and inserting: “eliminate office of state controller and to create office of director of financial planning, the holder of which is”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senators Rhoads and Neal.

    Amendment adopted.

    Resolution ordered reprinted, engrossed and to third reading.

    Senate Bill No. 38.

    Bill read second time.

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

    Amendment No. 650.

    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.  NRS 616A.465 is hereby amended to read as follows:

    616A.465  1.  Except as otherwise provided in this section, the division shall:

    (a) Regulate insurers pursuant to chapters 616A to 617, inclusive, of NRS; [and]

    (b) Investigate insurers regarding compliance with statutes and the division’s regulations[.] ;

    (c) Determine whether an employee leasing company is entitled to a certificate of registration pursuant to NRS 616B.673; and

    (d) Regulate employee leasing companies pursuant to the provisions of NRS 616B.670 to 616B.697, inclusive.

    2.  The commissioner is responsible for reviewing rates, investigating the solvency of insurers, authorizing private carriers pursuant to chapter 680A of NRS and certifying:

    (a) Self-insured employers pursuant to NRS 616B.300 to 616B.330, inclusive, and 616B.336;

    (b) Associations of self-insured public or private employers pursuant to NRS 616B.350 to 616B.446, inclusive; and

    (c) Third-party administrators pursuant to chapter 683A of NRS.

    3.  The department of administration is responsible for contested claims relating to industrial insurance pursuant to NRS 616C.310 to 616C.385, inclusive. The administrator is responsible for administrative appeals pursuant to NRS 616B.215.

    4.  The Nevada attorney for injured workers is responsible for legal representation of claimants pursuant to NRS 616A.435 to 616A.460, inclusive, and 616D.120.

    5.  The division is responsible for the investigation of complaints. If a complaint is filed with the division, the administrator shall cause to be conducted an investigation which includes a review of relevant records and interviews of affected persons. If the administrator determines that a violation may have occurred, the administrator shall proceed in accordance with the provisions of NRS 616D.120 and 616D.130.

    6.  As used in this section, “employee leasing company” has the meaning ascribed to it in NRS 616B.670.”.

    Amend sec. 3, page 2, line 27, by deleting: “a private carrier” and inserting: “the system and private carriers”.

    Amend sec. 3, page 2, line 33, after “which” by inserting: “the system or”.

    Amend sec. 3, page 2, by deleting line 38 and inserting:

        “(2) Other than the payment of premiums by the organization or association, the organization or association and each of its members are not”.

    Amend the bill as a whole by renumbering sections 5 through 7 as sections 12 through 14 and adding new sections designated sections 6 through 11, following sec. 4, to read as follows:

    “Sec. 6.  NRS 616B.670 is hereby amended to read as follows:

    616B.670  As used in NRS 616B.670 to 616B.697, inclusive, unless the context otherwise requires:

    1.  “Applicant” means a person seeking a certificate of [insurance] registration pursuant to NRS 616B.670 to 616B.697, inclusive, to operate an employee leasing company.

    2.  “Client company” means a company which leases employees, for a fee, from an employee leasing company pursuant to a written or oral agreement.

    3.  “Employee leasing company” means a company which, pursuant to a written or oral agreement:

    (a) Places any of the regular, full-time employees of a client company on its payroll and, for a fee, leases them to the client company on a regular basis without any limitation on the duration of their employment; or

    (b) Leases to a client company:

        (1) Five or more part-time or full-time employees; or

        (2) Ten percent or more of the total number of employees within a classification of risk established by the [system.] commissioner.

    Sec. 7.  NRS 616B.673 is hereby amended to read as follows:

    616B.673  1.  A person shall not operate an employee leasing company in this state unless he has complied with the provisions of NRS 616B.670 to 616B.697, inclusive. The [manager] administrator shall issue a certificate of [insurance] registration to each applicant who complies with the provisions of NRS 616B.670 to 616B.697, inclusive.

    2.  Any person who violates the provisions of subsection 1 is guilty of a misdemeanor.

    3.  Each certificate of [insurance] registration issued by the [manager] administrator pursuant to NRS 616B.670 to 616B.697, inclusive, expires 1 year after it is issued unless renewed before that date.

    Sec. 8.  NRS 616B.676 is hereby amended to read as follows:

    616B.676  An applicant for the issuance or renewal of a certificate of [insurance] registration must submit to the [manager] administrator a written application upon a form provided by the [manager.] administrator.

    Sec. 9.  NRS 616B.679 is hereby amended to read as follows:

    616B.679  1.  Each application must include:

    (a) The applicant’s name and title of his position with the employee leasing company.

    (b) The applicant’s age, place of birth and social security number.

    (c) The applicant’s address.

    (d) The business address of the employee leasing company.

    (e) The business address of the resident agent of the employee leasing company, if the applicant is not the resident agent.

    (f) If the applicant is a:

        (1) Partnership, the name of the partnership and the name, address, age, social security number and title of each partner.

        (2) Corporation, the name of the corporation and the name, address, age, social security number and title of each officer of the corporation.

    (g) Proof of:

        (1) The payment of any taxes required by chapter 364A of NRS.

        (2) The payment of any premiums for industrial insurance required by chapters 616A to 617, inclusive, of NRS.

        (3) The payment of contributions or payments in lieu of contributions required by chapter 612 of NRS.

        (4) Insurance coverage for any benefit plan from an insurer authorized pursuant to Title 57 of NRS that is offered by the employee leasing company to its employees.

        [(5) Membership in the National Staff Leasing Association, or its successor organization.]

    (h) Any other information the [manager] administrator requires.

    2.  Each application must be notarized and signed under penalty of perjury:

    (a) If the applicant is a sole proprietorship, by the sole proprietor.

    (b) If the applicant is a partnership, by each partner.

    (c) If the applicant is a corporation, by each officer of the corporation.

    3.  An applicant shall submit to the [manager] administrator any change in the information required by this section within 30 days after the change occurs. The [manager] administrator may revoke the certificate of [insurance] registration of an employee leasing company which fails to comply with the provisions of [this subsection. If the manager revokes the certificate of insurance and cancels the] NRS 616B.670 to 616B.697, inclusive.

    4.  If an insurer cancels an employee leasing company’s policy, the [manager] insurer shall immediately notify the administrator[, who shall proceed in accordance with the provisions of NRS 616D.110.] in writing. The notice must comply with the provisions of NRS 687B.310 to 687B.355, inclusive, and must be served personally on or sent by first-class mail or electronic transmission to the administrator.

    Sec. 10.  NRS 616B.694 is hereby amended to read as follows:

    616B.694  The [manager, in cooperation with the administrator of the employment security division of the department of employment, training and rehabilitation, shall, and the commissioner of insurance may,] administrator may adopt regulations to carry out the provisions of NRS 616B.670 to 616B.697, inclusive.

    Sec. 11.  NRS 616B.697 is hereby amended to read as follows:

    616B.697  An action for damages caused by the failure of an employee leasing company to comply with the provisions of NRS 616B.670 to 616B.697, inclusive, may be brought against any person who is required to sign the application for a certificate of [insurance] registration for the employee leasing company.”.

    Amend sec. 5, page 4, line 1, after “subsection.” by inserting: “The written notice does not create any right to appeal the contents of that notice.”.

    Amend sec. 7, page 4, line 23, by deleting “section 5” and inserting: “sections 6 to 12, inclusive,”.

    Amend sec. 7, page 4, by deleting line 25 and inserting:

    “2.  Sections 1 to 5, inclusive, and 13 of this act become effective at 12:01 a.m. on”.

    Amend the title of the bill, sixth line, after “lapse;” by inserting: “revising the provisions concerning employee leasing companies;”.

    Amend the summary of the bill, first line, by deleting: “duties and powers of insurers who provide”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 163.

    Bill read second time.

    The following amendment was proposed by the Committee on Human Resources and Facilities:

    Amendment No. 452.

    Amend the bill as a whole by deleting sections 1 through 5 and the text of repealed sections and adding new sections designated sections 1 through 9, following the enacting clause, to read as follows:

    “Section 1.  NRS 449.249 is hereby amended to read as follows:

    449.249  1.  [The board shall adopt regulations establishing a procedure for the registration by the health division of homes for individual residential care.

    2.  The health division shall register any home for individual residential care that complies with the regulations adopted pursuant to subsection 1.] A person, state or local government or agency thereof shall not operate a home for individual residential care without first obtaining a license for the home from the health division. An application for the license must be made in the manner provided in NRS 449.040.

    2.  The state board of health shall adopt minimal standards for licensing that provide for care and sanitation to prevent the abuse, neglect or exploitation of residents of homes for individual residential care.

    Sec. 2.  NRS 449.2496 is hereby amended to read as follows:

    449.2496  1.  A person [shall not operate or maintain in this state] who operates or maintains a home for individual residential care [unless the home is registered with] without a license issued by the health division pursuant to NRS 449.249[.

    2.  A person who commits a second or subsequent violation of subsection 1 is guilty of a misdemeanor.] is liable for a civil penalty, to be recovered by the attorney general in the name of the health division, for the first offense of $10,000 and for a second or subsequent offense of not less than $10,000 nor more than $20,000.

    2.  Unless otherwise required by federal law, the health division shall deposit civil penalties collected pursuant to this section into a separate account in the state general fund in the state treasury to be used for the protection of the health, safety, well-being and property of patients, including residents of facilities found deficient by the health division.

    3.  A person against whom a civil penalty is assessed by the court pursuant to subsection 1:

    (a) Shall move, at his own expense, all persons receiving services in the home for individual residential care to a licensed home for individual residential care.

    (b) May not apply for a license to operate a home for individual residential care until 6 months have elapsed since the penalty was assessed.

    Sec. 3.  NRS 449.700 is hereby amended to read as follows:

    449.700  1.  Every medical facility , [and] facility for the dependent and home for individual residential care must provide the services necessary to treat properly a patient in a particular case or must be able to arrange the transfer of the patient to another facility or home which can provide that care.

    2.  A patient may be transferred to another facility or home only if the patient has received an explanation of the need to transfer him and the alternatives available, unless his condition necessitates an immediate transfer to a facility for a higher level of care and he is unable to understand the explanation.

    Sec. 4.  NRS 449.705 is hereby amended to read as follows:

    449.705  1.  If a patient in a medical facility or facility for the dependent is transferred to another medical facility or facility for the dependent, a division facility or a physician licensed to practice medicine, the facility shall forward a copy of the medical records of the patient, on or before the date the patient is transferred, to the other medical facility or facility for the dependent, the division facility or the physician. The facility is not required to obtain the oral or written consent of the patient to forward a copy of the medical records.

    2.  If a person receiving services in a home for individual residential care is transferred to another home, the home shall forward a copy of his medical records to the other home in the manner provided in subsection 1.

    3.  As used in this section:

    (a) “Division facility” means any unit or subunit operated by a division of the department of human resources pursuant to Title 39 of NRS.

    (b) “Medical records” includes a medical history of the patient, a summary of the current physical condition of the patient and a discharge summary which contains the information necessary for the proper treatment of the patient.

    Sec. 5.  NRS 449.710 is hereby amended to read as follows:

    449.710  Every patient of a medical facility , [or] facility for the dependent or home for individual residential care has the right to:

    1.  Receive information concerning any other medical or educational facility or facility for the dependent associated with the facility at which he is a patient which relates to his care.

    2.  Obtain information concerning the professional qualifications or associations of the persons who are treating him.

    3.  Receive the name of the person responsible for coordinating his care in the facility[.] or home.

    4.  Be advised if the facility in which he is a patient proposes to perform experiments on patients which affect his own care or treatment.

    5.  Receive from his physician a complete and current description of his diagnosis, plan for treatment and prognosis in terms which he is able to understand. If it is not medically advisable to give this information to the patient, the physician shall:

    (a) Provide the information to an appropriate person responsible for the patient; and

    (b) Inform that person that he shall not disclose the information to the patient.

    6.  Receive from his physician the information necessary for him to give his informed consent to a procedure or treatment. Except in an emergency, this information must not be limited to a specific procedure or treatment and must include:

    (a) A description of the significant medical risks involved;

    (b) Any information on alternatives to the treatment or procedure if he requests that information;

    (c) The name of the person responsible for the procedure or treatment; and

    (d) The costs likely to be incurred for the treatment or procedure and any alternative treatment or procedure.

    7.  Examine the bill for his care and receive an explanation of the bill, whether or not he is personally responsible for payment of the bill.

    8.  Know the [facility’s] regulations of the facility or home concerning his conduct at the facility[.] or home.

    Sec. 6.  NRS 449.720 is hereby amended to read as follows:

    449.720  Every patient of a medical facility, [or] facility for the dependent or home for individual residential care has the right to:

    1.  Receive considerate and respectful care.

    2.  Refuse treatment to the extent permitted by law and to be informed of the consequences of that refusal.

    3.  Refuse to participate in any medical experiments conducted at the facility.

    4.  Retain his privacy concerning his program of medical care. Discussions of a patient’s care, consultation with other persons concerning the patient, examinations or treatments, and all communications and records concerning the patient, except as otherwise provided in NRS 108.640 and 449.705 and chapter 629 of NRS, are confidential. The patient must consent to the presence of any person who is not directly involved with his care during any examination, consultation or treatment.

    5.  Have any reasonable request for services reasonably satisfied by the facility or home considering its ability to do so.

    6.  Receive continuous care from the facility[.] or home. The patient must be informed:

    (a) Of his appointments for treatment and the names of the persons available at the facility or home for those treatments; and

    (b) By his physician or an authorized representative of the physician, of his need for continuing care.

    Sec. 7.  NRS 449.730 is hereby amended to read as follows:

    449.730  Every medical facility, [and] facility for the dependent and home for individual residential care shall inform each patient or his legal representative, upon his admission to the facility[,] or home, of the patient’s rights as listed in NRS 449.700, 449.710 and 449.720.

    Sec. 8.  1.  Notwithstanding the provisions of NRS 449.249, as amended by this act, and NRS 449.030, a person who is operating a Home for Individual Residential Care on July 1, 1999, which is registered with the Health Division of the Department of Human Resources pursuant to NRS 449.249, may continue to operate the Home for Individual Residential Care pursuant to the provisions of NRS 449.0105 to 449.2496, inclusive, and the regulations adopted pursuant thereto, as those provisions existed on July 1, 1999, until January 1, 2000, without becoming licensed as a Home for Individual Residential Care, but must either become so licensed on or before January 1, 2000, or cease operation on that date.

    2.  On or before August 1, 1999, the Health Division of the Department of Human Resources shall provide a copy of the provisions of subsection 1 to each Home for Individual Residential Care that is registered pursuant to NRS 449.249 on July 1, 1999.

    3.  The Health and Aging Services Divisions of the Department of Human Resources shall continue to perform the duties prescribed by the provisions of NRS 449.0105 to 449.2496, inclusive, and the regulations adopted pursuant thereto, as those provisions existed on July 1, 1999, as to each Home for Individual Residential Care which continues to operate after July 1, 1999, pursuant to subsection 1 until January 1, 2000, or the date on which there are no such remaining homes, whichever is earlier.

    Sec. 9.  This act becomes effective on July 1, 1999.”.

    Amend the title of the bill, third line, by deleting: “residential facilities for groups”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Provides for licensure of homes for individual residential care. (BDR 40‑485)”.

    Senator Rawson moved the adoption of the amendment.

    Remarks by Senator Rawson.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 211.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 404.

    Amend the bill as a whole by deleting sections 1 through 14 and adding new sections designated sections 1 through 7 and the text of the repealed section, following the enacting clause, to read as follows:

    “Section 1.  Chapter 502 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  Before tags are issued for a special season, the division shall contract with a private entity to conduct a drawing and to award the tags. The drawing must be conducted using a computer program that awards tags based on a random order of selection. The division shall solicit bids for the contract pursuant to the provisions of chapter 333 of NRS.

    2.  The division shall:

    (a) Provide to the private entity to whom a contract is awarded pursuant to the provisions of subsection 1 any applications for tags, documents or other information required by the private entity to conduct the drawing; and

    (b) Otherwise cooperate with the private entity in conducting the drawing.

    3.  Within 10 days after the drawing is completed, the private entity shall submit the results of the drawing to the division.

    4.  If no private entity qualifies for the awarding of the contract specified in subsection 1, the division shall conduct a drawing to award tags for a special season in the manner set forth in the regulations adopted by the commission pursuant to the provisions of subsection 5.

    5.  The commission shall adopt regulations necessary to carry out the provisions of this section, including regulations that prescribe the manner in which the division must conduct a drawing specified in subsection 1 if no private entity qualifies for the awarding of the contract.

    Sec. 2.  NRS 242.131 is hereby amended to read as follows:

    242.131  1.  The department shall provide state agencies and elected state officers with all of their required design of information systems. All agencies and officers must use those services and equipment, except as otherwise provided in subsection 2.

    2.  The following agencies may negotiate with the department for its services or the use of its equipment, subject to the provisions of this chapter, and the department shall provide [such] those services and the use of [such] that equipment as may be mutually agreed:

    (a) [Court] The court administrator;

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

    (c) [Department] The department of transportation;

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

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

    (f) The legislative counsel bureau;

    [(f) State]

    (g) The state industrial insurance system;

    [(g) State controller;

    (h) State]

    (h) The state controller;

    (i) The state gaming control board and Nevada gaming commission; and

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

    3.  Any state agency or elected state officer who uses the services of the department and desires to withdraw substantially from that use must apply to the director for approval. The application must set forth justification for the withdrawal. If the director denies the application, the agency or officer must:

    (a) If the legislature is in regular or special session, obtain the approval of the legislature by concurrent resolution.

    (b) If the legislature is not in regular or special session, obtain the approval of the interim finance committee. The director shall, within 45 days after receipt of the application, forward the application together with his recommendation for approval or denial to the interim finance committee. The interim finance committee has 45 days after the application and recommendation are submitted to its secretary within which to consider the application. Any application which is not considered by the committee within the 45-day period shall be deemed approved.

    4.  If the demand for services or use of equipment exceeds the capability of the department to provide them, the department may contract with other agencies or independent contractors to furnish the required services or use of equipment and is responsible for the administration of the contracts.

    Sec. 3.  Chapter 574 of NRS is hereby amended by adding thereto a new section to read as follows:

    A person who willfully and unjustifiably:

    1.  Kills, injures or tampers or interferes with a dog owned by another person that is used in an exhibition, show, contest or other event in which the skill, breeding or stamina of the dog is judged or examined; or

    2.  Sets on foot, instigates, engages in or in any way furthers an act by which a dog specified in subsection 1 is killed, injured or tampered or interfered with,

is guilty of a category E felony and shall be punished in accordance with the provisions of NRS 193.130.

    Sec. 4.  NRS 574.050 is hereby amended to read as follows:

    574.050  As used in NRS 574.050 to 574.200, inclusive[:] , and section 3 of this act:

    1.  “Animal” does not include the human race, but includes every other living creature.

    2.  “Torture” or “cruelty” includes every act, omission or neglect, whereby unjustifiable physical pain, suffering or death is caused or permitted.

