THE EIGHTY-FIRST DAY

                               

 

Carson City (Thursday), April 26, 2001

    Assembly called to order at 10:48 a.m.

    Mr. Speaker presiding.

    Roll called.

    All present except Assemblywoman Freeman, who was excused.

    Prayer by the Chaplain, Reverend Luther Dupree.

    Heavenly Father, we come before Thee in humble submission giving You thanks and praise for this day and time. For this is a day that You have made, and we will rejoice and be glad in it. Lord, I will that men pray everywhere., lifting up holy hands, without wrath and doubting. Therefore, I offer up supplications, prayers, intercession and give thanks for these men and women who have been given, and placed in, authority for this Seventy-First Legislative Session. I ask that as they make decisions on this day, that you would not only guide them, but that you would touch their hearts and minds.  Let them take into careful consideration the lasting effect of every decision they make, and let it all be done for Your glory.

Amen.

    Pledge of allegiance to the Flag.

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

    Motion carried.

REPORTS OF COMMITTEES

Mr. Speaker:

    Your Committee on Commerce and Labor, to which were referred Assembly Bills Nos. 245, 384, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Joseph E. Dini, Jr., Chairman

Mr. Speaker:

    Your Committee on Education, to which was referred Assembly Bill No. 127, 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 Education, to which was referred Assembly Bill No. 226, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Wendell P. Williams, Chairman

Mr. Speaker:

    Your Concurrent Committee on Education, to which was referred Assembly Bill No. 124, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Wendell P. Williams, Chairman


Mr. Speaker:

    Your Committee on Government Affairs, to which were referred Assembly Bills Nos. 92, 430, 444, 456, 490, 555, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

    Your Committee on Government Affairs, to which were referred Assembly Bills Nos. 282, 649, 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 Government Affairs, to which was referred Assembly Bill No. 461, 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 Government Affairs, to which was referred Assembly Bill No. 567, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended, and re-refer to the Committee on Ways and Means.

Douglas A. Bache, Chairman

Mr. Speaker:

    Your Committee on Health and Human Services, to which was referred Assembly Bill No. 636, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

    Your Committee on Health and Human Services, to which was referred Senate Bill No. 110, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Ellen M. Koivisto, Chairman

Mr. Speaker:

    Your Committee on Taxation, to which was referred Assembly Bill No. 243, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

David E. Goldwater, Chairman

MESSAGES FROM THE Senate

Senate Chamber, Carson City, April 25, 2001

To the Honorable the Assembly:

    I have the honor to inform your honorable body that the Senate on this day passed, as amended, Senate Bills Nos. 26, 101, 167, 210, 250, 288, 297, 311, 327, 337, 356, 377, 380, 399, 405, 418, 419, 482, 483, 488, 521, 528, 530, 551, 568.

                                                                                    Mary Jo Mongelli

                                                                             Assistant Secretary of the Senate

MOTIONS, RESOLUTIONS AND NOTICES

    By the Committee on Elections, Procedures, and Ethics:

    Assembly Resolution No. 12—Providing for the appointment of an additional attaché.

    Resolved by the Assembly of the State of Nevada, That Jaynese Knight is elected as an additional attaché of the Assembly for the 71st session of the Legislature of the State of Nevada.

    Assemblywoman Giunchigliani moved the adoption of the resolution.

    Remarks by Assemblywoman Giunchigliani.

    Resolution adopted.

    Assemblywoman Buckley moved that the reading of the history of Senate Bills on Introduction be dispensed with for this legislative day.

    Motion carried.

INTRODUCTION, FIRST READING AND REFERENCE

    Senate Bill No. 26.

    Assemblywoman Buckley moved that the bill be referred to the Concurrent Committees on Transportation and Ways and Means.

    Motion carried.

    Senate Bill No. 101.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Judiciary.

    Motion carried.

    Senate Bill No. 167.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Health and Human Services.

    Motion carried.

    Senate Bill No. 210.

    Assemblywoman Buckley moved that the bill be referred to the Select Committee on Energy.

    Motion carried.

    Senate Bill No. 250.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Ways and Means.

    Motion carried.

    Senate Bill No. 288.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Transportation.

    Motion carried.

    Senate Bill No. 297.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Elections, Procedures, and Ethics.

    Motion carried.

    Senate Bill No. 311.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Education.

    Motion carried.

    Senate Bill No. 327.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Natural Resources, Agriculture, and Mining.

    Motion carried.


    Senate Bill No. 337.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Health and Human Services.

    Motion carried.

    Senate Bill No. 356.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Government Affairs.

    Motion carried.

    Senate Bill No. 377.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Health and Human Services.

    Motion carried.

    Senate Bill No. 380.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Taxation.

    Motion carried.

    Senate Bill No. 399.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Education.

    Motion carried.

    Senate Bill No. 405.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Commerce and Labor.

    Motion carried.

    Senate Bill No. 418.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Commerce and Labor.

    Motion carried.

    Senate Bill No. 419.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Judiciary.

    Motion carried.

    Senate Bill No. 482.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Judiciary.

    Motion carried.

    Senate Bill No. 483.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Health and Human Services.

    Motion carried.

    Senate Bill No. 488.

    Assemblywoman Buckley moved that the bill be referred to the Concurrent Committees on Government Affairs and Judiciary.

    Motion carried.

    Senate Bill No. 521.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Transportation.

    Motion carried.

    Senate Bill No. 528.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Taxation.

    Motion carried.

    Senate Bill No. 530.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Government Affairs.

    Motion carried.

    Senate Bill No. 551.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Judiciary.

    Motion carried.

    Senate Bill No. 568.

    Assemblywoman Buckley moved that the bill be referred to the Committee on Government Affairs.

    Motion carried.

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblywoman Buckley moved that Assembly Bills Nos. 92, 124, 127, 226, 243, 245, 282, 384, 430, 444, 456, 461, 490, 555, 567, 636 and 649 be placed on the Second Reading File.

    Motion carried.

    Assemblywoman Buckley moved that the action whereby Senate Bill No. 380 was referred to the Committee on Taxation be rescinded.

    Motion carried.

    Assemblywoman Buckley moved that Senate Bill No. 380 be referred to the Concurrent Committees on Taxation and Government Affairs.

    Motion carried.

    Assemblywoman Buckley moved that Assembly Bill No. 407 be taken from the General File and placed on the Chief Clerk's desk.

    Remarks by Assemblywoman Buckley.

    Motion carried.

    Assemblywoman Buckley moved that Assembly Bill No. 654 be taken from the General File and placed on the Chief Clerk's desk.

    Remarks by Assemblywoman Buckley.

    Motion carried.

    Assemblywoman Buckley moved that Assembly Bill No. 207 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblywoman Buckley.

    Motion carried.

    Assemblyman Hettrick moved that Assembly Bill No. 465 be taken from the Chief Clerk's desk and placed at the top of the General File.

    Remarks by Assemblyman Hettrick.

    Motion carried.

    Assemblywoman Giunchigliani moved that Assembly Bill No. 469 be taken from the Chief Clerk’s desk and re-referred to the Committee on Ways and Means.

    Motion carried.

    Assemblywoman Giunchigliani moved that Assembly Bill No. 447 be taken from the General File and placed on the Chief Clerk's desk.

    Remarks by Assemblywoman Giunchigliani.

    Motion carried.

    Assemblywoman Giunchigliani moved that Assembly Bill No. 657 be taken from the General File and placed on the Chief Clerk's desk.

    Remarks by Assemblywoman Giunchigliani.

    Motion carried.

    Assemblywoman Giunchigliani moved that Assembly Bill No. 227 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblywoman Giunchigliani.

    Motion carried.

    Assemblyman Williams moved that Assembly Bill No. 351 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblyman Williams.

    Motion carried.

    Assemblyman Oceguera moved that Assembly Bill No. 93 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblyman Oceguera.

    Motion carried.

    Assemblyman de Braga moved that Assembly Bill No. 418 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblyman de Braga.

    Motion carried.

    Assemblyman Williams moved that Assembly Bill No. 318 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblyman Williams.

    Motion carried.

    Assemblyman Anderson moved that Assembly Bill No. 617 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblyman Anderson.

    Motion carried.

    In compliance with a notice given on a previous day, Assemblyman Anderson moved that the vote whereby Assembly Bill No. 296 was passed be reconsidered.

    Remarks by Assemblyman Anderson.

    Motion carried.

    In compliance with a notice given on a previous day, Assemblyman Beers moved that the vote whereby Assembly Bill No. 578 was refused passage be reconsidered.

    Remarks by Assemblyman Beers.

    Motion carried.

notice of exemption

April 26, 2001

    The Fiscal Analysis Division, pursuant to Joint Standing Rule 14.6, has determined the exemption of:  Assembly Bill No. 630.

                                                                                    Mark Stevens

                                                                                   Fiscal Analysis Division

SECOND READING AND AMENDMENT

    Assembly Bill No. 404.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 434.

    Amend section 1, page 1, by deleting lines 16 and 17 and inserting:

“severance from service, an honorable discharge or certificate of satisfactory service”.

    Amend section 1, page 2, by deleting lines 30 and 31 and inserting:

“require production of an honorable discharge or certificate of satisfactory service or a certified”.

    Amend sec. 2, page 2, by deleting lines 41 and 42 and inserting:

“service, an honorable discharge or certificate of satisfactory service from the Armed Forces of the United States, or”.

    Amend sec. 2, page 3, by deleting lines 25 and 26 and inserting:

“require production of an honorable discharge or certificate of satisfactory service or a certified copy thereof, or such other”.

    Amend sec. 3, page 3, by deleting lines 34 through 36 and inserting:

“incurred a permanent service-connected disability and has been honorably discharged from the Armed Forces of the United”.

    Amend sec. 3, page 4, by deleting lines 18 and 19 and inserting:

    “(a) An honorable discharge or other document of honorable separation from the Armed Forces”.

    Amend sec. 3, page 4, by deleting lines 27 through 29 and inserting:

“disability, together with [a] an original or certified copy of a certificate of honorable discharge or satisfactory service.”.

    Amend sec. 4, page 5, by deleting lines 7 through 9 and inserting:

“incurred a permanent service-connected disability and has been honorably discharged from the Armed Forces of the United States, or his surviving”.

    Amend sec. 4, page 5, by deleting line 39 and inserting:

    “(a) An honorable discharge or other document of honorable separation from the Armed”.

    Amend sec. 4, page 5, by deleting lines 47 and 48 and inserting:

“disability, together with an original or certified copy of acertificate of honorable discharge or satisfactory service.”.

    Amend sec. 5, page 6, by deleting lines 39 and 40 and inserting:

“upon severance from service, an honorable discharge or certificate of satisfactory service”.

    Amend sec. 5, page 7, by deleting lines 20 and 21 and inserting:

“and for that purpose shall require production of an honorable discharge or certificate of satisfactory service”.

    Amend sec. 6, page 7, by deleting lines 32 and 33 and inserting:

“severance from service, an honorable discharge or certificate of satisfactory service from the Armed Forces of the United”.

    Amend sec. 6, page 8, by deleting lines 13 and 14 and inserting:

“and for that purpose shall require production of an honorable discharge or certificate of satisfactory service or a certified”.

    Amend sec. 7, page 8, by deleting lines 22 through 24 and inserting:

“incurred a permanent service-connected disability and has been honorably discharged from the Armed Forces of the United”.

    Amend sec. 7, page 8, line 26, by deleting “vehicle privilege” and inserting “governmental services”.

    Amend sec. 7, page 9, by deleting lines 5 and 6 and inserting:

        “(1) An honorable discharge;”.

    Amend sec. 8, page 9, by deleting lines 32 through 34 and inserting:

“incurred a permanent service-connected disability and has been honorably discharged from the Armed Forces of the United States, or his surviving”.

    Amend sec. 8, page 9, lines 35 and 36, by deleting “vehicle privilege” and inserting “governmental services”.

    Amend sec. 8, page 10, by deleting line 13 and inserting:

        “(1) An honorable discharge;”.

    Assemblyman Goldwater moved the adoption of the amendment.


    Remarks by Assemblyman Goldwater.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 428.

    Bill read second time.

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

    Amendment No. 378.

    Amend the bill as a whole by renumbering sections 1 through 9 as sections 3 through 11 and adding new sections designated sections 1 and 2, following the enacting clause, to read as follows:

    “Section 1.  Chapter 341 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

    Sec. 2.  1.  The board may, with the approval of the interim finance committee when the legislature is not in regular or special session, or with the approval of the legislature by concurrent resolution when the legislature is in regular or special session, enter into a contract for services with a contractor licensed pursuant to chapter 624 of NRS to assist the board:

    (a) In the development of designs, plans, specifications and estimates of costs for a proposed construction project.

    (b) In the review of designs, plans, specifications and estimates of costs for a proposed construction project to ensure that the designs, plans, specifications and estimates of costs are complete and that the project is feasible to construct.

    2.  The board is not required to advertise for bids for a contract for services pursuant to subsection 1, but may solicit bids from not fewer than three licensed contractors and may award the contract to the lowest responsible and responsive bidder.

    3.  The board shall adopt regulations establishing procedures for:

    (a) The determination of the qualifications of contractors to bid for the contracts for services described in subsection 1.

    (b) The bidding and awarding of such contracts.

    4.  If a proposed construction project for which a contractor is awarded a contract for services by the board pursuant to subsection 1 is advertised pursuant to NRS 341.148, that contractor may submit a bid for the contract for the proposed construction project if he is qualified pursuant to NRS 338.1377.”.

    Amend section 1, page 1, by deleting lines 1 through 3 and inserting:

    “Sec. 3.  If an appointed member of the board fails to attend three successive”.

    Amend sec. 3, page 2, by deleting lines 9 and 10 and inserting:

    “4.  May negotiate with the lowest responsible and responsive bidder on any contract to obtain a revised bid if:”.

    Amend sec. 3, page 2, line 23, after “legislature.” by inserting:

The board shall adopt by regulation criteria for determining whether a change in the scope of the design or construction of a project requires such approval.”.

    Amend sec. 3, page 2, line 31, by deleting:

by the board.” and inserting:

by the design professional.”.

    Amend sec. 4, page 2, by deleting line 48 and inserting:

“if savings will result to the lowest responsible and responsive bidder.”.

    Amend sec. 4, page 3, by deleting line 5 and inserting:

“lowest responsible and responsive bidder or reject all bids.”.

    Amend sec. 9, pages 4 and 5, by deleting lines 46 through 48 on page 4 and lines 1 and 2 on page 5, and inserting:

    “Sec. 11. 1.  This section and sections 1 to 7, inclusive, 9 and 10 of this act become effective on July 1, 2001.

    2.  Section 7 of this act expires by limitation on October 1, 2003.

    3.  Section 8 of this act becomes effective at 12:01 a.m. on October 1, 2003.”.

    Amend the title of the bill, first line, after “board;” by inserting:

“authorizing the board to enter into a contract with a contractor to assist the board in the development and review of designs, plans, specifications and estimates of costs for a proposed construction project;”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 459.

    Bill read second time.

    The following amendment was proposed by the Committee on Education:

    Amendment No. 619.

    Amend section 1, page 1, line 2, by deleting:

“2, 3 and 4” and inserting:

“1.2 to 4, inclusive,”.

    Amend the bill as a whole by adding new sections designated sections 1.2 through 1.8, following section 1, to read as follows:

    “Sec. 1.2.  As used in sections 1.2 to 4, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 1.4, 1.6 and 1.8 of this act have the meanings ascribed to them in those sections.

    Sec. 1.4.  “Discrimination” means a willful act or course of conduct that is not otherwise authorized by law and is:

    1.  Motivated by the race, color, religion, sex, sexual orientation, age, disability, socioeconomic status or national origin of the person against whom the act is directed;

    2.  Highly offensive to a reasonable person; and

    3.  In violation of:

    (a) Any applicable state law or regulation, including, without limitation, NRS 281.370, 613.310 to 613.435, inclusive, or 651.050 to 651.110, inclusive; or

    (b) Any applicable federal law or regulation, including, without limitation:

      (1) Title VII of the Civil Rights Act, 42 U.S.C. §§ 2000e et seq.;

      (2) The Age Discrimination in Employment Act, 29 U.S.C. §§ 621 et seq.;

      (3) The Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq.; or

      (4) Title IX of the Education Amendments of 1972, 20 U.S.C. §§ 1681 et seq.

    Sec. 1.6.  “Harassment” means a willful act or course of conduct that is not otherwise authorized by law and is:

    1.  Motivated by the race, color, religion, sex, sexual orientation, age, disability, socioeconomic status or national origin of the person against whom the act is directed;

    2.  Highly offensive to a reasonable person; and

    3.  Intended to cause and actually causes another person to suffer serious emotional distress.

    Sec. 1.8. “Intimidation” means a willful act or course of conduct that is not otherwise authorized by law and:

    1.  Is motivated by the race, color, religion, sex, sexual orientation, age, disability, socioeconomic status or national origin of the person against whom the act is directed;

    2.  Is highly offensive to a reasonable person; and

    3.  Poses a threat of immediate harm or actually inflicts harm to another person or to the property of another person.”.

    Amend sec. 4, page 2, by deleting line 26 and inserting:

    “Sec. 4.  1.  The department shall establish, by regulation, a model policy”.

    Amend sec. 4, page, 2, line 35, by deleting “accept” and inserting:

recognize and consider”.

    Amend sec. 4, page 2, line 42, by deleting “Positive methodsand inserting:

A written plan that sets forth positive methods and resources that school personnel may use”.

    Amend sec. 4, page 2, line 45, by deleting “Methods” and inserting:

Written lesson plans that set forth positive methods that school personnel may use”.

    Amend sec. 4, page 3, lines 1, 3 and 6, by deleting “prescribed” and inserting “established”.

    Amend sec. 4, page 3, by deleting lines 7 through 9 and inserting:

by the department.”.

    Amend sec. 6, page 3, line 20, by deleting “prescribed” and inserting “established”.

    Amend sec. 7, page 3, line 31, by deleting “prescribe” and inserting “establish”.

    Amend sec. 8, page 3, line 34, by deleting “prescribed” and inserting “established”.

    Amend sec. 10, page 3, line 42, by deleting:

“1, 2, 3,” and inserting: “1 to 3, inclusive,”.

    Amend the title of the bill, second line, by deleting “prescribe a” and inserting: “establish a model”.

    Assemblyman Williams moved the adoption of the amendment.

    Remarks by Assemblyman Williams.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 663.

    Bill read second time and ordered to third reading.

    Senate Bill No. 190.

    Bill read second time and ordered to third reading.

    Assembly Bill No. 92.

    Bill read second time.

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

    Amendment No. 401.

    Amend section 1, page 1, line 5, after “not” by inserting “in”.

    Amend section 1, page 1, line 7, by deleting “is” and inserting “are”.

    Amend section 1, page 1, by deleting lines 8 through 15 and inserting:

    “(a) The development of affordable housing;

    (b) The control and protection of animals;

    (c) The rehabilitation of rental property in residential neighborhoods;

    (d) The rehabilitation of abandoned residential property; and

    (e) Public health and sanitation.”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 124.

    Bill read second time.

    The following amendment was proposed by the Committee on Education:

    Amendment No. 492.

    Amend section 1, pages 1 and 2, by deleting line 14 on page 1 and lines 1 through 4 on page 2, and inserting: “the pupils attending:

    (a) Elementary schools of the school district who reside 1.5 miles or more from their school of attendance.

    (b) Junior high or middle schools of the school district who reside 2 miles or more from their school of attendance.

    (c) High schools of the school district who reside 3 miles or more from their school of attendance.

 

 
This subsection is intended to express a mandatory minimum and does not prohibit the board of trustees from providing transportation for pupils who reside a shorter distance from their school of attendance than the distances set forth in paragraphs (a), (b) and (c).”.

    Amend the title of the bill, second line, by deleting “elementary school”.

    Assemblyman Williams moved the adoption of the amendment.

    Remarks by Assemblyman Williams.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to the Concurrent Committee on Ways and Means.

    Assembly Bill No. 127.

    Bill read second time.

    The following amendment was proposed by the Committee on Education:

    Amendment No. 360.

    Amend the bill as a whole by renumbering section 1 as sec. 1.5 and adding a new section designated section 1, following the enacting clause, to read as follows:

    “Section 1.  NRS 385.351 is hereby amended to read as follows:

    385.351  1.  On or before April 15 of each year, the board of trustees of each school district shall submit the report required pursuant to subsection 2 of NRS 385.347 to the:

    (a) Governor;

    (b) State board;

    (c) Department;

    (d) Committee; and

    (e) Bureau.

    2.  On or before April 15 of each year, the board of trustees of each school district shall submit the information prepared by the board of trustees pursuant to paragraph (t) of subsection 2 of NRS 385.347 to the commission on educational technology created pursuant to NRS 388.790.

    3.  On or before June 15 of each year, the board of trustees of each school district shall:

    (a) Prepare:

      (1) A separate written report summarizing the effectiveness of the district’s program of accountability. The report must include:

        (I) A review and analysis of the data upon which the report required pursuant to subsection 2 of NRS 385.347 is based and a review and analysis of any data that is more recent than the data upon which the report is based;

        (II) The identification of any problems or factors at individual schools that are revealed by the review and analysis;

        (III) If the board of trustees provides a program of distance education pursuant to sections 10 to 21, inclusive, of this act, the identification of any problems or factors of the program that are revealed by the review and analysis;

        (IV) A summary of the efforts that the school district has made or intends to make in response to the deficiencies or in response to the recommendations identified in the report submitted to the district pursuant to paragraph (b) of subsection 1 of NRS 385.359; and

        [(IV)] (V) A description of the progress that the school district has achieved, if any, as a result of the recommendations submitted pursuant to paragraph (b) of subsection 1 of NRS 385.359 in preceding years and any other analyses made in preceding years.

      (2) A written procedure to improve the achievement of pupils who are enrolled in schools within the district [,] and who are enrolled in programs of distance education provided by the board of trustees of the school district, if applicable, including, but not limited to, a description of the efforts the district has made to correct any deficiencies identified in the written report required pursuant to subparagraph (1). The written procedure must describe sources of data that will be used by the board of trustees to evaluate the effectiveness of the written procedure.

    (b) Submit copies of the written report and written procedure required pursuant to paragraph (a) to the:

      (1) Governor;

      (2) State board;

      (3) Department;

      (4) Committee; and

      (5) Bureau.

    4.  The department shall maintain a record of the information that it receives from each school district pursuant to this section in such a manner as will allow the department to create for each school a yearly profile of information.

    5.  The board of trustees of each school district shall ensure that a copy of the written report and written procedure required pursuant to paragraph (a) of subsection 3 is included with the final budget of the school district adopted pursuant to NRS 354.598.”.

    Amend sec. 2, page 3, by deleting line 36, and inserting: “to sections 10 to 21, inclusive, of this act.”.

    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.  NRS 386.605 is hereby amended to read as follows:

    386.605  1.  On or before April 15 of each year, the governing body of each charter school shall submit the information concerning the charter school that is contained in the report required pursuant to subsection 2 of NRS 385.347 to the:

    (a) Governor;

    (b) State board;

    (c) Department;

    (d) Legislative committee on education created pursuant to NRS 218.5352; and

    (e) Legislative bureau of educational accountability and program evaluation created pursuant to NRS 218.5356.

    2.  On or before April 15 of each year, the governing body of each charter school shall submit the information prepared by the governing body that is contained in the report pursuant to paragraph (t) of subsection 2 of NRS 385.347 to the commission on educational technology created pursuant to NRS 388.790.

    3.  On or before June 15 of each year, the governing body of each charter school shall:

    (a) Prepare:

      (1) A separate written report summarizing the effectiveness of the charter school’s program of accountability. The report must include:

        (I) A review and analysis of the data upon which the report required pursuant to subsection 2 of NRS 385.347 is based and a review and analysis of any data that is more recent than the data upon which the report is based; [and]

        (II) The identification of any problems or factors at the charter school that are revealed by the review and analysis [.] ; and

        (III) If the governing body provides a program of distance education pursuant to sections 10 to 21, inclusive, of this act, the identification of any problems or factors of the program that are revealed by the review and analysis.

      (2) A written procedure to improve the achievement of pupils who are enrolled in the charter school [,] and pupils who are enrolled in programs of distance education provided by the governing body, if applicable, including, but not limited to, a description of the efforts the governing body has made to correct any deficiencies identified in the written report required pursuant to subparagraph (1). The written procedure must describe sources of data that will be used by the governing body to evaluate the effectiveness of the written procedure.

    (b) Submit copies of the written report and written procedure required pursuant to paragraph (a) to the:

      (1) Governor;

      (2) State board;

      (3) Department;

      (4) Legislative committee on education created pursuant to NRS 218.5352; and

      (5) Legislative bureau of educational accountability and program evaluation created pursuant to NRS 218.5356.

    4.  The department shall maintain a record of the information that it receives from each charter school pursuant to this section in such a manner as will allow the department to create for each charter school a yearly profile of information.

    5.  The governing body of each charter school shall ensure that a copy of the written report and written procedure required pursuant to paragraph (a) of subsection 3 is included with the final budget of the charter school adopted by the governing body of the charter school pursuant to the regulations of the department.

    6.  The legislative bureau of educational accountability and program evaluation created pursuant to NRS 218.5356 may authorize a person or entity with whom it contracts pursuant to NRS 385.359 to review and analyze information submitted by charter schools pursuant to this section, consult with the governing bodies of charter schools and submit written reports concerning charter schools pursuant to NRS 385.359.”.

    Amend sec. 13, pages 11 and 12, by deleting lines 48 and 49 on page 11 and lines 1 through 9 on page 12.

    Amend the bill as a whole by adding a new section designated sec. 17.5, following sec. 17, to read as follows:

    “Sec. 17.5.  1.  The board of trustees of a school district that provides a program of distance education shall, upon the request of a parent or legal guardian of a pupil who is enrolled in a charter school, authorize the pupil to participate in a class offered through the program of distance education that is not available to the child at the charter school or participate in an extracurricular activity offered through the program of distance education if:

    (a) The governing body of the charter school has granted permission pursuant to section 19 of this act;

    (b) Space for the pupil in the class or extracurricular activity is available; and

    (c) The parent or legal guardian demonstrates to the satisfaction of the board of trustees that the pupil is qualified to participate in the class or extracurricular activity.

 

 

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If the board of trustees of a school district authorizes a pupil to participate in a class or extracurricular activity pursuant to this subsection, the board of trustees is not required to provide transportation for the pupil to attend the class or extracurricular activity.

    2.  The board of trustees of a school district may revoke its approval for a pupil to participate in a class or extracurricular activity pursuant to subsection 1 if the board of trustees determines that the pupil has failed to comply with applicable statutes, or applicable rules and regulations of the board of trustees. If the board of trustees so revokes its approval, neither the board of trustees nor the program of distance education is liable for any damages relating to the denial of services to the pupil.”.

    Amend sec. 20, page 15, by deleting lines 23 through 30 and inserting:

    “Sec. 20. 1.  If a pupil is enrolled full time in a program of distance education provided by the board of trustees of a school district, the pupil shall be deemed enrolled in that school district for purposes of all the applicable requirements, statutes, regulations, rules and policies of the school district, including, without limitation:”.

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

    “Sec. 20.5. 1.  If the board of trustees of a school district provides a program of distance education, the board of trustees shall:

    (a) Ensure that the persons who operate the program on a day-to-day basis comply with and carry out all applicable requirements, statutes, regulations, rules and policies of the school district, including, without limitation:

      (1) Graduation requirements;

      (2) Accountability of public schools, as set forth in NRS 385.3455 to 385.391, inclusive;

      (3) Provisions governing the attendance and truancy of pupils, as set forth in NRS 392.040 to 392.220, inclusive; and

      (4) Discipline of pupils.

    (b) Prepare a separate written report that contains the information required by subsection 2 of NRS 385.347, as applicable to the pupils who are enrolled in the program of distance education, and include the separate written report with the report that is made pursuant to NRS 385.347.

    2.  If the governing body of a charter school provides a program of distance education, the governing body shall:

    (a) For each pupil who is enrolled in the program, provide written notice to the board of trustees of the school district in which the pupil resides of the type of educational services that will be provided to the pupil through the program. The written notice must be provided to the board of trustees before the pupil receives educational services through the program of distance education.

    (b) Ensure that the persons who operate the program on a day-to-day basis comply with and carry out all applicable requirements, statutes, regulations, rules and policies of the charter school, including, without limitation:

      (1) Graduation requirements;

      (2) Accountability of public schools, as set forth in NRS 385.3455 to 385.391, inclusive;

      (3) Provisions governing the attendance and truancy of pupils, as set forth in NRS 392.040 to 392.220, inclusive; and

      (4) Discipline of pupils.

    (c) Prepare a separate written report that contains the information required by subsection 2 of NRS 385.347, as applicable to the pupils who are enrolled in the program of distance education, and submit the separate written report to the board of trustees of the school district in which the charter school is located for inclusion with the report made by the school district pursuant to NRS 385.347.”.

    Amend the bill as a whole by adding a new section designated sec. 26.5, following sec. 26, to read as follows:

    “Sec. 26.5.  NRS 389.560 is hereby amended to read as follows:

    389.560  1.  The state board shall adopt regulations that require the board of trustees of each school district and the governing body of each charter school to submit to the superintendent of public instruction, the department and the council, in the form and manner prescribed by the superintendent, the results of the examinations administered pursuant to NRS 389.550. The state board shall not include in the regulations any provision that would violate the confidentiality of the test scores of an individual pupil.

    2.  The results of the examinations must be reported for each school, including, without limitation, each charter school, school district and this state, as follows:

    (a) The percentage of pupils who have demonstrated proficiency, as defined by the department, and took the examinations under regular testing conditions; and

    (b) The percentage of pupils who have demonstrated proficiency, as defined by the department, and took the examinations with modifications or accommodations approved by the private entity that created the examination or, if the department created the examination, the department, if such reporting does not violate the confidentiality of the test scores of any individual pupil.

    3.  The department shall adopt regulations prescribing the requirements for reporting the results of pupils who:

    (a) Took the examinations under conditions that were not approved by the private entity that created the examination or, if the department created the examination, by the department;

    (b) Are enrolled in special schools for children with disabilities;

    (c) Are enrolled in an alternative program for the education of pupils at risk of dropping out of high school [;] including, without limitation, a program of distance education that is provided pursuant to sections 10 to 21, inclusive, of this act; or

    (d) Are detained in a:

      (1) Youth training center;

      (2) Youth center;

      (3) Juvenile forestry camp;

      (4) Detention home;

      (5) Youth camp;

      (6) Juvenile correctional institution; or

      (7) Correctional institution.

    The results reported pursuant to this subsection must not be included in the percentage of pupils reported pursuant to subsection 2.

    4.  Not later than 10 days after the department receives the results of the examinations, the department shall transmit a copy of the results to the legislative bureau of educational accountability and program evaluation in a manner that does not violate the confidentiality of the test scores of any individual pupil.

    5.  On or before November 1 of each year, each school district and each charter school shall report to the department the following information for each examination administered in the public schools in the school district or charter school:

    (a) The examination administered;

    (b) The grade level or levels of pupils to whom the examination was administered;

    (c) The costs incurred by the school district or charter school in administering each examination; and

    (d) The purpose, if any, for which the results of the examination are used by the school district or charter school.

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On or before December 1 of each year, the department shall transmit to the budget division of the department of administration and the fiscal analysis division of the legislative counsel bureau the information submitted to the department pursuant to this subsection.

    6.  The superintendent of schools of each school district and the governing body of each charter school shall certify that the number of pupils who took the examinations is equal to the number of pupils who are enrolled in each school in the school district or in the charter school who are required to take the examinations, except for those pupils who are exempt from taking the examinations. A pupil may be exempt from taking the examinations if:

    (a) His primary language is not English and his proficiency in the English language is below the level that the state board determines is proficient, as measured by an assessment of proficiency in the English language prescribed by the state board pursuant to subsection 8; or

    (b) He is enrolled in a program of special education pursuant to NRS 388.440 to 388.520, inclusive, and his program of special education specifies that he is exempt from taking the examinations.

    7.  In addition to the information required by subsection 5, the superintendent of public instruction shall:

    (a) Report the number of pupils who were not exempt from taking the examinations but were absent from school on the day that the examinations were administered; and

    (b) Reconcile the number of pupils who were required to take the examinations with the number of pupils who were exempt from taking the examinations or absent from school on the day that the examinations were administered.

    8.  The state board shall prescribe an assessment of proficiency in the English language for pupils whose primary language is not English to determine which pupils are exempt from the examinations pursuant to paragraph (a) of subsection 6.”.

    Amend sec. 32, page 25, line 13, by deleting “20” and inserting “20.5,”.

    Amend the title of the bill, sixth line, after “governing” by inserting:

“the reports of accountability made by school districts and charter schools to include programs of distance education; revising provisions governing”.

    Assemblyman Williams moved the adoption of the amendment.

    Remarks by Assemblyman Williams.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 226.

    Bill read second time.

    The following amendment was proposed by the Committee on Education:

    Amendment No. 494.

    Amend section 1, page 1, by deleting line 8 and inserting:

    “(b) Prohibit a pupil from attending”.

    Amend section 1, pages 1 and 2, by deleting lines 10 through 14 on page 1 and lines 1 through 31 on page 2 and inserting:

    “2.  A person who is an employee or agent of a school district may suggest that the pupil be evaluated for determination of whether the pupil should be placed in a special program pursuant to NRS 388.470.

    3.  As used in this section:

    (a) “Physician” means a person who is licensed to practice medicine as a physician pursuant to chapter 630 of NRS.

    (b) “Psychotropic drug” means a controlled substance listed in schedule II by the state board of pharmacy pursuant to NRS 453.146, or a neuroleptic or other psychoactive drug which produces a mind-altering effect in a person.”.

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

“taking certain actions with regard to pupils; authorizing certain employees of a school district to suggest that a pupil be evaluated for placement in a special program; and providing other matters”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Makes various changes relating to treatment of pupils. (BDR 34‑88)”.

    Assemblyman Williams moved the adoption of the amendment.

    Remarks by Assemblyman Williams.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 243.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 435.

    Amend the bill as a whole by renumbering sections 1 through 3 as sections 10 through 12 and adding new sections designated sections 1 through 9, following the enacting clause, to read as follows:

    “Section 1.  At the general election on November 5, 2002, a proposal must be submitted to the registered voters of this state to amend the Sales and Use Tax Act, which was enacted by the 47th session of the legislature of the State of Nevada and approved by the governor in 1955, and subsequently approved by the people of this state at the general election held on November 6, 1956.

    Sec. 2.  At the time and in the manner provided by law, the secretary of state shall transmit the proposed act to the several county clerks, and the county clerks shall cause it to be published and posted as provided by law.

    Sec. 3.  The proclamation and notice to the voters given by the county clerks pursuant to law must be in substantially the following form:

    Notice is hereby given that at the general election on November 5, 2002, a question will appear on the ballot for the adoption or rejection by the registered voters of the state of the following proposed act:

AN ACT to amend an act entitled “An Act to provide revenue for the State of Nevada; providing for sales and use taxes; providing for the manner of collection; defining certain terms; providing penalties for violation, and other matters properly relating thereto.” approved March 29, 1955, as amended.

THE PEOPLE OF THE STATE OF NEVADA

DO ENACT AS FOLLOWS:

    Section 1.  The above-entitled act, being chapter 397, Statutes of Nevada 1955, at page 762, is hereby amended by adding thereto a new section to be designated as section 55.5, immediately following section 55, to read as follows:

    Sec. 55.5.  1.  There are exempted from the taxes imposed by this act the gross receipts from the sale of, and the storage, use or other consumption in a county of, farm machinery and equipment employed for the agricultural use of real property.

    2.  As used in this section:

    (a) “Agricultural use” has the meaning ascribed to it in NRS 361A.030.

    (b) “Farm machinery and equipment” means a farm tractor, implement of husbandry, piece of equipment used for irrigation, or a part used in the repair or maintenance of farm machinery and equipment if the purchase price of the part is not less than $1,000. The term does not include:

        (1) A vehicle required to be registered pursuant to the provisions of chapter 482 or 706 of NRS; or

        (2) Machinery or equipment only incidentally employed for the agricultural use of real property.

    (c) “Farm tractor” means a motor vehicle designed and used primarily for drawing an implement of husbandry.

    (d) “Implement of husbandry” means a vehicle that is designed, adapted or used for agricultural purposes, including, without limitation, a plow, machine for mowing, hay baler, combine, piece of equipment used to stack hay, till, harvest, handle agricultural commodities or apply fertilizers, or other heavy, movable equipment designed, adapted or used for agricultural purposes.

    Sec. 2.  This act becomes effective on January 1, 2003.

    Sec. 4.  The ballot page assemblies and the paper ballots to be used in voting on the question must present the question in substantially the following form:

        Shall the Sales and Use Tax Act of 1955 be amended to provide an exemption from the taxes imposed by this act on the gross receipts from the sale and the storage, use or other consumption of farm machinery and equipment employed for the agricultural use of real property?

