THE ONE HUNDRED AND THIRTEENTH DAY

Carson City (Monday), May 26, 2003

Senate called to order at 11:55 a.m.

President Hunt presiding.

Roll called.

All present.

Prayer by the Chaplain, Pastor Marvin Dennis.

On this Memorial Day, we remember You and the many blessings You have granted to our great Nation. Thank You for all You are doing and have done for us. In the Name of my Lord, I pray.

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 was referred Assembly Bill No. 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 Senate Bills Nos. 208, 252, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

William J. Raggio, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, May 24, 2003

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day concurred in the Senate Amendment No. 798 to Assembly Bill No. 21; Senate Amendment No. 664 to Assembly Bill No. 48; Senate Amendment No. 656 to Assembly Bill No. 60; Senate Amendment No. 767 to Assembly Bill No. 84; Senate Amendment No. 725 to Assembly Bill No. 107; Senate Amendment No. 679 to Assembly Bill No. 125; Senate Amendment No. 659 to Assembly Bill No. 156; Senate Amendment No. 660 to Assembly Bill No. 160; Senate Amendment No. 743 to Assembly Bill No. 166; Senate Amendment No. 799 to Assembly Bill No. 168; Senate Amendment No. 566 to Assembly Bill No. 185; Senate Amendment No. 604 to Assembly Bill No. 212; Senate Amendment No. 632 to Assembly Bill No. 215; Senate Amendment No. 582 to Assembly Bill No. 217; Senate Amendment No. 760 to Assembly Bill No. 225; Senate Amendment No. 608 to Assembly Bill No. 230; Senate Amendment No. 707 to Assembly Bill No. 288; Senate Amendment No. 766 to Assembly Bill No. 293; Senate Amendment No. 723 to Assembly Bill No. 324; Senate Amendment No. 710 to Assembly Bill No. 343; Senate Amendment No. 691 to Assembly Bill No. 348; Senate Amendment No. 671 to Assembly Bill No. 365; Senate Amendment No. 680 to Assembly Bill No. 390; Senate Amendment No. 616 to Assembly Bill No. 396; Senate Amendment No. 669 to Assembly Bill No. 451; Senate Amendment No. 681 to Assembly Bill No. 458; Senate Amendment No. 827 to Assembly Bill No. 528; Senate Amendment No. 808 to Assembly Bill No. 541.

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. 741 to Assembly Bill No. 250; Senate Amendment No. 857 to Assembly Bill No. 398; Senate Amendment No. 828 to Assembly Bill No. 529.

Diane Keetch

Assistant Chief Clerk of the Assembly

Assembly Chamber, Carson City, May 26, 2003

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day adopted Assembly Concurrent Resolutions Nos. 29, 30.

Diane Keetch

Assistant Chief Clerk of the Assembly

MOTIONS, RESOLUTIONS AND NOTICES

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

Remarks by Senator Raggio.

Motion carried.

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

Remarks by Senator Raggio.

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

This eliminates the need for second reading on those bills and joint resolutions that do not have amendments, which will speed up the process in sending the bills and joint resolutions over to the Assembly.

Motion carried.

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

Remarks by Senator Raggio.

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

If we immediately place bills and resolutions with amendments on the appropriate files, that will also speed up the process by moving our process up one day.

Motion carried.

Senator Raggio moved that for the remainder of the session, all bills and resolutions that have been passed or adopted be immediately transmitted to the Assembly, time permitting.

Remarks by Senator Raggio.

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

Transmitting Senate measures will provide the Assembly an opportunity to process these measures. Transmitting Assembly legislation with amendments will expedite the process so that the Assembly can review the amendments and can concur or not. Not concurring will create potential conference committees. Other Assembly measures passed will be enrolled and delivered to the Governor for signature. The President will announce the transmittal of bills and resolutions each time, which will provide members the opportunity to “give notice of reconsideration” or “rescind an action,” whichever is appropriate at that time. Once legislative measures have been transmitted, the Senate has no jurisdiction as to further options for legislative action, unless such action falls under the purview of Unfinished Business.

Motion carried.

By Senators Raggio, Amodei, Care, Carlton, Cegavske, Coffin, Hardy, Mathews, McGinness, Neal, Nolan, O'Connell, Rawson, Rhoads, Schneider, Shaffer, Tiffany, Titus, Townsend, Washington, Wiener; Assemblymen Gibbons, Anderson, Andonov, Angle, Arberry, Atkinson, Beers, Brown, Buckley, Carpenter, Chowning, Christensen, Claborn, Collins, Conklin, Geddes, Giunchigliani, Goicoechea, Goldwater, Grady, Griffin, Gustavson, Hardy, Hettrick, Horne, Knecht, Koivisto, Leslie, Mabey, Manendo, Marvel, McClain, McCleary, Mortenson, Oceguera, Ohrenschall, Parks, Perkins, Pierce, Sherer, Weber and Williams:

Senate Concurrent Resolution No. 39—Memorializing former State Controller Darrel R. Daines.

Whereas, The members of the 72nd Session of the Nevada Legislature note with sadness the loss on February 1, 2003, of Darrel R. Daines, the man who was the respected steward of the finances of the State of Nevada from 1983 to 1999; and

Whereas, Darrel Daines was born on October 3, 1922, in Franklin, Idaho, attended schools in Logan, Utah, and Preston, Idaho, and began studies at Utah State University where he met his lovely bride-to-be, Ursula, before enlisting in the Army to serve his country during World War II; and

Whereas, After completing his pilot training as part of the Army Air Corps, Second Lieutenant Daines was assigned in July of 1944 to the Pacific Theater of Operations and flew combat missions for more than a year, for which he received several decorations, and was part of the army of occupation following Japan’s surrender; and

Whereas, After leaving the military at the rank of Captain, Darrel Daines completed his studies at Utah State University and attended the University of Utah Law School until 1950 when he became President of the Daines Manufacturing Company; and

Whereas, In 1964, Darrel Daines began his career as a fiscal officer in Logan, Utah, where he served 4 years as the Logan City Auditor; and

Whereas, In 1968, Darrel Daines moved to Nevada with his wife Ursula and their four children to accept an auditing position in the Clark County Recorder’s office, where he was so successful that he soon became a role model for a new governmental office—County Comptroller—a position that was statutorily created in 1969 and which he held for 14 years in Clark County; and

Whereas, In 1983, Darrel Daines was inaugurated as State Controller and held that constitutional office for a record-tying four terms as the chief fiscal officer of the State of Nevada, during which time he served as President of the National Association of State Comptrollers in 1988 and President of the National Association of State Auditors, Comptrollers and Treasurers in 1995; and

Whereas, As State Controller, Darrel Daines was a member of the State Transportation Board and is credited with developing the financing plan that accelerated the construction of the east leg of the Las Vegas Expressway through Henderson, the completion of Highway 395 in Reno and the development of the four-lane divided highway between Carson City and Minden; and

Whereas, For 12 of the 16 years that Darrel Daines served as State Controller, his Office was presented with a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association, an award that had not been won by that Office before Controller Daines took the reins; and

Whereas, In addition to his long-standing public service, Darrel Daines dedicated much of his time and energy to community service, as exemplified by his membership on the Board of the Nevada Division of the American Cancer Society for 20 years, his service as its Chairman from 1984 to 1987, and his membership on the National Board of Directors of the American Cancer Society for an additional 10 years; and

Whereas, Darrel Daines was predeceased in 2001 by his loving wife of 57 years, Ursula, and is survived by his daughter, Judith Daines Mower of Las Vegas, sons, Alan R. of Colorado Springs, Colorado, and William B. R. and Michael K. of Reno, nine grandchildren and six great-grandchildren; now, therefore, be it

Resolved by the Senate of the State of Nevada, the Assembly Concurring, That the members of the 72nd Session of the Nevada Legislature extend heartfelt sympathy to the family and friends of Darrel R. Daines; and be it further

Resolved, That in addition to being a loving family man who generously volunteered his time to benefit his community, Darrel Daines will long be remembered for the significant contributions he made to the State of Nevada during his 16 years as State Controller and as a member of the State Transportation Board; and be it further

Resolved, That the Secretary of the Senate prepare and transmit a copy of this resolution to Judith Daines Mower, Alan R. Daines, William B. R. Daines and Michael K. Daines, the children of Darrel R. Daines.

Senator Raggio moved the adoption of the resolution.

Remarks by Senator Raggio.

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

Today, is Memorial Day. It is fitting we honor former State Controller, Darrel Daines. When we request these resolutions and, then, hear the accomplishments of the individual, much new information is learned. We all knew Darrel Daines was one of the most dedicated State officers we had the pleasure of dealing with, but I did not know his military background.

Today, being Memorial Day, it is appropriate that we note his service in WWII as an Army Air Corps officer, that he flew combat missions and that he was decorated for his service. He served as part of the army of occupation following the surrender of Japan.

After leaving the military, he completed his studies in Utah, attended the University of Utah Law School and then went into business. He served this State in several capacities, and his service is worth mentioning. He was in Las Vegas as a Clark County fiscal officer in an auditor position at the Clark County Recorder’s Office. He became a roll model. He developed techniques that became recognized not only locally but nationally. As a result, the position of County Controller was created. The office was recognized by other areas and was used as a model for their auditing procedures. As a result, in 1983, he became the State Controller. His work as auditor in Clark County drew so much attention that he was the obvious choice by the electorate for this position. He served a record four terms as the State Controller. Most everyone in this Chamber had the opportunity to work with Darrel. When he thought something was right, he told you. He did not retreat from his position. Though, there was no doubt in his mind, he had some ongoing battles with the State Treasurer about which office was more important. No one who has served in that position has brought more to that office than did Darrel Daines.

The resolution indicates his long service and the recognition he brought to that office. The office received high recognition during his tenure. Nationally, he was honored by being made president of two national associations of controllers and auditors. He worked diligently not only here but in the national associations.

I would be remiss if I did not comment on his personal life with Ursula. She was one of the nicest ladies I have ever known. When she died, it was a loss. They were together for 57 years and raised a wonderful family with many grandchildren and great-grandchildren.

The State is proud to have had Darrel Daines serve as Controller, and we are all proud to have known him. On this Memorial Day, we extend our condolences to his family. We are grateful for the service both of them brought to this State.

Resolution adopted.

Resolution ordered transmitted to the Assembly.

By Senators Nolan, Wiener, Rawson, O'Connell, Amodei, Care, Carlton, Cegavske, Coffin, Hardy, Mathews, McGinness, Neal, Raggio, Rhoads, Schneider, Shaffer, Tiffany, Titus, Townsend and Washington:

Senate Resolution No. 9—Commending Ronnie W. Flud upon his retirement from public service.

Whereas, Ronnie W. Flud has been affiliated with the Clark County Coroner’s Office since September of 1984 and served as the first paid Coroner of Clark County; and

Whereas, Despite the unprecedented growth that Clark County has experienced over the last 20 years, the corresponding growth of the Clark County Coroner’s Office, and numerous high-profile cases, Ronnie Flud has maintained the dignity and decorum befitting the Coroner’s Office; and

Whereas, Ronnie Flud has had the forethought, vision and expertise to manage the growth of the Coroner’s Office by designing a facility that not only addresses the needs of today but will address the needs of the future of Clark County; and

Whereas, Ronnie Flud has served on numerous public boards and committees and has been responsible for imparting appropriate information to the community in a timely and effective manner; and

Whereas, Ronnie Flud initiated, with the assistance of Senators Dennis Nolan and Valerie Wiener, the first Youthful Offender Program in the State of Nevada, which has resulted in a recidivism rate less than any other program in Clark County; and

Whereas, Ronnie Flud championed the education of youth in an effort to prevent further deaths in Clark County; and

Whereas, Ronnie Flud has been a true example of leadership, compassion and professionalism in representing Clark County and the residents of this state; and

Whereas, Ronnie Flud invested countless hours of his own personal time into his career, not for his own benefit, but for the benefit of those who have served with him and have had the pleasure, honor and opportunity to share in that experience; and

Whereas, As the end of a remarkable career that spanned 3 decades approaches, Ronnie Flud can look back at his time as a street police officer for the City of North Las Vegas, an investigator and undercover narcotics officer for the State of Nevada, and Chief Deputy Coroner and Coroner for Clark County and take pride in the knowledge that he was an inspiration and role model to those who knew and worked with him; now, therefore, be it

Resolved by the Senate of the State of Nevada, That Ronnie W. Flud is hereby commended for his many years of exemplary public service to the State of Nevada; and be it further

Resolved, That this day be designated “Ronnie W. Flud Day” in the Senate; and be it further

Resolved, That the Secretary of the Senate prepare and transmit a copy of this resolution to Ronnie W. Flud.

Senator Nolan moved the adoption of the resolution.

Remarks by Senators Nolan, Rawson and Wiener.

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

Senator Nolan:

Thank you, Madam President. Those of you who know Ron Flud will note the resolution refers to his given name as “Ronnie,” and we will have fun from now on referring to Ron as “Ronnie.”

Ron has gone through a 30-year career and is exiting it in as good as shape as he started. He has found the secret of eternal youth. We all know the answer to that is that you have to love what you do for a living. Ron has always loved his career in law enforcement. He has contributed greatly to the advancement of training and professionalism in law enforcement in Nevada. He started his service in 1973 as a uniformed police officer, then as an undercover narcotics investigator and up to his current position.

During the past 19 years in Clark County, he brought the level of forensic investigation to a level of national acclaim. It is no accident we have television shows and crime series based on Clark County. Because of Ron’s efforts, more criminals are caught and placed behind bars. Everyone who knows Ron Flud knows he is a consummate gentleman and is an icon for professionalism in law enforcement and is someone who truly engenders the word of integrity. It has been a personal pleasure to work with Ron and to work for Ron. I appreciate my colleagues’ support in the adoption of this very appropriate Senate Resolution.

Senator Rawson:

When I first met Ron, he was a student of mine at the University of Nevada, Las Vegas, many years ago. He was a wonderful student. He was working on his Master’s Degree in Public Administration, but once he was accepted as the Coroner for Las Vegas, then I proceeded on a career of learning from him.

He is a man who sees things as right or wrong. His philosophy is to be right first, then to be easy to get along with second. That is required in that job because it is dealing with the most sensitive issues with which we have to deal. Many times that office would have been in significant trouble if it had not been that Ron saw what was right first. He let the chips fall wherever they may. That set a standard that will be hard for anyone else to follow. It is an extraordinary thing to see in the public sector. He needs to be complimented.

He is a young man to be retiring. I am envious. He is a saddle maker, and he is going to raise horses. This is the first time I have met his mother and his lovely wife. It is a pleasure for me to see them honored and to see him recognized for his hard work.

Senator Wiener:

Thank you, Madam President. I have probably known Ron the least amount of time compared to the previous speakers, but it has been quality time. When Senator Nolan asked me to help develop the youthful offender program with Mr. Flud, I was a little reluctant because it dealt with dead bodies. That made me queasy. Right away, when I met Ron, I experienced his high energy, and I learned to trust that I could contribute to the program.

Prior to my learning how to read and write, my family was involved in the mortuary business. I had never stepped inside a mortuary to the extent that I did on the tour of the coroner’s office, but Ron gave me a sense of confidence on that tour. It took me two weeks to prepare myself to make that tour. He did not take me into that funny smelling room where it really smells bad. Ron gave much love and dedication to the job. I have always felt that the greatest mark of a public servant or any other employee is not what they achieve during their first week or year, or during the next ten or twenty years, but it is what they achieve during the last year or two or the last week or two that matters. I can assure you that Ron has given the dedication to the last several days that he gave to the first several days. That is the highest mark of achievement any public servant can give to the State or the county or the city.

I congratulate you, Ron, on your retirement. We will miss you, and we will look forward to working with your replacement. Thank you for giving so much to Nevada. We all know what you have given to our State.

Resolution adopted.

Assembly Concurrent Resolution No. 29—Memorializing Marine hero Lance Corporal Donald J. Cline Jr.

Whereas, The members of the Nevada Legislature join the people of the State of Nevada to mourn the loss and celebrate the life of United States Marine Lance Corporal Donald J. Cline Jr.; and

Whereas, Donald J. Cline Jr., known as “John” by his family and friends, was born in Sierra Madre, California; and

Whereas, After his family moved to Sparks, John Cline attended Reed High School and met his wife-to-be, Tina; and

Whereas, Because he said he had “always wanted to be a Marine,” John Cline enlisted in the United States Marine Corps at the age of 17 and left for boot camp 2 weeks after graduating from high school; and

Whereas, After John’s graduation from Marine boot camp on October 20, 2000, Tina and John Cline were married the following day at the American Legion Hall in Sun Valley, Nevada; and

Whereas, Blessed with two sons, Dakota, 2 1/2 years of age, and Dillon, 7 months, John Cline proved to be a devoted and caring family man who talked about returning to Reno to become a police officer when he left the military; and

Whereas, Serving with the 1st Battalion, 2nd Marine Regiment, 2nd Marine Expeditionary Brigade, based at Camp Lejeune, North Carolina, John Cline was deployed to Iraq to serve his country, but kept in close contact with his family through letters and phone calls; and

Whereas, On March 23, 2003, John Cline was reported missing in action after he and some of his fellow Marines were ambushed by enemy fire on a bridge near the southern Iraq town of Nasiriyah; and

Whereas, Being a strong and loyal Marine wife, Tina Cline remained optimistic that her husband would be found safe, and she and her children were embraced by their community, receiving support and prayers from family, friends and strangers; and

Whereas, Sadly, on April 11, Lance Corporal Donald “John” Cline Jr., only 21 years of age, was among the Marines identified as killed in that attack of March 23rd; and

Whereas, John Cline was posthumously awarded the Purple Heart and will hereafter be remembered for his bravery in the face of battle; and

Whereas, Lance Corporal Cline is survived by his wife, Tina, his sons, Dakota and Dillon, and his mother, Cynthia Fulton-Cline; now, therefore, be it

Resolved by the Assembly of the State of Nevada, the Senate Concurring, That United States Marine Lance Corporal Donald J. Cline Jr. be recognized for his dedication to his country in giving the ultimate sacrifice while trying to make the world a safer place for his children and children throughout the world; and be it further

Resolved, That the members of the 72nd Session of the Nevada Legislature and the people of our State extend their sincere condolences to the family and friends of John Cline, an American hero; and be it further

Resolved, That the Chief Clerk of the Assembly prepare and transmit a copy of this resolution to John Cline’s loving wife, Tina.

