NEVADA LEGISLATURE

THE EIGHTY-FIRST DAY

Carson City(Thursday), April 26, 2001

Senate called to order at 10:42 a.m.

President Hunt presiding.

Roll called.

All present.

Prayer by the Chaplain, Reverend Jeffrey Paul.

God of exiles, shelter of the homeless, we are in need of Your mercy. We ask Your blessing on Your children everywhere who are in danger today. Bless all who suffer from injustice. Shelter them in the warmth of Your love and safeguard them from the evil that rages around them. Turn our eyes and hearts to their needs, and give us courage to act for their good. We ask this, relying on Your compassion and confident in Your love.

Amen.

Pledge of allegiance to the Flag.

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

Motion carried.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Commerce and Labor, to which were referred Senate Bills Nos. 44, 99, 372, 394, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Randolph J. Townsend, Chairman

Madam President:

Your Committee on Government Affairs, to which were referred Senate Bills Nos. 553, 554, 555, 563, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Ann O'Connell, Chairman

Madam President:

Your Committee on Human Resources and Facilities, to which was referred Senate Bill No. 291, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Raymond D. Rawson, Chairman

Madam President:

Your Committee on Judiciary, to which were referred Senate Bills Nos. 83, 411, 474, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Mark A. James, Chairman

Madam President:

Your Committee on Natural Resources, to which was referred Senate Bill No. 534, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and re-refer to the Committee on Finance.

Dean A. Rhoads, Chairman

Madam President:

Your Committee on Taxation, to which was referred Senate Bill No. 156, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Mike McGinness, Chairman

Madam President:

Your Committee on Transportation, to which were referred Senate Bills Nos. 257, 270, 481, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

William R. O'Donnell, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, April 25, 2001

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day passed Assembly Bill No. 341; Assembly Joint Resolution No. 13.

Also, I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bills Nos. 130, 179, 195, 198, 248, 253, 254, 271, 331, 364, 375, 402, 415, 419, 429, 442, 455, 458, 462, 466, 488, 491, 552, 571, 601, 622.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted Senate Concurrent Resolutions Nos. 7, 17.

Patricia R. Williams

Assistant Chief Clerk of the Assembly

WAIVERS AND EXEMPTIONS

Notice Of Exemption

April 25, 2001

The Fiscal Analysis Division, pursuant to Joint Standing Rule No. 14.6, has determined the exemption of: Senate Bills Nos. 168, 478.

Gary Ghiggeri

Fiscal Analysis Division

MOTIONS, RESOLUTIONS AND NOTICES

Senator Raggio moved that for this legislative day, the Secretary of the Senate dispense with reading the histories and titles of all bills and resolutions.

Remarks by Senator Raggio.

Motion carried.

Senator Raggio moved that for this legislative day, all Senate bills and resolutions reported out of committee with amendments be immediately placed on the appropriate reading files, time permitting.

Remarks by Senator Raggio.

Motion carried.

Senator Raggio moved that for this legislative day, that all rules be suspended, and that all Senate bills and joint resolutions returned from reprint be declared emergency measures under the Constitution and immediately placed on third reading and final passage, time permitting.

Remarks by Senator Raggio.

Motion carried unanimously.

Assembly Joint Resolution No. 13.

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

Motion carried.

Senator McGinness moved Senate Bill No. 381 be taken from the Secretary's desk and placed on the Second Reading File on the first agenda.

Remarks by Senator McGinness.

Motion carried

INTRODUCTION, FIRST READING AND REFERENCE

Assembly Bill No. 130.

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

Motion carried.

Assembly Bill No. 179.

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

Motion carried.

Assembly Bill No. 195.

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

Motion carried.

Assembly Bill No. 198.

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

Motion carried.

Assembly Bill No. 248.

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

Motion carried.

Assembly Bill No. 253.

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

Motion carried.

Assembly Bill No. 254.

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

Motion carried.

Assembly Bill No. 271.

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

Motion carried.

Assembly Bill No. 331.

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

Motion carried.

Assembly Bill No. 341.

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

Motion carried.

Assembly Bill No. 364.

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

Motion carried.

Assembly Bill No. 375.

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

Motion carried.

Assembly Bill No. 402.

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

Motion carried.

Assembly Bill No. 415.

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

Motion carried.

Assembly Bill No. 419.

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

Motion carried.

Assembly Bill No. 429.

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

Motion carried.

Assembly Bill No. 442.

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

Motion carried.

Assembly Bill No. 455.

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

Motion carried.

Assembly Bill No. 458.

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

Motion carried.

Assembly Bill No. 462.

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

Motion carried.

Assembly Bill No. 466.

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

Motion carried.

Assembly Bill No. 488.

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

Motion carried.

Assembly Bill No. 491.

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

Motion carried.

Assembly Bill No. 552.

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

Motion carried.

Assembly Bill No. 571.

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

Motion carried.

Assembly Bill No. 601.

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

Motion carried.

Assembly Bill No. 622.

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

Motion carried.

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

Motion carried.

Senate in recess at 11:13 a.m.

SENATE IN SESSION

At 11:21 a.m.

President Hunt presiding.

Quorum present.

SECOND READING AND AMENDMENT

Senate Bill No. 227.

Bill read second time.

The following amendment was proposed by the Committee on Taxation:

Amendment No. 193.

Amend the bill as a whole by deleting sections 1 through 4 and the text of repealed sections and adding new sections designated sections 1 through 9 and the text of the repealed section, following the enacting clause, to read as follows:

“Section 1. NRS 361.0685 is hereby amended to read as follows:

361.0685 1. Except as otherwise provided in this section, if a:

(a) Business that engages in the primary trade of preparing, fabricating, manufacturing or otherwise processing raw material or an intermediate product through a process in which at least 50 percent of the material or product is recycled on site; or

(b) Business that includes as a primary component a facility for the [production of electrical energy] generation of electricity from recycled material, is found by the commission on economic development to have as a primary purpose the conservation of energy or the substitution of other sources of energy for fossil sources of energy and obtains certification from the commission on economic development pursuant to NRS [231.139, 75 percent of the personal and real property of the business is exempt from taxation.

2. Before an exemption may be granted pursuant to subsection 1, the business must execute an agreement with the commission on economic development which states that the business will continue in operation in this state for 30 or more years after the date on which the exemption is granted. The agreement must bind the successors in interest of the business. The exemption pursuant to this section continues until the expiration of the period for which the exemption was granted or until the business discontinues in operation in this state, whichever occurs first.

3. The exemption] 360.750, the commission may, if the business additionally satisfies the requirements set forth in subsection 2 of NRS 361.0687, grant to the business a partial abatement from the taxes imposed on real property by this chapter.

2. If a partial abatement from the taxes imposed on real property by this chapter is approved by the commission on economic development pursuant to NRS 360.750 for a business described in subsection 1:

(a) The partial abatement must:

(1) Be for a duration of at least 1 year but not more than 10 years;

(2) Not exceed 50 percent of the taxes on real property payable by the business each year pursuant to this chapter; and

(3) Be administered and carried out in the manner set forth in NRS 360.750.

(b) The executive director of the commission on economic development shall notify the county assessor of the county in which the business is located of the approval of the partial abatement, including, without limitation, the duration and percentage of the partial abatement that the commission granted. The executive director shall, on or before April 15 of each year, advise the county assessor of each county in which a business qualifies for a partial abatement during the current fiscal year as to whether the business is still eligible for the partial abatement in the next succeeding fiscal year.

3. The partial abatement provided in this section applies only to the business for which certification was granted pursuant to NRS [231.139] 360.750 and the property used in connection with that business. The exemption does not apply to property in this state that is not related to the business for which the certification was granted pursuant to NRS [231.139] 360.750 or to property in existence and subject to taxation before the certification was granted.

4. [Personal property exempted pursuant to subsection 1 may not receive an exemption for more than 10 consecutive years. Real property exempted pursuant to subsection 1 may not receive an exemption for more than 20 consecutive years.

5.] As used in this section, a “facility for the [production of electrical energy] generation of electricity from recycled material” is a facility which uses recycled material as its primary fuel including material from:

(a) Industrial or domestic waste, other than hazardous waste, even though it includes a product made from oil, natural gas or coal, such as plastics, asphalt shingles or tires;

(b) Agricultural crops, whether terrestrial or aquatic, and agricultural waste, such as manure and residue from crops; and

The term includes all the equipment in the facility used to process and convert into electricity the energy derived from a recycled material fuel.

Sec. 2. NRS 361.0687 is hereby amended to read as follows:

361.0687 1. A person who intends to locate or expand a business in this state may, pursuant to NRS 360.750, apply to the commission on economic development for a partial abatement from the taxes imposed by this chapter.

2. For a business to qualify pursuant to NRS 360.750 for a partial abatement from the taxes imposed by this chapter, the commission on economic development must determine that, in addition to meeting the other requirements set forth in subsection 2 of that section:

(a) If the business is a new business in a county or city whose population is 50,000 or more:

(1) The business will make a capital investment in the county of at least $50,000,000 if the business is an industrial or manufacturing business or at least $5,000,000 if the business is not an industrial or manufacturing business; and

(2) The average hourly wage that will be paid by the new business to its employees in this state is at least 100 percent of the average statewide hourly wage as established by the employment security division of the department of employment, training and rehabilitation on July 1 of each fiscal year.

(b) If the business is a new business in a county or city whose population is less than 50,000:

(1) The business will make a capital investment in the county of at least $5,000,000 if the business is an industrial or manufacturing business or at least $500,000 if the business is not an industrial or manufacturing business; and

3. [If] Except as otherwise provided in NRS 361.0685 and subsection 4, if a partial abatement from the taxes imposed by this chapter is approved by the commission on economic development pursuant to NRS 360.750:

(a) The partial abatement must:

(1) Be for a duration of at least 1 year but not more than 10 years;

(2) Not exceed 50 percent of the taxes on personal property payable by a business each year pursuant to this chapter; and

(3) Be administered and carried out in the manner set forth in NRS 360.750.

4. If a partial abatement from the taxes imposed by this chapter is approved by the commission on economic development pursuant to NRS 360.750 for a facility for the generation of electricity from renewable energy:

(a) The partial abatement must be:

(1) For a duration of 10 years;

(2) Equal to 50 percent of the taxes on real and personal property payable by the facility each year pursuant to this chapter; and

(3) Administered and carried out in the manner set forth in NRS 360.750.

(b) The executive director of the commission on economic development shall:

(1) Notify the county assessor of the county in which the facility is located of the approval of the partial abatement; and

(2) Advise the county assessor of the county in which the facility is located as to the dates on which the partial abatement will begin and end.

5. As used in this section:

(a) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

(1) Agricultural crops and agricultural wastes and residues;

(2) Wood and wood wastes and residues;

(3) Animal wastes;

(4) Municipal wastes; and

(5) Aquatic plants.

(b) “Facility for the generation of electricity from renewable energy” means a facility for the generation of electricity that:

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

(2) Has a generating capacity of at least 10 kilowatts.

The term includes all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity. The term does not include a facility that is located on residential property.

(c) “Industrial or manufacturing business” does not include a facility for the generation of electricity from renewable energy.

(d) “Renewable energy” means:

(1) Biomass;

(2) Solar energy; or

(3) Wind.

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

Sec. 3. NRS 361.0687 is hereby amended to read as follows:

(a) If the business is a new business in a county or city whose population is 50,000 or more:

(b) If the business is a new business in a county or city whose population is less than 50,000:

3. [If] Except as otherwise provided in NRS 361.0685, if a partial abatement from the taxes imposed by this chapter is approved by the commission on economic development pursuant to NRS 360.750:

(a) The partial abatement must:

(1) Be for a duration of at least 1 year but not more than 10 years;

(2) Not exceed 50 percent of the taxes on personal property payable by a business each year pursuant to this chapter; and

(3) Be administered and carried out in the manner set forth in NRS 360.750.

Sec. 4. NRS 361.079 is hereby amended to read as follows:

361.079 1. Except as otherwise provided in subsection 2, for any assessment made on or after July 1, 1983, any value added by a qualified system must be excluded from the assessed value of the building regardless of the date the system was installed.

2. Value added by a qualified system must not be excluded from the assessed value of a commercial or industrial building during any period in which the business that owns the commercial or industrial building is receiving another abatement or exemption from the taxes imposed by this chapter.

3. As used in this section, “qualified system” means any system, method, construction, installation, machinery, equipment, device or appliance which is designed, constructed or installed in a residential, commercial or industrial building to heat or cool the building or water used in the building, or to provide electricity used in the building, by using:

(a) Energy from the wind or from solar devices not thermally insulated from the area where the energy is used;

(b) Geothermal resources;

(d) [Water power,]Waterpower,

which conforms to standards established by regulation of the department.

[2. For any assessment made on or after July 1, 1983, any value added by a qualified system must be excluded from the assessed value of the building regardless of the date the system was installed.]

Sec. 5. NRS 374.357 is hereby amended to read as follows:

374.357 1. A person who maintains a business or intends to locate a business in this state may, pursuant to NRS 360.750, apply to the commission on economic development for an abatement from the taxes imposed by this chapter on the gross receipts from the sale, and the storage, use or other consumption, of eligible machinery or equipment for use by a business which has been approved for an abatement pursuant to NRS 360.750.

2. [If]Except as otherwise provided in subsection 3, if an application for an abatement is approved pursuant to NRS 360.750:

(a)The taxpayer is eligible for an abatement from the tax imposed by this chapter for not more than 2 years.

(b)The abatement must be administered and carried out in the manner set forth in NRS 360.750.

3. If an application for an abatement is approved pursuant to NRS 360.750 for a facility for the generation of electricity from renewable energy:

(a) The taxpayer is eligible for an abatement from the tax imposed by this chapter for 2 years.

(b) The abatement must be administered and carried out in the manner set forth in NRS 360.750.

4. As used in this section, unless the context otherwise requires [, “eligible]:

(a) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

(1) Agricultural crops and agricultural wastes and residues;

(2) Wood and wood wastes and residues;

(3) Animal wastes;

(4) Municipal wastes; and

(5) Aquatic plants.

(b) “Eligible machinery or equipment” means :

(1) If the business that qualifies for the abatement is not a facility for the generation of electricity from renewable energy, machinery or equipment for which a deduction is authorized pursuant to 26 U.S.C. § 179. The term does not include:

[(a)] (I) Buildings or the structural components of buildings;

[(b)] (II) Equipment used by a public utility;

[(c)] (III) Equipment used for medical treatment;

[(d)] (IV) Machinery or equipment used in mining; or

[(e)] (V) Machinery or equipment used in gaming.

(2) If the business that qualifies for the abatement is a facility for the generation of electricity from renewable energy, all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity.

(c) “Facility for the generation of electricity from renewable energy” means a facility for the generation of electricity that:

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

(2) Has a generating capacity of at least 10 kilowatts.

(d) “Fuel cell” means a device or contrivance which, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

(e) “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

(1) Biomass;

(2) Fuel cells;

(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.

Sec. 6. NRS 231.139 is hereby amended to read as follows:

231.139 1. The commission on economic development shall certify a business for the benefits provided pursuant to NRS 704.223 if the commission finds that:

(a) The business is consistent with the state plan for industrial development and diversification and any guidelines adopted pursuant to the plan;

(b) The business is engaged in the primary trade of preparing, fabricating, manufacturing or otherwise processing raw material or an intermediate product through a process in which at least 50 percent of the material or product is recycled on site;

(d) The economic benefit to the state of approving the certification exceeds the cost to the state.

2. [The commission on economic development shall certify a business for the benefits provided pursuant to NRS 361.0685 if the commission finds that:

(a) The business is consistent with the state plan for industrial development and diversification and any guidelines adopted pursuant to the plan;

(b) Establishing the business will require the business to make a capital investment of $15,000,000 in Nevada; and

3.] The commission on economic development may:

(a) Request an allocation from the contingency fund pursuant to NRS 353.266, 353.268 and 353.269 to cover the costs incurred by the commission pursuant to this section and NRS 704.032.

(b) Impose a reasonable fee for an application for certification pursuant to this section to cover the costs incurred by the commission in investigating and ruling on the application.

Sec. 7. NRS 361.0785 is hereby repealed.

Sec. 8. 1. Except as otherwise provided in this section, notwithstanding subsection 2 of section 9 of this act, if the commission on economic development, during the period from July 1, 2001, through June 30, 2006, grants a partial abatement of tax pursuant to NRS 360.750 for a facility for the production of electricity from renewable energy and the partial abatement is for the tax imposed pursuant to:

(a) Chapter 361 of NRS, the duration of the partial abatement must be 10 years and the terms and conditions of the partial abatement must be as set forth in NRS 361.0687, as amended by section 2 of this act.

(b) Chapter 374 of NRS, the duration of the partial abatement must be 2 years and the terms and conditions of the partial abatement must be as set forth in NRS 374.357, as amended by section 5 of this act.

2. The provisions of subsection 1 do not prevent the commission on economic development, the department of taxation or the Nevada tax commission from exercising any enforcement authority provided by law to ensure that the facility for which the abatement was granted continues to be operated in a manner that is consistent with the terms and conditions pursuant to which the abatement was granted.

3. As used in this section, “facility for the generation of electricity from renewable energy”:

(a) For the purposes of the partial abatement described in NRS 361.0687, has the meaning ascribed to it in section 2 of this act.

(b) For the purposes of the partial abatement described in NRS 374.357, has the meaning ascribed to it in section 5 of this act.

Sec. 9. 1. This section and sections 1, 2 and 4 to 8, inclusive, of this act become effective on July 1, 2001.

2. Sections 2 and 5 of this act expire by limitation on June 30, 2006.

3. Section 3 of this act becomes effective on July 1, 2006.

TEXT OF REPEALED SECTION

361.0785 Exemption of property used as facility for production of electrical energy from solar energy.

1. Except as otherwise provided in this section, all property, both real and personal, is exempt from taxation as set forth in this section to the extent that the property is used as a facility for the production of electrical energy from solar energy.

2. Personal property exempted pursuant to subsection 1 may not receive an exemption for more than 10 consecutive years.

3. Real property exempted pursuant to subsection 1 may not receive an exemption for more than 20 consecutive years.

4. The provisions of this section do not apply to:

(a) Residential property; and

(b) Property that is used as a facility for the production of electrical energy from solar energy before July 1, 1997.

5. As used in this section, “facility for the production of electrical energy from solar energy” means a facility which uses solar energy as its primary fuel in the production of electricity. The term includes all the equipment in the facility used to collect, store and convert into electricity the energy derived from solar energy.”.

Amend the title of the bill to read as follows:

“AN ACT relating to taxation; revising the requirements for certain property of recycling businesses to be exempt from taxation; revising, for a limited period, certain partial abatements from taxation for facilities for the generation of electricity from renewable energy; repealing the provisions that exempt from taxation certain property of businesses that use a facility for the production of electrical energy from solar energy; and providing other matters properly relating thereto.”.

Senator McGinness moved the adoption of the amendment.

Remarks by Senator McGinness.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 381.

Bill read second time.

The following amendment was proposed by the Committee on Taxation:

Amendment No. 580.

Amend section 1, page 1, line 5, by deleting: “customers [.] at retail.” and inserting “customers.”.

Amend section 1, page 1, line 9, after “3.” by inserting: “Ultimate consumer” means a person who purchases a product made from tobacco, other than cigarettes, for his household or personal use and not for resale.

4.”.

Amend section 1, page 1, by deleting lines 15 and 16 and inserting: “products.

4.] :

(a) Brings or causes to be brought into this state products made from”.

Amend section 1, page 1, line 18, by deleting “another” and inserting “a”.

Amend section 1, page 2, by deleting line 2 and inserting: “ultimate consumers; or”.

Amend section 1, page 2, line 3, by deleting “Acquires” and inserting “Purchases”.

Amend section 1, page 2, line 6, by deleting “4.” and inserting “5.”.

Amend section 1, page 2, by deleting lines 7 through 16 and inserting:

“(a) Except as otherwise provided in paragraph (b), the established price for which a manufacturer sells a product made from tobacco, other than cigarettes, to a wholesale dealer before any discount or other reduction is made.

(b) For a product made from tobacco, other than cigarettes, sold to a retail dealer or an ultimate consumer by a wholesale dealer described in paragraph (b) of subsection 3, the established price for which the product is sold to the retail dealer or ultimate consumer before any discount or other reduction is made.”.

Amend the bill as a whole by deleting sec. 2, renumbering sec. 3 as sec. 8 and adding new sections designated sections 2 through 7, following section 1, to read as follows:

“Sec. 2. NRS 370.450 is hereby amended to read as follows:

370.450 1. Except as otherwise provided in subsection 2, there is hereby imposed upon the purchase or possession of products made from tobacco, other than cigarettes, by a customer in this state a tax of 30 percent of the wholesale price of those products.

2. The provisions of subsection 1 do not apply to those products which are [:

(a) Shipped] shipped out of the state for sale and use outside the state . [; or

(b) Displayed or exhibited at a trade show, convention or other exhibition in this state by a manufacturer or wholesale dealer who is not licensed in this state.]

3. This tax must be collected and paid by the wholesale dealer to the department [before] , in accordance with the provisions of NRS 370.465, after the sale or distribution of those products [to the customer.] by the wholesale dealer. The wholesale dealer is entitled to retain 2 percent of the taxes collected to cover the costs of collecting and administering the taxes.

4. Any wholesale dealer who sells or distributes any of those products without [first] paying the tax provided for by this section is guilty of a misdemeanor.

Sec. 3. NRS 370.460 is hereby amended to read as follows:

370.460 It is unlawful for any person to sell or offer to sell any products made from tobacco, other than cigarettes, on which the tax [has not been] is not paid as provided for in NRS 370.450.

Sec. 4. NRS 370.465 is hereby amended to read as follows:

370.465 1. A wholesale dealer [or retail dealer] shall, not later than 20 days after the end of each month, submit to the department [:

(a) A list] a report on a form prescribed by the department setting forth each [purchase] sale of products made from tobacco, other than cigarettes, that [he] the wholesale dealer made during the previous month . [; and

(b) A copy of the invoice for each such purchase that is required to be provided to him pursuant to NRS 370.470.

2. The department shall maintain a record of the invoices for not less than 3 years after the receipt of those invoices.]

2. Each report submitted pursuant to this section on or after August 20, 2001, must be accompanied by the tax owed pursuant to NRS 370.450 for products made from tobacco, other than cigarettes, that were sold by the wholesale dealer during the previous month.

3. The department may impose a penalty on a wholesale dealer [or retail dealer] who violates any of the provisions of [subsection 1] this section as follows:

(a) For the first violation within 7 years, a fine of $1,000.

(b) For a second violation within 7 years, a fine of $5,000.

(c) For a third or subsequent violation within 7 years, revocation of the license of the wholesale dealer . [or retail dealer.]

Sec. 5. NRS 370.470 is hereby amended to read as follows:

370.470 [1.] A wholesale dealer must obtain from each manufacturer or wholesale dealer who is not licensed in this state itemized invoices of all products made from tobacco, other than cigarettes, purchased from and delivered by the manufacturer or wholesale dealer who is not licensed in this state. The wholesale dealer must obtain from the manufacturer or wholesale dealer who is not licensed in this state separate invoices for each purchase made. The invoice must include:

[(a)] 1. The name and address of the manufacturer or wholesale dealer who is not licensed in this state;

[(b)] 2. The name and address of the wholesale dealer;

[(c)] 3. The date of the purchase; and

[(d)] 4. The quantity and wholesale price of those products.

[2. A retail dealer must obtain from each manufacturer or wholesale dealer who is not licensed in this state itemized invoices of all products made from tobacco, other than cigarettes, purchased from and delivered by that manufacturer or wholesale dealer. The retail dealer must obtain from the manufacturer or wholesale dealer who is not licensed in this state separate invoices for each purchase made. The invoice must include:

(a) The name and address of the manufacturer or wholesale dealer who is not licensed in this state;

(b) The name and address of the retail dealer;

(d) The quantity and wholesale price of those products.]

Sec. 6. NRS 370.480 is hereby amended to read as follows:

370.480 1. Every wholesale dealer must keep at his place of business complete and accurate records for that place of business, including copies of all invoices of products made from tobacco, other than cigarettes, which he holds, purchases and delivers , distributes or sells in this state. All records must be preserved for at least 3 years after the date of purchase or after the date of the last entry made on the record.

2. Every retail dealer shall keep at his place of business complete and accurate records for that place of business, including copies of all itemized invoices or purchases of such products purchased and delivered from wholesale dealers. The invoices must show the name and address of the wholesale dealer and the date of the purchase. All records must be preserved for at least 3 years after the date of the purchase.

Sec. 7. NRS 370.490 is hereby amended to read as follows:

370.490 1. The department shall allow a credit of 30 percent of the wholesale price, less a discount of 2 percent for the services rendered in collecting the tax, for products made from tobacco, other than cigarettes, upon which the tax has been paid pursuant to NRS 370.450 and that may no longer be sold. If the products have been purchased and delivered, a credit memo of the manufacturer is required for proof of returned merchandise.

2. A credit must also be granted for any products made from tobacco, other than cigarettes, shipped from this state and destined for retail sale and consumption outside the state on which the tax has previously been paid. A duplicate or copy of the invoice is required for proof of the sale outside the state.