Yes ¨                    No ¨

    Sec. 5.  The explanation of the question which must appear on each paper ballot and sample ballot and in every publication and posting of notice of the question must be in substantially the following form:

(Explanation of Question)

    The proposed amendment to the Sales and Use Tax Act of 1955 would exempt from the taxes imposed by this act the gross receipts from the sale and storage, use or other consumption of farm machinery and equipment employed for the agricultural use of real property. The Legislature has amended the Local School Support Tax Law and the City-County Relief Tax Law to provide the same exemption.

    Sec. 6.  If a majority of the votes cast on the question is yes, the amendment to the Sales and Use Tax Act of 1955 becomes effective on January 1, 2003. If less than a majority of votes cast on the question is yes, the question fails and the amendment to the Sales and Use Tax Act of 1955 does not become effective.

    Sec. 7.  All general election laws not inconsistent with this act are applicable.

    Sec. 8.  Any informalities, omissions or defects in the content or making of the publications, proclamations or notices provided for in this act and by the general election laws under which this election is held must be so construed as not to invalidate the adoption of the act by a majority of the registered voters voting on the question if it can be ascertained with reasonable certainty from the official returns transmitted to the office of the secretary of state that the proposed amendment was adopted by a majority of those registered voters.

    Sec. 9. NRS 372.7263 is hereby amended to read as follows:

    372.7263  In administering the provisions of NRS 372.335, the department shall apply the exemption for the sale of tangible personal property delivered by the vendor to a forwarding agent for shipment out of state to include [the] :

    1.  The sale of a vehicle to a nonresident to whom a special movement permit has been issued by the department of motor vehicles and public safety pursuant to subsection 1 of NRS 482.3955 [.] ; and

    2.  The sale of farm machinery and equipment, as defined in section 10 of this act, to a nonresident who submits proof to the vendor that the farm machinery and equipment will be delivered out of state not later than 15 days after the sale.”.

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

    Amend section 1, page 1, line 5, by deleting “equipment.” and inserting:

equipment employed for the agricultural use of real property.

    2.  As used in this section:

    (a) “Agricultural use” has the meaning ascribed to it in NRS 361A.030.

    (b) “Farm machinery and equipment” means a farm tractor, implement of husbandry, piece of equipment used for irrigation, or a part used in the repair or maintenance of farm machinery and equipment if the purchase price of the part is not less than $1,000. The term does not include:

        (1) A vehicle required to be registered pursuant to the provisions of chapter 482 or 706 of NRS; or

        (2) Machinery or equipment only incidentally employed for the agricultural use of real property.

    (c) “Farm tractor” means a motor vehicle designed and used primarily for drawing an implement of husbandry.

    (d) “Implement of husbandry” means a vehicle that is designed, adapted or used for agricultural purposes, including, without limitation, a plow, machine for mowing, hay baler, combine, piece of equipment used to stack hay, till, harvest, handle agricultural commodities or apply fertilizers, or other heavy, movable equipment designed, adapted or used for agricultural purposes.”.

    Amend sec. 3, page 2, line 37, by deleting “1” and inserting “10”.

    Amend the bill as a whole by renumbering sec. 4 as sec. 14 and adding a new section designated sec. 13, following sec. 3, to read as follows:

    “Sec. 13. NRS 374.7273 is hereby amended to read as follows:

    374.7273  In administering the provisions of NRS 374.340, the department shall apply the exemption for the sale of tangible personal property delivered by the vendor to a forwarding agent for shipment out of state to include [the] :

    1.  The sale of a vehicle to a nonresident to whom a special movement permit has been issued by the department of motor vehicles and public safety pursuant to subsection 1 of NRS 482.3955 [.] ; and

    2.  The sale of farm machinery and equipment, as defined in section 10 of this act, to a nonresident who submits proof to the vendor that the farm machinery and equipment will be delivered out of state not later than 15 days after the sale.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to taxation; providing for the submission to the voters of the question whether the Sales and Use Tax Act of 1955 should be amended to provide an exemption from the tax for farm machinery and equipment; providing such an exemption from certain analogous taxes; clarifying the provisions governing the administration of the existing exemption from the Sales and Use Tax Act of 1955 and certain analogous taxes for property shipped out of state; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Proposes to exempt from sales and use tax sale of farm machinery and equipment, and provides such exemption from certain analogous taxes. (BDR 32‑866)”.

    Assemblyman Goldwater moved the adoption of the amendment.

    Remarks by Assemblyman Goldwater.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 245.

    Bill read second time.

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

    Amendment No. 284.

    Amend the bill as a whole by deleting sections 1 through 3 and adding new sections designated sections 1 through 15, following the enacting clause, to read as follows:

    “Section 1. Chapter 598 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 13, inclusive, of this act.

    Sec. 2. As used in sections 2 to 13, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 8, inclusive, of this act have the meanings ascribed to them in those sections.

    Sec. 3.  “Advertise” and “advertisement” mean the attempt by publication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to take a tour.

    Sec. 4.  “Charter bus” means a motor vehicle for the transport of persons, on a charter basis, that:

    1.  Has a minimum capacity of 32 persons; and

    2.  Is hired to provide service for a person or group of persons traveling from one location to another for a common purpose.

    Sec. 5. “Commissioner” means the commissioner of the consumer affairs division of the department of business and industry.

    Sec. 6. “Division” means the consumer affairs division of the department of business and industry.

    Sec. 7.  “Tour broker” means a person who, in this state, advertises a tour for a tour operator and collects money from customers for a tour.

    Sec. 8.  “Tour operator” means a person who, in this state, engages in the business of providing a tour with a duration of 24 hours or less to customers.

    Sec. 9.  1.  Except as otherwise provided in subsection 2:  

    (a) In each advertisement for a tour, a tour broker and a tour operator shall disclose in a clear and conspicuous manner the total cash price a customer is required to pay to take the tour. Unless the inclusion of a fee or tax in the total cash price would violate a specific statute of this state or a federal statute or regulation, the total cash price must include, without limitation, all fees, taxes and other charges that a customer for a tour is required to pay to take the tour. If a fee or tax cannot be included in the total cash price because its inclusion would violate a specific statute of this state or a federal statute or regulation, the tour broker or tour operator, as applicable, shall disclose in a clear and conspicuous manner that the fee or tax is not included in the total cash price and must be paid in addition to the total cash price.

    (b) A tour broker and a tour operator shall not charge a customer for a tour an amount that exceeds the sum of:

        (1) The total cash price for the tour which is disclosed in an advertisement for the tour; and

        (2) Any fee or tax that is not included in the total cash price because its inclusion would violate a specific statute of this state or a federal statute or regulation.

    (c) On a billing invoice or receipt given to a customer for a tour, a tour broker and a tour operator shall provide a clear and conspicuous notice which:

        (1) Sets forth the provisions of paragraph (b);

        (2) States that complaints concerning the charges for a tour may be directed to the division; and

        (3) Provides a telephone number for the division.

    (d) The failure of a tour broker or tour operator to comply with a provision of this section constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

    2.  The requirements set forth in subsection 1 do not apply with respect to:

    (a) A tour that is conducted in its entirety on a charter bus; or

    (b) If a tour is not conducted in its entirety on a charter bus, that part of the tour which is conducted on a charter bus.

    Sec. 10.  The provisions of sections 11, 12 and 13 of this act do not apply to a tour broker whose business is confined to advertising, or a tour operator whose business is confined to advertising and conducting, tours that:

    1.  Originate in a county other than a county whose population is 400,000 or more;

    2.  Do not include some manner of motorized conveyance; or

    3.  Are conducted in their entirety on charter buses.

    Sec. 11.  1.  Each tour broker and tour operator shall deposit with the division:

    (a) A bond executed by a corporate surety approved by the commissioner and licensed to do business in this state;

    (b) An irrevocable letter of credit for which the tour broker or tour operator is the obligor, issued by a bank whose deposits are federally insured; or

    (c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the commissioner, except that the interest may accrue to the tour broker or tour operator.

    2.  The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.

    3.  Except as otherwise provided in subsection 8, the amount of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be $10,000.

    4.  If the tour broker or tour operator deposits a bond, the tour broker or tour operator shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the division during business hours. The tour broker or tour operator shall notify the division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the division.

    5.  The commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of this chapter.

    6.  A tour broker or tour operator may change the form of security which he has deposited with the division. If the tour broker or tour operator changes the form of the security, the commissioner may retain for not more than 1 year any portion of the security previously deposited by the tour broker or tour operator as security for claims arising during the time the previous security was in effect.

    7.  If the amount of the bond, letter of credit or certificate of deposit falls below the amount required by this section, the tour broker or tour operator shall, within 30 days, increase the amount of the bond, letter or credit or certificate of deposit to the amount required by this section.

    8.  If the commissioner determines that the business of a tour broker or tour operator involves tours conducted on charter buses, the commissioner shall reduce the amount of security otherwise required pursuant to subsection 3 in proportion to the percentage of the business of the tour broker or tour operator involving tours conducted on charter buses.

    Sec. 12.  1.  The security required to be deposited by a tour broker or tour operator pursuant to section 11 of this act must be held in trust for consumers injured by:

    (a) The bankruptcy of the tour broker or tour operator; or

    (b) The tour broker’s or tour operator’s breach of any agreement entered into in his capacity as a tour broker or tour operator.

    2.  A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.

    3.  The division may bring an action for interpleader against all claimants upon the security. If the division brings such an action, the division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the tour broker or tour operator has its principal place of business. The division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the tour broker or tour operator has posted a bond with the division, the surety is then relieved of all liability under the bond.

    4.  The division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the tour broker or tour operator has posted a bond with the division, distribution pursuant to this subsection relieves the surety of all liability under the bond.

    Sec. 13.  1.  If no claims have been filed against the security deposited with the division pursuant to section 11 of this act within 6 months after the tour broker or tour operator ceases to operate, the commissioner shall release the security to the tour broker or tour operator and shall not audit any claims filed against the security thereafter by consumers.

    2.  If one or more claims have been filed against the security within 6 months after the tour broker or tour operator ceases to operate, the proceeds must not be released to the tour broker or tour operator or distributed to any consumer earlier than 1 year after the tour broker or tour operator ceases to operate.

    3.  For the purposes of this section, the commissioner shall determine the date on which a tour broker or tour operator ceases to operate.

    Sec. 14.  NRS 598.0999 is hereby amended to read as follows:

    598.0999  1.  A person who violates a court order or injunction issued pursuant to NRS 598.0903 to 598.0997, inclusive, upon a complaint brought by the commissioner, the director, the district attorney of any county of this state or the attorney general shall forfeit and pay to the state general fund a civil penalty of not more than $10,000 for each violation. For the purpose of this section, the court issuing the order or injunction retains jurisdiction over the action or proceeding. Such civil penalties are in addition to any other penalty or remedy available for the enforcement of the provisions of NRS 598.0903 to 598.0997, inclusive.

    2.  In any action brought pursuant to NRS 598.0903 to 598.0999, inclusive, if the court finds that a person has willfully engaged in a deceptive trade practice, the commissioner, the director, the district attorney of any county in this state or the attorney general bringing the action may recover a civil penalty not to exceed $2,500 for each violation.

    3.  A natural person, firm, or any officer or managing agent of any corporation or association who knowingly and willfully engages in a deceptive trade practice, other than a deceptive trade practice described in NRS 598.992:

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

    (b) For the second offense, is guilty of a gross misdemeanor.

    (c) For the third and all subsequent offenses, is guilty of a category D felony and shall be punished as provided in NRS 193.130.

    4.  Any offense which occurred within 10 years immediately preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of subsection 3 when evidenced by a conviction, without regard to the sequence of the offenses and convictions.

    5.  If a person violates any provision of NRS 598.0903 to 598.0999, inclusive, 598.100 to 598.2801, inclusive, 598.281 to 598.289, inclusive, 598.840 to 598.966, inclusive, sections 2 to 13, inclusive, of this act or 598.992, fails to comply with a judgment or order of any court in this state concerning a violation of such a provision, or fails to comply with an assurance of discontinuance or other agreement concerning an alleged violation of such a provision, the commissioner or the district attorney of any county may bring an action in the name of the State of Nevada seeking:

    (a) The suspension of the person’s privilege to conduct business within this state; or

 

 
    (b) If the defendant is a corporation, dissolution of the corporation.

 

 

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The court may grant or deny the relief sought or may order other appropriate relief.

    Sec. 15. The amendatory provisions of this act do not apply to offenses committed before October 1, 2001.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to deceptive trade practices; requiring certain tour brokers and tour operators to make certain disclosures relating to price in an advertisement for a tour; prohibiting certain tour brokers and tour operators from charging more for a tour than the price disclosed in an advertisement for the tour; requiring certain tour brokers and tour operators to include certain information on a billing invoice or receipt given to a customer for a tour; requiring certain tour brokers and tour operators to deposit security with the consumer affairs division of the department of business and industry; authorizing certain consumers to bring and maintain an action to recover against the deposited security; providing for the release of the deposited security within a certain period after the tour broker or tour operator ceases to operate; providing penalties; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY¾Makes various changes relating to advertising and charges by certain tour brokers and tour operators and requires certain tour brokers and tour operators to deposit security. (BDR 52‑1021)”.

    Assemblyman Dini moved the adoption of the amendment.


    Remarks by Assemblyman Dini.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 282.

    Bill read second time.

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

    Amendment No. 467.

    Amend section 1, page 1, by deleting lines 2 through 12 and inserting:

    “289.050  [Except as otherwise provided in NRS 289.070:]

    1.  If a peace officer refuses to submit to a polygraphic examination:

    (a) No law enforcement agency may take any disciplinary or retaliatory action against [such] the officer; and

    (b) No investigator may make a notation of such a refusal in his report [, absent independent evidence of unlawful conduct by the peace officer.] or in any other manner maintain evidence of such a refusal.

    2.  Evidence of any refusal by a peace officer to submit to a polygraphic examination is not admissible [if introduced by any governmental body or agency in this state] at any subsequent hearing, trial or other judicial or administrative proceeding.”.

    Amend sec. 2, page 2, between lines 2 and 3, by inserting: “2.  A person who makes an allegation against an officer pursuant to subsection 1 may not be required to submit to a polygraphic examination as a condition to the investigation of his allegation, but may request or agree to be given a polygraphic examination. If such a person requests or agrees to be given a polygraphic examination, such an examination must be given.”.

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

    Amend sec. 2, page 2, line 16, by deleting “[4.]3.” and inserting “4.”.

    Amend sec. 2, page 2, by deleting lines 23 through 29 and inserting:

    “[5.  If the officer refuses to submit to a polygraphic examination required by this section:

    (a) A law enforcement agency may take disciplinary action against that officer; and

    (b) An investigator may make a notation of the refusal in his report.”.

    Amend sec. 2, page 2, line 30, by deleting “[6.”and inserting “6.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to peace officers; providing that a peace officer may not be required to submit to a polygraphic examination; providing certain protections to an officer who refuses to submit to such an examination; providing that a person who alleges that an officer has engaged in certain prohibited acts may not be required to submit to a polygraphic examination as a condition to an investigation of the allegation; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Revises provisions governing use of polygraphic examinations for peace officers and as part of investigation of peace officers. (BDR 23-1271)”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 384.

    Bill read second time.

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

    Amendment No. 277.

 

 
    Amend sec. 4, page 2, between lines 11 and 12, by inserting:

The term specifically includes, without limitation, a mobile home that does not comply with the standards established under the National Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C. §§ 5401 et seq.”.

    Amend the bill as a whole by renumbering sec. 53 as sec. 54 and adding a new section designated sec. 53, following sec. 52, to read as follows:

    “Sec. 53.  The legislature hereby finds and declares that the amendatory provisions of this act are not intended to change the kind of homes to which the provisions of chapter 118B of NRS are applicable.”.

    Assemblyman Dini moved the adoption of the amendment.

    Remarks by Assemblyman Dini.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 430.

    Bill read second time.

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

    Amendment No. 459.

    Amend section 1, pages 1 and 2, by deleting lines 3 through 22 on page 1 and lines 1 through 10 on page 2, and inserting:

    “1.  If an employee of a general improvement district or other person has a reasonable belief that a dwelling unit exists that is not currently being charged for services provided by a general improvement district in a county whose population is less than 400,000, the employee or other person may submit an affidavit to the board of trustees of the district, setting forth the facts upon which the employee or other person bases his belief, including, without limitation, personal knowledge and visible indications of use of the property as a dwelling unit.

    2.  If a board of trustees receives an affidavit described in subsection 1, the board may set a date for a hearing to determine whether the unit referenced in the affidavit is being used as a dwelling unit. At least 30 days before the date of such a hearing, the board shall send a notice by certified mail, return receipt requested, to the owner of the property where the unit referenced in the affidavit is located at the address listed in the real property assessment roll in the county in which the property is located. The notice must:

    (a) Specify the purpose, date, time and location of the hearing;

    (b) Include a request to allow inspection of the unit within 5 days after receipt of the notice and include the name and telephone number of a person whom the owner may contact regarding his decision whether to allow inspection; and

    (c) Advise the owner that denial of the request for inspection of the unit or failure to respond to the request shall be deemed an admission that the unit is being used as a dwelling unit and, as such, the board may adopt a resolution to charge the owner for the services provided by the district to the dwelling unit as set forth in subsection 3.

    3.  The board may adopt a resolution by the affirmative votes of not less than two-thirds of the total membership of the board to charge the owner pursuant to NRS 318.197 for the services provided by the district to the dwelling unit, commencing with the services provided on the date on which the resolution is adopted, if:

    (a) The owner denies a request for inspection of the unit or fails to respond to the request for inspection; or

    (b) After the hearing, the board determines that the unit referenced in the affidavit is being used as a dwelling unit.”.

    Amend section 1, page 2, line 11, by deleting “6.” and inserting “4.”.

    Amend section 1, page 2, line 19, by deleting:

suspected dwelling unit” and inserting:

unit referenced in an affidavit submitted pursuant to subsection 1”.

    Amend the title of the bill to read as follows:

“AN ACT relating to general improvement districts; authorizing a general improvement district in certain counties to charge owners of dwelling units which receive services provided by the district for which the owners are not being charged; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Authorizes general improvement districts in certain counties to charge owners of dwelling units which receive services provided by district for which owners are not being charged. (BDR 25‑1275)”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 444.

    Bill read second time.

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

    Amendment No. 456.

    Amend section 1, page 2, line 6, after “ordered” by inserting:

to but fails”.

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

regulation but fails to correct the violation.”.

    Amend sec. 2, page 2, line 25, after “ordered” by inserting:

to but fails”.

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

regulation but fails to correct the violation.”.

    Amend sec. 6, page 5, line 13, after “ordered” by inserting:

to but fails”.

    Amend sec. 6, page 5, line 16, by deleting “regulation.” and inserting:

regulation but fails to correct the violation.”.

    Amend the bill as a whole by renumbering sec. 7 as sec. 8 and adding a new section designated sec. 7, following sec. 6, to read as follows:

    “Sec. 7.  NRS 645.633 is hereby amended to read as follows:

    645.633  1.  The commission may take action pursuant to NRS 645.630 against any person subject to that section who is guilty of:

    [1.] (a) Willfully using any trade name, service mark or insigne of membership in any real estate organization of which the licensee is not a member, without the legal right to do so.

    [2.] (b) Violating any order of the commission, any agreement with the division, any of the provisions of this chapter, chapter 116, 119, 119A, 119B, 645A or 645C of NRS or any regulation adopted thereunder.

    [3.] (c) Paying a commission, compensation or a finder’s fee to any person for performing the services of a broker, broker-salesman or salesman who has not secured his license pursuant to this chapter. This subsection does not apply to payments to a broker who is licensed in his state of residence.

    [4.] (d) A felony, or has entered a plea of guilty, guilty but mentally ill or nolo contendere to a charge of felony or any crime involving fraud, deceit, misrepresentation or moral turpitude.

    [5.] (e) Guaranteeing, or having authorized or permitted any person to guarantee, future profits which may result from the resale of real property.

    [6.] (f) Failure to include a fixed date of expiration in any written brokerage agreement or to leave a copy of the brokerage agreement with the client.

    [7.] (g) Accepting, giving or charging any undisclosed commission, rebate or direct profit on expenditures made for a client.

    [8.] (h) Gross negligence or incompetence in performing any act for which he is required to hold a license pursuant to this chapter, chapter 119, 119A or 119B of NRS.

    [9.] (i) Any other conduct which constitutes deceitful, fraudulent or dishonest dealing.

    [10.] (j) Any conduct which took place before he became licensed, which was in fact unknown to the division and which would have been grounds for denial of a license had the division been aware of the conduct.

    [11.] (k) Knowingly permitting any person whose license has been revoked or suspended to act as a real estate broker, broker-salesman or salesman, with or on behalf of the licensee.

    [12.] (l) Recording or causing to be recorded a claim pursuant to the provisions of NRS 645.8701 to 645.8811, inclusive, that is determined by a district court to be frivolous and made without reasonable cause pursuant to NRS 645.8791.

    2.  [Action may also be taken] The commission may take action pursuant to NRS 645.630 against a person who is subject to that section for the suspension or revocation of a real estate broker’s, broker-salesman’s or salesman’s license issued to him by any other jurisdiction.

    3.  The commission may take action pursuant to NRS 645.630 against any person holding a permit to engage in property management issued pursuant to NRS 645.6052 who:

    (a) Is convicted of violating any of the provisions of NRS 202.470.

    (b) Is ordered to but fails to abate a nuisance pursuant to NRS 244.360, 244.3603 or 268.4124.

    (c) Is ordered by the appropriate governmental agency to correct a violation of a building, safety or health code or regulation but fails to correct the violation.”.

    Amend the title of the bill, sixth line, after “located;” by inserting:

“authorizing the real estate commission to discipline certain licensees in certain circumstances;”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 456.

    Bill read second time.

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

    Amendment No. 460.

    Amend sec. 3, page 2, by deleting lines 11 through 14 and inserting:

minerals of the commission on mineral resources, may contract with:

    (a) A holder of a nonrestricted license issued pursuant to chapter 463 of NRS to supply gaming tokens to the holder of the nonrestricted license pursuant to this section and sections 2 and 4 of this act; and

    (b) A person who has experience in minting tokens to mint gaming tokens for the holder of the nonrestricted license on Press No. 1 of the Carson City Mint or at such other locations as the administrator deems appropriate.

    2.  Each contract to supply gaming tokens to the holder of a nonrestricted license entered into pursuant to paragraph (a) of subsection 1 must include a provision requiring the holder of the nonrestricted license to pay the fair market value of the tokens as determined by the administrator of the division of museums and history. In making that determination, the administrator shall consider:

    (a) The cost of producing the gaming tokens or similar gaming tokens;

    (b) The average margin of profit in the industry for producing gaming tokens; and

    (c) The value to collectors of gaming tokens minted pursuant to this section and sections 2 and 4 of this act.”.

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

    Amend sec. 3, page 2, line 20, by deleting “3.” and inserting “4.”.

    Amend sec. 3, page 2, between lines 24 and 25, by inserting:

    “5.  Each person who enters into a contract with the administrator of the division of museums and history pursuant to this section shall comply with all applicable statutes and regulations relating to gaming tokens. The administrator shall ensure that each contract entered into with the person includes a provision that requires the person to comply with those statutes and regulations.”.

    Amend sec. 4, page 2, by deleting lines 27 through 29 and inserting:

reverse, in an appropriate design selected by the holder of a nonrestricted license for whom the token is minted:

    (a) A designation of the face value of the token, as determined by the administrator of the division of museums and history of the department of museums, library and arts;”.

    Amend sec. 4, page 2, line 30, by deleting “(c)” and inserting “(b)”.

    Amend sec. 4, page 2, line 33, by deleting “(d)” and inserting “(c)”.

    Amend sec. 4, page 2, line 35, by deleting “(e)” and inserting “(d)”.

    Amend sec. 4, page 2, line 36, by deleting “(f)” and inserting “(e)”.

    Amend sec. 4, pages 2 and 3, by deleting lines 37 through 46 on page 2 and lines 1 through 10 on page 3, and inserting:

    “2.  Not more than 500 tokens may be minted in each design selected pursuant to subsection 1.

    3.  A holder of a nonrestricted license who purchases gaming tokens pursuant to a contract entered into in accordance with paragraph (a) of subsection 1 of section 3 of this act may issue those gaming tokens to the members of the general public. The gaming tokens may be redeemed only by the holder of the nonrestricted license.

    4.  The proceeds of the sale of gaming tokens by the administrator of the division of museums and history pursuant to section 3 of this act must be deposited in an”.

    Amend sec. 4, page 3, by deleting line 16 and inserting:

tokens in accordance with this section and sections 2 and 3 of this act.”.

    Amend the bill as a whole by deleting sec. 5 and renumbering sec. 6 as sec. 5.

    Amend the title of the bill by deleting the third line and inserting:

“the issuance of the gaming tokens by a holder of a nonrestricted license under certain circumstances; and providing other”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 461.

    Bill read second time.

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

    Amendment No. 379.

    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 9, by deleting “338.1375” and inserting “[338.1375] 338.1377”.

    Amend sec. 3, page 5, line 11, by deleting “[338.1383,] 338.1381,” and inserting “338.1383,”.

    Amend sec. 4, page 5, by deleting lines 17 through 31 and inserting:

    “338.1375  1.  [Except as otherwise provided in NRS 338.1383, a public body] The state public works board shall not accept a bid on a contract for a public work unless the person who submits the bid has qualified pursuant to NRS 338.1379 to bid on that contract.

    2.  [The governing body of each local government that sponsors or finances a public work may adopt criteria for the qualification of bidders on contracts for public works of the local government. If a governing body adopts criteria pursuant to this subsection, the governing body shall use the criteria to determine the qualification of bidders on contracts for public works of the local government.

    3.] The state public works board shall by regulation adopt criteria for the qualification of bidders on contracts for public works of this state. The criteria adopted by the state public works board pursuant to this [subsection] section must be used by the state public works board to determine the qualification of bidders on contracts for public works of this state.

    3.  The criteria adopted by the state public works board pursuant to this section must:

    (a) Be adopted in such a form that the determination of whether an applicant is qualified to bid on a contract for a public work does not require or allow the exercise of discretion by any one person.

    (b) Include:

        (1) The financial ability of the applicant to perform a contract;

        (2) The principal personnel of the applicant;

        (3) Whether the applicant has breached any contracts with a public agency or person in this state or any other state; and

        (4) Whether the applicant has been disqualified from being awarded a contract pursuant to NRS 338.017 or 338.1387.”.

    Amend sec. 5, pages 5 and 6, by deleting lines 40 through 49 on page 5 and lines 1 through 14 on page 6, and inserting:

    “338.1377  1.  Except as otherwise provided in NRS 338.1383, the governing body of each local government that sponsors or finances a public work shall adopt criteria for the qualification of bidders on contracts for public works of the local government. The governing body shall use the criteria to determine the qualification of bidders on contracts for public works of the local government.

    2.  Before adopting criteria pursuant to this section, the governing body of a local government shall hold at least one public hearing to solicit and evaluate public opinion regarding the criteria to be adopted. Notice of such a hearing must be provided by mail at least 10 days before the hearing to:

    (a) Construction trade associations in this state; and

    (b) Labor unions representing trades in the building industry in this state.

    3.  Thecriteria adopted by [the state public works board or] a governing body pursuant to [NRS 338.1375] this section to determine whether an applicant is qualified to bid on a contract for a public work:

    [1.] (a) Must be adopted in such a form that the determination of whether an applicant is qualified to bid on a contract for a public work does not require or allow the exercise of discretion by any one person.

    [2.] (b) May include only:

    [(a)] (1) The financial ability of the applicant to perform [the] a contract;

    [(b)] (2) The principal personnel of the applicant;

    [(c)] (3) Whether the applicant has breached any contracts with a public agency or person in this state or any other state; and

    [(d)] (4) Whether the applicant has been disqualified from being awarded [the] a contract pursuant to NRS 338.017 or 338.1387.”.

    Amend sec. 6, page 6, by deleting line 16 and inserting:

    “338.1379  1.  Except as otherwise provided in NRS 338.1383, a”.

    Amend sec. 6, page 6, line 23, by deleting “the” and inserting “[the] a”.

    Amend sec. 6, page 6, by deleting lines 25 through 34 and inserting:

“is qualified to bid on [the] a contract. The determination must be made within 30 days after receipt of the application.”.

    Amend sec. 6, page 6, by deleting line 39 and inserting:

    “4.  The state public works board or the governing body of a local government may determine an applicant is qualified to bid:

    (a) On a specific project;

    (b) On more than one project over a period of 12 months; or

    (c) On more than one project over a period of 24 months.

    5.  The state public works board shall not use any criteria other than criteria adopted by regulation pursuant to NRS 338.1375 in determining whether to approve or deny an application.

    6.  The [state public works board or the] governing body of a local government shall not use”.

    Amend sec. 6, page 6, line 42, by deleting “5.” and inserting “[5.] 7.

    Amend the bill as a whole by deleting sections 7 through 16 and the text of the repealed section and adding new sections designated sections 5 and 6, following sec. 6, to read as follows:

    “Sec. 5.  NRS 338.1383 is hereby amended to read as follows:

    338.1383  [A public body may] If a local government does not adopt criteria for the qualification of bidders on a public work pursuant to NRS 338.1377, the governing body shall accept a bid on a contract for a public work from a person who [does not qualify pursuant to NRS 338.1379 if the person] holds:

    1.  An unlimited contractor’s license issued by the state contractors’ board in the branch of general engineering contracting or general building contracting, or in both branches, and:

    (a) At the time he submits his bid, he provides a bid bond equal to 10 percent of the amount of the bid; and

    (b) At the time the contract is awarded, he provides a performance bond, a labor and material bond, and a guaranty bond, each equal to 100 percent of the amount of the contract; or

    2.  A contractor’s license issued by the state contractors’ board that is designated in any classification if he:

    (a) Has, in the 5 years immediately preceding the submission of the bid, been found to be a responsible contractor in the classification in which his contractor’s license is designated;

    (b) Provides a bid bond, a performance bond, a guaranty bond, and a labor and material bond in such amounts as the [state public works board or] governing body may require; and

    (c) Employs a person determined by the state contractors’ board to be qualified to supervise each classification of construction upon which the person submitting the bid is bidding.

    Sec. 6.  This bill becomes effective on July 1, 2001.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to public works; authorizing the state public works board to adopt by regulation criteria for the qualification of bidders on a contract for a public work; eliminating the provision providing an exemption from qualifying to bid for a public work of this state; requiring the governing body of a local government to accept a bid on a contract for a public work from certain persons who do not otherwise qualify to bid for public works; and providing other matters properly relating thereto.”.

    Assemblyman Bache moved the adoption of the amendment.


    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 490.

    Bill read second time.

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

    Amendment No. 453.

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

    “Section 1. Chapter 244 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.

    Sec. 2. 1.  The board of county commissioners of each county whose population is 400,000 or more shall establish by ordinance a committee on the abatement of noise attributable to the flight of helicopters and other aircraft in the county.

    2.  The board of county commissioners shall appoint to the committee eleven members as follows:

    (a) Four members who live in neighborhoods affected by the noise described in subsection 1;

    (b) Three members who live in neighborhoods that are located adjacent to an airport;

    (c) One member who represents commercial operators of fixed-wing aircraft;

    (d) One member who represents commercial operators of helicopters;

    (e) One member who represents the county airport; and

    (f) One member who represents a federal or county agency that regulates airports.

    3.  The members of the committee shall serve terms of 2 years. A vacancy on the committee must be filled in the same manner as the original appointment for the remainder of the unexpired term.

    4.  The board of county commissioners shall appoint one of the members as chairman of the committee, who shall serve as chairman for a term of 1 year. If a vacancy occurs in the chairmanship, the vacancy must be filled in the same manner as the original selection for the remainder of the unexpired term.

    5.  The members of the committee serve without compensation.

    6.  The committee shall:

    (a) Meet upon the call of the chairman; and

    (b) Comply with the provisions of chapter 241 of NRS.

    Sec. 3. 1.  Except as otherwise provided in subsection 2, the committee established pursuant to section 2 of this act shall:

    (a) Examine all laws and other matters that may be of significance in the abatement of noise attributable to the flight of helicopters and other aircraft; 

    (b) Recommend changes for consideration by the Federal Aviation Administration to:

        (1) Other local governments;

        (2) The regional planning coalition established pursuant to NRS 278.02514;

        (3) Relevant departments, agencies and officers of this state; and

        (4) The Senators and Representatives from the State of Nevada to the Congress of the United States; and

    (c) Advise the board of county commissioners on issues relating to the abatement of the noise described in paragraph (a) of subsection 1, including, without limitation:

        (1) Recommendations concerning the use of airport facilities, including, without limitation:

            (I) The expansion of airport facilities;

            (II) The creation of a facility for commercial helicopters and other aircraft that is not located in an urban area;

            (III) The creation, expansion and maintenance of adequate areas to buffer noise surrounding airport facilities; and

            (IV) Environmental impacts created by the use of airport facilities;

        (2) The determination of flight paths for helicopters and other aircraft; and

        (3) Complaints from persons who live in neighborhoods affected by the noise described in paragraph (a) of subsection 1.

    2.  The provisions of this section do not authorize the committee established pursuant to section 2 of this act to make any recommendations or take any other action with respect to:

    (a) Fixed-wing aircraft operated in commercial aviation pursuant to 14 C.F.R. Part 121 or 14 C.F.R. Part 135, or both; or

    (b) Any helicopter that is operated:

        (1) As an air ambulance, as that term is defined in NRS 450B.030;

        (2) By a law enforcement agency; or

        (3) By a branch of the Armed Forces of the United States.

    Sec. 4. 1.  Except as otherwise provided in subsection 2, the board of county commissioners of each county whose population is 400,000 or more shall, to the extent allowed by federal law, enact and enforce ordinances:

    (a) Fixing the permissible hours of operation for commercial helicopters. Such hours of operation must not commence earlier than 8 a.m. or extend later than 9 p.m.

    (b) Determining flight paths for commercial helicopters. The flight paths must, to the extent practicable, avoid residential neighborhoods, especially those neighborhoods that are considered to be impoverished.

    (c) Requiring that all nongovernmental helicopters bear identification numbers on the left side, right side and underside of the helicopter of sufficient size and clarity to be legible to persons on the ground at a distance of not less than 900 feet.

    (d) Imposing penalties for violations of the ordinances. The penalties must include a fine of $10,000 for the fifth or subsequent violation of an ordinance enacted pursuant to this section.

    (e) Requiring the county airport to:

        (1) Establish a toll-free telephone number for persons to report information regarding alleged violations of an ordinance enacted pursuant to this section; and

        (2) Compile and maintain a record of each complaint that alleges a violation of an ordinance enacted pursuant to this section.

    2.  An ordinance enacted pursuant to this section must not apply to any helicopter that is operated:

    (a) As an air ambulance, as that term is defined in NRS 450B.030;

    (b) By a law enforcement agency; or

    (c) By a branch of the Armed Forces of the United States.

    Sec. 5. The board of county commissioners of each county whose population is 400,000 or more shall encourage the Federal Aviation Administration to adopt with respect to that county a Special Federal Aviation Regulation that is substantially similar to Special Aviation Regulation No. 71, prohibiting the operator of an air tour from conducting such a tour below an altitude of 1,500 feet.

    Sec. 6. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to counties; requiring certain counties to establish a committee on the abatement of noise attributable to the flight of helicopters and other aircraft; excluding from the purview of the committee the operation of certain types of aircraft; requiring certain counties, to the extent allowed by federal law, to enact and enforce certain ordinances concerning helicopters; excluding certain helicopters from the application of such ordinances; requiring the imposition of penalties for violations of such ordinances; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY¾Requires certain counties to establish committee on abatement of noise attributable to flight of certain helicopters and certain other aircraft and to enact ordinances concerning certain helicopters. (BDR 20‑154)”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.


    Assembly Bill No. 555.

    Bill read second time.

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

    Amendment No. 165.

    Amend section 1, page 1, by deleting lines 7 and 8 and inserting:

    “(b) At the time of his reemployment, he is receiving:

        (1) An unmodified benefit; or

        (2) A benefit actuarially reduced pursuant to subsection 6 of NRS 286.510 and has reached the required age at which he could have retired with an unmodified benefit.”.

    Amend section 1, page 2, between lines 23 and 24, by inserting:

    “5.  A participating public employer shall not refuse to reemploy a retired employee who is eligible for reemployment pursuant to this section solely on the basis of the date of his retirement.”.

    Amend sec. 7, page 6, line 34, by deleting:

“subsections 4, 5 and 6” and inserting:

[subsections 4, 5 and 6] this section”.

    Amend sec. 7, page 7, line 20, after “4.” by inserting:

If a retired employee who accepts employment or an independent contract with a public employer under this system pursuant to this section elects not to reenroll in the system pursuant to subsection 1 of NRS 286.525, the public employer with which the retired employee accepted employment or an independent contract may pay contributions on behalf of the retired employee to a retirement fund which is not a part of the system in an amount not to exceed the amount of the contributions that the public employer would pay to the system on behalf of a participating public employee who is employed in a similar position.

    5.”.

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

    Amend sec. 7, page 7, line 33, by deleting “6.” and inserting “[6.]7.”.