Senator Washington moved the adoption of the resolution.

Remarks by Senators Washington, Nolan, Shaffer and Care.

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

Senator Washington:

Thank you, Madam President. It is fitting, today, being Memorial Day, that we recognize Marine hero Lance Corporal Donald J. Cline Jr.

Before I speak about Corporal Cline, I would like to give a brief history of Memorial Day as I read in the Nevada Appeal today.

There are many ideas as to how Memorial Day started. Some claim a group of women during the Civil War decorated the graves of the fallen soldiers. In 1966, President Lyndon B. Johnson stated Waterloo, New York, was the birthplace for Memorial Day.

Memorial Day was officially proclaimed May 5, 1868, by General John Logan, the National Commander of the Grand Army of the Republic. It was first observed on May 30, 1868, when flowers were placed on the graves of the Union and Confederate soldiers at Arlington National Cemetery. It was 1890 when Memorial Day was recognized as a day of remembrance by the northern states, but the southern states refused to acknowledge their dead on that day. They chose a separate day. It was after WWI when the holiday was changed to honor not only the soldiers who had fallen during the Civil War but, also, those who fell during all foreign conflicts.

In 1915, Monia Michael was the first to wear the red poppy. I remember as a child seeing the red poppy being worn in men's lapels as a symbol of remembrance. They used to sell the red poppy to help those who were in need of assistance. In 1922, the Veterans of Foreign Wars became the first to organize and sell the poppies. The red poppy is not sold very often anymore except on a few occasions. In December 2000, the observance of Memorial Day was changed by Congress. At 3:00 p.m. on Monday, the last Monday in May, is the time used to observe Memorial Day in our own way and with a moment of silence.

On April 19, 1999, U.S. Representative John Gibbons introduced a bill to return the traditional day of observance back to May 30 instead of the last Monday in May.

How often have we seen a movie where the hero, like John Wayne, would lead his troops into battle, and as a child, we would envy those troops. There would always be one who would sacrifice his life for others. Lance Corporal Donald J. Cline Jr. did exactly that and paid the ultimate sacrifice. He fell upon a grenade to save his fellow soldiers. His Aunt Kay is at my desk, and she told me the story of one of Donald’s fellow Marines he saved while they were in the all-terrain vehicle. His legs were being scorched by mortar fire. Corporal Cline turned around, fired back and killed the enemy. In doing so, he saved many fellow soldiers. During the firing, Corporal Cline rescued many of his fellow soldiers. During the attack, as he was helping others, a grenade was launched and Corporal Cline was killed.

It is this day we observe, and on this day, we have the opportunity to conduct our business whether we agree or disagree. America lends itself to a great democracy where opposing factions can debate without bloodshed and gunfire. Because of these young men and women, we have the opportunity to continue our business at the state and national level. It is great to be an American especially on a day like this no matter your origin or place of birth.

It is an honor for me to stand here to honor Lance Corporal Donald Cline Jr. and to present this resolution. God bless America; God bless the State of Nevada, and God bless the Cline family.

Senator Nolan:

Thank you, Madam President. The resolution speaks well of Lance Corporal Donald J. Cline Jr. and all his heroic sacrifices before this incidence. Many of us did not know Donald Cline Jr. I remembered the day we were watching CNN in the lounge and the announcer said a Nevadan had lost his life in the conflict. Nevada is still a small state. In our communities, we know many of the people who we grew up with. Immediately, we began to wonder who it was who had lost his life. Eventually, the name of Lance Corporal Donald J. Cline Jr. surfaced, and while I did not know him at the time, I feel I know him now. In the last several weeks, many of us have come to know him and the great sacrifice he made for this country. On behalf of myself, my family and my children, thank you for the sacrifice not only that Donald made but also the one his family made.

Senator Shaffer:

Thank you, Madam President. I stand in support of the resolution. Having spent over three years in the Marine Corps myself, I recognize the brotherhood. People may not understand why this individual did what he did, but it goes back to the training that he received that you never leave your buddies behind.

He and his family may not see each other for a long time perhaps, but I am sure that somewhere or someplace he is being rewarded for his brave duty and commitment to this country. If it were not for people like him, we would not be standing here, today.

Senator Care:

Thank you, Madam President. I do not like talking about this, but in late September of 1967, there were about 150 of us who graduated from the Army’s Fort Benning Infanty Officers’ Candidate School. Fourteen of us got orders to go to the 5th Battalion of the 46th Infantry at Fort Hood, Texas. Shortly, after we got to Texas, the Tet Offensive broke out and it was not long after that we found ourselves going over to what we called “Disneyland East.” Out of the 14 of us, one completed the 365 day tour, and I was not the one. We came back on various airplanes through various events. In the summer of 2001, all the young officers who had gone over together, the surviving officers, had a reunion in Jacksonville, Florida. The first order of business was to remember those whom we had known at Fort Benning, Fort Hood and, of course, Vietnam. James Shotwell, Harold Clifford, Charles Mrdjenovich, William Damron, Kenneth Eyring, Charles Chandler, Gregory Brooks are names all etched for history on the Wall.

There will be a reunion someday and the first thing they will do is to remember Lance Corporal Donald J. Cline Jr. Out of the blue, one day, a phone call or letter may come and that is an affirmation that your husband, son and nephew lives on.

I have to say that reverences and humanity are the proper measure of any man who lives long enough, long after the smoke has subsided and the shouting has gone, understands that his success stems directly from the sacrifices of his friends.

Resolution adopted.

Resolution ordered transmitted to the Assembly.

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

Senate in recess at 12:41 p.m.

SENATE IN SESSION

At 12:44 p.m.

President Hunt presiding.

Quorum present.

Assembly Concurrent Resolution No. 30—Memorializing Marine hero Lieutenant Frederick Pokorney Jr.

Whereas, The members of the Nevada Legislature and the people of the State of Nevada mourn the loss of United States Marine Corps First Lieutenant Frederick “Fred” Pokorney Jr.; and

Whereas, Living with former Nye County Sheriff Wade Lieseke and his wife Susie, Fred Pokorney graduated from Tonopah High School in 1989, where the 6-foot-7-inch, 220-pound athlete excelled at basketball and football; and

Whereas, A devoted family man, Fred Pokorney met his wife, known as “Chelle,” in Washington State, and they became the proud parents of daughter Taylor, now 2 1/2 years of age and the spitting image of her father; and

Whereas, After enlisting in the United States Marine Corps, Fred Pokorney was named the top recruit at the end of basic training and, taking advantage of the military educational benefits, attended Oregon State University where he earned a degree in military science; and

Whereas, A field artillery leader for the Headquarters Battery, 1st Battalion, 10th Marine Regiment, 2nd Marine Expeditionary Brigade, stationed at Camp Lejeune, North Carolina, Lieutenant Pokorney was deployed to Iraq and died on March 23, 2003, when he and some of his fellow Marines were ambushed outside of Nasiriyah; and

Whereas, Commissioned as a Second Lieutenant, Pokorney was promoted posthumously to First Lieutenant and was awarded the Purple Heart and will forever be remembered for his bravery and dedication to his country; and

Whereas, Chelle Pokorney called her husband a “gentle giant” and said he loved “his family, the Marine Corps and the Oakland Raiders”; and

Whereas, Nevada’s first reported casualty from Operation Iraqi Freedom and the first Marine from that military operation to be buried at Arlington National Cemetery, Lieutenant Pokorney was buried with full military honors; and

Whereas, Lieutenant Frederick Pokorney Jr. is survived by his wife Chelle Pokorney, his daughter Taylor, and his surrogate parents Wade and Susie Lieseke; now, therefore, be it

Resolved by the Assembly of the State of Nevada, the Senate Concurring, That United States Marine First Lieutenant Frederick Pokorney Jr. be honored for his devotion to his family, his state and his country, for which he made the ultimate sacrifice; and be it further

Resolved, That the members of the 72nd Session of the Nevada Legislature and the people of our state celebrate the life of Lieutenant Pokorney and extend their sincere condolences to the family and friends of a true hero; and be it further

Resolved, That the Chief Clerk of the Assembly prepare and transmit a copy of this resolution to Chelle, the beloved wife of Lieutenant Pokorney.

Senator McGinness moved the adoption of the resolution.

Remarks by Senators McGinness and Amodei.

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

Senator McGinness:

Thank you, Madam President. The family of Frederick Pokorney Jr. could not be here, today, because of Memorial Day events schedule in Tonopah along with Jim Butler Days. It is appropriate we take a few moments on this Memorial Day to remember Lieutenant Pokorney Jr. for his sacrifice to our country.

I appreciate the Senator from Sparks for giving us the historical background on Memorial Day. My Mom still calls it Decoration Day, and now, I know why; it reflects her generation.

It is appropriate we memorialize First Lieutenant Frederick Pokorney Jr. and decorate his life in the Senate for his bravery. His unit was one of the first units to Iraq and was ambushed by a fake surrender. His convoy stopped. Eight Marines were killed, and forty were wounded in the attack. As mentioned in the resolution, he is the first Marine from that military operation to be buried at Arlington National Cemetery. I would like to take a moment to pause and reflect on the dedication he has given to his State and country.

Senator Amodei:

Thank you, Madam President: It turns out it is a small world. Earlier this session, I had some young ladies who were members of the Beaver Battalion at Oregon State University, Navy ROTC unit, sitting with me on the floor, one of them being my daughter. When the news came that a Marine, First Lieutenant Frederick Pokorney Jr. from Tonopah had passed away, I called my daughter. She stated he was a product of that same ROTC program. It is important to note that a person from Nevada goes to a school in Oregon, graduates from the program, is commissioned as a Marine officer and then is one of the first people who is killed.

My colleague from District 7 recounted his military experiences. When I was getting ready to graduate from the ROTC program at the University Nevada, Reno, there was a memorial award for a young man who was originally from Bakersfield, but went through the program here, was commissioned as a second lieutenant in the Army, went to an infantry unit and then was sent to Vietnam. He came back on one of the planes where the only people meeting them were the grave registration people as opposed to family and friends.

I wanted to share with the body that one of the things I am planning on doing as a “Nevada” thing, not as an “Amodei” thing, is set up a similar program like Lieutenant Pokorney went through to provide a scholarship to people who follow in his foot steps and who enter the military professions. It would not be a lot of money, but something we should do for Nevadans even though some do not go to school here. It is important to let people know we take care of our own. They say his is the ultimate sacrifice for those who choose the “professions of arms.” This is something for you to consider. It is important for us to take care of our own.

Resolution adopted.

Resolution ordered transmitted to the Assembly.

INTRODUCTION, FIRST READING AND REFERENCE

By the Committee on Finance:

Senate Bill No. 499—AN ACT making an appropriation to the Interim Finance Committee for allocation to the Department of Public Safety for radio system costs, infrastructure upgrades and user equipment; and providing other matters properly relating thereto.

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

Motion carried.

SECOND READING AND AMENDMENT

Senate Bill No. 230.

Bill read second time and ordered to third reading.

Senate Joint Resolution No. 11.

Resolution read second time and ordered to third reading.

Assembly Bill No. 254.

Bill read second time and ordered to third reading.

Assembly Bill No. 470.

Bill read second time and ordered to third reading.

GENERAL FILE AND THIRD READING

Senate Bill No. 209.

Bill read third time.

Roll call on Senate Bill No. 209:

Yeas—21.

Nays—None.

Senate Bill No. 209 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 320.

Bill read third time.

Roll call on Assembly Bill No. 320:

Yeas—21.

Nays—None.

Assembly Bill No. 320 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 542.

Bill read third time.

The following amendment was proposed by Senator Neal:

Amendment No. 916.

Amend sec. 19, page 11, by deleting lines 26 through 33 and inserting: “by adding thereto the provisions set forth as sections 19.3 and 19.7 of this act.”.

Amend the bill as a whole by adding new sections designated sections 19.3 and 19.7, following sec. 19, to read as follows:

“Sec. 19.3. The provisions of any law or statute which is reenacted, amended or revised, so far as they are the same as those of prior laws, shall be construed as a continuation of such laws and not as new enactments. If any provision of a law is repealed and in substance reenacted, a reference in any other law to the repealed provision shall be deemed to be a reference to the reenacted provision.

Sec. 19.7. 1. For the purpose of interpreting a statute relating to the powers of a local government, a local government has such powers as are:

(a) Granted in express words;

(b) Necessarily or fairly implied in or incident to the powers expressly granted; or

(c) Appropriate or convenient to the accomplishment of the declared objects and purposes of the local government,

unless otherwise limited by specific statute.

2. The purpose of this section is to abolish Dillon’s Rule in this state.

3. This section does not authorize a local government to impose or increase a tax unless the tax or increase is otherwise authorized by specific statute.”.

Amend the title of the bill to read as follows:

“AN ACT relating to governmental administration; making various changes relating to the operation of the Legislature and the Legislative Counsel Bureau; revising the provisions governing retirement eligibility for certain employees of the Legislature; abolishing Dillon’s Rule concerning statutory interpretation of the powers of a local government; and providing other matters properly relating thereto.”.

Senator Neal moved the adoption of the amendment.

Remarks by Senators Neal, Raggio and O'Connell.

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

Madam President, this amendment is of great importance. In the summer of last year, I had a meeting with some of the government officials of the small counties. One of the things they discussed was the effect of the Dillon Rule and how it prevented them from carrying out their business. It kept them from meeting the needs of their citizens.

The amendment to Assembly Bill No. 542 proposed, today, is not an attempt to abolish the Dillon Rule. The Dillon Rule is a rule of statutory construction named after Judge John Dillon, Chief Justice of the Iowa Supreme Court in the 1860s. In a written opinion, Judge Dillon wrote, “that the local governments should have only those powers that are granted in express words, necessarily and fairly implied, and essential to the declared objects and purposes of the authority.”

When we have an ambiguity in the law, it allows for an interpretation of the law against the counties. If you have a bill that passes this legislature, and allows a county to dig a hole, but because it does not say where the hole should be placed and how wide it should be, this rule allows the statute to be interpreted against the county saying it could not dig the hole.

There is ambiguity as to whether the powers granted to local government could be resolved against the local government. This rule of statutory construction found in this amendment has been abolished in 48 states. Only 11 states allow this statutory construction to remain in the law.

The local governments should have the flexibility to react to the needs of their constituents and should not have to make frequent trips to this Legislature to change a simple word in the statute. We have seen this happen repeatedly in our Legislature.

The bill before us shows how we have set out various categories in which the county governments are to come before us with their bill drafts. This would eliminate the many bill drafts these local governments have to present to this Legislature. That would cut down on the work required during the 120-day session. In today’s atmosphere of fiscal uncertainty, more flexibility for local governments would save the taxpayers’ dollars. The amendment does not allow the counties to increase taxes. It does allow the local governments to have the flexibility to operate and meet the needs of their citizens. It gives local governments a degree of self‑determination as to what will be needed for those citizens in their counties and their local governments. This is not home rule. It does not promote home rule. It does not charter county governments. This is simply the rule of statutory construction intended to provide additional flexibility for local governments so they can carry out the business of the people they represent. It is time this State recognizes that these governments should have this flexibility. We only meet every other year and during the interim, if they should have a problem with a statute, they have to wait until we are in session. If there is ambiguity in an interpretation of a statute and we know that, the Legislature passed a statute to do a specific thing. Because somehow we forgot to include a word, the statute must be interpreted against the action intended by this Legislature. This amendment would allow the interpretation of statute in favor of local government. The amendments still allow this Legislature to pass any statute it deems necessary to correct any problem relating to the operation of local governments. I ask you to consider this so we may get on with the business of allowing the local governments to have flexibility to meet the needs of their constituents who have the power to elect these local government officials as well as the Legislature.

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

Motion carried.

Senate in recess at 1:04 p.m.

SENATE IN SESSION

At 1:06 p.m.

President Hunt presiding.

Quorum present.

Senators Neal, Titus and Carlton requested a roll call vote on Senator Neal's motion.

Roll call on Senator Neal’s motion:

Yeas—8.

Nays—Amodei, Cegavske, Hardy, McGinness, Nolan, O'Connell, Raggio, Rawson, Rhoads, Shaffer, Tiffany, Townsend, Washington—13.

The motion having failed to receive a majority, Madam President declared it lost.

Roll call on Assembly Bill No. 542:

Yeas—21.

Nays—None.

Assembly Bill No. 542 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Joint Resolution No. 13.

Resolution read third time.

Roll call on Assembly Joint Resolution No. 13:

Yeas—21.

Nays—None.

Assembly Joint Resolution No. 13 having received a constitutional majority, Madam President declared it passed.

Resolution ordered transmitted to the Assembly.

UNFINISHED BUSINESS

Consideration of Assembly Amendments

Senate Bill No. 136.

The following Assembly amendment was read:

Amendment No. 776.

Amend sec. 4, page 4, by deleting line 9 and inserting: “section, if a unit’s owner [,] or a tenant or guest of a unit’s owner [,”.

Amend sec. 4, page 4, by deleting lines 13 and 14 and inserting:

“(a) Prohibit, for a reasonable time, the unit’s owner [,] or the tenant or guest of the unit’s owner [,] from:”.

Amend sec. 4, page 4, by deleting lines 18 and 19 and inserting: “subparagraph do not prohibit the unit’s owner [,] or the tenant or guest of the unit’s owner [,] from using any vehicular or pedestrian”.

Amend sec. 4, page 4, by deleting lines 22 and 23 and inserting:

“(b) [Require] Impose a fine against the unit’s owner [,] or the tenant or guest of the unit’s owner [, to pay a fine] for each”.

Amend sec. 4, pages 4 and 5, by deleting lines 31 through 45 on page 4 and lines 1 and 2 on page 5, and inserting:

“2. The executive board may not impose a fine pursuant to subsection 1 unless:”.

Amend sec. 4, page 5, line 15, by deleting “4.” and inserting “3.”.

Amend sec. 4, page 5, line 20, by deleting “5.” and inserting “4.”.

Amend sec. 4, page 5, by deleting line 27 and inserting:

“5. If a fine is imposed pursuant to subsection 1 and the”.