3. A wholesale dealer may claim a credit by filing with the department the proof required by this section. The claim must be made on a form prescribed by the department.”.

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

“Sec. 9. 1. Notwithstanding the provisions of NRS 370.450, as amended by section 2 of this act, and NRS 370.465, as amended by section 4 of this act, a wholesale dealer is not required to pay any tax or report any sales or purchases with respect to products made from tobacco, other than cigarettes, if the purchase of such products was reported to the department of taxation pursuant to NRS 370.465 as a purchase made before July 1, 2001, and the appropriate tax was remitted to the department with respect to that purchase as required by NRS 370.450.

2. As used in this section, “wholesale dealer” has the meaning ascribed to it in NRS 370.440, as amended by section 1 of this act.”.

Amend the title of the bill, third line, after “cigarettes;” by inserting: “requiring the payment of the tax after the sale of the products by a wholesale dealer; abolishing the exemption provided for such products that are displayed or exhibited at a trade show, convention or other exhibition by a manufacturer or wholesale dealer who is not licensed in this state;”.

Amend the summary of the bill to read as follows:

“SUMMARY—Makes various changes to provisions governing tax on products made from tobacco, other than cigarettes. (BDR 32-818)”.

Senator McGinness moved the adoption of the amendment.

Remarks by Senator McGinness.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Assembly Bill No. 580.

Bill read second time and ordered to third reading.

GENERAL FILE AND THIRD READING

Senate Bill No. 122.

Bill read third time.

Roll call on Senate Bill No. 122:

Yeas—19.

Nays—None.

Not Voting—Neal, Raggio—2.

Senate Bill No. 122 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 197.

Bill read third time.

Roll call on Senate Bill No. 197:

Yeas—21.

Nays—None.

Senate Bill No. 197 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 245.

Bill read third time.

Roll call on Senate Bill No. 245:

Yeas—21.

Nays—None.

Senate Bill No. 245 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 267.

Bill read third time.

Roll call on Senate Bill No. 267:

Yeas—21.

Nays—None.

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

Bill ordered transmitted to the Assembly.

Senate Bill No. 289.

Bill read third time.

Roll call on Senate Bill No. 289:

Yeas—21.

Nays—None.

Senate Bill No. 289 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 301.

Bill read third time.

Roll call on Senate Bill No. 301:

Yeas—21.

Nays—None.

Senate Bill No. 301 having received a two-thirds majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 302.

Bill read third time.

Remarks by Senators Neal, Rawson and Porter.

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

Senator Neal:

Thank you, Madam President. I have a question to ask about this bill. Why are we removing the requirements that the hospitals can serve indigent people? This particular bill repeals the requirement that the hospitals are not obligated to serve indigent individuals.

Senator Rawson:

Thank you, Madam President. As part of the 1987 language that was placed into the law regarding hospitals, there was a provision to try to stop the widespread process of dumping that was going on. We had private hospitals that were dumping patients to the public hospitals, particularly in Clark County. There was law developed around that issue to require that hospitals see indigent patients and see a certain percentage of patients before they could be paid. The situation has changed radically. Now, we have the reverse situation with divert going on, and the need simply isn’t the same anymore. Additionally, the committee had the discussion of dropping the requirement that so many indigent patients be seen before they could be paid. That simply is a policy discussion. The committee did not feel it was necessary to treat indigents for free as a requirement to do business in Nevada. My sense of it, now, is that the hospitals are actually competing for the indigent patients that have a payment source such as Medicaid or the county fund. It is no longer necessary to have that requirement in the bill.

Senator Neal:

Thank you, Madam President. There is another requirement in here that you are setting a standard of a minimum payment for the county to those hospitals who treat indigent patients. Why is that?

Senator Rawson:

Thank you, Madam President. There are different standards set in different parts of the State. This simply brings it to a number that is indexed to something. The standard pick was the Medicaid rate, which typically is 37 percent of the billed charge. They have to be able to meet their expenses, and that is actually calculated by the federal government on a yearly basis. That rate is established. It is a standard that we can go to. If we do not have a standard, the State would be faced with either trying to set that rate or having different rates in different hospitals. What can happen is we can have people who are providing care that are not being adequately compensated for it; that is then shifted into other peoples’ bills, into other insurance contracts. It is one of the cost-shifting issues that throw our whole health care market out of whack. This was simply a means to try and tie the rate to something that was a known rate—that is an established low rate. We did not pick a high rate, and the high rate is verifiable; that was the reason for it, to standardize. Washoe County already has accepted the Medicaid rate and Clark County uses a different rate. Because Clark County compensates University Medical Center at a higher rate, we wrote this in such a way that the minimum rate would be established, but they can still compensate University Medical Center at higher than that minimum rate. They have to use the minimum rate for everyone, but they can use a higher rate for the county facilities.

Senator Neal:

In my judgment, this legislation does a disservice to the poor who happen to become ill and should need hospital care. As I understand it, the repeal section of this particular bill, is eliminating requirements for hospitals to accept indigent patients, not meaning, of course, UMC (University Medical Center) which is a public hospital and has to do that. This will lead to patient dumping at UMC. These other hospitals will no longer have a requirement to do anything for the indigent. If they are not getting paid, they can send them somewhere else. We put the law on the books some years ago because we were having problems with patient dumping. This is going to lead back to that. The poor are going to suffer as a result. I can recall last summer when UMC was filled with patients and a lot of them were tourists who took advantage of the care at UMC. The poor individuals could not receive hospital care at that establishment. As a result, the other hospitals, Valley, Sunrise and other hospitals in that area, will, now under law, be able to turn those patients away and not treat them. I think this is bad public policy. It is a reversal of what we have done some years ago.

Senator Porter:

To the Chairman of Human Resources and Facilities, what impact will this have on the hospitals, such as Boulder City, Saint Rose di Lima and other providers, the smaller hospitals?

Senator Rawson:

Thank you, Madam President. I would like to make some general remarks in response and then try to answer the specific question.

What this does is the reverse of what has been stated. We have had a requirement that hospitals take six-tenths of their net revenue in patients and treat them free. The hospitals, other than the University Medical Center, have met that requirement and no more. There is no advantage to do so. The only reason they have done that is so they are not fined and not punished. What this actually does is remove that free requirement and say that a poor patient can, now, go to Sunrise Hospital, Lake Mead Hospital or Rose di Lima Hospital. If they are indigent, then their care will be paid by the county. It does, probably, put some burden on the county indigent fund, but now, for the first time, any hospital in the valley is available to these people. They can go, not only to the hospital that they are close to but they can go to the hospital they prefer, where they may feel there is better care in a specific hospital. They will not be turned away because they have no payment source. Now, there is a payment source, the county. That only works to the extent that there is money available. It doesn’t obligate the county beyond the size of the fund. But it does open up that fund. Lake Mead Hospital, Rose di Lima Hospital and Boulder City Hospital won’t have that burden of indigent care that they are writing off and to try to find funds from somewhere else to cover their expenses by covering their basic expenses. It should make these hospitals more viable. I do not expect a negative effect upon them. When it comes to the amount of care that is given, 60 percent, at least, of this indigent care is provided by UMC. Probably 35 or 40 percent, or close to that, is provided by Lake Mead Hospital, which is not being compensated for that at this point. That hospital performs the same function as UMC in North Las Vegas. It simply isn’t appropriate to have that mix of care go there without any compensation. Ultimately, I think this is fair. It is better for the people who have no payment source. I really see it as sunshine, opening it up. It is a freer opportunity for everyone.

Senator Neal:

If I may ask the Senator just one more question. What happens when the fund is expended and there is not any money? What happens to the patient? Will they be treated then by the various hospitals under this proposal?

Senator Rawson:

You can ask the same thing about what happens now. What happens to a patient that goes into a hospital without a payment source? Any patient that shows up at a UMC Quick Care Center without a payment source is referred out of there. Any patient that goes into any hospital that doesn’t have a payment source isn’t an attractive patient for that institution. I don’t care who they are. Rose di Lima Hospital and UMC Hospital have a mission. There are places where people can be treated. The problem is that we are short of beds in southern Nevada right now. At any particular time, any time of year, any one of those hospitals may be on divert. But there are still divert laws in place, and if a patient is taken to one of those hospitals with an emergency condition, there is still an obligation by law to treat them regardless of their payment source. I won’t say this solves all of the problems because we need more beds and competition, but this goes a long way to opening up the doors to people who simply had no other access to those facilities before.

Roll call on Senate Bill No. 302:

Yeas—17.

Nays—Carlton, Coffin, Neal—3.

Not Voting—Titus.

Senate Bill No. 302 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 349.

Bill read third time.

Roll call on Senate Bill No. 349:

Yeas—21.

Nays—None.

Senate Bill No. 349 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 371.

Bill read third time.

Senator Rawson moved that Senate Bill No. 371 be re-referred to the Committee on Finance.

Remarks by Senator Rawson.

Motion carried.

Senate Bill No. 396.

Bill read third time.

The following amendment was proposed by Senator McGinness:

Amendment No. 610.

Amend the bill as a whole by deleting sec. 3 and inserting:

“Sec. 3. (Deleted by amendment.)”.

Amend the title of the bill, second and third lines, by deleting: “prohibiting a person from driving a vehicle in an imprudent or careless manner;”.

Senator McGinness moved the adoption of the amendment.

Remarks by Senators McGinness and O'Donnell.

Amendment adopted.

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

Senate Bill No. 416.

Bill read third time.

Roll call on Senate Bill No. 416:

Yeas—14.

Nays—Amodei, Care, Carlton, James, Mathews, Titus, Wiener—7.

Senate Bill No. 416 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 489.

Bill read third time.

Roll call on Senate Bill No. 489:

Yeas—21.

Nays—None.

Senate Bill No. 489 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 513.

Bill read third time.

Remarks by Senators Carlton, James, Townsend, Neal and Raggio.

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

Senator Carlton:

Testimony indicated that confusion has arisen in some judicial proceedings regarding whether all occupational regulatory bodies have statutory authority to recover costs and attorney’s fees incurred in connection with disciplinary proceedings. This is because some of the chapters only refer to recovering costs and some use language specifically mentioning costs and attorney’s fees.

On occasion the courts have interpreted the use of the term “costs” when it appears without the corresponding reference to attorney’s fees to indicate a legislative intent to limit these bodies to administrative costs alone and not allow the recovery of attorney’s fees. However, the use of the term “costs” was always meant to include attorney’s fees as well. In more recent years, when newer occupational regulatory bodies were created, our drafting language has been more precise, and we have started, specifically, referring to all of the elements of “cost” which does include attorney’s fees.

Attorney’s fees and disciplinary cases can be quite large. Proponents testified that unless the language granting occupational regulatory bodies the authority to recover all the costs and attorney’s fees associated with successful disciplinary proceedings is clarified, some of the bodies, especially the smaller ones, may not be able to afford to discipline violators. In such an event, the regulatory body would not be able to discharge their primary function, which is to protect the public.

The bill merely clarifies the legislative intent that all occupational regulatory bodies are authorized to recover costs, including attorney’s fees. There is no rational basis for allowing some bodies to collect all costs and fees while limiting others to administrative costs alone.

Senator James:

Thank you, Madam President. I didn’t get a chance to look at this as carefully as the committee, but please tell me how this process works? It looks like there is more here than just adding attorney’s fees to the ability to recover attorney’s fees and costs. It looks like a procedure for determining a disciplinary action, and then there is an award of costs. How does this work? How do you get the award of attorney’s fees and costs? Is it reduced to a judgment? Do you have an appeal right with the court?

Senator Townsend:

The bill stemmed from an issue that has occurred with a number of licensing boards where, in fact, there were sealed disciplinary actions and the purpose of the board, as you know, is to protect the public, not the licensee. An issue became so egregious on behalf of the public that the committee believes there should be no sealed agreements and that all disciplinary actions should be made public. It came to our attention, during those proceedings, that over the course of 32 boards that come in front of us, various approaches to this issue were used. We made all licensing boards consistent in the requirements for their investigations in the requirements to have all public debate on the disciplinary action and any action provided by that board to be made in public and to make it public.

This makes all licensing boards consistent in the prohibition of closed disciplinary actions. Additionally, the bill clarifies the process by which you recover your costs in a disciplinary proceeding. It includes court fees and attorney’s fees. If you appeal and go to district court, then you make that argument in front of the court. But attorney’s fees and all costs of the board can be awarded so licensees are not penalized when the board disciplines one of the other licensees.

Senator James:

Thank you, Madam President. Could I ask a member of the committee, or the Chairman, what the policy is behind the requirement that if there is a consent agreement that, at least, it take place in a public meeting and that the consent agreement has to become a public record.

Senator Townsend:

Thank you, Madam President. This policy has been debated in front of this committee in a bi-partisan fashion, and the members of the public are the single most important part of the regulatory process. At no time should a licensee’s rights supersede the protection of the public if, in fact, a disciplinary action took place. The investigation is not public. Many investigations prove to be fruitless. As a result, the committee felt strongly that any time there is a consent decree entered into, or a disciplinary action taken, the public has a right to know to protect the public interest.

Senator James:

Thank you, Madam President. I would further ask if there is a case where there has been a disciplinary action or there has been a proceeding, and then there is an award of attorney’s fees, is there then a provision in every case that the person can appeal the determination to the court whether it is the disciplinary action itself or also the award of attorney’s fees?

Senator Townsend:

Thank you, Madam President. The appeal process has not changed under this bill. You still have the right to appeal not only the decision but the award of attorney’s fees.

Senator Raggio:

I have to acknowledge that I have not had the opportunity to really look through this bill, but the explanation was given that it only applied to attorney’s fees and costs. In looking at the bill, it goes further. It seems to be largely an effort to make everything a public record, determining when it is connected with the disciplinary action of boards. As an example, in the case of attorneys, in many instances, historically, private reprimands have been given because they did not necessarily impact the public. They were given as guidance. If I understand what you are saying, this bill, for example, even with the State Bar Association, would preclude any private reprimand being given?

Senator Townsend:

Thank you, Madam President. The question is an excellent one. Neither the committee nor the bill has jurisdiction over the bar association. The bill deals only with professional licensing boards. In answer to your question, the remarks read by the committee member from southern Nevada were, specifically, to make sure that if anyone came back to review the record, we would have it on record what, in fact, costs meant.

The bill brings all licensing boards for professions up to a common code of conduct. It says about half our boards have prohibitions against private reprimands or private disciplinary actions. When we came upon one that did not, and a disciplinary action was taken, it was an egregious situation in which the person who made the complaint was not going to find out about the discipline. Therefore, other persons using those professional services would not know that a licensee had a severe reprimand, and it was sealed. We feel that policy is a bad one. Most of these professions are health care professions. The investigation remains private until the board makes a determination, then the action would be made public.

Senator Raggio moved that Senate Bill No. 513 be taken from the General File and placed on the General File for the next legislative day.

Remarks by Senator Raggio.

Motion carried.

Senate Bill No. 531.

Bill read third time.

Remarks by Senators Rhoads and Neal.

Senator Rhoads moved that Senate Bill No. 531 be taken from the General File and placed on the Secretary’s desk.

Remarks by Senator Rhoads.

Motion carried.

Senate Bill No. 541.

Bill read third time.

Roll call on Senate Bill No. 541:

Yeas—21.

Nays—None.

Senate Bill No. 541 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 552.

Bill read third time.

Roll call on Senate Bill No. 552:

Yeas—21.

Nays—None.

Senate Bill No. 552 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 565.

Bill read third time.

Roll call on Senate Bill No. 565:

Yeas—21.

Nays—None.

Senate Bill No. 565 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Joint Resolution No. 12.

Resolution read third time.

Roll call on Senate Joint Resolution No. 12:

Yeas—21.

Nays—None.

Senate Joint Resolution No. 12 having received a constitutional majority, Madam President declared it passed, as amended.

Resolution ordered transmitted to the Assembly.

Assembly Bill No. 162.

Bill read third time.

Remarks by Senators Neal and Care.

Roll call on Assembly Bill No. 162:

Yeas—20.

Nays—Neal.

Assembly Bill No. 162 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 176.

Bill read third time.

Roll call on Assembly Bill No. 176:

Yeas—21.

Nays—None.

Assembly Bill No. 176 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 293.

Bill read third time.

Roll call on Assembly Bill No. 293:

Yeas—21.

Nays—None.

Assembly Bill No. 293 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 441.

Bill read third time.

Roll call on Assembly Bill No. 441:

Yeas—21.

Nays—None.

Assembly Bill No. 441 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Joint Resolution No. 1.

Resolution read third time.

Roll call on Assembly Joint Resolution No. 1:

Yeas—21.

Nays—None.

Assembly Joint Resolution No. 1 having received a constitutional majority, Madam President declared it passed.

Resolution ordered transmitted to the Assembly.

Assembly Joint Resolution No. 4.

Resolution read third time.

Roll call on Assembly Joint Resolution No. 4:

Yeas—21.

Nays—None.

Assembly Joint Resolution No. 4 having received a constitutional majority, Madam President declared it passed.

Resolution ordered transmitted to the Assembly.

SECOND READING AND AMENDMENT

Senate Bill No. 44.

Bill read second time.

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

Amendment No. 486.

Amend sec. 6, page 2, line 30, by deleting “[$150,000,000] $250,000,000” and inserting “$150,000,000”.

Amend sec. 6, page 2, line 31, by deleting “[$150,000,000] $250,000,000” and inserting “$150,000,000”.

Senator Schneider moved the adoption of the amendment.

Remarks by Senator Schneider.

Conflict of interest declared by Senators James, Raggio and Porter.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 83.

Bill read second time.

The following amendment was proposed by the Committee on Judiciary:

Amendment No. 612.

Amend the bill as a whole by deleting sections 1 through 5 and adding new sections designated sections 1 through 11, following the enacting clause, to read as follows:

“Section 1. Chapter 115 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.

Sec. 2. “Agricultural real property” has the meaning ascribed to it in NRS 361A.020.

Sec. 3. “Homestead” means the property consisting of:

1. A quantity of land, together with the dwelling house thereon and its appurtenances;

2. A mobile home whether or not the underlying land is owned by the claimant; or

3. A unit, whether real or personal property, existing pursuant to chapter 116 or 117 of NRS, with any appurtenant limited common elements and its interest in the common elements of the common-interest community,

to be selected by the husband and wife, or either of them, or a single person claiming the homestead.

Sec. 4. For the purposes of this chapter, the county assessor of the county in which a homestead is wholly or predominantly located has the final authority in determining whether real property upon which a dwelling and its appurtenances are located is agricultural real property that qualifies for agricultural use assessment pursuant to chapter 361A of NRS. The determination of the county assessor with respect to the matters described in this section is not appealable.

Sec. 5. NRS 115.005 is hereby amended to read as follows:

115.005 As used in this chapter, unless the context otherwise requires [:

1. “Equity” means the amount that is determined by subtracting from the fair market value of the property, the value of any liens excepted from the homestead exemption pursuant to subsection 3 of NRS 115.010.

2. “Homestead” means the property consisting of:

(a) A quantity of land, together with the dwelling house thereon and its appurtenances;

(b) A mobile home whether or not the underlying land is owned by the claimant; or

(c) A unit, whether real or personal property, existing pursuant to chapter 116 or 117 of NRS, with any appurtenant limited common elements and its interest in the common elements of the common-interest community,

to be selected by the husband and wife, or either of them, or a single person claiming the homestead.], the words and terms defined in sections 2 and 3 of this act have the meanings ascribed to them in those sections.

Sec. 6. NRS 115.010 is hereby amended to read as follows:

115.010 1. The homestead is not subject to forced sale on execution or any final process from any court, except as otherwise provided by subsections 2, 3 and 5.

2. The exemption provided in subsection 1 [extends] :

(a) Extends only to [that amount of equity in the property held by the claimant which does not exceed $125,000 in value,] :

(1) If the land on which the dwelling and its appurtenances are located does not include any agricultural real property that qualifies for agricultural use assessment pursuant to chapter 361A of NRS:

(I) The dwelling;

(II) The appurtenances of the dwelling; and

(III) A quantity of appurtenant land not to exceed 1 acre in size; or

(2) If the land on which the dwelling and its appurtenances are located includes agricultural real property that qualifies for agricultural use assessment pursuant to chapter 361A of NRS:

(I) The dwelling;

(II) The appurtenances of the dwelling;

(III) A quantity of appurtenant land not to exceed 1 acre in size, regardless of whether that acre is agricultural real property that qualifies for agricultural use assessment pursuant to chapter 361A of NRS; and

(IV) An additional quantity of appurtenant land which is agricultural real property that qualifies for agricultural use assessment pursuant to chapter 361A of NRS, but in no event to exceed an additional 159 acres,

unless allodial title has been established and not relinquished, in which case the exemption provided in subsection 1 extends to [all equity in] the dwelling, its appurtenances and [the] any quantity of land on which [it is] the dwelling and its appurtenances are located.

(b) Does not extend to any buildings, structures or other improvements other than the dwelling and its appurtenances.

3. Except as otherwise provided in subsection 4, the exemption provided in subsection 1 does not extend to process to enforce the payment of obligations contracted for the purchase of the property, or for improvements made thereon, including any mechanic’s lien lawfully obtained, or for legal taxes, or for:

(a) Any mortgage or deed of trust thereon executed and given; or

(b) Any lien to which prior consent has been given through the acceptance of property subject to any recorded declaration of restrictions, deed restriction, restrictive covenant or equitable servitude, specifically including any lien in favor of an association pursuant to NRS 116.3116 or 117.070,

by both husband and wife, when that relation exists.

4. If allodial title has been established and not relinquished, the exemption provided in subsection 1 extends to process to enforce the payment of obligations contracted for the purchase of the property, and for improvements made thereon, including any mechanic’s lien lawfully obtained, and for legal taxes levied by a state or local government, and for:

(a) Any mortgage or deed of trust thereon; and

(b) Any lien even if prior consent has been given through the acceptance of property subject to any recorded declaration of restrictions, deed restriction, restrictive covenant or equitable servitude, specifically including any lien in favor of an association pursuant to NRS 116.3116 or 117.070,

unless a waiver for the specific obligation to which the judgment relates has been executed by all allodial titleholders of the property.

5. Establishment of allodial title does not exempt the property from forfeiture pursuant to NRS 179.1156 to 179.119, inclusive, or 207.350 to 207.520, inclusive.

6. Any declaration of homestead which has been filed before October 1, [1995,]2001, shall be deemed to have been amended on that date by extending the homestead exemption [commensurate with any increase in the amount of equity held by the claimant in the property selected and claimed for the exemption up to the amount permitted by law] to the fullest extent authorized pursuant to subsection 2 on that date, but the [increase] change does not impair the right of any creditor to execute upon the property when that right existed before October 1, [1995.]2001.

Sec. 7. NRS 115.020 is hereby amended to read as follows:

115.020 1. The selection must be made by either the husband or wife, or both of them, or the single person, declaring an intention in writing to claim the property as a homestead.

2. The declaration must state:

(a) When made by a married person or persons, that they or either of them are married, or if not married, that he or she is a householder.

(b) When made by a married person or persons, that they or either of them, as the case may be, are, at the time of making the declaration, residing with their family, or with the person or persons under their care and maintenance, on the premises, particularly describing the premises.

(c) When made by any claimant under this section, that it is their or his intention to use and claim the property as a homestead.

(d)Whether the homestead includes agricultural real property that qualifies for agricultural use assessment pursuant to chapter 361A of NRS and, if so, the quantity of acreage that qualifies for agricultural use assessment pursuant to chapter 361A of NRS.

3. The declaration must be signed by the person or persons making it, and acknowledged and recorded as conveyances affecting real property are required to be acknowledged and recorded. If the property declared upon as a homestead is the separate property of either spouse, both must join in the execution and acknowledgment of the declaration.

4. If a person solicits another person to allow the soliciting person to file a declaration of homestead on behalf of the other person and charges or accepts a fee or other valuable consideration for recording the declaration of homestead for the other person, the soliciting person shall, before the declaration is recorded or before the fee or other valuable consideration is charged to or accepted from the other person, provide that person with a notice written in bold type which states that:

(a) Except for the fee which may be charged by the county recorder for recording a declaration of homestead, a declaration of homestead may be recorded in the county in which the property is located without the payment of a fee; and

(b) The person may record the declaration of homestead on his own behalf.

The notice must clearly indicate the amount of the fee which may be charged by the county recorder for recording a declaration of homestead.

5. The rights acquired by declaring a homestead are not extinguished by the conveyance of the underlying property in trust for the benefit of the person or persons who declared it. A trustee may by similar declaration claim property, held by him, as a homestead for the settlor or for one or more beneficiaries of the trust, or both, if the person or persons for whom the claim is made reside on or in the property.

6. A person who violates the provisions of subsection 4 is guilty of a misdemeanor.

Sec. 8. NRS 115.050 is hereby amended to read as follows:

115.050 1. Whenever execution has been issued against the property of a party claiming the property as a homestead, and the creditor in the judgment makes an oath before the judge of the district court of the county in which the property is situated, that the amount of [equity]property held by the claimant [in the property] exceeds, to the best of the creditor’s information and belief, the [sum of $125,000,]amount allowed pursuant to subsection 2 of NRS 115.010, the judge shall, upon notice to the debtor, appoint three disinterested and competent persons [as appraisers] to estimate and report as to the amount of [equity]property held by the claimant ,[in the property,] and if the amount of [equity]property exceeds the [sum of $125,000,]amount allowed pursuant to subsection 2 of NRS 115.010, determine whether the property can be divided so as to leave the property subject to the homestead exemption without material injury.

