NEVADA LEGISLATURE

THE SEVENTY-EIGHTH DAY

Carson City (Monday), April 21, 2003

Assembly called to order at 10:24 a.m.

Mr. Speaker presiding.

Roll called.

All present.

Prayer by the Chaplain, Yvonne L. Murphy.

Our Father God in Heaven, we bow before You today, seeking Your divine guidance, wisdom, grace, and most of all Your compassion. As I think about the business of this Chamber, I am reminded of words written by Paul, in Philippians, the 3rd chapter and the 13th verse: “Brethren, I count not myself apprehended; but this one thing I do, forgetting those things which are behind and reaching forth unto the things that lie before me.” Lord, may we humbly press forward in our legislative service and provide for the citizens of this great State wise and judicious leadership.

Amen.

Pledge of Allegiance to the Flag.

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

Motion carried.

REPORTS OF COMMITTEES

Mr. Speaker:

Your Committee on Health and Human Services, to which were referred Assembly Bills
Nos. 326, 384, 503, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Ellen Koivisto, Chairman

Mr. Speaker:

Your Committee on Judiciary, to which was referred Assembly Bill No. 320, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Bernie Anderson, Chairman

Mr. Speaker:

Your Committee on Natural Resources, Agriculture, and Mining, to which was referred Assembly Bill No. 215, 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 Natural Resources, Agriculture, and Mining, to which was referred Assembly Bill No. 237, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Tom Collins, Chairman

Mr. Speaker:

Your Committee on Taxation, to which was referred Assembly Bill No. 208, 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 Taxation, to which was referred Assembly Bill No. 348, 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 Taxation, to which was referred Assembly Bill No. 366, 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 Taxation, to which was referred Assembly Bill No. 516, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

David Parks, Chairman

Mr. Speaker:

Your Committee on Transportation, to which was referred Assembly Bill No. 519, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Vonne Chowning, Chairman

Mr. Speaker:

Your Concurrent Committee on Ways and Means, to which was referred
Assembly Bill No. 246, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Morse Arberry Jr., Chairman

MESSAGES FROM THE Senate

Senate Chamber, Carson City, April 18, 2003

To the Honorable the Assembly:

I have the honor to inform your honorable body that the Senate on this day passed, as amended, Senate Bills Nos. 38, 102, 124, 234, 241, 317, 458.

Mary Jo Mongelli

Assistant Secretary of the Senate

MOTIONS, RESOLUTIONS AND NOTICES

Assemblywoman Buckley moved that the reading of Histories on all bills be dispensed with for this legislative day.

Motion carried.

INTRODUCTION, FIRST READING AND REFERENCE

Senate Bill No. 38.

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

Motion carried.

Senate Bill No. 102.

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

Motion carried.

Senate Bill No. 124.

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

Motion carried.

Senate Bill No. 234.

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

Motion carried.

Senate Bill No. 241.

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

Motion carried.

Senate Bill No. 317.

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

Motion carried.

Senate Bill No. 458.

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

Motion carried.

MOTIONS, RESOLUTIONS AND NOTICES

Assemblywoman Chowning moved that Assembly Bill No. 267 be taken from the Chief Clerk's desk and re-referred to the Committee on
Ways and Means.

Remarks by Assemblywoman Chowning

Motion carried.

Assemblywoman Giunchigliani moved that Assembly Bill No. 354 be taken from the Chief Clerk's desk and placed on the General File.

Remarks by Assemblywoman Giunchigliani.

Motion carried.

Assemblywoman Buckley moved that Assembly Bills Nos. 208, 215, 237, 320, 326, 348, 366, 503, 516 and 519 be placed on the Second Reading File.

Motion carried.

Assemblywoman Buckley moved that Assembly Bill No. 246 be placed on the General File.

Motion carried.

Assemblyman Goldwater moved that Assembly Bill No. 453 be taken from the Chief Clerk's desk and placed at the top of the Second Reading File.

Remarks by Assemblyman Goldwater.

Motion carried.

Assemblyman Williams moved that Assembly Bill No. 311 be taken from the General File and re-referred to the Committee on Ways and Means.

Remarks by Assemblyman Williams.

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

Assembly in recess at 10:38 a.m.

ASSEMBLY IN SESSION

At 10:44 a.m.

Mr. Speaker presiding.

Quorum present.

Assemblyman Williams withdrew the motion that Assembly Bill No. 311 be taken from the General File and re-referred to the Committee on
Ways and Means.

SECOND READING AND AMENDMENT

Assembly Bill No. 453.

Bill read second time.

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

Amendment No. 524.

Amend sec. 4, page 4, by deleting line 15 and inserting:

“(2) Medical or dental malpractice ~~[;]~~ of:

(I) A practitioner licensed pursuant to chapter 630, 630A, 631, 632, 633, 634, 634A, 635, 636, 637, 637A, 637B, 639 or 640 of NRS;

(II) A hospital or other health care facility; or

(III) Any related corporate entity.”.

Amend sec. 22, page 21, line 19, by deleting “felony,” and inserting: “felony committed on or after October 1, 2003,”.

Amend the bill as a whole by adding new sections designated sections 38.3 and 38.7, following sec. 38, to read as follows:

“Sec. 38.3. NRS 685A.080 is hereby amended to read as follows:

685A.080 1. Upon placing a surplus lines coverage, the broker shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer, or, if such a policy is not then available, the surplus lines broker’s certificate executed by the broker or a cover note . ~~[endorsed by the broker.]~~ Such a certificate or ~~[endorsed]~~ cover note must show the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and rate charged and taxes collected from the insured, and the name and address of the insured and insurer and must state that the broker has verified that the insurance described has been granted or issued. If the direct risk is assumed by more than one insurer, the certificate must state the name and address and proportion of the entire direct risk assumed by each such insurer.

2. A broker shall not issue any such certificate or any cover note, or purport to insure or represent that insurance will be or has been granted by any unauthorized insurer, unless he has prior written authority from the insurer for the insurance, or has received information from the insurer in the regular course of business that the insurance has been granted, or an insurance policy providing the insurance actually has been issued by the insurer and delivered to the insured.

3. If after the issuance and delivery of any such certificate there is any change as to the identity of the insurers, or the proportion of the direct risk assumed by an insurer as stated in the broker’s original certificate, or in any other material respect as to the insurance evidenced by the certificate, the broker shall promptly issue and deliver to the insured a substitute certificate accurately showing the current status of the coverage and the insurers responsible thereunder.

4. If a policy issued by the insurer is not available upon placement of the insurance and the broker has issued and delivered his certificate as provided in this section, upon request therefor by the insured the broker shall as soon as reasonably possible procure from the insurer its policy evidencing the insurance and deliver the policy to the insured in replacement of the broker’s certificate theretofore issued.

5. Any surplus lines broker who knowingly or negligently issues a false certificate of insurance or who fails promptly to notify the insured of any material change with respect to the insurance by delivery to the insured of a substitute certificate as provided in subsection 3 is subject to the penalty provided by NRS 679A.180 or to any greater applicable penalty otherwise provided by law.

Sec. 38.7. NRS 685A.090 is hereby amended to read as follows:

685A.090 ~~[Every]~~ Each insurance contract procured and delivered as a surplus lines coverage pursuant to this chapter must ~~[be countersigned by the broker who procured it, and must]~~ have conspicuously stamped upon it:

This insurance contract is issued pursuant to the Nevada insurance laws by an insurer neither licensed by nor under the supervision of the Division of Insurance of the Department of Business and Industry of the State of Nevada. If the insurer is found insolvent, a claim under this contract is not covered by the Nevada Insurance Guaranty Association Act.”.

Amend sec. 39, page 33, line 4, by deleting: “in this state” and inserting: “~~[in this state]~~”.

Amend the bill as a whole by adding a new section designated sec. 39.5, following sec. 39, to read as follows:

“Sec. 39.5. NRS 685A.180 is hereby amended to read as follows:

685A.180 1. On or before March 1 of each year each broker shall pay to the Commissioner a tax on surplus lines coverages written by him in unauthorized insurers during the preceding calendar year at the same rate of tax as imposed by law on the premiums of similar coverages written by authorized insurers. If a broker has paid any taxes pursuant to
NRS 685A.175, he shall deduct the total paid from the tax due and pay the remainder, if any.