    Sec. 5.  NRS 574.100 is hereby amended to read as follows:

    574.100  Except as otherwise provided in section 3 of this act or in any case involving a willful or malicious act for which a greater penalty is provided by NRS 206.150, a person who:

    1.  Overdrives, overloads, tortures or cruelly beats or unjustifiably injures, maims, mutilates or kills any animal, whether belonging to himself or to another;

    2.  Deprives any animal of necessary sustenance, food or drink, or neglects or refuses to furnish it such sustenance or drink;

    3.  Causes, procures or permits any animal to be overdriven, overloaded, tortured, cruelly beaten, or unjustifiably injured, maimed, mutilated or killed, or to be deprived of necessary food or drink;

    4.  Willfully sets on foot, instigates, engages in, or in any way furthers an act of cruelty to any animal, or any act tending to produce such cruelty; or

    5.  Abandons an animal in circumstances other than those prohibited in NRS 574.110,

is guilty of a misdemeanor.

    Sec. 6.  Section 17 of chapter 507, Statutes of Nevada 1991, at page 1578, is hereby repealed.

    Sec. 7.  The amendatory provisions of this act do not apply to offenses that were committed before October 1, 1999.

TEXT OF REPEALED SECTION

Section 17 of chapter 507, Statutes of Nevada 1991:

    Sec. 17.  1.  The department of wildlife shall solicit bids in accordance with state law for the development of a computer program for the issuance of tags for special seasons.

    2.  The request for proposals must indicate, and any contract awarded must provide, that the following conditions apply to the contract for the development of a computer program pursuant to this section:

    (a) The contract must result in the establishment of a complete system, that can be readily changed, of applications and drawings for, and the issuance of, tags.

    (b) The contract must allow access to and the use of existing data and files of the department, to the extent necessary to carry out the contract.

    (c) The department must acquire ownership of the computer program at the end of the term of the contract.

    3.  The department must award the contract for the development of the computer program to a private entity unless no qualified bids are received. If no qualified bids are received, the program may be developed by a public agency.

    4.  Before submitting a contract proposed pursuant to this section to the state board of examiners for approval, the director of the department of wildlife shall submit the qualified bid or bids received by the department to the interim finance committee for its advisory review.

    5.  The program developed pursuant to this section must be used for all drawings of tags on or after January 1, 1993, for special seasons.

    6.  As used in this section, “special season” has the meaning ascribed to it in NRS 501.085.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to animals; requiring the division of wildlife of the state department of conservation and natural resources to contract with a private entity to conduct a drawing to award tags for special seasons; prohibiting a person from willfully and unjustifiably killing, injuring or interfering with a dog used in certain events; providing a penalty; and providing other matters properly relating thereto.”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senator Rhoads.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 287.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 446.

    Amend the bill as a whole by adding a preamble, immediately preceding the enacting clause, to read as follows:

    “Whereas, It is vitally important to the economy of a county and to the general welfare of the inhabitants of the county that the board of county commissioners have the ability and discretion to impose a tax or tax increase upon certain products, such as jet fuel, which are sold within the borders of the county; and

    Whereas, The imposition of a tax or tax increase upon jet fuel by a board of county commissioners has ramifications beyond the borders of the county because such an increase may cause an increase in airfare prices that results in a decrease in the accessibility of affordable air service for residents of the State of Nevada and tourists and other visitors from outside the state; and

    Whereas, The accessibility of affordable air service in the State of Nevada is crucial to the vitality of tourism, one of the primary industries in this state, and hence is crucial to the economy of the State of Nevada and the general welfare of the inhabitants of this state; and

    Whereas, A fine line separates a reasonable tax imposed upon jet fuel to maintain or increase the general welfare of the inhabitants of a county from an unduly burdensome tax imposed upon jet fuel that adversely affects the tourism industry in Nevada and decreases the economy of this state and the general welfare of its inhabitants; and

    Whereas, A board of county commissioners is in the best position to determine the county’s need for revenue and whether such revenue should come from a tax or tax increase upon jet fuel, and when making such a determination should consider whether imposing a tax or tax increase upon jet fuel crosses the line from reasonable and appropriate tax to unduly burdensome tax; and

    Whereas, It is the intent of the legislature by adopting this act to increase the amount of discretion a board of county commissioners has to impose a tax or tax increase upon jet fuel but it is not the intent of the legislature to authorize a county to impose unduly burdensome taxes which have a detrimental effect upon the tourism industry in the State of Nevada; and

    Whereas, The legislature trusts that a board of county commissioners will consider the effects of a tax or tax increase upon jet fuel on the price of air travel and the tourism industry in this state and will consult with the airline industry when considering the imposition or increase of such a tax before it exercises the discretion granted in this act; now, therefore,”.

    Senator McGinness moved the adoption of the amendment.

    Remarks by McGinness.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 349.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 317.

    Amend sec. 3, page 1, line 8, after “tank” by inserting: “that contains the special fuel”.

    Amend the bill as a whole by renumbering sections 7 through 10 as sections 11 through 14 and adding new sections designated sections 7 through 10, following sec. 6, to read as follows:

    “Sec. 7.  NRS 366.197 is hereby amended to read as follows:

    366.197  For the purpose of taxing the sale or use of compressed natural gas , [or liquefied petroleum gas,] 125 cubic feet of natural gas [orliquefied petroleum gas] shall be deemed to equal 1 gallon of special fuel.

    Sec. 8.  NRS 366.207 is hereby amended to read as follows:

    366.207  1.  Except as otherwise provided in subsections 2 and 3, each special fuel supplier who sells or distributes special fuel to which dye has not been added shall, at the time the special fuel is purchased, collect the tax imposed pursuant to NRS 366.190.

    2.  A special fuel supplier may sell special fuel to a purchaser without collecting the tax imposed pursuant to NRS 366.190 if the purchaser of the special fuel:

    (a) Has been issued a permit by the department pursuant to NRS 366.397; and

    (b) Elects to defer payment of the tax.

    3.  A special fuel supplier shall not collect the tax imposed pursuant to NRS 366.190 if the purchaser of the special fuel is:

    (a) A special fuel supplier;

    (b) A special fuel exporter; or

    (c) A special fuel dealer.

    4.  A special fuel supplier who sells special fuel to any other special fuel supplier or special fuel dealer shall keep such records of the transaction as the department may require. The department shall adopt regulations setting forth:

    (a) The records which must be kept by the special fuel supplier pursuant to this subsection; and

    (b) The period for which those records must be kept by the special fuel supplier.

    5.  If, within a period of 6 months, a person purchases not less than 200 gallons of special fuel in this state which is used for a purpose that is exempt from the payment of the tax on special fuel pursuant to NRS 366.200, he may apply to the department for a refund in the manner prescribed in subsection 6 of NRS 366.650.

    6.  Any person who resells, for a taxable purpose, special fuel that was exempt from the tax imposed by this chapter and to which dye has not been added shall collect the tax and remit it to the department.

    Sec. 9.  NRS 366.390 is hereby amended to read as follows:

    366.390  1.  Except as otherwise provided in subsection [3,] 2, the department shall allow each special fuel supplier [or special fuel dealer] to retain an amount equal to 2 percent of the amount of the tax collected by the special fuel supplier [or special fuel dealer] as a fee for making the collection.

    2.  [If the special fuel for which the tax was collected by the special fuel supplier is sold to a purchaser who has been issued a permit pursuant to NRS 366.397, the special fuel supplier:

    (a) Is entitled to retain one-half of the fee; and

    (b) Shall distribute one-half of the fee to the purchaser. If the fuel is resold by that purchaser to another purchaser who has been issued a permit pursuant to NRS 366.397, the purchaser who sells the special fuel to the subsequent purchaser shall distribute to that subsequent purchaser one-half of the fee he received from the special fuel supplier.

   3.]  A special fuel supplier who fails to submit a tax return pursuant to NRS 366.383 or a special fuel dealer who fails to submit a tax return pursuant to NRS 366.386 is not entitled to the fee authorized pursuant to subsection 1 for any month for which a tax return is not filed.

    Sec. 10.  NRS 366.550 is hereby amended to read as follows:

    366.550  1.  An applicant for or holder of a special fuel supplier’s or special fuel dealer’s license shall provide a bond executed by him as principal, and by a corporation qualified pursuant to the laws of this state as surety, payable to the State of Nevada, and conditioned upon the faithful performance of all of the requirements of this chapter and upon the punctual payment of all excise taxes, penalties and interest due to the State of Nevada. The total amount of the bond or bonds of any holder of a special fuel supplier’s or special fuel dealer’s license must be fixed by the department at not less than three times the estimated maximum monthly tax, determined in such a manner as the department deems proper, but the amount must not be less than $1,000[.] for a special fuel supplier and must not be less than $100 for a special fuel dealer. If the department determines that a person is habitually delinquent in the payment of amounts due to the department, it may increase the amount of his security to not more than five times the estimated maximum monthly tax. When cash or a savings certificate, certificate of deposit or investment certificate is used, the amount required must be rounded off to the next larger integral multiple of $100.

    2.  No recovery on any bond, nor the execution of any new bond, nor the suspension or revocation of any special fuel supplier’s or special fuel dealer’s license affects the validity of any bond.

    3.  In lieu of a bond or bonds, an applicant for or holder of a special fuel supplier’s or special fuel dealer’s license may deposit with the state treasurer, under such terms as the department may prescribe, a like amount of lawful money of the United States or any other form of security authorized by NRS 100.065. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the certificate must state that the amount is unavailable for withdrawal except upon order of the department.

    4.  If the holder of a special fuel supplier’s or special fuel dealer’s license is required to provide a bond of more than $5,000, the department may reduce the requirements for the bond to not less than $5,000 upon the supplier’s or dealer’s faithful performance of all the requirements of this chapter and the punctual payment of all taxes due the State of Nevada for the 3 preceding calendar years.

    5.  The department shall immediately reinstate the original requirements for a bond for a holder of a special fuel supplier’s or special fuel dealer’s license upon his:

    (a) Lack of faithful performance of the requirements of this chapter; or

    (b) Failure to pay punctually all taxes, fees, penalties and interest due the State of Nevada.”.

    Amend the title of the bill, fourth line, after “circumstances;” by inserting: “eliminating the conversion factor for liquefied petroleum gas used in the calculation of the tax on special fuel; requiring a person who resells special fuel that is exempt from the tax on special fuel to collect and remit the tax to the department of motor vehicles and public safety under certain circumstances; authorizing a special fuel supplier to retain a portion of the tax collected as a fee in certain circumstances; reducing the value of the bond that a special fuel dealer is required to provide in certain circumstances;”.

    Senator McGinness moved the adoption of the amendment.

    Remarks by Senator McGinness.


    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 363.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 403.

    Amend sec. 3, page 1, line 7, by deleting “chief” and inserting administrator”.

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

    “Sec. 3.5.  “Commission” means the state environmental commission.”.

    Amend sec. 5, page 1, line 12, by deleting “Is” and inserting: “Except as otherwise provided in section 11.5 of this act, is”.

    Amend sec. 5, page 1, line 14, by deleting “proceeding by” and inserting: “ongoing enforcement action of”.

    Amend sec. 6, page 2, line 3, by deleting “under” and inserting “pursuant to”.

    Amend sec. 11, page 2, by deleting lines 16 and 17 and inserting:

    “Sec. 11.  “Responsible party” means:

    1.  A current or former owner or operator of a site or facility who caused or contributed to the release of a hazardous substance at the site or facility; and

    2.  A generator or transporter of a hazardous substance who caused or contributed to the release of the hazardous substance at a site or facility.”.

    Amend the bill as a whole by adding a new section designated sec. 11.5, following sec. 11, to read as follows:

    “Sec. 11.5.  Real property located in this state that is listed on the National Priorities List contained in Appendix B of Part 300 of Title 40 of the Code of Federal Regulations shall be deemed to be eligible property if:

    1.  The property satisfies the elements of the definition of eligible property set forth in subsections 2 and 3 of section 5 of this act; and

    2.  The listing of the property on the National Priorities List is unrelated to the hazardous substance that a participant intends to remove from or remediate on the property pursuant to a remedial agreement submitted pursuant to section 13 of this act.”.

    Amend sec. 12, page 2, by deleting lines 22 through 34 and inserting:

    “(a) An environmental assessment of the property, including the source, nature and location of all hazardous substances known to, or reasonably believed by, the applicant to be located on the property;

    (b) A proposed general plan for removal or remediation on the property; and

    (c) The application fee and any other information required pursuant to the regulations adopted by the commission pursuant to section 22.5 of this act.”.

    Amend sec. 12, pages 2 and 3, by deleting lines 40 through 43 on page 2 and lines 1 through 6 on page 3.

    Amend sec. 12, page 3, line 7, by deleting “4.” and inserting “3.”.

    Amend sec. 13, page 3, by deleting lines 18 and 19 and inserting:

        “(2) Specifies the substance to be removed from or remediated on the property, the actions to be taken and the standards to be met with respect to removal or remediation, and the uses for which the property will not be suitable after the removal or remediation is carried out; and”.

    Amend sec. 13, page 3, by deleting lines 28 through 33 and inserting:

        “(2) Not cause, contribute to or worsen any release or threatened release of a hazardous substance on the property;

        (3) Adequately protect human health and the environment; and

        (4) Comply with any applicable regulations adopted by the commission pursuant to section 22.5 of this act; and”.

    Amend sec. 14, page 4, by deleting line 12 and inserting: “substances, the participant”.

    Amend sec. 14, page 4, line 21, by deleting “under” and inserting “by”.

    Amend sec. 14, page 4, line 27, by deleting “supervising consultant’s” and inserting “participant’s”.

    Amend sec. 15, page 4, line 35, by deleting “under” and inserting “pursuant to”.

    Amend sec. 15, pages 4 and 5, by deleting lines 39 through 42 on page 4 and lines 1 through 4 on page 5, and inserting: “remains effective despite a subsequent change in state or federal law.”.

    Amend sec. 16, page 5, line 17, by deleting “or”.

    Amend sec. 16, page 5, line 19, by deleting “activity.” and inserting: “activity; or

    6.  With respect to a use of the property for which the property is no longer suitable after the removal or remediation has been carried out, as identified pursuant to subparagraph (2) of paragraph (a) of subsection 2 of section 13 of this act.”.

    Amend sec. 19, page 6, line 26, by deleting “under” and inserting “pursuant to”.

    Amend sec. 20, page 6, line 31, by deleting “under” and inserting “pursuant to”.

    Amend sec. 20, page 6, line 33, by deleting “under” and inserting “pursuant to”.

    Amend sec. 20, page 6, line 36, by deleting “under” and inserting “pursuant to”.

    Amend sec. 21, page 7, lines 5 and 6, by deleting “a serious” and inserting: “an imminent and substantial”.

    Amend sec. 22, page 7, line 18, by deleting “state environmental”.

    Amend sec. 22, page 7, line 19, by deleting “under” and inserting “pursuant to”.

    Amend the bill as a whole by adding a new section designated sec. 22.5, following sec. 22, to read as follows:

    “Sec. 22.5.  The commission shall adopt such regulations as the commission determines are necessary to carry out the provisions of sections 2 to 23, inclusive, of this act. Regulations adopted pursuant to this section:

    1.  Must include, without limitation, provisions relating to the:

    (a) Duties and functions of consultants who are certified, or exempt from the requirement of certification, as provided by NRS 459.500;

    (b) Financial capability and responsibility required of a participant; and

    (c) Required form and content of and any fee required to be submitted with an application, certificate or remedial agreement.

    2.  May include, without limitation, provisions relating to the issuance of a temporary, interim or partial certificate of completion or progress with respect to a remedial agreement.”.

    Amend sec. 23, page 7, line 20, by deleting: “use his best efforts” and inserting: “make a good faith effort”.

    Amend the bill as a whole by adding a new section designated sec. 23.5, following sec. 23, to read as follows:

    “Sec. 23.5.  NRS 459.530 is hereby amended to read as follows:

    459.530  1.  All proceeds from agreements entered into pursuant to NRS 459.505, all application fees collected pursuant to section 12 of this act, all reimbursements and penalties recovered pursuant to NRS 459.537, and all fees collected, all civil penalties imposed and all interest accrued pursuant to NRS 459.400 to 459.600, inclusive, must be deposited with the state treasurer for credit to the account for the management of hazardous waste, which is hereby created in the state general fund. The money in the account must be paid as other claims against the state are paid.

    2.  The state treasurer shall account separately for each of the fees collected pursuant to NRS 459.512.”.

    Amend sec. 25, page 8, line 37, by deleting “1 and” and inserting: “1, 22.5 and”.

    Amend sec. 25, page 8, line 39, after “inclusive,” by inserting “23.5”.

    Senator Titus moved the adoption of the amendment.

    Remarks by Senators Titus and Raggio.

    Amendment adopted.

    Senator Raggio moved that Senate Bill No. 363 be re-referred to the Committee on Finance upon return from reprint.

    Remarks by Senator Raggio.

    Motion carried.

    Bill ordered reprinted, engrossed and to the Committee on Finance.

    Senate Bill No. 394.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 518.

    Amend sec. 3, page 1, line 6, by deleting “the four” and inserting: “at least the three”.

    Amend sec. 5, page 2, line 16, by deleting:

    “1.  Except as otherwise provided in subsection 2, in” and inserting “In”.

    Amend sec. 5, page 2, by deleting lines 20 through 23.

    Amend sec. 6, page 2, by deleting lines 32 through 41.

    Amend sec. 6, page 3, line 18, after “4.” by inserting: “Not more than once every 2 years, the regional land use coordinating entity shall:

    (a) Prepare a report that summarizes the policies related to land use, transportation and air quality which it has adopted and which the local air pollution control board and the regional transportation commission have adopted; and

    (b) Submit a copy of the report to the:

        (1) County clerk of the appropriate county;

        (2) Division of environmental protection of the state department of conservation and natural resources;

        (3) Division of state lands of the state department of conservation and natural resources; and

        (4) Department of transportation.

    5.”.

    Amend sec. 8, pages 3 and 4, by deleting lines 39 through 43 on page 3 and lines 1 through 4 on page 4.

    Amend sec. 10, page 4, by deleting lines 32 through 40.

    Amend the bill as a whole by deleting sec. 14 and renumbering sec. 15 as sec. 14.

    Amend sec. 15, page 8, line 1, by deleting: “sections 13 and 14” and inserting “section 13”.

    Amend the title of the bill, first line, by deleting: “in skeleton form”.

    Senator Titus moved the adoption of the amendment.

    Remarks by Senator Titus.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 423.

    Bill read second time.

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

    Amendment No. 482.

    Amend the bill as a whole by deleting section 1 and adding new sections designated sections 1 through 17, following the enacting clause, to read as follows:

    “Section 1.  Chapter 624 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.

    Sec. 2.  1.  If the governing body of a city or county or an agent thereof determines that a contractor has violated a provision of any building code adopted by that governing body and has failed to comply with any order issued by the governing body requiring the contractor to correct the violation, the governing body shall, not later than 10 days after making that determination, notify the board in writing of its determination.

    2.  Upon receipt of a notice required pursuant to subsection 1, the board shall conduct an investigation to determine whether any action may be taken against the contractor.