Amend sec. 4, page 5, line 38, by deleting “7.” and inserting “6.”.

Amend sec. 4, page 6, line 1, by deleting “8.” and inserting “7.”.

Senator Townsend moved that the Senate concur in the Assembly amendment to Senate Bill No. 136.

Remarks by Senator Hardy.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 241.

The following Assembly amendment was read:

Amendment No. 805.

Amend the bill as a whole by deleting sections 1 through 59 and adding new sections designated sections 1 through 35 and the leadlines of repealed sections, following the enacting clause, to read as follows:

“Section 1. Chapter 40 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 15, inclusive, of this act.

Sec. 2. “Amend a complaint to add a cause of action for a constructional defect” means any act by which a claimant seeks to:

1. Add to the pleadings a defective component that is not otherwise included in the pleadings and for which a notice was not previously given; or

2. Amend the pleadings in such a manner that the practical effect is the addition of a constructional defect that is not otherwise included in the pleadings.

The term does not include amending a complaint to plead a different cause for a constructional defect which is included in the same action.

Sec. 3. “Design professional” means a person who holds a professional license or certificate issued pursuant to chapter 623, 623A or 625 of NRS.

Sec. 4. “Subcontractor” means a contractor who performs work on behalf of another contractor in the construction of a residence or appurtenance.

Sec. 5. “Supplier” means a person who provides materials, equipment or other supplies for the construction of a residence or appurtenance.

Sec. 6. 1. Except as otherwise provided in subsection 2, not later than 60 days after a contractor receives a notice pursuant to subsection 4 of NRS 40.645 which alleges common constructional defects to residences or appurtenances within a single development and which complies with the requirements of subsection 4 of NRS 40.645 for giving such notice, the contractor may respond to the named owners of the residences or appurtenances in the notice in the manner set forth in section 9 of this act.

2. The contractor may provide a disclosure of the notice of the alleged common constructional defects to each unnamed owner of a residence or appurtenance within the development to whom the notice may apply in the manner set forth in this section. The disclosure must be sent by certified mail, return receipt requested, to the home address of each such owner. The disclosure must be mailed not later than 60 days after the contractor receives the notice of the alleged common constructional defects, except that if the common constructional defects may pose an imminent threat to health and safety, the disclosure must be mailed as soon as reasonably practicable, but not later than 20 days after the contractor receives the notice.

3. The disclosure of a notice of alleged common constructional defects provided by a contractor to the unnamed owners to whom the notice may apply pursuant to subsection 2 must include, without limitation:

(a) A description of the alleged common constructional defects identified in the notice that may exist in the residence or appurtenance;

(b) A statement that notice alleging common constructional defects has been given to the contractor which may apply to the owner;

(c) A statement advising the owner that he has 30 days within which to request the contractor to inspect the residence or appurtenance to determine whether the residence or appurtenance has the alleged common constructional defects;

(d) A form which the owner may use to request such an inspection or a description of the manner in which the owner may request such an inspection;

(e) A statement advising the owner that if he fails to request an inspection pursuant to this section, no notice shall be deemed to have been given by him for the alleged common constructional defects; and

(f) A statement that if the owner chooses not to request an inspection of his residence or appurtenance, he is not precluded from sending a notice pursuant to NRS 40.645 individually or commencing an action or amending a complaint to add a cause of action for a constructional defect individually after complying with the requirements set forth in NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act.

4. If an unnamed owner requests an inspection of his residence or appurtenance in accordance with subsection 3, the contractor must provide the response required pursuant to section 9 of this act not later than 45 days after the date on which the contractor receives the request.

5. If a contractor who receives a notice pursuant to subsection 4 of NRS 40.645 does not provide a disclosure to unnamed owners as authorized pursuant to this section, the owners of the residences or appurtenances to whom the notice may apply may commence an action for the constructional defect without complying with any other provision set forth in NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act. This subsection does not establish or prohibit the right to maintain a class action.

6. If a contractor fails to provide a disclosure to an unnamed owner to whom the notice of common constructional defects was intended to apply:

(a) The contractor shall be deemed to have waived his right to inspect and repair any common constructional defect that was identified in the notice with respect to that owner; and

(b) The owner is not required to comply with the provisions set forth in NRS 40.645 or section 11 of this act before commencing an action or amending a complaint to add a cause of action based on that common constructional defect.

Sec. 7. 1. Except as otherwise provided in subsection 2, not later than 30 days after the date on which a contractor receives notice of a constructional defect pursuant to NRS 40.645, the contractor shall forward a copy of the notice by certified mail, return receipt requested, to the last known address of each subcontractor, supplier or design professional whom the contractor reasonably believes is responsible for a defect specified in the notice.

2. If a contractor does not provide notice as required pursuant to subsection 1, the contractor may not commence an action against the subcontractor, supplier or design professional related to the constructional defect unless the contractor demonstrates that, after making a good faith effort, he was unable to identify the subcontractor, supplier or design professional who he believes is responsible for the defect within the time provided pursuant to subsection 1.

3. Except as otherwise provided in subsection 4, not later than 30 days after receiving notice from the contractor pursuant to this section, the subcontractor, supplier or design professional shall inspect the alleged constructional defect in accordance with subsection 1 of section 8 of this act and provide the contractor with a written statement indicating:

(a) Whether the subcontractor, supplier or design professional has elected to repair the defect for which the contractor believes the subcontractor, supplier or design professional is responsible; and

(b) If the subcontractor, supplier or design professional elects to repair the defect, an estimate of the length of time required for the repair, and at least two proposed dates on and times at which the subcontractor, supplier or design professional is able to begin making the repair.

4. If the notice of a constructional defect forwarded by the contractor was given pursuant to subsection 4 of NRS 40.645 and the contractor provides a disclosure of the notice of the alleged common constructional defects to the unnamed owners to whom the notice may apply pursuant to section 6 of this act:

(a) The contractor shall, in addition to the notice provided pursuant to subsection 1, upon receipt of a request for an inspection, forward a copy of the request to or notify each subcontractor, supplier or design professional who may be responsible for the alleged defect of the request not later than 5 working days after receiving such a request; and

(b) Not later than 20 days after receiving notice from the contractor of such a request, the subcontractor, supplier or design professional shall inspect the alleged constructional defect in accordance with subsection 2 of section 8 of this act and provide the contractor with a written statement indicating:

(1) Whether the subcontractor, supplier or design professional has elected to repair the defect for which the contractor believes the subcontractor, supplier or design professional is responsible; and

(2) If the subcontractor, supplier or design professional elects to repair the defect, an estimate of the length of time required for the repair, and at least two proposed dates on and times at which the subcontractor, supplier or design professional is able to begin making the repair.

5. If a subcontractor, supplier or design professional elects to repair the constructional defect, the contractor or claimant may hold the subcontractor liable for any repair which does not eliminate the defect.

Sec. 8. 1. Except as otherwise provided in subsection 2, after notice of a constructional defect is given to a contractor pursuant to NRS 40.645, the claimant shall, upon reasonable notice, allow the contractor and each subcontractor, supplier or design professional who may be responsible for the alleged defect reasonable access to the residence or appurtenance that is the subject of the notice to determine the nature and extent of a constructional defect and the nature and extent of repairs that may be necessary. To the extent possible, the persons entitled to inspect shall coordinate and conduct the inspections in a manner which minimizes the inconvenience to the claimant.

2. If notice is given to the contractor pursuant to subsection 4 of NRS 40.645, the contractor and each subcontractor, supplier or design professional who may be responsible for the defect do not have the right to inspect the residence or appurtenance of an owner who is not named in the notice unless the owner requests the inspection in the manner set forth in section 6 of this act. If the owner does not request the inspection, the owner shall be deemed not to have provided notice pursuant to NRS 40.645.

Sec. 9. 1. Except as otherwise provided in NRS 40.670 and 40.672 and section 6 of this act, a written response must be sent by certified mail, return receipt requested, to a claimant who gives notice of a constructional defect pursuant to NRS 40.645:

(a) By the contractor not later than 90 days after the contractor receives the notice; and

(b) If notice was sent to a subcontractor, supplier or design professional, by the subcontractor, supplier or design professional not later than 90 days after the date that the subcontractor, supplier or design professional receives the notice.

2. The written response sent pursuant to subsection 1 must respond to each constructional defect in the notice and:

(a) Must state whether the contractor, subcontractor, supplier or design professional has elected to repair the defect or cause the defect to be repaired. If an election to repair is included in the response and the repair will cause the claimant to move from his home during the repair, the election must also include monetary compensation in an amount reasonably necessary for temporary housing or for storage of household items, or for both, if necessary.

(b) May include a proposal for monetary compensation, which may include contribution from a subcontractor, supplier or design professional.

(c) May disclaim liability for the constructional defect and state the reasons for such a disclaimer.

3. If the claimant is a homeowners’ association, the association shall send a copy of the response to each member of the association not later than 30 days after receiving the response.

4. If the contractor, subcontractor, supplier or design professional has elected not to repair the constructional defect, the claimant or contractor may bring a cause of action for the constructional defect or amend a complaint to add a cause of action for the constructional defect.

5. If the contractor, subcontractor, supplier or design professional has elected to repair the constructional defect, the claimant must provide the contractor, subcontractor, supplier or design professional with a reasonable opportunity to repair the constructional defect.

Sec. 10. 1. If the response provided pursuant to section 9 of this act includes an election to repair the constructional defect:

(a) The repairs may be performed by the contractor, subcontractor, supplier or design professional, if he is properly licensed, bonded and insured to perform the repairs and, if he is not, the repairs may be performed by another person who meets those qualifications.

(b) The repairs must be performed:

(1) On reasonable dates and at reasonable times agreed to in advance with the claimant;

(2) In compliance with any applicable building code and in a good and workmanlike manner in accordance with the generally accepted standard of care in the industry for that type of repair; and

(3) In a manner which will not increase the cost of maintaining the residence or appurtenance than otherwise would have been required if the residence or appurtenance had been constructed without the constructional defect, unless the contractor and the claimant agree in writing that the contractor will compensate the claimant for the increased cost incurred as a result of the repair.

(c) Any part of the residence or appurtenance that is not defective but which must be removed to correct the constructional defect must be replaced.

(d) The contractor, subcontractor, supplier or design professional shall prevent, remove and indemnify the claimant against any mechanics’ liens and materialmen’s liens.

2. Unless the claimant and the contractor, subcontractor, supplier or design professional agree to extend the time for repairs, the repairs must be completed:

(a) If the notice was sent pursuant to subsection 4 of NRS 40.645 and there are four or fewer owners named in the notice, for the named owners, not later than 105 days after the date on which the contractor received the notice.

(b) If the notice was sent pursuant to subsection 4 of NRS 40.645 and there are five or more owners named in the notice, for the named owners, not later than 150 days after the date on which the contractor received the notice.

(c) If the notice was sent pursuant to subsection 4 of NRS 40.645, not later than 105 days after the date on which the contractor provides a disclosure of the notice to the unnamed owners to whom the notice applies pursuant to section 6 of this act.

(d) If the notice was not sent pursuant to subsection 4 of NRS 40.645:

(1) Not later than 105 days after the date on which the notice of the constructional defect was received by the contractor, subcontractor, supplier or design professional if the notice of a constructional defect was received from four or fewer owners; or

(2) Not later than 150 days after the date on which the notice of the constructional defect was received by the contractor, subcontractor, supplier or design professional if the notice was received from five or more owners or from a representative of a homeowners’ association.

3. If repairs reasonably cannot be completed within the time set forth in subsection 2, the claimant and the contractor, subcontractor, supplier or design professional shall agree to a reasonable time within which to complete the repair. If the claimant and contractor, subcontractor, supplier or design professional cannot agree on such a time, any of them may petition the court to establish a reasonable time for completing the repair.

4. Any election to repair made pursuant to section 9 of this act may not be made conditional upon a release of liability.

5. Not later than 30 days after the repairs are completed, the contractor, subcontractor, supplier or design professional who repaired or caused the repair of a constructional defect shall provide the claimant with a written statement describing the nature and extent of the repair, the method used to repair the constructional defect and the extent of any materials or parts that were replaced during the repair.

Sec. 11. 1. Except as otherwise provided in section 6 of this act, after notice of a constructional defect is given pursuant to NRS 40.645, before a claimant may commence an action or amend a complaint to add a cause of action for a constructional defect against a contractor, subcontractor, supplier or design professional, the claimant must:

(a) Allow an inspection of the alleged constructional defect to be conducted pursuant to section 8 of this act; and

(b) Allow the contractor, subcontractor, supplier or design professional a reasonable opportunity to repair the constructional defect or cause the defect to be repaired if an election to repair is made pursuant to section 9 of this act.

2. If a claimant commences an action without complying with subsection 1 or NRS 40.645, the court shall:

(a) Dismiss the action without prejudice and compel the claimant to comply with those provisions before filing another action; or

(b) If dismissal of the action would prevent the claimant from filing another action because the action would be procedurally barred by the statute of limitations or statute of repose, the court shall stay the proceeding pending compliance with those provisions by the claimant.

Sec. 12. 1. A claimant and any contractor, subcontractor, supplier and design professional may submit a question or dispute to the State Contractors’ Board concerning any matter which may affect or relate to a constructional defect, including, without limitation, questions concerning the need for repairs, the appropriate method for repairs, the sufficiency of any repairs that have been made and the respective rights and responsibilities of homeowners, claimants, contractors, subcontractors, suppliers and design professionals.

2. If a question or dispute is submitted to the State Contractors’ Board pursuant to this section, the State Contractors’ Board shall, pursuant to its regulations, rules and procedures, respond to the question or investigate the dispute and render a decision. Nothing in this section authorizes the State Contractors’ Board to require the owner of a residence or appurtenance to participate in any administrative hearing which is held pursuant to this section.

3. Not later than 30 days after a question or dispute is submitted to the State Contractors’ Board pursuant to subsection 1, the State Contractors’ Board shall respond to the question or render its decision. The response or decision of the State Contractors’ Board:

(a) Is not binding and is not subject to judicial review pursuant to the provisions of chapters 233B and 624 of NRS; and

(b) Is not admissible in any judicial or administrative proceeding brought pursuant to the provisions of this chapter.

4. The provisions of this chapter do not preclude a claimant or a contractor, subcontractor, supplier or design professional from pursuing any remedy otherwise available from the State Contractors’ Board pursuant to the provisions of chapter 624 of NRS concerning a constructional defect.

5. If an action for a constructional defect has been commenced, the court shall not stay or delay any proceedings before the court pending an answer to a question or decision concerning a dispute submitted to the State Contractors’ Board.

6. The State Contractors’ Board shall adopt regulations necessary to carry out the provisions of this section and may charge and collect reasonable fees from licensees to cover the cost of carrying out its duties pursuant to this section.

Sec. 13. 1. If a contractor, subcontractor, supplier or design professional receives written notice of a constructional defect, the contractor, subcontractor, supplier or design professional may present the claim to an insurer which has issued a policy of insurance that covers all or any portion of the business of the contractor, subcontractor, supplier or design professional.

2. If the contractor, subcontractor, supplier or design professional presents the claim to the insurer pursuant to this section, the insurer:

(a) Must treat the claim as if a civil action has been brought against the contractor, subcontractor, supplier or design professional; and

(b) Must provide coverage to the extent available under the policy of insurance as if a civil action has been brought against the contractor, subcontractor, supplier or design professional.

3. A contractor, subcontractor, supplier or design professional is not required to present a claim to the insurer pursuant to this section, and the failure to present such a claim to the insurer does not relieve the insurer of any duty under the policy of insurance to the contractor, subcontractor, supplier or design professional.

Sec. 14. 1. If a settlement conference is held concerning a claim for a constructional defect, the special master, if any, or the judge presiding over the claim may order a representative of an insurer of a party to attend the settlement conference. If a representative of an insurer is ordered to attend the settlement conference, the insurer shall ensure that the representative is authorized, on behalf of the insurer, to:

(a) Bind the insurer to any settlement agreement relating to the claim;

(b) Enter into any agreement relating to coverage that may be available under the party’s policy of insurance which is required to carry out any settlement relating to the claim; and

(c) Commit for expenditure money or other assets available under the party’s policy of insurance.

2. If a representative of an insurer who is ordered to attend a settlement conference pursuant to subsection 1 fails to attend the settlement conference or attends but is substantially unprepared to participate, or fails to participate in good faith, the special master or the judge may, on his own motion or that of a party, issue any order with regard thereto that is just under the circumstances.

3. In lieu of or in addition to any other sanction, the special master or the judge may require the insurer to pay any reasonable expenses or attorney’s fees incurred by a party because of the failure of the insurer or its representative to comply with the provisions of this section or any order issued pursuant to this section, unless the special master or the judge finds that the failure to comply was substantially justified or that any other circumstances make the award of such expenses or fees unjust.

4. Any insurer which conducts business in this state and which insures a party against liability for the claim shall be deemed to have consented to the jurisdiction of the special master or the judge for the purposes of this section.

5. The authority conferred upon the special master or the judge pursuant to this section is in addition to any other authority conferred upon the special master or the judge pursuant to any other statute or any court rule.

Sec. 15. Not later than 15 days before the commencement of mediation required pursuant to NRS 40.680 and upon providing 15 days’ notice, each party shall provide to the other party, or shall make a reasonable effort to assist the other party to obtain, all relevant reports, photos, correspondence, plans, specifications, warranties, contracts, subcontracts, work orders for repair, videotapes, technical reports, soil and other engineering reports and other documents or materials relating to the claim that are not privileged.