2. For the purposes of this section, the “premium” on surplus lines coverages includes:

(a) The gross amount charged by the insurer for the insurance, less any return premium;

(b) Any fee allowed by NRS 685A.155;

(d) Any membership fee; ~~[and]~~

(e) Any inspection fee; and

(f) Any other fees or assessments charged by the insurer as consideration for the insurance. Premium does not include any additional amount charged for state or federal tax, or for filing affidavits or reports of coverage . ~~[, inspection fee or the communication expenses of the broker.]~~

3. If a contract for surplus lines insurance covers risks or exposures only partially in this state, the tax so payable must be computed on that portion of the premium properly allocable to the risks or exposures located in this state. The Commissioner may adopt regulations which establish standards for allocating premiums for risks located in this state in the same manner as premiums are allocated pursuant to NRS 680B.030.

4. The Commissioner shall promptly deposit all taxes collected by him pursuant to this section with the State Treasurer, to the credit of the State General Fund.

5. A broker who receives a credit for tax paid shall refund to each insured the amount of the credit attributable to the insured when the insurer pays a return premium or within 30 days, whichever is earlier.”.

Amend sec. 43, page 34, line 35, after “insurer” by inserting: “or a domestic reciprocal insurer”.

Amend sec. 44, page 34, line 39, by deleting “insurer.” and inserting: “insurer or a domestic reciprocal insurer.”.

Amend sec. 44, page 34, line 45, after “insurer” by inserting: “or a domestic reciprocal insurer”.

Amend sec. 44, page 35, line 3, by deleting “insurer;” and inserting: “insurer or a domestic reciprocal insurer;”.

Amend sec. 45, page 35, line 10, by deleting “insurer,” and inserting: “insurer or domestic reciprocal insurer,”.

Amend sec. 45, page 35, line 16, by deleting “insurer.” and inserting: “insurer or domestic reciprocal insurer.”.

Amend sec. 45, page 35, by deleting lines 17 through 19 and inserting:

“3. An association must comply with the provisions of:

(a) Chapter 692B of NRS, as applicable to mutual insurers, to qualify as a domestic mutual insurer; or

(b) Chapter 694B of NRS, as applicable to reciprocal insurers, to qualify as a domestic reciprocal insurer.”.

Amend sec. 46, page 35, line 22, after “insurers,” by inserting: “if the association is qualifying as a domestic mutual insurer, or to domestic reciprocal insurers, if the association is qualifying as a domestic reciprocal insurer,”.

Amend sec. 46, page 35, line 24, by deleting “insurer.” and inserting: “insurer or a domestic reciprocal insurer.”.

Amend sec. 48, page 36, line 14, by deleting “divided” and inserting “dividend”.

Amend sec. 48, page 36, line 20, after “returned” by inserting: “for a policy of industrial insurance”.

Amend sec. 56, page 43, line 22, before “An” by inserting “1.”.

Amend sec. 56, page 43, line 24, by deleting “30” and inserting “~~[30]~~ 60”.

Amend sec. 56, page 43, line 34, by deleting “1.” and inserting “(a)”.

Amend sec. 56, page 43, line 36, by deleting “2.” and inserting “(b)”.

Amend sec. 56, page 43, between lines 36 and 37, by inserting:

“2. For the purpose of subsection 1, if the policy is a policy of industrial insurance, the term “rate” means the cost of insurance based on a unit of exposure to liability before any adjustments are made for an individual employer’s losses or expenses, or a combination of both. The term does not include:

(a) The minimum premiums charged by an insurer;

(b) The prospective loss cost portion of the rate as filed by the Advisory Organization and approved by the Commissioner pursuant to
NRS 686B.177; or

(c) Any experience modification factor applicable to the holder of the policy.”.

Amend the bill as a whole by deleting sec. 76 and adding:

“Sec. 76. (Deleted by amendment.)”.

Amend the bill as a whole by adding a new section designated sec. 80.5, following sec. 80, to read as follows:

“Sec. 80.5. NRS 695C.055 is hereby amended to read as follows:

695C.055 1. The provisions of NRS 449.465, 679B.700, subsections 2, 4, 18, 19 and 32 of NRS 680B.010, NRS ~~[680B.025]~~ 680B.020 to 680B.060, inclusive, and chapter 695G of NRS apply to a health maintenance organization.

2. For the purposes of subsection 1, unless the context requires that a provision apply only to insurers, any reference in those sections to “insurer” must be replaced by “health maintenance organization.” ”.

Amend the bill as a whole by adding a new section designated sec. 82.5, following sec. 82, to read as follows:

“Sec. 82.5. NRS 697.270 is hereby amended to read as follows:

697.270 A bail agent shall not ~~[become a surety]~~ act as an attorney-in-fact for an insurer on an undertaking unless he has registered in the office of the sheriff and with the clerk of the district court in which the agent resides, and he may register in the same manner in any other county. Any bail agent shall file a certified copy of his appointment by power of attorney from each insurer which he represents as agent with each of such officers. The bail agent shall register and file a certified copy of renewed power of attorney annually on July 1. The clerk of the district court and the sheriff shall not permit the registration of a bail agent unless the agent is licensed by the Commissioner.”.

Amend the bill as a whole by adding a new section designated sec. 83.5, following sec. 83, to read as follows:

“Sec. 83.5. NRS 697.300 is hereby amended to read as follows:

697.300 1. A bail agent shall not, in any bail transaction or in connection therewith, directly or indirectly, charge or collect money or other valuable consideration from any person except for the following purposes:

(a) To pay the premium at the rates established by the insurer, in accordance with chapter 686B of NRS, or to pay the charges for the bail bond filed in connection with the transaction at the rates filed in accordance with the provisions of this Code. The rates must be ~~[not less than 10 percent or more than]~~ 15 percent of the amount of the bond or $50, whichever is greater.

(b) To provide collateral.

(1) Guard fees.

(2) Notary public fees, recording fees, expenses incurred for necessary long distance telephone calls and charges for telegrams.

(3) Travel expenses incurred more than 25 miles from the agent’s principal place of business. Such expenses:

(I) May be billed at the rate provided for state officers and employees generally; and

(II) May not be charged in areas where bail agents advertise a local telephone number.

(4) Expenses incurred to verify underwriting information.

(5) Any other actual expenditure necessary to the transaction which is not usually and customarily incurred in connection with bail transactions.

(d) To reimburse himself, or have a right of action against the principal or any indemnitor, for actual expenses incurred in good faith, by reason of breach by the defendant of any of the terms of the written agreement under which and pursuant to which the undertaking of bail or bail bond was written. If there is no written agreement, or an incomplete writing, the surety may, at law, enforce its equitable rights against the principal and his indemnitors, in exoneration. Such reimbursement or right of action must not exceed the principal sum of the bond or undertaking, plus any reasonable expenses that may be verified by receipt in a total amount of not more than the principal sum of the bond or undertaking, incurred in good faith by the surety, its agents, licensees and employees by reason of the principal’s breach.

2. This section does not prevent the full and unlimited right of a bail agent to execute undertaking of bail on behalf of a nonresident agent of the surety he represents. The licensed resident bail agent is entitled to a minimum countersignature fee of $5, with a maximum countersignature fee of $100, plus expenses incurred in accordance with paragraphs (c) and (d) of subsection 1. Such countersignature fees may be charged in addition to the premium of the undertaking.”.

Amend sec. 84, page 65, line 42, by deleting “section.” and inserting “chapter.”.

Amend sec. 84, page 66, line 8, after “whether” by inserting: “the bail agent or surety insurer has received notice that”.

Amend sec. 84, page 66, by deleting lines 10 and 11 and inserting: “obligation of a bond, it must be returned ~~[within 30 days]~~ immediately after receipt of the request for return of the collateral and notice of the entry of any order by an authorized official”.

Amend sec. 84, page 66, line 26, after “whether the” by inserting: “bail agent or surety insurer has received notice that the”.

Amend sec. 84, page 66, line 36, by deleting “assignee” and inserting “surety insurer”.

