THE ONE HUNDRED AND EIGHTEENTH DAY

Carson City(Saturday), June 2, 2001

Senate called to order at 10:56 a.m.

President pro Tempore Jacobsen presiding.

Roll called.

All present.

Prayer by the Chaplain, Reverend Richard H. Campbell.

Eternal and Ever–blessed God:

You are known by many names throughout the world. Your goodness, might and power are felt by all Your children. We come before You this day with gratitude in our hearts for Your many blessings to us. We praise You for Your presence here and ask Your blessing upon this Senate. Their tasks are enormous, give them strength; important, give them wisdom; humane, give them compassion. Grant them Your Blessing and also bless our State and our nation now and in the future. We pray in Your Holy Name.

Amen.

Pledge of allegiance to the Flag.

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

Motion carried.

REPORTS OF COMMITTEES

Mr. President pro Tempore:

Your Committee on Commerce and Labor, to which was referred Assembly Bill No. 324, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Randolph J. Townsend, Chairman

Mr. President pro Tempore:

Your Committee on Finance, to which were referred Senate Bill No. 583; Assembly Bill No. 612, 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 Finance, to which were re-referred Senate Bills Nos. 292, 391, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

William J. Raggio, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, June 1, 2001

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Anderson, Buckley and Carpenter as a first Conference Committee concerning Assembly Bill No. 550.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 60.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 87.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 195 and appointed Assemblymen Koivisto, Parnell and Berman as a second Conference Committee to meet with a like committee of the Senate for further consideration of Assembly Bill No. 195.

Patricia R. Williams

Assistant Chief Clerk of the Assembly

GENERAL FILE AND THIRD READING

Assembly Bill No. 123.

Bill read third time.

Roll call on Assembly Bill No. 123:

Yeas—21.

Nays—None.

Assembly Bill No. 123 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 209.

Bill read third time.

Roll call on Assembly Bill No. 209:

Yeas—21.

Nays—None.

Assembly Bill No. 209 having received a constitutional majority, Mr. President pro Tempore declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 250.

Bill read third time.

Remarks by Senators Raggio and Rawson.

Roll call on Assembly Bill No. 250:

Yeas—19.

Nays—O'Connell, Rhoads—2.

Assembly Bill No. 250 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 504.

Bill read third time.

Roll call on Assembly Bill No. 504:

Yeas—21.

Nays—None.

Assembly Bill No. 504 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 505.

Bill read third time.

Roll call on Assembly Bill No. 505:

Yeas—21.

Nays—None.

Assembly Bill No. 505 having received a constitutional majority, Mr. President pro Tempore declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 510.

Bill read third time.

Roll call on Assembly Bill No. 510:

Yeas—21.

Nays—None.

Assembly Bill No. 510 having received a constitutional majority, Mr. President pro Tempore declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 519.

Bill read third time.

Roll call on Assembly Bill No. 519:

Yeas—21.

Nays—None.

Assembly Bill No. 519 having received a constitutional majority, Mr. President pro Tempore declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 520.

Bill read third time.

Roll call on Assembly Bill No. 520:

Yeas—21.

Nays—None.

Assembly Bill No. 520 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 522.

Bill read third time.

Roll call on Assembly Bill No. 522:

Yeas—21.

Nays—None.

Assembly Bill No. 522 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 588.

Bill read third time.

Roll call on Assembly Bill No. 588:

Yeas—21.

Nays—None.

Assembly Bill No. 588 having received a constitutional majority, Mr. President pro Tempore declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 658.

Bill read third time.

Roll call on Assembly Bill No. 658:

Yeas—21.

Nays—None.

Assembly Bill No. 658 having received a constitutional majority, Mr. President pro Tempore declared it passed.

Bill ordered transmitted to the Assembly.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Townsend moved that Assembly Bill No. 661 be taken from the General File and placed at the bottom of the General File on the second agenda.

Remarks by Senator Townsend.

Motion carried.

GENERAL FILE AND THIRD READING

Assembly Bill No. 666.

Bill read third time.

Roll call on Assembly Bill No. 666:

Yeas—21.

Nays—None.

Assembly Bill No. 666 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Raggio moved that for the remainder of the session, that all necessary rules be suspended, reading so far had considered second reading, rules further suspended, and that all bills and joint resolutions reported out of committee with a “do pass” (without amendments) be declared emergency measures under the Constitution and placed on third reading and final passage, next agenda, time permitting.

Remarks by Senator Raggio.

Senator Raggio requested that his remarks be entered in the Journal.

This eliminates the need for the second reading of bills and resolutions and moves the process up by one day. The Senate will be operating with many agendas throughout these last days of session. “Time permitting” gives the Front Desk flexibility in coordinating session agendas. At this point more than one agenda will be generated. They will be color coded and numbered in sequence. Amendments, reprints, conference committee reports, etc., will be attached and distributed as a packet.

Motion carried.

Senator Raggio moved that for the remainder of session, that all rules be suspended, and that all concurrent and/or house resolutions reported out of committees be placed on the Resolution File, next agenda, time permitting.

Remarks by Senator Raggio.

Senator Raggio requested that his remarks be entered in the Journal.

This moves up the process of adopting and/or amending these types of resolutions by one day.

Motion carried unanimously.

Senator Raggio moved that for the remainder of the session, that all rules be suspended, and that all 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.

Senator Raggio requested that his remarks be entered in the Journal.

This eliminates the one-day notice for review of bills and resolutions that have been amended in order to expedite the process. Amendment and final passage and/or adoption of these measures will now be on the same day.

Motion carried.

Senator Raggio moved that Senate Standing Rule No. 92 be suspended, which pertains to committee meetings notice of bills, topics and public hearings.

Remarks by Senator Raggio.

Senator Raggio requested that his remarks be entered in the Journal.

This suspension will give Committees some flexibility in posting agendas which will significantly accelerate the business of the Senate.

Motion carried.

UNFINISHED BUSINESS

Consideration of Assembly Amendments

Senate Bill No. 208.

The following Assembly amendment was read:

Amendment No. 1169.

Amend sec. 2, page 2, between lines 10 and 11, by inserting:

“4. The health division may solicit and accept gifts and grants to pay the costs associated with the position of state dental health officer.”.

Amend sec. 3, page 2, between lines 34 and 35, by inserting:

“4. The health division may solicit and accept gifts and grants to pay the costs associated with the position of state public health dental hygienist.”.

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

“Sec. 12. (Deleted by amendment.)”.

Amend the bill as a whole by renumbering sections 16 and 17 as sections 17 and 18 and adding a new section designated sec. 16, following sec. 15, to read as follows:

“Sec. 16. Section 7.5 of Senate Bill No. 133 of this session is hereby amended to read as follows:

Sec. 7.5 NRS 631.290 is hereby amended to read as follows:

631.290 1. Any person is eligible to [take an examination] apply for a license to practice dental hygiene in this state who:

(a) Is of good moral character;

(b) Is over 18 years of age;

(d) Is a graduate of a school of dental hygiene or other institution that awards at least an associate degree upon completion of the program and that is accredited by a regional educational accrediting organization that is recognized by the United States Department of Education. The program of dental hygiene must:

(1) Be accredited by the Commission on Dental Accreditation of the American Dental Association or its successor specialty accrediting organization; and

(2) Include a curriculum of not less than 2 years of academic instruction in dental hygiene or its academic equivalent.

2. To determine whether a person has good moral character , the board may consider whether his license to practice dental hygiene in another state has been suspended or revoked or whether he is currently involved in any disciplinary action concerning his license in that state.”.

Amend sec. 16, page 7, by deleting lines 9 and 10 and inserting:

“Sec. 17. Notwithstanding the provisions of sections 2 and 3 of this act, for the fiscal years 2001-2002 and 2002-2003:

1. The health division may, in lieu of complying with the provisions of sections 2 and 3 of this act, appoint a”.

Amend sec. 16, page 7, line 16, by deleting “Each” and inserting:

“Unless the health division provides otherwise, each”.

Amend sec. 16, page 7, line 17, by deleting “act,” and inserting “act”.

Senator Rawson moved that the Senate concur in the Assembly amendment to Senate Bill No. 208.

Remarks by Senator Rawson.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 500.

The following Assembly amendment was read:

Amendment No. 976.

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

“Sec. 7. This act becomes effective on July 1, 2001.”.

Amend the title of the bill by deleting the fifth through eighth lines and inserting:

“authorizing agreements for an exchange of interest rates;”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 500.

Remarks by Senator Raggio.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 574.

The following Assembly amendment was read:

Amendment No. 1170.

Amend sec. 18, page 4, line 38, by deleting “10” and inserting “8.5”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 574.

Remarks by Senator Raggio.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 261.

The following Assembly amendment was read:

Amendment No. 1063.

Amend sec. 7, pages 7 and 8, by deleting lines 44 through 49 on page 7 and lines 1 through 22 on page 8, and inserting:

“116.4109 1. Except in the case of a sale in which delivery of a public offering statement is required, or unless exempt under subsection 2 of NRS 116.4101, a unit’s owner shall furnish to a purchaser before the execution of any contract for the sale of a unit, or otherwise before conveyance:

(a) A copy of the declaration, other than any plats and plans, the bylaws, the rules or regulations of the association and [, except for a time share governed by the provisions of chapter 119A of NRS,] the information statement required by NRS 116.41095;

(b) A statement setting forth the amount of the monthly assessment for common expenses , any other fees payable by a unit’s owner and any unpaid assessment of any kind currently due from the selling unit’s owner [;] that the purchaser will be obligated to pay;

(c) A statement setting forth any unpaid fines due from the selling unit’s owner that the purchaser will be obligated to pay;

(d) A statement listing all written notices of a violation of the governing documents of the association associated with the unit which the association has previously provided to the selling unit’s owner and which the purchaser will be obligated to correct or repair;

(e) The current operating budget of the association and a financial statement for the association; [and

(d)] (f) A statement of any unsatisfied judgments or pending legal actions [against] to which the association is a party and the status of any such pending legal actions [relating to the common-interest community of which the unit’s owner has actual knowledge.] ;

(g) A statement of any pending claims submitted to arbitration or mediation to which the association is a party; and

(h) A statement of any claim for a constructional defect of which the association has actual knowledge and for which the association will be a party.

2. The association, within 10 days after receipt of a written request by a unit’s owner, shall furnish a certificate addressed to the unit’s owner at the address included in the written request containing the information necessary to enable the unit’s owner to comply with this section. The certificate must be signed by a member of the executive board of the association or an authorized agent of the association. A unit’s owner providing a certificate pursuant to subsection 1 is not liable to the purchaser for any erroneous information provided by the association and included in the certificate.

3. [Neither] Except as otherwise provided in subsection 6, neither a purchaser nor the purchaser’s interest in a unit is liable to the association for [any] :

(a) Any unpaid assessment , [or] fee or fine greater than the amount [set forth in the certificate prepared by the association.] disclosed pursuant to this section; or

(b) The correction or repair of any violation of the governing documents of the association that is not disclosed pursuant to paragraph (d) of subsection 1.

4. If the association fails to furnish the certificate within the 10 days allowed by subsection 2, the seller is not liable to the association for [the] :

(a) Any delinquent assessment [.] , fee or fine owed to the association; or

(b) The correction or repair of any violation of the governing documents of the association associated with the unit that is required to be disclosed pursuant to paragraph (d) of subsection 1.

5. A certificate issued by an association pursuant to this section becomes effective on the date the certificate is signed pursuant to subsection 2.

6. The association is not liable to any person for undisclosed information if a unit’s owner does not make a written request for a certificate pursuant to subsection 2.”.

Amend the bill as a whole by adding a new section designated sec. 7.5, following sec. 7, to read as follows:

“Sec. 7.5. NRS 116.41095 is hereby amended to read as follows:

116.41095 The information statement required by NRS 116.4103 and 116.4109 must be in substantially the following form:

BEFORE YOU PURCHASE PROPERTY IN A

COMMON-INTEREST COMMUNITY

DID YOU KNOW . . .

1. YOU ARE AGREEING TO RESTRICTIONS ON HOW YOU CAN USE YOUR PROPERTY?

These restrictions are contained in a document known as the Declaration of Covenants, Conditions and Restrictions (C, C & R’s) that should be provided for your review before making your purchase. The C, C & R’s become a part of the title to your property. They bind you and every future owner of the property whether or not you have read them or had them explained to you. The C, C & R’s, together with other “governing documents” (such as association bylaws and rules and regulations), are intended to preserve the character and value of properties in the community, but may also restrict what you can do to improve or change your property and limit how you use and enjoy your property. By purchasing a property encumbered by C, C & R’s, you are agreeing to limitations that could affect your lifestyle and freedom of choice. You should review the C, C & R’s and other governing documents before purchasing to make sure that these limitations and controls are acceptable to you.

2. YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS FOR AS LONG AS YOU OWN YOUR PROPERTY?

As an owner in a common-interest community, you are responsible for paying your share of expenses relating to the common elements, such as landscaping, shared amenities and the operation of any homeowner’s association. The obligation to pay these assessments binds you and every future owner of the property. Owners’ fees are usually assessed by the homeowner’s association and due monthly. You have to pay dues whether or not you agree with the way the association is managing the property or spending the assessments. The executive board of the association may have the power to change and increase the amount of the assessment and to levy special assessments against your property to meet extraordinary expenses. In some communities, major components of the community such as roofs and private roads must be maintained and replaced by the association. If the association is not well managed or fails to maintain adequate reserves to repair, replace and restore common elements, you may be required to pay large, special assessments to accomplish these tasks.

3. IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU COULD LOSE YOUR HOME?

If you do not pay these assessments when due, the association usually has the power to collect them by selling your property in a nonjudicial foreclosure sale. If fees become delinquent, you may also be required to pay penalties and the association’s costs and attorney’s fees to become current. If you dispute the obligation or its amount, your only remedy to avoid the loss of your home may be to file a lawsuit and ask a court to intervene in the dispute.

4. YOU MAY BECOME A MEMBER OF A HOMEOWNER’S ASSOCIATION THAT HAS THE POWER TO AFFECT HOW YOU USE AND ENJOY YOUR PROPERTY?

Many common-interest communities have a homeowner’s association. In a new development, the association will usually be controlled by the developer until a certain number of units have been sold. After the period of developer control, the association may be controlled by property owners like yourself who are elected by homeowners to sit on an executive board and other boards and committees formed by the association. The association, and its executive board, are responsible for assessing homeowners for the cost of operating the association and the common or shared elements of the community and for the [day to day] day-to-day operation and management of the community. Because homeowners sitting on the executive board and other boards and committees of the association may not have the experience or professional background required to understand and carry out the responsibilities of the association properly, the association may hire professional managers to carry out these responsibilities.

Homeowner’s associations operate on democratic principles. Some decisions require all homeowners to vote, some decisions are made by the executive board or other boards or committees established by the association or governing documents. Although the actions of the association and its executive board are governed by state laws, the C, C & R’s and other documents that govern the common-interest community, decisions made by these persons will affect your use and enjoyment of your property, your lifestyle and freedom of choice, and your cost of living in the community. You may not agree with decisions made by the association or its governing bodies even though the decisions are ones which the association is authorized to make. Decisions may be made by a few persons on the executive board or governing bodies that do not necessarily reflect the view of the majority of homeowners in the community. If you do not agree with decisions made by the association, its executive board or other governing bodies, your remedy is typically to attempt to use the democratic processes of the association to seek the election of members of the executive board or other governing bodies that are more responsive to your needs. If persons controlling the association or its management are not complying with state laws or the governing documents, your remedy is typically to seek to mediate or arbitrate the dispute and, if mediation or arbitration is unsuccessful, file a lawsuit and ask a court to resolve the dispute. In addition to your personal cost in mediation or arbitration, or to prosecute a lawsuit, you may be responsible for paying your share of the association’s cost in defending against your claim. There is no government agency in this state that investigates or intervenes to resolve disputes in homeowner’s associations.

5. YOU ARE REQUIRED TO PROVIDE PROSPECTIVE BUYERS OF YOUR PROPERTY WITH INFORMATION ABOUT LIVING IN YOUR COMMON-INTEREST COMMUNITY?

The law requires you to provide to a prospective purchaser of your property, before you enter into a purchase agreement[, a] :

(a) A copy of the community’s governing documents, including the C, C & R’s, association bylaws, and rules and regulations, as well as a copy of this document. [You are also required to provide a]

(b) A copy of the association’s current financial statement, operating budget and information regarding the amount of the monthly assessment for common expenses, including the amount set aside as reserves for the repair, replacement and restoration of common elements. [You are also required to inform prospective purchasers]

(c) A statement setting forth any other fees payable by a unit’s owner and any unpaid assessment or fine that the purchaser will be obligated to pay.

(d) A statement listing all written notices of a violation of the governing documents of the association associated with the unit which the association has previously provided to you and which the purchaser will be obligated to correct or repair.

(e) A statement of any outstanding judgments or [lawsuits pending against] pending legal actions to which the association [of which you are aware. You are also required to provide a] is a party and the status of such pending legal actions.

(f) A statement of any pending claims submitted to arbitration or mediation to which the association is a party.

(g) A statement of any claim for a constructional defect of which the association has actual knowledge and for which the association will be a party.

(h) A copy of the minutes from the most recent meeting of the homeowner’s association or its executive board.

For more information regarding these requirements, see Nevada Revised Statutes 116.4103[.] and 116.4109.

6. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN A COMMON-INTEREST COMMUNITY THAT ARE GUARANTEED YOU BY THE STATE?

Pursuant to provisions of chapter 116 of Nevada Revised Statutes, you have the right:

(a) To be notified of all meetings of the association and its executive board, except in cases of emergency.

(b) To attend and speak at all meetings of the association and its executive board, except in some cases where the executive board is authorized to meet in closed, executive session.

(d) To inspect, examine, photocopy and audit financial and other records of the association.

(e) To be notified of all changes in the community’s rules and regulations and other actions by the association or board that affect you.

7. QUESTIONS?

Although they may be voluminous, you should take the time to read and understand the documents that will control your ownership of a property in a common-interest community. You may wish to ask your real estate professional, lawyer or other person with experience to explain anything you do not understand. You may also request assistance from the ombudsman for owners in common-interest communities, Nevada Real Estate Division, at (telephone number).

Buyer or prospective buyer’s initials: ______

Date: ______”.

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

“AN ACT relating to property; limiting the applicability of provisions governing common-interest communities to the sale or transfer of time shares; revising the information that must be furnished by a unit’s owner in a common-interest community to a prospective purchaser before the sale of the unit; requiring a manager of”.

Amend the summary of the bill to read as follows:

“SUMMARY—Makes various changes to provisions governing time shares and common-interest communities. (BDR 10-819)”.

Senator Raggio moved that the Senate do not concur in the Assembly amendment to Senate Bill No. 261.

Remarks by Senator Raggio.

Motion carried.

Bill ordered transmitted to the Assembly.

Senate Bill No. 556.

The following Assembly amendment was read:

Amendment No. 798.

Amend sec. 4, page 2, line 18, after “1.” by inserting: ““Disclose” or “disclosure” means the reporting, either verbally or in writing, by a state or local governmental officer or employee of governmental action that the officer or employee reasonably believes, in good faith, to be improper governmental action. The term includes all such reporting that is not expressly prohibited by law, regardless of the identity of the person or entity to whom the information is reported.

2.”.

Amend sec. 4, page 2, line 29, by deleting “2.” and inserting “[2.] 3.”.

Amend sec. 4, page 2, line 31, by deleting “3.” and inserting “4.”.

Amend sec. 4, page 2, line 34, by deleting “4.” and inserting “5.”.

Amend sec. 4, page 2, line 43, by deleting “5.” and inserting “6.”.

Amend sec. 4, page 3, line 14, by deleting “6.” and inserting “7.”.

Amend sec. 4, page 3, line 17, by deleting “7.” and inserting “8.”.

Amend the title of the bill, third line, after “action;” by inserting: “defining the term “disclose” for the purposes of that prohibition;”.

Senator O'Connell moved that the Senate do not concur in the Assembly amendment to Senate Bill No. 556.

Remarks by Senator O'Connell.

Motion carried.

Bill ordered transmitted to the Assembly.

Recede From Senate Amendments

Senator O'Connell moved that the Senate recede from its action on Assembly Bill No. 219.

Remarks by Senators O'Connell, Rhoads, Raggio, Neal, James, Titus, O'Donnell and Mathews.

Senators Titus, Neal and Care requested a roll call vote on Senator O'Connell’s motion.

Senator Raggio, Mathews and Coffin moved the previous question.

Motion carried.

The question being that the Senate recede from its action on Assembly Bill No. 219.

Roll call on Senator O'Connell's motion:

Yeas—10.

Nays—Amodei, James, Mathews, McGinness, Raggio, Rawson, Rhoads, Schneider, Shaffer, Townsend, Washington—11.

The motion having failed to receive a constitutional majority, Mr. President pro Tempore declared the Senate's action on Assembly Bill No. 219 not receded from.

remarks from the floor

Senator Amodei requested that his remarks be entered in the Journal.

Thank you, Madam President. I had been in e-mail contact with many of the students who had done such a good job on this measure. I indicated to them, my hope, that this would go to conference. In keeping with the designations we have in terms of the State Bird, the State Animal, a State Reptile and a State Fish, perhaps, one of the things that could come out of conference, would be a designation of a State Wild Horse. I would be willing, speaking as one out of a body of 21, to support something like that. I hope that, by the time we leave here on Monday, we do have a new designation, and that it is something along the lines of a State Wild Horse. The children from the class in Clark County, who started this, could take their place next to the folks in Orvada, who did the work on the State Soil.

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

Motion carried.

Senate in recess at 11:45 a.m.

SENATE IN SESSION

At 11:46 p.m.

President Hunt presiding.

Quorum present.

UNFINISHED BUSINESS

Recede From Senate Amendments

Senator O'Connell moved that the Senate recede from its action on Assembly Bill No. 326.

Remarks by Senator O'Connell.

Motion carried by a constitutional majority.

Bill ordered transmitted to the Assembly.

Senator Townsend moved that the Senate do not recede from its action on Assembly Bill No. 447, that a conference be requested, and that Madam President appoint a first Conference Committee consisting of three members to meet with a like committee of the Assembly.

Remarks by Senator Townsend.

Motion carried.

Bill ordered transmitted to the Assembly.

Appointment of Conference Committees

Madam President appointed Senators Rhoads, Amodei and Shaffer, as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 447.

Madam President appointed Senators O'Connell, Amodei and Carlton as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 99.

Madam President appointed Senators Townsend, Amodei and Schneider as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 216.

Madam President appointed Senators Rhoads, Amodei and Carlton as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 362.

Madam President appointed Senators Washington, Amodei and Wiener as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 399.

Madam President appointed Senators O'Donnell, Jacobsen and Care as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 524.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Assembly Bill No. 60, consisting of the undersigned members, has met, and reports that:

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

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. 3, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend section 1, page 2, by deleting lines 14 through 16 and inserting:

“4. If a public body maintains a website on the Internet or its successor, the public body shall post notice of each of its meetings on its website unless the public body is unable to do so because of technical problems relating to the operation or maintenance of its website. Notice posted pursuant to this subsection is supplemental to and is not a substitute for the minimum public notice required pursuant to subsection 3. The inability of a public body to post notice of a meeting pursuant to this subsection as a result of technical problems with its website shall not be deemed to be a violation of the provisions of this chapter.”.

Amend sec. 2, page 2, line 35, by deleting: “July 1, 2001.” and inserting: “January 1, 2003.”.

Amend the title of the bill, third line, after “website;” by inserting: “providing an exception;”.

Jon C. Porter Douglas A. Bache

Dina Titus David Brown

William R. O'Donnell Bonnie L. Parnell

Senate Conference Committee Assembly Conference Committee

Senator Porter moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 60.

Remarks by Senator Porter.

Motion carried by a constitutional majority.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Finance, to which were referred Assembly Bills Nos. 508, 521, 596, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

William J. Raggio, Chairman

Madam President:

Your Committee on Government Affairs, to which were referred Assembly Bill No. 567; Assembly Joint Resolution No. 10, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Also, your Committee on Government Affairs, to which was re-referred Assembly Joint Resolution No. 9, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Also, your Committee on Government Affairs, to which was referred Assembly Concurrent Resolution No. 38, has had the same under consideration, and begs leave to report the same back with the recommendation: Be adopted.