2. If it appears, upon the report, to the satisfaction of the judge that the property can be thus divided, he shall order the excess to be sold under execution. If it appears that the property cannot be thus divided, and the amount of [equity]property held by the claimant [in the property] exceeds the [exemption allowed by this chapter,]amount allowed pursuant to subsection 2 of NRS 115.010, he shall order the entire property to be sold, and out of the proceeds the [sum of $125,000]following sums to be paid [to]

(a)To the defendant in execution, that portion of the proceeds allocable to the sale of the amount of property allowed pursuant to subsection 2 of NRS 115.010; and [the]

(b)The excess to be applied to the satisfaction on the execution. [No bid under $125,000 may be received by the officer making the sale.]

3. When the execution is against a husband or wife, the judge may direct [the $125,000]that portion of the proceeds described in paragraph (a) of subsection 2 to be deposited in court, to be paid out only upon the joint receipt of the husband and wife, and the deposit possesses all the protection against legal process and voluntary disposition by either spouse as did the original homestead.

Sec. 9. NRS 21.075 is hereby amended to read as follows:

21.075 1. Execution on the writ of execution by levying on the property of the judgment debtor may occur only if the sheriff serves the judgment debtor with a notice of the writ of execution pursuant to NRS 21.076 and a copy of the writ. The notice must describe the types of property exempt from execution and explain the procedure for claiming those exemptions in the manner required in subsection 2. The clerk of the court shall attach the notice to the writ of execution at the time the writ is issued.

2. The notice required pursuant to subsection 1 must be substantially in the following form:

NOTICE OF EXECUTION

YOUR PROPERTY IS BEING ATTACHED OR

YOUR WAGES ARE BEING GARNISHED

A court has determined that you owe money to ..........(name of person), the judgment creditor. He has begun the procedure to collect that money by garnishing your wages, bank account and other personal property held by third persons or by taking money or other property in your possession.

Certain benefits and property owned by you may be exempt from execution and may not be taken from you. The following is a partial list of exemptions:

1. Payments received under the Social Security Act.

2. Payments for benefits or the return of contributions under the public employees’ retirement system.

3. Payments for public assistance granted through the welfare division of the department of human resources.

4. Proceeds from a policy of life insurance.

5. Payments of benefits under a program of industrial insurance.

6. Payments received as unemployment compensation.

7. Veteran’s benefits.

8. A homestead in a dwelling or a mobile home, not to exceed [$125,000, unless:

(a) The judgment is for a medical bill, in which case all of the primary dwelling, including a mobile or manufactured home, may be exempt.

(b) Allodial title has been established and not relinquished for the dwelling or mobile home, in which case all of the dwelling or mobile home and its appurtenances are exempt, including the land on which they are located,] the amount allowed pursuant to subsection 2 of NRS 115.010, unless a valid waiver executed pursuant to [NRS 115.010] subsection 4 of that section is applicable to the judgment.

9. A vehicle, if your equity in the vehicle is less than $4,500.

10. Seventy-five percent of the take-home pay for any pay period, unless the weekly take-home pay is less than 30 times the federal minimum wage, in which case the entire amount may be exempt.

11. Money, not to exceed $500,000 in present value, held for retirement pursuant to certain arrangements or plans meeting the requirements for qualified arrangements or plans of sections 401 et seq. of the Internal Revenue Code ,[(] 26 U.S.C. §§ 401 et seq. [).]

12. All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support, education and maintenance of a child, whether collected by the judgment debtor or the state.

13. All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support and maintenance of a former spouse, including the amount of any arrearages in the payment of such support and maintenance to which the former spouse may be entitled.

14. A vehicle for use by you or your dependent which is specially equipped or modified to provide mobility for a person with a permanent disability.

15. A prosthesis or any equipment prescribed by a physician or dentist for you or your dependent.

These exemptions may not apply in certain cases such as a proceeding to enforce a judgment for support of a person or a judgment of foreclosure on a mechanic’s lien. You should consult an attorney immediately to assist you in determining whether your property or money is exempt from execution. If you cannot afford an attorney, you may be eligible for assistance through ..........(name of organization in county providing legal services to indigent or elderly persons).

PROCEDURE FOR CLAIMING EXEMPT PROPERTY

If you believe that the money or property taken from you is exempt, you must complete and file with the clerk of the court a notarized affidavit claiming the exemption. A copy of the affidavit must be served upon the sheriff and the judgment creditor within 8 days after the notice of execution is mailed. The property must be returned to you within 5 days after you file the affidavit unless you or the judgment creditor files a motion for a hearing to determine the issue of exemption. If this happens, a hearing will be held to determine whether the property or money is exempt. The motion for the hearing to determine the issue of exemption must be filed within 10 days after the affidavit claiming exemption is filed. The hearing to determine whether the property or money is exempt must be held within 10 days after the motion for the hearing is filed.

IF YOU DO NOT FILE THE AFFIDAVIT WITHIN THE TIME SPECIFIED, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE JUDGMENT CREDITOR, EVEN IF THE PROPERTY OR MONEY IS EXEMPT.

Sec. 10. NRS 21.090 is hereby amended to read as follows:

21.090 1. The following property is exempt from execution, except as otherwise specifically provided in this section:

(a) Private libraries not to exceed $1,500 in value, and all family pictures and keepsakes.

(b) Necessary household goods, as defined in 16 C.F.R. § 444.1(i) as that section existed on January 1, 1987, and yard equipment, not to exceed $3,000 in value, belonging to the judgment debtor to be selected by him.

(c) Farm trucks, farm stock, farm tools, farm equipment, supplies and seed not to exceed $4,500 in value, belonging to the judgment debtor to be selected by him.

(d) Professional libraries, office equipment, office supplies and the tools, instruments and materials used to carry on the trade of the judgment debtor for the support of himself and his family not to exceed $4,500 in value.

(e) The cabin or dwelling of a miner or prospector, his cars, implements and appliances necessary for carrying on any mining operations and his mining claim actually worked by him, not exceeding $4,500 in total value.

(f) Except as otherwise provided in paragraph (o), one vehicle if the judgment debtor’s equity does not exceed $4,500 or the creditor is paid an amount equal to any excess above that equity.

(g) For any pay period, 75 percent of the disposable earnings of a judgment debtor during that period, or for each week of the period 30 times the minimum hourly wage prescribed by section 6(a)(1) of the federal Fair Labor Standards Act of 1938 , 29 U.S.C. § 206(a)(1), and in effect at the time the earnings are payable, whichever is greater. Except as otherwise provided in paragraphs (n), (r) and (s), the exemption provided in this paragraph does not apply in the case of any order of a court of competent jurisdiction for the support of any person, any order of a court of bankruptcy or of any debt due for any state or federal tax. As used in this paragraph, “disposable earnings” means that part of the earnings of a judgment debtor remaining after the deduction from those earnings of any amounts required by law, to be withheld.

(h) All fire engines, hooks and ladders, with the carts, trucks and carriages, hose, buckets, implements and apparatus thereunto appertaining, and all furniture and uniforms of any fire company or department organized under the laws of this state.

(i) All arms, uniforms and accouterments required by law to be kept by any person, and also one gun, to be selected by the debtor.

(j) All courthouses, jails, public offices and buildings, lots, grounds and personal property, the fixtures, furniture, books, papers and appurtenances belonging and pertaining to the courthouse, jail and public offices belonging to any county of this state, all cemeteries, public squares, parks and places, public buildings, town halls, markets, buildings for the use of fire departments and military organizations, and the lots and grounds thereto belonging and appertaining, owned or held by any town or incorporated city, or dedicated by the town or city to health, ornament or public use, or for the use of any fire or military company organized under the laws of this state and all lots, buildings and other school property owned by a school district and devoted to public school purposes.

(k) All money, benefits, privileges or immunities accruing or in any manner growing out of any life insurance, if the annual premium paid does not exceed $1,000. If the premium exceeds that amount, a similar exemption exists which bears the same proportion to the money, benefits, privileges and immunities so accruing or growing out of the insurance that the $1,000 bears to the whole annual premium paid.

(l) The homestead as provided for by law, including a homestead for which allodial title has been established and not relinquished and for which a waiver executed pursuant to subsection 4 of NRS 115.010 is not applicable.

(m) The dwelling of the judgment debtor occupied as a home for himself and family, where the [amount of equity held by the judgment debtor in the home does not exceed $125,000 in value and the] dwelling is situate upon lands not owned by him.

(n) All property in this state of the judgment debtor where the judgment is in favor of any state for failure to pay that state’s income tax on benefits received from a pension or other retirement plan.

(o) Any vehicle owned by the judgment debtor for use by him or his dependent that is equipped or modified to provide mobility for a person with a permanent disability.

(p) Any prosthesis or equipment prescribed by a physician or dentist for the judgment debtor or a dependent of the debtor.

(q) Money, not to exceed $500,000 in present value, held in:

(1) An individual retirement arrangement which conforms with the applicable limitations and requirements of 26 U.S.C. § 408;

(2) A written simplified employee pension plan which conforms with the applicable limitations and requirements of 26 U.S.C. § 408;

(3) A cash or deferred arrangement which is a qualified plan pursuant to the Internal Revenue Code; and

(4) A trust forming part of a stock bonus, pension or profit-sharing plan which is a qualified plan pursuant to sections 401 et seq. of the Internal Revenue Code ,[(] 26 U.S.C. §§ 401 et seq. [).]

(r) All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support, education and maintenance of a child, whether collected by the judgment debtor or the state.

(s) All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support and maintenance of a former spouse, including the amount of any arrearages in the payment of such support and maintenance to which the former spouse may be entitled.

2. Except as otherwise provided in NRS 115.010, no article or species of property mentioned in this section is exempt from execution issued upon a judgment to recover for its price, or upon a judgment of foreclosure of a mortgage or other lien thereon.

3. Any exemptions specified in subsection (d) of section 522 of the Bankruptcy Act of 1978 [(92 Stat. 2586)], 11 U.S.C. § 522(d), do not apply to property owned by a resident of this state unless conferred also by subsection 1, as limited by subsection 2, of this section.

Sec. 11. NRS 31.045 is hereby amended to read as follows:

31.045 1. Execution on the writ of attachment by attaching property of the defendant may occur only if:

(a) The judgment creditor serves the defendant with notice of the execution when the notice of the hearing is served pursuant to NRS 31.013; or

(b) Pursuant to an ex parte hearing, the sheriff serves upon the judgment debtor notice of the execution and a copy of the writ at the same time and in the same manner as set forth in NRS 21.076.

If the attachment occurs pursuant to an ex parte hearing, the clerk of the court shall attach the notice to the writ of attachment at the time the writ is issued.

2. The notice required pursuant to subsection 1 must be substantially in the following form:

NOTICE OF EXECUTION

YOUR PROPERTY IS BEING ATTACHED OR

YOUR WAGES ARE BEING GARNISHED

Plaintiff, .......... (name of person), alleges that you owe him money. He has begun the procedure to collect that money. To secure satisfaction of judgment the court has ordered the garnishment of your wages, bank account or other personal property held by third persons or the taking of money or other property in your possession.

Certain benefits and property owned by you may be exempt from execution and may not be taken from you. The following is a partial list of exemptions:

1. Payments received under the Social Security Act.

2. Payments for benefits or the return of contributions under the public employees’ retirement system.

3. Payments for public assistance granted through the welfare division of the department of human resources.

4. Proceeds from a policy of life insurance.

5. Payments of benefits under a program of industrial insurance.

6. Payments received as unemployment compensation.

7. Veteran’s benefits.

8. A homestead in a dwelling or a mobile home, not to exceed [$125,000, unless:

(a) The judgment is for a medical bill, in which case all of the primary dwelling, including a mobile or manufactured home, may be exempt.

(b) Allodial title has been established and not relinquished for the dwelling or mobile home, in which case all of the dwelling or mobile home and its appurtenances are exempt, including the land on which they are located,]the amount allowed pursuant to subsection 2 of NRS 115.010, unless a valid waiver executed pursuant to [NRS 115.010]subsection 4 of that section is applicable to the judgment.

9. A vehicle, if your equity in the vehicle is less than $4,500.

10. Seventy-five percent of the take-home pay for any pay period, unless the weekly take-home pay is less than 30 times the federal minimum wage, in which case the entire amount may be exempt.

14. A vehicle for use by you or your dependent which is specially equipped or modified to provide mobility for a person with a permanent disability.

15. A prosthesis or any equipment prescribed by a physician or dentist for you or your dependent.

These exemptions may not apply in certain cases such as proceedings to enforce a judgment for support of a child or a judgment of foreclosure on a mechanic’s lien. You should consult an attorney immediately to assist you in determining whether your property or money is exempt from execution. If you cannot afford an attorney, you may be eligible for assistance through .......... (name of organization in county providing legal services to the indigent or elderly persons).

PROCEDURE FOR CLAIMING EXEMPT PROPERTY

If you believe that the money or property taken from you is exempt or necessary for the support of you or your family, you must file with the clerk of the court on a form provided by the clerk a notarized affidavit claiming the exemption. A copy of the affidavit must be served upon the sheriff and the judgment creditor within 8 days after the notice of execution is mailed. The property must be returned to you within 5 days after you file the affidavit unless the judgment creditor files a motion for a hearing to determine the issue of exemption. If this happens, a hearing will be held to determine whether the property or money is exempt. The hearing must be held within 10 days after the motion for a hearing is filed.

IF YOU DO NOT FILE THE AFFIDAVIT WITHIN THE TIME SPECIFIED, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE JUDGMENT CREDITOR, EVEN IF THE PROPERTY OR MONEY IS EXEMPT.

If you received this notice with a notice of a hearing for attachment and you believe that the money or property which would be taken from you by a writ of attachment is exempt or necessary for the support of you or your family, you are entitled to describe to the court at the hearing why you believe your property is exempt. You may also file a motion with the court for a discharge of the writ of attachment. You may make that motion any time before trial. A hearing will be held on that motion.

IF YOU DO NOT FILE THE MOTION BEFORE THE TRIAL, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE PLAINTIFF, EVEN IF THE PROPERTY OR MONEY IS EXEMPT OR NECESSARY FOR THE SUPPORT OF YOU OR YOUR FAMILY.”.

Amend the title of the bill to read as follows:

“AN ACT relating to property; changing the homestead exemption from an exemption based on equity to an exemption based on acreage; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY¾Changes homestead exemption from exemption based on equity to exemption based on acreage. (BDR 10‑4)”.

Senator James moved the adoption of the amendment.

Remarks by Senators James and Titus.

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

Senator James:

Thank you, Madam President. As you can see, we replaced the bill. This amendment makes a substantial change in the Nevada law. The Chairman of the Committee on Government Affairs introduced this. She has introduced this bill numerous times in the Legislature to increase the amount of the homestead exemption. What the sponsor of the bill, along with the Judiciary committee, decided to do was to develop a homestead that was not tied to equity and instead is tied to land, similar to what Texas has.

We worked hard on this, worked through different definitions and came up with a definition of urban land verses agricultural real property. If you are in an urban area and you do not have the agricultural real property as defined in Nevada law, already, as part of your homestead, your homestead is going to be one acre regardless of the value. If you have agriculture real property as part of your home, and the curtilage and the appendances to it, your homestead exemption is going to be 159 acres plus the one-acre upon which your primary residence would stand.

No longer will we have to come back, continually, to the Legislature to calculate equity as an addition. This is a different policy for the homestead law, which, again, I say, is a fairly revolutionary thing for Nevada to do. You would not have your house executed on. Now, if your house exceeds the value, exceeds the equity that is protected under state law, the house would still be sold and executed for creditors in this situation. Under this amendment, now, your home is truly your castle.

Senator Titus:

Thank you, Madam President. I would just like to ask, for the record, if the people who have already filed homestead exemption forms would still be covered under this or would they have to file new forms?

Senator James:

Thank you, Madam President. The way it works is if you have a homestead already on file, the homestead is determined to be agricultural or non-agricultural, based upon the character of the property as of the effective date of this law. If the property changes in character, subsequently, you would have to file another homestead declaration. That is the provision in the amendment.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 99.

Bill read second time.

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

Amendment No. 583.

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 679B.138 is hereby amended to read as follows:

679B.138 1. The commissioner shall adopt regulations which require the use of uniform claim forms and billing codes and the ability to make compatible electronic data transfers for all insurers and administrators authorized to conduct business in this state relating to a health care plan or health insurance or providing or arranging for the provision of health care services, including, without limitation, an insurer that issues a policy of health insurance, an insurer that issues a policy of group health insurance, a carrier serving small employers, a fraternal benefit society, a hospital or medical service corporation, a health maintenance organization, a plan for dental care and a prepaid limited health service organization. The regulations must include, without limitation, a uniform billing format to be used for the submission of claims to such insurers and administrators.

2. As used in this section:

(a) “Administrator” has the meaning ascribed to it in NRS 683A.025.

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

Amend section 1, pages 1 and 2, by deleting lines 7 through 19 on page 1 and lines 1 through 3 on page 2, and inserting: “administrator shall pay interest on the claim at [the] a rate of interest [established pursuant to NRS 99.040 unless a different rate of interest is established pursuant to an express written contract between the administrator and the provider of health care.] equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due, plus 6 percent. The interest must be calculated from 30 days after the date on which the claim is approved until the date on which the claim is paid.”.

Amend section 1, page 2, by deleting lines 24 through 26 and inserting:

“6. The payment of interest provided for in this section for the late payment of an approved claim may not be waived.”.

Amend section 1, page 2, by deleting lines 34 and 35 and inserting: “section, the commissioner may require the administrator to pay an administrative fine in an amount to be determined by the commissioner.”.

Amend sec. 3, pages 2 and 3, by deleting lines 48 and 49 on page 2 and lines 1 through 13 on page 3, and inserting: “on the claim at [the] a rate of interest [established pursuant to NRS 99.040 unless a different rate of interest is established pursuant to an express written contract between the insurer and the provider of health care.] equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due, plus 6 percent. The interest must be calculated from 30 days after the date on which the claim is approved until the date on which the claim is paid.”.

Amend sec. 3, page 3, by deleting lines 33 through 35 and inserting:

“6. The payment of interest provided for in this section for the late payment of an approved claim may not be waived.”.

Amend sec. 3, page 3, by deleting line 43 and inserting: “require the insurer to pay an administrative fine in an amount to be determined by the commissioner.”.

Amend sec. 5, page 4, by deleting lines 9 through 23 and inserting: “shall pay interest on the claim at [the] a rate of interest [established pursuant to NRS 99.040 unless a different rate of interest is established pursuant to an express written contract between the insurer and the provider of health care.] equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due, plus 6 percent. The interest must be calculated from 30 days after the date on which the claim is approved until the date on which the claim is paid.”.

Amend sec. 5, page 4, by deleting lines 43 through 45 and inserting:

“6. The payment of interest provided for in this section for the late payment of an approved claim may not be waived.”.

Amend sec. 5, page 5, by deleting line 4 and inserting: “require the insurer to pay an administrative fine in an amount to be determined by the commissioner.”.

Amend sec. 7, page 5, by deleting lines 20 through 34 and inserting: “shall pay interest on the claim at [the] a rate of interest [established pursuant to NRS 99.040 unless a different rate of interest is established pursuant to an express written contract between the carrier and the provider of health care.] equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due, plus 6 percent. The interest must be calculated from 30 days after the date on which the claim is approved until the date on which the claim is paid.”.

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

“6. The payment of interest provided for in this section for the late payment of an approved claim may not be waived.”.

Amend sec. 7, page 6, by deleting line 15 and inserting: “require the carrier to pay an administrative fine in an amount to be determined by the commissioner.”.

Amend sec. 10, pages 6 and 7, by deleting lines 36 through 47 on page 6 and lines 1 through 3 on page 7, and inserting: “interest on the claim at [the] a rate of interest [established pursuant to NRS 99.040 unless a different rate of interest is established pursuant to an express written contract between the corporation and the provider of health care.] equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due, plus 6 percent. The interest must be calculated from 30 days after the date on which the claim is approved until the date on which the claim is paid.”.

Amend sec. 10, page 7, by deleting lines 24 through 26 and inserting:

“6. The payment of interest provided for in this section for the late payment of an approved claim may not be waived.”.

Amend sec. 10, page 7, by deleting lines 34 and 35 and inserting: “commissioner may require the corporation to pay an administrative fine in an amount to be determined by the commissioner.”.

Amend sec. 15, page 9, by deleting lines 3 through 18 and inserting: “shall pay interest on the claim at [the] a rate of interest [established pursuant to NRS 99.040 unless a different rate of interest is established pursuant to an express written contract between the health maintenance organization and the provider of health care.] equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due, plus 6 percent. The interest must be calculated from 30 days after the date on which the claim is approved until the date on which the claim is paid.”.

Amend sec. 15, page 9, by deleting lines 41 through 43 and inserting:

“6. The payment of interest provided for in this section for the late payment of an approved claim may not be waived.”.

Amend sec. 15, page 10, by deleting lines 2 through 4 and inserting: “the requirements set forth in this section, the commissioner may require the health maintenance organization to pay an administrative fine in an amount to be determined by the commissioner.”.

Amend the bill as a whole by deleting sec. 17, renumbering sec. 18 as sec. 22 and adding new sections designated sections 17 through 21, following sec. 16, to read as follows:

“Sec. 17. Chapter 616C of NRS is hereby amended by adding thereto the provisions set forth as sections 18 and 19 of this act.

Sec. 18. 1. Except as otherwise provided in this section, an insurer shall approve or deny a bill for accident benefits received from a provider of health care within 30 calendar days after the insurer receives the bill. If the bill for accident benefits is approved, the insurer shall pay the bill within 30 calendar days after it is approved. If the approved bill for accident benefits is not paid within that period, the insurer shall pay interest to the provider of health care at a rate of interest equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due, plus 6 percent. The interest must be calculated from 30 calendar days after the date on which the bill is approved until the date on which the bill is paid.

2. If an insurer needs additional information to determine whether to approve or deny a bill for accident benefits received from a provider of health care, he shall notify the provider of health care of his request for the additional information within 20 calendar days after he receives the bill. The insurer shall notify the provider of health care of all the specific reasons for the delay in approving or denying the bill for accident benefits. Upon the receipt of such a request, the provider of health care shall furnish the additional information to the insurer within 20 calendar days after receiving the request. If the provider of health care fails to furnish the additional information within that period, the provider of health care is not entitled to the payment of interest to which he would otherwise be entitled for the late payment of the bill for accident benefits. The insurer shall approve or deny the bill for accident benefits within 20 calendar days after he receives the additional information. If the bill for accident benefits is approved, the insurer shall pay the bill within 20 calendar days after he receives the additional information. Except as otherwise provided in this subsection, if the approved bill for accident benefits is not paid within that period, the insurer shall pay interest to the provider of health care at the rate set forth in subsection 1. The interest must be calculated from 20 calendar days after the date on which the insurer receives the additional information until the date on which the bill is paid.

3. An insurer shall not request a provider of health care to resubmit information that the provider of health care has previously provided to the insurer, unless the insurer provides a legitimate reason for the request and the purpose of the request is not to delay the payment of the accident benefits, harass the provider of health care or discourage the filing of claims.

4. An insurer shall not pay only a portion of a bill for accident benefits that has been approved and is fully payable.

5. The administrator may require an insurer to provide evidence which demonstrates that the insurer has substantially complied with the requirements of this section, including, without limitation, payment within the time required of at least 95 percent of approved accident benefits or at least 90 percent of the total dollar amount of approved accident benefits. If the administrator determines that an insurer is not in substantial compliance with the requirements of this section, the administrator may require the insurer to pay an administrative fine in an amount to be determined by the administrator.

6. The payment of interest provided for in this section for the late payment of an approved bill for accident benefits may not be waived.

7. Payments made by an insurer pursuant to this section are not an admission of liability for the accident benefits or any portion of the accident benefits.

Sec. 19. 1. If an insurer, organization for managed care or employer who provides accident benefits for injured employees pursuant to NRS 616C.265 denies payment for some or all of the services itemized on a statement submitted by a provider of health care on the sole basis that those services were not related to the employee’s industrial injury or occupational disease, the insurer, organization for managed care or employer shall, at the same time that it sends notification to the provider of health care of the denial, send a copy of the statement to the injured employee and notify the injured employee that it has denied payment. The notification sent to the injured employee must:

(a) State the relevant amount requested as payment in the statement, that the reason for denying payment is that the services were not related to the industrial injury or occupational disease and that, pursuant to subsection 2, the injured employee will be responsible for payment of the relevant amount if he does not, in a timely manner, appeal the denial pursuant to NRS 616C.305 and 616C.315 to 616C.385, inclusive, or appeals but is not successful.

(b) Include an explanation of the injured employee’s right to request a hearing to appeal the denial pursuant to NRS 616C.305 and 616C.315 to 616C.385, inclusive, and a suitable form for requesting a hearing to appeal the denial.

2. An injured employee who does not, in a timely manner, appeal the denial of payment for the services rendered or who appeals the denial but is not successful is responsible for payment of the relevant charges on the itemized statement.

3. To succeed on appeal, the injured employee must show that the:

(a) Services provided were related to the employee’s industrial injury or occupational disease; or

(b) Insurer, organization for managed care or employer who provides accident benefits for injured employees pursuant to NRS 616C.265 gave prior authorization for the services rendered and did not withdraw that prior authorization before the services of the provider of health care were rendered.

Sec. 20. NRS 616C.065 is hereby amended to read as follows:

616C.065 1. [Within] Except as otherwise provided in section 18 of this act, within 30 days after the insurer has been notified of an industrial accident, every insurer shall:

(a) Commence payment of a claim for compensation; or

(b) Deny the claim and notify the claimant and administrator that the claim has been denied.

Payments made by an insurer pursuant to this section are not an admission of liability for the claim or any portion of the claim.

2. If an insurer unreasonably delays or refuses to pay that portion of the claim for compensation that is not required to be paid pursuant to section 18 of this act within 30 days after the insurer has been notified of an industrial accident, the insurer shall pay upon order of the administrator an additional amount equal to three times the amount specified in the order as refused or unreasonably delayed. This payment is for the benefit of the claimant and must be paid to him with the compensation assessed pursuant to chapters 616A to 617, inclusive, of NRS.

Sec. 21. NRS 616C.135 is hereby amended to read as follows:

616C.135 1. A provider of health care who accepts a patient as a referral for the treatment of an industrial injury or an occupational disease may not charge the patient for any treatment related to the industrial injury or occupational disease, but must charge the insurer. The provider of health care may charge the patient for any [other unrelated services which are requested in writing by the patient.] services that are not related to the employee’s industrial injury or occupational disease.

2. The insurer is liable for the charges for approved services related to the industrial injury or occupational disease if the charges do not exceed:

(a) The fees established in accordance with NRS 616C.260 or the usual fee charged by that person or institution, whichever is less; and

(b) The charges provided for by the contract between the provider of health care and the insurer or the contract between the provider of health care and the organization for managed care.

3. If a provider of health care, an organization for managed care, an insurer or an employer violates the provisions of this section, the administrator shall impose an administrative fine of not more than $250 for each violation.”.

Amend sec. 18, page 11, by deleting line 28 and inserting: “care, the amendatory provisions of sections 1.5, 3, 5, 7, 10, 11, 15 and 18 of”.

Amend the bill as a whole by deleting sec. 19.

Senator O'Connell moved the adoption of the amendment.

Remarks by Senator O'Connell.

Conflict of interest declared by Senator Raggio.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 156.

Bill read second time.

The following amendment was proposed by the Committee on Taxation:

Amendment No. 209.

Amend the bill as a whole by deleting sections 1 through 8 and adding new sections designated sections 1 through 15, following the enacting clause, to read as follows:

“Section 1. NRS 361.090 is hereby amended to read as follows:

361.090 1. The property, to the extent of [$1,000] the assessed valuation [,] as set forth in subsection 2, of any actual bona fide resident of the State of Nevada who:

(a) Has served a minimum of 90 days on active duty, who was assigned to active duty at some time between April 21, 1898, and June 15, 1903, or between April 6, 1917, and November 11, 1918, or between December 7, 1941, and December 31, 1946, or between June 25, 1950, and January 31, 1955;

(b) Has served a minimum of 90 continuous days on active duty none of which was for training purposes, who was assigned to active duty at some time between January 1, 1961, and May 7, 1975; or

(c) Has served on active duty in connection with carrying out the authorization granted to the President of the United States in Public Law 102‑1, and who received, upon severance from service, an honorable discharge or certificate of satisfactory service from the Armed Forces of the United States, or who, having so served, is still serving in the Armed Forces of the United States, is exempt from taxation.

2. The amount of assessed valuation that is exempt from taxation pursuant to subsection 1:

(a) For fiscal year 2001-2002, is $1,250;

(b) For fiscal year 2002-2003, is $1,500; and

3. For the purpose of this section [,] :

(a) For fiscal year 2001-2002, thefirst [$1,000] $1,250 assessed valuation of property in which such a person has any interest ;

(b) For fiscal year 2002-2003, the first $1,500 assessed valuation of property in which such a person has any interest; and

(c) For fiscal year 2003-2004, the first $1,750 assessed valuation of property in which such a person has any interest, shall be deemed the property of that person.

[3.] 4. The exemption may be allowed only to a claimant who files an affidavit with his claim for exemption on real property pursuant to NRS 361.155. The affidavit may be filed at any time by a person claiming exemption from taxation on personal property.

[4.] 5. The affidavit must be made before the county assessor or a notary public and filed with the county assessor. It must state that the affiant is an actual bona fide resident of the State of Nevada who meets all the other requirements of subsection 1 and that the exemption is claimed in no other county in this state. After the filing of the original affidavit, the county assessor shall mail a form for:

(a) The renewal of the exemption; and

(b) The designation of any amount to be credited to the veterans’ home account, to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption.

[5.] 6. Persons in actual military service are exempt during the period of such service from filing annual affidavits of exemption , and the county assessors shall continue to grant exemption to such persons on the basis of the original affidavits filed. In the case of any person who has entered the military service without having previously made and filed an affidavit of exemption, the affidavit may be filed in his behalf during the period of such service by any person having knowledge of the facts.

[6.] 7. Before allowing any veteran’s exemption pursuant to the provisions of this chapter, the county assessor of each of the several counties of this state shall require proof of status of the veteran, and for that purpose shall require production of an honorable discharge or certificate of satisfactory service or a certified copy thereof, or such other proof of status as may be necessary.

[7.] 8. If any person files a false affidavit or produces false proof to the county assessor, and as a result of the false affidavit or false proof a tax exemption is allowed to a person not entitled to the exemption, he is guilty of a gross misdemeanor.

Sec. 2. NRS 361.090 is hereby amended to read as follows:

361.090 1. The property, to the extent of [the] $2,000 assessed valuation , [as set forth in subsection 2,] of any actual bona fide resident of the State of Nevada who:

(b) Has served a minimum of 90 continuous days on active duty none of which was for training purposes, who was assigned to active duty at some time between January 1, 1961, and May 7, 1975; or

(c) Has served on active duty in connection with carrying out the authorization granted to the President of the United States in Public Law 102 1, and who received, upon severance from service, an honorable discharge or certificate of satisfactory service from the Armed Forces of the United States, or who, having so served, is still serving in the Armed Forces of the United States, is exempt from taxation.

2. [The amount of assessed valuation that is exempt from taxation pursuant to subsection 1:

(a) For fiscal year 2001-2002, is $1,250;

(b) For fiscal year 2002-2003, is $1,500; and

3.] For the purpose of this section , [:

(a) For fiscal year 2001-2002, the first $1,250 assessed valuation of property in which such a person has any interest;

(b) For fiscal year 2002-2003, the first $1,500 assessed valuation of property in which such a person has any interest; and

(c) For fiscal year 2003-2004,] the first [$1,750] $2,000 assessed valuation of property in which such a person has any interest [,]shall be deemed the property of that person.

[4.] 3. The exemption may be allowed only to a claimant who files an affidavit with his claim for exemption on real property pursuant to NRS 361.155. The affidavit may be filed at any time by a person claiming exemption from taxation on personal property.

[5.] 4. The affidavit must be made before the county assessor or a notary public and filed with the county assessor. It must state that the affiant is an actual bona fide resident of the State of Nevada who meets all the other requirements of subsection 1 and that the exemption is claimed in no other county in this state. After the filing of the original affidavit, the county assessor shall mail a form for:

(a) The renewal of the exemption; and

[6.] 5. Persons in actual military service are exempt during the period of such service from filing annual affidavits of exemption, and the county assessors shall continue to grant exemption to such persons on the basis of the original affidavits filed. In the case of any person who has entered the military service without having previously made and filed an affidavit of exemption, the affidavit may be filed in his behalf during the period of such service by any person having knowledge of the facts.

[7.] 6. Before allowing any veteran’s exemption pursuant to the provisions of this chapter, the county assessor of each of the several counties of this state shall require proof of status of the veteran, and for that purpose shall require production of an honorable discharge or certificate of satisfactory service or a certified copy thereof, or such other proof of status as may be necessary.

[8.] 7. If any person files a false affidavit or produces false proof to the county assessor, and as a result of the false affidavit or false proof a tax exemption is allowed to a person not entitled to the exemption, he is guilty of a gross misdemeanor.

8. Beginning with the 2005-2006 fiscal year, the monetary amounts in subsections 1 and 2 must be adjusted for each fiscal year by adding to each amount the product of the amount multiplied by the percentage increase in the Consumer Price Index (All Items) from December 2003 to the December preceding the fiscal year for which the adjustment is calculated.

Sec. 3. NRS 361.0905 is hereby amended to read as follows:

361.0905 1. Any person who qualifies for an exemption pursuant to NRS 361.090 may, in lieu of claiming his exemption:

(a) Pay to the county assessor all or any portion of the amount by which the tax would be reduced if he claimed his exemption; and

(b) Direct the county assessor to deposit that amount for credit to the veterans’ home account established pursuant to NRS 417.145.

2. Any person who wishes to waive his exemption pursuant to this section shall designate the amount to be credited to the account on a form provided by the Nevada tax commission.

3. The county assessor shall deposit any money received pursuant to this section with the state treasurer for credit to the veterans’ home account established pursuant to NRS 417.145. The state treasurer shall not accept :

(a) For fiscal year 2001-2002, more than a total of [$1,000,000] $1,250,000;

(b) For fiscal year 2002-2003, more than a total of $1,500,000; and

for credit to the account pursuant to this section and NRS 371.1035 during any fiscal year.

Sec. 4. NRS 361.0905 is hereby amended to read as follows:

361.0905 1. Any person who qualifies for an exemption pursuant to NRS 361.090 may, in lieu of claiming his exemption:

(a) Pay to the county assessor all or any portion of the amount by which the tax would be reduced if he claimed his exemption; and

(b) Direct the county assessor to deposit that amount for credit to the veterans’ home account established pursuant to NRS 417.145.

2. Any person who wishes to waive his exemption pursuant to this section shall designate the amount to be credited to the account on a form provided by the Nevada tax commission.

(a) For fiscal year 2001-2002, more than a total of $1,250,000;

(b) For fiscal year 2002-2003, more than a total of $1,500,000; and

(c) For fiscal year 2003-2004,] more than a total of [$1,750,000,] $2,000,000 for credit to the account pursuant to this section and NRS 371.1035 during any fiscal year.

Sec. 5. NRS 361.091 is hereby amended to read as follows:

361.091 1. A bona fide resident of the State of Nevada who has incurred a permanent service-connected disability and has been honorably discharged from the Armed Forces of the United States, or his surviving spouse, is entitled to a disabled veteran’s exemption.

2. The amount of exemption is based on the total percentage of permanent service-connected disability. The maximum allowable exemption for total permanent disability is :

(a) For fiscal year 2001-2002, thefirst [$10,000] $12,500 assessed valuation [.] ;

(b) For fiscal year 2002-2003, the first $15,000 assessed valuation; and

3. A person with a permanent service-connected disability of:

(a) Eighty to 99 percent, inclusive, is entitled to :

(1) For fiscal year 2001-2002, an exemption of [$7,500] $9,375 assessed value [.] ;

(2) For fiscal year 2002-2003, an exemption of $11,250 assessed value; and

(3) For fiscal year 2003-2004, an exemption of $13,125 assessed value.

(b) Sixty to 79 percent, inclusive, is entitled to :

(1) For fiscal year 2001-2002, anexemption of [$5,000] $6,250 assessed value [.] ;

(2) For fiscal year 2002-2003, an exemption of $7,500 assessed value; and

(3) For fiscal year 2003-2004, an exemption of $8,750 assessed value.

For the purposes of this section, any property in which an applicant has any interest is deemed to be the property of the applicant.

[3.] 4. The exemption may be allowed only to a claimant who has filed an affidavit with his claim for exemption on real property pursuant to NRS 361.155. The affidavit may be made at any time by a person claiming an exemption from taxation on personal property.

[4.] 5. The affidavit must be made before the county assessor or a notary public and be submitted to the county assessor. It must be to the effect that the affiant is a bona fide resident of the State of Nevada, that he meets all the other requirements of subsection 1 and that he does not claim the exemption in any other county within this state. After the filing of the original affidavit, the county assessor shall mail a form for renewal of the exemption to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption.

[5.] 6. Before allowing any exemption pursuant to the provisions of this section, the county assessor shall require proof of the applicant’s status, and for that purpose shall require him to produce an original or certified copy of:

(a) An honorable discharge or other document of honorable separation from the Armed Forces of the United States which indicates the total percentage of his permanent service-connected disability;

(b) A certificate of satisfactory service which indicates the total percentage of his permanent service-connected disability; or

(c) A certificate from the Department of Veterans Affairs or any other military document which shows that he has incurred a permanent service-connected disability and which indicates the total percentage of that disability, together with a certificate of honorable discharge or satisfactory service.

[6.] 7. A surviving spouse claiming an exemption pursuant to this section must file with the county assessor an affidavit declaring that:

(a) The surviving spouse was married to and living with the disabled veteran for the 5 years preceding his death;

(b) The disabled veteran was eligible for the exemption at the time of his death or would have been eligible if he had been a resident of the State of Nevada;

(d) The surviving spouse is a bona fide resident of the State of Nevada.

The affidavit required by this subsection is in addition to the certification required pursuant to subsections [4 and 5.] 5 and 6. After the filing of the original affidavit required by this subsection, the county assessor shall mail a form for renewal of the exemption to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption.

[7.] 8. If a tax exemption is allowed under this section, the claimant is not entitled to an exemption under NRS 361.090.

[8.] 9. If any person makes a false affidavit or produces false proof to the county assessor or a notary public, and as a result of the false affidavit or false proof, the person is allowed a tax exemption to which he is not entitled, he is guilty of a gross misdemeanor.

Sec. 6. NRS 361.091 is hereby amended to read as follows:

2. The amount of exemption is based on the total percentage of permanent service-connected disability. The maximum allowable exemption for total permanent disability is [:

(a) For fiscal year 2001-2002, the first $12,500 assessed valuation;

(b) For fiscal year 2002-2003, the first $15,000 assessed valuation; and

[3.] A person with a permanent service-connected disability of:

(a) Eighty to 99 percent, inclusive, is entitled to [:

(1) For fiscal year 2001-2002, an exemption of $9,375 assessed value;

(2) For fiscal year 2002-2003, an exemption of $11,250 assessed value; and

(3) For fiscal year 2003-2004,] an exemption of [$13,125] $15,000 assessed value.

(b) Sixty to 79 percent, inclusive, is entitled to [:

(1) For fiscal year 2001-2002, an exemption of $6,250 assessed value;

(2) For fiscal year 2002-2003, an exemption of $7,500 assessed value; and

(3) For fiscal year 2003-2004,] an exemption of [$8,750] $10,000 assessed value.

For the purposes of this section, any property in which an applicant has any interest is deemed to be the property of the applicant.

[4.] 3. The exemption may be allowed only to a claimant who has filed an affidavit with his claim for exemption on real property pursuant to NRS 361.155. The affidavit may be made at any time by a person claiming an exemption from taxation on personal property.

[5.] 4. The affidavit must be made before the county assessor or a notary public and be submitted to the county assessor. It must be to the effect that the affiant is a bona fide resident of the State of Nevada, that he meets all the other requirements of subsection 1 and that he does not claim the exemption in any other county within this state. After the filing of the original affidavit, the county assessor shall mail a form for renewal of the exemption to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption.

[6.] 5. Before allowing any exemption pursuant to the provisions of this section, the county assessor shall require proof of the applicant’s status, and for that purpose shall require him to produce an original or certified copy of:

(a) An honorable discharge or other document of honorable separation from the Armed Forces of the United States which indicates the total percentage of his permanent service-connected disability;

(b) A certificate of satisfactory service which indicates the total percentage of his permanent service-connected disability; or

[7.] 6. A surviving spouse claiming an exemption pursuant to this section must file with the county assessor an affidavit declaring that:

(a) The surviving spouse was married to and living with the disabled veteran for the 5 years preceding his death;

(b) The disabled veteran was eligible for the exemption at the time of his death or would have been eligible if he had been a resident of the State of Nevada;

(d) The surviving spouse is a bona fide resident of the State of Nevada.

The affidavit required by this subsection is in addition to the certification required pursuant to subsections [5 and 6.] 4 and 5. After the filing of the original affidavit required by this subsection, the county assessor shall mail a form for renewal of the exemption to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption.

[8.] 7. If a tax exemption is allowed under this section, the claimant is not entitled to an exemption under NRS 361.090.

[9.] 8. If any person makes a false affidavit or produces false proof to the county assessor or a notary public, and as a result of the false affidavit or false proof, the person is allowed a tax exemption to which he is not entitled, he is guilty of a gross misdemeanor.

9. Beginning with the 2005-2006 fiscal year, the monetary amounts in subsection 2 must be adjusted for each fiscal year by adding to the amount the product of the amount multiplied by the percentage increase in the Consumer Price Index (All Items) from December 2003 to the December preceding the fiscal year for which the adjustment is calculated.

Sec. 7. NRS 361.095 is hereby amended to read as follows:

361.095 1. The funds, furniture, paraphernalia and regalia owned and used exclusively by any post of any national organization of [ex-service men or women] ex-servicemen or ex-servicewomen for the legitimate purposes and customary objects of such posts [shall be] are exempt from taxation, but such an exemption [shall in no case] must not exceed :

(a) For fiscal year 2001-2002, the sum of [$5,000] $6,250 assessed valuation to any one post or organization thereof [.] ;

(b) For fiscal year 2002-2003, the sum of $7,500 assessed valuation to any one post or organization thereof; and

2. The buildings, with their fixtures and the lots of ground on which they stand, used for its legitimate purposes and necessary thereto, of any such organization [shall be] are exempt from taxation, but when any such property is used for purposes other than those of such an organization, and a rent or other valuable consideration is received for its use, the property so used [shall] must be taxed.

3. Where any structure or parcel of land is used partly for the purposes of such an organization and partly for rental purposes, the area used for rental purposes [shall] must be assessed separately and that portion only [shall] may be taxed.

Sec. 8. NRS 361.095 is hereby amended to read as follows:

361.095 1. The funds, furniture, paraphernalia and regalia owned and used exclusively by any post of any national organization of ex-servicemen or ex-servicewomen for the legitimate purposes and customary objects of such posts are exempt from taxation, but such an exemption must not exceed [:

(a) For fiscal year 2001-2002,] the sum of [$6,250] $10,000 assessed valuation to any one post or organization thereof . [;

(b) For fiscal year 2002-2003, the sum of $7,500 assessed valuation to any one post or organization thereof; and

2. The buildings, with their fixtures and the lots of ground on which they stand, used for its legitimate purposes and necessary thereto, of any such organization are exempt from taxation, but when any such property is used for purposes other than those of such an organization, and a rent or other valuable consideration is received for its use, the property so used must be taxed.

3. Where any structure or parcel of land is used partly for the purposes of such an organization and partly for rental purposes, the area used for rental purposes must be assessed separately and that portion only may be taxed.

4. Beginning with the 2005-2006 fiscal year, the monetary amount in subsection 1 must be adjusted for each fiscal year by adding to the amount the product of the amount multiplied by the percentage increase in the Consumer Price Index (All Items) from December 2003 to the December preceding the fiscal year for which the adjustment is calculated.

Sec. 9. NRS 371.103 is hereby amended to read as follows:

371.103 1. Vehicles, to the extent of [$1,000] the determined valuation [,] as set forth in subsection 2, registered by any actual bona fide resident of the State of Nevada who:

(b) Has served a minimum of 90 continuous days on active duty none of which was for training purposes, who was assigned to active duty at some time between January 1, 1961, and May 7, 1975; or

(c) Has served on active duty in connection with carrying out the authorization granted to the President of the United States in Public Law 102–1, and who received, upon severance from service, an honorable discharge or certificate of satisfactory service from the Armed Forces of the United States, or who, having so served, is still serving in the Armed Forces of the United States, is exempt from taxation.

2. The amount of determined valuation that is exempt from taxation pursuant to subsection 1:

(a) For fiscal year 2001-2002, is $1,250;

(b) For fiscal year 2002-2003, is $1,500; and

3. For the purpose of this section :

(a) For fiscal year 2001-2002, the first [$1,000] $1,250 determined valuation of vehicles in which such a person has any interest ;

(b) For fiscal year 2002-2003, the first $1,500 determined valuation of vehicles in which such a person has any interest; and

(c) For fiscal year 2003-2004, the first $1,750 determined valuation of vehicles in which such a person has any interest, shall be deemed to belong to that person.

[3.] 4. A person claiming the exemption shall file annually with the department in the county where the exemption is claimed an affidavit declaring that he is an actual bona fide resident of the State of Nevada who meets all the other requirements of subsection 1 [,] and that the exemption is claimed in no other county in this state. The affidavit must be made before the county assessor or a notary public. After the filing of the original affidavit, the county assessor shall mail a form for:

(a) The renewal of the exemption; and

[4.] 5. Persons in actual military service are exempt during the period of such service from filing annual affidavits of exemption , and the department shall grant exemptions to those persons on the basis of the original affidavits filed. In the case of any person who has entered the military service without having previously made and filed an affidavit of exemption, the affidavit may be filed in his behalf during the period of such service by any person having knowledge of the facts.

[5.] 6. Before allowing any veteran’s exemption pursuant to the provisions of this chapter, the department shall require proof of status of the veteran, and for that purpose shall require production of an honorable discharge or certificate of satisfactory service or a certified copy thereof, or such other proof of status as may be necessary.

[6.] 7. If any person files a false affidavit or produces false proof to the department, and as a result of the false affidavit or false proofa tax exemption is allowed to a person not entitled to the exemption, he is guilty of a gross misdemeanor.

Sec. 10. NRS 371.103 is hereby amended to read as follows:

371.103 1. Vehicles, to the extent of [the] $2,000 determined valuation , [as set forth in subsection 2,] registered by any actual bona fide resident of the State of Nevada who:

(b) Has served a minimum of 90 continuous days on active duty none of which was for training purposes, who was assigned to active duty at some time between January 1, 1961, and May 7, 1975; or

2. [The amount of determined valuation that is exempt from taxation pursuant to subsection 1:

(a) For fiscal year 2001-2002, is $1,250;

(b) For fiscal year 2002-2003, is $1,500; and

3.] For the purpose of this section , [:

(a) For fiscal year 2001-2002,] the first [$1,250] $2,000 determined valuation of vehicles in which such a person has any interest [;

(b) For fiscal year 2002-2003, the first $1,500 determined valuation of vehicles in which such a person has any interest; and

(c) For fiscal year 2003-2004, the first $1,750 determined valuation of vehicles in which such a person has any interest,]shall be deemed to belong to that person.

[4.] 3. A person claiming the exemption shall file annually with the department in the county where the exemption is claimed an affidavit declaring that he is an actual bona fide resident of the State of Nevada who meets all the other requirements of subsection 1 and that the exemption is claimed in no other county in this state. The affidavit must be made before the county assessor or a notary public. After the filing of the original affidavit, the county assessor shall mail a form for:

(a) The renewal of the exemption; and

[5.] 4. Persons in actual military service are exempt during the period of such service from filing annual affidavits of exemption, and the department shall grant exemptions to those persons on the basis of the original affidavits filed. In the case of any person who has entered the military service without having previously made and filed an affidavit of exemption, the affidavit may be filed in his behalf during the period of such service by any person having knowledge of the facts.

[6.] 5. Before allowing any veteran’s exemption pursuant to the provisions of this chapter, the department shall require proof of status of the veteran, and for that purpose shall require production of an honorable discharge or certificate of satisfactory service or a certified copy thereof, or such other proof of status as may be necessary.

[7.] 6. If any person files a false affidavit or produces false proof to the department,and as a result of the false affidavit or false proof a tax exemption is allowed to a person not entitled to the exemption, he is guilty of a gross misdemeanor.

7. Beginning with the 2005-2006 fiscal year, the monetary amounts in subsections 1 and 2 must be adjusted for each fiscal year by adding to each amount the product of the amount multiplied by the percentage increase in the Consumer Price Index (All Items) from December 2003 to the December preceding the fiscal year for which the adjustment is calculated.

Sec. 11. NRS 371.1035 is hereby amended to read as follows:

371.1035 1. Any person who qualifies for an exemption pursuant to NRS 371.103 may, in lieu of claiming his exemption:

(a) Pay to the department all or any portion of the amount by which the tax would be reduced if he claimed his exemption; and

(b) Direct the department to deposit that amount for credit to the veterans’ home account established pursuant to NRS 417.145.

2. Any person who wishes to waive his exemption pursuant to this section shall designate the amount to be credited to the account on a form provided by the department.

3. The department shall deposit any money received pursuant to this section with the state treasurer for credit to the veterans’ home account established pursuant to NRS 417.145. The state treasurer shall not accept :

(a) For fiscal year 2001-2002, more than a total [$1,000,000] of $1,250,000;

(b) For fiscal year 2002-2003, more than a total of $1,500,000; and

for credit to the account pursuant to this section and NRS 361.0905 during any fiscal year.