Amend the bill as a whole by adding a new section designated sec. 85.5, following sec. 85, to read as follows:

“Sec. 85.5. NRS 178.512 is hereby amended to read as follows:

178.512 The court shall not set aside a forfeiture unless:

1. The surety submits an application to set it aside on the ground that the defendant:

(a) Has appeared before the court since the date of the forfeiture and has presented ~~[a]~~ :

(1) A satisfactory excuse for his absence; and

(2) Satisfactory evidence that the surety did not in any way cause or aid the absence of the defendant;

(b) Was dead before the date of the forfeiture but the surety did not know and could not reasonably have known of his death before that date;

(c) Was unable to appear before the court before the date of the forfeiture because of his illness or his insanity, but the surety did not know and could not reasonably have known of his illness or insanity before that date;

(d) Was unable to appear before the court before the date of the forfeiture because he was being detained by civil or military authorities, but the surety did not know and could not reasonably have known of his detention before that date; or

(e) Was unable to appear before the court before the date of the forfeiture because he was deported, but the surety did not know and could not reasonably have known of his deportation before that date,

and the court, upon hearing the matter, determines that one or more of the grounds described in this subsection exist and that the surety did not in any way cause or aid the absence of the defendant; and

2. The court determines that justice does not require the enforcement of the forfeiture.”.

Amend sec. 89, page 70, line 44, by deleting “~~[120]~~ 30” and inserting “120”.

Amend sec. 90, page 72, line 18, by deleting “April” and inserting “~~[April]~~ May”.

Amend sec. 90, page 72, line 19, by deleting “90” and inserting “~~[90]~~ 120”.

Amend the bill as a whole by deleting sec. 92 and adding:

“Sec. 92. (Deleted by amendment.)”.

Amend sec. 94, page 74, lines 21 through 23, by deleting the brackets and strike-through.

Amend sec. 94, page 74, line 25, by deleting “~~[(d)]~~ (c)” and inserting “(d)”.

Amend the bill as a whole by deleting sec. 95 and adding:

“Sec. 95. (Deleted by amendment.)”.

Amend the title of the bill by deleting the thirteenth through twenty-first lines and inserting: “are obligated to pay for a covered claim; requiring an insurer that issues a policy of insurance covering the liability of certain physicians to submit a report to the Commissioner within a certain period after closing a claim under the policy; revising the order of distribution of certain claims from the estate of an insurer on liquidation of the insurer; prohibiting a bail agent from acting as an attorney-in-fact for an insurer on an undertaking unless the bail agent registers in the office of the sheriff and with the clerk of the district court in which the bail agent resides; requiring a member of an association of self-insured public or private employers to include certain information in a notice of intent to withdraw from the association; providing penalties; and providing other matters properly relating thereto.”.

Assemblyman Goldwater moved the adoption of the amendment.

Remarks by Assemblyman Goldwater.

Amendment adopted.

The following amendment was proposed by Assemblywoman Buckley:

Amendment No. 518.

Amend the bill as a whole by adding a new section designated as sec. 55.5, following sec. 55, to read as follows:

“Sec. 55.5. NRS 687B.145 is hereby amended to read as follows:

687B.145 1. Any policy of insurance or endorsement providing coverage under the provisions of NRS 690B.020 or other policy of casualty insurance may provide that if the insured has coverage available to him under more than one policy or provision of coverage, any recovery or benefits may equal but not exceed the higher of the applicable limits of the respective coverages, and the recovery or benefits must be prorated between the applicable coverages in the proportion that their respective limits bear to the aggregate of their limits. Any provision which limits benefits pursuant to this section must be in clear language and be prominently displayed in the policy, binder or endorsement. Any limiting provision is void if the named insured has purchased separate coverage on the same risk and has paid a premium calculated for full reimbursement under that coverage.

2. Except as otherwise provided in subsection 5, insurance companies transacting motor vehicle insurance in this state must offer, on a form approved by the Commissioner, uninsured and underinsured vehicle coverage in an amount equal to the limits of coverage for bodily injury sold to an insured under a policy of insurance covering the use of a passenger car. The insurer is not required to reoffer the coverage to the insured in any replacement, reinstatement, substitute or amended policy, but the insured may purchase the coverage by requesting it in writing from the insurer. Each renewal must include a copy of the form offering such coverage. Uninsured and underinsured vehicle coverage must include a provision which enables the insured to recover up to the limits of his own coverage any amount of damages for bodily injury from his insurer which he is legally entitled to recover from the owner or operator of the other vehicle to the extent that those damages exceed the limits of the coverage for bodily injury carried by that owner or operator. If an insured suffers actual damages subject to the limitation of liability provided pursuant to NRS 41.035, underinsured vehicle coverage must include a provision which enables the insured to recover up to the limits of his own coverage any amount of damages for bodily injury from his insurer for the actual damages suffered by the insured that exceed that limitation of liability.

3. An insurance company transacting motor vehicle insurance in this state must offer an insured under a policy covering the use of a passenger car, the option of purchasing coverage in an amount of at least $1,000 for the payment of reasonable and necessary medical expenses resulting from an accident. The offer must be made on a form approved by the Commissioner. The insurer is not required to reoffer the coverage to the insured in any replacement, reinstatement, substitute or amended policy, but the insured may purchase the coverage by requesting it in writing from the insurer. Each renewal must include a copy of the form offering such coverage.

4. An insurer who makes a payment to an injured person on account of underinsured vehicle coverage as described in subsection 2 is not entitled to subrogation against the underinsured motorist who is liable for damages to the injured payee. This subsection does not affect the right or remedy of an insurer under subsection 5 of NRS 690B.020 with respect to uninsured vehicle coverage. As used in this subsection, “damages” means the amount for which the underinsured motorist is alleged to be liable to the claimant in excess of the limits of bodily injury coverage set by the underinsured motorist’s policy of casualty insurance.

5. An insurer need not offer, provide or make available uninsured or underinsured vehicle coverage in connection with a general commercial liability policy, an excess policy, an umbrella policy or other policy that does not provide primary motor vehicle insurance for liabilities arising out of the ownership, maintenance, operation or use of a specifically insured motor vehicle.

6. As used in this section:

(a) “Excess policy” means a policy that protects a person against loss in excess of a stated amount or in excess of coverage provided pursuant to another insurance contract.

(b) “Passenger car” has the meaning ascribed to it in NRS 482.087.

(c) “Umbrella policy” means a policy that protects a person against losses in excess of the underlying amount required to be covered by other policies.”.

Amend the title of the bill, tenth line, after “Commissioner;” by inserting:

“clarifying that underinsured vehicle coverage includes coverage for certain damages to the extent those damages exceed a limitation of liability for a governmental agency;”.

Assemblywoman Buckley moved the adoption of the amendment.

Remarks by Assemblywoman Buckley.

Amendment adopted.

Bill ordered reprinted, engrossed, and to third reading.

Assembly Bill No. 208.

Bill read second time.

The following amendment was proposed by the Committee on Taxation:

Amendment No. 349.

Amend sec. 6, page 4, line 8, by deleting: “upon passage and approval.” and inserting: “on July 1, 2003.”.

Assemblyman Parks moved the adoption of the amendment.

Remarks by Assemblyman Parks.

Amendment adopted.

Bill ordered reprinted, engrossed, and to third reading.

Assembly Bill No. 215.

Bill read second time.

The following amendment was proposed by the Committee on
Natural Resources, Agriculture, and Mining:

Amendment No. 346.

Amend the bill as a whole by deleting sections 1 through 3, renumbering sec. 3 as sec. 5 and adding new sections designated sections 1 through 4, following the enacting clause, to read as follows:

“Section 1. Chapter 548 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

Sec. 2. In addition to other powers granted in this chapter, a district and the supervisors thereof may, in furtherance of the purposes and provisions of this chapter:

1. Obtain options upon and acquire, by purchase, exchange, lease, gift, grant, bequest, devise or otherwise, except by adverse possession, any property, real or personal, or rights or interests therein;

2. Maintain, administer and improve any properties acquired;

3. Receive income from such properties and expend that income; and

4. Sell, lease or otherwise dispose of any of its property or interests therein.

Sec. 3. 1. If a district acquires real property on or after July 1, 2003, which is not exempt from property taxes at the time it is acquired by the district, the board of county commissioners of the county in which the property is located shall determine whether the district is required to make payments in lieu of taxes on the property.