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

    “Sec. 8. The public employees’ retirement board shall conduct an experience study on the public employees’ retirement system of the employment of retired public employees by public employers that participate in the public employees’ retirement system pursuant to section 1 of this act for the period between July 1, 2001, and July 1, 2004. The public employees’ retirement board shall submit a report of the study to the interim retirement and benefits committee of the legislature on or before December 31, 2004.”.

    Amend sec. 8, page 7, line 37, before “This” by inserting “1.”.

    Amend sec. 8, page 7, after line 37, by inserting:

    “2.  Section 1 of this act expires by limitation on June 30, 2005.”.

    Amend the title of the bill, line 8, after “manner;” by inserting:

“requiring the public employees’ retirement board to conduct an experience study on the system of the employment of certain retired employees;”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 567.

    Bill read second time.

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

    Amendment No. 382.

    Amend sec. 16, page 4, line 33, after “of” by inserting:

statutory limits on damages that may be awarded against this state, including, without limitation, the limits in chapter 41 of NRS, with respect to”.

    Amend sec. 18, page 6, by deleting lines 1 through 9 and inserting:

    “[(b) Another statute of this state expressly governs the creation, perfection, priority or enforcement of a security interest created by this state or a governmental unit of this state;

    (c) A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or

    (d)] or

    (b) The rights of a transferee beneficiary or nominated person under a”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Assemblyman Bache moved that upon return from the printer Assembly Bill No. 567 be re-referred to the Committee on Ways and Means.

    Motion carried.

    Bill ordered reprinted, engrossed and to the Committee on Ways and Means.

    Assembly Bill No. 636.

    Bill read second time.

    The following amendment was proposed by the Committee on Health and Human Services:

    Amendment No. 608.

    Amend section 1, page 1, by deleting lines 13 and 14 and inserting:

        “(1) A local law enforcement agency ;

        (2) A system for the nonemergency medical transportation of persons whose operation is authorized by the transportation services authority; or

        (3) If medically necessary, an ambulance service that holds a permit issued pursuant to the”.

    Amend sec. 2, page 2, line 27, after “physician” by inserting:

or physician’s assistant”.

    Amend sec. 2, page 2, by deleting lines 33 through 35.

    Amend sec. 2, page 2, line 36, by deleting “3.” and inserting “2.”.

    Amend sec. 2, page 2, line 42, by deleting “[3.] 4.” and inserting “3.”.

    Amend sec. 2, page 3, line 1, by deleting “[4] 5.” and inserting “4.”.

    Amend sec. 3, page 3, by deleting line 13 and inserting:

    “(b) Arrange for the person to be transported by:

        (1) A system for the nonemergency medical transportation of persons whose operation is authorized by the transportation services authority; or

        (2) If medically necessary, an ambulance service”.

    Amend the bill as a whole by deleting sections 4 and 5.

    Amend the title of the bill to read as follows:

AN ACT relating to mental health; authorizing certain persons to transport an allegedly mentally ill person to a mental health facility at the request of the proper authority; authorizing a physician’s assistant or an advanced practitioner of nursing to conduct the medical examination required for the emergency admission of an allegedly mentally ill person to a mental health facility; and providing other matters properly relating thereto.”.

    Assemblywoman Koivisto moved the adoption of the amendment.

    Remarks by Assemblywoman Koivisto.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 649.

    Bill read second time.

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

    Amendment No. 463.

    Amend sec. 7, page 5, line 10, after “[,] ;” by inserting “and”.

    Amend sec. 7, page 5, by deleting lines 13 and 14 and inserting “persons,”.

    Amend sec. 12, page 7, by deleting line 11 and inserting:

any manner authorized by law.”.

    Amend sec. 15, page 7, line 47, after “receive” by inserting “proposals or”.

    Amend sec. 15, page 7, line 48, by deleting “proposals.” and inserting:

proposals or invitation to bid.”.

    Amend sec. 15, page 8, line 1, by deleting line 1 and inserting:

    “2.  A request for proposals or invitation to bid for which proposals or bids may be submitted pursuant”.

    Amend sec. 15, page 8, line 2, before “bids” by inserting “proposals or”.

    Amend sec. 15, page 8, line 3, before “bids” by inserting “proposals or”.

    Amend sec. 15, page 8, line 6, before “bids” by inserting “proposals or”.

    Amend sec. 15, page 8, line 9, after “proposals” by inserting:

or invitation to bid”.

    Amend sec. 15, page 8, line 14, before “bids” by inserting “proposals or”.

    Amend the bill as a whole by adding new sections designated sections 16.3 and 16.7, following sec. 16, to read as follows:

    “Sec. 16.3.  NRS 333.480 is hereby amended to read as follows:

    333.480  The chief may purchase or acquire on behalf of the State of Nevada, and all officers, departments, institutions, boards, commissions, schools and other agencies in the executive department of the state government, volunteer fire departments, local governments as defined in NRS 354.474, conservation districts or irrigation districts of the State of Nevada, any supplies, materials or equipment of any kind required or deemed advisable for the state officers, departments, institutions, boards, commissions, schools, volunteer fire departments and other agencies or local governments as defined in NRS 354.474, conservation districts or irrigation districts that may be available [from the General Services Administration or any other] pursuant to an agreement with a vendor who has entered into an agreement with the General Services Administration or another governmental agency dealing in supplies, materials, equipment or donable surplus material [.] if :

    (a) The prices for the supplies, materials or equipment negotiated in the agreement that the chief enters into with the vendor are substantially similar to the prices for those supplies, materials or equipment that the vendor had negotiated with the General Services Administration or other governmental agency; and

    (b) The chief determines that such an agreement would be in the best interests of the state.

    Sec. 16.7.  NRS 353.1465 is hereby amended to read as follows:

    353.1465  1.  Upon approval of the state board of finance, a state agency may enter into contracts with issuers of credit cards or debit cards or operators of systems that provide for the electronic transfer of money to provide for the acceptance of credit cards , [or] debit cards or electronic transfers of money by the agency:

    (a) For the payment of money owed to the agency for taxes, interest, penalties or any other obligation; or

    (b) In payment for goods or services.

    2.  Before a state agency may enter into a contract pursuant to subsection 1, the agency must submit the proposed contract to the state treasurer for his review and transmittal to the state board of finance.

    3.  [If] Except as otherwise provided in subsection 4, if the issuer or operator charges the state agency a fee for each use of a credit card or debit card [,a contract entered into pursuant to subsection 1 must include a provision that requires the state agency to pay the fee charged by the issuer for the use of the credit card or debit card.

    4.  Except as otherwise provided in subsection 5, the payment of fees charged by the issuer for each use of a credit card or debit card must be treated in the same manner as any other administrative cost of the agency.

    5.] or for each electronic transfer of money, the state agency may require the cardholder or the person requesting the electronic transfer of money to pay a fee, which must not exceed the amount charged to the state agency by the issuer or operator.

    4.  A state agency that is required to pay a fee charged by the issuer or operator for the use of a credit card or debit card or for an electronic transfer of money may, pursuant to NRS 353.148, file a claim with the director of the department of administration for reimbursement of the fees paid to the issuer or operator during the immediately preceding quarter.

    [6.] 5.  As used in this section:

    (a) “Cardholder” means the person or organization named on the face of a credit card or debit card to whom or for whose benefit the credit card or debit card is issued by an issuer.

    (b) “Credit card” means any instrument or device, whether known as a credit card or credit plate, or by any other name, issued with or without a fee by an issuer for the use of the cardholder in obtaining money, property, goods, services or anything else of value on credit.

    (c) “Debit card” means any instrument or device, whether known as a debit card or by any other name, issued with or without a fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds.

    (d) “Electronic transfer of money” has the meaning ascribed to it in NRS 463.01473.

    (e) “Issuer” means a business organization, financial institution or authorized agent of a business organization or financial institution that issues a credit card or debit card.”.

    Amend sec. 17, page 8, line 36, by deleting:

“card , [or]” and inserting “card or”.

    Amend sec. 17, page 8, line 42, before “electronic” by inserting “for each”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblyman Anderson moved that Assembly Bill No. 550 be taken from the General File and placed on the Chief Clerk's desk.

    Remarks by Assemblyman Anderson.

    Motion carried.

    Assemblywoman Giunchigliani moved that Assembly Bill No. 328 be taken from the Chief Clerk’s desk and placed at the top of the General File.

    Remarks by Assemblywoman Giunchigliani.

    Motion carried.

    Assemblywoman Giunchigliani moved that Assembly Bill No. 447 be taken from the Chief Clerk’s desk and placed on the General File.

    Remarks by Assemblywoman Giunchigliani.

    Motion carried.

    Assemblyman Arberry moved that Assembly Bill No. 630 be taken from the Chief Clerk’s desk and re-referred to the Committee on Ways and Means.

    Motion carried.

    Mr. Speaker announced if there were no objections, the Assembly would recess subject to the call of the Chair.

    Assembly in recess at 12:00 p.m.

ASSEMBLY IN SESSION

    At 1:09 p.m.

    Mr. Speaker presiding.

    Quorum present.

    Assemblyman de Braga moved that Assembly Bill No. 391 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblyman de Braga.

    Motion carried.

general file and third reading

    Assembly Bill No. 328.

    Bill read second time.

    The following amendment was proposed by Assemblywoman Giunchigliani:

    Amendment No. 594.

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

    Amend sec. 2, page 2, line 8, after “and,” by inserting: “to the court,”.

    Amend sec. 3, page 2, line 30, after “176A.860” by inserting “1.”.

    Amend sec. 3, page 2, by deleting lines 36 through 42 and inserting:

the central repository for Nevada records of criminal history. If the division determines after an investigation that the applicant meets the requirements of this section, it shall petition]

    2.  Upon receiving an application pursuant to subsection 1, the division shall determine whether the applicant has been granted an honorable discharge from probation. If the division determines that the applicant has been granted an honorable discharge, the division shall forward the application to the court in which the applicant was convicted . [for an order granting the restoration. If the division refuses to submit such a petition, the applicant may, after notice to the division, directly petition the court for restoration of his civil rights.]

    3.  Upon receiving an application pursuant to subsection 2, the court shall, as soon as reasonably practicable, restore the civil rights of the applicant.

    4.  An applicant must not be required to pay a fee to have his civil rights restored pursuant to this section.”.

    Amend sec. 11, page 7, by deleting lines 27 through 35 and inserting:

“resulting from the offense or crime of which he was convicted. [If, after investigation,]

    3.  Upon receiving an application pursuant to subsection 2, the board [determines that] shall determine whether the applicant [meets the requirements of this subsection, it] has received a pardon. If the board determines that the applicant has received a pardon, the board shall , as soon as reasonably practicable, restore him to his civil rights and release him from all penalties and disabilities resulting from the offense or crime of which he was convicted. [If the board refuses to grant such restoration and release, the applicant may, after notice to the board, petition the district court in which the conviction was obtained for an order directing the board to grant such restoration and release.]

    4.  An applicant must not be required to pay a fee to have his civil rights restored or to be released from penalties and disabilities pursuant to this section.”.

    Amend sec. 12, pages 7 and 8, by deleting lines 45 through 49 on page 7 and lines 1 through 9 on page 8, and inserting:

after completion of parole,] he may apply to the [state board of parole commissioners for] division to request a restoration of his civil rights and release from penalties and disabilities which resulted from the offense or crime of which he was convicted. [The application must be accompanied by a current, certified record of the applicant’s criminal history received from the central repository for Nevada records of criminal history. If, after investigation, the board determines that the applicant meets the requirements of this subsection, it]

    3.  Upon receiving an application pursuant to subsection 2, the division shall determine whether the applicant has received an honorable discharge from parole. If the division determines that the applicant has received an honorable discharge, the division shall forward the application to the board.

    4.  Upon receiving an application pursuant to subsection 3, the board shall , as soon as reasonably practicable, restore [him] the applicant to his civil rights and release him from all penalties and disabilities resulting from the offense or crime of which he was convicted. [If the board refuses to grant such restoration and release, the applicant may, after notice to the board, petition the district court in which the conviction was obtained for an order directing the board to grant such restoration and release.]

    5.  An applicant must not be required to pay a fee to have his civil rights restored or to be released from penalties and disabilities pursuant to this section.”.

    Amend sec. 12, page 8, line 10, by deleting “3.” and inserting “[3.] 6.”.

    Amend sec. 13, page 8, line 13, after “213.157” by inserting “1.”.

    Amend sec. 13, page 8, by deleting lines 21 through 28 and inserting:

criminal history. If, after investigation, the division determines that the applicant meets the requirements of this section, it shall petition]

    2.  Upon receiving an application pursuant to subsection 1, the division shall determine whether the applicant has served his sentence and been released from prison. If the division determines that the applicant has served his sentence and been released from prison, the division shall forward the application to the district court in which the conviction was obtained . [for an order granting such restoration and release. If the division refuses to submit such petition, the applicant may, after giving notice to the division, petition such court directly for the restoration of his]

    3.  Upon receiving an application pursuant to subsection 2, the court shall, as soon as reasonably practicable, restore the civil rights of the applicant and release him from all penalties and disabilities which resulted from the offense or crime of which he was convicted.

    4.  An applicant must not be required to pay a fee to have his civil rights restored or to be released from penalties and disabilities pursuant to this section.”.

    Assemblywoman Giunchigliani moved the adoption of the amendment.

    Remarks by Assemblywoman Giunchigliani.

    Amendment adopted.

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

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblywoman Buckley moved that the reading of the history of Assembly and Senate Bills on the General File be dispensed with for this legislative day.

    Motion carried.

general file and third reading

    Assembly Bill No. 465.

    Bill read third time.

    Remarks by Assemblymen Brown, Ohrenschall, Giunchigliani and Collins.

    Roll call on Assembly Bill No. 465:

    Yeas—29.

    Nays—Anderson, Arberry, Bache, Buckley, Giunchigliani, Koivisto, Leslie, Manendo, Mortenson, Ohrenschall, Perkins, Williams—12.

    Excused—Freeman.

    Assembly Bill No. 465 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 63.

    Bill read third time.

    Remarks by Assemblyman Bache.

    Roll call on Assembly Bill No. 63:

    Yeas—41.

    Nays—None.

    Excused—Freeman.

    Assembly Bill No. 63 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 131.

    Bill read third time.

    Remarks by Assemblyman McClain.

    Roll call on Assembly Bill No. 131:

    Yeas—28.

    Nays—Angle, Beers, Brown, Carpenter, Cegavske, Chowning, Gustavson, Marvel, Mortenson, Nolan, Tiffany, Von Tobel, Williams—13.

    Excused—Freeman.

    Assembly Bill No. 131 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 225.

    Bill read third time.

    Remarks by Assemblymen Bache, Carpenter, Buckley, Beers and Gibbons.

    Assemblyman Beers moved the previous question.

    Motion failed.

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

Assemblyman Bache:

    Thank you, Mr. Speaker. This bill adds to the definition of meeting, any series of gathering of members of a public body at which (1) less than a quorum is present at any individual gathering, (2) the members of the public body attending the gathering collectively constitute a quorum, and (3) the series of gatherings was held with the intent to deliberate toward a decision to take action or any matter of which the public body has jurisdiction. The measure specifies that the term meeting includes “without limitation such a series of gatherings between individual members of a public body and its attorney, regarding potential or existing litigation involving the public body if the gathering were held with the intent to deliberate towards a decision or take action regarding the litigation.” Finally, AB 225 creates an additional notice requirement under the open meeting law before a public body considers taking an administrative action against a person or requiring real property from a person through imminent domain. It must personally deliver written notice to that person at least five working days before the meeting or send notice by certified mail to the last-known address of the person at least 21 working days before the meeting.

    Assemblyman Carpenter:

    Thank you, Mr. Speaker. I rise in support of AB 225. The first part of this bill adds something that has been lacking in the open meeting law for a long time, and I think this will go a long way towards protecting our citizens.

    Assemblywoman Buckley:

    Thank you, Mr. Speaker. I, also, rise in support of AB 225. At a time when citizens are more and more skeptical of government, I think this goes a long way towards ensuring government decisions are conducted in the public. I want to commend my colleague from Assembly District 24, who is not with us today, whose hard work made this bill come to the floor today.

    Assemblywoman Gibbons:

    Thank you, Mr. Speaker. I, too, rise in support of AB 225. I rise in support of my colleague from Assembly District 24. She worked so hard on this bill and to be honest with you, I found her to be so courageous in putting forth this legislation, not allowing people to take it apart and make it a piece of legislation not really worthy. I urge this body to wholeheartedly support it and I’m sorry my colleague is not hear to speak on this bill.

    Roll call on Assembly Bill No. 225:

    Yeas—41.

    Nays—None.

    Excused—Freeman.

    Assembly Bill No. 225 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblywoman Buckley moved that Assembly Bills Nos. 227, 318 and 418 be placed at the top of the General File.

    Motion carried.

general file and third reading

    Assembly Bill No. 227.

    Bill read third time.

    The following amendment was proposed by Assemblywoman Giunchigliani:

    Amendment No. 588.

    Amend section 1, page 2, line 1, after “(e)” by inserting:

A labor union.

    (f)”.

    Amend section 1, page 2, line 4, by deleting “(f)”andinserting “(g)”.

    Amend sec. 2, page 2, by deleting lines 11 through 17 and inserting:

provisions of this chapter regulating committees for political action:

    (a) The secretary of state shall, in determining whether an entity or group is a committee for political action, consider a group’s or entity’s division or separation into units, sections or smaller groups only if it appears that such division or separation was for a purpose other than for avoiding the reporting requirements of this chapter.

    (b) The secretary of state shall, in determining whether an entity or group is a committee for political action, disregard any action taken by a group or entity that would”.

    Assemblywoman Giunchigliani moved the adoption of the amendment.


    Remarks by Assemblywoman Giunchigliani.

    Amendment adopted.

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

    Assembly Bill No. 418.

    Bill read third time.

    The following amendment was proposed by Assemblyman Humke:

    Amendment No. 566.

    Amend sec. 9, page 4, by deleting lines 3 through 9 and inserting:

contracts with other parties. The commission shall exempt the provider from the requirements of its portfolio standard, or portions thereof, if the commission determines that:

    (a) The supply of electricity from renewable energy systems available to the provider is not or will not be sufficient for the provider to comply with the requirements of its portfolio standard, or portions thereof; or

    (b) The costs for the provider to acquire electricity from renewable energy systems to comply with the requirements of its portfolio standard, or portions thereof, will exceed, by an amount of 10 percent or more, the costs for the provider to acquire the same amount of electricity from nonrenewable energy systems.”.

    Assemblyman Humke moved the adoption of the amendment No. 566.

    Remarks by Assemblymen Humke, de Braga, Hettrick, Tiffany, Bache, Brower, Von Tobel, Leslie and Collins.

    Conflict of interest declared by Assemblyman Brower.

    Amendment lost on a division of the House.

    Amendment No. 603.

    Amend sec. 6, page 2, by deleting lines 26 through 28 and inserting:

    “(d) Solar energy; and

    (e) Wind.”.

    Amend sec. 7, page 2, line 34, by deleting “thermal”.

    Amend sec. 7, page 2, line 37, by deleting “inclusive.” and inserting:

inclusive, except for a net metering system that uses waterpower as its primary source of energy to generate electricity.”.

    Amend sec. 9, page 3, line 33, by deleting “thermal”.

    Amend sec. 9, page 3, line 36, by deleting “thermal”.

    Amend the bill as a whole by adding a new section designated sec. 10.5, following sec. 10, to read as follows:

    “Sec. 10.5.  “Biomass” has the meaning ascribed to it in section 3 of this act.”.

    Amend sec. 11, page 4, by deleting lines 35 and 36 and inserting:

    “Sec. 11.  1.  “Renewable energy” means:

    (a) Biomass;

    (b) Hydrogen;

    (c) Geothermal energy;

    (d) Solar energy;

    (e) Waterpower; and

    (f) Wind.

    2.  The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.”.

    Amend sec. 13, page 5, line 14, by deleting “section” and inserting:

sections 10.5 and”.

    Amend the bill as a whole by deleting sec. 17 and adding a new section designated sec. 17, following sec. 16, to read as follows:

    “Sec. 17.  Chapter 361 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  If a person intends to use or uses real property or personal property located in this state as a facility or energy system for the generation of electricity from renewable energy, the person may apply to the commission on economic development pursuant to this section for a partial abatement from the taxes imposed by this chapter.

    2.  The commission on economic development shall approve an application for a partial abatement pursuant to this section if the commission determines that the facility or energy system has not previously been allowed an exemption or partial abatement from the taxes imposed by this chapter.

    3.  If the commission on economic development approves an application for a partial abatement pursuant to this section:

    (a) The partial abatement applies only to the facility or energy system.

    (b) The partial abatement is:

      (1) For a period of 10 consecutive years, beginning on or after July 1, 2001; and

      (2) For an amount equal to 50 percent of the taxes imposed by this chapter on the facility or energy system for each year of that period.

    (c) During the period of the partial abatement, the facility or energy system is not entitled to an exemption or partial abatement from the taxes imposed by this chapter pursuant to any other specific statute.

    (d) The executive director of the commission on economic development shall notify the county assessor of each county in which the facility or energy system is located of the approval of the partial abatement, the date on which the partial abatement begins, and the duration and the percentage of the partial abatement. The executive director shall, on or before April 15 of each year, advise the county assessor of each county in which the facility or energy system is located as to whether the facility or energy system is entitled to the partial abatement in the next succeeding fiscal year.

    4.  As used in this section:

    (a) “Biomass” has the meaning ascribed to it in section 3 of this act.

    (b) “Facility or energy system for the generation of electricity from renewable energy” and “facility or energy system” mean a facility or energy system that:

      (1) Uses renewable energy as its primary source of energy to generate electricity; and

      (2) Is not located on residential property.

 

 
The term includes all the equipment in the facility and all the components of the energy system that are used to collect and store the renewable energy and to convert the renewable energy into electricity.

    (c) “Renewable energy” means:

      (1) Biomass;

      (2) Hydrogen;

      (3) Geothermal energy;

      (4) Solar energy;

      (5) Waterpower; and

      (6) Wind.

 

 
The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.”.

    Amend the title of the bill by deleting the eighth through eleventh lines and inserting: “conservation of energy and the use of alternative sources of energy; authorizing certain partial abatements from taxation for certain facilities and energy systems that use renewable energy to generate electricity; and providing other matters”.

    Assemblywoman de Braga moved the adoption of the amendment No. 603.

    Remarks by Assemblywoman de Braga.

    Amendment adopted.

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

    Assembly Bill No. 318.

    Bill read third time.

    The following amendment was proposed by Assemblyman Williams:

    Amendment No. 602.

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

    “Section 1.  Chapter 389 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act. 

    Sec. 2.  1.  The department shall develop an informational pamphlet concerning the high school proficiency examination for pupils who are enrolled in junior high, middle school and high school, and their parents and legal guardians. The pamphlet must include a written explanation of the:

    (a) Importance of passing the examination, including, without limitation, an explanation that if the pupil fails the examination he is not eligible to receive a standard high school diploma;

    (b) Subject areas tested on the examination;

    (c) Format for the examination, including, without limitation, the range of items that are contained on the examination;

    (d) Manner by which the scaled score, as reported to pupils and their parents or legal guardians, is derived from the raw score;

    (e) Timeline by which the results of the examination must be reported to pupils and their parents or legal guardians;

    (f) Maximum number of times that a pupil is allowed to take the examination if he fails to pass the examination after the first administration; and

    (g) Courses of study that the department recommends that pupils take to prepare the pupils to successfully meet the academic challenges of the examination and pass the examination.

    2.  The department shall review the pamphlet on an annual basis and make such revisions to the pamphlet as it considers necessary to ensure that pupils and their parents or legal guardians fully understand the examination.

    3.  On or before September 1, the department shall provide a copy of the pamphlet or revised pamphlet to the board of trustees of each school district and the governing body of each charter school that includes pupils enrolled in a junior high, middle school or high school grade level.

    4.  The board of trustees of each school district shall provide a copy of the pamphlet to each junior high, middle school or high school within the school district for posting. The governing body of each charter school shall ensure that a copy of the pamphlet is posted at the charter school. Each principal of a junior high, middle school, high school or charter school shall ensure that the teachers, counselors and administrators employed at the school fully understand the contents of the pamphlet.

    5.  On or before January 15, the:

    (a) Board of trustees of each school district shall provide a copy of the pamphlet to each pupil who is enrolled in a junior high, middle school or high school of the school district and to the parents or legal guardians of such a pupil.

    (b) Governing body of each charter school shall provide a copy of the pamphlet to each pupil who is enrolled in the charter school at a junior high, middle school or high school grade level and to the parents or legal guardians of such a pupil.

    Sec. 3.  1.  The department shall establish a statewide program for use by schools and school districts in their preparation of pupils for the high school proficiency examination. The program must:

    (a) Be designed to ensure that pupils understand the format for the examination;

    (b) Be designed to ensure that the actual examination is not included within the materials and other information used for preparation; and

    (c) Specify the type of sample questions and practice items that may be included with the materials and other information used for preparation.

    2.  Each school district, each middle school, junior high and high school within a school district and each charter school that provides instruction to pupils enrolled in a middle school, junior high or high school grade level, shall comply with the statewide program established pursuant to subsection 1. This subsection does not preclude a school or a school district from providing additional materials and information for preparation if the materials and information comply with the statewide program.

    Sec. 4.  1.  On or before September 1, 2001, the department of education shall develop an informational pamphlet concerning the high school proficiency examination pursuant to section 2 of this act. On or before October 1, 2001, the department of education shall provide a copy of the pamphlet to the board of trustees of each school district and the governing body of each charter school that includes pupils who are enrolled in a junior high, middle school or high school grade level.

    2.  On or before September 1, 2001, the department of education shall establish a statewide program for use by schools and school districts in their preparation of pupils for the high school proficiency examination pursuant to section 3 of this act. On or before October 1, 2001, the department of education shall provide a detailed written explanation of the statewide program to the board of trustees of each school district and the governing body of each charter school that includes pupils who are enrolled in a junior high, middle school or high school grade level.

    Sec. 5.  1.  On or before January 15, 2002, the board of trustees of each school district and the governing body of each charter school that includes pupils who are enrolled in a junior high, middle school or high school grade level, shall provide a copy of the pamphlet developed pursuant to section 2 of this act to each pupil enrolled in a junior high, middle school or high school and to the parents or legal guardians of such a pupil.

    2.  Each school district, each middle school, junior high and high school within a school district and each charter school that provides instruction to pupils enrolled in a middle school, junior high or high school grade level, shall comply with the statewide program for the preparation of pupils for the high school proficiency examination established by the department of education pursuant to section 3 of this act commencing with preparation that is provided for administrations of the examination in the spring semester of 2002.

    Sec. 6.  This act becomes effective upon passage and approval.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to education; requiring the department of education to develop an informational pamphlet for the high school proficiency examination; requiring the distribution of the pamphlet to pupils and parents and legal guardians; requiring the department to establish a statewide program for use by schools and school districts in their preparation of pupils for the high school proficiency examination; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Provides for development and distribution of certain information relating to high school proficiency examination. (BDR 34-1301)”.

    Assemblyman Williams moved the adoption of the amendment.

    Remarks by Assemblyman Williams.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 413.

    Bill read third time.

    Remarks by Assemblyman Gustavson.

    Roll call on Assembly Bill No. 413:

    Yeas—41.

    Nays—None.

    Excused—Freeman.

    Assembly Bill No. 413 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 468.

    Bill read third time.

    Remarks by Assemblyman Beers.

    Roll call on Assembly Bill No. 468:

    Yeas—41.

    Nays—None.

    Excused—Freeman.

    Assembly Bill No. 468 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 556.

    Bill read third time.

    Remarks by Assemblyman Lee.

    Roll call on Assembly Bill No. 556:

    Yeas—41.

    Nays—None.

    Excused—Freeman.

    Assembly Bill No. 556 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 563.

    Bill read third time.

    Remarks by Assemblymen Bache, Koivisto, Humke, Anderson, Bache, Beers, Carpenter, Giunchigliani, Oceguera and Parnell.

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

    Potential conflict of interest declared by Assemblymen Anderson, Bache, Beers, Carpenter, Giunchigliani, Humke, Koivisto, Oceguera, Parnell and Perkins.

    Roll call on Assembly Bill No. 563:


    Yeas—41.

    Nays—None.

    Excused—Freeman.

    Assembly Bill No. 563 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 619.

    Bill read third time.

    Remarks by Assemblyman Buckley.

    Roll call on Assembly Bill No. 619:

    Yeas—40.

    Nays—None.

    Not Voting—Carpenter.

    Excused—Freeman.

    Assembly Bill No. 619 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Joint Resolution No. 12.

    Resolution read third time.

    Remarks by Assemblyman Price.

    Roll call on Assembly Joint Resolution No. 12:

    Yeas—38.

    Nays—Carpenter, Gibbons, Ohrenschall—3.

    Excused—Freeman.

    Assembly Joint Resolution No. 12 having received a constitutional majority, Mr. Speaker declared it passed.

    Resolution ordered transmitted to the Senate.

    Senate Bill No. 271.

    Bill read third time.

    Remarks by Assemblymen Dini, Carpenter and Tiffany.

    Roll call on Senate Bill No. 271:

    Yeas—41.

    Nays—None.

    Excused—Freeman.

    Senate Bill No. 271 having received a constitutional majority, Mr. Speaker declared it passed.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 207.

    Bill read third time.

    Remarks by Assemblymen Buckley, Brower, Chowning, Beers, Brown and Collins.

    Conflict of interest declared by Assemblyman Brower.

    Roll call on Assembly Bill No. 207:

    Yeas—39.

    Nays—None.

    Not Voting—Brower, Goldwater—2.

    Excused—Freeman.

    Assembly Bill No. 207 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblyman Williams moved that upon return from the printer Assembly Bill No. 226 be placed on the Chief Clerk’s desk.

    Remarks by Assemblyman Williams.

    Motion carried.

    Assemblyman Williams moved that upon return from the printer Assembly Bill No. 127 be placed on the Chief Clerk’s desk.

    Remarks by Assemblyman Williams.

    Motion carried.

    Assemblyman Williams moved that Assembly Bill No. 351 be taken from the General File and placed on the Chief Clerk's desk.

    Remarks by Assemblyman Williams.

    Motion carried.

    Assemblyman Neighbors moved that upon return from the printer Assembly Bill No. 404 be placed on the Chief Clerk’s desk.

    Motion carried.

    Assemblywoman Berman moved that Assembly Bill No. 296 be taken from the General File and placed on the Chief Clerk’s desk.

    Remarks by Assemblywoman Berman.

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

    Assemblywoman Berman:

    Thank you, Mr. Speaker. As the primary sponsor of a bill that currently resides on the Chief Clerk’s desk, AB 296, and while it was unanimously supported by this body, it is my desire to respectfully request that my colleagues will allow this bill to remain on the Chief Clerk’s desk and put partisan politics aside for the better good of Nevada.

    Allow me to take this opportunity to thank so many of my colleagues for their support of this bill on my behalf. Now, in saying this, please understand that my commitment as a public servant to the people of this state overrides party politics. So allow the process of government to continue and if this body chooses to use the language of my bill in another piece of legislation, then it would honor me to have my work utilized for the best interest of all Nevadans.

    Motion carried.

general file and third reading

    Assembly Bill No. 93.

    Bill read third time.

    Roll call on Assembly Bill No. 93:

    Yeas—39.

    Nays—Collins.

    Not Voting—Oceguera.

    Excused—Freeman.

    Assembly Bill No. 93 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 617.

    Bill read third time.

    Remarks by Assemblyman Anderson.

    Roll call on Assembly Bill No. 617:

    Yeas—26.

    Nays—Angle, Beers, Brower, Brown, Buckley, Carpenter, Chowning, de Braga, Gibbons, Gustavson, Humke, Marvel, Tiffany, Von Tobel—14.

    Not Voting—Lee.

    Excused—Freeman.

    Assembly Bill No. 617 having failed to receive a two-thirds majority, Mr. Speaker declared it lost.

REPORTS OF COMMITTEES

Mr. Speaker:

    Your Committee on Taxation, to which was referred Assembly Bill No. 457, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

David E. Goldwater, Chairman

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblyman Goldwater moved that Assembly Bill No. 457 just reported out of committee, be placed on the Second Reading File.

    Motion carried.

    Assemblywoman Buckley moved that Assembly Bill No. 578 be taken from the General File and placed on the Chief Clerk’s desk.

    Motion carried.

general file and third reading

    Assembly Bill No. 447.

    Bill read third time.

    Remarks by Assemblymen Buckley, Brower and Beers.

    Conflict of interest declared by Assemblyman Brower.

    Assemblywoman Buckley moved that Assembly Bill No. 447 be taken from the General File and placed on the Chief Clerk’s desk.

    Motion carried.

    Assembly Bill No. 391.

    Bill read third time.

    Remarks by Assemblyman de Braga.

    Roll call on Assembly Bill No. 391:

    Yeas—38.

    Nays—Buckley, Giunchigliani, Leslie—3.

    Excused—Freeman.

    Assembly Bill No. 391 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

SECOND READING AND AMENDMENT

    Assembly Bill No. 457.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 432.

    Amend the bill as a whole by deleting sections 1 through 8 and adding new sections designated sections 1 through 6, following the enacting clause, to read as follows:

    “Section 1.  The Legislature hereby finds and declares that a general law cannot be made applicable for the provisions of this act because of the economic and geographic diversity of the local governments of this state, the unusual growth patterns in certain of those local governments and the special conditions experienced in certain counties related to the need to provide basic services.

    Sec. 2.  Notwithstanding the provisions of chapter 482 of NRS to the contrary:

    1.  For the fiscal year beginning on July 1, 2001, one-half of all money received or collected by the Department of Motor Vehicles and Public Safety for the basic governmental services tax for:

    (a) Vehicles not subject to the provisions of chapter 706 of NRS and not engaged in interstate or intercounty operation, for Clark, Douglas and Washoe counties and Carson City must be deposited in the state distributive school account after the portion of those tax proceeds required by NRS 482.181 has been distributed to the school districts in those counties.

    (b) Vehicles subject to the provisions of chapter 706 of NRS and engaged in interstate or intercounty operation that would otherwise be distributed to Clark, Douglas and Washoe counties and Carson City pursuant to subsection 6 of NRS 482.180 must be deposited in the state distributive school account after the portion of those tax proceeds required by NRS 482.181 has been distributed to the school districts in those counties.

    2.  For the fiscal year beginning on July 1, 2002, all money received or collected by the Department of Motor Vehicles and Public Safety for the basic governmental services tax for:

    (a) Vehicles not subject to the provisions of chapter 706 of NRS and not engaged in interstate or intercounty operation, for Clark, Douglas and Washoe counties and Carson City must be deposited in the state distributive school account after the portion of those tax proceeds required by NRS 482.181 has been distributed to the school districts in those counties.

    (b) Vehicles subject to the provisions of chapter 706 of NRS and engaged in interstate or intercounty operation that would otherwise be distributed to Clark, Douglas and Washoe counties and Carson City pursuant to subsection 6 of NRS 482.180 must be deposited in the state distributive school account after the portion of those tax proceeds required by NRS 482.181 has been distributed to the school districts in those counties.

    Sec. 3.  Notwithstanding the provisions of chapter 354 of NRS to the contrary:

    1.  In addition to the allowed revenue from taxes ad valorem determined pursuant to NRS 354.59811, each local government whose revenue from the basic governmental services tax is reduced as a direct result of the provisions of section 2 of this act may levy a property tax on all taxable property within the boundaries of the local government, for the fiscal year in which the revenue will be reduced, at a rate not to exceed the rate necessary to produce an amount of revenue equal to the revenue that the local government estimates would have been received from the basic governmental services tax in that fiscal year but for the provisions of section 2 of this act.

    2.  The revenue received by a local government from the property tax levied pursuant to subsection 1 must be deposited in the general fund of the local government.

    Sec. 4.  Notwithstanding the provisions of NRS 377.080 to the contrary, each local government whose revenue from the basic governmental services tax is reduced as a direct result of the provisions of section 2 of this act shall, if any portion of that revenue is pledged for payment of a general obligation bond pursuant to NRS 377.080, pledge an additional percentage of the revenue from NRS 360.680, 360.690 and 360.700 to be substituted for the pledge of revenue that is redistributed pursuant to section 2 of this act in an amount necessary to avoid an impairment of the underlying bond contract pursuant to which the revenue was pledged.  To carry out the provisions of this subsection, the percentage of revenue pledged may exceed the 15 percent allowed by NRS 377.080.

    Sec. 5.  1.  Money deposited in the state distributive school account pursuant to section 2 of this act must be accounted for separately and distributed monthly among the several county school districts by the superintendent of public instruction in the same proportion that the total salaries paid to all educational personnel in the county bears to the total salaries paid to all educational personnel in all counties. The money must be deposited in the county school district fund.

    2.  On or before June 1, 2001, and June 1, 2002, the superintendent of public instruction shall determine the estimated percentage of increase in the salaries of all educational personnel in all the counties that could be fully funded by the money he estimates will be distributed during the fiscal year beginning on the next July 1. The estimated percentage of increase may not exceed 2 percent per year.

    3.  Each school district shall use the money distributed pursuant to subsection 1 to increase the salaries of the educational personnel in the district by the percentage of increase determined by the superintendent of public instruction pursuant to subsection 2 for the year for which the percentage was established. Each school district may use any revenue not necessary to fund the salary increases for expenses relating to the recruitment of educational personnel.

    Sec. 6.  This act becomes effective upon passage and approval and expires by limitation on July 1, 2003.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to taxation; temporarily revising the provisions governing the distribution of a portion of the basic governmental services tax revenue to increase the amount allocated for educational purposes; allowing an increase in the amount of revenue from taxes ad valorem that certain larger counties may receive to offset the reduction in revenue resulting from the reallocation; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Temporarily revises provisions governing distribution of portion of basic governmental services tax revenue to increase amount allocated for educational purposes. (BDR S‑1152)”.

    Assemblyman Goldwater moved the adoption of the amendment.

    Remarks by Assemblyman Goldwater.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assemblyman Dini moved that upon return from the printer Assembly Bill No. 457 be placed on the Chief Clerk’s desk.

    Motion carried.

    Assemblywoman Buckley moved that the Assembly recess until 5:00 p.m.

    Motion carried.

    Assembly in recess at 2:38 p.m.

ASSEMBLY IN SESSION

    At 5:29 p.m.

    Mr. Speaker presiding.

    Quorum present.

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblyman Anderson moved that Assembly Bill No. 550 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblyman Anderson.

    Motion carried.

REPORTS OF COMMITTEES

Mr. Speaker:

    Your Committee on Commerce and Labor, to which were referred Assembly Bills Nos. 123, 302, 551, 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 Commerce and Labor, to which was referred Assembly Bill No. 618, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended, and re-refer to the Committee on Ways and Means.

Joseph E. Dini, Jr., Chairman

Mr. Speaker:

    Your Committee on Government Affairs, to which was referred Assembly Bill No. 256, 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 Government Affairs, to which was referred Assembly Bill No. 385, 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 Government Affairs, to which was referred Assembly Bill No. 395, 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 Government Affairs, to which was referred Assembly Bill No. 564, 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 Ways and Means.

Douglas A. Bache, Chairman

Mr. Speaker:

    Your Committee on Natural Resources, Agriculture, and Mining, to which was referred Assembly Bill No. 463, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Marcia de Braga, Chairman

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblywoman Buckley moved that Assembly Bills Nos. 123, 256, 302, 385, 395, 463, 551, 564 and 618 be placed on the Second Reading File.

    Motion carried.

    Assemblywoman Buckley moved that Assembly Bill No. 447 be taken from the Chief Clerk’s desk and placed on the General File.

    Motion carried.

Notice Of Exemption

April 26, 2001

    The Fiscal Analysis Division, pursuant to Joint Standing Rule 14.6, has determined the exemption of:  Assembly Bills Nos. 127, 554 and 564.

    Also, the Fiscal Analysis Division, pursuant to Joint Standing Rule 14.6, has determined the exemption of:  Assembly Bill No. 618.

Mark Stevens

Fiscal Analysis Division


SECOND READING AND AMENDMENT

    Assembly Bill No. 123.

    Bill read second time.

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

    Amendment No. 522.

    Amend the bill as a whole by deleting sections 1 through 25 and adding new sections designated sections 1 through 10, following the enacting clause, to read as follows:

    “Section 1.  NRS 679B.130 is hereby amended to read as follows:

    679B.130  1.  The commissioner may adopt reasonable regulations for the administration of any provision of this code or chapters 616A to 617, inclusive, of NRS[.] and sections 3 and 4 of this act.

    2.  A person who willfully violates any regulation of the commissioner is subject to such suspension or revocation of a certificate of authority or license, or administrative fine in lieu of such suspension or revocation, as may be applicable under this code or chapter 616A, 616B, 616C, 616D or 617 of NRS for violation of the provision to which the regulation relates. No penalty applies to any act done or omitted in good faith in conformity with any such regulation, notwithstanding that the regulation may, after the act or omission, be amended, rescinded or determined by a judicial or other authority to be invalid for any reason.

    Sec. 2.  Chapter 287 of NRS is hereby amended by adding thereto the provisions set forth as sections 3 and 4 of this act.

    Sec. 3.  In providing health insurance through a plan of self-insurance, the board shall comply with the provisions of NRS 689B.255, 695G.150, 695G.160, 695G.170 and 695G.200 to 695G.230, inclusive, in the same manner as an insurer that is licensed pursuant to Title 57 of NRS is required to comply with those provisions.

    Sec. 4.  1.  The board shall offer each state officer, employee, retired employee and any other person who is eligible to participate in the program, a choice of a policy of health insurance:

    (a) Purchased by the board from an insurer; or

    (b) Provided by the board through a plan of self-insurance established pursuant to NRS 287.0433.

    2.  On or before November 1 of each year, the board shall provide a written statement to each state officer, employee, retired employee and any other person who participates in the program. The statement must include information for the preceding fiscal year concerning:

    (a) The amount of the premium charged for health insurance for that state officer, employee, retired employee or other person;

    (b) For a state officer or employee, the amount of that premium which was paid by the department, agency, commission or public agency that employs the officer or employee on whose behalf the premium was paid;

    (c) For a retired employee, the amount of that premium which was paid by the department of personnel pursuant to NRS 287.046; and

    (d) Such other information as the commissioner of insurance may require by regulation.

    Sec. 5. NRS 287.0402 is hereby amended to read as follows:

    287.0402  As used in NRS 287.0402 to 287.049, inclusive, and sections 3 and 4 of this act, unless the context otherwise requires, the words and terms defined in NRS 287.0404 and 287.0406 have the meanings ascribed to them in those sections.

    Sec. 6.  NRS 287.043 is hereby amended to read as follows:

    287.043  1.  The board shall:

    (a) Establish and carry out a program to be known as the public employees’ benefits program which:

        (1) Must include a program relating to health insurance and group life [, accident or health] or accident insurance, or any combination of these; and

        (2) May include a program to reduce taxable compensation or other forms of compensation other than deferred compensation,

 

 
for the benefit of all state officers and employees and other persons who participate in the program.

    (b) Ensure that the program is funded on an actuarially sound basis and operated in accordance with sound insurance and business practices.

    2.  In establishing and carrying out the program, the board shall:

    (a) Except as otherwise provided in this paragraph, negotiate and contract with the governing body of any public agency enumerated in NRS 287.010 [which is desirous of obtaining] that wishes to obtain group insurance for its officers, employees and retired employees by participation in the program. The board shall establish separate rates and coverage for those officers, employees and retired employees based on actuarial reports.

    (b) [Give] Except as otherwise provided in paragraph (c), provide public notice in writing of any proposed changes in rates or coverage to each participating public employer who may be affected by the changes. Notice must be provided at least 30 days before the effective date of the changes.

    (c) If a proposed change is a change in the premium charged for or coverage of health insurance, provide written notice of the proposed change to all state officers, employees, retired employees and other persons who participate in the program who may be affected by the proposed change. The notice must be provided at least 60 days before the date a state officer, employee, retired employee or other person is required to select or change his policy of health insurance.

    (d) Purchase policies of life [, accident or health] or accident insurance, or [any combination of these,] both, or, if applicable, a program to reduce the amount of taxable compensation pursuant to 26 U.S.C. § 125, from any company qualified to do business in this state or provide similar coverage through a plan of self-insurance established pursuant to NRS 287.0433 for the benefit of all eligible public officers, employees and retired employees who participate in the program.

    [(d)] (e) Purchase a policy of health insurance from an insurer and provide similar coverage through a plan of self-insurance established pursuant to NRS 287.0433 for the purpose of providing a choice of coverage for health insurance to eligible public officers, employees and retired employees who participate in the program.

    (f) Except as otherwise provided in this Title, develop and establish other employee benefits as necessary.

    [(e)] (g) Investigate and approve or disapprove any contract proposed pursuant to NRS 287.0479.

    [(f)] (h) Adopt such regulations and perform such other duties as are necessary to carry out the provisions of NRS 287.0402 to 287.049, inclusive, and sections 3 and 4 of this act, including, without limitation, the establishment of:

        (1) Fees for applications for participation in the program and for the late payment of premiums or contributions;

        (2) Conditions for entry and reentry into the program by public agencies enumerated in NRS 287.010;

        (3) The levels of participation in the program required for employees of participating public agencies;

        (4) Procedures by which a group of participants in the program may leave the program pursuant to NRS 287.0479 and conditions and procedures for reentry into the program by [such] those participants; and

        (5) Specific procedures for the determination of contested claims.

    [(g)] (i) Appoint an independent certified public accountant. The accountant shall provide:

        (1) An annual audit of the program; and

        (2) A biennial audit of the program to determine whether the program complies with federal and state laws relating to taxes and employee benefits.

 

 
The accountant shall report to the board and the interim retirement and benefits committee of the legislature created pursuant to NRS 218.5373.

    3.  The board may use any services provided to state agencies and shall use the services of the purchasing division of the department of administration to establish and carry out the program.

    4.  The board may make recommendations to the legislature concerning legislation that it deems necessary and appropriate regarding the program.

    5.  The state and any other public employers that participate in the program are not liable for any obligation of the program other than indemnification of the board and its employees against liability relating to the administration of the program, subject to the limitations specified in NRS 41.0349.

    6.  As used in this section [, “employee] :

    (a) “Employee benefits” includes any form of compensation provided to a state employee pursuant to this Title except federal benefits, wages earned, legal holidays, deferred compensation and benefits available pursuant to chapter 286 of NRS.

    (b) “Insurer” has the meaning ascribed to it in NRS 679B.540.

    Sec. 7.  NRS 287.0433 is hereby amended to read as follows:

    287.0433  The board [may] :

    1.  May establish a plan of life [, accident or health] or accident insurance and provide for the payment of contributions into the fund for the public employees’ benefits program established pursuant to NRS 287.0435, a schedule of benefits and the disbursement of benefits from the fund.

[The board may]

    2.  Shall establish a plan of health insurance and provide for the payment of contributions into the fund for the public employees’ benefits program established pursuant to NRS 287.0435, a schedule of benefits and the disbursement of benefits for health insurance from the fund.

    3.  May reinsure any risk or any part of such a risk.

    Sec. 8.  NRS 287.044 is hereby amended to read as follows:

    287.044  1.  A part of the cost of the premiums or contributions for that group insurance, not to exceed the amount specified by law, applied to both group life and group accident or health coverage, for each public officer, except a senator or assemblyman, or employee electing to participate in the program, may be paid by the department, agency, commission or public agency which employs the officer or employee in whose behalf that part is paid from money appropriated to or authorized for that department, agency, commission or public agency for that purpose. Participation by the state in the cost of premiums or contributions must not exceed the amounts specified by law. If an officer or employee chooses to cover his dependents, whenever this option is made available by the board, except as otherwise provided in NRS 287.021 and 287.0477, he must pay the difference between the amount of the premium or contribution for the coverage for himself and his dependents and the amount paid by the state.

    2.  A department, agency, commission or public agency shall not pay any part of those premiums or contributions if the group life insurance or group accident or health insurance is not approved by the board.

    3.  If a department, agency, commission or public agency pays any part of the premiums for group health coverage, it shall pay the same amount for a policy of health insurance:

    (a) Purchased by the board from an insurer; or

    (b) Provided by the board through a plan of self-insurance established pursuant to NRS 287.0433.

    Sec. 9.  NRS 287.046 is hereby amended to read as follows:

    287.046  1.  Except as otherwise provided in subsection 6, any state or other participating officer or employee who elects to participate in the program may participate, and the department, agency, commission or public agency that employs the officer or employee shall pay the state’s share of the cost of the premiums or contributions for the program from money appropriated or authorized as provided in NRS 287.044. Employees who elect to participate in the program must authorize deductions from their compensation for the payment of premiums or contributions for the program. Any deduction from the compensation of an employee for the payment of a premium for health insurance must be based on the actual cost of providing that health insurance after deducting any amount of the premium which is paid by the department, agency, commission or public agency that employs the employee.

    2.  The department of personnel shall pay a percentage of the base amount provided by law for that fiscal year toward the cost of the premiums or contributions for the program for persons retired from the service of the state who have continued to participate in the program. Except as otherwise provided in subsection 3, the percentage to be paid must be calculated as follows:

    (a) For those persons who retire before January 1, 1994, 100 percent of the base amount provided by law for that fiscal year.

    (b) For those persons who retire on or after January 1, 1994, with at least 5 years of state service, 25 percent plus an additional 7.5 percent for each year of service in excess of 5 years to a maximum of 137.5 percent, excluding service purchased pursuant to NRS 286.300, of the base amount provided by law for that fiscal year.

    3.  If the amount calculated pursuant to subsection 2 exceeds the actual premium or contribution for the plan of the program that the retired participant selects, the balance must be credited to the fund for the public employees’ benefits program created pursuant to NRS 287.0435.

    4.  For the purposes of subsection 2:

    (a) Credit for service must be calculated in the manner provided by chapter 286 of NRS.

    (b) No proration may be made for a partial year of service.

    5.  The department shall agree through the board with the insurer for billing of remaining premiums or contributions for the retired participant and his dependents to the retired participant and to his dependents who elect to continue coverage under the program after his death.

    6.  A senator or assemblyman who elects to participate in the program shall pay the entire premium or contribution for his insurance.

    Sec. 10.  NRS 331.184 is hereby amended to read as follows:

    331.184  The state risk manager shall:

    1.  Direct and supervise all administrative and technical activities of the risk management division [.] of the department of administration.

    2.  Determine the nature and extent of requirements for insurance, other than group life, accident or health insurance, on risks of an insurable nature of the state and any of its agencies, the premiums for which are payable in whole or in part from public money.

    3.  Negotiate for, procure, purchase and have placed, through a licensed insurance agent or broker residing or domiciled in Nevada, or continued in effect all insurance coverages, other than employee group life, accident or health insurance, which may be reasonably obtainable, whether from insurers authorized to transact business in this state or under the surplus lines provisions of chapter 685A of NRS.

    4.  Conduct periodic inspections of premises, property and risks to determine insurability, risk and premium rate, and submit a written report of each inspection and appraisal, together with any recommendations that appear appropriate, to the administrator of the agency most responsible for the premises, property or risk, and to the director of the department of administration.

    5.  [Provide] Except as otherwise provided in NRS 287.0433, provide for self-insurance if the potential loss is relatively insignificant or if the risk is highly predictable and the probability of loss is so slight that the cost of insuring the risk is not a prudent expenditure of public funds, or if insurance is unavailable or unavailable at a reasonable cost.

    6.  Select reasonable deductibles when it appears economically advantageous to the state to do so.

    7.  Select comprehensive and blanket coverages insuring the property of two or more state agencies when that appears economically advisable.

    8.  Investigate and determine the reliability and financial condition of insurers, and the services they provide.

    9.  Minimize risks by adopting and promoting programs to control losses and encourage safety.

    10.  Perform any of the services described in subsections 2, 3 and 4 for any political subdivision of the state at the request of its managing officer or governing body.

    11.  Perform any other function of risk management as directed by the director of the department of administration.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to health insurance; requiring the board of the public employees’ benefits program to comply with certain provisions concerning health insurance applicable to other insurers with regard to health insurance it provides through a plan of self-insurance; requiring the board to notify certain persons of a proposed change in the premium charged for or coverage of health insurance provided by the public employees’ benefits program; requiring the board to offer certain persons who participate in the program a choice of a policy of health insurance purchased by the board from an insurer or a policy of health insurance provided by the board through a plan of self-insurance; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Revises provisions relating to health insurance provided by public employees’ benefits program. (BDR 57-603)”.

    Assemblyman Dini moved the adoption of the amendment.

    Remarks by Assemblyman Dini.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 256.

    Bill read second time.

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

    Amendment No. 388.

    Amend section 1, pages 2 and 3, by deleting lines 45 through 49 on page 2 and lines 1 through 15 on page 3, and inserting:

    “3.  Upon a determination by the board of county commissioners pursuant to subsection 4 to implement the increase provided in this subsection or the denial of a waiver requested pursuant to subsection 5, the annual salaries of the elected officers of the county set forth in subsection 2 must be increased on July 1, 2002, and each July 1 thereafter by the lesser of:

    (a) The average percentage by which the salaries of all employees of the county were increased during the previous fiscal year; or

    (b) The percentage by which the average hourly wage in the county increased during the previous fiscal year, as determined on July 1 of each year by the employment security division of the department of employment, training and rehabilitation.

 

 
Increases in the annual salaries of the elected officers of the county required pursuant to this section are cumulative.

    4.  At a regular meeting held on or before July 1 of each fiscal year, the board of county commissioners shall:

    (a) Implement an increase in the annual salaries of the elected officers of the county based on the calculation set forth in subsection 3, if any; or

    (b) Request a waiver pursuant to subsection 5 from the requirement of implementing the increase in the salaries.

    5.  The board of county commissioners may apply to the committee on local government finance for a waiver from the requirement of granting an increase in the annual salaries of the elected officers of the county for the next fiscal year pursuant to subsection 3 if the board determines that the financial resources of the county are insufficient to pay the increase in the next fiscal year. The committee on local government finance shall grant such a waiver if it finds that the financial resources of the county are insufficient to pay the increase in the next fiscal year.”.

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

    “Sec. 2.  NRS 245.044 is hereby repealed.

    Sec. 3.  Notwithstanding the provisions of section 2 of this act that repeal NRS 245.044, an elected county officer who is serving a term of office on July 1, 2001, and who is eligible to receive the additional salary provided in NRS 245.044 is entitled to continue to receive credit for service for the calculation of that additional salary until the expiration of his current term and his salary must be increased accordingly as if NRS 245.044 is not repealed by this act. For each calendar year that an elected officer serves after the expiration of the term which he is serving as of July 1, 2001, the board of county commissioners shall continue to pay the additional salary of the elected officer based on the percentage of additional salary payable to the elected officer pursuant to this section in the final year of his current term.”.

    Amend sec. 2, page 3, by deleting lines 16 through 32 and inserting:

    “Sec. 4.  1.  At the first regular meeting of the board of county commissioners of a county on or after the effective date of this section, the board shall determine whether to:

    (a) Implement the annual salaries of the elected officers of the county set forth in subsection 2 of  NRS 245.043, as amended by this act; or

    (b) Request a waiver from the applicability of subsection 2 of NRS 245.043, as amended by this act, in the manner set forth in subsection 2.

    2.  The board of county commissioners of a county may apply to the committee on local government finance for a waiver from the applicability of subsection 2 of NRS 245.043, as amended by this act, in fiscal year 2001-2002 if the board determines that the financial resources of the county are insufficient to pay the increases set forth in that subsection in fiscal year 2001-2002. The committee on local government finance shall grant such a waiver for a period of not more than 1 year if it finds that the financial resources of the county are insufficient to pay the increases set forth in subsection 2 of NRS 245.043, as amended by this act, in fiscal year 2001-2002. The board of county commissioners may apply to the committee on local government finance for one or more extensions of the waiver granted to the county pursuant to this section. The committee on local government finance shall extend such a waiver for a period of not more than 1 year for each requested extension if it finds that the financial resources of the county continue to be insufficient to pay the increases set forth in subsection 2 of NRS 245.043, as amended by this act.”.

    Amend sec. 4, page 3, by deleting line 36 and inserting:

    “Sec. 6.  1.  This section and section 4 of this act become effective upon passage and approval.

    2.  Sections 1, 2, 3 and 5 of this act become effective on July 1, 2001.”.

    Amend the bill as a whole by adding the text of the repealed section, following sec. 4, to read as follows:

TEXT OF REPEALED SECTION

    245.044  Payment for longevity for elected county officers.

    1.  On and after July 1, 1973, if an elected county officer has served in his office for more than 4 years, he is entitled to an additional salary of 2 percent of his base salary provided in NRS 245.043 for each full calendar year he has served in his office.

    2.  The additional salary provided in this section for an eligible county officer:

    (a) Must be computed on July 1 of each year by multiplying 2 percent of the base salary provided in NRS 245.043 by the number of full calendar years the elected county officer has served in his office; and

    (b) Must not exceed 20 percent of the base salary provided in NRS 245.043.

    3.  Service on the board of supervisors of Carson City for the initial term which began on July 1, 1969, and ended on the first Monday of January, 1973, shall be deemed to constitute 4 full calendar years of service for the purposes of this section.”.

    Amend the title of the bill, third line, after “circumstances;” by inserting:

“repealing prospectively the payment of longevity for elected county officers;”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Increases annual salaries of certain elected county officers and repeals prospectively longevity payments for those officers. (BDR 20-420)”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 302.

    Bill read second time.

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

    Amendment No. 523.

    Amend the bill as a whole by deleting sections 1 through 7 and adding new sections designated sections 1 through 16 and the text of the repealed section, following the enacting clause, to read as follows:

    “Section 1.  Chapter 634A of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  If a written complaint regarding a licensee is filed with the board, the board shall review the complaint. If, from the complaint or from other records, it appears that the complaint is not frivolous, the board shall transmit the original complaint and any facts or information obtained from the review to the attorney general.

    2.  The attorney general shall conduct an investigation of the complaint to determine whether it warrants proceedings for the modification, suspension or revocation of the license. If the attorney general determines that further proceedings are warranted, he shall report the results of his investigation and his recommendation to the board.

    3.  The board shall promptly make a determination with respect to each complaint reported to it by the attorney general. The board shall:

    (a) Dismiss the complaint; or

    (b) Proceed with appropriate disciplinary action.

    Sec. 2.  NRS 634A.020 is hereby amended to read as follows:

    634A.020  As used in this chapter, unless the context otherwise requires:

    1.  “Acupuncture” means the insertion of needles into the human body by piercing the skin of the body to control and regulate the flow and balance of energy in the body and to cure, relieve or palliate:

    (a) Any ailment or disease of the mind or body; or

    (b) Any wound, bodily injury or deformity.

    2.  “Board” means the state board of Oriental medicine.

    3.  [“Doctor of acupuncture” means a person licensed under the provisions of this chapter to practice acupuncture.

    4.]  “Doctor of Oriental medicine” means a person who is licensed under the provisions of this chapter to practice as a doctor of Oriental medicine.

    [5.] 4.  “Herbal medicine” and “practice of herbal medicine” mean suggesting, recommending, prescribing or directing the use of herbs for the cure, relief or palliation of any ailment or disease of the mind or body, or for the cure or relief of any wound, bodily injury or deformity.

    [6.] 5. “Herbs” means plants or parts of plants valued for medicinal qualities.

    [7.  “Licensed assistant in acupuncture” means a person who assists in the practice of acupuncture under the direct supervision of a person licensed under the provisions of this chapter to practice Oriental medicine or acupuncture.

    8.] 6.  “Oriental medicine” means that system of the healing art which places the chief emphasis on the flow and balance of energy in the body mechanism as being the most important single factor in maintaining the well-being of the organism in health and disease. The term includes the practice of acupuncture and herbal medicine and other services approved by the board.

    Sec. 3.  NRS 634A.080 is hereby amended to read as follows:

    634A.080  The board shall:

    1.  Hold meetings at least once a year and at any other time at the request of the president or the majority of the members;

    2.  Have and use a common seal;

    3.  Deposit in interest-bearing accounts in the State of Nevada all [moneys] money received under the provisions of this chapter, which [shall] must be used to defray the expenses of the board;

    4.  Establish and maintain a list of accredited schools and colleges of Oriental medicine that are approved by the board;

    5.  Operate on the basis of the fiscal year beginning July 1, and ending June 30; and

    [5.] 6.  Keep a record of its proceedings which [shall] must be open to the public at all times and which [shall also] must contain the name and business address of every registered licensee in this state.

    Sec. 4.  NRS 634A.090 is hereby amended to read as follows:

    634A.090  1.  A school or college of Oriental medicine may be established and maintained in this state only if:

    (a) Its establishment is approved by the board; and

    (b) Its curriculum is approved annually by the board for content and quality of instruction in accordance with the requirements of this chapter.

    2.  The board may prescribe the [courses] course of study required for the [respective degrees of doctor of acupuncture and] degree of doctor of Oriental medicine.

    Sec. 5.  NRS 634A.120 is hereby amended to read as follows:

    634A.120  1.  [Examinations must be given at least once a year at a time and place fixed by the board.

    2.  Applicants for licenses to practice acupuncture or Oriental medicine or to practice as an assistant in acupuncture must be examined in the appropriate subjects as determined by the board.]Each applicant for a license to practice as a doctor of Oriental medicine must pass:

    (a) An examination in Oriental medicine that is administered by a national organization approved by the board; and

    (b) A practical examination approved by the board that tests the applicant’s knowledge and understanding of the laws and regulations of this state relating to health and safety in the practice of Oriental medicine. The board shall contract for the preparation, administration and grading of the practical examination.

    2.  Except as otherwise provided in subsection 3, the board shall offer the practical examination at least two times each year at a time and place established by the board.

    3.  The board may cancel a scheduled practical examination if, within 60 days before the examination, the board has not received a request to take the examination.

    4.  A person who fails the practical examination may retake the examination.

    Sec. 6.  NRS 634A.140 is hereby amended to read as follows:

    634A.140  The board shall issue [separate licenses] a license to practice [respectively] as a doctor of Oriental medicine [or acupuncture, as appropriate, where the applicant:

    1.  Has successfully completed a course of study of:

    (a) Four years in Oriental medicine; or

    (b) Three years in acupuncture,

 

 

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at any college or school approved by the board which is located in any country, territory, province or state or has qualifications considered equivalent by the board;

    2.  Has practiced Oriental medicine, including acupuncture and herbal medicine for 6 years; and

    3.  Passes the examination of the board.] to an applicant who:

    1.  Has:

    (a) A bachelor’s degree from an accredited college or university in the United States;

    (b) Successfully completed a 4-year program of study, or its equivalent, in Oriental medicine at a school or college of Oriental medicine that is approved by the board;

    (c) Passed an investigation of his background and personal history conducted by the board; and

    (d) Passed the examinations required by NRS 634A.120;

    2.  Has:

    (a) Been licensed to practice Oriental medicine in another state;

    (b) Lawfully practiced Oriental medicine in another state for at least 4 years;

    (c) Passed an investigation of his background and personal history conducted by the board; and

    (d) Passed the examinations required by NRS 634A.120; or

    3.  Has:

    (a) A bachelor’s degree, or its equivalent, from a college or university that is approved by the board and located in a foreign country;

    (b) Successfully completed a 4-year program of study, or its equivalent, in Oriental medicine at a school or college of Oriental medicine that is approved by the board;

    (c) Passed an investigation of his background and personal history conducted by the board; and

    (d) Passed the examinations required by NRS 634A.120.

    Sec. 7.  NRS 634A.160 is hereby amended to read as follows:

 

 
    634A.160  1.  Every license must be displayed in the office, place of business or place of employment of the holder thereof.

    2.  Every person holding a license shall pay to the board on or before February 1 of each year, the annual [registration] fee for a license required pursuant to subsection 4. The holder of a license shall submit with the [registration] fee the statement required pursuant to NRS 634A.115. If the holder of a license fails to pay the [registration] fee or submit the statement, his license must be suspended. The license may be reinstated by payment of the required fee and submission of the statement within 90 days after February 1.

    3.  A license which is suspended for more than 3 months under the provisions of subsection 2 may be canceled by the board after 30 days’ notice to the holder of the license.

    4.  The annual [registration fees] fee for a license must be prescribed annually by the board and must not exceed $1,000.

    Sec. 8.  NRS 634A.167 is hereby amended to read as follows:

 

 
    634A.167  1.  To renew a license issued pursuant to this chapter, each person must, on or before February 1 of each year:

    (a) Apply to the board for renewal;

    (b) Submit the statement required pursuant to NRS 634A.115;

    (c) Pay the annual fee for [registration] a license prescribed by the board; and

    (d) Submit evidence to the board of his completion of the requirements for continuing education.

    2.  The board shall, as a prerequisite for the renewal or reinstatement of a license, require each holder of a license to comply with the requirements for continuing education adopted by the board.

    Sec. 9.  NRS 634A.170 is hereby amended to read as follows:

    634A.170  The board may refuse to issue or may suspend or revoke any license for any one or any combination of the following causes:

    1.  Conviction of:

    (a) A felony;

    (b) Any offense involving moral turpitude;

    (c) A violation of any state or federal law regulating the possession, distribution or use of any controlled substance, as shown by a certified copy of the record of the court; or

    (d) A violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive;

    2.  The obtaining of or any attempt to obtain a license or practice in the profession for money or any other thing of value, by fraudulent misrepresentations;

    3.  Gross or repeated malpractice, which may be evidenced by claims of malpractice settled against a practitioner;

    4.  Advertising by means of a knowingly false or deceptive statement;

    5.  Advertising, practicing or attempting to practice under a name other than one’s own;

    6.  Habitual drunkenness or habitual addiction to the use of a controlled substance;

    7.  Using any false, fraudulent or forged statement or document, or engaging in any fraudulent, deceitful, dishonest or immoral practice in connection with the licensing requirements of this chapter;

    8.  Sustaining a physical or mental disability which renders further practice dangerous;

    9.  Engaging in any dishonorable, unethical or unprofessional conduct which may deceive, defraud or harm the public, or which is unbecoming a person licensed to practice under this chapter;

    10.  Using any false or fraudulent statement in connection with the practice of Oriental medicine or any branch thereof;

    11.  Violating or attempting to violate, or assisting or abetting the violation of, or conspiring to violate any provision of this chapter;

    12.  Being adjudicated incompetent or insane;

    13.  Advertising in an unethical or unprofessional manner;

    14.  Obtaining a fee or financial benefit for any person by the use of fraudulent diagnosis, therapy or treatment;

    15.  Willful disclosure of a privileged communication;

    16.  Failure of a licensee to designate the nature of his practice in the professional use of his name by the term doctor of Oriental medicine ; [, doctor of acupuncture or acupuncture assistant, as the case may be;]

    17.  Willful violation of the law relating to the health, safety or welfare of the public or of the regulations adopted by the state board of health;

    18.  Administering, dispensing or prescribing any controlled substance, except for the prevention, alleviation or cure of disease or for relief from suffering; and

    19.  Performing, assisting or advising in the injection of any liquid silicone substance into the human body.

    Sec. 10.  NRS 634A.190 is hereby amended to read as follows:

    634A.190  1.  Persons licensed pursuant to this chapter are not subject to the provisions of chapter 630 of NRS.

    2.  A person who is licensed pursuant to this chapter to practice as a doctor of Oriental medicine may refer to himself as a physician of Oriental medicine.

    Sec. 11.  NRS 634A.210 is hereby amended to read as follows:

    634A.210  Doctors of Oriental medicine [and doctors of acupuncture] shall observe and are subject to all state and municipal regulations relative to reporting all births and deaths in all matters pertaining to the public health.

    Sec. 12.  NRS 41A.097 is hereby amended to read as follows:

    41A.097  1.  Except as otherwise provided in subsection 2, an action for injury or death against a provider of health care may not be commenced more than 4 years after the date of injury or 2 years after the plaintiff discovers or through the use of reasonable diligence should have discovered the injury, whichever occurs first, for:

    (a) Injury to or the wrongful death of a person, based upon alleged professional negligence of the provider of health care;

    (b) Injury to or the wrongful death of a person from professional services rendered without consent; or

    (c) Injury to or the wrongful death of a person from error or omission in practice by the provider of health care.

    2.  This time limitation is tolled:

    (a) For any period during which the provider of health care has concealed any act, error or omission upon which the action is based and which is known or through the use of reasonable diligence should have been known to him.

    (b) In any action governed by the provisions of NRS 41A.003 to 41A.069, inclusive, from the date a claimant files a complaint for review by a screening panel until 30 days after the date the panel notifies the claimant, in writing, of its findings. The provisions of this paragraph apply to an action against the provider of health care and to an action against any person, government or political subdivision of a government who is alleged by the claimant to be liable vicariously for the medical or dental malpractice of the provider of health care, if the provider, person, government or political subdivision has received notice of the filing of a complaint for review by a screening panel within the limitation of time provided in subsection 1.

    3.  For the purposes of this section, the parent, guardian or legal custodian of any minor child is responsible for exercising reasonable judgment in determining whether to prosecute any cause of action limited by subsection 1. If the parent, guardian or custodian fails to commence an action on behalf of that child within the prescribed period of limitations, the child may not bring an action based on the same alleged injury against any provider of health care upon the removal of his disability, except that in the case of:

    (a) Brain damage or birth defect, the period of limitation is extended until the child attains 10 years of age.

    (b) Sterility, the period of limitation is extended until 2 years after the child discovers the injury.

    4.  As used in this section, “provider of health care” means a physician licensed under chapter 630 or 633 of NRS, dentist, registered nurse, dispensing optician, optometrist, registered physical therapist, podiatric physician, licensed psychologist, chiropractor, doctor of Oriental medicine, [doctor of acupuncture,] medical laboratory director or technician, or a licensed hospital as the employer of any such person.

    Sec. 13.  NRS 202.2491 is hereby amended to read as follows:

    202.2491  1.  Except as otherwise provided in subsections 5 and 6 and NRS 202.24915, the smoking of tobacco in any form is prohibited if done in any:

    (a) Public elevator.

    (b) Public building.

    (c) Public waiting room, lobby or hallway of any:

        (1) Medical facility or facility for the dependent as defined in chapter 449 of NRS; or

        (2) Office of any chiropractor, dentist, physical therapist, physician, podiatric physician, psychologist, optician, optometrist [,] or doctor of Oriental medicine . [or doctor of acupuncture.]

    (d) Hotel or motel when so designated by the operator thereof.

    (e) Public area of a store principally devoted to the sale of food for human consumption off the premises.

    (f) Child care facility.

    (g) Bus used by the general public, other than a chartered bus, or in any maintenance facility or office associated with a bus system operated by any regional transportation commission.

    (h) School bus.

    2.  The person in control of an area listed in paragraph (c), (d), (e), (f) or (g) of subsection 1:

    (a) Shall post in the area signs prohibiting smoking in any place not designated for that purpose as provided in paragraph (b).

    (b) May designate separate rooms or portions of the area which may be used for smoking, except for a room or portion of the area of a store described in paragraph (e) of subsection 1 if the room or portion of the area:

        (1) Is leased to or operated by a person licensed pursuant to NRS 463.160; and

        (2) Does not otherwise qualify for an exemption set forth in NRS 202.24915.

    3.  The person in control of a public building:

    (a) Shall post in the area signs prohibiting smoking in any place not designated for that purpose as provided in paragraph (b).

    (b) Shall, except as otherwise provided in this subsection, designate a separate area which may be used for smoking.

 

 

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A school district which prohibits the use of tobacco by pupils need not designate an area which may be used by the pupils to smoke.

    4.  The operator of a restaurant with a seating capacity of 50 or more shall maintain a flexible nonsmoking area within the restaurant and offer each patron the opportunity to be seated in a smoking or nonsmoking area.

    5.  A business which derives more than 50 percent of its gross receipts from the sale of alcoholic beverages or 50 percent of its gross receipts from gaming operations may be designated as a smoking area in its entirety by the operator of the business.

    6.  The smoking of tobacco is not prohibited in:

    (a) Any room or area designated for smoking pursuant to paragraph (b) of subsection 2 or paragraph (b) of subsection 3.

    (b) A licensed gaming establishment. A licensed gaming establishment may designate separate rooms or areas within the establishment which may or may not be used for smoking.

    7.  The person in control of a child care facility shall not allow children in any room or area he designates for smoking pursuant to paragraph (b) of subsection 2. Any such room or area must be sufficiently separate or ventilated so that there are no irritating or toxic effects of smoke in the other areas of the facility.

    8.  As used in this section:

    (a) “Child care facility” means an establishment licensed pursuant to chapter 432A of NRS to provide care for 13 or more children.

    (b) “Licensed gaming establishment” has the meaning ascribed to it in NRS 463.0169.

    (c) “Public building” means any building or office space owned or occupied by:

        (1) Any component of the University and Community College System of Nevada and used for any purpose related to the system.

        (2) The State of Nevada and used for any public purpose, other than that used by the department of prisons to house or provide other services to offenders.

        (3) Any county, city, school district or other political subdivision of the state and used for any public purpose.

 

 
If only part of a building is owned or occupied by an entity described in this paragraph, the term means only that portion of the building which is so owned or occupied.

    (d) “School bus” has the meaning ascribed to it in NRS 483.160.

    Sec. 14.  NRS 634A.150 is hereby repealed.

    Sec. 15.  A person who submits an application to the state board of Oriental medicine for a license to practice as a doctor of Oriental medicine before January 1, 2002, is not required to comply with the requirement set forth in paragraph (a) of subsection 1 of NRS 634A.120 if he has passed an examination in Oriental medicine administered by a national organization after December 31, 1999, and before October 1, 2001.

    Sec. 16.  Notwithstanding the provisions of NRS 634A.140, the state board of Oriental medicine shall issue a license to practice as a doctor of Oriental medicine to any person who, on October 1, 2001, holds a license as an assistant in acupuncture or a license to practice as a doctor of acupuncture issued by the board if he submits an application and the fee for the issuance of the license to the board before January 1, 2002.