Sec. 12. NRS 371.1035 is hereby amended to read as follows:

371.1035 1. Any person who qualifies for an exemption pursuant to NRS 371.103 may, in lieu of claiming his exemption:

(a) Pay to the department all or any portion of the amount by which the tax would be reduced if he claimed his exemption; and

(b) Direct the department to deposit that amount for credit to the veterans’ home account established pursuant to NRS 417.145.

2. Any person who wishes to waive his exemption pursuant to this section shall designate the amount to be credited to the account on a form provided by the department.

(a) For fiscal year 2001-2002, more than a total of $1,250,000;

(b) For fiscal year 2002-2003, more than a total of $1,500,000; and

(c) For fiscal year 2003-2004,] more than a total of [$1,750,000,] $2,000,000 for credit to the account pursuant to this section and NRS 361.0905 during any fiscal year.

Sec. 13. NRS 371.104 is hereby amended to read as follows:

371.104 1. A bona fide resident of the State of Nevada who has incurred a permanent service-connected disability and has been honorably discharged from the Armed Forces of the United States, or his surviving spouse, is entitled to a veteran’s exemption from the payment of governmental servicestaxes on vehicles of the following determined valuations:

(a) If he has a disability of 100 percent [,] :

(1) For fiscal year 2001-2002, the first [$10,000] $12,500 of determined valuation;

(2) For fiscal year 2002-2003, the first $15,000 of determined valuation; and

(3) For fiscal year 2003-2004, the first $17,500 of determined valuation.

(b) If he has a disability of 80 to 99 percent, inclusive [,] :

(1) For fiscal year 2001-2002, the first [$7,500] $9,375 of determined valuation; [or]

(2) For fiscal year 2002-2003, the first $11,250 of determined valuation; and

(3) For fiscal year 2003-2004, the first $13,125 of determined valuation.

(1) For fiscal year 2001-2002, the first [$5,000] $6,250 of determined valuation [.] ;

(2) For fiscal year 2002-2003, the first $7,500 of determined valuation; and

(3) For fiscal year 2003-2004, the first $8,750 of determined valuation.

2. For the purpose of this section [,] :

(a) For fiscal year 2001-2002, the first [$10,000] $12,500 determined valuation of vehicles in which an applicant has any interest ;

(b) For fiscal year 2002-2003, the first $15,000 of determined valuation of vehicles in which an applicant has any interest; and

(c) For fiscal year 2003-2004, the first $17,500 of determined valuation of vehicles in which an applicant has any interest, shall be deemed to belong entirely to that person.

3. A person claiming the exemption shall file annually with the department in the county where the exemption is claimed an affidavit declaring that he is a bona fide resident of the State of Nevada who meets all the other requirements of subsection 1 [,] and that the exemption is claimed in no other county within this state. After the filing of the original affidavit, the county assessor shall mail a form for renewal of the exemption to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption.

4. Before allowing any exemption pursuant to the provisions of this section, the department shall require proof of the applicant’s status, and for that purpose shall require production of:

(a) A certificate from the Department of Veterans Affairs that the veteran has incurred a permanent service-connected disability, which shows the percentage of that disability; and

(b) Any one of the following:

(1) An honorable discharge;

(2) A certificate of satisfactory service; or

(3) A certified copy of either of these documents.

5. A surviving spouse claiming an exemption pursuant to this section must file with the department in the county where the exemption is claimed an affidavit declaring that:

(a) The surviving spouse was married to and living with the disabled veteran for the 5 years preceding his death;

(b) The disabled veteran was eligible for the exemption at the time of his death; and

The affidavit required by this subsection is in addition to the certification required pursuant to subsections 3 and 4. After the filing of the original affidavit required by this subsection, the county assessor shall mail a form for renewal of the exemption to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption.

6. If a tax exemption is allowed under this section, the claimant is not entitled to an exemption under NRS 371.103.

7. If any person makes a false affidavit or produces false proof to the department, and as a result of the false affidavit or false proof the person is allowed a tax exemption to which he is not entitled, he is guilty of a gross misdemeanor.

Sec. 14. NRS 371.104 is hereby amended to read as follows:

371.104 1. A bona fide resident of the State of Nevada who has incurred a permanent service-connected disability and has been honorably discharged from the Armed Forces of the United States, or his surviving spouse, is entitled to a veteran’s exemption from the payment of governmental services taxes on vehicles of the following determined valuations:

(a) If he has a disability of 100 percent , [:

(1) For fiscal year 2001-2002, the first $12,500 of determined valuation;

(2) For fiscal year 2002-2003, the first $15,000 of determined valuation; and

(3) For fiscal year 2003-2004,] the first [$17,500] $20,000 of determined valuation.

(b) If he has a disability of 80 to 99 percent, inclusive , [:

(1) For fiscal year 2001-2002, the first $9,375 of determined valuation;

(2) For fiscal year 2002-2003, the first $11,250 of determined valuation; and

(3) For fiscal year 2003-2004,] the first [$13,125] $15,000 of determined valuation.

(1) For fiscal year 2001-2002, the first $6,250 of determined valuation;

(2) For fiscal year 2002-2003, the first $7,500 of determined valuation; and

(3) For fiscal year 2003-2004,] the first [$8,750] $10,000 of determined valuation.

2. For the purpose of this section , [:

(a) For fiscal year 2001-2002, the first $12,500 determined valuation of vehicles in which an applicant has any interest;

(b) For fiscal year 2002-2003, the first $15,000 of determined valuation of vehicles in which an applicant has any interest; and

(c) For fiscal year 2003-2004,] the first [$17,500] $20,000 of determined valuation of vehicles in which an applicant has any interest, shall be deemed to belong entirely to that person.

3. A person claiming the exemption shall file annually with the department in the county where the exemption is claimed an affidavit declaring that he is a bona fide resident of the State of Nevada who meets all the other requirements of subsection 1 and that the exemption is claimed in no other county within this state. After the filing of the original affidavit, the county assessor shall mail a form for renewal of the exemption to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption.

4. Before allowing any exemption pursuant to the provisions of this section, the department shall require proof of the applicant’s status, and for that purpose shall require production of:

(a) A certificate from the Department of Veterans Affairs that the veteran has incurred a permanent service-connected disability, which shows the percentage of that disability; and

(b) Any one of the following:

(1) An honorable discharge;

(2) A certificate of satisfactory service; or

(3) A certified copy of either of these documents.

5. A surviving spouse claiming an exemption pursuant to this section must file with the department in the county where the exemption is claimed an affidavit declaring that:

(a) The surviving spouse was married to and living with the disabled veteran for the 5 years preceding his death;

(b) The disabled veteran was eligible for the exemption at the time of his death; and

6. If a tax exemption is allowed under this section, the claimant is not entitled to an exemption under NRS 371.103.

Sec. 15. 1. This section and sections 1, 3, 5, 7, 9 and 11 of this act become effective on July 1, 2001.

2. Section 13 of this act becomes effective at 12:01 a.m. on July 1, 2001.

3. Sections 2, 4, 6, 8, 10, 12 and 14 of this act become effective on July 1, 2004.”.

Senator McGinness moved the adoption of the amendment.

Remarks by Senator McGinness.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 257.

Bill read second time.

The following amendment was proposed by the Committee on Transportation:

Amendment No. 568.

Amend the bill as a whole by deleting sections 1 through 3 and adding new sections designated sections 1 through 7, following the enacting clause, to read as follows:

“Section 1. Chapter 482 of NRS is hereby amended by adding thereto a new section to read as follows:

1. Except as otherwise provided in this section, the department, in cooperation with the Nevada State Firefighters’ Association or its successor, shall design, prepare and issue license plates that recognize current or former service as a volunteer fire fighter using any colors and designs which the department deems appropriate. The department shall not design, prepare or issue the license plates unless it receives at least 250 applications for the issuance of those plates.

2. The department shall issue license plates that recognize current or former service as a volunteer fire fighter for a passenger car or a light commercial vehicle upon application by a qualified person who is entitled to license plates pursuant to NRS 482.265 and who otherwise complies with the requirements for registration and licensing pursuant to this chapter. A person may request that personalized prestige license plates issued pursuant to NRS 482.3667 be combined with license plates that recognize current or former service as a volunteer fire fighter if that person pays the fees for the personalized prestige license plates in addition to the fees for the license plates that recognize current or former service as a volunteer fire fighter.

3. An application for the issuance or renewal of license plates that recognize current or former service as a volunteer fire fighter is void unless it is accompanied by documentation which, in the determination of the department, provides reasonable proof of the identity of the applicant and proof of his current service as a volunteer fire fighter or his status as a former volunteer fire fighter who retired from service as a volunteer fire fighter within this state after completing at least 10 years of active service. Proof of an applicant’s current or former service as a volunteer fire fighter must consist of:

(a) An identification card which indicates that the applicant currently serves as a volunteer fire fighter; or

(b) A letter from the chief officer of a volunteer or combination fire department certifying the applicant’s current or former service as a volunteer fire fighter.

4. The fee payable to the department for license plates that recognize current or former service as a volunteer fire fighter is $35, in addition to all other applicable registration and license fees and governmental services taxes. The license plates are renewable upon the payment to the department of $10 in addition to all other applicable registration and license fees and governmental services taxes.

5. In addition to all other applicable registration and license fees and governmental services taxes and the fees prescribed in subsection 4, a person who requests a set of license plates that recognize current or former service as a volunteer fire fighter must pay for the initial issuance of the plates an additional fee of $25 and for each renewal of the plates an additional fee of $20 to support the training of volunteer fire fighters.

6. The department shall deposit the fees collected pursuant to subsection 5 with the state treasurer for credit to the state general fund. The state treasurer shall account separately for the money deposited pursuant to this subsection and reserve such money for expenditure by the state fire marshal in accordance with this subsection. The state fire marshal may expend the money reserved pursuant to this subsection solely for the support of, and to pay expenses related to, training for volunteer fire fighters provided by or as directed by the board of directors of the Nevada State Firefighters’ Association or its successor.

7. If, during a registration year, the holder of license plates issued pursuant to the provisions of this section disposes of the vehicle to which the plates are affixed, the holder shall:

(a) Retain the plates and affix them to another vehicle that meets the requirements of this section if the transfer and registration fees are paid as set out in this chapter; or

(b) Within 30 days after removing the plates from the vehicle, return them to the department.

8. As used in this section:

(a) “Combination fire department” means a fire department that is:

(1) Served by both volunteer and full-time salaried fire fighters; and

(2) Recognized as such by the state fire marshal.

(b) “Volunteer fire department” means a fire department recognized as a bona fide volunteer fire department by the state fire marshal.

(c) “Volunteer fire fighter” means a person who serves actively in an unpaid capacity in a volunteer or combination fire department within this state as a fire fighter for the benefit or safety of the public.

Sec. 2. NRS 482.216 is hereby amended to read as follows:

482.216 1. Upon the request of a new vehicle dealer, the department may authorize the new vehicle dealer to:

(a) Accept applications for the registration of the new motor vehicles he sells and the related fees and taxes;

(b) Issue certificates of registration to applicants who satisfy the requirements of this chapter; and

(c) Accept applications for the transfer of registration pursuant to NRS 482.399 if the applicant purchased from the new vehicle dealer a new vehicle to which the registration is to be transferred.

2. A new vehicle dealer who is authorized to issue certificates of registration pursuant to subsection 1 shall:

(a) Transmit the applications he receives to the department within the period prescribed by the department;

(b) Transmit the fees he collects from the applicants and properly account for them within the period prescribed by the department;

(d) Bear any cost of equipment which is necessary to issue certificates of registration, including any computer hardware or software.

3. A new vehicle dealer who is authorized to issue certificates of registration pursuant to subsection 1 shall not:

(a) Charge any additional fee for the performance of those services;

(b) Receive compensation from the department for the performance of those services;

(d) Accept an application for the registration of a motor vehicle if the applicant wishes to:

(1) Obtain special license plates pursuant to NRS 482.3667 to 482.3825, inclusive [;] , and section 1 of this act; or

(2) Claim the exemption from the governmental services tax provided pursuant to NRS 361.1565 to veterans and their relations.

4. The director shall adopt such regulations as are necessary to carry out the provisions of this section. The regulations adopted pursuant to this subsection must provide for:

(a) The expedient and secure issuance of license plates and decals by the department; and

(b) The withdrawal of the authority granted to a new vehicle dealer pursuant to subsection 1 if that dealer fails to comply with the regulations adopted by the department.

Sec. 3. NRS 482.3753 is hereby amended to read as follows:

482.3753 1. Except as otherwise provided in this section, the department, in cooperation with [professional] full-time salaried fire fighters in the State of Nevada, shall design, prepare and issue license plates that recognize current or former employment as a [professional] full-time salaried fire fighter using any colors and designs which the department deems appropriate. The department shall not design, prepare or issue the license plates unless it receives at least 250 applications for the issuance of those plates.

2. The department shall issue license plates that recognize current or former employment as a [professional] full-time salaried fire fighter for a passenger car or a light commercial vehicle upon application by a qualified person who is entitled to license plates pursuant to NRS 482.265 and who otherwise complies with the requirements for registration and licensing pursuant to this chapter. A person may request that personalized prestige license plates issued pursuant to NRS 482.3667 be combined with license plates that recognize current or former employment as a [professional] full‑time salaried fire fighter if that person pays the fees for the personalized prestige license plates in addition to the fees for the license plates that recognize current or former employment as a [professional] full-time salaried fire fighter.

3. An application for the issuance or renewal of license plates that recognize current or former employment as a [professional] full-time salaried fire fighter is void unless it is accompanied by documentation which, in the determination of the department, provides reasonable proof of the identity of the applicant and proof of his current employment as a [professional] full-time salaried fire fighter or his status as a [retired professional] former full-time salaried fire fighter[. Such documentation may include, but is not limited to:] who retired from employment with a fire department within this state after completing at least 10 years of creditable service as a fire fighter within this state. Proof of an applicant’s current or former employment as a full-time salaried fire fighter must consist of:

(a) An identification card [which indicates that the applicant is currently employed as a professional fire fighter or is currently a member of a fire-fighters’ union; or

(b) Evidence of his] issued by the Professional Fire Fighters of Nevada or its successor;

(b) An identification card issued by the Nevada Fire Chiefs Association or its successor; or

(c) A letter from the Professional Fire Fighters of Nevada or the Nevada Fire Chiefs Association or their respective successors certifying the applicant’s current or former employment as a [professional] full-time salaried fire fighter.

4. The fee payable to the department for license plates that recognize current or former employment as a [professional] full-time salaried fire fighter is $35, in addition to all other applicable registration and license fees and governmental services taxes. The license plates are renewable upon the payment to the department of $10 in addition to all other applicable registration and license fees and governmental services taxes.

5. In addition to all other applicable registration and license fees and governmental services taxes and the fees prescribed in subsection 4, a person who requests a set of license plates that recognize current or former employment as a full-time salaried fire fighter must pay for the initial issuance of the plates an additional fee of $25 and for each renewal of the plates an additional fee of $20 to support facilities for the treatment of burns which are located within this state.

6. The department shall deposit the fees collected pursuant to subsection 5 with the state treasurer for credit to the state general fund. The state treasurer shall, on a quarterly basis, distribute the fees deposited pursuant to this subsection in equal shares to each facility for the treatment of burns that is located within this state.

7. If, during a registration year, the holder of license plates issued pursuant to the provisions of this section disposes of the vehicle to which the plates are affixed, [he may retain the plates and:

(a) Affix] the holder shall:

(a) Retain the plates and affix them to another vehicle that meets the requirements of this section if the transfer and registration fees are paid as set out in this chapter; or

(b) Within 30 days after removing the plates from the vehicle, return them to the department.

[6.] 8. As used in this section[, “retired professional] :

(a) “Facility for the treatment of burns” means a facility that:

(1) Offers specialized services for the treatment of injuries resulting from burns; and

(2) Is part of or located within a hospital that has a center for the treatment of trauma which is designated as a level I center by the administrator of the health division of the department of human resources.

(b) “Full-time salaried fire fighter” means a person [who retired from employment with a fire department within this state after completing at least 10 years of creditable service as a fire fighter within this state.] employed in this state in a full-time salaried occupation of fire fighting for the benefit or safety of the public.

Sec. 4. NRS 482.500 is hereby amended to read as follows:

482.500 1. Except as otherwise provided in subsection 2 or 3, whenever upon application any duplicate or substitute certificate of registration, decal or number plate is issued, the following fees must be paid:

For a certificate of registration $5.00

For every substitute number plate or set of plates 5.00

For every duplicate number plate or set of plates 10.00

For every decal displaying a county name .50

For every other decal, license plate sticker or tab 5.00

2. The following fees must be paid for any replacement plate or set of plates issued for the following special license plates:

(a) For any special plate issued pursuant to NRS 482.3667, 482.3672, 482.3675, 482.370 to 482.376, inclusive, and section 1 of this act, or 482.379 to 482.3816, inclusive, a fee of $10.

(b) For any special plate issued pursuant to NRS 482.368, 482.3765, 482.377 or 482.378, a fee of $5.

(c) For any souvenir license plate issued pursuant to NRS 482.3825 or sample license plate issued pursuant to NRS 482.2703, a fee equal to that established by the director for the issuance of those plates.

3. A fee must not be charged for a duplicate or substitute decal requested pursuant to NRS 482.37635.

4. The fees which are paid for duplicate number plates and decals displaying county names must be deposited with the state treasurer for credit to the motor vehicle fund and allocated to the department to defray the costs of duplicating the plates and manufacturing the decals.

5. As used in this section:

(a) “Duplicate number plate” means a license plate or a set of license plates issued to a registered owner which repeat the code of a plate or set of plates previously issued to the owner to maintain his registration using the same code.

(b) “Substitute number plate” means a license plate or a set of license plates issued in place of a previously issued and unexpired plate or set of plates. The plate or set of plates does not repeat the code of the previously issued plate or set.

Sec. 5. For the period beginning July 1, 2001, through July 1, 2002, the provisions of NRS 482.280 to the contrary notwithstanding, the department of motor vehicles and public safety:

1. Shall cooperate with a representative of the Professional Fire Fighters of Nevada and of the Nevada Fire Chiefs Association in their efforts to assist the department in:

(a) Identifying persons who:

(1) Possess license plates issued pursuant to NRS 482.3753; and

(2) Do not meet the eligibility requirements set forth in NRS 482.3753.

(b) Ensuring that ineligible persons do not possess license plates issued pursuant to NRS 482.3753.

2. Shall require each person who is applying to renew a license plate issued pursuant to NRS 482.3753 to appear in person and present to an agent or office of the department:

(a) The application for renewal;

(b) The applicable fees and taxes; and

3. Shall, upon receipt of an application for renewal, suspend the registration of a vehicle for which a license plate has been issued pursuant to NRS 482.3753 to a person who does not meet the eligibility requirements set forth in NRS 482.3753 until the license plates are surrendered to the department.

4. Shall not accept an application for the renewal of a license plate issued pursuant to NRS 482.3753 that:

(a) Is delivered by mail during the period beginning July 1, 2001, through July 1, 2002; or

(b) Is not accompanied by the required proof of eligibility.

Sec. 6. On or before July 1, 2005, the department of motor vehicles and public safety shall determine and publicly declare the number of applications it has received for the issuance of license plates pursuant to section 1 of this act.

Sec. 7. 1. This section and sections 1, 4, 5 and 6 of this act become effective on July 1, 2001.

2. Sections 2 and 3 of this act become effective at 12:01 a.m. on July 1, 2001.

3. The amendatory provisions of sections 1, 2 and 4 of this act expire by limitation on July 1, 2005, if on that date the department of motor vehicles and public safety has received fewer than 250 applications for the issuance of license plates pursuant to section 1 of this act.”.

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

“AN ACT relating to motor vehicles; providing for the issuance of special license plates recognizing current or former service as a volunteer fire fighter; imposing a fee for the issuance and renewal of those license plates to pay expenses related to the training of volunteer fire fighters; limiting the issuance of special license plates indicating current or former employment as a full-time salaried fire fighter; imposing a fee for”.

Amend the summary of the bill to read as follows:

“SUMMARY¾Provides for issuance of special license plates recognizing current or former service as volunteer fire fighter and revises provisions relating to special license plates indicating employment as current or former full-time salaried fire fighter. (BDR 43‑505)”.

Senator O'Donnell moved the adoption of the amendment.

Remarks by Senator O'Donnell.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 270.

Bill read second time.

The following amendment was proposed by the Committee on Transportation:

Amendment No. 604.

Amend section 1, page 1, line 2, by deleting “15,” and inserting “23,”.

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

“Sec. 2. 1. “Bus” means a motor vehicle:

(a) That is capable of carrying 16 or more persons, including the driver; and

(b) With a chassis that when originally designed and constructed by the original manufacturer was designed and constructed to carry 16 or more persons, including the driver.

2. The term does not include a motor vehicle with a chassis which when originally manufactured was designed to carry less than 16 persons, including the driver, but which has been modified to carry 16 or more persons, including the driver.”.

Amend sec. 3, page 1, by deleting line 10 and inserting: “taxicab, traditional limousine or livery limousine.”.

Amend the bill as a whole by renumbering sections 4 through 15 as sections 7 through 18 and adding new sections designated sections 5 and 6, following sec. 3, to read as follows:

“Sec. 5. “Livery limousine” means a motor vehicle which:

1. Was a light truck, as that term is defined in 49 C.F.R. § 523.5, at the time of its manufacture;

2. Has a capacity of 11 or more persons but less than 16 persons, including the driver; and

3. Is engaged in the general transportation of persons for compensation and not operated on a regular schedule or over regular routes.

Sec. 6. “Traditional limousine” means a motor vehicle that is engaged in the general transportation of persons for compensation and not operated on a regular schedule or over regular routes and:

1. Was a passenger automobile, as that term is defined in 49 C.F.R. § 523.4, at the time of its manufacture and was later modified to increase its length; or

2. Has a capacity of less than 11 persons, including the driver.” .

Amend sec. 9, page 3, line 36, by deleting “8” and inserting “11”.

Amend sec. 9, page 3, line 37, by deleting “5” and inserting “8”.

Amend sec. 9, page 3, lines 41 and 45, by deleting “15,” and inserting “23,”.

Amend sec. 10, page 4, by deleting line 1 and inserting:

“Sec. 13. 1. Each driver of a fully regulated carrier of passengers shall”.

Amend sec. 10, page 4, line 2, by deleting: “each of its drivers to”.

Amend sec. 10, page 4, by deleting lines 7 and 8 and inserting:

“(b) The time at which he began his period of duty; and”.

Amend sec. 10, page 4, by deleting lines 16 and 17 and inserting:

“(a) The time at which he ended his period of duty; and”.

Amend sec. 10, page 4, line 19, by deleting: “A carrier shall” and inserting: “Each driver of a fully regulated carrier of passengers shall file each trip sheet with the carrier. The carrier or a person designated by the carrier shall review and”.

Amend sec. 10, page 4, line 24, after “sheet” by inserting: “or file a trip sheet with a carrier”.

Amend sec. 10, page 4, between lines 25 and 26 by inserting:

“7. The provisions of this section do not relieve a carrier from any obligation under its certificate of public convenience and necessity or from its duty to comply with this chapter and the regulations adopted pursuant to this chapter.”.

Amend sec. 13, page 5, line 16, by deleting “orderly”.

Amend sec. 13, page 5, line 27, by deleting “or”.

Amend sec. 13, page 5, line 29, by deleting “transportation.” and inserting: “transportation; or

(d) The person requesting service acted in a disorderly manner, including, without limitation, the use of:

(1) Hostile or offensive gestures; or

(2) Indecent or offensive language.

3. The authority shall adopt regulations which define when a person acts in a disorderly manner, when a person uses hostile or offensive gestures and when a person uses indecent or offensive language for the purposes of paragraph (d) of subsection 2.”.

Amend sec. 14, page 5, line 31, by deleting: “8 to 13,” and inserting: “11 to 16,”.

Amend the bill as a whole by renumbering sec. 16 as sec. 24 and adding new sections designated sections 19 through 23, following sec. 15, to read as follows:

“Sec. 19. 1. Each week, a common motor carrier or contract motor carrier authorized to operate a taxicab, traditional limousine, livery limousine or bus shall perform a preventative maintenance and safety inspection as recommended by the maintenance specifications of the manufacturer of the vehicle.

2. Any person, including, without limitation, a safety inspector, service maintenance person, supervisor, manager, owner or driver, who operates a motor vehicle for a common motor carrier or contract motor carrier engaged in passenger or light express service shall:

(a) Report and notify the owner or manager of the common or contract carrier of a safety defect or unsafe condition in a vehicle as soon as possible after becoming aware of the defect or condition; and

(b) Return the vehicle to the maintenance facility for repair as soon as possible after becoming aware of the defect or condition.

A common motor carrier or contract motor carrier that receives notice of a defect or unsafe condition pursuant to this subsection shall not allow the vehicle to be returned to service until the defect or condition has been repaired.

Sec. 20. Sections 21, 22 and 23 of this act only apply in a county whose population is 400,000 or more.

Sec. 21. The authority may:

1. Determine the circumstances that require a temporary increase in the number of traditional limousines or livery limousines that are operated by each fully regulated carrier of passengers which operates such vehicles pursuant to section 22 of this act; and

2. Allocate a temporary increase in the number of traditional limousines and livery limousines pursuant to section 23 of this act when the circumstances require the increase.