2. In determining whether to require the district to make payments in lieu of taxes, the board shall consider the contributions made by the district to the community, such as, providing a meeting place for community activities and such other factors as the board determines appropriate.

3. If the district is required to make payments in lieu of taxes, the amount of the payments must be equal to the property taxes which would have been payable on the property if it were not exempt from taxation. The county assessor shall, solely for the purpose of facilitating the payments in lieu of taxes:

(a) Assess the property in the same manner as the taxable property in the county is assessed; and

(b) Mail to the district an individual bill for the payment in lieu of taxes in the same manner as is required by NRS 361.480 for an individual tax bill.

4. The payments in lieu of taxes are due at the same time and must be collected, accounted for and distributed in the same manner as if the property remained taxable after it was acquired by the district, except that no lien attaches upon any property or money of the district by virtue of any failure to make all or any part of the payments.

Sec. 4. NRS 361.060 is hereby amended to read as follows:

361.060 1. All lands and other property owned by the Nevada Rural Housing Authority or any county, domestic municipal corporation, irrigation drainage or reclamation district or town in this state are exempt from taxation, except as otherwise provided in NRS 539.213 with respect to certain community pastures.

2. Real property acquired on or after July 1, 2003, by a conservation district pursuant to section 2 of this act is exempt from taxation.”.

Amend the title of the bill to read as follows:

“AN ACT relating to conservation districts; authorizing a conservation district to acquire, maintain or dispose of real or personal property for certain purposes; requiring a board of county commissioners to determine whether certain real property acquired by a conservation district is subject to payments in lieu of taxes; requiring the board of county commissioners to consider certain factors in making that determination; exempting from taxation certain real property acquired by a conservation district; and providing other matters properly relating thereto.”.

Assemblyman Collins moved the adoption of the amendment.

Remarks by Assemblyman Collins.

Amendment adopted.

Bill ordered reprinted, engrossed, and to third reading.

Assembly Bill No. 237.

Bill read second time.

The following amendment was proposed by the Committee on
Natural Resources, Agriculture, and Mining:

Amendment No. 191.

Amend the bill as a whole by deleting sections 1 through 4, renumbering sections 5 through 13 as sections 2 through 10, and adding a new section designated section 1, following the enacting clause, to read as follows:

“Section 1. Chapter 486A of NRS is hereby amended by adding thereto a new section to read as follows:

“Ultra low-sulfur diesel fuel” means diesel fuel having a maximum sulfur content of 15 parts per million by weight.”.

Amend sec. 6, page 2, line 36, by deleting: “sections 2, 3 and 4” and inserting “section 1”.

Amend sec. 6, page 2, line 38, by deleting: “sections 2, 3 and 4” and inserting “section 1”.

Amend sec. 7, page 3, by deleting lines 2 through 5 and inserting: “California Air Resources Board; and

4. Finished diesel fuel that:

(a) Meets American Society for Testing and Materials (ASTM) specification D975; and

(b) Includes at least 5 percent but not more than 20 percent biodiesel fuel blend stock for distillate fuels meeting ASTM specification D6751,which comply with the regulations adopted by the United States”.

Amend sec. 8, page 3, by deleting lines 16 through 20 and inserting:

“~~[3. Diesel fuel that meets the requirements imposed by the California Air Resources Board; and~~

~~4.]~~ and

2. Finished diesel fuel that:

(a) Meets American Society for Testing and Materials (ASTM) specification D975; and

Amend sec. 9, page 3, by deleting lines 29 through 33 and inserting:

“2. Regardless of the type of fuel on which it operates, has been certified by the United States Environmental Protection Agency as being in compliance with the standards for the control of emissions from an ultra low-emission vehicle, or more stringent standards, as set forth in 40 C.F.R. § 88.104-94 or 88.105-94.”.

Amend sec. 10, page 3, line 37, by deleting: “sections 2, 3 and 4” and inserting “section 1”.

Amend sec. 10, page 4, line 5, by deleting: “sections 2, 3 and 4” and inserting “section 1”.

Amend sec. 11, page 4, line 11, by deleting: “sections 2, 3 and 4” and inserting “section 1”.

Amend sec. 11, page 4, line 19, by deleting: “sections 2, 3 and 4” and inserting “section 1”.

Amend sec. 11, page 4, line 23, by deleting: “sections 2, 3 and 4” and inserting “section 1”.

Amend sec. 13, page 5, by deleting lines 1 through 5 and inserting:

“Sec. 10. 1. This section and sections 1 to 4, inclusive, and 6 to 9, inclusive, of this act become effective on July 1, 2003.

2. Sections 1 and 4 of this act expire by limitation on December 31, 2006.

3. Section 5 of this act becomes effective on January 1, 2007.”.

Assemblyman Collins moved the adoption of the amendment.

Remarks by Assemblyman Collins.

Amendment adopted.

Bill ordered reprinted, engrossed, and to third reading.

Assembly Bill No. 320.

Bill read second time.

The following amendment was proposed by the Committee on Judiciary:

Amendment No. 361.

Amend section 1, page 2, by deleting lines 7 and 8 and inserting: “not charge the insurer or a provider of health care:

(a) A fee to include the name of the provider on the panel of providers of health care; or

(b) Any other fee related to establishing a provider of health care as a provider for the organization.”.

Amend sec. 2, page 3, line 14, by deleting “shall” and inserting “shall:”.

Amend sec. 2, page 3, by deleting lines 15 through 17 and inserting:

“1. If requested by the provider of health care at the time the contract is made, submit to the provider of health care a copy of the schedule of payments applicable to the provider of health care; or

2. If requested by the provider of health care at any other time, submit to the provider of health care the schedule of payments specified in subsection 1 within 7 days after receiving the request.”.

Amend sec. 10, page 10, line 22, after “care;” by inserting “and”.

Amend sec. 10, page 10, by deleting lines 23 through 26 and inserting:

“(b) The contract complies with the provisions of this section.”.

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

“9. If an insurer contracts with a provider of health care to provide health care to an insured, the insurer shall:

(a) If requested by the provider of health care at the time the contract is made, submit to the provider of health care the schedule of payments applicable to the provider of health care; or

(b) If requested by the provider of health care at any other time, submit to the provider of health care the schedule of payments specified in paragraph (a) within 7 days after receiving the request.”.

Amend sec. 14, page 13, line 44, after “care;” by inserting “and”.

Amend sec. 14, page 14, by deleting lines 1 through 4 and inserting:

“(b) The contract complies with the provisions of this section.”.

Amend sec. 14, page 14, between lines 33 and 34, by inserting:

“9. If an insurer specified in subsection 1 contracts with a provider of health care to provide health care to an insured, the insurer shall:

(a) If requested by the provider of health care at the time the contract is made, submit to the provider of health care the schedule of payments applicable to the provider of health care; or

Amend sec. 16, page 16, line 20, after “care;” by inserting “and”.

Amend sec. 16, page 16, by deleting lines 21 through 24 and inserting:

“(b) The contract complies with the provisions of this section.”.

Amend sec. 16, page 17, between lines 8 and 9, by inserting:

“9. If a carrier specified in subsection 1 contracts with a provider of health care to provide health care to an insured, the carrier shall:

(a) If requested by the provider of health care at the time the contract is made, submit to the provider of health care the schedule of payments applicable to the provider of health care; or

Amend sec. 23, page 21, line 11, after “care;” by inserting “and”.

Amend sec. 23, page 21, by deleting lines 12 through 15 and inserting:

“(b) The contract complies with the provisions of this section.”.

Amend sec. 23, page 21, after line 44, by inserting:

“9. If a society contracts with a provider of health care to provide health care to an insured, the society shall:

(a) If requested by the provider of health care at the time the contract is made, submit to the provider of health care the schedule of payments applicable to the provider of health care; or

Amend sec. 25, page 23, line 11, after “care;” by inserting “and”.