    3.  A member of the board or a person authorized by the board may enter the site of a construction project or any other private property during regular business hours to conduct an investigation or to carry out its duties pursuant to the provisions of this chapter.

    Sec. 3.  1.  The board shall, by regulation, establish a program to provide continuing education for licensed contractors.

    2.  The regulations adopted pursuant to the provisions of subsection 1 must require each licensed contractor to comply with the requirements for continuing education as a prerequisite for the renewal of his license by the board.

    Sec. 4.  1.  Before issuing a license to an applicant who will engage in residential construction or renewing the license of a contractor who engages in residential construction, the board shall require the applicant or contractor to establish his financial responsibility by submitting to the board:

    (a) A financial statement prepared by a certified public accountant who is licensed pursuant to the provisions of chapter 628 of NRS; and

    (b) A statement setting forth:

        (1) The number of building permits issued to and construction projects completed by the contractor for the immediately preceding year; and

        (2) Any other information required by the board.

The statement submitted pursuant to this paragraph must be provided on a form approved by the board.

    2.  In addition to the requirements set forth in subsection 1, the board may require a contractor who engages in residential construction to establish his financial responsibility at any time.

    Sec. 5.  NRS 624.260 is hereby amended to read as follows:

    624.260  1.  The board shall require an applicant or a licensee to show such a degree of experience, financial responsibility and such general knowledge of the building, safety, health and lien laws of the State of Nevada and the rudimentary principles of the contracting business as the board deems necessary for the safety and protection of the public.

    2.  An applicant or a licensee may qualify in regard to his experience and knowledge in the following ways:

    (a) If a natural person, he may qualify by personal appearance or by the appearance of his responsible managing employee.

    (b) If a copartnership, a corporation or any other combination or organization, it may qualify by the appearance of the responsible managing officer or member of the personnel of the applicant firm.

    3.  The natural person qualifying on behalf of another natural person or firm under paragraphs (a) and (b) of subsection 2 must prove that he is a bona fide member or employee of that person or firm and when his principal or employer is actively engaged as a contractor shall exercise authority in connection with his principal or employer’s contracting business in the following manner:

    (a) To make technical and administrative decisions;

    (b) To hire, superintend, promote, transfer, lay off, discipline or discharge other employees and to direct them, either by himself or through others, or effectively to recommend such action on behalf of his principal or employer; and

    (c) To devote himself solely to his principal or employer’s business and not to take any other employment which would conflict with his duties under this subsection.

    4.  A natural person may not qualify on behalf of another for more than one active license unless:

    (a) One person owns at least 25 percent of each licensee for which he qualifies; or

    (b) One licensee owns at least 25 percent of the other licensee.

    Sec. 6.  NRS 624.263 is hereby amended to read as follows:

    624.263  1.  For the purposes of this chapter, financial responsibility means a [past and present business record of solvency. If the applicant or contractor is a corporation, its financial responsibility must be established independently of and without reliance on the assets of its officers, directors or stockholders, but the financial responsibility of its officers and directors may be inquired into and considered as a criterion in determining the corporation’s financial responsibility.] present and future condition of financial solvency that, as determined by the board, establishes a reasonable expectation that the applicant or licensee will conduct business as a contractor without injuring the health, safety and welfare of the members of the general public.

    2.  An applicant for a contractor’s license who will engage in residential construction or a licensee who engages in residential construction applying for renewal of a contractor’s license has the burden of demonstrating his financial responsibility to the board.

    3.  The financial responsibility of an applicant for a contractor’s license or of a licensed contractor must be determined by using the following standards and criteria in connection with each applicant or contractor and each associate or partner thereof:

    (a) Net worth.

    (b) Amount of liquid assets.

    (c) Prior payment and credit records.

    (d) Previous business experience.

    (e) Prior and pending lawsuits.

    (f) Prior and pending liens.

    (g) Adverse judgments.

    (h) Conviction of a felony or crime involving moral turpitude.

    (i) Prior suspension or revocation of a contractor’s license in Nevada or elsewhere.

    (j) An adjudication of bankruptcy or any other proceeding under the federal bankruptcy laws, including:

        (1) A composition, arrangement or reorganization proceeding;

        (2) The appointment of a receiver of the property of the applicant or contractor or any officer, director, associate or partner thereof under the laws of this state or the United States; or

        (3) The making of an assignment for the benefit of creditors.

    (k) Form of business organization (corporate or otherwise).

    (l) Information obtained from confidential financial references and credit reports.

    (m) Reputation for honesty and integrity of the applicant or contractor or any officer, director, associate or partner thereof.

    [3.] 4. A licensed contractor shall, as soon as it is reasonably practicable, notify the board in writing upon the filing of a petition or application relating to the contractor that initiates any proceeding, appointment or assignment set forth in paragraph (j) of subsection [2.] 3. The written notice must be accompanied by:

    (a) A copy of the petition or application filed with the court; and

    (b) A copy of any order of the court which is relevant to the financial responsibility of the contractor, including any order appointing a trustee, receiver or assignee.

    5.  The applicant or licensee may establish his financial responsibility independently of and without reliance upon the assets or guarantees of his officers, directors or stockholders. The board may inquire into and consider the financial responsibility of the officers and directors as a criterion in determining financial responsibility.

    Sec. 7.  NRS 624.270 is hereby amended to read as follows:

    624.270  1.  Before issuing a contractor’s license to any applicant, the board shall require that the applicant:

    (a) File with the board a surety bond in a form acceptable to the board executed by the contractor as principal with a corporation authorized to transact surety business in the State of Nevada as surety; or

    (b) In lieu of [such a] the bond, establish with the board a cash deposit as provided in this section.

    2.  Before granting renewal of a contractor’s license to any applicant, the board shall require that the applicant file with the board satisfactory evidence that his surety bond or cash deposit is in full force . [, unless the applicant has been relieved of the requirement as provided in this section.

    3.  Failure]

    3.  The failure of an applicant or licensee to file or maintain in full force the required bond or to establish the required cash deposit constitutes cause for the board to deny, revoke, suspend or refuse to renew a license.

    4.  Except as otherwise provided in subsection 6, the amount of each bond or cash deposit required by this section must be fixed by the board with reference to the contractor’s financial and professional responsibility and the magnitude of his operations, but must be not less than $1,000 or more than $100,000. The bond must be continuous in form and must be conditioned that the total aggregate liability of the surety for all claims is limited to the face amount of the bond irrespective of the number of years the bond is in force. The board may increase or reduce the amount of any bond or cash deposit if evidence supporting such a change in the amount is presented to the board at the time application is made for renewal of a license or at any hearing conducted pursuant to NRS 624.310. Unless released earlier pursuant to subsection 5, any cash deposit may be withdrawn 2 years after termination of the license in connection with which it was established, or 2 years after completion of all work authorized by the board after termination of the license, whichever occurs later, if there is no outstanding claim against it.

    5.  After a licensee has acted in the capacity of a licensed contractor in the State of Nevada for not less than [5] 10 consecutive years, and if no substantiated complaints have been filed with the board in the immediately preceding 5 years, the board may relieve the licensee of the requirement of filing a bond or establishing a cash deposit if evidence supporting such relief is presented to the board. The board may at any time thereafter require the licensee to file a new bond or establish a new cash deposit as provided in subsection 4 if evidence is presented to the board supporting this requirement or, pursuant to subsection 6, after notification of a final written decision by the labor commissioner. If a licensee is relieved of the requirement of establishing a cash deposit, the deposit may be withdrawn 2 years after such relief is granted, if there is no outstanding claim against it.

    6.  If the board is notified by the labor commissioner pursuant to NRS 607.165 that three substantiated claims for wages have been filed against a contractor within a 2-year period, the board shall require the contractor to file a bond or establish a cash deposit in an amount fixed by the board. The contractor shall maintain the bond or cash deposit for the period required by the board.

    7.  As used in this section, “substantiated claims for wages” has the meaning ascribed to it in NRS 607.165.

    Sec. 8.  NRS 624.283 is hereby amended to read as follows:

    624.283  1.  Each license issued under the provisions of this chapter expires 1 year after the date on which it is issued, except that the board may by regulation prescribe shorter or longer periods and prorated fees to establish a system of staggered renewals. Any license which is not renewed on or before the date for renewal is automatically suspended.

    2.  A license may be renewed by submitting to the board:

    (a) An application for renewal;

    (b) The statement required pursuant to NRS 624.268 if the holder of the license is a natural person; and

    (c) The fee for renewal fixed by the board.

    3.  The board may require the licensee to submit at any time a financial statement that is prepared by a certified public accountant, if the board believes that:

    (a) The licensee did not pay an undisputed debt;

    (b) The licensee has violated or may be violating a provision of chapter 624 of NRS or a regulation adopted pursuant thereto; or

    (c) The licensee’s financial responsibility may be impaired.

    4.  If a license is automatically suspended pursuant to subsection 1, the licensee may have his license reinstated upon filing an application for renewal within [6 months] 90 daysafter the date of suspension and paying, in addition to the fee for renewal, a fee for reinstatement fixed by the board, if he is otherwise in good standing and there are no complaints pending against him. If he is otherwise not in good standing or there is a complaint pending, the board shall require him to provide a current financial statement prepared by a certified public accountant or establish other conditions for reinstatement. If the licensee is a natural person, his application for renewal must be accompanied by the statement required pursuant to NRS 624.268. A license which is not reinstated within [6 months] 90 daysafter it is automatically suspended may be canceled by the board, and a new license may be issued only upon application for an original contractor’s license.

    Sec. 9.  NRS 624.300 is hereby amended to read as follows:

    624.300  1.  Except as otherwise provided in subsection 6, the board may:

    (a) Suspend or revoke licenses already issued;

    (b) Refuse renewals of licenses;

    (c) Impose limits on the field, scope and monetary limit of the license;

    (d) Impose an administrative fine of not more than $10,000;

    (e) Order the licensee to take action to correct a condition resulting from an act which constitutes a cause for disciplinary action, at the licensee’s cost; or

    (f) Reprimand or take other less severe disciplinary action, including, without limitation, increasing the amount of the surety bond or cash deposit of the licensee,

if the licensee commits any act which constitutes a cause for disciplinary action.

    2.  The board may, in addition to any other conditions for reinstating or renewing the license, require the licensee to file with the board a bond in an amount fixed by the board based on the nature of the violation. The bond is in addition to, may not be combined with, and does not replace any other bond required pursuant to the provisions of this chapter. The contractor shall maintain the bond for at least 2 years, or for a longer period, as determined by the board.

    3.  If the board suspends or revokes the license of a contractor for failure to establish financial responsibility, the board may, in addition to any other conditions for reinstating or renewing the license, require that each contract undertaken by the licensee for a period to be designated by the board, not to exceed 12 months, be separately covered by a bond or bonds approved by the board and conditioned upon the performance of and the payment of labor and materials required by the contract.

    [3.] 4.  If a licensee commits a fraudulent act which is a cause for disciplinary action under NRS 624.3016, the correction of any condition resulting from the act does not preclude the board from taking disciplinary action.

    [4.] 5.  If the board finds that a licensee has engaged in repeated acts that would be cause for disciplinary action, the correction of any resulting conditions does not preclude the board from taking disciplinary action pursuant to this section.

    [5.] 6.  The expiration of a license by operation of law or by order or decision of the board or a court, or the voluntary surrender of a license by a licensee, does not deprive the board of jurisdiction to proceed with any investigation of, or action or disciplinary proceeding against, the licensee or to render a decision suspending or revoking the license.

    [6.] 7.  The board shall not take any disciplinary action pursuant to this section regarding a constructional defect, as that term is defined in NRS 40.615, during the period in which any claim arising out of that defect is being settled, mediated or otherwise resolved pursuant to NRS 40.600 to 40.695, inclusive, unless the disciplinary action is necessary to protect the public health or safety.

    [7.] 8.  If discipline is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorney’s fees, may be recovered by the board.

    Sec. 10.  NRS 624.3013 is hereby amended to read as follows:

    624.3013  The following acts, among others, constitute cause for disciplinary action pursuant to NRS 624.300:

    1.  Failure to keep records showing all contracts, documents, receipts and disbursements by a licensee of all of his transactions as a contractor and to keep them open for inspection by the board or executive officer for a period of not less than 3 years after the completion of any construction project or operation to which the records refer.

    2.  Misrepresentation of a material fact by an applicant or licensee in obtaining a license, or in connection with any information or evidence furnished the board in connection with official matters of the board.

    3.  Failure to establish financial responsibility pursuant to NRS 624.220, 624.260, 624.263 and 624.265 and section 4 of this act at the time of renewal of the license or at any other time when required by the board.

    4.  Failure to keep in force the bond or cash deposit pursuant to NRS 624.270 for the full period required by the board.

    5.  Failure in any material respect to comply with the provisions of this chapter or the regulations of the board.

    Sec. 11.  NRS 624.321 is hereby amended to read as follows:

    624.321  A [general building] contractor shall provide in writing to the owner of a single-family residence for whom he performs a service or with whom he has contracted:

    1.  The name, license number, business address and telephone number of:

    (a) All subcontractors with whom he has contracted on the project; and

    (b) All persons who furnish material of the value of $500 or more to be used in the project.

    2.  A notice that a person described in subsection 1 may record a notice of lien upon the residence of the owner and any building, structure and improvement thereon pursuant to the provisions of NRS 108.226.

    3.  An informational form, whose contents must be prescribed by the board, regarding:

    (a) Contractors pursuant to chapter 624 of NRS; [and]

    (b) Mechanics’ and materialmen’s liens pursuant to chapter 108 of NRS[.] ; and

    (c) The availability of any warranty and any information related to such a warranty.

    Sec. 12.  NRS 624.330 is hereby amended to read as follows:

    624.330  [This chapter does] The provisions of this chapter do not apply to:

    1.  Work [done] performed exclusively by an authorized representative of the United States Government, the State of Nevada, or an incorporated city, county, irrigation district, reclamation district, or other municipal or political corporation or subdivision of this state.

    2.  An officer of a court when acting within the scope of his office.

    3.  Work [done]performedexclusively by a public utility operating pursuant to the regulations of the public utilities commission of Nevada on construction, maintenance and development work incidental to its [own] business.

    4.  An owner of property who is building or improving a residential structure on the property for his own occupancy and not intended for sale[.] or lease. The sale or lease or offering for sale or lease of the newly built structure within 1 year after its completion creates a rebuttable presumption for the purposes of this section that the building of the structure was performed with the intent to sell[.] or lease that structure. An owner of property who requests an exemption pursuant to this subsection must apply to the board for the exemption. The board shall adopt regulations setting forth the requirements for granting the exemption.

    5.  An owner of a complex containing not more than four condominiums, townhouses, apartments or cooperative units, the managing officer of the owner or an employee of the managing officer, who performs work to repair or maintain that property the value of which is less than $500, including labor and materials, unless:

    (a) A building permit is required to perform the work;

    (b) The work is of a type performed by a plumbing, electrical, refrigeration, heating or air-conditioning contractor;

    (c) The work is of a type performed by a contractor licensed in a classification prescribed by the board that significantly affects the health, safety and welfare of members of the general public;

    (d) The work is performed as a part of a larger project:

        (1) The value of which is $500 or more; or

        (2) For which contracts of less than $500 have been awarded to evade the provisions of this chapter; or

    (e) The work is performed by a person who is licensed pursuant to this chapter or by an employee of [such a] that person.

    6.  The sale or installation of any finished product, material or article of merchandise which is not [actually] fabricated into and does not become a permanent fixed part of the structure.

    7.  The construction, alteration, improvement or repair of personal property.

    8.  The construction, alteration, improvement or repair financed in whole or in part by the Federal Government and [carried on] conducted within the limits and boundaries of a site or reservation, the title of which rests in the Federal Government.

    9.  An owner of property, the primary use of which is as an agricultural or farming enterprise, building or improving a structure on the property for his [own] use or occupancy and not intended for sale or lease.

    10.  An owner of property who builds or improves a structure upon his property and who contracts solely with a managing contractor licensed pursuant to the provisions of this chapter for the building or improvement, if the owner is and remains financially responsible for the building or improving of all buildings and structures built by the owner upon his property pursuant to the exemption [of] specified in this subsection.

    Sec. 13.  NRS 624.360 is hereby amended to read as follows:

    624.360  1.  Any person violating [any of] the provisions of this [chapter:

   (a) For] NRS 624.355:

    (a) Except as otherwise provided in paragraph (c), for the first offense, is guilty of a misdemeanor and shall be punished by a fine of not less than [$500] $1,000 nor more than [$1,000,] $2,000, and may be further punished by imprisonment in the county jail for not more than 6 months . [; or

   (b) For]

    (b) Except as otherwise provided in paragraph (c), for the second [orsubsequent] offense, is guilty of a gross misdemeanor and shall be punished by a fine of not less than [$1,000]$2,000nor more than [$2,000,] $4,000, and may be further punished by imprisonment in the county jail for not more than 1 year.

    (c) For the third or subsequent offense, or if the bid or contract is in excess of $100,000, and the contractor is not properly licensed pursuant to this chapter, is guilty of a class E felony and shall be punished by a fine of not less than $5,000 nor more than $10,000 and may be further punished by imprisonment in the state prison for not less than 1 year and not more than 4 years.

    2.  Imposition of the penalty provided for in this section is not precluded by any disciplinary action taken by the board against a contractor pursuant to the provisions of NRS 624.300 to 624.305, inclusive.

    Sec. 14.  Chapter 40 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  Except as otherwise provided in NRS 116.4113 and 116.4114, each contractor who develops or constructs a new residence may, if the residence is sold to a person other than the contractor, provide a written homeowner’s warranty for that residence. The warranty must state that the contractor will repair or replace, without cost to the person to whom the residence is sold:

    (a) Any constructional defect in the residence, other than a defect specified in paragraph (b), occurring within 1 year after a certificate of occupancy is issued for the residence; and

    (b) Any defect in a structural component of the residence occurring within 10 years after a certificate of occupancy is issued for the residence. As used in this paragraph, “structural component” means the foundation, floors, walls, roof trusses or rafters of a residence.

    2.  A sale or other conveyance of a residence for which a homeowner’s warranty is provided pursuant to the provisions of this section does not extinguish, modify or limit that warranty.

    Sec. 15.  NRS 40.600 is hereby amended to read as follows:

    40.600  As used in NRS 40.600 to 40.695, inclusive, and section 14 of this act, unless the context otherwise requires, the words and terms defined in NRS 40.605 to 40.630, inclusive, have the meanings ascribed to them in those sections.

    Sec. 16.  Chapter 278 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  In a county whose population is 100,000 or more, each certificate of occupancy issued for a single‑family residence must be issued in substantially the following form:

CERTIFICATE OF RESIDENTIAL OCCUPANCY

    This certificate of occupancy does not create an express or implied warranty or guarantee.

Address: ......................................................                 Permit Number:..........................

                                                        .......................................

                                                                .......................................

Name of Builder:........................................                 Date of Final Inspection:..........

Owner-Builder:   o Yes   o No
Name of Building:......................