Sec. 22. 1. In determining a system of allocation for traditional limousines and livery limousines, or a change in the existing allocation of traditional limousines and livery limousines, the authority shall consider separately the interests, welfare, convenience, necessity and well-being of the customers of taxicab motor carriers and of other fully regulated carriers of passengers. The authority may also consider additional factors, including, without limitation:

(a) The increase in population during the year immediately preceding the date of consideration of counties whose population is 400,000 or more.

(b) The increase in the volume of passengers during the year immediately preceding the date of consideration at airports in counties whose population is 400,000 or more.

(c) The increase in the number of occupied hotel and motel rooms during the year immediately preceding the date of consideration in counties whose population is 400,000 or more.

(d) The increase in the number of customers using the services of traditional limousines and livery limousines during the year immediately preceding the date of consideration in counties whose population is 400,000 or more.

2. If circumstances require an increase in existing allocations, the authority shall allocate the vehicles equally among the fully regulated carriers of passengers who apply for an allocation and who are in the area affected by the allocation.

3. Unless a fully regulated carrier of passengers puts additionally allocated traditional limousines or livery limousines into service within 90 days after the effective date of an increased allocation, the increased allocation to that carrier is void.

4. The authority may attach to the exercise of the rights granted by an allocation any terms and conditions which, in its judgment, the public interest may require. The authority shall determine from evidence gathered at a hearing which arrangements for capitalization or other security or assets must remain in place and which principals and managers of the applicant must continue to be active in those capacities to provide the fitness and ability required for continued operation under the certificate of public convenience and necessity issued to the fully regulated carrier of passengers.

5. Each year, the authority shall review any existing allocation of traditional limousines and livery limousines to determine whether the allocation is appropriate pursuant to subsection 1.

6. After considering all information relevant to the operation of traditional limousines and livery limousines in a county whose population is 400,000 or more, the authority shall adopt regulations relating to the number of such vehicles that will be allocated.

Sec. 23. 1. In determining whether circumstances require a temporary increase in the number of traditional limousines and livery limousines allocated pursuant to section 22 of this act, the authority shall consider separately the interests, welfare, convenience, necessity and well-being of the customers of taxicab motor carriers and of other fully regulated carriers of passengers.

2. If circumstances require a temporary increase in the number of vehicles allocated pursuant to section 22 of this act, the authority shall allocate the temporary increase equally among the fully regulated carriers of passengers who apply for an allocation and who are in the area affected by the allocation.

3. The authority shall determine:

(a) The number of additional vehicles to be allocated; and

(b) The duration of the temporary allocations, which may not exceed 15 days.

4. The authority may adopt regulations governing temporary increases in the allocation of vehicles pursuant to this section.”.

Amend sec. 16, page 6, line 40, by deleting “15,” and inserting “23,”.

Amend sec. 16, page 6, line 42, by deleting: “2 and 3” and inserting: “2 to 6, inclusive,”.

Amend the bill as a whole by renumbering sec. 17 as sec. 28 and adding new sections designated sections 25 through 27, following sec. 16, to read as follows:

“Sec. 25. NRS 706.101 is hereby amended to read as follows:

706.101 “Operator” means a person, other than a lienholder, having a property interest in or title to a vehicle. Except as otherwise provided in this section, the term includes a person entitled to the use and possession of a vehicle under a lease or contract for the purpose of transporting persons or property. The term does not include a person who is the lessee of a taxicab or limousine pursuant to NRS 706.473.

Sec. 26. NRS 706.168 is hereby amended to read as follows:

706.168 1. The authority of the transportation services authority to supervise and regulate [motor] carriers , drivers and brokers respectively, to the extent provided in this chapter, must be exercised separately. A [motor] carrier is responsible only for his own acts and [those of his employees or agents who are not brokers.] the acts of the driver or broker that were directed or allowed by the carrier. A broker is responsible only for his own acts and [those] the acts of his [employees or agents who are not motor carriers.]employee or agent that were directed or allowed by the broker.

2. The provisions of this section do not relieve a carrier from any obligation under its certificate of public convenience and necessity or from its duty to comply with this chapter and the regulations adopted pursuant to this chapter.

Sec. 27. NRS 706.171 is hereby amended to read as follows:

706.171 1. The authority and the department may:

(a) Make necessary and reasonable regulations governing the administration and enforcement of the provisions of this chapter for which they are each responsible.

(b) Adopt by reference any appropriate rule or regulation, as it exists at the time of adoption, issued by the United States Department of Transportation, the Surface Transportation Board, any other agency of the Federal Government, or the National Association of Regulatory Utility Commissioners.

(c) Require such reports and the maintenance of such records as they determine to be necessary for the administration and enforcement of this chapter.

(d) Except as otherwise provided in this section, examine, at any time during the business hours of the day, the books, papers and records of any fully regulated carrier, and of any other common, contract or private motor carrier doing business in this state to the extent necessary for their respective duties. The authority and the department may examine in other states or require by subpoena the production inside this state of such books, papers and records as are not maintained in this state.

(e) Temporarily waive any requirement for a certificate or permit when an emergency exists as defined in NRS 706.561.

2. No personnel records of an employee of a fully regulated carrier, or of any other common, contract or private motor carrier may be examined pursuant to paragraph (d) of subsection 1 unless the records contain information relating to a matter of public safety or the authority and the department determine that the examination is required to protect the interests of the public.

3. The department may adopt regulations to ensure the payment of any fee due or authorized pursuant to the provisions of this chapter.

4. If the authority or the department adopts regulations which refer or relate to a bus, the term bus as used in those regulations has the meaning ascribed to it in section 2 of this act.

5. As used in this section, “personnel records” does not include:

(a) The name of the employee who is the subject of the record;

(b) The gross compensation and perquisites of the employee;

(d) The title or any description of the position held by the employee;

(e) The qualifications required for the position held by the employee;

(f) The business address of the employee;

(g) The telephone number of the employee at his place of business;

(h) The work schedule of the employee;

(i) The date on which the employee began his employment; and

(j) If applicable, the date on which the employment of the employee was terminated.”.

Amend sec. 17, page 7, lines 3, 8 and 10, by deleting “15,” and inserting “23,”.

Amend the bill as a whole by renumbering sec. 18 as sec. 31 and adding new sections designated sections 29 and 30, following sec. 17, to read as follows:

“Sec. 29. NRS 706.361 is hereby amended to read as follows:

706.361 1. A person with a disability is entitled to the full and equal enjoyment of the facilities of any common motor carrier of passengers, contract motor carrier of passengers or other entity providing a means of public conveyance and transportation operating within this state.

2. A common motor carrier of passengers, a contract motor carrier of passengers and other entities providing means of public conveyance and transportation shall designate a person responsible for ensuring that the carrier complies with the applicable provisions of the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 to 12213, inclusive, and 47 U.S.C. §§ 225 and 611, and the regulations adopted pursuant to that act.

3. The person designated pursuant to subsection 2 shall conduct training sessions for the employees of the carrier or entity. Each employee must be provided at least 3 hours of training during one or more training sessions. During the training sessions, the designee shall:

(a) Describe the carrier’s plan for compliance with the Americans with Disabilities Act of 1990 and the regulations adopted pursuant to that act;

(b) Explain the obligations of the employees to assist a person with a disability to store a mobility device;

(d) Ensure that each employee is trained in accordance with the requirements of 49 C.F.R. § 37.173.

4. It is unlawful for any person to deny any of the privileges granted by subsection 1.

5. It is unlawful for any driver of a common motor carrier, or for a contract motor carrier, common motor carrier or other entity providing a means of public conveyance or transportation operating within this state, to:

(a) Deny the equal enjoyment of its services and facilities to a person with a disability by the arbitrary, capricious or unreasonable interference, direct or indirect, with the use of aids and appliances used by a person with a disability;

(b) Fail to designate a person pursuant to subsection 2; or

6. As used in this section, “disability” has the meaning ascribed to it in 49 C.F.R. § 37.3.

Sec. 30. NRS 706.366 is hereby amended to read as follows:

706.366 1. It is unlawful for a driver of a common motor carrier of passengers , or for a common motor carrier, contract motor carrier or other means of public conveyance or transportation operating in this state , to:

(a) Refuse service to a visually, aurally or physically handicapped person because he is accompanied by a guide dog, hearing dog, helping dog or other service animal;

(b) Refuse service to a person who is training a guide dog, hearing dog, helping dog or other service animal because he is accompanied by such an animal; or

2. This section does not relieve a visually, aurally or physically handicapped person or a person who trains a guide dog, hearing dog, helping dog or other service animal from liability for damage which may be caused by his animal.

3. Visually, aurally or physically handicapped persons accompanied by guide dogs, hearing dogs, helping dogs or other service animals are subject to the same conditions and limitations that apply to persons who are not so handicapped and accompanied.

4. For the purposes of this section, the terms “guide dog,” “hearing dog,” “helping dog” and “service animal” have the meanings ascribed to them respectively in NRS 426.075, 426.081, 426.083 and 426.097.”.

Amend the bill as a whole by renumbering sec. 19 as sec. 33 and adding a new section, designated sec. 32, following sec. 18, to read as follows:

“Sec. 32. NRS 706.391 is hereby amended to read as follows:

706.391 1. Upon thefiling of an application for a certificate of public convenience and necessity to operate as a motor carrier other than an operator of a tow car [,] and the payment of a nonrefundable application fee of $200, the authority shall fix a time and place for hearing [thereon.] on the application.

2. The authority shall issue [such] a certificate of public convenience and necessity to a person who submits an application and application fee pursuant to subsection 1, if it finds that:

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

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

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

(d) The proposed service will benefit the traveling and shipping public and the motor carrier business in this state.

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

4. An applicant for such a certificate [has] :

(a) Has the burden of proving to the authority that the proposed operation will meet the requirements of subsection 2 [.] ; and

(b) Must pay the amounts billed to him by the authority for reasonable costs incurred by it in conducting an investigation or hearing regarding the applicant.

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

(a) The exercise of the privilege sought.

(b) The partial exercise of the privilege sought.

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

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

Amend the bill as a whole by renumbering sections 20 and 21 as sections 35 and 36 and adding a new section designated sec. 34, following sec. 19, to read as follows:

“Sec. 34. NRS 706.473 is hereby amended to read as follows:

706.473 1. In a county whose population is less than 400,000, a person who holds a certificate of public convenience and necessity which was issued for the operation of a taxicab business may, upon approval from the authority, lease a taxicab to an independent contractor who does not hold a certificate of public convenience and necessity. A person [may lease only one taxicab to each independent contractor with whom he enters into a lease agreement.] who holds a certificate of public convenience and necessity shall not lease more than one vehicle to each lessee. The taxicab may be used only in a manner authorized by the lessor’s certificate of public convenience and necessity [.] and must not be used to convey passengers or light express without compensation therefor.

2. A person who enters into a lease agreement with an independent contractor pursuant to this section shall submit a copy of the agreement to the authority for its approval. The agreement is not effective until approved by the authority. The authority shall review an agreement submitted to it and shall not approve an agreement unless the agreement contains all information that is required to be included in such an agreement.

3. A person who leases a taxicab to an independent contractor is jointly and severally [liable] responsible with the independent contractor for any violation of the provisions of this chapter or the regulations adopted pursuant thereto, and shall ensure that the independent contractor complies with such provisions and regulations.

4. [The authority or any of its employees may intervene in a civil action involving a lease agreement entered into pursuant to this section.] Each person who holds a certificate of public convenience and necessity and who enters into a lease agreement pursuant to this section shall make each such lease agreement available for public inspection at an office in this state at which the person operates vehicles pursuant to the certificate.”.

Amend sec. 21, page 8, lines 37, 40, 42 and 45, by deleting “15,” and inserting “23,”.

Amend sec. 21, page 9, lines 6 and 30, by deleting “15,” and inserting “23,”.

Amend sec. 21, page 10, line 9, by deleting “15,” and inserting “23,”.

Amend the bill as a whole by renumbering sections 22 and 23 as sections 38 and 39 and adding a new section designated sec. 37, following sec. 21, to read as follows:

“Sec. 37. 1. On or before July 1, 2002, in each county whose population is 400,000 or more, the transportation services authority shall adopt the regulations required pursuant to subsection 6 of section 22 of this act after considering all information that is relevant to traditional limousines and livery limousines and without considering conditions relating to taxicab motor carriers.

2. A fully regulated carrier of passengers shall not, before the effective date of those regulations, increase the number of traditional limousines or livery limousines that it operates in a county whose population is 400,000 or more.

3. As used in this section:

(a) “Fully regulated carrier of passengers” has the meaning ascribed to it in section 4 of this act.

(b) “Livery limousine” has the meaning ascribed to it in section 5 of this act.

(d) “Traditional limousine” has the meaning ascribed to it in section 6 of this act.”.

Amend sec. 23, page 10, line 15, by deleting “6 and 7” and inserting “9 and 10”.

Amend the title of the bill, sixth line, after “authority;” by inserting: “requiring certain actions with regard to defects and unsafe conditions in vehicles; requiring the transportation services authority to establish a system of allocation for limousines; providing that certain acts of drivers of fully regulated carriers of passengers are unlawful; temporarily prohibiting an increase in the number of limousines that may be operated in certain counties;”.

Senator O'Donnell moved the adoption of the amendment.

Remarks by Senator O'Donnell.

Conflict of interest declared by Senator Care.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 291.

Bill read second time.

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

Amendment No. 545.

Amend sec. 6, page 3, by deleting lines 6 through 18.

Amend sec. 6, page 3, line 19, by deleting “2.” and inserting:

“Sec. 6. 1.”.

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

Amend sec. 6, page 3, line 30, by deleting “3.” and inserting “2.”.

Amend sec. 6, page 3, by deleting lines 32 through 35.

Amend sec. 6, page 3, line 36, by deleting “(b)” and inserting “(a)”.

Amend sec. 6, page 3, line 38, by deleting “2;” and inserting “1;”.

Amend sec. 6, page 3, line 39, by deleting “(c)” and inserting “(b)”.

Amend sec. 6, page 3, line 44, by deleting “4.” and inserting “3.”.

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

“AN ACT relating to schools; requiring certain administrators of public schools that do not have school police officers and of private schools to report certain violent or sexual offenses that are committed on school property, on school buses or at school activities to the appropriate local law enforcement agency;”.

Senator Rawson moved the adoption of the amendment.

Remarks by Senators Rawson, Coffin and Wiener.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 372.

Bill read second time.

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

Amendment No. 618.

Amend the bill as a whole by deleting sections 1 through 4 and adding new sections designated sections 1 through 17 and the text of the repealed section, following the enacting clause, to read as follows:

“Section 1. NRS 703.147 is hereby amended to read as follows:

703.147 1. The public utilities commission regulatory fund is hereby created as a special revenue fund. [All] Except as otherwise provided in section 12 of this act, all money collected by the commission pursuant to law must be deposited in the state treasury for credit to the fund. Money collected for the use of the consumer’s advocate of the bureau of consumer protection in the office of the attorney general must be transferred pursuant to the provisions of subsection 8 of NRS 704.035.

2. Money in the fund which belongs to the commission may be used only to defray the costs of:

(a) Maintaining staff and equipment to regulate adequately public utilities and other persons subject to the jurisdiction of the commission.

(b) Participating in all rate cases involving those persons.

(c) Audits, inspections, investigations, publication of notices, reports and retaining consultants connected with that regulation and participation.

(d) The salaries, travel expenses and subsistence allowances of the members of the commission.

3. All claims against the fund must be paid as other claims against the state are paid.

4. The commission must furnish upon request a statement showing the balance remaining in the fund as of the close of the preceding fiscal year.

Sec. 2. Chapter 704 of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 12, inclusive, of this act.

Sec. 3. As used in sections 3 to 12, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 4 to 9, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 4. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 5. “Portfolio standard” means a portfolio standard for renewable energy established by the commission pursuant to section 10 of this act.

Sec. 6. 1. “Provider of electric service” and “provider” mean any person or entity that is in the business of selling electricity to retail customers in this state, regardless of whether the person or entity is otherwise subject to regulation by the commission.

2. The term does not include:

(a) This state or an agency or instrumentality of this state.

(b) A rural electric cooperative established pursuant to chapter 81 of NRS.

(d) A utility established pursuant to chapter 709 or 710 of NRS.

(e) A cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its members.

(f) A landlord of a mobile home park or owner of a company town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

Sec. 7. 1. “Renewable energy” means:

(a) Biomass;

(b) Geothermal energy;

(d) Wind.

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

Sec. 8. “Renewable energy system” means:

1. A facility or energy system that:

(a) Uses renewable energy to generate electricity;

(b) Was installed and commenced operations after January 1, 1997; and

(1) A power line which is dedicated to the transmission or distribution of electricity generated from renewable energy and which is connected to a facility or system owned, operated or controlled by a provider of electric service; or

(2) A power line which is shared with not more than one facility or energy system generating electricity from nonrenewable energy and which is connected to a facility or system owned, operated or controlled by a provider of electric service.

2. A solar thermal energy system which reduces the consumption of electricity and which was installed and commenced operations after January 1, 1997.

Sec. 9. 1. “Retail customer” means a customer who purchases electricity at retail.

2. The term includes, without limitation:

(a) This state, a political subdivision of this state or an agency or instrumentality of this state or political subdivision of this state when it purchases electricity at retail; and

(b) A landlord of a mobile home park or owner of a company town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

Sec. 10. 1. For each provider of electric service, the commission shall establish a portfolio standard for renewable energy. The portfolio standard must require each provider to generate or acquire electricity from renewable energy systems in an amount that is:

(a) For calendar years 2003 and 2004, not less than 5 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(b) For calendar years 2005 and 2006, not less than 7 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(c) For calendar years 2007 and 2008, not less than 9 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(d) For calendar years 2009 and 2010, not less than 11 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(e) For calendar years 2011 and 2012, not less than 13 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

(f) For calendar year 2013 and for each calendar year thereafter, not less than 15 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.

2. In addition to the requirements set forth in subsection 1, the portfolio standard for each provider must require that:

(a) Of the total amount of electricity that the provider is required to generate or acquire from renewable energy systems during each calendar year, not less than 10 percent of that amount must be generated or acquired from solar renewable energy systems.

(b) If the provider acquires electricity from a renewable energy system pursuant to a contract with another party, the term of the contract must be not less than 10 years, unless the other party agrees to a contract with a shorter term. If the provider is a public utility and the commission approves the contract between the provider and the other party, the contract shall be deemed to be a prudent investment and the provider may recover all just and reasonable costs associated with the contract.

3. If, for the benefit of one or more of its retail customers in this state, the provider has subsidized, in whole or in part, the acquisition or installation of a solar thermal energy system which qualifies as a renewable energy system and which reduces the consumption of electricity, the total reduction in the consumption of electricity during each calendar year that results from the solar thermal energy system shall be deemed to be electricity that the provider generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard.

4. The commission may adopt regulations that establish a system of renewable energy credits that may be used by a provider to comply with its portfolio standard.

5. Except as otherwise provided in subsection 6, each provider shall comply with its portfolio standard during each calendar year.

6. If, during any calendar year, a provider is unable to comply with its portfolio standard through the generation of electricity from its own renewable energy systems or, if applicable, through the use of renewable energy credits, the provider shall take actions to acquire electricity from renewable energy systems owned, operated or controlled by other parties. If the commission determines that there is not or will not be a sufficient supply of electricity from such renewable energy systems made available to the provider during a calendar year, the commission shall exempt the provider, for that calendar year, from the remaining requirements of its portfolio standard or from any appropriate portion thereof, as determined by the commission.

Sec. 11. 1. Each provider of electric service shall submit to the commission an annual report that provides information relating to the actions taken by the provider to comply with its portfolio standard.

2. Each provider shall submit the annual report to the commission after the end of each calendar year and within the time prescribed by the commission. The report must be submitted in a format approved by the commission.

3. The commission may adopt regulations that require providers to submit to the commission additional reports during each calendar year.

4. Each annual report and each additional report must include clear and concise information that sets forth:

(a) The amount of electricity which the provider generated or acquired from renewable energy systems during the reporting period and, if applicable, the amount of renewable energy credits that the provider acquired, sold or traded during the reporting period to comply with its portfolio standard;

(b) The capacity of each renewable energy system owned, operated or controlled by the provider, the total amount of electricity generated by each such system during the reporting period and the percentage of that total amount which was generated directly from renewable energy;

(c) Whether, during the reporting period, the provider began construction on, acquired or placed into operation any renewable energy system and, if so, the date of any such event; and

(d) Any other information that the commission by regulation may deem relevant.

Sec. 12. 1. The commission shall adopt regulations to carry out and enforce the provisions of sections 3 to 12, inclusive, of this act. The regulations adopted by the commission may include any enforcement mechanisms which are necessary and reasonable to ensure that each provider of electric service complies with its portfolio standard. Such enforcement mechanisms may include, without limitation, the imposition of administrative fines.

2. If a provider does not comply with its portfolio standard for any calendar year and the commission has not exempted the provider from the requirements of its portfolio standard pursuant to section 10 of this act, the commission may impose an administrative fine against the provider or take other administrative action against the provider, or do both.

3. The commission may impose an administrative fine against a provider based upon:

(a) Each kilowatt-hour of electricity that the provider does not generate or acquire from a renewable energy system or a solar renewable energy system during a calendar year in violation of its portfolio standard; or

(b) Any other reasonable formula adopted by the commission.

4. In the aggregate, the administrative fines imposed against a provider for all violations of its portfolio standard for a single calendar year must not exceed the amount which is necessary and reasonable to ensure that the provider complies with its portfolio standard, as determined by the commission.

5. If the commission imposes an administrative fine against a provider that is a public utility:

(a) The administrative fine is not a cost of service of the provider;

(b) The provider shall not include any portion of the administrative fine in any application for a rate adjustment or rate increase; and

(c) The commission shall not allow the provider to recover any of portion of the administrative fine from its retail customers.

6. All administrative fines imposed and collected pursuant to this section must be deposited in the state general fund.

Sec. 13. NRS 704.743 is hereby amended to read as follows:

704.743 1. A utility which supplies electricity in this state may apply to the commission for authority to charge, as part of a program of optional pricing, a higher rate for electricity that is [derived] generated from renewable energy . [resources.]

2. The program [must] may provide the customers of the utility with the option of paying a higher rate for electricity to support the increased use by the utility of renewable energy [resources] in the [production] generation of electricity.

3. As used in this section [, “renewable energy resources” means resources from which electricity is produced, but which are not consumed or combusted and are] :

(a) “Biomass” has the meaning ascribed to it in section 4 of this act.

(b) “Renewable energy” means a source of energy that occurs naturally or is regenerated, naturally, including, without limitation:

[(a)] (1) Wind;

[(b)] (2) Solar energy; [and

(c)] (3) Geothermal energy [.] ; and

(4) Biomass.

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

Sec. 14. Chapter 278 of NRS is hereby amended by adding thereto a new section to read as follows:

In each county whose population is 100,000 or more:

1. If the governing body of the county or any city in the county has adopted a building code, each such governing body shall, as part of its building code, adopt construction codes and energy codes that regulate:

(a) The design of energy efficient residential, commercial and industrial structures; and

(b) The installation of energy efficient mechanical, lighting and power systems in such structures.

2. If the governing body of the county or any city in the county has not adopted a building code, each such governing body shall:

(a) By ordinance, adopt the codes described in subsection 1; and

(b) Provide for the enforcement of such codes by the officers or employees of the county or city or by the officers or employees of another local government pursuant to an interlocal agreement.

3. The codes described in subsection 1 must:

(a) Be adopted and become effective not later than January 1, 2002; and

(b) Be applied to each new residential, commercial and industrial structure on which construction begins on or after the date on which the codes become effective.

Sec. 15. NRS 278.010 is hereby amended to read as follows:

278.010 As used in NRS 278.010 to 278.630, inclusive, and section 14 of this act, unless the context otherwise requires, the words and terms defined in NRS 278.0105 to 278.0195, inclusive, have the meanings ascribed to them in those sections.

Sec. 16. NRS 704.989 is hereby repealed.

Sec. 17. This act becomes effective upon passage and approval.

TEXT OF REPEALED SECTION

704.989 Renewable energy resources: Portfolio standards; report; exceptions.

1. The commission shall establish portfolio standards for domestic energy that set forth the minimum percentage of the total amount of electricity sold by an electric utility to its retail customers in this state during each calendar year that must be derived from renewable energy resources. The portfolio standards must:

(a) On January 1, 2001, be set at two-tenths of 1 percent of the total amount of electricity sold by the electric utility to its retail customers in this state during the immediately preceding calendar year.

(b) On January 1 of each successive odd-numbered year, be increased by two-tenths of 1 percent of the total amount of electricity sold by the electric utility to its retail customers in this state during the immediately preceding calendar year until the portfolio standards reach a total of 1 percent of the total amount of electricity sold by the electric utility to its retail customers in this state during the immediately preceding calendar year.

(d) Be derived from not less than 50 percent solar renewable energy systems.

(e) Be based on renewable energy credits, if applicable.

2. Each electric utility shall comply with the portfolio standards established by the commission pursuant to this section. At the end of each calendar year, each electric utility shall submit a report, in a format approved by the commission, of the quantity of renewable energy and credits, if applicable, that the electric utility generated, purchased, sold and traded to meet the portfolio standards.