Amend sec. 25, page 23, by deleting lines 12 through 15 and inserting:

“(b) The contract complies with the provisions of this section.”.

Amend sec. 25, page 23, after line 44, by inserting:

“9. If a corporation specified in subsection 1 contracts with a provider of health care to provide health care to an insured, the corporation shall:

(a) If requested by the provider of health care at the time the contract is made, submit to the provider of health care the schedule of payments applicable to the provider of health care; or

Amend sec. 28, page 26, by deleting lines 40 and 41 and inserting:

“4. The provisions of chapter 686A, NRS 695C.110, 695C.125, 695C.170 to 695C.200, inclusive, 695C.250 and 695C.265 and section 27 of this act do not apply to a health”.

Amend sec. 28, page 27, lines 5 and 6, by deleting: “and section 27 of this act”.

Amend sec. 29, page 27, line 13, after “NRS” by inserting: “and section 1 of this act”.

Amend sec. 30, page 27, by deleting lines 19 through 22 and inserting: “695C.125 [A health maintenance organization shall not charge a provider of health care a fee to include the name of the provider on a list of providers of health care given by the health maintenance organization to its enrollees.]”.

Amend sec. 30, page 27, line 23, by deleting “2.” and inserting “1.”.

Amend sec. 30, page 27, line 28, after “care;” by inserting “and”.

Amend sec. 30, page 27, by deleting lines 29 through 32 and inserting:

“(b) The contract complies with the provisions of this section.”.

Amend sec. 30, page 27, line 33, by deleting “3.” and inserting “2.”.

Amend sec. 30, page 27, line 43, by deleting “4.” and inserting “3.”.

Amend sec. 30, page 28, line 9, by deleting “5.” and inserting “4.”.

Amend sec. 30, page 28, line 13, by deleting “6.” and inserting “5.”.

Amend sec. 30, page 28, line 15, by deleting “7.” and inserting “6.”.

Amend sec. 30, page 28, line 17, by deleting “8.” and inserting “7.”.

Amend sec. 30, page 28, between lines 18 and 19, by inserting:

“8. If a health maintenance organization contracts with a provider of health care to provide health care to an enrollee, the health maintenance organization shall:

(a) If requested by the provider of health care at the time the contract is made, submit to the provider of health care the schedule of payments applicable to the provider of health care; or

Amend the bill as a whole by adding a new section designated sec. 33.5, following sec. 33, to read as follows:

“Sec. 33.5. NRS 695G.090 is hereby amended to read as follows:

695G.090 1. ~~[The]~~ Except as otherwise provided in subsection 3, the provisions of this chapter apply to each organization and insurer that operates as a managed care organization and may include, without limitation, an insurer that issues a policy of health insurance, an insurer that issues a policy of individual or group health insurance, a carrier serving small employers, a fraternal benefit society, a hospital or medical service corporation and a health maintenance organization.

2. In addition to the provisions of this chapter, each managed care organization shall comply with any other applicable provision of this title.

3. The provisions of subsections 2 to 9, inclusive, of NRS 695G.270 and section 33 of this act do not apply to a managed care organization that provides health care services to recipients of Medicaid under the State Plan for Medicaid or insurance pursuant to the Children’s Health Insurance Program pursuant to a contract with the Division of Health Care Financing and Policy of the Department of Human Resources. This subsection does not exempt a managed care organization from any provision of this chapter for services provided pursuant to any other contract.”.

Amend sec. 34, page 32, by deleting lines 19 through 24 and inserting:

“695G.270 [A managed care organization that establishes a panel of providers of health care for the purpose of offering health care services pursuant to chapters 689A, 689B, 689C, 695A, 695B, or 695C of NRS shall not charge a provider of health care a fee to include the name of the provider on the panel of providers of health care.]”.

Amend sec. 34, page 32, line 25, by deleting “2.” and inserting “1.”.

Amend sec. 34, page 32, line 30, after “care;” by inserting “and”.

Amend sec. 34, page 32, by deleting lines 31 through 34 and inserting:

“(b) The contract complies with the provisions of this section.”.

Amend sec. 34, page 32, line 35, by deleting “3.” and inserting “2.”.

Amend sec. 34, page 33, line 1, by deleting “4.” and inserting “3.”.

Amend sec. 34, page 33, line 11, by deleting “5.” and inserting “4.”.

Amend sec. 34, page 33, line 15, by deleting “6.” and inserting “5.”.

Amend sec. 34, page 33, line 17, by deleting “7.” and inserting “6.”.

Amend sec. 34, page 33, line 19, by deleting “8.” and inserting “7.”.

Amend sec. 34, page 33, between lines 20 and 21, by inserting:

“9. If a managed care organization contracts with a provider of health care to provide health care services pursuant to chapter 689A, 689B, 689C, 695A, 695B or 695C of NRS, the managed care organization shall:

(a) If requested by the provider of health care at the time the contract is made, submit to the provider of health care the schedule of payments applicable to the provider of health care; or

Amend the bill as a whole by adding a new section designated sec. 39.5, following sec. 39, to read as follows:

“Sec. 39.5. Chapter 449 of NRS is hereby amended by adding thereto a new section to read as follows:

1. If a hospital in this state establishes a panel of providers of health care and makes the panel available for use by an insurer when offering health care services pursuant to chapter 616A to 617, inclusive, 689A, 689B, 689C, 695A, 695B or 695C of NRS, the hospital shall not charge the insurer or a provider of health care:

(a) A fee to include the name of the provider on the panel of providers of health care; or

(b) Any other fee related to establishing a provider of health care as a provider for the hospital.

2. If a hospital in this state violates the provisions of subsection 1, the hospital shall pay to the insurer or provider of health care, as appropriate, an amount that is equal to twice the fee charged to the insurer or provider of health care.

3. A court shall award costs and reasonable attorney’s fees to the prevailing party in an action brought pursuant to this section.

4. In addition to any relief granted pursuant to this section, if a hospital in this state violates the provisions of subsection 1, and if an insurer offering health care services pursuant to chapter 616A to 617, inclusive, 689A, 689B, 689C, 695A, 695B or 695C of NRS has a contract with or otherwise uses the services of the hospital, the Division of Insurance of the Department of Business and Industry shall require the insurer to suspend its performance under the contract or discontinue using those services until the hospital, as determined by the Division of Insurance of the Department of Business and Industry:

(a) Complies with the provisions of subsection 1; and

(b) Refunds to all providers of health care any fees obtained by the hospital in violation of subsection 1.”.

Amend sec. 40, page 36, by deleting lines 6 and 7 and inserting: “charge a provider of health care:

(a) A fee to include the name of the provider on the panel of providers of health care; or

(b) Any other fee related to establishing a provider of health care as a provider for the insurer.”.

Amend the title of the bill by deleting the seventh through nineteenth lines and inserting: “deemed to have acted in bad faith; prohibiting hospitals and certain organizations from charging a fee for including the name of a provider of health care on a panel of providers of health care under certain circumstances; prohibiting a contract with a provider of health care from including various provisions relating to amendments to the terms of the contract; requiring the development and use of a uniform form for obtaining information regarding the credentials of providers of health care for the purposes of contracts; requiring the submission of a schedule of payments to a provider of health care under certain circumstances;”.

Assemblyman Anderson moved the adoption of the amendment.

Remarks by Assemblyman Anderson.

Amendment adopted.

Bill ordered reprinted, engrossed, and to third reading.

Assembly Bill No. 326.

Bill read second time.

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

Amendment No. 247.

Amend the bill as a whole by deleting sections 1 through 54 and the text of repealed sections and adding new sections designated sections 1 and 2, following the enacting clause, to read as follows:

“Section 1. NRS 449.037 is hereby amended to read as follows:

449.037 1. The Board shall adopt:

(a) Licensing standards for each class of medical facility or facility for the dependent covered by NRS 449.001 to 449.240, inclusive, and for programs of hospice care.

(b) Regulations governing the licensing of such facilities and programs.

(c) Regulations governing the procedure and standards for granting an extension of the time for which a natural person may provide certain care in his home without being considered a residential facility for groups pursuant to NRS 449.017. The regulations must require that such grants are effective only if made in writing.

