NEVADA LEGISLATURE

ONE HUNDRED AND TWENTIETH DAY

Carson City(Monday), June 4, 2001

Senate called to order at 11:28 a.m.

President Hunt presiding.

Roll called.

All present.

Prayer by the Chaplain, Pastor Albert Tilstra.

We come to You at this quiet moment with a great sigh of relief. It has been 120 days since the opening day of this Session. Now we have come to the end. As these Senators look back at the work that they have done, may they go to their homes with pride in their hearts that they have done the best for the people of this State.

But, may they also in all humility recognize that it really was not just their cleverness that helped them accomplish this task. May they give credit to You who gave them the ability to do their tasks. Bless each one of the members of this body as they go home. In their work, in their play, may they find a new awareness of their need for You. We ask in Jesus’ Name.

Amen.

Pledge of allegiance to the Flag.

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

Motion carried.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Finance, to which were referred Senate Bills Nos. 476, 584, 585, 586; Assembly Bills Nos. 513, 515, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Also, your Committee on Finance, to which were referred Assembly Bills Nos. 378, 564, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

William J. Raggio, Chairman

Madam President:

Your Committee on Taxation, to which was referred Assembly Bill No. 668, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Mike McGinness, Chairman

Madam President:

Your Committee on Transportation, to which was referred Assembly Bill No. 175, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

William R. O'Donnell, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, June 3, 2001

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day concurred in Senate Amendment No. 1188 to Assembly Bill No. 666 and respectfully refused to concur in Senate Amendment No. 1171 to Assembly Bill No. 666.

Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to concur in the Senate Amendment No. 1221 to Assembly Bill No. 664.

Also, I have the honor to inform your honorable body that the Assembly on this day receded from Assembly Amendment No. 1061 to Senate Bill No. 565 and respectfully refused to recede from Assembly Amendment No. 863 to Senate Bill No. 565, and requests a conference, and appointed Assemblymen Giunchigliani, Bache and Von Tobel as a first Conference Committee to meet with a like committee of the Senate concerning Senate Bill No. 565.

Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Bache, Berman and Lee as a first Conference Committee concerning Assembly Bill No. 94.

Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Anderson, Carpenter and Manendo as a first Conference Committee concerning Assembly Bill No. 133.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the reports of the first Conference Committees concerning Senate Bills Nos. 116, 418, 482, 551; Assembly Bills Nos. 54, 162, 246, 370, 466, 500, 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. 219 and requests a second conference, and appointed Assemblymen Buckley, Brown and Smith as a second Conference Committee to meet with a like committee of the Senate for further consideration of Assembly Bill No. 219.

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. 303 and appointed Assemblymen Chowning, McClain and Brower as a second Conference Committee to meet with a like committee of the Senate for further consideration of Senate Bill No. 303.

Patricia R. Williams

Assistant Chief Clerk of the Assembly

INTRODUCTION, FIRST READING AND REFERENCE

By the Committee on Finance:

Senate Bill No. 587—AN ACT making an appropriation to the Interim Finance Committee to assist school districts in paying for health insurance for their employees; and providing other matters properly relating thereto.

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

Motion carried.

By the Committee on Finance:

Senate Bill No. 588—AN ACT making an appropriation to the Interim Finance Committee to provide assistance to certain educational programs; and providing other matters properly relating thereto.

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

Motion carried.

GENERAL FILE AND THIRD READING

Senate Bill No. 584.

Bill read third time.

Remarks by Senator Raggio.

Roll call on Senate Bill No. 584:

Yeas—20.

Nays—Schneider.

Senate Bill No. 584 having received a two-thirds majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Senate Bill No. 585.

Bill read third time.

Remarks by Senator Raggio.

Roll call on Senate Bill No. 585:

Yeas—21.

Nays—None.

Senate Bill No. 585 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Senate Bill No. 586.

Bill read third time.

Remarks by Senator Raggio.

Roll call on Senate Bill No. 586:

Yeas—20.

Nays—Schneider.

Senate Bill No. 586 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 175.

Bill read third time.

Remarks by Senator O'Donnell.

Roll call on Assembly Bill No. 175:

Yeas—21.

Nays—None.

Assembly Bill No. 175 having received a constitutional majority, Madam President 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 on the General File on the next agenda.

Remarks by Senator Townsend.

Motion carried.

GENERAL FILE AND THIRD READING

Assembly Bill No. 668.

Bill read third time.

Remarks by Senators Neal and McGinness.

Madam President announced that if there were no objections, the Senate would recess subject to the call of the Chair.

Senate in recess at 11:53 a.m.

SENATE IN SESSION

At 12:10 p.m.

President Hunt presiding.

Quorum present.

Remarks by Senators Coffin, Neal and McGinness.

Conflict of interest declared by Senator O'Donnell.

Roll call on Assembly Bill No. 668:

Yeas—10.

Nays—Care, Carlton, Coffin, Mathews, Neal, Porter, Shaffer, Titus, Wiener—9.

Not Voting—James, O'Donnell—2.

Assembly Bill No. 668 having failed to receive a constitutional majority, Madam President declared it lost.

UNFINISHED BUSINESS

Consideration of Assembly Amendments

Senate Bill No. 137.

The following Assembly amendment was read:

Amendment No. 1215.

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

“Sec. 2. NRS 3.018 is hereby amended to read as follows:

3.018 For the eighth judicial district there must be [30] 33 district judges, [11] 12 of whom must be judges of the family court.”.

Amend sec. 2, page 1, line 5, after “act” by inserting: “and the additional district judges required for the eighth judicial district pursuant to section 2 of this act”.

Amend sec. 2, page 1, by deleting line 7 and inserting: “The terms of these judges expire on January 5, 2009.”.

Amend sec. 3, page 1, between lines 10 and 11, by inserting:

“2. There is hereby appropriated from the state general fund to the district judges’ salary account the sum of $244,764 for the salaries of the additional district judges required pursuant to section 2 of this act.”.

Amend sec. 3, page 1, by deleting line 11 and inserting:

“3. Any remaining balance of the appropriations made by subsections 1 and 2”.

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

“1. This section and sections 3 and 5 of this act become”.

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

Amend sec. 5, page 2, by deleting line 4 and inserting:

“3. Sections 1 and 2 of this act become effective at 12:01 a.m. on January 6,”.

Amend the title of the bill to read as follows:

“AN ACT relating to courts; increasing the number of district judges in the second and eighth judicial districts; increasing the number of district judges in the second and eighth judicial districts who must be judges of the family court; making appropriations; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Increases number of district judges in second and eighth judicial districts. (BDR 1‑521)”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 137.

Remarks by Senator Raggio.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 143.

The following Assembly amendment was read:

Amendment No. 1195.

Amend the bill as a whole by renumbering sections 3 and 4 as sections 4 and 5 and adding a new section designated sec. 3, following sec. 2, to read as follows:

“Sec. 3. There is hereby appropriated from the state general fund to the administrative office of the courts the sum of $300,000 for the establishment of programs of treatment for the abuse of alcohol or controlled substances pursuant to NRS 453.580 in the First, Third and Ninth Judicial Districts of the State of Nevada which include Carson City and Churchill, Douglas, Lyon and Storey counties.”.

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

Amend the title of the bill, first and second lines, by deleting: “the Second and Eighth Judicial District Courts for continuation” and inserting: “certain judicial districts for continuation or establishment”.

Amend the summary of the bill to read as follows:

“SUMMARY—Makes appropriations to certain judicial districts for continuation or establishment of programs of treatment for abuse of alcohol or controlled substances. (BDR S‑178)”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 143.

Remarks by Senator Raggio.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 491.

The following Assembly amendment was read:

Amendment No. 1190.

Amend section 1, page 1, line 2, by deleting “$$250,000” and inserting “$200,000”.

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

“Sec. 2. 1. There is hereby appropriated from the state general fund to Washoe Association for Retarded Citizens the sum of $50,000 for creation of a pilot program to develop supportive employment and reimbursement models to assist clients in their efforts to find and maintain meaningful, productive employment.

2. Upon acceptance of the money appropriated by subsection 1, the Washoe Association for Retarded Citizens agrees to:

(a) Prepare and transmit a report to the Interim Finance Committee on or before December 15, 2002, that describes each expenditure made from the money appropriated by subsection 1 from the date on which the money was received by the Washoe Association for Retarded Citizens through December 1, 2002; and

(b) Upon request of the Legislative Commission, make available to the Legislative Auditor any books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise and irrespective of their form or location, that the Legislative Auditor deems necessary to conduct any audit of the use of the money appropriated pursuant to subsection 1.”.

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

“Sec. 3. Any remaining balance of the appropriations made by sections 1 and 2”.

Amend the title of the bill to read as follows:

“AN ACT making appropriations to the Opportunity Village Foundation for the revitalization of certain thrift stores and to the Washoe Association for Retarded Citizens for creation of a pilot program to develop an employment model and reimbursement model; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Makes appropriations to Opportunity Village Foundation and to Washoe Association for Retarded Citizens. (BDR S‑1354)”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 491.

Remarks by Senator Raggio.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 496.

The following Assembly amendment was read:

Amendment No. 1212.

Amend the bill as a whole by deleting sec. 2 and renumbering sec. 3 as sec. 2.

Amend the title of the bill by deleting the third through sixth lines and inserting: “buildings for student housing and dining at the Great Basin College; and providing other”.

Amend the summary of the bill to read as follows:

“SUMMARY—Authorizes issuance of revenue bonds to finance certain buildings at Great Basin College. (BDR S‑1226)”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 496.

Remarks by Senator Raggio.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Senate Bill No. 62, 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. 22, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend the bill as a whole by deleting section 1 and renumbering sec. 1.5 as section 1.

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

“AN ACT relating to animals; increasing the penalties for certain mistreatment of animals;”.

Amend the summary of the bill to read as follows:

“SUMMARY—Increases penalties for certain mistreatment of animals. (BDR 50‑713)”

Ann O'Connell	Marcia de Braga
Dina Titus	Douglas A. Bache
Jon C. Porter	John C. Carpenter
Senate Conference Committee	Assembly Conference Committee

Senator O'Connell moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 62.

Remarks by Senator O'Connell.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Senate Bill No. 171, 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.

Jon C. Porter	Mark A. Manendo
Mike McGinness	John C. Carpenter
Valerie Wiener	Tom Collins
Senate Conference Committee	Assembly Conference Committee

Senator Porter moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 171.

Remarks by Senator Porter.

Motion carried.

Appointment of Conference Committees

Madam President appointed Senators James, Amodei and Titus as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 171.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Senate Bill No. 202, 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. 20, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend sec. 19, page 9, by deleting lines 15 through 19 and inserting:

“(f) That portion of the salaries and other expenses of the office for”.

Amend sec. 20, page 10, by deleting lines 7 through 11 and inserting:

“6. The administrator shall assess each insurer, including each employer who provides accident benefits for injured employees pursuant to NRS 616C.265, an amount to be deposited in the uninsured employers’ claim [fund.] account. To establish the amount of the assessment, the administrator shall determine the amount of money necessary to maintain an appropriate balance in the [fund] account for each fiscal year and shall allocate a portion of that amount to be payable by private carriers, a portion to be payable by self-insured employers, a portion to be payable by associations of self-insured public or private employers and a portion to be payable by the employers who provide accident benefits pursuant to NRS 616C.265, based upon the expected annual expenditures for claims of each group of insurers. After allocating the amounts payable, the administrator shall apply an assessment rate to the:

(a) Private carriers that reflects the relative hazard of the employments covered by the private carriers, results in an equitable distribution of costs among the private carriers and is based upon expected annual premiums to be received;

(b) Self-insured employers that results in an equitable distribution of costs among the self-insured employers and is based upon expected annual expenditures for claims;

(c) Associations of self-insured public or private employers that results in an equitable distribution of costs among the associations of self-insured public or private employers and is based upon expected annual expenditures for claims; and

(d) Employers who provide accident benefits pursuant to NRS 616C.265 that reflects the relative hazard of the employments covered by those employers, results in an equitable distribution of costs among the employers and is based upon expected annual expenditures for claims.

The administrator shall adopt regulations for the establishment and administration of the assessment rates, payments and any penalties that the administrator determines are necessary to carry out the provisions of this subsection. As used in this subsection, the term “group of insurers” includes the group of employers who provide accident benefits for injured employees pursuant to NRS 616C.265.”.

Amend sec. 25, page 12, by deleting line 14 and inserting: “rates must result in an equitable distribution of costs among the self-”.

Amend sec. 25, page 12, line 15, by deleting the comma.

Amend sec. 31, page 15, by deleting line 14 and inserting: “rates must result in an equitable distribution of costs among the”.

Amend sec. 31, page 15, line 15, by deleting the comma.

Amend sec. 34, page 17, by deleting lines 35 through 37 and inserting: “private carriers, must result in an equitable distribution of costs among the private carriers and must be based upon expected annual premiums to be received.”.

Amend sec. 45, page 28, by deleting line 7 and inserting:

“Sec. 45. 1. This section and sections 1 to 18, inclusive, 21 to 24, inclusive, 26 to 30, inclusive, 32, 33, 35 to 42, inclusive, and 44 of this act become effective on July 1, 2001.

2. Sections 19, 20, 25, 31, 34 and 43 of this act become effective at 12:01 a.m. on July 1, 2001.”.

Amend the bill as a whole by deleting the text of repealed sections and adding the text of the repealed sections, to read as follows:

TEXT OF REPEALED SECTIONS

227.215 Minimum amount for drawing warrant; exceptions. Unless the state controller determines that earlier payment is necessary, he shall not draw a warrant for less than $25, but shall accumulate claims for less than $25 until:

1. The claims of a particular claimant amount to $25 or more; or

2. The end of the fiscal year.

353.145 Renewal of claim by presentation to state board of examiners; payment.

1. If a warrant of the state controller has been canceled pursuant to the provisions of NRS 353.130, the person in whose favor the warrant was drawn may, within 1 year after the date ofthe original warrant, renew his claim against the state, in the amount of the warrant which was canceled, by presenting the claim for approval by the state board of examiners, except that the state board of examiners may authorize its clerk, under such circumstances as it deems appropriate, to approve such a claim on behalf of the board. A person who is aggrieved by a determination of the clerk to deny all or any part of such a claim may appeal that determination to the state board of examiners.

2. If a claim is approved pursuant to this section, payment of the claimmay be made out of the stale claims account as provided in NRS 353.097.”.

Terry Care
William R. O'Donnell	Douglas A. Bache
Jon C. Porter	Harry Mortenson
Senate Conference Committee	Assembly Conference Committee

Senator Care moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 202.

Remarks by Senator Care.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Senate Bill No. 362, consisting of the undersigned members, has met and reports that:

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

	Joseph E. Dini
Dean A. Rhoads	Lynn C. Hettrick
Mark Amodei	P.M. "Roy" Neighbors
Senate Conference Committee	Assembly Conference Committee

Senator Rhoads moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 362.

Remarks by Senator Rhoads.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Assembly Bill No. 54, 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. 16, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend the bill as a whole by renumbering sections 11 through 13 as sections 12 through 14 and adding a new section designated sec. 11, following sec. 10, to read as follows:

“Sec. 11. Sections 1 and 3 of Assembly Bill No. 489 of this session are hereby amended to read as follows:

Section 1. NRS 176.0913 is hereby amended to read as follows:

176.0913 1. If a defendant is convicted of an offense listed in subsection 4, the court, at sentencing, shall order that:

(a) The name, social security number, date of birth and any other information identifying the defendant be submitted to the central repository for Nevada records of criminal history; and

(b) A biological specimen be obtained from the defendant pursuant to the provisions of this section and that the specimen be used for an analysis to determine the genetic markers of the specimen.

2. If the defendant is committed to the custody of the department of prisons, the department of prisons shall arrange for the biological specimento be obtained from the defendant. The department of prisons shall provide the specimento the forensic laboratory that has been designated by the county in which the defendant was convicted to conduct or oversee genetic marker testing for the county pursuant to NRS 176.0917.

3. If the defendant is not committed to the custody of the department of prisons, the division shall arrange for the biological specimento be obtained from the defendant. The division shall provide the specimento the forensic laboratory that has been designated by the county in which the defendant was convicted to conduct or oversee genetic marker testing for the county pursuant to NRS 176.0917. Any cost that is incurred to obtain a biological specimen from a defendant pursuant to this subsection is a charge against the county in which the defendant was convicted and must be paid as provided in NRS 176.0915.

4. The provisions of subsection 1 apply to a defendant who is convicted of:

(a) A category A felony;

(b) A category B felony;

(d) A crime against a child as defined in NRS 179D.210;

[(b)] (e) A sexual offense as defined in NRS 179D.410;

[(c) Murder, manslaughter or any other unlawful killing pursuant to NRS 200.010 to 200.260, inclusive;

(d) Mayhem pursuant to NRS 200.280;

(e) Administering poison or another noxious or destructive substance or liquid with intent to cause death pursuant to NRS 200.390;

(f) Battery with intent to commit a crime pursuant to NRS 200.400;

(g) Battery which is committed with the use of a deadly weapon or which results in substantial bodily harm pursuant to NRS 200.481;

(h)] (f) Abuse or neglect of an older person pursuant to NRS 200.5099;

[(i)] (g) A second or subsequent offense for stalking pursuant to NRS 200.575;

[(j) Burglary pursuant to NRS 205.060;

(k) Invasion of the home pursuant to NRS 205.067;

(l) Kidnapping pursuant to NRS 200.310 to 200.340, inclusive; or

(m)] or

(h) An attempt or conspiracy to commit an offense listed in this subsection.

Sec. 3. NRS 179A.075 is hereby amended to read as follows:

179A.075 1. The central repository for Nevada records of criminal history is hereby created within the Nevada highway patrol division of the department.

2. Each agency of criminal justice and any other agency dealing with crime or delinquency of children shall:

(a) Collect and maintain records, reports and compilations of statistical data required by the department; and

(b) Submit the information collected to the central repository in the manner recommended by the advisory committee and approved by the director of the department.

3. Each agency of criminal justice shall submit the information relating to sexual offenses and other records of criminal history that it creates or issues, and any information in its possession relating to the genetic markers of a biological specimenof a person who is convicted of [a criminal offense,] an offense listed in subsection 4 of NRS 176.0913, to the division in the manner prescribed by the director of the department. The information must be submitted to the division:

(a) Through an electronic network;

(b) On a medium of magnetic storage; or

within the period prescribed by the director of the department. If an agency has submitted a record regarding the arrest of a person who is later determined by the agency not to be the person who committed the particular crime, the agency shall, immediately upon making that determination, so notify the division. The division shall delete all references in the central repository relating to that particular arrest.

4. The division shall, in the manner prescribed by the director of the department:

(a) Collect, maintain and arrange all information submitted to it relating to:

(1) Sexual offenses and other records of criminal history; and

(2) The genetic markers of a biological specimen of a person who is convicted of [a criminal offense.] an offense listed in subsection 4 of NRS 176.0913.

(b) When practicable, use a record of the personal identifying information of a subject as the basis for any records maintained regarding him.

(c) Upon request, provide the information that is contained in the central repository to the state disaster identification team of the division of emergency management of the department.

5. The division may:

(a) Disseminate any information which is contained in the central repository to any other agency of criminal justice;

(b) Enter into cooperative agreements with federal and state repositories to facilitate exchanges of information that may be disseminated pursuant to paragraph (a); and

(c) Request of and receive from the Federal Bureau of Investigation information on the background and personal history of any person whose record of fingerprints the central repository submits to the Federal Bureau of Investigation and:

(1) Who has applied to any agency of the State of Nevada or any political subdivision thereof for a license which it has the power to grant or deny;

(2) With whom any agency of the State of Nevada or any political subdivision thereof intends to enter into a relationship of employment or a contract for personal services;

(3) About whom any agency of the State of Nevada or any political subdivision thereof has a legitimate need to have accurate personal information for the protection of the agency or the persons within its jurisdiction; or

(4) For whom such information is required to be obtained pursuant to NRS 449.179.

6. The central repository shall:

(a) Collect and maintain records, reports and compilations of statistical data submitted by any agency pursuant to subsection 2.

(b) Tabulate and analyze all records, reports and compilations of statistical data received pursuant to this section.

(c) Disseminate to federal agencies engaged in the collection of statistical data relating to crime information which is contained in the central repository.

(d) Investigate the criminal history of any person who:

(1) Has applied to the superintendent of public instruction for a license;

(2) Has applied to a county school district for employment; or

(3) Is employed by a county school district,

and notify the superintendent of each county school district and the superintendent of public instruction if the investigation of the central repository indicates that the person has been convicted of a violation of NRS 200.508, 201.230, 453.3385, 453.339 or 453.3395, or convicted of a felony or any offense involving moral turpitude.

(e) Upon discovery, notify the superintendent of each county school district by providing him with a list of all persons:

(1) Investigated pursuant to paragraph (d); or

(2) Employed by a county school district whose fingerprints were sent previously to the central repository for investigation,

who the central repository’s records indicate have been convicted of a violation of NRS 200.508, 201.230, 453.3385, 453.339 or 453.3395, or convicted of a felony or any offense involving moral turpitude since the central repository’s initial investigation. The superintendent of each county school district shall determine whether further investigation or action by the district is appropriate.

(f) Investigate the criminal history of each person who submits fingerprints or has his fingerprints submitted pursuant to NRS 449.176 or 449.179.

(g) On or before July 1 of each year, prepare and present to the governor a printed annual report containing the statistical data relating to crime received during the preceding calendar year. Additional reports may be presented to the governor throughout the year regarding specific areas of crime if they are recommended by the advisory committee and approved by the director of the department.

(h) On or before July 1 of each year, prepare and submit to the director of the legislative counsel bureau, for submission to the legislature, or the legislative commission when the legislature is not in regular session, a report containing statistical data about domestic violence in this state.

(i) Identify and review the collection and processing of statistical data relating to criminal justice and the delinquency of children by any agency identified in subsection 2, and make recommendations for any necessary changes in the manner of collecting and processing statistical data by any such agency.

7. The central repository may:

(a) At the recommendation of the advisory committee and in the manner prescribed by the director of the department, disseminate compilations of statistical data and publish statistical reports relating to crime or the delinquency of children.

(b) Charge a reasonable fee for any publication or special report it distributes relating to data collected pursuant to this section. The central repository may not collect such a fee from an agency of criminal justice, any other agency dealing with crime or the delinquency of children which is required to submit information pursuant to subsection 2 or the state disaster identification team of the division of emergency management of the department. All money collected pursuant to this paragraph must be used to pay for the cost of operating the central repository.

(c) In the manner prescribed by the director of the department, use electronic means to receive and disseminate information contained in the central repository that it is authorized to disseminate pursuant to the provisions of this chapter.

8. As used in this section:

(a) “Advisory committee” means the committee established by the director of the department pursuant to NRS 179A.078.

(b) “Personal identifying information” means any information designed, commonly used or capable of being used, alone or in conjunction with any other information, to identify a person, including, without limitation:

(1) The name, driver’s license number, social security number, date of birth and photograph or computer generated image of a person; and

(2) The fingerprints, voiceprint, retina image and iris image of a person.”.

Jon C. Porter	Bernie Anderson
Maurice E. Washington	Dennis Nolan
Terry Care	Genie Ohrenschall
Senate Conference Committee	Assembly Conference Committee

Senator Porter moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 54.

Remarks by Senator Porter.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Assembly Bill No. 162, 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. 12, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend section 1, page 1, line 2, by deleting “A” and inserting: “[A]

1. Except as otherwise provided in subsection 2, a”.

Amend section 1, page 1, line 4, by deleting “1.” and inserting “[1.] (a)”.

Amend section 1, page 1, line 6, by deleting “2.” and inserting “[2.] (b)”.

Amend section 1, page 1, line 11, by deleting “3.” and inserting “[3.] (c)”.

Amend section 1, page 2, line 3, by deleting “4.” and inserting “[4.] (d)”.

Amend section 1, page 2, line 7, by deleting “5.” and inserting “[5.] (e)”.

Amend section 1, page 2, line 9, by deleting “6.” and inserting “[6.] (f)”.

Amend section 1, page 2, line 14, by deleting “7.” and inserting “[7.] (g)”.

Amend section 1, page 2, line 16, by deleting “8.” and inserting “[8.] (h)”.

Amend section 1, page 2, line 17, by deleting “9.” and inserting “[9.] (i)”.

Amend section 1, page 2, line 19, by deleting “10.” and inserting “(j)”.

Amend section 1, page 2, between lines 21 and 22, by inserting:

“2. A person who commits an act that is prohibited by subsection 1 which involves the repair of a vehicle has not committed theft unless, before the repair was made, he received a written estimate of the cost of the repair.”.

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

“Sec. 2. NRS 205.466 is hereby amended to read as follows:

205.466 1. A district attorney may create within his office a program for restitution for persons referred to the district attorney by a law enforcement officer who has probable cause to believe the person violated paragraph (i) of subsection [9] 1 of NRS 205.0832 [,] or NRS 205.130 or 205.380. The program may be conducted by the district attorney in conjunction with the county sheriff, police department or any other law enforcement agency in whose jurisdiction a violation of paragraph (i) of subsection [9] 1 of NRS 205.0832 [,] or NRS 205.130 or 205.380 has occurred, or by a private entity under contract with the district attorney.

2. The district attorney may adopt standards for the law enforcement agency which indicate the minimum requirements of investigation by the agency for its referral of a person to the district attorney for acceptance in the program.

3. If such a person is referred to the district attorney, the district attorney shall determine if the person is appropriate for acceptance in the program. The district attorney may consider:

(a) The amount of the check or draft drawn or passed without sufficient money or credit to pay it in full;

(b) The prior criminal record of the person;

(d) The number of times the person has violated paragraph (i) of subsection [9] 1 of NRS 205.0832 [,] or NRS 205.130 or 205.380;

(e) Whether other allegations of drawing or passing checks or drafts without sufficient money or credit to pay them in full are pending against the person; and

(f) The strength of the evidence, if any, of the person’s intent to defraud the alleged victim.

4. Except as otherwise provided in NRS 205.469, this section does not limit the authority of the district attorney to prosecute violations of paragraph (i) of subsection [9] 1 of NRS 205.0832 [,] or NRS 205.130 or 205.380.”.

Amend the title of the bill, third line, after “services” by inserting: “under certain circumstances”.

Mike McGinness	Mark A. Manendo
Maurice E. Washington	John C. Carpenter
Terry Care	Jerry D. Claborn
Senate Conference Committee	Assembly Conference Committee

Senator McGinness moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 162.

Remarks by Senator McGinness.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Assembly Bill No. 246, consisting of the undersigned members, has met and reports that:

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

	Kathy McClain
Maggie Carlton	Jerry D. Claborn
Lawrence E. Jacobsen	Dennis Nolan
Senate Conference Committee	Assembly Conference Committee

Senator Carlton moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 246.

Remarks by Senator Carlton.

Motion carried by a constitutional majority.

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

Motion carried.

Senate in recess at 12:37 p.m.

SENATE IN SESSION

At 12:41 p.m.

President Hunt presiding.

Quorum present.

MOTIONS, RESOLUTIONS AND NOTICES

Senator O'Donnell moved to rescind the action of adoption of the first conference report concerning Assembly Bill No. 246 and to recommend the appointment of a second committee.

Remarks by Senator O'Donnell.

Motion carried.

UNFINISHED BUSINESS

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Assembly Bill No. 370, 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. 21, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend sec. 17, page 6, line 36, by deleting “and” and inserting “or”.

Amend sec. 17, page 6, by deleting lines 38 and 39 and inserting: “against harassment in the workplace.”.

Jon C. Porter	Sheila Leslie
Mark Amodei	John C. Carpenter
Valerie Wiener	Bernie Anderson
Senate Conference Committee	Assembly Conference Committee

Senator Porter moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 370.

Remarks by Senator James.

Motion carried by a constitutional majority.

Madam President:

The first Conference Committee concerning Assembly Bill No. 466, 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. 17, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend the bill as a whole by deleting sections 1 through 9 and adding new sections designated sections 1 through 36, following the enacting clause, to read as follows:

“Section 1. Chapter 463 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 9, inclusive, of this act.

Sec. 2. 1. “Interactive gaming” means the conduct of gambling games through the use of communications technology that allows a person, utilizing money, checks, electronic checks, electronic transfers of money, credit cards, debit cards or any other instrumentality, to transmit to a computer information to assist in the placing of a bet or wager and corresponding information related to the display of the game, game outcomes or other similar information. The term does not include the operation of a race book or sports pool that uses communications technology approved by the board pursuant to regulations adopted by the commission to accept wagers originating within this state for races or sporting events.

2. As used in this section, “communications technology” means any method used and the components employed by an establishment to facilitate the transmission of information, including, without limitation, transmission and reception by systems based on wire, cable, radio, microwave, light, optics or computer data networks, including, without limitation, the Internet and intranets.

Sec. 3. 1. Except as otherwise provided in subsections 2 and 3, the commission may, with the advice and assistance of the board, adopt regulations governing the licensing and operation of interactive gaming.

2. The commission may not adopt regulations governing the licensing and operation of interactive gaming until the commission first determines that:

(a) Interactive gaming can be operated in compliance with all applicable laws;

(b) Interactive gaming systems are secure and reliable, and provide reasonable assurance that players will be of lawful age and communicating only from jurisdictions where it is lawful to make such communications; and

3. The regulations adopted by the commission pursuant to this section must:

(a) Establish the investigation fees for:

(1) A license to operate interactive gaming;

(2) A license for a manufacturer of interactive gaming systems; and

(3) A license for a manufacturer of equipment associated with interactive gaming.

(b) Provide that:

(1) A person must hold a license for a manufacturer of interactive gaming systems to supply or provide any interactive gaming system, including, without limitation, any piece of proprietary software or hardware; and

(2) A person may be required by the commission to hold a license for a manufacturer of equipment associated with interactive gaming.

(c) Set forth standards for the suitability of a person to be licensed as a manufacturer of interactive gaming systems or manufacturer of equipment associated with interactive gaming that are as stringent as the standards for a nonrestricted license.

(d) Provide that gross revenue received by an establishment from the operation of interactive gaming is subject to the same license fee provisions of NRS 463.370 as the games and gaming devices of the establishment.

(e) Set forth standards for the location and security of the computer system and for approval of hardware and software used in connection with interactive gaming.

(f) Define “equipment associated with interactive gaming,” “interactive gaming system,” “manufacturer of equipment associated with interactive gaming,” “manufacturer of interactive gaming systems,” “operate interactive gaming” and “proprietary hardware and software” as the terms are used in this chapter.

4. Except as otherwise provided in subsection 5, the commission shall not approve a license for an establishment to operate interactive gaming unless:

(a) In a county whose population is 400,000 or more, the establishment is a resort hotel that holds a nonrestricted license to operate games and gaming devices.

(b) In a county whose population is more than 40,000 but less than 400,000, the establishment is a resort hotel that holds a nonrestricted license to operate games and gaming devices or the establishment:

(1) Holds a nonrestricted license for the operation of games and gaming devices;

(2) Has more than 120 rooms available for sleeping accommodations in the same county;

(3) Has at least one bar with permanent seating capacity for more than 30 patrons that serves alcoholic beverages sold by the drink for consumption on the premises;

(4) Has at least one restaurant with permanent seating capacity for more than 60 patrons that is open to the public 24 hours each day and 7 days each week; and

(5) Has a gaming area that is at least 18,000 square feet in area with at least 1,600 slot machines, 40 table games, and a sports book and race pool.

(c) In all other counties, the establishment is a resort hotel that holds a nonrestricted license to operate games and gaming devices or the establishment:

(1) Has held a nonrestricted license for the operation of games and gaming devices for at least 5 years before the date of its application for a license to operate interactive gaming;

(2) Meets the definition of group 1 licensee as set forth in the regulations of the commission on the date of its application for a license to operate interactive gaming; and

(3) Operates either:

(I) More than 50 rooms for sleeping accommodations in connection therewith; or

(II) More than 50 gaming devices in connection therewith.

5. The commission may:

(a) Issue a license to operate interactive gaming to an affiliate of an establishment if:

(1) The establishment satisfies the applicable requirements set forth in subsection 4; and

(2) The affiliate is located in the same county as the establishment; and

(b) Require an affiliate that receives a license pursuant to this subsection to comply with any applicable provision of this chapter.

6. It is unlawful for any person, either as owner, lessee or employee, whether for hire or not, either solely or in conjunction with others, to operate interactive gaming:

(a) Until the commission adopts regulations pursuant to this section; and

(b) Unless the person first procures, and thereafter maintains in effect, all appropriate licenses as required by the regulations adopted by the commission pursuant to this section.

7. A person who violates subsection 6 is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years or by a fine of not more than $50,000, or both.

Sec. 4. A debt incurred by a patron for play at an interactive gaming system of an establishment licensed to operate interactive gaming is valid and may be enforced by legal process.

Sec. 5. 1. Upon the recommendation of the board, the commission may require:

(a) A manufacturer of equipment associated with interactive gaming who sells, transfers or offers equipment associated with interactive gaming for use or play in this state to file an application for a license to be a manufacturer of equipment associated with interactive gaming.

(b) A person who directly or indirectly involves himself in the sale, transfer or offering for use or play in this state of equipment associated with interactive gaming who is not otherwise required to be licensed as a manufacturer or distributor pursuant to this chapter to file an application for a license to be a manufacturer of equipment associated with interactive gaming.

2. If a person fails to submit an application for a license to be a manufacturer of equipment associated with interactive gaming within 30 days after a demand by the commission pursuant to this section, the commission may pursue any remedy or combination of remedies provided in this chapter.

Sec. 6. 1. Before issuing an initial license for an establishment to operate interactive gaming, the commission shall charge and collect from the establishment a license fee of $500,000.

2. Each initial license for an establishment to operate interactive gaming must be issued for a 2-year period beginning on January 1 of the first year and ending on December 31 of the second year.

3. Notwithstanding the provisions of subsections 1 and 2 to the contrary, a license for an establishment to operate interactive gaming may be issued after January 1 of a calendar year for a period beginning on the date of issuance of the license and ending on the second December 31 following the date of issuance of the license. Before issuing an initial license pursuant to this subsection, the commission shall charge and collect from the establishment a license fee of $500,000 prorated by 1/24 for each full month between January 1 of the calendar year and the date of issuance of the license.

4. Before renewing a license issued pursuant to this section, but in no case later than the second December 31 after the license was issued or previously renewed, the commission shall charge and collect a renewal fee of $250,000 for the renewal of the license for the immediately following 1-year period.

Sec. 7. The operation of interactive gaming is exempt from the fees and taxes imposed pursuant to NRS 463.375, 463.380, 463.383 and 463.385.

Sec. 8. 1. Before issuing a license for a manufacturer of interactive gaming systems or manufacturer of equipment associated with interactive gaming, the commission shall charge and collect a license fee of:

(a) One hundred and twenty-five thousand dollars for a license for a manufacturer of interactive gaming systems; or

(b) Fifty thousand dollars for a license for a manufacturer of equipment associated with interactive gaming.

2. Each license issued pursuant to this section must be issued for a 1-year period that begins on the date the license is issued.

3. Before renewing a license issued pursuant to this section, but in no case later than 1 year after the license was issued or previously renewed, the commission shall charge and collect a renewal fee for the renewal of the license for the immediately following 1-year period. The renewal fee for a license for a manufacturer of interactive gaming systems or manufacturer of equipment associated with interactive gaming is $25,000.

Sec. 9. 1. All gross revenue from operating interactive gaming received by an establishment licensed to operate interactive gaming, regardless of whether any portion of the revenue is shared with another person, must be attributed to the licensee and counted as part of the gross revenue of the licensee for the purpose of computing the license fee required by NRS 463.370.

2. A manufacturer of interactive gaming systems who is authorized by an agreement to receive a share of the revenue from an interactive gaming system from an establishment licensed to operate interactive gaming is liable to the establishment for a portion of the license fee paid pursuant to subsection 1. The portion for which the manufacturer of interactive gaming systems is liable is 6.25 percent of the amount of revenue to which the manufacturer of interactive gaming systems is entitled pursuant to the agreement.

3. For the purposes of subsection 2, the amount of revenue to which the manufacturer of interactive gaming systems is entitled pursuant to an agreement to share the revenue from an interactive gaming system:

(a) Includes all revenue of the manufacturer of interactive gaming systems that is his share of the revenue from the interactive gaming system pursuant to the agreement; and

(b) Does not include revenue that is the fixed purchase price for the sale of a component of the interactive gaming system.

Sec. 10. NRS 463.013 is hereby amended to read as follows:

463.013 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 463.0133 to 463.0197, inclusive, and section 2 of this act, have the meanings ascribed to them in those sections.

Sec. 11. NRS 463.0157 is hereby amended to read as follows:

463.0157 1. “Gaming employee” means any person connected directly with an operator of a slot route, the operator of a pari-mutuel system, the operator of an inter-casino linked system or a manufacturer, distributor or disseminator, or with the operation of a gaming establishment licensed to conduct any game, 16 or more slot machines, a race book, sports pool or pari-mutuel wagering, including:

(a) Accounting or internal auditing personnel who are directly involved in any recordkeeping or the examination of records associated with revenue from gaming;

(b) Boxmen;

(d) Change personnel;

(e) Counting room personnel;

(f) Dealers;

(g) Employees of a person required by NRS 464.010 to be licensed to operate an off-track pari-mutuel system;

(h) Employees of a person required by NRS 463.430 to be licensed to disseminate information concerning racing;

(i) Employees of manufacturers or distributors of gaming equipment within this state whose duties are directly involved with the manufacture, repair or distribution of gaming devices , [or] cashless wagering systems [;],, interactive gaming systems or equipment associated with interactive gaming;

(j) Employees of operators of slot routes who have keys for slot machines or who accept and transport revenue from the slot drop;

(k) Employees of operators of inter-casino linked systems or interactive gaming systems whose duties include the operational or supervisory control of the systems or the games that are part of the systems;

(l) Floormen;

(m) Hosts or other persons empowered to extend credit or complimentary services;

(n) Keno runners;

(o) Keno writers;

(p) Machine mechanics;

(q) Odds makers and line setters;

(r) Security personnel;

(s) Shift or pit bosses;

(t) Shills;

(u) Supervisors or managers;

(v) Ticket writers; and

(w) Employees of a person required by NRS 463.160 to be licensed to operate an information service.

2. “Gaming employee” does not include bartenders, cocktail waitresses or other persons engaged exclusively in preparing or serving food or beverages.

Sec. 12. NRS 463.0172 is hereby amended to read as follows:

463.0172 “Manufacturer” means a person who:

1. Manufactures, assembles, programs or makes modifications to a gaming device, [or] cashless wagering system[;] or interactive gaming system; or

2. Designs, assumes responsibility for the design of, controls the design or assembly of, or maintains a copyright over the design of , a mechanism, electronic circuit or computer program which cannot be reasonably demonstrated to have any application other than in a gaming device , [or in a] cashless wagering system[,] or interactive gaming system for use or play in this state or for distribution outside of this state.

Sec. 13. NRS 463.0197 is hereby amended to read as follows:

463.0197 “Work permit” means any card, certificate or permit issued by the board or by a county or city licensing authority, whether denominated as a work permit, registration card or otherwise, authorizing the holder to be employed as a gaming employee in this state or to serve as an independent agent. A document issued by any governmental authority for any employment other than gaming is not a valid work permit for the purposes of this chapter.

Sec. 14. NRS 463.200 is hereby amended to read as follows:

463.200 1. Application for a state gaming license or other commission action [shall] must be made to the board on forms furnished by the board and in accordance with the regulations of the commission.

2. The application for a license [shall] must include:

(a) The name of the proposed licensee.

(b) The location of his place or places of business.

(d) The names of all persons directly or indirectly interested in the business and the nature of such interest.

(e) Such other information and details as the board may require in order to discharge its duty properly.

3. If the application is for a restricted license on premises not owned by the applicant, the application must include a sworn and notarized statement from the owner or lessor of the premises indicating whether the consideration paid by the applicant for the use of the premises has been or will be increased because of the operation of gaming on the premises.

4. The board shall furnish to the applicant supplemental forms, which the applicant shall complete and file with the application. Such supplemental forms [shall] must require, but [shall] must not be limited to, complete information and details with respect to the applicant’s antecedents, habits, character, criminal record, business activities, financial affairs and business associates, covering at least a 10-year period immediately preceding the date of filing of the application.

Sec. 15. NRS 463.245 is hereby amended to read as follows:

463.245 1. Except as otherwise provided in [subsections 2, 3 and 4] this section:

(a) All licenses issued to the same person, including a wholly owned subsidiary of that person, for the operation of any game, including a sports pool or race book, which authorize gaming at the same establishment must be merged into a single gaming license.

(b) A gaming license may not be issued to any person if the issuance would result in more than one licensed operation at a single establishment, whether or not the profits or revenue from gaming are shared between the licensed operations.

2. A person who has been issued a nonrestricted gaming license may establish a sports pool or race book on the premises of the establishment at which he conducts a nonrestricted gaming operation only after obtaining permission from the commission.

3. A person who has been issued a license to operate a sports pool or race book at an establishment may be issued a license to operate a sports pool or race book at another establishment if the second establishment is operated by a person who has been issued a nonrestricted license.

4. Nothing in this section limits or prohibits an operator of an inter-casino linked system from placing and operating such a system on the premises of two or more gaming licensees and receiving, either directly or indirectly, any compensation or any percentage or share of the money or property played from the linked games in accordance with the provisions of this chapter and the regulations adopted by the commission. An inter-casino linked system must not be used to link games other than slot machines, unless such games are located at an establishment that is licensed for games other than slot machines.

5. The provisions of this section do not apply to a license to operate interactive gaming.

Sec. 16. NRS 463.335 is hereby amended to read as follows:

463.335 1. The legislature finds that, to protect and promote the health, safety, morals, good order and general welfare of the inhabitants of the State of Nevada and to carry out the policy declared in NRS 463.0129, it is necessary that the board:

(a) Ascertain and keep itself informed of the identity, prior activities and present location of all gaming employees and independent agents in the State of Nevada; and

(b) Maintain confidential records of such information.

2. Except as otherwise provided in [subsections 3 and 4,] subsection 3, a person may not be employed as a gaming employee or serve as an independent agent unless he is the holder of[:

(a) A valid work permit issued in accordance with the applicable ordinances or regulations of the county or city in which his duties are performed and the provisions of this chapter; or

(b) A valid work permit issued by the board, if a work permit is not required by either the county or the city.] a valid work permit to work as a gaming employee issued pursuant to this section. A work permit to work as a gaming employee may be issued by the board or by a county or city licensing authority. An applicant for a work permit shall file his application for a work permit with the licensing authority of the city in which he resides if that city requires a work permit. If the city in which he resides does not require such a permit, the applicant shall file his application with the licensing authority of the county in which he resides if that county requires a work permit. If the county in which he resides does not require such a permit, the applicant shall file his application with the board. The board shall, by regulation, prescribe the form for an application for a work permit to work as a gaming employee. The fee for such a permit may be charged only to cover the actual investigative and administrative costs related to processing an application for such a permit and must not exceed $75.

3. An independent agent is not required to hold a work permit if he is not a resident of this state and has registered with the board in accordance with the provisions of the regulations adopted by the commission.

4. [A person may be employed as a gaming employee for an operator of a slot machine route and perform duties for his employer in more than one county or city without obtaining a valid work permit for each county or city in which he performs those duties if the person holds:

(a) A valid work permit issued in accordance with the applicable ordinances or regulations of the county or city in which his duties are primarily performed and the provisions of this chapter; or

(b) A valid work permit issued by the board, if a work permit is not required by either the county or the city in which his duties are primarily performed.

5. A gaming employee described in subsection 4 shall notify the licensing authority of each city and county in which he performs duties for his employer, other than the licensing authority that issued his valid work permit, that he has obtained a valid work permit pursuant to subsection 4.

6.] Upon receipt of an application for a work permit to work as a gaming employee, the board or licensing authority shall conduct an investigation of the applicant to determine whether he is eligible for the permit. In conducting the investigation, the board or licensing authority shall forward a complete set of the applicant’s fingerprints to the central repository for Nevada records of criminal history for submission to the Federal Bureau of Investigation for a report concerning the criminal history of the applicant. The investigation need not be limited solely to consideration of the results of the report concerning the criminal history of the applicant.

5. A work permit issued to a gaming employee or an independent agent must have clearly imprinted thereon a statement that it is valid for gaming purposes only.

6. Unless denied or objected to by the board at the time that the permittee filed a notice of a change in his place of employment pursuant to subsection 8 and unless suspended or revoked, such a permit expires on the fifth anniversary of the permittee’s birthday, measured from the birthday nearest the date of issuance or renewal. If the date of birth of a permittee is on February 29 in a leap year, for the purposes of this section, his date of birth shall be deemed to be on February 28.

7. Whenever any person applies to a county or city licensing authority for the issuance or renewal of a work permit, the county or city officer or employee to whom the application is made shall within 24 hours mail or deliver a copy thereof to the board, and may at the discretion of the county or city licensing authority issue a temporary work permit [.] that is valid for 120 days. If within [90] 120 days after receipt by the board of the copy of the application, the board has not notified the county or city licensing authority of any objection, the authority may issue, renew or deny a permanent work permit to the applicant.

8. A gaming employee who is issued a work permit [must obtain renewal of the permit from the issuing agency within 10 days following any change of his place of employment. An independent agent who is issued a work permit must obtain renewal of the permit from the issuing agency within 10 days after executing an agreement to serve as an independent agent within the jurisdiction of the issuing agency.

8.] is eligible for employment in any licensed gaming establishment in this state until the work permit is denied or objected to by the board, expires or is revoked. However, each such employee shall notify the board within 10 days following any change of his place of employment at a gaming establishment. Such a notification shall be deemed an application for a work permit that the board may deny or object to after conducting any investigations the board deems appropriate. The provisions of subsections 9 to 16, inclusive, apply to any such objection of the board. The commission shall adopt regulations to:

(a) Facilitate uniform procedures for the issuance of work permits by counties and cities;

(b) Establish uniform criteria for denial by a county or city licensing authority of an application for a work permit; and

(c) Provide for the creation and maintenance of a system of records that contain information regarding the current place of employment of each person who possesses a valid work permit.

9. If the board, within the [90-day] 120-day period, notifies:

(a) The county or city licensing authority; and

(b) The applicant,

that the board objects to the granting of a work permit to the applicant, the authority shall deny the work permit and shall immediately revoke and repossess any temporary work permit which it may have issued. The notice of objection by the board which is sent to the applicant must include a statement of the facts upon which the board relied in making its objection.

[9. Application for a work permit may be made to the board, and may be granted or denied for any cause deemed reasonable by the board.]

10. Whenever an application for a work permit is made to the board and the board denies such an application, it shall include in its notice of the denial a statement of the facts upon which it relied in denying the application. [Except for a permit issued to a person pursuant to subsection 4, a permit issued by the board is valid only in a county or city that does not require a work permit.

10.] 11. Any person whose application for a work permit has been denied because of an objection by the board or whose application has been denied by the board may, not later than 60 days after receiving notice of the denial or objection, apply to the board for a hearing. A failure of a person whose application has been denied to apply for a hearing within 60 days or his failure to appear at a hearing of the board conducted pursuant to this section shall be deemed to be an admission that the denial or objection is well founded, and the failure precludes administrative or judicial review. At the hearing, the board shall take any testimony deemed necessary. After the hearing the board shall review the testimony taken and any other evidence, and shall within 45 days after the date of the hearing mail to the applicant its decision sustaining or reversing the denial of the work permit or the objection to the issuance of a work permit.

[11.] 12. The board may object to the issuance of a work permit or may refuse to issue a work permit for any cause deemed reasonable by the board. The board may object or refuse if the applicant has:

(a) Failed to disclose or misstated information or otherwise attempted to mislead the board with respect to any material fact contained in the application for the issuance or renewal of a work permit;

(b) Knowingly failed to comply with the provisions of this chapter or chapter 463B, 464 or 465 of NRS or the regulations of the commission at a place of previous employment;

(c) Committed, attempted or conspired to commit any crime of moral turpitude, embezzlement or larceny or any violation of any law pertaining to gaming, or any crime which is inimical to the declared policy of this state concerning gaming;

(d) Committed, attempted or conspired to commit a crime which is a felony or gross misdemeanor in this state or an offense in another state or jurisdiction which would be a felony or gross misdemeanor if committed in this state;

(e) Been identified in the published reports of any federal or state legislative or executive body as being a member or associate of organized crime, or as being of notorious and unsavory reputation;

(f) Been placed and remains in the constructive custody of any federal, state or municipal law enforcement authority; or

(g) Had a work permit revoked or committed any act which is a ground for the revocation of a work permit or would have been a ground for revoking his work permit if he had then held a work permit.

If the board issues or does not object to the issuance of a work permit to an applicant , [who has been convicted of a crime which is a felony, gross misdemeanor or misdemeanor,] it may specially limit the period for which the permit is valid, limit the job classifications for which the holder of the permit may be employed and establish such individual conditions for the issuance, renewal and effectiveness of the permit as the board deems appropriate, including required submission to unscheduled tests for the presence of alcohol or controlled substances.

[12.] 13. Any applicant aggrieved by the decision of the board may, within 15 days after the announcement of the decision, apply in writing to the commission for review of the decision. Review is limited to the record of the proceedings before the board. The commission may sustain, modify or reverse the board’s decision. The decision of the commission is subject to judicial review pursuant to NRS 463.315 to 463.318, inclusive.

[13.] 14. Except as otherwise provided in this subsection, all records acquired or compiled by the board or commission relating to any application made pursuant to this section and all lists of persons to whom work permits have been issued or denied and all records of the names or identity of persons engaged in the gaming industry in this state are confidential and must not be disclosed except in the proper administration of this chapter or to an authorized law enforcement agency. Upon receipt of a request from the welfare division of the department of human resources pursuant to NRS 425.400 for information relating to a specific person who has applied for or holds a work permit, the board shall disclose to the division his social security number, residential address and current employer as that information is listed in the files and records of the board. Any record of the board or commission which shows that the applicant has been convicted of a crime in another state must show whether the crime was a misdemeanor, gross misdemeanor, felony or other class of crime as classified by the state in which the crime was committed. In a disclosure of the conviction, reference to the classification of the crime must be based on the classification in the state where it was committed.

[14. A work permit expires unless renewed in accordance with subsection 7, or if the holder thereof is not employed as a gaming employee or does not serve as an independent agent within the jurisdiction of the issuing authority for more than 90 days.]

15. The chairman of the board may designate a member of the board or the board may appoint a hearing examiner and authorize that person to perform on behalf of the board any of the following functions required of the board by this section concerning work permits:

(a) Conducting a hearing and taking testimony;

(b) Reviewing the testimony and evidence presented at the hearing;

(c) Making a recommendation to the board based upon the testimony and evidence or rendering a decision on behalf of the board to sustain or reverse the denial of a work permit or the objection to the issuance or renewal of a work permit; and

(d) Notifying the applicant of the decision.

16. Notice by the board as provided pursuant to this section is sufficient if it is mailed to the applicant’s last known address as indicated on the application for a work permit, or the record of the hearing, as the case may be. The date of mailing may be proven by a certificate signed by an officer or employee of the board which specifies the time the notice was mailed. The notice shall be deemed to have been received by the applicant 5 days after it is deposited with the United States Postal Service with the postage thereon prepaid.

Sec. 17. NRS 463.3557 is hereby amended to read as follows:

463.3557 [An]

1. Except as otherwise provided in subsection 2, an electronic transfer of money from a financial institution directly to a game or gaming device may not be made with a credit card.

2. The provisions of subsection 1 do not apply to an interactive gaming system.

Sec. 18. NRS 463.361 is hereby amended to read as follows:

463.361 1. Except as otherwise provided in section 4 of this act and NRS 463.361 to 463.366, inclusive, gaming debts that are not evidenced by a credit instrument are void and unenforceable and do not give rise to any administrative or civil cause of action.

2. A claim by a patron of a licensee for payment of a gaming debt that is not evidenced by a credit instrument may be resolved in accordance with NRS 463.362 to 463.366, inclusive:

(a) By the board; or

(b) If the claim is for less than $500, by a hearing examiner designated by the board.

Sec. 19. NRS 463.370 is hereby amended to read as follows:

463.370 1. Except as otherwise provided in NRS 463.373, the commission shall charge and collect from each licensee a license fee based upon all the gross revenue of the licensee as follows:

(a) Three percent of all the gross revenue of the licensee which does not exceed $50,000 per calendar month;

(b) Four percent of all the gross revenue of the licensee which exceeds $50,000 per calendar month and does not exceed $134,000 per calendar month; and

2. Unless the licensee has been operating for less than a full calendar month, the commission shall charge and collect the fee prescribed in subsection 1, based upon the gross revenue for the preceding calendar month, on or before the 24th day of the following month. Except for the fee based on the first full month of operation, the fee is an estimated payment of the license fee for the third month following the month whose gross revenue is used as its basis.

3. When a licensee has been operating for less than a full calendar month, the commission shall charge and collect the fee prescribed in subsection 1, based on the gross revenue received during that month, on or before the 24th day of the following calendar month of operation. After the first full calendar month of operation, the commission shall charge and collect the fee based on the gross revenue received during that month, on or before the 24th day of the following calendar month. The payment of the fee due for the first full calendar month of operation must be accompanied by the payment of a fee equal to three times the fee for the first full calendar month. This additional amount is an estimated payment of the license fees for the next 3 calendar months. Thereafter, each license fee must be paid in the manner described in subsection 2. Any deposit held by the commission on July 1, 1969, must be treated as an advance estimated payment.

4. All revenue received from any game or gaming device which is operated on the premises of a licensee, regardless of whether any portion of the revenue is shared with any other person, must be attributed to the licensee for the purposes of this section and counted as part of the gross revenue of the licensee. Any other person, including, without limitation, an operator of an inter-casino linked system, who is authorized to receive a share of the revenue from any game, gaming device or inter-casino linked system that is operated on the premises of a licensee is liable to the licensee for that person’s proportionate share of the license fees paid by the licensee pursuant to this section and shall remit or credit the full proportionate share to the licensee on or before the 24th day of each calendar month. The proportionate share of an operator of an inter-casino linked system must be based on all compensation and other consideration received by the operator of the inter-casino linked system, including, without limitation, amounts that accrue to the meter of the primary progressive jackpot of the inter-casino linked system and amounts that fund the reserves of such a jackpot, subject to all appropriate adjustments for deductions, credits, offsets and exclusions that the licensee is entitled to take or receive pursuant to the provisions of this chapter. A licensee is not liable to any other person authorized to receive a share of the licensee’s revenue from any game, gaming device or inter-casino linked system that is operated on the premises of the licensee for that person’s proportionate share of the license fees to be remitted or credited to the licensee by that person pursuant to this section.

5. An operator of an inter-casino linked system shall not enter into any agreement or arrangement with a licensee that provides for the operator of the inter-casino linked system to be liable to the licensee for less than its full proportionate share of the license fees paid by the licensee pursuant to this section, whether accomplished through a rebate, refund, charge-back or otherwise.

6. Any person required to pay a fee pursuant to this section shall file with the commission, on or before the 24th day of each calendar month, a report showing the amount of all gross revenue received during the preceding calendar month. Each report must be accompanied by:

(a) The fee due based on the revenue of the month covered by the report; and

(b) An adjustment for the difference between the estimated fee previously paid for the month covered by the report, if any, and the fee due for the actual gross revenue earned in that month. If the adjustment is less than zero, a credit must be applied to the estimated fee due with that report.

7. If the amount of license fees required to be reported and paid pursuant to this section is later determined to be greater or less than the amount actually reported and paid, the commission shall:

(a) Charge and collect the additional license fees determined to be due, with interest thereon until paid; or

(b) Refund any overpayment to the person entitled thereto pursuant to this chapter, with interest thereon.

Interest pursuant to paragraph (a) must be computed at the rate prescribed in NRS 17.130 from the first day of the first month following [either] the due date of the additional license fees [or the date of overpayment] until paid. Interest pursuant to paragraph (b) must be computed at one-half the rate prescribed in NRS 17.130 from the first day of the first month following the date of overpayment until paid.

8. Failure to pay the fees provided for in this section shall be deemed a surrender of the license at the expiration of the period for which the estimated payment of fees has been made, as established in subsection 2.

9. Except as otherwise provided in NRS 463.386, the amount of the fee prescribed in subsection 1 must not be prorated.

10. Except as otherwise provided in NRS 463.386, if a licensee ceases operation, the commission shall:

(a) Charge and collect the additional license fees determined to be due with interest[;] computed pursuant to paragraph (a) of subsection 7; or

(b) Refund any overpayment[, with interest thereon,] to the licensee[,] with interest computed pursuant to paragraph (b) of subsection 7,

based upon the gross revenue of the licensee during the last 3 months immediately preceding the cessation of operation, or portions of those last 3 months.

11. If in any month, the amount of gross revenue is less than zero, the licensee may offset the loss against gross revenue in succeeding months until the loss has been fully offset.

12. If in any month, the amount of the license fee due is less than zero, the licensee is entitled to receive a credit against any license fees due in succeeding months until the credit has been fully offset.