Inspector:.....................................

This building is deemed to be in substantial compliance with fire, safety and structural provisions of the adopted building codes. Records concerning the construction of this building are on file with the building department for 12 years after the date that the records are filed with the building department.

    2.  A certificate of occupancy issued pursuant to the provisions of subsection 1 must be issued to the person to whom the building permit for the single‑family residence was issued.

    3.  If the single‑family residence for which the certificate of occupancy is issued pursuant to subsection 1 is sold, the owner of the single‑family residence shall provide a copy of the certificate of occupancy to the purchaser of the residence. The copy must be provided before the close of escrow for the residence.

    4.  The building department of a county whose population is 100,000 or more shall maintain on file the records concerning a building for which a certificate of occupancy is issued pursuant to subsection 1 for at least 12 years after the date those records are filed with the building department.

    Sec. 17.  The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1999.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to construction; requiring the governing body of a city or county to notify the state contractors’ board if a contractor has violated a provision of any building code adopted by the governing body under certain circumstances; requiring the state contractors’ board to establish a program to provide continuing education for licensed contractors; requiring an applicant for a contractor’s license or a contractor who applies for renewal of his license to establish financial responsibility under certain circumstances; lengthening the time that a contractor must be licensed in this state before he may be relieved by the state contractors’ board from filing a bond or establishing a cash deposit under certain circumstances; shortening the period during which certain licenses may be reinstated; authorizing the state contractors’ board to require a licensee to file an additional bond under certain circumstances; requiring a contractor to give notice to an owner of a single-family residence of certain information including the availability of any warranty; increasing the penalty for a violation of certain provisions governing contractors; authorizing certain contractors to provide homeowners’ warranties; requiring certain certificates of occupancy in certain circumstances; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes to provisions concerning contractors. (BDR 54‑1479)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senators Townsend and Neal.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 440.

    Bill read second time.

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

    Amendment No. 678.

    Amend the bill as a whole by deleting sections 1 through 17 and adding new sections designated sections 1 through 29, following the enacting clause, to read as follows:

    “Section 1.  Chapter 704 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 26, inclusive, of this act.

    Sec. 2.  As used in sections 2 to 22, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 12, inclusive, of this act have the meanings ascribed to them in those sections.

    Sec. 3.  “Affected person” means:

    1.  A public utility affected by an action of an electing carrier or an action of the commission relating to an electing carrier;

    2.  A person whose utility service or rates are affected by an action of an electing carrier or an action of the commission relating to an electing carrier;

    3.  A competitive supplier; or

    4.  The bureau of consumer protection in the office of the attorney general.

    Sec. 4.  “Basic network service” means the provision of any of the following services, unless the service has been reclassified as a competitive, discretionary or other essential service by the commission pursuant to section 16 of this act:

    1.  Farmer line service;

    2.  Flat rate service for residential lines;

    3.  Measured rate service for residential lines;

    4.  Flat rate service for residential trunk lines;

    5.  Flat rate service for business lines;

    6.  Measured rate service for business lines;

    7.  Flat rate service for business trunk lines;

    8.  Measured rate service for business trunk lines;

    9.  Suburban service access lines;

    10.  Toll station service access lines;

    11.  Universal lifeline service access lines;

    12.  Access to emergency 911 service; and

    13.  The first single-line directory listing.

    Sec. 5.  “Competitive service” means:

    1.  Any telecommunications service which is classified as a competitive service or a nonregulated service by regulation of the commission, or which is reclassified as a competitive service pursuant to section 16 of this act; and

    2.  The intraLATA toll services of an electing carrier.

    Sec. 6.  “Competitive supplier” means a person who:

    1.  Is a competitor of an electing carrier with respect to a service performed by the electing carrier; or

    2.  Wants to enter into competition with an electing carrier.

    Sec. 7.  “Discretionary service” means any telecommunications service which is not otherwise classified as a basic network service, a competitive service or any other essential service, or which is reclassified as a discretionary service pursuant to section 16 of this act.

    Sec. 8.  “Electing carrier” means an incumbent local exchange carrier regulated under an alternative plan of regulation pursuant to NRS 704.040 that has elected also to be regulated pursuant to sections 2 to 22, inclusive, of this act by filing with the commission a statement pursuant to section 13 of this act.

    Sec. 9.  “Incumbent local exchange carrier” has the meaning ascribed to it in 47 U.S.C. § 251(h)(1), as that section existed on October 1, 1999, and includes a local exchange carrier that is treated as an incumbent local exchange carrier pursuant to that section.

    Sec. 10.  “Local area of transport and access” or “LATA” means an area within which a provider of telecommunication services may operate pursuant to the order in United States v. American Telephone and Telegraph Co., 552 F. Supp. 131 (D.C. 1982). The term is equivalent to “local access and transport area” as used in that order.

    Sec. 11.  “Other essential service” means any telecommunications service that is classified as other essential service by regulation of the commission.

    Sec. 12.  “Price floor” means the minimum price of a service using cost-based standards as determined by the commission by regulation.

    Sec. 13.  An incumbent local exchange carrier that is regulated under an alternative plan of regulation pursuant to NRS 704.040 may elect also to be regulated pursuant to sections 2 to 22, inclusive, of this act by filing with the commission a statement of its election to be so regulated.

    Sec. 14.  1.  An electing carrier is not subject to any review of earnings, monitoring of the rate base, or any other regulation by the commission relating to the net income or rate of return of the electing carrier, unless the electing carrier files with the commission a request to:

    (a) Terminate its participation in the alternative plan of regulation pursuant to NRS 704.040; or

    (b) Continue its participation in the alternative plan of regulation pursuant to NRS 704.040.

    2.  Except as otherwise provided in subsection 1, the commission shall not consider the rate of return, rate base or any other earnings of the electing carrier in connection with any change in rates.

    3.  Except for an electing carrier that files a request with the commission pursuant to subsection 1, the commission shall not decrease the rate of a basic network service provided by the electing carrier unless the electing carrier agrees to the decrease in the rate.

    4.  Except for a telecommunications service reclassified pursuant to section 16 of this act, or except where an electing carrier elects to continue participation in an alternative plan of regulation pursuant to paragraph (b) of subsection 1, an electing carrier shall not increase any rate that the electing carrier charges for basic network services.

    5.  Except for universal service support for lifeline or link-up services provided pursuant to 47 U.S.C. § 214 or as otherwise determined by the commission, an electing carrier is not eligible to receive money from the fund created pursuant to subsection 7 of NRS 704.040.

    Sec. 15.  Nothing in sections 2 to 22, inclusive, of this act authorizes an electing carrier, without the approval of the commission, to discontinue or otherwise change the terms and conditions relating to the provision of the basic network services identified in subsections 1 to 4, inclusive, of section 4 of this act, as set forth in the tariffs of the electing carrier that are in effect on October 1, 1999.

    Sec. 16.  1.  The commission may, at any time, upon its own motion or that of any person, reclassify a basic network service, except access to emergency 911 service.

    2.  The commission shall establish by regulation criteria for determining whether a service should be reclassified, except that the commission shall not adopt criteria for determining whether a service should be reclassified that would deny a request to reclassify a basic network service to another classification of service within an exchange where a competitive supplier operates and provides that service, on the basis that there is not a competitive supplier of that service in any other portion of the state.

    Sec. 17.  1.  An electing carrier may, pursuant to this section and in accordance with section 20 of this act, exercise flexibility in the pricing of:

    (a) Competitive services and discretionary services. The commission shall not specify a maximum rate for any competitive services or discretionary services of the electing carrier. The electing carrier shall, with regard to any competitive or discretionary service that it provides, set the price of that service above the price floor of the service.

    (b) A package of services, which may include basic network services, competitive services, discretionary services and other essential services.

    2.  Except as otherwise provided in this subsection, an electing carrier may, upon 30-days’ notice to the commission in writing, exercise flexibility in the pricing of its services pursuant to subsection 1 and is exempt, with respect to the pricing of its services, from the provisions of NRS 704.110 and the regulations of the commission relating thereto. The notice must include a description in reasonable detail of:

    (a) The characteristics of the services that will be subject to flexibility in pricing;

    (b) The terms and conditions applicable to the services;

    (c) The nature of any limitations on the duration or geographical availability of the services;

    (d) The price or prices of the services or packages of services; and

    (e) A certificate which provides that the electing carrier has prepared a cost study of the price floor to support the price or prices for each service and that, on and after the date on which the notice is filed with the commission, any affected person may, upon request, inspect and copy the cost study, subject to reasonable terms and conditions of any applicable confidentiality and nondisclosure agreement relating to the services.

The notice requirements of this subsection do not apply to an electing carrier with respect to the pricing of competitive services or for packages comprised exclusively of competitive services.

    3.  The price for a package of services must not be lower than the lesser of:

    (a) The sum of the price floors for each of the services contained in the package; or

    (b) The sum of the prices of the basic network services, as set forth in the tariffs of the electing carrier, and the price floors for each of the other services contained in the package.

    4.  The commission shall not specify a maximum rate for a package of services.

    5.  Each of the services included in a package pursuant to paragraph (b) of subsection 1 must be made available on an individual basis.

    Sec. 18.  An electing carrier may establish promotional price reductions for services upon a 1-day notice to the commission. The promotional price reduction for a service may be offered for not more than 90 days during any 12 consecutive months and must be given in all geographic areas served by the electing carrier, where facilities permit, on a nondiscriminatory basis during the 12-month period.

    Sec. 19.  1.  An electing carrier may introduce new services upon 30‑days’ notice to the commission in writing. The notice must include a description in reasonable detail of:

    (a) The characteristics of each new service;

    (b) The terms and conditions applicable to each new service;

    (c) The nature of any limitations on the duration or geographical availability of each new service;

    (d) The price or prices of each new service; and

    (e) A certificate that provides that the electing carrier has prepared a cost study of the price floor to support the price or prices for each new service and that, on and after the date on which the notice is filed with the commission, any affected person may, upon request, inspect and copy the cost study, subject to reasonable terms and conditions of any applicable confidentiality and nondisclosure agreement.

    2.  Each new service is subject to the conditions set forth in section 17 of this act.

    3.  Each new service is exempt from NRS 704.110 and the regulations of the commission relating thereto.

    4.  Unless otherwise classified by the commission as a competitive service pursuant to its regulations, a new service must be classified as a discretionary service for which the commission shall not specify a maximum rate. The electing carrier shall set the price of the new service above the price floor of the service.

    5.  As used in this section, a “new service” means a telecommunications service:

    (a) That provides a function, feature or capability which is materially different from any service or services previously offered by the carrier; or

    (b) Combines two or more previously provided new services.

    Sec. 20.  The rates charged by an electing carrier for services, except for competitive services, must be geographically averaged throughout the service territory in which the electing carrier is the provider of last resort, as determined pursuant to regulations adopted by the commission, or within such other smaller geographic area as the commission deems appropriate to balance the interests of all customers and providers.

    Sec. 21.  The intrastate access prices charged by an electing carrier must not exceed the interstate access prices charged by the electing carrier as authorized by the Federal Communications Commission for corresponding elements, and any resulting reductions must be offset on a revenue-neutral basis with adjustments to other essential retail services subject to regulation by the commission.

    Sec. 22.  The provisions of sections 2 to 22, inclusive, of this act do not:

    1.  Apply to the commission in connection with any actions or decisions required or permitted by the Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161; or

    2.  Limit or modify the duties of an electing carrier to a competitive supplier regarding the provision of network interconnection, unbundled network elements and resold services under the provisions of the Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161.

    Sec. 23.  The commission shall, by regulation:

    1.  Establish standards of performance and reporting regarding the provision of interconnection, unbundled network elements and resold services, which encourage competition and discourage discriminatory conduct in the provision of local telecommunication services; and

    2.  Notwithstanding the provisions of NRS 703.320 to the contrary, establish penalties and expedited procedures for imposing penalties upon a provider of telecommunication services for actions that are inconsistent with the standards established by the commission pursuant to subsection 1. Such penalties may include financial payment to the complaining provider of telecommunication services for a violation of the standards established by the commission pursuant to subsection 1, provided that any penalty paid must be deducted, with interest, from any other award under any other judicial or administrative procedure for the same conduct in the same reporting period. Any penalty imposed pursuant to this subsection is in lieu of the civil penalties set forth in NRS 703.380 and must be:

    (a) Imposed for violating a standard or standards established by regulations of the commission pursuant to subsection 1;

    (b) Determined by the commission to further the goal of encouraging competition or discouraging discriminatory conduct; and

    (c) In an amount reasonable to encourage competition or discourage discriminatory conduct.

    Sec. 24.  Notwithstanding the provisions of NRS 703.310 and 703.320, the commission shall establish by regulation expedited procedures for complaints filed by a provider of telecommunication services against another provider of telecommunication services for any dispute arising under chapter 703 or 704 of NRS, including specific procedures for interim relief that may include a preliminary decision by a single commissioner except as to the imposition of monetary penalties.

    Sec. 25.  Any judicial review of a decision by the commission pursuant to sections 23 and 24 of this act must be made in accordance with NRS 703.373 to 703.376, inclusive.

    Sec. 26.  The provisions of sections 23 to 26, inclusive, of this act must not be construed to exempt providers of telecommunication services from any other applicable statute of this state or the United States relating to consumer and antitrust protections. The exemption provided in paragraph (c) of subsection 3 of NRS 598A.040 does not apply to conduct of, or actions taken by, a provider of telecommunication services in violation of the standards established pursuant to subsection 1 of section 23 of this act.

    Sec. 27.  NRS 704.640 is hereby amended to read as follows:

    704.640  [Any] Except as otherwise provided in sections 23 to 26, inclusive, of this act, any person who:

    1.  Operates any public utility to which NRS 704.005 to 704.751, inclusive, and sections 23 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive, apply without first obtaining a certificate of public convenience and necessity or in violation of its terms;

    2.  Fails to make any return or report required by NRS 704.005 to 704.751, inclusive, and sections 23 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive, or by the commission pursuant to NRS 704.005 to 704.751, inclusive, and sections 23 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive;

    3.  Violates, or procures, aids or abets the violating of any provision of NRS 704.005 to 704.751, inclusive, and sections 23 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive;

    4.  Fails to obey any order, decision or regulation of the commission;

    5.  Procures, aids or abets any person in his failure to obey the order, decision or regulation; or

    6.  Advertises, solicits, proffers bids or otherwise holds himself out to perform as a public utility in violation of any of the provisions of NRS 704.005 to 704.751, inclusive, and sections 23 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive,

shall be fined not more than $500.

    Sec. 28.  Section 27 of this act is hereby amended to read as follows:

    Sec. 27.  NRS 704.640 is hereby amended to read as follows:

    704.640   Except as otherwise provided in sections 23 to 26, inclusive, of this act, any person who:

    1.  Operates any public utility to which NRS 704.005 to 704.751, inclusive, and sections [23] 2 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive, apply without first obtaining a certificate of public convenience and necessity or in violation of its terms;

    2.  Fails to make any return or report required by NRS 704.005 to 704.751, inclusive, and sections [23] 2 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive, or by the commission pursuant to NRS 704.005 to 704.751, inclusive, and sections [23] 2 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive;

    3.  Violates, or procures, aids or abets the violating of any provision of NRS 704.005 to 704.751, inclusive, and sections [23] 2 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive;

    4.  Fails to obey any order, decision or regulation of the commission;

    5.  Procures, aids or abets any person in his failure to obey the order, decision or regulation; or

    6.  Advertises, solicits, proffers bids or otherwise holds himself out to perform as a public utility in violation of any of the provisions of NRS 704.005 to 704.751, inclusive, and sections [23] 2 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive,

shall be fined not more than $500.

    Sec. 29.  1.  This section and sections 1 and 23 to 27, inclusive, of this act become effective upon passage and approval.

    2.  Sections 2 to 22, inclusive, and 28 of this act become effective on October 1, 1999.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to telecommunication services; providing for the alternative regulation of incumbent local exchange carriers; providing for the reclassification of basic network services provided by such carriers; requiring the public utilities commission of Nevada to establish standards of performance and reporting relating to the provision of local telecommunication services; providing an expedited procedure to resolve certain disputes between providers of telecommunication services; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Revises provisions relating to regulation of providers of telecommunication services. (BDR 58‑1239)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senators Townsend, Neal and Raggio.

    Conflict of interest declared by Senator Raggio.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 451.

    Bill read second time.

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

    Amendment No. 612.

    Amend sec. 2, page 1, by deleting lines 3 through 5 and inserting:

    “Sec. 2.  “Administrator” means the administrator of the real estate division of the department of business and industry.”.

    Amend sec. 3, page 2, line 14, by deleting: “replace, restore or maintain” and inserting: “replace or restore”.

    Amend sec. 3, page 2, line 18, by deleting: “replace, restore or maintain” and inserting: “replace or restore”.

    Amend sec. 4, page 2, line 33, by deleting “3” and inserting “5”.

    Amend sec. 4, page 2, line 34, by deleting: “replace, restore and maintain” and inserting: “replace and restore”.

    Amend sec. 4, page 2, line 41, by deleting “study and” and inserting: “study, including a member of the executive board, a unit’s owner or the property manager of the association who is so qualified. The study”.

    Amend sec. 4, page 3, lines 2 and 3, by deleting: “replace, restore or maintain;” and inserting: “replace or restore;”.

    Amend sec. 4, page 3, lines 5 and 6, by deleting: “replace, restore or maintain” and inserting: “replace or restore”.

    Amend sec. 4, page 3, lines 9 and 10, by deleting: “replacement, restoration or maintenance” and inserting: “replacement or restoration”.

    Amend sec. 4, page 3, line 13, by deleting: “replacing, restoring or maintaining” and inserting: “replacing or restoring”.

    Amend sec. 4, page 3, between lines 15 and 16 by inserting:

    “3.  The administrator shall adopt by regulation the qualifications required for conducting a study required by subsection 1.”.

    Amend sec. 5, page 3, line 24, by deleting “unforeseen circumstances” and inserting: “circumstances that could not have been reasonably foreseen”.

    Amend sec. 6, page 4, line 1, by deleting “10” and inserting “7”.

    Amend sec. 6, page 4, by deleting lines 3 through 20 and inserting: “be given to the units’ owners. Such notice must be:

    (a) Sent prepaid by United States mail to the mailing address of each unit within the common-interest community; or

    (b) Published in a newsletter or other similar publication that is circulated to each unit’s owner.

    3.  In an emergency, the secretary or other officer specified in the bylaws of the association shall, if practicable, cause notice of the meeting to be sent prepaid by United States mail to the mailing address of each unit within the common-interest community. If delivery of the notice in this manner is impracticable, the notice must be hand-delivered to each unit within the common-interest community or posted in a prominent place or places within the common elements of the association.

    4.  The notice of a meeting of the executive board of an association must state the time and place of the meeting and include a copy of the agenda for the meeting or the date on which and the locations where copies of the agenda may be conveniently obtained by the units’ owners of the association. The notice must include notification of the right of a unit’s owner to:

    (a) Have a copy of the minutes or a summary of the minutes of the meeting distributed to him upon request and, if required by the executive board, upon payment to the association of the cost of making the distribution.