(d) Regulations establishing a procedure for the indemnification by the Health Division, from the amount of any surety bond or other obligation filed or deposited by a facility for refractive laser surgery pursuant to
NRS 449.068 or 449.069, of a patient of the facility who has sustained any damages as a result of the bankruptcy of or any breach of contract by the facility.

(e) Any other regulations as it deems necessary or convenient to carry out the provisions of NRS 449.001 to 449.240, inclusive.

2. The Board shall adopt separate regulations governing the licensing and operation of:

(a) Facilities for the care of adults during the day; and

(b) Residential facilities for groups, which provide care to persons with Alzheimer’s disease.

3. The Board shall adopt separate regulations for:

(a) The licensure of rural hospitals which take into consideration the unique problems of operating such a facility in a rural area.

(b) The licensure of facilities for refractive laser surgery which take into consideration the unique factors of operating such a facility.

(c) The licensure of mobile units which take into consideration the unique factors of operating a facility that is not in a fixed location.

4. The Board shall require that the practices and policies of each medical facility or facility for the dependent provide adequately for the protection of the health, safety and physical, moral and mental well-being of each person accommodated in the facility.

5. The Board shall establish minimum qualifications for administrators and employees of residential facilities for groups. In establishing the qualifications, the Board shall consider the related standards set by nationally recognized organizations which accredit such facilities.

6. The Board shall adopt separate regulations regarding the assistance which may be given pursuant to NRS 453.375 and 454.213 to an ultimate user of controlled substances or dangerous drugs by employees of residential facilities for groups. The regulations must require at least the following conditions before such assistance may be given:

(a) The ultimate user’s physical and mental condition is stable and is following a predictable course.

(b) The amount of the medication prescribed is at a maintenance level and does not require a daily assessment.

(1) Addresses possession and assistance in the administration of the medication; and

(2) Includes a plan, which has been prepared under the supervision of a registered nurse or licensed pharmacist, for emergency intervention if an adverse condition results.

(d) The prescribed medication is not administered by injection or intravenously.

(e) The employee has successfully completed training and examination approved by the Health Division regarding the authorized manner of assistance.

7. The Board shall adopt separate regulations governing the licensing and operation of residential facilities for groups which provide assisted living services. The regulations must prohibit a residential facility for groups from claiming that it provides “assisted living services” unless:

(a) Before authorizing a person to move into the facility, the facility makes a full written disclosure to the person regarding what services of personalized care will be available to the person and the amount that will be charged for those services throughout the resident’s stay at the facility.

(b) The residents of the facility reside in their own living units which:

(1) Contain toilet facilities and a separate sleeping area or bedroom; and

(2) Are shared with another occupant only upon consent of both occupants.

(c) Despite a decline in the physical or mental condition of its residents, the facility allows its residents to continue to live in their own living units and retain the right to assume risks inherent in living in a separate living unit to the extent of the resident’s individual ability to consciously assume the responsibility for that risk.

(d) The facility provides personalized care to the residents of the facility and the general approach to operating the facility incorporates these core principles:

(1) The facility is designed to create a residential environment that actively supports and promotes each resident’s quality of life and right to privacy;

(2) The facility is committed to offering high-quality supportive services that are developed by the facility in collaboration with the resident to meet the resident’s individual needs;

(3) The facility provides a variety of creative and innovative services that emphasize the particular needs of each individual resident and his personal choice of lifestyle;

(4) The operation of the facility and its interaction with its residents supports, to the maximum extent possible, each resident’s need for autonomy and the right to make decisions regarding his own life;

(5) The operation of the facility is designed to foster a social climate that allows the resident to develop and maintain personal relationships with fellow residents and with persons in the general community;

(6) The facility is designed for and is operated in a manner which minimizes the need for its residents to move out of the facility as their respective physical and mental conditions change over time; and

(7) The facility is operated in such a manner as to foster a culture that provides a high-quality environment for the residents, their families, the staff, any volunteers and the community at large.

8. The Board shall, if it determines necessary, adopt regulations and requirements to ensure that each residential facility for groups and its staff are prepared to respond to an emergency, including, without limitation:

(a) The adoption of plans to respond to a natural disaster and other types of emergency situations, including, without limitation, an emergency involving fire;

(b) The adoption of plans to provide for the evacuation of a residential facility for groups in an emergency, including, without limitation, plans to ensure that nonambulatory patients may be evacuated;

(c) Educating the residents of residential facilities for groups concerning the plans adopted pursuant to paragraphs (a) and (b); and

(d) Posting the plans or a summary of the plans adopted pursuant to paragraphs (a) and (b) in a conspicuous place in each residential facility for groups.

Sec. 2. NRS 449.230 is hereby amended to read as follows:

449.230 1. Any authorized member or employee of the Health Division may enter and inspect any building or premises at any time to secure compliance with or prevent a violation of any provision of NRS 449.001 to 449.245, inclusive. For the purposes of this subsection, “building or premises” does not include a mobile unit that is operated by a medical facility which is accredited by the Joint Commission on Accreditation of Healthcare Organizations or the American Osteopathic Association.

2. The State Fire Marshal or his designee shall, upon receiving a request from the Health Division or a written complaint concerning compliance with the plans and requirements to respond to an emergency adopted pursuant to subsection ~~[7]~~ 8 of NRS 449.037:

(a) Enter and inspect a residential facility for groups; and

(b) Make recommendations regarding the adoption of plans and requirements pursuant to subsection ~~[7]~~ 8 of NRS 449.037,

to ensure the safety of the residents of the facility in an emergency.

3. The State Health Officer or his designee shall enter and inspect at least annually each building or the premises of a residential facility for groups to ensure compliance with standards for health and sanitation.

4. An authorized member or employee of the Health Division shall enter and inspect any building or premises operated by a residential facility for groups within 72 hours after the Health Division is notified that a residential facility for groups is operating without a license.”.

Amend the title of the bill to read as follows:

“AN ACT relating to residential facilities for groups; requiring the State Board of Health to adopt separate regulations for the licensure and regulation of residential facilities for groups which provide assisted living services; limiting the circumstances under which a residential facility for groups may claim to offer assisted living services; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Requires separate regulation of residential facilities for groups which claim to provide assisted living services. (BDR 40‑954)”.

Assemblywoman Koivisto moved the adoption of the amendment.

Remarks by Assemblywoman Koivisto.

Amendment adopted.

Bill ordered reprinted, engrossed, and to third reading.

Assembly Bill No. 348.

Bill read second time.

The following amendment was proposed by the Committee on Taxation:

Amendment No. 348.

Amend section 1, page 1, by deleting line 8 and inserting “assessor.”.

Amend section 1, page 1, by deleting lines 10 and 11 and inserting: “assessor shall notify the Nevada Tax Commission that he either approves or objects to the”.

Amend section 1, page 1, line 12, by deleting “they represent.” and inserting “he represents.”.

Amend section 1, page 1, lines 13 and 14, by deleting: “and boards of county commissioners”.

Amend section 1, page 2, lines 3 and 4, by deleting: “or boards of county commissioners”.

Amend section 1, page 2, by deleting lines 9 and 10 and inserting: “reconcile the objection or objections of each county assessor, including, without limitation,”.

Amend section 1, page 2, by deleting lines 18 and 19 and inserting: “objection of one or more county assessors.”.

Assemblyman Parks moved the adoption of the amendment.

Remarks by Assemblyman Parks.

Amendment adopted.

Bill ordered reprinted, engrossed, and to third reading.

Assembly Bill No. 366.

Bill read second time.

The following amendment was proposed by the Committee on Taxation:

Amendment No. 445.

Amend section 1, pages 1 and 2, by deleting lines 3 through 9 on page 1 and lines 1 through 33 on page 2 and inserting:

“1. A vehicle registered by any actual bona fide resident of the State of Nevada who is on active duty in the Armed Forces of the United States is exempt from the governmental services tax.

2. Before allowing an exemption pursuant to the provisions of this section, the Department shall require such proof of the status of the applicant for the exemption as may be necessary to determine his qualifications for the exemption. After the Department determines that the applicant is entitled to the exemption, the Department shall annually grant the exemption for all vehicles registered by that person until the Department determines that the person is no longer entitled to the exemption.

