Senate Bill No. 84–Committee on Human
Resources and Facilities

 

CHAPTER..........

 

AN ACT relating to personal care facilities; revising provisions relating to the administration of surety bonds and other obligations required of certain facilities that provide care for elderly persons; decreasing the amount of those surety bonds and other obligations; exempting certain facilities from the requirement of filing such a surety bond or depositing such an obligation in certain banks or trust companies; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

    Section 1. NRS 449.065 is hereby amended to read as follows:

    449.065  1.  Except as otherwise provided in [subsection]

subsections 6 and 7 and NRS 449.067, each facility for intermediate

care, facility for skilled nursing, residential facility for groups and

agency to provide nursing in the home shall, when applying for a

license or renewing a license, file with the Administrator of the

[Aging Services Division of the Department of Human Resources]

Health Division a surety bond:

    (a) If the facility or agency employs less than 7 employees, in

the amount of [$10,000;] $5,000;

    (b) If the facility or agency employs at least 7 but not more than

25 employees, in the amount of [$50,000;] $25,000; or

    (c) If the facility or agency employs more than 25 employees, in

the amount of [$100,000.] $50,000.

    2.  A bond filed pursuant to this section must be executed by

the facility or agency as principal and by a surety company as

surety. The bond must be payable to the Aging Services Division of

the Department of Human Resources and must be conditioned to

provide indemnification to an older patient who the Specialist for

the Rights of Elderly Persons determines has suffered property

damage as a result of any act or failure to act by the facility or

agency to protect the property of the older patient.

    3.  Except when a surety is released, the surety bond must cover

the period of the initial license to operate or the period of the

renewal, as appropriate.

    4.  A surety on any bond filed pursuant to this section may be

released after the surety gives 30 days’ written notice to the

Administrator of the [Aging Services Division of the Department of

Human Resources,] Health Division, but the release does not

discharge or otherwise affect any claim filed by an older patient for

property damaged as a result of any act or failure to act by the

facility or agency to protect the property of the older patient alleged

to have occurred while the bond was in effect.

    5.  A license is suspended by operation of law when the facility

or agency is no longer covered by a surety bond as required by this

section or by a substitute for the surety bond pursuant to NRS

449.067. The Administrator of the [Aging Services Division of the

Department of Human Resources] Health Division shall give the

facility or agency at least 20 days’ written notice before the release

of the surety or the substitute for the surety, to the effect that the

license will be suspended by operation of law until another surety

bond or substitute for the surety bond is filed in the same manner

and amount as the bond or substitute being terminated.

    6.  The Administrator of the [Aging Services Division of the

Department of Human Resources] Health Division may exempt a

residential facility for groups from the requirement of filing a surety

bond pursuant to this section if the Administrator determines that

the requirement would result in undue hardship to the residential

facility for groups.

    7.  The requirement of filing a surety bond set forth in this

section does not apply to a facility for intermediate care, facility

for skilled nursing, residential facility for groups or agency to

provide nursing in the home that is operated and maintained by

the State of Nevada or an agency thereof.

    Sec. 2.  NRS 449.067 is hereby amended to read as follows:

    449.067  1.  As a substitute for the surety bond required

pursuant to NRS 449.065, a facility for intermediate care, a facility

for skilled nursing, a residential facility for groups and an agency to

provide nursing in the home may deposit with any bank or trust

company authorized to do business in this state, upon approval from

the Administrator of the [Aging Services Division of the

Department of Human Resources:] Health Division:

    (a) An obligation of a bank, savings and loan association, thrift

company or credit union licensed to do business in this state;

    (b) Bills, bonds, notes, debentures or other obligations of the

United States or any agency or instrumentality thereof, or

guaranteed by the United States; or

    (c) Any obligation of this state or any city, county, town,

township, school district or other instrumentality of this state, or

guaranteed by this state, in an aggregate amount, based upon

principal amount or market value, whichever is lower.

    2.  The obligations of a bank, savings and loan association,

thrift company or credit union must be held to secure the same

obligation as would the surety bond required by NRS 449.065. With

the approval of the Administrator of the [Aging Services Division,]

Health Division, the depositor may substitute other suitable

obligations for those deposited, which must be assigned to the

Aging Services Division of the Department of Human Resources

and are negotiable only upon approval by the Administrator of the

Aging Services Division.

    3.  Any interest or dividends earned on the deposit accrue to the

account of the depositor.

    4.  The deposit must be an amount at least equal to the surety

bond required by NRS 449.065 and must state that the amount may

not be withdrawn except by direct and sole order of the

Administrator of the Aging Services Division.

    Sec. 3.  On July 1, 2003, or as soon thereafter as practicable,

the Administrator of the Aging Services Division of the Department

of Human Resources shall transfer to the Administrator of the

Health Division of the Department to carry out the provisions of this

act:

    1.  All bonds filed with the Administrator of the Aging Services

Division pursuant to NRS 449.065 and administered by the

Administrator of the Aging Services Division as of June 30, 2003;

    2.  All information concerning obligations deposited with a

bank or trust company pursuant to NRS 449.067 and administered

by the Administrator of the Aging Services Division as of June 30,

2003; and

    3.  Any other information that the Administrator of the Aging

Services Division believes would assist the Administrator of the

Health Division in carrying out the provisions of this act.

    Sec. 4.  This act becomes effective on July 1, 2003.

 

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