Sec. 20. NRS 463.387 is hereby amended to read as follows:

463.387 1. State gaming license fees or taxes paid in excess of the amount required to be reported and paid may be refunded, upon the approval of the commission, as other claims against the state are paid.

2. Within 90 days after the mailing of the notice of the commission’s action upon a claim for refund filed pursuant to this chapter, the claimant may bring an action against the commission on the grounds set forth in the claim in any court of competent jurisdiction for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.

3. Failure to bring an action within the time specified in subsection 2 constitutes a waiver of any demand against the state on account of alleged overpayments.

4. Within 20 days after the mailing of the notice of the commission’s action upon a claim for refund filed pursuant to this chapter, the claimant may file a motion for rehearing with the commission. The commission must take action on the motion for rehearing within 50 days after it has been filed with the commission. If the motion for rehearing is granted, the commission’s earlier action upon the claim for refund is rescinded and the 90-day period specified in subsection 2 does not begin until the commission mails notice of its action upon the claim following the rehearing.

5. If the commission fails to mail its notice of action on a claim within 6 months after the claim is filed or reheard, the claimant may consider the claim disallowed and bring an action against the commission on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

6. In any case where a refund is granted, interest must be allowed at one-half the rate prescribed in NRS 17.130 upon the amount found to have been erroneously paid from the first day of the first month following the date of overpayment until paid. The commission may in its discretion deny or limit the payment of interest if it finds that the claimant has failed to file a claim for a refund within 90 days after receiving written notification of overpayment from the board or has impeded the board’s ability to process the claim in a timely manner.

7. Notwithstanding the provisions of NRS 353.115, any claim for refund of state gaming license fees or taxes paid in excess of the amount required to be reported and paid[,] must be filed with the commission within 5 years after the date of overpayment and not thereafter.

8. The provisions of this chapter must not be construed to permit the proration of state gaming taxes or license fees for purposes of a refund.

Sec. 21. NRS 463.400 is hereby amended to read as follows:

463.400 Any person who willfully fails to report, pay or truthfully account for and pay over the license fees imposed by NRS 463.370, 463.373 to 463.3855, inclusive, and sections 6 to 9, inclusive, of this act, 463.390 and 463.450, or willfully attempts in any manner to evade or defeat any such tax or payment thereof, or any licensee who puts additional games into play without authority of the commission to do so or any licensee who fails to remit any license fee provided for by this chapter when due is in addition to the amount due liable for a penalty of the amount of the license fee evaded or not paid, collected or paid over. The penalty must be assessed and collected in the same manner as are other charges, license fees and penalties under this chapter.

Sec. 22. NRS 463.403 is hereby amended to read as follows:

463.403 1. Every person required to pay the tax imposed by NRS 463.401 shall file with the commission, on or before the 24th day of each month, a report showing the amount of all taxable receipts for the preceding month.

2. Each report must be accompanied by the amount of tax which is due for the month covered by the report.

3. If the amount of tax required to be reported and paid pursuant to NRS 463.401 is later determined to be greater or less than the amount actually reported and paid, the commission shall:

(a) Charge and collect the additional tax determined to be due, with interest thereon until paid; or

(b) Refund any overpayment to the person entitled thereto pursuant to this chapter, with interest thereon.

Interest [is] pursuant to paragraph (a) must be computed at the rate prescribed in NRS 17.130 from the first day of the first month following [either] the due date of the additional tax [or the date of overpayment] until paid. Interest pursuant to paragraph (b) must be computed at one-half the rate prescribed in NRS 17.130 from the first day of the first month following the date of overpayment until paid.

Sec. 23. NRS 463.450 is hereby amended to read as follows:

463.450 1. Any disseminator of such information obtaining a license under NRS 463.430 to 463.480, inclusive, shall pay to the commission a fee of 4.25 percent of the total fees collected from users each calendar month for the dissemination of live broadcasts.

2. The commission shall collect the fee on or before the last day of each calendar month for the preceding calendar month.

3. If the amount of the fee required by this section to be reported and paid is determined to be different than the amount reported or paid by the licensee, the commission shall:

(a) Charge and collect any additional fee determined to be due, with interest thereon until paid; or

(b) Refund any overpaid fees to the person entitled thereto pursuant to this chapter, with interest thereon.

Interest [is] pursuant to paragraph (a) must be computed at the rate prescribed in NRS 17.130 from the first day of the first calendar month following [either] the due date of the additional license fees [or the date of overpayment] until paid. Interest pursuant to paragraph (b) must be computed at one-half the rate prescribed in NRS 17.130 from the first day of the first month following the date of overpayment until paid.

4. The commission shall remit all fees collected, less any fees refunded pursuant to subsection 3, to the state treasurer for deposit to the credit of the state general fund.

Sec. 24. NRS 463.482 is hereby amended to read as follows:

463.482 As used in NRS 463.160 to 463.170, inclusive, and section 3 of this act, 463.368, 463.386 and 463.482 to 463.645, inclusive, unless the context otherwise requires, the words and terms defined in NRS 463.4825 to 463.488, inclusive, have the meanings ascribed to them in those sections.

Sec. 25. NRS 463.643 is hereby amended to read as follows:

463.643 1. Each person who acquires, directly or indirectly, beneficial ownership of any voting security in a publicly traded corporation which is registered with the commission may be required to be found suitable if the commission has reason to believe that his acquisition of [such] that ownership would otherwise be inconsistent with the declared policy of this state.

2. Each person who acquires, directly or indirectly, beneficial ownership of any debt security in a publicly traded corporation which is registered with the commission may be required to be found suitable if the commission has reason to believe that his acquisition of [such] the debt security would otherwise be inconsistent with the declared policy of this state.

3. Each person who, individually or in association with others, acquires, directly or indirectly, beneficial ownership of more than 5 percent of any class of voting securities of a publicly traded corporation registered with the Nevada gaming commission, and who is required to report, or voluntarily reports, [such] the acquisition to the Securities and Exchange Commission pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended , [(]15 U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall file a copy of that report, and any amendments thereto, with the Nevada gaming commission within 10 days after filing that report with the Securities and Exchange Commission.

4. Each person who, individually or in association with others, acquires, directly or indirectly, the beneficial ownership of more than 10 percent of any class of voting securities of a publicly traded corporation registered with the commission, [and] or who is required to report, or voluntarily reports, [the] such acquisition pursuant to section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended , [(]15 U.S.C. §§ 78m(d)(1), 78m(g) and 78p(a), respectively , [),] shall apply to the commission for a finding of suitability within 30 days after the chairman of the board mails the written notice.

5. A person who acquires beneficial ownership of any voting security or debt security in a publicly traded corporation created under the laws of a foreign country which is registered with the commission shall file such reports and is subject to such a finding of suitability as the commission may prescribe.

6. Any person required by the commission or by this section to be found suitable shall:

(a) Except as otherwise required in subsection 4, apply for a finding of suitability within 30 days after the commission requests that he do so; and

(b) Together with the application, deposit with the board a sum of money which, in the opinion of the board, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application, and deposit such additional sums as are required by the board to pay final costs and charges.

7. Any person required by the commission or this section to be found suitable who is found unsuitable by the commission shall not hold directly or indirectly the beneficial ownership of any voting security or debt security of a publicly traded corporation which is registered with the commission beyond the time prescribed by the commission.

8. The violation of subsection 6 or 7 is a gross misdemeanor.

9. As used in this section, “debt security” means any instrument generally recognized as a corporate security representing money owed and reflected as debt on the financial statement of a publicly traded corporation, including, but not limited to, bonds, notes and debentures.

Sec. 26. NRS 463.650 is hereby amended to read as follows:

463.650 1. Except as otherwise provided in subsections 2 to 5, inclusive, it is unlawful for any person, either as owner, lessee or employee, whether for hire or not, to operate, carry on, conduct or maintain any form of manufacture, selling or distribution of any gaming device , [or] cashless wagering system or interactive gaming system for use or play in Nevada or for distribution outside of Nevada without first procuring and maintaining all required federal, state, county and municipal licenses.

2. A lessor who specifically acquires equipment for a capital lease is not required to be licensed under this section or NRS 463.660.

3. The holder of a state gaming license or the holding company of a corporation, partnership, limited partnership, limited-liability company or other business organization holding a license may, within 2 years after cessation of business or upon specific approval by the board, dispose of by sale in a manner approved by the board, any or all of its gaming devices, including slot machines, and cashless wagering systems, without a distributor’s license. In cases of bankruptcy of a state gaming licensee or foreclosure of a lien by a bank or other person holding a security interest for which gaming devices are security in whole or in part for the lien, the board may authorize the disposition of the gaming devices without requiring a distributor’s license.

4. The commission may, by regulation, authorize a person who owns gaming devices for home use in accordance with NRS 463.160 to sell such devices without procuring a license therefor.

5. Upon approval by the board, a gaming device owned by:

(a) A law enforcement agency;

(b) A court of law; or

may be disposed of by sale, in a manner approved by the board, without a distributor’s license. An application for approval must be submitted to the board in the manner prescribed by the chairman.

6. Any person whom the commission determines is a suitable person to receive a license under the provisions of this section and NRS 463.660 may be issued a manufacturer’s or distributor’s license. The burden of proving his qualification to receive or hold a license under this section and NRS 463.660 is at all times on the applicant or licensee.

7. Every person who must be licensed pursuant to this section is subject to the provisions of NRS 463.482 to 463.645, inclusive, unless exempted from those provisions by the commission.

8. The commission may exempt, for any purpose, a manufacturer, seller or distributor from the provisions of NRS 463.482 to 463.645, inclusive, if the commission determines that the exemption is consistent with the purposes of this chapter.

9. As used in this section, “holding company” has the meaning ascribed to it in NRS 463.485.

Sec. 27. NRS 463.670 is hereby amended to read as follows:

463.670 1. The legislature finds and declares as facts:

(a) That the inspection of gaming devices, associated equipment , [and] cashless wagering systems and interactive gaming systems is essential to carry out the provisions of this chapter; and

(b) That inspection of gaming devices, associated equipment, [and] cashless wagering systems and interactive gaming systems is greatly facilitated by the opportunity to inspect components before assembly and to examine the methods of manufacture.

2. The board may inspect every gaming device which is manufactured, sold or distributed:

(a) For use in this state, before the gaming device is put into play.

(b) In this state for use outside this state, before the gaming device is shipped out of this state.

3. The board may inspect every gaming device which is offered for play within this state by a licensee.

4. The board may inspect all associated equipment , [and] every cashless wagering system and every interactive gaming system which is manufactured, sold or distributed for use in this state before the equipment or system is installed or used by a licensee and at any time while the licensee is using the equipment or system.

5. In addition to all other fees and charges imposed by this chapter, the board may determine, charge and collect an inspection fee from each manufacturer, seller or distributor which must not exceed the actual cost of inspection and investigation.

Sec. 28. NRS 463A.010 is hereby amended to read as follows:

463A.010 The legislature finds and declares that:

1. The relationship which exists between a labor organization and the employees whom it represents or seeks to represent in collective bargaining is such that it may significantly affect the conduct of a gaming operation by an employer.

2. In the past, attempts have been made by persons whose background is not suitable for association with licensed gaming to gain positions of control in labor organizations representing or seeking to represent gaming casino employees in this state.

3. In order to carry out the declared policy of this state that licensed gaming be conducted freely and honestly, and in order to protect the welfare of the employees of the gaming industry which is fundamental to the economy of this state, it is necessary to determine the suitability of any person who performs or seeks to perform certain significant functions in the representation of gaming casino employees in this state.

Sec. 29. NRS 463A.020 is hereby amended to read as follows:

463A.020 As used in this chapter:

1. “Board” means the state gaming control board.

2. “Commission” means the Nevada gaming commission.

3. “Gaming casino employee” means any person employed directly or indirectly in the operation of a gaming establishment under a nonrestricted license, including:

(a) All personnel involved in the operation of a casino gaming pit, such as dealers, shills, clerks, hosts, junket representatives and the supervisors of such persons;

(b) All personnel involved in handling money, such as cashiers, change persons, count teams, coin wrappers and the supervisors of such persons;

(d) All personnel involved in operating and maintaining slot machines, such as mechanics, floormen, change and payoff persons and the supervisors of such persons;

(e) All personnel involved in security, such as guards, games observers and the supervisors of such persons;

(f) All personnel involved in the operation of a race or sports book, such as writers, boardmen, cashiers and the supervisors of such persons;

(g) All personnel involved in the operation of a pari-mutuel operation licensed under chapter 464 of NRS and any sporting event on which such pari-mutuel wagering is conducted; and

(h) Such other persons whose duties are similar to the classifications set forth in paragraphs (a) to (g), inclusive, as the commission may from time to time designate by regulation,

but does not include personnel whose duties are related solely to such nongaming activities as entertainment, hotel operation, maintenance and the preparation and serving of food and beverages.

4. “Labor organization” means an organization of any kind, or any agency or employee representation committee or plan, which exists for the purpose, in whole or in part, of dealing or seeking to deal with employers of gaming casino employees concerning grievances, labor disputes, wages, rates of pay, hours of employment or conditions of work of gaming casino employees.

Sec. 30. NRS 463A.030 is hereby amended to read as follows:

463A.030 1. [Every] Not later than the date on which a labor organization which represents or seeks to represent gaming casino employees in this state begins an organizational activity directed at a gaming casino employee, the labor organization shall file with the board a list of its personnel who:

(a) Adjust or seek to adjust grievances for, negotiate or administer the wages, hours, working conditions or conditions of employment of any gaming casino employee;

(b) Solicit, collect or receive or seek to solicit, collect or receive any dues, assessments, levies, fines, contributions or other charges within this state for or on behalf of the organization from gaming casino employees; or

(c) Act as officers, members of the governing body, business agents or in any other policymaking or supervisory position in the organization.

2. Each person listed shall file with the board his fingerprints and complete information in writing concerning his labor organization activities, prior performance of the same or similar functions, previous employment or occupational history, and criminal record if any, covering at least a 10-year period unless the board determines that a shorter period is appropriate.

3. The commission shall by regulation prescribe the frequency or circumstances or both with or under which the list [shall] must be revised.

4. The commission may by regulation prescribe:

(a) Any further information to be required concerning each person listed or each person performing a particular function.

(b) The addition of other personnel to the list whose duties significantly affect the conduct of a gaming operation.

5. In adopting regulations pursuant to this section, the commission shall proceed in the manner prescribed in chapter 463 of NRS.

6. For the purposes of this section, “organizational activity” means:

(a) Soliciting membership by direct personal contact;

(b) Distributing cards regarding interests or representation; or

Sec. 31. NRS 463A.050 is hereby amended to read as follows:

463A.050 1. To determine suitability under and compliance with the provisions of this chapter, the board may investigate any person whose name is listed by a labor organization or who it believes is performing or seeking to perform a function which requires listing. For this purpose , the board is vested with all of the powers which it possesses for the investigation of an applicant for or holder of a state gaming license, and may further make such examination as it reasonably deems necessary of the financial records of any labor organization for whom such a person is performing or seeking to perform such a function.

2. The cost of any investigation required by this section [shall] must be paid by the board from [moneys] money appropriated or authorized to be used for this purpose.

3. Whenever the board undertakes an investigation pursuant to this section, [it] the board shall employ or consult with some person who has a professional background in the field of labor relations. The same services may be retained to assist the commission upon any subsequent hearing of the matter.

4. The board shall, if appropriate, recommend to the commission that a person investigated be disqualified.

Sec. 32. NRS 463A.060 is hereby amended to read as follows:

463A.060 1. If the board recommends that a person be disqualified, the commission shall serve upon the person and the labor organization for which the person is performing his function [a notice, a] or seeking to perform that function:

(a) A notice;

(b) A statement of the reasons for the recommendation ; and [three]

2. The notice of defense must read substantially as follows:

NOTICE OF DEFENSE

Instructions to Respondents: Two copies of this form should be filed with the Nevada gaming commission, Carson City, Nevada, within 15 days after service upon you of the enclosed complaint. The form must be signed by you or on your behalf. You will note that blanks are provided for any information you wish to supply.

Yes No

1. Do you request a hearing?.......... ¨............ ¨

2. Do you admit the facts stated in the complaint?..... ¨............ ¨

If you admit some of the facts stated in the complaint,

but deny others, please specify:

(space for answer)

3. Are there any defenses or explanations which you

believe the commission should consider?........ ¨............ ¨

If so, please specify:

(space for answer)

4. Do you wish to state any legal objections to the

complaint?..... ¨............ ¨

If so, please specify:

(space for answer)

Note: If you fail to file two copies of this form as speci

fied, the commission may proceed upon the complaint

without a hearing.

Sec. 33. NRS 465.070 is hereby amended to read as follows:

465.070 It is unlawful for any person:

1. To alter or misrepresent the outcome of a game or other event on which wagers have been made after the outcome is made sure but before it is revealed to the players.

2. To place, increase or decrease a bet or to determine the course of play after acquiring knowledge, not available to all players, of the outcome of the game or any event that affects the outcome of the game or which is the subject of the bet or to aid anyone in acquiring such knowledge for the purpose of placing, increasing or decreasing a bet or determining the course of play contingent upon that event or outcome.

3. To claim, collect or take, or attempt to claim, collect or take, money or anything of value in or from a gambling game, with intent to defraud, without having made a wager contingent thereon, or to claim, collect or take an amount greater than the amount won.

4. Knowingly to entice or induce another to go to any place where a gambling game is being conducted or operated in violation of the provisions of this chapter, with the intent that the other person play or participate in that gambling game.

5. To place or increase a bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet, including past-posting and pressing bets.

6. To reduce the amount wagered or cancel the bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet, including pinching bets.

7. To manipulate, with the intent to cheat, any component of a gaming device in a manner contrary to the designed and normal operational purpose for the component, including, but not limited to, varying the pull of the handle of a slot machine, with knowledge that the manipulation affects the outcome of the game or with knowledge of any event that affects the outcome of the game.

8. To offer, promise or give anything of value to anyone for the purpose of influencing the outcome of a race, sporting event, contest or game upon which a wager may be made, or to place, increase or decrease a wager after acquiring knowledge, not available to the general public, that anyone has been offered, promised or given anything of value for the purpose of influencing the outcome of the race, sporting event, contest or game upon which the wager is placed, increased or decreased.

9. To change or alter the normal outcome of any game played on an interactive gaming system or the way in which the outcome is reported to any participant in the game.

Sec. 34. 1. The Nevada gaming commission shall, on or before January 1, 2003, adopt regulations to carry out the amendatory provisions of section 16 of this act and transmit a copy of those regulations to each county and city licensing authority that issues work permits to work as a gaming employee.

2. The amendatory provisions of sections 13 and 16 of this act apply to any work permit to work as a gaming employee that is issued by the state gaming control board or a county or city licensing authority on or after January 1, 2003.

3. On or after January 1, 2003, a county or city licensing authority is prohibited from issuing a work permit to work as a gaming employee that does not comply with the provisions of this act and the regulations adopted by the Nevada gaming commission.

4. A work permit to work as a gaming employee that was issued before January 1, 2003, is valid until it expires or is revoked in accordance with the provisions of NRS 463.335 that remain in effect until January 1, 2003.

Sec. 35. The amendatory provisions of this act do not apply to offenses committed before July 1, 2001.

Sec. 36. 1. This section and sections 28 to 32, inclusive, of this act become effective upon passage and approval.

2. Sections 16 and 34 of this act become effective upon passage and approval for purposes related to the adoption and dissemination of regulations by the Nevada gaming commission and on January 1, 2003, for all other purposes.

3. Sections 1 to 12, inclusive, 14, 15, 17 to 27, inclusive, 33 and 35 of this act become effective on July 1, 2001.

4. Section 13 of this act becomes effective on January 1, 2003.”.

Amend the title of the bill to read as follows:

“AN ACT relating to gaming; authorizing the Nevada gaming commission to adopt regulations governing the licensing and operation of interactive gaming if the commission first makes certain determinations; providing that a license to operate interactive gaming may be issued only to resort hotels or certain other establishments holding nonrestricted licenses; providing for certain license fees relating to interactive gaming; providing that gross revenue received from interactive gaming is subject to taxation in the same manner as gross revenue received from other games; exempting the operation of interactive gaming from certain other fees and taxes; revising the computation of interest payable by the commission on the overpayment of certain fees and taxes; prohibiting a person from operating interactive gaming until the commission adopts regulations and unless the person procures and maintains all licenses required pursuant to the regulations; providing for the enforceability of gaming debts incurred pursuant to an interactive gaming system; providing for the licensure and regulation of manufacturers of interactive gaming systems and manufacturers of equipment associated with interactive gaming; revising provisions relating to persons who acquire a certain beneficial ownership in a publicly traded corporation registered with the commission; revising the definitions of “gaming employee” and “manufacturer” for the purposes of the Nevada Gaming Control Act; revising provisions governing applications for restricted licenses; providing for the issuance of statewide work permits for gaming employees; establishing a maximum fee for the issuance of such work permits; revising various provisions governing the listing, investigation and disqualification of personnel of a labor organization for gaming employees; prohibiting certain fraudulent acts concerning gaming; providing penalties; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Enacts provisions governing licensing and operation of interactive gaming and revises various provisions relating to gaming. (BDR 41‑244)”.

Mark A. James	Bernie Anderson
Mike McGinness	Dennis Nolan
Valerie Wiener	Sheila Leslie
Senate Conference Committee	Assembly Conference Committee

Senator James moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 466.

Remarks by Senators James, Care, Coffin, Neal, Titus, McGinness and Porter.

Senator Coffin disclosed that he has clients who would have an interest in interactive gaming.

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

Senator James:

Madam President, the conference committee’s reported amendment would provide for interactive gaming which is defined as the conduct of conducting games through the use of communications technology that allows the person utilizing money, checks, etc., to transfer to computer information to assist in the placing of a bet or wager. Interactive gaming does not apply to the operation of a legally operated race book or sports pool that approves communication technology. The amendment specifies that all gross revenue from interactive gaming received by the establishment licensed to operate interactive gaming must be attributed to the license and counted as part of the licensee’s gross revenue for purposes of computing the regular license fee. In addition, the manufacturer of interactive gaming systems, who is authorized by an agreement to receive a share of the revenue from interactive gaming systems, is liable to the licensed establishment for a portion of the license fee. The portion for which the manufacturer is liable is 6.25 percent of the amount of the revenue to which the manufacturer is entitled to pursuant to the agreement. The amendment also strengthens the prohibitions on illegal activity associated with fixed sporting events and interactive gaming. Further, the amendment revises the computation of interest payable by the Nevada Gaming Commission on the overpayment of certain fees and taxes. Lastly, the amendment also broadens the requirements for applying a finding of suitability to include persons who acquire a beneficial ownership in a publicly traded corporation registered with the commission.

Senator Care:

Thank you, Madam President. Assembly Bill No. 466 began as a work–card bill, and it, obviously, is not that any longer. The vote on this bill is a vote on whether the State is going to permit the Commission and the Board to draft regulations and develop a scheme or apparatus to have Internet gaming in this State on the assumption that there is no federal prohibition against it. Assembly Bill No. 466 was introduced as a work–card bill. It came out of the Assembly as a work–card bill. It came before our committee as a work–card bill. We heard it on May 17, and on May 21, we amended it.

That amendment is interesting, too. Originally, that amendment was supposed to be, or it was suggested that it would be, a part of an amendment of a bill, Assembly Bill No. 578, the so-called Internet gaming bill. As I recall it, the proponents of the Internet gaming agreed that the amendments, which then went into the work–card bill, did not properly go with an Internet gaming bill. When Assembly Bill No. 466 came out of the Judiciary Committee there was no reference to Internet gaming. Now, interestingly, after we have had the motion here today, it is clear what has happened.

We did pass, out of committee, Assembly Bill No. 578 on May 21 with an amendment. I was the only one to vote against it. Again, that is the Internet gaming bill. If you will recall, the proponents of Assembly Bill No. 578 put it on the Secretary’s desk. The proponents left it on the desk. The proponents let it stay on the desk, and it died on the desk. What has happened is that Assembly Bill No. 578 has been smuggled into a Conference Committee, and we have been deprived, in my judgment, of any opportunity to have public discussion and public debate about a very public concern and a very public issue.

This motion, today, is about two things. It is about Internet gaming, but it is also about the process itself. If Assembly Bill No. 578 had come up for a vote on General File, I was prepared to offer an amendment. In fact, there were several amendments that other people were prepared to offer. Mine was simple. It would have said, “No, we are not going to say you have to pay $500,000 for a license for Internet gaming.” I believe in equal opportunity. I believe in free competition. I believe in the forces of the marketplace. My amendment would have said, “Any non-restricted licensee, not just a resort, a brick and mortar resort, in a county in excess of 400,000 who can afford to plop down $500,000 would be allowed to have Internet gaming.” My amendment would have said, “Open to anyone with a non-restricted license.” It had nothing to do with counties. It also said, realistically, “We will have $5,000 fees.” They would be $5,000 application fees, $5,000 renewal fees and $5,000 license fees. That is what I was prepared to do with my amendment. But, unfortunately, we do not get to vote on that amendment so I do not have the vote, but I still have my voice.

Let me give you the reasoning behind what my amendment would have done. In the spirit of America, entrepreneurship, invisionaries, investment and risk, I want to read an excerpt from a book entitled the Maverick Spirit, Building the New Nevada edited by Richard O. Davies. There is a passage on page 208 that says, “There was a sameness on the Strip. Las Vegas was like the portrait of Dorian Grey. The world had been moving by for 20 years, but everything here stayed the same. You didn’t have to be a genius to be a top dog. All you had to do was walk into the present.” Those are the words of Steve Wynn, a visionary and entrepreneur if there ever was one.

My amendment was in the same spirit that is reflected in the passage I just read. The arguments that you are going to hear is that the investment of one or two exclusive resorts must be protected. That is the reason that the amendment, the Internet gaming bill, the conference report, whatever you want to call it, was drafted. I do not agree with that. There is nothing that says the Legislature has a duty to protect an investment. The marketplace does that, purely the marketplace. The theory is that if you have gone to the expense to build a brick and mortar resort in a county in excess of 400,000 populations, you have some right to have that investment protected at the expense of everybody else who wants to compete in a legal industry. Think about what that means. What if there had been a law that says you cannot sell books on the Internet unless you have a brick and mortar bookstore. You would never have heard of Amazon.com because that is the way Amazon.com. got started. You could only buy books from Barnes and Nobel and Borders if you had a law like that and it went to the Internet.

It is the same thing with the fees. The rational behind the fees, that I was going to offer in my amendment, is the same. The State should be entitled to make some revenue off of the application fees and license fees; $500,000, I do not think so. Not everyone can afford to do that. Not everyone at all. This amendment, this bill, this conference report contradicts all the spirit that made America what it is and the competitive marketplace that we enjoy today.

I will point out a few other things. We did not get the bill, as I say, until May 17 in Judiciary. We had limited discussion on a very important subject, in my mind. We did not have the opportunity to discuss several aspects of Internet gaming. What safeguards are there to keep it out of the hands of children? I know the experts say that those safeguards exist, but we never really got into it. At what rate should Internet gaming be taxed? We never got into that. This amendment says, basically, that it is going to be the same tax rate that is already in place for all gaming. But that presupposes that Internet gaming is the same as casino gaming. Where is the overhead on Internet gaming? How many bartenders, waitresses and maids do you have to hire to have Internet gaming? Why should they be taxed the same way? We will never have that discussion because, again, I did not have the opportunity to offer any kind of an amendment or to participate in any other public discussion. We never really discussed, to any great length, the federal laws, the Travel Act, the Wire Act, the Wager and Paraphernalia Act, the possibility of additional legislation from U.S. Senator Kyl that might outlaw Internet gaming altogether. Earlier in the Session, we had a bill from Senator Schneider that came before the Judiciary Committee. He wanted to statutorily redefine the definition of a resort hotel to include a timeshare project with 200 rooms or more. We amended that bill. The feeling was from the opponents of that bill that the bill was such a novel and complex subject we need to study it. We amended the bill and said we need to study timeshares, and we also said in that amended bill we need to study Internet gaming. The bill died on the Assembly side. There is no study of Internet gaming. It is before us, today, in the form of this motion. What this motion is asking us to do, in my judgment, is to give a legislatively sanctioned monopoly for an exclusive few in a state and in a city, in particular, that have always prided themselves on the competitive nature of the marketplace. Thank you.

Senator Coffin:

Thank you, Madam President. I have a client who is in this business who is eligible to participate in this endeavor. I have to declare this exists and also declare that I do not know what his opinion would be about this. He certainly has the money. The client is wealthy. The client is qualified in all of the aspects of it. But I am not going to abstain on this bill. In fact, I will vote “no” on the amendment, and I will tell you why, for the arguments advanced so much more eloquently than me by Senator Care.