Ann O'Connell, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, June 2, 2001

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day adopted Assembly Concurrent Resolution No. 41.

Patricia R. Williams

Assistant Chief Clerk of the Assembly

MOTIONS, RESOLUTIONS AND NOTICES

Assembly Concurrent Resolution No. 41—Commending the staff of the Legislative Counsel Bureau.

Whereas, As early as 1945, when the Legislative Counsel Bureau was created, the Nevada Legislature recognized the need for additional information, advice and assistance in securing sufficient details to act advisedly on legislative matters and accommodate increasingly complex legislative tasks that were impossible to complete without support; and

Whereas, The functions assigned to the Legislative Counsel Bureau, which was composed of only three members in 1945, were restricted mainly to the appointment of a Legislative Counsel whose principal duties were to assist the Legislature by conducting a survey relating to the needs and functions of the existing entities of the state government and by providing advice for proposed legislation concerning those matters; and

Whereas, Since those early days, the Legislative Counsel Bureau has evolved into an organization of more than 200 professional employees, and during legislative sessions, almost 300 public servants, who provide a full range of services for the “people’s branch” of government; and

Whereas, The goal of the Legislative Counsel Bureau in the modern era is to continue to meet the ever-increasing challenges of providing nonpartisan, centralized services to members of both houses of the Legislature and their constituents in the most efficient, professional manner possible; and

Whereas, The 2001 legislative session, like the historic session of 1999, was limited to 120 calendar days, placing extra time constraints upon the staff; and

Whereas, The ability to meet this time limitation is dependent upon the coordination of staff assignments and, ultimately, the participation of each staff member to accomplish in 120 days what had been completed in the longer sessions of the past; and

Whereas, The staff of each division and unit of the Legislative Counsel Bureau contributed to the success of the 2001 session and met the various challenges with unparalleled skill, resourcefulness, diligence and, when necessary, humor; and

Whereas, In the Administrative Division of the Legislative Counsel Bureau, the staff of the Information Systems Unit and the Media Services Unit continued to improve technology for the legislative process, the staff of the Buildings Unit, the Grounds Unit and the Janitorial Unit prepared and meticulously maintained the building and its grounds as a showplace in Carson City, and the staff of the Accounting Unit, the General Services Unit, the Legislative Police, the Las Vegas office and the Director’s office, and the session staff in the message center, the public bill room, the bill mail room, lobbyist registration and the lobbyist center kept the Legislature functioning smoothly; and

Whereas, The staff of the Audit Division continued to provide the Legislature with independent and reliable information about the operations of state agencies, programs, activities and functions by presenting audit reports and by testifying on legislation to promote accountability in state government, and continued to produce their high-quality audits while reviewing all legislation within the time limitations in a quick and efficient manner; and

Whereas, The staff of the Fiscal Analysis Division reviewed the ever-increasing budget, bills relating to the budget and budget amendments within the condensed period, maintaining their usual accuracy and efficiency, reviewed fiscal notes in half the time available in sessions before 1999, provided staff support for the Committees on Taxation and responded to Legislators’ requests for information concerning budgets and taxation promptly and efficiently; and

Whereas, The staff of the Legal Division exceeded their high standards by meeting all deadlines for the drafting of bills and amendments, preparing an increasing quantity of work without sacrificing quality or their meticulous attention to detail, while providing legal advice on the usual wide range of issues to the Legislature and its staff, fully aware that their dedication and long hours were essential to the success of the 120-day session; and

Whereas, The staff of the Research Division, assisted by its Research Library, provided research and analysis of current and proposed public programs and policies, furnished thorough and prompt background information for use in committees and on the floor of each legislative house, aided committee chairmen by providing administrative and technical assistance in the hearing and processing of bills to meet the rigorous scheduling demands established as a result of the condensed session, and responded to an increased number of Legislator and constituent requests in a timely, efficient and thorough manner despite strict time constraints; and

Whereas, Although the demands on legislative staff were even greater this session because of the reapportionment and redistricting of both legislative houses, the congressional districts and the districts of the State Board of Education and the Board of Regents of the University of Nevada, the duties pertaining thereto were provided in an efficient, impartial, professional and coordinated manner by several different divisions and units of the Legislative Counsel Bureau; now, therefore, be it

Resolved by the assembly of the State of Nevada, the Senate Concurring, That the members of the 71st session of the Nevada Legislature do hereby express their sincere appreciation to the outstanding staff of the Legislative Counsel Bureau and commend the dedication, cooperation and exceptional work of each person on the staff; and be it further

Resolved, That the Chief Clerk of the Assembly prepare and transmit a copy of this resolution to Lorne Malkiewich, Director of the Legislative Counsel Bureau.

Senator Raggio moved the adoption of the resolution.

Remarks by Senators Raggio and Jacobsen.

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

Senator Raggio:

Thank you, Madam President. This is a resolution that is long overdue. I do not think that any of us, either singularly or collectively, have expressed our appreciation to the Legislative Counsel Bureau and our staff. We do not often tell them, but we are very proud of the Legislative Counsel Bureau we have in the State of Nevada. When you go around the country and you attend meetings and talk to other Legislators, our staff, our Counsel Bureau, stacks up with the best. It is probably one of the best in the nation.

As the resolution indicates, back in 1945 when it was created, it was only a small group. We had Russ McDonald taking trips across to Jack’s Bar and back; they got a lot of work done. The modern era has required a lot more attention and detail. We are now dealing with a 120-day session, which the distinguished Minority Leader helped to thrust upon us. We have a lot more to do in a short time. We really need to stop for a moment and express our gratitude. I was hoping we could do this when we could have the members of the various divisions in here to give them, our thanks, personally, but hopefully, they are watching and are aware of what we are doing. We did have the Legal Division here the other day, but it goes without saying that we are equally grateful to the Research Division, the Administrative Division, the Audit Division and the Fiscal Division for all that they do. The Administrative Division includes, not only Loren’s staff, but also all of the Janitorial Unit, Grounds Unit, Buildings Unit, Media Services, Information Services, Accounting Unit, General Services, Legislative Police, certainly one of the best, and the Las Vegas Office.

In the Audit Division, we are blessed with very competent certified public accountants, and we are always asking them to do an additional audit above everything else that they do for us. They do high quality audits reviewing the legislation.

The Fiscal Analysis Division, along with all the others, have been putting in an inordinate amount of time, particularly, in the closing days of this Session. I think they average about three and one half hours of sleep a night between when we leave here and when we come back in the morning. They are always working. Research, likewise, staffs the committees along with the Legal Division, and provides great assistance during the Session, particularly, during these hectic days of closing down the Session. Each of these divisions, throughout the year, receives all types of calls and requests from the 63 who serve in this Legislature, as well as others.

We are a part-time Legislature. We have a full-time staff that excels in responding to our requests in a non-political, non-partisan effort to make certain that everything we do is done properly. I think I speak for all the members of the Senate when I tell them, through this measure, we appreciate their efforts and everything they do and we appreciate their complete dedication.

Senator Jacobsen:

Thank you, Madam President. I would be remiss if I did not say a word or two. When we moved to this new building, I came with them. We had a lot of shortcomings here, but I think our staff does a super job everywhere you look.

Yesterday, if you attended the dedication outside and looked around at the grounds, you cannot help but appreciate the kind of effort that goes into keeping it looking as beautiful as it is. I am certain many of you do not know that Abe Curry was the first monument outside. Many of you probably do not know where the monument is, but he dedicated the land. We were given the statues of Sutro and Kit Carson. The Governor did not want Kit Carson in the Capitol yard so we moved him over here. We have a few other mementos setting around the building that some of you do not know about.

I am dumbfounded by what has transpired here. When I think back to serving over in the old building, it was very inadequate. When we came over here, we hardly knew how to live with it. I think back on some of the occasions when we used to call Buildings and Grounds, saying we had a couple of lights out and they would say, “Sorry, our crew is up at the Mansion or some other place.” By all of these little quirks that came along, we finally got our own self-supporting unit, and I think that is evident today. Look around this building. I am really proud of security. A lot of people did not think we needed it. I know my good colleague from the south did not think we needed all of that security, but it has proved it’s worth time and time again. Our janitorial service is great, also our divisions. I do not know how many of you use the Research Division, but you are remiss if you do not take advantage of it. You can call up anytime and have the answer sometimes before you hang up the phone. Audit is special to me. I chaired that committee for a year or two and served as a Speaker the first year, in this building. I cannot tell you how many little incidents we thought were just monumental with Directors like Russ McDonald and Art Palmer. When I think back to the days when Research was three people, especially with the kind of services they provide today, I do not think you can measure it. We should be proud of all of our employees. It only takes a minute to slap them on the back and say thanks for a great job. Sometimes that is the only thanks they get. The other day when they lined up here, I was somewhat amazed. I thought I knew every person in this building, and I found that I did not. It behooves all of us to be thankful for what we have and for what a great State we have.

Resolution adopted.

Resolution ordered transmitted to the Assembly.

Senator Raggio moved that the Senate recess until 1:30 p.m.

Motion carried.

Senate in recess at 12:10 p.m.

SENATE IN SESSION

At 4:21 p.m.

President Hunt presiding.

Quorum present.

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, June 2, 2001

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day passed Senate Bills Nos. 319, 367, 428, 444, 464, 477, 494, 505, 573.

Also, I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bills Nos. 174, 515.

Also, I have the honor to inform your honorable body that the Assembly amended, and on this day passed, as amended, Senate Bill No. 481, Amendment No. 737; Senate Bill No. 570, Amendment No. 1115, and respectfully requests your honorable body to concur in said amendments.

Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to recede from its action on Senate Bill No. 49, and requests a conference, and appointed Assemblymen Buckley, Carpenter and Koivisto as a first Conference Committee to meet with a like committee of the Senate.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 48.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 555.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 620.

Patricia R. Williams

Assistant Chief Clerk of the Assembly

MOTIONS, RESOLUTIONS AND NOTICES

Assembly Concurrent Resolution No. 38.

Senator O'Connell moved the adoption of the resolution.

Remarks by Senators O'Connell and Titus.

Resolution adopted.

Resolution ordered transmitted to the Assembly.

Senator Townsend moved that the action whereby Senate Bill No. 372 was passed be rescinded.

Remarks by Senator Townsend.

Motion carried.

SECOND READING AND AMENDMENT

Senate Bill No. 583.

Bill read second time.

The following amendment was proposed by the Committee on Finance:

Amendment No. 1203.

Amend sec. 7, page 2, line 23, after “purpose.” by inserting: “Not more than $200,000 of revenue from taxes on the gross receipts from the rental of transient lodging may be made available for that purpose in any biennium.”.

Amend sec. 7, page 2, line 25, by deleting “The” and inserting: “Except as otherwise provided in this subsection, the”.

Amend sec. 7, page 2, line 28, after “fund.” by inserting: “The state controller shall not transfer any revenue from taxes on the gross receipts from the rental of transient lodging from the fund for the promotion of tourism to the state general fund unless the transfer is approved by the interim finance committee.”.

Senator Raggio moved the adoption of the amendment.

Remarks by Senator Raggio.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Assembly Bill No. 612.

Bill read second time.

The following amendment was proposed by the Committee on Finance:

Amendment No. 1202.

Amend section 1, page 1, line 18, by deleting “grant” and inserting “loan”.

Amend section 1, page 2, line 2, by deleting “grant” and inserting “loan”.

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

“Sec. 3. Chapter 396 of NRS is hereby amended by adding thereto a new section to read as follows:

1. The Nevada office of rural health is hereby established within the University of Nevada School of Medicine.

2. The Nevada office of rural health shall address the need for and recommend programs concerning the delivery of health care services to rural and frontier populations. The office shall administer or coordinate, or both, programs and services which affect the delivery of health care services in rural areas including, without limitation, programs and services in the following categories:

(a) Education and training;

(b) Needs of special populations;

(d) Financing of health care.”.

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

“Sec. 5. 1. There is hereby appropriated from the state general fund to the Nevada Rural Health Centers, Inc., for its Carlin, Nevada, clinic the sum of $70,000.

2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.”.

Amend the title of the bill by deleting the third line and inserting: “health programs that require such assistance; establishing the Nevada office of rural health within the University of Nevada School of Medicine; making appropriations; and”.

Amend the summary of the bill to read as follows:

“SUMMARY—Makes various changes concerning rural health. (BDR 31‑1421)”.

Senator Raggio moved the adoption of the amendment.

Remarks by Senator Raggio.

Amendment adopted.

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

Assembly Joint Resolution No. 9.

Resolution read second time.

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

Amendment No. 1192.

Amend the resolution, page 2, line 22, by deleting “license;” and inserting: “license and on applications for many other licenses, permits and certificates issued by the state;”.

Amend the preamble of the resolution, page 1, line 8, by deleting “license;” and inserting: “license and on the applications for many other licenses, permits and certificates issued by the state;”.

Amend the preamble of the resolution, page 1, line 11, by deleting “license,” and inserting: “license or for many other types of licenses, permits or certificates issued by the state,”.

Amend the title of the resolution, third line, after “license” by inserting: “and on applications for certain other licenses, permits and certificates issued by the state”.

Amend the summary of the resolution to read as follows:

“SUMMARY—Urges Congress to repeal provision of federal law requiring state to record social security number of citizen on application for driver’s license and on application for certain other licenses, permits and certificates issued by state for state to receive certain federal funding. (BDR R‑1290)”.

Senator O'Connell moved the adoption of the amendment.

Remarks by Senator O'Connell.

Amendment adopted.

Resolution ordered reprinted, engrossed and to the General File.

GENERAL FILE AND THIRD READING

Senate Bill No. 292.

Bill read third time.

The following amendment was proposed by the Committee on Finance:

Amendment No. 1174.

Amend the bill as a whole by deleting sections 1 through 66 and adding new sections designated sections 1 through 76 and the text of the repealed section, following the enacting clause, to read as follows:

“Section 1. NRS 385.347 is hereby amended to read as follows:

385.347 1. The board of trustees of each school district in this state, in cooperation with associations recognized by the state board as representing licensed personnel in education in the district, shall adopt a program providing for the accountability of the school district to the residents of the district and to the state board for the quality of the schools and the educational achievement of the pupils in the district, including, without limitation, pupils enrolled in charter schools in the school district. The board of trustees of a school district shall report the information required by subsection 2 for each charter school within the school district, regardless of the sponsor of the charter school.

2. The board of trustees of each school district shall, on or before March 31 of each year, report to the residents of the district concerning:

(a) The educational goals and objectives of the school district.

(b) Pupil achievement for grades 4, 8, 10 and 11 for each school in the district and the district as a whole, including, without limitation, each charter school in the district.

Unless otherwise directed by the department, the board of trustees of the district shall base its report on the results of the examinations administered pursuant to NRS 389.015 and shall compare the results of those examinations for the current school year with those of previous school years. The report must include, for each school in the district, including, without limitation, each charter school in the district, and each grade in which the examinations were administered:

(1) The number of pupils who took the examinations;

(2) An explanation of instances in which a school was exempt from administering or a pupil was exempt from taking an examination; and

(3) A record of attendance for the period in which the examinations were administered, including an explanation of any difference in the number of pupils who took the examinations and the number of pupils who are enrolled in the school.

In addition, the board shall also report the results of other examinations of pupil achievement administered to pupils in the school district in grades other than 4, 8, 10 and 11. The results of these examinations for the current school year must be compared with those of previous school years.

(c) The ratio of pupils to teachers in kindergarten and at each grade level for each elementary school in the district and the district as a whole, including, without limitation, each charter school in the district, the average class size for each required course of study for each secondary school in the district and the district as a whole, including, without limitation, each charter school in the district, and other data concerning licensed and unlicensed employees of the school district.

(d) The percentage of classes taught by teachers who have been assigned to teach English, mathematics, science or social studies but do not possess a license with an endorsement to teach in that subject area, for each school in the district and the district as a whole, including, without limitation, each charter school in the district.

(e) The total expenditure per pupil for each school in the district and the district as a whole, including, without limitation, each charter school in the district.

(f) The curriculum used by the school district, including:

(1) Any special programs for pupils at an individual school; and

(2) The curriculum used by each charter school in the district.

(g) Records of the attendance and truancy of pupils in all grades, including, without limitation, the average daily attendance of pupils, for each school in the district and the district as a whole, including, without limitation, each charter school in the district.

(h) The annual rate of pupils who drop out of school in grades 9 to 12, inclusive, for each such grade, for each school in the district and for the district as a whole, excluding pupils who:

(1) Provide proof to the school district of successful completion of the examinations of general educational development.

(2) Are enrolled in courses that are approved by the department as meeting the requirements for an adult standard diploma.

(3) Withdraw from school to attend another school.

(i) Records of attendance of teachers who provide instruction, for each school in the district and the district as a whole, including, without limitation, each charter school in the district.

(j) Efforts made by the school district and by each school in the district, including, without limitation, each charter school in the district, to increase:

(1) Communication with the parents of pupils in the district; and

(2) The participation of parents in the educational process and activities relating to the school district and each school, including, without limitation, the existence of parent organizations and school advisory committees.

(k) Records of incidents involving weapons or violence for each school in the district, including, without limitation, each charter school in the district.

(l) Records of incidents involving the use or possession of alcoholic beverages or controlled substances for each school in the district, including, without limitation, each charter school in the district.

(m) Records of the suspension and expulsion of pupils required or authorized pursuant to NRS 392.466 and 392.467.

(n) The number of pupils who are deemed habitual disciplinary problems pursuant to NRS 392.4655, for each school in the district and the district as a whole, including, without limitation, each charter school in the district.

(o) The number of pupils in each grade who are retained in the same grade pursuant to NRS 392.125, for each school in the district and the district as a whole, including, without limitation, each charter school in the district.

(p) The transiency rate of pupils for each school in the district and the district as a whole, including, without limitation, each charter school in the district. For the purposes of this paragraph, a pupil is not transient if he is transferred to a different school within the school district as a result of a change in the zone of attendance by the board of trustees of the school district pursuant to NRS 388.040.

(q) Each source of funding for the school district.

(r) The amount and sources of money received for remedial education for each school in the district and the district as a whole, including, without limitation, each charter school in the district.

(s) For each high school in the district, including, without limitation, each charter school in the district, the percentage of pupils who graduated from that high school or charter school in the immediately preceding year and enrolled in remedial courses in reading, writing or mathematics at a university or community college within the University and Community College System of Nevada.

(t) The technological facilities and equipment available at each school, including, without limitation, each charter school, and the district’s plan to incorporate educational technology at each school.

(u) For each school in the district and the district as a whole, including, without limitation, each charter school in the district, the number and percentage of pupils who graduate with:

(1) A standard high school diploma.

(2) An adjusted diploma.

(3) A certificate of attendance.

(v) For each school in the district and the district as a whole, including, without limitation, each charter school in the district, the number and percentage of pupils who did not receive a high school diploma because the pupils failed to pass the high school proficiency examination.

(w) The number of habitual truants who are reported to a school police officer or law enforcement agency pursuant to paragraph (a) of subsection 2 of NRS 392.144 and the number of habitual truants who are referred to an advisory board to review school attendance pursuant to paragraph (b) of subsection 2 of NRS 392.144, for each school in the district and for the district as a whole.

(x) The amount and sources of money received for the training and professional development of teachers and other educational personnel for each school in the district and for the district as a whole, including, without limitation, each charter school in the district.

(y) Such other information as is directed by the superintendent of public instruction.

3. The records of attendance maintained by a school for purposes of paragraph (i) of subsection 2 must include the number of teachers who are in attendance at school and the number of teachers who are absent from school. A teacher shall be deemed in attendance if the teacher is excused from being present in the classroom by the school in which he is employed for one of the following reasons:

(a) Acquisition of knowledge or skills relating to the professional development of the teacher; or

(b) Assignment of the teacher to perform duties for cocurricular or extracurricular activities of pupils.

4. The superintendent of public instruction shall:

(a) Prescribe forms for the reports required pursuant to subsection 2 and provide the forms to the respective school districts.

(b) Provide statistical information and technical assistance to the school districts to ensure that the reports provide comparable information with respect to each school in each district and among the districts.

(1) Nevada State Education Association;

(2) Nevada Association of School Boards;

(3) Nevada Association of School Administrators;

(4) Nevada Parent Teachers Association;

(5) Budget division of the department of administration; and

(6) Legislative counsel bureau,

concerning the program and consider any advice or recommendations submitted by the representatives with respect to the program.

5. The superintendent of public instruction may consult with representatives of parent groups other than the Nevada Parent Teachers Association concerning the program and consider any advice or recommendations submitted by the representatives with respect to the program.

6. On or before April 15 of each year, the board of trustees of each school district shall submit to each advisory board to review school attendance created in the county pursuant to NRS 392.126 the information required in paragraph (g) of subsection 2.

Sec. 2. NRS 385.363 is hereby amended to read as follows:

385.363 1. The department shall, on or before April 1 of each year:

[1.] (a) Evaluate the information submitted by each school district pursuant to paragraphs (b) and (g) of subsection 2 of NRS 385.347; and

[2.] (b) Except as otherwise provided in subsection [3] 2 and NRS 385.364, based upon its evaluation and in accordance with the criteria set forth in NRS 385.365 and 385.367, designate each public school within each school district as:

[(a)] (1) Demonstrating exemplary achievement;

[(b)] (2) Demonstrating high achievement;

[(c)] (3) Demonstrating adequate achievement; or

[(d)] (4) Demonstrating need for improvement.

[3.] 2. The department shall adopt regulations that set forth the conditions under which the department will not designate a public school pursuant to this section because the school:

(a) Has too few pupils enrolled in a grade level that is tested pursuant to NRS 389.015;

(b) Serves only pupils with disabilities;

(c) Operates only as an alternative program for the education of pupils at risk of dropping out of high school [;] , including, without limitation, a program of distance education for pupils at risk of dropping out of high school provided pursuant to sections 35 to 49, inclusive, of this act; or

(d) Is operated within a:

(1) Youth training center;

(2) Youth center;

(3) Juvenile forestry camp;

(4) Detention home;

(5) Youth camp;

(6) Juvenile correctional institution; or

(7) Correctional institution.

Sec. 3. Chapter 386 of NRS is hereby amended by adding thereto the provisions set forth as sections 4 to 10, inclusive, of this act.

Sec. 4. The provisions of NRS 386.500 to 386.610, inclusive, and sections 4 to 10, inclusive, of this act do not authorize an existing public school, home school or other program of home study to convert to a charter school.

Sec. 5. A charter school shall not operate for profit.

Sec. 6. 1. Unless otherwise authorized by specific statute, it is unlawful for a member of the board of trustees of a school district or an employee of a school district to solicit or accept any gift or payment of money on his own behalf or on behalf of the school district or for any other purpose from a member of a committee to form a charter school, the governing body of a charter school, or any officer or employee of a charter school.

2. This section does not prohibit the payment of a salary or other compensation or income to a member of the board of trustees or an employee of a school district for services provided in accordance with a contract made pursuant to NRS 386.560.

3. A person who violates subsection 1 shall be punished for a misdemeanor.

Sec. 7. 1. If a charter school provides instruction to pupils enrolled in a high school grade level and the charter school requires those pupils to satisfy requirements for graduation from high school that are less than the requirements imposed by the school district in which the charter school is located, the charter school shall not issue a high school diploma of the school district but may issue a high school diploma which clearly indicates that it is a diploma issued by a charter school. If a charter school requires its pupils to satisfy requirements for graduation from high school that meet or exceed the requirements of the school district in which the charter school is located, the charter school may issue a high school diploma of the school district or a high school diploma of the charter school.

2. A charter school shall submit the form for a diploma of the charter school to the department for approval if the form differs from the form of the school district in which the charter school is located.

3. The provisions of this section do not authorize a charter school to impose requirements for graduation from high school that are less than the requirements of the applicable state statutes and regulations.

Sec. 8. 1. The fund for charter schools is hereby created in the state treasury as a revolving loan fund, to be administered by the department.