TEXT OF REPEALED SECTION

    634A.150  Issuance of license as assistant in acupuncture.  The board shall issue a license for an assistant in acupuncture where the applicant:

    1.  Has successfully completed a course of study in acupuncture in any college or school approved by the board which is located in any country, territory, province or state requiring an attendance of 3 years or other qualifications deemed by the board to be equivalent to the course of study; and

    2.  Passes the examination of the board for assistant in acupuncture or has other qualifications deemed by the board to be the equivalent.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to Oriental medicine; revising the provisions relating to the issuance of a license to practice as a doctor of Oriental medicine; abolishing the license to practice as a doctor of acupuncture and the license for an assistant in acupuncture; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Makes various changes relating to practice of Oriental medicine. (BDR 54-1083)”.

    Assemblyman Dini moved the adoption of the amendment.

    Remarks by Assemblyman Dini.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 385.

    Bill read second time.

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

    Amendment No. 468.

    Amend section 1, page 2, between lines 9 and 10, by inserting:

    “4.  As used in this section, “public facilities” means water, sanitary sewer, storm sewer, street, parks, fire, police and flood protection.”.

    Amend sec. 3, page 3, by deleting lines 23 through 32 and inserting:

    “2.  In lieu of reconveying land pursuant to subsection 1, the board of county commissioners may sell the land to any member of the general public if the board first grants to the person from whom the land was received or acquired, or his successor in interest, for 90 days after the date on which the board makes a determination to sell the land, the opportunity to purchase the land. If the land was acquired through the exercise of the power of eminent domain, the land must be offered to the person from whom it was acquired, or his successor in interest, for an amount equal to the value of the land at the time it was acquired from the person, prorated accordingly if less than the entire parcel of land that was acquired from the person is being sold, plus interest at the rate established pursuant to NRS 99.040. If the land was acquired or received other than through the exercise of the power of eminent domain, the land must be offered to the person from whom it was acquired or received for an amount equal to the appraised value of the land at the time of proposed sale. If a person to whom the right of first refusal is granted pursuant to this subsection, does not exercise his right of first refusal by responding within the 90-day period, the board may proceed with the sale of the land to any member of the general public.”.

    Amend sec. 3, page 4, between lines 24 and 25, by inserting:

    “7.  The board of county commissioners shall not reconvey, sell or exchange land pursuant to this section that is subject to eminent domain until title to the land has been transferred to the county.”.

    Amend sec. 4, page 4, line 29, by deleting “security” and inserting “public safety”.

    Amend sec. 4, page 4, line 34, by deleting “security” and inserting “public safety”.

    Amend sec. 4, page 4, line 38, by deleting “security” and inserting “public safety”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 395.

    Bill read second time.

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

    Amendment No. 392.

    Amend section 1, page 1, line 11, before “alcohol” by inserting “recovering”.

    Amend section 1, page 1, lines 13 and 14, by deleting “the house,” and inserting:

[the house,]a residential facility for groups,”.

    Amend section 1, page 1, line 16, before “alcohol” by inserting “recovering”.

    Amend section 1, page 2, lines 25 and 26, by deleting:

[660] 1,500 feet” and inserting:

[660 feet] the minimum distance established by the governing body pursuant to this subsection”.

    Amend section 1, page 2, lines 32 and 33, by deleting:

[660] 1,500 feet of each other” and inserting:

[660 feet] the minimum distance of each other established by the governing body pursuant to this subsection”.

    Amend section 1, page 2, line 34, after “regulations.” by inserting:

For purposes of this subsection, each governing body shall establish by ordinance a minimum distance between residential establishments that is at least 660 feet but not more than 1,500 feet.”.

    Amend section 1, page 2, line 42, before “alcohol” by inserting “recovering”.

    Amend section 1, page 3, line 4, before “alcohol” by inserting “recovering”.

    Amend the bill as a whole by renumbering sec. 2 as sec. 13 and adding new sections designated sections 2 through 12, following section 1, to read as follows:

SECTION

 
    “Sec. 2.  NRS 458.010 is hereby amended to read as follows:

    458.010  As used in NRS 458.010 to 458.350, inclusive, unless the context requires otherwise:

    1.  “Alcohol and drug abuse program” means a project concerned with education, prevention and treatment directed toward achieving the mental and physical restoration of alcohol and drug abusers.

    2.  “Alcohol and drug abuser” means a person whose consumption of alcohol or other drugs, or any combination thereof, interferes with or adversely affects his ability to function socially or economically.

    3.  “Alcoholic” means any person who habitually uses alcoholic beverages to the extent that he endangers the health, safety or welfare of himself or any other person or group of persons.

    4.  “Bureau” means the bureau of alcohol and drug abuse in the department.

    5.  “Chief” means the chief of the bureau.

    6.  “Civil protective custody” means a custodial placement of a person for the purpose of protecting his health or safety. Civil protective custody does not have any criminal implication.

    7.  “Department” means the department of human resources.

    8.  “Detoxification technician” means a person who is certified by the bureau to provide screening for the safe withdrawal from alcohol and other drugs.

    9.  “Director” means the director of the department.

    10.  “Facility” means a physical structure used for the education, prevention and treatment, including mental and physical restoration, of alcohol and drug abusers.

    11.  “Halfway house for recovering alcohol and drug abusers” means a residence that provides housing and a living environment for alcohol and drug abusers and is operated to facilitate their reintegration into the community, but does not provide treatment for alcohol or drug abuse. The term does not include a facility for the treatment of abuse of alcohol or drugs as defined in NRS 449.00455.

    Sec. 3.  NRS 458.025 is hereby amended to read as follows:

 

 
    458.025  The bureau of alcohol and drug abuse is hereby created in the department. The bureau:

    1.  Shall formulate and operate a comprehensive state plan for alcohol and drug abuse programs which must include:

    (a) A survey of the need for education, prevention and treatment of alcohol and drug abuse, including a survey of the facilities needed to provide services and a plan for the development and distribution of services and programs throughout the state.

    (b) A plan for programs to educate the public in the problems of the abuse of alcohol and other drugs.

    (c) A survey of the need for trained teachers, persons who have professional training in fields of health and others involved in the education and prevention of alcohol and drug abuse and in the treatment and recovery of alcohol and drug abusers, and a plan to provide the necessary treatment.

 

 
In developing and revising the state plan, the bureau shall consider, among other things, the amount of money available from the Federal Government for alcohol and drug abuse programs and the conditions attached to the acceptance of the money, and the limitations of legislative appropriations for alcohol and drug abuse programs.

    2.  Shall coordinate the efforts to carry out the state plan and coordinate all state and federal financial support of alcohol and drug abuse programs in the state. The bureau must be consulted in the planning of projects and advised of all applications for grants from within the state which are concerned with alcohol and drug abuse programs, and shall review and advise concerning the applications.

    3.  Shall develop and publish standards of certification and may certify or deny certification of operators of halfway houses for recovering alcohol and drug abusers, halfway houses for recovering alcohol and drug abusers, detoxification technicians or any facilities or programs on the basis of the standards, and publish a list of certified operators of halfway houses for recovering alcohol and drug abusers, halfway houses for recovering alcohol and drug abusers, detoxification technicians, facilities and programs. Any operators of halfway houses for recovering alcohol and drug abusers, halfway houses for recovering alcohol and drug abusers, detoxification technicians, facilities or programs which are not certified are ineligible to receive state and federal money for alcohol and drug abuse programs. The chief:

    (a) Shall establish the requirements for continuing education for persons certified as detoxification technicians; and

    (b) May set fees for the certification of operators of halfway houses for recovering alcohol and drug abusers, halfway houses for recovering alcohol and drug abusers, detoxification technicians, facilities or programs. The fees must be calculated to produce the revenue estimated to cover the costs related to the certifications, but in no case may the fee for a certificate exceed the actual cost to the bureau of issuing the certificate.

    4.  Upon request from a facility which is self-supported, may certify the facility, its programs and detoxification technicians and add them to the list described in subsection 3.

    Sec. 4.  NRS 458.026 is hereby amended to read as follows:

 

 
    458.026  1.  An applicant for the issuance or renewal of his certification as a detoxification technician or as the operator of a halfway house for recovering alcohol and drug abusers shall submit to the bureau the statement prescribed by the welfare division of the department of human resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

    2.  The bureau shall include the statement required pursuant to subsection 1 in:

    (a) The application or any other forms that must be submitted for the issuance or renewal of the certification; or

    (b) A separate form prescribed by the bureau.

    3.  The certification of a person as a detoxification technician or as the operator of a halfway house for recovering alcohol and drug abusers may not be issued or renewed by the bureau if the applicant:

    (a) Fails to complete or submit the statement required pursuant to subsection 1; or

    (b) Indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

    4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the director shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

    Sec. 5.  NRS 458.027 is hereby amended to read as follows:

 

 
    458.027  1.  If the bureau receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who has been certified as a detoxification technician or as the operator of a halfway house for recovering alcohol and drug abusers, the bureau shall deem the certification to be suspended at the end of the 30th day after the date on which the court order was issued unless the bureau receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person who has been certified stating that the person has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

    2.  The bureau shall reinstate the certification of a person as a detoxification technician or as the operator of a halfway house for recovering alcohol and drug abusers, that has been suspended by a district court pursuant to NRS 425.540 if the bureau receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose certification was suspended stating that the person whose certification was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

    Sec. 6.  NRS 458.028 is hereby amended to read as follows:

 

 
    458.028  An application for the certification of a detoxification technician or as the operator of a halfway house for recovering alcohol and drug abusers, must include the social security number of the applicant.

    Sec. 7.  NRS 458.141 is hereby amended to read as follows:

    458.141  1.  No person, state or local government or agency thereof may operate or maintain in this state a halfway house for recovering alcohol and drug abusers without first obtaining a certificate therefor from the bureau.

    2.  A person who operates a halfway house for recovering alcohol and drug abusers without a certificate issued by the bureau is guilty of a misdemeanor.

    Sec. 8.  NRS 458.145 is hereby amended to read as follows:

    458.145  Each certificate issued by the bureau to a halfway house for recovering alcohol and drug abusers expires on the first December 31 following its issuance and is renewable for 1 year upon reapplication and payment of a renewal fee established pursuant to NRS 458.025.

    Sec. 9.  NRS 458.151 is hereby amended to read as follows:

    458.151  The bureau may:

    1.  Upon receipt of an application for certification as a halfway house for recovering alcohol and drug abusers, conduct an investigation into the premises, qualifications of personnel, methods of operation, policies and purposes of any person proposing to engage in the operation of that halfway house.

    2.  Upon receipt of a complaint against a halfway house for recovering alcohol and drug abusers, conduct an investigation into the premises, qualification of personnel, methods of operation, policies, procedures and records of that halfway house.

    3.  Inspect a halfway house for recovering alcohol and drug abusers at any time, with or without notice, as often as is necessary to ensure compliance with all applicable regulations and standards adopted by the bureau.

    Sec. 10.  NRS 458.155 is hereby amended to read as follows:

    458.155  1.  If a halfway house for recovering alcohol and drug abusers violates any provisions related to its certification, including, without limitation, any law of this state or any applicable condition, standard or regulation adopted by the bureau, the bureau may:

    (a) Suspend or revoke its certification; and

    (b) Impose an administrative fine of not more than $1,000 per day for each violation, together with interest thereon at a rate not to exceed 10 percent per annum.

    2.  If a halfway house for recovering alcohol and drug abusers fails to pay an administrative fine imposed pursuant to subsection 1, the bureau may:

    (a) Suspend the certificate of the halfway house until the administrative fine is paid; and

    (b) Collect court costs, reasonable attorney’s fees and other costs incurred to collect the administrative fine.

    3.  Any money collected as an administrative fine must be deposited in the state general fund. If money is needed to pay the costs of an investigation or inspection to carry out the provisions of NRS 458.141 to 458.171, inclusive, the bureau may present a claim to the state board of examiners for recommendation to the interim finance committee.

    Sec. 11.  NRS 458.165 is hereby amended to read as follows:

    458.165  1.  The bureau may bring an action in the name of the state to enjoin any person, state or local government or agency thereof from operating or maintaining a halfway house for recovering alcohol and drug abusers:

    (a) Without first obtaining a certificate therefor; or

    (b) After such a certificate has been revoked or suspended by the bureau.

    2.  It is sufficient in such an action to allege that the defendant did, on a certain date and in a certain place, operate and maintain such a halfway house without a certificate.

    Sec. 12.  NRS 458.171 is hereby amended to read as follows:

    458.171  The district attorney of the county in which a halfway house for recovering alcohol and drug abusers is located shall, upon application by the bureau, institute and conduct the prosecution of any action for the violation of NRS 458.141.”.

    Amend sec. 2, page 3, by deleting line 8 and inserting:

    “Sec. 13.  1.  This section and sections 7 to 12, inclusive, and 14 of this act become effective on July 1, 2001.

    2.  Sections 2 to 6, inclusive, of this act become effective at 12:01 a.m. on July 1, 2001.”.

    Amend the bill as a whole by adding a new section designated sec. 14, following sec. 2, to read as follows:

    “Sec. 14.  The legislative counsel shall:

    1.  In preparing the reprint and supplements to the Nevada Revised Statutes, with respect to any section which is not amended by this act or is further amended by another act, appropriately change any references to a halfway house for alcohol and drug abusers to a halfway house for recovering alcohol and drug abusers.

    2.  In preparing supplements to the Nevada Administrative Code, appropriately change any references to a halfway house for alcohol and drug abusers to a halfway house for recovering alcohol and drug abusers.”.

    Amend the title of the bill, second line, after “facilities;” by inserting:

“changing the statutory name of “halfway house for alcohol and drug abusers”;”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Revises provisions governing authority of city or county to control location of certain residential facilities and changes statutory name of “halfway house for alcohol and drug abusers.” (BDR 22‑1118)”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 463.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources, Agriculture, and Mining:

    Amendment No. 470.

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

    Amend the bill as a whole by deleting sections 3 and 4 and renumbering sec. 5 as sec. 2.

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

    “Sec. 3.  The amendatory provisions of this act do not apply to offenses committed before the effective date of this act.

    Sec. 4.  This act becomes effective upon passage and approval.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to animals; clarifying that certain provisions related to riding horses in public places do not apply to police officers while performing their official duties; providing penalties; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY¾Revises provisions governing use of certain animals. (BDR 15-809)”.

    Assemblyman de Braga moved the adoption of the amendment.

    Remarks by Assemblyman de Braga.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 551.

    Bill read second time.

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

    Amendment No. 336.

    Amend the bill as a whole by deleting sections 1 through 3 and adding new sections designated sections 1 through 24, following the enacting clause, to read as follows:

    “Section 1.  Chapter 644 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.

    Sec. 2.  “Demonstrator of cosmetics” means a person who, without charge and without advertising his services, demonstrates the application of cosmetics in a cosmetological establishment for the sole purpose of selling cosmetics.

    Sec. 3.  The board shall admit to examination for a license as a demonstrator of cosmetics any person who has made application to the board in proper form, paid the fee and:

    1.  Is at least 18 years of age;

    2.  Is of good moral character;

    3.  Has completed a course provided by the board relating to sanitation; and

    4.  Has received a score of not less than 75 percent on the examination administered by the board.

    Sec. 4.  The examination for a license as a demonstrator of cosmetics:

    1.  Must include a written or oral test relating to sanitation; and

    2.  May include such other demonstrations and tests as the board may require.

    Sec. 5.  Any food or beverages that are sold for immediate consumption in a cosmetological establishment must be sold in an area of the cosmetological establishment which is sufficiently separated from the area of the cosmetological establishment where cosmetological services are provided.

    Sec. 6.  NRS 644.020 is hereby amended to read as follows:

    644.020  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 644.0205 to 644.029, inclusive, and section 2 of this act have the meanings ascribed to them in those sections.

    Sec. 7.  NRS 644.0205 is hereby amended to read as follows:

    644.0205  “Aesthetician” means any person who engages in the practices of:

    1.  Beautifying, massaging, cleansing or stimulating the skin of the human body, except the scalp, by the use of cosmetic preparations, antiseptics, tonics, lotions or creams , or any device, electrical or otherwise, for the care of the skin;

    2.  Applying [make-up] cosmetics or eyelashes to any person, tinting eyelashes and eyebrows , and lightening hair on the body except the scalp; and

    3.  Removing superfluous hair from the body of any person by the use of depilatories, waxing or tweezers,

 

 
but does not include the branches of cosmetology of a cosmetologist, hair designer, electrologist or manicurist.

    Sec. 8.  NRS 644.023 is hereby amended to read as follows:

    644.023  “Cosmetologist” means a person who engages in the practices of:

    1.  Cleansing, stimulating or massaging the scalp or cleansing or beautifying the hair by the use of cosmetic preparations, antiseptics, tonics, lotions or creams.

    2.  Cutting, trimming or shaping the hair.

    3.  Arranging, dressing, curling, waving, cleansing, singeing, bleaching, tinting, coloring or straightening the hair of any person with the hands, mechanical or electrical apparatus or appliances, or by other means, or similar work incident to or necessary for the proper carrying on of the practice or occupation provided by the terms of this chapter.

    4.  Removing superfluous hair from the surface of the body of any person by the use of electrolysis [to remove the hair from the surface of the body] where the growth is a blemish, or by the use of depilatories, waxing or tweezers, except for the permanent removal of hair with needles.

    5.  Manicuring the nails of any person.

    6.  Beautifying, massaging, stimulating or cleansing the skin of the human body by the use of cosmetic preparations, antiseptics, tonics, lotions, creams or any device, electrical or otherwise, for the care of the skin.

    7.  Giving facials or skin care or applying [make-up] cosmetics or eyelashes to any person.

    Sec. 9.  NRS 644.024 is hereby amended to read as follows:

    644.024  “Cosmetology” includes the occupations of a cosmetologist, aesthetician, electrologist, hair designer , demonstrator of cosmetics and manicurist.

    Sec. 10.  NRS 644.130 is hereby amended to read as follows:

    644.130  1.  The board shall keep a record containing the name, known place of business , and the date and number of the license of every manicurist, electrologist, aesthetician, hair designer , demonstrator of cosmetics and cosmetologist, together with the names and addresses of all cosmetological establishments and schools of cosmetology licensed pursuant to this chapter. The record must also contain the facts which the applicants claimed in their applications to justify their licensure.

    2.  The board may disclose the information contained in the record kept pursuant to subsection 1 to:

    (a) Any other licensing board or agency that is investigating a licensee.

    (b) A member of the general public, except information concerning the address and telephone number of a licensee.

    Sec. 11.  NRS 644.212 is hereby amended to read as follows:

    644.212  An application for the issuance of a license or evidence of registration issued pursuant to NRS 644.190 to 644.330, inclusive, and sections 3 and 4 of this act must include the social security number of the applicant.

    Sec. 12.  NRS 644.214 is hereby amended to read as follows:

    644.214  1.  An applicant for the issuance or renewal of a license or evidence of registration issued pursuant to NRS 644.190 to 644.330, inclusive, and sections 3 and 4 of this act shall submit to the board the statement prescribed by the welfare division of the department of human resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

    2.  The board shall include the statement required pursuant to subsection 1 in:

    (a) The application or any other forms that must be submitted for the issuance or renewal of the license or evidence of registration; or

    (b) A separate form prescribed by the board.

    3.  A license or evidence of registration may not be issued or renewed by the board pursuant to NRS 644.190 to 644.330, inclusive, and sections 3 and 4 of this act if the applicant:

    (a) Fails to submit the statement required pursuant to subsection 1; or

    (b) Indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

    4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the board shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

    Sec. 13.  NRS 644.220 is hereby amended to read as follows:

    644.220  1.  In addition to the fee for an application, the fees for examination are:

    (a) For examination as a cosmetologist, not less than $40 and not more than $75.

    (b) For examination as an electrologist, not less than $40 and not more than $75.

    (c) For examination as a hair designer, not less than $40 and not more than $75.

    (d) For examination as a manicurist, not less than $40 and not more than $75.

    (e) For examination as an aesthetician, not less than $40 and not more than $75.

    (f) For examination as an instructor of aestheticians or in cosmetology or manicuring, $40.

 

 

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The fee for each reexamination is not less than $40 and not more than $75.

    2.  In addition to the fee for an application, the fee for examination or reexamination as a demonstrator of cosmetics is $40.

    3.  Each applicant referred to in [subsection] subsections 1 and 2 shall, in addition to the fees specified therein, pay the reasonable value of all supplies necessary to be used in the examination.

    Sec. 14.  NRS 644.240 is hereby amended to read as follows:

    644.240  Examinations for licensure as a cosmetologist may include:

    1.  Practical demonstrations in shampooing the hair, hairdressing, styling of hair, finger waving, coloring of hair, manicuring, [make-up,] cosmetics, thermal curling, marcelling, facial massage, massage of the scalp with the hands, and cutting, trimming or shaping hair;

    2.  Written or oral tests on:

    (a) Antisepsis, sterilization and sanitation;

    (b) The use of mechanical apparatus and electricity as applicable to the practice of a cosmetologist; and

    (c) The laws of Nevada and the regulations of the board relating to the practice of cosmetology; and

    3.  Such other demonstrations and tests as the board may require.

    Sec. 15.  NRS 644.247 is hereby amended to read as follows:

    644.247  The examinations for an aesthetician may include:

    1.  Practical demonstrations in facial massage, [make-up] cosmetics or arching the eyebrow;

    2.  Written and oral tests on:

    (a) Antisepsis, sterilization and sanitation;

    (b) The use of mechanical apparatus and electricity in the care of skin; and

    (c) The laws of Nevada and the regulations of the board relating to cosmetology; and

    3.  Such other demonstrations and tests as the board requires.

    Sec. 16.  NRS 644.260 is hereby amended to read as follows:

 

 
    644.260  The board shall issue a license as a cosmetologist, aesthetician, electrologist, hair designer, manicurist , demonstrator of cosmetics or instructor to each applicant who:

    1.  Passes a satisfactory examination, conducted by the board to determine his fitness to practice that occupation of cosmetology; and

    2.  Complies with such other requirements as are prescribed in this chapter for the issuance of the license.

    Sec. 17.  NRS 644.300 is hereby amended to read as follows:

    644.300  Every licensed manicurist, electrologist, aesthetician, hair designer , demonstrator of cosmetics or cosmetologist shall, within 30 days after changing his place of business, as designated in the records of the board, notify the secretary of the board of his new place of business. Upon receipt of the notification, the secretary shall make the necessary change in the records.

    Sec. 18.  NRS 644.320 is hereby amended to read as follows:

    644.320  1.  The license of every cosmetologist, aesthetician, electrologist, hair designer, manicurist, provisional instructor , demonstrator of cosmetics and instructor expires on July 1 of the next succeeding odd-numbered year.

    2.  The board shall adopt regulations governing the proration of the fee required for initial licenses issued for less than 1 1/2 years.

    Sec. 19.  NRS 644.325 is hereby amended to read as follows:

 

 
    644.325  1.  An application for renewal of any license issued pursuant to this chapter must be:

    (a) Made on a form prescribed and furnished by the board at any time during the month of June of the year in which the license expires;

    (b) Accompanied by the statement required pursuant to NRS 644.214; and

    (c) Accompanied by the fee for renewal.

    2.  The fees for renewal are:

    (a) For manicurists, electrologists, aestheticians, hair designers , demonstrators of cosmetics and cosmetologists, not less than $30 and not more than $50.

    (b) For instructors, not less than $40 and not more than $60.

    (c) For cosmetological establishments, not less than $60 and not more than $100.

    (d) For schools of cosmetology, not less than $450 and not more than $500.

    3.  For each month or fraction thereof after July 1 in which a license is not renewed, there must be assessed and collected at the time of renewal a penalty of $25 for a school of cosmetology and $10 for a cosmetological establishment and all persons licensed pursuant to this chapter.

    4.  An application for the renewal of a license as a cosmetologist, hair designer, aesthetician, electrologist, manicurist , demonstrator of cosmetics or instructor must be accompanied by two current photographs of the applicant which are 1 1/2 by 1 1/2 inches. The name and address of the applicant must be written on the back of each photograph.

    Sec. 20.  NRS 644.330 is hereby amended to read as follows:

 

 
    644.330  1.  A manicurist, electrologist, aesthetician, hair designer, cosmetologist , demonstrator of cosmetics or instructor whose license has expired may have his license renewed only upon submission of the statement required pursuant to NRS 644.214 and payment of all required fees.

    2.  Any manicurist, electrologist, aesthetician, hair designer, cosmetologist , demonstrator of cosmetics or instructor who retires from practice for more than 1 year may have his license restored only upon submission of the statement required pursuant to NRS 644.214 and payment of all required fees.

    3.  No manicurist, electrologist, aesthetician, hair designer, cosmetologist , demonstrator of cosmetics or instructor who has retired from practice for more than 4 years may have his license restored without examination and must comply with any additional requirements established in regulations adopted by the board.

    Sec. 21.  NRS 644.360 is hereby amended to read as follows:

    644.360  1.  Every holder of a license issued by the board to operate a cosmetological establishment shall display the license in plain view of members of the general public in the principal office or place of business of the holder.

    2.  The operator of a cosmetological establishment shall lease space to or employ only licensed manicurists, electrologists, aestheticians, hair designers , demonstrators of cosmetics and cosmetologists at his establishment to provide cosmetological services.

    Sec. 22.  NRS 644.430 is hereby amended to read as follows:

    644.430  1.  The following are grounds for disciplinary action by the board:

    (a) Failure of an owner of a cosmetological establishment, a licensed aesthetician, cosmetologist, hair designer, electrologist, instructor, manicurist , demonstrator of cosmetics or school of cosmetology, or a cosmetologist’s apprentice to comply with the requirements of this chapter or the applicable regulations adopted by the board.

    (b) Obtaining practice in cosmetology or any branch thereof, for money or any thing of value, by fraudulent misrepresentation.

    (c) Gross malpractice.

    (d) Continued practice by a person knowingly having an infectious or contagious disease.

    (e) Drunkenness or the use or possession, or both, of a controlled substance or dangerous drug without a prescription, while engaged in the practice of cosmetology.

    (f) Advertisement by means of knowingly false or deceptive statements.

    (g) Permitting a license to be used where the holder thereof is not personally, actively and continuously engaged in business.

    (h) Failure to display the license as provided in NRS 644.290, 644.360 and 644.410.

    (i) Entering, by a school of cosmetology, into an unconscionable contract with a student of cosmetology.

    (j) Continued practice of cosmetology or operation of a cosmetological establishment or school of cosmetology after the license therefor has expired.

    (k) Any other unfair or unjust practice, method or dealing which, in the judgment of the board, may justify such action.

    2.  If the board determines that a violation of this section has occurred, it may:

    (a) Refuse to issue or renew a license;

    (b) Revoke or suspend a license;

    (c) Place the licensee on probation for a specified period; or

    (d) Impose a fine not to exceed $1,000.

    Sec. 23.  NRS 644.435 is hereby amended to read as follows:

    644.435  1.  If the board receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who has been issued a license or been registered pursuant to NRS 644.190 to 644.330, inclusive, and sections 3 and 4 of this act the board shall deem the license or registration issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the board receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the holder of the license or registration stating that the holder of the license or registration has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

    2.  The board shall reinstate a license or registration issued pursuant to NRS 644.190 to 644.330, inclusive, and sections 3 and 4 of this act that has been suspended by a district court pursuant to NRS 425.540 if the board receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license or registration was suspended stating that the person whose license or registration was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

    Sec. 24.  NRS 644.460 is hereby amended to read as follows:

    644.460  1.  The following persons are exempt from the provisions of this chapter:

    (a) All persons authorized by the laws of this state to practice medicine, dentistry, osteopathic medicine, chiropractic or podiatry.

    (b) Commissioned medical officers of the United States Army, Navy, or Marine Hospital Service when engaged in the actual performance of their official duties, and attendants attached to those services.

    (c) Barbers, insofar as their usual and ordinary vocation and profession is concerned, when engaged in any of the following practices:

        (1) Cleansing or singeing the hair of any person.

        (2) Massaging, cleansing, stimulating, exercising or similar work upon the scalp, face or neck of any person, with the hands or with mechanical or electrical apparatus or appliances, or by the use of cosmetic preparations, antiseptics, tonics, lotions or creams.

    (d) Retailers, at a retail establishment, insofar as their usual and ordinary vocation and profession is concerned, when engaged in the demonstration of [make-up] cosmetics if:

        (1) The demonstration is without charge to the person to whom the demonstration is given; and

        (2) The retailer does not advertise or provide a cosmetological service except [make-up] cosmetics and fragrances.

    (e) Photographers or their employees, insofar as their usual and ordinary vocation and profession is concerned, if the photographer or his employee does not advertise cosmetological services and provides cosmetics without charge to the customer.

    2.  Any school of cosmetology conducted as part of the vocational rehabilitation training program of the department of prisons or the Caliente youth center:

    (a) Is exempt from the requirements of paragraph (c) of subsection 2 of NRS 644.400.

    (b) Notwithstanding the provisions of NRS 644.395, shall maintain a staff of at least one licensed instructor.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to cosmetology; requiring the licensing of a demonstrator of cosmetics; authorizing the sale of food or beverages in a cosmetological establishment under certain circumstances; providing a penalty; and providing other matters properly relating thereto.”.

    Assemblyman Dini moved the adoption of the amendment.

    Remarks by Assemblyman Dini.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 564.

    Bill read second time.

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

    Amendment No. 396.

    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 286.160 is hereby amended to read as follows:

    286.160  1.  The board shall employ an executive officer who serves at the pleasure of the board. The executive officer shall select an operations officer, investment officer, manager of information systems, administrative assistant and administrative analyst whose appointments are effective upon confirmation by the board. The operations officer, investment officer, manager of information systems, administrative assistant and administrative analyst serve at the pleasure of the executive officer.

    2.  The executive officer, operations officer, investment officer, manager of information systems, administrative assistant and administrative analyst are entitled to annual salaries fixed by the board with the approval of the interim retirement [and benefits] committee of the legislature created pursuant to NRS 218.5373. The salaries of these employees are exempt from the limitations of NRS 281.123.

    3.  The executive officer must:

    (a) Be a graduate of a 4-year college or university with a degree in business administration or public administration or an equivalent degree.

    (b) Possess at least 5 years’ experience in a high level administrative or executive capacity, including responsibility for a variety of administrative functions such as retirement, insurance, investment or fiscal operations.

    4.  The operations officer and the investment officer must each be a graduate of a 4-year college or university with a degree in business administration or public administration or an equivalent degree.

    5.  Except as otherwise provided in NRS 284.143, the executive officer shall not pursue any other business or occupation or perform the duties of any other office of profit during normal office hours unless on leave approved in advance. The executive officer shall not participate in any business enterprise or investment in real or personal property if the system owns or has a direct financial interest in that enterprise or property.

    Sec. 2.  NRS 286.211 is hereby amended to read as follows:

    286.211  1.  The board shall, with the advice of the interim retirement [and benefits] committee of the legislature created pursuant to NRS 218.5373:

    (a) Adopt regulations for the evaluation of requests for enrollment under the police and firemen’s retirement fund; and

    (b) Determine those positions eligible under the early retirement provisions for police officers and firemen.

    2.  Service in any position which has not been determined by the board to be eligible does not entitle a member to early retirement as a fireman or police officer.”.

    Amend section 1, page 1, by deleting lines 3 and 4 and inserting:

    “If a retired member of the program or his dependent is eligible for and elects to be provided coverage for medical or hospital service, or both, by the Health Insurance for”.

    Amend section 1, page 1, line 9, before “charges” by inserting “eligible”.

    Amend section 1, page 1, line 11, by deleting “services” and inserting:

or hospital services, or both,”.

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

    “Sec. 4.  NRS 287.0424 is hereby amended to read as follows:

    287.0424  1.  The board shall employ an executive officer who is in the unclassified service of the state and serves at the pleasure of the board. The board may delegate to the executive officer the exercise or discharge of any power, duty or function vested in or imposed upon the board.

    2.  The executive officer must:

    (a) Be a graduate of a 4-year college or university with a degree in business administration or public administration or an equivalent degree, as determined by the board; and

    (b) Possess at least 5 years’ experience in a high-level administrative or executive capacity in the field of insurance, management of employees’ benefits or risk management, including, without limitation, responsibility for a variety of administrative functions such as personnel, accounting, data processing or the structuring of insurance programs.

    3.  Except as otherwise provided in NRS 284.143, the executive officer shall not pursue any other business or occupation or perform the duties of any other office of profit during normal office hours unless on leave approved in advance. The executive officer shall not participate in any business enterprise or investment with any vendor or provider to the program.

    4.  The executive officer is entitled to an annual salary fixed by the board with the approval of the interim [retirement and] benefits committee of the legislature created pursuant to [NRS 218.5373.] section 7 of this act. The salary of the executive officer is exempt from the limitations set forth in NRS 281.123.

    Sec. 5.  NRS 287.0426 is hereby amended to read as follows:

    287.0426  1.  The executive officer may appoint a quality control officer, operations officer, accounting officer, information technology systems officer and executive assistant who are in the unclassified service of the state and serve at the pleasure of the executive officer. The appointment and dismissal of the quality control officer are subject to the approval of the board.

    2.  The quality control officer, operations officer, accounting officer and information technology systems officer must each be a graduate of a 4-year college or university with a degree that is appropriate to their respective responsibilities or possess equivalent experience as determined by the board.

    3.  The quality control officer, operations officer, accounting officer, information technology systems officer and executive assistant are entitled to annual salaries fixed by the board with the approval of the interim [retirement and] benefits committee of the legislature created pursuant to [NRS 218.5373.] section 7 of this act. The salaries of these employees are exempt from the limitations set forth in NRS 281.123.

    4.  The executive officer may employ such staff in the classified service of the state as are necessary for the performance of his duties, within limits of legislative appropriations or other available money.”.

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

retired state officers and employees and their dependents must be reduced for those retired state officers and employees and their dependents who are eligible for and have elected to be provided coverage”.

    Amend sec. 2, page 2, line 17, by deleting “provided”.

    Amend sec. 2, page 2, line 42, by deleting “1” and inserting “3”.

    Amend sec. 2, page 3, by deleting lines 11 and 12 and inserting:

 

 
“The accountant shall report to the board and the interim [retirement and] benefits committee of the legislature created pursuant to [NRS 218.5373.]section 7 of this act.”.

    Amend sec. 2, page 3, by deleting line 22 and inserting:

coverage for medical or hospital service, or both, by the Health”.

    Amend the bill as a whole by renumbering sec. 3 as sec. 11 and adding new sections designated sections 7 through 10, following sec. 2, to read as follows:

    “Sec. 7.  Chapter 218 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  There is hereby created an interim benefits committee of the legislature to review the operation of the public employees’ benefits program and to make recommendations to the board of the public employees’ benefits program, the legislative commission and the legislature. The interim benefits committee consists of six members appointed as follows:

    (a) Three members of the senate, one of whom is the chairman of the committee on finance during the preceding session and two of whom are appointed by the majority leader of the senate.

    (b) Three members of the assembly, one of whom is the chairman of the committee on ways and means and two of whom are appointed by the speaker of the assembly.

    2.  The immediate past chairman of the assembly standing committee on ways and means is the chairman of the interim benefits committee for the period ending with the convening of each odd-numbered session of the legislature. The immediate past chairman of the senate standing committee on finance is the chairman of the interim benefits committee during the next legislative interim, and the chairmanship alternates between the houses of the legislature according to this pattern.

    3.  The interim benefits committee may exercise the powers conferred on it by law only when the legislature is not in regular or special session and shall meet at the call of the chairman.

    4.  The director of the legislative counsel bureau shall provide a secretary for the interim benefits committee.

    5.  The members of the interim benefits committee are entitled to receive the compensation provided for a majority of the members of the legislature during the first 60 days of the preceding session, the per diem allowance provided for state officers and employees generally and the travel expenses provided by NRS 218.2207 for each day of attendance at a meeting of the committee and while engaged in the business of the committee. Per diem allowances, compensation and travel expenses of the members of the committee must be paid from the legislative fund.

    Sec. 8.  NRS 218.5373 is hereby amended to read as follows:

    218.5373  1.  There is hereby created an interim retirement [and benefits] committee of the legislature to review the operation of the public employees’ retirement system [and the public employees’ benefits program] and to make recommendations to the public employees’ retirement board , [and the board of the public employees’ benefits program,] the legislative commission and the legislature. The interim retirement [and benefits] committee consists of six members appointed as follows:

    (a) Three members of the senate, one of whom is the chairman of the committee on finance during the preceding session and two of whom are appointed by the majority leader of the senate.

    (b) Three members of the assembly, one of whom is the chairman of the committee on ways and means and two of whom are appointed by the speaker of the assembly.

    2.  The immediate past chairman of the senate standing committee on finance is the chairman of the interim retirement [and benefits] committee for the period ending with the convening of each odd-numbered session of the legislature. The immediate past chairman of the assembly standing committee on ways and means is the chairman of the interim retirement [and benefits] committee during the next legislative interim, and the chairmanship alternates between the houses of the legislature according to this pattern.

    3.  The interim retirement [and benefits] committee may exercise the powers conferred on it by law only when the legislature is not in regular or special session and shall meet at the call of the chairman.

    4.  The director of the legislative counsel bureau shall provide a secretary for the interim retirement [and benefits] committee.