What has this done for us? It just shows that only a few people can participate and that would include my client. I am sure you do not have to be huge to have a lot of money. But what happens to the small counties that were left out? They would like to be in it. Some of them had hoped to be able to offer gaming on the Internet. I am familiar with the Internet since I sell my little books on the Internet and have seen a lot of small businesses develop into big businesses. It would be nice in the rural counties if they could, in fact, have that advantage. This amendment does not give it to them. In the interest of fairness, and for all the other procedural and process reasons that Senator Care mentioned, I have to oppose this as being unfairly slanted to just a few people. I must say that not knowing that this was going to come back, I called one of the chief officers, if not the chief executive officer, of one of the corporations, which was a lead sponsor behind this legislation. I congratulated them for their effort after they had pulled the bill. I thought they had pulled it permanently due to criticism that was being heaped upon them and the lack of votes at that time. I did not know it was coming back. I do not know if it was his idea. He, at that time, said thank you, very much. I appreciated that, and I thought it was good sportsmanship. He did not indicate he was bringing it back. I am not sure that he did. I do not know if this came at his request or someone else’s request now. In any event, it is in front of us. I understand there will be a roll call vote on this, which I would sustain. I will also vote against the amendment, the conference report.

Senator Neal:

Madam President, I rise in opposition to the adoption of this measure for many of the same reasons stated by my colleagues on this side. One of the things that we must protect in this process, even if we win or lose, we must have the opportunity to debate fully an issue that is brought before this body. We must be able to amend, to offer suggestions, to offer change to the proposal before us. This particular measure, as it involves Internet gaming, has come to us with the prime purpose in mind that no amendment can be offered due to the procedure in which this proposal is before us. We have to adopt or not adopt. But we cannot offer any suggestions. What that says to me, Madam President and those who are pushing this measure, that what is good for gaming is good for the rest of the public. If gaming says it is all right, then it is all right. Let no one in this body who has a different view try to present that view on this particular question. I will not repeat what Senator Coffin and Senator Care have said relative to this measure, but Senator Care raised a very important question about whether or not necessary controls will exist to prevent children from gambling on the Internet.

Children of today are a very educated lot. They know how to access computers. They know how to play the games, but yet, these questions as to whether or not they are able to gamble are not being put before this body in terms of amendments that might be necessary to give direction to the Gaming Control Board or the Gaming Commission.

We are here either to vote this up or down. You either like it or you do not. This seems to be the position. It is bad policy for major issues to come before this Legislature and this body in this fashion. I will be voting against the bill, and I will also request that we have a roll call vote on this issue.

Senator Titus:

Thank you, Madam President. I, too, regret that this has come to us in this form instead of in the bill that now sits on the desk. Because then it could have been debated more openly, and it would not appear as though something was trying to be snuck through. I would say, though, that I voted for the Internet gaming bill in the Judiciary Committee. I know there are some reservations about it, but I believe we need to move forward in this area because technological developments occur quickly in today’s world. We had reassurances from the Gaming Control Board that they would be studying this carefully, keeping a close eye on it, a tight rein on it, and they would be putting in place regulations that would protect children and would make this process operate in a way that would meet Nevada’s gaming standards should the federal government allow it be put in place.

Senator James:

Thank you, Madam President. I appreciate the remarks of the Minority Leader and what she has just said and the way in which she speaks for her caucus. It is correct that the Internet gaming bill which is the one included in this amendment is the one, that was fully heard, debated, discussed, analyzed, with the public invited from the north and the south of the State and the rural areas to discuss it.

As you know, I am a lawyer, and in practicing law, I learned how to speak to make my arguments to a court. In doing that, there is a process by which one side of the case stands up and they can say whatever they want within the decorum of the courtroom about the case and make their points as well and as fervently as they can to the judge or the jury. Then the other side stands up, and they do the same thing. They can say whatever they wish. Sometimes there is a lot of rhetoric and other things added to try to make your point as emphatically as possible, but in a courtroom, what matters is the decision. It is the decision of either the court or the jury. What is said in that decision is what matters. It is what matters to the parties in the case. It is what matters in the outcome.

Unfortunately, I learned early on in this process that sometimes the outcome, the decision, isn’t the only thing that matters. Because I realized that after being here a few years, you could stand on this floor and say anything, no matter how incorrect, no matter how far off the mark it really is, as long as it sounds good. Maybe it has some pithy ring to it, and it will become a life of its own. On this bill, unfortunately, that is what we have heard. We have heard about the fact that there was no public debate of this measure. Every member of the House knows, and specifically the members of the Judiciary Committee know, that we had a lot of public debate. We had a hearing. We heard from the Gaming Control Board. We heard from the industry. We heard arguments between people who wanted to restrict this further than this bill does. This bill was a compromise with those who wanted to have it in certain counties with certain people. This bill makes it clear that in some of the rural counties and smaller areas, you can have a smaller investment, and you can still have Internet gaming.

The remark was made that no amendments were allowed to this. I do not think that is true. I do not remember any amendments being proposed. In the Judiciary Committee any member has the ability to make a motion, to come forth with an amendment, to offer an amendment to the committee. If my recollection is correct, the committee did not receive or reject any amendments of the nature that were discussed by the previous speaker. The policy set forth in this bill regards the investment in Nevada to establish an Internet gaming company that would be regulated by Nevada. It was a well thought out policy, and it is one that is going to benefit our State. I heard mention of bartenders, waitresses and maids. That is whom it would benefit along with those who would invest in the gaming industry. It is going to benefit those people who work in the gaming industry.

We have in Nevada a franchise. We used to have a monopoly on gaming. We do not have a monopoly on gaming any longer. There is gaming in 49 states, I think, gaming of various degrees. We haven’t got a monopoly, but what we still do have is a franchise. We are the gaming state. We are the State that has the most sophisticated, the best gaming controls in the country starting back to the modern area of gaming regulations with Governor Grant Sawyer up to today. We have the best gaming regulatory system in the world. As Internet gaming becomes something that is prevalent, something that other countries are going to be entertaining, where people can sit in one part of the world and gamble with a company that has a website located in another part of the world, it is important for Nevada to see what that is going to do for the future of its economy.

This bill says, that if you want to take advantage of the best gaming regulatory body and be able to assure those people who might be coming to your website to gamble that they are gambling with an honest company, with someone who has high integrity, then you can come to Nevada under certain conditions. Those conditions are that you invest in our State, in the people who live here and in the people who work here. That is what this bill insures. It insures that the gaming regulatory powers of Nevada will not be sold to the world at large with no return investment in Nevada. That is why this is a good policy. It is a good policy that has been fully and publicly debated with respect, as I indicated previously, to the various concerns and machinations that resulted in the other bill dying and this manifesting itself in a conference report. Nevertheless, what you have before you is what has gone through the entire legislative process through several committee hearings and now through a bipartisan conference committee that has on it both the Chairs of the Senate and Assembly Judiciary Committees. This is something that is a good policy and is fully aired. It is remarkable to stand on the floor and fully debate your views on something and say there hasn’t been full debate. But in this, we have had full debate, and we are also going to have a roll call vote. This has been fully discussed and made available for both the public and others to determine what is happening and what sort of policy is being considered and implemented.

Senator McGinness:

Thank you, Madam President. There was debate. I was concerned about the rural areas not being involved in this, and the Chairman of Judiciary mentioned it briefly, but if you look on page 4 of the amendment under paragraph (c) it talks about in all other counties. It does give opportunity for those smaller gaming establishments and the small counties to get into this.

Senator Neal:

Madam President, you understand when things like this have been greased and are going to slip through, but I have to take exception to some of the remarks that have been made by the Judiciary Chairman. Public policy is not made by a committee, it is recommended by committee. Policy is made on the floor of this House and on the floor of the next House. I do not think we have reached a point—yet, at least I hope not, that whenever a committee says something that is it; that is the law, and we cannot have any suggestion that can be offered on the floor of the Senate. It seems to be what is being said here is that once something has been handled in committee, no one else matters. No one else can offer any suggestions or amendments to what the committee has done. The committee is appointed by the Legislature. It is our duty here to make the public policy. We come from various areas, various backgrounds, and we have to have an opportunity to offer what we understand about certain issues, how those issues should go into law and how we should participate in what the public, we represent, should think about those issues. We have not had the opportunity on this floor to offer those amendments, and I disagree with the Chairman of the Judiciary Committee on that issue.

Senator Porter:

Thank you, Madam President. As I listened with interest this morning, I brought forward some of my notes from the committee hearing on the original bill which, I think, was Assembly Bill No. 578. I would like to share some of those comments that I made in committee, this morning. A vote for this bill is not a vote for Internet gaming. It is a vote for a coherent state policy with respect to Internet gaming. It may be that the study will determine that Internet gaming is not right for the Nevada gaming industry because the law and the status of technology will not meet the stringent criteria established in the bill. We talked at length about the impact of technology on business throughout the world. Technology is now driving our decisions. If, in fact, our criterion is not stringent enough, there will be no Internet gaming, and the decision will be based on solid comprehensive evidence. Maybe the study will determine that Internet gaming is right for Nevada, and its legislative criteria could be satisfied. If so, there will be Internet gaming governed by regulations based on a solid, comprehensive evidence. The State’s interest is served in both cases. I have long been intrigued by Internet gaming as it impacts technology around the world, but I also shared in committee my grave concerns as to the impact on individuals and how we would implement regulations. After spending some time in committee and doing research prior to the meeting, there are really two facts that I found. First, the continual change in the Internet gaming sector is so rapid that its dimensions and character may be different when we meet next session. It is not just gaming. It is other technology. It is going to be difficult to recognize those changes. For that reason, the discretion that was in Assembly Bill No. 578, which is now the amendment to Assembly Bill No. 466, affords the Nevada Gaming Commission the appropriate and necessary tools to do this job. Second, although interactive gaming may hold great economic promise, and we talked at length about that in committee for the industry and the State Treasury, we must be concerned about its potential to cause damage to our impeccable record around the world.

We talked at length about what is happening around the world. This is going to cause international scrutiny, and the first Internet casinos to operate pursuant to our Nevada licenses must operate properly. If there is a misstep, omission or a default, they will be magnified and widely publicized around the world. This Legislature and Nevada’s reputation is on the line. That is why we are asking that our professionals look at the regulations. Nevada’s first Internet gaming operators should be licensees that have established long records, and I believe that has been covered so I won’t go into the rest of my testimony. I believe this is the right thing to do.

Senators Neal, Titus and Care requested a roll call vote on Senator James’ motion.

Senators Raggio, Rhoads and Jacobsen moved the previous question.

Motion carried.

The question being on the adoption of the conference report concerning Assembly Bill No. 466.

Roll call on Senator James’ motion:

Yeas—17

Nays—Care, Coffin, Neal, Schneider—4.

The motion having received a two-thirds majority, Madam President declared it carried.

Madam President:

The first Conference Committee concerning Assembly Bill No. 500, 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. 15, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend sec. 2, page 2, by deleting lines 3 through 5 and inserting: “regarding each traffic stop. The information required”.

Amend sec. 2, page 2, line 11, by deleting “ethnicity and” and inserting “ethnicity,”.

Amend sec. 2, page 2, by deleting line 12 and inserting “approximate age.”.

Amend sec. 2, page 2, line 18, after “(d)” by inserting: “The number of persons who were in the motor vehicle when it was stopped.

(e)”.

Amend sec. 2, page 2, line 22, by deleting “(e)” and inserting “(f)”.

Amend sec. 2, page 2, line 25, by deleting “(f)” and inserting “(g)”.

Amend sec. 2, page 2, line 27, by deleting “(g)” and inserting “(h)”.

Maurice E. Washington	Bernie Anderson
Mike McGinness	Greg Brower
Valerie Wiener	Wendell P. Williams
Senate Conference Committee	Assembly Conference Committee

Senator Washington moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 500.

Remarks by Senator Washington.

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 1:20 p.m.

SENATE IN SESSION

At 1:24 p.m.

President Hunt presiding.

Quorum present.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Legislative Affairs and Operations, to which were re-referred Senate Bills Nos. 86, 141, 355, 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 Legislative Affairs and Operations, to which were referred Senate Concurrent Resolutions Nos. 3, 5, 9, 32, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and be adopted as amended.

Jon C. Porter, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, June 4, 2001

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day passed Assembly Bills Nos. 671, 672; Senate Bills Nos. 84, 458, 465, 497, 578; Senate Joint Resolution No. 7.

MOTIONS, RESOLUTIONS AND NOTICES

Senate Concurrent Resolution No. 3.

Resolution read.

The following amendment was proposed by the Committee on Legislative Affairs and Operations:

Amendment No. 1245.

Amend the resolution, page 2, line 27, after “4.” by inserting: “Exploring the links between suicide and co-occurring disorders; and

5.”.

Amend the resolution, page 2, line 31, after “suicide” by inserting: “, including suicide caused by or related to co-occurring disorders,”.

Amend the preamble of the resolution, page 1, between lines 7 and 8, by inserting:

“Whereas, Suicide can be caused by or related to co-occurring disorders, a group of conditions that consist of a combination of one or more mental disorders with alcohol or drug abuse; and”.

Senator Porter moved the adoption of the amendment.

Remarks by Senator Porter.

Amendment adopted.

Resolution ordered reprinted, engrossed and to the Resolution File.

Senate Concurrent Resolution No. 5.

Resolution read.

The following amendment was proposed by the Committee on Legislative Affairs and Operations:

Amendment No. 1246.

Amend the resolution, page 1, line 16, by deleting “Commission” and inserting: “Committee on Public Lands”.

Amend the resolution, page 1, line 19, by deleting “a”.

Amend the resolution, pages 1 and 2, by deleting lines 20 through 23 on page 1 and lines 1 and 2 on page 2, and inserting: “two additional Senators and two additional Assemblymen who are representative of various geographical areas of the state to the Legislative Committee on Public Lands for the purpose of this interim study; and be it further”.

Amend the resolution, page 2, by deleting lines 12 through 18 and inserting:

“Resolved, That the Legislative Committee on Public Lands consult with an advisory committee consisting of 11 members who are representative of various geographical areas of the state and are appointed by the Chairman of the Legislative Committee on Public Lands as follows:”.

Amend the resolution, page 2, line 30, by deleting “and”.

Amend the resolution, page 2, line 32, by deleting: “and be it further” and inserting:

“9. A member who represents the University and Community College System of Nevada, except the Desert Research Institute, and who has specific expertise in ground water;

10. A member who represents the Desert Research Institute and who has specific expertise in ground water; and

11. A member who represents the United States Geological Survey and who has specific expertise in ground water; and be it further”.

Amend the resolution, page 2, line 37, by deleting “subcommittee” and inserting: “Legislative Committee on Public Lands and its additional members appointed for the purpose of this study concerning ground water”.

Amend the resolution, page 2, line 39, by deleting “subcommittee;” and inserting: “Legislative Committee on Public Lands;”.

Amend the resolution, page 2, line 40, by deleting “Commission” and inserting: “Committee on Public Lands”.

Amend the resolution, page 2, line 41, by deleting “the study” and inserting: “this study concerning ground water”.

Amend the resolution, page 2, line 42, by deleting “Legislature.” and inserting: “Legislature; and be it further

Resolved, That the Legislative Committee on Public Lands is hereby directed to conduct an interim study of wilderness areas and wilderness study areas in this state; and be it further

Resolved, That the Legislative Commission shall appoint two additional Senators and two additional Assemblymen who are representative of various geographical areas of the state to the Legislative Committee on Public Lands for the purpose of this interim study; and be it further

Resolved, That the study must include, without limitation:

1. An examination of the manner in which wilderness areas and wilderness study areas are selected, managed and used and the laws, regulations and policies of the Federal Government relating to that selection, management and use;

2. Consideration of whether any area of this state is suitable for possible designation by Congress as a wilderness area; and

3. A review of any other issues or subjects concerning the establishment, management and use of a wilderness area or wilderness study area in this state; and be it further

Resolved, That any recommended legislation proposed by the Legislative Committee on Public Lands and its additional members appointed for the purpose of this study concerning wilderness areas and wilderness study areas must be approved by a majority of the members of the Senate and a majority of the members of the Assembly appointed to the Legislative Committee on Public Lands; and be it further

Resolved, That the Legislative Committee on Public Lands shall submit a report of the results of this study concerning wilderness areas and wilderness study areas and any recommendations for legislation to the 72nd session of the Nevada Legislature; and be it further

Resolved, That the Legislative Committee on Public Lands is hereby directed to study the establishment and maintenance of roads by various governmental entities and persons in this state and the use of those roads by members of the public; and be it further

Resolved, That the study must include, without limitation:

1. An examination of the meaning and effect of the provisions of Revised Statute 2477 or any other provision of state or federal law or regulation that recognizes or creates a right of way over public or private land in this state;

2. A review of the effects, if any, associated with the establishment, use and maintenance of roads in this state that are not claimed or maintained by a governmental entity or person in this state, including issues of liability of this state and political subdivisions of this state concerning the establishment, use and maintenance of those roads and the construction of new roads in urban and rural areas of this state; and

3. Consideration of any other issues relating to roads and the establishment, use and maintenance of roads in this state other than issues concerning the costs and practices of maintaining a road that are considered by the subcommittee appointed by the Legislative Committee to Study the Distribution Among Local Governments of Revenue from State and Local Taxes pursuant to the provisions of NRS 218.53884; and be it further

Resolved, That any recommended legislation proposed by the Legislative Committee on Public Lands concerning the establishment, use and maintenance of various roads in this state be approved by a majority of the members of the Senate and a majority of the members of the Assembly appointed to the committee; and be it further

Resolved, That the Legislative Committee on Public Lands shall submit a report of the results of this study concerning the establishment, use and maintenance of various roads in this state and any recommendations for legislation to the 72nd session of the Nevada Legislature.”.

Amend the preamble of the resolution, page 1, by deleting line 14 and inserting: “public health of this state; and

Whereas, The provisions of 16 U.S.C. §§ 1131 et seq., commonly referred to as the Wilderness Act, establish the National Wilderness Preservation System, which consists of areas of federal public land that are designated by Congress as wilderness areas; and

Whereas, In conjunction with the provisions of the Wilderness Act, the Secretary of the Interior may identify certain portions of federal public lands as wilderness study areas to determine the suitability of those areas for designation by Congress as wilderness areas; and

Whereas, Because the designation or identification of an area of federal public lands as a wilderness area or wilderness study area imposes significant restrictions concerning the management and use of land located in those areas, an examination must be made concerning the selection, management and use of those areas and the laws, regulations and policies of the Federal Government concerning that selection, management and use; and

Whereas, Numerous roads in this state are governed by the laws and regulations of the Federal Government or are subject to easements or other rights of way created by prescriptive use or judicial decisions involving private parties; and

Whereas, The provisions of federal Revised Statute 2477, formerly codified at 43 U.S.C. § 932, state the “[t]he right of way for the construction of highways over public lands, not reserved for public uses, is hereby granted”; and

Whereas, Although the provisions of Revised Statute 2477 were repealed by Congress on October 21, 1976, valid rights of way established before that date continue to exist, thereby creating controversies relating to the ownership, scope of use and liability for control and maintenance of those rights of way; and

Whereas, Similarly, the status of other roads in this state that are not specifically recognized in statute or claimed or maintained by a governmental entity or person is often in doubt, thereby creating controversies and issues concerning liability for injury to persons who use those roads; now, therefore, be it”.

Amend the title of the resolution to read as follows:

“SENATE CONCURRENT RESOLUTION—Directing the Legislative Committee on Public Lands to conduct interim studies concerning the quality and quantity of ground water, wilderness areas and wilderness study areas in this state and the establishment, use and maintenance of certain roads in this state.”.

Amend the summary of the resolution to read as follows:

“SUMMARY—Directs Legislative Committee on Public Lands to conduct certain interim studies. (BDR R‑310)”.

Senator Porter moved the adoption of the amendment.

Remarks by Senator Porter.

Amendment adopted.

Resolution ordered reprinted, engrossed and to the Resolution File.

Senate Concurrent Resolution No. 9.

Resolution read.

The following amendment was proposed by the Committee on Legislative Affairs and Operations:

Amendment No. 1249.

Amend the resolution, page 1, by deleting lines 13 through 21 and inserting: “Concurring, That the Nevada Legislature hereby urges the Department of Transportation to conduct a study of the feasibility of constructing a highway between Mesquite and Caliente that includes, without limitation:”.

Amend the resolution, page 2, by deleting lines 3 through 9 and inserting:

“Resolved, That the Secretary of the Senate prepare and transmit a copy of this resolution to the Director of the Department of Transportation.”.

Amend the title of the resolution, first and second lines, by deleting: “Directing the Legislative Commission to conduct an interim” and inserting: “Urging the Department of Transportation to conduct a”.

Amend the summary of the resolution to read as follows:

“SUMMARY—Urges Department of Transportation to conduct study of feasibility of constructing highway between Mesquite and Caliente. (BDR R‑739)”.

Senator Porter moved the adoption of the amendment.

Remarks by Senator Porter.

Amendment adopted.

Resolution ordered reprinted, engrossed and to the Resolution File.

Senate Concurrent Resolution No. 32.

Resolution read.

The following amendment was proposed by the Committee on Legislative Affairs and Operations:

Amendment No. 1250.

Amend the resolution, page 1, line 24, by deleting “Legislative Commission” and inserting: “Interim Finance Committee”.

Amend the resolution, page 1, by deleting line 25 and inserting: “appoint a study committee, consisting of three members of the Senate and three”.

Amend the resolution, page 2, lines 1, 8 and 14, before “committee” by inserting “study”.

Amend the resolution, page 2, line 26, by deleting “Way” and inserting: “Way, the Nevada Community Enrichment Center”.

Amend the resolution, page 2, line 28, before “committee” by inserting “study”.

Amend the resolution, page 2, between lines 32 and 33, by inserting:

“Resolved, That it is the intent of the Nevada Legislature for the results of the study to be used to develop a comprehensive, effective working plan to ensure that qualified persons with mental and physical disabilities and pervasive developmental disorders receive services in the least restrictive setting appropriate to their needs; and be it further”.

Amend the resolution, page 2, lines 34 and 36, before “committee” by inserting “study”.

Amend the preamble of the resolution, page 1, line 6, by deleting “approximately 13” and inserting: “greater than 21”.

Amend the preamble of the resolution, page 1, between lines 7 and 8, by inserting:

“Whereas, The United States Supreme Court has determined that the unnecessary segregation and institutionalization of persons with disabilities constitutes discrimination and violates the requirements for integration set forth in the Americans with Disabilities Act; and

Whereas, It is the goal of the State of Nevada to enable persons with disabilities to live in the most integrated setting appropriate to their needs; and”.

Amend the preamble of the resolution, page 1, line 19, by deleting “Resources”.

Amend the title of the resolution, first line, by deleting “Legislative Commission” and inserting: “Interim Finance Committee”.

Amend the summary of the resolution to read as follows:

“SUMMARY—Directs Interim Finance Committee to conduct interim study concerning Nevada’s program for providing services to persons with disabilities. (BDR R‑937)”.

Amend the resolution as a whole by adding the following senator as a primary joint sponsor: Senator Rawson.

Senator Porter moved the adoption of the amendment.

Remarks by Senators Raggio and Porter.

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

Motion carried.

Senate in recess at 1:29 p.m.

SENATE IN SESSION

At 1:30 p.m.

President Hunt presiding.

Quorum present.

Senator Porter moved to withdraw Amendment No. 1250 to Senate Concurrent Resolution No. 32.

Remarks by Senator Porter.

Motion carried.

Senator Porter moved that Senate Concurrent Resolution No. 32 be placed on the Resolution File on the next agenda.

Motion carried.

INTRODUCTION, FIRST READING AND REFERENCE

Assembly Bill No. 671.

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

Motion carried.

Assembly Bill No. 672.

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

Motion carried.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Raggio moved to dispense with the reading of the amendments.

Remarks by Senator Raggio.

Motion carried.

SECOND READING AND AMENDMENT

Assembly Bill No. 378.

Bill read second time.

The following amendment was proposed by the Committee on Finance:

Amendment No. 1237.

Amend section 1, page 1, by deleting lines 1 through 10 and inserting:

“Section 1. 1. There is hereby appropriated from the interest earned on the trust fund for public health created pursuant to NRS 439.605, as determined on July 1, 2001, to the Interim Finance Committee an amount equal to 25 percent of the available interest that has been earned on the trust fund, as determined on July 1, 2001, or the sum of $250,000, whichever is less. If the Interim Finance Committee approves the policy established by the Board of Regents of the University of Nevada pursuant to subsection 2, the Interim Finance Committee shall distribute the money appropriated by this subsection to the Board of Regents for the financial support of the program to provide loans to nursing students pursuant to NRS 396.890 to 396.898, inclusive.

2. Notwithstanding the provisions of NRS 396.890 to 396.898, inclusive, to the contrary, the Board of Regents shall establish a policy for administration of the loans pursuant to this section. The policy must include, without limitation:

(a) The criteria for eligibility for receipt of a loan pursuant to this section;

(b) The manner by which eligible students may apply for a loan;

(d) A requirement that all payments of principal and interest on all loans made pursuant to this section must be deposited in the trust fund for public health created pursuant to NRS 439.605.

3. The Board of Regents shall submit the policy established pursuant to subsection 2 to the Interim Finance Committee for approval. If the Interim Finance Committee approves the policy, the Interim Finance Committee shall distribute the money appropriated by subsection 1 to the Board of Regents.

4. If the money appropriated by subsection 1 is distributed to the Board of Regents, the Board of Regents shall use the money to provide loans for fees, books and living expenses pursuant to the:

(a) Policy approved by the Interim Finance Committee pursuant to subsection 3; and

(b) Provisions of NRS 396.890 to 396.898, inclusive, to the extent that those provisions do not conflict with the policy approved by the Interim Finance Committee, to students who are enrolled in”.

Amend section 1, page 2, line 3, by deleting “3.” and inserting “5.”.

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. 564.

Bill read second time.

The following amendment was proposed by the Committee on Finance:

Amendment No. 1228.

Amend section 1, page 2, line 2, by deleting “shall” and inserting “may”.

Amend section 1, page 2, by deleting lines 32 through 39 and inserting:

“[(g)] (h) Appoint an independent certified public accountant. The accountant shall:

(1) Provide anannual audit of the program; and

(2) Report to the board and the interim retirement and benefits committee of the legislature created pursuant to NRS 218.5373.

[(h)] (i) Appoint an attorney who specializes in employee benefits. The attorney shall:

(1) Perform a biennial review of the program to determine whether the program complies with federal and state laws relating to taxes and employee benefits; and

(2) Report to the board and the interim retirement and benefits committee of the legislature created pursuant to NRS 218.5373.”.

Amend section 1, page 3, line 15, by deleting: “state employee pursuant to this title” and inserting “public employee”.

Amend sec. 2, page 3, line 37, by deleting “unless provision” and inserting: “unless:

(a) Provision”.

Amend sec. 2, page 3, between lines 40 and 41, by inserting:

“(b) The rates set forth in the contract are based on the commingled claims experience of active and retired state officers and employees and their dependents.”.

Senator Raggio moved the adoption of the amendment.

Amendment adopted.

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

GENERAL FILE AND THIRD READING

Senate Bill No. 86.

Bill read third time.

The following amendment was proposed by the Committee on Legislative Affairs and Operations:

Amendment No. 1241.

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

Amend sec. 2, page 1, by deleting lines 18 and 19 and inserting:

“Section 1. The Legislative Committee on Criminal Justice shall conduct a study concerning the use of police powers on public school grounds and at school activities. The study must include, without limitation, the following topics:”.

Amend sec. 3, page 2, by deleting line 8 and inserting: “Sec. 2. The Legislative Committee on Criminal Justice shall submit a report of its”.

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

Amend sec. 4, page 2, by deleting lines 15 through 18 and inserting:

“Sec. 3. This act becomes effective on July 1, 2001, only if Senate Bill No. 286 of this session is enacted by the Legislature.”.

Amend the title of the bill to read as follows:

“AN ACT relating to school police; directing the Legislative Committee on Criminal Justice to conduct a study concerning the use of police powers on public school grounds and at school activities; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY¾Directs Legislative Committee on Criminal Justice to conduct study concerning use of police powers on public school grounds and at school activities. (BDR S-823)”.

Senator Porter moved the adoption of the amendment.

Remarks by Senator Porter.

Amendment adopted.

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

Senate Bill No. 141.

Bill read third time.

The following amendment was proposed by the Committee on Legislative Affairs and Operations:

Amendment No. 1242.

Amend section 1, page 2, by deleting lines 1 through 10 and inserting:

“Section 1. 1. The State Fire Marshal Division of the Department of Public Safety, with the assistance of the State Board of Fire Services and the Fire Service Standards and Training Committee, shall conduct a study of the State Fire Marshal Division of the Department of Public Safety. The study must include, without”.

Amend section 1, page 2, lines 14, 16, 18 and 21, by deleting: “Motor Vehicles and”.

Amend section 1, page 2, by deleting line 23 and inserting:

“2. The Department of Public Safety shall provide”.

Amend section 1, page 2, line 24, by deleting “interim”.

Amend sec. 2, page 2, line 25, by deleting:

“1. The Legislative Commission” and inserting: “The State Fire Marshal Division of the Department of Public Safety”.

Amend sec. 2, page 2, lines 26 and 28, by deleting “interim”.

Amend sec. 2, page 2, by deleting lines 30 through 33.

Amend the preamble of the bill, page 1, lines 3, 7 and 10, by deleting: “Motor Vehicles and”.

Amend the title of the bill to read as follows:

“AN ACT relating to fire services; requiring a study of the State Fire Marshal Division of the Department of Public Safety; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Requires study of State Fire Marshal Division of Department of Public Safety. (BDR S‑404)”.

Senator Porter moved the adoption of the amendment.

Remarks by Senator Porter.

Amendment adopted.

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

Senate Bill No. 355.

Bill read third time.

The following amendment was proposed by the Committee on Legislative Affairs and Operations:

Amendment No. 1244.

Amend sec. 2, page 1, line 23, by deleting “both”.

Amend sec. 2, page 2, line 1, after “laws” by inserting “and regulations”.

Amend sec. 2, page 2, line 5, by deleting “business;” and inserting: “business and comply with some of the same regulations;”.

Amend the preamble of the bill, page 1, line 7, after “tax” by inserting “and regulatory”.

Senator Porter moved the adoption of the amendment.

Remarks by Senator Porter.

Amendment adopted.

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

Senate Bill No. 476.

Bill read third time.

Roll call on Senate Bill No. 476:

Yeas—21.

Nays—None.

Senate Bill No. 476 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 513.

Bill read third time.

Roll call on Assembly Bill No. 513:

Yeas—21.

Nays—None.

Assembly Bill No. 513 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 515.

Bill read third time.

Roll call on Assembly Bill No. 515:

Yeas—21.

Nays—None.

Assembly Bill No. 515 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 661.

Bill read third time.

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

Amendment No. 1231.

Amend sec. 21, page 7, by deleting lines 30 through 34 and inserting: “counties, the aggregate amount of energy that all such eligible customers”.

Amend sec. 21, page 8, by deleting lines 18 through 22 and inserting:

“4. Notwithstanding any specific statute to the contrary, information concerning the price of the energy, capacity and ancillary services and any other terms or conditions of the contract that the commission determines are commercially sensitive:

(a) Must not be disclosed by the commission except to the regulatory operations staff of the commission, the consumer’s advocate and his staff and the electric utility for the purposes of carrying out the provisions of this section; and

(b) Shall be deemed to be confidential for all other purposes, and the commission shall take such actions as are necessary to protect the confidentiality of such information.”.

Amend sec. 21, page 8, line 23, by deleting “4.” and inserting “5.”.

Amend sec. 21, page 8, between lines 39 and 40 by inserting:

“6. The provisions of this section do not exempt the electric utility, in whole or in part, from the requirements imposed on the electric utility pursuant to sections 3 to 12, inclusive, of Senate Bill No. 372 of this session to comply with its portfolio standard for renewable energy. The commission shall not take any actions pursuant to this section that conflict with or diminish those requirements.

7. As used in this section, “consumer’s advocate” means the consumer’s advocate of the bureau of consumer protection in the office of the attorney general.”.

Amend sec. 23, page 9, by deleting lines 17 through 19 and inserting: “not have a time-of-use meter at that point of delivery. If the eligible customer is:

(a) A nongovernmental commercial or industrial end-use customer, the eligible customer or the provider shall pay all costs for the time-of-use meter and for installation of the time-of-use meter by the electric utility.

(b) A governmental entity, the provider shall pay all costs for the time-of-use meter and for installation of the time-of-use meter by the electric utility.”.

Amend the bill as a whole by deleting sections 27 through 36 and the text of repealed sections and adding new sections designated sections 27 through 113 and the text of repealed sections, following sec. 26, to read as follows:

“Sec. 27. Chapter 703 of NRS is hereby amended by adding thereto a new section to read as follows:

1. In any contested case pending before the commission, the regulatory operations staff of the commission may, without filing a petition for leave to intervene:

(a) Appear and participate in the contested case as an independent party; and

(b) Be represented by legal counsel in the contested case.

2. A commissioner may not discuss with a member of the regulatory operations staff of the commission any substantive issues of fact or law concerning a contested case pending before the commission except upon notice to all parties to the contested case and an opportunity for all such parties to participate.

3. As used in this section, “contested case” has the meaning ascribed to it in NRS 233B.032.

Sec. 28. NRS 703.030 is hereby amended to read as follows:

703.030 1. The commission consists of [three] five commissioners appointed by the governor . [for terms of] After the initial terms, the term of each commissioner is 4 years.

2. The governor shall appoint [as members of the commission persons] :

(a) One commissioner to represent the general public.

(b) Four commissioners who have at least 2 years of experience in one or more of the following fields:

[(a)] (1) Accounting.

[(b)] (2) Business administration.

[(c)] (3) Finance or economics.

[(d)] (4) Administrative law.

[(e)] (5) Professional engineering.

Not more than two of the commissioners appointed pursuant to this paragraph may be from the same field of experience.

3. Not more than [two] three of the commissioners may be [:

(a) Members] members of the same political party.

[(b) From the same field of experience.]

4. A vacancy on the commission must be filled for the remainder of the unexpired term in the same manner as the original appointment.

Sec. 29. NRS 703.110 is hereby amended to read as follows:

703.110 1. [The] Except as otherwise provided in subsection 2, a majority of the commissioners [have] has full power to act in all matters within [their jurisdiction.] the jurisdiction of the commission and shall exercise all the powers of the commission.

2. If [two] a majority of the commissioners are disqualified or if there are [two] vacancies within the [commission,] offices of a majority of the commissioners, the remaining commissioners or, if only one commissioner is remaining, the remaining commissioner [or] has full power to act in all matters within the jurisdiction of the commission and shall exercise all the powers of the commission.

3. Except as otherwise provided in this chapter, all hearings and meetings conducted by the commission must be open to the public.

Sec. 30. NRS 703.130 is hereby amended to read as follows:

703.130 1. The commission shall appoint a deputy commissioner who shall serve in the unclassified service of the state.

2. The commission shall appoint a secretary who shall perform such administrative and other duties as are prescribed by the commission. The commission shall also appoint an assistant secretary.

3. The commission may employ such other clerks, experts or engineers as may be necessary.

4. Except as otherwise provided in subsection 5, the commission:

(a) May appoint one or more hearing officers for a period specified by the commission to conduct proceedings or hearings that may be conducted by the commission pursuant to chapters 704, 704A, 705, 708 and 711 of NRS [.] and sections 3 to 26, inclusive, of this act.

(b) Shall prescribe by regulation the procedure for appealing a decision of a hearing officer to the commission.

5. The commission shall not appoint a hearing officer to conduct proceedings or hearings :

(a) In any matter pending before the commission pursuant to sections 8 to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

(b) In any matter pending before the commission pursuant to NRS 704.070 to 704.110, inclusive, and sections 41 to 46, inclusive, of this act in which an electric utility has filed a general rate application or an application to clear its deferred accounts.

6. As used in this section, “electric utility” has the meaning ascribed to it in section 19 of Assembly Bill No. 369 of this session.

Sec. 31. NRS 703.164 is hereby amended to read as follows:

703.164 1. The commission may employ, or retain on a contract basis, legal counsel who shall:

(a) Except as otherwise provided in subsection 2, be counsel and attorney for the commission in all actions, proceedings and hearings.

(b) Prosecute in the name of the [public utilities commission of Nevada] commission all civil actions for the enforcement of chapters 704, 704A, 705 and 708 of NRS and sections 3 to 26, inclusive, of this act and for the recovery of any penalty or forfeiture provided for therein.

(c) Generally aid the commission in the performance of its duties and the enforcement of chapters 704, 704A, 705 and 708 of NRS [.] and sections 3 to 26, inclusive, of this act.

2. Each district attorney shall:

(a) Prosecute any violation of chapter 704, 704A, 705, 708 or 711 of NRS for which a criminal penalty is provided and which occurs in his county.

(b) Aid in any investigation, prosecution, hearing or trial held under the provisions of chapter 704, 704A, 705, 708 or 711 of NRS and, at the request of the commission or its legal counsel, act as counsel and attorney for the commission.

3. The attorney general shall, if the district attorney fails or refuses to do so, prosecute all violations of the laws of this state by public utilities under the jurisdiction of the commission and their officers, agents and employees.

4. The attorney general is not precluded from appearing in or moving to intervene in any action and representing the interest of the State of Nevada in any action in which the commission is a party and is represented by independent counsel.

Sec. 32. NRS 703.196 is hereby amended to read as follows:

703.196 1. Any books, accounts, records, minutes, papers and property of any public utility that are subject to examination pursuant to NRS 703.190 or 703.195 and are made available to the commission, any officer or employee of the commission, the bureau of consumer protection in the office of the attorney general or any other person under the condition that the disclosure of such information to the public be withheld or otherwise limited, must not be disclosed to the public unless the commission first determines that the disclosure is justified.

2. The commission shall take such actions as are necessary to protect the confidentiality of such information, including, without limitation:

(a) Granting such protective orders as it deems necessary; and

(b) Holding closed hearings to receive or examine such information.

3. If the commission closes a hearing to receive or examine such information, it shall:

(a) Restrict access to the records and transcripts of such hearings without the prior approval of the commission or an order of a court of competent jurisdiction authorizing access to the records or transcripts; and

(b) Prohibit any participant at such a hearing from disclosing such information without the prior authorization of the commission.

4. A representative of the regulatory operations staff of the commission and the bureau of consumer protection:

(a) May attend any closed hearing held pursuant to this section; and

(b) Have access to any records or other information determined to be confidential pursuant to this section.

5. The commission shall consider in an open meeting whether the information reviewed or examined in a closed hearing may be disclosed without revealing the confidential subject matter of the information. To the extent the commission determines the information may be disclosed, the information must become a part of the records available to the public. Information which the commission determines may not be disclosed must be kept under seal.

Sec. 33. NRS 703.320 is hereby amended to read as follows:

703.320 1. In any matter pending before the commission, if a hearing is required by a specific statute or is otherwise required by the commission, the commission shall give notice of the pendency of the matter to all persons entitled to notice of the hearing. The commission shall by regulation specify:

(a) The manner of giving notice in each type of proceeding; and

(b) The persons entitled to notice in each type of proceeding.

2. The commission shall not dispense with a hearing [in] :

(a) In any matter pending before the commission pursuant to sections 8 to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; or

(b) Except as otherwise provided in subsection 4 of NRS 704.100, in any matter pending before the commission pursuant to NRS 704.070 to 704.110, inclusive, and sections 41 to 46, inclusive, of this act in which an electric utility has filed a general rate application or an application to clear its deferred accounts.

3. In any other matter pending before the commission, the commission may dispense with a hearing and act upon the matter pending unless, within 10 days after the date of the notice of pendency, a person entitled to notice of the hearing files with the commission a request that the hearing be held. If such a request for a hearing is filed, the commission shall give at least 10 days’ notice of the hearing.

4. As used in this section, “electric utility” has the meaning ascribed to it in section 19 of Assembly Bill No. 369 of this session.

Sec. 34. NRS 703.330 is hereby amended to read as follows:

703.330 1. A complete record must be kept of all hearings before the commission . [, and all] All testimony at such hearings must be taken down by the stenographer appointed by the commission, or, under the direction of any competent person appointed by the commission, must be reported by sound recording equipment in the manner authorized for reporting testimony in district courts. The testimony reported by a stenographer must be transcribed, and the transcript filed with the record in the matter. The commission may by regulation provide for the transcription or safekeeping of sound recordings. Cost of recording and transcribing testimony at any hearing, except those hearings ordered pursuant to NRS 703.310 , must be paid by the applicant. If a complaint is made pursuant to NRS 703.310 by a customer or by a political subdivision of the state or municipal organization, the complainant is not liable for any costs. Otherwise, if there are several applicants or parties to any hearing, the commission may apportion the costs among them in its discretion.

2. [Whenever any complaint] If a petition is served upon the commission as provided in NRS 703.373 for the bringing of an action against the commission, before the action is reached for trial, the commission shall file a certified copy of all proceedings and testimony taken with the clerk of the court in which the action is pending.

3. A copy of the proceedings and testimony must be furnished to any party, on payment of a reasonable amount, to be fixed by the commission, and the amount must be the same for all parties.

4. The provisions of this section do not prohibit the commission from [restricting] :

(a) Restricting access to the records and transcripts of a hearing pursuant to paragraph (a) of subsection 3 of NRS 703.196.

(b) Protecting the confidentiality of information pursuant to section 20 or 21 of this act.

Sec. 35. NRS 703.374 is hereby amended to read as follows:

703.374 1. A court of competent jurisdiction, after hearing, may issue an injunction suspending or staying any final order of the commission if:

(a) The applicant has filed a motion for a preliminary injunction;

(b) The applicant has served the motion on the commission and other interested parties within 20 days after the rendition of the order on which the complaint is based;

(c) The court finds there is a reasonable likelihood that the applicant will prevail on the merits of the matter and will suffer irreparable injury if injunctive relief is not granted; and

(d) The applicant files a bond or other undertaking to secure the adverse parties in such manner as the court finds sufficient.

2. The decision of the commission on each matter considered shall be deemed reasonable and just until set aside by the court . [, and in] In all actions for an injunction or [otherwise] for any other relief, the burden of proof is upon the party attacking or resisting the order of the commission to show by clear and satisfactory evidence that the order is unlawful [,] or unreasonable . [, as the case may be.]

3. If an injunction is granted by the court and the order complained of is one which [permanently suspends] :

(a) Disapproves a public utility’s proposed changes in a schedule of rates [and charges or a] , or any part thereof , [filed by any public utility] pursuant to NRS 704.070 to 704.110, inclusive, [or which otherwise] and sections 41 to 46, inclusive, of this act; or

(b) Otherwise prevents the proposed changes in the schedule , or any part thereof , from taking effect,

the public utility complaining may [keep in effect or put] place into effect [, as the case may be, the suspended] the proposed changes in the schedule , or any part thereof , pending final determination by the court having jurisdiction, by filing a bond with the court in such an amount as the court may fix, conditioned upon the refund to persons entitled to the excess amount if the [rate or rates so suspended] proposed changes in the schedule, or any part thereof, are finally determined by the court to be excessive.

Sec. 36. NRS 703.377 is hereby amended to read as follows:

703.377 1. [No] Any certificate of public convenience and necessity, permit or license issued or transferred in accordance with the [terms] provisions of NRS [704.005] 704.001 to 704.751, inclusive, is [either] not a franchise or irrevocable.

2. Upon receipt of a written complaint or on its own motion, the commission may, after investigation and hearing, revoke any certificate, permit or license, [but as to] except that the commission may not revoke the certificate of a public utility [only if] unless the commission has arranged for another public utility to provide the service for which the certificate was granted.

3. [The proceedings thereafter are governed by] If the commission revokes any certificate, permit or license, the person who held the certificate, permit or license may seek judicial review pursuant to the provisions of NRS 703.373 to 703.376, inclusive.

Sec. 37. Chapter 704 of NRS is hereby amended by adding thereto the provisions set forth as sections 38 to 46, inclusive, of this act.

Sec. 38. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 39. “Consumer’s advocate” means the consumer’s advocate of the bureau of consumer protection in the office of the attorney general.

Sec. 40. “Renewable energy” has the meaning ascribed to it in section 7 of Senate Bill No. 372 of this session.

Sec. 41. As used in NRS 704.070 to 704.110, inclusive, and sections 41 to 46, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 42, 43 and 44 of this act have the meanings ascribed to them in those sections.

Sec. 42. “Application to make changes in any schedule” and “application” include, without limitation:

1. A general rate application;

2. An application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale; and

3. An application to clear deferred accounts.

Sec. 43. “Rate” means any individual or joint rate, toll or charge imposed by a public utility for a service performed or product furnished by the public utility.

Sec. 44. “Schedule” means any schedule that establishes or otherwise sets the rates for a public utility and any individual or joint rule, regulation, practice, classification or measurement that in any manner affects those rates.

Sec. 45. For the purposes of NRS 704.070 to 704.110, inclusive, and sections 41 to 46, inclusive, of this act, a public utility shall be deemed to make changes in a schedule if the public utility implements a new schedule or amends an existing schedule.

Sec. 46. 1. The commission shall conduct a consumer session to solicit comments from the public in any matter pending before the commission pursuant to NRS 704.070 to 704.110, inclusive, and sections 41 to 46, inclusive, of this act in which:

(a) A public utility has filed a general rate application, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale or an application to clear its deferred accounts; and

(b) The changes proposed in the application will result in an increase in annual gross operating revenue, as certified by the applicant, in an amount that will exceed $50,000 or 10 percent of the applicant’s annual gross operating revenue, whichever is less.

2. In addition to the case-specific consumer sessions required by subsection 1, the commission shall, during each calendar year, conduct at least one general consumer session in the county with the largest population in this state and at least one general consumer session in the county with the second largest population in this state. At each general consumer session, the commission shall solicit comments from the public on issues concerning public utilities. Not later than 60 days after each general consumer session, the commission shall submit the record from the general consumer session to the legislative commission.

Sec. 47. NRS 704.005 is hereby amended to read as follows:

704.005 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 704.010 to 704.030, inclusive, and sections 38 and 39 of this act have the meanings ascribed to them in those sections.

Sec. 48. NRS 704.033 is hereby amended to read as follows:

704.033 1. The commission shall levy and collect an annual assessment from all public utilities subject to the jurisdiction of the commission.

2. Except as otherwise provided in subsection 3, the annual assessment must be:

(a) For the use of the commission, not more than 3.50 mills; and

(b) For the use of the consumer’s advocate , [of the bureau of consumer protection in the office of the attorney general,] not more than 0.75 mills,

on each dollar of gross operating revenue derived from the intrastate operations of such utilities in the State of Nevada, except that the minimum assessment in any 1 year must be $10. The total annual assessment must be not more than 4.25 mills.

3. For railroads the total annual assessment must be the amount levied for the use of the commission pursuant to paragraph (a) of subsection 2. The levy for the use of the consumer’s advocate must not be assessed against railroads.

4. The gross operating revenue of the utilities must be determined for the preceding calendar year. In the case of:

(a) Telephone utilities, except as otherwise provided in paragraph (c), the revenue shall be deemed to be all intrastate revenues that are considered by the commission for the purpose of establishing rates.

(b) Railroads, the revenue shall be deemed to be the revenue received only from freight and passenger intrastate movements.

(c) All public utilities, the revenue does not include the proceeds of any commodity, energy or service furnished to another public utility for resale.

Sec. 49. NRS 704.035 is hereby amended to read as follows:

704.035 1. On or before June 1 of each year, the commission shall mail revenue report forms to all public utilities under its jurisdiction, to the address of those utilities on file with the commission. The revenue report form serves as notice of the commission’s intent to assess the utilities, but failure to notify any utility does not invalidate the assessment with respect thereto.

2. Each public utility subject to the provisions of NRS 704.033 shall complete the revenue report referred to in subsection 1, compute the assessment and return the completed revenue report to the commission accompanied by payment of the assessment and any penalty due, pursuant to the provisions of subsection 5.

3. The assessment is due on July 1 of each year, but may, at the option of the public utility, be paid quarterly on July 1, October 1, January 1 and April 1.

4. The assessment computed by the utility is subject to review and audit by the commission, and the amount of the assessment may be adjusted by the commission as a result of the audit and review.

5. Any public utility failing to pay the assessment provided for in NRS 704.033 on or before August 1, or if paying quarterly, on or before August 1, October 1, January 1 or April 1, shall pay, in addition to such assessment, a penalty of 1 percent of the total unpaid balance for each month or portion thereof that the assessment is delinquent, or $10, whichever is greater, but no penalty may exceed $1,000 for each delinquent payment.

6. When a public utility sells, transfers or conveys substantially all of its assets or certificate of public convenience and necessity, the commission shall determine, levy and collect the accrued assessment for the current year not later than 30 days after the sale, transfer or conveyance, unless the transferee has assumed liability for the assessment. For purposes of this subsection the jurisdiction of the commission over the selling, transferring or conveying public utility continues until it has paid the assessment.

7. The commission may bring an appropriate action in its own name for the collection of any assessment and penalty which is not paid as provided in this section.

8. The commission shall, on a quarterly basis, transfer to the account for the consumer’s advocate [of the bureau of consumer protection in the office of the attorney general] that portion of the assessments collected which belongs to the consumer’s advocate.

Sec. 50. NRS 704.070 is hereby amended to read as follows:

704.070 Unless exempt under the provisions of NRS 704.075 , 704.095 or 704.097:

1. [Every] Each public utility shall file with the commission, within a time to be fixed by the commission, a copy of all schedules [which] that are currently in force for the public utility. Such schedules must be open to public inspection . [, showing all rates, tolls and charges which it has established and which are in force at the time for any service performed or product furnished in connection therewith by any public utility controlled and operated by it.

2. All rules or regulations that in any manner affect the rates charged or to be charged for any service or product must be filed with that schedule.]

2. A copy of each schedule that is currently in force for the public utility, or so much of the schedule as the commission deems necessary for inspection by the public, must be:

(a) Printed in plain type and posted in each office of the public utility where payments are made to the public utility by its customers; and

(b) Open to inspection by the public and in such form and place as to be readily accessible to and conveniently inspected by the public.

Sec. 51. NRS 704.075 is hereby amended to read as follows:

704.075 1. As used in this section, with respect to the sale of natural gas:

(a) “Generating customer” means a customer who generates electricity by burning natural gas.

(b) “Industrial customer” means a customer engaged primarily in manufacturing or processing which changes raw or unfinished materials into another form or creates another product.

(c) “Large commercial customer” means a customer whose requirements equal or exceed [50 thousand] 50,000 cubic feet of natural gas per day on any day and which is an institution, an agency of federal, state or local government, or engaged primarily in renting out offices or other commercial space, in providing lodging or in the sale of other goods or services.

2. The commission shall establish standards for the setting, increase or decrease of rates [and charges] for natural gas to generating, industrial and large commercial customers. These standards must authorize increases or decreases on less than 30 days’ notice. Establishing different classes of customers, and charging different rates to customers of the same class, for these customers do not violate this chapter.

3. The commission may, for sales to generating, industrial and large commercial customers:

(a) Exempt the [filing of] rates for natural gas from those provisions of NRS [704.080, 704.090,] 704.070, 704.100 and 704.110 [which it] that the commission determines are not needed to protect the public interest.

(b) Authorize the establishment of different classes of customer or the charging of different rates for customers of the same class, based on value of the service and on the customer’s ability to change from one fuel to another.

Sec. 52. NRS 704.100 is hereby amended to read as follows:

704.100 Except as otherwise provided in NRS 704.075 or as may otherwise be provided by the commission pursuant to NRS 704.095 [704.097 or 704.275:

1. No changes may be made] or 704.097:

1. A public utility shall not make changes in any schedule, [including schedules of joint rates, or in the rules or regulations affecting any rates or charges, except upon 30 days’ notice to the commission, and all changes must be plainly indicated, or by filing new schedules in lieu thereof 30 days before the time the schedules are to take effect. The commission, upon application of any public utility, may prescribe a shorter time within which a reduction may be made.

2. Copies] unless the public utility files with the commission an application to make the proposed changes and the commission approves the proposed changes pursuant to NRS 704.110.

2. A public utility shall post copies of all proposed[,] schedules and all new or amended schedules [must be filed and posted in the offices of public utilities as required for original schedules.] in the same offices and in substantially the same form, manner and places as required by NRS 704.070 for the posting of copies of schedules that are currently in force.

3. A public utility may not set forth as justification for a rate increase any items of expense or rate base [which] that previously have been considered and disallowed by the commission, [only if] unless those items are clearly identified in the application and new facts or considerations of policy for each item are advanced in the application to justify a reversal of the [commission’s] prior decision[.

4. The commission shall determine whether a hearing must be held when] of the commission.

4. Except as otherwise provided in subsection 5, if the proposed change in any schedule [stating a new or revised individual or joint rate, fare or charge, or any new or revised individual or joint regulation or practice affecting any rate, fare or charge,] will result in an increase in annual gross operating revenue , as certified by the applicant [of $2,500 or less.] , in an amount that does not exceed $2,500, the commission shall determine whether it should dispense with a hearing regarding the proposed change.

5. If the applicant is a public utility furnishing telephone service and the proposed change in any schedule will result in an increase in annual gross operating revenue, as certified by the applicant, in an amount that does not exceed $50,000 or 10 percent of the applicant’s annual gross operating revenue, whichever is less, the commission shall determine whether it should dispense with a hearing regarding the proposed change.

6. In making the determination pursuant to subsection 4 or 5, the commission shall first consider all timely written protests, any presentation that the regulatory operations staff of the commission may desire to present, the application of the public utility and any other matters deemed relevant by the commission.

Sec. 53. NRS 704.110 is hereby amended to read as follows:

704.110 Except as otherwise provided in NRS 704.075 or as may otherwise be provided by the commission pursuant to NRS 704.095 or 704.097:

1. [Whenever there is filed] If a public utility files with the commission an application to make changes in any schedule [stating a new or revised individual or joint rate or charge, or any new or revised individual or joint regulation or practice affecting any rate or charge, or any schedule resulting] including, without limitation, changes that will result in a discontinuance, modification or restriction of service, the commission [may, upon complaint or upon its own motion without complaint, at once, without answer or formal pleading by the interested utility, investigate or, upon reasonable notice, conduct a hearing concerning] shall investigate the propriety of the [rate, charge, classification, regulation, discontinuance, modification, restriction or practice.

2. Pending the investigation or hearing and the decision thereon, the commission, upon delivering to the utility affected thereby a statement in writing of its reasons for the suspension, may suspend the operation of the schedule and defer the use of the rate, charge, classification, regulation, discontinuance, modification, restriction or practice. If the rate, charge, classification, regulation, discontinuance, modification, restriction or practice is part of:

(a) A filing made pursuant to subsection 7, the suspension must not be effective for more than 90 days beyond the time when the rate, charge, classification, regulation, discontinuance, modification, restriction or practice would otherwise go into effect.

(b) Any other filing made pursuant to this section, the suspension must not be effective for more than 150 days beyond the time when the rate, charge, classification, regulation, discontinuance, modification, restriction or practice would otherwise go into effect.

3. Whenever there is filed] proposed changes to determine whether to approve or disapprove the proposed changes. If an electric utility files such an application and the application is a general rate application or an application to clear its deferred accounts, the consumer’s advocate shall be deemed a party of record.

2. Except as otherwise provided in subsection 3, if a public utility files with the commission an application to make changes in any schedule, not later than 180 days after the date on which the application is filed, the commission shall issue a written order approving or disapproving, in whole or in part, the proposed changes.

3. If a public utility files with the commission [any schedule stating an increased individual or joint rate or charge for service or equipment,] a general rate application, the public utility shall submit with its application a statement showing the recorded results of revenues, expenses, investments and costs of capital for its most recent 12 months for which data were available when the application was prepared. [During any hearing concerning the increased rates or charges determined by the commission to be necessary,] In determining whether to approve or disapprove any increased rates, the commission shall consider evidence in support of the increased rates [or charges] based upon actual recorded results of operations for the same 12 months, adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation, certain other operating expenses as approved by the commission and changes in the costs of securities which are known and are measurable with reasonable accuracy at the time of filing and which will become effective within 6 months after the last month of those 12 months, but [no new rates or charges may be placed] the public utility shall not place into effect any increased rates until the changes have been experienced and certified by the public utility to the commission [.] and the commission has approved the increased rates. The commission shall also consider evidence supporting expenses for depreciation, calculated on an annual basis, applicable to major components of the public utility’s plant placed into service during the recorded test period or the period for certification as set forth in the application. Adjustments to revenues, operating expenses and costs of securities must be calculated on an annual basis. Within 90 days after the [filing with the commission of] date on which the certification required [in] by this subsection [, or before the expiration of any period of suspension ordered pursuant to subsection 2,] is filed with the commission, or within 180 days after the date on which the general rate application is filed with the commission, whichever time is longer, the commission shall make such order in reference to [those rates or charges] the increased rates as is required by this chapter. An electric utility shall file a general rate application pursuant to this subsection at least once every 24 months.

4. [After full investigation or hearing, whether completed before or after the date upon which the rate, charge, classification, regulation, discontinuance, modification, restriction or practice is to go into effect, the commission may make such order in reference to the rate, charge, classification, regulation, discontinuance, modification, restriction or practice as would be proper in a proceeding initiated after the rate, charge, classification, regulation, discontinuance, modification, restriction or practice has become effective.

5. Except as otherwise provided in subsection 6, whenever] If a public utility files with the commission an application to make changes in any schedule and the commission does not issue a final written order regarding the proposed changes within the time required by this section, the proposed changes shall be deemed to be approved by the commission.

5. If a public utility files with the commission a general rate application [for an increased rate or charge for, or classification, regulation, discontinuance, modification, restriction or practice involving service or equipment has been filed with the commission, a] , the public utility shall not [submit] file with the commission another general rate application until all pending general rate applications [for increases in rates submitted] filed by that public utility have been decided by the commission unless, after application and hearing, the commission determines that a substantial financial emergency would exist if the [other application] public utility is not permitted to [be submitted] file another general rate application sooner. The provisions of this subsection do not prohibit the public utility from filing with the commission, while a general rate application is pending, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale pursuant to subsection 6 or an application to clear its deferred accounts pursuant to subsection 7, if the public utility is otherwise authorized by those provisions to file such an application.

6. A public utility may file an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale once every 30 days. The provisions of this subsection do not apply to an electric utility using deferred accounting pursuant to section 19 of [this act.] Assembly Bill No. 369 of this session.

7. Except as otherwise provided in subsection 8 [, whenever] and subsection 4 of NRS 704.100, if an electric utility using deferred accounting pursuant to section 19 of [this act] Assembly Bill No. 369 of this session files an application to clear its deferred accounts and to change one or more of its rates [or charges] based upon changes in the costs for purchased fuel or purchased power, the commission, after a public hearing and by an appropriate order:

(a) Shall allow the electric utility to clear its deferred accounts by refunding any credit balance or recovering any debit balance over a period not to exceed 3 years, as determined by the commission.

(b) Shall not allow the electric utility to recover any debit balance, or portion thereof, in an amount that would result in a rate of return during the period of recovery that exceeds the rate of return authorized by the commission in the most recently completed rate proceeding for the electric utility.

8. Before allowing an electric utility to clear its deferred accounts pursuant to subsection 7, the commission shall determine whether the costs for purchased fuel and purchased power that the electric utility recorded in its deferred accounts are recoverable and whether the revenues that the electric utility collected from customers in this state for purchased fuel and purchased power are properly recorded and credited in its deferred accounts. The commission shall not allow the electric utility to recover any costs for purchased fuel and purchased power that were the result of any practice or transaction that was undertaken, managed or performed imprudently by the electric utility.

9. [Whenever] If an electric utility files an application to clear its deferred accounts pursuant to subsection 7 while a general rate application is pending, the electric utility shall:

(a) Submit with its application to clear its deferred accounts information relating to the cost of service and rate design; and

(b) Supplement its general rate application with the same information, if such information was not submitted with the general rate application.

10. A utility facility identified in a 3-year plan submitted pursuant to NRS 704.741 and accepted by the commission for acquisition or construction pursuant to NRS 704.751 and the regulations adopted pursuant thereto shall be deemed to be a prudent investment. The utility may recover all just and reasonable costs of planning and constructing such a facility.

11. As used in this section, “electric utility” has the meaning ascribed to it in section 19 of [this act.] Assembly Bill No. 369 of this session.

Sec. 54. NRS 704.329 is hereby amended to read as follows:

704.329 1. Except as otherwise provided in [this section,] subsection 6, a person shall not merge with, directly acquire, indirectly acquire through a subsidiary or affiliate, or otherwise directly or indirectly obtain control of a public utility doing business in this state or an entity that holds a controlling interest in such a public utility without first submitting to the commission an application for authorization of the proposed [merger, acquisition or other] transaction and obtaining authorization from the commission.

2. Any [merger, acquisition or other] transaction that violates the provisions of this section is void and unenforceable and is not valid for any purpose.

3. Before authorizing a proposed [merger, acquisition or other] transaction pursuant to this section, the commission shall consider the effect of the proposed [merger, acquisition or other] transaction on the public interest and the customers in this state. The commission shall not authorize the proposed [merger, acquisition or other] transaction unless the commission finds that the proposed [merger, acquisition or other] transaction:

(a) Will be in the public interest; and

(b) Complies with the provisions of sections 8 to 18, inclusive, of [this act,] Assembly Bill No. 369 of this session, if the proposed [merger, acquisition or other] transaction is subject to those provisions.

4. The commission may base its authorization of the proposed [merger, acquisition or other] transaction upon such terms, conditions or modifications as the commission deems appropriate.

5. If the commission does not issue a final order regarding the proposed [merger, acquisition or other] transaction within 180 days after the date on which an application or amended application for authorization of the proposed [merger, acquisition or other] transaction was filed with the commission, and the proposed [merger, acquisition or other] transaction is not subject to the provisions of sections 8 to 18, inclusive, of [this act,] Assembly Bill No. 369 of this session, the proposed [merger, acquisition or other] transaction shall be deemed to be authorized by the commission.

6. The provisions of this section do not apply to [the] :

(a) The transfer of stock of a public utility doing business in this state or to the transfer of the stock of an entity [holding] that holds a controlling interest in such a public utility, if a transfer of not more than 25 percent of the common stock of such a public utility or entity is proposed.

(b) A proposed transaction involving a public utility doing business in this state providing telecommunication services or an entity that holds a controlling interest in such a public utility if, in the most recently completed calendar year, not more than 10 percent of the gross operating revenue of the public utility or the entity that holds a controlling interest in the public utility was derived from intrastate telecommunication services provided to retail customers in this state by the public utility.

7. As used in this section:

(a) “Person” means:

(1) A natural person;

(2) Any form of business or social organization and any other nongovernmental legal entity, including, without limitation, a corporation, partnership, association, trust or unincorporated organization;

(3) A government or an agency or instrumentality of a government, including, without limitation, this state or an agency or instrumentality of this state; and

(4) A political subdivision of this state or of any other government or an agency or instrumentality of a political subdivision of this state or of any other government.

(b) “Transaction” means a merger, acquisition or change in control described in subsection 1.

Sec. 55. NRS 704.68964 is hereby amended to read as follows:

704.68964 1. An electing carrier may, pursuant to this section and in accordance with NRS 704.68976, exercise flexibility in the pricing of:

(a) Competitive services and discretionary services. The commission shall not specify a maximum rate for any competitive services or discretionary services of the electing carrier. The electing carrier shall, with regard to any competitive or discretionary service that it provides, set the price of that service above the price floor of the service.

(b) A package of services, which may include basic network services, competitive services, discretionary services and other essential services.

2. Except as otherwise provided in this subsection, an electing carrier may, upon 30-days’ notice to the commission in writing, exercise flexibility in the pricing of its services pursuant to subsection 1 and is exempt, with respect to the pricing of its services, from the provisions of NRS 704.100 and 704.110 and the regulations of the commission relating thereto. The notice must include a description in reasonable detail of:

(a) The characteristics of the services that will be subject to flexibility in pricing;

(b) The terms and conditions applicable to the services;

(d) The price or prices of the services or packages of services; and

(e) A certificate which provides that the electing carrier has prepared a cost study of the price floor to support the price or prices for each service and that, on and after the date on which the notice is filed with the commission, any affected person may, upon request, inspect and copy the cost study, subject to reasonable terms and conditions of any applicable confidentiality and nondisclosure agreement relating to the services.

The notice requirements of this subsection do not apply to an electing carrier with respect to the pricing of competitive services or for packages comprised exclusively of competitive services.

3. The price for a package of services must not be lower than the lesser of:

(a) The sum of the price floors for each of the services contained in the package; or

(b) The sum of the prices of the basic network services, as set forth in the tariffs of the electing carrier, and the price floors for each of the other services contained in the package.

4. The commission shall not specify a maximum rate for a package of services.

5. Each of the services included in a package pursuant to paragraph (b) of subsection 1 must be made available on an individual basis.

Sec. 56. NRS 704.68972 is hereby amended to read as follows:

704.68972 1. An electing carrier may introduce new services upon 30 days’ notice to the commission in writing. The notice must include a description in reasonable detail of:

(a) The characteristics of each new service;

(b) The terms and conditions applicable to each new service;

(d) The price or prices of each new service; and

(e) A certificate that provides that the electing carrier has prepared a cost study of the price floor to support the price or prices for each new service and that, on and after the date on which the notice is filed with the commission, any affected person may, upon request, inspect and copy the cost study, subject to reasonable terms and conditions of any applicable confidentiality and nondisclosure agreement.

2. Each new service is subject to the conditions set forth in NRS 704.68964.

3. Each new service is exempt from the provisions of NRS 704.100 and 704.110 and the regulations of the commission relating thereto.

4. Unless otherwise classified by the commission as a competitive service pursuant to its regulations, a new service must be classified as a discretionary service for which the commission shall not specify a maximum rate. The electing carrier shall set the price of the new service above the price floor of the service.

5. As used in this section, a “new service” means a telecommunication service:

(a) That provides a function, feature or capability which is materially different from any service or services previously offered by the carrier; or

(b) Combines two or more previously provided new services.

Sec. 57. NRS 704.743 is hereby amended to read as follows:

704.743 1. A utility which supplies electricity in this state may apply to the commission for authority to charge, as part of a program of optional pricing, a higher rate for electricity that is generated from renewable energy.

2. The program may provide the customers of the utility with the option of paying a higher rate for electricity to support the increased use by the utility of renewable energy in the generation of electricity.

3. As used in this section [:

(a) “Biomass” has the meaning ascribed to it in section 4 of this act.

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

(1) Wind;

(2) Solar energy;

(3) Geothermal energy; and

(4) Biomass.

The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.] , “renewable energy” has the meaning ascribed to it in section 7 of Senate Bill No. 372 of this session.

Sec. 58. NRS 704.767 is hereby amended to read as follows:

704.767 As used in NRS [704.767] 704.766 to 704.775, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.768 to 704.772, inclusive, and section 40 of this act have the meanings ascribed to them in those sections.

Sec. 59. NRS 704.771 is hereby amended to read as follows:

704.771 “Net metering system” means a facility or energy system for the [production of electrical energy] generation of electricity that:

1. Uses [wind or solar] renewable energy as its primary source of [fuel;] energy to generate electricity;

2. Has a generating capacity of not more than 10 kilowatts;

3. Is located on the customer-generator’s premises;

4. Operates in parallel with the utility’s transmission and distribution facilities; and

5. Is intended primarily to offset part or all of the customer-generator’s requirements for electricity.

Sec. 60. NRS 704.773 is hereby amended to read as follows:

704.773 1. A utility shall offer net metering, as set forth in NRS 704.775, to the customer-generators operating within its service area . [until 100 of those customer-generators have accepted the offer.]

2. A utility:

(a) Shall offer to make available to each of its customer-generators who has accepted its offer for net metering an energy meter that is capable of registering the flow of electricity in two directions.

(b) May, at its own expense and with the written consent of the customer-generator, install one or more additional meters to monitor the flow of electricity in each direction.

(c) Shall not charge a customer-generator any fee or charge that would increase the customer-generator’s minimum monthly charge to an amount greater than that of other customers of the utility in the same rate class as the customer-generator.

Sec. 61. NRS 704.775 is hereby amended to read as follows:

704.775 1. The billing period for net metering may be either a monthly period or, with the written consent of the customer-generator, an annual period.

2. The net energy measurement must be calculated in the following manner:

(a) The utility shall measure the net electricity produced or consumed during the billing period, in accordance with normal metering practices.

(b) If the electricity supplied by the utility exceeds the electricity generated by the customer-generator which is fed back to the utility during the billing period, the customer-generator must be billed for the net electricity supplied by the utility.

(c) If the electricity generated by the customer-generator which is fed back to the utility exceeds the electricity supplied by the utility during the billing period [, neither] :

(1) Neither the utility nor the customer-generator is entitled to compensation for electricity provided to the other during the billing period [.] ; and

(2) The excess electricity which is fed back to the utility shall be deemed to be electricity that the utility generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard pursuant to sections 3 to 12, inclusive, of Senate Bill No. 372 of this session.

Sec. 62. NRS 228.360 is hereby amended to read as follows:

228.360 The consumer’s advocate:

1. Shall intervene in and represent the public interest in [all] :

(a) All proceedings conducted pursuant to sections 8 to 18, inclusive, of [this act.] Assembly Bill No. 369 of this session; and

(b) All proceedings conducted pursuant to NRS 704.070 to 704.110, inclusive, and sections 41 to 46, inclusive, of this act in which an electric utility has filed a general rate application or an application to clear its deferred accounts.

2. May, with respect to all public utilities except railroads and cooperative utilities, and except as otherwise provided in NRS 228.380:

(a) Conduct or contract for studies, surveys, research or expert testimony relating to matters affecting the public interest or the interests of utility customers.

(b) Examine any books, accounts, minutes, records or other papers or property of any public utility subject to the regulatory authority of the public utilities commission of Nevada in the same manner and to the same extent as authorized by law for members of the public utilities commission of Nevada and its staff.

(c) Except as otherwise provided in subsection 1, petition for, request, initiate, appear or intervene in any proceeding concerning rates, charges, tariffs, modifications of service or any related matter before the public utilities commission of Nevada or any court, regulatory body, board, commission or agency having jurisdiction over any matter which the consumer’s advocate may bring before or has brought before the public utilities commission of Nevada or in which the public interest or the interests of any particular class of utility customers are involved. The consumer’s advocate may represent the public interest or the interests of any particular class of utility customers in any such proceeding, and he is a real party in interest in the proceeding.

3. As used in this section, “electric utility” has the meaning ascribed to it in section 19 of Assembly Bill No. 369 of this session.

Sec. 63. NRS 228.390 is hereby amended to read as follows:

228.390 Except as otherwise provided in NRS 704.110 and sections 8 to 18, inclusive, of [this act:] Assembly Bill No. 369 of this session:

1. The consumer’s advocate has sole discretion to represent or refrain from representing the public interest and any class of customers in any proceeding.

2. In exercising his discretion, the consumer’s advocate shall consider the importance and extent of the public interest or the customers’ interests involved and whether those interests would be adequately represented without his participation.

3. If the consumer’s advocate determines that there would be a conflict between the public interest and any particular class of customers or any inconsistent interests among the classes of customers involved in a particular matter, he may choose to represent one of the interests, to represent no interest, or to represent one interest through his office and another or others through outside counsel engaged on a case basis.

Sec. 64. Chapter 349 of NRS is hereby amended by adding thereto the provisions set forth as sections 65 to 68, inclusive, of this act.

Sec. 65. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 66. “Fuel cell” means a device or contrivance that, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

Sec. 67. 1. “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

(a) Biomass;

(b) Fuel cells;

(d) Solar energy;

(e) Waterpower; and

(f) Wind.

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

Sec. 68. 1. “Renewable energy generation project” means a project involving an electric generating facility or system that uses renewable energy as its primary source of energy to generate electricity.

2. The term does not include a project involving an electric generating facility or system that uses nuclear energy, in whole or in part, to generate electricity.

Sec. 69. NRS 349.400 is hereby amended to read as follows:

349.400 As used in NRS 349.400 to 349.670, inclusive, unless the context otherwise requires, the words and terms defined in NRS 349.410 to 349.540, inclusive, and sections 65 to 68, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 70. NRS 349.430 is hereby amended to read as follows:

349.430 “Cost of a project” means all or a designated part of the cost of any project, including any incidental cost pertaining to the project. The cost of a project may include, among other costs, the costs of:

1. Surveys, audits, preliminary plans, other plans, specifications, estimates and other costs of preparations;

2. Appraising, printing, estimating, advice, services of engineers, architects, financial consultants, attorneys, clerical personnel and other agents and employees;

3. Publishing, posting, mailing and otherwise giving notice, filing or recording instruments, taking options and fees to banks;

4. Establishment of a reserve for contingencies;

5. Interest on bonds for any time which does not exceed the estimated period of construction plus 1 year, discounts on bonds, reserves for the payment of the principal of and interest on bonds, replacement expenses and other costs of issuing bonds;

6. Amending any resolution or other instrument authorizing the issuance of, or otherwise relating to, bonds for the project; and

7. Short-term financing, and the expense of operation and maintenance of the project.

Sec. 71. NRS 349.510 is hereby amended to read as follows:

349.510 “Project” means:

1. Any land, building or other improvement and all real and personal properties necessary in connection therewith, excluding inventories, raw materials and working capital, whether or not in existence, suitable for new construction, improvement, rehabilitation or redevelopment for:

(a) Industrial uses, including assembling, fabricating, manufacturing, processing or warehousing;

(b) Research and development relating to commerce or industry, including professional, administrative and scientific offices and laboratories;

(d) Civic and cultural enterprises open to the general public, including theaters, museums and exhibitions, together with buildings and other structures, machinery, equipment, facilities and appurtenances thereto which the director deems useful or desirable in connection with the conduct of any such enterprise;

(e) An educational institution operated by a nonprofit organization not otherwise directly funded by the state which is accredited by a nationally recognized educational accrediting association;

(f) Health and care facilities and supplemental facilities for health and care; [or]

(g) The purposes of a corporation for public benefit [.]; or

(h) A renewable energy generation project.

2. Any real or personal property appropriate for addition to a hotel, motel, apartment building, casino or office building to protect it or its occupants from fire.

3. The preservation of a historic structure or its restoration for its original or another use, if the plan has been approved by the office of historic preservation of the department of cultural affairs.

Sec. 72. NRS 349.560 is hereby amended to read as follows:

349.560 It is the intent of the legislature to authorize the director to finance, acquire, own, lease, improve and dispose of properties to:

1. Promote industry and employment and develop trade by inducing manufacturing, industrial, warehousing and commercial enterprises and organizations for research and development to locate, remain or expand in this state to further prosperity throughout the state and to further the use of the agricultural products and the natural resources of this state.

2. Enhance public safety by protecting hotels, motels, apartment buildings, casinos, office buildings and their occupants from fire.

3. Promote the public health by enabling the acquisition, development, expansion and maintenance of health and care facilities and supplemental facilities for health and care facilities which will provide services of high quality at reasonable rates to the residents of the community in which the facilities are situated.

4. Promote the educational, cultural, economic and general welfare of the public by financing civic and cultural enterprises, certain educational institutions and the preservation or restoration of historic structures.

5. Promote the social welfare of the residents of this state by enabling a corporation for public benefit to acquire, develop, expand and maintain facilities that provide services for those residents.

6. Promote the generation of electricity in this state.

Sec. 73. NRS 349.565 is hereby amended to read as follows:

349.565 1. The director may not, under NRS 349.400 to 349.670, inclusive:

(a) Operate any manufacturing, industrial, warehousing or commercial enterprise or an organization for research and development or any health and care facility to which he provided assistance; or

(b) Except as otherwise provided in subsection 2, assist any manufacturing, industrial, warehousing or commercial enterprise or an organization for research and development to locate in a county or city which would result in the abandonment or closure of an existing facility of a like nature located within that county or city, unless the existing facility is operated by the contemplated lessee, purchaser or other obligor or an affiliate of such a person and the facility is to be abandoned or closed because of obsolescence, lack of available labor or limitations at the site of the facility.

2. The provisions of paragraph (b) of subsection 1 do not apply to:

(a) Health and care facilities and supplemental facilities for a health and care facility;

(b) Civic and cultural enterprises open to the general public;

(d) Enterprises located in an area designated as an empowerment zone pursuant to sections 1391 to 1397, inclusive, of the Internal Revenue Code of 1986, 26 U.S.C. §§ 1391-97, future amendments to those sections and the corresponding provisions of future internal revenue laws;

(e) Facilities established by a corporation for public benefit; [and]

(f) Enterprises whose products are substantially sold, used or distributed outside this state [.]; and

(g) Renewable energy generation projects.

Sec. 74. NRS 349.580 is hereby amended to read as follows:

349.580 Except as otherwise provided in NRS 349.595 and 349.640, the director shall not finance a project unless, before financing:

1. The director finds that:

(a) The project to be financed has been approved for financing pursuant to the requirements of NRS 244A.669 to 244A.763, inclusive, or 268.512 to 268.568, inclusive; and

(b) There has been a request by a city or county to have the director issue bonds to finance the project; or

2. The director finds and both the board and the governing body of the city or county where the project is to be located approve the findings of the director that:

(a) The project consists of any land, building or other improvement and all real and personal properties necessary in connection therewith, excluding inventories, raw materials and working capital, whether or not in existence, which is suitable for new construction, improvement, preservation, restoration, rehabilitation or redevelopment:

(1) For manufacturing, industrial, warehousing, civic, cultural or other commercial enterprises, educational institutions, corporations for public benefit or organizations for research and development;

(2) For a health and care facility or a supplemental facility for a health and care facility;

(3) Of real or personal property appropriate for addition to a hotel, motel, apartment building, casino or office building to protect it or its occupants from fire; [or]

(4) Of a historic structure; or

(5)For a renewable energy generation project;

(b) The project will provide a public benefit;

(c) The contemplated lessee, purchaser or other obligor has sufficient financial resources to place the project in operation and to continue its operation, meeting the obligations of the lease, purchase contract or financing agreement;

(d) There are sufficient safeguards to assure that all money provided by the department will be expended solely for the purposes of the project;

(e) The project would be compatible with existing facilities in the area adjacent to the location of the project;

(f) The project [is]:

(1) Is compatible with the plan of the state for economic diversification and development or for the marketing and development of tourism in this state; or

(2)Promotes the generation of electricity in this state;

(g) Through the advice of counsel or other reliable source, the project has received all approvals by the local, state and federal governments which may be necessary to proceed with construction, improvement, rehabilitation or redevelopment of the project; and

(h) There has been a request by a city, county, lessee, purchaser, other obligor or other enterprise to have the director issue revenue bonds for industrial development to finance the project.

Sec. 75. Chapter 523 of NRS is hereby amended by adding thereto the provisions set forth as sections 76 to 87, inclusive, of this act.

Sec. 76. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

Sec. 77. “Consumer’s advocate” means the consumer’s advocate of the bureau of consumer protection in the office of the attorney general.

Sec. 78. “Director” means the director of the office of energy appointed pursuant to section 87 of this act.

Sec. 79. “Fuel cell” means a device or contrivance that, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

Sec. 80. 1. “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

(a) Biomass;

(b) Fuel cells;

(d) Solar energy;

(e) Waterpower; and

(f) Wind.

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

Sec. 81. 1. “Renewable energy generation project” means a project involving an electric generating facility or system that uses renewable energy as its primary source of energy to generate electricity.

2. The term does not include a project involving an electric generating facility or system that uses nuclear energy, in whole or in part, to generate electricity.

Sec. 82. “Task force” means the task force for renewable energy and energy conservation created by section 84 of this act.

Sec. 83. 1. The trust fund for renewable energy and energy conservation is hereby created in the state treasury.

2. The task force shall administer the fund. As administrator of the fund, the task force:

(a) Shall maintain the financial records of the fund;

(b) Shall invest the money in the fund as the money in other state funds is invested;

(d) Shall maintain any instruments that evidence investments made with the money in the fund;

(e) May contract with vendors for any good or service that is necessary to carry out the provisions of this section; and

(f) May perform any other duties that are necessary to administer the fund.

3. The interest and income earned on the money in the fund must, after deducting any applicable charges, be credited to the fund. All claims against the fund must be paid as other claims against the state are paid.

4. Not more than 2 percent of the money in the fund may be used to pay the costs of administering the fund.

5. The money in the fund remains in the fund and does not revert to the state general fund at the end of any fiscal year.

6. All money that is deposited or paid into the fund may only be expended pursuant to an allocation made by the task force. Money expended from the fund must not be used to supplant existing methods of funding that are available to public agencies.

Sec. 84. 1. The task force for renewable energy and energy conservation is hereby created. The task force consists of nine members who are appointed as follows:

(a) Two members appointed by the majority leader of the senate, one of whom represents the interests of the renewable energy industry in this state with respect to biomass and the other of whom represents the interests of the mining industry in this state.

(b) Two members appointed by the speaker of the assembly, one of whom represents the interests of the renewable energy industry in this state with respect to geothermal energy and the other of whom represents the interests of a nonprofit organization dedicated to the protection of the environment or to the conservation of energy or the efficient use of energy.

(c) One member appointed by the minority leader of the senate to represent the interests of the renewable energy industry in this state with respect to solar energy.

(d) One member appointed by the minority leader of the assembly to represent the interests of the public utilities in this state.

(e) Two members appointed by the governor, one of whom represents the interests of the renewable energy industry in this state with respect to wind and the other of whom represents the interests of the gaming industry in this state.

(f) One member appointed by the consumer’s advocate to represent the interests of the consumers in this state.

2. A member of the task force:

(a) Must be a citizen of the United States and a resident of this state.

(b) Must have training, education, experience or knowledge concerning:

(1) The development or use of renewable energy;

(2) Financing, planning or constructing renewable energy generation projects;

(3) Measures which conserve or reduce the demand for energy or which result in more efficient use of energy;

(4) Weatherization;

(5) Building and energy codes and standards;

(6) Grants or incentives concerning energy;

(7) Public education or community relations; or

(8) Any other matter within the duties of the task force.

3. After the initial terms, the term of each member of the task force is 3 years. A vacancy on the task force must be filled for the remainder of the unexpired term in the same manner as the original appointment. A member may be reappointed to the task force.

4. A member of the task force who is an officer or employee of this state or a political subdivision of this state must be relieved from his duties without loss of his regular compensation so that he may prepare for and attend meetings of the task force and perform any work that is necessary to carry out the duties of the task force in the most timely manner practicable. A state agency or political subdivision of this state shall not require an officer or employee who is a member of the task force to:

(a) Make up the time he is absent from work to carry out his duties as a member of the task force; or

(b) Take annual leave or compensatory time for the absence.

Sec. 85. 1. The members of the task force shall select a chairman and vice chairman from among their membership. The vice chairman shall perform the duties of the chairman during any absence of the chairman.

2. The chairman and vice chairman serve in those positions for terms of 1 year. If a vacancy occurs in the chairmanship or vice chairmanship, the vacancy must be filled for the remainder of the unexpired term in the same manner as the original selection.

3. A majority of the members of the task force constitutes a quorum. A majority of the members present during a quorum may exercise all the power and authority conferred on the task force.

4. The task force shall meet at least four times annually or more frequently at the discretion of the chairman.

5. Except as otherwise provided in this subsection, the members of the task force serve without compensation and are not entitled to the per diem and travel expenses provided for state officers and employees generally. For each day of attendance at a meeting of the task force and while engaged in the business of the task force, a member of the task force who:

(a) Is an officer or employee of this state or a political subdivision of this state is entitled to receive the per diem and travel expenses provided for state officers and employees generally, paid by his governmental employer.

(b) Represents the interests of a nonprofit organization is entitled to receive the per diem and travel expenses provided for state officers and employees generally, paid from the trust fund for renewable energy and energy conservation.

6. The consumer’s advocate shall provide the task force with administrative and clerical support and with such other assistance as may be necessary for the task force to carry out its duties. Such support and assistance must include, without limitation, making arrangements for facilities, equipment and other services in preparation for and during meetings.

Sec. 86. 1. The task force shall:

(a) Advise the office of energy in the development and periodic review of the comprehensive energy plan with regard to the use of renewable energy and the use of measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(b) Coordinate its activities and programs with the activities and programs of the office of energy, the consumer’s advocate and the public utilities commission of Nevada and other federal, state and local officers and agencies that promote, fund, administer or operate activities and programs related to the use of renewable energy and the use of measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(1) Educate persons and entities concerning renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(2) Create incentives for investment in and the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(3) Distribute grants and other money to establish programs and projects which incorporate the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(4) Conduct feasibility studies, including, without limitation, a feasibility study concerning the establishment of an incentive fund, grants or other programs to enable or assist residential, small commercial and agricultural customers to reduce the cost of purchasing on-site generation systems, net metering systems and distributed generation systems that use renewable energy.

(d) Take any other actions that the task force deems necessary to carry out its duties, including, without limitation, contracting with consultants, if necessary, for the purposes of program design or to assist the task force in carrying out its duties.

2. The task force shall prepare an annual report concerning its activities and programs and submit the report to the legislative commission and the governor on or before January 30 of each year. The annual report must include, without limitation:

(a) A description of the objectives of each activity and program;

(b) An analysis of the effectiveness and efficiency of each activity and program in meeting the objectives of the activity or program;

(c) The amount of money distributed for each activity and program from the trust fund for renewable energy and energy conservation and a detailed description of the use of that money for each activity and program;

(d) An analysis of the coordination between the task force and other officers and agencies; and

(e) Any changes planned for each activity and program.

3. As used in this section:

(a) “Distributed generation system” means a facility or system for the generation of electricity that is in close proximity to the place where the electricity is consumed.

(b) “Net metering system” has the meaning ascribed to it in NRS 704.771.

Sec. 87. 1. The office of energy is hereby created within the office of the governor.

2. The governor shall appoint the director. The director:

(a) Is in the unclassified service of the state; and

(b) Serves at the pleasure of the governor.

3. The director may, within the limits of available money, employ:

(a) Such persons in the unclassified service of the state as the director determines to be necessary to carry out the duties of the office of energy pursuant to this chapter; and

(b) Such additional personnel as may be required to carry out the duties of the office of energy pursuant to this chapter, who must be in the classified service of the state.

4. A person employed by the director pursuant to this section must be qualified by training and experience to perform the duties for which the director employs him.

5. The director and the persons employed by the director shall not have any conflict of interest relating to the performance of their duties pursuant to this chapter.

6. The provisions of NRS 223.085 do not apply to the director or to any person employed by the director pursuant to this section.

Sec. 88. NRS 523.011 is hereby amended to read as follows:

523.011 1. The legislature finds that:

(a) Energy is essential to the economy of the state and to the health, safety and welfare of the people of the state.

(b) The state has a responsibility to encourage the maintenance of a reliable and economical supply of energy at a level which is consistent with the protection of environmental quality.

(c) The state has a responsibility to encourage the utilization of a wide range of measures which reduce wasteful uses of energy resources.

(d) Planning for energy conservation and future energy requirements should include consideration of state, regional and local plans for land use, urban expansion, transportation systems, environmental protection and economic development.

(e) Government and private enterprise need to accelerate research and development of [alternative] sources of renewable energy and to improve technology related to the research and development of existing sources of energy.

(f) While government and private enterprise are seeking to accelerate research and development of [alternative] sources of renewable energy, they must also prepare for and respond to the advent of competition within the electrical energy industry and are, therefore, encouraged to maximize the use of indigenous energy resources to the extent competitively and economically feasible.

(g) Prevention of delays and interruptions in providing energy, protecting environmental values and conserving energy require expanded authority and capability within state government.

2. It is the policy of this state to encourage participation with all levels of government and private enterprise in cooperative state, regional and national programs to assure adequate supplies of energy resources and markets for such energy resources.

3. It is the policy of this state to assign the responsibility for managing and conserving energy and its sources to agencies whose other programs are similar, to avoid duplication of effort in developing policies and programs for energy.

Sec. 89. NRS 523.021 is hereby amended to read as follows:

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

1. “Department” means the department of business and industry.

2. “Director” means the director of the department.] , the words and terms defined in sections 76 to 82, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 90. NRS 523.051 is hereby amended to read as follows:

523.051 The director may:

1. Administer any gifts or grants which the department is authorized to accept for the purposes of this chapter.

2. Expend money received from those gifts or grants or from legislative appropriations to contract with qualified persons or institutions for research in the production and efficient use of energy resources.

3. Enter into any cooperative agreement with any federal or state agency or political subdivision.

4. Participate in any program established by the Federal Government relating to sources of energy and adopt regulations appropriate to that program.

5. Assist developers of renewable energy generation projects in preparing and making requests to obtain money for development through the issuance industrial development revenue bonds pursuant to NRS 349.400 to 349.670, inclusive and sections 65 to 68, inclusive, of this act.

6. Adopt any regulations that the director determines are necessary to carry out the duties of the office of energy pursuant to this chapter.

Sec. 91. NRS 523.131 is hereby amended to read as follows:

523.131 The director shall:

1. Acquire and analyze information relating to energy and to the supply, demand and conservation of its sources.

2. Utilize all available public and private means to provide information to the public about problems relating to energy and to explain how conservation of energy and its sources may be accomplished.

3. Review and evaluate information which identifies trends and permits forecasting of the energy available to the state. Such forecasts must include estimates on:

(a) The level of demand for energy in the state for 5-, 10- and 20-year periods;

(b) The amount of energy available to meet each level of demand;

(d) The sources of renewable energy and other alternative sources of energy which are available and their possible effects.

4. Study means of reducing wasteful, inefficient, unnecessary or uneconomical uses of energy and encourage the maximum utilization of existing sources of energy in the state.

5. Encourage the development of [any existing and alternative] :

(a) Any sources of renewable energy and any other energy projects which will benefit the state [.] ; and

(b) Any measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

6. In conjunction with the desert research institute, review policies relating to the research and development of the state’s geothermal resources and make recommendations to the appropriate state and federal agencies for establishing methods of developing the geothermal resources within the state.

7. Solicit and serve as the point of contact for grants and other money from the Federal Government and other sources to promote:

(a) Energy projects that enhance the economic development of the state;

(b) The use of renewable energy; and

8. Coordinate the activities and programs of the office of energy with the activities and programs of the task force, the consumer’s advocate and the public utilities commission of Nevada and other federal, state and local officers and agencies that promote, fund, administer or operate activities and programs related to the use of renewable energy and the use of measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

9. Carry out all other directives concerning energy that are prescribed by the governor.

Sec. 92. NRS 523.141 is hereby amended to read as follows:

523.141 1. The director shall prepare a comprehensive state energy [conservation] plan which provides [methods for conserving and improving efficiency in the use of energy resources and establishes procedures for reducing the rate of growth of energy demand and minimizing the adverse social, economic, political and environmental effects of increasing energy resource consumption.

2. The plan must be presented to the governor, and upon approval by the governor, may be submitted by him in compliance with any program established by the Federal Government.] for the promotion of:

(a) Energy projects that enhance the economic development of the state;

(b) The use of renewable energy; and

2. The comprehensive state energy plan must include provisions for:

(a) The assessment of the potential benefits of proposed energy projects on the economic development of the state.

(b) The education of persons and entities concerning renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(c) The creation of incentives for investment in and the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(d) Grants and other money to establish programs and conduct activities which promote:

(1) Energy projects that enhance the economic development of the state;

(2) The use of renewable energy; and

(3) The use of measures which conserve or reduce the demand for energy or which result in more efficient use of energy.

(e) The development or incorporation by reference of model and uniform building and energy codes and standards which are written in language which is easy to understand and which include performance standards for conservation of energy and efficient use of energy.

(f) Oversight and accountability with respect to all programs and activities described in this subsection.

(g) Any other matter that the task force determines to be relevant to the issues of energy resources, energy use, energy conservation and energy efficiency.

Sec. 93. NRS 523.161 is hereby amended to read as follows:

523.161 1. [Except for those energy resources for whose priorities of use are established by the public utilities commission of Nevada, the] The director may recommend to state agencies, local governments and appropriate private persons and entities, standards for conservation of energy and its sources and for carrying out the state comprehensive energy plan . [for the conservation of energy.]

2. In recommending such standards , the director shall consider the usage of energy and its sources in the state and the methods available for conservation of those sources.

Sec. 94. NRS 523.164 is hereby amended to read as follows:

523.164 1. The director shall adopt regulations for the conservation of energy in buildings, including manufactured homes, which establish the minimum standards for:

(a) The construction of floors, walls, ceilings and roofs;

(b) The equipment and systems for heating, ventilation and air-conditioning;

(d) Insulation; and

(e) Other factors which affect the use of energy in a building.

2. The director may exempt a building from a standard if he determines that application of the standard to the building would not accomplish the purpose of the regulations.

3. The regulations must authorize allowances in design and construction for [solar, wind or any other renewable source] sources of renewable energy used to supply all or a part of the energy required in a building.

4. The standards adopted by the director are the minimum standards for the conservation of energy which apply only to areas in which the governing body of the local government has not adopted standards for the conservation of energy in buildings. Such governing bodies shall assist the director in the enforcement of the regulations adopted pursuant to this section.

5. The director shall solicit comments regarding the adoption of regulations pursuant to this section from:

(a) Persons in the business of constructing and selling homes;

(b) Contractors;

(d) Local building inspectors; and

(e) The general public, before adopting any regulations. The director must conduct at least three hearings in different locations in the state, after giving 30 days’ notice of each hearing, before he may adopt any regulations pursuant to this section.

Sec. 95. NRS 651.040 is hereby amended to read as follows:

651.040 1. As used in this section, unless the context otherwise requires:

(a) “Establishment” means any hotel, motel, inn or motor court.

(b) “Owner” or “keeper” means any person, firm, association or corporation.

2. The rates listed on the printed statement required to be maintained by an owner or keeper of an establishment pursuant to NRS 651.030 must include [the] :

(a) The daily rate of the room for occupancy by one person [,] and for occupancy by two persons [, the] ;

(b) The additional charge, if any, for occupancy by each additional person over two persons [and the] ;

(d) The additional charge, if any, to offset energy costs incurred by the establishment.

3. Every establishment shall maintain a registration card for each room and supply the person or persons registering for accommodations a receipt. Both the registration card and the receipt must reflect the type of accommodations supplied, the number of persons occupying the accommodation and the rate charged each person therefor. An establishment shall not charge more than the rates listed on the printed statement required to be maintained by an owner or keeper of an establishment pursuant to NRS 651.030

[3.] 4. For any violation of this section, or any provision herein contained, the offender shall forfeit to the injured party 3 times the amount of the sum charged in excess of what he is entitled to charge.

[4.] 5. Any owner or keeper of any establishment who violates any of the provisions of this section is guilty of a misdemeanor.

Sec. 96. Section 1 of Assembly Bill No. 197 of this session is hereby amended to read as follows:

Section 1. Chapter 704 of NRS is hereby amended by adding thereto a new section to read as follows:

1. On and after October 1, 2001, each electric utility shall disclose to its retail customers information about electric services, and any products and services relating thereto, that are being provided to or purchased for those retail customers by the electric utility. The disclosure must:

(a) Be in a standard, uniform format established by the commission by regulation;

(b) Be included:

(1) At least two times each calendar year, as an insert in the bills that the electric utility sends to its retail customers; and

(2) If the electric utility maintains a website on the Internet or any successor to the Internet, on that website; and

(c) Include adequate information so that a retail customer can readily evaluate his options for obtaining electric services or any products or services relating thereto.

2. A disclosure required by this section must include, if applicable:

(a) The average mix of energy sources used to generate the electricity sold by the electric utility to the retail customer. An electric utility may, if available, use a regional average that has been determined by the commission for that portion of electricity sold by the electric utility to the retail customer for which the specific mix of energy sources cannot be discerned.

(b) The average emissions, measured in pounds per megawatt-hour, of:

(1) Any high-level radioactive waste, sulfur dioxide, carbon dioxide, oxides of nitrogen and heavy metals released in this state from the generation of the electricity sold by the electric utility to the retail customer; and

(2) Any other substances released in this state from the generation of the electricity sold by the electric utility to the retail customer which the commission, in cooperation with the division of environmental protection of the state department of conservation and natural resources, determines may cause a significant health or environmental impact and for which sufficiently accurate and reliable data is available.

If an electric utility uses a regional average for the mix of energy sources pursuant to paragraph (a), the electric utility shall, if available, use for the average emissions pursuant to this paragraph a regional calculation that has been determined by the commission.

(d) Information concerning any energy programs that provide assistance to retail customers with low incomes, including, without limitation, information on the procedures to apply for such programs.

3. An electric utility:

(a) Shall make the disclosures required pursuant to this section in accordance with the requirements adopted by the commission as to form and substance; and

(b) Shall ensure that it provides the information in compliance with all applicable state and federal law governing unfair advertising and labeling.

4. The commission shall adopt such regulations concerning form and substance for the disclosures required by this section as are necessary to ensure that retail customers are provided with sufficient information so that they can readily evaluate their options for obtaining electric services and any products and services relating thereto.

5. The provisions of this section do not require an electric utility to disclose to its retail customers any information about electric services, and any products and services relating thereto, that are subject to the provisions of sections 3 to 26, inclusive, of Assembly Bill No. 661 of this session.

6. As used in this section:

(a) “Electric utility” has the meaning ascribed to it in section 19 of Assembly Bill No. 369 of this session.

(b) “Energy source” includes, without limitation:

(1) Coal, natural gas, oil, propane and any other fossil fuel;

(2) Geothermal energy, solar energy, hydroelectric energy, nuclear energy, wind, biofuel and biomass; and

(3) Any other specific energy source that is used to generate the electricity provided to the retail customer.

Sec. 97. Assembly Bill No. 369 of this session is hereby amended by adding thereto a new section designated sec. 15.5, following sec. 15, to read as follows:

Sec. 15.5. The provisions of sections 8 to 18, inclusive, of this act do not prohibit an electric utility from pledging, mortgaging, granting a security interest in or otherwise encumbering any of its generation assets or other property for the purpose of securing indebtedness of the electric utility which exists on the effective date of this act or which is issued or incurred by the electric utility after the effective date of this act in financing transactions approved by the commission.

Sec. 98. Section 35 of Assembly Bill No. 369 of this session is hereby amended to read as follows:

Sec. 35. Except as otherwise provided in section 36 of this act and notwithstanding the provisions of any other specific statute to the contrary:

1. An electric utility shall not file an application for a fuel and purchased power rider on or after the effective date of this act.

2. Each application for a fuel and purchased power rider filed by an electric utility which is pending with the commission on the effective date of this act and which the electric utility did not place into effect before or on April 1, 2001, is void and unenforceable and is not valid for any purpose after April 1, 2001.

3. If, before March 1, 2001, an electric utility incurred any costs for fuel or purchased power, including, without limitation, any costs for fuel or purchased power recorded or carried on the books and records of the electric utility, and those costs were not recovered or could not be recovered pursuant to a fuel and purchased power rider placed into effect by the electric utility before March 1, 2001, the electric utility is not entitled, on or after March 1, 2001, to recover any of those costs for fuel or purchased power from customers, and the commission shall not allow the electric utility to recover any of those costs for fuel or purchased power from customers.

4. Except as otherwise provided in this section, on and after the effective date of this act:

(a) The commission shall not take any further action on the comprehensive energy plan, and each electric utility that jointly filed the comprehensive energy plan shall be deemed to have withdrawn the comprehensive energy plan;

(b) The rates that each electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan shall be deemed to be a component of the electric utility’s rates for fuel and purchased power; and

(c) The revenues [collected] for services provided by each electric utility [before April] for the period of March 1, 2001, to March 31, 2001, inclusive, from the rates that each electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan shall be deemed to be a credit in the electric utility’s deferred accounts.

5. On or before October 1, 2001, each electric utility that primarily serves densely populated counties shall file a general rate application pursuant to subsection 3 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. On or before December 1, 2001, each electric utility that primarily serves densely populated counties shall file an application to clear its deferred accounts pursuant to subsection 7 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. After such an electric utility files the application to clear its deferred accounts, the commission shall investigate and determine whether the rates that the electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan are just and reasonable and reflect prudent business practices. On the date on which the commission issues a final order on the general rate application, the commission shall issue a final order on the electric utility’s application to clear its deferred accounts. The total rates to provide electric service that were in effect on April 1, 2001, for the electric utility must remain in effect until the date on which the commission issues a final order on the general rate application. The commission shall not adjust the rates of the electric utility during this period unless such an adjustment is absolutely necessary to avoid rates that are confiscatory under the Constitution of the United States or the constitution of this state. The commission:

(a) May make such an adjustment only to the extent that it is absolutely necessary to avoid an unconstitutional result; and

(b) Shall not, in any proceedings concerning such an adjustment, approve any rate or grant any relief that is not absolutely necessary to avoid an unconstitutional result.

After the electric utility files the general rate application that is required by this subsection, the electric utility shall file general rate applications in accordance with subsection 3 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. After the electric utility files the application to clear its deferred accounts that is required by this subsection, the electric utility shall file applications to clear its deferred accounts in accordance with section 19 of this act and subsection 7 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session.

6. On or before December 1, 2001, each electric utility that primarily serves less densely populated counties shall file a general rate application pursuant to subsection 3 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. On or before February 1, 2002, each electric utility that primarily serves less densely populated counties shall file an application to clear its deferred accounts pursuant to subsection 7 of NRS 704.110, as amended by this act [.] and Assembly Bill No. 661 of this session. After such an electric utility files the application to clear its deferred accounts, the commission shall investigate and determine whether the rates that the electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan are just and reasonable and reflect prudent business practices. On the date on which the commission issues a final order on the general rate application, the commission shall issue a final order on the electric utility’s application to clear its deferred accounts. The total rates to provide electric service that were in effect on April 1, 2001, for the electric utility must remain in effect until the date on which the commission issues a final order on the general rate application. The commission shall not adjust the rates of the electric utility during this period unless such an adjustment is absolutely necessary to avoid rates that are confiscatory under the Constitution of the United States or the constitution of this state. The commission:

(a) May make such an adjustment only to the extent that it is absolutely necessary to avoid an unconstitutional result; and

(b) Shall not, in any proceedings concerning such an adjustment, approve any rate or grant any relief that is not absolutely necessary to avoid an unconstitutional result.

Sec. 99. Section 36 of Assembly Bill No. 369 of this session is hereby amended to read as follows:

Sec. 36. Notwithstanding the provisions of any other specific statute to the contrary:

1. If, on or after January 1, 1999, and before the effective date of this act, an electric utility holding company entered into any transaction to acquire a controlling interest in a public utility that provides electric service primarily to customers located outside of this state, the electric utility holding company shall not carry out the transaction unless, on or after the effective date of this act:

(a) The electric utility holding company files with the commission an application for authorization of the transaction; and

(b) The commission issues a written order that authorizes the transaction. The commission shall not authorize the transaction unless the commission finds that the transaction will be in the public interest. The commission may base its authorization of the transaction upon such terms, conditions or modifications as the commission deems appropriate.

2. If the commission authorizes a transaction described in subsection 1 and, before July 1, 2003, the electric utility holding company acquires a controlling interest in such a public utility, or any affiliate thereof, pursuant to the transaction:

(a) Each electric utility in which the electric utility holding company holds a controlling interest shall not use deferred accounting pursuant to section 19 of this act on or after the date on which the electric utility holding company acquires a controlling interest in the public utility, or any affiliate thereof;

(b) Not later than 90 days after that date, each such electric utility shall file one final application to clear the remaining balance in its deferred accounts pursuant to subsection 7 of NRS 704.110, as amended by this act [;] and Assembly Bill No. 661 of this session;

(c) For each such electric utility, the commission shall not carry out the provisions of section 35 of this act concerning deferred accounting and deferred accounts; and

(d) The commission shall carry out the remaining provisions of section 35 of this act, including, without limitation, the commission’s investigation and determination whether the rates that each electric utility placed into effect on March 1, 2001, pursuant to the comprehensive energy plan are just and reasonable and reflect prudent business practices.

3. Any transaction that violates the provisions of this section is void and unenforceable and is not valid for any purpose.

Sec. 100. Section 1 of Senate Bill No. 210 of this session is hereby amended to read as follows:

Section 1. NRS 704.033 is hereby amended to read as follows:

704.033 1. [The] Except as otherwise provided in subsection 6, the commission shall levy and collect an annual assessment from all public utilities , providers of discretionary natural gas service and alternative sellers subject to the jurisdiction of the commission.

2. Except as otherwise provided in [subsection 3,] subsections 3 and 4, the annual assessment must be:

(a) For the use of the commission, not more than 3.50 mills; and

(b) For the use of the consumer’s advocate, not more than 0.75 mills,

on each dollar of gross operating revenue derived from the intrastate operations of such utilities , providers of discretionary natural gas service and alternative sellers in the State of Nevada . [, except that the minimum assessment in any 1 year must be $10.] The total annual assessment must be not more than 4.25 mills.

3. [For railroads the total annual assessment must be the amount levied for the use of the commission pursuant to paragraph (a) of subsection 2.] The levy for the use of the consumer’s advocate must not be assessed against railroads.

4. The minimum assessment in any 1 year must be $100.

5. The gross operating revenue of the utilities must be determined for the preceding calendar year. In the case of:

(a) Telephone utilities, except as otherwise provided in paragraph (c), the revenue shall be deemed to be all intrastate revenues . [that are considered by the commission for the purpose of establishing rates.]

(b) Railroads, the revenue shall be deemed to be the revenue received only from freight and passenger intrastate movements.

(c) All public utilities, providers of discretionary natural gas service and alternative sellers, the revenue does not include the proceeds of any commodity, energy or service furnished to another public utility , provider of discretionary natural gas service or alternative seller for resale.

6. Providers of commercial mobile radio service are not subject to the annual assessment and, in lieu thereof, shall pay to the commission an annual licensing fee of $200.

Sec. 101. Section 2 of Senate Bill No. 210 of this session is hereby amended to read as follows:

Sec. 2. NRS 704.035 is hereby amended to read as follows:

704.035 1. On or before June 1 of each year, the commission shall mail revenue report forms to all public utilities , providers of discretionary natural gas service and alternative sellers under its jurisdiction, to the address of those utilities , providers of discretionary natural gas service and alternative sellers on file with the commission. The revenue report form serves as notice of the commission’s intent to assess [the utilities,] such entities, but failure to notify any [utility] such entity does not invalidate the assessment with respect thereto.

2. Each public utility , provider of discretionary natural gas service and alternative seller subject to the provisions of NRS 704.033 shall complete the revenue report referred to in subsection 1, compute the assessment and return the completed revenue report to the commission accompanied by payment of the assessment and any penalty due, pursuant to the provisions of subsection 5.

3. The assessment is due on July 1 of each year, but may, at the option of the public utility, provider of discretionary natural gas service or alternative seller be paid quarterly on July 1, October 1, January 1 and April 1.

4. The assessment computed by the utility , provider of discretionary natural gas service or alternative seller is subject to review and audit by the commission, and the amount of the assessment may be adjusted by the commission as a result of the audit and review.

5. Any public utility , provider of discretionary natural gas service or alternative seller failing to pay the assessment provided for in NRS 704.033 on or before August 1, or if paying quarterly, on or before August 1, October 1, January 1 or April 1, shall pay, in addition to such assessment, a penalty of 1 percent of the total unpaid balance for each month or portion thereof that the assessment is delinquent, or $10, whichever is greater, but no penalty may exceed $1,000 for each delinquent payment.

6. When a public utility , provider of discretionary natural gas service or alternative seller sells, transfers or conveys substantially all of its assets or , if applicable, its certificate of public convenience and necessity, the commission shall determine, levy and collect the accrued assessment for the current year not later than 30 days after the sale, transfer or conveyance, unless the transferee has assumed liability for the assessment. For purposes of this subsection , the jurisdiction of the commission over the selling, transferring or conveying public utility , provider of discretionary natural gas service or alternative seller continues until it has paid the assessment.

7. The commission may bring an appropriate action in its own name for the collection of any assessment and penalty which is not paid as provided in this section.

8. The commission shall, on a quarterly basis, transfer to the account for the consumer’s advocate that portion of the assessments collected which belongs to the consumer’s advocate.

Sec. 102. Section 6 of Senate Bill No. 372 of this session is hereby amended to read as follows:

Sec. 6. 1. “Provider of electric service” and “provider” mean any person or entity that is in the business of selling electricity to retail customers for consumption in this state, regardless of whether the person or entity is otherwise subject to regulation by the commission.

2. The term includes, without limitation, a provider of new electric resources that is selling electricity to an eligible customer for consumption in this state pursuant to the provisions of sections 3 to 26, inclusive, of Assembly Bill No. 661 of this session.

3. The term does not include:

(a) This state or an agency or instrumentality of this state.

(b) A rural electric cooperative established pursuant to chapter 81 of NRS.

(d) A utility established pursuant to chapter 709 or 710 of NRS.

(e) A cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its members.

(f) A landlord of a mobile home park or owner of a company town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

(g) A landlord who pays for electricity that is delivered through a master meter and who distributes or resells the electricity to one or more tenants for consumption in this state.

Sec. 103. Section 8 of Senate Bill No. 372 of this session is hereby amended to read as follows:

Sec. 8. “Renewable energy system” means:

1. A facility or energy system that:

(a) Uses renewable energy to generate electricity; and

(b) Transmits or distributes the electricity that it generates from renewable energy via:

(1) A power line which is dedicated to the transmission or distribution of electricity generated from renewable energy and which is connected to a facility or system owned, operated or controlled by a provider of electric service; or

(2) A power line which is shared with not more than one facility or energy system generating electricity from nonrenewable energy and which is connected to a facility or system owned, operated or controlled by a provider of electric service.

2. A solar thermal energy system that reduces the consumption of electricity.

3. A net metering system used by a customer-generator pursuant to NRS 704.766 to 704.775, inclusive.

Sec. 104. Section 9 of Senate Bill No. 372 of this session is hereby amended to read as follows:

Sec. 9. 1. “Retail customer” means [a customer who] an end-use customer that purchases electricity [at retail.] for consumption in this state.

2. The term includes, without limitation:

(a) This state, a political subdivision of this state or an agency or instrumentality of this state or political subdivision of this state when it is an end-use customer that purchases electricity [at retail; and] for consumption in this state, including, without limitation, when it is an eligible customer that purchases electricity for consumption in this state from a provider of new electric resources pursuant to the provisions of sections 3 to 26, inclusive, of Assembly Bill No. 661 of this session.

(b) A residential, commercial or industrial end-use customer that purchases electricity for consumption in this state, including, without limitation, an eligible customer that purchases electricity for consumption in this state from a provider of new electric resources pursuant to the provisions of sections 3 to 26, inclusive, of Assembly Bill No. 661 of this session.

(c) A landlord of a mobile home park or owner of a company town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

(d) A landlord who pays for electricity that is delivered through a master meter and who distributes or resells the electricity to one or more tenants for consumption in this state.

Sec. 105. 1. NRS 523.171, 704.080, 704.090 and 704.275 are hereby repealed.

2. Section 2 of Assembly Bill No. 197 of this session is hereby repealed.

3. Section 10 of Assembly Bill No. 369 of this session is hereby repealed.

4. Section 4 of Senate Bill No. 372 of this session is hereby repealed.

Sec. 106. 1. For the purposes of sections 3 to 26, inclusive, of this act:

(a) An electric utility that provides distribution services to an eligible customer who is purchasing energy, capacity or ancillary services from a provider of new electric resources shall charge the eligible customer based upon the rates for the electric utility’s distribution services that were on file with the commission on April 1, 2001, until the commission approves a change in those rates and such a change becomes effective.

(b) Not later than March 1, 2002, the commission shall establish the initial rates for all other components of electric service which are within the jurisdiction of the commission and which are necessary for a provider of new electric resources to sell energy, capacity and ancillary services to an eligible customer pursuant to the provisions of sections 3 to 26, inclusive, of this act. The commission may establish such initial rates as a part of a general rate application that is pending or filed with the commission on or after the effective date of this act.

2. The commission shall:

(a) Not later than November 1, 2001, adopt regulations to carry out and enforce the provisions of sections 3 to 26, inclusive, of this act.

(b) Not later than March 1, 2002, approve tariffs to carry out and enforce the provisions of section 22 of this act.

3. Notwithstanding the provisions of section 25 of this act, the commission is not required to submit a report to the legislative commission for any calendar quarter that ends before October 1, 2001.

4. As used in this section, the words and terms defined in sections 4 to 16, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 107. 1. As soon as practicable after July 1, 2003, the governor shall appoint two additional commissioners to the public utilities commission of Nevada in accordance with the provisions of section 28 of this act. For the initial terms of those commissioners, the governor shall appoint:

(a) One commissioner whose term begins on October 1, 2003, and expires on September 30, 2005; and

(b) One commissioner whose term begins on October 1, 2003, and expires on September 30, 2006.

2. The provisions of this act do not abrogate or affect the term of office of any other commissioner of the public utilities commission of Nevada.

Sec. 108. 1. The provisions of section 54 of this act do not apply to any transaction entered into by a local governmental entity before January 1, 2002, to acquire or otherwise obtain control of the assets of a public utility providing water services.

2. As used in this section:

(a) “Assets” includes, without limitation, any hydroelectric plant, facility, equipment or system which has a generating capacity of not more than 15 megawatts and which is located on the Truckee River or on a waterway that is appurtenant to or connected to the Truckee River.

(b) “Local governmental entity” means a political subdivision of this state or an agency or instrumentality of one or more political subdivisions of this state. The term includes, without limitation, a public water authority consisting of one or more political subdivisions of this state.

Sec. 109. 1. As soon as practicable after the effective date of this act, the appointing authorities set forth in section 84 of this act shall appoint members to the task force for renewable energy and energy conservation which is created by section 84 of this act.

2. At the first meeting of the task force following the appointment of the initial members of the task force, the initial members of the task force shall draw lots to determine which:

(a) Five members of the task force will serve initial terms that expire on June 30, 2004.

(b) Four members of the task force will serve initial terms that expire on June 30, 2003.

3. Not later than 10 days after the first meeting of the task force following the appointment of the initial members of the task force, the public utilities commission of Nevada shall transfer the sum of $250,000 from its reserve account in the public utilities commission regulatory fund, created by NRS 703.147, to the trust fund for renewable energy and energy conservation, created by section 83 of this act.

Sec. 110. 1. Notwithstanding the provisions of this act and except as otherwise provided in subsection 2, the department of business and industry and its director shall exercise all the power and perform all the duties that are assigned to the office of energy and its director pursuant to the provisions of chapter 523 of NRS, as amended by this act, until the date on which the governor certifies that the office of energy and its director are prepared to carry out those provisions, or until January 1, 2002, whichever occurs earlier.

2. During the period described in subsection 1, the office of energy and its director may exercise any power and perform any duty assigned to them pursuant to the provisions of chapter 523 of NRS, as amended by this act, if the exercise of the power or the performance of the duty is necessary as an organizational, preparatory or preliminary measure to prepare the office of energy and its director to carry out those provisions.

Sec. 111. 1. Any administrative regulations adopted by an officer or an agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency remain in force until amended by the officer or agency to which the responsibility for the adoption of the regulations has been transferred.

2. Any contracts or other agreements entered into by an officer or agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency are binding upon the officer or agency to which the responsibility for the administration of the provisions of the contract or other agreement has been transferred. Such contracts and other agreements may be enforced by the officer or agency to which the responsibility for the enforcement of the provisions of the contract or other agreement has been transferred.

3. Any action taken by an officer or agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency remains in effect as if taken by the officer or agency to which the responsibility for the enforcement of such actions has been transferred.

Sec. 112. 1. This section and sections 1 to 27, inclusive, 30 to 94, inclusive, 96 to 111, inclusive, and 113 of this act become effective upon passage and approval.

2. Section 95 of this act becomes effective on July 1, 2001.

3. Sections 28 and 29 of this act become effective on October 1, 2003.

Sec. 113. 1. The legislative counsel shall:

(a) In preparing the reprint and supplements to the Nevada Revised Statutes, appropriately change any references to an officer or agency whose name is changed or whose responsibilities have been transferred pursuant to the provisions of this act to refer to the appropriate officer or agency.

(b) In preparing supplements to the Nevada Administrative Code, appropriately change any references to an officer or agency whose name is changed or whose responsibilities have been transferred pursuant to the provisions of this act to refer to the appropriate officer or agency.

2. Any reference in a bill or resolution passed by the 71st session of the Nevada legislature to an officer or agency whose name is changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency shall be deemed to refer to the officer or agency to which the responsibility is transferred.

TEXT OF REPEALED SECTION

523.171 Information and assistance to state agencies. The director, in cooperation with the chief of the buildings and grounds division of the department of administration, shall, upon request, provide information and assistance to any agency, bureau, board, commission, department or division which is engaged in the management, planning, utilization and distribution of energy.

704.080 Printing and posting of schedules. A copy, or so much of the schedule as the commission shall deem necessary for the use of the public, shall be printed in plain type and posted in every station or office of such public utility where payments are made by the consumers or users, open to the public, in such form and place as to be readily accessible to the public and conveniently inspected.

704.090 Schedule of joint rates: Filing; printing; posting. When a schedule of joint rates or charges is or may be in force between two or more public utilities, such schedule shall, in like manner, be printed and filed with the commission, and so much thereof as the commission may deem necessary for the use of the public shall be posted conspicuously in every station or office as provided in NRS 704.080.

704.275 Powers of commission: Standards for requiring hearing on telephone rates. The commission shall determine whether a hearing must be held when the proposed change by a public utility furnishing telephone service in any schedule stating a new or revised individual or joint rate or charge, or any new or revised individual or joint regulation or practice affecting any rate or charge, will result in an increase in annual gross revenue as certified by the applicant of $50,000 or 10 percent of the applicant’s gross revenue, whichever is less.

Section 2 of Assembly Bill No. 197 of this session:

Sec. 2. NRS 704.965 is hereby amended to read as follows:

704.965 As used in NRS 704.965 to 704.990, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 704.966 to 704.975, inclusive, have the meanings ascribed to them in those sections.

Section 10 of Assembly Bill No. 369 of this session:

Sec. 10. “Consumer’s advocate” means the consumer’s advocate of the bureau of consumer protection in the office of the attorney general.

Section 4 of Senate Bill No. 372 of this session:

Sec. 4. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.”.

Amend the title of the bill to read as follows:

“AN ACT relating to energy; authorizing certain eligible customers to purchase electrical energy, capacity and certain ancillary services from providers of new electric resources; revising and repealing various provisions concerning the regulation of public utilities and the process of establishing and changing rates; expanding the public utilities commission of Nevada from three to five members; revising the authority of the commission to regulate mergers, acquisitions and certain other transactions involving public utilities and other entities; making various changes with respect to net metering; authorizing the director of the department of business and industry to issue industrial development revenue bonds for certain renewable energy generation projects; creating the task force for renewable energy and energy conservation and prescribing its membership and duties; creating the trust fund for renewable energy and energy conservation; creating the office of energy within the office of the governor; transferring control of the Nevada state energy office from the director of the department of business and industry to the office of energy within the office of the governor; requiring certain lodging establishments to include certain information concerning energy costs on their statement of rates; and providing other matters properly relating thereto.”.

Senator Townsend moved the adoption of the amendment.

Remarks by Senators Townsend and O'Donnell.

Conflict of interest declared by Senator Raggio.

Amendment adopted.

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

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

Motion carried.

Senate in recess at 1:43 p.m.

SENATE IN SESSION

At 1:51 p.m.

President Hunt presiding.

Quorum present.

UNFINISHED BUSINESS

Consideration of Assembly Amendments

Senate Bill No. 306.

The following Assembly amendment was read:

Amendment No. 1213.

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

“(b) Is in the unclassified service of the state.”.

Amend sec. 6, page 7, by deleting lines 7 through 17 and inserting:

“284.140 The unclassified service of the state consists of the following state officers or employees in the executive department of the state government who receive annual salaries for their service:

1. Members of boards and commissions, and heads of departments, agencies and institutions required by law to be appointed.

2. Except as otherwise provided in section 3 of Senate Bill No. 401 of this [act] session and NRS 223.085 and 223.570, all persons required by law to be”.

Amend sec. 6, page 7, line 20, by deleting “5.” and inserting “3.”.

Amend sec. 6, page 7, line 23, by deleting “6.” and inserting “4.”.

Amend sec. 6, page 7, by deleting lines 33 through 41.

Amend sec. 6, page 7, line 42, by deleting “11.” and inserting “5.”.

Amend sec. 8, page 8, by deleting lines 31 through 33 and inserting:

“289.550 1. Except as otherwise provided in subsection 2, a person upon whom some or all of the powers of a peace officer are conferred pursuant to NRS 289.150 to 289.360, inclusive, must be certified by the commission within 1 year after the date on which the person commences employment as a peace officer unless the commission, for good cause shown, grants in writing an extension of time, which must not exceed 6 months, by which the person must become certified. A person who fails to become certified within the required time shall not exercise any of the powers of a peace officer after the time for becoming certified has expired.

2. The following persons are not required to be certified by the commission:”.

Amend sec. 8, page 8, line 34, by deleting “1.” and inserting “(a)”.

Amend sec. 8, page 8, line 35, by deleting “2.” and inserting “(b)”.

Amend sec. 8, page 8, line 36, by deleting “3.” and inserting “(c)”.

Amend sec. 8, page 8, line 37, by deleting “4.” and inserting “(d)”.

Amend sec. 8, page 8, line 42, by deleting “5.” and inserting “(e)”.

Amend sec. 8, page 8, line 43, by deleting “6.” and inserting “(f)”.

Amend sec. 8, page 8, line 45, by deleting “7.” and inserting “(g)”.

Amend sec. 8, page 8, line 46, by deleting “[7.] 8.” and inserting “[(g)] (h)”.

Amend sec. 11, page 9, by deleting line 12 and inserting: “explosion, civil disturbance, crisis involving violence on school property, at a school activity or on a school bus, or any other occurrence or threatened”.

Amend sec. 19, page 13, line 40, by deleting “and”.

Amend sec. 19, page 13, by deleting line 41 and inserting:

“(b) Provide training to personnel related to emergency management; and

Amend sec. 32, page 20, line 11, after “appropriation” by inserting “or authorization”.

Amend the bill as a whole by renumbering sections 37 through 39 as sections 42 through 44 and adding new sections designated sections 37 through 41, following sec. 36, to read as follows:

“Sec. 37. Section 3 of Assembly Bill No. 489 of this session is hereby amended to read as follows:

Sec. 3. NRS 179A.075 is hereby amended to read as follows:

179A.075 1. The central repository for Nevada records of criminal history is hereby created within the Nevada highway patrol division of the department.

2. Each agency of criminal justice and any other agency dealing with crime or delinquency of children shall:

(a) Collect and maintain records, reports and compilations of statistical data required by the department; and

(b) Submit the information collected to the central repository in the manner recommended by the advisory committee and approved by the director of the department.

3. Each agency of criminal justice shall submit the information relating to sexual offenses and other records of criminal history that it creates or issues, and any information in its possession relating to the genetic markers of [the blood and the secretor status of the saliva] a biological specimen of a person who is convicted of [sexual assault or any other sexual offense,] an offense listed in subsection 4 of NRS 176.0913, to the division in the manner prescribed by the director of the department. The information must be submitted to the division:

(a) Through an electronic network;

(b) On a medium of magnetic storage; or

(c) In the manner prescribed by the director of the department, within the period prescribed by the director of the department. If an agency has submitted a record regarding the arrest of a person who is later determined by the agency not to be the person who committed the particular crime, the agency shall, immediately upon making that determination, so notify the division. The division shall delete all references in the central repository relating to that particular arrest.

4. The division shall, in the manner prescribed by the director of the department:

(a) Collect, maintain and arrange all information submitted to it relating to:

(1) Sexual offenses and other records of criminal history; and

(2) The genetic markers of [the blood and the secretor status of the saliva] a biological specimen of a person who is convicted of [sexual assault or any other sexual offense.] an offense listed in subsection 4 of NRS 176.0913.

(b) When practicable, use a record of the personal identifying information of a subject as the basis for any records maintained regarding him.

(c) Upon request, provide the information that is contained in the central repository to the state disaster identification team of the office of emergency management created pursuant to section 1 of Senate Bill No. 306 of this [act.] session.

5. The division may:

(a) Disseminate any information which is contained in the central repository to any other agency of criminal justice;

(b) Enter into cooperative agreements with federal and state repositories to facilitate exchanges of information that may be disseminated pursuant to paragraph (a); and

(1) Who has applied to any agency of the State of Nevada or any political subdivision thereof for a license which it has the power to grant or deny;

(2) With whom any agency of the State of Nevada or any political subdivision thereof intends to enter into a relationship of employment or a contract for personal services;

(4) For whom such information is required to be obtained pursuant to NRS 449.179.

6. The central repository shall:

(a) Collect and maintain records, reports and compilations of statistical data submitted by any agency pursuant to subsection 2.

(b) Tabulate and analyze all records, reports and compilations of statistical data received pursuant to this section.

(c) Disseminate to federal agencies engaged in the collection of statistical data relating to crime information which is contained in the central repository.

(d) Investigate the criminal history of any person who:

(1) Has applied to the superintendent of public instruction for a license;

(2) Has applied to a county school district for employment; or

(3) Is employed by a county school district,

(e) Upon discovery, notify the superintendent of each county school district by providing him with a list of all persons:

(1) Investigated pursuant to paragraph (d); or

(2) Employed by a county school district whose fingerprints were sent previously to the central repository for investigation,

(f) Investigate the criminal history of each person who submits fingerprints or has his fingerprints submitted pursuant to NRS 449.176 or 449.179.

7. The central repository may:

(b) Charge a reasonable fee for any publication or special report it distributes relating to data collected pursuant to this section. The central repository may not collect such a fee from an agency of criminal justice, any other agency dealing with crime or the delinquency of children which is required to submit information pursuant to subsection 2 or the state disaster identification team of the office of emergency management created pursuant to section 1 of Senate Bill No. 306 of this[act.] session. All money collected pursuant to this paragraph must be used to pay for the cost of operating the central repository.

8. As used in this section:

(a) “Advisory committee” means the committee established by the director of the department pursuant to NRS 179A.078.

(1) The name, driver’s license number, social security number, date of birth and photograph or computer generated image of a person; and

(2) The fingerprints, voiceprint, retina image and iris image of a person.

Sec. 38. Section 240 of Assembly Bill No. 618 of this session is hereby amended to read as follows:

Sec. 240. NRS 179A.100 is hereby amended to read as follows:

179A.100 1. The following records of criminal history may be disseminated by an agency of criminal justice without any restriction pursuant to this chapter:

(a) Any which reflect records of conviction only; and

(b) Any which pertain to an incident for which a person is currently within the system of criminal justice, including parole or probation.

2. Without any restriction pursuant to this chapter, a record of criminal history or the absence of such a record may be:

(a) Disclosed among agencies which maintain a system for the mutual exchange of criminal records.

(b) Furnished by one agency to another to administer the system of criminal justice, including the furnishing of information by a police department to a district attorney.

3. An agency of criminal justice shall disseminate to a prospective employer, upon request, records of criminal history concerning a prospective employee or volunteer which:

(a) Reflect convictions only; or

(b) Pertain to an incident for which the prospective employee or volunteer is currently within the system of criminal justice, including parole or probation.

4. The central repository shall disseminate to a prospective or current employer, upon request, information relating to sexual offenses concerning an employee, prospective employee, volunteer or prospective volunteer who gives his written consent to the release of that information.

5. Records of criminal history must be disseminated by an agency of criminal justice upon request, to the following persons or governmental entities:

(a) The person who is the subject of the record of criminal history for the purposes of NRS 179A.150.

(b) The person who is the subject of the record of criminal history or his attorney of record when the subject is a party in a judicial, administrative, licensing, disciplinary or other proceeding to which the information is relevant.

(d) The state board of nursing.

(e) The private investigator’s licensing board to investigate an applicant for a license.

(f) A public administrator to carry out his duties as prescribed in chapter 253 of NRS.

(g) A public guardian to investigate a ward or proposed ward or persons who may have knowledge of assets belonging to a ward or proposed ward.

(h) Any agency of criminal justice of the United States or of another state or the District of Columbia.

(i) Any public utility subject to the jurisdiction of the public utilities commission of Nevada when the information is necessary to conduct a security investigation of an employee or prospective employee, or to protect the public health, safety or welfare.

(j) Persons and agencies authorized by statute, ordinance, executive order, court rule, court decision or court order as construed by appropriate state or local officers or agencies.

(k) Any person or governmental entity which has entered into a contract to provide services to an agency of criminal justice relating to the administration of criminal justice, if authorized by the contract, and if the contract also specifies that the information will be used only for stated purposes and that it will be otherwise confidential in accordance with state and federal law and regulation.

(l) Any reporter for the electronic or printed media in his professional capacity for communication to the public.

(m) Prospective employers if the person who is the subject of the information has given written consent to the release of that information by the agency which maintains it.

(n) For the express purpose of research, evaluative or statistical programs pursuant to an agreement with an agency of criminal justice.

(o) The division of child and family services of the department of human resources and any county agency that is operated pursuant to NRS 432B.325 or authorized by a court of competent jurisdiction to receive and investigate reports of abuse or neglect of children and which provides or arranges for protective services for such children.

(p) The welfare division of the department of human resources or its designated representative.

(q) An agency of this or any other state or the Federal Government that is conducting activities pursuant to Part D of Title IV of the Social Security Act, 42 U.S.C. §§ 651 et seq.

(r) The state disaster identification team of the office of emergency management created pursuant to section 1 of Senate Bill No. 306 of this [act.] session.

(s) The commissioner of insurance.

6. Agencies of criminal justice in this state which receive information from sources outside this state concerning transactions involving criminal justice which occur outside Nevada shall treat the information as confidentially as is required by the provisions of this chapter.

Sec. 39. Section 10 of Senate Bill No. 327 of this session is hereby amended to read as follows:

Sec. 10. NRS 459.742 is hereby amended to read as follows:

459.742 The commission, in carrying out its duties and within the limits of legislative appropriations and other available money, may:

1. Enter into contracts, leases or other agreements or transactions;

2. Provide grants of money to local emergency planning committees to improve their ability to respond to emergencies involving hazardous materials;

3. Assist with the development of comprehensive plans for responding to such emergencies in this state;

4. Provide technical assistance and administrative support to the telecommunications unit of the communication and computing division of the department of information technology for the development of systems for communication during such emergencies;

5. Provide technical and administrative support and assistance for training programs;

6. Develop a system to provide public access to data relating to hazardous materials;

7. Support any activity or program eligible to receive money from the contingency account for hazardous materials;

8. Adopt regulations setting forth the manner in which the office of emergency management created pursuant to section 1 of Senate Bill No. 306 of this [act] session shall:

(a) Allocate money received by the division which relates to hazardous materials or is received pursuant to [Public Law 99-499 or Title I of Public Law 93-633;] 42 U.S.C. §§ 11001 et seq. or 49 U.S.C. §§ 5101 et seq.; and

(b) Approve programs developed to address planning for and responding to emergencies involving hazardous materials; and

9. Coordinate the activities administered by state agencies to carry out the provisions of chapter 459 of NRS, [Public Law 99-499 and Title I of Public Law 93-633.] 42 U.S.C. §§ 11001 et seq. and 49 U.S.C. §§ 5101 et seq.

Sec. 40. Section 7 of Senate Bill No. 401 of this session is hereby amended to read as follows:

Sec. 7. NRS 284.140 is hereby amended to read as follows:

284.140 The unclassified service of the state consists of the following state officers or employees in the executive department of the state government who receive annual salaries for their service:

1. Members of boards and commissions, and heads of departments, agencies and institutions required by law to be appointed.

2. Except as otherwise provided in section 3 of this act and NRS 223.085 and 223.570, all persons required by law to be appointed by the governor or heads of departments or agencies appointed by the governor or by boards.

3. All employees other than clerical in the office of the attorney general and the state public defender required by law to be appointed by the attorney general or the state public defender.

4. Except as otherwise provided by the board of regents of the University of Nevada pursuant to NRS 396.251, officers and members of the teaching staff and the staffs of the agricultural extension department and experiment station of the University and Community College System of Nevada, or any other state institution of learning, and student employees of these institutions. Custodial, clerical or maintenance employees of these institutions are in the classified service. The board of regents of the University of Nevada shall assist the director in carrying out the provisions of this chapter applicable to the University and Community College System of Nevada.

5. All other officers and employees authorized by law to be employed in the unclassified service.

Sec. 41. Section 10 of Senate Bill No. 401 of this session is hereby amended to read as follows:

Sec. 10. 1. This section and sections 1 to 6, inclusive, 8 and 9 of this act become effective on July 1, 2001.

2. Section 7 of this act becomes effective at 12:01 a.m. on July 1, 2001.”.

Amend sec. 39, page 22, by deleting line 16 and inserting:

“Sec. 44. 1. This section and sections 1 to 5, inclusive, 7, 9, 10, 12 to 18, inclusive, and 20 to 43, inclusive, of this act become effective on July 1, 2001.

2. Sections 8, 11 and 19 of this act become effective at 12:01 a.m. on July 1, 2001.

3. Section 6 of this act becomes effective at 12:02 a.m. on July 1, 2001.”.

Senator O'Connell moved that the Senate do not concur in the Assembly amendment to Senate Bill No. 306.

Remarks by Senator O'Connell.

Motion carried.

Bill ordered transmitted to the Assembly.

Recede From Senate Amendments

Senator O'Connell moved that the Senate do not recede from its action on Assembly Bill No. 664, that a conference be requested, and that Madam President appoint a first Conference Committee consisting of three members to meet with a like committee of the Assembly.

Remarks by Senator O'Connell.

Motion carried.

Bill ordered transmitted to the Assembly.

Appointment of Conference Committees

Madam President appointed Senators O'Donnell, Porter and Raggio as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 664.

Recede From Senate Amendments

Senator O'Donnell moved that the Senate do not recede from its action on Assembly Bill No. 666, 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.

Motion carried.

Bill ordered transmitted to the Assembly.

Appointment of Conference Committees

Madam President appointed Senators James, Care and Porter as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 666.

Madam President appointed Senators Neal, O'Donnell and O'Connell as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 565.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Senate Bill No. 216, consisting of the undersigned members, has met and reports that:

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

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. 24, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend sec. 4, page 2, by deleting lines 31 and 32 and inserting:

“(b) Meet all applicable requirements imposed pursuant to:

(1) This chapter;

(2) Chapter 624 of NRS; and

(3) Any regulations adopted by the board, with respect”.

Amend sec. 4.5, pages 2 and 3, by deleting line 48 on page 2 and lines 1 through 5 on page 3, and inserting: “construction of a residential pool or spa shall not act as, or carry out the duties of, an officer, director, employee or owner of a bonding company, finance company, or any other corporation or”.

Amend sec. 5, page 3, line 40, after “5.” by inserting: “A contract for the repair, restoration, improvement or construction of a residential pool or spa, regardless of use, is not enforceable against the owner if the contractor receives from a third-party, either directly or indirectly, remuneration or any other thing of value for a loan to finance the repair, restoration, improvement or construction and that fact is not disclosed in writing in the contract.

6.”.

Amend sec. 6, page 4, by deleting lines 1 through 4 and inserting:

“2. It is unlawful for a person to violate any provision of NRS 597.716 or 597.719 or sections 2 to 5, inclusive, of this act.

3. Any person who violates any provision of NRS 597.716 or 597.719 or sections 2 to 5, inclusive, of this act:

(a) For a first offense, is guilty of a misdemeanor and shall be punished by a fine of not more than $1,000, and may be further punished by imprisonment in the county jail for not more than 6 months.

(b) For the second offense, is guilty of a gross misdemeanor and shall be punished by a fine of not less than $2,000 nor more than $4,000, and may be further punished by imprisonment in the county jail for not more than 1 year.

(c) For the third or subsequent offense, is guilty of a class E felony and shall be punished by a fine of not less than $5,000 nor more than $10,000 and may be further punished by imprisonment in the state prison for not less than 1 year and not more than 4 years.

4. The imposition of a penalty provided for in this section is not”.

Amend sec. 11, page 7, lines 16 and 17, by deleting: “residences, contractors and financial institutions” and inserting: “residences and contractors”.

Amend sec. 13, page 8, line 19, by deleting “624.291.” and inserting: “624.291 or section 4 of Assembly Bill No. 620 of this [act.] session.”.

Amend sec. 19, page 11, line 4, by deleting: “10 to 13, inclusive, and” and inserting: “10, 11, 12,”.

Amend sec. 19, page 11, line 6, after “Sections” by inserting “13,”.

Randolph J. Townsend	David R. Parks
Mark Amodei	John Oceguera
Michael Schneider	Dennis Nolan
Senate Conference Committee	Assembly Conference Committee

Senator Townsend moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 216.

Remarks by Senator Townsend.

Motion carried by a constitutional majority.

remarks from the floor

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

Thank you, Madam President. Senate Bill No. 551 was a bill passed by this House and sent to the Governor. It has gone through conference. It regards Internet crimes. Section 5 of that bill deals with the selling of tobacco products over the Internet. The question was raised as to whether that bill appropriately sets out the procedures to determine if the person who is buying the tobacco products is over 18 years of age. The Attorney General, Frankie Sue Del Papa, through one of her deputies, John Albrecht, has written a letter to clarify those provisions. Thinking that is adequate, I would request that the letter be placed into the Journal for this Legislative Day.

June 4, 2001

RE: Section 5, Senate Bill No. 551

To Whom it May Concern:

We have been asked to explain the requirement in Section 5 of Senate Bill No. 551 requiring a policy for ensuring that the recipient signing for tobacco products be over 18 years of age. This explanation generally assumes that the person selling or shipping the tobacco products has a process to validate the age of the individual ordering the product as over 18 years of age.

Although the specific components of a “method for ensuring that the person who deliver such items obtains the signature of a person who is over the age of 18 years when delivering the items” may vary, generally we would look for the following as acceptable under the language of this legislation:

A) The individual receiving and signing for the product is the specific individual who placed the order under circumstances which have validated his or her age as over 18; or

B) Another individual residing at or otherwise responsible for deliveries at the address specified in the order receives the delivery and signs for the delivery, if the individual delivering the product is reasonably assured, visually or otherwise, that the individual signing for the delivery is over the age of 18.

Of course, this is only a general explanation of components which might be acceptable, depending on the related specifics of the system or method of delivery which may make them unacceptable, and other situations or systems may be acceptable to us after we have had the opportunity to review the specifics of any alternative policy submitted to us for our review.

Cordially,

Frankie Sue Del Papa

Attorney General

By: John Albrecht

Senior Deputy Attorney General

Senator Raggio moved that the Senate recess until 5 p.m.

Motion carried.

Senate in recess at 1:59 p.m.

SENATE IN SESSION

At 8:39 p.m.

President Hunt presiding.

Quorum present.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Finance, to which were referred Senate Bills Nos. 587, 588; Assembly Bills Nos. 122, 424, 669, 671, 672, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Also, your Committee on Finance, to which were referred Senate Bill No. 388; Assembly Bill No. 343, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

William J. Raggio, Chairman

Madam President:

Your Committee on Government Affairs, to which was referred Assembly Joint Resolution No. 14, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Ann O'Connell, Chairman

Madam President:

Your Committee on Legislative Affairs and Operations, to which was re-referred Assembly Bill No. 381, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Also, your Committee on Legislative Affairs and Operations, to which was re-referred Senate Bill No. 305, 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 Legislative Affairs and Operations, to which was referred Assembly Concurrent Resolution No. 5, has had the same under consideration, and begs leave to report the same back with the recommendation: Be adopted.

Also, your Committee on Legislative Affairs and Operations, to which was referred Senate Concurrent Resolution No. 50, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and be adopted as amended.

Jon C. Porter, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, June 4, 2001

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day passed Assembly Bill No. 673; Senate Bills Nos. 170, 583, 584, 585, 586.

Also, I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bills Nos. 232, 405, 606.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted, as amended, Assembly Concurrent Resolutions Nos. 3, 21.

Also, I have the honor to inform your honorable body that the Assembly on this day concurred in the Senate Amendment No. 941 to Assembly Bill No. 131; Senate Amendment No. 1197 to Assembly Bill No. 453.

Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to concur in the Senate Amendment No. 1234 to Assembly Bill No. 460.

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. 286, Assembly Amendment No. 893, and requests a conference, and appointed Assemblymen McClain, Gustavson and Claborn as a first Conference Committee to meet with a like committee of the Senate.

Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to recede from its action on Senate Bill No. 576, Assembly Amendment No. 1199, and requests a conference, and appointed Assemblymen Oceguera, Smith and Nolan as a first Conference Committee to meet with a like committee of the Senate.

Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to recede from its action on Senate Bill No. 577, Assembly Amendment No. 1172, and requests a conference, and appointed Assemblymen Anderson, Brower and Oceguera as a first Conference Committee to meet with a like committee of the Senate.

Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Humke, Collins and Smith as a first Conference Committee concerning Assembly Bill No. 271.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the reports of the first Conference Committees concerning Senate Bills Nos. 25, 49, 99, 377, 524, 554; Assembly Bills Nos. 399, 637.

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. 83 and appointed Assemblymen Manendo, Nolan and Ohrenschall as a second Conference Committee to meet with a like committee of the Senate for further consideration of Senate Bill No. 83.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the second Conference Committee concerning Assembly Bill No. 195.

Patricia R. Williams

Assistant Chief Clerk of the Assembly

MOTIONS, RESOLUTIONS AND NOTICES

Senate Concurrent Resolution No. 3.

Senator Porter moved the adoption of the resolution.

Remarks by Senator Porter.

Resolution adopted, as amended.

Resolution ordered transmitted to the Assembly.

Senate Concurrent Resolution No. 5.

Senator Porter moved the adoption of the resolution.

Remarks by Senator Porter.

Resolution adopted, as amended.

Resolution ordered transmitted to the Assembly.

Senate Concurrent Resolution No. 9.

Senator Porter moved the adoption of the resolution.

Remarks by Senator Porter.

Resolution adopted, as amended.

Resolution ordered transmitted to the Assembly.

Senate Concurrent Resolution No. 32.

Resolution read.

The following amendment was proposed by the Committee on Legislative Affairs and Operations:

Amendment No. 1268.