    (b) Speak to the association or executive board, unless the executive board is meeting in executive session.

    5.  The agenda of the meeting of the executive board of an association must comply with the provisions of subsection 3 of NRS 116.3108. The period required to be devoted to comments by units’ owners and discussion of those comments must be scheduled for the beginning of each meeting. In an emergency, the executive board may take action on an item which is not listed on the agenda as an item on which action may be taken.

    6.  At least once every 90 days, unless the declaration or bylaws of the association impose more stringent standards, the executive board shall review at one of its meetings:”.

    Amend sec. 6, page 4, lines 30 and 31, by deleting: “before the commission” and inserting: “submitted to arbitration or mediation”.

    Amend sec. 6, page 4, line 32, by deleting “6.” and inserting “7.”.

    Amend sec. 6, page 4, by deleting lines 35 through 39 and inserting:

    “8.  As used in this section, “emergency” means any occurrence or combination of occurrences that:

    (a) Could not have been reasonably foreseen;

    (b) Affects the health, welfare and safety of the units’ owners of the association;

    (c) Requires the immediate attention of, and possible action by, the executive board; and

    (d) Makes it impracticable to comply with the provisions of subsection 2 or 5.”.

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

    “Sec. 8.  1.  To carry out the purposes of this chapter, the real estate commission, or any member thereof, may issue subpoenas to compel the attendance of witnesses and the production of books, records and other papers.

    2.  If any person fails to comply with a subpoena issued by the commission pursuant to this section within 10 days after its issuance, the commission may petition the district court for an order of the court compelling compliance with the subpoena.

    3.  Upon such a petition, the court shall enter an order directing the person subpoenaed to appear before the court at a time and place to be fixed by the court in its order, the time to be not more than 10 days after the date of the order, and show cause why he has not complied with the subpoena. A certified copy must be served upon the person subpoenaed.

    4.  If it appears to the court that the subpoena was regularly issued by the commission, the court shall enter an order compelling compliance with the subpoena, and upon failure to obey the order the person shall be dealt with as for contempt of court.

    Sec. 9.  1.  Except as otherwise provided in this subsection, the executive board of an association shall, upon the written request of a unit’s owner, make available the books, records and other papers of the association for review during the regular working hours of the association. The provisions of this subsection do not apply to:

    (a) The personnel records of the employees of the association; and

    (b) The records of the association relating to another unit’s owner.

    2.  If the executive board refuses to allow a unit’s owner to review the books, records or other papers of the association, the ombudsman for owners in common-interest communities may:

    (a) On behalf of the unit’s owner and upon written request, review the books, records or other papers of the association during the regular working hours of the association; and

    (b) If he is denied access to the books, records or other papers, request the commission to issue a subpoena for their production.”. 

    Amend the bill as a whole by deleting sections 10 and 11 and inserting:

    “Secs. 10 and 11.  (Deleted by amendment.).”.

    Amend sec. 12, page 7, line 8, by deleting “14” and inserting “30”.

    Amend sec. 13, page 7, by deleting line 22 and inserting: “or the ombudsman for owners in common-interest communities within 14 days after receiving a written request therefor. The executive board”.

    Amend sec. 14, page 7, line 29, by deleting: “of the real estate division” and inserting: “[of the real estate division]”.

    Amend sec. 14, page 7, by deleting lines 37 through 39 and inserting:

    “(a) Assist in processing claims submitted to mediation or arbitration pursuant to NRS 38.300 to 38.360, inclusive;”.

    Amend sec. 15, page 8, by deleting lines 15 through 18 and inserting: “account must be administered by the administrator . [of the real estate division of the department of business and industry.]

    2.  The fees collected pursuant to NRS 116.31155 must be credited to the account.”.

    Amend sec. 15, page 8, by deleting line 21 and inserting “4.  The”.

    Amend sec. 15, page 8, line 24, by deleting “communities.” and inserting: “communities [.] and for the payment of fees for a mediator or an arbitrator pursuant to NRS 38.330.”.

    Amend sec. 16, page 8, line 32, by deleting “(b)  Common-interest” and inserting:

    “(b) Associations created for the limited purpose of maintaining a rural agricultural residential common-interest community.

    (c) A planned community in which all units are restricted exclusively to nonresidential use unless the declaration provides that the chapter does apply to that planned community. This chapter applies to a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted, only if the declaration so provides or the real estate comprising the units that may be used for residential purposes would be a planned community in the absence of the units that may not be used for residential purposes.

    (d) Common-interest”.

    Amend sec. 16, page 8, by deleting lines 36 and 37 and inserting:

    “3.  The provisions of this chapter do not:

    (a) Prohibit a common-interest community created before January 1, 1992, from providing for separate classes of voting for the units’ owners of the association;

    (b) Require a common-interest community created before January 1, 1992, to comply with the provisions of NRS 116.2101 to 116.2122, inclusive;

    (c) Invalidate any assessments that were imposed on or before October 1, 1999, by a common-interest community created before January 1, 1992;

    (d) Prohibit a common-interest community created before January 1, 1992, from providing for a representative form of government; or

    (e) Require a common-interest community created before January 1, 1992, to impose an assessment on or after October 1, 1999, against a vacant lot located within the community that is owned by the declarant.

    4.  The provisions of chapters 117 and 278A of NRS do not apply to common-interest communities . [created on or after January 1, 1992.]

    5.  For the purposes of this section, the administrator shall establish, by regulation, the criteria for determining whether an association is created for the limited purpose of maintaining the landscape of the common elements of a common-interest community or maintaining a rural agricultural residential common-interest community.”.

    Amend the bill as a whole by adding a new section designated sec. 16.5, following sec. 16, to read as follows:

    “Sec. 16.5.  NRS 116.1206 is hereby amended to read as follows:

    116.1206  1.  Any declaration, bylaw or other governing document of a common-interest community created before January 1, 1992, that does not conform to the provisions of this chapter shall be deemed to conform with those provisions by operation of law, and any such declaration, bylaw or other governing document is not required to be amended to conform to those provisions.

    2.  In the case of amendments to the declaration, bylaws or plats and plans of any common-interest community created before January 1, 1992:

    (a) If the result accomplished by the amendment was permitted by law before January 1, 1992, the amendment may be made either in accordance with that law, in which case that law applies to that amendment, or it may be made under this chapter; and

    (b) If the result accomplished by the amendment is permitted by this chapter, and was not permitted by law before January 1, 1992, the amendment may be made under this chapter.

    [2.] 3.  An amendment to the declaration, bylaws or plats and plans authorized by this section to be made under this chapter must be adopted in conformity with the applicable provisions of chapter 117 or 278A of NRS and with the procedures and requirements specified by those instruments. If an amendment grants to any person any rights, powers or privileges permitted by this chapter, all correlative obligations, liabilities and restrictions in this chapter also apply to that person.”.

    Amend sec. 18, page 10, by deleting lines 18 through 23 and inserting: “owner, to pay a fine [not to exceed $50 for each failure to comply, unless the violation is of a type that threatens the health and welfare of the common-interest community. The] for each failure to comply that does not threaten the health and welfare of the common-interest community. The fine must be commensurate with the severity of the violation, but must not exceed $100 for each violation or a total amount of $500, whichever is less.”.

    Amend sec. 19, page 10, line 38, after “owners.” by inserting: “Each member of the executive board who is elected after the termination of any period of the declarant’s control must be a resident of this state and reside within the common-interest community, unless a sufficient number of persons who are so qualified are not available to serve as members of the executive board.”.

    Amend sec. 19, pages 10 and 11, by deleting lines 41 and 42 on page 10 and lines 1 through 3 on page 11, and inserting:

    “2.  The term of office of a member of the executive board may not exceed 2 years. A member of the executive board may be elected to succeed himself. The governing documents of the association must set forth the month during which elections for the members of the executive board must be held after the termination of any period of the declarant’s control.

    3.  Not less than 30 days before the preparation of a ballot for the election of members of the executive board, the secretary or other officer specified in the bylaws of the association shall cause notice to be given to each unit’s owner of his eligibility to serve as a member of the executive board. Each unit’s owner who is qualified to serve as a member of the executive board may have his name placed on the ballot along with the names of the nominees selected by the members of the executive board or a nominating committee established by the association.

    4.  An officer, employee, agent or director of a corporate owner of a”.

    Amend sec. 19, page 11, line 6, by deleting “board.” and inserting: “board [.] if he is otherwise qualified for that office.”.

    Amend sec. 19, page 11, line 15, by deleting “4.” and inserting “5.”.

    Amend sec. 19, page 11, by deleting lines 20 through 23 and inserting: “by the unit’s owner, a secret ballot and a return envelope.

    6.  Each member of the executive board shall, [at the time of] within 30”.

    Amend the bill as a whole by deleting sec. 20 and inserting:

    “Sec. 20.  (Deleted by amendment.)”.

    Amend sec. 21, page 12, by deleting lines 23 and 24 and inserting:

    “(a) Except as otherwise provided in this paragraph, deliver to the association a reserve account that contains the declarant’s share of the amounts then due, and control of the account. If, at that time, the declarant has failed to pay his share of the amounts due, the executive board shall authorize the declarant to pay the deficiency in installments for a period of 3 years, unless the declarant and the executive board agree to a shorter period.”.

    Amend sec. 23, page 13, line 40, by deleting “Special” and inserting: “If the governing documents of a common-interest community do not designate an annual meeting date of the units’ owners, a meeting of the units’ owners must be held 1 year after the date of the last meeting of the units’ owners. If the units’ owners have not held a meeting for 1 year, a meeting of the units’ owners must be held on the following March 1. Special”.

    Amend sec. 23, page 15, by deleting lines 2 through 5 and inserting: “combination of occurrences that:

    (a) Could not have been reasonably foreseen;

    (b) Affects the health, welfare and safety of the units’ owners of the association;

    (c) Requires the immediate attention of, and possible action by, the executive board; and

    (d) Makes it impracticable to comply with the provisions of subsection 2 or 3.”.

    Amend sec. 24, page 15, lines 25 and 26, by deleting: “meeting the units’ owners of the association.” and inserting “meeting.”.

    Amend sec. 25, page 16, line 10, by deleting “subsection,” and inserting “section,”.

    Amend sec. 25, page 16, line 12, after “owner.” by inserting: “A unit’s owner may give a proxy only to a member of his immediate family, a tenant of the unit’s owner who resides in the common-interest community or another unit’s owner who resides in the common-interest community.”.

    Amend sec. 25, page 16, by deleting lines 16 through 22 and inserting: “person presiding over a meeting of the association. A proxy is void if [it] :

    (a) It is not dated or purports to be revocable without notice [.] ;

    (b) It does not designate the votes that must be cast on behalf of the unit’s owner who executed the proxy; or

    (c) The holder of the proxy does not disclose at the beginning of the meeting for which the proxy is executed the number of proxies pursuant to which he will be casting votes and the voting instructions received for each proxy.

A proxy terminates [one year after its date, unless it specifies a shorter term.] immediately after the conclusion of the meeting for which it was executed. A vote may not be cast pursuant to a proxy for the election of a member of the executive board of an”.

    Amend sec. 25, page 16, between lines 38 and 39 by inserting:

    “6.  Votes cast for the election of a member of the executive board of an association must be counted in public.”.

    Amend sec. 26, page 16, line 40, by deleting “shall” and inserting “may”.

    Amend sec. 26, page 17, by deleting lines 14 through 18 and inserting: “certificate [.] ;

    (c) Must establish standards of practice for persons engaged in property management for a common-interest community;

    (d) Must establish the grounds for initiating disciplinary action against a person to whom a certificate has been issued, including, without limitation, the grounds for placing conditions, limitations or restrictions on a certificate and for the suspension or revocation of a certificate; and

    (e) Must establish rules of practice and procedure for conducting disciplinary hearings.

The real estate division of the department of business and industry may investigate the property managers to whom certificates have been issued to ensure their compliance with the standards of practice adopted pursuant to this subsection and”.

    Amend sec. 26, page 17, line 31, by deleting “[4.] 5.” and inserting:

    “[4.] (h) A person who is engaged in property management for a common-interest community on October 1, 1999, and is granted an exemption from the requirements of subsection 2 by the administrator upon demonstration that he is qualified and competent to engage in property management for a common-interest community.

    5.”.

    Amend sec. 27, page 18, lines 9 and 10, by deleting: “replacement , restoration and maintenance” and inserting: “replacement and restoration”.

    Amend sec. 27, page 18, line 14, by deleting: “replacing , restoring and maintaining” and inserting: “replacing and restoring”.

    Amend sec. 27, page 19, line 2, by deleting: “regularly scheduled meeting.” and inserting: “meeting of the units’ owners of the association.”.

    Amend sec. 27, page 19, between lines 17 and 18 by inserting:

    “9.  A vote taken to approve or ratify the commencement of a civil action is void unless the notice of the meeting at which the vote is to be taken includes an explanation prepared by an attorney who is authorized to practice law in this state of:

    (a) The estimated costs of the civil action, including reasonable attorney’s fees;

    (b) The potential benefits of the civil action and the potential adverse consequences if the decision is not favorable to the association, including, without limitation, the potential liability of the association for the payment of attorney’s fees and costs;

    (c) The possible effects of the civil action on the value of property located within the common-interest community; and

    (d) Such other information as may be required by the administrator including, without limitation, disclosures that are required to be made upon the sale of the property.”.

    Amend sec. 28, page 19, by deleting lines 25 through 27 and inserting: “administrator [of the real estate division of the department of business and industry] for every unit in the association.”.

    Amend sec. 28, page 19, by deleting lines 29 and 30 and inserting: “administrator [of the real estate division of the department of business and industry] a fee established by regulation of the administrator for each unit in”.

    Amend sec. 28, page 19, line 38, after “office.” by inserting: “In no event may the fees required to be paid pursuant to this section exceed $3 per unit.”.

    Amend sec. 28, page 19, line 40, by deleting: “more than one association.” and inserting: “a master association and to an association organized pursuant to NRS 116.3101.”.

    Amend the bill as a whole by adding a new section designated sec. 28.5, following sec. 28, to read as follows:

    “Sec. 28.5.  NRS 116.31155 is hereby amended to read as follows:

    116.31155  1.  An association shall:

    (a) If the association is required to pay the fee imposed by NRS 78.150 or 82.193, pay to the [secretary of state at the time it is required to pay the fee imposed by those sections] administrator a fee established by regulation of the administrator for every unit in the association.

    (b) If the association is organized as a trust or partnership, pay to the administrator a fee established by regulation of the administrator for each unit in the association. [The fee must be paid on or before January 1 of each year.]

    2.  The fees required to be paid pursuant to this section must be:

    (a) Paid at such times as are established by the administrator.

    (b) Deposited with the state treasurer for credit to the account for the ombudsman for owners in common-interest communities created pursuant to NRS 116.1117.

    [(b)] (c) Established on the basis of the actual cost of administering the office of the ombudsman for owners in common-interest communities and not on a basis which includes any subsidy for the office. In no event may the fees required to be paid pursuant to this section exceed $3 per unit.

    3.  A unit’s owner may not be required to pay any portion of the fees required to be paid pursuant to this section to a master association and to an association organized pursuant to NRS 116.3101.

    4.  Upon the payment of the fees required by this section, the administrator shall provide to the association evidence that it paid the fees in compliance with this section.”.

    Amend sec. 31, page 21, line 39, by deleting: “replacement, restoration and maintenance;” and inserting: “replacement and restoration;”.

    Amend sec. 31, page 22, between lines 18 and 19 by inserting:

    “(l) The information statement set forth in NRS 116.41095.”.

    Amend sec. 32, page 22, line 27, after “NRS” by inserting “116.4103 and”.

    Amend sec. 32, page 23, line 22, by deleting: “replace , restore and maintain” and inserting: “replace and restore”.

    Amend sec. 32, page 24, by deleting lines 26 through 31 and inserting: “typically to seek to mediate or arbitrate the dispute and, if mediation or arbitration is unsuccessful, file a lawsuit and ask a court to resolve the dispute. In addition to your personal cost in mediation or arbitration,”.

    Amend sec. 32, page 25, lines 3 and 4, by deleting: “replacement , restoration and maintenance” and inserting: “replacement and restoration”.

    Amend the bill as a whole by deleting sections 33 and 34 and adding new sections designated sections 33 and 34, following sec. 32, to read as follows:

    “Sec. 33.  NRS 38.330 is hereby amended to read as follows:

    38.330  1.  If all parties named in a written claim filed pursuant to NRS 38.320 agree to have the claim submitted for mediation, the parties shall reduce the agreement to writing and shall select a mediator from the list of mediators maintained by the division pursuant to NRS 38.340. Any mediator selected must be available within the geographic area. If the parties fail to agree upon a mediator, the division shall appoint a mediator from the list of mediators maintained by the division. Any mediator appointed must be available within the geographic area. Unless otherwise provided by an agreement of the parties, mediation must be completed within [90] 60 days after the parties agree to mediation. Any agreement obtained through mediation conducted pursuant to this section must, within [30] 20 days after the conclusion of mediation, be reduced to writing by the mediator and a copy thereof provided to each party. The agreement may be enforced as any other written agreement. [The] Except as otherwise provided in this section, the parties are responsible for all costs of mediation conducted pursuant to this section.

    2.  If all the parties named in the claim do not agree to mediation, the parties shall select an arbitrator from the list of arbitrators maintained by the division pursuant to NRS 38.340. Any arbitrator selected must be available within the geographic area. If the parties fail to agree upon an arbitrator, the division shall appoint an arbitrator from the list maintained by the division. Any arbitrator appointed must be available within the geographic area. Upon appointing an arbitrator, the division shall provide the name of the arbitrator to each party.

    3.  The division may provide for the payment of the fees for a mediator or an arbitrator selected or appointed pursuant to this section from the account for the ombudsman for owners in common-interest communities created pursuant to NRS 116.1117, to the extent that money is available in the account for this purpose.

    4.  Except as otherwise provided in this section and except where inconsistent with the provisions of NRS 38.300 to 38.360, inclusive, the arbitration of a claim pursuant to this section must be conducted in accordance with the provisions of NRS 38.075 to 38.105, inclusive, 38.115 [to 38.135, inclusive,] , 38.125, 38.135, 38.155 and 38.165. At any time during the arbitration of a claim relating to the interpretation, application or enforcement of any covenants, conditions or restrictions applicable to residential property or any bylaws, rules or regulations adopted by an association, the arbitrator may issue an order prohibiting the action upon which the claim is based. An award must be made within [90] 30 days after the conclusion of arbitration, unless a shorter period is agreed upon by the parties to the arbitration.

    [4.] 5.  If all the parties have agreed to nonbinding arbitration, any party to the arbitration may, within 30 days after a decision and award have been served upon the parties, commence a civil action in the proper court concerning the claim which was submitted for arbitration. Any complaint filed in such an action must contain a sworn statement indicating that the issues addressed in the complaint have been arbitrated pursuant to the provisions of NRS 38.300 to 38.360, inclusive. If such an action is not commenced within that period, any party to the arbitration may, within 1 year after the service of the award, apply to the proper court for a confirmation of the award pursuant to NRS 38.135.