2. The money in the revolving fund must be invested as other state funds are invested. All interest and income earned on the money in the revolving fund must be credited to the revolving fund. Any money remaining in the revolving fund at the end of a fiscal year does not revert to the state general fund, and the balance in the fund must be carried forward.

3. All payments of principal and interest on all the loans made to a charter school from the revolving fund must be deposited in the state treasury for credit to the revolving fund.

4. Claims against the revolving fund must be paid as other claims against the state are paid.

5. The department may accept gifts, grants, bequests and donations from any source for deposit in the revolving fund.

Sec. 9. 1. After deducting the costs directly related to administering the fund for charter schools, the department may use the money in the fund for charter schools, including repayments of principal and interest on loans made from the fund, and interest and income earned on money in the fund, only to make loans at or below market rate to charter schools for the costs incurred:

(a) In preparing a charter school to commence its first year of operation; and

(b) To improve a charter school that has been in operation.

2. The total amount of a loan that may be made to a charter school in 1 year must not exceed $25,000.

Sec. 10. 1. If the governing body of a charter school has a written charter issued pursuant to NRS 386.527, the governing body may submit an application to the department for a loan from the fund for charter schools. An application must include a written description of the manner in which the loan will be used to prepare the charter school for its first year of operation or to improve a charter school that has been in operation.

2. The department shall, within the limits of money available for use in the fund, make loans to charter schools whose applications have been approved. If the department makes a loan from the fund, the department shall ensure that the contract for the loan includes all terms and conditions for repayment of the loan.

3. The state board:

(a) Shall adopt regulations that prescribe the:

(1) Annual deadline for submission of an application to the department by a charter school that desires to receive a loan from the fund; and

(2) Period for repayment and the rate of interest for loans made from the fund.

(b) May adopt such other regulations as it deems necessary to carry out the provisions of this section and sections 8 and 9 of this act.

Sec. 11. NRS 386.500 is hereby amended to read as follows:

386.500 For the purposes of NRS 386.500 to 386.610, inclusive, and sections 4 to 10, inclusive, of this act, a pupil is “at risk” if he has an economic or academic disadvantage such that he requires special services and assistance to enable him to succeed in educational programs. The term includes, without limitation, pupils who are members of economically disadvantaged families, pupils with limited proficiency in the English language, pupils who are at risk of dropping out of high school and pupils who do not meet minimum standards of academic proficiency. The term does not include a pupil with a disability.

Sec. 12. NRS 386.505 is hereby amended to read as follows:

386.505 The legislature declares that by authorizing the formation of charter schools it is not authorizing:

1. The [establishment of a charter school as a justification to keep open] conversion of an existing public school [that would otherwise be closed;] , home school or other program of home study to a charter school.

2. A means for providing financial assistance for private schools or programs of home study . [; or] The provisions of this subsection do not preclude a private school from ceasing to operate as a private school and reopening as a charter school in compliance with the provisions of NRS 386.500 to 386.610, inclusive, and sections 4 to 10, inclusive, of this act.

3. The formation of charter schools on the basis of a single race, religion or ethnicity.

Sec. 13. NRS 386.515 is hereby amended to read as follows:

386.515 1. The board of trustees of a school district may apply to the department for authorization to sponsor charter schools within the school district. An application must be approved by the department before the board of trustees may sponsor a charter school. Not more than 180 days after receiving approval to sponsor charter schools, the board of trustees shall provide public notice of its ability to sponsor charter schools and solicit applications for charter schools.

2. The state board shall sponsor charter schools whose applications have been approved by the state board pursuant to NRS 386.525.

Sec. 14. NRS 386.520 is hereby amended to read as follows:

386.520 1. A committee to form a charter school must consist of at least three teachers, as defined in [NRS 391.311, alone or in combination with:

(a) Ten or more members] subsection 4. In addition to the teachers who serve, the committee may consist of:

(a) Members of the general public;

(b) Representatives of [an organization devoted to service to the general public;

(d)] nonprofit organizations and businesses; or

A majority of the persons described in paragraphs (a), (b) and (c) who serve on the committee must be residents of this state at the time that the application to form the charter school is submitted to the department.

2. Before a committee to form a charter school may submit an application to the board of trustees of a school district, the subcommittee on charter schools or the state board, it must submit the application to the department. The application must include all information prescribed by the department by regulation and:

(a) A written description of how the charter school will carry out the provisions of NRS 386.500 to 386.610, inclusive [.] , and sections 4 to 10, inclusive, of this act.

(b) A written description of the mission and goals for the charter school. A charter school must have as its stated purpose at least one of the following goals:

(1) Improving the opportunities for pupils to learn;

(2) Encouraging the use of effective methods of teaching;

(3) Providing an accurate measurement of the educational achievement of pupils;

(4) Establishing accountability of public schools;

(5) Providing a method for public schools to measure achievement based upon the performance of the schools; or

(6) Creating new professional opportunities for teachers.

(d) The proposed dates of enrollment for the charter school.

(e) The proposed system of governance for the charter school, including, without limitation, the number of persons who will govern, the method of selecting the persons who will govern and the term of office for each person.

(f) The method by which disputes will be resolved between the governing body of the charter school and the sponsor of the charter school.

(g) The proposed curriculum for the charter school [.] and, if applicable to the grade level of pupils who are enrolled in the charter school, the requirements for the pupils to receive a high school diploma, including, without limitation, whether those pupils will satisfy the requirements of the school district in which the charter school is located for receipt of a high school diploma.

(h) The textbooks that will be used at the charter school.

(i) The qualifications of the persons who will provide instruction at the charter school.

(j) Except as otherwise required by NRS 386.595, the process by which the governing body of the charter school will negotiate employment contracts with the employees of the charter school.

(k) A financial plan for the operation of the charter school. The plan must include, without limitation, procedures for the audit of the programs and finances of the charter school and guidelines for determining the financial liability if the charter school is unsuccessful.

(l) A statement of whether the charter school will provide for the transportation of pupils to and from the charter school. If the charter school will provide transportation, the application must include the proposed plan for the transportation of pupils. If the charter school will not provide transportation, the application must include a statement that the charter school will work with the parents and guardians of pupils enrolled in the charter school to develop a plan for transportation to ensure that pupils have access to transportation to and from the charter school.

(m) The procedure for the evaluation of teachers of the charter school, if different from the procedure prescribed in NRS 391.3125. If the procedure is different from the procedure prescribed in NRS 391.3125, the procedure for the evaluation of teachers of the charter school must provide the same level of protection and otherwise comply with the standards for evaluation set forth in NRS 391.3125.

(n) The time by which certain academic or educational results will be achieved.

(o) The kind of school, as defined in subsections 1 to 4, inclusive, of NRS 388.020, for which the charter school intends to operate.

3. The department shall review an application to form a charter school to determine whether it is complete. If an application proposes to convert an existing public school, home school or other program of home study into a charter school, the department shall deny the application. The department shall provide written notice to the applicant of its approval or denial of the application. If the department denies an application, the department shall include in the written notice the reason for the denial and the deficiencies in the application. The applicant must be granted 30 days after receipt of the written notice to correct any deficiencies identified in the written notice and resubmit the application.

4. As used in subsection 1, “teacher” means a person who:

(a) Holds a current license to teach issued pursuant to chapter 391 of NRS; and

(b) Has at least 2 years of experience as an employed teacher. The term does not include a person who is employed as a substitute teacher.

Sec. 15. NRS 386.525 is hereby amended to read as follows:

386.525 1. Upon approval of an application by the department, a committee to form a charter school may submit the application to the board of trustees of the school district in which the proposed charter school will be located. If applicable, a committee may submit an application directly to the subcommittee on charter schools pursuant to subsection 4. If the board of trustees of a school district receives an application to form a charter school, it shall consider the application at [its next] a regularly scheduled meeting [, but] that must be held not later than [14] 30 days after the receipt of the application, and ensure that notice of the meeting has been provided pursuant to chapter 241 of NRS. The board of trustees , the subcommittee on charter schools or the state board, as applicable, shall review [the] an application to determine whether the application:

(a) Complies with NRS 386.500 to 386.610, inclusive, and sections 4 to 10, inclusive, of this act and the regulations applicable to charter schools; and

(b) Is complete in accordance with the regulations of the department.

2. The department shall assist the board of trustees of a school district in the review of an application. The board of trustees [shall] may approve an application if it satisfies the requirements of paragraphs (a) and (b) of subsection 1. The board of trustees shall provide written notice to the applicant of its approval or denial of the application.

3. If the board of trustees denies an application, it shall include in the written notice the reasons for the denial and the deficiencies in the application. The applicant must be granted 30 days after receipt of the written notice to correct any deficiencies identified in the written notice and resubmit the application.

4. If the board of trustees denies an application after it has been resubmitted pursuant to subsection 3, the applicant may submit a written request for sponsorship by the state board to thesubcommittee on charter schools created pursuant to NRS 386.507 [,] not more than 30 days after receipt of the written notice of denial . [, to direct the board of trustees to reconsider the application. The subcommittee shall consider requests for reconsideration in the order in which they are received.] If an applicant proposes to form a charter school exclusively for the enrollment of pupils who receive special education pursuant to NRS 388.440 to 388.520, inclusive, the applicant may submit the written request and application directly to the subcommittee without first seeking approval from the board of trustees of a school district. Any request that is submitted pursuant to this subsection must be accompanied by the application to form the charter school.

5. If the subcommittee receives [such a request,] a request pursuant to subsection 4, it shall hold a meeting to considerthe request [at its next regularly scheduled meeting and ensure that notice] and the application. The meeting must be held not later than 30 days after receipt of the application. Notice of the meeting [is] must be posted in accordance with chapter 241 of NRS. [Not more than 30 days after the meeting, the subcommittee shall provide written notice of its determination to the applicant and to the board of trustees. If the subcommittee denies the request for reconsideration, the applicant may, not more than 30 days after the receipt of the written notice from the subcommittee, appeal the determination to the district court of the county in which the proposed charter school will be located.

5. If the subcommittee on charter schools grants a request to direct reconsideration, the written notice to the board of trustees of the school district that denied the application must include, without limitation, instructions to the board of trustees concerning the reconsideration of the application. Not more than 30 days after receipt of the written notice from the subcommittee directing the reconsideration, the board of trustees shall reconsider the application in accordance with the instructions of the subcommittee, make a final determination on the application and provide written notice of the determination to the applicant. If, upon reconsideration of the application, the board of trustees] The subcommittee shall review the application in accordance with the factors set forth in paragraphs (a) and (b) of subsection 1. The subcommittee shall approve an application if it satisfies the requirements of paragraphs (a) and (b) of subsection 1.

6. The subcommittee shall transmit the application and the recommendation of the subcommittee for approval or denial of the application to the state board. Not more than 14 days after the date of the meeting of the subcommittee pursuant to subsection 5, the state board shall hold a meeting to consider the recommendation of the subcommittee. Notice of the meeting must be posted in accordance with chapter 241 of NRS. The state board shall review the application in accordance with the factors set forth in paragraphs (a) and (b) of subsection 1. The state board shall approve an application if it satisfies the requirements of paragraphs (a) and (b) of subsection 1. Not more than 30 days after the meeting, the state board shall provide written notice of its determination to the applicant.

7. If the state board denies the application, the applicant may, not more than 30 days after the receipt of the written notice from the [board of trustees,] state board, appeal the final determination to the district court of the county in which the proposed charter school will be located.

Sec. 16. NRS 386.527 is hereby amended to read as follows:

386.527 1. [Except as otherwise provided in subsection 3, if] If the state board or the boardof trustees of a school district approves an application to form a charter school, it shall grant a written charter to the applicant. The state board or the board of trustees , as applicable, shall, not later than 10 days after the approval of the application, provide written notice to the department of the approval and the date of the approval. [The] If the board of trustees [that] approves the application , the board of trustees shall be deemed the sponsor of the charter school. [A] If the state board approves the application:

(a) The state board shall be deemed the sponsor of the charter school.

(b) Neither the State of Nevada, the state board nor the department is an employer of the members of the governing body of the charter school or any of the employees of the charter school.

2. Except as otherwise provided in subsection 4, a written charter must be for a term of 6 years unless the governing body of a charter school renews its initial charter after 3 years of operation pursuant to subsection 2 of NRS 386.530. A written charter must include all conditions of operation set forth in paragraphs (a) to ~~[(n),]~~ (o), inclusive, of subsection 2 of NRS 386.520 ~~[.]~~ and include the kind of school, as defined in subsections 1 to 4, inclusive, of NRS 388.020 for which the charter school is authorized to operate. If the state board is the sponsor of the charter school, the written charter must set forth the responsibilities of the sponsor and the charter school with regard to the provision of services and programs to pupils with disabilities who are enrolled in the charter school in accordance with the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq., and NRS 388.440 to 388.520, inclusive. As a condition of the issuance of a written charter pursuant to this subsection, the charter school must agree to comply with all conditions of operation set forth in NRS 386.550.

[2.] 3. The governing body of a charter school may submit to the sponsor of the charter school a written request for an amendment of the written charter of the charter school. Such an amendment may include, without limitation, the expansion of instruction and other educational services to pupils who are enrolled in grade levels other than the grade levels of pupils currently enrolled in the charter school if the expansion of grade levels does not change the kind of school, as defined in NRS 388.020, for which the charter school is authorized to operate. If the proposed amendment complies with the provisions of this section, NRS 386.500 to 386.610, inclusive, and sections 4 to 10, inclusive, of this act, and any other statute or regulation applicable to charter schools, the sponsor shall amend the written charter in accordance with the proposed amendment.

[3. If the board of trustees of a school district is considering an application to form a charter school and determines that the applicant is not yet eligible for the issuance of a charter pursuant to subsection 1, it may, if applicable, hold the application in abeyance and grant a conditional charter to the applicant if the applicant:

(a) Has not obtained a building, equipment or personnel for the charter school; and

(b) Submits proof satisfactory to the entity which is considering the application that acceptance of the application is necessary to obtain the building, equipment or personnel for the charter school.

The board of trustees of a school district that grants a conditional charter pursuant to this subsection shall provide written notice to the state board of its action.

4. A conditional charter expires 1 year after its issuance and is nonrenewable. The holder of a conditional charter shall not operate a charter school and is not eligible to receive any public school money for the operation of a charter school. Before the expiration of a conditional charter, the holder of the conditional charter may submit a supplemental application and request the board of trustees that granted the conditional charter to determine whether the holder is eligible for the issuance of a charter pursuant to subsection 1. The board of trustees shall consider such a request as soon as is practicable.] If a charter school wishes to expand the instruction and other educational services offered by the charter school to pupils who are enrolled in grade levels other than the grade levels of pupils currently enrolled in the charter school and the expansion of grade levels changes the kind of school, as defined in NRS 388.020, for which the charter school is authorized to operate, the charter school must submit a new application to form a charter school.

4. The state board shall adopt objective criteria for the issuance of a written charter to an applicant who is not prepared to commence operation on the date of issuance of the written charter. The criteria must include, without limitation, the:

(a) Period for which such a written charter is valid; and

(b) Timelines by which the applicant must satisfy certain requirements demonstrating its progress in preparing to commence operation.

A holder of such a written charter may apply for grants of money to prepare the charter school for operation. A written charter issued pursuant to this subsection must not be designated as a conditional charter or a provisional charter or otherwise contain any other designation that would indicate the charter is issued for a temporary period.

5. The holder of a written charter that is issued pursuant to subsection 4 shall not commence operation of the charter school and is not eligible to receive apportionments pursuant to NRS 387.124 until the sponsor has determined that the requirements adopted by the state board pursuant to subsection 4 have been satisfied and that the facility the charter school will occupy has been inspected and meets the requirements of any applicable building codes, codes for the prevention of fire, and codes pertaining to safety, health and sanitation. Except as otherwise provided in this subsection, the sponsor shall make such a determination 30 days before the first day of school for the:

(a) Schools of the school district in which the charter school is located that operate on a traditional school schedule and not a year-round school schedule; or

(b) Charter school,

whichever date the sponsor selects. The sponsor shall not require a charter school to demonstrate compliance with the requirements of this subsection more than 30 days before the date selected. However, it may authorize a charter school to demonstrate compliance less than 30 days before the date selected.

Sec. 17. NRS 386.540 is hereby amended to read as follows:

386.540 1. The department shall adopt regulations that prescribe:

(a) The process for submission of an application by the board of trustees of a school district to the department for authorization to sponsor charter schools and the contents of the application;

(b) The process for submission of an application to form a charter school to the department [and to] , the board of trustees of a school district [,] and the subcommittee on charter schools, and the contents of the application;

(d) The criteria and type of investigation that must be applied by the board of trustees , the subcommittee on charter schools and the state board in determining whether to approve an application to form a charter school or an application to renew a written charter.

2. The department may adopt regulations as it determines are necessary to carry out the provisions of NRS 386.500 to 386.610, inclusive, and sections 4 to 10, inclusive, of this act, including, without limitation, regulations that prescribe the procedures for accounting, budgeting and annual audits of charter schools.

Sec. 18. NRS 386.549 is hereby amended to read as follows:

386.549 1. The governing body of a charter school [shall] must consist of at least three teachers, as defined in [NRS 391.311,] subsection 4, and may consist of, without limitation, parents and representatives of nonprofit organizations and businesses. A majority of the members of the governing body must reside in this state. If the membership of the governing body changes, the governing body shall provide written notice to the sponsor of the charter school within 10 working days after such change. A person may serve on the governing body only if he submits an affidavit to the department indicating that the person has not been convicted of a felony or any offense involving moral turpitude.

2. The governing body of a charter school is a public body. It is hereby given such reasonable and necessary powers, not conflicting with the constitution and the laws of the State of Nevada, as may be requisite to attain the ends for which the charter school is established and to promote the welfare of pupils who are enrolled in the charter school.

3. The governing body of a charter school shall, during each calendar quarter, hold at least one regularly scheduled public meeting in the county in which the charter school is located.

4. As used in subsection 1, “teacher” means a person who:

(a) Holds a current license to teach issued pursuant to chapter 391 of NRS; and

(b) Has at least 2 years of experience as an employed teacher.

The term does not include a person who is employed as a substitute teacher.

Sec. 19. NRS 386.550 is hereby amended to read as follows:

386.550 1. A charter school shall:

[1.] (a) Comply with all laws and regulations relating to discrimination and civil rights.

[2.] (b) Remain nonsectarian, including, without limitation, in its educational programs, policies for admission and employment practices.

[3.] (c) Refrain from charging tuition or fees, levying taxes or issuing bonds.

[4.] (d) Comply with any plan for desegregation ordered by a court that is in effect in the school district in which the charter school is located.

[5.] (e) Comply with the provisions of chapter 241 of NRS.

[6.] (f) Except as otherwise provided in this [subsection,] paragraph, schedule and provide annually at least as many days of instruction as are required of other public schools located in the same school district as the charter school is located. The governing body of a charter school may submit a written request to the superintendent of public instruction for a waiver from providing the days of instruction required by this [subsection.] paragraph. The superintendent of public instruction may grant such a request if the governing body demonstrates to the satisfaction of the superintendent that:

[(a)] (1) Extenuating circumstances exist to justify the waiver; and

[(b)] (2) The charter school will provide at least as many hours or minutes of instruction as would be provided under a program consisting of 180 days.

[7.] (g) Cooperate with the board of trustees of the school district in the administration of the achievement and proficiency examinations administered pursuant to NRS 389.015 and the examinations required pursuant to NRS 389.550 to the pupils who are enrolled in the charter school.

[8.] (h) Comply with applicable statutes and regulations governing the achievement and proficiency of pupils in this state.

[9.] (i) Provide instruction in the core academic subjects set forth in subsection 1 of NRS 389.018, as applicable for the grade levels of pupils who are enrolled in the charter school, and provide at least the courses of [instruction] study that are required of pupils by statute or regulation for promotion to the next grade or graduation from a public high school and require the pupils who are enrolled in the charter school to take those courses of study. This [subsection] paragraph does not preclude a charter school from offering, or requiring the pupils who are enrolled in the charter school to take, other courses of study that are required by statute or regulation.

[10.] (j) If the parent or legal guardian of a child submits an application to enroll in kindergarten, first grade or second grade at the charter school, comply with NRS 392.040 regarding the ages for enrollment in those grades.

(k) Refrain from using public money to purchase real property or buildings without the approval of the sponsor.

[11.] (l) Hold harmless, indemnify and defend the sponsor of the charter school against any claim or liability arising from an act or omission by the governing body of the charter school or an employee or officer of the charter school. An action at law may not be maintained against the sponsor of a charter school for any cause of action for which the charter school has obtained liability insurance.

[12.] (m) Provide written notice to the parents or legal guardians of pupils in grades 9 to 12, inclusive, who are enrolled in the charter school of whether the charter school is accredited by the Commission on Schools of the Northwest Association of Schools and Colleges.

[13.] (n) Adopt a final budget in accordance with the regulations adopted by the department. A charter school is not required to adopt a final budget pursuant to NRS 354.598 or otherwise comply with the provisions of chapter 354 of NRS.

(o) If the charter school provides a program of distance education pursuant to sections 35 to 49, inclusive, of this act, comply with all statutes and regulations that are applicable to a program of distance education for purposes of the operation of the program.

2. A charter school shall not provide instruction through a program of distance education to children who are exempt from compulsory attendance authorized by the state board pursuant to subsection 1 of NRS 392.070. As used in this subsection, “distance education” has the meaning ascribed to it in section 37 of this act.

Sec. 20. NRS 386.560 is hereby amended to read as follows:

386.560 1. The governing body of a charter school may contract with the board of trustees of the school district in which the charter school is located or the University and Community College System of Nevada for the provision of facilities to operate the charter school or to perform any service relating to the operation of the charter school, including, without limitation, transportation and the provision of health services for the pupils who are enrolled in the charter school.

2. A charter school may use any public facility located within the school district in which the charter school is located. A charter school may use school buildings owned by the school district only upon approval of the board of trustees of the school district and during times that are not regular school hours.

3. The board of trustees of a school district may donate surplus personal property of the school district to a charter school that is located within the school district.

4. [Upon] Except as otherwise provided in this subsection, upon the request of a parent or legal guardian of a pupil who is enrolled in a charter school, the board of trustees of the school district in which the charter school is located shall authorize the pupil to participate in a class that is not available to the pupil at the charter school or participate in an extracurricular activity, excluding sports, at a public school within the school district if:

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

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

If the board of trustees of a school district authorizes a pupil to participate in a class or extracurricular activity, excluding sports, pursuant to this subsection, the board of trustees is not required to provide transportation for the pupil to attend the class or activity. The provisions of this subsection do not apply to a pupil who is enrolled in a charter school and who desires to participate on a part-time basis in a program of distance education provided by the board of trustees of a school district pursuant to sections 35 to 49, inclusive, of this act. Such a pupil must comply with section 45 of this act.

5. Upon the request of a parent or legal guardian of a pupil who is enrolled in a charter school, the board of trustees of the school district in which the charter school is located shall authorize the pupil to participate in sports at the public school that he would otherwise be required to attend within the school district, or upon approval of the board of trustees, any public school within the same zone of attendance as the charter school if:

(a) Space is available for the pupil to participate; and

(b) The parent or legal guardian demonstrates to the satisfaction of the board of trustees that the pupil is qualified to participate.

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

6. The board of trustees of a school district may revoke its approval for a pupil to participate in a class, extracurricular activity or sports at a public school pursuant to subsections 4 and 5 if the board of trustees or the public school determines that the pupil has failed to comply with applicable statutes, or applicable rules and regulations of the board of trustees, the public school or an association for interscholastic activities. If the board of trustees so revokes its approval, neither the board of trustees nor the public school are liable for any damages relating to the denial of services to the pupil.

Sec. 21. NRS 386.570 is hereby amended to read as follows:

386.570 1. Each pupil who is enrolled in a charter school, including, without limitation, a pupil who is enrolled in a program of special education in a charter school, must be included in the count of pupils in the school district for the purposes of apportionments and allowances from the state distributive school account pursuant to NRS 387.121 to 387.126, inclusive, unless the pupil is exempt from compulsory attendance pursuant to NRS 392.070. A charter school is entitled to receive its proportionate share of any other money available from federal, state or local sources that the school or the pupils who are enrolled in the school are eligible to receive. If a charter school receives special education program units directly from this state, the amount of money for special education that the school district pays to the charter school may be reduced proportionately by the amount of money the charter school received from this state for that purpose.