    5.  The members of the interim retirement [and benefits] committee are entitled to receive the compensation provided for a majority of the members of the legislature during the first 60 days of the preceding session, the per diem allowance provided for state officers and employees generally and the travel expenses provided by NRS 218.2207 for each day of attendance at a meeting of the committee and while engaged in the business of the committee. Per diem allowances, compensation and travel expenses of the members of the committee must be paid from the legislative fund.

    Sec. 9.  1.  There is hereby appropriated from the state general fund to the board of the public employees’ benefits program created by NRS 287.041 the sum of $100,000 to provide reproductive services for participants in the public employees’ benefits program who reside in northern Nevada and are not entitled to receive those services from the health maintenance organization offered by the program.

    2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.”.

    Amend sec. 3, page 3, by deleting line 40 and inserting:

    “Sec. 10.  1.  This section and section 9 of this act become effective on July 1, 2001.

    2.  Sections 1 to 8, inclusive, of this act become effective on January 1, 2002.”.

    Amend the bill as a whole by adding a new section designated sec. 11, following sec. 3, to read as follows:

    “Sec. 11.  The legislative counsel shall:

    1.  In preparing the reprint and supplements to the Nevada Revised Statutes, with respect to any section which is not amended by this act or is further amended by another act, appropriately change any references to the interim retirement and benefits committee to the interim retirement committee or the interim benefits committee, as appropriate.

    2.  In preparing supplements to the Nevada Administrative Code, appropriately change any references to the interim retirement and benefits committee to the interim retirement committee or the interim benefits committee, as appropriate.”.

    Amend the title of the bill, eighth line, after “bureau;” by inserting:

“reorganizing the interim retirement and benefits committee of the legislature into the interim retirement committee of the legislature and the interim benefits committee of the legislature; making an appropriation;”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Assemblyman Bache moved that upon return from the printer Assembly Bill No. 564 be re-referred to the Committee on Ways and Means.

    Motion carried.

    Bill ordered reprinted, engrossed and to the Committee on Ways and Means.

    Assembly Bill No. 618.

    Bill read second time.

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

    Amendment No. 443.

    Amend sec. 4, page 2, line 3, by deleting “certified”.

    Amend sec. 63, page 17, by deleting line 29 and inserting:

    “2.  Except as otherwise provided in subsections 3[, 5 and 6,] and 5 to 9,”.

    Amend sec. 63, page 18, by deleting lines 1 through 39 and inserting:

    (b) Documents obtained or received from other sources upon the express condition that they remain confidential.

    6.  All information and documents in the possession of the division or any of its employees which are related to cases or matters under investigation by the commissioner or his staff are confidential for the period of the investigation and may not be made public unless the commissioner finds the existence of an imminent threat of harm to the safety or welfare of the policyholder, shareholders or the public and determines that the interests of the policyholder, shareholders or the public will be served by publication thereof, in which event he may make a record public or publish all or any part of the record in any manner he deems appropriate.

    7.  The commissioner may classify as confidential the records of a consumer or information relating to a consumer to protect the health, welfare or safety of the consumer.

    8.  In performing his duties, the commissioner may:”.

    Amend sec. 63, page 19, line 8, by deleting “10.” and inserting “9.”.

    Amend sec. 71, page 26, line 38, after “NRS” by inserting “677.247 or”.

    Amend the bill as a whole by adding a new section designated sec. 137.5, following sec. 137, to read as follows:

    “Sec. 137.5.  NRS 687A.033 is hereby amended to read as follows:

    687A.033  1.  “Covered claim” means an unpaid claim or judgment, including a claim for unearned premiums, which arises out of and is within the coverage of an insurance policy to which this chapter applies issued by an insurer which becomes an insolvent insurer, if one of the following conditions exists:

    (a) The claimant or insured, if a natural person, is a resident of this state at the time of the insured event.

    (b) The claimant or insured, if other than a natural person, maintains its principal place of business in this state at the time of the insured event.

    (c) The property from which the first party property damage claim arises is permanently located in this state.

    (d) The claim is not a covered claim pursuant to the laws of any other state and the premium tax imposed on the insurance policy is payable in this state pursuant to NRS 680B.027.

    2.  The term does not include:

    (a) An amount that is directly or indirectly due a reinsurer, insurer, insurance pool or underwriting association, as recovered by subrogation, indemnity or contribution, or otherwise.

    (b) That part of a loss which would not be payable because of a provision for a deductible or a self-insured retention specified in the policy.

    (c) Except as otherwise provided in this paragraph, any claim filed with the association after:

      (1) Eighteen months after the date of the order of liquidation; or

      (2) The final date set by the court for the filing of claims against the liquidator or receiver of the insolvent insurer,

 

 
 whichever is earlier. The provisions of this paragraph do not apply to a claim for workers’ compensation that is reopened pursuant to the provisions of NRS 616C.390.

    (d) A claim filed with the association for a loss that is incurred but is not reported to the association before the expiration of the period specified in subparagraph (1) or (2) of paragraph (c).

    (e) An obligation to make a supplementary payment for adjustment or attorney’s fees and expenses, court costs or interest and bond premiums incurred by the insolvent insurer before the appointment of a liquidator, unless the expenses would also be a valid claim against the insured.

    (f) A first party or third party claim brought by or against an insured, if the aggregate net worth of the insured and any affiliate of the insured, as determined on a consolidated basis, is more than $25,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer. The provisions of this paragraph do not apply to a claim for workers’ compensation.”.

    Amend the bill as a whole by adding a new section designated sec. 166.5, following sec. 166, to read as follows:

    “Sec. 166.5.  NRS 690C.160 is hereby amended to read as follows:

    690C.160  1.  A provider who wishes to issue, sell or offer for sale service contracts in this state must submit to the commissioner:

    (a) A registration application on a form prescribed by the commissioner;

    (b) Proof that he has complied with the requirements for security set forth in NRS 690C.170;

    (c) A copy of each type of service contract he proposes to issue, sell or offer for sale;

    (d) The name, address and telephone number of each administrator with whom the provider intends to contract; and

    (e) A fee of $1,000.

    2.  In addition to the fee required by subsection 1, a provider must pay a fee of $25 for each type of service contract he files with the commissioner.

    3.  A certificate of registration is valid for 1 year after the date the commissioner issues the certificate to the provider. A provider may renew his certificate of registration if, before the certificate expires, he submits to the commissioner an application on a form prescribed by the commissioner and a fee of [$500.] $1,000.”.

    Amend the bill as a whole by renumbering sections 174 and 175 as sections 227 and 228 and adding new sections designated sections 173.5 through 226, following sec. 173, to read as follows:

    “Sec. 173.5.  Chapter 693A of NRS is hereby amended by adding thereto the provisions set forth as sections 174 to 226, inclusive, of this act.

    Sec. 174.  As used in sections 174 to 202, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 175 to 180, inclusive, of this act have the meanings ascribed to them in those sections.

    Sec. 175.  “Closed block” means an allocation of assets of the converting mutual sufficient to maintain payments of guaranteed benefits and the continuation of the current dividends for eligible members.

    Sec. 176.  “Consideration” means cash, stock or other valuable compensation approved by the commissioner.

    Sec. 177.  “Converting mutual” means a domestic mutual insurance company or a mutual insurance holding company that has adopted a plan of conversion to a domestic stock insurance company pursuant to sections 174 to 202, inclusive, of this act.

    Sec. 178.  “Eligible member” means a person who has a membership interest in the converting mutual on the date on which the board of directors of the converting mutual adopts a resolution proposing a plan of conversion and an amendment to its articles of incorporation.

    Sec. 179.  “New stock insurer” means the domestic stock insurer that is created when the commissioner issues a certificate of authority to a converting mutual pursuant to section 188 of this act.

    Sec. 180.  “Policyholder” means a person who holds a policy issued by the converting mutual on the day on which the plan of conversion is initially approved by the board of directors of the converting mutual.

    Sec. 181.  A domestic mutual insurer or a mutual insurance holding company may amend its articles of incorporation to become a domestic stock insurer by complying with sections 174 to 202, inclusive, of this act and obtaining a certificate of authority from the commissioner.

    Sec. 182.  1.  The board of directors of a domestic mutual insurer or a mutual insurance holding company may adopt a resolution proposing a plan of conversion and an amendment to its articles of incorporation. The resolution must be approved by a vote of not less than two-thirds of the members of the board.

    2.  The plan of conversion must:

    (a) Require the distribution of consideration equal to not less than the fair market value of the surplus of the converting mutual to the eligible members in exchange for the extinguishment of their membership interests in the converting mutual.

    (b) Describe the manner in which the fair market value of the converting mutual and its surplus has been or will be determined.

    (c) Require the distribution of consideration to the eligible members upon extinguishment of their membership interests in the converting mutual.

    (d) Provide that membership interests in the converting mutual are extinguished as of the effective date of conversion.

    (e) Specify the structure and form of the proposed consideration, including, without limitation, the projected range of the number of shares of capital stock to be:

        (1) Issued to policyholders by the new stock insurer or the holding company of the new stock insurer; and

        (2) Sold or reserved for sale to investors by the new stock insurer or the holding company of the new stock insurer, or to the trust established pursuant to this section.

    (f) If the distribution of consideration will not be made immediately following the final order of the commissioner approving the conversion, provide for the establishment of a trust for the exclusive benefit of policyholders into which shares of the capital stock of the new stock insurer or the holding company of the new stock insurer must be placed pending distribution to the policyholders. The terms of the trust are subject to the approval of the commissioner. Such a trust may exist only for a period of 6 months after the final approval of the conversion, during which time the distribution of consideration to eligible policyholders and other persons must be completed.

    (g) Provide for the determination of the reasonable dividend expectations of eligible members and other policyholders of policies that provide for distribution of policy dividends and the preservation of such expectations through the establishment of a closed block of assets.

    (h) Provide for such other proposed conditions and provisions as the board of directors of the converting mutual determines are necessary and are not inconsistent with the provisions of sections 174 to 202, inclusive, of this act.

    Sec. 183.  A converting mutual shall file with the commissioner an application to convert to a domestic stock insurer. The application must be accompanied by a nonrefundable fee of $2,450. The application must include, without limitation:

    1.  The plan of conversion adopted by the board of directors.

    2.  A certification that the plan of conversion was duly adopted by a vote of not less than two-thirds of the members of the board of directors of the converting mutual.

    3.  A certification that the plan of conversion is fair and equitable to the policyholders. This certification must be adopted by a vote of not less than two-thirds of the members of the board of directors of the converting mutual.

    4.  A statement of the reasons for the proposed conversion and why the conversion is in the best interest of the converting mutual, including, without limitation, a:

    (a) Detailed analysis of the risks and benefits of the proposed conversion to the converting mutual and its members; and

    (b) Comparison of the risks and benefits of the conversion with the risks and benefits of a reasonable alternative to the conversion.

    5.  A written opinion addressed to the board of directors of the converting mutual from a qualified, independent financial advisor attesting that the:

    (a) Consideration to be provided to the membership of the converting mutual is fair to the eligible members as a group; and

    (b) Total consideration to be provided to the membership is equal to or greater than the surplus of the converting mutual.

    6.  An opinion from a qualified actuary attesting that all methodologies and formulas used to allocate the consideration among eligible members are reasonable.

    7.  Certified copies of the proposed amendments to the articles of incorporation and bylaws to effect the conversion.

    8.  A copy of the form of the trust agreement of any trust to be used in connection with the conversion.

    9.  A plan of operation for a closed block to preserve the reasonable dividend expectations of eligible members and other policyholders of policies that provide for the distribution of policy dividends.

    10.  A form of the proposed notice to be mailed by the converting mutual to its policyholders as required by section 186 of this act.

    11.  A 5-year business plan and at least 2 years of financial projections for the new stock insurer and a parent company, if any.

    12.  A list of natural persons who are or have been selected to become directors or officers of the new stock insurer and the following information concerning each person on the list, unless the information is already on file with the commissioner:

    (a) Occupation;

    (b) Criminal convictions, other than traffic violations, during the immediately preceding 7 years;

    (c) Personal bankruptcy of the person or the spouse of the person during the immediately preceding 7 years;

    (d) Information regarding any consent decree entered into by the person; and

    (e) Whether the person has been refused a fidelity or other bond during the immediately preceding 7 years.

    13.  Any plans that the new stock insurer or its parent company, if any, may have to:

    (a) Raise additional capital through the issuance of stock or otherwise;

    (b) Sell or issue stock to any person;

    (c) Liquidate or dissolve any company or sell any material assets;

    (d) Merge, consolidate or pursue any other form of reorganization with any person; or

    (e) Make any material change in its investment policy, business, corporate structure or management.

    14.  Copies of proposed articles of incorporation and any proposed bylaws of the new stock insurer.

    15.  Such additional information as the commissioner may by regulation prescribe as necessary or appropriate for the protection of policyholders and security holders of the converting mutual, or for the protection of the public interest.

    Sec. 184.  The commissioner shall conduct a public hearing not later than 120 days after the date on which the application is filed unless, for good cause, he extends this time. Any interested person may appear or otherwise be heard at the public hearing. The commissioner may continue the hearing for a reasonable period, not to exceed 60 days. The converting mutual shall give such reasonable notice of the hearing as the commissioner requires. The hearing must be conducted pursuant to NRS 679B.320 to 679B.370, inclusive.

    Sec. 185.  1.  The commissioner shall issue an order making an initial determination of approval or disapproval of the application not later than 30 days after the public hearing.

    2.  The commissioner shall not approve the application unless he finds that the:

    (a) Plan of conversion is fair and equitable to the policyholders;

    (b) Plan of conversion does not deprive the policyholders of their property rights or due process of law;

    (c) New stock insurer meets the minimum requirements for a certificate of authority to transact the business of insurance in this state; and

    (d) Continued operation of the new stock insurer is not hazardous to future policyholders and the public.

    3.  For the purposes of this section, the commissioner may consider any relevant factor, including, without limitation:

    (a) The capital requirements of the new stock insurer;

    (b) Whether a sufficient portion of the surplus of the converting mutual was contributed by persons or entities whose policies or contracts were not in force on the date on which the plan of conversion was initially approved by the board of directors of the converting mutual to require the reduction of the consideration to policyholders to an amount equal to less than the surplus;

    (c) Whether the plan of conversion includes preemptive rights for policyholders to purchase securities offered in the initial sale of securities by the new stock insurer;

    (d) Whether the plan of conversion includes establishment of a preference account from which the payment of any shareholder dividends, including a regular, special or liquidation dividend, would be prohibited for such a reasonable period as the commissioner may require;

    (e) The suitability of the trustees of any trust created to effect the conversion; and

    (f) Whether the utilization of a trust, if included in the plan of conversion, has a material adverse effect on policyholders, other than delaying the receipt of shares of capital stock.

    4.  If the commissioner makes a determination to disapprove the application, the commissioner shall issue a final order setting forth specific findings for the disapproval.

    Sec. 186.  1.  Unless the commissioner for good cause establishes a different time, the converting mutual shall, not less than 45 days after the date of the initial determination of approval by the commissioner, hold a meeting of its policyholders at a reasonable time and place to vote upon the plan of conversion.

    2.  The converting mutual shall give notice not less than 30 days before the meeting, by first-class mail to the last known address of each policyholder, that the plan of conversion will be voted upon at a regular or special meeting of the policyholders. The notice must include, without limitation, a:

    (a) Brief description of the plan of conversion;

    (b) Statement that the commissioner has initially approved the plan of conversion; and

    (c) Written proxy permitting the policyholder to vote for or against the plan of conversion.

    3.  The commissioner shall supervise and direct the conducting of the vote on the plan of conversion as necessary to ensure that the vote is fair and consistent with the requirements of this section. Each policyholder is entitled to only one vote regardless of the number of policies owned by the policyholder.

    4.  A plan of conversion is approved only if not less than two-thirds of the policyholders voting in person or by proxy at the meeting vote in favor of the plan of conversion.

    5.  For the purposes of notice and voting, the policyholder of a policy of group insurance is the entity to which the group policy is issued and not any person covered under the group policy.

    Sec. 187.  A converting mutual may, by not less than a two-thirds vote of the members of its board of directors and with the approval of the commissioner, abandon the plan of conversion at any time before the issuance of the certificate of authority by the commissioner pursuant to section 188 of this act. Upon abandonment, all rights and obligations arising out of the plan of conversion terminate and the converting mutual shall continue to conduct its business as a domestic mutual insurer or a mutual insurance holding company as though no plan of conversion had ever been adopted.

    Sec. 188.  1.  The commissioner shall:

    (a) Enter a final order approving the application to convert to a stock insurer within 10 days after receiving a valid certification from the converting mutual setting forth the vote and certifying that the plan of conversion was approved by not less than two-thirds of the policyholders voting in person or by proxy on the plan of conversion; and

    (b) Publish notification of the issuance of the final order in a newspaper of general circulation in Carson City and in the county of domicile of the converting mutual if different from Carson City.

    2.  Except as otherwise provided in section 187 of this act, the commissioner shall issue a certificate of authority to the new stock insurer when the converting mutual files a certificate with the commissioner stating that all the conditions set forth in the plan of conversion have been satisfied.

    3.  The conversion is effective upon the issuance of the certificate of authority by the commissioner.

    4.  Upon issuance of the certificate of authority, the articles of incorporation of the insurer shall be deemed to be amended in compliance with NRS 692B.030.

    Sec. 189.  Any person aggrieved by a final order of the commissioner issued pursuant to sections 174 to 202, inclusive, of this act may petition for judicial review in the manner provided by chapter 233B of NRS.

    Sec. 190.  In determining whether a plan of conversion meets the requirements of sections 174 to 202, inclusive, of this act, or with regard to any other matters relating to the development of a plan of conversion, the commissioner may engage the services of experts. All reasonable costs related to the review of a plan of conversion or such other matters, including those costs attributable to the use of experts, must be paid by the converting mutual filing the application or initiating discussions with the commissioner about such matters.

    Sec. 191.  1.  Except as otherwise provided in subsection 2, all information and documents obtained by or disclosed to the commissioner or any other person in the course of preparing, filing and processing an application of a converting mutual, other than information and documents distributed to policyholders in connection with the meeting of policyholders pursuant to section 186 of this act or filed or submitted as evidence in connection with the public hearing pursuant to section 184 of this act, are confidential and not subject to subpoena, and must not be made public by the commissioner, the National Association of Insurance Commissioners or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which such information and documents pertain.

    2.  If the commissioner, after giving the insurer and its affiliates who would be affected notice and opportunity to be heard, determines that the interests of policyholders, shareholders or the public will be best served by the publication of such information and documents, the commissioner may publish all or any part thereof in such a manner as he determines appropriate.

    Sec. 192.  Whenever it appears to the commissioner that any person or any director, officer, employee or agent of the person has committed or is about to commit a violation of any provision of sections 174 to 202, inclusive, of this act or of any regulation or order of the commissioner relating thereto, the commissioner may apply to the First Judicial District Court in and for Carson City for an order enjoining the person, director, officer, employee or agent from violating or continuing to violate any provision of sections 174 to 202, inclusive, of this act or any such regulation or order, and for such other equitable relief as the nature of the case and the interest of the policyholders, creditors and shareholders of the insurer, or the public, may require.

    Sec. 193.  The corporate existence of a converting mutual pursuant to sections 174 to 202, inclusive, of this act does not terminate, and the new stock insurer shall be deemed to be a continuation of the converting mutual and to have been organized on the date the converting mutual was originally organized.

    Sec. 194.  The provisions of sections 174 to 202, inclusive, of this act do not prohibit the inclusion in the plan of conversion of provisions under which members of the board of directors, officers, employees or agents of the new stock insurer, and persons acting as trustees of employee stock ownership plans or other employee benefit plans may be entitled to purchase for cash capital stock of the new stock insurer at the same price initially issued by the new stock insurer under the plan of conversion, except that no such purchase may be made while any shares of capital stock are held in a trust established pursuant to the plan of conversion.

    Sec. 195.  1.  No director, officer, employee or agent of the converting mutual, or any other person, may receive any fee, commission or other valuable consideration, other than his usual regular salary and compensation, for aiding, promoting or assisting in a plan of conversion except as set forth in the plan of conversion approved by the commissioner.

    2.  Subsection 1 does not prohibit a management incentive compensation program that is contained in the plan of conversion and approved by the commissioner to be adopted upon conversion to the new stock insurer or prohibit such a program to be adopted later by the new stock insurer.

    3.  Subsection 1 does not prohibit the payment of reasonable fees and compensation to attorneys, accountants, actuaries and investment bankers for services performed in the independent practice of their professions if the person is also a member of the board of directors of the converting mutual.

    Sec. 196.  1.  Except as otherwise specifically provided in the plan of conversion, before and for a period of 5 years after the issuance of a certificate of authority to a new stock insurer pursuant to section 188 of this act, no person other than the new stock insurer may directly or indirectly offer to acquire or acquire in any manner the beneficial ownership of 5 percent or more of any class of a voting security of the new stock insurer or of any institution that owns a majority of the voting securities of the new stock insurer without the prior approval by the commissioner of an application for acquisition.

    2.  The commissioner shall not approve an application for acquisition filed pursuant to subsection 1 unless he finds that:

    (a) The acquisition will not frustrate the plan of conversion as approved by the policyholders and the commissioner;

    (b) The board of directors of the new stock insurer has approved the acquisition or extraordinary circumstances not contemplated in the plan of conversion have arisen which would warrant approval of the acquisition; and

    (c) The acquisition is consistent with the purpose of sections 174 to 202, inclusive, of this act to permit conversions on terms and conditions that are fair and equitable to the policyholders.

    3.  An application for acquisition filed pursuant to subsection 1 must describe in sufficient detail all information necessary for the approval of the application.

    4.  If any material change occurs in the facts set forth in an application for acquisition filed pursuant to subsection 1, an amendment setting forth the change, together with copies of all documents and other material relevant to the change, must be filed with the commissioner.

    5.  The commissioner may hold a public hearing on an application for acquisition filed pursuant to subsection 1. If the commissioner decides to hold a public hearing, the hearing must be held not later than 30 days after the person seeking to acquire securities files an application for acquisition with the commissioner pursuant to subsection 1. The commissioner shall give at least 20 days’ notice of the hearing to the person filing the application for acquisition. The person filing the application for acquisition shall give not less than 7 days’ notice of the hearing to the new stock insurer and to such other persons as may be designated by the commissioner. In connection with the hearing, the person filing the application for acquisition, the new stock insurer, any other person to whom notice of the hearing was given, and any other person whose interest may be affected may conduct discovery proceedings in the same manner as is allowed in the district court. All discovery proceedings must be concluded not later than 3 days before the commencement of the hearing. At the hearing the person filing the application for acquisition, the new stock insurer, any other person to whom notice of the hearing was given, and any other person whose interest may be affected may present evidence, examine and cross-examine witnesses, and offer oral and written arguments. If any acquisition referred to in the application for acquisition is proposed by means of a registration statement under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq., in circumstances requiring the disclosure of similar information under the Securities Exchange Act of 1934, 15 U.S.C. §§ 78a et seq., or under a state law requiring similar registration or disclosure, the person required to file the statement may utilize such documents in furnishing the information required by the application for acquisition. The person filing the application shall serve the new stock insurer and any institution that owns a majority of the voting securities of the new stock insurer with a copy of the application for acquisition and any amendments thereto on the day the documents are filed with the commissioner.

    6.  The new stock insurer and any institution that owns a majority of the voting securities of the new stock insurer must be permitted to become parties to the hearing upon request.

    7.  The commissioner shall make a determination not later than 30 days after the conclusion of the hearing or, if no hearing is held, not later than 30 days after the date on which the application for acquisition is filed with the commissioner pursuant to subsection 1. Approval or disapproval of an application for acquisition must be by written order. Any person who is aggrieved by the order may petition for judicial review in the manner provided by chapter 233B of NRS.

    8.  The commissioner may retain, at the expense of the person filing an application for acquisition pursuant to subsection 1, any attorneys, actuaries, accountants and other experts who are not employees of the division as may be reasonably necessary to assist the commissioner in reviewing the application.

    Sec. 197.  1.  No security which is the subject of any agreement or arrangement regarding acquisition, or which is acquired or to be acquired, in contravention of section 196 of this act or of any regulation or order of the commissioner may be voted at any shareholders’ meeting or may be counted for quorum purposes, and any action of the shareholders requiring the affirmative vote of a percentage of shares may be taken as though such securities were not issued and outstanding, but no action taken at any such meeting may be invalidated by the voting of such securities unless:

    (a) The action would materially affect control of the new stock insurer or an institution that owns a majority of the voting securities of the new stock insurer; or

    (b) A court of competent jurisdiction has so ordered.

    2.  If a new stock insurer or the commissioner has reason to believe that any security of the new stock insurer or an institution that owns a majority of the voting securities of the new stock insurer has been or is about to be acquired in contravention of sections 174 to 202, inclusive, of this act or of any regulation or order of the commissioner, the new stock insurer or the commissioner may apply to the First Judicial District Court in and for Carson City for an order to enjoin any offer or acquisition made in contravention of section 196 of this act or any regulation or order of the commissioner to enjoin the voting of any security so acquired, to void any vote of such a security already cast at any shareholders’ meeting, and for such other equitable relief as the nature of the case and the interest of the policyholders, creditors and shareholders of the new stock insurer, or the public, may require.

    Sec. 198.  In any case where a person has acquired or is proposing to acquire any voting securities in violation of sections 174 to 202, inclusive, of this act or any regulation or order of the commissioner, the First Judicial District Court in and for Carson City may, upon the application of the commissioner or the new stock insurer, and on such notice as the court determines appropriate, seize or sequester any voting securities of the new stock insurer or an institution that owns a majority of the voting securities of the new stock insurer owned directly or indirectly by such a person and issue any order with respect thereto as the court determines appropriate to effectuate the provisions of sections 174 to 202, inclusive, of this act. Notwithstanding any other provision of law, for the purposes of sections 174 to 202, inclusive, of this act, the situs of the ownership of such securities shall be deemed to be in this state.

    Sec. 199.  A person who offers to acquire or acquires a security in violation of subsection 1 of section 196 of this act may be required by the commissioner, after notice and hearing, to pay an administrative penalty of $100 for each day that the person remains in violation, except that the aggregate penalty pursuant to this section may not exceed $10,000.

    Sec. 200.  Any director or officer of a person, or an agent of the person, who knowingly violates or assents to or permits any officer or agent of the person to violate the requirements of section 196 of this act may be required by the commissioner, after notice and hearing, to pay, in his individual capacity, an administrative penalty of not more than $5,000 per violation. In determining the amount of the penalty, the commissioner shall take into account the appropriateness of the penalty with respect to the gravity of the violation, the history of previous violations, and such other matters as the commissioner determines are required in the interest of justice.

    Sec. 201.  1.  If the commissioner has reason to believe that any person or any director, officer, employee or agent of the person is engaged in any conduct in violation of section 196 of this act, the commissioner may order the person to cease and desist immediately from engaging in any further such conduct. The order is permanent unless the person, not later than 20 days after receipt of the order, files a written request for a hearing with the commissioner.

    2.  If, after a hearing pursuant to subsection 1, the commissioner determines that such action is in the best interest of the policyholders, the creditors or the public, the commissioner may also order the person to void any contract entered into in violation of section 196 of this act.

    3.  An order of the commissioner pursuant to this section is a final decision in a contested case for the purpose of judicial review pursuant to chapter 233B of NRS.

    Sec. 202.  The commissioner may adopt such regulations and issue such orders as he determines are necessary to carry out the provisions of sections 174 to 202, inclusive, of this act.

    Sec. 203.  As used in sections 203 to 226, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 204 to 207, inclusive, of this act have the meanings ascribed to them in those sections.

    Sec. 204.  “Intermediate stock holding company” means a holding company of which at least a majority of the voting securities are owned by a mutual insurance holding company and which directly owns all the voting securities of a reorganized stock insurer.

    Sec. 205.  “Mutual insurance holding company” means a holding company based on a mutual plan which at all times owns a majority of the voting securities of a single intermediate stock holding company or, if no such intermediate stock holding company exists, which owns a majority of the voting securities of a reorganized stock insurer.

    Sec. 206.  “Reorganized stock insurer” means a stock insurer subsidiary that results from a reorganization of a domestic mutual insurer pursuant to sections 203 to 226, inclusive, of this act.

    Sec. 207.   “Voting securities” means securities of any class or any ownership interest having voting power for the election of directors, trustees or management, other than securities having voting power only because of the occurrence of a contingency.

    Sec. 208.  A domestic mutual insurer may, by complying with sections 203 to 226, inclusive, of this act and obtaining the approval of the commissioner, reorganize by:

    1.  Merging the membership interests of its policyholders into:

    (a) A mutual insurance holding company formed for the purpose of the reorganization; or

    (b) An existing mutual insurance holding company; and

    2.  Continuing the corporate existence of the mutual insurer as a stock insurer subsidiary of the mutual insurance holding company.

    Sec. 209.  A domestic mutual insurer shall file with the commissioner for review and approval a proposed plan of reorganization that has been approved by a vote of not less than two-thirds of the members of the board of directors of the domestic mutual insurer. The proposed plan of reorganization must be accompanied by a nonrefundable fee of $2,450. The plan of reorganization must include:

    1.  An analysis of the benefits and risks of the proposed reorganization, including, without limitation, the rationale and comparative benefits and risks of converting to a domestic stock insurer pursuant to sections 174 to 202, inclusive of this act;

    2.  A statement of how the plan is fair and equitable to the policyholders;

    3.  Information sufficient to demonstrate that the financial condition of the mutual insurer will not be diminished upon reorganization;

    4.  Provisions to ensure immediate membership in the mutual insurance holding company for all existing policyholders of the mutual insurer;

    5.  Provisions for membership interests for future policyholders of the reorganized stock insurer;

    6.  Provisions to ensure that, in the event of proceedings for rehabilitation or liquidation involving a stock insurer subsidiary of the mutual insurance holding company, the assets of the mutual insurance holding company will be available to satisfy the obligations of the stock insurer subsidiary to policyholders;

    7.  Provisions for the periodic distribution of the accumulated earnings of the mutual insurance holding company;

    8.  Certified copies of the proposed articles of incorporation and bylaws of the mutual insurance holding company, intermediate stock holding company and reorganized stock insurer, or proposed amendments thereto as necessary to carry out the reorganization;

    9.  A certification that the plan of reorganization has been duly adopted by a vote of not less than two-thirds of the members of the board of directors of the mutual insurer;

    10.  A certification adopted by not less than two-thirds of the members of the board of directors of the mutual insurer that the plan of reorganization is fair and equitable to the policyholders;

    11.  The names, addresses and occupations of all persons who are or have been selected to become directors or officers of the mutual insurance holding company;

    12.  A description of the nature and content of the annual report and financial statement to be sent by the mutual insurance holding company to each policyholder;

    13.  The number of members of the board of directors of the mutual insurance holding company who are required to be policyholders;

    14.  A description of any plans for the initial sale of stock of the intermediate stock holding company or reorganized stock insurer;

    15.  A form of the proposed notice to be mailed by the mutual insurer to its policyholders as required by section 212 of this act; and

    16.  Such additional information as the commissioner may by regulation prescribe as necessary or appropriate for the protection of policyholders and security holders of the domestic mutual insurer or for the protection of the public interest.

    Sec. 210.  Unless the commissioner, for good cause, extends the time, the commissioner shall conduct a public hearing regarding a proposed plan of reorganization not later than 120 days after the date on which the completed proposed plan of reorganization is filed pursuant to section 209 of this act. Any interested person may appear or otherwise be heard at the public hearing. The commissioner may continue the public hearing for a reasonable period, not to exceed 60 days. The mutual insurer shall give such reasonable notice of the public hearing as the commissioner requires.

    Sec. 211.  1.  The commissioner shall issue an order approving or disapproving a proposed plan of reorganization not later than 30 days after the public hearing required by section 210 of this act.

    2.  The commissioner shall not approve a proposed plan of reorganization unless he finds that the:

    (a) Plan of reorganization is fair and equitable to the policyholders;

    (b) Plan of reorganization does not deprive the policyholders of their property rights or due process of law;

    (c) Reorganized stock insurer meets the minimum requirements for a certificate of authority to transact the business of insurance in this state; and

    (d) Continued operation of the reorganized stock insurer is not hazardous to future policyholders and the public.

    3.  If the commissioner approves a plan of reorganization, the commissioner shall publish notification of the issuance of the order in a newspaper of general circulation in Carson City and in the county of domicile of the mutual insurer if different from Carson City.

    4.  If the commissioner approves a plan of reorganization, the approval expires if the reorganization is not completed within 180 days after the date of approval, unless the period is extended by the commissioner for good cause.

    5.  If the commissioner disapproves a plan of reorganization, the commissioner shall issue an order setting forth specific findings for the disapproval.

    Sec. 212.  1.  Within 45 days after the date of the commissioner’s approval of a plan of reorganization pursuant to section 211 of this act, unless extended by the commissioner for good cause, the mutual insurer shall hold a meeting of its policyholders at a reasonable time and place to vote upon the plan of reorganization. The mutual insurer shall give notice not less than 30 days before the meeting, by first-class mail to the last known address of each policyholder, that the plan of reorganization will be voted upon at a regular or special meeting of the policyholders. The notice must include a brief description of the plan of reorganization, a statement that the commissioner has approved the plan of reorganization, and a written proxy permitting the policyholder to vote for or against the plan of reorganization. For the purposes of notice and voting, the policyholder of a policy of group insurance is the entity to which the group policy is issued and not any person covered under the group policy. A plan of reorganization is approved only if not less than two-thirds of the policyholders voting in person or by proxy at the meeting vote in favor of the plan of reorganization. Each policyholder is entitled to only one vote regardless of the number of policies owned by the policyholder. The commissioner shall supervise and direct the conducting of the vote on the plan of reorganization as necessary to ensure that the vote is fair and consistent with the requirements of this section.

    2.  If a mutual insurer complies substantially and in good faith with the notice requirements of this section, the mutual insurer’s failure to give any policyholder the required notice does not impair the validity of any action taken pursuant to this section.

    3.  If the meeting of policyholders to vote upon the plan of reorganization is held coincident with the mutual insurer’s annual meeting of policyholders, only one combined notice of meeting is required.

    4.  The form of any proxy must be filed with and approved by the commissioner.

    5.  For the purposes of notice and voting, a person is not a policyholder unless he was a policyholder of the mutual insurer on the date on which the plan of reorganization was initially approved by the board of directors of the mutual insurer.

    Sec. 213.  A mutual insurer may, by not less than a two-thirds vote of the members of its board of directors and with the approval of the commissioner,


abandon a plan of reorganization at any time before the issuance of the certificate of authority by the commissioner pursuant to section 214 of this act. Upon abandonment, all rights and obligations arising out of the plan of reorganization terminate and the mutual insurer shall continue to conduct its business as a domestic mutual insurer as though no plan of reorganization had ever been adopted.

    Sec. 214.  1.  The commissioner shall issue a certificate of authority to a reorganized stock insurer when the mutual insurer files with the commissioner a:

    (a) Certificate stating that all the conditions set forth in the plan of reorganization have been satisfied, so long as the board of directors of the mutual insurer has not abandoned the plan of reorganization pursuant to section 213 this act.

    (b) Certificate from the mutual insurer setting forth the vote and certifying that the plan of reorganization was approved by not less than two-thirds of the policyholders voting in person or by proxy on the plan of reorganization.

    2.  The reorganization is effective upon the issuance of a certificate of authority by the commissioner.

    3.  Upon issuance of the certificate of authority, the articles of incorporation of the mutual insurer shall be deemed to be amended in compliance with NRS 692B.030.

    Sec. 215.  Any person aggrieved by a final order of the commissioner issued pursuant to the provisions of sections 203 to 226, inclusive, of this act may petition for judicial review in the manner provided by chapter 233B of NRS.

    Sec. 216.  In determining whether a plan of reorganization meets the requirements of the provisions of sections 203 to 226, inclusive, of this act, or with regard to any other matters relating to the development of a plan of reorganization, the commissioner may engage the services of experts. All reasonable costs related to the review of a plan of reorganization or such other matters, including those costs attributable to the use of experts, must be paid by the mutual insurer filing the application or initiating discussions with the commissioner about such matters.

    Sec. 217.  1.  Except as otherwise provided in subsection 2, all information and documents obtained by or disclosed to the commissioner or any other person in the course of preparing, filing and processing an application to reorganize pursuant to section 209 of this act, other than information and documents distributed to policyholders in connection with the meeting of policyholders pursuant to section 212 of this act or filed or submitted as evidence in connection with the public hearing pursuant to section 210 of this act, are confidential and not subject to subpoena, and must not be made public by the commissioner, the National Association of Insurance Commissioners or any other person, except to insurance


departments of other states, without the prior written consent of the insurer to which such information and documents pertain.

    2.  If the commissioner, after giving the insurer and its affiliates who would be affected notice and opportunity to be heard, determines that the interests of policyholders, shareholders or the public will be best served by the publication of such information and documents, the commissioner may publish all or any part thereof in such a manner as he determines appropriate.