Sec. 16. NRS 40.600 is hereby amended to read as follows:

40.600 As used in NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 40.605 to 40.630, inclusive, and sections 2 to 5, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 17. NRS 40.610 is hereby amended to read as follows:

40.610 “Claimant” means [an] :

1. An owner of a residence or appurtenance [or a] ;

2. A representative of a homeowner’s association that is responsible for a residence or appurtenance and is acting within the scope of his duties pursuant to chapter 116 or 117 of NRS [.] ; or

3. Each owner of a residence or appurtenance to whom a notice applies pursuant to subsection 4 of NRS 40.645.

Sec. 18. NRS 40.615 is hereby amended to read as follows:

40.615 “Constructional defect” [includes] means a defect in the design, construction, manufacture, repair or landscaping of a new residence, of an alteration of or addition to an existing residence, or of an appurtenance [. The term includes] and includes, without limitation, the design, construction, manufacture, repair or landscaping of a new residence, of an alteration of or addition to an existing residence, or of an appurtenance:

1. Which is done in violation of law, including, without limitation, in violation of local codes or ordinances;

2. Which proximately causes physical damage to the residence, an appurtenance or the real property to which the residence or appurtenance is affixed [that is proximately caused by a constructional defect.] ;

3. Which is not completed in a good and workmanlike manner in accordance with the generally accepted standard of care in the industry for that type of design, construction, manufacture, repair or landscaping; or

4. Which presents an unreasonable risk of injury to a person or property.

Sec. 19. NRS 40.635 is hereby amended to read as follows:

40.635 NRS 40.600 to 40.695, inclusive [:] , and sections 2 to 15, inclusive, of this act:

1. Apply to any claim that arises before, on or after July 1, 1995, as the result of a constructional defect, except a claim for personal injury or wrongful death, if the claim is the subject of an action commenced on or after July 1, 1995.

2. Prevail over any conflicting law otherwise applicable to the claim or cause of action.

3. Do not bar or limit any defense otherwise available , except as otherwise provided in those sections.

4. Do not create a new theory upon which liability may be based [.] , except as otherwise provided in those sections.

Sec. 20. NRS 40.645 is hereby amended to read as follows:

40.645 1. Except as otherwise provided in this section and NRS 40.670 , [:

1. For a claim that is not a complex matter, at least 60 days] before a claimant commences an action or amends a complaint to add a cause of action for a constructional defect against a contractor [for damages arising from a constructional defect,] , subcontractor, supplier or design professional the claimant [must] :

(a) Must give written notice by certified mail, return receipt requested, to the contractor, at the contractor’s [last known address, specifying] address listed in the records of the State Contractors’ Board or in the records of the office of the county or city clerk or at the contractor’s last known address if his address is not listed in those records; and

(b) May give written notice by certified mail, return receipt requested, to any subcontractor, supplier or design professional known to the claimant who may be responsible for the constructional defect, if the claimant knows that the contractor is no longer licensed in this state or that he no longer acts as a contractor in this state.

2. The notice given pursuant to subsection 1 must:

(a) Include a statement that the notice is being given to satisfy the requirements of this section;

(b) Specify in reasonable detail the defects or any damages or injuries to each residence or appurtenance that is the subject of the claim [. The notice must describe] ; and

(c) Describe in reasonable detail the cause of the defects if the cause is known, the nature and extent that is known of the damage or injury resulting from the defects and the location of each defect within each residence or appurtenance to the extent known.

3. Notice that includes an expert opinion concerning the cause of the constructional defects and the nature and extent of the damage or injury resulting from the defects which is based on a valid and reliable representative sample of the components of the residences or appurtenances may be used as notice of the common constructional defects within the residences or appurtenances to which the expert opinion applies.

4. Except as otherwise provided in subsection 5, one notice may be sent relating to all similarly situated owners of residences or appurtenances within a single development that allegedly have common constructional defects if:

(a) An expert opinion is obtained concerning the cause of the common constructional defects and the nature and extent of the damage or injury resulting from the common constructional defects ;

(b) That expert opinion concludes that based on a valid and reliable representative sample of the components of the residences and appurtenances [involved] included in the [action satisfies the requirements of this section. During the 45‑day period after the contractor receives the notice, on his written request, the contractor is entitled to inspect the property that is the subject of the claim to determine the nature and cause of the defect, damage or injury and the nature and extent of repairs necessary to remedy the defect. The contractor shall, before making the inspection, provide reasonable notice of the inspection and shall make the inspection at a reasonable time. The contractor may take reasonable steps to establish the existence of the defect.

2. If a residence or appurtenance that is the subject of the claim is covered by a homeowner’s warranty that is purchased by or on behalf of a claimant pursuant to NRS 690B.100 to 690B.180, inclusive, a claimant shall diligently pursue a claim under the contract.

3. Within 60 days after the contractor receives the notice, the contractor shall make a written response to the claimant. The response:

(a) Must be served to the claimant by certified mail, return receipt requested, at the claimant’s last known address.

(b) Must respond to each constructional defect set forth in the claimant’s notice, and describe in reasonable detail the cause of the defect, if known, the nature and extent of the damage or injury resulting from the defect, and, unless the response is limited to a proposal for monetary compensation, the method, adequacy and estimated cost of any proposed repair.

(c) May include:

(1) A proposal for monetary compensation, which may include a contribution from a subcontractor.

(2) If the contractor or his subcontractor is licensed to make the repairs, an agreement by the contractor or subcontractor to make the repairs.

(3) An agreement by the contractor to cause the repairs to be made, at the contractor’s expense, by another contractor who is licensed to make the repairs, bonded and insured.

The repairs must be made within 45 days after the contractor receives written notice of acceptance of the response, unless completion is delayed by the claimant or by other events beyond the control of the contractor, or timely completion of the repairs is not reasonably possible. The claimant and the contractor may agree in writing to extend the periods prescribed by this section.

4. Not later than 15 days before the mediation required pursuant to NRS 40.680 and upon providing 15 days’ notice, each party shall provide the other party, or shall make a reasonable effort to assist the other party to obtain, all relevant reports, photos, correspondence, plans, specifications, warranties, contracts, subcontracts, work orders for repair, videotapes, technical reports, soil and other engineering reports and other documents or materials relating to the claim that are not privileged.

5. If the claimant is a representative of a homeowner’s association, the association shall submit any response made by the contractor to each member of the association.

6. As used in this section, “subcontractor” means a contractor who performs work on behalf of another contractor in the construction of a residence or appurtenance.] notice, it is the opinion of the expert that those similarly situated residences and appurtenances may have such common constructional defects; and

(c) A copy of the expert opinion is included with the notice.

5. A representative of a homeowner’s association may send notice pursuant to this section on behalf of an association that is responsible for a residence or appurtenance if the representative is acting within the scope of his duties pursuant to chapter 116 or 117 of NRS.

6. Notice is not required pursuant to this section before commencing an action if:

(a) The contractor, subcontractor, supplier or design professional has filed an action against the claimant; or

(b) The claimant has filed a formal complaint with a law enforcement agency against the contractor, subcontractor, supplier or design professional for threatening to commit or committing an act of violence or a criminal offense against the claimant or the property of the claimant.

Sec. 21. NRS 40.650 is hereby amended to read as follows:

40.650 1. If a claimant unreasonably rejects a reasonable written offer of settlement made as part of a response [made] pursuant to [NRS 40.645 or 40.682 or does not permit the contractor or independent contractor a reasonable opportunity to repair the defect pursuant to an accepted offer of settlement] paragraph (b) of subsection 2 of section 9 of this act and thereafter commences an action governed by NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act, the court in which the action is commenced may:

(a) Deny the claimant’s attorney’s fees and costs; and

(b) Award attorney’s fees and costs to the contractor.

Any sums paid under a homeowner’s warranty, other than sums paid in satisfaction of claims that are collateral to any coverage issued to or by the contractor, must be deducted from any recovery.

2. If a contractor , subcontractor, supplier or design professional fails to:

(a) Comply with the provisions of section 9 of this act;

(b) Make an offer of settlement;

[(b)] (c) Make a good faith response to the claim asserting no liability;

[(c) Complete, in a good and workmanlike manner, the repairs specified in an accepted offer;]

(d) Agree to a mediator or accept the appointment of a mediator pursuant to NRS 40.680 ; [or subsection 4 of NRS 40.682;] or

(e) Participate in mediation,

the limitations on damages and defenses to liability provided in NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act do not apply and the claimant may commence an action or amend a complaint to add a cause of action for a constructional defect without satisfying any other requirement of NRS 40.600 to 40.695, inclusive [.] , and sections 2 to 15, inclusive, of this act.

3. If a residence or appurtenance that is the subject of the claim is covered by a homeowner’s warranty that is purchased by or on behalf of a claimant pursuant to NRS 690B.100 to 690B.180, inclusive, a claimant shall diligently pursue a claim under the contract. If coverage under a homeowner’s warranty is denied by an insurer in bad faith, the homeowner and the contractor , subcontractor, supplier or design professional have a right of action for the sums that would have been paid if coverage had been provided, plus reasonable attorney’s fees and costs.

4. Nothing in this section prohibits an offer of judgment pursuant to Rule 68 of the Nevada Rules of Civil Procedure or NRS 17.115 if the offer of judgment includes all damages to which the claimant is entitled pursuant to NRS 40.655.

Sec. 22. NRS 40.655 is hereby amended to read as follows:

40.655 1. Except as otherwise provided in NRS 40.650, in a claim governed by NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act, the claimant may recover only the following damages to the extent proximately caused by a constructional defect:

(a) Any reasonable attorney’s fees;

(b) The reasonable cost of any repairs already made that were necessary and of any repairs yet to be made that are necessary to cure any constructional defect that the contractor failed to cure and the reasonable expenses of temporary housing reasonably necessary during the repair;

(c) The reduction in market value of the residence or accessory structure, if any, to the extent the reduction is because of structural failure;

(d) The loss of the use of all or any part of the residence;

(e) The reasonable value of any other property damaged by the constructional defect;

(f) Any additional costs reasonably incurred by the claimant, including, but not limited to, any costs and fees incurred for the retention of experts to:

(1) Ascertain the nature and extent of the constructional defects;

(2) Evaluate appropriate corrective measures to estimate the value of loss of use; and

(3) Estimate the value of loss of use, the cost of temporary housing and the reduction of market value of the residence; and

(g) Any interest provided by statute.

2. The amount of any attorney’s fees awarded pursuant to this section must be approved by the court.

3. If a contractor complies with the provisions of NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act, the claimant may not recover from the contractor, as a result of the constructional defect, anything other than that which is provided pursuant to NRS 40.600 to 40.695, inclusive [.] , and sections 2 to 15, inclusive, of this act.

4. This section must not be construed as impairing any contractual rights between a contractor and a subcontractor, supplier or design professional.

5. As used in this section, “structural failure” means physical damage to the load-bearing portion of a residence or appurtenance caused by a failure of the load-bearing portion of the residence or appurtenance.

Sec. 23. NRS 40.660 is hereby amended to read as follows:

40.660 An offer of settlement made pursuant to paragraph (b) of subsection 2 of section 9 of this act that is not accepted within [:

1. In a complex matter, 45 days; or

2. In a matter that is not a complex matter, 25 days,]

35 days after the offer is received by the claimant is considered rejected if the offer contains a clear and understandable statement notifying the claimant of the consequences of his failure to respond or otherwise accept or reject the offer of settlement. An affidavit certifying rejection of an offer of settlement under this section may be filed with the court.

Sec. 24. NRS 40.665 is hereby amended to read as follows:

40.665 In addition to any other method provided for settling a claim pursuant to NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act, a contractor may, pursuant to a written agreement entered into with a claimant, settle a claim by repurchasing the claimant’s residence and the real property upon which it is located. The agreement may include provisions which reimburse the claimant for:

1. The market value of the residence as if no constructional defect existed, except that if a residence is less than 2 years of age and was purchased from the contractor against whom the claim is brought, the market value is the price at which the residence was sold to the claimant;

2. The value of any improvements made to the property by a person other than the contractor;

3. Reasonable attorney’s fees and fees for experts; and

4. Any costs, including costs and expenses for moving and costs, points and fees for loans.

Any offer of settlement made that includes the items listed in this section shall be deemed reasonable for the purposes of subsection 1 of NRS 40.650.

Sec. 25. NRS 40.667 is hereby amended to read as follows:

40.667 1. Except as otherwise provided in subsection 2, a written waiver or settlement agreement executed by a claimant after a contractor has corrected or otherwise repaired a constructional defect does not bar a claim for the constructional defect if it is determined that the contractor failed to correct or repair the defect properly.

2. The provisions of subsection 1 do not apply to any written waiver or settlement agreement described in subsection 1, unless:

(a) The claimant has obtained the opinion of an expert concerning the constructional defect;

(b) The claimant has provided the contractor with a written notice of the defect pursuant to NRS 40.645 [or 40.682] and a copy of the expert’s opinion; and

(c) The claimant and the contractor have complied with the requirements for inspection and repair as provided in NRS 40.600 to 40.695, inclusive [.] , and sections 2 to 15, inclusive, of this act.

3. The provisions of this section do not apply to repairs which are made pursuant to an election to repair pursuant to section 9 of this act.

4. If a claimant does not prevail in any action which is not barred pursuant to this section, the court may:

(a) Deny the claimant’s attorney’s fees, fees for an expert witness or costs; and

(b) Award attorney’s fees and costs to the contractor.

Sec. 26. NRS 40.670 is hereby amended to read as follows:

40.670 1. A contractor , subcontractor, supplier or design professional who receives written notice of a constructional defect resulting from work performed by the contractor , [or his agent, employee or] subcontractor , supplier or design professional which creates an imminent threat to the health or safety of the inhabitants of the residence shall take reasonable steps to cure the defect as soon as practicable. The contractor , subcontractor, supplier or design professional shall not cure the defect by making any repairs for which he is not licensed or by causing any repairs to be made by a person who is not licensed to make those repairs. If the contractor , subcontractor, supplier or design professional fails to cure the defect in a reasonable time, the owner of the residence may have the defect cured and may recover from the contractor , subcontractor, supplier or design professional the reasonable cost of the repairs plus reasonable attorney’s fees and costs in addition to any other damages recoverable under any other law.

2. A contractor , subcontractor, supplier or design professional who does not cure a defect pursuant to this section because he has determined, in good faith and after a reasonable inspection, that there is not an imminent threat to the health or safety of the inhabitants is not liable for attorney’s fees and costs pursuant to this section, except that if a building inspector, building official or other similar authority employed by a governmental body with jurisdiction certifies that there is an imminent threat to the health and safety of the inhabitants of the residence, the contractor , subcontractor, supplier or design professional is subject to the provisions of subsection 1.

Sec. 27. NRS 40.672 is hereby amended to read as follows:

40.672 Except as otherwise provided in NRS 40.670, if a contractor , subcontractor, supplier or design professional receives written notice of a constructional defect [that is not part of a complex matter] not more than 1 year after the close of escrow of the initial purchase of the residence, the contractor , subcontractor, supplier or design professional shall make the repairs within 45 days after [the contractor receives] receiving the written notice unless completion is delayed by the claimant or by other events beyond the control of the contractor, subcontractor, supplier or design professional, or timely completion of repairs is not reasonably possible. The contractor , subcontractor, supplier or design professional and claimant may agree in writing to extend the period prescribed by this section. If [the] a contractor or subcontractor fails to comply with this section, he is immediately subject to discipline pursuant to NRS 624.300.

Sec. 28. NRS 40.680 is hereby amended to read as follows:

40.680 1. Except as otherwise provided in this chapter, before a claimant commences an action [based on a claim governed by NRS 40.600 to 40.695, inclusive, may be commenced in court,] or amends a complaint to add a cause of action for a constructional defect against a contractor, subcontractor, supplier or design professional, the matter must be submitted to mediation, unless mediation is waived in writing by the contractor , subcontractor, supplier or design professional and the claimant.

2. The claimant and [contractor] each party alleged to have caused the constructional defect must select a mediator by agreement. If the claimant and [contractor] the other parties fail to agree upon a mediator within [45] 20 days after a mediator is first selected by the claimant, [either] any party may petition the American Arbitration Association, the Nevada Arbitration Association, Nevada Dispute Resolution Services or any other mediation service acceptable to the parties for the appointment of a mediator. A mediator so appointed may discover only those documents or records which are necessary to conduct the mediation. The mediator shall convene the mediation within [60] 30 days after the matter is submitted to him and shall complete the mediation within 45 days after the matter is submitted to him, unless the parties agree to extend the time. [Except in a complex matter, the claimant shall, before]

3. Before the mediation begins [,] :

(a) The claimant shall deposit $50 with the mediation service ; and [the contractor]

(b) Each other party shall deposit with the mediation service , in equal shares, the remaining amount estimated by the mediation service as necessary to pay the fees and expenses of the mediator for the first session of mediation [, and the contractor] and shall deposit additional amounts demanded by the mediation service as incurred for that purpose. [In a complex matter, each party shall share equally in the deposits estimated by the mediation service.]

4. Unless otherwise agreed, the total fees for each day of mediation and the mediator must not exceed $750 per day.

[3.] 5. If the parties do not reach an agreement concerning the matter during mediation or if [the contractor] any party who is alleged to have caused the constructional defect fails to pay the required fees and appear, the claimant may commence [his] an action or amend a complaint to add a cause of action for the constructional defect in court and:

(a) The reasonable costs and fees of the mediation are recoverable by the prevailing party as costs of the action.

(b) [Either] Any party may petition the court in which the action is commenced for the appointment of a special master.

[4.] 6. A special master appointed pursuant to subsection [3] 5 may:

(a) Review all pleadings, papers or documents filed with the court concerning the action.

(b) Coordinate the discovery of any books, records, papers or other documents by the parties, including the disclosure of witnesses and the taking of the deposition of any party.

(c) Order any inspections on the site of the property by a party and any consultants or experts of a party.

(d) Order settlement conferences and attendance at those conferences by any representative of the insurer of a party.

(e) Require any attorney representing a party to provide statements of legal and factual issues concerning the action.

(f) Refer to the judge who appointed him or to the presiding judge of the court in which the action is commenced any matter requiring assistance from the court.

The special master shall not, unless otherwise agreed by the parties, personally conduct any settlement conferences or engage in any ex parte meetings regarding the action.

[5.] 7. Upon application by a party to the court in which the action is commenced, any decision or other action taken by a special master appointed pursuant to this section may be appealed to the court for a decision.

[6.] 8. A report issued by a mediator or special master that indicates that [either] a party has failed to appear before him or to mediate in good faith is admissible in the action, but a statement or admission made by [either] a party in the course of mediation is not admissible.

Sec. 29. NRS 40.688 is hereby amended to read as follows:

40.688 1. If a claimant attempts to sell a residence that is or has been the subject of a claim governed by NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act, he shall disclose, in writing, to any prospective purchaser of the residence, not less than 30 days before the close of escrow for the sale of the residence or, if escrow is to close less than 30 days after the execution of the sales agreement, then immediately upon the execution of the sales agreement or, if a claim is initiated less than 30 days before the close of escrow, within 24 hours after giving written notice to the contractor pursuant to [subsection 1 of] NRS 40.645 : [or subsection 1 of NRS 40.682:]

(a) All notices given by the claimant to the contractor pursuant to NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act that are related to the residence;

(b) All opinions the claimant has obtained from experts regarding a constructional defect that is or has been the subject of the claim;

(c) The terms of any settlement, order or judgment relating to the claim; and

(d) A detailed report of all repairs made to the residence by or on behalf of the claimant as a result of a constructional defect that is or has been the subject of the claim.

2. Before taking any action on a claim pursuant to NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act, the attorney for a claimant shall notify the claimant in writing of the provisions of this section.

Sec. 30. NRS 40.6882 is hereby amended to read as follows:

40.6882 [“Complainant”] As used in NRS 40.6884 and 40.6885, unless the context otherwise requires, “complainant” means a person who makes a claim or files an action against a design professional pursuant to NRS 40.600 to 40.695, inclusive [.] , and sections 2 to 15, inclusive, of this act.

Sec. 31. NRS 40.692 is hereby amended to read as follows:

40.692 [If, after complying with the procedural requirements of NRS 40.645 and 40.680, or NRS 40.682, a claimant proceeds with an action for damages arising from a constructional defect:

1. The claimant and each contractor who is named in the original complaint when the action is commenced are not required, while the action is pending, to comply with the requirements of NRS 40.645 or 40.680, or NRS 40.682, for any constructional defect that the claimant includes in an amended complaint, if the constructional defect:

(a) Is attributable, in whole or in part, to such a contractor;

(b) Is located on the same property described in the original complaint; and

(c) Was not discovered before the action was commenced provided that a good faith effort had been undertaken by the claimant.

2. The] A claimant who commences an action for a constructional defect is not required to give written notice of a defect pursuant to [subsection 1 of NRS 40.645 or subsection 1 of NRS 40.682] NRS 40.645 to any person who [is joined to or] intervenes in the action as a party after it is commenced. If such a person becomes a party to the action:

[(a)] 1. For the purposes of [subsection 1 of NRS 40.645 or subsection 1 of NRS 40.682,] NRS 40.645, the person shall be deemed to have been given notice of the defect by the claimant on the date on which the person becomes a party to the action; and

[(b)] 2. The provisions of NRS 40.600 to 40.695, inclusive, and section 2 to 15, inclusive, of this act apply to the person after that date.

Sec. 32. NRS 40.695 is hereby amended to read as follows:

40.695 1. Except as otherwise provided in subsection 2, statutes of limitation or repose applicable to a claim based on a constructional defect governed by NRS 40.600 to 40.695, inclusive, and sections 2 to 15, inclusive, of this act are tolled from the time notice of the claim is given, until 30 days after mediation is concluded or waived in writing pursuant to NRS 40.680 . [or subsection 4 of NRS 40.682.]

2. Tolling under this section applies [:

(a) Only to a claim that is not a complex matter.

(b) To] to a third party regardless of whether the party is required to appear in the proceeding.

Sec. 33. NRS 40.613, 40.682, 40.6881 and 40.6883 are hereby repealed.

Sec. 34. The amendatory provisions of this act apply only to claim for a constructional defect that arises before, on or after August 1, 2003, unless the claimant:

1. Has commenced an action concerning the claim in accordance with NRS 40.600 to 40.695, inclusive, before August 1, 2003; or

2. Has given notice of the claim to the contractor, subcontractor, supplier or design professional pursuant to NRS 40.600 to 40.695, inclusive, before August 1, 2003, including notice on behalf of named and unnamed claimants.

Sec. 35. 1. This section and section 12 of this act become effective upon passage and approval for the purpose of adopting regulations and on August 1, 2003, for all other purposes.

2. Sections 1 to 11, inclusive, and 13 to 34, inclusive, of this act become effective on August 1, 2003.

TEXT OF REPEALED SECTION

40.613 “Complex matter” defined.

40.682 Complex matters: Written notice by claimant; procedural requirements; additional parties and third-party complaints; mediation; appointment of special master; limitation on certain pretrial procedures; pursuit of claim under warranty; written response by contractor.

40.6881 Definitions.

40.6883 “Design professional” defined.”.

Amend the title of the bill to read as follows:

“AN ACT relating to real property; requiring notice, a right to inspect and a right to repair to be provided to a contractor before an action for constructional defects may be commenced; establishing the State Contractors’ Board as a resource to answer questions and assist in resolving disputes concerning matters which may affect or relate to constructional defects; making various other changes concerning constructional defects; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Makes various changes concerning constructional defects. (BDR 3‑156)”.

Senator Townsend moved that the Senate concur in the Assembly amendment to Senate Bill No. 241.

Remarks by Senators Townsend and Titus.

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

I rise in support of concurrence with the Assembly’s amendment to Senate Bill No. 241 and feel this issue is too important to let pass without comment. We have worked for a number of sessions to address the growing problem of construction defects, and it appears that we now have a potential solution agreed upon, after much debate and input, by all the interested parties.

I have always made protecting homeowners my priority and felt that developers needed a reasonable right to repair. The original bill, however, has some problems which I am glad to say the Assembly has addressed.

First, they eliminated unnecessary interference with the discretion of district court judges in management of these cases. Second, they have assured that notice to lenders does not create another level of disruption to the reasonable right to repair. Third, they have clarified time frames for repair and remediation so if any party wants to go to the Contractors' Board, the process is not delayed so repairs can move forward expeditiously.

I am optimistic this bill will help circumvent a pending crisis, and I am pleased to vote for it.

Motion carried by a two-thirds majority.

Bill ordered enrolled.

Senate Bill No. 407.

The following Assembly amendment was read:

Amendment No. 750.

Amend section 1, page 1, line 3, by deleting “$3,400” and inserting “$2,600”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 407.

Remarks by Senators Raggio and Neal.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 423.

The following Assembly amendment was read:

Amendment No. 819.

Amend sec. 3, page 3, by deleting lines 21 through 23 and inserting: “an action in the district court of the county [wherein the appealed claim or claims were filed against the Administrator] where the employment which is the basis of the claim was performed for the review of the decision, in which action any”.

Amend the title of the bill by deleting the twelfth line and inserting: “in the district court of the county where the employment which is the basis of the claim was performed; and providing other”.

Senator Townsend moved that the Senate concur in the Assembly amendment to Senate Bill No. 423.

Remarks by Townsend.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 426.

The following Assembly amendment was read:

Amendment No. 821.

Amend sec. 8, page 3, by deleting line 20 and inserting: “shall:

(a) Establish procedures and standards for the review and approval of such an application, including, without limitation, procedures for:

(1) Review and approval of such an application by administrative staff pursuant to this section; and

(2) Consideration of such an application by the land use authority if the administrative staff denies the application; and

(b) Authorize administrative staff to review and approve such an application pursuant to this section.

2. The administrative staff authorized to review and approve an application to construct a facility for personal wireless service may approve such an application if:

(a) The applicant complies with the procedures established by the land use authority pursuant to this section;

(b) The facility for personal wireless service meets the standards established by the land use authority pursuant to this section;”.

Amend sec. 8, page 3, line 21, by deleting “(a)” and inserting “(c)”.

Amend sec. 8, page 3, line 25, by deleting “(b)” and inserting “(d)”.

Amend sec. 8, page 3, line 31, by deleting “authority;” and inserting: “authority, if the facility for personal wireless service that is the subject of the application is architecturally integrated as described in subparagraph (1) at least to the extent that the facility for personal wireless service with which it is to be collocated is architecturally integrated;”.

Amend sec. 8, page 3, by deleting line 37.

Amend sec. 8, page 3, between lines 38 and 39 by inserting:

“3. If the administrative staff authorized pursuant to this section to review and approve an application to construct a facility for personal wireless service denies such an application, the administrative staff shall provide to the applicant and the land use authority a written explanation that identifies each procedure and standard that the applicant, application or facility for personal wireless service failed to meet.”.

Amend sec. 8, page 3, line 39, by deleting “2.” and inserting “4.”.

Amend sec. 8, pages 3 and 4, by deleting lines 44 and 45 on page 3 and lines 1 and 2 on page 4.

Amend sec. 8, page 4, line 3, by deleting “(c)” and inserting “(b)”.

Amend sec. 8, page 4, line 5, after “application” by inserting: “based on the use of the public right-of-way”.

Amend sec. 8, page 4, by deleting lines 6 and 7 and inserting:

“(1) Meets all applicable state and local requirements for use of a public right-of-way, including, without limitation, any requirements established by the land use authority; and”.

Amend sec. 8, page 4, by deleting lines 9 through 11.

Amend sec. 10, page 4, line 16, by deleting “or conditions”.

Amend sec. 10, page 4, line 20, by deleting “or conditioned”.

Amend sec. 10, page 4, by deleting lines 22 and 23 and inserting:

“(b) Describe the documents relied upon by the land use authority in making its decision.”.

Amend the title of the bill to read as follows:

“AN ACT relating to wireless telecommunications; providing for standards and procedures for approval by a state or local land use authority of an application for the construction of a facility for personal wireless service under certain circumstances; authorizing a land use authority to assess an applicant for the actual costs incurred by the authority to process an application; requiring that a denial of an application be in writing, set forth each ground for denial and describe the documents relied upon; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Provides for standards and procedures for approval of applications for construction of facilities for personal wireless communications. (BDR 58-1286)”.

Senator Townsend moved that the Senate concur in the Assembly amendment to Senate Bill No. 426.

Remarks by Senator Townsend.

Motion carried by a two-thirds majority.

Bill ordered enrolled.

Senate Bill No. 439.

The following Assembly amendment was read:

Amendment No. 781.

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 1A.270 is hereby amended to read as follows:

1A.270 1. Each justice of the Supreme Court or district judge who is elected or appointed as a justice of the Supreme Court or a district judge on or after November 5, 2002, who takes office on or after January 1, 2003, and who previously has not served as either a justice of the Supreme Court or a district judge must receive benefits for retirement, benefits for disability and survivor benefits under the Judicial Retirement Plan, if eligible to receive such benefits under the Judicial Retirement Plan, unless he is a member of the Public Employees’ Retirement System and elects to remain a member pursuant to NRS 1A.280 if eligible to do so.

2. Each justice of the Supreme Court or district judge who is elected or appointed as a justice of the Supreme Court or district judge on or after November 5, 2002, and who previously has served as either a justice of the Supreme Court or a district judge and each justice of the Supreme Court or district judge who is serving as a justice of the Supreme Court or district judge on November 5, 2002, must receive benefits for retirement, benefits for disability and survivor benefits pursuant to either:

(a) NRS 2.060 to 2.083, inclusive, or 3.090 to 3.099, inclusive, as those sections existed on November 5, 2002, if eligible to receive such benefits under such provisions; or

(b) The Judicial Retirement Plan, if eligible to receive such benefits under the Judicial Retirement Plan,

whichever is most beneficial to the justice or judge or his survivor, as determined by the justice or judge at the time of his retirement or the time at which he becomes disabled, or as determined by his survivor at the time of his death, unless he is a member of the Public Employees’ Retirement System and elects to remain a member pursuant to NRS 1A.280 if eligible to do so. A survivor may not change a determination that affects the survivor and which was made by a justice or judge pursuant to this section while the justice or judge was alive.

3. A determination made pursuant to subsection 2 is final and if a justice or judge or his survivor determines pursuant to subsection 2:

(a) To receive benefits pursuant to the Judicial Retirement Plan, the justice, judge or survivor may not receive benefits pursuant to NRS 2.060 to 2.083, inclusive, or pursuant to NRS 3.090 to 3.099, inclusive; or

(b) To receive benefits pursuant to NRS 2.060 to 2.083, inclusive, or pursuant to NRS 3.090 to 3.099, inclusive, the justice, judge or survivor may not receive benefits pursuant to the Judicial Retirement Plan.

4. No justice of the Supreme Court or district judge or survivor of a justice of the Supreme Court or district judge may receive benefits under both this chapter and:

(a) NRS 2.060 to 2.083, inclusive; or

(b) NRS 3.090 to 3.099, inclusive.

5. A justice of the Supreme Court or district judge or a survivor of a justice of the Supreme Court or district judge who is receiving retirement allowances pursuant to NRS 2.060 to 2.083, inclusive, or pursuant to NRS 3.090 to 3.099, inclusive, on January 1, 2003, is not eligible for transfer to the Judicial Retirement Plan.”.

Amend the title of the bill, eleventh line, after “Plan;” by inserting: “authorizing certain justices of the Supreme Court and district judges to receive benefits for retirement, benefits for disability and survivor benefits pursuant to the Judicial Retirement Plan;”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 439.

Remarks by Senator Raggio.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 34.

The following Assembly amendment was read:

Amendment No. 748.

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

Amend the title of the bill to read as follows:

“AN ACT relating to pupils; clarifying that a pupil may be retained more than once in the same grade under certain circumstances; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Clarifies that pupil may be retained more than once in same grade under certain circumstances. (BDR 34‑639)”.

Senator Raggio moved that the Senate do not concur in the Assembly amendment to Senate Bill No. 34.

Remarks by Senator Raggio.

Motion carried.

Bill ordered transmitted to the Assembly.

Senate Bill No. 102.

The following Assembly amendment was read:

Amendment No. 811.

Amend section 1, page 1, by deleting lines 2 and 3 and inserting: “thereto the provisions set forth as sections 2 and 3 of this act.

Sec. 2. 1. A majority of the Commissioners has full power to act in”.

Amend section 1, page 1, line 14, after “Acting Commissioner.” by inserting: “If there are fewer than two Commissioners who are able to act on the matter because of disqualifications, illnesses, incapacities, vacancies that have not yet been filled, or any other reason, and the Governor has not appointed the requisite number of persons to serve as Acting Commissioners pursuant to this subsection, the Deputy Commissioner appointed pursuant to subsection 1 of NRS 703.130 may serve as an Acting Commissioner.”.

Amend section 1, page 2, line 3, after “appointed” by inserting: “or authorized”.

Amend section 1, page 2, line 7, by deleting “was appointed.” and inserting: “is appointed or authorized to serve as an Acting Commissioner.”.

Amend the bill as a whole by renumbering sections 2 through 5 as sections 4 through 7 and adding a new section designated sec. 3, following section 1, to read as follows:

“Sec. 3. 1. The appointment by the Governor of a person to serve as a Commissioner pursuant to NRS 703.030 or as an Acting Commissioner pursuant to section 2 of this act must first be confirmed:

(a) If the Legislature is in session, by a majority vote of the Assembly and a majority vote of the Senate; or

(b) If the Legislature is not in session, by a majority vote of the Legislative Commission.

2. Before voting upon a person proposed for appointment by the Governor to serve as a Commissioner or as an Acting Commissioner, the Legislative Commission shall consider:

(a) The qualifications of the person;

(b) The testimony of the public; and

(c) Any information provided by the person or by the Governor.

3. A person proposed for appointment by the Governor to serve as a Commissioner or as an Acting Commissioner may not serve until confirmed pursuant to this section.

4. If a person is not confirmed after a vote as required pursuant to this section, the Governor may not again propose that person for appointment to serve as a Commissioner or as an Acting Commissioner before the beginning of the next regular session of the Legislature.”.

Amend sec. 2, page 2, line 38, by deleting “1” and inserting “2”.

Amend the bill as a whole by renumbering sec. 6 as sec. 9 and adding a new section designated sec. 8, following sec. 5, to read as follows:

“Sec. 8. The provisions of section 3 of this act apply to any person proposed by the Governor, on or after July 1, 2003, to serve as a Commissioner pursuant to NRS 703.030 or as an Acting Commissioner pursuant to section 2 of this act.”.

Amend the title of the bill, fourth line, after “circumstances;” by inserting: “authorizing a Deputy Commissioner of the Commission to serve on the Commission as an Acting Commissioner under certain circumstances; requiring the confirmation of each appointment by the Governor of a person to serve as a Commissioner or as an Acting Commissioner;”.

Senator Townsend moved that the Senate do not concur in the Assembly amendment to Senate Bill No. 102.

Remarks by Senator Townsend.

Motion carried.

Bill ordered transmitted to the Assembly.

Senate Bill No. 193.

The following Assembly amendment was read:

Amendment No. 813.

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

Amend sec. 2, page 2, line 19, by deleting: “3 and NRS 616A.185,” and inserting “3,”.

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

“AN ACT relating to industrial insurance; extending the coverage of industrial”.

Senator Townsend moved that the Senate do not concur in the Assembly amendment to Senate Bill No. 193.

Remarks by Senator Townsend.

Motion carried.

Bill ordered transmitted to the Assembly.

Senate Bill No. 372.

The following Assembly amendment was read:

Amendment No. 818.

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

“Sec. 2. NRS 644.193 is hereby amended to read as follows:

644.193 1. The Board may grant a provisional license as an instructor to a person who:

(a) Has successfully completed the 12th grade in school or its equivalent and submits written verification of the completion of his education;

(b) Has practiced as a full-time licensed cosmetologist, aesthetician or manicurist for [3 years] 1 year and submits written verification of his experience;

(c) Is licensed pursuant to this chapter;

(d) Applies for a provisional license on a form supplied by the Board;

(e) Submits two current photographs of himself; and

(f) Has paid the fee established pursuant to subsection 2.

2. The Board shall establish and collect a fee of not less than $25 nor more than $40 for the issuance of a provisional license as an instructor.

3. A person issued a provisional license pursuant to this section may act as an instructor for compensation while accumulating the number of hours of training required for an instructor’s license.

4. A provisional license as an instructor expires upon accumulation by the licensee of the number of hours of training required for an instructor’s license. The Board may grant an extension of not more than 45 days to those provisional licensees who have applied to the Board for examination as instructors and are awaiting examination.

Sec. 3. NRS 644.195 is hereby amended to read as follows:

644.195 1. Each instructor must:

(a) Be licensed as a cosmetologist pursuant to this chapter.

(b) Have successfully completed the 12th grade in school or its equivalent.

(c) Have 1 year of experience as a cosmetologist.

(d) Have completed 1,000 hours of training as an instructor or 500 hours of training as a provisional instructor in a school of cosmetology.

(e) [Take] Except as otherwise provided in subsection 2, take one or more courses in advanced techniques for teaching or training, approved by the Board, whose combined duration is at least 30 hours during each 2‑year period.

2. The provisions of paragraph (e) of subsection 1 do not apply to an instructor who is initially licensed not more than 6 months before the renewal date of the license. An instructor who is initially licensed more than 6 months but less than 1 year before the renewal date of the license must take one or more courses specified in paragraph (e) whose combined duration is at least 15 hours during each 2-year period.

3. Each instructor shall pay an initial fee for a license of not less than $40 and not more than $60.

Sec. 4. NRS 644.1955 is hereby amended to read as follows:

644.1955 1. The Board shall admit to examination for a license as an instructor of aestheticians any person who has applied to the Board in proper form, paid the fee and:

(a) Is at least 18 years of age;

(b) Is of good moral character;

(c) Has successfully completed the 12th grade in school or its equivalent;

(d) Has received a minimum of 800 hours of training as an instructor or 400 hours of training as a provisional instructor in a licensed school of cosmetology;

(e) Is licensed as an aesthetician pursuant to this chapter; and

(f) Has practiced as a full-time licensed aesthetician for 1 year.

2. [An] Except as otherwise provided in subsection 3, an instructor of aestheticians shall complete at least 30 hours of advanced training in a course approved by the Board during each 2-year period of his license.

3. The provisions of subsection 2 do not apply to an instructor of aestheticians who is initially licensed not more than 6 months before the renewal date of the license. An instructor of aestheticians who is initially licensed more than 6 months but less than 1 year before the renewal date of the license must take one or more courses specified in subsection 2 whose combined duration is at least 15 hours during each 2-year period.

Sec. 5. NRS 644.197 is hereby amended to read as follows:

644.197 1. The Board shall admit to examination for a license as an instructor in manicuring any person who has applied to the Board in proper form, paid the fee and:

(a) Is at least 18 years of age;

(b) Is of good moral character;

(c) Has successfully completed the 12th grade in school or its equivalent;

(d) Has received a minimum of 500 hours of training as an instructor or 250 hours of training as a provisional instructor in a licensed school of cosmetology;

(e) Is licensed as a manicurist pursuant to this chapter; and

(f) Has practiced as a full-time licensed manicurist for 1 year.

2. [An] Except as otherwise provided in subsection 3, an instructor in manicuring shall complete at least 30 hours of advanced training in a course approved by the Board during each 2-year period of his license.

3. The provisions of subsection 2 do not apply to an instructor in manicuring who is initially licensed not more than 6 months before the renewal date of the license. An instructor in manicuring who is initially licensed more than 6 months but less than 1 year before the renewal date of the license must take one or more courses specified in subsection 2 whose combined duration is at least 15 hours during each 2-year period.”.

Amend sec. 2, page 2, line 2, after “services.” by inserting:

“This subsection does not prohibit an operator of a cosmetological establishment from leasing space to or employing a barber.”.

Amend sec. 2, page 2, line 8, after “cosmetology.” by inserting:

“A provider of health care who leases space at a cosmetological establishment pursuant to this subsection remains subject to the laws and regulations of this state applicable to his business or profession.”.

Amend the bill as a whole by renumbering sections 3 through 5 as sections 9 through 11 and adding new sections designated sections 7 and 8, following sec. 2, to read as follows:

“Sec. 7. NRS 644.375 is hereby amended to read as follows:

644.375 [Any food] Food or beverages [that are sold] for immediate consumption may be sold in a cosmetological establishment . [must be sold in an area of the cosmetological establishment which is sufficiently separated from the area of the cosmetological establishment where cosmetological services are provided.]

Sec. 8. NRS 644.400 is hereby amended to read as follows:

644.400 1. A school of cosmetology must at all times be under the immediate supervision of a licensed instructor who has had practical experience of at least 1 year in the practice of a majority of the branches of cosmetology in an established place of business.

2. A school of cosmetology shall:

(a) Maintain a school term of not less than 1,800 hours extending over a period of not [less than 10 months nor] more than [24] 36 months, and maintain a course of practical training and technical instruction equal to the requirements for examination for a license as a cosmetologist.

(b) Maintain apparatus and equipment sufficient to teach all the subjects of its curriculum.

(c) Keep a daily record of the attendance of each student, a record devoted to the different practices, establish grades and hold examinations before issuing diplomas. These records must be submitted to the Board pursuant to its regulations.

(d) Include in its curriculum a course of deportment consisting of instruction in courtesy, neatness and professional attitude in meeting the public.

(e) Arrange the courses devoted to each branch or practice of cosmetology as the Board may from time to time adopt as the course to be followed by the schools.

(f) Not allow any student to perform services on the public for more than 7 hours in any day . [nor for more than 5 days out of every 7.]

(g) Conduct at least 5 hours of instruction in theory in each 40-hour week or 6 hours of instruction in theory in each 48-hour week, which must be attended by all registered students.

(h) Require that all work by students be done on the basis of rotation.

3. A school of cosmetology may offer courses of study other than courses of study that are required to be approved by the Board.”.

Amend sec. 5, page 2, line 20, by deleting “4” and inserting “10”.

Amend sec. 5, page 2, line 22, by deleting “and 3” and inserting: “to 9, inclusive,”.

Amend the title of the bill to read as follows:

“AN ACT relating to cosmetology; prohibiting the State Board of Cosmetology from including certain personal information on a license or certificate which is required to be displayed publicly; reducing the period during which a person must practice as a full-time licensed cosmetologist, aesthetician or manicurist to qualify for the issuance of a provisional license as an instructor; revising the requirements for training for certain instructors; authorizing certain providers of health care to practice in a cosmetological establishment under certain circumstances; authorizing the sale of food or beverages in a cosmetological establishment; authorizing a school of cosmetology to offer certain courses of study; and providing other matters properly relating thereto.”.

Senator Townsend moved that the Senate do not concur in the Assembly amendment to Senate Bill No. 372.

Remarks by Senator Townsend.

Motion carried.

Bill ordered transmitted to the Assembly.

Senate Bill No. 432.

The following Assembly amendment was read:

Amendment No. 625.

Amend sec. 1.7, page 2, line 10, by deleting “an” and inserting “a complete”.

Amend sec. 1.7, page 2, line 11, by deleting “a” and inserting “the”.

Amend the bill as a whole by adding a new section designated sec. 6.5, following sec. 6, to read as follows:

“Sec. 6.5. NRS 463.302 is hereby amended to read as follows:

463.302 1. Notwithstanding any other provision of law and except as otherwise provided in this section, the Board may, in its sole and absolute discretion, allow a licensee to move the location of its establishment and transfer its restricted or nonrestricted license to:

(a) A location within a redevelopment zone, if the redevelopment zone is located in the same local governmental jurisdiction as the existing location of the establishment; or

(b) Any other location, if the move and transfer are necessary because the existing location of the establishment has been taken by the state or a local government through condemnation or eminent domain.

2. The Board shall not approve a move and transfer pursuant to subsection 1 unless, before the move and transfer, the licensee receives all necessary approvals from the local government having jurisdiction over the location to which the establishment wants to move and transfer its license.

3. Before a move and transfer pursuant to subsection 1, the Board may require the licensee to apply for a new license pursuant to the provisions of this chapter.

4. The provisions of subsection 1 do not apply to an establishment that is:

(a) A resort hotel; or

(b) Located in , or will be relocated to, a city or county which has established one or more gaming enterprise districts.”.

Amend sec. 7, page 5, by deleting lines 12 and 13 and inserting:

“notice received by a licensee must be mailed or delivered to the Board within 5 business days of receipt unless the date is administratively extended by the Chairman of the Board for good cause. A licensee is not responsible for the accuracy or completeness of any application for registration or renewal of registration as a gaming employee or any change of employment notice.”.

Amend sec. 7, page 6, line 10, by deleting “an” and inserting “a complete”.

Amend sec. 7, page 11, by deleting lines 18 through 30.

Amend the bill as a whole by adding a new section designated sec.19.5, following sec. 19, to read as follows:

“Sec. 19.5. NRS 171.1235 is hereby amended to read as follows:

171.1235 1. As used in this section:

(a) “Establishment” means any premises whereon any gaming is done or any premises owned or controlled by a licensee for the purpose of parking motor vehicles owned or operated by patrons of such licensee.

(b) “Licensee” has the meaning ascribed to it in NRS 463.0171.

2. Any licensee or his officers, employees or agents may take into custody and detain any person when [:

(a) Such person has committed a felony, whether or not in the presence of such licensee or his officers, employees or agents; or

(b) A felony has been committed, and] such licensee [,] or his officers, employees or agents have reasonable cause to believe [such] the person detained has committed [it.] a felony, whether or not in the presence of such licensee or his officers, employees or agents.

3. Detention pursuant to this section shall be in the establishment, in a reasonable manner, for a reasonable length of time and solely for the purpose of notifying a peace officer. Such taking into custody and detention shall not render the licensee or his officers, employees or agents criminally or civilly liable for false arrest, false imprisonment, slander or unlawful detention unless such taking into custody and detention are unreasonable under all the circumstances.

4. No licensee [,] or his officers, employees or agents are entitled to the immunity from liability provided for in this section unless there is displayed in a conspicuous place in his establishment a notice in boldface type clearly legible and in substantially this form:

Any gaming licensee [,] or his officers, employees or agents who have reasonable cause to believe that any person has committed a felony may detain such person in the establishment for the purpose of notifying a peace officer.”.

Amend sec. 24, page 20, line 28, after “2.” by inserting:

“Section 7 of this act becomes effective upon passage and approval for purposes related to the adoption and dissemination of regulations by the Nevada Gaming Commission and on January 1, 2004, for all other purposes.

3.”.

Amend sec. 24, page 20, by deleting lines 30 and 31 and inserting:

“4. Sections 6, 6.5 and 19.5 of this act become effective on October 1, 2003.

5. Sections 1.3, 1.7, 5, 8 to 14, inclusive, and 20 to 23,”.

Amend the title of the bill by deleting the fourth through sixteenth lines and inserting: “purchase such an interest; authorizing the Nevada Gaming Commission to adopt regulations prescribing the manner for submission of payments by licensees; revising the provision pertaining to the relocation of a gaming establishment; requiring a person employed as a gaming employee to be registered as a gaming employee by the State Gaming Control Board; requiring the Board to investigate each person applying for registration or renewal of registration as a gaming employee; providing for a fee for processing an application for registration as a gaming employee; authorizing the Commission to adopt regulations allowing a person who owns antique gaming devices to sell such devices without procuring a license; authorizing a gaming licensee or his officers, employees or agents who have reasonable cause to believe that a person has committed a felony to take into custody and detain such a person; and providing other matters properly relating”.

Senator Amodei moved that the Senate do not concur in the Assembly amendment to Senate Bill No. 432.

Remarks by Senator Amodei.

Motion carried.

Bill ordered transmitted to the Assembly.

Recede From Senate Amendments

Senator Townsend moved that the Senate do not recede from its action on Assembly Bill No. 32, that a conference be requested, and that Madam President appoint a first Conference Committee consisting of three members to meet with a like committee of the Assembly.

Remarks by Senator Townsend.

Motion carried.

Bill ordered transmitted to the Assembly.

Appointment of Conference Committees

Madam President appointed Senators Hardy, Townsend and Carlton as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 32.

Recede From Senate Amendments

Senator Townsend moved that the Senate do not recede from its action on Assembly Bill No. 81, 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 Hardy, Shaffer and Schneider as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 81.

Recede From Senate Amendments

Senator Townsend moved that the Senate do not recede from its action on Assembly Bill No. 232, 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 Hardy, O'Connell and Carlton as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 232.

Recede From Senate Amendments

Senator Raggio moved that the Senate do not recede from its action on Assembly Bill No. 353, 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 Raggio, Cegavske and Coffin as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 353.

Recede From Senate Amendments

Senator Townsend moved that the Senate do not recede from its action on Assembly Bill No. 498, 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 Hardy, Shaffer and Schneider as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 498.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Finance, to which was referred Senate Bill No. 381, 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

SECOND READING AND AMENDMENT

Senate Bill No. 208.

Bill read second time.

The following amendment was proposed by the Committee on Finance:

Amendment No. 911.

Amend the bill as a whole by deleting sections 1 through 3 and adding new sections designated as sections 1 and 2, following the enacting clause, to read as follows:

“Section 1. 1. There is hereby appropriated from the Trust Fund for Public Health, created pursuant to NRS 439.605, to the Board of Regents of the University of Nevada the sum of $122,000 for the support of the program to provide loans to nursing students pursuant to NRS 396.890 to 396.898, inclusive.

2. The administration of the loans provided pursuant to the provisions of NRS 396.890 to 396.898, inclusive, must be in accordance with the policy established pursuant to section 1 of chapter 580, Statutes of Nevada 2001, at page 2944.

3. Any balance of the sums appropriated by subsection 1 and any repayment of a loan and accrued interest on a loan must not revert to any fund at the end of any fiscal year.

Sec. 2. This act becomes effective upon passage and approval.”.

Amend the title of the bill to read as follows:

“AN ACT relating to the University and Community College System of Nevada; making an appropriation to support the program to provide loans to nursing students; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Makes appropriation to support certain loan program for nursing students within University and Community College System of Nevada. (BDR S-1033)”.

Senator Raggio moved the adoption of the amendment.

Remarks by Senator Raggio.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senate Bill No. 252.

Bill read second time.

The following amendment was proposed by the Committee on Finance:

Amendment No. 907.

Amend sec. 2, pages 2 and 3, by deleting lines 35 through 45 on page 2 and lines 1 through 14 on page 3, and inserting:

“1. Each applicant for employment with a charter school, except a licensed teacher or other person licensed by the Superintendent of Public Instruction, must, as a condition to employment, submit to the governing body of the charter school a complete set of his fingerprints and written permission authorizing the governing body to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its report on the criminal history of the applicant and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant.

2. If the reports on the criminal history of an applicant indicate that the applicant has not been convicted of a felony or an offense involving moral turpitude, the governing body of the charter school may employ the applicant.

3. If a report on the criminal history of an applicant indicates that the applicant has been convicted of a felony or an offense involving moral turpitude and the governing body of the charter school does not disqualify the applicant from further consideration of employment on the basis of that report, the governing body shall, upon the written authorization of the applicant, forward a copy of the report to the Superintendent of Public Instruction. If the applicant refuses to provide his written authorization to forward a copy of the report pursuant to this subsection, the charter school shall not employ the applicant.

4. The Superintendent of Public Instruction, or his designee, shall promptly review the report to determine whether the conviction of the applicant is related or unrelated to the position with the charter school for which the applicant has applied. If the applicant desires employment with the charter school, he shall, upon the request of the Superintendent of Public Instruction or his designee, provide any further information that the Superintendent or his designee determines is necessary to make the determination. If the governing body of the charter school desires to employ the applicant, the governing body shall, upon the request of the Superintendent of Public Instruction or his designee, provide any further information that the Superintendent or his designee determines is necessary to make the determination. The Superintendent of Public Instruction, or his designee, shall provide written notice of the determination to the applicant and to the governing body of the charter school.

5. If the Superintendent of Public Instruction, or his designee, determines that the conviction of the applicant is related to the position with the charter school for which the applicant has applied, the governing body of the charter school shall not employ the applicant. If the Superintendent of Public Instruction, or his designee, determines that the conviction of the applicant is unrelated to the position with the charter school for which the applicant has applied, the governing body of the charter school may employ the applicant for that position.”.

Amend sec. 4, page 3, after line 45, by inserting:

“4. If an application to form a charter school that is dedicated to providing educational programs and opportunities for pupils who are at risk is approved, the governing body of the charter school shall, on or before November 1 of each year, submit a report to the sponsor of the charter school that includes demographic information concerning the pupils enrolled in the charter school and other information to demonstrate that the charter school is dedicated to providing educational programs and opportunities to pupils who are at risk in compliance with its written charter. The State Board shall adopt regulations setting forth the action, if any, that may be taken against a charter school if the sponsor determines that the charter school is not dedicated to providing educational programs and opportunities to pupils who are at risk in compliance with its written charter.”.

Amend sec. 5, page 4, lines 2 through 9 by deleting the brackets and strike‑through.

Amend sec. 5, page 4, by deleting lines 10 through 28 and inserting:

“2. The State Board shall sponsor charter schools whose applications have been approved by the State Board pursuant to NRS 386.525. Except as otherwise provided by specific statute, if the State Board sponsors a charter school, the State Board or the Department shall be responsible for the evaluation, monitoring and oversight of the charter school.”.

Amend the bill as a whole by deleting sec. 6 and adding:

“Sec. 6. (Deleted by amendment.)”.

Amend sec. 7, pages 6 and 7, by deleting lines 39 through 45 on page 6 and lines 1 through 45 on page 7, and inserting: “application to the board of trustees of the school district in which the proposed charter school will be located [. If applicable, a committee may submit an application] or directly to the Subcommittee on Charter Schools . [pursuant to subsection 4.] If the board of trustees of a school district receives an application to form a charter school, [it] the board of trustees shall consider the application at a [regularly scheduled] meeting that must be held not later than [30] 45 days after the receipt of the application [,] and ensure that notice of the meeting has been provided pursuant to chapter 241 of NRS. The board of trustees, the Subcommittee on Charter Schools or the State Board, as applicable, shall review [an] the application to determine whether the application:

(a) Complies with NRS 386.500 to 386.610, inclusive, and section 2 of this act and the regulations applicable to charter schools; and

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

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

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

4. If the board of trustees denies an application after it has been resubmitted pursuant to subsection 3, the applicant may submit a written request for sponsorship by the State Board to the Subcommittee on Charter Schools created pursuant to NRS 386.507 not more than 30 days after receipt of the written notice of denial. [If an applicant proposes to form a charter school exclusively for the enrollment of pupils who receive special education pursuant to NRS 388.440 to 388.520, inclusive, the applicant may submit the written request and application directly to the Subcommittee without first seeking approval from the board of trustees of a school district.] Any request that is submitted pursuant to this subsection must be accompanied by the application to form the charter school.

5. If the Subcommittee receives [a request] an application pursuant to subsection 1 or 4, it shall hold a meeting to consider the [request and the] application. The meeting must be held not later than [30] 45 days after receipt of the application. Notice of the meeting must be posted in accordance with chapter 241 of NRS. The Subcommittee shall review the application in accordance with the factors set forth in paragraphs (a) and (b) of subsection 1. The Subcommittee shall approve an application if it satisfies the requirements of paragraphs (a) and (b) of subsection 1.”.

Amend sec. 7, page 8, line 1, by deleting “6.]” and inserting “6.”.

Amend sec. 7, page 8, by deleting line 4 and inserting: “of the meeting of the Subcommittee pursuant to subsection 5, the”.

Amend sec. 7, page 8, line 14, by deleting “[7.] 5.” and inserting “7.”.

Amend sec. 8, page 8, lines 20 through 31 by deleting the brackets and strike-through.

Amend sec. 8, page 8, by deleting lines 41 and 42 and inserting: “for which the charter school is authorized to operate. If the State Board is the sponsor of the charter school, the written charter”.

Amend sec. 8, page 9, line 24, after “the” by inserting: “governing body of the”.

Amend sec. 8, page 9, line 25, after “school.” by inserting: “If such an application is approved, the charter school may continue to operate under the same governing body and an additional governing body does not need to be selected to operate the charter school with the expanded grade levels.”.

Amend sec. 8, page 9, lines 43 and 44 by deleting the brackets and strike‑through.

Amend the bill as a whole by deleting sec. 9 and adding:

“Sec. 9. (Deleted by amendment.)”.

Amend sec. 10, pages 11 and 12, by deleting lines 33 through 45 on page 11 and lines 1 through 15 on page 12, and inserting:

“2. [At least 90 days before] Before the sponsor intends to revoke a written charter, the sponsor shall provide written notice of its intention to the governing body of the charter school . [of its intention.] The written notice must:

(a) Include a statement of the deficiencies or reasons upon which the action of the sponsor is based; [and

(b) Prescribe]

(b) Except as otherwise provided in subsection 4, prescribe a period, not less than 30 days, during which the charter school may correct the deficiencies [.] , including, without limitation, the date on which the period to correct the deficiencies begins and the date on which that period ends;

(c) The date on which the sponsor will make a determination whether the charter school has corrected the deficiencies, which determination may be made during the public hearing pursuant to paragraph (d); and

(d) The date on which the sponsor will hold a public hearing to consider whether to revoke the charter.

3. Except as otherwise provided in subsection 4, not more than 90 days after the notice is provided pursuant to subsection 2, the sponsor shall hold a public hearing to make a determination whether to revoke the written charter. If the charter school corrects the deficiencies to the satisfaction of the sponsor within the time prescribed in paragraph (b) [,] of subsection 2, the sponsor shall not revoke the written charter of the charter school. The sponsor may not include in a written notice pursuant to subsection 2 any deficiency which was included in a previous written notice and which was corrected by the charter school, unless the deficiency recurred after being corrected.

4. The sponsor of a charter school and the governing body of the charter school may enter into a written agreement that prescribes different time periods than those set forth in subsections 2 and 3.”.

Amend the bill as a whole by deleting sec. 11 and adding new sections designated sections 11 and 11.5, following sec. 10, to read as follows:

“Sec. 11. NRS 386.545 is hereby amended to read as follows:

386.545 1. The Department and the board of trustees of a school district shall:

[1.] (a) Upon request, provide information to the general public concerning the formation and operation of charter schools; and

[2.] (b) Maintain a list available for public inspection that describes the location of each charter school . [;

3.] 2. The sponsor of a charter school shall:

(a) Provide reasonable assistance to an applicant for a charter school and to a charter school in carrying out the provisions of NRS 386.500 to 386.610, inclusive [;

4.] , and section 2 of this act;

(b) Provide technical and other reasonable assistance to a charter school for the operation of the charter school; and

[5.] (c) Provide information to the governing body of a charter school concerning the availability of money for the charter school, including, without limitation, money available from the Federal Government.

3. The Department shall provide appropriate information, education and training for charter schools and the governing bodies of charter schools concerning the applicable provisions of title 34 of NRS and other laws and regulations that affect charter schools and the governing bodies of charter schools.

Sec. 11.5. NRS 386.549 is hereby amended to read as follows:

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

2. The governing body of a charter school is a public body. [It] A member of the governing body of a charter school is a public officer and is subject to the applicable provisions of chapter 281 of NRS. The governing body of a charter school is hereby given such reasonable and necessary powers, not conflicting with the Constitution and the laws of the State of Nevada, as may be requisite to attain the ends for which the charter school is established and to promote the welfare of pupils who are enrolled in the charter school.

3. The governing body of a charter school shall, during each calendar quarter, hold at least one regularly scheduled public meeting in the county in which the charter school is located. Each member of the governing body may receive a salary of $80 for each meeting of the governing body that he attends, not to exceed $960 for 1 year. In addition, each member of the governing body may receive payment for travel and subsistence in the same amount that is authorized for a member of the board of trustees of a school district pursuant to NRS 386.290.

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

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

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

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

Amend sec. 12, page 13, line 8, after “purpose.” by inserting:

“If a charter school is sponsored by the board of trustees of a school district, the Superintendent of Public Instruction shall ensure that 0.25 percent is withheld from each quarterly apportionment made to the charter school and deposited in the Fund for Charter Schools created by NRS 386.576. If a charter school is sponsored by the State Board, the Superintendent of Public Instruction shall:

(a) Ensure that 0.25 percent is withheld from each quarterly apportionment made to the charter school and deposited in the Fund for Charter Schools created by NRS 386.576; and

(b) Ensure that 0.25 percent is withheld from each quarterly apportionment made to the charter school and ensure that the money is accounted for separately to support the activities of the State Board and the Department that are associated with the sponsorship and oversight of charter schools.”.

Amend sec. 12, page 13, by deleting lines 15 through 42 and inserting:

“3. [Upon completion of a school year, the sponsor of a charter school may request reimbursement from the governing body of the charter school for the administrative costs associated with sponsorship for that school year if the sponsor provided administrative services during that school year. Upon receipt of such a request, the governing body shall pay the reimbursement to the board of trustees of the school district, if the board of trustees sponsors the charter school, or to the Department if the State Board sponsors the charter school. If a governing body fails to pay the reimbursement, the charter school shall be deemed to have violated its written charter and the sponsor may take such action to revoke the written charter pursuant to NRS 386.535 as it deems necessary. The amount of reimbursement that a charter school may be required to pay pursuant to this subsection] At the beginning of each school year, the board of trustees of each school district that sponsors a charter school shall provide to the governing body of the charter school a statement of the administrative services, if any, that will be provided by the board of trustees during the school year. If the State Board sponsors a charter school, the Department shall provide at the beginning of each school year a statement of the administrative services, if any, that will be provided by the Department to the governing body during the school year. If the sponsor of a charter school desires to receive payment for the administrative services provided to the charter school during a school year, the sponsor shall submit to the Department, at the beginning of the school year, a request for payment from each quarterly apportionment to the charter school. If the sponsor makes such a request, the Superintendent of Public Instruction shall ensure that an amount of money is withheld from each quarterly apportionment to the charter school that is proportionate to the total amount that may be withheld in 1 school year pursuant to subsection 4 or 5, as applicable. The amount withheld must be paid to the board of trustees or, if the State Board sponsors the charter school, to the Department.

4. If the board of trustees of a school district is the sponsor of a charter school, the amount of money that may be paid to the sponsor pursuant to subsection 3 for administrative expenses in 1 school year must not exceed:

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

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

[4.] 5. If the sponsor of a charter school is the State Board, the amount of money that may be paid to the Department pursuant to subsection 3 for administrative expenses in 1 school year must not exceed:

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

(b) For any year after the first year of operation of the charter school, 1.5 percent of the total amount of money apportioned to the charter school during the year pursuant to NRS 387.124.

6. To determine the amount of money for distribution to a”.

Amend sec. 12, page 14, line 11, by deleting “5.” and inserting “[5.] 7.”.

Amend sec. 12, page 14, line 16, by deleting “6.” and inserting “[6.] 8.”.

Amend sec. 12, page 14, line 27, by deleting “7.” and inserting “[7.] 9.”.

Amend the bill as a whole by adding a new section designated sec. 12.5, following sec. 12, to read as follows:

“Sec. 12.5. NRS 386.590 is hereby amended to read as follows:

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

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

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

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

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

(2) Mathematics;

(3) Science; and

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

(c) In addition to the requirements of paragraphs (a) and (b):

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

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

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

3. [A] Except as otherwise provided in section 2 of this act, a charter school may employ a person who is not licensed pursuant to the provisions of chapter 391 of NRS to teach a course of study for which a licensed teacher is not required pursuant to subsection 2 if the person has:

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

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

4. [A] Except as otherwise provided in section 2 of this act, a charter school may employ such administrators for the school as it deems necessary. A person employed as an administrator must possess:

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

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

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

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

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

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

Amend the bill as a whole by adding new sections designated sections 13.1 through 13.9, following sec. 13, to read as follows:

“Sec. 13.1. NRS 388.838 is hereby amended to read as follows:

388.838 1. The board of trustees of a school district or the governing body of a charter school may submit an application to the Department to provide a program of distance education. In addition, a committee to form a charter school may submit an application to the Department to provide a program of distance education if the application to form the charter school submitted by the committee pursuant to NRS 386.520 indicates that the charter school intends to provide a program of distance education.

2. An applicant to provide a program of distance education may seek approval to provide a program that is comprised of one or more courses of distance education included on the list of courses approved by the Department pursuant to NRS 388.834 or a program that is comprised of one or more courses of distance education which have not been reviewed by the Department before submission of the application.

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

(a) All the information prescribed by the State Board by regulation.

(b) Except as otherwise provided in this paragraph, proof satisfactory to the Department that the program satisfies all applicable statutes and regulations. The proof required by this paragraph shall be deemed satisfied if the program is comprised only of courses of distance education approved by the Department pursuant to NRS 388.834 before submission of the application.

4. [The] Except as otherwise provided in this subsection, the Department shall approve an application submitted pursuant to this section if the application satisfies the requirements of NRS 388.820 to 388.874, inclusive, and all other applicable statutes and regulations. The Department shall deny an application to provide a program of distance education submitted by a committee to form a charter school if that committee’s application to form a charter school is denied. The Department shall provide written notice to the applicant of the Department’s approval or denial of the application.

5. If the Department denies an application, the Department shall include in the written notice the reasons for the denial and the deficiencies of the application. The applicant must be granted 30 days after receipt of the written notice to correct any deficiencies identified in the written notice and resubmit the application. The Department shall approve an application that has been resubmitted pursuant to this subsection if the application satisfies the requirements of NRS 388.820 to 388.874, inclusive, and all other applicable statutes and regulations.

Sec. 13.3. NRS 388.854 is hereby amended to read as follows:

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

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

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

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

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

(d) Include any other information required by the State Board by regulation.

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

Sec. 13.5. NRS 388.858 is hereby amended to read as follows:

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

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

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

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

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

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

(d) Include any other information required by the State Board by regulation.

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

Sec. 13.7. NRS 388.866 is hereby amended to read as follows:

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

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

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

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

(a) Licensed teacher; or

(b) Teacher, instructor or professor who provides instruction at a community college or university.

Sec. 13.9. NRS 388.874 is hereby amended to read as follows:

388.874 1. The State Board shall adopt regulations that prescribe:

(a) The process for submission of an application by a person or entity for inclusion of a course of distance education on the list prepared by the Department pursuant to NRS 388.834 and the contents of the application;

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

(c) The qualifications and conditions for enrollment that a pupil must satisfy to enroll in a program of distance education, consistent with NRS 388.850;

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

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

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

2. The State Board may adopt regulations as it determines are necessary to carry out the provisions of NRS 388.820 to 388.874, inclusive.”.

Amend the bill as whole by deleting sections 15 and 16 and adding new sections designated sections 15 and 16, following sec. 14, to read as follows:

“Sec. 15. NRS 391.033 is hereby amended to read as follows:

391.033 1. All licenses for teachers and other educational personnel are granted by the Superintendent of Public Instruction pursuant to regulations adopted by the Commission and as otherwise provided by law.

2. An application for the issuance of a license must include the social security number of the applicant.

3. Every applicant for a license must submit with his application a complete set of his fingerprints and written permission authorizing the Superintendent to forward the fingerprints to the Federal Bureau of Investigation and to the Central Repository for Nevada Records of Criminal History for their reports on the criminal history of the applicant.

4. The Superintendent may issue a provisional license pending receipt of the reports of the Federal Bureau of Investigation and the Central Repository for Nevada Records of Criminal History if he determines that the applicant is otherwise qualified.

5. A license must be issued to an applicant if:

(a) The Superintendent determines that the applicant is qualified;

(b) The reports on the criminal history of the applicant from the Federal Bureau of Investigation and the Central Repository for Nevada Records of Criminal History:

(1) Do not indicate that the applicant has been convicted of a felony or any offense involving moral turpitude; or

(2) Indicate that the applicant has been convicted of a felony or an offense involving moral turpitude but the Superintendent determines that the conviction is unrelated to the position within the county school district or charter school for which the applicant applied; and

(c) The applicant submits the statement required pursuant to NRS 391.034.

Sec. 16. 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 specimen of a person who is convicted of 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 a biological specimen of a person who is convicted of 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 or charter school for employment; or

(3) Is employed by a county school district [,] or charter school,

and notify the superintendent of each county school district , the governing body of each charter school 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 and the governing body of each charter school by providing [him with] a list of all persons:

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

(2) Employed by a county school district or charter school 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 or the governing body of a charter school, as applicable, shall determine whether further investigation or action by the district or governing body 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.”.

Amend the title of the bill to read as follows:

“AN ACT relating to charter schools; requiring a charter school to pay for an additional administration of achievement and proficiency examinations under certain circumstances; requiring certain applicants for employment with a charter school to submit fingerprints as a condition to employment; prohibiting the governing body of a charter school from employing certain nonlicensed persons under certain circumstances; prescribing the circumstances under which a charter school shall be deemed a charter school that is dedicated to providing educational programs and opportunities for pupils who are at risk; revising provisions governing an application to form a charter school; revising the provisions governing the revocation of the written charter of a charter school; revising the provisions governing apportionments from the State Distributive School Account to charter schools sponsored by the State Board of Education; revising provisions governing programs of distance education; requiring the Central Repository for Nevada Records of Criminal History to investigate the criminal history of applicants for employment with a charter school; and providing other matters properly relating thereto.”.

Amend the summary of the bill to read as follows:

“SUMMARY—Makes various changes concerning charter schools and distance education programs. (BDR 34‑140)”.

Senator Raggio moved the adoption of the amendment.

Remarks by Senators Raggio, Titus and Washington.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

GENERAL FILE AND THIRD READING

Assembly Bill No. 515.

Bill read third time.

Roll call on Assembly Bill No. 515:

Yeas—20.

Nays—None.

Excused—Nolan.

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

Bill ordered transmitted to the Assembly.

UNFINISHED BUSINESS

Consideration of Assembly Amendments

Senate Bill No. 320.

The following Assembly amendments were read:

Amendment No. 816.

Amend the bill as a whole by deleting sections 1 and 2, renumbering sections 3 and 4 as sections 6 and 7 and adding new sections designated sections 1 through 5, following the enacting clause, to read as follows:

“Section 1. Chapter 616A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

Sec. 2. “External review organization” means an organization which has been issued a certificate pursuant to section 3 of this act that authorizes the organization to conduct external reviews for the purposes of chapters 616A to 616D, inclusive, of NRS.

Sec. 3. 1. If the Commissioner determines that an external review organization is qualified to conduct external reviews for the purposes of chapters 616A to 616D, inclusive, of NRS, the Commissioner shall issue a certificate to the external review organization that authorizes the organization to conduct such external reviews in accordance with the provisions of section 5 of this act and the regulations adopted by the Commissioner.

2. The Commissioner shall adopt regulations setting forth the procedures that an external review organization must follow to be issued a certificate to conduct external reviews. The regulations must include, without limitation, provisions setting forth:

(a) The manner in which an external review organization may apply for a certificate and the requirements for the issuance and renewal of the certificate pursuant to this section;

(b) The grounds for which the Commissioner may refuse to issue, suspend, revoke or refuse to renew a certificate issued pursuant to this section;

(c) The manner and circumstances under which an external review organization is required to conduct its business; and

(d) A fee for issuing or renewing a certificate of an external review organization pursuant to this section. The fee must not exceed the cost of issuing or renewing the certificate.

3. A certificate issued pursuant to this section expires 1 year after it is issued and may be renewed in accordance with regulations adopted by the Commissioner.

4. Before the Commissioner may issue a certificate to an external review organization, the external review organization must:

(a) Demonstrate to the satisfaction of the Commissioner that it is able to carry out, in a timely manner, the duties of an external review organization as set forth in section 5 of this act and the regulations adopted by the Commissioner. The demonstration must include, without limitation, proof that the external review organization employs, contracts with or otherwise retains only persons who are qualified because of their education, training, professional licensing and experience to perform the duties assigned to those persons; and

(b) Provide assurances satisfactory to the Commissioner that the external review organization will:

(1) Conduct external reviews in accordance with the provisions of section 5 of this act and the regulations adopted by the Commissioner;

(2) Render its decisions in a clear, consistent, thorough and timely manner; and

(3) Avoid conflicts of interest.

5. For the purposes of this section, an external review organization has a conflict of interest if the external review organization or any employee, agent or contractor of the external review organization who conducts an external review has a professional, familial or financial interest of a material nature with respect to any person who has a substantial interest in the outcome of the external review, including, without limitation:

(a) The claimant;

(b) The employer; or

(c) The insurer or any officer, director or management employee of the insurer.

6. The Commissioner shall not issue a certificate to an external review organization that is affiliated with:

(a) An organization for managed care which provides comprehensive medical and health care services to employees for injuries or diseases pursuant to chapters 616A to 617, inclusive, of NRS;

(b) An insurer;

(c) A third-party administrator; or

(d) A national, state or local trade association.

7. An external review organization which is certified or accredited by an accrediting body that is nationally recognized shall be deemed to have satisfied all the conditions and qualifications required for the external review organization to be issued a certificate pursuant to this section.

Sec. 4. NRS 616A.025 is hereby amended to read as follows:

616A.025 As used in chapters 616A to 616D, inclusive, of NRS, unless the context otherwise requires, the words and terms defined in NRS 616A.030 to 616A.360, inclusive, and section 2 of this act have the meanings ascribed to them in those sections.

Sec. 5. Chapter 616C of NRS is hereby amended by adding thereto a new section to read as follows:

1. Not later than 5 business days after the date that an external review organization receives a request for an external review, the external review organization shall:

(a) Review the documents and materials submitted for the external review; and

(b) Notify the injured employee, his employer and the insurer whether the external review organization needs any additional information to conduct the external review.

2. The external review organization shall render a decision on the matter not later than 15 business days after the date that it receives all information that is necessary to conduct the external review.

3. In conducting the external review, the external review organization shall consider, without limitation:

(a) The medical records of the insured;

(b) Any recommendations of the physician of the insured; and

(c) Any other information approved by the Commissioner for consideration by an external review organization.

4. In its decision, the external review organization shall specify the reasons for its decision. The external review organization shall submit a copy of its decision to:

(a) The injured employee;

(b) The employer;

(c) The insurer; and

(d) The appeals officer, if any.

5. The insurer shall pay the costs of the services provided by the external review organization.

6. The Commissioner shall adopt regulations to govern the process of external review and to carry out the provisions of this section. The regulations must provide that:

(a) All parties must agree to the submission of a matter to an external review organization before a request for external review may be submitted;

(b) A party may not be ordered to submit a matter to an external review organization; and

(c) The findings and decisions of an external review organization are not binding.”.

Amend sec. 4, page 3, by deleting lines 29 through 31 and inserting:

“2. A hearing must not be scheduled until the following information is provided to the hearing officer:

(a) The name of:”.

Amend sec. 4, page 3, by deleting line 34 and inserting:

“(3) The insurer or third-party administrator;”.

Amend the bill as a whole by renumbering sec. 5 as sec. 9 and adding a new section designated sec. 8, following sec. 4, to read as follows:

“Sec. 8. NRS 616C.330 is hereby amended to read as follows:

616C.330 1. The hearing officer shall:

(a) [Within] Except as otherwise provided in subsection 2 of NRS 616C.315, within 5 days after receiving a request for a hearing, set the hearing for a date and time within 30 days after his receipt of the request;

(b) Give notice by mail or by personal service to all interested parties to the hearing at least 15 days before the date and time scheduled; and

(c) Conduct hearings expeditiously and informally.

2. The notice must include a statement that the injured employee may be represented by a private attorney or seek assistance and advice from the Nevada Attorney for Injured Workers.

3. If necessary to resolve a medical question concerning an injured employee’s condition or to determine the necessity of treatment for which authorization for payment has been denied, the hearing officer may refer the employee to a physician or chiropractor of his choice who has demonstrated special competence to treat the particular medical condition of the employee. If the medical question concerns the rating of a permanent disability, the hearing officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians and chiropractors maintained by the Administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any medical examination requested by the hearing officer.

4. If an injured employee has requested payment for the cost of obtaining a second determination of his percentage of disability pursuant to NRS 616C.100, the hearing officer shall decide whether the determination of the higher percentage of disability made pursuant to NRS 616C.100 is appropriate and, if so, may order the insurer to pay to the employee an amount equal to the maximum allowable fee established by the Administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

5. The hearing officer shall order an insurer, organization for managed care or employer who provides accident benefits for injured employees pursuant to NRS 616C.265 to pay the charges of a provider of health care if the conditions of NRS 616C.138 are satisfied.

6. The hearing officer may allow or forbid the presence of a court reporter and the use of a tape recorder in a hearing.

7. The hearing officer shall render his decision within 15 days after:

(a) The hearing; or

(b) He receives a copy of the report from the medical examination he requested.

8. The hearing officer shall render his decision in the most efficient format developed by the Chief of the Hearings Division of the Department of Administration.

9. The hearing officer shall give notice of his decision to each party by mail. He shall include with the notice of his decision the necessary forms for appealing from the decision.

10. Except as otherwise provided in NRS 616C.380, the decision of the hearing officer is not stayed if an appeal from that decision is taken unless an application for a stay is submitted by a party. If such an application is submitted, the decision is automatically stayed until a determination is made on the application. A determination on the application must be made within 30 days after the filing of the application. If, after reviewing the application, a stay is not granted by the hearing officer or an appeals officer, the decision must be complied with within 10 days after the refusal to grant a stay.”.

Amend sec. 5, page 4, by deleting lines 27 through 29 and inserting:

“2. A hearing must not be scheduled until the following information is provided to the appeals officer:

(a) The name of:”.

Amend sec. 5, page 4, by deleting line 32 and inserting:

“(3) The insurer or third-party administrator;”.

Amend sec. 5, page 4, by deleting line 34 and inserting:

“(c) If applicable, a copy of the letter of determination being”.

Amend sec. 5, page 5, line 15, by deleting “subsection,” and inserting: “ subsection [,] and subsection 2,”.

Amend the bill as a whole by renumbering sec. 6 as sec. 12 and adding new sections designated sections 10 and 11, following sec. 5, to read as follows:

“Sec. 10. NRS 616C.360 is hereby amended to read as follows:

616C.360 1. A stenographic or electronic record must be kept of the hearing before the appeals officer and the rules of evidence applicable to contested cases under chapter 233B of NRS apply to the hearing.

2. The appeals officer must hear any matter raised before him on its merits, including new evidence bearing on the matter.

3. If [necessary to resolve] there is a medical question or dispute concerning an injured employee’s condition or [to determine] concerning the necessity of treatment for which authorization for payment has been denied, the medical question or dispute is relevant to an issue involved in the matter before the appeals officer and all parties agree to the submission of the matter to an external review organization, the appeals officer [may refer the employee to a physician or chiropractor of his choice who has demonstrated special competence to treat the particular medical condition of the employee. If the medical question concerns the rating of a permanent disability, the appeals officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians or chiropractors maintained by the Administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and the injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any examination requested by the appeals officer.] must submit the matter to an external review organization in accordance with section 5 of this act and the regulations adopted by the Commissioner.

4. If an injured employee has requested payment for the cost of obtaining a second determination of his percentage of disability pursuant to NRS 616C.100, the appeals officer shall decide whether the determination of the higher percentage of disability made pursuant to NRS 616C.100 is appropriate and, if so, may order the insurer to pay to the employee an amount equal to the maximum allowable fee established by the Administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

5. The appeals officer shall order an insurer, organization for managed care or employer who provides accident benefits for injured employees pursuant to NRS 616C.265 to pay the charges of a provider of health care if the conditions of NRS 616C.138 are satisfied.

6. Any party to the appeal or the appeals officer may order a transcript of the record of the hearing at any time before the seventh day after the hearing. The transcript must be filed within 30 days after the date of the order unless the appeals officer otherwise orders.

7. The appeals officer shall render his decision:

(a) If a transcript is ordered within 7 days after the hearing, within 30 days after the transcript is filed; or

(b) If a transcript has not been ordered, within 30 days after the date of the hearing.

8. The appeals officer may affirm, modify or reverse any decision made by the hearing officer and issue any necessary and proper order to give effect to his decision.

Sec. 11. Notwithstanding the amendatory provisions of this act, an appeals officer shall not submit a matter for external review pursuant to NRS 616C.360, as amended by this act, until the Commissioner of Insurance has issued a certificate pursuant to section 3 of this act to at least one external review organization that is qualified to conduct an external review of the matter.”.

Amend sec. 6, page 5, line 38, by deleting: “4 and 5” and inserting: “7 and 9”.

Amend sec. 6, page 5, by deleting line 40 and inserting:

“2. Sections 1 to 6, inclusive, 8, 10 and 11 of this act become effective upon passage and”.

Amend sec. 6, page 6, by deleting lines 1 and 2.

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

“AN ACT relating to industrial insurance; establishing a system of external review for certain matters relating to industrial insurance; providing for the regulation and certification of certain external review organizations; providing for the payment of certain regulatory fees by external review organizations; revising various”.

Amendment No. 879.

Amend sec. 2, page 1, line 6, by deleting “616D,” and inserting “617,”.

Amend sec. 3, page 1, line 8, by deleting “If” and inserting: “The Commissioner may issue certificates authorizing qualified external review organizations to conduct external reviews for the purposes of chapters 616A to 617, inclusive, of NRS. If the Commissioner issues such certificates and”.

Amend sec. 3, page 1, line 10, by deleting “616D,” and inserting “617,”.

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

Amend sec. 3, page 2, line 5, by deleting “The regulations” and inserting: “Any regulations adopted pursuant to this section”.

Amend sec. 5, page 4, line 10, by deleting “shall” and inserting “may”.

Amend sec. 5, page 4, line 12, by deleting “The regulations” and inserting: “Any regulations adopted pursuant to this section”.

Amend sec. 10, page 9, by deleting lines 8 through 24 and inserting: “authorization for payment has been denied, the appeals officer may [refer] :

(a) Refer the employee to a physician or chiropractor of his choice who has demonstrated special competence to treat the particular medical condition of the employee. If the medical question concerns the rating of a permanent disability, the appeals officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians or chiropractors maintained by the Administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and the injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any examination requested by the appeals officer.

(b) If the medical question or dispute is relevant to an issue involved in the matter before the appeals officer and all parties agree to the submission of the matter to an external review organization, submit the matter to an external review organization in accordance with section 5 of this act and any regulations adopted by the Commissioner.”.

Amend the title, first line, by deleting “establishing” and inserting: “authorizing the establishment of”.

Senator Townsend moved that the Senate concur in the Assembly amendments to Senate Bill No. 320.

Remarks by Senator Townsend.

Conflict of interest declared by Senator Rawson.

Motion carried by a constitutional majority.

Bill ordered enrolled.

Senate Bill No. 425.

The following Assembly amendments were read:

Amendment No. 820.

Amend the bill as a whole by deleting the enacting clause.

Amendment No. 872.

Amend the bill as a whole by adding an enacting clause, following the title, to read as follows:

“THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:”.

Amend section 1, page 1, line 2, by deleting: “2, 3 and 3.5” and inserting: “2 to 3.7, inclusive,”.

Amend sec. 3.5, page 2, line 10, by deleting “Board;” and inserting: “Board or the board or other relevant authority of another state;”.

Amend sec. 3.5, page 2, line 16, by deleting “Board;” and inserting: “Board or the board or other relevant authority of another state;”.

Amend the bill as a whole by adding a new section designated as sec. 3.7, following sec. 3.5, to read as follows:

“Sec. 3.7. 1. A pharmacist shall not refuse to fill or refill a prescription as written unless the pharmacist knows or has reasonable cause to believe that the prescription is:

(a) Fraudulent;

(b) Issued contrary to law; or

(c) Contraindicated.

2. If a pharmacist refuses to dispense a prescription pursuant to paragraph (c) of subsection 1, the pharmacist shall consult with the prescribing practitioner as soon as practicable.

3. The provisions of this section do not:

(a) Require a pharmacist to stock a particular drug; or

(b) Prohibit a pharmacist from:

(1) Substituting a drug pursuant to NRS 639.2583; or

(2) Requiring payment for a drug in the normal course of business.”.

Amend the bill as a whole by deleting sec. 7 and adding:

“Sec. 7. (Deleted by amendment.)”.

Amend sec. 13, page 7, by deleting lines 27 and 28 and inserting: “intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued”.

Amend sec. 14, page 7, by deleting lines 34 and 35 and inserting: “intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued”.

Amend sec. 14, page 8, by deleting lines 2 and 3 and inserting: “intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued”.

Amend sec. 16, page 9, by deleting line 16 and inserting: “[supportive personnel,] pharmaceutical technicians, including”.

Amend sec. 16, page 9, by deleting line 19 and inserting: “[supportive personnel;] pharmaceutical technicians; and”.

Amend sec. 16, page 9, by deleting line 21 and inserting: “[supportive personnel,] pharmaceutical technicians,”.

Amend sec. 20, page 11, between lines 24 and 25, by inserting:

“[For the initial registration of supportive personnel 50

For the biennial renewal of registration of supportive personnel 50]”.

Amend sec. 20, page 11, by deleting lines 31 through 33.

Amend sec. 21, page 12, by deleting lines 42 and 43 and inserting: “intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued”.

Amend sec. 25, page 15, lines 27 and 28, by deleting “intentional”.

Amend sec. 25, page 15, line 29, by deleting “summary”.

Amend sec. 27, page 17, between lines 33 and 34, by inserting:

“5. As used in this section, “peace officer” does not include:

(a) A member of the Police Department of the University and Community College System of Nevada.

(b) A school police officer who is appointed or employed pursuant to NRS 391.100.”.

Amend sec. 36, page 20, by deleting lines 35 through 37 and inserting: “registration as a pharmacist, [an] intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued pursuant to NRS 639.223, the Board”.

Amend sec. 36, page 21, by deleting lines 2 and 3 and inserting: “pharmacist, [an] intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a”.

Amend the bill as a whole by deleting sections 38 and 39 and adding:

“Secs. 38 and 39. (Deleted by amendment.)”.

Amend sec. 50, page 32, line 43, before “639.133,” by inserting “639.0152,”

Amend the leadlines of repealed sections by adding the leadline of NRS 639.0152.

Amend the title of the bill to read as follows:

“AN ACT relating to pharmacy; prohibiting a pharmacist from refusing to fill or refill a prescription under certain circumstances; eliminating the provisions relating to the regulation of supportive personnel; increasing the fee for the biennial renewal of a license for a manufacturer or wholesaler; abolishing inactive licenses; revising provisions governing the sale and purchase of prescription drugs by a wholesaler; revising provisions governing a rehearing of the State Board of Pharmacy concerning a contest or appeal of a decision of the Board; repealing the requirement that a notice concerning the substitution of certain drugs be displayed in a pharmacy; authorizing persons enrolled in certain training programs to administer controlled substances and certain drugs and medicines; and providing other matters properly relating thereto.”.

Amendment No. 899.

Amend section 1, page 2, line 2, by deleting: “2 to 3.7, inclusive,” and inserting: “2, 3 and 3.5”.

Amend sec. 3.5, page 2, by deleting line 25 and inserting “Board;”.

Amend the bill as a whole by deleting sec. 3.7.

Amend the title of the bill, first through third lines, by deleting: “prohibiting a pharmacist from refusing to fill or refill a prescription under certain circumstances;”.

Senator Townsend moved that the Senate concur in the Assembly amendments to Senate Bill No. 425.

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

Motion carried.

Senate in recess at 1:36 p.m.

SENATE IN SESSION

At 1:38 p.m.

President Hunt presiding.

Quorum present.

Remarks by Senators Townsend and Titus.

Motion carried by a two-thirds majority.

Bill ordered enrolled.

Signing of Bills and Resolutions

There being no objections, the President and Secretary signed Senate Bills Nos. 18, 127, 174, 240, 246, 247, 280, 288, 351, 413, 440, 469, 476, 478, 481, 482, 490, 493, 494; Senate Resolution No. 8; Assembly Bills Nos. 21, 41, 48, 60, 84, 107, 125, 130, 136, 150, 156, 160, 166, 168, 185, 212, 215, 217, 225, 230, 236, 255, 267, 287, 288, 291, 293, 324, 343, 348, 365, 390, 396, 451, 458, 469, 471, 475, 504, 516, 526, 528, 541; Assembly Joint Resolutions Nos. 5, 6, 15; Assembly Joint Resolution No. 3 of the 71st Session; Assembly Concurrent Resolution No. 28.

remarks from the floor

Senator Washington requested that the following letter to the family of Lance Corporal Donald J. Cline Jr. be entered in the Journal.

May 1, 2003

To The Family of Lance Corporal Donald John Cline Jr.:

Words are inadequate to express the sadness I feel at your loss. Few events strike as deeply into our hearts as the passing of a young father in the prime of his life. As you know all too well, Unites States Marine Lance Corporal Donald John Cline Jr. was just such a man, and I am sure each of you is struggling with overwhelming grief right now. I hope it comes as some consolation to know that so many Nevadans, so many Americans, grieve with you.

Lance Corporal Cline gave his life serving the worthiest of causes. He helped liberate a nation from fear and oppression; he helped ensure that literally millions of people will have the opportunity to experience the freedoms that we Americans hold so dear. Certainly, the pain of his passing will remain with you. However, when one is lost in the performance of a great deed, something great abides. Times move on and bodies pass, but spirits linger. This is the great reward of service, to give your best for such high stakes that your deeds shall be remembered again and again through to eternity. Donald John Cline Jr. gave of himself in just this way, and the valor and generosity of his spirit will never be lost.

As the years pass, Donald’s spirit will continue to guide you—the members of his family and especially his loving wife, Tina—to see that his sons, Dakota and Dillon, grow into strong, proud young men. Under your watchful eyes, these two boys will undoubtedly grow to love their families and their freedom with a devotion equal to their father’s. As you continue to mourn the loss of this extraordinary young man, I trust that his love of humanity and his faith in a bright future for us all will lend you strength and courage.

Sincerely,

Maurice E. Washington

Nevada State Senator

GUESTS EXTENDED PRIVILEGE OF SENATE FLOOR

On request of Senator Hardy, the privilege of the floor of the Senate Chamber for this day was extended to Alan Daines and Kathie Daines.

On request of Senator Nolan, the privilege of the floor of the Senate Chamber for this day was extended to Ronnie W. Flud, Mary Flud, Beverly Flud and Michael Murphy.

On request of Senator Raggio, the privilege of the floor of the Senate Chamber for this day was extended to Judith Daines Mower and William Daines.

On request of Senator Rawson, the privilege of the floor of the Senate Chamber for this day was extended to Michael Daines and Lisa Daines.

On request of Senator Washington, the privilege of the floor of the Senate Chamber for this day was extended to Kay Vallerio representing Tina Cline, widow of Lance Corporal Donald J. Cline Jr.

Senator Raggio moved that the Senate adjourn until Tuesday, May 27, 2003, at 11 a.m.

Motion carried.

Senate adjourned at 1:41 p.m.

Approved: Lorraine T. Hunt

President of the Senate

Attest: Claire J. Clift

Secretary of the Senate