3. In establishing the portfolio standards pursuant to this section, the commission may establish a system of credits pursuant to which an electric utility may comply with the provisions of this section. A system of credits must provide that:

(a) Credits are issued for renewable energy resources for each kilowatt hour of energy which it produces; and

(b) Holders of credits may trade or sell the credits to other parties.

4. For the purposes of this section, if, on January 1, 1997, at least 9 percent of the total amount of electricity sold by an electric utility to its retail customers in this state during the immediately preceding calendar year was derived from renewable energy resources, the electric utility shall be deemed to be in compliance until January 1, 2005, with the portfolio standards established by the commission pursuant to this section. Between January 1, 2005, and December 31, 2009, such an electric utility shall have one-half of 1 percent of the total amount of electricity sold to its retail customers in this state, increased in annual increments of one-tenth of 1 percent during each calendar year of that period, derived from solar energy resources for full compliance with the portfolio standards established by the commission pursuant to this section.

5. In addition to the report required by subsection 2, each electric utility shall submit a report, in a format approved by the commission, that provides information relating to the compliance by the electric utility with the requirements of this section. Such reports must be made at least annually, unless the commission by regulation determines that such reports must be made more frequently than annually, and must include clear and concise information that sets forth:

(a) If the electric utility installed a renewable energy system during the period for which the report is being made, the date of installation;

(b) The capacity of renewable energy systems of the electric utility;

(d) The portion of the production of energy that is directly derived from renewable energy resources;

(e) The quantity of energy from renewable energy systems that is transmitted or distributed, or both, to retail customers in this state by the electric utility; and

(f) Such other information that the commission by regulation may deem relevant.

6. The provisions of this section do not apply to:

(a) Rural electric cooperatives established pursuant to chapter 81 of NRS;

(b) General improvement districts established pursuant to chapter 318 of NRS; or

7. As used in this section:

(a) “Electric utility” has the meaning ascribed to it in section 19 of this act.

(b) “Renewable energy resources” means wind, solar, geothermal and biomass energy resources that are naturally regenerated.

(c) “Renewable energy system” means an energy system that utilizes renewable energy resources to produce electricity or solar thermal energy systems that reduce the consumption of electricity that was installed and commenced operations after July 1, 1997.”.

Amend the title of the bill to read as follows:

“AN ACT relating to energy; revising and clarifying provisions requiring certain providers of electric service to comply with a portfolio standard for renewable energy; authorizing the public utilities commission of Nevada to impose administrative fines against noncomplying providers under certain circumstances and to take other administrative actions to ensure compliance with the portfolio standard; requiring the governing bodies of certain counties and cities to adopt certain codes concerning energy efficiency; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Revises provisions concerning conservation of energy and use of renewable energy. (BDR 58‑287)”.

Senator Townsend moved the adoption of the amendment.

Remarks by Senator Townsend.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Townsend moved that Senate Bill No. 394 be placed at the top of the Second Reading File on the third agenda.

Remarks by Senator Townsend.

Motion carried.

SECOND READING AND AMENDMENT

Senate Bill No. 411.

Bill read second time.

The following amendment was proposed by the Committee on Judiciary:

Amendment No. 451.

Amend sec. 4, page 1, by deleting lines 8 through 11 and inserting:

“Sec. 4. “Information concerning a substantial public hazard” means any information concerning a substantial public hazard that may be useful to members of the public in protecting themselves from substantial bodily injury or death which may result from the substantial public hazard.”.

Amend sec. 6, page 2, by deleting lines 1 through 3 and inserting:

“Sec. 6. “Substantial public hazard” means any instrumentality, device, procedure, product or condition of any instrumentality, device, procedure or product that has caused or is likely to cause substantial bodily injury or death.”.

Amend sec. 7, page 2, line 7, before “public” by inserting “substantial”.

Amend sec. 7, page 2, line 8, before “public” by inserting “substantial”.

Amend sec. 7, page 2, by deleting line 10 and inserting: “effect of concealing a substantial public hazard or information concerning a substantial public”.

Amend sec. 8, page 2, by deleting lines 12 through 28 and inserting:

“Sec. 8. 1. Any person has standing to contest an order or a judgment that allegedly has the purpose or effect of concealing a substantial public hazard or information concerning a substantial public hazard by filing a motion in the court which entered the order or judgment.

2. Any person has standing to contest an agreement or a contract that allegedly has the purpose or effect of concealing a substantial public hazard or information concerning a substantial public hazard by bringing an action for declaratory judgment pursuant to chapter 30 of NRS.”.

Amend the title of the bill to read as follows:

“AN ACT relating to confidentiality; prohibiting a court from entering an order or judgment that has the purpose or effect of concealing a substantial public hazard or information concerning a substantial public hazard; providing that any portion of an agreement or a contract that has the purpose or effect of concealing a substantial public hazard or information concerning a substantial public hazard is void; providing that if the labor commissioner enters into, effects or approves any compromise or settlement concerning an alleged violation of labor laws, the terms and conditions of the compromise or settlement are not confidential; and providing other matters properly relating thereto.”.

Senator James moved the adoption of the amendment.

Remarks by Senators James, O'Donnell and Amodei.

Conflict of interest declared by Senator Raggio.

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

Senator James:

Yes, thank you, Madam President. This bill enacts an important requirement in the law that certain settlements that affect the public interest, may not be concealed from the public by virtue of an agreement that is sanctioned by a court that would prevent this information from becoming public. The amendment restricts the bill to those kinds of cases and agreements that would have the tendency to conceal what is defined in the amendment as a substantial public hazard. Instead of just being any public hazard, which could be any small case, a slip and fall, any kind of an auto accident or malpractice case, or any one of the ad hoc kinds of cases, this concerns itself with an instrumentality, device, procedure, product or condition of any of those things that is likely to cause substantial bodily injury or death.

We heard a lot of testimony on this bill. We did receive some opposition to the bill as it was originally drafted. But, we also considered, carefully, cases like the Firestone case, the Johns Manville case which involves asbestos litigation, the Xerox case that involved contamination and pollution of a residential area, the Corvair case of General Motors, breast implant litigation, birth control litigation, diet pill litigation. All of these things initially involved cases brought by one or two or just a few individuals, settled, set aside, sealed. Then over a period of months and then years following that, there have been a number of cases that have come up in which the public, had it been warned, would have known about that. I want to assure the body that the amendment applies the bill only to those kinds of cases.

It will be up to the judgment of a court in considering this in one of two circumstances; either the circumstance in which the parties seek to have the judge enter an order sealing the records of the court and the case, or in a subsequent case filed by an interested party, and the bill makes any interested party able to do this, not just the media, seeking to open up a case which has been sealed under some other circumstance. The judge then makes a determination whether this is a case that is affected by the public interest, that it does, in fact, conceal a substantial public hazard. In those circumstances then, the court requires that to be an open record.

This doesn’t apply to the run of the mill, small businesses. It doesn’t apply to the run of the mill, personal injury case that’s confronted by a small business. The amendment doesn’t apply to a person. It only applies to a product or a thing, an inanimate object. It wouldn’t apply to a doctor. It would not turn a doctor into a public hazard. That kind of thing would be dealt with separately. It was nice to hear on the floor the discussion about the fact that these disciplinary things will be public because that will be dealt with under a separate area.

This is where you have a device or a product that is in the stream of commerce and it is running through the stream of commerce. It is available for people to buy, purchase, use or be exposed to if it is being put in building materials like asbestos. It lets people know this is happening. In each one of these cases that I have cited, Madam President and members of the Senate, there was, in fact, an initial case that was brought to the attention, either in litigation or otherwise through a claim to the manufacturer or the person who put the product out, and that then was set aside, and it was not disclosed.

In some of the more egregious cases like the case involving the tanks that were put into the General Motors trucks, there was a memo sent around the company indicating that this was a problem. The tanks are exploding, and they represent a hazard to the passengers. However, we believe, and this is paraphrasing from the memo, that the cost of settling these cases as wrongful death cases would be outweighed by the costs of recalling all of these trucks and repairing the problem so we don’t have the accidents. Those kinds of egregious circumstances would be averted by having the watchful eye of the public and the media available to scrutinize these types of agreements that would tend to conceal or to secret from the public these substantial public hazards and are known to exist and are exposed through litigation or claims.

Senator O’Donnell:

Thank you, Madam President. I have a concern because this issue came up about 10 years ago. In section 8, it says that any person has standing to contest an order or a judgment that allegedly has the purpose or effect of concealing a substantial public hazard. Does that mean that anybody, any attorney can challenge any concealment of records to substantiate that there was a substantial public hazard? And what would be the threshold in which the judge, and I assume it would be a judge, would go ahead and overturn that and open the record.

Senator James:

Thank you, Madam President. That’s a good question. It’s a welcomed question regarding this legislation. The answer to the first part of the question is yes. Any interested person, by that section, gains standing. Then the standard is set forth in sections 4 and 6, as amended on page 1 of the amendment. The question for the judge is whether or not the agreement has the effect of concealing a substantial public hazard. I know that you heard this bill 10 years ago, and we heard about that in the committee. In fact, the chairman of the committee at that time was the Minority Leader, and she was the sponsor of the bill, I believe. We have amended that bill, and we have restricted the definition to just a substantial public hazard. The inquiry for the court is: Is this truly a broadly distributed product? Is this a hazard because it is being put into building materials? Is this something that is going to affect a number of people in the world? That’s the inquiry.

The third part of your question was when that would occur. It could occur at two times. If you are a litigant involved in one of these cases and seek as part of a settlement to seal the records, the judge won’t do that unless he’s convinced that there is not a substantial public hazard that’s going to be concealed in that record. The judge would have the inquiry there. If he/she decides that it is not and goes ahead and seals the records, then sometime down the road there would be standing if there were additional facts and circumstances which arise to change that determination. It might be brought before that judge or another judge in that jurisdiction in an independent action.

Again, the same standard would apply. What kind of evidence can be shown that this is truly a substantial public hazard? Is this effected with the public interest? I would point out that it is, by coincidence, similar to the discussion we had earlier today on the amendment regarding the professional associations as these are the people who are serving the public in these various professions. We heard the discussion between the Chairman of Commerce and myself. The idea, he said, of that committee has always been the notion that if you’re a professional serving the public and there is a violation of a disciplinary rule, the public is entitled to know because they are going to be using the services. Well, the same applies to a toy, IUD, breast implant, building material, tire, gas tank or motor. I could go on and on. The public has a right to know and not utilize the courts in a manner that the courts are, essentially, participating in the concealment of that public hazard. That is the reason for that language. That’s the reason for that procedure. It is a good and judicious procedure, and it is one that will protect the interest of the both the public and the litigants who truly don’t have a problem that is effected with the public interest.

Senator Amodei:

Thank you, Madam President. I know your committee has done a lot of work on arbitration, fast tracking in various court contexts, trying to reduce the litigation load and the procedure by which claims in civil context go to litigation. Was there any testimony as to what effect this, potentially, would have on that?

Senator James:

Yes, thank you, Madam President. I would share with the body that there was some substantial opposition to the bill. It was an interesting situation because, Madam President, if I could extend my remarks to say I requested this bill last legislative session to be put on the rolls for this legislative session. I indicated the Committee on Judiciary requested it on my discretion following the legislative session. We held a hearing on the bill and nobody came except for the supporters of the bill. There was no opposition. Then some opposition materialized so I held a second hearing. At that hearing, there was some substantial discussion.

To the Senator from Carson City, some of that discussion was that this was going to increase litigation because people are not going to want to settle if their settlements have to be public. I tend not to believe that. I have been a trial lawyer and a litigator myself, on both sides of the issue, both representing defendants and plaintiffs in various types of cases, not personal injury cases or injury cases so to speak. But the notion that someone is not going to settle and that the only reason that they’re not going to settle is because the settlement has to become public, I don’t think always carries the day. It’s a factor to be weighed, but it’s far outweighed by the public policy that’s set forth in this legislation. I believe this is legislation that can be supported by business because good businesses, the ones that are not trying to conceal something that they put into the stream of commerce that can be hazardous are not concerned with this whatsoever. It is not going to happen to them. From the opposition we got in the committee, I think we addressed it with the amendment that’s proposed to you today.

Senator O'Donnell:

Thank you, Madam President. I have one more question. You mentioned breast implants and IUDs, and there are even medicines women can take that can cause damage and harm. Is there any protection for the woman who is to be deposed in terms of their lawsuit? Will that very personal information be disclosed in this amended bill? The second question to that would be, if there were a settlement, would the amount of the money be disclosed? And the individuals who received the settlement money, would that be disclosed as well?

Senator James:

Thank you, Madam President. That is also an excellent question. It is one that was considered by the committee and is considered in the legislation. I wish I had said this at the beginning because it is a good question. This bill does not affect the inherent power of the court, and the power of the court that comes under Rule 26 regarding discovery, to enter a protective order, to protect people from information being disclosed to the public that is not necessary for the public to know, or, in fact, for the other party to litigation to know.

Normally, depositions are not filed unless there is a trial. Written discovery is exchanged by the parties but not filed with the court until such time as it’s utilized in a trial on the merits. In most cases that are settled prior to trial, the documents and the discovery will not be filed and won’t be part of the court record. If they happen to be part of the court record, or they happen to be sought by the person who is obtaining this stuff, there is no question that the court retains the inherent power and the power under Rule 26 to enter a protective order to not disclose that personal information, or indeed, the financial information that is not relevant to the public hazard.

What’s relevant here is the public hazard that’s being set away. That is what the bill is going to require to become public. This other information can be protected by the court on a discretionary basis, an ad hoc basis, and that situation pertains in the law now. The court has that power now. I think those protections are inherent in the bill as well as the rules that apply to litigation now.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 474.

Bill read second time.

The following amendment was proposed by the Committee on Judiciary:

Amendment No. 243.

Amend the bill as a whole by renumbering sections 6 through 27 as sections 7 through 28 and adding a new section designated sec. 6, following sec. 5, to read as follows:

“Sec. 6. NRS 104.9109 is hereby amended to read as follows:

104.9109 1. Except as otherwise provided in subsections 3 and 4, this article applies to:

(a) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;

(b) An agricultural lien;

(d) A consignment;

(e) A security interest arising under NRS 104.2401, 104.2505, subsection 3 of NRS 104.2711 [,] or subsection 5 of NRS 104A.2508, as provided in NRS 104.9110; and

(f) A security interest arising under NRS 104.4210 or 104.5118.

2. The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.

3. This article does not apply to the extent that:

(a) A statute, regulation or treaty of the United States preempts this article; or

(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)] The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under NRS 104.5114.

4. This article does not apply to:

(a) A landlord’s lien, other than an agricultural lien;

(b) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but NRS 104.9333 applies with respect to priority of the lien;

(d) A sale of accounts, chattel paper, payment intangibles or promissory notes as part of a sale of the business out of which they arose;

(e) An assignment of accounts, chattel paper, payment intangibles or promissory notes which is for the purpose of collection only;

(f) An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;

(g) An assignment of a single account, payment intangible or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;

(h) A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but NRS 104.9315 and 104.9322 apply with respect to proceeds and priorities in proceeds;

(i) An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;

(j) A right of recoupment or set-off, but:

(1) NRS 104.9340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and

(2) NRS 104.9404 applies with respect to defenses or claims of an account debtor;

(k) The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:

(1) Liens on real property in NRS 104.9203 and 104.9308;

(2) Fixtures in NRS 104.9334;

(3) Fixture filings in NRS 104.9501, 104.9502, 104.9512, 104.9516 and 104.9519; and

(4) Security agreements covering personal and real property in NRS 104.9604;

(l) An assignment of a claim arising in tort, other than a commercial tort claim, but NRS 104.9315 and 104.9322 apply with respect to proceeds and priorities in proceeds; [or]

(m) An assignment of a deposit account in a consumer transaction, but NRS 104.9315 and 104.9322 apply with respect to proceeds and priorities in proceeds [.] ; or

(n) A transfer by a government or governmental unit.”.

Senator Care moved the adoption of the amendment.

Remarks by Senator Care.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 481.

Bill read second time.

The following amendment was proposed by the Committee on Transportation:

Amendment No. 532.

Amend sec. 55, page 19, line 10, by deleting “privilege” and inserting “governmental services”.

Amend sec. 58, page 20, line 40, by deleting “privilege” and inserting “governmental services”.

Amend sec. 58, page 21, line 39, by deleting “privilege” and inserting “governmental services”.

Amend the bill as a whole by adding a new section designated sec. 148.5, following sec. 148, to read as follows:

“Sec. 148.5. NRS 408.235 is hereby amended to read as follows:

408.235 1. There is hereby created the state highway fund.

2. Except as otherwise provided in subsection 7 of NRS 482.180 and NRS 482.1805, the proceeds from the imposition of any:

(a) License or registration fee and other charges with respect to the operation of any motor vehicle upon any public highway, city, town or county road, street, alley or highway in this state; and

(b) Excise tax on gasoline or other motor vehicle fuel,

must be deposited in the state highway fund and must, except for costs of administering the collection thereof, be used exclusively for administration, construction, reconstruction, improvement and maintenance of highways as provided for in this chapter.

3. The interest and income earned on the money in the state highway fund, after deducting any applicable charges, must be credited to the fund.

4. [Costs of administration for the collection of the proceeds for any license or registration fees and other charges with respect to the operation of any motor vehicle must be limited to a sum not to exceed 22 percent of the total proceeds so collected.

5.] Costs of administration for the collection of any excise tax on gasoline or other motor vehicle fuel must be limited to a sum not to exceed 1 percent of the total proceeds so collected.

[6.] 5. All bills and charges against the state highway fund for administration, construction, reconstruction, improvement and maintenance of highways under the provisions of this chapter must be certified by the director and must be presented to and examined by the state board of examiners. When allowed by the state board of examiners and upon being audited by the state controller, the state controller shall draw his warrant therefor upon the state treasurer.”.

Amend sec. 225, page 117, line 46, by deleting “privilege” and inserting “governmental services”.

Amend sec. 225, page 118, line 1, by deleting: “motor vehicle privilege” and inserting “governmental services”.

Amend sec. 225, page 118, line 2, by deleting “this chapter;” and inserting: “chapter 371 of NRS;”.

Amend sec. 226, page 118, line 18, by deleting “privilege” and inserting “governmental services”.

Amend sec. 226, page 118, line 21, by deleting: “motor vehicle privilege” and inserting “governmental services”.

Amend sec. 241, page 122, line 10, after “43 to” by inserting: “54, inclusive, 56, 57, 59 to”.

Amend sec. 241, page 122, line 11, by deleting “225” and inserting “227”.

Amend sec. 241, page 122, line 15, after “2.” by inserting: “Sections 55, 58, 225 and 226 of this act become effective at 12:01 a.m. on July 1, 2001.

3.”.

Amend the title of the bill, third line, after “safety;” by inserting: “removing the limitation on the costs of administration payable from the state highway fund for the collection of the proceeds of certain fees and charges relating to the operation of motor vehicles;”.

Amend the summary of the bill to read as follows:

“SUMMARY—Provides for reorganization of department of motor vehicles and public safety into two departments and removes limitation on costs of administration payable from state highway fund for collection of proceeds of certain fees and charges relating to operation of motor vehicles. (BDR 43‑1107)”.

Senator O'Donnell moved the adoption of the amendment.

Remarks by Senator O'Donnell.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 534.

Bill read second time.

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

Amendment No. 605.

Amend sec. 3, page 1, line 7, by deleting “Review” and inserting: “Coordinate with local air pollution control boards to review”.

Amend sec. 4, page 2, line 7, after “board” by inserting: “in a county whose population is 400,000 or more”.

Amend sec. 5, page 2, line 29, after “1.” by inserting: “The commission shall adopt regulations which establish measures for the control and reduction of regional haze to meet the standards established by federal law and the regulations relating thereto.

2.”.

Amend sec. 5, page 2, by deleting line 30 and inserting:

“(a) Enforce the measures for control and reduction of regional haze adopted by the commission;”.

Amend sec. 5, page 2, by deleting lines 33 through 36 and inserting:

“(c) Establish and submit to the Federal”.

Amend sec. 5, page 2, line 38, by deleting “thereto.” and inserting: “thereto; and

(d) Periodically review the progress and effectiveness of the measures for control and reduction of regional haze adopted by the commission.”.

Amend sec. 5, page 2, line 39, by deleting “2.” and inserting “3.”.

Amend sec. 5, page 2, line 42, by deleting “haze.” and inserting: “haze consistent with the measures adopted by the commission.”.

Amend sec. 5, page 2, line 43, by deleting “3.” and inserting “4.”.

Amend sec. 11, page 5, by deleting lines 3 and 4 and inserting:

“In consultation with the department of business and industry, the department shall develop a program that provides”.

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

“Sec. 12. 1. Notwithstanding the provisions of subsection 2 of section 10 and section 11 of this act, the state department of conservation and natural resources shall:

(a) Complete plans for the development of the programs described in those provisions; and

(b) Not carry out the programs described in those provisions until the programs are approved and funded by the legislature.

2. The state department of conservation and natural resources shall present the plans completed pursuant to subsection 1 to the 72nd session of the Nevada legislature.”.

Amend the title of the bill to read as follows:

“AN ACT relating to air pollution; requiring the state department of conservation and natural resources to take certain actions with regard to the financing of programs for the control of air pollution; providing for the review of an implementation plan of a local air pollution control board by the department; requiring the state environmental commission to establish standards for the control of regional haze; requiring certain local air pollution control boards to conduct an audit of their programs for the control of air pollution; requiring the department to develop a program that provides incentives for the repair of motor vehicles which do not comply with the standards for emission; revising the provisions relating to the determination of the adequacy of certain programs for the control of air pollution; requiring the department to develop a program to provide incentives for the use of alternative fuels in motor vehicles; requiring the department to report to the legislature concerning such programs; and providing other matters properly relating thereto.”.

Senator James moved the adoption of the amendment.

Remarks by Senator James.

Amendment adopted.

Senator James moved that Senate Bill No. 534 be re-referred to the Committee on Finance upon return from reprint.

Remarks by Senator James.

Motion carried.

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

Senate Bill No. 553.

Bill read second time.

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

Amendment No. 480.

Amend sec. 23, page 13, by deleting lines 30 through 37 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;

Amend sec. 23, page 13, line 38, by deleting “(d)” and inserting:

“(d)] or

(b)”.

Amend the bill as a whole by deleting sections 25 through 27 and adding:

“Secs. 25-27. (Deleted by amendment.)”.

Amend sec. 32, page 16, line 47, by deleting “expenses.” and inserting: “expenses, except that:

1. The proceeds of any obligation issued to construct or acquire a facility may be used to pay operating expenses for the period provided in subsection 7 of NRS 350.516.

2. The proceeds of a medium-term obligation issued by a local government with respect to which the Nevada tax commission has determined that a financial emergency exists pursuant to NRS 354.685 may be used to pay operating expenses with the approval of the executive director of the department of taxation.”.

Amend sec. 44, page 25, line 3, by deleting: “motor vehicle privilege” and inserting “governmental services”.

Amend sec. 44, page 25, lines 6 and 7, by deleting: “motor vehicle privilege” and inserting “governmental services”.

Amend the bill as a whole by renumbering sections 48 through 59 as sections 49 through 60 and adding a new section designated sec. 48, following sec. 47, to read as follows:

“Sec. 48. NRS 387.335 is hereby amended to read as follows:

387.335 1. The board of trustees of a county school district may issue its general obligations to raise money for the following purposes, and no others:

(a) Construction, design or purchase of new buildings for schools, including, but not limited to, teacherages, dormitories, dining halls, gymnasiums and stadiums.

(b) Enlarging, remodeling , [or] repairing or replacing existing buildings or grounds for schools, including, but not limited to, teacherages, dormitories, dining halls, gymnasiums and stadiums.

(c) Acquiring sites for building schools, or additional real property for necessary purposes related to schools, including, but not limited to, playgrounds, athletic fields and sites for stadiums.

(d) Paying expenses relating to the acquisition of school facilities which have been leased by a school district pursuant to NRS 393.080.

(e) Purchasing necessary furniture and equipment for schools [.] , including, without limitation, equipment used in educating pupils, furniture for school buildings and equipment used for the transportation of pupils. If money from the issuance of general obligations is used to purchase furniture and equipment to replace existing furniture and equipment, and that existing furniture and equipment subsequently is sold, the proceeds from the sale must be applied toward the retirement of those obligations. If equipment used for the transportation of pupils is purchased pursuant to this paragraph, only the following equipment may be purchased:

(1) Motor vehicles that use biodiesel, compressed natural gas or a similar fuel formulated to reduce emissions from the amount of emissions produced from traditional fuels such as gasoline and diesel fuel;

(2) Equipment to retrofit motor vehicles to use biodiesel, compressed natural gas or a similar fuel formulated to reduce emissions from the amount of emissions produced from traditional fuels such as gasoline and diesel fuel; or

(3) Equipment for the transportation, storage or dispensing of biodiesel, compressed natural gas or similar fuels formulated to reduce emissions from the amount of emissions produced from traditional fuels such as gasoline and diesel fuel.

2. Any one or more of the purposes enumerated in subsection 1 may, by order of the board of trustees entered in its minutes, be united and voted upon as one single proposition.

3. Any question submitted pursuant to this section and any question submitted pursuant to NRS 387.3285 may, by order of the board of trustees entered in its minutes, be united and voted upon as a single proposition.