    [5.] 6.  If all the parties agree in writing to binding arbitration, the arbitration must be conducted in accordance with the provisions of chapter 38 of NRS. An award procured pursuant to such arbitration may be vacated and a rehearing granted upon application of a party pursuant to the provisions of NRS 38.145.

    [6.] 7.  If, after the conclusion of arbitration, a party:

    (a) Applies to have an award vacated and a rehearing granted pursuant to NRS 38.145; or

    (b) Commences a civil action based upon any claim which was the subject of arbitration,

the party shall, if he fails to obtain a more favorable award or judgment than that which was obtained in the initial arbitration, pay all costs and reasonable attorney’s fees incurred by the opposing party after the application for a rehearing was made or after the complaint in the civil action was filed.

    [7.] 8.  Upon request by a party, the division shall provide a statement to the party indicating the amount of the fees for a mediator or an arbitrator selected or appointed pursuant to this section.

    [8.] 9.  As used in this section, “geographic area” means an area within 150 miles from any residential property or association which is the subject of a written claim submitted pursuant to NRS 38.320.

    Sec. 34.  NRS 78.150 is hereby amended to read as follows:

    78.150  1.  A corporation organized under the laws of this state shall, on or before the first day of the second month after the filing of its articles of incorporation with the secretary of state, file with the secretary of state a list, on a form furnished by him, containing:

    (a) The name of the corporation;

    (b) The file number of the corporation, if known;

    (c) The names and titles of all of its required officers and the names of all of its directors;

    (d) The mailing or street address, either residence or business, of each officer and director listed, following the name of the officer or director; and

    (e) The signature of an officer of the corporation certifying that the list is true, complete and accurate.

    2.  The corporation shall annually thereafter, on or before the last day of the month in which the anniversary date of incorporation occurs in each year, file with the secretary of state, on a form furnished by him, an amended list containing all of the information required in subsection 1. If the corporation has had no changes in its required officers and directors since its previous list was filed, no amended list need be filed if an officer of the corporation certifies to the secretary of state as a true and accurate statement that no changes in the required officers or directors has occurred.

    3.  Upon filing a list of officers and directors, or certifying that no changes have occurred, the corporation shall pay to the secretary of state a fee of $85.

    4.  The secretary of state shall, 60 days before the last day for filing the annual list required by subsection 2, cause to be mailed to each corporation which is required to comply with the provisions of NRS 78.150 to 78.185, inclusive, and which has not become delinquent, a notice of the fee due pursuant to subsection 3 and a reminder to file a list of officers and directors or a certification of no change. Failure of any corporation to receive a notice or form does not excuse it from the penalty imposed by law.

    5.  If the list to be filed pursuant to the provisions of subsection 1 or 2 is defective in any respect or the fee required by subsection 3 or 7 is not paid, the secretary of state may return the list for correction or payment.

    6.  An annual list for a corporation not in default which is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year.

    7.  If the corporation is an association as defined in NRS 116.110315, the secretary of state shall not accept the filing required by this section unless it is accompanied by evidence of the payment of the fee required to be paid pursuant to NRS 116.31155[.] that is provided to the association pursuant to subsection 4 of that section.”.

    Amend sec. 35, page 26, by deleting lines 26 through 28 and inserting:

    “Sec. 35.  NRS 116.1102, 116.1115, 116.1202, 116.1203, 116.1204, 116.1205, 116.1207 and 116.1208 are hereby repealed.”.

    Amend sec. 37, page 26, by deleting lines 37 through 39 and inserting: “than October 1, 2000, any declaration, bylaw or other governing document of a common-interest community created on or after January 1, 1992, that does not conform to the provisions of chapter 116 of NRS, as amended by this act, must be changed to conform to those provisions, and may be so changed without complying with the”.

    Amend the bill as a whole by adding a new section designated sec. 38, following sec. 37, to read as follows:

    “Sec. 38.  1.  This section and sections 1 to 28, inclusive, 29 to 33, inclusive, 35, 36 and 37 of this act become effective on October 1, 1999.

    2.  Sections 28.5 and 34 of this act become effective on July 1, 2000.”.

    Amend the leadlines of repealed sections by deleting the leadlines of NRS 38.300, 38.310, 38.320, 38.330, 38.340, 38.350, 38.360 and 116.1206.

    Amend the title of the bill by deleting the sixth through eighth lines and inserting: “documents of each association organized in this state; expanding the authority of the real estate commission to issue subpoenas;”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senators Townsend, Care and Wiener.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 500.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 399.

    Amend sec. 13, page 2, line 23, after “agency.” by inserting: “The state controller shall maintain the reports to the extent that resources are available.”.

    Amend sec. 20, page 5, line 11, by deleting “possible,”and inserting: “that resources are available,”.

    Amend sec. 23, page 7, line 42, by deleting “The” and inserting: “If resources are available, the”.

    Amend sec. 23, page 7, line 43, by deleting “For” and inserting: “If such a file is established and maintained, for”.

    Senator O’Connell moved the adoption of the amendment.

    Remarks by Senator O’Connell.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Joint Resolution No. 3.

    Resolution read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 270.

    Amend the resolution, pages 2 and 3, by deleting lines 31 through 41 on page 2 and lines 1 through 10 on page 3, and inserting: “volume 62, number 147, page 41137 of the Federal Register and submitted to the United States Office of Management and Budget in February 1999; and be it further

    Resolved, That the United States Environmental Protection Agency is hereby urged to refrain from adopting the proposed regulations unless the proposed regulations are amended to address issues concerning:

    1.  The control of regional haze that is caused by emissions from motor vehicles, fires and air pollution that originates outside the United States; and

    2.  The cost of complying with the proposed regulations; and be it further

    Resolved, That Congress is hereby urged to take any action that is appropriate to prohibit the United States Environmental Protection Agency from adopting the proposed regulations unless the proposed regulations are amended by the United States Environmental Protection Agency to address those issues; and be it further

    Resolved, That the Secretary of the Senate prepare and transmit a copy of this resolution to the Vice President of the United States as the presiding officer of the Senate, the Speaker of the House of Representatives, each member of the Nevada Congressional Delegation, the Director of the United States Office of Management and Budget, the Administrator of the United States Environmental Protection Agency, the Forest Supervisor of the United States Forest Service in Nevada, the Director of the Nevada State Office of the Bureau of Land Management and the Administrator of the Division of Environmental Protection of the State Department of Conservation and Natural Resources; and be it further”.

    Amend the preamble of the resolution, pages 1 and 2, by deleting lines 11 through 18 on page 1 and lines 1 through 8 on page 2, and inserting:

    “Whereas, The standards for controlling and reducing regional haze set forth in the proposed regulations are unreasonable, and the cost of complying with those standards is excessive; and

    Whereas, The proposed regulations do not adequately address issues relating to the control of regional haze that is caused by emissions from motor vehicles, fires and air pollution that originates outside the United States; and”.

    Amend the preamble of the resolution, page 2, by deleting lines 12 and 13 and inserting: “Department of Conservation and Natural Resources, the Nevada Taxpayers Association and the Nevada Association of Counties; and”.

    Amend the preamble of the resolution, page 2, by deleting line 16 and inserting: “adoption will be $2.7 billion per year by the year 2010, of which $2.1 billion per year is estimated to be required of the states in the Western United States; and”.

    Amend the preamble of the resolution, page 2, between lines 19 and 20, by inserting:

    “Whereas, Pursuant to the proposed regulations, the State of Nevada will be unreasonably limited in its potential for future economic activity; and”.

    Amend the preamble of the resolution, page 2, by deleting line 26 and inserting: “cost of complying with the regulations; and

    Whereas, The United States Environmental Protection Agency has received numerous recommendations that it should resubmit the proposed regulations for review and comment by the members of the general public after the proposed regulations are amended to address issues concerning the control of regional haze that is caused by emissions from motor vehicles, fires and air pollution that originates outside the United States and issues concerning the cost of complying with the proposed regulations; and

    Whereas, Despite those recommendations, in February 1999, the United States Environmental Protection Agency submitted the proposed regulations to the United States Office of Management and Budget without amending the proposed regulations to address those issues; now, therefore, be it”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senator Rhoads.

    Amendment adopted.

    Resolution ordered reprinted, engrossed and to third reading.

    Senate Bill No. 478.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 685.

    Amend sec. 7, page 3, line 8, by deleting “1.”.

    Amend sec. 7, page 3, by deleting lines 16 through 22.

    Amend the bill as a whole by adding a new section designated sec. 8.5, following sec. 8, to read as follows:

    “Sec. 8.5.  NRS 281.421 is hereby amended to read as follows:

    281.421  1.  It is hereby declared to be the public policy of this state that:

    (a) A public office is a public trust and shall be held for the sole benefit of the people.

    (b) A public officer or employee must commit himself to avoid conflicts between his private interests and those of the general public whom he serves.

    2.  The legislature finds that:

    (a) The increasing complexity of state and local government, more and more closely related to private life and enterprise, enlarges the potentiality for conflict of interests.

    (b) To enhance the people’s faith in the integrity and impartiality of public officers and employees, adequate guidelines are required to show the appropriate separation between the roles of persons who are both public servants and private citizens.

    (c) Members of the legislature serve as “citizen legislators” who have other occupations and business interests. Each legislator has particular philosophies and perspectives that are necessarily influenced by the life experiences of that legislator, including, without limitation, professional, family and business experiences. Our system assumes that legislators will contribute those philosophies and perspectives to the debate over issues with which the legislature is confronted. The law concerning ethics in government is not intended to require a member of the legislature to abstain on issues which might affect his interests, provided those interests are properly disclosed and that the benefit or detriment accruing to him is not greater than that accruing to any other member of the general business, profession, occupation or group.”.

    Amend sec. 14, page 6, by deleting lines 18 through 22 and inserting:

    “2.  The commission, upon majority vote, may issue a subpoena to compel the attendance of a witness and the production of books and papers. Upon the request of the executive director or the public officer or public employee who is the subject of a request for an opinion, the chairman or, in his absence, the vice chairman, may issue a subpoena to compel the attendance of a witness and the production of books and papers.

    3.  Before”.

    Amend sec. 14, page 6, by deleting lines 35 and 36 and inserting:

    “4.  Each written request submitted by the executive director pursuant to subsection 3 must specify the time and place for the attendance of [any”.

    Amend sec. 14, page 7, line 4, by deleting “3.” and inserting “[3.] 5.”.

    Amend sec. 14, page 7, line 16, by deleting “4.” and inserting “[4.] 6.”.

    Amend sec. 14, page 7, line 27, by deleting “5.” and inserting “[5.] 7.”.

    Amend sec. 15, page 7, line 34, by deleting: “member of the legislative branch” and inserting: “[member of the legislative branch] public officer”.

    Amend sec. 15, page 7, line 40, by deleting: “member of the legislative branch” and inserting: “[member of the legislative branch] public officer”.

    Amend sec. 15, page 8, by deleting lines 20 and 21 and inserting: “without disclosing [the full nature and extent of] sufficient information concerning the gift, loan, commitment or interest [.] to inform the public of the potential effect of the action or abstention upon the person who provided the gift or loan, upon the person to whom he has a commitment, or upon his interest. Except as otherwise provided in subsection 6, such a disclosure”.

    Amend sec. 15, page 8, by deleting line 32 and inserting:

    “4.  If a [member of the legislative branch] public officer declares to the [legislative] body”.

    Amend sec. 15, page 8, line 37, after “committee.” by inserting: “A public officer has a duty to vote upon a matter unless he makes the disclosure required pursuant to subsection 3.”.

    Amend sec. 15, page 8, line 38, by deleting: “member of the legislative branch” and inserting: “[member of the legislative branch] public officer”.

    Amend sec. 15, page 9, line 10, after “7.” by inserting: “The provisions of this section do not, under any circumstances:

    (a) Prohibit a member of the legislative branch from requesting or introducing a legislative measure; or

    (b) Require a member of the legislative branch to take any particular action before or while requesting or introducing a legislative measure.

    8.”.

    Amend sec. 15, page 9, by deleting lines 16 through 18 and inserting:

    “(d) With whom he has a substantial and continuing business relationship; or

    (e) Any other commitment or relationship that is substantially similar to a commitment or relationship described in this subsection.”.

    Amend sec. 16, page 9, line 37, by deleting “Upon” and inserting: “[Upon] Except as otherwise provided in this subsection, upon”.

    Amend sec. 16, page 10, by deleting lines 17 through 22 and inserting: “sufficient cause to render an opinion.]

The commission shall not [determine that there is just and sufficient cause to render an opinion without extending the public officer or employee an opportunity to appear before the commission and present evidence and argument.

    3.  The commission shall] render an opinion interpreting the statutory ethical standards or apply those standards to a given set of facts and circumstances if the request is submitted by a person who is incarcerated in a correctional facility in this state.”.

    Amend sec. 16, page 12, line 9, after “7.” by inserting: “Except as otherwise provided in paragraphs (a) and (b), the proceedings of a panel are confidential until the panel determines whether there is just and sufficient cause to render an opinion. A person who:

    (a) Requests an opinion from the commission pursuant to paragraph (b) of subsection 2 may:

        (1) At any time, reveal to a third party the alleged conduct of a public officer or employee underlying the request that he filed with the commission or the substance of testimony, if any, that he gave before the commission.

        (2) After the panel determines whether there is just and sufficient cause to render an opinion in the matter, reveal to a third party the fact that he requested an opinion from the commission.

    (b) Gives testimony before the commission may:

        (1) At any time, reveal to a third party the substance of testimony that he gave before the commission.

        (2) After the panel determines whether there is just and sufficient cause to render an opinion in the matter, reveal to a third party the fact that he gave testimony before the commission.

    8.”.

    Amend sec. 16, page 12, line 19, by deleting “8.” and inserting “9.”.

    Amend sec. 16, page 12, line 27, by deleting “9.” and inserting “10.”.

    Amend sec. 16, page 12, by deleting line 32 and inserting:

    “[8.] 11.  For good cause shown, the commission may take testimony from a person by telephone or video conference.

    12.  For the purposes of NRS 41.032, the members of the”.

    Amend sec. 16, page 12, line 40, by deleting “11.” and inserting “13.”.

    Amend the bill as a whole by adding a new section designated sec. 19.5, following sec. 19, to read as follows:

    “Sec. 19.5.  NRS 281.581 is hereby amended to read as follows:

    281.581  [A]

    1.  Except as otherwise provided in this section, a candidate or public or judicial officer who fails to file his statement of financial disclosure in a timely manner pursuant to NRS 281.561 is subject to a civil penalty and payment of court costs and attorney’s fees. The amount of the civil penalty is:

    [1.] (a) If the statement is filed not more than 7 days late, $25 for each day the statement is late.

    [2.] (b) If the statement is filed more than 7 days late but not more than 15 days late, $175 for the first 7 days, plus $50 for each additional day the statement is late.

    [3.] (c) If the statement is filed more than 15 days late, $575 for the first 15 days, plus $100 for each additional day the statement is late.

[The]

    2.  A civil penalty imposed pursuant to subsection 1 must be recovered in a civil action brought in the name of the State of Nevada by the commission in a court of competent jurisdiction and deposited with the state treasurer for credit to the state general fund.

    3.  For good cause shown, the commission may waive a civil penalty that would otherwise be imposed pursuant to subsection 1. If the commission waives a civil penalty pursuant to this subsection, the commission shall:

    (a) Create a record which sets forth that the civil penalty has been waived and describes the circumstances that constitute the good cause shown; and

    (b) Ensure that the record created pursuant to paragraph (a) is available for review by the general public.”.

    Amend the bill as a whole by deleting sections 22 through 27, renumbering sec. 28 as sec. 25 and adding new sections designated sections 22 through 24, following sec. 21, to read as follows:

    “Sec. 22.  NRS 294A.345 is hereby amended to read as follows:

    294A.345  1.  A person shall not, with actual malice and the intent to impede the success of the campaign of a candidate, cause to be published a false statement of fact concerning the candidate, including, without limitation, statements concerning:

    (a) The education or training of the candidate.

    (b) The profession or occupation of the candidate.

    (c) Whether the candidate committed, was indicted for committing or was convicted of committing a felony or other crime involving moral turpitude, dishonesty or corruption.

    (d) Whether the candidate has received treatment for a mental illness.

    (e) Whether the candidate was disciplined while serving in the military or was dishonorably discharged from service in the military.

    (f) Whether another person endorses or opposes the candidate.

    (g) The record of voting of a candidate if he formerly served or currently serves as a public officer.

    2.  A person shall not, with actual malice and the intent to impede the success of a campaign for the passage or defeat of a question on the ballot at any election, including any recall or special election, cause to be published a false statement of fact concerning the question on the ballot.

    3.  Any candidate who alleges that a false statement of fact concerning the candidate has been published in violation of subsection 1, and any person or group of persons that advocates the passage or defeat of a question on the ballot at any election, is required to file a report pursuant to NRS 294A.150, and alleges that a false statement of fact has been published in violation of subsection 2, may file a request for an opinion with the commission on ethics pursuant to NRS 281.411 to 281.581, inclusive . [, and NRS 281.477.] Such a request must be filed with the commission not later than 10 days after the date of the election with respect to which the alleged violation occurred. The commission shall give priority to such a request over all other matters pending with the commission.

    4.  A person who violates the provisions of this section is subject to a civil penalty that may be imposed by the commission on ethics pursuant to NRS 281.551.

    5.  As used in this section:

    (a) “Actual malice” means knowledge of the falsity of a statement or reckless disregard for whether a statement is true or false.

    (b) “Publish” means the act of printing, posting, broadcasting, mailing, speaking or otherwise disseminating.

    Sec. 23.  NRS 294A.346 is hereby amended to read as follows:

    294A.346  1.  An employee, agent or volunteer of the campaign of a candidate shall not willfully perform any act in the course of his employment, agency or volunteering that impedes the success of that campaign.

    2.  A person shall not willfully, to impede the success of the campaign of a candidate, offer or give an item of value to:

    (a) A person to induce him to obtain a position as an employee, agent or volunteer for that campaign and perform any act in the course of his employment, agency or volunteering to impede the success of that campaign; or

    (b) An employee, agent or volunteer for that campaign to induce him to perform any act in the course of his employment, agency or volunteering to impede the success of that campaign.

    3.  An employee, agent or volunteer of a campaign for the passage or defeat of a question on the ballot at any election, including any recall or special election, shall not willfully perform any act in the course of his employment, agency or volunteering that impedes the success of that campaign.

    4.  A person shall not willfully, to impede the success of a campaign for the passage or defeat of a question on the ballot at any election, including any recall or special election, offer or give an item of value to:

    (a) A person to induce him to obtain a position as an employee, agent or volunteer for that campaign and perform any act in the course of his employment, agency or volunteering to impede the success of that campaign; or

    (b) An employee, agent or volunteer for that campaign to induce him to perform any act in the course of his employment, agency or volunteering to impede the success of that campaign.