    Sec. 218.  The corporate existence of a mutual insurer reorganizing pursuant to sections 203 to 226, inclusive, of this act does not terminate, and the reorganized stock insurer shall be deemed to be a continuation of the mutual insurer and to have been organized on the date on which the mutual insurer was originally organized.

    Sec. 219.  1.  All the initial shares of the capital stock of a reorganized stock insurer must be issued to the mutual insurance holding company or to a single intermediate stock holding company.

    2.  Policyholders of a domestic mutual insurer that has been reorganized are members of the mutual insurance holding company and their voting rights must be determined in accordance with the articles of incorporation and bylaws of the mutual insurance holding company. The mutual insurance holding company shall provide its members with the same membership rights as were provided to policyholders of the mutual insurer immediately before reorganization. The reorganization must not reduce, limit or otherwise affect the number or identity of the policyholders who may become members of the mutual insurance holding company or secure for managerial personnel any unfair advantage through or connected with the reorganization.

    3.  A mutual insurance holding company or an intermediate stock holding company formed pursuant to sections 203 to 226, inclusive, of this act:

    (a) Must not be authorized to transact the business of insurance;

    (b) Is subject to the jurisdiction of the commissioner, who shall ensure that policyholder interests are protected; and

    (c) Shall be deemed to be an insurer for the purposes of chapter 696B of NRS.

    4.  An intermediate stock holding company formed pursuant to sections 203 to 226, inclusive, of this act shall be deemed to be a mutual insurance holding company subject to the provisions of sections 174 to 202, inclusive, of this act.

    5.  A mutual insurance holding company formed pursuant to sections 203 to 226, inclusive, of this act:

    (a) Shall not issue stock.

    (b) Shall invest in insurers not less than 50 percent of its net worth as determined by generally accepted accounting practices.

    6.  The aggregate pledges and encumbrances of the assets of a mutual insurance holding company must not affect more than 49 percent of the mutual insurance holding company’s stock in an intermediate stock holding company or a reorganized stock insurer.

    7.  If any proceeding under chapter 696B of NRS is brought against a reorganized stock insurer, the mutual insurance holding company and intermediate stock holding company must be named parties to the proceeding. All the assets of the mutual insurance holding company and the intermediate stock holding company shall be deemed assets of the estate of the reorganized stock insurer to the extent necessary to satisfy claims against the reorganized stock insurer.

    8.  No distribution to members of a mutual insurance holding company may occur without the prior written approval of the commissioner. The commissioner may give such approval only if he is satisfied that the distribution is fair and equitable to policyholders as members of the mutual insurance holding company.

    9.  No solicitation for the sale of the stock of an intermediate stock holding company or a reorganized stock insurer may be made without the prior written approval of the commissioner.

    10.  A mutual insurance holding company or an intermediate stock holding company may not voluntarily dissolve without the approval of the commissioner.

    Sec. 220.  Nothing contained in sections 203 to 226, inclusive, of this act prohibits a mutual insurance holding company from converting to a domestic stock insurance company pursuant to sections 174 to 202, inclusive, of this act.

    Sec. 221.  A membership interest in a mutual insurance holding company does not constitute a security under the laws of this state.

    Sec. 222.  1.  No director, officer, employee or agent of the mutual insurer, or any other person, may receive any fee, commission or other valuable consideration, other than his usual regular salary and compensation, for aiding, promoting or assisting in a plan of reorganization except as set forth in the plan of reorganization approved by the commissioner.

    2.  Subsection 1 does not prohibit a management incentive compensation program that is contained in the plan of reorganization and approved by the commissioner to be adopted upon reorganization to the reorganized stock insurer or prohibit such a program to be adopted later by the reorganized stock insurer.

    3.  Subsection 1 does not prohibit the payment of reasonable fees and compensation to attorneys, accountants, actuaries and investment bankers for services performed in the independent practice of their professions if the person is also a member of the board of directors of the mutual insurer.

    Sec. 223.  1.  A mutual insurance holding company shall file with the commissioner, by March 1 of each year, an annual statement consisting of an income statement, balance sheet and cash flows prepared in accordance with generally accepted accounting practices and a confidential statement disclosing any intention to pledge, borrow against, alienate, hypothecate or in any way encumber the assets of the mutual insurance holding company.

    2.  A mutual insurance holding company shall, on or before June 1 of each year, file with the commissioner in a form approved by the commissioner a financial statement as of December 31 of the preceding calendar year that is certified by a certified public accountant.

    Sec. 224.  The commissioner may order the production of any records, books or other information and papers in the possession of a mutual insurance holding company or its affiliates as is reasonably necessary to ascertain the financial condition of the reorganized stock insurer or to determine compliance with this Title.

    Sec. 225.  Whenever it appears to the commissioner that any person or any director, officer, employee or agent of the person has committed or is about to commit a violation of any provision of sections 203 to 226, inclusive, of this act or of any regulation or order of the commissioner relating thereto, the commissioner may apply to the First Judicial District Court in and for Carson City for an order enjoining the person, director, officer, employee or agent from violating or continuing to violate any provision of sections 203 to 226, inclusive, of this act or any such regulation or order, and for such other equitable relief as the nature of the case and the interest of the policyholders, creditors and shareholders of the insurer, or the public, may require.

    Sec. 226.  The commissioner may adopt such regulations and issue such orders as he determines are necessary to carry out the provisions of sections 203 to 226, inclusive, of this act.”.

    Amend the bill as a whole by deleting sec. 176 and renumbering sections 177 through 193 as sections 229 through 245.

    Amend sec. 191, page 83, line 16, by deleting “692C.420” and inserting “693A.360”.

    Amend sec. 193, page 83, by deleting lines 19 through 21 and inserting:

    “Sec. 245.  1.  This section and section 242 of this act become effective upon passage and approval.

    2.  Sections 1 to 241, inclusive, 243 and 244 of this act become”.

    Amend the leadlines of repealed sections by deleting the leadline of NRS 692C.420.

    Amend the leadlines of repealed sections by adding the leadline of NRS 693A.360.

    Amend the title of the bill to read as follows:

“AN ACT relating to insurance; providing for the regulation of the business of viatical settlements; requiring the commissioner of insurance to adopt regulations governing the use of electronic records and signatures; temporarily authorizing the adoption of regulations to enforce federal law concerning a bill of rights for patients; limiting the disclosure of certain information concerning consumers; providing for the conversion of domestic mutual insurers into domestic stock insurers; providing for the reorganization of domestic mutual insurers into mutual insurance holding companies; making various other changes concerning the regulation of insurance; providing penalties; and providing other matters properly relating thereto.”.

    Assemblyman Dini moved the adoption of the amendment.

    Remarks by Assemblyman Dini.

    Amendment adopted.

    Assemblyman Dini moved that upon return from the printer Assembly Bill No. 618 be re-referred to the Committee on Ways and Means.

    Motion carried.

    Bill ordered reprinted, engrossed and to the Committee on Ways and Means.

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblyman Bache moved that Assembly Bill No. 537 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblyman Bache.

    Motion carried.

    Assemblyman Arberry moved that Assembly Bill No. 554 be taken from the Chief Clerk’s desk and re-referred to the Committee on Ways and Means.

    Remarks by Assemblyman Arberry.

    Motion carried.

    Assemblyman Arberry moved that Assembly Bill No. 657 be taken from the Chief Clerk’s desk and placed on the General File.

    Remarks by Assemblyman Arberry.

    Motion carried.

general file and third reading

    Assembly Bill No. 550.

    Bill read third time.

    Remarks by Assemblyman Anderson.

    Roll call on Assembly Bill No. 550:

    Yeas—41.

    Nays—None.

    Excused—Freeman.

    Assembly Bill No. 550 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 447.

    Bill read third time.

    Remarks by Assemblyman Buckley.

    Roll call on Assembly Bill No. 447:

    Yeas—38.

    Nays—None.

    Not    Voting—Arberry, Brower, Marvel—3.

    Excused—Freeman.

    Assembly Bill No. 447 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 537.

    Bill read second time.

    The following amendment was proposed by Assemblyman Bache:

    Amendment No. 630.

    Amend sec. 2, page 2, by deleting lines 6 and 7.

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

    Amend the bill as a whole by deleting sec. 4 and renumbering sections 5 through 8 as sections 4 through 7.

    Amend the title of the bill to read as follows:

“AN ACT relating to local governments; authorizing the construction and maintenance of benches and shelters for passengers of public mass transportation on an exclusive basis by the governing body or by franchise within an unincorporated town; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Authorizes construction and maintenance of benches and shelters for passengers of public mass transportation on exclusive basis by governing body or by franchise within unincorporated towns. (BDR 21‑829)”.

    Assemblyman Bache moved the adoption of the amendment.

    Remarks by Assemblymen Bache and Nolan.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 657.

    Bill read third time.

    Remarks by Assemblymen Goldwater and Collins.

    Roll call on Assembly Bill No. 657:

    Yeas—24.

    Nays—Angle, Bache, Buckley, Collins, de Braga, Gibbons, Giunchigliani, Gustavson, Leslie, Mortenson, Ohrenschall, Parks, Parnell, Perkins, Smith—15.

    Not Voting—Brower, Williams—2.

    Excused—Freeman.

    Assembly Bill No. 657 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Mr. Speaker announced if there were no objections, the Assembly would recess subject to the call of the Chair.

    Assembly in recess at 6:04 p.m.


ASSEMBLY IN SESSION

    At 6:40 p.m.

    Mr. Speaker presiding.

    Quorum present.

    Assemblyman Anderson moved that Assembly Bill No. 578 be taken from the Chief Clerk's desk and placed on the General File.

    Remarks by Assemblyman Anderson.

    Motion carried.

    Assemblywoman Giunchigliani moved that Assembly Bill No. 483 be taken from the Chief Clerk's desk and placed at the top of the General File.

    Remarks by Assemblywoman Giunchigliani.

    Motion carried.

    Assemblywoman Chowning moved that all rules be suspended and that Assembly Bill No. 245 be declared an emergency measure under the Constitution and placed on third reading final passage.

    Motion carried unanimously.

REPORTS OF COMMITTEES

Mr. Speaker:

    Your Committee on Commerce and Labor, to which was referred Assembly Bill No. 324, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Joseph E. Dini, Jr., Chairman

Mr. Speaker:

    Your Committee on Government Affairs, to which was referred Assembly Bill No. 479, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Douglas A. Bache, Chairman

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblywoman Buckley moved that Assembly Bill Nos. 324 and 479 be placed on the Second Reading File.
    Motion carried.

SECOND READING AND AMENDMENT

    Assembly Bill No. 324.

    Bill read second time.

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

    Amendment No. 519.

    Amend section 1, page 1, line 2, by deleting “14,” and inserting “14.5,”.

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

    “Sec. 2.  “Accredited investor” means an investor:

    1.  Who, on the date of an act or transaction, meets the criteria to be an accredited investor pursuant to the provisions of Regulation D of the Securities and Exchange Commission, 17 C.F.R. §§ 230.501 to 230.508, inclusive; or

    2.  Whom, on the date of an act or transaction, a mortgage broker or mortgage agent reasonably believes meets the criteria to be an accredited investor pursuant to the provisions of Regulation D of the Securities and Exchange Commission, 17 C.F.R. §§ 230.501 to 230.508, inclusive.

    Sec. 3.  “Executive director” means the executive director of the commission.”.

    Amend sec. 10, page 3, by deleting lines 46 and 47 and inserting:

    “2.  Any other authority conferred on the commission by this chapter and any other specific statute relating to the”.

    Amend sec. 11, page 4, line 1, by deleting “commission” and inserting:

director of the department of business and industry”.

    Amend sec. 11, page 4, line 6, by deleting “commission.” and inserting:

director of the department of business and industry.”.

    Amend sec. 11, page 4, line 18, by deleting “commission;” and inserting:

director of the department of business and industry;”.

    Amend sec. 11, page 4, by deleting lines 25 through 30 and inserting:

    “(e) Shall perform the duties set forth in this chapter and the duties delegated to the executive director by the commission pursuant to section 10 of this act; and

    (f) Shall perform any lawful act that the executive director considers necessary or desirable to carry out the purposes and provisions of this chapter and any other specific statute relating to the”.

    Amend the bill as a whole by adding a new section designated sec. 14.5, following sec. 14, to read as follows:

    “Sec. 14.5.  The commission shall adopt regulations that set forth the procedures that a mortgage broker or mortgage agent must follow to determine whether an investor is an accredited investor.”.

    Amend sec. 27, page 10, by deleting lines 3 through 5 and inserting:

the provisions of this chapter.”.

    Amend sec. 27, page 10, between lines 10 and 11, by inserting:

    “3.  If a licensee does not hold a license as a mortgage company pursuant to chapter 645E of NRS, the licensee is subject to supervision, regulation and discipline by the commission for all activities that the licensee engages in pursuant to this chapter and chapter 645E of NRS.

    4.  If a licensee holds a license as a mortgage company pursuant to chapter 645E of NRS, the licensee is subject to supervision, regulation and discipline by:

    (a) The commission for all activities that the licensee engages in pursuant to this chapter and chapter 645E of NRS in his capacity as a mortgage broker; and

    (b) The commissioner of financial institutions for all activities that the licensee engages in pursuant to chapter 645E of NRS in his capacity as a mortgage company.”.

    Amend sec. 31, page 13, line 17, by deleting:

brokers and mortgage companies,” and inserting “brokers,”.

    Amend sec. 31, page 13, by deleting line 20 and inserting:

set forth in this section.”.

    Amend sec. 39, page 20, between lines 43 and 44, by inserting:

    “10.  The provisions of this section do not apply to any act or transaction with or on behalf of an accredited investor, except that, if requested by an accredited investor or ordered by the commission, a mortgage broker or mortgage agent shall give an accredited investor any information or form that is given to other investors pursuant to this section.”.

    Amend sec. 43, page 23, line 26, by deleting “subsection 4,” and inserting “this section,”.

    Amend sec. 43, page 23, by deleting lines 39 through 41 and inserting:

    “5.  The provisions of this section do not [limit] :

    (a) Apply to any act or transaction with or on behalf of an accredited investor pursuant to a power of attorney.

    (b) Limit the right of an investor to include provisions in a power of attorney that are more restrictive than the provisions set forth in subsection 1.”.

    Amend sec. 51, page 30, by deleting lines 23 through 25 and inserting:

    “(c) Does not conduct his business in accordance with law , [or] has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the [commissioner;] commission or has violated any provision of chapter 645E of NRS while engaged in activities authorized by that chapter in his capacity as a mortgage broker;”.

    Amend the bill as a whole by deleting sections 62 through 87 and inserting:

    “Secs. 62-87.  (Deleted by amendment.)”.

    Amend the bill as a whole by adding a new section designated sec. 87.5, following sec. 87, to read as follows:

    “Sec. 87.5.  NRS 645E.230 is hereby amended to read as follows:

    645E.230  1.  A license entitles a licensee to engage only in the activities authorized by this chapter.

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

    (a) Holding a license as a mortgage broker pursuant to chapter 645B of NRS; or

    (b) Conducting the business of a mortgage company and the business of a mortgage broker in the same office or place of business.

    3.  If a licensee does not hold a license as a mortgage broker pursuant to chapter 645B of NRS, the licensee is subject to supervision, regulation and discipline by the commissioner for all activities that the licensee engages in pursuant to this chapter.

    4.  If a licensee holds a license as a mortgage broker pursuant to chapter 645B of NRS, the licensee is subject to supervision, regulation and discipline by:

    (a) The commissioner for all activities that the licensee engages in pursuant to this chapter in his capacity as a mortgage company; and

    (b) The mortgage industry commission for all activities that the licensee engages in pursuant this chapter and chapter 645B of NRS in his capacity as a mortgage broker.”.

    Amend sec. 88, page 49, by deleting lines 22 and 23 and inserting:

“certificate of amendment is approved by the commissioner [who] or commission that will supervise the business of the corporation.”.

    Amend sec. 91, page 52, line 35, by deleting “chairman” and inserting “executive director”.

    Amend sec. 93, page 54, by deleting lines 23 through 46 and inserting:

    “Sec. 93.  Section 139 of chapter 646, Statutes of Nevada 1999, at page 3816, as amended by section 139 of Senate Bill No. 29 of this session, is hereby amended to read as follows:

    Sec. 139.  1.  This section and section 130.5 of this act become effective upon passage and approval for the purpose of adopting any regulations necessary to carry out the provisions of this act, and on September 30, 1999, for all other purposes.

    2.  Sections 1 to 101, inclusive, 103, 105 to 117, inclusive, 119 to 130, inclusive, and 131 to 138, inclusive, of this act become effective upon passage and approval for the purpose of adopting any regulations necessary to carry out the provisions of this act, and on October 1, 1999, for all other purposes.

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

    4.  Sections 15 and 33 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

    (a) Have failed to comply with a subpoena or warrant relating to a procedure to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or

    (b) Are in arrears in the payment for the support of one or more children,

are repealed by the Congress of the United States.

    [5.  Section 78.5 of this act expires by limitation on October 1, 2001.]”.

    Amend the title of the bill by deleting the fourth line and inserting:

“brokers and mortgage agents from the commissioner of”.

    Assemblyman Dini moved the adoption of the amendment.


    Remarks by Assemblyman Dini.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 479.

    Bill read second time.

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

    Amendment No. 465.

    Amend section 1, page 2, by deleting lines 3 through 23 and inserting:

    “5.  As used in this section, “public office” means any office to which a public body appoints a person to serve other than the staff of the public body.”.

    Assemblyman Bache moved the adoption of the amendment No. 465.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    The following amendment was proposed by Assemblyman Bache:

    Amendment No. 629.

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

    “Sec. 2.  1.  There is hereby appropriated from the state general fund to the office of the attorney general the sum of $50,000 to provide statewide training to members of public bodies regarding the provisions of chapter 241 of NRS.

    2.  Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.”.

    Amend the title of the bill, third line, after “body;” by inserting:

“making an appropriation;”.

    Assemblyman Bache moved the adoption of the amendment No. 629.

    Remarks by Assemblyman Bache.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

general file and third reading

    Assembly Bill No. 483.

    Bill read third time.

    The following amendment was proposed by the Assemblymen Giunchigliani, Beers and Bache:

    Amendment No. 596.

    Amend section 1, page 1, by deleting line 3 and inserting:

    “1.  Each report of”.

    Amend section 1, page 2, line 5, after “candidate” by inserting:

and of disposals made by the candidate pursuant to NRS 294A.160”.

    Amend section 1, page 2, line 11, after “candidate” by inserting:

and of disposals made by the candidate pursuant to NRS 294A.160”.

    Amend section 1, page 2, line 37, after “incurred” by inserting:

and each amount disposed of pursuant to nrs 294a.160”.

    Amend section 1, page 3, line 7, by deleting “received” and inserting:

received, each amount in excess of $100 that is disposed of pursuant to NRS 294A.160 as the amount is disposed of”.

    Amend sec. 6, page 11, line 22, after “incurs” by inserting:

and each amount in excess of $100 that he disposes of pursuant to NRS 294A.160”.

    Amend sec. 6, page 11, by deleting lines 25 through 27 and inserting:

apply to the candidate:

    (a) Beginning the year of the general election for that office through the year immediately preceding the next general election for that office; and

    (b) Each year immediately succeeding a calendar year during which the candidate disposes of contributions pursuant to NRS 294A.160.”.

    Amend sec. 11, page 20, by deleting lines 27 through 29 and inserting:

subsection apply to the candidate:

    (a) Beginning the year of the general city election for that office through the year immediately preceding the next general city election for that office; and

    (b) Each year immediately succeeding a calendar year during which the candidate disposes of contributions pursuant to NRS 294A.160.”.

    Amend the bill as a whole by adding new sections designated sections 13 through 15 and the text of the repealed section, following sec. 12, to read as follows:

    “Sec. 13.  NRS 294A.390 is hereby amended to read as follows:

    294A.390  The officer from whom a candidate or entity requests a form for:

    1.  A declaration of candidacy;

    2.  An acceptance of candidacy;

    3.  The registration of a committee for political action pursuant to NRS 294A.230 or a committee for the recall of a public officer pursuant to NRS 294A.250; or

    4.  The reporting of campaign contributions, expenses or expenditures pursuant to NRS 294A.120, 294A.140, 294A.150, [294A.180,] 294A.200, 294A.210, 294A.220, 294A.270, 294A.280 or 294A.360,

 

 
shall furnish the candidate with the necessary forms for reporting and copies of the regulations adopted by the secretary of state pursuant to this chapter. An explanation of the applicable provisions of NRS 294A.100, 294A.120, 294A.140, 294A.150, [294A.180,] 294A.200, 294A.210, 294A.220, 294A.270, 294A.280 or 294A.360 relating to the making, accepting or reporting of campaign contributions, expenses or expenditures and the penalties for a violation of those provisions as set forth in NRS 294A.100 or 294A.420 must be printed on the forms. The candidate or entity shall acknowledge receipt of the material.

    Sec. 14.  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.

    Sec. 15.  NRS 294A.180 is hereby repealed.

    294A.180  Candidate or elected public officer to file report relating to disposition of unspent contributions; procedure for reporting.

    294A.180  1.  Each candidate for a state, district, county, city or township office who is not elected to that office shall, not later than the 15th day of the second month after his defeat, file a report with the secretary of state stating the amount of contributions which he received for that campaign but did not spend and the disposition of those unspent contributions.

    2.  Each public officer who is elected to a state, district, county, city or township office shall file a report:

    (a) Not later than the 15th day of the second month after his election, stating the amount of campaign contributions which he received but did not spend and the amount, if any, of those unspent contributions disposed of pursuant to subsection 2 of NRS 294A.160 as of the last day of the first month after his election;

    (b) Not later than January 15th of each year of his term beginning the year after he filed the report required by paragraph (a), stating the amount, if any, of those unspent contributions disposed of pursuant to NRS 294A.160 during the period from the last date covered by his last report through December 31 of the immediately preceding year and the manner in which they were disposed of; and

    (c) Not later than the 15th day of the second month after he no longer holds that office, stating the amount and disposition of any remaining unspent contributions.

    3.  The reports required by subsections 1 and 2 must be submitted on a form designed and provided by the secretary of state and signed by the candidate or public officer under penalty of perjury.

    4.  A public officer filing a report pursuant to subsection 2:

    (a) Shall file the report with the officer with whom he filed his declaration of candidacy or acceptance of candidacy.

    (b) May file the report by certified mail. If certified mail is used, the date of mailing shall be deemed the date of filing.

    5.  A county clerk who receives from a legislative or judicial officer, other than a justice of the peace or municipal judge, a report pursuant to subsection 4 shall file a copy of the report with the secretary of state within 10 working days after he receives the report.”.

    Assemblywoman Giunchigliani moved the adoption of the amendment.

    Remarks by Assemblywoman Giunchigliani.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Assembly Bill No. 578.

    Bill read second time.

    The following amendment was proposed by Assemblyman Anderson:

    Amendment No. 621.

    Amend the bill as a whole by deleting sections 1 through 15 and adding new sections designated sections 1 through 25, following the enacting clause, to read as follows:

    “Section 1.  Chapter 463 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 9, inclusive, of this act.

    Sec. 2.  1.  “Interactive gaming” means the conduct of gambling games through the use of communications technology that allows a person outside or within an establishment, utilizing money, checks, electronic checks, electronic transfers of money, credit cards, debit cards or any other instrumentality, to transmit to a computer within the establishment information to assist in the placing of a bet or wager and corresponding information related to the display of the game, game outcomes or other similar information.

    2.  As used in this section, “communications technology” means any method used and the components employed by an establishment to facilitate the transmission of information, including, without limitation, transmission and reception by systems based on wire, cable, radio, microwave, light, optics or computer data networks, including, without limitation, the Internet and intranets.

    Sec. 3.  1.  Except as otherwise provided in subsections 2 and 3, the commission may, with the advice and assistance of the board, adopt regulations governing the licensing and operation of interactive gaming.

    2.  The commission may not adopt regulations governing the licensing and operation of interactive gaming until the commission first determines that:

    (a) Interactive gaming can be operated in compliance with all applicable laws;

    (b) Interactive gaming systems are secure and reliable, and provide reasonable assurance that players will be of lawful age and communicating only from jurisdictions where it is lawful to make such communications; and

    (c) Adoption of such regulations is consistent with the public policy of the state to foster the stability and success of gaming.

    3.  The regulations adopted by the commission pursuant to this section must:

    (a) Establish the investigation fees for:

        (1) A license to operate interactive gaming; and

        (2) A license for a manufacturer of interactive gaming components.

    (b) Provide that:

        (1) A person must hold a license for a manufacturer of interactive gaming components to supply or provide any component part of an interactive gaming system, including, without limitation, any piece of proprietary software or hardware; and

        (2) A manufacturer of interactive gaming components must be specifically licensed as a manufacturer of a gaming device for interactive gaming, manufacturer of equipment associated with a gaming device for interactive gaming or manufacturer of peripheral equipment related to a gaming device for interactive gaming.

    (c) Set forth standards for the suitability of a person to be licensed as a manufacturer of interactive gaming components that are as stringent as the standards for a nonrestricted license.

    (d) Provide that gross revenue received by an establishment from the operation of interactive gaming is subject to the same license fee provisions of NRS 463.370 as the games and gaming devices of the establishment.

    (e) Define “interactive gaming system,” “manufacturer of a gaming device for interactive gaming,” “manufacturer of equipment associated with a gaming device for interactive gaming,” “manufacturer of interactive gaming components,” “manufacturer of peripheral equipment related to a gaming device for interactive gaming” and “operate interactive gaming” as the terms are used in this chapter.

    4.  The commission shall not approve a license for an establishment to operate interactive gaming unless:

    (a) In a county whose population is 400,000 or more, the establishment is a resort hotel.

    (b) In a county whose population is more than 100,000 but less than 400,000, the establishment is a resort hotel or the establishment:

        (1) Holds a nonrestricted license for the operation of games and gaming devices;

        (2) Has more than 120 rooms available for sleeping accommodations in the same county;

        (3) Has at least one bar with permanent seating capacity for more than 30 patrons that serves alcoholic beverages sold by the drink for consumption on the premises;

        (4) Has at least one restaurant with permanent seating capacity for more than 60 patrons that is open to the public 24 hours each day and 7 days each week; and

        (5) Has a gaming area that is at least 18,000 square feet in area with at least 1,600 slot machines, 40 table games, and a sports book and race pool.

    (c) In all other counties, the establishment is a resort hotel or the establishment:

        (1) Has held a nonrestricted license for the operation of games and gaming devices for at least 10 years before the date of its application for a license to operate interactive gaming;

        (2) Meets the definition of group 1 licensee as set forth in the regulations of the board on the date of its application for a license to operate interactive gaming; and

        (3) Operates either:

            (I) More than 100 rooms for sleeping accommodations in connection therewith; or

            (II) More than 135 gaming devices in connection therewith.

    5.  It is unlawful for any person, either as owner, lessee or employee, whether for hire or not, either solely or in conjunction with others, to operate interactive gaming:

    (a) Until the commission adopts regulations pursuant to this section; and

    (b) Unless the person first procures, and thereafter maintains in effect, all appropriate licenses as required by the regulations adopted by the commission pursuant to this section.

    6.  A person who violates subsection 5 is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years or by a fine of not more than $50,000, or both.

    Sec. 4.  A debt incurred by a patron for play at an interactive gaming system of an establishment licensed to operate interactive gaming is valid and may be enforced by legal process.

    Sec. 5.  1.  An application for a license for an establishment to operate interactive gaming or for a manufacturer of a gaming device for interactive gaming, manufacturer of equipment associated with a gaming device for interactive gaming or manufacturer of peripheral equipment related to a gaming device for interactive gaming:

    (a) Must be accompanied by a nonrefundable application fee in the amount set forth in subsection 2 when the application is filed with the board.

    (b) May be filed with the board, on a form approved by the board:

        (1) Not later than 90 days after July 1, 2001; or

        (2) Not earlier than 181 days after the commission issues the first license for an establishment to operate interactive gaming pursuant to this chapter.

    2.  The nonrefundable application fees for the licenses described in subsection 1 are:

    (a) For a license for an establishment to operate interactive gaming, $100,000.

    (b) For a license for a manufacturer of a gaming device for interactive gaming, $50,000.

    (c) For a license for a manufacturer of equipment associated with a gaming device for interactive gaming, $25,000.

    (d) For a license for a manufacturer of peripheral equipment related to a gaming device for interactive gaming, $10,000.

    3.  The board shall not accept an application for a license described in subsection 1 filed on any date other than a date described in paragraph (b) of subsection 1.

    Sec. 6.  1.  Before issuing a license for an establishment to operate interactive gaming, the commission shall charge and collect from the establishment a license fee of $500,000.

    2.  Each license for an establishment to operate interactive gaming must be issued for a 2-year period beginning on January 1 of the first year and ending on December 31 of the second year.

    3.  Notwithstanding the provisions of subsections 1 and 2 to the contrary, a license for an establishment to operate interactive gaming may be issued after January 1 of a calendar year for a period beginning on the date of issuance of the license and ending on the second December 31 following the date of issuance of the license. Before issuing a license pursuant to this subsection, the commission shall charge and collect from the establishment a license fee of $500,000 prorated by 1/24 for each full month between January 1 of the calendar year and the date of issuance of the license.

    4.  Before renewing a license issued pursuant to this section, but in no case later than the second December 31 after the license was issued or previously renewed, the commission shall charge and collect a renewal fee of $250,000 for the renewal of the license for the immediately following 1-year period.

    Sec. 7.  The operation of interactive gaming is exempt from the fees and taxes imposed pursuant to NRS 463.375, 463.380, 463.383 and 463.385.

    Sec. 8.  1.  Before issuing a license for a manufacturer of a gaming device for interactive gaming, manufacturer of equipment associated with a gaming device for interactive gaming or manufacturer of peripheral equipment related to a gaming device for interactive gaming, the commission shall charge and collect a license fee of:

    (a) Two hundred and fifty thousand dollars for a license for a manufacturer of a gaming device for interactive gaming;

    (b) One hundred thousand dollars for a license for a manufacturer of equipment associated with a gaming device for interactive gaming; or

    (c) Fifty thousand dollars for a license for a manufacturer of peripheral equipment related to a gaming device for interactive gaming.

    2.  Each license issued pursuant to this section must be issued for a 1-year period that begins on the date the license is issued.

    3.  Before renewing a license issued pursuant to this section, but in no case later than 1 year after the license was issued or previously renewed, the commission shall charge and collect a renewal fee for the renewal of the license for the immediately following 1-year period. The renewal fee for a license for a:

    (a) Manufacturer of a gaming device for interactive gaming is an amount equal to the greater of:

        (1) Fifty thousand dollars; or

        (2) Fifty thousand dollars multiplied by the number of establishments licensed to operate interactive gaming that, on the date of renewal, have an agreement with the manufacturer of a gaming device for interactive gaming to share the revenue from an interactive gaming system.

    (b) Manufacturer of equipment associated with a gaming device for interactive gaming is $50,000.

    (c) Manufacturer of peripheral equipment related to a gaming device for interactive gaming is $25,000.

    Sec. 9.  1.  In addition to the fees set forth in section 8 of this act, a licensed manufacturer of a gaming device for interactive gaming shall pay a monthly license fee pursuant to this section for each agreement to share the revenue from an interactive gaming system into which the manufacturer of a gaming device for interactive gaming has entered with an establishment licensed to operate interactive gaming.

    2.  Each establishment licensed to operate interactive gaming with which the manufacturer of a gaming device for interactive gaming has an agreement to share the revenue from an interactive gaming system shall transmit the license fee required by subsection 1 on behalf of the manufacturer of a gaming device for interactive gaming based upon the amount of revenue to which the manufacturer of a gaming device for interactive gaming is entitled pursuant to the agreement, which must be 6.25 percent of the revenue from the previous calendar month.

    3.  For the purposes of subsection 2, the amount of revenue to which the manufacturer of a gaming device for interactive gaming is entitled pursuant to an agreement to share the revenue from an interactive gaming system:

    (a) Includes all revenue of the manufacturer of a gaming device for interactive gaming that is his share of the revenue from the interactive gaming system pursuant to the agreement; and

    (b) Does not include revenue that is the fixed purchase price for the sale of a component of the interactive gaming system.

    4.  Each establishment licensed to operate interactive gaming described in subsection 2 shall:

    (a) Withhold the amount necessary to pay the license fee from the share due the manufacturer of a gaming device for interactive gaming pursuant to the agreement; and

    (b) Transmit the license fee on behalf of the manufacturer of a gaming device for interactive gaming on the same date and in the same manner as the establishment pays license fees pursuant to NRS 463.370.

    5.  Revenue upon which a license fee is paid pursuant to this section is not subject to the provisions of NRS 463.370.

    Sec. 10.  NRS 463.013 is hereby amended to read as follows:

    463.013  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 463.0133 to 463.0197, inclusive, and section 2 of this act, have the meanings ascribed to them in those sections.

    Sec. 11.  NRS 463.0161 is hereby amended to read as follows:

    463.0161  1.  “Gross revenue” means the total of all:

    (a) Cash received as winnings;

    (b) Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and

    (c) Compensation received for conducting any game in which the licensee is not party to a wager,

 

 
less the total of all cash paid out as losses to patrons, those amounts paid to fund periodic payments and any other items made deductible as losses by NRS 463.3715. For the purposes of this section, cash or the value of noncash prizes awarded to patrons in a contest or tournament are not losses, except that losses in a contest or tournament conducted in conjunction with an inter-casino linked system may be deducted to the extent of the compensation received for the right to participate in that contest or tournament.

    2.  The term does not include:

    (a) Counterfeit facsimiles of money, chips, tokens, wagering instruments or wagering credits;

    (b) Coins of other countries which are received in gaming devices;

    (c) Any portion of the face value of any chip, token or other representative of value won by a licensee from a patron for which the licensee can demonstrate that it or its affiliate has not received cash;

    (d) Cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed;

    (e) Cash received as entry fees for contests or tournaments in which patrons compete for prizes, except for a contest or tournament conducted in conjunction with an inter-casino linked system;

    (f) Uncollected baccarat commissions; [or]

    (g) Cash provided by the licensee to a patron and subsequently won by the licensee, for which the licensee can demonstrate that it or its affiliate has not been reimbursed [.] ; or

    (h) Revenue from an interactive gaming system to which a manufacturer of a gaming device for interactive gaming is entitled pursuant to an agreement to share revenue between the manufacturer of a gaming device for interactive gaming and the licensee.

    3.  As used in this section, “baccarat commission” means:

    (a) A fee assessed by a licensee on cash paid out as a loss to a patron at baccarat to modify the odds of the game; or

    (b) A rate or fee charged by a licensee for the right to participate in a baccarat game.

    Sec. 12.  NRS 463.0172 is hereby amended to read as follows:

    463.0172  “Manufacturer” means a person who:

    1.  Manufactures, assembles, programs or makes modifications to a gaming device , [or] cashless wagering system[;] or interactive gaming system; or

    2.  Designs, assumes responsibility for the design of, controls the design or assembly of, or maintains a copyright over the design of , a mechanism, electronic circuit or computer program which cannot be reasonably demonstrated to have any application other than in a gaming device , [or in a] cashless wagering system[,] or interactive gaming system for use or play in this state or for distribution outside of this state.

    Sec. 13.  NRS 463.3557 is hereby amended to read as follows:

    463.3557  [An]

    1.  Except as otherwise provided in subsection 2, an electronic transfer of money from a financial institution directly to a game or gaming device may not be made with a credit card.

    2.  The provisions of subsection 1 do not apply to an interactive gaming system.

    Sec. 14.  NRS 463.361 is hereby amended to read as follows:

    463.361  1.  Except as otherwise provided in section 4 of this act and NRS 463.361 to 463.366, inclusive, gaming debts that are not evidenced by a credit instrument are void and unenforceable and do not give rise to any administrative or civil cause of action.

    2.  A claim by a patron of a licensee for payment of a gaming debt that is not evidenced by a credit instrument may be resolved in accordance with NRS 463.362 to 463.366, inclusive:

    (a) By the board; or

    (b) If the claim is for less than $500, by a hearing examiner designated by the board.

    Sec. 15.  NRS 463.370 is hereby amended to read as follows:

    463.370  1.  Except as otherwise provided in NRS 463.373, the commission shall charge and collect from each licensee a license fee based upon all the gross revenue of the licensee as follows:

    (a) Three percent of all the gross revenue of the licensee which does not exceed $50,000 per calendar month;

    (b) Four percent of all the gross revenue of the licensee which exceeds $50,000 per calendar month and does not exceed $134,000 per calendar month; and

    (c) Six and one-quarter percent of all the gross revenue of the licensee which exceeds $134,000 per calendar month.

    2.  Unless the licensee has been operating for less than a full calendar month, the commission shall charge and collect the fee prescribed in subsection 1, based upon the gross revenue for the preceding calendar month, on or before the 24th day of the following month. Except for the fee based on the first full month of operation, the fee is an estimated payment of the license fee for the third month following the month whose gross revenue is used as its basis.

    3.  When a licensee has been operating for less than a full calendar month, the commission shall charge and collect the fee prescribed in subsection 1, based on the gross revenue received during that month, on or before the 24th day of the following calendar month of operation. After the first full calendar month of operation, the commission shall charge and collect the fee based on the gross revenue received during that month, on or before the 24th day of the following calendar month. The payment of the fee due for the first full calendar month of operation must be accompanied by the payment of a fee equal to three times the fee for the first full calendar month. This additional amount is an estimated payment of the license fees for the next 3 calendar months. Thereafter, each license fee must be paid in the manner described in subsection 2. Any deposit held by the commission on July 1, 1969, must be treated as an advance estimated payment.

    4.  All revenue received from any game or gaming device which is operated on the premises of a licensee, regardless of whether any portion of the revenue is shared with any other person, must be attributed to the licensee for the purposes of this section and counted as part of the gross revenue of the licensee. Any other person, including, without limitation, an operator of an inter-casino linked system, who is authorized to receive a share of the revenue from any game, gaming device or inter-casino linked system that is operated on the premises of a licensee is liable to the licensee for that person’s proportionate share of the license fees paid by the licensee pursuant to this section and shall remit or credit the full proportionate share to the licensee on or before the 24th day of each calendar month. The proportionate share of an operator of an inter-casino linked system must be based on all compensation and other consideration received by the operator of the inter-casino linked system, including, without limitation, amounts that accrue to the meter of the primary progressive jackpot of the inter-casino linked system and amounts that fund the reserves of such a jackpot, subject to all appropriate adjustments for deductions, credits, offsets and exclusions that the licensee is entitled to take or receive pursuant to the provisions of this chapter. A licensee is not liable to any other person authorized to receive a share of the licensee’s revenue from any game, gaming device or inter-casino linked system that is operated on the premises of the licensee for that person’s proportionate share of the license fees to be remitted or credited to the licensee by that person pursuant to this section.

    5.  An operator of an inter-casino linked system shall not enter into any agreement or arrangement with a licensee that provides for the operator of the inter-casino linked system to be liable to the licensee for less than its full proportionate share of the license fees paid by the licensee pursuant to this section, whether accomplished through a rebate, refund, charge-back or otherwise.

    6.  Any person required to pay a fee pursuant to this section shall file with the commission, on or before the 24th day of each calendar month, a report showing the amount of all gross revenue received during the preceding calendar month. Each report must be accompanied by:

    (a) The fee due based on the revenue of the month covered by the report; and

    (b) An adjustment for the difference between the estimated fee previously paid for the month covered by the report, if any, and the fee due for the actual gross revenue earned in that month. If the adjustment is less than zero, a credit must be applied to the estimated fee due with that report.

    7.  If the amount of license fees required to be reported and paid pursuant to this section is later determined to be greater or less than the amount actually reported and paid, the commission shall:

    (a) Charge and collect the additional license fees determined to be due, with interest thereon until paid; or

    (b) Refund any overpayment to the person entitled thereto pursuant to this chapter, with interest thereon.

 

 
Interest pursuant to paragraph (a) must be computed at the rate prescribed in NRS 17.130 from the first day of the first month following [either] the due date of the additional license fees [or the date of overpayment] until paid. Interest pursuant to paragraph (b) must be computed at one-half the rate prescribed in NRS 17.130 from the first day of the first month following the date of overpayment until paid.

    8.  Failure to pay the fees provided for in this section shall be deemed a surrender of the license at the expiration of the period for which the estimated payment of fees has been made, as established in subsection 2.

    9.  Except as otherwise provided in NRS 463.386, the amount of the fee prescribed in subsection 1 must not be prorated.

    10.  Except as otherwise provided in NRS 463.386, if a licensee ceases operation, the commission shall:

    (a) Charge and collect the additional license fees determined to be due with interest[;] computed pursuant to paragraph (a) of subsection 7; or

    (b) Refund any overpayment[, with interest thereon,] to the licensee[,] with interest computed pursuant to paragraph (b) of subsection 7,

 

 
based upon the gross revenue of the licensee during the last 3 months immediately preceding the cessation of operation, or portions of those last 3 months.

    11.  If in any month, the amount of gross revenue is less than zero, the licensee may offset the loss against gross revenue in succeeding months until the loss has been fully offset.

    12.  If in any month, the amount of the license fee due is less than zero, the licensee is entitled to receive a credit against any license fees due in succeeding months until the credit has been fully offset.

    Sec. 16.  NRS 463.387 is hereby amended to read as follows:

    463.387  1.  State gaming license fees or taxes paid in excess of the amount required to be reported and paid may be refunded, upon the approval of the commission, as other claims against the state are paid.

    2.  Within 90 days after the mailing of the notice of the commission’s action upon a claim for refund filed pursuant to this chapter, the claimant may bring an action against the commission on the grounds set forth in the claim in any court of competent jurisdiction for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.

    3.  Failure to bring an action within the time specified in subsection 2 constitutes a waiver of any demand against the state on account of alleged overpayments.

    4.  Within 20 days after the mailing of the notice of the commission’s action upon a claim for refund filed pursuant to this chapter, the claimant may file a motion for rehearing with the commission. The commission must take action on the motion for rehearing within 50 days after it has been filed with the commission. If the motion for rehearing is granted, the commission’s earlier action upon the claim for refund is rescinded and the 90-day period specified in subsection 2 does not begin until the commission mails notice of its action upon the claim following the rehearing.

    5.  If the commission fails to mail its notice of action on a claim within 6 months after the claim is filed or reheard, the claimant may consider the claim disallowed and bring an action against the commission on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

    6.  In any case where a refund is granted, interest must be allowed at one-half the rate prescribed in NRS 17.130 upon the amount found to have been erroneously paid from the first day of the first month following the date of overpayment until paid. The commission may in its discretion deny or limit the payment of interest if it finds that the claimant has failed to file a claim for a refund within 90 days after receiving written notification of overpayment from the board or has impeded the board’s ability to process the claim in a timely manner.

    7.  Notwithstanding the provisions of NRS 353.115, any claim for refund of state gaming license fees or taxes paid in excess of the amount required to be reported and paid[,] must be filed with the commission within 5 years after the date of overpayment and not thereafter.

    8.  The provisions of this chapter must not be construed to permit the proration of state gaming taxes or license fees for purposes of a refund.

    Sec. 17.  NRS 463.400 is hereby amended to read as follows:

    463.400  Any person who willfully fails to report, pay or truthfully account for and pay over the license fees imposed by NRS 463.370, 463.373 to 463.3855, inclusive, and sections 6 to 9, inclusive, of this act, 463.390 and 463.450, or willfully attempts in any manner to evade or defeat any such tax or payment thereof, or any licensee who puts additional games into play without authority of the commission to do so or any licensee who fails to remit any license fee provided for by this chapter when due is in addition to the amount due liable for a penalty of the amount of the license fee evaded or not paid, collected or paid over. The penalty must be assessed and collected in the same manner as are other charges, license fees and penalties under this chapter.

    Sec. 18.  NRS 463.403 is hereby amended to read as follows:

    463.403  1.  Every person required to pay the tax imposed by NRS 463.401 shall file with the commission, on or before the 24th day of each month, a report showing the amount of all taxable receipts for the preceding month.

    2.  Each report must be accompanied by the amount of tax which is due for the month covered by the report.

    3.  If the amount of tax required to be reported and paid pursuant to NRS 463.401 is later determined to be greater or less than the amount actually reported and paid, the commission shall:

    (a) Charge and collect the additional tax determined to be due, with interest thereon until paid; or

    (b) Refund any overpayment to the person entitled thereto pursuant to this chapter, with interest thereon.

 

 
Interest [is] pursuant to paragraph (a) must be computed at the rate prescribed in NRS 17.130 from the first day of the first month following [either] the due date of the additional tax [or the date of overpayment] until paid. Interest pursuant to paragraph (b) must be computed at one-half the rate prescribed in NRS 17.130 from the first day of the first month following the date of overpayment until paid.

    Sec. 19.  NRS 463.450 is hereby amended to read as follows:

    463.450  1.  Any disseminator of such information obtaining a license under NRS 463.430 to 463.480, inclusive, shall pay to the commission a fee of 4.25 percent of the total fees collected from users each calendar month for the dissemination of live broadcasts.

    2.  The commission shall collect the fee on or before the last day of each calendar month for the preceding calendar month.

    3.  If the amount of the fee required by this section to be reported and paid is determined to be different than the amount reported or paid by the licensee, the commission shall:

    (a) Charge and collect any additional fee determined to be due, with interest thereon until paid; or

    (b) Refund any overpaid fees to the person entitled thereto pursuant to this chapter, with interest thereon.

 

 
Interest [is] pursuant to paragraph (a) must be computed at the rate prescribed in NRS 17.130 from the first day of the first calendar month following [either] the due date of the additional license fees [or the date of overpayment] until paid. Interest pursuant to paragraph (b) must be computed at one-half the rate prescribed in NRS 17.130 from the first day of the first month following the date of overpayment until paid.

    4.  The commission shall remit all fees collected, less any fees refunded pursuant to subsection 3, to the state treasurer for deposit to the credit of the state general fund.

    Sec. 20.  NRS 463.482 is hereby amended to read as follows:

    463.482  As used in NRS 463.160 to 463.170, inclusive, and section 3 of this act, 463.368, 463.386 and 463.482 to 463.645, inclusive, unless the context otherwise requires, the words and terms defined in NRS 463.4825 to 463.488, inclusive, have the meanings ascribed to them in those sections.

    Sec. 21.  NRS 463.643 is hereby amended to read as follows:

    463.643  1.  Each person who acquires, directly or indirectly, beneficial ownership of any voting security in a publicly traded corporation which is registered with the commission may be required to be found suitable if the commission has reason to believe that his acquisition of [such] that ownership would otherwise be inconsistent with the declared policy of this state.

    2.  Each person who acquires, directly or indirectly, beneficial ownership of any debt security in a publicly traded corporation which is registered with the commission may be required to be found suitable if the commission has reason to believe that his acquisition of [such] the debt security would otherwise be inconsistent with the declared policy of this state.

    3.  Each person who, individually or in association with others, acquires, directly or indirectly, beneficial ownership of more than 5 percent of any class of voting securities of a publicly traded corporation registered with the Nevada gaming commission, and who is required to report, or voluntarily reports, [such] the acquisition to the Securities and Exchange Commission pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended , [(]15 U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall file a copy of that report, and any amendments thereto, with the Nevada gaming commission within 10 days after filing that report with the Securities and Exchange Commission.

    4.  Each person who, individually or in association with others, acquires, directly or indirectly, the beneficial ownership of more than 10 percent of any class of voting securities of a publicly traded corporation registered with the commission, [and] or who is required to report, or voluntarily reports, the acquisition pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended , [(]15 U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall apply to the commission for a finding of suitability within 30 days after the chairman of the board mails the written notice.

    5.  A person who acquires beneficial ownership of any voting security or debt security in a publicly traded corporation created under the laws of a foreign country which is registered with the commission shall file such reports and is subject to such a finding of suitability as the commission may prescribe.

    6.  Any person required by the commission or by this section to be found suitable shall:

    (a) Except as otherwise required in subsection 4, apply for a finding of suitability within 30 days after the commission requests that he do so; and

    (b) Together with the application, deposit with the board a sum of money which, in the opinion of the board, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application, and deposit such additional sums as are required by the board to pay final costs and charges.

    7.  Any person required by the commission or this section to be found suitable who is found unsuitable by the commission shall not hold directly or indirectly the beneficial ownership of any voting security or debt security of a publicly traded corporation which is registered with the commission beyond the time prescribed by the commission.

    8.  The violation of subsection 6 or 7 is a gross misdemeanor.

    9.  As used in this section, “debt security” means any instrument generally recognized as a corporate security representing money owed and reflected as debt on the financial statement of a publicly traded corporation, including, but not limited to, bonds, notes and debentures.

    Sec. 22.  NRS 463.650 is hereby amended to read as follows:

    463.650  1.  Except as otherwise provided in subsections 2 to 5, inclusive, it is unlawful for any person, either as owner, lessee or employee, whether for hire or not, to operate, carry on, conduct or maintain any form of manufacture, selling or distribution of any gaming device , [or] cashless wagering system or interactive gaming system for use or play in Nevada or for distribution outside of Nevada without first procuring and maintaining all required federal, state, county and municipal licenses.

    2.  A lessor who specifically acquires equipment for a capital lease is not required to be licensed under this section or NRS 463.660.

    3.  The holder of a state gaming license or the holding company of a corporation, partnership, limited partnership, limited-liability company or other business organization holding a license may, within 2 years after cessation of business or upon specific approval by the board, dispose of by sale in a manner approved by the board, any or all of its gaming devices, including slot machines, and cashless wagering systems, without a distributor’s license. In cases of bankruptcy of a state gaming licensee or foreclosure of a lien by a bank or other person holding a security interest for which gaming devices are security in whole or in part for the lien, the board may authorize the disposition of the gaming devices without requiring a distributor’s license.

    4.  The commission may, by regulation, authorize a person who owns gaming devices for home use in accordance with NRS 463.160 to sell such devices without procuring a license therefor.

    5.  Upon approval by the board, a gaming device owned by:

    (a) A law enforcement agency;

    (b) A court of law; or

    (c) A gaming device repair school licensed by the commission on postsecondary education, may be disposed of by sale, in a manner approved by the board, without a distributor’s license. An application for approval must be submitted to the board in the manner prescribed by the chairman.

    6.  [Any] Except as is otherwise required for the licensure of a manufacturer of interactive gaming components, any person whom the commission determines is a suitable person to receive a license under the provisions of this section and NRS 463.660 may be issued a manufacturer’s or distributor’s license. The burden of proving his qualification to receive or hold a license under this section and NRS 463.660 is at all times on the applicant or licensee.

    7.  Every person who must be licensed pursuant to this section is subject to the provisions of NRS 463.482 to 463.645, inclusive, unless exempted from those provisions by the commission.

    8.  The commission may exempt, for any purpose, a manufacturer, seller or distributor from the provisions of NRS 463.482 to 463.645, inclusive, if the commission determines that the exemption is consistent with the purposes of this chapter.

    9.  As used in this section, “holding company” has the meaning ascribed to it in NRS 463.485.

    Sec. 23.  NRS 463.670 is hereby amended to read as follows:

    463.670  1.  The legislature finds and declares as facts:

    (a) That the inspection of gaming devices, associated equipment , [and] cashless wagering systems and interactive gaming systems is essential to carry out the provisions of this chapter; and

    (b) That inspection of gaming devices, associated equipment , [and] cashless wagering systems and interactive gaming systems is greatly facilitated by the opportunity to inspect components before assembly and to examine the methods of manufacture.

    2.  The board may inspect every gaming device which is manufactured, sold or distributed:

    (a) For use in this state, before the gaming device is put into play.

    (b) In this state for use outside this state, before the gaming device is shipped out of this state.

    3.  The board may inspect every gaming device which is offered for play within this state by a licensee.

    4.  The board may inspect all associated equipment , [and] every cashless wagering system and every interactive gaming system which is manufactured, sold or distributed for use in this state before the equipment or system is installed or used by a licensee and at any time while the licensee is using the equipment or system.

    5.  In addition to all other fees and charges imposed by this chapter, the board may determine, charge and collect an inspection fee from each manufacturer, seller or distributor which must not exceed the actual cost of inspection and investigation.

    Sec. 24.  The amendatory provisions of this act do not apply to offenses committed before July 1, 2001.

    Sec. 25.  This act becomes effective on July 1, 2001.”.

    Amend the title of the bill to read as follows:

“AN ACT relating to gaming; authorizing the Nevada gaming commission to adopt regulations governing the licensing and operation of interactive gaming if the commission first makes certain determinations; providing that a license to operate interactive gaming may be issued only to resort hotels or certain other establishments holding nonrestricted licenses; providing for certain application fees and license fees relating to interactive gaming; providing that gross revenue received from interactive gaming is subject to taxation in the same manner as gross revenue received from other games; exempting the operation of interactive gaming from certain other fees and taxes; revising the computation of interest payable by the commission on the overpayment of certain fees and taxes; prohibiting a person from operating interactive gaming until the commission adopts regulations and unless the person procures and maintains all licenses required pursuant to the regulations; providing for the enforceability of gaming debts incurred pursuant to an interactive gaming system; providing for the licensure and regulation of manufacturers of interactive gaming components; revising provisions relating to persons who acquire a certain beneficial ownership in a publicly traded corporation registered with the commission; revising the definitions of “gross revenue” and “manufacturer” for the purposes of the Nevada Gaming Control Act; providing penalties; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY¾Enacts provisions governing licensing and operation of interactive gaming and revises various provisions relating to gaming. (BDR 41‑531)”.

    Assemblyman Anderson moved the adoption of the amendment.

    Remarks by Assemblymen Anderson, Tiffany, Carpenter and Giunchigliani.

    Amendment adopted.

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

    Assembly Bill No. 245.

    Bill read second time.

    The following amendment was proposed by Assemblywoman Chowning:

    Amendment No. 631.

    Amend sec. 4, page 2, by deleting lines 1 through 5 and inserting:

    “Sec. 4.  1.  “Charter bus” means a motor vehicle for the transport of persons, chartered by the hour or for a fixed period, that:

    (a) Has a minimum capacity of 32 persons; and

    (b) Is hired to provide service for a person or group of persons traveling from one location to another for a common purpose.

    2.  The term does not include a bus transporting persons on the basis of a fee or charge that is imposed per person.”.

    Assemblyman Dini moved the adoption of the amendment.

    Remarks by Assemblymen Dini and Collins.

    Amendment adopted.

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

REPORTS OF COMMITTEES

Mr. Speaker:

    Your Committee on Commerce and Labor, to which was referred Assembly Bill No. 439, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Joseph E. Dini, Jr., Chairman

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblywoman Buckley moved that Assembly Bill No. 439 be placed on the Second Reading File.

    Motion carried.

    Assemblyman Arberry moved that Assembly Bill No. 536 be taken from the Chief Clerk’s desk and placed on the General File.

    Remarks by Assemblyman Arberry.

    Motion carried.

    Assemblyman Gustavson moved that all rules be suspended and that Assembly Bill No. 456 declared an emergency measure under the Constitution and placed on third reading and final passage.

    Motion carried.

SECOND READING AND AMENDMENT

    Assembly Bill No. 439.

    Bill read second time.

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

    Amendment No. 633.

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

    “Section 1.  Chapter 598 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 9, inclusive, of this act.

    Sec. 2.  As used in sections 2 to 9, inclusive, of this act, unless the context otherwise requires, “commissioner” means the commissioner of consumer affairs.”.

    Amend sec. 2, page 1, line 4, by deleting “names” and inserting “telephone numbers”.

    Amend sec. 2, page 1, line 5, by deleting “consumers” and inserting “persons”.

    Amend sec. 2, page 1, by deleting lines 8 through 13 and inserting:

available to a telephone solicitor for a fee established by the commissioner. The fee must not exceed $500 annually for each telephone solicitor.

    2.  The commissioner shall provide to persons in this state:

    (a) Information concerning the establishment and maintenance of the registry, including:

        (1) The procedure for requesting the inclusion of a telephone number in the registry;

        (2) A statement indicating that the registry will be revised and published at least once every 6 months pursuant to subsection 4; and

        (3) A statement indicating that all telephone numbers and any other information included in the registry will be deleted on January 1 of each year pursuant to subsection 4; and

    (b) The procedure for the inclusion of a telephone number in the registry.”.

    Amend sec. 2, page 1, line 14, by deleting “consumer” and inserting “person”.

    Amend sec. 2, page 1, line 17, by deleting “consumer” and inserting “person”.

    Amend sec. 2, page 1, between lines 18 and 19, by inserting:

    “4.  The commissioner shall:

    (a) Revise the telephone numbers and any other information included in the registry and publish the revised registry at least once every 6 months; and

    (b) Delete all telephone numbers and any other information included in the registry on January 1 of each year.”.

    Amend sec. 3, page 1, line 21, by deleting:

2, 3 and 4” and inserting:

2 to 9, inclusive,”.

    Amend the bill as a whole by deleting sections 4 through 6, renumbering sec. 7 as sec. 12 and adding new sections designated sections 5 through 11, following sec. 3, to read as follows:

    “Sec. 5.  1.  Except as otherwise provided in subsection 2, a telephone solicitor shall not intentionally make an unsolicited telephone call for the sale of goods or services to a person whose telephone number has been included for at least 30 days in the most recently published registry.

    2.  The provisions of subsection 1 do not apply to a telephone call made:

    (a) By or on behalf of a public utility or community antenna television company that is regulated pursuant to chapter 704 or 711 of NRS, or by an affiliate of the public utility or community antenna television company, if the making of the telephone call is authorized by the terms and conditions of the certificate of public convenience and necessity or franchise of the public utility or community antenna television company;

    (b) By or on behalf of a company that provides television services by satellite; or

    (c) To a person:

        (1) With whom the caller or an entity on whose behalf the call is made, or its affiliate, has a business relationship; or

        (2) Who had a business relationship with the caller or entity on whose behalf the call is made, or its affiliate, if the telephone call is made within 12 months after:

            (I) The business relationship was terminated; or

            (II) The date on which the person last purchased any goods or services from the caller or entity.

    Sec. 6.  1.  If the commissioner finds that a telephone solicitor has violated a provision of section 5 of this act, the commissioner may, in lieu of taking any action against the telephone solicitor pursuant to NRS 598.0903 to 598.0999, inclusive, for the first offense, issue a notice of violation to the telephone solicitor if the telephone solicitor submits proof to the commissioner that he has:

    (a) Obtained a copy of the registry and has established written policies and procedures concerning the provisions of sections 2 to 9, inclusive, of this act;

    (b) Provided training to each person who makes telephone calls for the telephone solicitor concerning the provisions of sections 2 to 9, inclusive, of this act; and

    (c) Maintained records evidencing compliance with the provisions of paragraphs (a) and (b).

    2.  A notice of violation issued pursuant to subsection 1 must set forth with particularity the violation alleged by the commissioner and specify the corrective action that the telephone solicitor must take and the period within which that corrective action must be taken. If a telephone solicitor to whom a notice of violation is issued fails to take the corrective action specified in the notice of violation, the commissioner may:

    (a) Extend the period for taking corrective action; or

    (b) Proceed against the telephone solicitor in accordance with the provisions of NRS 598.0903 to 598.0999, inclusive.

    Sec. 7.  A violation of a provision of section 5 of this act constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

    Sec. 8.  1.  The revolving account for the commissioner is hereby created, which must be used only for the payment of expenses to carry out the provisions of sections 2 to 9, inclusive, of this act.

    2.  The commissioner shall deposit the fees collected pursuant to section 3 of this act in the revolving account in a bank or credit union that is qualified to receive deposits of public money as provided by law. The deposit must be secured by a depository bond satisfactory to the state board of examiners.

    3.  The commissioner or his designee may:

    (a) Sign all checks drawn upon the revolving account; and

    (b) Make withdrawals of cash from the revolving account.

    4.  Payments made from the revolving account must be promptly reimbursed from the legislative appropriation, if any, made to the commissioner for the expenses to carry out the provisions of sections 2 to 9, inclusive, of this act. The claim for reimbursement must be paid as other claims against the state are paid.

    5.  The commissioner shall:

    (a) Approve any disbursement from the revolving account; and

    (b) Maintain a record of each disbursement.

    Sec. 9.  The commissioner shall adopt regulations to carry out the provisions of sections 2 to 9, inclusive, of this act.

    Sec. 10.  NRS 598.0999 is hereby amended to read as follows:

    598.0999  1.  A person who violates a court order or injunction issued pursuant to NRS 598.0903 to [598.0997,] 598.0999, inclusive, upon a complaint brought by the commissioner, the director, the district attorney of any county of this state or the attorney general shall forfeit and pay to the state general fund a civil penalty of not more than $10,000 for each violation. For the purpose of this section, the court issuing the order or injunction retains jurisdiction over the action or proceeding. Such civil penalties are in addition to any other penalty or remedy available for the enforcement of the provisions of NRS 598.0903 to [598.0997,] 598.0999, inclusive.

    2.  In any action brought pursuant to NRS 598.0903 to 598.0999, inclusive, if the court finds that a person has willfully engaged in a deceptive trade practice, the commissioner, the director, the district attorney of any county in this state or the attorney general bringing the action may recover a civil penalty not to exceed $2,500 for each violation.

    3.  A natural person, firm, or any officer or managing agent of any corporation or association who knowingly and willfully engages in a deceptive trade practice, other than a deceptive trade practice described in NRS 598.992:

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

    (b) For the second offense, is guilty of a gross misdemeanor.

    (c) For the third and all subsequent offenses, is guilty of a category D felony and shall be punished as provided in NRS 193.130.

    4.  Any offense which occurred within 10 years immediately preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of subsection 3 when evidenced by a conviction, without regard to the sequence of the offenses and convictions.

    5.  If a person violates any provision of NRS 598.0903 to 598.0999, inclusive, 598.100 to 598.2801, inclusive, 598.281 to 598.289, inclusive, 598.840 to 598.966, inclusive, [or 598.992,] 598.992 or section 5 of this act, fails to comply with a judgment or order of any court in this state concerning a violation of such a provision, or fails to comply with an assurance of discontinuance or other agreement concerning an alleged violation of such a provision, the commissioner or the district attorney of any county may bring an action in the name of the State of Nevada seeking:

    (a) The suspension of the person’s privilege to conduct business within this state; or

    (b) If the defendant is a corporation, dissolution of the corporation.

 

 
The court may grant or deny the relief sought or may order any other appropriate relief.

    Sec. 11.  The amendatory provisions of this act do not apply to offenses committed before January 1, 2002.”.

    Amend sec. 7, page 3, line 11, by deleting:

“October 1, 2001,” and inserting:

“January 1, 2002,”.

    Amend the title of the bill to read as follows:

“AN ACT relating to deceptive trade practices; requiring the establishment of a registry of persons who do not wish to receive unsolicited telephone calls for the sale of goods or services; prohibiting a telephone solicitor from making an unsolicited telephone call to a person whose telephone number is included in the registry under certain circumstances; providing a penalty; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Revises provisions relating to deceptive trade practices. (BDR 52‑1263)”.

    Assemblyman Dini moved the adoption of the amendment.

    Remarks by Assemblyman Dini.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

general file and third reading

    Assembly Bill No. 536.

    Bill read third time.

    Roll call on Assembly Bill No. 536:

    Yeas—41.

    Nays—None.

    Excused—Freeman.

    Assembly Bill No. 536 having received a constitutional majority, Mr. Speaker declared it passed, as amended.

    Bill ordered transmitted to the Senate.

    Assembly Bill No. 456.

    Bill read second time.

    The following amendment was proposed by Assemblyman Gustavson:

    Amendment No. 634.

    Amend sec. 4, page 3, by deleting lines 1 through 3 and inserting:

(a) A designation of the face value of the token;”.

Amend sec. 4, page 3, line 11, after “500” by inserting “numbered”.

    Assemblyman Gustavson moved the adoption of the amendment.

    Remarks by Assemblyman Gustavson.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

    Assemblywoman Giunchigliani moved that Assembly Bill No. 499 be taken from the Chief Clerk's desk and placed at the top of the General File.

    Remarks by Assemblywoman Giunchigliani.

    Motion carried.

general file and third reading

    Assembly Bill No. 499.

    Bill read second time.

    The following amendment was proposed by Assemblywoman Giunchigliani:

    Amendment No. 624.

    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.  NRS 393.103 is hereby amended to read as follows:

    393.103  A school district that has more than 150,000 pupils enrolled shall develop and adopt a policy concerning the renovation or reconstruction of older buildings for schools or related facilities. As part of the policy, consideration must be given to the relative advantages and disadvantages of the renovation or reconstruction of older buildings for schools or related facilities as compared to the design, construction or purchase of new buildings for schools or related facilities [.] , including, without limitation, an analysis of the costs to renovate or reconstruct existing buildings and facilities to comply with the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., in comparison with the costs to construct or purchase new buildings and facilities. The policy must include, without limitation, guidelines for use by the board of trustees in determining whether older buildings should be renovated or reconstructed or whether new buildings to replace those older buildings should be constructed or purchased [.] , including, without limitation, a determination of the costs to renovate or reconstruct existing buildings and facilities to comply with the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., in comparison with the costs to construct or purchase new buildings and facilities.”.

    Amend sec. 2, page 2, by deleting lines 28 through 30 and inserting:

    “2.  Notwithstanding the provisions of NRS 387.328 to the contrary, the board of trustees of the Clark County School District may use an amount not to exceed $200 million from the fund for capital projects created pursuant to NRS 387.328 to reconstruct at least eight existing”.

    Amend sec. 2, page 2, line 33, by deleting “393.100” and inserting “393.103”.

    Amend sec. 2, page 2, line 36, by deleting “five”.

    Amend sec. 2, page 2, by deleting lines 39 through 42.

    Amend sec. 2, page 2, line 43, by deleting “4.” and inserting “3.”.

    Amend sec. 2, page 2, line 48, by deleting “five”.

    Amend the title of the bill to read as follows:

“AN ACT relating to public schools; revising provisions governing the policy for the renovation or reconstruction of schools required of certain school districts; revising provisions governing the use of certain proceeds of bonds for a pilot program of a certain school district for the replacement of schools; requiring Clark County school district to continue its pilot program for the replacement of schools; authorizing a certain school district to use a certain amount of money from its fund for capital projects to finance the replacement of schools designated for its pilot program; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

“SUMMARY—Revises provisions governing policy for renovation or reconstruction of schools and authorizes use of money from fund for capital projects for continuation of pilot program for replacement of schools in certain school district. (BDR 34‑861)”.

    Assemblywoman Giunchigliani moved the adoption of the amendment.


    Remarks by Assemblywoman Giunchigliani.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

GUESTS EXTENDED PRIVILEGE OF ASSEMBLY FLOOR

    On request of Assemblyman Anderson, the privilege of the floor of the Assembly Chamber for this day was extended to Debbie DeGroff.

    On request of Assemblywoman Angle, the privilege of the floor of the Assembly Chamber for this day was extended to Charlene Howard.

    On request of Assemblyman Arberry, the privilege of the floor of the Assembly Chamber for this day was extended to April Mastroluca.

    On request of Assemblyman Bache, the privilege of the floor of the Assembly Chamber for this day was extended to Dani Burt.

    On request of Assemblyman Beers, the privilege of the floor of the Assembly Chamber for this day was extended to Zach Freeman, Travis Renslow and Kim Tate.

    On request of Assemblywoman Berman, the privilege of the floor of the Assembly Chamber for this day was extended to Debbie Waltman.

    On request of Assemblyman Brower, the privilege of the floor of the Assembly Chamber for this day was extended to Chuck Price, Anne Price and Brigitte Price.

    On request of Assemblyman Brown, the privilege of the floor of the Assembly Chamber for this day was extended to DeWaine Brown, Judy Brown and Jackie Greene.

    On request of Assemblywoman Buckley, the privilege of the floor of the Assembly Chamber for this day was extended to Laurie Blend.

    On request of Assemblyman Carpenter, the privilege of the floor of the Assembly Chamber for this day was extended to Alan Pannell and Justine McNeal.

    On request of Assemblywoman Cegavske, the privilege of the floor of the Assembly Chamber for this day was extended to Amy Bladon.

    On request of Assemblywoman Chowning, the privilege of the floor of the Assembly Chamber for this day was extended to D.J. Stutz.

    On request of Assemblywoman Claborn, the privilege of the floor of the Assembly Chamber for this day was extended to Teri Nichols and Jill Cassell.

    On request of Assemblyman Collins, the privilege of the floor of the Assembly Chamber for this day was extended to Brigitte Solvie.

    On request of Assemblyman de Braga, the privilege of the floor of the Assembly Chamber for this day was extended to Barbara Sealy and Chris Stowe.

    On request of Assemblyman Dini, the privilege of the floor of the Assembly Chamber for this day was extended to Wendy Sullivan.

    On request of Assemblywoman Freeman, the privilege of the floor of the Assembly Chamber for this day was extended to Sherry Cushman and Kara Spracklin.

    On request of Assemblywoman Gibbons, the privilege of the floor of the Assembly Chamber for this day was extended to Lisa Sanders.

    On request of Assemblywoman Giunchigliani, the privilege of the floor of the Assembly Chamber for this day was extended to Erika Mayer.

    On request of Assemblyman Goldwater, the privilege of the floor of the Assembly Chamber for this day was extended to Brian Lawrence.

    On request of Assemblyman Gustavson, the privilege of the floor of the Assembly Chamber for this day was extended to Randi Freeman and Travis McCurry.

    On request of Assemblyman Hettrick, the privilege of the floor of the Assembly Chamber for this day was extended to Nick Johnson, Kevin Thomas and Loretta Evenson.

    On request of Assemblyman Humke, the privilege of the floor of the Assembly Chamber for this day was extended to Meg Kent.

    On request of Assemblywoman Koivisto, the privilege of the floor of the Assembly Chamber for this day was extended to Karen Mills.

    On request of Assemblyman Lee, the privilege of the floor of the Assembly Chamber for this day was extended to Delbert B. Barry, Phyllis P. Barry Stoop and Joy Stoop.

    On request of Assemblywoman Leslie, the privilege of the floor of the Assembly Chamber for this day was extended to Jeanine Van de Vort and Brandon Wilcox.

    On request of Assemblyman Manendo, the privilege of the floor of the Assembly Chamber for this day was extended to Linda Sanders.

    On request of Assemblyman Marvel, the privilege of the floor of the Assembly Chamber for this day was extended to Michelle Wilson and Virginia Bowman.

    On request of Assemblywoman McClain, the privilege of the floor of the Assembly Chamber for this day was extended to Dixie Worden.

    On request of Assemblyman Mortenson, the privilege of the floor of the Assembly Chamber for this day was extended to Cynthia Hernandez, Shelly McFarland and Heidi Wachter.

    On request of Assemblyman Neighbors, the privilege of the floor of the Assembly Chamber for this day was extended to Annette Keirn and Colton Draper.

    On request of Assemblyman Nolan, the privilege of the floor of the Assembly Chamber for this day was extended to Brenda Saylors, Caryn Bake and Dawn Rocheleau.

    On request of Assemblyman Oceguera, the privilege of the floor of the Assembly Chamber for this day was extended to Lori Bice.

    On request of Assemblywoman Ohrenschall, the privilege of the floor of the Assembly Chamber for this day was extended to Glynis Stirling and Juanine Kenourgias.

    On request of Assemblyman Parks, the privilege of the floor of the Assembly Chamber for this day was extended to Barbara Pavik.

    On request of Assemblywoman Parnell, the privilege of the floor of the Assembly Chamber for this day was extended to Heather Capps, Joni Hyams, Sheila Bolton, Kristin Stokes, Sheila Merritt, Kim Scharmann, Beth Kitchen, Lonnie Karges, Tracy Banks, Julie Case, Linda Sitze, Larry Paul, Terri Dietlein, Ramona Baxter, Jared Baxter, Bradley Cobler, Stephen Deterding, William Dietlein, Nicholas Grant, Robert Higgins, Ruby Kimball, Robyn Langguth, Kyle Machado, Hannah Nystrom, Ian Paul, Kristen Sonderegger, Taylor Stokes, Kevin Sloan, Annie Brinson, Jared Case, Andrew Coleman, Tiffany Halen, Joshua Karges, Zachary Karges, Lauren Metcalf, Jeff Patane, Sophia Raphael, Lyndsey Sullivan, Austin Bartosz, Danielle Benson, Sarah Evans, Joshua Gansberg, Melissa Karges, Rebecca Kitchen, Micah Laack, David Leid, Sam Marson, Brian Merritt, Sarah Metcalf, John Renaud, Kaitlin Scharmann, Christian Volker and Rachel Winters.

    On request of Assemblyman Perkins, the privilege of the floor of the Assembly Chamber for this day was extended to Linda Hardin.

    On request of Assemblyman Price, the privilege of the floor of the Assembly Chamber for this day was extended to Kelly Frost, Amanda Keirn and Kathi Allen.

    On request of Assemblywoman Smith, the privilege of the floor of the Assembly Chamber for this day was extended to Lyndsey Cartmal and Lena La Flame.

    On request of Assemblywoman Tiffany, the privilege of the floor of the Assembly Chamber for this day was extended to C.J. Wisner, Donny Frey, Jennifer Raney, Karin Christiansen, Katherine Clark, Melinda Maley, Kevin Thomas, Dixie Dahl, Heather Bake, Caryn Bake, Rita McNight, Valerie Bake, Kari Hassell, Kelly Frost and Norman Frey.

    On request of Assemblywoman Von Tobel, the privilege of the floor of the Assembly Chamber for this day was extended to BriAnne Jensen, Adam Clem, Allen West, Justin Whipple, Sara Ternus, Marisa Flores, Brandon Smith, David Leavitt and Susan Riedy.

    On request of Assemblyman Williams, the privilege of the floor of the Assembly Chamber for this day was extended to Ray Willis and Deborah Willis.

    Assemblywoman Buckley moved that the Assembly adjourn until Friday, April 27, 2001 at 9:00 a.m.

    Motion carried.

    Assembly adjourned at 7:17 p.m. 

Approved:                                                                Richard D. Perkins

                                                                                  Speaker of the Assembly

Attest:    Jacqueline Sneddon

                    Chief Clerk of the Assembly