4. As used in this section, “biodiesel” has the meaning ascribed to it in 42 U.S.C. § 13220.”.

Amend sec. 59, page 37, by deleting lines 1 through 4 and inserting:

“Sec. 60. 1. This section and section 48 of this act become effective upon passage and approval.

2. Sections 1 to 22, inclusive, 24 to 43, inclusive, 45, 46, 47 and 49 to 59, inclusive, become effective on July 1, 2001.

3. Sections 23 and 44 of this act become effective at 12:01 a.m. on July 1, 2001.”.

Senator O'Connell moved the adoption of the amendment.

Remarks by Senators O'Connell and Neal.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 554.

Bill read second time.

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

Amendment No. 476.

Amend section 1, page 1, line 3, by deleting “Each” and inserting: “Except as otherwise provided in NRS 278.310, each”.

Amend section 1, page 1, by deleting line 11 and inserting:

“(d) Any other person”.

Amend section 1, page 2, line 1, by deleting “An” and inserting: “Except as otherwise provided in NRS 278.310, an”.

Amend sec. 6, page 4, lines 28 and 39, by deleting “3,” and inserting “4,”.

Amend sec. 6, page 4, line 44, after “3.” by inserting: “Each governing body which has created a board of adjustment pursuant to NRS 278.270 shall adopt an ordinance providing that any person who is aggrieved by a decision of the board of adjustment regarding an appeal of an administrative decision may appeal the decision of the board of adjustment. An ordinance that a governing body is required to adopt pursuant to this subsection must either:

(a) Comply with subsection 2 of section 1 of this act, thereby requiring the aggrieved person first to appeal the decision of the board of adjustment to the governing body; or

(b) Set forth a separate procedure which allows the aggrieved person to appeal the decision of the board of adjustment directly to the district court of the proper county by filing a petition for judicial review within 25 days after the date of filing of notice of the decision with the clerk or secretary of the board of adjustment, as provided in NRS 278.0235.

4.”.

Amend sec. 12, page 9, line 6, after “presented” by inserting: “to that entity for recordation”.

Amend the title of the bill, fourth line, after “court;” by inserting: “authorizing the governing body of a county or city to adopt an alternative procedure allowing certain decisions of a board of adjustment to be appealed directly to the district court;”.

Senator Titus moved the adoption of the amendment.

Remarks by Senator Titus.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 555.

Bill read second time.

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

Amendment No. 481.

Amend sec. 3, page 2, line 11, by deleting “20,000” and inserting “[20,000] 50,000”.

Amend sec. 3, page 2, by deleting lines 13 and 14 and inserting:

“2. Those cities having [more than 5,000 and less than 20,000] 5,000 or more, but fewer than 50,000 inhabitants shall be known as cities of [the second”.

Amend sec. 4, page 2, line 20, by deleting “20,000” and inserting “[20,000] 50,000”.

Amend sec. 11, page 4, line 29, by deleting: “misdemeanors by NRS 193.120.” and inserting: “by law for misdemeanors.”.

Amend sec. 12, page 4, lines 31 and 40, by deleting “temporary” and inserting “[temporary]”.

Amend sec. 14, page 5, line 39, after “a” by inserting “city”.

Amend sec. 26, page 8, line 33, by deleting “law, [the” and inserting: “specific law [, the”.

Amend sec. 26, page 8, line 39, after “resolution.]” by inserting “or ordinance,”.

Amend sec. 35, page 10, line 30, by deleting “20,000” and inserting “[20,000] 50,000”.

Amend sec. 36, page 10, line 36, by deleting “20,000.” and inserting “[20,000.] 50,000.”.

Senator Porter moved the adoption of the amendment.

Remarks by Senator Porter.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 563.

Bill read second time.

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

Amendment No. 272.

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

“Section 1. Chapter 244A of NRS is hereby amended by adding thereto a new section to read as follows:

1. If a customer of a supplier of mobile telephone service believes that the amount of a surcharge imposed pursuant to NRS 244A.7643 or the designation of a place of primary use is incorrect, the customer may notify the supplier of mobile telephone service in writing of the alleged error. The notice must include:

(a) The street address for the place of primary use of the customer;

(b) The account number and name shown on the billing statement of the account for which the customer alleges the error;

(d) Any other information which the supplier of mobile telephone service may reasonably require to investigate the alleged error.

2. Within 60 days after receiving a notice sent pursuant to subsection 1, the supplier of mobile telephone service shall review the records that the supplier of mobile telephone service uses to determine the place of primary use of its customers.

3. If the review indicates:

(a) That the alleged error exists, the supplier of mobile telephone service shall correct the error and refund or credit the customer for the amount which was erroneously collected for the applicable period, not to exceed the 24 months immediately preceding the date on which the customer notified the supplier of mobile telephone service of the alleged error.

(b) That no error exists, the supplier of mobile service shall provide a written explanation to the customer who alleged the error.

4. A customer may not bring a cause of action against a supplier of mobile telephone service for surcharges incorrectly imposed pursuant to NRS 244A.7643 unless he first complies with this section.

Sec. 2. NRS 244A.7641 is hereby amended to read as follows:

244A.7641 As used in NRS 244A.7641 to 244A.7647, inclusive, and section 1 of this act, unless the context otherwise requires:

1. “Mobile telephone service” means cellular or other service to a telephone installed in a vehicle or otherwise portable.

2. “Place of primary use” has the meaning ascribed to it in 4 U.S.C. § 124(8), as that section existed on October 1, 2001.

3. “Supplier” means a person authorized by the Federal Communications Commission to provide mobile telephone service.”.

Amend section 1, page 2, by deleting lines 20 through 23 and inserting:

“5. As used in this section, “trunk line” means a line which provides a channel between a”.

Amend the bill as a whole by renumbering sections 2 through 5 as sections 8 through 11 and adding new sections designated sections 4 through 7, following section 1, to read as follows:

“Sec. 4. Chapter 354 of NRS is hereby amended by adding thereto the provisions set forth as sections 5 and 6 of this act.

Sec. 5. 1. If a customer of a public utility that sells or resells personal wireless services believes that the amount of a fee imposed pursuant to this section and NRS 354.59881 to 354.59889, inclusive, or the designation of a place of primary use is incorrect, the customer may notify the public utility in writing of the alleged error. The notice must include:

(a) The street address for the place of primary use of the customer;

(b) The account number and name shown on the billing statement of the account for which the customer alleges the error;

(d) Any other information which the public utility may reasonably require to investigate the alleged error.

2. Within 60 days after receiving a notice sent pursuant to subsection 1, the public utility shall review the records which the public utility uses to determine the place of primary use of its customers.

3. If the review indicates:

(a) That the alleged error exists, the public utility shall correct the error and refund or credit the customer for the amount which was erroneously collected for the applicable period, not to exceed the 24 months immediately preceding the date on which the customer notified the public utility of the alleged error.

(b) That no error exists, the public utility shall provide a written explanation to the customer who alleged the error.

4. A customer may not bring a cause of action against a public utility that sells or resells personal wireless services for fees incorrectly imposed pursuant to this section and NRS 354.59881 to 354.59889, inclusive, unless he first complies with this section.

Sec. 6. “Place of primary use” has the meaning ascribed to it in 4 U.S.C. § 124(8), as that section existed on October 1, 2001.

Sec. 7. NRS 354.59881 is hereby amended to read as follows:

354.59881 As used in NRS 354.59881 to 354.59889, inclusive, and sections 5 and 6 of this act, unless the context otherwise requires, the words and terms defined in NRS 354.598811 to 354.598818, inclusive, and section 6 of this act have the meanings ascribed to them in those sections.”.

Amend sec. 2, page 2, by deleting lines 46 through 48.

Amend the title of the bill, first line, after “telecommunications;” by inserting: “providing a procedure by which a customer may dispute a surcharge, fee or designation of place of primary use;”.

Senator Care moved the adoption of the amendment.

Remarks by Senator Care.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Rhoads moved that Senate Bill No. 531 be taken from the Secretary's desk and placed on General File.

Remarks by Senator Rhoads.

Motion carried.

Senator Raggio moved that the Senate recess until 5 p.m.

Motion carried.

Senate in recess at 1:10 p.m.

SENATE IN SESSION

At 6:36 p.m.

President Hunt presiding.

Quorum present.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Commerce and Labor, to which were referred Senate Bills Nos. 133, 216, 274, 516, 558, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Randolph J. Townsend, Chairman

Madam President:

Your Committee on Finance, to which was referred Senate Bill No. 498, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

William J. Raggio, Chairman

Madam President:

Your Committee on Government Affairs, to which was referred Senate Bill No. 123, 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 Senate Bill No. 355, 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 Legislative Affairs and Operations.

Ann O'Connell, Chairman

Madam President:

Your Committee on Human Resources and Facilities, to which were referred Senate Bills Nos. 86, 305, 424, 539, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Raymond D. Rawson, Chairman

Madam President:

Your Committee on Judiciary, to which was referred Senate Bill No. 412, 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 Judiciary, to which was referred Senate Bill No. 295, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and re-refer to the Committee on Finance.

Mark A. James, Chairman

Madam President:

Your Committee on Natural Resources, to which were referred Senate Bills Nos. 211, 535, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Dean A. Rhoads, Chairman

Madam President:

Your Committee on Taxation, to which was referred Senate Bill No. 273, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Mike McGinness, Chairman

Madam President:

Your Committee on Transportation, to which were referred Senate Bills Nos. 56, 303, 503, 520, 523, has had the same under consideration, and begs leave to report the same back with the

recommendation: Amend, and do pass as amended.

William R. O'Donnell, Chairman

SECOND READING AND AMENDMENT

Senate Bill No. 394.

Bill read second time.

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

Amendment No. 626.

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

“Section 1. Chapter 632 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

Sec. 2. The board, or a medical facility or any other person who employs a licensee, shall not require a licensee while on duty, to wear a badge or other form of identification that includes the surname of the licensee.

Sec. 3. Each employer of a licensee or nursing assistant shall prepare and maintain, for at least 5 years, a record of the work assignments of each licensee or nursing assistant.

Sec. 4. NRS 632.125 is hereby amended to read as follows:

632.125 1. Each hospital or agency in the state employing professional or practical nurses or nursing assistants shall submit alist of such nursing personnel to the board at least three times annually as directed by the board. Each list submitted to the board pursuant to this subsection is confidential.

2. A medical facility shall, before hiring a nursing assistant or nursing assistant trainee, obtain validation from the board that the prospective employee has a current certificate, is enrolled in a training program required for certification or is awaiting the results of a certification examination.

Sec. 5. NRS 632.310 is hereby amended to read as follows:

632.310 1. The board may, upon its own motion, and shall, upon the verified complaint in writing of any person, if the complaint alone or together with evidence, documentary or otherwise, presented in connection therewith, is sufficient to require an investigation, investigate the actions of any licensee or holder of a certificate or any person who assumes to act as a licensee or holder of a certificate within the State of Nevada.

2. The executive director may, upon receipt of information from a governmental agency, conduct an investigation to determine whether the information is sufficient to require an investigation for referral to the board for its consideration.

3. If a written verified complaint filed with the board does not include the complete name of the licensee or nursing assistant against whom the complaint is filed, and the board is unable to identify the licensee or nursing assistant, the board shall request that the employer of the licensee or nursing assistant provide to the board the complete name of the licensee or nursing assistant. The employer shall provide the name to the board within 3 business days after the request is made.

4. The employer of a licensee or nursing assistant shall provide to the board, upon its request, the record of the work assignments of any licensee or nursing assistant whose actions are under investigation by the board.

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

Amend the title of the bill to read as follows:

“AN ACT relating to nursing; prohibiting the state board of nursing or an employer of a nurse from requiring the inclusion of the surname of the nurse on the badge or other form of identification worn by the nurse while on duty; requiring the employers of licensees and nursing assistants to prepare and maintain records of the work assignments of those licensees and nursing assistants for a certain period; revising the provisions governing the filing of complaints with the state board of nursing; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Revises provisions relating to practice of nursing. (BDR 54‑1136)”.

Senator Raggio moved the adoption of the amendment.

Remarks by Senator Raggio.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 86.

Bill read second time.

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

Amendment No. 547.

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

“Section 1. The Legislative Commission shall appoint a committee consisting of an equal number of legislators from the Assembly and the Senate to conduct an interim study concerning the use of police powers on public school grounds and at school activities.

Sec. 2. The committee appointed pursuant to section 1 of this act shall include, without limitation, the following topics in its study:

1. An exploration of the feasibility of establishing a community-based policing system within school districts that currently employ school police;

2. A full review of potential mechanisms for establishing community police “precincts” or units of local law enforcement within schools currently served by school police, including employee transition matters, such as the retraining of school police personnel, employment opportunities for school police personnel within the new structure and any special training needed for local law enforcement;

3. An examination of the possible options for funding such a reassignment of responsibilities, including transfers of funds or the creation of special taxing districts; and

4. An analysis of the existing jurisdictional issues and the relationship between school police and local law enforcement.

Sec. 3. 1. The Legislative Commission shall submit a report of its findings and any recommendations for legislation to the 72nd session of the Nevada Legislature.

2. Any recommended legislation proposed by the committee appointed pursuant to section 1 of this act must be approved by a majority of the members of the Senate and a majority of the members of the Assembly appointed to the committee.

Sec. 4. There is hereby appropriated from the state general fund to the legislative fund created by NRS 218.085 the sum of $10,000 for allocation by the Legislative Commission to pay for consulting services to assist the committee in carrying out the interim study.”.

Amend the bill as a whole by adding a preamble, immediately preceding the enacting clause, to read as follows:

“Whereas, For at least the past several legislative sessions, jurisdictional issues involving school police and local law enforcement have been reviewed and presented to legislators; and

Whereas, There are key issues of jurisdiction, interlocal agreements and notification procedures that appear to remain unresolved among the various parties; and

Whereas, The principal concern of all parties must be the safety of the school children of Nevada and the assurance that schools are a safe haven where learning can take place; now, therefore”.

Amend the title of the bill to read as follows:

“AN ACT relating to school police; directing the Legislative Commission to conduct an interim study concerning the use of police powers on public school grounds and at school activities; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Directs the Legislative Commission to conduct interim study concerning use of police powers on public school grounds and at school activities. (BDR S‑823)”.

Senator Rawson moved the adoption of the amendment.

Remarks by Senator Rawson.

Amendment adopted.

Senator Rawson moved that Senate Bill No. 86 be re-referred to the Committee on Legislative Affairs and Operations upon return from reprint.

Remarks by Senator Rawson.

Motion carried.

Bill ordered reprinted, engrossed and to the Committee on Legislative Affairs and Operations.

Senate Bill No. 123.

Bill read second time.

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

Amendment No. 34.

Amend the bill as a whole by renumbering sections 1 and 2 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 350 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

Sec. 2. At the annual meeting in July required by NRS 350.003, the commission shall:

1. Specify a percentage, which must not be less than 75 percent, for the purposes of paragraph (d) of subsection 1 of NRS 350.0051; and

2. Establish priorities among essential and nonessential facilities and services for the purposes of paragraph (d) of subsection 1 of NRS 350.0051. Facilities and services relating to public safety, education and health must be considered essential facilities and services, and all other facilities and services must be considered nonessential facilities and services.”.

Amend section 1, page 1, by deleting lines 1 through 11 and inserting:

“Sec. 3. 1. Before a municipality may submit to the commission a proposal that will result in an increase in the rate of property taxes, the municipality shall:

(a) Determine whether there is an affected governmental entity; and

(b) If there is an affected governmental entity, provide written notification to the affected governmental entity.”.

Amend section 1, page 2, lines 2, 8, 11, 20 and 21, by deleting “ad valorem” and inserting “property”.

Amend section 1, page 2, by deleting lines 23 through 34 and inserting:

“6. In resolving a conflict pursuant to subsection 5, the commission may impose:

(a) A condition or provision described in subsection 2 of NRS 350.005; and

(b) A condition that:

(1) The amount of the general obligation debt proposed to be imposed must be reduced;

(2) The rate of the special elective tax must be reduced; or

(3) Both subparagraphs (1) and (2).

7. The commission may establish:

(a) A method for resolving conflicts over the unlevied amount of property taxes that may be levied pursuant to NRS 354.59811;

(b) A method for determining the highest and best use of the unlevied amount of property taxes that may be levied pursuant to NRS 354.59811, which must be based upon a comparison of the public”.

Amend section 1, page 2, by deleting lines 39 and 40 and inserting:

“(c) A procedure for allowing a municipality that does not levy the maximum amount of property taxes which it may levy pursuant to NRS 354.59811 to reserve a percentage of the remaining allowable increase of property taxes for”.

Amend section 1, page 2, lines 47 and 49, by deleting “ad valorem” and inserting “property”.

Amend section 1, page 3, by deleting lines 1 through 5 and inserting:

“8. This section does not apply to any proposal that is not expected to result in an increase in the rate of property taxes in any jurisdiction.

9. As used in this section:

(a) “Affected governmental entity” means a governmental entity:

(1) That has territory which overlaps the territory of the municipality proposing the special elective tax or general obligation debt;

(2) That is currently not levying the maximum rate of property taxes which it may levy pursuant to NRS 354.59811; and

(3) For which the total combined tax rate levied on the overlapping territory would exceed the limit set forth in NRS 361.453 if the current combined tax rate levied on the overlapping territory is added to:

(I) The tax rate projected for the special elective tax or general obligation debt being proposed by the municipality; and

(II) The unlevied amount of property taxes that currently may be levied by the governmental entity pursuant to NRS 354.59811.

(b) “Remaining allowable increase of property taxes” means the difference between the tax rate allowed for a municipality in the current fiscal year pursuant to NRS 354.59811 minus the tax rate levied by the municipality in the current fiscal year.”.

Amend sec. 2, page 3, line 7, by deleting “section 1” and inserting: “sections 2 and 3”.

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

“Sec. 5. NRS 350.0035 is hereby amended to read as follows:

350.0035 1. Except as otherwise provided in this section, on or before July 1 of each year, the governing body of a municipality which proposes to issue or has outstanding any general obligation debt, other general obligations or special obligations, or which levies or proposes to levy any special elective tax, shall submit to the department of taxation and the commission:

(a) A complete statement of current [and contemplated] general obligation debt and special elective taxes, and a report of current [and contemplated] debt and special assessments and retirement schedules, in the detail and form established by the committee on local government finance.

(b) A complete statement, in the detail and form established by the committee on local government finance, of general obligation debt and special elective taxes contemplated to be submitted to the commission during the fiscal year.

(1) A discussion of its ability to afford existing general obligation debt, authorized future general obligation debt and proposed future general obligation debt;

(2) A discussion of its capacity to incur authorized and proposed future general obligation debt without exceeding the applicable debt limit;

(3) A discussion of its general obligation debt that is payable from [ad valorem] property taxes per capita as compared with such debt of other municipalities in this state;

(4) A discussion of its general obligation debt that is payable from [ad valorem] property taxes as a percentage of assessed valuation of all taxable property within the boundaries of the municipality;

(5) Policy regarding the manner in which the municipality expects to sell its debt;

(6) A discussion of its sources of money projected to be available to pay existing general obligation debt, authorized future general obligation debt and proposed future general obligation debt; and

(7) A discussion of its operational costs and revenue sources, for the ensuing 5 fiscal years, associated with each project included in its plan for capital improvement submitted pursuant to paragraph [(c),] (d), if those costs and revenues are expected to affect the property tax rate.

[(c)] (d) Its plan for capital improvement for the ensuing [3] 5 fiscal years, which must include any contemplated issuance of general obligation debt during this period and the sources of money projected to be available to pay the debt.

[(d)] (e) A statement containing the name, title, mailing address and telephone number of the chief financial officer of the municipality.

2. The governing body of a municipality may combine a statement or plan required by subsection 1 with the corresponding statement or plan of another municipality if both municipalities have the same governing body or the governing bodies of both municipalities agree to such a combination.

3. [The] Except as otherwise provided in subsection 4, the governing body of each municipality shall update all statements and plans required by subsection 1 not less frequently than [annually.] once each fiscal year.

4. In a county whose population is 100,000 or more, the governing body of each municipality shall update all statements and plans required by subsection 1 not less often than once each fiscal year and not more often than twice each fiscal year, except that a municipality may update a statement or plan required by subsection 1 more often than twice each fiscal year:

(a) If the governing body determines, by a two-thirds vote, that an emergency requires that a statement or plan be updated;

(b) To include an item related to:

(1) An installment purchase that does not count against a debt limit; or

(2) An obligation for which no additional property tax is expected;

(d) To comply with the requirements of subsection 5 of NRS 268.625 or subsection 1 of NRS 350.091.

5. The provisions of this section do not apply to the Airport Authority of Washoe County so long as the authority does not have any general obligation bonds outstanding and does not issue or propose to issue any such bonds. At least 30 days before each annual meeting of the commission, the authority shall submit to the department of taxation a written statement regarding whether the authority is planning to propose to issue any general obligation bonds before the next following annual meeting of the commission.”.

Amend sec. 3, page 3, line 45, by deleting “ad valorem” and inserting: “[ad valorem] property”.

Amend sec. 3, page 4, lines 1 and 3, by deleting “ad valorem” and inserting: “[ad valorem] property”.

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

Amend sec. 3, page 4, by deleting lines 17 through 27 and inserting: “affected governmental entity to levy the maximum amount of property taxes that it may levy pursuant to NRS 354.59811, unless:

(1) The proposal includes a resolution approving the proposal pursuant to subsection 3 of section 3 of this act from each affected governmental entity whose ability to levy property taxes will be affected by the commission’s approval of the proposal; or

(2) The commission has resolved all conflicts between the municipality and all affected governmental entities and has approved the increase in property taxes resulting from the proposal pursuant to section 3 of this act.”.

Amend sec. 3, page 5, by deleting lines 4 through 15 and inserting: “subsection 4, will affect the ability of an affected governmental entity to levy the maximum amount of property taxes that it may levy pursuant to NRS 354.59811, unless:

(a) The proposal includes a resolution approving the proposal pursuant to subsection 3 of section 3 of this act from each affected governmental entity whose ability to levy property taxes will be affected by the commission’s approval of the proposal; or

(b) The commission has resolved all conflicts between the municipality and all affected governmental entities and has approved the increase in property taxes resulting from the proposal pursuant to section 3 of this act.”.

Amend sec. 3, page 5, between lines 18 and 19, by inserting:

“8. As used in this section, “affected governmental entity” has the meaning ascribed to it in subsection 9 of section 3 of this act.”.

Amend the bill as a whole by renumbering sections 4 through 6 as sections 8 through 10 and adding a new section designated sec. 7, following sec. 3, to read as follows:

“Sec. 7. NRS 350.005 is hereby amended to read as follows:

350.005 1. The governing body of the municipality proposing to incur general obligation debt or levy a special elective tax and the board of trustees of a general improvement district whose population within its boundaries is less than 5,000, who proposes to borrow money and issue any securities other than securities representing a general obligation debt, shall notify the secretary of each appropriate commission, and shall submit a statement of its proposal in sufficient number of copies for each member of the commission. The secretary, with the approval of the chairman, shall, within 10 days, give notice of a meeting, in the manner required by chapter 241 of NRS, to be held not more than 20 days thereafter. He shall provide a copy of the proposal to each member with the notice of the meeting, and mail notice of the meeting to the chief financial officer of each municipality in the county which has complied with subsection 1 of NRS 350.0035 within the past year.

2. The commission may grant a conditional or provisional approval of such proposal. Such conditions or provisions are limited to the scheduling of:

(a) The issuance and retirement of securities, if the proposal is to incur general obligation debt; or

(b) The imposition of the tax, if the proposal is to levy a special elective tax.

3. If the proposal is from a municipality, the commission may not approve any portion of the proposal that is not included in the statement filed pursuant to paragraph (b) of subsection 1 of NRS 350.0035, as updated pursuant to subsection 3 or 4 of NRS 350.0035.

4. The commission may adjourn a meeting called to consider a particular proposal no more than once, for no more than 10 days. Notification of the approval or disapproval of its proposal must be sent to the governing body within 3 days after the meeting.”.

Amend sec. 4, page 5, line 23, by deleting “1” and inserting “3”.

Amend sec. 4, page 5, lines 41 and 42, by deleting “90 percent” and inserting: “[90 percent] the specified percentage, pursuant to subsection 1 of section 2 of this act,”.

Amend sec. 4, page 5, line 44, by deleting “levy;” and inserting: “levy [;] in accordance with the priorities established pursuant to subsection 2 of section 2 of this act;”.

Amend sec. 4, page 5, line 47, by deleting “paragraph (a)” and inserting: “[paragraph] paragraphs (a) and (b)”.

Amend the title of the bill by deleting the fifth through eighth lines and inserting: “increase of property taxes and authorizing the establishment of certain methods relating thereto; authorizing a debt management commission to establish a procedure for allowing a municipality to reserve a percentage of the remaining allowable increase of property taxes within a certain geographical area; revising the duties of the debt management commission relating to consideration of a proposal to incur general obligation debt or levy a special elective tax, and amending the conditions pursuant to which the debt management commission is authorized to grant approval of such a proposal; revising the duties of a municipality with regard to filing and amending statements of current and contemplated general obligation debt and special elective taxes; and providing other matters”.