    5.  Any candidate who alleges that a person has violated the provisions of subsection 1 or 2, and any person or group of persons that advocates the passage or defeat of a question on the ballot at any election, is required to file a report pursuant to NRS 294A.150, and alleges that a person has violated the provisions of subsection 3 or 4, may file a request for an opinion with the commission on ethics pursuant to NRS 281.411 to 281.581, inclusive . [, and 281.477.] Such a request must be filed with the commission not later than 10 days after the date of the election with respect to which the alleged violation occurred. The commission shall give priority to such a request over all matters pending with the commission.

    6.  A person who violates the provisions of this section is subject to a civil penalty that may be imposed by the commission on ethics pursuant to NRS 281.551.

    Sec. 24.  NRS 294A.420 is hereby amended to read as follows:

    294A.420  1.  If the secretary of state receives information that a person or entity that is subject to the provisions of NRS 294A.120, 294A.140, 294A.150, 294A.180, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280 or 294A.360 has not filed a report pursuant to the applicable provisions of those sections, the secretary of state may, after giving notice to that person or entity, cause the appropriate proceedings to be instituted in the first judicial district court.

    2.  Except as otherwise provided in this section, a person or entity that violates an applicable provision of NRS 294A.112, 294A.120, 294A.130, 294A.140, 294A.150, 294A.160, 294A.170, 294A.180, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280, 294A.300, 294A.310, 294A.320 or 294A.360 is subject to a civil penalty of not more than $5,000 for each violation and payment of court costs and attorney’s fees. The civil penalty must be recovered in a civil action brought in the name of the State of Nevada by the secretary of state in the first judicial district court and deposited with the state treasurer for credit to the state general fund.

    3.  If a civil penalty is imposed because a person or entity has reported its contributions, expenses or expenditures after the date the report is due, the amount of the civil penalty is:

    (a) If the report is not more than 7 days late, $25 for each day the report is late.

    (b) If the report is more than 7 days late but not more than 15 days late, $50 for each day the report is late.

    (c) If the report is more than 15 days late, $100 for each day the report is late.

    4.  For good cause shown, the secretary of state may waive a civil penalty that would otherwise be imposed pursuant to this section. If the secretary of state waives a civil penalty pursuant to this subsection, the secretary of state shall:

    (a) Create a record which sets forth that the civil penalty has been waived and describes the circumstances that constitute the good cause shown; and

    (b) Ensure that the record created pursuant to paragraph (a) is available for review by the general public.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to state government; authorizing the commission to appoint an executive director and commission counsel and providing their duties; clarifying the intent of the legislature with respect to the Nevada Ethics in Government Law; increasing the number of members of the commission; authorizing the chairman of the commission to issue subpoenas in certain circumstances; revising the provisions relating to requests for opinions by the commission and the manner in which determinations of just and sufficient cause to render such opinions are made; revising the provisions relating to the confidentiality of persons who request an opinion by or provide testimony to the commission; authorizing the commission to take testimony by telephone or video conference in certain circumstances; revising the civil penalties for willful violations of ethical provisions; revising the penalties for certain crimes; authorizing the commission and the secretary of state to waive certain civil penalties in certain circumstances; and providing other matters properly relating thereto.”.

    Senator O’Connell moved the adoption of the amendment.

    Remarks by Senator O’Connell.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

GENERAL FILE AND THIRD READING

    Senate Bill No. 131.

    Bill read third time.

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

    Amendment No. 647.

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

    “Section 1.  Chapter 244 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  The board of county commissioners of a county whose population is 400,000 or more shall enact an ordinance requiring the customer of a public utility who is provided with paging equipment and subleases or otherwise makes the equipment available for use by another person in that county to maintain such records of the names and addresses of the person to whom the equipment is so provided as the board deems necessary.

    2.  The ordinance must include:

    (a) The information that must be included in the records required to be maintained; and

    (b) The length of time the records must be maintained by the customer of the public utility.

    3.  As used in this section, “public utility” has the meaning ascribed to it in NRS 704.020.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to counties; requiring certain counties to establish requirements for the maintenance of records relating to users of paging equipment; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Requires certain counties to establish requirements for maintenance of records relating to users of paging equipment. (BDR 20‑578)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senators Townsend, Neal and Care.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 356.

    Bill read third time.

    The following amendment was proposed by Senator Townsend:

    Amendment No. 680.

    Amend the bill as a whole by renumbering sections 11 and 12 as sections 12 and 13 and adding a new section designated sec. 11, following sec. 10, to read as follows:

    “Sec. 11.  NRS 287.010 is hereby amended to read as follows:

    287.010  1.  The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada may:

    (a) Adopt and carry into effect a system of group life, accident or health insurance, or any combination thereof, for the benefit of its officers and employees, and the dependents of officers and employees who elect to accept the insurance and who, where necessary, have authorized the governing body to make deductions from their compensation for the payment of premiums on the insurance.

    (b) Purchase group policies of life, accident or health insurance, or any combination thereof, for the benefit of such officers and employees, and the dependents of such officers and employees, as have authorized the purchase, from insurance companies authorized to transact the business of such insurance in the State of Nevada, and, where necessary, deduct from the compensation of officers and employees the premiums upon insurance and pay the deductions upon the premiums.

    (c) Provide group life, accident or health coverage through a self-insurance reserve fund and, where necessary, deduct contributions to the maintenance of the fund from the compensation of officers and employees and pay the deductions into the fund. The money accumulated for this purpose through deductions from the compensation of officers and employees and contributions of the governing body must be maintained as an internal service fund as defined by NRS 354.543. The money must be deposited in a state or national bank authorized to transact business in the State of Nevada. Any independent administrator of a fund created under this section is subject to the licensing requirements of chapter 683A of NRS, and must be a resident of this state. Any contract with an independent administrator must be approved by the commissioner of insurance as to the reasonableness of administrative charges in relation to contributions collected and benefits provided. The provisions of NRS 689B.030 to 689B.050, inclusive,apply to coverage provided pursuant to this paragraph[.] , except that the provisions of section 3 of this act do not apply to such coverage.

    (d) Defray part or all of the cost of maintenance of a self-insurance fund or of the premiums upon insurance. The money for contributions must be budgeted for in accordance with the laws governing the county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada.

    2.  If a school district offers group insurance to its officers and employees pursuant to this section, members of the board of trustees of the school district must not be excluded from participating in the group insurance. If the amount of the deductions from compensation required to pay for the group insurance exceeds the compensation to which a trustee is entitled, the difference must be paid by the trustee.”.

    Amend the title of the bill, third line, after the semicolon, by inserting: “exempting certain group health coverage provided by public agencies from certain provisions governing required benefits;”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes relating to required benefits for health insurance. (BDR 57‑682)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

REPORTS OF COMMITTEES

Madam President:

    Your Committee on Commerce and Labor, to which was referred Senate Bill No. 145, 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 Government Affairs, to which were referred Senate Bills Nos. 194, 342, 369, 473, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Ann O’Connell, Chairman

Madam President:

    Your Committee on Taxation, to which were referred Senate Bills Nos. 259, 428, 477, 537, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Mike McGinness, Chairman

MOTIONS, RESOLUTIONS AND NOTICES

    Senator Raggio moved that Senate Bills Nos. 145, 194, 259, 342, 369, 428, 473, 477, 537 be placed on the Second Reading File on the Fourth Agenda.

    Remarks by Senator Raggio.

    Motion carried.

SECOND READING AND AMENDMENT

    Senate Bill No. 145.

    Bill read second time.

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

    Amendment No. 587.

    Amend the bill as a whole by renumbering sections 1 through 14 as sections 3 through 16 and adding new sections designated sections 1 and 2, following the enacting clause, to read as follows:

    “Section 1.  Chapter 683A of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  Except as otherwise provided in subsection 2, an administrator shall approve or deny a claim relating to health insurance coverage within 30 days after the administrator receives the claim. If the claim is approved, the administrator shall pay the claim within 30 days after it is approved. If the approved claim is not paid within that period, the administrator shall pay interest on the claim at the rate of interest established pursuant to NRS 99.040 unless a different rate of interest is established pursuant to an express written contract between the administrator and the provider of health care. The interest must be calculated from 30 days after the date on which the claim is approved until the claim is paid.

    2.  If the administrator requires additional information to determine whether to approve or deny the claim, he shall notify the claimant of his request for the additional information within 20 days after he receives the claim. The administrator shall notify the provider of health care of all the specific reasons for the delay in approving or denying the claim. The administrator shall approve or deny the claim within 30 days after receiving the additional information. If the claim is approved, the administrator shall pay the claim within 30 days after he receives the additional information. If the approved claim is not paid within that period, the administrator shall pay interest on the claim in the manner prescribed in subsection 1.

    3.  An administrator shall not request a claimant to resubmit information that the claimant has already provided to the administrator, unless the administrator provides a legitimate reason for the request and the purpose of the request is not to delay the payment of the claim, harass the claimant or discourage the filing of claims.

    4.  An administrator shall not pay only part of a claim that has been approved and is fully payable.

    5.  A court shall award costs and reasonable attorney’s fees to the prevailing party in an action brought pursuant to this section.

    Sec. 2.  NRS 683A.086 is hereby amended to read as follows:

    683A.086  1.  No person may act as an administrator unless he has entered into a written agreement with an insurer, and the written agreement contains provisions to effectuate the requirements contained in NRS 683A.0867 to 683A.0883, inclusive, and section 1 of this act which apply to the duties of the administrator.

    2.  A copy of an agreement entered into under the provisions of this section must be retained in the records of the administrator and of the insurer for a period of 5 years after the termination of the agreement.

    3.  When a policy is issued to a trustee or trustees, a copy of the trust agreement and amendments must be obtained by the administrator and a copy forwarded to the insurer. Each agreement must be retained by the administrator and by the insurer for a period of 5 years after the termination of the policy.

    4.  The commissioner may adopt regulations which specify the functions an administrator may perform on behalf of an insurer.”.

    Amend sec. 2, page 1, line 16, by deleting “claimant.” and inserting: “provider of health care.”.

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

    “4.  An insurer shall not pay only part of a claim that has been approved and is fully payable.”.

    Amend sec. 4, page 2, line 36, by deleting “claimant.” and inserting: “provider of health care.”.

    Amend sec. 4, page 3, by deleting lines 11 and 12 and inserting:

    “4.  An insurer shall not pay only part of a claim that has been approved and is fully payable.”.

    Amend sec. 5, page 3, line 16, by deleting: “6 and 7” and inserting: “8 and 9”.

    Amend sec. 7, page 3, line 33, by deleting “claimant.” and inserting: “provider of health care.”.

    Amend sec. 7, page 4, by deleting lines 8 and 9 and inserting:

    “4.  A carrier shall not pay only part of a claim that has been approved and is fully payable.”.

    Amend sec. 9, page 4, line 27, by deleting “claimant.” and inserting: “provider of health care.”.

    Amend sec. 9, page 5, by deleting lines 3 and 4 and inserting:

    “4.  A society shall not pay only part of a claim that has been approved and is fully payable.”.

    Amend sec. 11, page 5, line 24, by deleting “claimant.” and inserting: “provider of health care.”.

    Amend sec. 11, page 6, by deleting lines 1 and 2 and inserting:

    “4.  A corporation shall not pay only part of a claim that has been approved and is fully payable.”.

    Amend sec. 13, page 6, line 23, by deleting: “claimant fixing a different rate of interest.” and inserting: “provider of health care.”.

    Amend sec. 13, page 7, by deleting lines 1 and 2 and inserting:

    “4.  A health maintenance organization shall not pay only part of a claim that has been approved and is fully payable.”.

    Amend sec. 14, page 7, line 22, by deleting “1” and inserting “3”.

    Amend the title of the bill, first line, after “insurance;” by inserting: “requiring an administrator to pay claims relating to health insurance coverage in a certain manner;”.

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

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 194.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 467.

    Amend section 1, page 2, by deleting line 4 and inserting: “established a fund pursuant to NRS 354.6115 to mitigate the effects of a natural disaster, a”.

    Amend section 1, page 2, between lines 25 and 26, by inserting:

    “6.  As used in this section, the term “natural disaster” has the meaning ascribed to it in NRS 354.6115.”.

    Amend the bill as a whole by deleting sections 2 through 6, renumbering sec. 7 as sec. 3 and adding a new section designated sec. 2, following section 1, to read as follows:

    “Sec. 2.  NRS 354.6115 is hereby amended to read as follows:

    354.6115  1.  The governing body of a local government may, by resolution, establish a fund to stabilize the operation of the local government[.] and mitigate the effects of natural disasters.

    2.  The money in the fund must be used only [if] :

    (a) If the total actual revenue of the local government falls short of the total anticipated revenue in the general fund for the fiscal year in which the local government uses that money[.] ; or

    (b) To pay expenses incurred by the local government to mitigate the effects of a natural disaster.

The money in the fund at the end of the fiscal year may not revert to any other fund or be a surplus for any purpose other than [the] a purpose specified in this subsection.

    3.  The money in the fund may not be used to pay expenses incurred to mitigate the effects of a natural disaster until the governing body of the local government issues a formal declaration that a natural disaster exists. The governing body shall not make such a declaration unless a natural disaster is occurring or has occurred. Upon the issuance of such a declaration, the money in the fund may be used for the payment of the following expenses incurred by the local government as a result of the natural disaster:

    (a) The repair or replacement of roads, streets, bridges, water control facilities, public buildings, public utilities, recreational facilities and parks owned by the local government and damaged by the natural disaster;

    (b) Any emergency measures undertaken to save lives, protect public health and safety or protect property within the jurisdiction of the local government;

    (c) The removal of debris from publicly or privately owned land and waterways within the jurisdiction of the local government that was undertaken because of the natural disaster;

    (d) Expenses incurred by the local government for any overtime worked by an employee of the local government because of the natural disaster or any other extraordinary expenses incurred by the local government because of the natural disaster; and

    (e) The payment of any grant match the local government must provide to obtain a grant from a federal disaster assistance agency for an eligible project to repair damage caused by the natural disaster within the jurisdiction of the local government.

    4.  The balance in the fund must not exceed [10] 15 percent of the expenditures from the general fund for the previous fiscal year, excluding any federal funds expended by the local government.

    5.  The annual budget and audit report of the local government prepared pursuant to NRS 354.624 must specifically identify the fund and:

    (a) Indicate in detail the manner in which money in the fund was expended during the previous fiscal year;

    (b) Specify the amount of money, if any, that will be deposited in the fund for the next fiscal year; and

    (c) Identify any planned accumulation of the money in the fund.

The audit report must include a statement by the auditor whether the local government has complied with the provisions of this subsection.

    6.  As used in this section:

    (a) “Grant match” has the meaning ascribed to it in NRS 353.2725.

    (b) “Natural disaster” means a fire, flood, earthquake, drought or any other occurrence that:

        (1) Results in widespread or severe damage to property or injury to or the death of persons within the jurisdiction of the local government; and

        (2) As determined by the governing body of the local government, requires immediate action to protect the health, safety and welfare of persons residing within the jurisdiction of the local government.”.

    Amend sec. 7, page 5, line 17, by deleting: “and section 2 of this act,”.

    Amend sec. 7, page 5, line 18, by deleting “10” and inserting “[10] 15”.

    Amend sec. 7, page 5, lines 23 and 24, by deleting: “354.6115 [:] or section 2 of this act:” and inserting “354.6115:”.

    Amend the bill as a whole by deleting sec. 8 and renumbering sec. 9 as sec. 4.

    Amend the title of the bill to read as follows:

    “AN ACT relating to local financial administration; revising the provisions governing the authority to establish a fund to stabilize the operation of a local government to increase the amount of money that may be transferred to the fund and include mitigation of the effects of a natural disaster as an authorized use of the money in the fund; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Authorizes local government to increase money transferred to fund to stabilize the operation of the local government and use money in fund to mitigate effects of natural disaster. (BDR 31-83)”.


    Senator O’Connell moved the adoption of the amendment.

    Remarks by Senator O’Connell.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 259.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 440.

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

    “Sec. 6.  NRS 231.170 is hereby amended to read as follows:

    231.170  1.  The commission on tourism is composed of the lieutenant governor, who is its chairman, and [six] eight members who are appointed by the governor.

    2.  The governor shall appoint as members of the commission persons who are informed on and have experience in travel and tourism, including the business of gaming.

    3.  The chief administrative officers of the county fair and recreation boards [of counties whose population is 100,000 or more] or, if there is no county fair and recreation board in the county, the chairman of the board of county commissioners, of the three counties that paid the largest amount of the proceeds from the taxes imposed on the revenue from the rental of transient lodging to the department of taxation for deposit with the state treasurer for credit to the fund for the promotion of tourism created by NRS 231.250 for the previous fiscal year are ex officio but nonvoting members of the commission. A change in any member of the commission who serves pursuant to the provisions of this subsection that is required because of a change in the amount of the proceeds paid to the department of taxation by each county must be effective on January 1 of the calendar year immediately following the fiscal year in which the proceeds were paid to the department of taxation.

    4.  The governor shall appoint : [at least one member who is a resident of:]

    (a) At least one member who is a resident of Clark County.

    (b) At least one member who is a resident of Washoe County.

    (c) [A county] Two members who are residents of counties whose population is [35,000] 50,000 or less.

    (d) One member who is a resident of any county in this state.”.

    Amend sec. 7, page 9, by deleting lines 5 through 19 and inserting:

    “1.  “Artist” means an actor, musician, dancer or athlete.

    2.  “Production” means:

    (a) A stage production[; or

    (b) A] or a motion picture, as that term is defined in NRS 231.020,that uses artists[.] ; or

    (b) A television production, concert, trade show, exhibition, convention or sporting event.

The term includes the technical personnel used to create and produce the production.

    3.  “Producer-promoter-employer” means a natural person who, or a firm, association or corporation which, supervises or finances a production or attempts to organize a production. The term also includes a company that, in connection with the production of a motion picture within this state:

    (a) Is hired or established to organize or manage the payroll of the production and is the employer of record of any or all of the persons engaged in the production; or

    (b) Is responsible for all of the debts and obligations incurred by a motion picture company in the production.”.

    Amend the title of the bill by deleting the fourth and fifth lines and inserting: “privilege of conducting business in this state; increasing the membership of the commission on tourism; revising the”.

    Senator McGinness moved the adoption of the amendment.

    Remarks by Senator McGinness.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 342.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 576.

    Amend the bill as a whole by renumbering sections 1 through 7 as sections 2 through 8 and adding a new section designated section 1, following the enacting clause, to read as follows:

    “Section 1.  The legislature hereby declares that the provisions of this act:

    1.  Are intended to direct the state and its political subdivisions as market participants and proprietors in the marketplace, not as regulators, to ensure the timely and cost-efficient construction, repair or reconstruction of public works.

    2.  Must not be construed as regulating in the areas of labor relations or employee benefit plans.”.

    Amend section 1, page 1, line 3, by deleting: “subsections 2 and 3,” and inserting “subsection 2,”.

    Amend section 1, pages 1 and 2, by deleting line 15 on page 1 and lines 1 through 17 on page 2, and inserting: “subcontractor who provides benefits directly to his workmen pursuant to the terms of employment established by the contractor or subcontractor to agree that:

    (a) He will allow his workmen, for the term of the public work, to elect to receive the benefits provided by the local labor organization to which his workmen would most likely belong if they were to choose to become members of a labor organization, rather than the benefits he provides;

    (b) If any of his workmen elect to receive the benefits provided by such local labor organization, he will make a monetary contribution to that labor organization for the provision of benefits for those workmen for the term of the public work; and

    (c) If any of his workmen reject the benefits provided by such local labor organization and the benefits he provides cost less to provide than the benefits provided by such local labor organization, he will pay directly to those workmen the difference between the cost of the benefits that he provides to his workmen and the cost of the benefits that such local labor organization provides to its members.”.

    Amend section 1, page 2, line 18, by deleting “4.” and inserting “3.”.

    Amend sec. 2, page 2, line 22, by deleting “1” and inserting “2”.

    Amend sec. 3, page 2, line 32, by deleting “1” and inserting “2”.

    Amend sec. 4, page 3, line 11, by deleting “1” and inserting “2”.

    Amend sec. 4, page 3, line 13, by deleting “1” and inserting “2”.

    Amend sec. 5, page 4, line 9, by deleting “1” and inserting “2”.

    Amend sec. 6, page 5, line 13, by deleting “1” and inserting “2”.

    Senator Porter moved the adoption of the amendment.

    Remarks by Senators Porter and Care.

    Conflict of interest declared by Senator Care.

    Amendment adopted.

    Motion carried on a division of the house.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 369.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 338.

    Amend the bill as a whole by renumbering sections 1 through 8 as sections 3 through 10 and adding new sections designated sections 1 and 2, following the enacting clause, to read as follows:

    “Section 1.  Chapter 349 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

    Sec. 2.  1.  The director may provide financing for a project pursuant to this section if:

    (a) The financing is limited in amount and purpose to the payment of the costs associated with:

        (1) The acquisition, refurbishing, replacement and installation of equipment for the project; and

        (2) The issuance of bonds pursuant to this section;

    (b) The total amount of the bonds issued pursuant to this section for a particular project does not exceed $2,500,000;

    (c) The director determines that the bonds will:

        (1) Be sold only to qualified institutional buyers, as defined in Rule 144A of the Securities and Exchange Commission, 17 C.F.R. § 230.144A, in minimum denominations of at least $100,000; or

        (2) Receive a rating within one of the top four rating categories of Moody’s Investors Service, Inc., Standard and Poor’s Rating Services or Fitch IBCA, Inc.;

    (d) The director makes the findings set forth in paragraphs (a) to (e), inclusive, (g) and (h) of subsection 2 of NRS 349.580, and the governing body of the city or county where the project is to be located approves the findings of the director; and

    (e) The director complies with the guidelines established pursuant to subsection 2.

    2.  The board shall establish guidelines for the provision of financing for a project pursuant to this section.”.

    Amend section 1, page 1, by deleting lines 1 through 3 and inserting:

    “Sec. 3.  1.  Except as otherwise provided in subsection 2, the director, the”.

    Amend section 1, page 1, by deleting line 8 and inserting: “inclusive, and section 2 of this act.”.

    Amend section 1, page 2, line 6, by deleting “inclusive.” and inserting: “inclusive, and section 2 of this act.”.

    Amend sec. 2, page 2, line 19, by deleting “section 1” and inserting: “sections 2 and 3”.

    Amend sec. 4, page 2, line 39, by deleting “section 1” and inserting: “sections 2 and 3”.

    Amend sec. 5, page 3, line 27, by deleting “349.640,” and inserting: “349.640 and section 2 of this act,”.

    Amend sec. 7, page 5, line 27, by deleting “section 1” and inserting: “sections 2 and 3”.

    Amend sec. 8, page 6, line 20, by deleting “section 1” and inserting: “sections 2 and 3”.

    Amend sec. 8, page 7, line 1, after “349.590” by inserting: “and section 2 of this act”.

    Amend the bill as a whole by renumbering sec. 9 as sec. 12 and adding a new section designated sec. 11, following sec. 8, to read as follows:

    “Sec. 11.  1.  The director shall not provide any financing pursuant to section 2 of this act until the state board of finance has established the guidelines required pursuant to subsection 2 of that section.

    2.  For the purposes of this section, “director” has the meaning ascribed to it in NRS 349.440.”.

    Senator O’Donnell moved the adoption of the amendment.

    Remarks by Senator O’Donnell.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 428.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 441.

    Amend the bill as a whole by renumbering section 1 as sec. 10 and adding new sections designated sections 1 through 9, following the enacting clause, to read as follows:

    “Section 1.  Chapter 369 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 7, inclusive, of this act.

    Sec. 2.  A supplier who ships liquor into this state pursuant to paragraph (b) or (c) of subsection 2 of NRS 369.490 must pay the excise tax levied pursuant to NRS 369.330.

    Sec. 3.  A supplier who ships wine into this state pursuant to paragraph (c) of subsection 2 of NRS 369.490 must designate an importer in this state if the supplier:

    1.  Ships 100 cases or more of wine into this state in a fiscal year; and

    2.  Has not already designated an importer in this state.

    Sec. 4.  If a supplier ships 200 or more cases of wine into this state pursuant to paragraph (c) of subsection 2 of NRS 369.490 in a fiscal year, he must pay a fee equal to the amount of the fee for a license as an importer of wine, beer and liquor in this state for that fiscal year. The fee is due on or before the 30th calendar day after the date on which the 200th case of wine was shipped and is valid only for the remainder of the fiscal year in which the 200th case of wine was shipped.

    Sec. 5.  A supplier who ships liquor into this state pursuant to paragraph (b) or (c) of subsection 2 of NRS 369.490 shall preserve for inspection and audit by the department and its agents, for a period of 4 years, all invoices and lists of liquors shipped to a location in this state, specifying the:

    1.  Kind and quantity of liquor shipped in each order.

    2.  Name of the person to whom the liquor was shipped.

    3.  Place to which each order was shipped and the date of shipping.

    Sec. 6.  A wholesaler who is not the importer designated by the supplier pursuant to NRS 369.386 may purchase liquor only from:

    1.  The importer designated by the supplier pursuant to NRS 369.386 to import that liquor; or

    2.  A wholesaler who purchased the liquor from the importer designated by the supplier pursuant to NRS 369.386 to import that liquor.

    Sec. 7.  A retailer may purchase liquor only from:

    1.  The importer designated by the supplier pursuant to NRS 369.386 to import that liquor if that importer is also a wholesaler; or

    2.  A wholesaler who purchased liquor from the importer designated by the supplier pursuant to NRS 369.386 to import that liquor.

    Sec. 8.  NRS 369.150 is hereby amended to read as follows:

    369.150  1.  The department is charged with the duty of administering the provisions of this chapter.

    2.  The department shall:

    (a) Prescribe and cause to be printed and issued free of charge all forms for applications and reports.

    (b) Except as otherwise provided in NRS 369.430, issue free of charge all certificates and permits.

    (c) Adopt and enforce all rules, regulations and standards necessary or convenient to carry out the provisions of this chapter.

    (d) Adopt regulations to carry out the provisions of sections 2 to 7, inclusive, of this act.

    Sec. 9.  NRS 369.386 is hereby amended to read as follows:

    369.386  1.  [A] Except as otherwise provided in section 3 of this act, a supplier of liquor may sell to an importer into this state only if:

    (a) Their commercial relationship is of definite duration or continuing indefinite duration; and

    (b) The importer is granted the right to offer, sell and distribute within this state or any designated area thereof such of the supplier’s brands of packaged malt beverages, distilled spirits and wines, or all of them, as may be specified.

    2.  The supplier shall file with the department a written notice indicating the name and address of each designated importer. Each importer shall file with the department a written acceptance of the designation.

    3.  A brewer, distiller, manufacturer, producer, vintner or bottler of liquor who designates an agent to sell his products to importers into this state shall file with the department a written designation indicating the name and address of the agent, and the agent shall file with the department a written acceptance of the designation.”.

    Amend section 1, page 2, by deleting line 4 and inserting:

        “(3) Imports 12 cases or less of wine per year for his own household or personal use.

    3.  A person who accepts liquor shipped into this state pursuant to paragraph (b) or (c) of subsection 2 must be 21 years of age or older.”.

    Amend the bill as a whole by adding a new section designated sec. 11, following section 1, to read as follows:

    “Sec. 11.  The amendatory provisions of this act do not apply to offenses that were committed before October 1, 1999.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to intoxicating liquor; requiring a supplier who ships liquor into this state to pay certain taxes under certain circumstances; requiring a supplier who ships wine into this state to enter into a franchise agreement with a wholesaler under certain circumstances; requiring a supplier of wine to pay a fee under certain circumstances; requiring a wholesaler of liquor to purchase liquor from certain persons; requiring the department of taxation to adopt certain regulations; allowing the importation without a license of wine by certain persons for personal use; requiring a person who accepts wine shipped into this state to be a certain age; providing a penalty; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes concerning intoxicating liquor. (BDR 32-1238)”.

    Senator Schneider moved the adoption of the amendment.

    Remarks by Senator Schneider.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 473.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 463.

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

    “Section 1.  Chapter 354 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.”.

    Amend section 1, page 1, by deleting lines 1 through 4 and inserting:

    “Sec. 2.  1.  If the executive director determines that a severe financial emergency which exists in a local government under management by the department is unlikely to cease to exist”.

    Amend section 1, page 1, line 5, by deleting “5” and inserting “3”.

    Amend section 1, page 2, line 8, by deleting “5” and inserting “3”.

    Amend section 1, page 2, line 11, by deleting “5” and inserting “3”.

    Amend section 1, page 2, by deleting lines 39 through 42 and inserting: “disincorporation or dissolution of a local government that is:

    (a) Created by another local government, it must be disincorporated or dissolved:

        (1) Pursuant to the applicable provisions of law; or

        (2) If there are no specific provisions of law providing for the”.

    Amend section 1, page 3, line 11, after “government.” by inserting: “Any other liabilities and any remaining assets shall revert to the entity that created the local government which is being disincorporated or dissolved.

    (b) Created by a special or local act of the legislature, it may only be disincorporated or dissolved by the legislature. The executive director shall submit notification of the vote approving the disincorporation or dissolution of the local government to the director of the legislative counsel bureau for transmittal to the legislature. At the first opportunity, the legislature shall consider the question of whether the special or local act will be repealed.

    (c) Created in any other manner, it must be disincorporated or dissolved:

        (1) Pursuant to the applicable provisions of law; or

        (2) If there are no specific provisions of law providing for the disincorporation or dissolution of the local government, by the governing body of that local government. If, at the time of the disincorporation or dissolution of the local government pursuant to this paragraph, there are any outstanding loans or bonded indebtedness of the local government, including, without limitation, loans made to the local government by the county or counties in which the local government is located, the taxes for the payment of the bonds or other indebtedness must continue to be levied and collected in the same manner as if the local government had not been disincorporated or dissolved until all outstanding indebtedness is repaid, but for all other purposes the local government shall be deemed disincorporated or dissolved at the time that the governing body of the local government disincorporates or dissolves the local government. Except as otherwise provided in this subparagraph, any other liabilities and any remaining assets of the local government shall revert to the board of county commissioners of the county in which the local government is located. If the local government is located in more than one county, the governing body of the local government shall apportion the remaining liabilities and assets among the boards of county commissioners of the counties in which the local government is located.”.

    Amend section 1, page 3, line 35, by deleting “5” and inserting “3”.

    Amend section 1, page 4, line 11, after “9.” by inserting: “If any provisions providing generally for the disincorporation or dissolution of the local government require that the question of disincorporating or dissolving be published or submitted to a vote of the electors of the local government, the publication required by subsection 3 and the election required by subsection 4 satisfy those requirements. If:

    (a) There is any other conflict between the provisions of this section and any provisions providing generally for the disincorporation or dissolution of a local government; or

    (b) The provisions providing generally for the disincorporation or dissolution of a local government provide additional rights to protest the disincorporation or dissolution of a local government not provided by this section,

the provisions of this section control a disincorporation or dissolution pursuant to this section and any person wishing to protest such a disincorporation or dissolution must proceed in accordance with the provisions of this section.

    10.”.

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

    “Sec. 3.  The management of the department ceases at the time of the disincorporation or dissolution of a local government pursuant to section 2 of this act.

    Sec. 4.  NRS 354.59811 is hereby amended to read as follows:

    354.59811  Except as otherwise provided in NRS 350.087, 354.59813, 354.59815, 354.5982, 354.5987, 354.59871, 354.705, 450.425, 540A.265 and 543.600 , [and] section 1 of [this act,] Assembly Bill No. 275 of this session and section 2 of this act, for each fiscal year beginning on or after July 1, 1989, the maximum amount of money that a local government, except a school district, a district to provide a telephone number for emergencies, or a redevelopment agency, may receive from taxes ad valorem, other than those attributable to the net proceeds of minerals or those levied for the payment of bonded indebtedness and interest thereon incurred as a general or medium-term obligation of the issuer, or for the payment of obligations issued to pay the cost of a water project pursuant to NRS 349.950, or for the payment of obligations under a capital lease executed before April 30, 1981, must be calculated as follows:

    1.  The rate must be set so that when applied to the current fiscal year’s assessed valuation of all property which was on the preceding fiscal year’s assessment roll, together with the assessed valuation of property on the central assessment roll which was allocated to the local government, but excluding any assessed valuation attributable to the net proceeds of minerals, assessed valuation attributable to a redevelopment area and assessed valuation of a fire protection district attributable to real property which is transferred from private ownership to public ownership for the purpose of conservation, it will produce 106 percent of the maximum revenue allowable from taxes ad valorem for the preceding fiscal year, except that the rate so determined must not be less than the rate allowed for the previous fiscal year, except for any decrease attributable to the imposition of a tax pursuant to NRS 354.59813 in the previous year.

    2.  This rate must then be applied to the total assessed valuation, excluding the assessed valuation attributable to the net proceeds of minerals and the assessed valuation of a fire protection district attributable to real property which is transferred from private ownership to public ownership for the purpose of conservation but including new real property, possessory interests and mobile homes, for the current fiscal year to determine the allowed revenue from taxes ad valorem for the local government.”.

    Amend sec. 2, page 4, line 16, by deleting “section 1” and inserting: “sections 2 and 3”.

    Amend the bill as a whole by renumbering sec. 3 as sec. 8 and adding new sections designated sections 6 and 7, following sec. 2, to read as follows:

    “Sec. 6.  NRS 354.695 is hereby amended to read as follows:

    354.695  1.  As soon as practicable after taking over the management of a local government, the department shall, with the approval of the committee:

    (a) Establish and implement a management policy and a financing plan for the local government;

    (b) Provide for the appointment of a financial manager for the local government who is qualified to manage the fiscal affairs of the local government;

    (c) Provide for the appointment of any other persons necessary to enable the local government to provide the basic services for which it was created in the most economical and efficient manner possible;

    (d) Establish an accounting system and separate bank accounts, if necessary, to receive and expend all money and assets of the local government;

    (e) Impose such hiring restrictions as deemed necessary after considering the recommendations of the financial manager;

    (f) Negotiate and approve all contracts entered into by or on behalf of the local government before execution and enter into such contracts on behalf of the local government as the department deems necessary;

    (g) Negotiate and approve all collective bargaining contracts to be entered into by the local government, except issues submitted to a factfinder whose findings and recommendations are final and binding pursuant to the provisions of the Local Government Employee-Management Relations Act;

    (h) Approve all expenditures of money from any fund or account and all transfers of money from one fund to another;

    (i) Employ such technicians as are necessary for the improvement of the financial condition of the local government;

    (j) Meet with the creditors of the local government and formulate a debt liquidation program;

    (k) Approve the issuance of bonds or other forms of indebtedness by the local government;

    (l) Discharge any of the outstanding debts and obligations of the local government; and

    (m) Take any other actions necessary to ensure that the local government provides the basic services for which it was created in the most economical and efficient manner possible.

    2.  The department may provide for reimbursement from the local government for the expenses it incurs in managing the local government. If such reimbursement is not possible, the department may request an allocation by the interim finance committee from the contingency fund pursuant to NRS 353.266, 353.268 and 353.269.

    3.  The governing body of a local government which is being managed by the department pursuant to this section may make recommendations to the department or the financial manager concerning the management of the local government.

    4.  Each state agency, board, department, commission, committee or other entity of the state shall provide such technical assistance concerning the management of the local government as is requested by the department.

    5.  The department may delegate any of the powers and duties imposed by this section to the financial manager appointed pursuant to paragraph (b) of subsection 1.

    6.   Except as otherwise provided in section 1 of [this act,] Assembly Bill No. 275 of this session and section 2 of this act, once the department has taken over the management of a local government pursuant to the provisions of subsection 1, that management may only be terminated pursuant to NRS 354.725.

    Sec. 7.  NRS 361.453 is hereby amended to read as follows:

    361.453  Except as otherwise provided in NRS 354.705 , [and] section 1 of [this act,] Assembly Bill No. 275 of this session and section 2 of this act, the total ad valorem tax levy for all public purposes must not exceed $3.64 on each $100 of assessed valuation, or a lesser or greater amount fixed by the state board of examiners if the state board of examiners is directed by law to fix a lesser or greater amount for that fiscal year.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to local governments; requiring a question to be submitted to the electors of certain local governments in severe financial emergency asking whether the local government should be disincorporated or dissolved if the Nevada tax commission determines that the severe financial emergency is unlikely to cease to exist within 3 years; requiring certain taxes and mandatory assessments to be raised and services of the local government limited if the electors of such a local government do not approve such a question; and providing other matters properly relating thereto.”.

    Senator O’Connell moved the adoption of the amendment.

    Remarks by Senator O’Connell.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

    Senator McGinness moved that Senate Bills Nos. 477, 537, be taken from the Second Reading File and placed on the Second Reading File for the next legislative day.

    Remarks by Senator McGinness.

    Motion carried.

REPORTS OF COMMITTEES

Madam President:

    Your Committee on Finance, to which was referred Assembly Bill No. 345, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

William J. Raggio, Chairman

Madam President:

    Your Committee on Judiciary, to which were referred Assembly Bills Nos. 340, 649, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass, and place on Consent Calendar.

Mark A. James, Chairman


Madam President:

    Your Committee on Taxation, to which was referred Assembly Bill No. 28, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Mike McGinness, Chairman

GUESTS EXTENDED PRIVILEGE OF SENATE FLOOR

    On request of Senator Jacobsen, the privilege of the floor of the Senate Chamber for this day was extended to Judge David Gamble and Washoe-Huffaker School students along with teacher Jim Ribingham.

    On request of President Hunt, the privilege of the floor of the Senate Chamber for this day was extended to Karen Welles.

    Senator Raggio moved that the Senate adjourn until Monday, April 19, 1999 at 10 a.m.

    Motion carried.

    Senate adjourned at 8:01 p.m.

Approved:                                                                  Lorraine T. Hunt

                                                                                   President of the Senate

Attest:    Janice L. Thomas

                Secretary of the Senate