3. If a person provides false proof to the Department and as a result of the false proof a tax exemption is allowed to a person not entitled to the exemption, he is guilty of a misdemeanor.

4. If a vehicle ceases to be exempt from taxation pursuant to this section after the beginning of a registration year, the amount of the tax otherwise due must be reduced by one-twelfth for each month that has elapsed since the beginning of that year.”.

Amend the title of the bill by deleting the fourth and fifth lines and inserting: “Armed Forces of the United States; authorizing such a person to waive his”.

Amend the summary of the bill to read as follows:

“SUMMARY—Provides exemption from governmental services tax for vehicles registered by resident of Nevada who is on active duty in Armed Forces of United States. (BDR 32‑347)”.

Assemblyman Parks moved the adoption of the amendment.

Remarks by Assemblyman Parks.

Amendment adopted.

Bill ordered reprinted, engrossed, and to third reading.

Assembly Bill No. 503.

Bill read second time.

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

Amendment No. 244.

Amend sec. 6, page 5, by deleting line 45 and inserting:

“(4) One copy to :

(I) If the attending physician of the applicant is licensed to practice medicine pursuant to the provisions of chapter 630 of NRS, the Board of Medical Examiners ~~[.]~~ ; or

(II) If the attending physician of the applicant is licensed to practice osteopathic medicine pursuant to the provisions of chapter 633 of NRS, the State Board of Osteopathic Medicine.”.

Amend sec. 6, page 6, line 5, after “Examiners” by inserting: “or the State Board of Osteopathic Medicine, as applicable,”.

Amend sec. 6, page 6, by deleting lines 29 through 31 and inserting: “the applicant is not licensed to practice medicine or osteopathic medicine in this state or is not in good standing, as reported by the Board of Medical Examiners ~~[;]~~ or the State Board of Osteopathic Medicine, as applicable;”.

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

“Sec. 11. NRS 453A.500 is hereby amended to read as follows:

453A.500 The Board of Medical Examiners or the State Board of Osteopathic Medicine, as applicable, shall not take any disciplinary action against an attending physician on the basis that the attending physician:

1. Advised a person whom the attending physician has diagnosed as having a chronic or debilitating medical condition, or a person whom the attending physician knows has been so diagnosed by another physician licensed to practice medicine pursuant to the provisions of chapter 630 of NRS ~~[:]~~ or licensed to practice osteopathic medicine pursuant to the provisions of chapter 633 of NRS:

(a) About the possible risks and benefits of the medical use of marijuana; or

(b) That the medical use of marijuana may mitigate the symptoms or effects of the person’s chronic or debilitating medical condition,

if the advice is based on the attending physician’s personal assessment of the person’s medical history and current medical condition.

2. Provided the written documentation required pursuant to paragraph (a) of subsection 2 of NRS 453A.210 for the issuance of a registry identification card or pursuant to subparagraph (1) of paragraph (b) of subsection 1 of
NRS 453A.230 for the renewal of a registry identification card, if:

(a) Such documentation is based on the attending physician’s personal assessment of the person’s medical history and current medical condition; and

(b) The physician has advised the person about the possible risks and benefits of the medical use of marijuana.”.

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

“Sec. 13. NRS 633.521 is hereby amended to read as follows:

633.521 An osteopathic physician is not subject to disciplinary action solely for ~~[prescribing]~~ :

1. Prescribing or administering to a patient under his care:

~~[1.]~~ (a) Amygdalin (laetrile), if the patient has consented to the use of the substance.

~~[2.]~~ (b) Procaine hydrochloride with preservatives and stabilizers (Gerovital H3).

~~[3.]~~ (c) A controlled substance which is listed in schedule II, III, IV or V by the State Board of Pharmacy pursuant to NRS 453.146, if the controlled substance is lawfully prescribed or administered for the treatment of intractable pain in accordance with accepted standards for the practice of osteopathic medicine.

2. Engaging in any activity in accordance with the provisions of chapter 453A of NRS.”.

Assemblywoman Koivisto moved the adoption of the amendment.

Remarks by Assemblywoman Koivisto.

Amendment adopted.

Bill ordered reprinted, engrossed, and to third reading.

Assembly Bill No. 516.

Bill read second time.

The following amendment was proposed by the Committee on Taxation:

Amendment No. 486.

Amend the bill as a whole by deleting sections 1 through 10 and adding new sections designated sections 1 through 4, following the enacting clause, to read as follows:

“Section 1. NRS 365.196 is hereby amended to read as follows:

365.196 1. The receipts of the tax as levied in NRS 365.192 must be allocated monthly by the Department to the counties in proportion to the number of gallons of fuel that are sold to the retailers in each county pursuant to the information contained in the statements provided to the Department pursuant to NRS 365.192.

2. ~~[Each county]~~ The Department must apportion the receipts of that tax among the county, for unincorporated areas of the county, and each incorporated city in the county. The county and each city are respectively entitled to receive each month that proportion of those receipts which its total population bears to the total population of the county.

3. [During the month immediately preceding each January 1 and July 1, the county treasurer of each county shall, when necessary and after a hearing, adopt a regulation which provides for the accurate apportionment of those receipts in the county during the ensuing 6 months.

~~4.]~~ The money apportioned to the county or a city must be used by it solely to repair or restore existing paved roads, streets and alleys, other than those maintained by the Federal Government and this state, by resurfacing, overlaying, resealing or other such customary methods.

Sec. 2. NRS 365.550 is hereby amended to read as follows:

365.550 1. ~~[The]~~ Except as otherwise provided in subsection 2, the receipts of the tax levied pursuant to NRS 365.180 must be allocated monthly by the Department to the counties using the following formula:

(a) Determine the average monthly amount each county received in the fiscal year ending on June 30, ~~[2001,]~~ 2003, and allocate to each county that amount, or if the total amount to be allocated is less than that amount, allocate to each county a percentage of the total amount to be allocated that is equal to the percentage of the total amount allocated to that county in the fiscal year ending on June 30, ~~[2001;~~

~~(b) Determine for each county an amount from the total amount to be allocated using the following formula:~~

~~(1) Two-thirds in proportion to population; and~~

~~(2) One-third in proportion to road mileage and street mileage of improved roads or streets maintained by the county or an incorporated city located within the county,~~

~~and compare that amount to the amount allocated to the county pursuant to paragraph (a);~~

~~(c) Identify each county for which the amount determined pursuant to paragraph (b) is greater than the amount allocated to the county pursuant to paragraph (a); and~~

(d) Allocate to any county which is identified pursuant to paragraph (c), using the formula set forth in paragraph (b), any amount from the tax levied pursuant to NRS 365.180 that remains after the allocation required pursuant to paragraph (a).

~~2. Within 10 calendar days after June 1]~~ 2003;

(b) If the total amount to be allocated is greater than the average monthly amount all counties received in the fiscal year ending on June 30, 2003, determine for each county an amount from the total amount to be allocated using the following formula:

(1) Multiply the county’s percentage share of the total state population by 2;

(2) Add the percentage determined pursuant to subparagraph (1) to the county’s percentage share of total mileage of improved roads or streets maintained by the county or an incorporated city located within the county;

(3) Divide the sum of the percentages determined pursuant to subparagraph (2) by 3; and

(4) Multiply the total amount to be allocated by the percentage determined pursuant to subparagraph (3);

(c) Identify each county for which the amount determined pursuant to paragraph (b) is greater than the amount allocated to the county pursuant to paragraph (a) and:

(1) Subtract the amount determined pursuant to paragraph (a) from the amount determined pursuant to paragraph (b); and

(2) Add the amounts determined pursuant to subparagraph (1) for all counties;

(d) Identify each county for which the amount determined pursuant to paragraph (b) is less than or equal to the amount allocated to the county pursuant to paragraph (a) and:

(1) Subtract the amount determined pursuant to paragraph (b) from the amount determined pursuant to paragraph (a); and

(2) Add the amounts determined pursuant to subparagraph (1) for all counties;

(e) Subtract the amount determined pursuant to subparagraph (2) of paragraph (d) from the amount determined pursuant to subparagraph (2) of paragraph (c);

(f) Divide the amount determined pursuant to subparagraph (1) of paragraph (c) for each county by the sum determined pursuant to subparagraph (2) of paragraph (c) for all counties to determine each county’s percentage share of the sum determined pursuant to subparagraph (2) of paragraph (c); and

(g) In addition to the allocation made pursuant to paragraph (a), allocate to each county that is identified pursuant to paragraph (c) a percentage of the total amount determined pursuant to paragraph (e) that is equal to the percentage determined pursuant to paragraph (f).