2. All money received by the charter school from this state or from the board of trustees of a school district must be deposited in a bank, credit union or other financial institution in this state. The governing body of a charter school may negotiate with the board of trustees of the school district and the state board for additional money to pay for services which the governing body wishes to offer.

3. Upon completion of a school year, the sponsor of a charter school may request reimbursement from the governing body of the charter school for the administrative costs associated with sponsorship for that school year if the sponsor provided administrative services during that school year. Upon receipt of such a request, the governing body shall pay the reimbursement to the board of trustees of the school district, if the board of trustees sponsors the charter school, or to the department if the state board sponsors the charter school. If a governing body fails to pay the reimbursement, the charter school shall be deemed to have violated its written charter and the sponsor may take such action to revoke the written charter pursuant to NRS 386.535 as it deems necessary. The amount of reimbursement that a charter school may be required to pay pursuant to this subsection must not exceed:

(a) For the first year of operation of the charter school, 2 percent of the total amount of money apportioned to the charter school during the year pursuant to NRS 387.124.

(b) For any year after the first year of operation of the charter school, 1 percent of the total amount of money apportioned to the charter school during the year pursuant to NRS 387.124.

4. To determine the amount of money for distribution to a charter school in its first year of operation, the count of pupils who are enrolled in the charter school must initially be determined 30 days before the beginning of the school year of the school district, based on the number of pupils whose applications for enrollment have been approved by the charter school. The count of pupils who are enrolled in the charter school must be revised on the last day of the first school month of the school district in which the charter school is located for the school year, based on the actual number of pupils who are enrolled in the charter school. Pursuant to subsection [2] 5of NRS 387.124, the governing body of a charter school may request that the apportionments made to the charter school in its first year of operation be paid to the charter school 30 days before the apportionments are otherwise required to be made.

[4.] 5. If a charter school ceases to operate as a charter school during a school year, the remaining apportionments that would have been made to the charter school pursuant to NRS 387.124 for that year must be paid on a proportionate basis to the school districts where the pupils who were enrolled in the charter school reside.

6. The governing body of a charter school may solicit and accept donations, money, grants, property, loans, personal services or other assistance for purposes relating to education from members of the general public, corporations or agencies. The governing body may comply with applicable federal laws and regulations governing the provision of federal grants for charter schools.

[5.] The state board may assist a charter school that operates exclusively for the enrollment of pupils who receive special education in identifying sources of money that may be available from the Federal Government or this state for the provision of educational programs and services to such pupils.

7. If a charter school uses money received from this state to purchase real property, buildings, equipment or facilities, the governing body of the charter school shall assign a security interest in the property, buildings, equipment and facilities to the State of Nevada.

Sec. 22. NRS 386.580 is hereby amended to read as follows:

386.580 1. An application for enrollment in a charter school may be submitted to the governing body of the charter school by the parent or legal guardian of any child who resides in this state. Except as otherwise provided in this subsection, a charter school shall enroll pupils who are eligible for enrollment in the order in which the applications are received. If the board of trustees of the school district in which the charter school is located has established zones of attendance pursuant to NRS 388.040, the charter school shall, if practicable, ensure that the racial composition of pupils enrolled in the charter school does not differ by more than 10 percent from the racial composition of pupils who attend public schools in the zone in which the charter school is located. If more pupils who are eligible for enrollment apply for enrollment in the charter school than the number of spaces which are available, the charter school shall determine which applicants to enroll on the basis of a lottery system.

2. Except as otherwise provided in subsection [4,] 6, a charter school shall not accept applications for enrollment in the charter school or otherwise discriminate based on the:

(a) Race;

(b) Gender;

(d) Ethnicity; or

(e) Disability,

of a pupil.

3. If the governing body of a charter school determines that the charter school is unable to provide an appropriate special education program and related services for a particular disability of a pupil who is enrolled in the charter school, the governing body may request that the board of trustees of the school district of the county in which the pupil resides transfer that pupil to an appropriate school.

4. Except as otherwise provided in this subsection, upon the request of a parent or legal guardian of a child who is enrolled in a public school of a school district or a private school, or who receives instruction at home, the governing body of the charter school shall authorize the child to participate in a class that is not otherwise available to the child at his school or home school or participate in an extracurricular activity at the charter school if:

(a) Space for the child in the class or extracurricular activity is available; and

(b) The parent or legal guardian demonstrates to the satisfaction of the governing body that the child is qualified to participate in the class or extracurricular activity.

If the governing body of a charter school authorizes a child to participate in a class or extracurricular activity pursuant to this subsection, the governing body is not required to provide transportation for the child to attend the class or activity. A charter school shall not authorize such a child to participate in a class or activity through a program of distance education provided by the charter school pursuant to sections 35 to 49, inclusive, of this act.

5. The governing body of a charter school may revoke its approval for a child to participate in a class or extracurricular activity at a charter school pursuant to subsection 4 if the governing body determines that the child has failed to comply with applicable statutes, or applicable rules and regulations. If the governing body so revokes its approval, neither the governing body nor the charter school is liable for any damages relating to the denial of services to the child.

6. This section does not preclude the formation of a charter school that is dedicated to provide educational services exclusively to pupils:

(a) With disabilities;

(b) Who pose such severe disciplinary problems that they warrant an educational program specifically designed to serve a single gender and emphasize personal responsibility and rehabilitation; or

If more eligible pupils apply for enrollment in such a charter school than the number of spaces which are available, the charter school shall determine which applicants to enroll on the basis of a lottery system.

Sec. 23. NRS 386.590 is hereby amended to read as follows:

386.590 1. Except as otherwise provided in this subsection, at least 70 percent of the teachers who provide instruction at a charter school must be licensed teachers. If a charter school is a vocational school, the charter school shall, to the extent practicable, ensure that at least 70 percent of the teachers who provide instruction at the school are licensed teachers, but in no event may more than 50 percent of the teachers who provide instruction at the school be unlicensed teachers.

2. A governing body of a charter school shall employ:

(a) If the charter school offers instruction in kindergarten or grade 1, 2, 3, 4 or 5, a licensed teacher to teach pupils who are enrolled in those grades.

(b) If the charter school offers instruction in grade 6, 7, 8, 9, 10, 11 or 12, a licensed teacher to teach pupils who are enrolled in those grades for the following courses of study:

(1) English, including reading, composition and writing;

(2) Mathematics;

(3) Science; and

(4) Social studies, which includes only the subjects of history, geography, economics and government.

(1) If a charter school specializes in arts and humanities, physical education or health education, a licensed teacher to teach those courses of study.

(2) If a charter school specializes in the construction industry or other building industry, licensed teachers to teach courses of study relating to the industry if those teachers are employed full time.

(3) If a charter school specializes in the construction industry or other building industry and the school offers courses of study in computer education, technology or business, licensed teachers to teach those courses of study if those teachers are employed full time.

3. A charter school may employ a person who is not licensed pursuant to the provisions of chapter 391 of NRS to teach a course of study for which a licensed teacher is not required pursuant to subsection 2 if the person has:

(a) A degree, a license or a certificate in the field for which he is employed to teach at the charter school; and

(b) At least 2 years of experience in that field.

4. A charter school may employ such administrators for the school as it deems necessary. A person employed as an administrator must possess:

(a) A master’s degree in school administration, public administration or business administration; or

(b) If the person has at least 5 years of experience in administration, a baccalaureate degree.

5. A charter school shall not employ a person pursuant to this section if his license to teach or provide other educational services has been revoked or suspended in this state or another state.

6. On or before November 15 of each year, a charter school shall submit to the department, in a format prescribed by the superintendent of public instruction, the following information for each licensed employee who is employed by the governing body on October 1 of that year:

(a) The amount of salary of the employee; and

(b) The designated assignment, as that term is defined by the department, of the employee.

Sec. 24. NRS 386.595 is hereby amended to read as follows:

386.595 1. All employees of a charter school shall be deemed public employees.

2. Except as otherwise provided in this subsection , [and subsections 2 and 3,] theprovisions of the collective bargaining agreement entered into by the board of trustees of the school district in which the charter school is located apply to the terms and conditions of employment of employees of the charter school ~~[. If a written charter is renewed, the employees of the charter school may, at the time of renewal, apply for recognition as a bargaining unit pursuant to NRS 288.160.~~

~~2. A charter school is exempt from the specific provisions of the collective bargaining agreement that controls the:~~

~~(a) Periods of preparation time for teachers, provided that the charter school allows at least the same amount of time for preparation as the school district;~~

~~(b) Times of day that a teacher may work;~~

~~(c) Number of hours that a teacher may work in 1 day;~~

~~(d) Number of hours and days that a teacher may work in 1 week; and~~

~~(e) Number of hours and days that a teacher may work in 1 year.~~

If a teacher works more than the number of hours or days prescribed in the collective bargaining agreement, the teacher must be compensated for the additional hours or days in an amount calculated by prorating the salary for the teacher that is set forth in the collective bargaining agreement.

3. A teacher or a governing body of a charter school may request that the board of trustees of the school district and other persons who entered into the collective bargaining agreement grant a waiver from specific provisions of the collective bargaining agreement for the teacher or governing body.

~~4. All employees of a charter school shall be deemed public employees.~~

5. The] who are on a leave of absence from the school district pursuant to subsection 5, including, without limitation, any provisions relating to representation by the employee organization that is a party to the collective bargaining agreement of the school district in a grievance proceeding or other dispute arising out of the agreement. The provisions of the collective bargaining agreement apply to each employee for the first 3 years that he is on a leave of absence from the school district. After the first 3 years that the employee is on a leave of absence:

(a) If he is subsequently reassigned by the school district pursuant to subsection 5, he is covered by the collective bargaining agreement of the school district.

(b) If he continues his employment with the charter school, he is covered by the collective bargaining agreement of the charter school, if applicable.

3. Except as otherwise provided in subsection 2, the governing body of a charter school may make all employment decisions with regard to its employees pursuant to NRS 391.311 to 391.3197, inclusive, unless [the applicable] a collective bargaining agreement entered into by the governing body pursuant to chapter 288 of NRS contains separate provisions relating to the discipline of licensed employees of a school.

[6.] 4. If the written charter of a charter school is revoked,the employees of the charter school must be reassigned to employment within the school district in accordance with the collective bargaining agreement.

5. The board of trustees of a school district that is a sponsor of a charter school shall grant a leave of absence, not to exceed 6 years, to any employee who is employed by the board of trustees who requests such a leave of absence to accept employment with the charter school. After the first school year in which an employee is on a leave of absence, he may return to his former teaching position with the board of trustees. After the third school year, an employee who is on a leave of absence may submit a written request to the board of trustees to return to a comparable teaching position with the board of trustees. After the sixth school year, an employee shall either submit a written request to return to a comparable teaching position or resign from the position for which his leave was granted. The board of trustees shall grant a written request to return to a comparable position pursuant to this subsection even if the return of the employee requires the board of trustees to reduce the existing work force of the school district. The board of trustees may require that a request to return to a teaching position submitted pursuant to this subsection be submitted at least 90 days before the employee would otherwise be required to report to duty.

[8.] 6. An employee who is on a leave of absence from a school district pursuant to this section shall contribute to and be eligible for all benefits for which he would otherwise be entitled, including, without limitation, participation in the public employees’ retirement system and accrual of time for the purposes of leave and retirement. The time during which such an employee is on leave of absence and employed in a charter school does not count toward the acquisition of permanent status with the school district.

[9.] 7. Upon the return of a teacher to employment in the school district, he is entitled to the same level of retirement, salary and any other benefits to which he would otherwise be entitled if he had not taken a leave of absence to teach in a charter school.

[10.] 8. An employee of a charter school who is not on a leave of absence from a school district is eligible for all benefits for which he would be eligible for employment in a public school, including, without limitation, participation in the public employees’ retirement system.

[11.] 9. For all employees of a charter school:

(a) The compensation that a teacher or other school employee would have received if he were employed by the school district must be used to determine the appropriate levels of contribution required of the employee and employer for purposes of the public employees’ retirement system.

(b) The compensation that is paid to a teacher or other school employee that exceeds the compensation that he would have received if he were employed by the school district must not be included for the purposes of calculating future retirement benefits of the employee.

[12.] 10. If the board of trustees of a school district in which a charter school is located manages a plan of group insurance for its employees, the governing body of the charter school may negotiate with the board of trustees to participate in the same plan of group insurance that the board of trustees offers to its employees. If the employees of the charter school participate in the plan of group insurance managed by the board of trustees, the governing body of the charter school shall:

(a) Ensure that the premiums for that insurance are paid to the board of trustees; and

(b) Provide, upon the request of the board of trustees, all information that is necessary for the board of trustees to provide the group insurance to the employees of the charter school.

Sec. 25. NRS 386.605 is hereby amended to read as follows:

386.605 1. On or before January 1of each year, the governing body of each charter school shall submit the information concerning the charter school that is required pursuant to subsection 2 of NRS 385.347 to the board of trustees of the school district in which the charter school is located, regardless of the sponsor of the charter school, for inclusion in the report of the school district pursuant to that section. The information must be submitted by the charter school in a format prescribed by the board of trustees.

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

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

(a) Separate written report summarizing the effectiveness of the charter school’s program of accountability. The report must include:

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

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

(3) A summary of the efforts that the governing body has made or intends to make to ensure that the teachers and other educational personnel employed by the governing body receive training and other professional development in:

(I) The standards of content and performance established by the council to establish academic standards for public schools pursuant to NRS 389.520;

(II) The assessment and measurement of pupil achievement and the effective methods to analyze the test results and scores of pupils to improve the achievement and proficiency of pupils; and

(III) Specific content areas to enable the teachers and other educational personnel to provide a higher level of instruction in their respective fields of teaching.

(b) Written procedure to improve the achievement of pupils who are enrolled in the charter school, including, but not limited to, a description of the efforts the governing body has made to correct any deficiencies identified in the written report required pursuant to paragraph (a).The written procedure must describe sources of data that will be used by the governing body to evaluate the effectiveness of the written procedure.

4. On or before June 15 of each year, the governing body of each charter school shall submit copies of the written report and written procedure required pursuant to subsection 3to the:

(a) Governor;

(b) State board;

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

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

(f) Board of trustees of the school district in which the charter school is located.

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

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

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

Sec. 26. NRS 386.610 is hereby amended to read as follows:

386.610 1. On or before July 1 of each year, if the board of trustees of a school district [that] sponsors a charter school , the board of trustees shall submit a written report to the state board. The written report must include an evaluation of the progress of each charter school sponsored by the board of trustees in achieving its educational goals and objectives.

2. The governing body of a charter school shall, after 3 years of operation under its initial charter, submit a written report to the [board of trustees of the school district that is the] sponsor of the charter school. The written report must include a description of the progress of the charter school in achieving its educational goals and objectives. If the charter school submits an application for renewal in accordance with the regulations of the department, the [board of trustees] sponsor may renew the written charter of the school pursuant to subsection 2 of NRS 386.530.

Sec. 27. NRS 386.650 is hereby amended to read as follows:

386.650 1. The department shall establish and maintain a statewide automated system of information concerning pupils. The system must be designed to improve the ability of the department, school districts and the public schools in this state , including, without limitation, charter schools, to account for the pupils who are enrolled in the public schools[.] , including, without limitation, charter schools.

2. The board of trustees of each school district shall:

(a) Adopt and maintain the program for the collection, maintenance and transfer of data from the records of individual pupils to the statewide automated system of information, including, without limitation, the development of plans for the educational technology which is necessary to adopt and maintain the program;

(b) Provide to the department electronic data concerning pupils as required by the superintendent of public instruction pursuant to subsection 3; and

3. The superintendent of public instruction shall:

(a) Prescribe the data to be collected and reported to the department by each school district pursuant to subsection 2[;] , including, without limitation, data relating to each charter school located within a school district regardless of the sponsor of the charter school;

(b) Prescribe the format for the data;

(d) Prescribe the date by which each charter school located within a school district shall report the data to the school district for incorporation into the report of the school district, regardless of the sponsor of the charter school;

(e) Provide technical assistance to each school district to ensure that the data from each public school in the school district , including, without limitation, each charter school located within the school district, is compatible with the statewide automated system of information and comparable to the data reported by other school districts; and

[(e)] (f) Provide for the analysis and reporting of the data in the statewide automated system of information.

Sec. 28. NRS 386.655 is hereby amended to read as follows:

386.655 1. The department, the school districts and the public schools , including, without limitation, charter schools, shall, in operating the statewide automated system of information established pursuant to NRS 386.650, comply with the provisions of:

(a) For all pupils, the Family Educational Rights and Privacy Act, 20 U.S.C. § 1232g, and any regulations adopted pursuant thereto; and

(b) For pupils with disabilities who are enrolled in programs of special education, the provisions governing access to education records and confidentiality of information prescribed in the Individuals with Disabilities Education Act, 20 U.S.C. § 1417(c), and the regulations adopted pursuant thereto.

2. Except as otherwise provided in 20 U.S.C. § 1232g(b) and any other applicable federal law, a public school , including, without limitation, a charter school, shall not release the education records of a pupil to a person or an agency of a federal, state or local government without the written consent of the parent or legal guardian of the pupil.

3. In addition to the record required pursuant to 20 U.S.C. § 1232g(b)(4)(A), each school district shall maintain within the statewide automated system of information an electronic record of all persons and agencies who have requested the education record of a pupil or obtained access to the education record of a pupil, or both, pursuant to 20 U.S.C. § 1232g. The electronic record must be maintained and may only be disclosed in accordance with the provisions of 20 U.S.C. § 1232g. A charter school shall provide to the school district in which the charter school is located such information as is necessary for the school district to carry out the provisions of this subsection, regardless of the sponsor of the charter school.

4. The right accorded to a parent or legal guardian of a pupil pursuant to subsection 2 devolves upon the pupil on the date on which he attains the age of 18 years.

5. As used in this section, unless the context otherwise requires, “education records” has the meaning ascribed to it in 20 U.S.C. § 1232g(a)(4).

Sec. 29. NRS 387.123 is hereby amended to read as follows:

387.123 1. The count of pupils for apportionment purposes includes all pupils who are enrolled in programs of instruction of the school district , including, without limitation, a program of distance education provided by the school district, or pupils who reside in the county in which the school district is located and are enrolled in any charter school , including, without limitation, a program of distance education provided by a charter school, for:

(a) Pupils in the kindergarten department.

(b) Pupils in grades 1 to 12, inclusive.

(c) Pupils not included under paragraph (a) or (b) who are receiving special education pursuant to the provisions of NRS 388.440 to 388.520, inclusive.

(d) Pupils who reside in the county and are enrolled part time in a program of distance education if an agreement is filed with the superintendent of public instruction pursuant to section 44 or 45 of this act, as applicable.

(e) Children detained in detention homes, alternative programs and juvenile forestry camps receiving instruction pursuant to the provisions of NRS 388.550, 388.560 and 388.570.

[(e)] (f) Pupils who are enrolled in classes pursuant to subsection 4 of NRS 386.560 [.

(f)] and pupils who are enrolled in classes pursuant to subsection 4 of NRS 386.580.

(g) Pupils who are enrolled in classes pursuant to subsection 3 of NRS 392.070.

[(g)] (h) Pupils who are enrolled in classes and taking courses necessary to receive a high school diploma, excluding those pupils who are included in paragraphs [(e) and (f).] (d), (f) and (g).

2. The state board shall establish uniform regulations for counting enrollment and calculating the average daily attendance of pupils. In establishing such regulations for the public schools, the state board:

(a) Shall divide the school year into 10 school months, each containing 20 or fewer school days.

(b) May divide the pupils in grades 1 to 12, inclusive, into categories composed respectively of those enrolled in elementary schools and those enrolled in secondary schools.

3. Except as otherwise provided in subsection 4 and NRS 388.700, the state board shall establish by regulation the maximum pupil-teacher ratio in each grade, and for each subject matter wherever different subjects are taught in separate classes, for each school district of this state which is consistent with:

(a) The maintenance of an acceptable standard of instruction;

(b) The conditions prevailing in the school district with respect to the number and distribution of pupils in each grade; and

(c) Methods of instruction used, which may include educational television, team teaching or new teaching systems or techniques.

If the superintendent of public instruction finds that any school district is maintaining one or more classes whose pupil-teacher ratio exceeds the applicable maximum, and unless he finds that the board of trustees of the school district has made every reasonable effort in good faith to comply with the applicable standard, he shall, with the approval of the state board, reduce the count of pupils for apportionment purposes by the percentage which the number of pupils attending those classes is of the total number of pupils in the district, and the state board may direct him to withhold the quarterly apportionment entirely.

4. [A] The provisions of subsection 3 do not apply to a charter school [is not required to comply with the pupil-teacher ratio prescribed by the state board pursuant to subsection 3.] or a program of distance education provided pursuant to sections 35 to 49, inclusive, of this act.

Sec. 30. NRS 387.1233 is hereby amended to read as follows:

387.1233 1. Except as otherwise provided in subsection 2, basic support of each school district must be computed by:

(a) Multiplying the basic support guarantee per pupil established for that school district for that school year by the sum of:

(1) Six-tenths the count of pupils enrolled in the kindergarten department on the last day of the first school month of the school district for the school year, including, without limitation, the count of pupils who reside in the county and are enrolled in any charter school on the last day of the first school month of the school district for the school year.

(2) The count of pupils enrolled in grades 1 to 12, inclusive, on the last day of the first school month of the school district for the school year, including, without limitation, the count of pupils who reside in the county and are enrolled in any charter school on the last day of the first school month of the school district for the school year.

(3) The count of pupils not included under subparagraph (1) or (2) who are enrolled full time in a program of distance education provided by that school district or a charter school located within that school district on the last day of the first school month of the school district for the school year.

(4) The count of pupils who reside in the county and are enrolled:

(I) In a public school of the school district and are concurrently enrolled part time in a program of distance education provided by another school district or a charter school on the last day of the first school month of the school district for the school year, expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

(II) In a charter school and are concurrently enrolled part time in a program of distance education provided by a school district or another charter school on the last day of the first school month of the school district for the school year, expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

(5) The count of pupils not included under subparagraph (1) , [or] (2), (3) or (4), who are receiving special education pursuant to the provisions of NRS 388.440 to 388.520, inclusive, on the last day of the first school month of the school district for the school year, excluding the count of pupils who have not attained the age of 5 years and who are receiving special education pursuant to subsection 1 of NRS 388.490 on that day.

[(4)] (6) Six-tenths the count of pupils who have not attained the age of 5 years and who are receiving special education pursuant to subsection 1 of NRS 388.490 on the last day of the first school month of the school district for the school year.

[(5)] (7) The count of children detained in detention homes, alternative programs and juvenile forestry camps receiving instruction pursuant to the provisions of NRS 388.550, 388.560 and 388.570 on the last day of the first school month of the school district for the school year.

[(6)] (8) The count of pupils who are enrolled in classes for at least one semester pursuant to subsection 4 of NRS 386.560 , subsection 4 of NRS 386.580 or subsection 3 of NRS 392.070, expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

(b) Multiplying the number of special education program units maintained and operated by the amount per program established for that school year.

2. If the enrollment of pupils in a school district or a charter school that is located within the school district on the last day of the first school month of the school district for the school year is less than the enrollment of pupils in the same school district or charter school on the last day of the first school month of the school district for either or both of the immediately preceding 2 school years, the largest number must be used from among the 3 years for purposes of apportioning money from the state distributive school account to that school district or charter school pursuant to NRS 387.124.

3. Pupils who are excused from attendance at examinations or have completed their work in accordance with the rules of the board of trustees must be credited with attendance during that period.

4. Pupils who are incarcerated in a facility or institution operated by the department of prisons must not be counted for the purpose of computing basic support pursuant to this section. The average daily attendance for such pupils must be reported to the department . [of education.]

5. Pupils who are enrolled in courses which are approved by the department as meeting the requirements for an adult to earn a high school diploma must not be counted for the purpose of computing basic support pursuant to this section.

Sec. 31. NRS 387.124 is hereby amended to read as follows:

387.124 Except as otherwise provided in this section and NRS 387.528:

1. On or before August 1, November 1, February 1 and May 1 of each year, the superintendent of public instruction shall [, except as otherwise provided in subsections 2 and 3,] apportion the state distributive school account in the state general fund among the several county school districts and charter schools in amounts approximating one-fourth of their respective yearly apportionments less any amount set aside as a reserve. The apportionment to a school district, computed on a yearly basis, equals the difference between the basic support and the local funds available pursuant to NRS 387.1235, minus all the funds attributable to pupils who reside in the county but attend a charter school [.] and all the funds attributable to pupils who reside in the county and are enrolled full time or part time in a program of distance education provided by another school district or a charter school. No apportionment may be made to a school district if the amount of the local funds exceeds the amount of basic support. [The] If an agreement is not filed for a pupil who is enrolled in a program of distance education as required by section 44 of this act, the superintendent of public instruction shall not apportion money for that pupil to the board of trustees of the school district in which the pupil resides, or the board of trustees or governing body that provides the program of distance education.

2. Except as otherwise provided in subsection 3, the apportionment to a charter school, computed on a yearly basis, is equal to the sum of the basic support per pupil in the county in which the pupil resides plus the amount of local funds available per pupil pursuant to NRS 387.1235 and all other funds available for public schools in the county in which the pupil resides [.] minus all the funds attributable to pupils who are enrolled in the charter school but are concurrently enrolled part time in a program of distance education provided by a school district or another charter school. If the apportionment per pupil to a charter school is more than the amount to be apportioned to the school district in which a pupil who is enrolled in the charter school resides, the school district in which the pupil resides shall pay the difference directly to the charter school.

[2.] 3. Except as otherwise provided in this subsection, the apportionment to a charter school that is sponsored by the state board, computed on a yearly basis, is equal to:

(a) The sum of the basic support per pupil in the county in which the pupil resides plus the amount of local funds available per pupil pursuant to NRS 387.1235 and all other funds available for public schools in the county in which the pupils resides; or

(b) The statewide average per pupil amount for pupils who are enrolled full time, whichever is greater. If the calculation set forth in paragraph (a) is less than the calculation pursuant to paragraph (b), the school district in which the charter school is located shall pay the difference directly to the charter school. If a charter school provides a program of distance education pursuant to sections 35 to 49, inclusive, of this act, the apportionment to the charter school for pupils who are enrolled in the program of distance education must be calculated as set forth in subsection 2 or 4, as applicable.

4. In addition to the apportionments made pursuant to this section, an apportionment must be made to a school district or charter school that provides a program of distance education for each pupil who is enrolled part time in the program if an agreement is filed for that pupil pursuant to section 44 or 45 of this act, as applicable. The amount of the apportionment must be equal to the percentage of the total time services are provided to the pupil through the program of distance education per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2) of paragraph (a) of subsection 1 of NRS 387.1233 for the school district in which the pupil resides.

5. The governing body of a charter school may submit a written request to the superintendent of public instruction to receive, in the first year of operation of the charter school, an apportionment 30 days before the apportionment is required to be made pursuant to subsection 1. Upon receipt of such a request, the superintendent of public instruction may make the apportionment 30 days before the apportionment is required to be made. A charter school may receive all four apportionments in advance in its first year of operation.

[3.] 6. If the state controller finds that such an action is needed to maintain the balance in the state general fund at a level sufficient to pay the other appropriations from it, he may pay out the apportionments monthly, each approximately one-twelfth of the yearly apportionment less any amount set aside as a reserve. If such action is needed, the state controller shall submit a report to the department of administration and the fiscal analysis division of the legislative counsel bureau documenting reasons for the action.

Sec. 32. NRS 387.1243 is hereby amended to read as follows:

387.1243 1. The first apportionment based on an estimated number of pupils and special education program units and succeeding apportionments are subject to adjustment from time to time as the need therefor may appear.

2. The apportionments to a school district may be adjusted during a fiscal year by the department of education, upon approval by the state board of examiners and the interim finance committee, if the department of taxation and the county assessor in the county in which the school district is located certify to the department of education that the school district will not receive the tax levied pursuant to subsection 1 of NRS 387.195 on property of the Federal Government located within the county if:

(a) The leasehold interest, possessory interest, beneficial interest or beneficial use of the property is subject to taxation pursuant to NRS 361.157 and 361.159 and one or more lessees or users of the property are delinquent in paying the tax; and

(b) The total amount of tax owed but not paid for the fiscal year by any such lessees and users is at least 5 percent of the proceeds that the school district would have received from the tax levied pursuant to subsection 1 of NRS 387.195.

If a lessee or user pays the tax owed after the school district’s apportionment has been increased in accordance with the provisions of this subsection to compensate for the tax owed, the school district shall repay to the state distributive school account in the state general fund an amount equal to the tax received from the lessee or user for the year in which the school district received an increased apportionment, not to exceed the increase in apportionments made to the school district pursuant to this subsection.

3. On or before August 1 of each year, the board of trustees of a school district shall provide to the department, in a format prescribed by the department, the count of pupils calculated pursuant to subparagraph [(6)] (8) of paragraph (a) of subsection 1 of NRS 387.1233 who completed at least one semester during the immediately preceding school year. The count of pupils submitted to the department must be included in the final adjustment computed pursuant to subsection 4.

4. A final adjustment for each school district and charter school must be computed as soon as practicable following the close of the school year, but not later than August 25. The final computation must be based upon the actual counts of pupils required to be made for the computation of basic support and the limits upon the support of special education programs, except that for any year when the total enrollment of pupils and children in a school district or a charter school located within the school district described in paragraphs (a), (b), (c) and [(d)] (e) of subsection 1 of NRS 387.123 is greater on the last day of any school month of the school district after the second school month of the school district and the increase in enrollment shows at least:

(a) A 3-percent gain, basic support as computed from first month enrollment for the school district or charter school must be increased by 2 percent.

(b) A 6-percent gain, basic support as computed from first month enrollment for the school district or charter school must be increased by an additional 2 percent.

5. If the final computation of apportionment for any school district or charter school exceeds the actual amount paid to the school district or charter school during the school year, the additional amount due must be paid before September 1. If the final computation of apportionment for any school district or charter school is less than the actual amount paid to the school district or charter school during the school year, the difference must be repaid to the state distributive school account in the state general fund by the school district or charter school before September 25.

Sec. 33. NRS 387.185 is hereby amended to read as follows:

387.185 1. Except as otherwise provided in subsection 2 and NRS 387.528, all school money due each county school district must be paid over by the state treasurer to the county treasurer on August 1, November 1, February 1 and May 1 of each year or as soon thereafter as the county treasurer may apply for it, upon the warrant of the state controller drawn in conformity with the apportionment of the superintendent of public instruction as provided in NRS 387.124.

2. Except as otherwise provided in NRS 387.528, if the board of trustees of a school district establishes and administers a separate account pursuant to the provisions of NRS 354.603, all school money due that school district must be paid over by the state treasurer to the school district on August 1, November 1, February 1 and May 1 of each year or as soon thereafter as the school district may apply for it, upon the warrant of the state controller drawn in conformity with the apportionment of the superintendent of public instruction as provided in NRS 387.124.

3. No county school district may receive any portion of the public school money unless that school district has complied with the provisions of this Title and regulations adopted pursuant thereto.

4. Except as otherwise provided in this subsection, all school money due each charter school must be paid over by the state treasurer to the governing body of the charter school on August 1, November 1, February 1 and May 1 of each year or as soon thereafter as the governing body may apply for it, upon the warrant of the state controller drawn in conformity with the apportionment of the superintendent of public instruction as provided in NRS 387.124. If the superintendent of public instruction has approved, pursuant to subsection [2] 5of NRS 387.124, a request for payment of an apportionment 30 days before the apportionment is otherwise required to be made, the money due to the charter school must be paid by the state treasurer to the governing body of the charter school on July 1, October 1, January 1 or April 1, as applicable.

Sec. 34. Chapter 388 of NRS is hereby amended by adding thereto the provisions set forth as sections 35 to 49, inclusive, of this act.

Sec. 35. As used in sections 35 to 49, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 36, 37 and 38 of this act have the meanings ascribed to them in those sections.

Sec. 36. “Course of distance education” means a course of study that uses distance education as its primary mechanism for delivery of instruction.

Sec. 37. “Distance education” means instruction which is delivered by means of video, computer, television, correspondence, or the Internet or other electronic means of communication, or any combination thereof, in such a manner that the person supervising or providing the instruction and the pupil receiving the instruction are separated geographically for a majority of the time during which the instruction is delivered.

Sec. 38. “Program of distance education” means a program comprised of one or more courses of distance education that is designed for pupils who:

1. Are participating in a program for pupils who are at risk of dropping out of high school pursuant to NRS 388.537.

2. Are participating in a program of independent study pursuant to NRS 389.155.

3. Are enrolled in a public school that does not offer advanced or specialized courses.

4. Have a physical or mental condition that would otherwise require an excuse from compulsory attendance pursuant to NRS 392.050.

5. Are excused from compulsory attendance pursuant to NRS 392.070 and are authorized to enroll in a program of distance education pursuant to that section.

6. Would otherwise be excused from compulsory attendance pursuant to NRS 392.080.

7. Are otherwise prohibited from attending public school pursuant to NRS 392.264, 392.4642 to 392.4648, inclusive, 392.466, 392.467 or 392.4675.

8. Are otherwise permitted to enroll in a program of distance education provided by the board of trustees of a school district if the board of trustees determines that special circumstances warrant enrollment for the pupil.

9. Are otherwise permitted to enroll in a program of distance education provided by the governing body of a charter school if the governing body of the charter school determines that special circumstances warrant enrollment for the pupil.

Sec. 39. 1. The department shall prepare and publish a list of courses of distance education that satisfy the requirements of sections 35 to 49, inclusive, of this act, and all other applicable statutes and regulations. If an application to provide a program of distance education is approved pursuant to section 40 of this act, the department shall automatically include on the list each course of study included within that program if the course of study had not been approved pursuant to this section before submission of the application to provide the program.

2. A person or entity that has developed a course of distance education, including, without limitation, a vendor of a course of distance education, the University and Community College System of Nevada or other postsecondary educational institution, a board of trustees of a school district or a governing body of a charter school, may submit an application for inclusion of the course on the list prepared by the department. The department shall approve an application if the application satisfies the requirements of sections 35 to 49, inclusive, of this act and all other applicable statutes and regulations. The department shall provide written notice to the applicant of its approval or denial of the application.

3. If the department denies an application, the department shall include in the written notice the reasons for the denial and the deficiencies of the application. The applicant must be granted 30 days after receipt of the written notice to correct any deficiencies identified in the written notice and resubmit the application. The department shall approve an application that has been resubmitted pursuant to this subsection if the application satisfies the requirements of sections 35 to 49, inclusive, of this act and all other applicable statutes and regulations.

Sec. 40. 1. The board of trustees of a school district or the governing body of a charter school may submit an application to the department to provide a program of distance education.

2. An applicant to provide a program of distance education may seek approval to provide a program that is comprised of one or more courses of distance education included on the list of courses approved by the department pursuant to section 39 of this act or a program that is comprised of one or more courses of distance education which have not been reviewed by the department before submission of the application.

3. An application to provide a program of distance education must include:

(a) All the information prescribed by the state board by regulation.

(b) Except as otherwise provided in this paragraph, proof satisfactory to the department that the program satisfies all applicable statutes and regulations. The proof required by this paragraph shall be deemed satisfied if the program is comprised only of courses of distance education approved by the department pursuant to section 39 of this act before submission of the application.

4. The department shall approve an application submitted pursuant to this section if the application satisfies the requirements of sections 35 to 49, inclusive, of this act and all other applicable statutes and regulations. The department shall provide written notice to the applicant of the department’s approval or denial of the application.

5. If the department denies an application, the department shall include in the written notice the reasons for the denial and the deficiencies of the application. The applicant must be granted 30 days after receipt of the written notice to correct any deficiencies identified in the written notice and resubmit the application. The department shall approve an application that has been resubmitted pursuant to this subsection if the application satisfies the requirements of sections 35 to 49, inclusive, of this act and all other applicable statutes and regulations.

Sec. 41. 1. A program of distance education may include, without limitation, an opportunity for pupils to participate in the program:

(a) For a shorter school day or a longer school day than that regularly provided for in the school district or charter school, as applicable; and

(b) During any part of the calendar year.

2. If a program of distance education is provided for pupils on a full-time basis, the program must include at least as many hours or minutes of instruction as would be provided under a program consisting of 180 days.

Sec. 42. 1. The board of trustees of a school district or the governing body of a charter school that provides a program of distance education shall ensure that, for each course offered through the program, a teacher:

(a) Provides the work assignments to each pupil enrolled in the course that are necessary for the pupil to complete the course; and

(b) Meets or otherwise communicates with the pupil at least once each week during the course to discuss the pupil’s progress.

2. If a course offered through a program of distance education is a core academic subject, as defined in NRS 389.018, the teacher who fulfills the requirements of subsection 1 must be a licensed teacher.

Sec. 43. 1. A pupil may enroll in a program of distance education only if the pupil satisfies the requirements of any other applicable statute and the pupil:

(a) Is participating in a program for pupils at risk of dropping out of high school pursuant to NRS 388.537;

(b) Is participating in a program of independent study pursuant to NRS 389.155;

(c) Is enrolled in a public school that does not offer certain advanced or specialized courses that the pupil desires to attend;

(d) Has a physical or mental condition that would otherwise require an excuse from compulsory attendance pursuant to NRS 392.050;

(e) Is excused from compulsory attendance pursuant to NRS 392.070 and is authorized to enroll in a program of distance education pursuant to that section;

(f) Would otherwise be excused from compulsory attendance pursuant to NRS 392.080;

(g) Is otherwise prohibited from attending public school pursuant to NRS 392.264, 392.4642 to 392.4648, inclusive, 392.466, 392.467 or 392.4675;

(h) Is otherwise permitted to enroll in a program of distance education provided by the board of trustees of a school district if the board of trustees determines that the circumstances warrant enrollment for the pupil; or

(i) Is otherwise permitted to enroll in a program of distance education provided by the governing body of a charter school if the governing body of the charter school determines that the circumstances warrant enrollment for the pupil.

2. In addition to the eligibility for enrollment set forth in subsection 1, a pupil must satisfy the qualifications and conditions for enrollment in a program of distance education adopted by the state board pursuant to section 49 of this act.

3. A child who is exempt from compulsory attendance and receiving equivalent instruction authorized by the state board pursuant to subsection 1 of NRS 392.070 is not eligible to enroll in or otherwise attend a program of distance education, regardless of whether he is otherwise eligible for enrollment pursuant to subsection 1.

4. If a pupil who is prohibited from attending public school pursuant to NRS 392.264 enrolls in a program of distance education, the enrollment and attendance of that pupil must comply with all requirements of NRS 62.405 to 62.485, inclusive, and 392.251 to 392.271, inclusive.

5. If a pupil is eligible for enrollment in a program of distance education pursuant to paragraph (c) of subsection 1, he may enroll in the program of distance education only to take those advanced or specialized courses that are not offered at the public school he otherwise attends.

Sec. 44. 1. Except as otherwise provided in this subsection, before a pupil may enroll full time or part time in a program of distance education that is provided by a school district other than the school district in which the pupil resides, the pupil must obtain the written permission of the board of trustees of the school district in which the pupil resides. Before a pupil who is enrolled in a public school of a school district may enroll part time in a program of distance education that is provided by a charter school, the pupil must obtain the written permission of the board of trustees of the school district in which the pupil resides. A pupil who enrolls full time in a program of distance education that is provided by a charter school is not required to obtain the approval of the board of trustees of the school district in which the pupil resides.

2. If the board of trustees of a school district grants permission pursuant to subsection 1, the board of trustees shall enter into a written agreement with the board of trustees or governing body, as applicable, that provides the program of distance education. A separate agreement must be prepared for each year that a pupil enrolls in a program of distance education. The written agreement must:

(a) Contain a statement prepared by the board of trustees of the school district in which the pupil resides indicating that the board of trustees understands that the superintendent of public instruction will make appropriate adjustments in the apportionments to the school district pursuant to NRS 387.124 to account for the pupil’s enrollment in the program of distance education;

(b) If the pupil plans to enroll part time in the program of distance education, contain a statement prepared by the board of trustees of the school district in which the pupil resides and the board of trustees or governing body that provides the program of distance education setting forth the percentage of the total time services will be provided to the pupil through the program of distance education per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2) of paragraph (a) of subsection 1 of NRS 387.1233 for the school district in which the pupil resides;

(c) Be signed by the board of trustees of the school district in which the pupil resides and the board of trustees or governing body that provides the program of distance education; and

(d) Include any other information required by the state board by regulation.

3. On or before September 1 of each year or January 1 of each year, as applicable for the semester of enrollment, a written agreement must be filed with the superintendent of public instruction for each pupil who is enrolled full time in a program of distance education provided by a school district other than the school district in which the pupil resides. On or before September 1 or January 1 of each year, as applicable for the semester of enrollment, a written agreement must be filed with the superintendent of public instruction for each pupil who is enrolled in a public school of the school district and who is enrolled part time in a program of distance education provided by a charter school. If an agreement is not filed for a pupil who is enrolled in a program of distance education as required by this section, the superintendent of public instruction shall not apportion money for that pupil to the board of trustees of the school district in which the pupil resides, or the board of trustees or governing body that provides the program of distance education.

Sec. 45. 1. If a pupil is enrolled in a charter school, he may enroll full time in a program of distance education only if the charter school in which he is enrolled provides the program of distance education.

2. Before a pupil who is enrolled in a charter school may enroll part time in a program of distance education that is provided by a school district or another charter school, the pupil must obtain the written permission of the governing body of the charter school in which the pupil is enrolled.

3. If the governing body of a charter school grants permission pursuant to subsection 2, the governing body shall enter into a written agreement with the board of trustees or governing body, as applicable, that provides the program of distance education. A separate agreement must be prepared for each year that a pupil enrolls in a program of distance education. The written agreement must:

(a) Contain a statement prepared by the governing body of the charter school in which the pupil is enrolled indicating that the governing body understands that the superintendent of public instruction will make appropriate adjustments in the apportionments to the charter school pursuant to NRS 387.124 to account for the pupil’s enrollment in the program of distance education;

(b) Contain a statement prepared by the governing body of the charter school in which the pupil is enrolled and the board of trustees or governing body that provides the program of distance education setting forth the percentage of the total time services will be provided to the pupil through the program of distance education per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2) of paragraph (a) of subsection 1 of NRS 387.1233 for the school district in which the pupil resides;

(c) Be signed by the governing body of the charter school in which the pupil is enrolled and the board of trustees or governing body that provides the program of distance education; and

(d) Include any other information required by the state board by regulation.

4. On or before September 1 or January 1 of each year, as applicable for the semester of enrollment, a written agreement must be filed with the superintendent of public instruction for each pupil who is enrolled in a charter school and who is enrolled part time in a program of distance education provided by a school district or another charter school. If an agreement is not filed for such a pupil, the superintendent of public instruction shall not apportion money for that pupil to the governing body of the charter school in which the pupil is enrolled, or the board of trustees or governing body that provides the program of distance education.

Sec. 46. 1. If a pupil is enrolled full time in a program of distance education provided by the board of trustees of a school district, the board of trustees that provides the program shall declare for each such pupil one public school within that school district to which the pupil is affiliated. The board of trustees may declare that all the pupils enrolled in the program of distance education are affiliated with one public school within the school district, or it may declare individual public schools for the pupils enrolled in the program. Upon the declared affiliation, the pupil shall be deemed enrolled in that public school for purposes of all the applicable requirements, statutes, regulations, rules and policies of that public school and school district, including, without limitation:

(a) Graduation requirements;

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

(d) Discipline of pupils.

2. A pupil who is enrolled full time in a program of distance education provided by a charter school shall be deemed enrolled in the charter school. All the applicable requirements, including, without limitation, statutes, regulations, rules and policies of that charter school apply to such a pupil, including, without limitation:

(a) Graduation requirements;

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

(d) Discipline of pupils.

3. If a pupil is enrolled part time in a program of distance education, all the applicable requirements, statutes, regulations, rules and policies of the public school of the school district in which the pupil is otherwise enrolled or the charter school in which the pupil is otherwise enrolled apply to such a pupil, including, without limitation:

(a) Graduation requirements;

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

(d) Discipline of pupils.

Sec. 47. 1. If the board of trustees of a school district provides a program of distance education, the board of trustees shall ensure that the persons who operate the program on a day-to-day basis comply with and carry out all applicable requirements, statutes, regulations, rules and policies of the school district, including, without limitation:

(a) Graduation requirements;

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

(d) Discipline of pupils.

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

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

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

(1) Graduation requirements;

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

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

(4) Discipline of pupils.

Sec. 48. On or before November 1 of each year, the board of trustees of a school district or the governing body of a charter school that provides a program of distance education shall submit to the department and to the legislative bureau of educational accountability and program evaluation a written report that contains a summary of the program for the immediately preceding school year which includes, without limitation:

1. A description of the manner in which the program was carried out;

2. The expenditures made for the program;

3. The number of pupils who were enrolled full time in the program and the number of pupils who were enrolled part time in the program;

4. If available, a description of the reasons why pupils enrolled in the program;

5. The number of pupils who dropped out of the program, if any;

6. A description of any disciplinary measures taken against pupils who were enrolled in the program; and

7. An analysis of the academic achievement and performance of the pupils who were enrolled in the program before and after the pupils participated in the program.

Sec. 49. 1. The state board shall adopt regulations that prescribe:

(a) The process for submission of an application by a person or entity for inclusion of a course of distance education on the list prepared by the department pursuant to section 39 of this act and the contents of the application;

(b) The process for submission of an application by the board of trustees of a school district or the governing body of a charter school to provide a program of distance education and the contents of the application;

(c) The qualifications and conditions for enrollment that a pupil must satisfy to enroll in a program of distance education, consistent with section 43 of this act;

(d) A method for reporting to the department the number of pupils who are enrolled in a program of distance education and the attendance of those pupils;

(e) The requirements for assessing the achievement of pupils who are enrolled in a program of distance education, which must include, without limitation, the administration of the achievement and proficiency examinations required pursuant to NRS 389.015 and 389.550; and

(f) A written description of the process pursuant to which the state board may revoke its approval for the operation of a program of distance education.

2. The state board may adopt regulations as it determines are necessary to carry out the provisions of sections 35 to 49, inclusive, of this act.

Sec. 50. NRS 388.090 is hereby amended to read as follows:

388.090 1. Except as otherwise permitted pursuant to this section, boards of trustees of school districts shall schedule and provide a minimum of 180 days of free school in the districts under their charge.

2. The superintendent of public instruction may, upon application by a board of trustees, authorize a reduction of not more than 15 school days in a particular district to establish or maintain a 12-month school program or a program involving alternative scheduling, if the board of trustees demonstrates that the proposed schedule for the program provides for a greater number of minutes of instruction than would be provided under a program consisting of 180 school days. Before authorizing a reduction in the number of required school days pursuant to this subsection, the superintendent of public instruction must find that the proposed schedule will be used to alleviate problems associated with a growth in enrollment or overcrowding, or to establish and maintain a program of alternative schooling[.] , including, without limitation, a program of distance education provided by the board of trustees pursuant to sections 35 to 49, inclusive, of this act.

3. The superintendent of public instruction may, upon application by a board of trustees, authorize the addition of minutes of instruction to any scheduled day of free school if days of free school are lost because of any interscholastic activity. Not more than 5 days of free school so lost may be rescheduled in this manner.

4. Each school district shall schedule at least 3 contingent days of school in addition to the number of days required by this section, which must be used if a natural disaster, inclement weather or an accident necessitates the closing of a majority of the facilities within the district.

5. If more than 3 days of free school are lost because a natural disaster, inclement weather or an accident necessitates the closing of a majority of the facilities within a school district, the superintendent of public instruction, upon application by the school district, may permit the additional days lost to be counted as school days in session. The application must be submitted in the manner prescribed by the superintendent of public instruction.

6. The state board [of education] shall adopt regulations providing procedures for changing schedules of instruction to be used if a natural disaster, inclement weather or an accident necessitates the closing of a particular school within a school district.

Sec. 51. NRS 388.537 is hereby amended to read as follows:

388.537 1. The board of trustees of a school district may, subject to the approval of the state board, operate an alternative program for the education of pupils at risk of dropping out of high school, including pupils who:

(a) Because of extenuating circumstances, such as their being pregnant, parents, chronically ill or self-supporting, are not able to attend the classes of instruction regularly provided in high school;

(b) Are deficient in the amount of academic credit necessary to graduate with pupils their same age;

(d) Require instruction on a more personal basis than that regularly provided in high school.

2. An alternative program may include:

(a) A shorter school day, and an opportunity for pupils to attend a longer school day, than that regularly provided in high school.

(b) An opportunity for pupils to attend classes of instruction during any part of the calendar year.

(d) An opportunity for pupils to obtain academic credit through experience gained at work or while engaged in other activities.

(e) An opportunity for pupils to satisfy either:

(1) The requirements for a regular high school diploma; or

(2) The requirements for a high school diploma for adults.

(f) The provision of child care for the children of pupils.

(g) The transportation of pupils to and from classes of instruction.

(h) The temporary placement of pupils for independent study, if there are extenuating circumstances which prevent those pupils from attending the alternative program on a daily basis.

3. The board of trustees of a school district may operate an alternative program pursuant to this section through a program of distance education pursuant to sections 35 to 49, inclusive, of this act.

Sec. 52. NRS 388.700 is hereby amended to read as follows:

388.700 1. Except as otherwise provided in subsections 2, 3 and 6, after the last day of the first month of the school year, the ratio in each school district of pupils per class in kindergarten and grades 1, 2 and 3 per licensed teacher designated to teach those classes full time must not exceed 15 to 1 in classes where core curriculum is taught. In determining this ratio, all licensed educational personnel who teach kindergarten or grade 1, 2 or 3 must be counted except teachers of art, music, physical education or special education, counselors, librarians, administrators, deans and specialists.

2. A school district may, within the limits of any plan adopted pursuant to NRS 388.720, assign a pupil whose enrollment in a grade occurs after the last day of the first month of the school year to any existing class regardless of the number of pupils in the class.

3. The state board may grant to a school district a variance from the limitation on the number of pupils per class set forth in subsection 1 for good cause, including the lack of available financial support specifically set aside for the reduction of pupil-teacher ratios.

4. The state board shall, on or before February 1 of each odd-numbered year, report to the legislature on:

(a) Each variance granted by it during the preceding biennium, including the specific justification for the variance.

(b) The data reported to it by the various school districts pursuant to subsection 2 of NRS 388.710, including an explanation of that data, and the current pupil-teacher ratios per class in kindergarten and grades 1, 2 and 3.

5. The department shall, on or before November 15 of each year, report to the chief of the budget division of the department of administration and the fiscal analysis division of the legislative counsel bureau:

(a) The number of teachers employed;

(b) The number of teachers employed in order to attain the ratio required by subsection 1;

(d) The number of teachers assigned to teach in the same classroom with another teacher or in any other arrangement other than one teacher assigned to one classroom of pupils,

during the current school year in kindergarten and grades 1, 2 and 3 for each school district.

6. The provisions of this section do not apply to a charter school[.] or to a program of distance education provided pursuant to sections 35 to 49, inclusive, of this act.

Sec. 53. NRS 389.017 is hereby amended to read as follows:

389.017 1. The state board shall [prescribe] adopt regulations requiring that each board of trustees of a school district and each governing body of a charter school submit to the superintendent of public instruction and the department, in the form and manner prescribed by the superintendent, the results of achievement and proficiency examinations given in the 4th, 8th, 10th and 11th grades to public school pupils of the district and charter schools. The state board shall not include in the regulations any provision which would violate the confidentiality of the test scores of any individual pupil.

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

(a) The average score, as defined by the department, of pupils who took the examinations under regular testing conditions; and

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

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

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

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

(c) Are enrolled in an alternative program for the education of pupils at risk of dropping out of high school[;] , including, without limitation, a program of distance education that is provided to pupils who are at risk of dropping out of high school pursuant to sections 35 to 49, inclusive, of this act; or

(d) Are detained in a:

(1) Youth training center;

(2) Youth center;

(3) Juvenile forestry camp;

(4) Detention home;

(5) Youth camp;

(6) Juvenile correctional institution; or

(7) Correctional institution.

The scores reported pursuant to this subsection must not be included in the average scores reported pursuant to subsection 2.

4. Not later than 10 days after the department receives the results of the achievement and proficiency examinations, the department shall transmit a copy of the results of the examinations administered pursuant to NRS 389.015 to the legislative bureau of educational accountability and program evaluation in a manner that does not violate the confidentiality of the test scores of any individual pupil.

5. On or before November 15 of each year, each school district and each charter school shall report to the department the following information for each examination administered in the public schools in the school district or charter school:

(a) The examination administered;

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

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

On or before December 15 of each year, the department shall transmit to the budget division of the department of administration and the fiscal analysis division of the legislative counsel bureau the information submitted to the department pursuant to this subsection.

6. The superintendent of schools of each school district and the governing body of each charter school shall certify that the number of pupils who took the examinations required pursuant to NRS 389.015 is equal to the number of pupils who are enrolled in each school in the school district or in the charter school who are required to take the examinations except for those pupils who are exempt from taking the examinations. A pupil may be exempt from taking the examinations if:

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

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

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

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

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

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

Sec. 54. NRS 389.155 is hereby amended to read as follows:

389.155 1. The state board shall, by regulation, establish a program pursuant to which a pupil enrolled full time in high school may complete any required or elective course by independent study outside of the normal classroom setting. A program of independent study provided pursuant to this section may be offered through a program of distance education pursuant to sections 35 to 49, inclusive, of this act.

2. The regulations must require that:

(a) The teacher of the course assign to the pupil the work assignments necessary to complete the course; and

(b) The pupil and teacher meet or otherwise communicate with each other at least once each week during the course to discuss the pupil’s progress.

3. The board of trustees in each school district may, in accordance with the regulations adopted pursuant to subsections 1 and 2, provide for independent study by pupils enrolled full time in high schools in its district. A board of trustees that chooses to allow such study may provide that:

(a) The pupils participating in the independent study be given instruction individually or in a group.

(b) The independent study be offered during the regular school day.

Sec. 55. NRS 389.560 is hereby amended to read as follows:

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

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

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

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

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

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

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

(d) Are detained in a:

(1) Youth training center;

(2) Youth center;

(3) Juvenile forestry camp;

(4) Detention home;

(5) Youth camp;

(6) Juvenile correctional institution; or

(7) Correctional institution.

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

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

(a) The examination administered;

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

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

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

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

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

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

Sec. 56. NRS 391.170 is hereby amended to read as follows:

391.170 1. Except as otherwise provided in subsection 2, a teacher or other employee for whom a license is required is not entitled to receive any portion of public money for schools as compensation for services rendered unless:

(a) He is legally employed by the board of trustees of the school district or the governing body of the charter school in which he is teaching or performing other educational functions.

(b) He has a license authorizing him to teach or perform other educational functions at the level and in the field for which he is employed, issued in accordance with law and in full force at the time the services are rendered.

2. The provisions of subsection 1 do not prohibit the payment of public money to teachers or other employees who are employed by a charter school for whom a license is not required pursuant to the provisions of NRS 386.590 . [and 386.595.]

Sec. 57. NRS 391.31965 is hereby amended to read as follows:

391.31965 Except as otherwise provided in this section, if a postprobationary employee of a school district or charter school in this state:

1. Voluntarily leaves his employment; and

2. Is, within 5 years after the date on which he left that employment, employed by any school district or charter school in this state in a position that is comparable to the position in which he attained his postprobationary status,

he must be allowed to continue as a postprobationary employee and must not be required to serve the probationary period required by subsection 1 of NRS 391.3197. This section does not apply to a postprobationary employee who voluntarily leaves his employment during the pendency of a proceeding for the suspension, demotion, dismissal or refusal to reemploy the postprobationary employee.

Sec. 58. NRS 392.010 is hereby amended to read as follows:

392.010 Except as to the attendance of a pupil pursuant to NRS 392.015 or sections 35 to 49, inclusive, of this act, or a pupil who is ineligible for attendance pursuant to NRS 392.4675 and except as otherwise provided in NRS 392.264 and 392.268:

1. The board of trustees of any school district may, with the approval of the superintendent of public instruction:

(a) Admit to the school or schools of the school district any pupil or pupils living in an adjoining school district within this state or in an adjoining state when the school district of residence in the adjoining state adjoins the receiving Nevada school district; or

(b) Pay tuition for pupils residing in the school district but who attend school in an adjoining school district within this state or in an adjoining state when the receiving district in the adjoining state adjoins the school district of Nevada residence.

2. With the approval of the superintendent of public instruction, the board of trustees of the school district in which the pupil or pupils reside and the board of trustees of the school district in which the pupil or pupils attend school shall enter into an agreement providing for the payment of such tuition as may be agreed upon, but transportation costs must be paid by the board of trustees of the school district in which the pupil or pupils reside:

(a) If any are incurred in transporting a pupil or pupils to an adjoining school district within the state; and

(b) If any are incurred in transporting a pupil or pupils to an adjoining state, as provided by the agreement.

3. In addition to the provisions for the payment of tuition and transportation costs for pupils admitted to an adjoining school district as provided in subsection 2, the agreement may contain provisions for the payment of reasonable amounts of money to defray the cost of operation, maintenance and depreciation of capital improvements which can be allocated to such pupils.

Sec. 59. NRS 392.035 is hereby amended to read as follows:

392.035 1. In determining the mobility of pupils in a school, for any purpose, the department shall divide the sum of the following numbers by the cumulative enrollment in the school:

(a) The number of late entries or transfers into a school from another school, school district or state, after the beginning of the school year;

(b) The number of pupils reentering the school after having withdrawn from the same school; and

2. To determine the cumulative enrollment of the school pursuant to subsection 1, the department shall add the total number of pupils enrolled in programs of instruction in the school who are included in the count for apportionment purposes pursuant to paragraphs (a) [, (b), (c), (e) and (f)] to (d), inclusive, (f) and (g) of subsection 1 of NRS 387.123 and the number of pupils included in paragraphs (a) and (b) of subsection 1.

3. The department shall develop and distribute to the county school districts a form upon which the information necessary to the formula may be submitted by the individual schools.

Sec. 60. NRS 392.040 is hereby amended to read as follows:

392.040 1. Except as otherwise provided by law, each parent, custodial parent, guardian or other person in the State of Nevada having control or charge of any child between the ages of 7 and 17 years shall send the child to a public school during all the time the public school is in session in the school district in which the child resides.

2. A child who is 5 years of age on or before September 30 of a school year may be admitted to kindergarten at the beginning of that school year, and his enrollment must be counted for purposes of apportionment. If a child is not 5 years of age on or before September 30 of a school year, the child must not be admitted to kindergarten.

3. Except as otherwise provided in subsection 4, a child who is 6 years of age on or before September 30 of a school year must:

(a) If he has not completed kindergarten, be admitted to kindergarten at the beginning of that school year; or

(b) If he has completed kindergarten, be admitted to the first grade at the beginning of that school year,

and his enrollment must be counted for purposes of apportionment. If a child is not 6 years of age on or before September 30 of a school year, the child must not be admitted to the first grade until the beginning of the school year following his sixth birthday.

4. The parents, custodial parent, guardian or other person within the State of Nevada having control or charge of a child who is 6 years of age on or before September 30 of a school year may elect for the child not to attend kindergarten or the first grade during that year. The parents, custodial parent, guardian or other person who makes such an election shall file with the board of trustees of the appropriate school district a waiver in a form prescribed by the board.

5. Whenever a child who is 6 years of age is enrolled in a public school, each parent, custodial parent, guardian or other person in the State of Nevada having control or charge of the child shall send him to the public school during all the time the school is in session. This requirement for attendance does not apply to any child under the age of 7 years who has not yet been enrolled or has been formally withdrawn from enrollment in public school.

6. A child who is 7 years of age on or before September 30 of a school year must:

(a) If he has completed kindergarten and the first grade, be admitted to the second grade.

(b) If he has completed kindergarten, be admitted to the first grade.

(c) If the parents, custodial parent, guardian or other person in the State of Nevada having control or charge of the child waived the child’s attendance from kindergarten pursuant to subsection 4, undergo an assessment by the district pursuant to subsection 7 to determine whether the child is prepared developmentally to be admitted to the first grade. If the district determines that the child is prepared developmentally, he must be admitted to the first grade. If the district determines that the child is not so prepared, he must be admitted to kindergarten.

The enrollment of any child pursuant to this subsection must be counted for apportionment purposes.

7. Each school district shall prepare and administer before the beginning of each school year a developmental screening test to a child:

(a) Who is 7 years of age on or before September 30 of the next school year; and

(b) Whose parents waived his attendance from kindergarten pursuant to subsection 4,

to determine whether the child is prepared developmentally to be admitted to the first grade. The results of the test must be made available to the parents, custodial parent, guardian or other person within the State of Nevada having control or charge of the child.

8. A child who becomes a resident of this state after completing kindergarten or beginning first grade in another state in accordance with the laws of that state may be admitted to the grade he was attending or would be attending had he remained a resident of the other state regardless of his age, unless the board of trustees of the school district determines that the requirements of this section are being deliberately circumvented.

9. As used in this section, “kindergarten” includes:

(a) A kindergarten established by the board of trustees of a school district pursuant to NRS 388.060; [and]

(b) A kindergarten established by the governing body of a charter school; and

Sec. 61. NRS 288.060 is hereby amended to read as follows:

288.060 “Local government employer” means any political subdivision of this state or any public or quasi-public corporation organized under the laws of this state and includes, without limitation, counties, cities, unincorporated towns, school districts, charter schools, hospital districts, irrigation districts and other special districts.

Sec. 62. Chapter 361 of NRS is hereby amended by adding thereto a new section to read as follows:

1. All real and personal property that is leased or rented to a charter school is hereby deemed to be used for an educational purpose and is exempt from taxation. If the property is used partly for the lease or rental to a charter school and partly for other purposes, only the portion of the property that is used for the lease or rental to a charter school is exempt pursuant to this subsection.

2. To qualify for an exemption pursuant to subsection 1, the property owner must provide the county assessor with a copy of the lease or rental agreement indicating that:

(a) The property is leased or rented to the charter school; and

(b) The amount of payment required by the charter school pursuant to the agreement is reduced in an amount which is at least equal to the amount of the tax that would have been imposed if the property were not exempt pursuant to subsection 1.

Sec. 63. NRS 361.065 is hereby amended to read as follows:

361.065 All lots, buildings and other school property owned by any legally created school district or charter school within the state and devoted to public school purposes are exempt from taxation.

Sec. 64. Section 60 of chapter 606, Statutes of Nevada 1999, at page 3324, is hereby amended to read as follows:

Sec. 60. 1. This section and sections 56 and 57 of this act become effective upon passage and approval.

2. Sections 1 to 12, inclusive, 13 to 16, inclusive, 18 to 24, inclusive, 26 to 45, inclusive, 47 to 54, inclusive, and 58 and 59 of this act become effective on July 1, 1999.

3. Sections 17, 25 and 46 of this act become effective at 12:01 a.m. on July 1, 1999.

4. [~~Section 12.5 of this act becomes effective on July 1, 2001.~~

~~5.]~~ Section 55 of this act becomes effective on July 1, [~~2003.]~~ 2006.

Sec. 64.5. Section 1 of Senate Bill No. 243 of this session is hereby amended to read as follows:

Section 1. NRS 386.595 is hereby amended to read as follows:

386.595 1. All employees of a charter school shall be deemed public employees.

2. Except as otherwise provided in this subsection, the provisions of the collective bargaining agreement entered into by the board of trustees of the school district in which the charter school is located apply to the terms and conditions of employment of employees of the charter school who are on a leave of absence from the school district pursuant to subsection 5, including, without limitation, any provisions relating to representation by the employee organization that is a party to the collective bargaining agreement of the school district in a grievance proceeding or other dispute arising out of the agreement. The provisions of the collective bargaining agreement apply to each employee for the first 3 years that he is on a leave of absence from the school district. After the first 3 years that the employee is on a leave of absence:

(a) If he is subsequently reassigned by the school district pursuant to subsection 5, he is covered by the collective bargaining agreement of the school district.

(b) If he continues his employment with the charter school, he is covered by the collective bargaining agreement of the charter school, if applicable.

3. Except as otherwise provided in subsection 2, the governing body of a charter school may make all employment decisions with regard to its employees pursuant to NRS 391.311 to 391.3197, inclusive, unless a collective bargaining agreement entered into by the governing body pursuant to chapter 288 of NRS contains separate provisions relating to the discipline of licensed employees of a school.

4. [If] Except as otherwise provided in this subsection, if the written charter of a charter school is revoked[,] or if a charter school ceases to operate as a charter school, the employees of the charter school must be reassigned to employment within the school district in accordance with the applicable collective bargaining agreement. A school district is not required to reassign an employee of a charter school pursuant to this subsection if the employee:

(a) Was not granted a leave of absence by the school district to teach at the charter school pursuant to subsection 5; or

(b) Was granted a leave of absence by the school district and did not submit a written request to return to employment with the school district in accordance with subsection 5.

6. An employee who is on a leave of absence from a school district pursuant to this section shall contribute to and be eligible for all benefits for which he would otherwise be entitled, including, without limitation, participation in the public employees’ retirement system and accrual of time for the purposes of leave and retirement. The time during which such an employee is on leave of absence and employed in a charter school does not count toward the acquisition of permanent status with the school district.

7. Upon the return of a teacher to employment in the school district, he is entitled to the same level of retirement, salary and any other benefits to which he would otherwise be entitled if he had not taken a leave of absence to teach in a charter school.

8. An employee of a charter school who is not on a leave of absence from a school district is eligible for all benefits for which he would be eligible for employment in a public school, including, without limitation, participation in the public employees’ retirement system.

9. For all employees of a charter school:

10. If the board of trustees of a school district in which a charter school is located manages a plan of group insurance for its employees, the governing body of the charter school may negotiate with the board of trustees to participate in the same plan of group insurance that the board of trustees offers to its employees. If the employees of the charter school participate in the plan of group insurance managed by the board of trustees, the governing body of the charter school shall:

(a) Ensure that the premiums for that insurance are paid to the board of trustees; and

(b) Provide, upon the request of the board of trustees, all information that is necessary for the board of trustees to provide the group insurance to the employees of the charter school.

Sec. 65. 1. There is hereby appropriated from the state general fund to the legislative fund the sum of $10,000 for use by the legislative bureau of educational accountability and program evaluation to hire a consultant to conduct case study evaluations of charter schools within this state.

2. The consultant hired by the bureau shall conduct on-site evaluations of not more than eight charter schools within this state selected by the bureau for evaluation. On or before February 1, 2003, the consultant shall submit a written report to the bureau that includes for each charter school which was evaluated:

(a) A description of the charter school;

(b) A description of the academic achievement and progress of pupils who are enrolled in the charter school;

(d) An overview of the curriculum for each grade level taught at the charter school;

(e) A description of the system of governance of the charter school, including, without limitation, an explanation of the process by which decisions are made;

(f) A description of the financial plan for the charter school;

(g) An identification and evaluation of the accomplishments of the charter school;

(h) An identification and evaluation of the factors that hindered the progress of the charter school in achieving the academic or educational results set forth in its application to form a charter school;

(i) A summary of the practices of the charter school that offer an example for other charter schools within this state; and

(j) Any recommendations for legislation based upon the results of the evaluation.

3. The bureau shall submit a copy of the written evaluation, including any recommendations for legislation, to the 72nd session of the Nevada legislature.

Sec. 66. If the membership of the governing body of a charter school that is in operation before July 1, 2002, does not comply with the amendatory provisions of section 18 of this act, the charter school shall make appropriate changes to the membership of the governing body and otherwise take appropriate action to ensure that the governing body of the charter school complies with the amendatory provisions of section 18 of this act on or before July 1, 2002.

Sec. 67. Notwithstanding the provisions of subsection 1 of NRS 288.180 to the contrary, an employee organization established pursuant to chapter 288 of NRS which desires to negotiate with the governing body of a charter school:

1. Concerning a collective bargaining agreement intended to become effective during the 2001-2002 school year; and

2. With respect to a subject of negotiation that requires the budgeting of money,

must apply to the governing body for recognition on or before September 1, 2001, and give the notice required by subsection 1 of NRS 288.180 on or before October 1, 2001.

Sec. 68. If a person accepts an offer of employment from a charter school before the effective date of section 24 of this act and takes a leave of absence from the school district in which the charter school is located, the 3‑year period provided in the amendatory provisions of subsection 2 of section 24 of this act begins to run after the effective date of that section, upon the renewal of any applicable collective bargaining agreement entered into by the board of trustees of the school district.

Sec. 69. The state board of education shall consider sponsorship of charter schools in accordance with the amendatory provisions of section 15 of this act for schools that will commence operation during or after the 2002‑2003 school year.

Sec. 70. 1. On or before December 1, 2001, the state board of education shall submit a draft of the regulations required by section 49 of this act to the legislative committee on education for the review and comment of the committee.

2. On or before February 1, 2002, the legislative committee on education shall review the draft regulations and provide comment to the state board.

3. On or before April 1, 2002, the state board shall adopt final regulations required by section 49 of this act.

Sec. 71. The department of education shall accept applications to provide programs of distance education in accordance with section 40 of this act for programs that will commence operation with the 2002-2003 school year. If any deadlines contained within the regulations adopted by the state board pursuant to section 49 of this act prohibit a school district or charter school from submitting an application for the 2002-2003 school year, the department shall grant a shorter period of time for the school district or charter school to submit an application for the 2002-2003 school year, notwithstanding the provisions of those regulations.

Sec. 72. If a school district or charter school has provided before June 1, 2001, a program that includes distance education in accordance with all applicable statutes and regulations, the school district or charter school may continue to offer that program for the 2001-2002 school year if the school district or charter school provides written notice of the existence of the program to the department of education on or before July 1, 2001. After the 2001-2002 school year, the school district or charter school must comply with sections 35 to 49, inclusive, of this act, if it desires to continue the program. The provisions of this section apply to a charter school regardless of whether the terms of the written charter of the charter school authorize the charter school to provide a program that includes distance education.

Sec. 73. The department of education shall provide the financial support necessary for the school districts and charter schools to incorporate charter schools into the statewide automated system of information concerning pupils pursuant to the amendatory provisions of sections 27 and 28 of this act.

Sec. 74. The amendatory provisions of this act do not apply to offenses committed before July 1, 2001.

Sec. 75. Section 12.5 of chapter 606, Statutes of Nevada 1999, at page 3292, is hereby repealed.

Sec. 76. 1. This section and sections 24, 64, 67 and 68 of this act become effective upon passage and approval.

2. Sections 3 to 12, inclusive, 14, 16 to 19, inclusive, 21, 22, 23, 27, 28, 56, 60 to 63, inclusive, 65, 66 and 69 to 75, inclusive, of this act become effective on July 1, 2001.

3. Sections 1, 2, 13, 15, 20, 25, 26, 29, 30 to 55, inclusive, 58 and 59 of this act become effective on July 1, 2002.

4. Sections 57 and 64.5 of this act become effective at 12:01 a.m. on July 1, 2001.

TEXT OF REPEALED SECTION

Section 12.5 of chapter 606, Statutes of Nevada 1999:

Sec. 12.5. NRS 386.510 is hereby amended to read as follows:

386.510 1. Except as otherwise provided in subsection 2:

(a) In a county whose population is more than 400,000, [two] four charter schools may be formed per every 75,000 pupils who are enrolled in public schools in the county school district.

(b) In a county whose population is more than 100,000 but less than 400,000, two four charter schools may be formed.

2. The limitations set forth in subsection 1 do not apply to charter schools that are dedicated to providing educational programs and opportunities for pupils who are at risk.”.

Amend the title of the bill to read as follows:

“AN ACT relating to education; prohibiting an existing public school or home school from converting to a charter school; prohibiting a charter school from operating for profit; creating the fund for charter schools; providing for the sponsorship of charter schools by the state board of education; revising the collective bargaining provisions applicable to charter school employees who are on a leave of absence from a school district; revising provisions governing the formation, operation and personnel of charter schools; authorizing the boards of trustees of school districts and the governing bodies of charter schools to provide programs of distance education for certain pupils; requiring the state board to adopt regulations prescribing the requirements of programs of distance education; revising the provisions governing the apportionments of money from the state distributive school account to provide for the payment of money for pupils who are enrolled in programs of distance education; providing that certain property of charter schools and certain property leased or rented to charter schools is exempt from taxation; extending the prospective removal of the limit on the number of charter schools that may be formed; providing a penalty; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Revises provisions governing charter schools and authorizes programs of distance education. (BDR 34‑382)”.

Senator Raggio moved the adoption of the amendment.

Remarks by Senator Raggio.

Amendment adopted.

Bill ordered reprinted, re-engrossed and to the General File.

Senate Bill No. 372.

Bill read third time.

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

Amendment No. 1210.

Amend sec. 8, page 2, line 48, after “electricity;” by inserting “and”.

Amend sec. 8, page 3, by deleting lines 1 and 2.

Amend sec. 8, page 3, line 3, by deleting “(c)” and inserting “(b)”.

Amend sec. 8, page 3, by deleting lines 13 through 15 and inserting:

“2. A solar thermal energy system that reduces the consumption of electricity.”.

Amend sec. 10, page 4, line 3, by deleting “10” and inserting “5”.

Amend sec. 10, page 4, by deleting lines 5 through 11 and inserting:

“(b) If the provider acquires electricity from a renewable energy system pursuant to a renewable energy contract with another party:

(1) The term of the renewable energy contract must be not less than 10 years, unless the other party agrees to a renewable energy contract with a shorter term; and

(2) The terms and conditions of the renewable energy contract must be just and reasonable, as determined by the commission. If the provider is a public utility and the commission approves the terms and conditions of the renewable energy contract between the provider and the other party, the renewable energy contract and its terms and conditions shall be deemed to be a prudent investment and the provider may recover all just and reasonable costs associated with the renewable energy contract.”.

Amend sec. 10, page 4, by deleting lines 26 through 36 and inserting:

“6. If, for 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 pursuant to one or more renewable energy contracts. If the commission determines that, for a calendar year, there is not or will not be a sufficient supply of electricity made available to the provider pursuant to renewable energy contracts with just and reasonable terms and conditions, 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.

7. The commission shall adopt regulations for the determination of just and reasonable terms and conditions for the renewable energy contracts that a provider of electric service must enter into to comply with its portfolio standard.

8. As used in this section:

(a) “Renewable energy contract” means a contract to acquire electricity from one or more renewable energy systems owned, operated or controlled by other parties.

(b) “Terms and conditions” includes, without limitation, the price that a provider of electric service must pay to acquire electricity pursuant to a renewable energy contract.”.

Amend the bill as a whole by renumbering sec. 17 as sec. 18 and adding a new section designated sec. 17, following sec. 16, to read as follows:

“Sec. 17. Not later than 180 days after the effective date of this act, the public utilities commission of Nevada shall adopt the regulations required by section 10 of this act.”.

Senator Townsend moved the adoption of the amendment.

Remarks by Senator Townsend.

Amendment adopted.

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

Senate Bill No. 391.

Bill read third time.

The following amendment was proposed by the Committee on Finance:

Amendment No. 1191.

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

Amend sec. 2, page 2, by deleting lines 24 through 30 and inserting:

“Section 1. 1. There is hereby appropriated from the state general fund to the Western Interstate Commission for Higher Education’s fund for student loans created pursuant to NRS 397.063:

For the fiscal year 2001-2002 $25,000

For the fiscal year 2002-2003 $50,000

2. The three commissioners from the State of Nevada, acting jointly, shall use the money appropriated pursuant to subsection 1 solely to provide scholarships to 10 students who are certified to study to practice in the profession of teaching or nursing.

3. The scholarships provided pursuant to subsection 2 must be used by the student to attend an out-of-state university or community college.

4. As a condition for receipt of a scholarship, a student must agree to practice for at least 1 year in an underserved area of this state in the profession in which he is certified to study. The terms and conditions of the scholarship, including, without limitation, the terms and conditions for repayment of the scholarship, must be set forth in a contract between the student and the grantor.

5. If a student who receives a scholarship does not practice for at least 1 year in an underserved area of this state in the profession in which he was certified to study, the student shall repay the scholarship subject to the terms and conditions prescribed pursuant to subsection 6.

6. The three commissioners from the State of Nevada, acting jointly:

(a) Shall adopt regulations that prescribe the terms and conditions for repayment of a scholarship if a student fails to practice for at least 1 year in an underserved area of this state in the profession in which he was certified to study.

(b) May adopt such regulations as are necessary to carry out the provisions of this section.

7. Any balance of the appropriations made by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal years and reverts to the state general fund as soon as all payments of money committed have been made.”.

Amend sec. 3, page 2, by deleting lines 31 through 34 and inserting:

“Sec. 2. This act becomes effective on July 1, 2001.”.

Amend the title of the bill to read as follows:

“AN ACT relating to education; making an appropriation to the Western Interstate Commission for Higher Education’s fund for student loans to provide scholarships to certain students; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Makes appropriation to Western Interstate Commission for Higher Education’s fund for student loans to provide scholarships to certain students. (BDR S‑282)”.

Senator Raggio moved the adoption of the amendment.

Remarks by Senator Raggio.

Amendment adopted.

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

Assembly Bill No. 508.

Bill read third time.

Roll call on Assembly Bill No. 508:

Yeas—21.

Nays—None.

Assembly Bill No. 508 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 521.

Bill read third time.

Roll call on Assembly Bill No. 521:

Yeas—21.

Nays—None.

Assembly Bill No. 521 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 567.

Bill read third time.

Roll call on Assembly Bill No. 567:

Yeas—21.

Nays—None.

Assembly Bill No. 567 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 596.

Bill read third time.

Roll call on Assembly Bill No. 596:

Yeas—21.

Nays—None.

Assembly Bill No. 596 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Joint Resolution No. 10.

Resolution read third time.

Conflict of interest declared by Senator O'Connell.

Roll call on Assembly Joint Resolution No. 10:

Yeas—20.

Nays—None.

Not Voting—O'Connell.

Assembly Joint Resolution No. 10 having received a constitutional majority, Madam President declared it passed.

Resolution ordered transmitted to the Assembly.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Townsend moved that Assembly Bill No. 661 be taken from the General File and placed on the General File for the next legislative day.

Motion carried.

UNFINISHED BUSINESS

Appointment of Conference Committees

Madam President appointed Senators Care, O'Donnell and Porter as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 202.

Madam President appointed Senators O'Connell, Townsend and Shaffer as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 320.

Madam President appointed Senators O'Donnell, Neal and Porter as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 489.

Madam President appointed Senators James, O'Donnell and Shaffer as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 219.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Senate Bill No. 116, consisting of the undersigned members, has met, and reports that:

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

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. 4, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend the bill as a whole by deleting sections 6 through 13 and renumbering sec. 14 as sec. 6.

Amend the title of the bill by deleting the third through seventh lines and inserting: “clients who have disabilities; and providing other matters properly”.

Mark Amodei

Randolph J. Townsend Mark A. Manendo

Bernice Mathews Dawn Gibbons

Senate Conference Committee Assembly Conference Committee

Senator Amodei moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 116.

Remarks by Senator Amodei.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Senate Bill No. 418, consisting of the undersigned members, has met, and reports that:

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

Mark Amodei

Maggie Carlton Joseph E. Dini

Ann O'Connell Lynn C. Hettrick

Senate Conference Committee Assembly Conference Committee

Senator Amodei moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 418.

Remarks by Senator Amodei.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Assembly Bill No. 195, consisting of the undersigned members, has met, and reports that:

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

Mark Amodei Sheila Leslie

Randolph J. Townsend Debbie Smith

Michael Schneider Sandra Tiffany

Senate Conference Committee Assembly Conference Committee

Senator Amodei moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 195.

Remarks by Senator Amodei.

Motion carried.

Appointment of Conference Committees

Madam President appointed Senators Washington, Wiener and Mathews as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 195.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Assembly Bill No. 555, consisting of the undersigned members, has met, and reports that:

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

Raymond D. Rawson Bonnie L. Parnell

William R. O'Donnell Dawn Gibbons

Bernice Mathews Debbie Smith

Senate Conference Committee Assembly Conference Committee

Senator Rawson moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 555.

Remarks by Senator Rawson.

Motion carried by a constitutional majority.

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

Motion carried.

Senate in recess at 4:52 p.m.

SENATE IN SESSION

At 5:12 p.m.

President Hunt presiding.

Quorum present.

MESSAGES FROM THE GOVERNOR

State of Nevada

Executive Chamber

June 2, 2001

The Honorable William J. Raggio, Senate Majority Floor Leader, Nevada State Senate, Legislative Building, 401 S. Carson Street, Carson City, NV 89701

Re: Return of Vetoed Bill

Dear Majority Leader Raggio:

I am returning Senate Bill No. 415 to the 71st Session of the Nevada Legislature accompanied by my letter of objection.

Sincerely,

Kenny C. Guinn

Governor of Nevada

MESSAGES FROM THE ASSEMBLY

I have the honor to inform your honorable body that the Assembly on this day passed Assembly Bill No. 670.

Also, I have the honor to inform your honorable body that the Assembly on this day concurred in the Senate Amendment No. 1179 to Assembly Bill No. 250.

Also, I have the honor to inform your honorable body that the Assembly on this day receded from its action on Senate Bill No. 261, Assembly Amendment No. 1063.

Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Leslie, Carpenter and Anderson as a first Conference Committee concerning Assembly Bill No. 370.

Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Buckley, Gibbons and Leslie as a first Conference Committee concerning Assembly Bill No. 447.

Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Anderson, Nolan and Leslie as a first Conference Committee concerning Assembly Bill No. 466.

Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Anderson, Bache and Beers as a first Conference Committee concerning Assembly Bill No. 483.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 660.

Patricia R. Williams

Assistant Chief Clerk of the Assembly

MOTIONS, RESOLUTIONS AND NOTICES

Senator Raggio moved that vetoed Senate Bill No. 415 of the 71st session of the Nevada Legislature, which has just been returned by the Governor, be made a Special Order of Business for June 3, 2001 at 11:00 a.m.

Remarks by Senator Raggio.

Motion carried.

INTRODUCTION, FIRST READING AND REFERENCE

Assembly Bill No. 174.

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

Motion carried.

Assembly Bill No. 515.

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

Motion carried.

Assembly Bill No. 670.

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

Motion carried.

SECOND READING AND AMENDMENT

Assembly Bill No. 324.

Bill read second time.

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

Amendment No. 1209.

Amend the bill as a whole by deleting sections 1 through 99 and the text of repealed sections and adding new sections designated sections 1 through 19, following the enacting clause, to read as follows:

“Section 1. NRS 645A.173 is hereby amended to read as follows:

645A.173 [At the time that]

1. If an escrow for the sale of real property is established, the holder of the escrow shall , on the date of establishment of the escrow, record in writing the number and the date of expiration of the:

[1.] (a) License issued pursuant to chapter 645 of NRS; or

[2.] (b) Certificate of cooperation issued pursuant to NRS 645.605, of any real estate broker, broker-salesman or salesman who will be paid compensation from money held in the escrow for performing the services of a real estate broker, broker-salesman or salesman in the transaction that is the subject of the escrow. The holder of the escrow is not required to verify independently the validity of the number of the license or certificate.

2. If an escrow for the sale of real property is established and the real property is or will be secured by a mortgage or deed of trust, the holder of the escrow shall, on the date of establishment of the escrow, record in writing the number and the date of expiration of the license issued pursuant to chapter 645B or 645E of NRS of any mortgage broker or mortgage company associated with the mortgage or deed of trust. The holder of the escrow is not required to verify independently the validity of the number of the license.

Sec. 2. Chapter 645B of NRS is hereby amended by adding thereto the provisions set forth as sections 3 and 4 of this act.

Sec. 3. “Private investor” means:

1. An investor who is a natural person and who provides his own money for investment in a loan secured by a lien on real property; and

2. Two or more investors who are relatives and who jointly provide their own money for investment in a loan secured by a lien on real property, unless the investors are acting on behalf of a partnership, a corporation or some other separate legal entity.

Sec. 4. 1. In addition to the requirements set forth in NRS 645B.050, to renew a license:

(a) If the licensee is a natural person, the licensee must submit to the commissioner satisfactory proof that the licensee attended at least 5 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

(b) If the licensee is not a natural person, the licensee must submit to the commissioner satisfactory proof that each natural person who supervises the daily business of the licensee attended at least 5 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

2. As used in this section, “certified course of continuing education” means a course of continuing education which relates to the mortgage industry or mortgage transactions and which is:

(a) Certified by the National Association of Mortgage Brokers or any successor in interest to that organization; or

(b) Certified in a manner established by the commissioner, if the National Association of Mortgage Brokers or any successor in interest to that organization ceases to exist.

Sec. 5. NRS 645B.010 is hereby amended to read as follows:

645B.010 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 645B.0103 to 645B.0135, inclusive, and section 3 of this act have the meanings ascribed to them in those sections.

Sec. 6. NRS 645B.020 is hereby amended to read as follows:

645B.020 1. A person who wishes to be licensed as a mortgage broker must file a written application for a license with the office of the commissioner and pay the fee required pursuant to NRS 645B.050. An application for a license as a mortgage broker must:

(a) Be verified.

(b) State the name, residence address and business address of the applicant and the location of each principal office and branch office at which the mortgage broker will conduct business within this state.

(d) List the name, residence address and business address of each person who will:

(1) If the applicant is not a natural person, have an interest in the mortgage broker as a principal, partner, officer, director or trustee, specifying the capacity and title of each such person.

(2) Be associated with or employed by the mortgage broker as a mortgage agent.

(e) If the applicant is a natural person, include the social security number of the applicant.

(f) Include a general business plan and a [manual for policies and procedures for the mortgage broker and his mortgage agents that includes, without limitation, the underwriting standards, restrictions and] description of the policies and procedures that the mortgage broker and his mortgage agents will follow to arrange and service loans and to conduct business pursuant to this chapter.

(g) State the length of time the applicant has been engaged in the business of a broker.

(h) Include a financial statement of the applicant and, if applicable, satisfactory proof that the applicant will be able to maintain continuously the net worth required pursuant to NRS 645B.115.

(i) Include any other information required pursuant to the regulations adopted by the commissioner or an order of the commissioner.

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

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

(a) The application complies with the requirements of this chapter;

(b) The applicant submits the statement required pursuant to NRS 645B.023, if the applicant is required to do so; and

(c) The applicant and each general partner, officer or director of the applicant, if the applicant is a partnership, corporation or unincorporated association:

(1) Has a good reputation for honesty, trustworthiness and integrity and displays competence to transact the business of a mortgage broker in a manner which safeguards the interests of the general public. The applicant must submit satisfactory proof of these qualifications to the commissioner.

(2) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.

(3) Has not made a false statement of material fact on his application.

(4) Has not had a license that was issued pursuant to the provisions of this chapter or chapter 645E of NRS suspended or revoked within the 10 years immediately preceding the date of his application.

(5) Has not had a license that was issued in any other state, district or territory of the United States or any foreign country suspended or revoked within the 10 years immediately preceding the date of his application.

(6) Has not violated any provision of this chapter or chapter 645E of NRS, a regulation adopted pursuant thereto or an order of the commissioner.

Sec. 7. NRS 645B.050 is hereby amended to read as follows:

645B.050 1. A license issued pursuant to this chapter expires each year on June 30, unless it is renewed. To renew a license, the licensee must submit to the commissioner on or before June 30 of each year:

(a) An application for renewal;

(b) The fee required to renew the license pursuant to this section; [and]

(d) The information required pursuant to section 4 of this act.

2. If the licensee fails to submit any item required pursuant to subsection 1 to the commissioner on or before June 30 of any year, the license is canceled. The commissioner may reinstate a canceled license if the licensee submits to the commissioner:

(a) An application for renewal;

(b) The fee required to renew the license pursuant to this section;

(d) A]

(d) The information required pursuant to section 4 of this act; and

(e) Except as otherwise provided in this section, a reinstatement fee of $200.

3. Except as otherwise provided in NRS 645B.016, a certificate of exemption issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a certificate of exemption, a person must submit to the commissioner on or before December 31 of each year:

(a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter; and

(b) The fee required to renew the certificate of exemption.

4. If the person fails to submit any item required pursuant to subsection 3 to the commissioner on or before December 31 of any year, the certificate of exemption is canceled. Except as otherwise provided in NRS 645B.016, the commissioner may reinstate a canceled certificate of exemption if the person submits to the commissioner:

(a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter;

(b) The fee required to renew the certificate of exemption; and

5. [A] Except as otherwise provided in this section, a person must pay the following fees to apply for, to be issued or to renew a license as a mortgage broker pursuant to this chapter:

(a) To file an original application or a license, $1,500 for the principal office and $40 for each branch office. The person must also pay such additional expenses incurred in the process of investigation as the commissioner deems necessary. All money received by the commissioner pursuant to this paragraph must be placed in the investigative account created by NRS 232.545.

(b) To be issued a license, $1,000 for the principal office and $60 for each branch office.

6. [A] Except as otherwise provided in this section, a person must pay the following fees to apply for or to renew a certificate of exemption pursuant to this chapter:

(a) To file an application for a certificate of exemption, $200.

(b) To renew a certificate of exemption, $100.

7. To be issued a duplicate copy of any license or certificate of exemption, a person must make a satisfactory showing of its loss and pay a fee of $10.

8. Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the state treasury for credit to the state general fund.

9. The commissioner may, by regulation, increase any fee set forth in this section if the commissioner determines that such an increase is necessary for the commissioner to carry out his duties pursuant to this chapter. The amount of any increase in a fee pursuant to this subsection must not exceed the amount determined to be necessary for the commissioner to carry out his duties pursuant to this chapter.

Sec. 8. NRS 645B.060 is hereby amended to read as follows:

645B.060 1. Subject to the administrative control of the director of the department of business and industry, the commissioner shall exercise general supervision and control over mortgage brokers doing business in this state.

2. In addition to the other duties imposed upon him by law, the commissioner shall:

(a) Adopt any regulations [prescribing standards for determining whether a mortgage broker has maintained adequate supervision of a mortgage agent pursuant to this chapter.

(b) Adopt any other regulations] that are necessary to carry out the provisions of this chapter, except as to loan brokerage fees.

[(c)] (b) Conduct such investigations as may be necessary to determine whether any person has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the commissioner.

[(d)] (c) Conduct an annual examination of each mortgage broker doing business in this state.

[(e)] The annual examination must include, without limitation, a formal exit review with the mortgage broker. The commissioner shall adopt regulations prescribing:

(1) Standards for determining the rating of each mortgage broker based upon the results of the annual examination; and

(2) Procedures for resolving any objections made by the mortgage broker to the results of the annual examination. The results of the annual examination may not be opened to public inspection pursuant to NRS 645B.090 until any objections made by the mortgage broker have been decided by the commissioner.

(d) Conduct such other examinations, periodic or special audits, investigations and hearings as may be necessary and proper for the efficient administration of the laws of this state regarding mortgage brokers and mortgage agents. The commissioner shall adopt regulations specifying the general guidelines that will be followed when a periodic or special audit of a mortgage broker is conducted pursuant to this chapter.

[(f)] (e) Classify as confidential certain records and information obtained by the division when those matters are obtained from a governmental agency upon the express condition that they remain confidential. This paragraph does not limit examination by the legislative auditor.

[(g)] (f) Conduct such examinations and investigations as are necessary to ensure that mortgage brokers meet the requirements of this chapter for obtaining a license, both at the time of the application for a license and thereafter on a continuing basis.

3. For each special audit, investigation or examination, a mortgage broker shall pay a fee based on the rate established pursuant to NRS 658.101.

Sec. 9. NRS 645B.085 is hereby amended to read as follows:

645B.085 1. Except as otherwise provided in this section, not later than [60] 90 days after the last day of each fiscal year for a mortgage broker, the mortgage broker shall submit to the commissioner a financial statement that:

(a) Is dated not earlier than the last day of the fiscal year; and

(b) Has been prepared from the books and records of the mortgage broker by an independent public accountant who holds a permit to engage in the practice of public accounting in this state that has not been revoked or suspended.

2. The commissioner may grant a reasonable extension for the submission of a financial statement pursuant to this section if a mortgage broker requests such an extension before the date on which the financial statement is due.

3. If a mortgage broker maintains any accounts described in subsection 1 of NRS 645B.175, the financial statement submitted pursuant to this section must be audited. If a mortgage broker maintains any accounts described in subsection 4 of NRS 645B.175, those accounts must be audited. The public accountant who prepares the report of an audit shall submit a copy of the report to the commissioner at the same time that he submits the report to the mortgage broker.

4. The commissioner shall adopt regulations prescribing the scope of an audit conducted pursuant to subsection 3.

Sec. 10. NRS 645B.185 is hereby amended to read as follows:

645B.185 1. A mortgage broker or mortgage agent shall not accept money from [an] a private investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property unless:

(a) The private investor and the mortgage broker or mortgage agent sign and date a disclosure form that complies with the provisions of this section; and

(b) The mortgage broker or mortgage agent gives the private investor the original disclosure form that has been signed and dated.

2. [An] A private investor and a mortgage broker or mortgage agent must sign and date a separate disclosure form pursuant to subsection 1 for each loan in which the private investor invests his money. A mortgage broker or mortgage agent shall not act as the attorney in fact or the agent of [an] a private investor with respect to the signing or dating of any disclosure form.

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

4. [An] A private investor and a mortgage broker or mortgage agent may not agree to alter or waive the provisions of this section by contract or other agreement. Any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.

5. A mortgage broker shall retain a copy of each disclosure form that is signed and dated pursuant to subsection 1 for the period that is prescribed in the regulations adopted by the commissioner.

6. The standard provisions for each such disclosure form must include, without limitation, statements:

(a) Explaining the risks of investing through the mortgage broker, including, without limitation:

(1) The possibility that the debtor may default on the loan;

(2) The nature of the losses that may result through foreclosure;

(3) The fact that payments of principal and interest are not guaranteed and that the private investor may lose the entire amount of principal that he has invested;

(4) The fact that the mortgage broker is not a depository financial institution and that the investment is not insured by any depository insurance and is not otherwise insured or guaranteed by the federal or state government; and

(5) Any other information required pursuant to the regulations adopted by the commissioner; and

(b) Disclosing to the private investor the following information if the information is known or, in light of all the surrounding facts and circumstances, reasonably should be known to the mortgage broker:

(1) Whether the real property that will secure the loan is encumbered by any other liens and, if so, the priority of each such lien, the amount of debt secured by each such lien and the current status of that debt, including, without limitation, whether the debt is being paid or is in default;

(2) Whether the mortgage broker or any general partner, officer, director or mortgage agent of the mortgage broker has any direct or indirect interest in the debtor;

(3) Whether any disciplinary action has been taken by the commissioner against the mortgage broker or any general partner, officer or director of the mortgage broker within the immediately preceding 12 months, and the nature of any such disciplinary action;

(4) Whether the mortgage broker or any general partner, officer or director of the mortgage broker has been convicted within the immediately preceding 12 months for violating any law, ordinance or regulation that involves fraud, misrepresentation or a deceitful, fraudulent or dishonest business practice; and

(5) Any other information required pursuant to the regulations adopted by the commissioner.

7. Whether or not a mortgage broker is required to disclose any information to private investors through a disclosure form that complies with the provisions of this section, the commissioner may order the mortgage broker to disclose to private investors and other investors or to the general public any information concerning the mortgage broker, any general partner, officer, director or mortgage agent of the mortgage broker or any loan in which the mortgage broker is or has been involved, if the commissioner, in his judgment, believes that the information:

(a) Would be of material interest to a reasonable investor who is deciding whether to invest money with the mortgage broker; or

(b) Is necessary to protect the welfare of the public.

8. In carrying out the provisions of subsection 7, the commissioner may, without limitation, order a mortgage broker to include statements of disclosure prescribed by the commissioner:

(a) In the disclosure form that must be given to private investors pursuant to subsection 1;

(b) In additional disclosure forms that must be given to private investors and other investors before or after they have invested money through the mortgage broker; or

9. The commissioner:

(a) Shall adopt regulations prescribing the period for which a mortgage broker must retain a copy of each disclosure form that is given to private investors; and

(b) May adopt any other regulations that are necessary to carry out the provisions of this section, including, without limitation, regulations specifying the size of print and any required formatting or typesetting that a mortgage broker must use in any form that is given to private investors.

Sec. 11. NRS 645B.189 is hereby amended to read as follows:

645B.189 1. [Each] If, in carrying on his business, a mortgage broker uses an advertisement that is designed, intended or reasonably likely to solicit money from private investors, the mortgage broker shall include in each such advertisement [that the mortgage broker uses in carrying on his business:

(a) A] a statement of disclosure in substantially the following form:

Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured.

[(b) Any other]

2. A mortgage broker shall include in each advertisement that the mortgage broker uses in carrying on his business any statements of disclosure required pursuant to the regulations adopted by the commissioner or required pursuant to an order of the commissioner entered in accordance with subsections 7 and 8 of NRS 645B.185.

[2.] 3. Each mortgage broker shall submit any proposed advertisement that the mortgage broker intends to use in carrying on his business to the commissioner for approval.

[3.] 4. In addition to the requirements set forth in this chapter, each advertisement that a mortgage broker uses in carrying on his business must comply with the requirements of:

(a) NRS 598.0903 to 598.0999, inclusive, concerning deceptive trade practices; and

(b) Any applicable federal statute or regulation concerning deceptive advertising and the advertising of interest rates.

[4.] 5. If a mortgage broker violates any provision of NRS 598.0903 to 598.0999, inclusive, concerning deceptive trade practices or any federal statute or regulation concerning deceptive advertising or the advertising of interest rates, in addition to any sanction or penalty imposed by state or federal law upon the mortgage broker for the violation, the commissioner may take any disciplinary action set forth in subsection 2 of NRS 645B.670 against the mortgage broker.

[5.] 6. The commissioner may adopt any regulations that are necessary to carry out the provisions of this section.

Sec. 12. NRS 645B.330 is hereby amended to read as follows:

645B.330 1. A mortgage broker or mortgage agent shall not engage in any act or transaction on behalf of [an] a private investor pursuant to a power of attorney unless:

(a) The power of attorney is executed for the sole purpose of providing services for [loans] not more than one specific loan in which the private investor owns a beneficial interest; and

(b) The provisions of the power of attorney:

(1) Have been approved by the commissioner;

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

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

(4) Expressly provide that the power of attorney is effective only for [a period of not more than 6 months unless, before the date on which the period expires, the mortgage broker obtains written approval from the investor to extend the power of attorney for an additional period of not more than 6 months. The mortgage broker may, on a continuing basis, obtain written approval from the investor to extend the power of attorney for one or more consecutive periods of not more than 6 months each, except that the investor may execute only one written approval for an extension during each such 6-month period.] the term of the specific loan unless the mortgage broker obtains written approval from the private investor to extend the term of the power of attorney to provide services for not more than one other loan and the written approval:

(I) Identifies the loan for which the power of attorney was executed; and

(II) Identifies the loan for which the written approval is being given.

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

3. [A] Except as otherwise provided in subsection 4, a power of attorney which designates a mortgage broker or mortgage agent as the attorney in fact or the agent of [an] a private investor and which violates the provisions of this section is void and must not be given effect with regard to any act or transaction that occurs on or after October 1, 1999, whether or not the power of attorney is or has been executed by the private investor before, on or after October 1, 1999.

4. The provisions of subsection 3 do not apply to a power of attorney that designates a mortgage broker or mortgage agent as the attorney in fact or the agent of a private investor if the power of attorney:

(a) Was executed before July 1, 2001; and

(b) Complied with the provisions of this section that were in effect on October 1, 1999.

5. The provisions of this section do not limit the right of [an] a private investor to include provisions in a power of attorney that are more restrictive than the provisions set forth in subsection 1.

Sec. 13. NRS 645B.450 is hereby amended to read as follows:

645B.450 1. A person shall not act as or provide any of the services of a mortgage agent or otherwise engage in, carry on or hold himself out as engaging in or carrying on the activities of a mortgage agent if the person:

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

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

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

3. A mortgage broker shall register with the division each person who will be associated with or employed by the mortgage broker as a mortgage agent. A mortgage broker shall register each such person with the division when the person begins his association or employment with the mortgage broker and annually thereafter. A registration expires 12 months after its effective date.

4. To register a person as a mortgage agent, a mortgage broker must:

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

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

(2) Is signed by the person;

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

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

(b) Pay]

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

[4.] (c) For each annual registration, submit to the division satisfactory proof that the person attended at least 5 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the registration expires.

5. Not later than the date on which the mortgage broker submits the information for annual registration required by subsection 4, the person being registered shall pay an annual registration fee of $125. If the person does not pay the annual registration fee, the person shall be deemed to be unregistered for the purposes of this chapter.

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

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

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

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

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

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

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

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

8. As used in this section, “certified course of continuing education” has the meaning ascribed to it in section 4 of this act.

Sec. 14. NRS 645B.460 is hereby amended to read as follows:

645B.460 1. A mortgage broker shall[:

1. Teach his mortgage agents the fundamentals of mortgage lending and the ethics of the profession; and

2. ~~Supervise]~~ exercise reasonable supervision over the activities of his mortgage agents . [and the operation of his business.] Such reasonable supervision must include, as appropriate:

(a) The establishment of written or oral policies and procedures for his mortgage agents; and

(b) The establishment of a system to review, oversee and inspect the activities of his mortgage agents, including, without limitation:

(1) Transactions handled by his mortgage agents pursuant to this chapter;

(2) Communications between his mortgage agents and a party to such a transaction;

(3) Documents prepared by his mortgage agents that may have a material effect upon the rights or obligations of a party to such a transaction; and

(4) The handling by his mortgage agents of any fee, deposit or money paid to the mortgage broker or his mortgage agents or held in trust by the mortgage broker or his mortgage agents pursuant to this chapter.

2. The commissioner shall allow a mortgage broker to take into consideration the total number of mortgage agents associated with or employed by the mortgage broker when the mortgage broker determines the form and extent of the policies and procedures for those mortgage agents and the system to review, oversee and inspect the activities of those mortgage agents.

3. The commissioner may adopt regulations prescribing standards for determining whether a mortgage broker has exercised reasonable supervision over the activities of a mortgage agent pursuant to this section.

Sec. 15. NRS 645B.600 is hereby amended to read as follows:

645B.600 1. A person may[, in accordance with the regulations adopted pursuant to subsection 2,] file with the commissioner a complaint [with the commissioner,] alleging that another person has violated a provision of this chapter, a regulation adopted pursuant to this chapter or an order of the commissioner.

2. [The commissioner shall adopt regulations prescribing:

(a) The form that such a complaint must take;

(b) The information that must be included in such a complaint; and

(a) Be in writing;

(b) Be signed by the person filing the complaint or the authorized representative of the person filing the complaint;

(c) Contain an address and a telephone number for the person filing the complaint or the authorized representative of the person filing the complaint;

(d) Describe the nature of the alleged violation in as much detail as possible;

(e) Include as exhibits copies of all documentation supporting the complaint; and

(f) Include any other information or supporting materials required by the regulations adopted by the commissioner or by an order of the commissioner.

Sec. 16. NRS 645B.670 is hereby amended to read as follows:

645B.670 Except as otherwise provided in NRS 645B.690:

1. For each violation committed by an applicant, whether or not he is issued a license, the commissioner may impose upon the applicant an administrative fine of not more than $10,000, if the applicant:

(a) Has knowingly made or caused to be made to the commissioner any false representation of material fact;

(b) Has suppressed or withheld from the commissioner any information which the applicant possesses and which, if submitted by him, would have rendered the applicant ineligible to be licensed pursuant to the provisions of this chapter; or

(c) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the commissioner in completing and filing his application for a license or during the course of the investigation of his application for a license.

2. For each violation committed by a licensee, the commissioner may impose upon the licensee an administrative fine of not more than $10,000, may suspend, revoke or place conditions upon his license, or may do both, if the licensee, whether or not acting as such:

(a) Is insolvent;

(b) Is grossly negligent or incompetent in performing any act for which he is required to be licensed pursuant to the provisions of this chapter;

(c) Does not conduct his business in accordance with law or has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the commissioner;

(d) Is in such financial condition that he cannot continue in business with safety to his customers;

(e) Has made a material misrepresentation in connection with any transaction governed by this chapter;

(f) Has suppressed or withheld from a client any material facts, data or other information relating to any transaction governed by the provisions of this chapter which the licensee knew or, by the exercise of reasonable diligence, should have known;

(g) Has knowingly made or caused to be made to the commissioner any false representation of material fact or has suppressed or withheld from the commissioner any information which the licensee possesses and which, if submitted by him, would have rendered the licensee ineligible to be licensed pursuant to the provisions of this chapter;

(h) Has failed to account to persons interested for all money received for a trust account;

(i) Has refused to permit an examination by the commissioner of his books and affairs or has refused or failed, within a reasonable time, to furnish any information or make any report that may be required by the commissioner pursuant to the provisions of this chapter or a regulation adopted pursuant to this chapter;

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

(k) Has refused or failed to pay, within a reasonable time, any fees, assessments, costs or expenses that the licensee is required to pay pursuant to this chapter or a regulation adopted pursuant to this chapter;

(l) Has failed to satisfy a claim made by a client which has been reduced to judgment;

(m) Has failed to account for or to remit any money of a client within a reasonable time after a request for an accounting or remittal;

(n) Has commingled the money or other property of a client with his own or has converted the money or property of others to his own use;

(o) Has engaged in any other conduct constituting a deceitful, fraudulent or dishonest business practice;

(p) Has repeatedly violated the policies and procedures of the mortgage broker;

(q) Has failed to [maintain adequate] exercise reasonable supervision over the activities of a mortgage agent [;] as required by NRS 645B.460;

(r) Has instructed a mortgage agent to commit an act that would be cause for the revocation of the license of the mortgage broker, whether or not the mortgage agent commits the act;

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

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

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

(t) Has not conducted verifiable business as a mortgage broker for 12 consecutive months, except in the case of a new applicant. The commissioner shall determine whether a mortgage broker is conducting business by examining the monthly reports of activity submitted by the licensee or by conducting an examination of the licensee.

Sec. 17. NRS 645B.700 is hereby amended to read as follows:

645B.700 1. Except as otherwise provided in subsection 2, for each violation that may be committed by a person pursuant to this chapter or the regulations adopted pursuant to this chapter, the commissioner [shall] may adopt regulations:

(a) Categorizing the violation as a major violation or a minor violation; and

(b) Specifying the disciplinary action that will be taken by the commissioner pursuant to this chapter against a person who commits:

(1) A major violation. The disciplinary action taken by the commissioner for a major violation [must] may include, without limitation, suspension or revocation of the person’s license.

(2) More than two minor violations. The commissioner may establish graduated sanctions for a person who commits more than two minor violations based upon the number, the frequency and the severity of the minor violations and whether the person previously has committed any major violations.

2. The provisions of this section do not apply to a violation for which the commissioner is required to take disciplinary action in accordance with NRS 645B.690.

Sec. 18. Section 139 of chapter 646, Statutes of Nevada 1999, at page 3816, is hereby amended to read as follows:

Sec. 139. 1. This section and section 130.5 of this act become effective upon passage and approval for the purpose of adopting any regulations necessary to carry out the provisions of this act, and on September 30, 1999, for all other purposes.

2. Sections 1 to 101, inclusive, 103, 105 to 117, inclusive, 119 to 130, inclusive, and 131 to 138, inclusive, of this act become effective upon passage and approval for the purpose of adopting any regulations necessary to carry out the provisions of this act, and on October 1, 1999, for all other purposes.

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

4. Sections 15 and 33 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

(a) Have failed to comply with a subpoena or warrant relating to a procedure to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or

(b) Are in arrears in the payment for the support of one or more children,

are repealed by the Congress of the United States.

[5. Section 78.5 of this act expires by limitation on October 1, 2001.]

Sec. 19. This act becomes effective on July 1, 2001.”.

Amend the title of the bill to read as follows:

“AN ACT relating to financial institutions; revising various provisions regarding the regulation of mortgage brokers and mortgage agents; requiring the holder of certain escrows to obtain certain information from mortgage brokers and mortgage companies; requiring mortgage brokers and mortgage agents to attend certain courses of continuing education; authorizing the commissioner of financial institutions to adopt regulations to increase certain fees for mortgage brokers in certain circumstances; revising provisions relating to certain advertisements and disclosures by mortgage brokers; revising provisions concerning certain powers of attorney; requiring mortgage brokers to register their mortgage agents with the division of financial institutions of the department of business and industry on an annual basis; requiring mortgage agents to pay an annual registration fee; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Revises various provisions regarding regulation of mortgage brokers and mortgage agents. (BDR 54‑491)”.

Senator Townsend moved the adoption of the amendment.

Remarks by Senator Townsend.

Conflict of interest declared by Senator O'Connell.

Amendment adopted.

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

UNFINISHED BUSINESS

Consideration of Assembly Amendments

Senate Bill No. 531.

The following Assembly amendments were read:

Amendment No. 823.

Amend section 1, page 2, between lines 7 and 8, by inserting:

“4. No regulation adopted pursuant to subsection 3 may deny a person the opportunity to obtain or retain employment because of his membership or nonmembership in a labor organization.”.

Amend sec. 20, page 8, line 41, by deleting “benefits.” and inserting: “benefits, and the right to join or not join a labor organization.”.

Amendment No. 991.

Amend the bill as a whole by adding a new section designated sec. 19.5, following sec. 19, to read as follows:

“Sec. 19.5. Sections 2 and 3 of Senate Bill No. 561 of this session are hereby amended to read as follows:

Sec. 2. NRS 353A.020 is hereby amended to read as follows:

353A.020 1. The director, in consultation with the committee and legislative auditor, shall adopt a uniform system of internal accounting and administrative control for agencies. The elements of the system must include, without limitation:

(a) A plan of organization which provides for a segregation of duties appropriate to safeguard the assets of the agency;

(b) A plan which limits access to assets of the agency to persons who need the assets to perform their assigned duties;

(c) Procedures for authorizations and recordkeeping which effectively control accounting of assets, liabilities, revenues and expenses;

(d) A system of practices to be followed in the performance of the duties and functions of each agency; and

(e) An effective system of internal review.

2. The director, in consultation with the committee and legislative auditor, may modify the system whenever he considers it necessary.

3. Each agency shall develop written procedures to carry out the system of internal accounting and administrative control adopted pursuant to this section.

4. For the purposes of this section, “agency” does not include:

(a) A board [or commission] created by the provisions of chapters 623 to [625,] 625A, inclusive, 628 , 630 to 640A, inclusive, 641 to 644, inclusive, 654 and 656 of NRS.

(b) The University and Community College System of Nevada.

(d) The housing division of the department of business and industry.

(e) The Colorado River commission of Nevada.

Sec. 3. NRS 353A.025 is hereby amended to read as follows:

353A.025 1. The head of each agency shall periodically review the agency’s system of internal accounting and administrative control to determine whether it is in compliance with the uniform system of internal accounting and administrative control for agencies adopted pursuant to subsection 1 of NRS 353A.020.

2. On or before July 1 of each even-numbered year, the head of each agency shall report to the director whether the agency’s system of internal accounting and administrative control is in compliance with the uniform system adopted pursuant to subsection 1 of NRS 353A.020. The reports must be made available for inspection by the members of the legislature.

3. For the purposes of this section, “agency” does not include:

(a) A board [or commission] created by the provisions of chapters 623 to [625,] 625A, inclusive, 628 , 630 to 640A, inclusive, 641 to 644, inclusive, 654 and 656 of NRS.

(b) The University and Community College System of Nevada.

(d) The housing division of the department of business and industry.

(e) The Colorado River commission of Nevada.

4. The director shall, on or before the first Monday in February of each odd-numbered year, submit a report on the status of internal accounting and administrative controls in agencies to the:

(a) Director of the legislative counsel bureau for transmittal to the:

(1) Senate standing committee on finance; and

(2) Assembly standing committee on ways and means;

(b) Governor; and

5. The report submitted by the director pursuant to subsection 4 must include, without limitation:

(a) The identification of each agency that has not complied with the requirements of subsections 1 and 2;

(b) The identification of each agency that does not have an effective method for reviewing its system of internal accounting and administrative control; and

(c) The identification of each agency that has weaknesses in its system of internal accounting and administrative control, and the extent and types of such weaknesses.”.

Amendment No. 1168.

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

Amend sec. 2, page 2, lines 12 and 13, by deleting: “and section 1 of this act,”.

Amend sec. 8, page 4, by deleting lines 7 through 11 and inserting:

“(a) Is in the unclassified service of the state [.

3. Except as otherwise provided in NRS 284.143, the director shall] ;

(b) Serves at the pleasure of the commission; and

Amend sec. 10, page 4, by deleting lines 33 through 39 and inserting:

“(a) Is in the unclassified service of the state [.

3. Except as otherwise provided in NRS 284.143, the deputy director shall] ; and

(b) Shall devote his entire time and attention to the business of his”.

Amend sec. 11, pages 4 and 5, by deleting lines 45 through 49 on page 4 and lines 1 and 2 on page 5, and inserting: “out his functions and duties. The assistants and employees have such duties as may be prescribed by the executive director.”.

Amend the bill as a whole by deleting sections 14 and 15 and renumbering sections 16 through 19.5 as sections 13 through 17.

Amend the bill as a whole by deleting sec. 20 and renumbering sections 21 and 22 as sections 18 and 19.

Amend the title of the bill to read as follows:

“AN ACT relating to the Colorado River commission; changing the name of the commission to the Colorado River commission of Nevada; changing the titles of certain officers of the commission; removing the option of the executive director of the commission and the deputy executive director of the commission to engage, under certain circumstances, in a business or occupation or hold another office for profit that is in addition to their employment with the commission; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY¾Revises provisions concerning Colorado River commission. (BDR 48‑354)”.

Senator Rhoads moved that the Senate concur in the Assembly amendments to Senate Bill No. 531.

Remarks by Senator Rhoads.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Appointment of Conference Committees

Madam President reappointed Senators James, McGinness and Wiener as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 466.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Senate Bill No. 303, consisting of the undersigned members, has met, and reports that:

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

Mark Amodei Genie Ohrenschall

Lawrence E. Jacobsen Debbie Smith

Raymond C. Shaffer Dennis Nolan

Senate Conference Committee Assembly Conference Committee

Senator Amodei moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 303.

Remarks by Senator Amodei.

Motion carried.

Appointment of Conference Committees

Madam President appointed Senators O'Donnell, Washington and Carlton as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 303.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Assembly Bill No. 48, consisting of the undersigned members, has met, and reports that:

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

Mark Amodei Chris Giunchigliani

Raymond C. Shaffer David R. Parks

Dean A. Rhoads Bob Beers

Senate Conference Committee Assembly Conference Committee

Senator Amodei moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 48.

Remarks by Senator Amodei.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Assembly Bill No. 620, consisting of the undersigned members, has met, and reports that:

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

Raymond C. Shaffer David E. Goldwater

Dean A. Rhoads Joseph E. Dini

Maggie Carlton David E. Humke

Senate Conference Committee Assembly Conference Committee

Senator Shaffer moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 620.

Remarks by Senator Shaffer.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Assembly Bill No. 660, consisting of the undersigned members, has met, and reports that:

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

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. 2, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend section 1, page 2, by deleting lines 12 through 19 and inserting:

“5. A board of trustees of a school district may ask the superintendent of public instruction to require a person licensed by the superintendent of public instruction pursuant to NRS 391.033 who has taken a leave of absence from employment authorized by the school district to submit a set of his fingerprints as a condition of return to or continued employment with the school district if the board of trustees has probable cause to believe that the person has committed a felony or an offense involving moral turpitude during the period of his leave of absence.”.

Valerie Wiener Bonnie L. Parnell

Mark Amodei Kathy Von Tobel

Maurice E. Washington Douglas A. Bache

Senate Conference Committee Assembly Conference Committee

Senator Wiener moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 660.

Remarks by Senator Wiener.

Motion carried by a constitutional majority.

Madam President announced that if there were no objections, the Senate would recess subject to the call of the Chair.

Senate in recess at 2:21 p.m.

SENATE IN SESSION

At 5:29 p.m.

President pro Tempore Jacobsen presiding.

Quorum present.

GENERAL FILE AND THIRD READING

Senate Bill No. 292.

Bill read third time.

Roll call on Senate Bill No. 292:

Yeas—21.

Nays—None.

Senate Bill No. 292 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 372.

Bill read third time.

Remarks by Senators Neal, Townsend and Wiener.

Conflict of interest declared by Senator Raggio.

Roll call on Senate Bill No. 372:

Yeas—20.

Nays—None.

Not Voting—Raggio.

Senate Bill No. 372 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 391.

Bill read third time.

Roll call on Senate Bill No. 391:

Yeas—21.

Nays—None.

Senate Bill No. 391 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Senate Bill No. 583.

Bill read third time.

Roll call on Senate Bill No. 583:

Yeas—21.

Nays—None.

Senate Bill No. 583 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 612.

Bill read third time.

Roll call on Assembly Bill No. 612:

Yeas—21.

Nays—None.

Assembly Bill No. 612 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Joint Resolution No. 9.

Resolution read third time.

Roll call on Assembly Joint Resolution No. 9:

Yeas—21.

Nays—None.

Assembly Joint Resolution No. 9 having received a constitutional majority, Mr. President pro Tempore declared it passed, as amended.

Resolution ordered transmitted to the Assembly.

REPORTS OF COMMITTEES

Mr. President pro Tempore:

Your Committee on Commerce and Labor, to which was referred Assembly Bill No. 670, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Randolph J. Townsend, Chairman

UNFINISHED BUSINESS

Signing of Bills and Resolutions

There being no objections, the President pro Tempore and Secretary signed Senate Bills Nos. 33, 139, 194, 207, 232, 321, 356, 402, 431, 432, 436, 437, 438, 439, 440, 441, 448, 450, 455, 456, 457, 461, 478; Senate Concurrent Resolutions Nos. 51, 53; Assembly Bills Nos. 115, 503, 506, 514, 516, 523, 525, 526, 554, 618, 630; Assembly Joint Resolutions Nos. 3, 5, 15; Assembly Joint Resolution No. 4 of the 70th Session.

remarks from the floor

Senator Rawson requested that his remarks be entered in the Journal.

I would like to read a letter into the Journal concerning Assembly Bill No. 555 from the Clark County School District. It is as follows:

“The Clark County School District is in full support of A.B. 555. It is a critical part of our effort to have a licensed teacher in every classroom in the fall.

We will, of course, comply with all provisions of the law. In addition, we will not refuse to reemploy a retired employee who is eligible for reemployment solely on the basis of the date of his retirement.”

This is the question about the whole amendment that had been adopted. Other than just settling it, we felt it was important to have a record of that.

GUESTS EXTENDED PRIVILEGE OF SENATE FLOOR

On request of Senator Porter, the privilege of the floor of the Senate Chamber for this day was extended to Nate Downs, Vickie Downs-Maline and Andy Maline, Jr.

Senator Raggio moved that the Senate adjourn until Sunday, June 3, 2001 at 10 a.m.

Motion carried.

Senate adjourned at 6:13 p.m.

Approved:Lawrence E. Jacobsen

President pro Tempore of the Senate

Attest: Claire J. Clift

Secretary of the Senate