2. At the end of each fiscal year, the Department shall:

(a) ~~[Project]~~ Determine the total amount ~~[that each county will be allocated]~~ to be allocated to all counties pursuant to subsection 1 for the current fiscal year ~~[.]~~ ; and

(b) Use the proceeds of the tax paid by a dealer, supplier or user for June of the current fiscal year to allocate to each county an amount determined pursuant to subsection 3.

3. If the total amount to be allocated to all the counties ~~[will]~~ determined pursuant to paragraph (a) of subsection 2:

(a) Does not exceed the total amount that was received by all the counties for the fiscal year ending on June 30, ~~[2001,]~~ 2003, the Department shall adjust the final monthly allocation to be made to each county so that each county is allocated a percentage of the total amount to be allocated that is equal to the percentage of the total amount allocated to that county in the fiscal year ending on June 30, ~~[2001.~~

(c) If a county receives an allocation pursuant to paragraph (d) of subsection 1, determine whether the total monthly allocations projected to be made to that county pursuant to subsection 1 for the current fiscal year exceed the total amount the county received in the fiscal year ending on June 30, 2001. If the total monthly allocations projected to be made to the county do not exceed the total amount the county received in the fiscal year ending on June 30, 2001, the Department shall adjust the final monthly allocation to be made to the county for the current fiscal year so that the total amount allocated to the county for the current fiscal year equals the total amount the county received in the fiscal year ending on June 30, 2001.

~~3.]~~ 2003.

(b) Exceeds the total amount that was received by all counties for the fiscal year ending on June 30, 2003, the Department shall:

(1) Identify the total amount allocated to each county for the fiscal year ending on June 30, 2003, and the total amount for the current fiscal year determined pursuant to paragraph (a) of subsection 2;

(2) Apply the formula set forth in paragraph (b) of subsection 1 using the amounts in subparagraph (1), instead of the monthly amounts, to determine the total allocations to be made to the counties for the current fiscal year; and

(3) Adjust the final monthly allocation to be made to each county to ensure that the total allocations for the current fiscal year equal the amounts determined pursuant to subparagraph (2).

4. Of the money allocated to each county pursuant to the provisions of subsections 1 ~~[and 2:]~~ , 2 and 3:

(a) An amount equal to that part of the allocation which represents
1.25 cents of the tax per gallon must be used exclusively for the service and redemption of revenue bonds issued pursuant to chapter 373 of NRS, for the construction, maintenance and repair of county roads, and for the purchase of equipment for that construction, maintenance and repair, under the direction of the boards of county commissioners of the several counties, and must not be used to defray expenses of administration; and

(b) An amount equal to that part of the allocation which represents
2.35 cents of the tax per gallon must be allocated to the county, if there are no incorporated cities in the county, or to the county and any incorporated cities in the county, if there is at least one incorporated city in the county, pursuant to the following formula:

(1) One-fourth in proportion to total area.

(2) One-fourth in proportion to population.

(3) One-fourth in proportion to road mileage and street mileage of nonfederal aid primary roads.

(4) One-fourth in proportion to vehicle miles of travel on nonfederal aid primary roads.

For the purpose of applying the formula, the area of the county excludes the area included in any incorporated city.

~~[4.]~~ 5. The amount allocated to the counties and incorporated cities pursuant to subsections 1 ~~[, 2 and 3]~~ to 4, inclusive, must be remitted monthly. The State Controller shall draw his warrants payable to the county treasurer of each of the several counties and the city treasurer of each of the several incorporated cities, as applicable, and the State Treasurer shall pay the warrants out of the proceeds of the tax levied pursuant to NRS 365.180.

~~[5.]~~ 6. The formula computations must be made as of July 1 of each year by the Department, based on estimates which must be furnished by the Department of Transportation and, if applicable, any adjustments to the estimates determined to be appropriate by the Committee pursuant to subsection ~~[9.]~~ 10. Except as otherwise provided in subsection ~~[9,]~~ 10, the determination made by the Department is conclusive.

~~[6.]~~ 7. The Department of Transportation shall complete:

(a) The estimates of the total mileage of improved roads or streets maintained by each county and incorporated city on or before August 31 of each year.

(b) A physical audit of the information submitted by each county and incorporated city pursuant to subsection ~~[7]~~ 8 at least once every 10 years.

~~[7.]~~ 8. Each county and incorporated city shall, not later than March 1 of each year, submit a list to the Department of Transportation setting forth:

(a) Each improved road or street that is maintained by the county or city; and

(b) The beginning and ending points and the total mileage of each of those improved roads or streets. Each county and incorporated city shall, at least
10 days before the list is submitted to the Department of Transportation, hold a public hearing to identify and determine the improved roads and streets maintained by the county or city.

~~[8.]~~ 9. If a county or incorporated city does not agree with the estimates prepared by the Department of Transportation pursuant to subsection ~~[6,]~~ 7, the county or incorporated city may request that the Subcommittee examine the estimates and recommend an adjustment to the estimates. Such a request must be submitted to the Subcommittee not later than October 15.

~~[9.]~~ 10. The Subcommittee shall review any request it receives pursuant to subsection ~~[8]~~ 9 and report to the Committee its findings and any recommendations for an adjustment to the estimates it determines is appropriate. The Committee shall hold a public hearing and determine whether an adjustment to the estimates is appropriate on or before December 31 of the year it receives a request pursuant to subsection ~~[8.]~~ 9. Any determination made by the Committee pursuant to this subsection is conclusive.

~~[10.]~~ 11. The Subcommittee shall monitor the fiscal impact of the formula set forth in this section on counties and incorporated cities and report regularly to the Committee concerning its findings and recommendations regarding that fiscal impact.

~~[11.]~~ 12. As used in this section:

(a) “Committee” means the Legislative Committee for Local Government Taxes and Finance established pursuant to NRS 218.53881.

(b) “Construction, maintenance and repair” includes the acquisition, operation or use of any material, equipment or facility that is used exclusively for the construction, maintenance or repair of a county or city road and is necessary for the safe and efficient use of that road, including, without limitation:

(1) Grades and regrades;

(2) Graveling, oiling, surfacing, macadamizing and paving;

(3) Sweeping, cleaning and sanding roads and removing snow from a road;

(4) Crosswalks and sidewalks;

(5) Culverts, catch basins, drains, sewers and manholes;

(6) Inlets and outlets;

(7) Retaining walls, bridges, overpasses, underpasses, tunnels and approaches;

(8) Artificial lights and lighting equipment, parkways, control of vegetation and sprinkling facilities;

(9) Rights-of-way;

(10) Grade and traffic separators;

(11) Fences, cattle guards and other devices to control access to a county or city road;

(12) Signs and devices for the control of traffic; and

(13) Facilities for personnel and the storage of equipment used to construct, maintain or repair a county or city road.

(1) Aligned and graded to allow reasonably convenient use by a motor vehicle; and

(2) Drained sufficiently by a longitudinal and transverse drainage system to prevent serious impairment of the road or street by surface water.

(d) “Subcommittee” means the Subcommittee appointed pursuant to
NRS 218.53884.

(e) “Total mileage of an improved road or street” means the total mileage of the length of an improved road or street, without regard to the width of that road or street or the number of lanes it has for vehicular traffic.

Sec. 3. NRS 365.550 is hereby amended to read as follows:

365.550 1. ~~[The]~~ Except as otherwise provided in subsection 2, the receipts of the tax levied pursuant to NRS 365.180 must be allocated monthly by the Department to the counties using the following formula: